[Title 45 CFR ]
[Code of Federal Regulations (annual edition) - October 1, 2021 Edition]
[From the U.S. Government Publishing Office]



[[Page i]]

          
          
          Title 45

Public Welfare


________________________

Part 1200 to End

                         Revised as of October 1, 2021

          Containing a codification of documents of general 
          applicability and future effect

          As of October 1, 2021
                    Published by the Office of the Federal Register 
                    National Archives and Records Administration as a 
                    Special Edition of the Federal Register

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                            Table of Contents



                                                                    Page
  Explanation.................................................       v

  Title 45:
    SUBTITLE B--Regulations Relating to Public Welfare 
      (Continued) 
          Chapter XII--Corporation for National and Community 
          Service                                                    5
          Chapter XIII--Administration for Children and 
          Families, Department of Health and Human Services         73
          Chapter XVI--Legal Services Corporation                  411
          Chapter XVII--National Commission on Libraries and 
          Information Science                                      527
          Chapter XVIII--Harry S. Truman Scholarship 
          Foundation                                               547
          Chapter XXI--Commission of Fine Arts                     567
          Chapter XXIII--Arctic Research Commission                609
          Chapter XXIV--James Madison Memorial Fellowship 
          Foundation                                               619
          Chapter XXV--Corporation for National and Community 
          Service                                                  639
  Finding Aids:
      Table of CFR Titles and Chapters........................     877
      Alphabetical List of Agencies Appearing in the CFR......     897
      List of CFR Sections Affected...........................     907

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

                     Cite this Code: CFR
                     To cite the regulations in 
                       this volume use title, 
                       part and section number. 
                       Thus, 45 CFR 1201.1 refers 
                       to title 45, part 1201, 
                       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 
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    To determine whether a Code volume has been amended since its 
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OMB CONTROL NUMBERS

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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 
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PAST PROVISIONS OF THE CODE

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``[RESERVED]'' TERMINOLOGY

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INCORPORATION BY REFERENCE

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    An index to the text of ``Title 3--The President'' is carried within 
that volume.

[[Page vii]]

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the revision dates of the 50 CFR titles.

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available at www.ecfr.gov.

    Oliver A. Potts,
    Director,
    Office of the Federal Register
    October 1, 2021







[[Page ix]]



                               THIS TITLE

    Title 45--Public Welfare is composed of five volumes. The parts in 
these volumes are arranged in the following order: Parts 1-139, 140-199, 
200-499, 500-1199, and 1200 to end. Volumes one and two (parts 1-139 and 
parts 140-199) contain all current regulations issued under Subtitle A--
Department of Health and Human Services. Volume three (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 four 
(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 IX--Denali Commission, 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 five (part 1200 to end) contains all 
current regulations issued under Chapter XII--Corporation for National 
and Community Service, Chapter XIII--Administration for Children and 
Families, 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 XXIII--Arctic 
Research Commission, Chapter 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, 2021.

    For this volume, Gabrielle E. Burns was Chief Editor. The Code of 
Federal Regulations publication program is under the direction of John 
Hyrum Martinez, assisted by Stephen J. Frattini.

[[Page 1]]



                        TITLE 45--PUBLIC WELFARE




                  (This book contains part 1200 to end)

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

     SUBTITLE B--Regulations Relating to Public Welfare (Continued)

                                                                    Part

chapter xii--Corporation for National and Community Service.        1201

chapter xiii--Administration for Children and Families, 
  Department of Health and Human Services...................        1300

chapter xvi--Legal Services Corporation.....................        1600

chapter xvii--National Commission on Libraries and 
  Information Science.......................................        1700

chapter xviii--Harry S. Truman Scholarship Foundation.......        1800

chapter xxi--Commission of Fine Arts........................        2101

chapter xxiii--Arctic Research Commission...................        2301

chapter xxiv--James Madison Memorial Fellowship Foundation..        2400

chapter xxv--Corporation for National and Community Service.        2500

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

[[Page 5]]



       CHAPTER XII--CORPORATION FOR NATIONAL AND COMMUNITY SERVICE




  --------------------------------------------------------------------
Part                                                                Page
1200

[Reserved]

1201            Production or disclosure of official 
                    information in response to court orders, 
                    subpoenas, notices of depositions, 
                    requests for admissions, 
                    interrogatories, or in connection with 
                    Federal or State litigation.............           7
1203            Nondiscrimination in federally assisted 
                    programs--Effectuation of title VI of 
                    the Civil Rights Act of 1964............          11
1206            Grants and contracts--Suspension and 
                    termination and denial of application 
                    for refunding...........................          20
1210-1211

[Reserved]

1212

Volunteer agencies procedures for National grant volunteers [Reserved]

1214            Enforcement of nondiscrimination on the 
                    basis of handicap in programs or 
                    activities conducted by ACTION..........          31
1216            Nondisplacement of employed workers and 
                    nonimpairment of contracts for service..          36
1217-1219

[Reserved]

1220            Payment of volunteer legal expenses.........          37
1222

[Reserved]

1225            Member and volunteer discrimination 
                    complaint procedure.....................          40
1226            Prohibitions on electoral and lobbying 
                    activities..............................          47
1230            New restrictions on lobbying................          50
1232            Nondiscrimination on basis of handicap in 
                    programs or activities receiving Federal 
                    financial assistance....................          62
1233            Intergovernmental review of ACTION programs.          69
1235            Locally generated contributions in Older 
                    American Volunteer Programs.............          71
1236-1299

 [Reserved]

[[Page 7]]

                          PART 1200 [RESERVED]



PART 1201_PRODUCTION OR DISCLOSURE OF OFFICIAL INFORMATION IN RESPONSE 
TO COURT ORDERS, SUBPOENAS, NOTICES OF DEPOSITIONS, REQUESTS FOR ADMISSIONS, 
INTERROGATORIES, OR IN CONNECTION WITH FEDERAL OR STATE LITIGATION--
Table of Contents



Sec.
1201.1 Definitions.
1201.2 Scope.
1201.3 Service of summonses and complaints.
1201.4 Service of subpoenas, court orders, and other demands or requests 
          for official information or action.
1201.5 Testimony and production of documents prohibited unless approved 
          by appropriate Corporation officials.
1201.6 Procedure when testimony or production of documents is sought.
1201.7 Procedure when response is required prior to receiving 
          instructions.
1201.8 Procedure in the event of an adverse ruling.
1201.9 Considerations in determining whether the Corporation will comply 
          with a demand or request.
1201.10 Prohibition on providing expert or opinion testimony.
1201.11 Authority.

    Authority: 42 U.S.C. 12501 et seq.

    Source: 63 FR 4598, Jan. 30, 1998, unless otherwise noted.



Sec.  1201.1  Definitions.

    (a) Corporation Employee means the Chief Executive Officer of the 
Corporation and all employees, former employees, National Civilian 
Community Corps Members (hereinafter sometimes known as ``Corps 
Members''), and VISTA Volunteers (hereinafter sometimes also known as 
``AmeriCorps*VISTA Members''), who are or were subject to the 
supervision, jurisdiction, or control of the Chief Executive Officer, 
except as the Corporation may otherwise determine in a particular case.
    (b) Litigation encompasses all pre-trial, trial, and post-trial 
stages of all judicial or administrative actions, hearings, 
investigations, or similar proceedings before courts, commissions, 
boards, or other judicial or quasi-judicial bodies or tribunals, whether 
criminal, civil, or administrative in nature.
    (c) Official Information means all information of any kind, however 
stored, that is in the custody and control of the Corporation, relates 
to information in the custody and control of the Corporation, or was 
acquired by individuals connected with the Corporation as part of their 
official status within the Corporation while such individuals are 
employed by, or serve on behalf of, the Corporation.



Sec.  1201.2  Scope.

    (a) This part states the procedures followed with respect to:
    (1) Service of summonses and complaints or other requests or demands 
directed to the Corporation or to any Corporation employee in connection 
with Federal or State litigation arising out of, or involving the 
performance of, official activities of the Corporation; and
    (2) Oral or written disclosure, in response to subpoenas, orders, or 
other requests or demands from Federal or by State judicial or quasi-
judicial authority, whether civil or criminal, or in response to 
requests for depositions, affidavits, admissions, responses to 
interrogatories, document production, or other litigation-related 
matters of:
    (i) Any material contained in the files of the Corporation; or
    (ii) Any information acquired:
    (A) When the subject of the request is currently a Corporation 
employee or was a Corporation employee; or
    (B) As part of the performance of the person's duties or by virtue 
of the person's position.
    (b) Sections 1201.3 through 1201.10 do not apply to:
    (1) Testimony or records provided in accordance with the Office of 
Personnel Management regulations implementing 5 U.S.C. 6322.
    (2) Requests for, and release of, records under the Freedom of 
Information Act, 5 U.S.C. 552, and the Privacy Act, 5 U.S.C. 552a.
    (3) Disclosures to the Office of Inspector General or requests by 
the Office of Inspector General for official information or records.
    (c) The procedures in this part apply to Corporation employees and 
official

[[Page 8]]

information within the Corporation Office of Inspector General. However, 
any determinations or other actions to be made by the General Counsel 
under this part, relating to employees or official information within 
the Office of Inspector General, shall be made by the Inspector General.

[63 FR 4598, Jan. 30, 1998, as amended at 63 FR 64199, Nov. 19, 1998]



Sec.  1201.3  Service of summonses and complaints.

    (a) Only the Corporation's General Counsel or his/her designee 
(hereinafter ``General Counsel''), is authorized to receive and accept 
summonses or complaints sought to be served upon the Corporation or its 
employees. All such documents should be delivered or addressed to 
General Counsel, Corporation for National and Community Service, 250 E 
Street SW., Washington, DC 20525.
    (b) In the event any summons or complaint is delivered to a 
Corporation Employee other than in the manner specified in this part, 
such attempted service shall be ineffective, and the recipient thereof 
shall either decline to accept the proffered service or return such 
document under cover of a written communication that refers the person 
attempting to effect service to the procedures set forth in this part.
    (c) Except as otherwise provided in Sec.  1201.4(c), the Corporation 
is not an authorized agent for service of process with respect to civil 
litigation against Corporation Employees purely in their personal, non-
official capacity. Copies of summonses or complaints directed to 
Corporation Employees in connection with legal proceedings arising out 
of the performance of official duties may, however, be served upon the 
General Counsel.

[63 FR 4598, Jan. 30, 1998, as amended at 81 FR 12600, Mar. 10, 2016]



Sec.  1201.4  Service of subpoenas, court orders, and other demands 
or requests for official information or action.

    (a) Except in cases in which the Corporation is represented by legal 
counsel who have entered an appearance or otherwise given notice of 
their representation, only the General Counsel is authorized to receive 
and accept subpoenas, or other demands or requests directed to any 
component of the Corporation or Corporation Employees, whether civil or 
criminal in nature, for:
    (1) Material, including documents, contained in the files of the 
Corporation;
    (2) Information, including testimony, affidavits, declarations, 
admissions, response to interrogatories, or informal statements, 
relating to material contained in the files of the Corporation or which 
any Corporation employee acquired in the course and scope of the 
performance of official duties;
    (3) Garnishment or attachment of compensation of Corporation 
Employees; or
    (4) The performance or non-performance of any official Corporation 
duty.
    (b) In the event that any subpoena, demand, or request is sought to 
be delivered to a Corporation Employee other than in the manner 
prescribed in paragraph (a) of this section, such attempted service 
shall be ineffective. Such Corporation Employee shall, after 
consultation with the General Counsel, decline to accept the subpoena, 
and demand or request the return of it under cover of a written 
communication referring to the procedures prescribed in this part.
    (c) Except as otherwise provided in this part, the Corporation is 
not an agent for service or otherwise authorized to accept on behalf of 
Corporation Employees any subpoenas, show-cause orders, or similar 
compulsory process of federal or state courts, or requests from private 
individuals or attorneys, which are not related to the employees' 
official duties except upon the express, written authorization of the 
individual Corporation Employee to whom such demand or request is 
directed.
    (d) Acceptance of such documents by the General Counsel does not 
constitute a waiver of any defenses that might otherwise exist with 
respect to service under the Federal Rules of Civil or Criminal 
Procedure at 28 U.S.C. Appendix, Rules 4-6 or 18 USC Appendix or other 
applicable rules.

[[Page 9]]



Sec.  1201.5  Testimony and production of documents prohibited unless approved 
by appropriate Corporation officials.

    (a) Unless authorized to do so by the General Counsel, no 
Corporation Employee shall, in response to a demand or request in 
connection with any litigation, whether criminal or civil, provide oral 
or written testimony by deposition, declaration, affidavit, or otherwise 
concerning any information acquired:
    (1) While such person was a Corporation Employee;
    (2) As part of the performance of that person's official duties; or
    (3) By virtue of that person's official status.
    (b) No Corporation Employee shall, in response to a demand or 
request in connection with any litigation, produce for use at such 
proceedings any document or any other material acquired as part of the 
performance of that individual's duties or by virtue of that 
individual's official status, unless authorized to do so by the General 
Counsel.



Sec.  1201.6  Procedure when testimony or production of documents is sought.

    (a) If Official Information is sought, either through testimony or 
otherwise, the party seeking such information must (except as otherwise 
required by federal law or authorized by the General Counsel) set forth 
in writing with as much specificity as possible, the nature and 
relevance of the Official Information sought. The party must identify 
the record or reasonably describe it in terms of date, format, subject 
matter, the offices originating or receiving the record, and the names 
of all persons to whom the record is known to relate. Corporation 
Employees may produce, disclose, release, comment upon, or testify 
concerning only those matters that were specified in writing and 
properly approved by the General Counsel. The General Counsel may waive 
this requirement in appropriate circumstances.
    (b) To the extent it deems necessary or appropriate, the Corporation 
may also require from the party seeking such testimony or documents a 
schedule of all reasonably foreseeable demands, including but not 
limited to the names of all current and former Corporation Employees 
from whom discovery will be sought, areas of inquiry, expected duration 
of proceedings requiring oral testimony, and identification of 
potentially relevant documents.
    (c) The General Counsel will notify the Corporation Employee and 
such other persons as circumstances may warrant of the decision 
regarding compliance with the request or demand.
    (d) The General Counsel will consult with the Department of Justice 
regarding legal representation for Corporation Employees in appropriate 
cases.



Sec.  1201.7  Procedure when response to demand is required 
prior to receiving instructions.

    (a) If a response to a demand or request for Official Information 
pursuant to litigation is required before the General Counsel renders a 
decision, the Corporation will request that either a Department of 
Justice attorney or a Corporation attorney designated for the purpose:
    (1) Appear, if feasible, with the employee upon whom the demand has 
been made;
    (2) Furnish the court or other authority with a copy of the 
regulations contained in this part;
    (3) Inform the court or other authority that the demand or request 
has been or is being, as the case may be, referred for the prompt 
consideration of the General Counsel; and
    (4) Respectfully request the court or authority to stay the demand 
or request pending receipt of the requested instructions.
    (b) In the event that an immediate demand or request for production 
or disclosure is made in circumstances that would preclude the proper 
designation or appearance of a Department of Justice or Corporation 
attorney on behalf of the Corporation employee, the Corporation Employee 
shall respectfully request the court or other authority for a reasonable 
stay of proceedings for the purpose of obtaining instructions from the 
Corporation.

[[Page 10]]



Sec.  1201.8  Procedure in the event of an adverse ruling.

    If the court or other authority declines to stay the effect of the 
demand or request in response to a request made pursuant to Sec.  
1201.7, or if the court or other authority rules that the demand or 
request must be complied with irrespective of the Corporation's 
instructions not to produce the material or disclose the information 
sought, the Corporation Employee upon whom the demand or request has 
been made shall, if so directed by the General Counsel, respectfully 
decline to comply with the demand or request, citing United States ex 
rel. Touhy v. Ragen, 340 U.S. 462 (1951), and the regulations in this 
part.



Sec.  1201.9  Considerations in determining whether the Corporation 
will comply with a demand or request.

    (a) In deciding whether to comply with a demand or request, 
Corporation officials and attorneys are encouraged to consider:
    (1) Whether such compliance would be unduly burdensome or otherwise 
inappropriate under the applicable rules of discovery or the rules of 
procedure governing the case or matter in which the demand arose;
    (2) Whether compliance is appropriate under the relevant substantive 
law concerning privilege or disclosure of information;
    (3) The public interest;
    (4) The need to conserve the time of Corporation Employees for the 
conduct of official business;
    (5) The need to avoid spending the time and money of the United 
States for private purposes;
    (6) The need to maintain impartiality between private litigants in 
cases where a government interest is not implicated;
    (7) Whether compliance would have an adverse effect on performance 
by the Corporation of its mission and duties; and
    (8) The need to avoid involving the Corporation in controversial 
issues not related to its mission.
    (b) Among those demands and requests in response to which compliance 
may not ordinarily be authorized are those when compliance would:
    (1) Violate a statute, a rule of procedure, a specific regulation, 
or an executive order;
    (2) Reveal information properly classified in the interest of 
national security;
    (3) Reveal confidential commercial or financial information or trade 
secrets without the owner's consent;
    (4) Reveal the internal deliberative processes of the Executive 
Branch; or
    (5) Potentially impede or prejudice an ongoing law enforcement 
investigation.



Sec.  1201.10  Prohibition on providing expert or opinion testimony.

    (a) Except as provided in this section, Corporation Employees shall 
not provide opinion or expert testimony based upon information that they 
acquired in the scope and performance of their official Corporation 
duties, except on behalf of the United States or a party represented by 
the Department of Justice.
    (b) Upon a showing by the requester of exceptional need or unique 
circumstances and that the anticipated testimony will not be adverse to 
the interests of the United States, the General Counsel, in the exercise 
of discretion, may grant special, written authorization for Corporation 
Employees to appear and testify as expert witnesses at no expense to the 
United States.
    (c) If, despite the final determination of the General Counsel, a 
court of competent jurisdiction or other appropriate authority orders 
the appearance and expert or opinion testimony of a Corporation Employee 
such individual shall immediately inform the General Counsel of such 
order. If the General Counsel determines that no further legal review of 
or challenge to the court's order will be made, the Corporation Employee 
shall comply with the order. If so directed by the General Counsel, 
however, the individual shall respectfully decline to testify.



Sec.  1201.11  Authority.

    The Corporation receives authority to change its governing 
regulations from the National and Community Service Act of 1990 as 
amended (42 U.S.C. 12501 et seq.).

[[Page 11]]



PART 1203_NONDISCRIMINATION IN FEDERALLY ASSISTED PROGRAMS_
EFFECTUATION OF TITLE VI OF THE CIVIL RIGHTS ACT OF 1964--Table of Contents



Sec.
1203.1 Purpose.
1203.2 Application of this part.
1203.3 Definitions.
1203.4 Discrimination prohibited.
1203.5 Assurances required.
1203.6 Compliance information.
1203.7 Conduct of investigations.
1203.8 Procedure for effecting compliance.
1203.9 Hearings.
1203.10 Decisions and notices.
1203.11 Judicial review.
1203.12 Effect on other regulations, forms, and instructions.

Appendix A to Part 1203--Programs to Which This Part Applies
Appendix B to Part 1203--Programs to Which This Part Applies When a 
          Primary Objective of the Federal Financial Assistance Is To 
          Provide Employment

    Authority: Sec. 602, 78 Stat. 252; 42 U.S.C. 2000d-1.

    Source: 39 FR 27322, July 26, 1974, unless otherwise noted.



Sec.  1203.1  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 title VI), to 
the end that a person in the United States shall not, 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 a program or activity receiving Federal financial assistance from 
ACTION.



Sec.  1203.2  Application of this part.

    (a) This part applies to each program for which Federal financial 
assistance is authorized under a law administered by ACTION, including 
the types of Federal financial assistance listed in appendix A to this 
part. It also applies to money paid, property transferred, or other 
Federal financial assistance extended after the effective date of this 
part pursuant to an application approved before that effective date. 
This part does not apply to:
    (1) Federal financial assistance by way of insurance or guaranty 
contracts;
    (2) Money paid, property transferred, or other assistance extended 
before the effective date of this part, except when the assistance was 
subject to the title VI regulations of an agency whose responsibilities 
are now exercised by ACTION;
    (3) Assistance to any individual who is the ultimate beneficiary; or
    (4) Employment practices, under a program, of an employer, 
employment agency, or labor organization, except to the extent described 
in Sec.  1203.4(c).

The fact that a type of Federal financial assistance is not listed in 
Appendix A to this part does not mean, if title VI is otherwise 
applicable, that a program is not covered. Other types of Federal 
financial assistance under statutes now in force or hereinafter enacted 
may be added to Appendix A to this part.
    (b) In a program receiving Federal financial assistance in the form, 
or for the acquisition, of real property or an interest in real 
property, to the extent that rights to space on, over, or under that 
property are included, the nondiscrimination requirement of this part 
extends to a facility located wholly or in part in that space.

[39 FR 27322, July 26, 1974, as amended at 68 FR 51387, Aug. 26, 2003]



Sec.  1203.3  Definitions.

    Unless the context requires otherwise, in this part:
    (a) Applicant means a person who submits an application, request, or 
plan required to be approved by ACTION, or by a primary recipient, as a 
condition to eligibility for Federal financial assistance, and 
``application'' means that application, request, or plan.
    (b) Facility includes all or any part of structures, equipment, or 
other real or personal property or interests therein, and the provision 
of facilities includes the construction, expansion, renovation, 
remodeling, alteration, or acquisition of facilities.
    (c) Federal financial assistance includes:
    (1) Grants and loans of Federal funds;
    (2) The grant or donation of Federal property and interests in 
property;
    (3) The detail of Federal personnel;

[[Page 12]]

    (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 the 
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 the 
sale or lease to the recipient; and
    (5) A Federal agreement, arrangement, or other contract which has as 
one of its purposes the provision of assistance.
    (d) Primary recipient means a recipient that is authorized or 
required to extend Federal financial assistance to another recipient.
    (e) Program or activity and program mean all of the operations of 
any entity described in paragraphs (e)(1) through (4) of this section, 
any part of which is extended Federal financial assistance:
    (1)(i) A department, agency, special purpose district, or other 
instrumentality of a State or of a local government; or
    (ii) The entity of such State or local government that distributes 
such assistance and each such department or agency (and each other State 
or local government entity) to which the assistance is extended, in the 
case of assistance to a State or local government;
    (2)(i) A college, university, or other postsecondary institution, or 
a public system of higher education; or
    (ii) A local educational agency (as defined in 20 U.S.C. 7801), 
system of vocational education, or other school system;
    (3)(i) An entire corporation, partnership, or other private 
organization, or an entire sole proprietorship--
    (A) If assistance is extended to such corporation, partnership, 
private organization, or sole proprietorship as a whole; or
    (B) Which is principally engaged in the business of providing 
education, health care, housing, social services, or parks and 
recreation; or
    (ii) The entire plant or other comparable, geographically separate 
facility to which Federal financial assistance is extended, in the case 
of any other corporation, partnership, private organization, or sole 
proprietorship; or
    (4) Any other entity which is established by two or more of the 
entities described in paragraph (e)(1), (2), or (3) of this section.
    (f) Recipient may mean any State, the District of Columbia, the 
Commonwealth of Puerto Rico, a territory or possession of the United 
States, or any political subdivision thereof, or instrumentality 
thereof, any public or private agency, institution, or organization, or 
other entity, or any individual in any State, the District of Columbia, 
the Commonwealth of Puerto Rico, or territory or possession of the 
United States, to whom Federal financial assistance is extended, 
directly or through another recipient, including any successor, 
assignee, or transferee thereof, but the term does not include any 
ultimate beneficiary.
    (g) Director means the Director of ACTION or any person to whom he 
has delegated his authority in the matter concerned.

[39 FR 27322, July 26, 1974, as amended at 68 FR 51387, Aug. 26, 2003]



Sec.  1203.4  Discrimination prohibited.

    (a) General. A person in the United States shall not, 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, a program to which this part applies.
    (b) Specific discriminatory actions prohibited. (1) A recipient to 
which this part applies may not, directly or through contractual or 
other arrangements, on the ground of race, color, or national origin--
    (i) Deny a person a service, financial aid, or other benefit 
provided under the program;
    (ii) Provide a service, financial aid, or other benefit to a person 
which is different, or is provided in a different manner, from that 
provided to others under the program;
    (iii) Subject a person to segregation or separate treatment in any 
matter related to his receipt of a service, financial aid, or other 
benefit under the program;
    (iv) Restrict a person in any way in the enjoyment of an advantage 
or

[[Page 13]]

privilege enjoyed by others receiving a service, financial aid, or other 
benefit under the program;
    (v) Treat a person differently from others in determining whether he 
satisfies an admission, enrollment, quota, eligibility, membership, or 
other requirement or condition which persons must meet in order to be 
provided a service, financial aid, or other benefit provided under the 
program;
    (vi) Deny a person an opportunity to participate in the program 
through the provision of services or otherwise or afford him an 
opportunity to do so which is different from that afforded others under 
the program; or
    (vii) Deny a person the opportunity to participate as a member of a 
planning or advisory body which is an integral part of the program.
    (2) A recipient, in determining the types of services, financial 
aid, or other benefits, or facilities which will be provided under a 
program or the class of persons to whom, or the situations in which, the 
services, financial aid, other benefits, or facilities will be provided 
under a program, or the class of persons to be afforded an opportunity 
to participate in a program, may not, directly or through contractual or 
other arrangements, utilize criteria or methods of administration which 
have the effect of subjecting persons to discrimination because of their 
race, color, or national origin, or have the effect of defeating or 
substantially impairing accomplishment of the objectives of the program 
with respect to individuals of a particular race, color, or national 
origin.
    (3) The enumeration of specific forms of prohibited discrimination 
in this paragraph does not limit the generality of the prohibition in 
paragraph (a) of this section.
    (4)(i) In administering a program regarding which the recipient had 
previously discriminated against persons on the ground of race, color, 
or national origin, the recipient shall take affirmative action to 
overcome the effects of prior discrimination.
    (ii) Even in the absence of prior discrimination a recipient in 
administering a program may take affirmative action to overcome the 
effect of conditions which resulted in limiting participation by persons 
of a particular race, color, or national origin.
    (c) Employment practices. (1) When a primary objective of the 
Federal financial assistance to which this part applies is to provide 
employment, a recipient or other party subject to this part shall not, 
directly or through contractual or other arrangements, subject a person 
to discrimination on the ground of race, color, or national origin in 
its employment practices under the program (including recruitment or 
recruitment advertising, hiring, firing, upgrading, promotion, demotion, 
transfer, layoff, termination, rates of pay, or other forms of 
compensation or benefits, selection for training or apprenticeship, use 
of facilities, and treatment of employees). A recipient shall take 
affirmative action to insure that applicants are employed, and employees 
are treated during employment, without regard to race, color, or 
national origin. The requirements applicable to construction employment 
under a program are those specified in or pursuant to part III of 
Executive Order 11246 or any Executive order which supersedes it.
    (2) Federal financial assistance to programs under laws funded or 
administered by ACTION which have as a primary objective the providing 
of employment include those set forth in Appendix B to this part.
    (3) Where a primary objective of the Federal financial assistance is 
not to provide employment, but discrimination on the ground of race, 
color, or national origin in the employment practices of the recipient 
tends, on the ground of race, color, or national origin, to exclude 
persons from participation in, to deny them the benefits of, or to 
subject them to discrimination under any program to which this part 
applies, the provisions of paragraph (c)(1) of this section apply to the 
employment practices of the recipient to the extent necessary to assure 
equality of opportunity to and nondiscriminatory treatment of 
beneficiaries.
    (d) 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

[[Page 14]]

of, or subjecting them to discrimination under, a program to which this 
part applies, on the ground of race, color, or national origin; or with 
the purpose or effect of defeating or substantially impairing the 
accomplishment of the objectives of title VI of this part.

[39 FR 27322, July 26, 1974, as amended at 68 FR 51387, Aug. 26, 2003]



Sec.  1203.5  Assurances required.

    (a) General. (1) An application for Federal financial assistance to 
which this part applies, except an application to which paragraph (d) of 
this section applies, and every application for Federal financial 
assistance to provide a facility shall, as a condition to its approval 
and the extension of Federal financial assistance pursuant to the 
application, contain or be accompanied by, assurances that the program 
will be conducted or the facility operated in compliance with the 
requirements imposed by or pursuant to this part. Every award of Federal 
financial assistance shall require the submission of these assurances. 
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 assurances shall obligate the recipient, or, 
in the case of a subsequent transfer, the transferee, for the period 
during which the property is used for a purpose for which the Federal 
financial assistance is extended or for another purpose involving the 
provision of similar services or benefits, or for as long as the 
recipient retains ownership or possession of the property, whichever is 
longer. In other cases, the assurances obligate the recipient for the 
period during which the Federal financial assistance is extended to the 
program. In the case where the assistance is sought for the construction 
of a facility or part of a facility, the assurances shall extend to the 
entire facility and to the facilities operated in connection therewith. 
ACTION shall specify the form of the foregoing assurances and the extent 
to which like assurances will be required of subgrantees, contractors 
and subcontractors, transferees, successors in interest, and other 
participants. The assurances shall include provisions which give the 
United States the right to seek judicial enforcement.
    (2) When 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 involving the provision of similar services or 
benefits. When no transfer of property of interest therein from the 
Federal Government is involved, but property is acquired or improved 
with Federal financial assistance, the recipient shall agree to include 
a covenant in any subsequent transfer of the property. When the property 
is obtained from the Federal Government, the covenant may also include a 
condition coupled with a right to be reserved by ACTION to revert title 
to the property in the event of a breach of the covenant where, in the 
discretion of ACTION, such a condition and right of reverter is 
appropriate to the statute under which the real property is obtained and 
to the nature of the grant and the grantee. In 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 property for the purposes for which the 
property was transferred, ACTION may agree, on request of the transferee 
and if necessary to accomplish the financing, and on conditions as he 
deems appropriate, to subordinate a right of reversion to the lien of a 
mortgage or other encumbrance.
    (b) Assurances from Government agencies. In the case of an 
application from a department, agency, or office of a State or local 
government for Federal financial assistance for a specified purpose, the 
assurance required by this section shall extend to any other department, 
agency, or office of the same governmental unit if the policies of the 
other department, agency, or office will substantially affect the 
project for which Federal financial assistance is requested.

[[Page 15]]

    (c) Assurance from academic and other institutions. (1) In the case 
of an application for Federal financial assistance by an academic 
institution, the assurance required by this section extends to admission 
practices and to all other practices relating to the treatment of 
students.
    (2) The assurance required by an academic institution, detention or 
correctional facility, or any other institution or facility, relating to 
the institution's practices with respect to admission or other treatment 
of individuals as students, patients, wards, inmates, persons subject to 
control, or clients of the institution or facility or to the opportunity 
to participate in the provision of services, disposition, treatment, or 
benefits to these individuals, is applicable to the entire institution 
or facility.
    (d) Continuing Federal financial assistance. Every application by a 
State or a State agency for continuing Federal financial assistance to 
which this part applies (including the types of Federal financial 
assistance listed in Appendix A to this part) shall as a condition to 
its approval and the extension of 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 
the requirements imposed by or pursuant to this part, and
    (2) Provide or be accompanied by provision for methods of 
administration for the program as are found by ACTION to give reasonable 
guarantee that the applicant and all recipients of Federal financial 
assistance under the program will comply with the requirements imposed 
by or pursuant to this part.

(Approved by the Office of Management and Budget under control number 
3001-0016, paragraph (a)(1))

[39 FR 27322, July 26, 1974, as amended at 47 FR 3553, Jan. 26, 1982; 68 
FR 51387, Aug. 26, 2003]



Sec.  1203.6  Compliance information.

    (a) Cooperation and assistance. ACTION, to the fullest extent 
practicable, shall 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 records and submit 
to ACTION timely, complete, and accurate compliance reports at the 
times, and in the form and containing the information ACTION may 
determine necessary to enable it to ascertain whether the recipient has 
complied or is complying with this part. In the case in which a primary 
recipient extends Federal financial assistance to other recipients, the 
other recipients shall also submit compliance reports to the primary 
recipient as may be necessary to enable the primary recipient to carry 
out its obligations under this part. In general, recipients should have 
available for ACTION racial and ethnic data showing the extent to which 
members of minority groups are beneficiaries of federally assisted 
programs.
    (c) Access to sources of information. Each recipient shall permit 
access by ACTION during normal business hours to its books, records, 
accounts, and other sources of information, and its facilities as may be 
pertinent to ascertain compliance with this part. When information 
required of a recipient is in the exclusive possession of an other 
agency, institution, or person and this agency, institution, or person 
fails or refuses to furnish this information, the recipient shall so 
certify in its report and shall set forth what efforts it has made to 
obtain the information.
    (d) Information to beneficiaries and participants. Each recipient 
shall make available to participants, beneficiaries, and other 
interested persons the information regarding the provisions of this part 
and its applicability to the program for which the recipient received 
Federal financial assistance, and make this information available to 
them in the manner, as ACTION finds necessary, to apprise the persons of 
the protections against discrimination assured them by title VI and this 
part.

[39 FR 27322, July 26, 1974, as amended at 68 FR 51387, Aug. 26, 2003]



Sec.  1203.7  Conduct of investigations.

    (a) Periodic compliance reviews. ACTION may from time to time review 
the practices of recipients to determine

[[Page 16]]

whether they are complying with this part.
    (b) Complaints. Any person who believes himself or any specific 
class of persons to be subjected to discrimination prohibited by this 
part may by himself or by a representative file with ACTION a written 
complaint. A complaint shall be filed not later than 180 days after the 
date of the alleged discrimination, unless the time for filing is 
extended by ACTION.
    (c) Investigations. ACTION will make a prompt investigation whenever 
a compliance review, report, complaint, or other information indicates a 
possible failure to comply with this part. The investigation will 
include, when 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, ACTION will so inform the recipient and the matter will be 
resolved by voluntary means whenever possible. If it has been determined 
that the matter cannot be resolved by voluntary means, action will be 
taken as provided for in Sec.  1203.8.
    (2) If an investigation does not warrant action pursuant to 
paragraph (d)(1) of this section, ACTION will so inform, in writing, the 
recipient and the complainant, if any.
    (e) Intimidatory or retaliatory acts prohibited. A recipient or 
other person shall not intimidate, threaten, coerce, or discriminate 
against an individual for the purpose of interfering with a right or 
privilege secured by section 601 of title VI of 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 an investigation, hearing, or judicial proceeding arising 
thereunder.



Sec.  1203.8  Procedure for effecting compliance.

    (a) General. (1) 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 other means 
authorized by law.
    (2) Other means may include, but are not limited to:
    (i) A reference to the Department of Justice with a recommendation 
that appropriate proceedings be brought to enforce the rights of the 
United States under a law of the United States (including other titles 
of the Civil Rights Act of 1964) or an assurance or other contractual 
undertaking, and
    (ii) An applicable proceeding under State or local law.
    (b) Noncompliance with Sec.  1203.5. If an applicant fails or 
refuses to furnish an assurance required under Sec.  1203.5 or otherwise 
fails or refuses to comply with a requirement imposed by or pursuant to 
that section, Federal financial assistance may be refused in accordance 
with the procedures of paragraph (c) of this section. ACTION shall not 
be required to provide assistance in that case during the pendency of 
the administrative proceedings under this paragraph. Subject, however, 
to Sec.  1203.12, ACTION shall continue assistance during the pendency 
of the proceedings where the assistance is due and payable pursuant to 
an application approved prior to the effective date of this part.
    (c) Termination of or refusal to grant or to continue Federal 
financial assistance. An order suspending, terminating, or refusing to 
grant or to continue Federal financial assistance shall not become 
effective until--
    (1) ACTION has advised the applicant or recipient of his failure to 
comply and has determined that compliance cannot be secured by informal 
voluntary means;
    (2) There has been an express finding on the record, after 
opportunity for hearing, of a failure by the applicant or recipient to 
comply with a requirement imposed by or pursuant to this part;

[[Page 17]]

    (3) The action has been approved by the Director pursuant to Sec.  
1203.10(e); and
    (4) The expiration of 30 days after the Director has filed with the 
committee of the House and the committee of the Senate having 
legislative jurisdiction over the program involved, a full written 
report of the circumstances and the grounds for the action.

An action to suspend or terminate or 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 a finding has been made and shall be limited in its effect to the 
particular program, or part thereof, in which the noncompliance has been 
so found.
    (d) Other means authorized by law. An action to effect compliance 
with title VI by other means authorized by law shall not be taken by 
ACTION until--
    (1) ACTION 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 a notice 
to the recipient or person. During this period of at least 10 days, 
additional efforts shall be made to persuade the recipient or other 
person to comply with the regulation and to take corrective action as 
may be appropriate.



Sec.  1203.9  Hearings.

    (a) Opportunity for hearing. When an opportunity for a hearing is 
required by Sec.  1203.8(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 notice within 
which the applicant or recipient may request of ACTION 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 time and place. The time and 
place so fixed shall be reasonable and 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 is deemed to be a 
waiver of the right to a hearing under section 602 of title VI and Sec.  
1203.8(c) and consent to the making of a decision on the basis of the 
information available.
    (b) Time and place of hearing. Hearings shall be held at the offices 
of ACTION in Washington, DC, at a time fixed by ACTION unless it 
determines that the convenience of the applicant or recipient or of 
ACTION requires that another place be selected. Hearings shall be held 
before the Director, or at his discretion, before a hearing examiner 
appointed in accordance with section 3105 of title 5, United States 
Code, or detailed under section 3344 of title 5, United States Code.
    (c) Right to counsel. In all proceedings under this section, the 
applicant or recipient and ACTION have the right to be represented by 
counsel.
    (d) Procedures, evidence, and record. (1) The hearing, decision, and 
an administrative review thereof shall be conducted in conformity with 
sections 554 through 557 of title 5, United States Code, and in 
accordance with the 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 ACTION and the 
applicant or recipient are entitled to introduce relevant evidence on 
the issues as stated in the notice for hearing or as determined by the 
officer conducting the hearing at the outset of or during the hearing.
    (2) Technical rules of evidence do not apply to hearings conducted 
pursuant

[[Page 18]]

to this part, but rules or principles designed to assure production of 
the most credible evidence available and to subject testimony to test by 
cross-examination shall be applied where determined reasonably necessary 
by the officer conducting the hearing. The hearing officer may exclude 
irrelevant, immaterial, or unduly repetitious evidence. 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. Decisions shall be based on the 
hearing record and written findings shall be made.
    (e) Consolidated or joint hearings. In cases in which the same or 
related facts are asserted to constitute noncompliance with this part 
with respect to two or more Federal statutes, authorities, or other 
means by which Federal financial assistance is extended and to which 
this part applies, or noncompliance with this part and the regulations 
of one or more other Federal departments or agencies issued under title 
VI, ACTION may, by agreement with the other departments or agencies, 
when applicable, provide for the conduct of consolidated or joint 
hearings, and for the application to these hearings of rules or 
procedures not inconsistent with this part. Final decisions in these 
cases, insofar as this regulation is concerned, shall be made in 
accordance with Sec.  1203.10.

[39 FR 27322, July 26, 1974, as amended at 68 FR 51387, Aug. 26, 2003]



Sec.  1203.10  Decisions and notices.

    (a) Procedure on decisions by hearing examiner. If the hearing is 
held by a hearing examiner, the hearing examiner shall either make an 
initial decision, if so authorized, or certify the entire record 
including his recommended findings and proposed decision to the Director 
for a final decision, and a copy of the initial decision or 
certification shall be mailed to the applicant or recipient. When the 
initial decision is made by the hearing examiner, the applicant or 
recipient may, within 30 days after the mailing of a notice of initial 
decision, file with the Director his exceptions to the initial decision, 
with his reasons therefor. In the absence of exceptions, the Director 
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. 
On the filing of the exceptions or of notice of review, the Director 
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, subject to paragraph (e) of this 
section, shall constitute the final decision of the Director.
    (b) Decisions on record or review by the Director. When a record is 
certified to the Director for decision or the Director reviews the 
decision of a hearing examiner pursuant to paragraph (a) of this 
section, or when the Director conducts the hearing, the applicant or 
recipient shall be given reasonable opportunity to file with it briefs 
or other written statements of the recipient's contentions, and a 
written copy of the final decision of the Director will be sent to the 
applicant or recipient and to the complainant, if any.
    (c) Decisions on record where a hearing is waived. When a hearing is 
waived pursuant to Sec.  1203.9, a decision shall be made by ACTION on 
the record and a written copy of the decision shall be sent to the 
applicant or recipient, and to the complainant, if any.
    (d) Rulings required. Each decision of a hearing examiner or the 
Director shall set forth a 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 ACTION. A final decision by an official of ACTION 
other than by 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 title VI, shall

[[Page 19]]

promptly be transmitted to the Director, who may approve the decision, 
vacate it, or remit or mitigate a sanction imposed.
    (f) Content of orders. The final decision may provide for suspension 
or termination of, or refusal to grant or continue Federal financial 
assistance, in whole or in part, to which this regulation applies, and 
may contain the terms, conditions, and other provisions as are 
consistent with and will effectuate the purposes of title VI and this 
part, including provisions designed to assure that Federal financial 
assistance to which this regulation applies will not thereafter be 
extended to the applicant or recipient determined by the decision to be 
in default in its performance of an assurance given by it under this 
part, or to have otherwise failed to comply with this part, unless and 
until it corrects its noncompliance and satisfies ACTION 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 the 
order for eligibility, or if it brings itself into compliance with this 
part and provides reasonable assurance that it will fully comply with 
this part.
    (2) An applicant or recipient adversely affected by an order entered 
pursuant to paragraph (f) of this section may at any time request ACTION 
to restore fully its eligibility to receive Federal financial 
assistance. A request shall be supported by information showing that the 
applicant or recipient has met the requirements of paragraph (g)(1) of 
this section. If ACTION determines that those requirements have been 
satisfied, it shall restore the eligibility.
    (3) If ACTION denies a request, the applicant or recipient may 
submit a request for a hearing in writing, specifying why it believes 
ACTION is in error. The applicant or recipient shall be given an 
expeditious hearing, with a decision on the record in accordance with 
the rules or procedures issued by ACTION. The applicant or recipient 
shall be restored to eligibility if it proves at the 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 remain in effect.

[39 FR 27322, July 26, 1974, as amended at 68 FR 51387, Aug. 26, 2003]



Sec.  1203.11  Judicial review.

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



Sec.  1203.12  Effect on other regulations, forms, and instructions.

    (a) Effect on other regulations. Regulations, orders, or like 
directions issued before the effective date of this part by ACTION which 
impose requirements designed to prohibit discrimination against 
individuals on the ground of race, color, or national origin to which 
this part applies, and which authorizes the suspension or termination of 
or refusal to grant or to continue Federal financial assistance to an 
applicant for or recipient of assistance under a program for failure to 
comply with the requirements, are superseded to the extent that 
discrimination is prohibited by this part, except that nothing in this 
part relieves a person of an obligation assumed or imposed under a 
superseded regulation, order, instruction, or like direction, before the 
effective date of this part. This part does not supersede any of the 
following (including future amendments thereof):
    (1) Executive Order 11246 (3 CFR, 1965 Supp.) and regulations issued 
there under or
    (2) Any other orders, regulations, or instructions, insofar as these 
orders, regulations, or instructions prohibit discrimination on the 
ground of race, color, or national origin in a program or situation to 
which this part is inapplicable, or prohibit discrimination on any other 
ground.
    (b) Forms and instructions. ACTION shall issue and promptly make 
available to all interested persons forms and detailed instructions and 
procedures for effectuating this part as applied to programs to which 
this part applies, and for which it is responsible.

[[Page 20]]

    (c) Supervision and coordination. ACTION may from time to time 
assign to officials of ACTION, or to officials of other departments or 
agencies of the Government with the consent of the departments or 
agencies, responsibilities in connection with the effectuation of the 
purposes of title VI and this part (other than responsibilities for 
final decision as provided in Sec.  1203.10), including the achievement 
of effective coordination and maximum uniformity within ACTION and 
within the executive branch in the application of title VI and this part 
to similar programs and in similar situations. An action taken, 
determination made, or requirement imposed by an official of another 
department or agency acting pursuant to an assignment of responsibility 
under this paragraph shall have the same effect as though the action had 
been taken by ACTION.

[39 FR 27322, July 26, 1974, as amended at 68 FR 51387, Aug. 26, 2003]



Sec. Appendix A to Part 1203--Federal Financial Assistance to Which This 
                              Part Applies

    1. Grants for the development or operation of retired senior 
volunteer programs pursuant to section 601 of the Older Americans Act of 
1965, as amended (42 U.S.C. 3044).
    2. Grants for the development and operation of foster grandparents 
projects pursuant to section 611 of the Older Americans Act of 1965, as 
amended (42 U.S.C. 3044b).



Sec. Appendix B to Part 1203--Federal Financial Assistance to Which This 
     Part Applies When a Primary Objective of the Federal Financial 
                   Assistance Is To Provide Employment

    1. Grants for the development or operation of retired senior 
volunteer programs pursuant to section 601 of the Older Americans Act of 
1965, as amended (42 U.S.C. 3044).
    2. Grants for the development and operation of foster grandparents 
projects pursuant to section 611 of the Older Americans Act of 1965, as 
amended (42 U.S.C. 3044b).



PART 1206_GRANTS AND CONTRACTS_SUSPENSION AND TERMINATION AND DENIAL 
OF APPLICATION FOR REFUNDING--Table of Contents



           Subpart A_Suspension and Termination of Assistance

Sec.
1206.1-1 Purpose and scope.
1206.1-2 Application of this part.
1206.1-3 Definitions.
1206.1-4 Suspension.
1206.1-5 Termination.
1206.1-6 Time and place of termination hearings.
1206.1-7 Termination hearing procedures.
1206.1-8 Decisions and notices regarding termination.
1206.1-9 Right to counsel; travel expenses.
1206.1-10 Modification of procedures by consent.
1206.1-11 Other remedies.

              Subpart B_Denial of Application for Refunding

1206.2-1 Applicability of this subpart.
1206.2-2 Purpose.
1206.2-3 Definitions.
1206.2-4 Procedures.
1206.2-5 Right to counsel.

    Authority: 42 U.S.C. 5052.

    Source: 69 FR 19110, Apr. 12, 2004, unless otherwise noted.



           Subpart A_Suspension and Termination of Assistance



Sec.  1206.1-1  Purpose and scope.

    (a) This subpart establishes rules and review procedures for the 
suspension and termination of assistance of National Senior Service 
Corps grants of assistance provided by the Corporation for National and 
Community Service pursuant to sections of title II of the Domestic 
Volunteer Service Act of 1973, Public Law 93-113, 87 Stat. 413 
(hereinafter the DVSA) because a recipient failed to materially comply 
with the terms and conditions of any grant or contract providing 
assistance under these sections of the DVSA, including applicable laws, 
regulations, issued program guidelines, instructions, grant conditions 
or approved work programs.
    (b) However, this subpart shall not apply to any administrative 
action of

[[Page 21]]

the Corporation for National and Community Service based upon any 
violation, or alleged violation, of title VI of the Civil Rights Act of 
1964 and sections 417(a) and (b) of Pub. L. 93-113 relating to 
nondiscrimination. In the case of any such violation or alleged 
violation other provisions of this chapter shall apply.

[69 FR 19110, Apr. 12, 2004, as amended at 80 FR 63457, Oct. 20, 2015]



Sec.  1206.1-2  Application of this part.

    This subpart applies to programs authorized under title II of the 
DVSA.

[80 FR 63457, Oct. 20, 2015]



Sec.  1206.1-3  Definitions.

    As used in this subpart--
    (a) The term Corporation means the Corporation for National and 
Community Service established pursuant to 42 U.S.C. 12651 and includes 
each Corporation State Office and Service Center.
    (b) The term CEO means the Chief Executive Officer of the 
Corporation.
    (c) The term responsible Corporation official means the CEO, Chief 
Financial Officer, the Director of the National Senior Service Corps 
programs, the appropriate Service Center Director and any Corporation 
for National and Community Service (CNCS) Headquarters or State office 
official who is authorized to make the grant or assistance in question. 
In addition to the foregoing officials, in the case of the suspension 
proceedings described in Sec.  1206.1-4, the term ``responsible 
Corporation official'' shall also include a designee of a CNCS official 
who is authorized to make the grant of assistance in question.
    (d) The term assistance means assistance under title II of the DVSA 
in the form of grants or contracts involving Federal funds for the 
administration for which the Director of the National Senior Service 
Corps programs has responsibility.
    (e) The term recipient means a public or private agency, institution 
or organization or a State or other political jurisdiction which has 
received assistance under title II of the DVSA. The term ``recipient'' 
does not include individuals who ultimately receive benefits under any 
DVSA program of assistance or National Senior Service Corps volunteers 
participating in any program.
    (f) The term agency means a public or private agency, institution, 
or organization or a State or other political jurisdiction with which 
the recipient has entered into an arrangement, contract or agreement to 
assist in its carrying out the development, conduct and administration 
of part of a project or program assisted under title II of the DVSA.
    (g) The term party in the case of a termination hearing means the 
Corporation, the recipient concerned, and any other agency or 
organization which has a right or which has been granted permission by 
the presiding officer to participate in a hearing concerning termination 
of financial assistance to the recipient pursuant to Sec.  1206.1-5(e).
    (h) The term termination means any action permanently terminating or 
curtailing assistance to all or any part of a program prior to the time 
that such assistance is concluded by the grant or contract terms and 
conditions, but does not include the refusal to provide new or 
additional assistance.
    (i) The term suspension means any action temporarily suspending or 
curtailing assistance in whole or in part, to all or any part of a 
program, prior to the time that such assistance is concluded by the 
grant or contract terms and conditions, but does not include the refusal 
to provide new or additional assistance.

[69 FR 19110, Apr. 12, 2004, as amended at 80 FR 63457, Oct. 20, 2015]



Sec.  1206.1-4  Suspension.

    (a) General. The responsible Corporation official may suspend 
financial assistance to a recipient in whole or in part for a material 
failure or threatened material failure to comply with any requirement 
stated in Sec.  1206.1-1. Such suspension shall be pursuant to notice 
and opportunity to show cause why assistance should not be suspended as 
provided in paragraph (b) of this section. However, in emergency cases, 
where the responsible Corporation official determines summary action is 
appropriate, the alternative summary

[[Page 22]]

procedure of paragraph (c) of this section shall be followed.
    (b) Suspension on notice. (1) Except as provided in paragraph (c) of 
this section, the procedure for suspension shall be on notice of intent 
to suspend as hereinafter provided.
    (2) The responsible Corporation official shall notify the recipient 
by letter or by telegram that the Corporation intends to suspend 
assistance in whole or in part unless good cause is shown why assistance 
should not be suspended. In such letter or telegram the responsible 
Corporation official shall specify the grounds for the proposed 
suspension and the proposed effective date of the suspension.
    (3) The responsible Corporation official shall also inform the 
recipient of its right to submit written material in opposition to the 
intended suspension and of its right to request an informal meeting at 
which the recipient may respond and attempt to show why such suspension 
should not occur. The period of time within which the recipient may 
submit such written material or request the informal meeting shall be 
established by the responsible Corporation official in the notice of 
intent to suspend. However, in no event shall the period of time within 
which the recipient must submit written material or request such a 
meeting be less than 5 days after the notice of intent to suspend 
assistance has been sent. If the recipient requests a meeting, the 
responsible Corporation official shall fix a time and place for the 
meeting, which shall not be less than 5 days after the recipient's 
request is received by the Corporation.
    (4) In lieu of the provisions of paragraph (b)(3) of this section 
dealing with the right of the recipient to request an informal meeting, 
the responsible Corporation official may on his own initiative establish 
a time and place for such a meeting and notify the recipient in writing 
or by telegram. However, in no event shall such a meeting be scheduled 
less than seven days after the notice of intent to suspend assistance is 
sent to the recipient.
    (5) The responsible Corporation official may in his discretion 
extend the period of time or date referred to in the previous paragraphs 
of this section and shall notify the recipient in writing or by telegram 
of any such extension.
    (6) At the time the responsible Corporation official sends the 
notification referred to in paragraphs (b)(2), (3), and (4) of this 
section to the recipient, he shall also send a copy of it to any agency 
whose activities or failures to act have substantially contributed to 
the proposed suspension, and shall inform such agency that it is 
entitled to submit written material or to participate in the informal 
meeting referred to in paragraphs (b)(3) and (4) of this section. In 
addition the responsible Corporation official may in his discretion give 
such notice to any other agency.
    (7) Within 3 days of receipt of the notice referred to in paragraphs 
(b)(2), (3), and (4) of this section, the recipient shall send a copy of 
such notice and a copy of these regulations to all agencies which would 
be financially affected by the proposed suspension action. Any agency 
that wishes to submit written material may do so within the time stated 
in the notice. Any agency that wishes to participate in the informal 
meeting with the responsible Corporation official contemplated herein 
may request permission to do so from the responsible Corporation 
official, who may in his discretion grant or deny such permission. In 
acting upon any such request from an agency, the responsible Corporation 
official shall take into account the effect of the proposed suspension 
on the particular agency, the extent to which the meeting would become 
unduly complicated as a result of granting such permission, and the 
extent to which the interests of the agency requesting such permission 
appear to be adequately represented by other participants.
    (8) In the notice of intent to suspend assistance the responsible 
Corporation official shall invite voluntary action to adequately correct 
the deficiency which led to the initiation of the suspension proceeding.
    (9) The responsible Corporation official shall consider any timely 
material presented to him in writing, any material presented to him 
during the course of the informal meeting provided for in paragraphs 
(b)(3) and (4) of this section

[[Page 23]]

as well as any showing that the recipient has adequately corrected the 
deficiency which led to the initiation of suspension proceedings. If 
after considering the material presented to him the responsible 
Corporation official concludes the recipient has failed to show cause 
why assistance should not be suspended, he may suspend assistance in 
whole or in part and under such terms and conditions as he shall 
specify.
    (10) Notice of such suspension shall be promptly transmitted to the 
recipient and shall become effective upon delivery. Suspension shall not 
exceed 30 days unless during such period of time termination proceedings 
are initiated in accordance with Sec.  1206.1-5, or unless the 
responsible Corporation official and the recipient agree to a 
continuation of the suspension for an additional period of time. If 
termination proceedings are initiated, the suspension of assistance 
shall remain in full force and effect until such proceedings have been 
fully concluded.
    (11) During a period of suspension no new expenditures shall be made 
and no new obligations shall be incurred in connection with the 
suspended program except as specifically authorized in writing by the 
responsible Corporation official. Expenditures to fulfill legally 
enforceable commitments made prior to the notice of suspension, in good 
faith and in accordance with the recipient's approved work program, and 
not in anticipation of suspension or termination, shall not be 
considered new expenditures. However, funds shall not be recognized as 
committed solely because the recipient has obligated them by contract or 
otherwise to an agency.
    Note: Willful misapplication of funds may violate Federal criminal 
statutes.
    (12) The responsible Corporation official may in his discretion 
modify the terms, conditions and nature of the suspension or rescind the 
suspension action at any time on his own initiative or upon a showing 
satisfactory to him that the recipient had adequately corrected the 
deficiency which led to the suspension and that repetition is not 
threatened. Suspensions partly or fully rescinded may, in the discretion 
of the responsible Corporation official be reimposed with or without 
further proceedings: Provided however, That the total time of suspension 
may not exceed 30 days unless termination proceedings are initiated in 
accordance with Sec.  1206.1-5 or unless the responsible Corporation 
official and the recipient agree to a continuation of the suspension for 
an additional period of time. If termination proceedings are initiated, 
the suspension of assistance shall remain in full force and effect until 
such proceedings have been fully concluded.
    (c) Summary suspension. (1) The responsible Corporation official may 
suspend assistance without the prior notice and opportunity to show 
cause provided in paragraph (b) of this section if he determines in his 
discretion that immediate suspension is necessary because of a serious 
risk of:
    (i) Substantial injury to or loss of project funds or property, or
    (ii) Violation of a Federal, State or local criminal statute, or
    (iii) Violation of section 403 of the DVSA or of Corporation rules, 
regulations, guidelines and instructions implementing this section of 
the DVSA, and that such risk is sufficiently serious to outweigh the 
general policy in favor of advance notice and opportunity to show cause.
    (2) Notice of summary suspension shall be given to the recipient by 
letter or by telegram, shall become effective upon delivery to the 
recipient, and shall specifically advise the recipient of the effective 
date of the suspension and the extent, terms, and condition of any 
partial suspension. The notice shall also forbid the recipient to make 
any new expenditures or incur any new obligations in connection with the 
suspended portion of the program. Expenditures to fulfill legally 
enforceable commitments made prior to the notice of suspension, in good 
faith and in accordance with the recipient's approved work program, and 
not in anticipation of suspension or termination, shall not be 
considered new expenditures. However, funds shall not be recognized as 
committed by a recipient solely because the recipient obligated them by 
contract or otherwise to an agency. (See note under paragraph (b)(11) of 
this section.)

[[Page 24]]

    (3) In the notice of summary suspension the responsible Corporation 
official shall advise the recipient that it may request the Corporation 
to provide it with an opportunity to show cause why the summary 
suspension should be rescinded. If the recipient requests such an 
opportunity, the responsible Corporation official shall immediately 
inform the recipient in writing of the specific grounds for the 
suspension and shall within 7 days after receiving such request from the 
recipient hold an informal meeting at which the recipient may show cause 
why the summary suspension should be rescinded. Notwithstanding the 
provisions of this paragraph, the responsible Corporation official may 
proceed to initiate termination proceedings at any time even though 
assistance to the recipient has been suspended in whole or in part. In 
the event that termination proceedings are initiated, the responsible 
Corporation official shall nevertheless afford the recipient, if it so 
requests, an opportunity to show cause why suspension should be 
rescinded pending the outcome of the termination proceedings.
    (4) Copies of the notice of summary suspension shall be furnished by 
the recipient to agencies in the same manner as notices of intent to 
suspend as set forth in paragraphs (b)(6), (7), and (8) of this section. 
Agencies may submit written material to the responsible Corporation 
official or to participate in the informal meeting as in the case of 
intended suspension proceedings set forth in paragraphs (b)(6) and (7) 
of this section.
    (5) The effective period of a summary suspension of assistance may 
not exceed 30 days unless termination proceedings are initiated in 
accordance with Sec.  1206.1-5, or unless the parties agree to a 
continuation of summary suspension for an additional period of time, or 
unless the recipient, in accordance with paragraph (c)(3) of this 
section, requests an opportunity to show cause why the summary 
suspension should be rescinded.
    (6) If the recipient requests an opportunity to show cause why a 
summary suspension action should be rescinded the suspension of 
assistance shall continue in effect until the recipient has been 
afforded such opportunity and a decision has been made. Such a decision 
shall be made within 5 days after the conclusion of the informal meeting 
referred to in paragraph (c)(3) of this section. If the responsible 
Corporation official concludes, after considering all material submitted 
to him, that the recipient has failed to show cause why the suspension 
should be rescinded, the responsible Corporation official may continue 
the suspension in effect for an additional 7 days: Provided however, 
That if termination proceedings are initiated, the summary suspension of 
assistance shall remain in full force and effect until all termination 
proceedings have been fully concluded.



Sec.  1206.1-5  Termination.

    (a) If the responsible Corporation official believes that an alleged 
failure to comply with any requirement stated in Sec.  1206.1-1 may be 
sufficiently serious to warrant termination of assistance, whether or 
not assistance has been suspended, he shall so notify the recipient by 
letter or telegram. The notice shall state that there appear to be 
grounds which warrant terminating the assistance and shall set forth the 
specific reasons therefore. If the reasons result in whole or 
substantial part from the activities of an agency other than the 
grantee, the notice shall identify that agency. The notice shall also 
advise the recipient that the matter has been set down for hearing at a 
stated time and place, in accordance with Sec.  1206.1-6. In the 
alternative the notice shall advise the recipient of its right to 
request a hearing and shall fix a period of time which shall not be less 
than 10 days in which the recipient may request such a hearing.
    (b) Termination hearings shall be conducted in accordance with the 
provision of Sec. Sec.  1206.1-7 and 1206.1-8. They shall be scheduled 
for the earliest practicable date, but not later than 30 days after a 
recipient has requested such a hearing in writing or by telegram. 
Consideration shall be given to a request by a recipient to advance or 
postpone the date of a hearing scheduled by the Corporation. Any such 
hearing shall afford the recipient a full and fair opportunity to 
demonstrate that it is in

[[Page 25]]

compliance with requirements specified in Sec.  1206.1-1. In any 
termination hearing, the Corporation shall have the burden of justifying 
the proposed termination action. However, if the basis of the proposed 
termination is the failure of a recipient to take action required by 
law, regulation, or other requirement specified in Sec.  1206.1-1, the 
recipient shall have the burden of proving that such action was timely 
taken.
    (c) If a recipient requests the Corporation to hold a hearing in 
accordance with paragraph (a) of this section, it shall send a copy of 
its request for such a hearing to all agencies which would be 
financially affected by the termination of assistance and to each agency 
identified in the notice pursuant to paragraph (a) of this section. This 
material shall be sent to these agencies at the same time the 
recipient's request is made to the Corporation. The recipient shall 
promptly send to the Corporation a list of the agencies to which it has 
sent such material and the date on which it was sent.
    (d) If the responsible Corporation official pursuant to paragraph 
(a) of this section informs a recipient that a proposed termination 
action has been set for hearing, the recipient shall within 5 days of 
its receipt of this notice send a copy of it to all agencies which would 
be financially affected by the termination and to each agency identified 
in the notice pursuant to paragraph (a) of this section. The recipient 
shall send the responsible Corporation official a list of all agencies 
notified and the date of notification.
    (e) If the responsible Corporation official has initiated 
termination proceedings because of the activities of an agency, that 
agency may participate in the hearing as a matter of right. Any other 
agency, person, or organization that wishes to participate in the 
hearing may, in accordance with Sec.  1206.1-7(d), request permission to 
do so from the presiding officer of the hearing. Such participation 
shall not, without the consent of the Corporation and the recipient, 
alter the time limitations for the delivery of papers or other 
procedures set forth in this section.
    (f) The results of the proceeding and any subsequent measure taken 
by the Corporation pursuant to this part shall be fully binding upon the 
recipient and all agencies whether or not they actually participated in 
the hearing.
    (g) A recipient may waive a hearing by notice to the responsible 
Corporation official in writing and submit written information and 
argument for the record. Such material shall be submitted to the 
responsible Corporation official within a reasonable period of time to 
be fixed by him upon the request of the recipient. The failure of a 
recipient to request a hearing, or to appear at a hearing for which a 
date has been set, unless excused for good cause, shall be deemed a 
waiver of the right to a hearing and consent to the making of a decision 
on the basis of such information as is then in the possession of the 
Corporation.
    (h) The responsible Corporation official may attempt, either 
personally or through a representative, to resolve the issues in dispute 
by informal means prior to the date of any applicable hearing.



Sec.  1206.1-6  Time and place of termination hearings.

    The termination hearing shall be held in Washington, DC, or in the 
appropriate Service Center or Corporation State Office, at a time and 
place fixed by the responsible Corporation official unless he determines 
that for the convenience of the Corporation, or of the parties or their 
representatives, requires that another place be selected.



Sec.  1206.1-7  Termination hearing procedures.

    (a) General. The termination hearing, decision, and any review shall 
be conducted in accordance with the rules of procedure in this section 
and Sec. Sec.  1206.1-8 and 1206.1-9.
    (b) Presiding officer. (1) The presiding officer at the hearing 
shall be the responsible Corporation official or, at the discretion of 
the responsible Corporation official, an independent hearing examiner 
designated as promptly as possible in accordance with section 3105 of 
title 5 of the United States Code. The presiding officer shall conduct a 
full and fair hearing, avoid delay, maintain order, and make a 
sufficient record for a full and true disclosure of the facts and 
issues. To accomplish

[[Page 26]]

these ends, the presiding officer shall have all powers authorized by 
law, and he may make all procedural and evidentiary rulings necessary 
for the conduct of the hearing. The hearing shall be open to the public 
unless the presiding officer for good cause shown shall otherwise 
determine.
    (2) After the notice described in paragraph (f) of this section is 
filed with the presiding officer, he shall not consult any person or 
party on a fact in issue unless on written notice and opportunity for 
all parties to participate. However, in performing his functions under 
this part the presiding officer may use the assistance and advice of an 
attorney designated by the General Counsel of the Corporation: Provided, 
That the attorney designated to assist him has not represented the 
Corporation or any other party or otherwise participated in a 
proceeding, recommendation, or decision in the particular matter.
    (c) Presentation of evidence. Both the Corporation and the recipient 
are entitled to present their case by oral or documentary evidence, to 
submit rebuttal evidence and to conduct such examination and cross-
examination as may be required for a full and true disclosure of all 
facts bearing on the issues. The issues shall be those stated in the 
notice required to be filed by paragraph (f) of this section, those 
stipulated in a prehearing conference or those agreed to by the parties.
    (d) Participation. (1) In addition to the Corporation, the 
recipient, and any agency which has a right to appear, the presiding 
officer in his discretion may permit the participation in the 
proceedings of such persons or organizations as he deems necessary for a 
proper determination of the issues involved. Such participation may be 
limited to those issues or activities which the presiding officer 
believes will meet the needs of the proceeding, and may be limited to 
the filing of written material.
    (2) Any person or organization that wishes to participate in a 
proceeding may apply for permission to do so from the presiding officer. 
This application, which shall be made as soon as possible after the 
notice of suspension or proposed termination has been received by the 
recipient, shall state the applicant's interest in the proceeding, the 
evidence or arguments the applicant intends to contribute, and the 
necessity for the introduction of such evidence or arguments.
    (3) The presiding officer shall permit or deny such participation 
and shall give notice of his decision to the applicant, the recipient, 
and the Corporation, and, in the case of denial, a brief statement of 
the reasons for his decision: Provided however, That the presiding 
officer may subsequently permit such participation if, in his opinion, 
it is warranted by subsequent circumstances. If participation is 
granted, the presiding officer shall notify all parties of that fact and 
may, in appropriate cases, include in the notification a brief statement 
of the issues as to which participation is permitted.
    (4) Permission to participate to any extent is not a recognition 
that the participant has any interest which may be adversely affected or 
that the participant may be aggrieved by any decision, but is allowed 
solely for the aid and information of the presiding officer.
    (e) Filing. All papers and documents which are required to be filed 
shall be filed with the presiding officer. Prior to filing, copies shall 
be sent to the other parties.
    (f) Notice. The responsible Corporation official shall send the 
recipient and any other party a written notice which states the time, 
place, nature of the hearing, the legal authority and jurisdiction under 
which the hearing is to be held. The notice shall also identify with 
reasonable specificity the facts relied on as justifying termination and 
the Corporation requirements which it is contended the recipient has 
violated. The notice shall be filed and served not later than 10 days 
prior to the hearing and a copy thereof shall be filed with the 
presiding officer.
    (g) Notice of intention to appear. The recipient and any other party 
which has a right or has been granted permission to participate in the 
hearing shall give written confirmation to the Corporation of its 
intention to appear at the hearing 3 days before it is scheduled to 
occur. Failing to do so may, at the discretion of the presiding officer,

[[Page 27]]

be deemed a waiver of the right to a hearing.
    (h) Form and date of service. All papers and documents filed or sent 
to party shall be signed in ink by the appropriate party or his 
authorized representative. The date on which papers are filed shall be 
the day on which the papers or documents are deposited, postage prepaid 
in the U.S. mail, or are delivered in person: Provided however, That the 
effective date of the notice that there appear to be grounds which 
warrant terminating assistance shall be the date of its delivery or 
attempted delivery at the recipient's last known address as reflected in 
the records of the Corporation.
    (i) Prehearing conferences. Prior to the commencement of a hearing 
the presiding officer may, subject to the provisions of paragraph (b)(2) 
of this section, require the parties to meet with him or correspond with 
him concerning the settlement of any matter which will expedite a quick 
and fair conclusion of the hearing.
    (j) Evidence. Technical rules of evidence shall not apply to 
hearings conducted pursuant to this subpart, but the presiding officer 
shall apply rules or principles designed to assure production of 
relevant evidence and to subject testimony to such examination and cross 
examination as may be required for a full and true disclosure of the 
facts. The presiding officer may exclude irrelevant, immaterial, or 
unduly repetitious evidence. A transcription shall be made of the oral 
evidence and shall be made available to any participant upon payment of 
the prescribed costs. All documents and other evidence submitted 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.
    (k) Depositions. If the presiding officer determines that the 
interests of justice would be served, he may authorize the taking of 
depositions provided that all parties are afforded an opportunity to 
participate in the taking of the depositions. The party who requested 
the deposition shall arrange for a transcript to be made of the 
proceedings and shall upon request, and at his expense, furnish all 
other parties with copies of the transcript.
    (l) Official notice. Official notice may be taken of a public 
document, or part of a public document, such as a statute, official 
report, decision, opinion or published scientific data issued by any 
agency of the Federal Government or a State or local government and such 
document or data may be entered on the record without further proof of 
authenticity. Official notice may also be taken of such matters as may 
be judicially noticed in the courts of the United States, or any other 
matter of established fact within the general knowledge of the 
Corporation. If the decision of the presiding officer rests on official 
notice of a material fact not appearing in evidence, a party shall on 
timely request be afforded an opportunity to show the contrary.
    (m) Proposed findings and conclusions. After the hearing has 
concluded, but before the presiding officer makes his decision, he shall 
afford each participant a reasonable opportunity to submit proposed 
findings of fact and conclusions. After considering each proposed 
finding or conclusion the presiding officer shall state in his decision 
whether he has accepted or rejected them in accordance with the 
provisions of Sec.  1206.1-8(a).



Sec.  1206.1-8  Decisions and notices regarding termination.

    (a) Each decision of a presiding officer shall contain his findings 
of fact, and conclusions, and shall state whether he has accepted or 
rejected each proposed finding of fact and conclusion submitted by the 
parties, pursuant to Sec.  1206.1-7(m). Findings of fact shall be based 
only upon evidence submitted to the presiding officer and matters of 
which official notice has been taken. The decision shall also specify 
the requirement or requirements with which it is found that the 
recipient has failed to comply.
    (b) The decision of the presiding officer may provide for continued 
suspension or termination of assistance to the recipient in whole or in 
part, and may contain such terms, conditions, and other provisions as 
are consistent with and will effectuate the purposes of the DVSA.

[[Page 28]]

    (c) If the hearing is held by an independent hearing examiner rather 
than by the responsible Corporation official, he shall make an initial 
decision, and a copy of this initial decision shall be mailed to all 
parties. Any party may, within 20 days of the mailing of such initial 
decision, or such longer period of time as the presiding officer 
specifies, file with the responsible Corporation official his written 
exceptions to the initial decision and any supporting brief or 
statement. Upon the filing of such exceptions, the responsible 
Corporation official shall, within 20 days of the mailing of the 
exceptions, review the initial decision and issue his own written 
decision thereof, including the reasons therefore. The decision of the 
responsible Corporation official may increase, modify, approve, vacate, 
remit, or mitigate any sanction imposed in the initial decision or may 
remand the matter to the presiding officer for further hearing or 
consideration.
    (d) Whenever a hearing is waived, a decision shall be made by the 
responsible Corporation official and a written copy of the final 
decision of the responsible Corporation official shall be given to the 
recipient.
    (e) The recipient may request the CEO to review a final decision by 
the responsible Corporation official which provides for the termination 
of assistance. Such a request must be made in writing within 15 days 
after the recipient has been notified of the decision in question and 
must state in detail the reasons for seeking the review. In the event 
the recipient requests such a review, the CEO or his designee shall 
consider the reasons stated by the recipient for seeking the review and 
shall approve, modify, vacate or mitigate any sanction imposed by the 
responsible Corporation official or remand the matter to the responsible 
Corporation official for further hearing or consideration. The decision 
of the responsible Corporation official will be given great weight by 
the CEO or his designee during the review. During the course of his 
review the CEO or his designee may, but is not required to, hold a 
hearing or allow the filing of briefs and arguments. Pending the 
decision of the CEO or his designee assistance shall remain suspended 
under the terms and conditions specified by the responsible Corporation 
official, unless the responsible Corporation official or the CEO or his 
designee otherwise determines. Every reasonable effort shall be made to 
complete the review by the CEO or his designee within 30 days of receipt 
by the CEO of the recipient's request. The CEO or his designee may 
however extend this period of time if he determines that additional time 
is necessary for an adequate review.



Sec.  1206.1-9  Right to counsel; travel expenses.

    In all formal or informal proceedings under this subpart, the 
recipient and the Corporation shall have the right to be represented by 
counsel or other authorized representatives. If the recipient and any 
agency which has a right to participate in an informal meeting pursuant 
to Sec.  1206.1-4 or a termination hearing pursuant to Sec.  1206.1-7 do 
not have an attorney acting in that capacity as a regular member of the 
staff of the organization or a retainer arrangement with an attorney, 
the Boards of Directors of such recipient and agency will be authorized 
to designate an attorney to represent their organizations at any such 
show cause proceeding or termination hearing and to transfer sufficient 
funds from the Federal grant monies they have received for the project 
to pay the fees, travel, and per diem expenses of such attorney. The 
fees for such attorney shall be the reasonable and customary fees for an 
attorney practicing in the locality of the attorney. However, such fees 
shall not exceed $100 per day without the prior express written approval 
of the Corporation. Travel and per diem expenses may be paid to such 
attorney only in accordance with the policies set forth in the federal 
government travel regulations. The Boards of Directors of the recipient 
or any agency which has a right to participate in an informal meeting 
pursuant to Sec.  1206.1-4 or a termination hearing pursuant to Sec.  
1206.1-7 will also be authorized to designate two persons in addition to 
an attorney whose travel and per diem expenses to attend the meeting or 
hearing may be paid from Federal grant or contract

[[Page 29]]

monies. Such travel and per diem expenses shall conform to the policies 
set forth in the federal government travel regulations.



Sec.  1206.1-10  Modification of procedures by consent.

    The responsible Corporation official or the presiding officer of a 
termination hearing may alter, eliminate or modify any of the provisions 
of this subpart with the consent of the recipient and, in the case of a 
termination hearing, with the consent of all agencies that have a right 
to participate in the hearing pursuant to Sec.  1206.1-5(e). Such 
consent must be in writing or be recorded in the hearing transcript.



Sec.  1206.1-11  Other remedies.

    The procedures established by this subpart shall not preclude the 
Corporation from pursuing any other remedies authorized by law.



              Subpart B_Denial of Application for Refunding



Sec.  1206.2-1  Applicability of this subpart.

    This subpart applies to grantees and contractors receiving financial 
assistance under title II of the DVSA. The procedures in the subpart do 
not apply to review of applications for sponsors who receive VISTA 
members under the DVSA.

[80 FR 63457, Oct. 20, 2015]



Sec.  1206.2-2  Purpose.

    This subpart establishes rules and review procedures for the denial 
of a current recipient's application for refunding.



Sec.  1206.2-3  Definitions.

    As used in this subpart, ``Corporation'', ``CEO'', and ``recipient'' 
are defined in accordance with Sec.  1206.1-3.
    Financial assistance and assistance include the services of National 
Senior Service Corps volunteers supported in whole or in part with CNCS 
funds under the DVSA.
    Program account includes assistance provided by CNCS to support a 
particular program activity; for example, Foster Grandparent Program, 
Senior Companion Program and Retired Senior Volunteer Program.
    Refunding includes renewal of an application for the assignment of 
National Senior Service Corps volunteers.

[80 FR 63457, Oct. 20, 2015]



Sec.  1206.2-4  Procedures.

    (a) The procedures set forth in paragraphs (b) through (g) of this 
section applies only where an application for refunding submitted by a 
current recipient is rejected or is reduced to 80 percent or less of the 
applied-for level of funding or the recipient's current level of 
operations, whichever is less. It is further a condition for application 
of these procedures that the rejection or reduction be based on 
circumstances related to the particular grant or contract. These 
procedures do not apply to reductions based on legislative requirements, 
or on general policy or in instances where, regardless of a recipient's 
current level of operations, its application for refunding is not 
reduced by 20 percent or more. The fact that the basis for rejecting an 
application may also be a basis for termination under subpart A of this 
part shall not prevent the use of this subpart to the exclusion of the 
procedures in subpart A.
    (b) Before rejecting an application of a recipient for refunding the 
Corporation shall notify the recipient of its intention, in writing, at 
least 75 days before the end of the recipient's current program year or 
grant budget period. The notice shall inform the recipient that a 
tentative decision has been made to reject or reduce an application for 
refunding. The notice shall state the reasons for the tentative decision 
to which the recipient shall address itself if it wishes to make a 
presentation as described in paragraphs (c) and (d) of this section.
    (c) If the notice of tentative decision is based on any reasons, 
other than those described in paragraph (d) of this section, including, 
but not limited to, situations in which the recipient has ineffectively 
managed Corporation resources or substantially failed to comply with 
Corporation policy and overall objectives under a contract or grant 
agreement with the Corporation, the

[[Page 30]]

recipient shall be informed in the notice, of the opportunity to submit 
written material and to meet informally with a Corporation official to 
show cause why its application for refunding should not be rejected or 
reduced. If the recipient requests an informal meeting, such meeting 
shall be held on a date specified by the Corporation. However, the 
meeting may not, without the consent of the recipient, be scheduled 
sooner than 14 days, nor more than 30 days, after the Corporation has 
mailed the notice to the recipient. If the recipient requests an 
informal meeting, the meeting shall be scheduled by the Corporation as 
soon as possible after receipt of the request. The official who shall 
conduct this meeting shall be a Corporation official who is authorized 
to finally approve the refunding in question, or his designee.
    (d) If the notice of tentative decision is based upon a specific 
charge of failure to comply with the terms and conditions of the grant 
or contract, alleging wrongdoing on the part of the recipient, the 
notice shall offer the recipient an opportunity for an informal hearing 
before a mutually agreed-upon impartial hearing officer. The authority 
of such hearing officer shall be limited to conducting the hearing and 
offering recommendations. The Corporation will retain all authority to 
make the final determination as to whether the application should be 
finally rejected or reduced. If the recipient requests an informal 
hearing, such hearing shall be held at a date specified by the 
Corporation. However, such hearing may not, without the consent of the 
recipient, be scheduled sooner than 14 days nor more than 30 days after 
the Corporation mails the notice to the recipient.
    (e) In the selection of a hearing official and the location of 
either an informal meeting or hearing, the Corporation, while mindful of 
considerations of the recipient, will take care to insure that costs are 
kept to a minimum. The informal meeting or hearing shall be held in the 
city or county in which the recipient is located, in the appropriate 
Service Center or Corporation State Office, or another appropriate 
location. Within the limits stated in the preceding sentence, the 
decision as to where the meeting shall be held will be made by the 
Corporation, after weighing the convenience factors of the recipient. 
For the convenience of the recipient, the Corporation will pay the 
reasonable travel expenses for up to two representatives of the 
recipient, if requested.
    (f) The recipient shall be informed of the final Corporation 
decision on refunding and the basis for the decision by the deciding 
official.
    (g) If the recipient's budget period expires prior to the final 
decision by the deciding official, the recipient's authority to continue 
program operations shall be extended until such decision is made and 
communicated to the recipient. If a National Senior Service Corps 
volunteer's term of service expires after receipt by a sponsor of a 
tentative decision not to refund a project, the period of service of the 
volunteer may be similarly extended. No volunteers may be reenrolled for 
a period of service while a tentative decision not to refund is pending. 
If program operations are so extended, CNCS and the recipient shall 
provide, subject to the availability of funds, operating funds at the 
same levels as in the previous budget period to continue program 
operations.

[69 FR 19110, Apr. 12, 2004, as amended at 80 FR 63457, Oct. 20, 2015]



Sec.  1206.2-5  Right to counsel.

    In all formal or informal proceedings under this subpart, the 
recipient and the Corporation shall have the right to be represented by 
counsel or other authorized representatives, at their own expense.

                       PARTS 1210	1211 [RESERVED]

 PART 1212_VOLUNTEER AGENCIES PROCEDURES FOR NATIONAL GRANT VOLUNTEERS 
                               [RESERVED]

[[Page 31]]



PART 1214_ENFORCEMENT OF NONDISCRIMINATION ON THE BASIS OF HANDICAP 
IN PROGRAMS OR ACTIVITIES CONDUCTED BY ACTION--Table of Contents



Sec.
1214.101 Purpose.
1214.102 Application.
1214.103 Definitions.
1214.104-1214.109 [Reserved]
1214.110 Self-evaluation.
1214.111 Notice.
1214.112-1214.129 [Reserved]
1214.130 General prohibitions against discrimination.
1214.131-1214.139 [Reserved]
1214.140 Employment.
1214.141-1214.148 [Reserved]
1214.149 Program accessibility: Discrimination prohibited.
1214.150 Program accessibility: Existing facilities.
1214.151 Program accessibility: New construction and alterations.
1214.152-1214.159 [Reserved]
1214.160 Communications.
1214.161-1214.169 [Reserved]
1214.170 Compliance procedures.

    Authority: 29 U.S.C. 794; 42 U.S.C. 5057.

    Source: 55 FR 47761, Nov. 15, 1990, unless otherwise noted.



Sec.  1214.101  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.  1214.102  Application.

    This part applies to all programs or activities conducted by the 
agency, except for programs or activities conducted outside the United 
States that do not involve individuals with handicaps in the United 
States.



Sec.  1214.103  Definitions.

    For purposes of this part, the term--
    Agency means ACTION.
    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, 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 of the Act. 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.
    Individuals 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

[[Page 32]]

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 agency as constituting 
such a limitation;
    (ii) Has a physical or mental impairment that substantially limit 
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 individual with handicaps means--
    (1) With respect to preschool, elementary, or secondary education 
services provided by the agency, an individual with handicaps who is a 
member of a class of persons otherwise entitled by statute, regulation, 
or agency policy to receive educational 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, 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;
    (3) 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
    (4) 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.  1214.140.
    Section 504 of the Act 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); 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 of the Act applies only to 
programs or activities conducted by Executive agencies and not to 
federally assisted programs.



Sec. Sec.  1214.104-1214.109  [Reserved]



Sec.  1214.110  Self-evaluation.

    (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 or 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 self-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.

[[Page 33]]



Sec.  1214.111  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 of the Act and this part.



Sec. Sec.  1214.112-1214.129  [Reserved]



Sec.  1214.130  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, 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 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 agency 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 agency may not, directly or through contractual or other 
arrangements, utilize criteria or methods of administration the purpose 
or effect of which would be to--
    (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 may not, in determining the site or location of a 
facility, 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, 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 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.

[[Page 34]]



Sec. Sec.  1214.131-1214.139  [Reserved]



Sec.  1214.140  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 federally conducted 
programs or activities.



Sec. Sec.  1214.141-1214.148  [Reserved]



Sec.  1214.149  Program accessibility: Discrimination prohibited.

    Except as otherwise provided in Sec.  1214.150, 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.



Sec.  1214.150  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 individuals with handicaps. This paragraph 
does not--
    (1) Necessarily require the agency to make each of its existing 
facilities accessible to and usable by individuals with handicaps; 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.  1214.150(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 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.
    (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 
individuals with handicaps. 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. 4151-4157), 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 individuals with 
handicaps in the most integrated setting appropriate.
    (c) 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.
    (d) Transition plan. In the event that structural changes to 
facilities will be

[[Page 35]]

undertaken to achieve program accessibility, the agency 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 agency 
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 agency'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 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 agency official responsible for implementation of 
the plan.



Sec.  1214.151  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 
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.



Sec. Sec.  1214.152-1214.159  [Reserved]



Sec.  1214.160  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 an individual with handicaps 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 will be provided, the 
agency shall give primary consideration to the requests of the 
individual with handicaps.
    (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 to communicate 
with persons with impaired hearing.
    (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 a sign 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 displayed at each primary entrance to 
each 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.  1214.160 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

[[Page 36]]

with this section would result in such 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. Sec.  1214.161-1214.169  [Reserved]



Sec.  1214.170  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 and 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 Director, Equal Opportunity Staff.



PART 1216_NONDISPLACEMENT OF EMPLOYED WORKERS AND NONIMPAIRMENT 
OF CONTRACTS FOR SERVICE--Table of Contents



Sec.
1216.1-1 Purpose.
1216.1-2 Applicability of this part.
1216.1-3 Policy.
1216.1-4 Exceptions.

    Authority: 42 U.S.C. 5044(a).

    Source: 40 FR 16209, Apr. 10, 1975, unless otherwise noted.



Sec.  1216.1-1  Purpose.

    This part establishes rules to assure that the services of 
volunteers in the Foster Grandparent Program, the Senior Companion 
Program, and The Retired and Senior Volunteer Program (RSVP), are 
limited to activities which would not otherwise be performed by employed 
workers and which will not supplant the hiring of, or result in the 
displacement of employed workers or impair existing contracts for 
service. This part implements section 404(a) of the Domestic Volunteer 
Service Act of 1973, Public Law 93-113 (the ``Act'').

[80 FR 63457, Oct. 20, 2015]



Sec.  1216.1-2  Applicability of this part.

    (a) All volunteers in either the Foster Grandparent Program, the 
Senior Companion Program, or The Retired and Senior Volunteer Program 
(RSVP), who are assigned, referred or serving pursuant to grants, 
contracts, or agreements made pursuant to the Act.
    (b) All agencies and organizations to which the volunteers in 
paragraph (a) of this section are assigned, referred or provide 
services.

[40 FR 16209, Apr. 10, 1975, as amended at 80 FR 63457, Oct. 20, 2015]



Sec.  1216.1-3  Policy.

    (a) Volunteers enrolled or participating in programs referred to in 
paragraphs (a) and (b) of Sec.  1216.1-2 may not perform any services or 
duties or engage in activities which would otherwise be performed by an 
employed worker as part of his assigned duties as an employee.
    (b) Volunteer referred to in paragraph (a) of this section may not 
perform any services or duties or engage in activities which will 
supplant the hiring of employed workers. This prohibition is violated 
if, prior to engaging a volunteer, an agency or organization referred to 
in Sec.  1216.1-2(c) had intended to hire a person to undertake all or a 
substantial part of the services, duties, or other activities to be 
provided by the volunteer.
    (c) Volunteers referred to in paragraph (a) of this section may not 
perform any services or duties or engage in activities which result in 
the displacement of employed workers. Such volunteers may not perform 
services or duties which have been performed by or were assigned to, any 
of the following:
    (1) Presently employed workers,
    (2) Employees who recently resigned or were discharged,
    (3) Employees who are on leave (terminal, temporary, vacation, 
emergency, or sick), or
    (4) Employees who are on strike or who are being locked out.

[[Page 37]]

    (d) Volunteers referred to in paragraph (a) of this section may not 
perform any services or duties or engage in activities which impair 
existing contracts for service. This prohibition is violated if a 
contract for services is modified or cancelled because an agency or 
organization referred to in Sec.  1216.1-2(b) engages a volunteer to 
provide or perform all or a substantial part of any services, duties, or 
other activities set forth in such contract. The term ``contract for 
services'' includes but is not limited to contracts, understandings and 
arrangements, either written or oral, to provide professional, 
managerial, technical, or administrative services.
    (e) Agencies and organizations referred to in Sec.  1216.1-2(b) are 
prohibited from assigning or permitting volunteers referred to in Sec.  
1216.1-2(a) to perform any services or duties or engage in any 
activities prohibited by paragraphs (a) through (d) of this section.



Sec.  1216.1-4  Exceptions.

    (a) The requirements of Sec.  1216.1-3 are not applicable to the 
following, or similar, situations:
    (1) Funds are unavailable for the employment of sufficient staff to 
accomplish a program authorized or of a character eligible for 
assistance under the Act and the activity, service, or duty is otherwise 
appropriate for the assignment of a volunteer.
    (2) Volunteer services are required in order to avoid or relieve 
suffering threatened by or resulting from major natural disasters or 
civil disturbances.
    (3) Reasonable efforts to obtain employed workers have been 
unsuccessful due to the unavailability of persons within the community 
who are able, willing, and qualified to perform the needed activities.
    (4) The assignment of volunteers will significantly expand services 
to a target community over those which could be performed by existing 
paid staff, and the activity, service or duty is otherwise appropriate 
for the assignment of a volunteer and no actual displacement of paid 
staff will occur as a result of the assignment.
    (b) For the purposes of paragraphs (a)(1) and (4) of this section, 
the assignment is not appropriate for the assignment of a volunteer if:
    (1) The service, duty, or activity is principally a routine 
administrative or clerical task. This definition applies only to any 
service, duty, or activity performed by a volunteer receiving financial 
support apart from reimbursement for expenses.
    (2) The volunteer is not directly in contact with groups or 
individuals whom the Act is designed to serve or is not performing 
services, duties, or engaged in activities authorized or of a character 
eligible for assistance under the Act.

                        PART 1217	1219 [RESERVED]



PART 1220_PAYMENT OF VOLUNTEER LEGAL EXPENSES--Table of Contents



                            Subpart A_General

Sec.
1220.1-1 Purpose.

                     Subpart B_Criminal Proceedings

1220.2-1 Full-time volunteers.
1220.2-2 Part-time volunteers.
1220.2-3 Procedure.

             Subpart C_Civil and Administrative Proceedings

1220.3-1 Full-time volunteers.
1220.3-2 Part-time volunteers.
1220.3-3 Procedure.

    Authority: 42 U.S.C. 5059.

    Source: 40 FR 28800, July 9, 1975, unless otherwise noted.



                            Subpart A_General



Sec.  1220.1-1  Purpose.

    This part implements section 419 of the Domestic Volunteer Service 
Act of 1973, Public Law 93-113 (the ``Act''). This part provides rules 
to ensure that the Corporation for National and Community Service, which 
administers the three federal programs, the Foster Grandparent Program 
(FGP), the Senior Companion Program (SCP), and The Retired and Senior 
Volunteer Program (RSVP), pays the expenses incurred in

[[Page 38]]

judicial and administrative proceedings for the defense of those 
volunteers serving in those programs. Payment of such expenses by CNCS 
for those volunteers include payment of counsel fees, court costs, bail 
or other expenses incidental to the volunteer's defense.

[80 FR 63458, Oct. 20, 2015]



                     Subpart B_Criminal Proceedings



Sec.  1220.2-1  Full-time volunteers.

    (a)(1) The Corporation for National and Community Service will pay 
all reasonable expenses for defense of full-time volunteers up to and 
including the arraignment of Federal, state, and local criminal 
proceedings, except in cases where it is clear that the charged offense 
results from conduct which is not related to his service as a volunteer.
    (2) Situations where conduct is clearly unrelated to a volunteer's 
service are those that arise either:
    (i) In a period prior to volunteer service,
    (ii) Under circumstances where the volunteer is not at his assigned 
volunteer project location, such as during periods of administrative, 
vacation, or emergency leave, or
    (iii) When he is at his volunteer station, but the activity or 
action giving rise to the charged offense is clearly not part of, or 
required by, such assignment.
    (b) Reasonable expenses in criminal proceedings beyond arraignment 
may be paid in cases where:
    (1) The charge against the volunteer relates to his assignment or 
status as a volunteer, and not his personal status or personal matters. 
A charge relating to a volunteer's assignment arises out of any activity 
or action which is a part of, or required by, such assignment. A charge 
relating to a volunteer's status is motivated exclusively by the fact 
that a defendant is a volunteer.
    (2) The volunteer has not admitted a willful or knowing violation of 
law, and
    (3) The charge(s) is not a minor misdemeanor, such as a minor 
vehicle violation for which a fine or bail forfeiture will not exceed 
$100.
    (c) Notwithstanding the foregoing, there may be situations in which 
the criminal proceeding results from a situation which could give rise 
to a civil claim under the Federal Tort Claims Act. In such situations, 
the Justice Department may agree to defend the volunteer. In those 
cases, unless there is a conflict between the volunteer's interest and 
that of the government, the Corporation for National and Community 
Service will not pay for additional private representation for the 
volunteer.

[40 FR 28800, July 9, 1975, as amended at 80 FR 63458, Oct. 20, 2015]



Sec.  1220.2-2  Part-time volunteers.

    (a) With respect to a part-time volunteer, the Corporation for 
National and Community Service will reimburse a sponsor for the 
reasonable expense it incurs for the defense of the volunteer in 
Federal, state and local criminal proceedings, including arraignment, 
only under the following circumstances:
    (1) The proceeding arises directly out of the volunteer's 
performance of activities pursuant to the Act;
    (2) The volunteer receives, or is eligible to receive, compensation, 
including allowances, stipend, or reimbursement for out-of-pocket 
expenses, under a Corporation for National and Community Service grant 
project; and
    (3) The conditions specified in paragraphs (b)(2) and (3) in Sec.  
1220.2-1 are met.
    (b) In certain circumstances volunteers who are ineligible for 
reimbursement of legal expenses by the Corporation for National and 
Community Service may be eligible for representation under the Criminal 
Justice Act (18 U.S.C. 3006A).

[40 FR 28800, July 9, 1975, as amended at 80 FR 63458, Oct. 20, 2015]



Sec.  1220.2-3  Procedure.

    (a) Immediately upon the arrest of any volunteer under circumstances 
in which the payment or bail to prevent incarceration or other serious 
consequences to the volunteer or the retention of an attorney prior to 
arraignment is necessary and is covered under

[[Page 39]]

Sec.  1220.2-1 or Sec.  1220.2-2, sponsors shall immediately notify the 
appropriate Corporation for National and Community Service state office 
or if the state office cannot be reached, the appropriate Area Manager.
    (b) Immediately after notification of the appropriate state office, 
and with the approval thereof, the sponsor shall advance up to $500 for 
the payment of bail or such other legal expenses as are necessary prior 
to arraignment to prevent the volunteer from being incarcerated. In the 
event it is subsequently determined that the Corporation for National 
and Community Service or a sponsor is not responsible under this policy 
for the volunteer's defense, any such advance may be recovered directly 
from the volunteer or from allowances, stipends, or out-of-pocket 
expenses which are payable or become payable to the volunteer. In the 
case of a grassroots sponsor of full-time volunteers that is not able to 
provide the $500, the Corporation for National and Community Service 
state office or Area Manager shall immediately make such sum available 
to the sponsor.
    (c) Immediately upon receipt of notification from the sponsor, the 
state or regional office shall notify the General Counsel, giving all 
facts and circumstances at that time known to such office. Thereafter 
the office shall cooperate with the General Counsel in making an 
investigation of all surrounding facts and circumstances and shall 
provide such information immediately to the General Counsel.
    (d) The General Counsel shall, upon notification by the state office 
or Area Manager, determine the extent to which the Corporation for 
National and Community Service will provide funds for the volunteer's 
defense or reimburse a sponsor for funds it spends on the volunteer's 
behalf. Included in this responsibility shall be the negotiation of fees 
and approval of other costs and expenses. State offices and Area 
Managers are not authorized to commit the Corporation for National and 
Community Service to the payment of volunteers' legal expenses or to 
reimburse a sponsor except as provided in this section, without the 
express consent of the General Counsel. Additionally, the General 
Counsel shall, in cases arising directly out of the performance of 
authorized project activities, ascertain whether the services of the 
United States Attorney can be made available to the volunteer.
    (e) The sponsor and the state and regional office shall have a 
continuing responsibility for cooperation and coordination with the 
Office of General Counsel during the pendency of any such litigation, 
and of notifying the General Counsel of any facts and circumstances 
which come to the attention of such office or the sponsor which affects 
such litigation.

[40 FR 28800, July 9, 1975, as amended at 80 FR 63458, Oct. 20, 2015]



             Subpart C_Civil and Administrative Proceedings



Sec.  1220.3-1  Full-time volunteers.

    The Corporation for National and Community Service will pay 
reasonable expenses incurred in the defense of full-time volunteers in 
Federal, state, and local civil judicial and administrative proceedings 
where:
    (a) The complaint or charge against the volunteer is directly 
related to his volunteer service and not to his personal activities or 
obligations.
    (b) The volunteer has not admitted willfully or knowingly pursuing a 
course of conduct which would result in the plaintiff or complainant 
initiating such a proceeding, and
    (c) If the judgment sought involves a monetary award, the amount 
sought exceeds $100.

[40 FR 28800, July 9, 1975, as amended at 80 FR 63458, Oct. 20, 2015]



Sec.  1220.3-2  Part-time volunteers.

    The Corporation for National and Community Service will reimburse 
sponsors for the reasonable expenses incidental to the defense of part-
time volunteers in Federal, state, and local civil judicial and 
administrative proceedings where:
    (a) The proceeding arises directly out of the volunteer's 
performance of activities pursuant to the Act;
    (b) The volunteer receives or is eligible to receive compensation, 
including allowances, stipend, or reimbursement for out-of-pocket 
expenses under the

[[Page 40]]

Corporation for National and Community Service grant; and
    (c) The conditions specified in Sec.  1220.3-1(b) and (c) are met.

[80 FR 63458, Oct. 20, 2015]



Sec.  1220.3-3  Procedure.

    Immediately upon the receipt by a volunteer of any court papers or 
administrative orders making a party to any proceeding covered under 
Sec.  1220.3-1 or Sec.  1220.3-2, the volunteer shall immediately notify 
his sponsor who in turn shall notify the appropriate Corporation for 
National and Community Service state office. The procedures referred to 
in Sec.  1220.2-3(c) through (e) shall thereafter be followed as 
appropriate.

[80 FR 63459, Oct. 20, 2015]

                          PART 1222 [RESERVED]



PART 1225_MEMBER AND VOLUNTEER DISCRIMINATION COMPLAINT PROCEDURE--
Table of Contents



                      Subpart A_General Provisions

Sec.
1225.1 Purpose.
1225.2 Policy.
1225.3 Definitions.
1225.4 Coverage.
1225.5 Representation.
1225.6 Freedom from reprisal.
1225.7 Review of allegations of reprisal.

      Subpart B_Processing Individual Complaints of Discrimination

1225.8 Precomplaint procedure.
1225.9 Complaint procedure.
1225.10 Corrective action.
1225.11 Amount of attorney fees.

         Subpart C_Processing Class Complaints of Discrimination

1225.12 Precomplaint procedure.
1225.13 Acceptance, rejection or cancellation of a complaint.
1225.14 Consolidation of complaints.
1225.15 Notification and opting out.
1225.16 Investigation and adjustment of complaint.
1225.17 Agency decision.
1225.18 Notification of class members of decision.
1225.19 Corrective action.
1225.20 Claim appeals.
1225.21 Judicial review.

    Authority: 42 U.S.C. 5057(d), 12635(d), and 12651(c).

    Source: 86 FR 30174, June 7, 2021, unless otherwise noted.



                      Subpart A_General Provisions



Sec.  1225.1  Purpose.

    The purpose of this part is to establish a procedure for the filing, 
investigation, and administrative determination of allegations of 
discrimination based on race, color, national origin, religion, age, 
sex, disability or political affiliation, which arise in connection with 
the recruitment, selection, placement, service, or termination of 
AmeriCorps and AmeriCorps Seniors applicants, candidates, Members and 
Volunteers for part time and full time service, as appropriate.



Sec.  1225.2  Policy.

    It is the policy of the Corporation for National and Community 
Service (CNCS) to provide equal opportunity in all its national service 
programs for all persons and to prohibit discrimination based on race, 
color, national origin, religion, age, sex, disability or political 
affiliation in the recruitment, selection, placement, service, and 
termination of AmeriCorps and AmeriCorps Seniors applicants, candidates, 
Members and Volunteers. It is the policy of CNCS, upon determining that 
such prohibited discrimination has occurred, to take all necessary 
corrective action to remedy the discrimination, and to prevent its 
recurrence.



Sec.  1225.3  Definitions.

    Unless the context requires otherwise, in this part:
    Agent means a class member who acts for the class during the 
processing of a class complaint. In order to be accepted as the agent 
for a class complaint, in addition to those requirements of a complaint 
found in Sec.  1225.3, the complaint must meet the requirements for a 
class complaint as found in subpart C of this part.
    AmeriCorps member means a person who serves in a national service 
position for which a Segal AmeriCorps Education Award could be provided.
    AmeriCorps Seniors Volunteer means a person who serves as a 
volunteer

[[Page 41]]

through a program funded under Title II of the DVSA, including the 
Retired Senior Volunteer Program, the Foster Grandparent Program, and 
the Senior Companion Program.
    Applicant means a person who has submitted a completed application 
required for consideration of eligibility for CNCS national service as a 
member or volunteer. Applicant may also mean a person who alleges that 
the actions of recipient or subrecipient organization staff, or agency 
personnel precluded him or her from submitting such an application or 
any other information reasonably required by CNCS as necessary for a 
determination of the individual's eligibility for national service.
    Candidate means a person who has accepted an offer to commence 
service as a member or volunteer but has not yet enrolled for service in 
a CNCS national service program.
    CEO means the Chief Executive Officer of CNCS. The term shall also 
refer to any designee of the CEO.
    Complaint means a written statement signed by the complainant and 
submitted to the EEOP Director. A complaint shall set forth specifically 
and in detail:
    (1) A description of the management policy or practice during the 
application stage as an applicant, during the candidacy stage as a 
candidate, or during the service stage as a member or volunteer, if any, 
giving rise to the complaint;
    (2) A detailed description including names and dates, if possible, 
of the actions of CNCS, recipients or subrecipients of CNCS assistance 
or resources, or the officials of those recipients or subrecipients, 
which resulted in the alleged illegal discrimination;
    (3) The manner in which the action of CNCS, or the CNCS recipient or 
subrecipient, directly affected the complainant; and
    (4) The relief sought.
    (5) A complaint shall be deemed filed on the date it is received by 
the appropriate agency official. When a complaint does not conform with 
the above definition, it shall nevertheless be accepted. The complainant 
shall be notified of the steps necessary to correct the deficiencies of 
the complaint. The complainant shall have 30 days from his or her 
receipt of notification of the complaint defects to resubmit an amended 
complaint.
    Counselor means an official designated by the EEOP Director to 
perform the functions of conciliation as detailed in this part.
    EEOP Director means the Director of the Equal Employment Opportunity 
Program of CNCS. The term shall also refer to any designee of the EEOP 
Director.
    Illegal discrimination means discrimination on the basis of race, 
color, national origin, religion, age, sex, disability or political 
affiliation as defined in Title VI of the Civil Rights Act of 1964 (42 
U.S.C. 2000e et seq.); Title V of the Rehabilitation Act of 1973 (29 
U.S.C. 791, et seq.); the Age Discrimination Act of 1975 (42 U.S.C. 
6101, et seq.), Section 175 of the National and Community Service Act of 
1990, as amended, and Section 5057 of the Domestic Volunteer Service Act 
of 1973, as amended. Further clarification of the scope of matters 
covered by this definition may be obtained by referring to the following 
regulations: Sex Discrimination: 29 CFR part 1604; Religious 
Discrimination: 29 CFR part 1605; National Origin Discrimination: 29 CFR 
part 1606; Age Discrimination: 45 CFR part 90; Disability 
Discrimination: 29 CFR part 1630.



Sec.  1225.4  Coverage.

    (a) These procedures apply to all CNCS national service applicants, 
candidates, members and volunteers throughout their term of service with 
CNCS, or with recipients and subrecipients of CNCS assistance or 
resources. When an applicant, candidate, member or volunteer makes a 
complaint which contains an allegation of illegal discrimination in 
connection with an action that would be otherwise be processed under a 
grievance, early termination, or other administrative system of the 
agency, the allegation of illegal discrimination shall be processed 
under this part. At the discretion of the EEOP Director, any other 
issues raised may be consolidated with the discrimination complaint for 
processing under these regulations. Any issues which are not so 
consolidated shall continue to

[[Page 42]]

be processed under those procedures in which they were originally 
raised.
    (b) The submission of class complaints alleging illegal 
discrimination as defined above will be handled in accordance with the 
procedure outlined in subpart C.



Sec.  1225.5  Representation.

    Any aggrieved party may be represented and assisted in all stages of 
these procedures by an attorney or representative of his or her own 
choosing. An aggrieved party must immediately inform the agency if 
counsel is retained. Attorney fees or other appropriate relief may be 
awarded in the following circumstances;
    (a) Informal adjustment of a complaint. An informal adjustment of a 
complaint may include an award of attorney fees or other relief deemed 
appropriate by the EEOP Director. Where the parties agree on an 
adjustment of the complaint, but cannot agree on whether attorney fees 
or costs should be awarded, or on their amount, this issue may be 
appealed to the CEO, or their designee, in the manner detailed in Sec.  
1225.11.
    (b) Final agency decision. When discrimination is found, the CEO, or 
their designee, shall advise the complainant that any request for 
attorney fees or costs must be documented and submitted for review 
within 20 calendar days after his or her receipt of the final agency 
decision. The amount of such awards shall be determined under Sec.  
1225.11. In the unusual situation in which it is determined not to award 
attorney fees or other costs to a prevailing complainant, the CEO, or 
their designee, in his or her final decision shall set forth the 
specific reasons thereof.



Sec.  1225.6  Freedom from reprisal.

    Aggrieved parties, their representatives, and witnesses will be free 
from restraint, interference, coercion, discrimination, or reprisal at 
any stage in the presentation and processing of a complaint, including 
the counseling stage described in Sec.  1225.8, or any time thereafter.



Sec.  1225.7  Review of allegations of reprisal.

    An aggrieved party, his or her representative, or a witness who 
alleges restraint, interference, coercion, discrimination, or reprisal 
in connection with the presentation of a complaint under this part, may 
if covered by this part, request in writing that the allegation be 
reviewed as an individual complaint of discrimination subject to the 
procedures described in subpart B or that the allegation be considered 
as an issue in the complaint at hand.



      Subpart B_Processing Individual Complaints of Discrimination



Sec.  1225.8  Precomplaint procedure.

    (a) An aggrieved person who believes that he or she has been subject 
to illegal discrimination shall bring such allegations to the attention 
of the appropriate Counselor within 30 days of the alleged 
discrimination to attempt to resolve them. Aggrieved applicants, 
candidates, members, and volunteers applying for, or enrolled in 
programs operated by CNCS, or by recipients or subrecipients of CNCS 
assistance or resources, shall direct their allegations to the 
designated counselor.
    (b) Upon receipt of the allegation, the counselor or designee shall 
make whatever inquiry is deemed necessary into the facts alleged by the 
aggrieved party and shall counsel the aggrieved party for the purpose of 
attempting an informal resolution agreeable to all parties. The 
counselor will keep a written record of his or her activities which will 
be submitted to the EEOP Director if a formal complaint concerning the 
matter is filed.
    (c) If after such inquiry and counseling an informal resolution to 
the allegation is not reached, the counselor shall notify the aggrieved 
party in writing of the right to file a complaint of discrimination with 
the EEOP Director within 15 calendar days of the aggrieved party's 
receipt of the notice.
    (d) The counselor shall not reveal the identity of the aggrieved 
party who has come to him or her for consultation, except when 
authorized to do so by the aggrieved party. However, the identity of the 
aggrieved party may be revealed

[[Page 43]]

once the agency has accepted a complaint of discrimination from the 
aggrieved party.



Sec.  1225.9  Complaint procedure.

    (a) The EEOP Director must accept a complaint if the process set 
forth above has followed, and the complaint states a charge of illegal 
discrimination. The agency will extend the time limits set herein:
    (1) When the complainant shows that he or she was not notified of 
the time limits and was not otherwise aware of them, or
    (2) The complainant shows that he or she was prevented by 
circumstances beyond his or her control from submitting the matter in a 
timely fashion, or
    (3) For other reasons considered sufficiently by the agency. At any 
time during the complaint procedure, the EEOP Director may cancel a 
complaint because of failure of the aggrieved party to prosecute the 
complaint. If the complaint is rejected for failure to meet one or more 
of the requirements set out in the procedure outlined in Sec.  1225.8 or 
is cancelled, the EEOP Director shall inform the aggrieved party in 
writing of this final agency decision: That CNCS will take no further 
action; and of the right, to file a civil action as described in Sec.  
1225.21.
    (b) Upon acceptance of the complaint and receipt of the counselor's 
report, the EEOP Director shall provide for the prompt investigation of 
the complaint. Whenever possible, the person assigned to investigate the 
complaint shall occupy a position in the agency which is not, directly 
or indirectly, under the jurisdiction of the head of that part of the 
agency in which the complaint arose. The investigation shall include a 
thorough review of the circumstances under which the alleged 
discrimination occurred, and any other circumstances which may 
constitute, or appear to constitute discrimination against the 
complainant. The investigator shall compile an investigative file, which 
includes a summary of the investigation, recommended findings of fact 
and a recommended resolution of the complaint. The investigator shall 
forward the investigative file to the EEOP Director and shall provide 
the complainant with a copy.
    (c) The EEOP Director shall review the complaint file including any 
additional statements provided by the complainant, make findings of 
fact, and shall offer an adjustment of the complaint if the facts 
support the complaint. If the proposed adjustment is agreeable to all 
parties, the terms of the adjustment shall be reduced to writing, signed 
by both parties, and made part of the complaint file. A copy of the 
terms of the adjustment shall be provided to the complainant. If the 
proposed adjustment of the complaint is not acceptable to the 
complainant, or the EEOP Director determines that such an offer is 
inappropriate, the EEOP Director shall forward the complaint file with a 
written notification of the findings of facts, and his or her 
recommendations of the proposed disposition of the complaint to the CEO 
or their designee. The aggrieved party shall receive a copy of the 
notification and recommendation and shall be advised of the right to 
appeal the recommended disposition to the CEO or their designee. Within 
ten (10) calendar days of receipt of such notice the complainant may 
submit his or her appeal of the recommended disposition to the CEO or 
their designee.
    (d) If no timely notice of appeal is received from the aggrieved 
party, the CEO or their designee may adopt the proposed disposition as 
the Final Agency Decision. If the aggrieved party appeals, the CEO, or a 
designee who has been delegated authority to issue such a decision, 
after review of the total complaint file, shall issue a decision to the 
aggrieved party. The decision of the CEO, or their designee, shall be in 
writing, state the reasons underlying the decision, shall be the Final 
Agency Decision, shall inform the aggrieved party of the right to file a 
civil action as described in Sec.  1225.21, and, if appropriate, 
designate the procedure to be followed for the award of attorney fees or 
costs.



Sec.  1225.10  Corrective action.

    When it has been determined by final agency decision that the 
aggrieved party has been subjected to illegal discrimination, the 
following corrective actions may be taken:

[[Page 44]]

    (a) Selection as a member or volunteer for aggrieved parties found 
to have been denied selection based on prohibited discrimination.
    (b) Reappointment to national service for aggrieved parties found to 
have been early-terminated as a result of prohibited discrimination. To 
the extent possible, a member or volunteer will be placed in the same 
position previously held. However, reassignment to the specific position 
previously held is contingent on several programmatic considerations 
such as the continued availability of the position. If the same position 
is deemed to be no longer available, the aggrieved party will be offered 
a reassignment to a position in as similar circumstances to the position 
previously held, or to resign from service for reasons beyond his or her 
control. Such a reassignment may require both additional training and an 
additional commitment to national service.
    (c) Provision for reasonable attorney fees and other costs incurred 
by the aggrieved party.
    (d) Such other relief as may be deemed appropriate by the CEO or 
their designee.



Sec.  1225.11  Amount of attorney fees.

    (a) When a decision of the agency provides for an award of 
attorney's fees or costs, the complainant's attorney shall submit a 
verified statement of costs and attorney's fees as appropriate, to the 
agency within 20 days of receipt of the decision. A statement of 
attorney's fees shall be accompanied by an affidavit executed by the 
attorney of record itemizing the attorney's charges for legal services. 
Both the verified statement and the accompanying affidavit shall be made 
a part of the complaint file. The amount of attorney's fees or costs to 
be awarded the complainant shall be determined by agreement between the 
complainant, the complainant's representative and the CEO or their 
designee. Such agreement shall immediately be reduced to writing. If the 
complainant, the representative and the agency cannot reach an agreement 
on the amount of attorney's fees or costs within 20 calendar days of 
receipt of the verified statement and accompanying affidavit, the CEO or 
their designee shall issue a decision determining the amount of attorney 
fees or costs within 30 calendar days of receipt of the statement and 
affidavit. Such decision shall include the specific reasons for 
determining the amount of the award.
    (b) The amount of attorney's fees shall be made in accordance with 
the following standards: The time and labor required, the novelty and 
difficulty of the questions, the skills requisite to perform the legal 
service properly, the preclusion of other employment by the attorney due 
to acceptance of the case, the customary fee, whether the fee is fixed 
or contingent, time limitation imposed by the client or the 
circumstances, the amount involved and the results obtained, the 
experience, reputation, and ability of the attorney, the undesirability 
of the case, the nature and length of the professional relationship with 
the client, and the awards in similar cases.



         Subpart C_Processing Class Complaints of Discrimination



Sec.  1225.12  Precomplaint procedure.

    An applicant, candidate, member or volunteer who believes that he or 
she is among a group of present or former CNCS national service 
applicants, candidates, members or volunteers, who have been illegally 
discriminated against and who wants to be an agent for the class shall 
follow those precomplaint procedures outlined in Sec.  1225.8.



Sec.  1225.13  Acceptance, rejection or cancellation of a complaint.

    (a) Upon receipt of a class complaint, the counselor's report, and 
any other information pertaining to timeliness or other relevant 
circumstances related to the complaint, the EEOP Director shall review 
the file to determine whether to accept or reject the complaint, or a 
portion thereof, for any of the following reasons:
    (1) It was not timely filed;
    (2) It consists of an allegation which is identical to an allegation 
contained in a previous complaint filed on behalf of the same class 
which is pending in

[[Page 45]]

the agency or which has been resolved or decided by the agency;
    (3) It is not within the purview of this subpart;
    (4) The agent failed to consult a Counselor in a timely manner;
    (5) It lacks specificity and detail;
    (6) It was not submitted in writing or was not signed by the agent;
    (7) It does not meet the following prerequisites.
    (i) The class is so numerous that a consolidated complaint of the 
members of the class is impractical;
    (ii) There are questions of fact common to the class;
    (iii) The claims of the agent of the class are representative of the 
claims of the class;
    (iv) The agent of the class, or his or her representative will 
fairly and adequately protect the interest of the class.
    (b) If an allegation is not included in the counselor's report, the 
EEOP Director shall afford the agent 15 calendar days to explain whether 
the matter was discussed and if not, why he or she did not discuss the 
allegation with the counselor. If the explanation is not satisfactory, 
the EEOP Director may decide to reject the allegation. If the 
explanation is not satisfactory, the EEOP Director may require further 
counseling of the agent.
    (c) If an allegation lacks specificity and detail, or if it was not 
submitted in writing or not signed by the agent, the EEOP Director shall 
afford the agent 30 days from his or her receipt of notification of the 
complaint defects to resubmit an amended complaint. The EEOP Director 
may decide that the agency reject the complaint if the agent fails to 
provide such information within the specified time period. If the 
information provided contains new allegations outside the scope of the 
complaint, the EEOP Director must advise the agent how to proceed on an 
individual or class basis concerning these allegations.
    (d) The EEOP Director may extend the time limits for filing a 
complaint and for consulting with a Counselor when the agent, or his or 
her representative, shows that he or she was not notified of the 
prescribed time limits and was not otherwise aware of them or that he or 
she was prevented by circumstances beyond his or her control from acting 
within the time limit.
    (e) When appropriate, the EEOP Director may determine that a class 
be divided into subclasses and that each subclass be treated as a class, 
and the provisions of this section than shall be construed and applied 
accordingly.
    (f) The EEOP Director may cancel a complaint after it has been 
accepted because of failure of the agent to prosecute the complaint. 
This action may be taken only after:
    (1) The EEOP Director has provided the agent a written request, 
including notice of proposed cancellation, that he or she provide 
certain information or otherwise proceed with the complaint; and
    (2) Within 30 days of his or her receipt of the request.
    (g) An agent must be informed by the EEOP Director in a request 
under paragraphs (b) or (c) of this section that his or her complaint 
may be rejected if the information is not provided.



Sec.  1225.14  Consolidation of complaints.

    The EEOP Director may consolidate the complaint if it involves the 
same or sufficiently similar allegations as those contained in a 
previous complaint filed on behalf of the same class which is pending in 
the agency or which had been resolved or decided by the agency.



Sec.  1225.15  Notification and opting out.

    (a) Upon acceptance of a class complaint, the agency, within 30 
calendar days, shall use reasonable means such as delivery, mailing, 
distribution, or posting, to notify all class members of the existence 
of the class complaint.
    (b) A notice shall contain:
    (1) The name of the agency or organizational segment thereof, its 
location and the date of acceptance of the complaint:
    (2) A description of the issues accepted as part of the class 
complaint;
    (3) An explanation that class members may remove themselves from the 
class by notifying the agency within 30 calendar days after issuance of 
the notice; and

[[Page 46]]

    (4) An explanation of the binding nature of the final decision or 
resolution of the complaint.



Sec.  1225.16  Investigation and adjustment of complaint.

    The complaint shall be processed promptly after it has been 
accepted. Once a class complaint has been accepted, the procedure 
outlined in 1225.9 of this part shall apply.



Sec.  1225.17  Agency decision.

    (a) If an adjustment of the complaint cannot be made, the procedures 
outlined in 1225.9 shall be followed by the EEOP Director except that 
any notice required to be sent to the aggrieved party shall be sent to 
the agent of the class or his or her representative.
    (b) The final agency decision on a class complaint shall be binding 
on all members of the class.



Sec.  1225.18  Notification of class members of decision.

    Class members shall be notified by the agency of the final agency 
decision and corrective action, if any, using at the minimum, the same 
media employed to give notice of the existence of the class complaint. 
The notice, where appropriate, shall include information concerning the 
rights of class members to seek individual relief and of the procedures 
to be followed. Notice shall be given by the Agency within ten (10) 
calendar days of the transmittal of its decision to the agent.



Sec.  1225.19  Corrective action.

    (a) When discrimination is found. CNCS, or the recipient or 
subrecipient of CNCS assistance or resources, as appropriate, must take 
appropriate action to eliminate or modify the policy or practice out of 
which such discrimination arose, and provide individual corrective 
action to the agent and other class members in accordance with Sec.  
1225.10.
    (b) When discrimination is found and a class member believes that 
but for that discrimination he or she would have been accepted as a 
member or volunteer or received some other volunteer service benefit, 
the class member may file a written claim with the EEOP Director within 
thirty (30) calendar days of notification by the agency of its decision.
    (c) The claim must include a specific, detailed statement showing 
that the claimant is a class member who was affected by an action or 
matter resulting from the discriminatory policy or practice which arose 
not more than 30 days preceding the filing of the class complaint.
    (d) The Agency shall attempt to resolve the claim within sixty (60) 
calendar days after the date the claim was postmarked, or in the absence 
of a postmark, within sixty (60) calendar days after the date it was 
received by the EEOP Director.



Sec.  1225.20  Claim appeals.

    (a) If the EEOP Director and claimant do not agree that the claimant 
is a member of the class, or upon the relief to which the claimant is 
entitled, the EEOP Director shall refer the claim, with recommendations 
concerning it, to the CEO or their designee for a Final Agency Decision 
and shall so notify the claimant. The class member may submit written 
evidence to the CEO or their designee concerning his or her status as a 
member of the class. Such evidence must be submitted no later than ten 
(10) calendar days after receipt of referral.
    (b) The CEO or their designee shall decide the issue within thirty 
(30) days of the date of referral by the EEOP Director. The claimant 
shall be informed in writing of the decision and its basis and that it 
will be the Final Agency Decision of the issue.



Sec.  1225.21  Judicial review.

    (a) An applicant, candidate, member or volunteer is authorized to 
file a civil action in an appropriate U.S. District Court:
    (1) Within thirty (30) calendar days of his or her receipt of the 
notice of final action taken by the agency; or
    (2) After one hundred eighty (180) calendar days from the date of 
filing a formal discrimination complaint with the agency if there has 
been no final agency action.

[[Page 47]]



PART 1226_PROHIBITIONS ON ELECTORAL AND LOBBYING ACTIVITIES--Table of Contents



                      Subpart A_General Provisions

Sec.
1226.1 Purpose.
1226.2 Scope.
1226.3 Definitions.

                    Subpart B_Sponsoring Organization

1226.4 General.
1226.5 Electoral, voter registration, and other activities.

                     Subpart C_Volunteer Activities

1226.6 General.
1226.7 Scope.
1226.8 Prohibited activities.
1226.9 Exceptions.

                  Subpart D_Sponsor Employee Activities

1226.10 Sponsor employees.
1226.11 Obligation of sponsors.

    Authority: 42 U.S.C. 5043.

    Source: 46 FR 8522, Jan. 27, 1981, unless otherwise noted.



                      Subpart A_General Provisions



Sec.  1226.1  Purpose.

    This part implements sections 403(a) and (b) of the Domestic 
Volunteer Service Act of 1973, Public Law 93-113, as amended, 
hereinafter referred to as the Act, pertaining to the prohibited use of 
Federal funds or involvement by certain Corporation for National and 
Community Service programs and volunteers in electoral and lobbying 
activities. This part implements those provisions of the Act, as they 
apply to agency programs and volunteers authorized under title II of the 
Act.

[80 FR 63459, Oct. 20, 2015]



Sec.  1226.2  Scope.

    This part applies to all volunteers serving in a program authorized 
by title II of the Act, including the Foster Grandparent Program, the 
Senior Companion Program, and The Retired and Senior Volunteer Program 
(RSVP). This part also applies to employees or sponsoring organizations, 
whose salaries, or other compensation, are paid, in whole or in part, 
with agency funds.

[80 FR 63459, Oct. 20, 2015]



Sec.  1226.3  Definitions.

    (a) The Act means the Domestic Volunteer Service Act of 1973, as 
amended, Pub. L. 93-113 (42 U.S.C. 4951 et seq.).
    (b) Assistance means funds, volunteers or volunteer training, which 
is paid for from funds appropriated for the purpose of supporting 
activities under the Act, and includes locally provided funds required 
by law, regulation or policy as a local contribution to activities 
authorized by the Act.
    (c) Full time when used in the context of volunteer service, means 
service of not less than 35 hours per week.
    (d) Part time when used in the context of volunteer service, means 
service that is less than full time.
    (e) Recipient or sponsor organization means any organization that 
receives assistance under the Act.
    (f) Volunteer means an individual enrolled for service in a program 
or project that is authorized by or which receives assistance under the 
Act.
    (g) Legislative body includes the United States Congress, State and 
Territorial Legislatures and locally elected or appointed bodies with 
the authority to enact laws.
    (h) Public office includes any Federal, State, local elective, or 
party office.
    (i) Party office means an elective position in a national, state or 
local organization or committees or convention of such organization, 
which has, as a principal purpose, support or opposition to candidates 
for public office.
    (j) Legislation means bills, resolutions, amendments, nominations 
and other matters pending or proposed in a legislative body and includes 
any other matter which may be the subject of action by the legislative 
body.



                    Subpart B_Sponsoring Organization



Sec.  1226.4  General.

    Under section 403 of the Act, volunteer programs may not be 
conducted in a manner which supports or results in the identification of 
such programs with prohibited activities. This section

[[Page 48]]

prescribes the nature and extent of involvement in such activity by an 
organization which would preclude the assignment of volunteers to the 
organization.



Sec.  1226.5  Electoral, voter registration, and other activities.

    Volunteers or other assistance, in any program under the Act shall 
not be assigned or provided to an organization if a principal purpose or 
activity of the organization includes any of the following activities:
    (a) Electoral Activities. Any activity designed to influence the 
outcome of elections to any public office, such as:
    (1) Actively campaigning for or against or supporting candidates for 
public office;
    (2) Raising, soliciting or collecting funds for candidates for 
public office;
    (3) Preparing, distributing or providing funds for campaign 
literature for candidates, including leaflets pamphlets, and material 
designed for the print or electronic media;
    (b) Voter Registration Activities. Any voter registration activity, 
such as
    (1) Providing transportation of individuals to voter registration 
sites;
    (2) Providing assistance to individuals in the process of 
registering to vote, including determinations of eligibility;
    (3) Disseminating official voter registration material.
    (c) Transportation to the Polls. Providing voters or prospective 
voters with transportation to the polls or raising, soliciting or 
collecting funds for such activity.
    (d) Any program sponsor which, subsequent to the receipt of any 
federal assistance under the Act, makes as one of its principal purposes 
or activities any of the activities described in Sec.  1226.5 hereof 
shall be subject to the suspension or termination of such assistance, as 
provided in 45 CFR part 1206.



                     Subpart C_Volunteer Activities



Sec.  1226.6  General.

    (a) All volunteers, full and part time, are subject to the 
prohibitions on expenditure of federal funds for partisan and 
nonpartisan electoral activities, voter registration activities and 
transportation of voters to the polls, and efforts to influence the 
passage or defeat of legislation, as contained in section 403 of the 
Act.
    (b) Full time volunteers, and certain part time volunteers as 
specified herein, are also subject to the restrictions in subchapter 
III, chapter 73 of title 5, United States Code, commonly referred to as 
the Hatch Act, as provided in section 415(b) of the Act.



Sec.  1226.7  Scope.

    The provisions in this subpart are applicable to full time 
volunteers as described in Sec.  1226.3(c), and to such part-time 
volunteers as may be otherwise specified herein. Full time volunteers 
are deemed to be acting in their capacity as volunteers:
    (a) When they are actually engaged in their volunteer assignments; 
or
    (b) Whenever they represent themselves, or may reasonably be 
perceived by others, to be performing as a volunteer.

[46 FR 8522, Jan. 27, 1981, as amended at 80 FR 63459, Oct. 20, 2015]



Sec.  1226.8  Prohibited activities.

    (a) Electoral Activity. Volunteers shall not engage in any activity 
which may, directly or indirectly, affect or influence the outcome of 
any election to public office. Volunteers are prohibited from engaging 
in activities such as:
    (1) Any activity in support of, or in opposition to a candidate for 
election to public office in a partisan or nonpartisan election;
    (2) Participating in the circulation of petitions, or the gathering 
of signatures on nominating petitions or similar documents for 
candidates for public office.
    (3) Raising, soliciting, or collecting funds for a candidate for 
public office;
    (4) Preparing, distributing or providing funds for campaign material 
for candidates, including leaflets, pamphlets, brochures and material 
designed for the print or electronic media;
    (5) Organizing political meetings or forums;
    (6) Canvassing voters on behalf of a candidate for public office;

[[Page 49]]

    (7) Raising, soliciting or collecting funds for groups that engage 
in any of the activities described in paragraphs (a)(1) through (6) of 
this section.
    (b) Voter Registration. Volunteers shall not engage in any voter 
registration activity, including:
    (1) Providing transportation of individuals to voter registration 
sites;
    (2) Providing assistance to individuals in the process of 
registering to vote, including determinations of eligibility;
    (3) The dissemination of official voter registration materials; or
    (4) Raising, soliciting or collecting funds to support activities 
described in paragraphs (b)(1) through (3) of this section.
    (c) Transportation to the Polls. Volunteers shall not engage in any 
activity to provide voters or prospective voters with transportation to 
the polls, nor shall they collect, raise, or solicit funds to support 
such activity, including securing vehicles for such activity.
    (d) Efforts to Influence Legislation. Except as provided in Sec.  
1226.9, volunteers shall not engage in any activity for the purpose of 
influencing the passage or defeat of legislation or any measures on the 
ballot at a general or special election. For example, volunteers shall 
not:
    (1) Testify or appear before legislative bodies in regard to 
proposed or pending legislation;
    (2) Make telephone calls, write letters, or otherwise contact 
legislators or legislative staff, concerning proposed or pending 
legislation for the purpose of influencing the passage or defeat of such 
legislation;
    (3) Draft legislation;
    (4) Prepare legislative testimony;
    (5) Prepare letters to be mailed by third parties to members of 
legislative bodies concerning proposed or pending legislation;
    (6) Prepare or distribute any form of material, including pamphlets, 
newspaper columns, and material designed for either the print or 
electronic media, which urges recipients to contact their legislator or 
otherwise seek passage or defeat of legislation;
    (7) Raise, collect or solicit funds to support efforts to affect the 
passage or defeat of legislation;
    (8) Engage in any of the activities set forth in paragraphs (d)(1) 
through (7) of this section for the purpose of influencing executive 
action in approving or vetoing legislation.
    (9) Circulate petitions, gather signatures on petitions, or urge or 
organize others to do so, which seek to have measures placed on the 
ballot at a general or special election.
    (10) Engage in any of the activities enumerated in paragraphs (d)(1) 
through (9) of this section in regard to the passage or defeat of any 
measure on the ballot in a general or special election.



Sec.  1226.9  Exceptions.

    (a) A volunteer may draft, review, testify or make representations 
to a legislative body regarding a legislative measure upon request of 
the legislative body, a committee, or a member thereof, provided that:
    (1) The request to draft, review, testify or make representations is 
in writing, addressed to the volunteer or the organization to which the 
volunteer is assigned or placed, and signed by a member or members of 
the legislative body.
    (2) The request states the type of representation or assistance 
requested and the issue to be addressed.
    (3) The volunteer or the program sponsor provides a copy of such 
request to the State Director.
    (b) The volunteer may draft, review, testify, or make a written 
representation to a legislative body regarding an authorization or 
appropriation measure directly affecting the operation of the project or 
program to which he or she is assigned: Provided:
    (1) The sponsor organization provides notification to the State 
Director on a quarterly basis of all activity occurring pursuant to this 
exception.
    (2) The legislative measure relates to the funding of the project or 
program or affects the existence or basic structure of the project or 
program.
    (c) Notwithstanding the foregoing exceptions, any activity by a 
volunteer pursuant to paragraph (b)(1) or (2) of this section shall be 
incidental to his or her regular work assignment.

[[Page 50]]



                  Subpart D_Sponsor Employee Activities



Sec.  1226.10  Sponsor employees.

    Sponsor employees whose salaries or other compensation are paid, in 
whole or in part, with agency funds are subject to the restrictions 
described in Sec.  1226.8 and the exceptions in Sec.  1226.9:
    (a) Whenever they are engaged in an activity which is supported by 
Corporation for National and Community Service funds; or
    (b) Whenever they identify themselves as acting in their capacity as 
an official of a project which receives Corporation for National and 
Community Service funds, or could reasonably be perceived by others as 
acting in such capacity.

[46 FR 8522, Jan. 27, 1981. Redesignated and revised at 80 FR 63459, 
Oct. 20, 2015]



Sec.  1226.11  Obligations of sponsors.

    (a) It shall be the obligation of program sponsors to ensure that 
they:
    (1) Fully understand the restrictions on volunteer activity set 
forth herein;
    (2) Provide training to volunteers on the restrictions and ensure 
that all other training materials used in training volunteers are fully 
consistent with these restrictions;
    (3) Monitor on a continuing basis the activity of volunteers for 
compliance with this provision;
    (4) Report all violations, or questionable situations, immediately 
to the State Director.
    (b) Failure of a sponsor to meet the requirements set forth in 
paragraph (a) of this section, or a violation of the rules contained 
herein by either the sponsor, the sponsor's employees subject to Sec.  
1226.12 or the volunteers assigned to the sponsor, at any time during 
the course of the grant may be deemed to be a material failure to comply 
with the terms and conditions of the grant as that term is used in 45 
CFR 1206.1 regarding suspension and termination of assistance or a 
violation of the Project Memorandum of Agreement, as applicable. The 
sponsor shall be subject to the procedures and penalties contained in 45 
CFR 1206.1.
    (c) Violation by a volunteer of any of the rules and regulations set 
forth herein may be cause for suspension or termination as set forth in 
45 CFR 1213.5-5(2) or other disciplinary action.

[46 FR 8522, Jan. 27, 1981. Redesignated at 80 FR 63459, Oct. 20, 2015]



PART 1230_NEW RESTRICTIONS ON LOBBYING--Table of Contents



                            Subpart A_General

Sec.
1230.100 Conditions on use of funds.
1230.105 Definitions.
1230.110 Certification and disclosure.

                  Subpart B_Activities by Own Employees

1230.200 Agency and legislative liaison.
1230.205 Professional and technical services.
1230.210 Reporting.

            Subpart C_Activities by Other Than Own Employees

1230.300 Professional and technical services.

                   Subpart D_Penalties and Enforcement

1230.400 Penalties.
1230.405 Penalty procedures.
1230.410 Enforcement.

                          Subpart E_Exemptions

1230.500 Secretary of Defense.

                        Subpart F_Agency Reports

1230.600 Semi-annual compilation.
1230.605 Inspector General report.

Appendix A to Part 1230--Certification Regarding Lobbying
Appendix B to Part 1230--Disclosure Form To Report Lobbying

    Authority: Section 319, Pub. L. 101-121 (31 U.S.C. 1352); Pub. L. 
93-113; 42 U.S.C. 4951, et seq.; 42 U.S.C. 5060.

    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.  1230.100  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

[[Page 51]]

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.  1230.105  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

[[Page 52]]

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 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.  1230.110  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:

[[Page 53]]

    (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 
paragraphs (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.  1230.200  Agency and legislative liaison.

    (a) The prohibition on the use of appropriated funds, in Sec.  
1230.100 (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

[[Page 54]]

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.  1230.205  Professional and technical services.

    (a) The prohibition on the use of appropriated funds, in Sec.  
1230.100 (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

[[Page 55]]

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.  1230.210  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.  1230.300  Professional and technical services.

    (a) The prohibition on the use of appropriated funds, in Sec.  
1230.100 (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.  1230.110 (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.  1230.400  Penalties.

    (a) Any person who makes an expenditure prohibited herein shall be 
subject to a civil penalty of not less than $20,732 and not more than 
$207,313 for each such expenditure.

[[Page 56]]

    (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 $20,732 and not more than $207,313 
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 $20,732, absent aggravating 
circumstances. Second and subsequent offenses by persons shall be 
subject to an appropriate civil penalty between $20,732 and $207,313, 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.

[55 FR 6737, 6755, Feb. 26, 1990, as amended at 81 FR 40820, June 23, 
2016; 82 FR 1607, Jan. 6, 2017; 83 FR 2075, Jan. 16, 2018; 83 FR 67097, 
Dec. 28, 2018; 84 FR 70903, Dec. 26, 2019; 86 FR 13823, Mar. 11, 2021]



Sec.  1230.405  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.  1230.410  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.  1230.500  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.  1230.600  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.

[[Page 57]]

    (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.  1230.605  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.



     Sec. Appendix A to Part 1230--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

[[Page 58]]

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 $20,732 and not more than $207,313 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 $20,732 and not more than 
$207,313 for each such failure.

[55 FR 6737, 6755, Feb. 26, 1990, as amended at 81 FR 40820, June 23, 
2016; 82 FR 1607, Jan. 6, 2017; 83 FR 2075, Jan. 16, 2018; 83 FR 67097, 
Dec. 28, 2018; 84 FR 70903, Dec. 26, 2019; 86 FR 13823, Mar. 11, 2021]

[[Page 59]]



    Sec. Appendix B to Part 1230--Disclosure Form To Report Lobbying
[GRAPHIC] [TIFF OMITTED] TR24OC02.007


[[Page 60]]


[GRAPHIC] [TIFF OMITTED] TR24OC02.008


[[Page 61]]


[GRAPHIC] [TIFF OMITTED] TR24OC02.009


[[Page 62]]





PART 1232_NONDISCRIMINATION ON BASIS OF HANDICAP IN PROGRAMS OR ACTIVITIES 
RECEIVING FEDERAL FINANCIAL ASSISTANCE--Table of Contents



                      Subpart A_General Provisions

Sec.
1232.1 Purpose.
1232.2 Application.
1232.3 Definitions.
1232.4 General prohibitions against discrimination.
1232.5 Assurances required.
1232.6 Notice.
1232.7 Remedial action, voluntary action and self-evaluation.
1232.8 Effect of state or local law.

          Subpart B_Employment and Volunteer Service Practices

1232.9 General prohibitions against employment and volunteer service 
          discrimination.
1232.10 Reasonable accommodation.
1232.11 Employment and volunteer selection criteria.
1232.12 Preemployment or pre-selection inquiries.

                         Subpart C_Accessibility

1232.13 General requirement concerning accessibility.
1232.14 Existing facilities.
1232.15 New construction.

                          Subpart D_Procedures

1232.16 Procedures.

    Authority: 29 U.S.C. 794.

    Source: 44 FR 31018, May 30, 1979, unless otherwise noted.



                      Subpart A_General Provisions



Sec.  1232.1  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.  1232.2  Application.

    This part applies to each recipient of Federal financial assistance 
from ACTION and to each program or activity that receives such 
assistance, including, but not limited to VISTA, University Year for 
ACTION (UYA), Senior Companion Program (SCP), Foster Grandparent Program 
(FGP) and Retired Senior Volunteer Program (RSVP). This part does not 
apply to recipients outside the United States which receive financial 
assistance under the Peace Corps Act, 22 U.S.C. 2501, Pub. L. 87-293, as 
amended.

[44 FR 31018, May 30, 1979, as amended at 68 FR 51388, Aug. 26, 2003]



Sec.  1232.3  Definitions.

    As used in this part the term:
    (a) The Act means the Rehabilitation Act of 1973. Pub. L. 93-112, as 
amended by the Rehabilitation Act Amendments of 1974, Pub. L. 93-516, 
and the Rehabilitation Act Amendments of 1978, Pub. L. 95-602.
    (b) Section 504 means section 504 of the Act.
    (c) Director means the Director of ACTION.
    (d) 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.
    (e) Applicant for assistance means one who submits an application, 
request, or plan required to be approved by an ACTION official or by a 
recipient as a condition to becoming a recipient.
    (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 which provides or otherwise makes 
available assistance in the form of:
    (1) Funds;
    (2) Services of Federal personnel;
    (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

[[Page 63]]

is not returned to the Federal Government.
    (4) A Federal agreement, arrangement or other contract which has as 
one of its purposes the provision of assistance, including the provision 
of volunteers under the Domestic Volunteer Service Act of 1973, 42 
U.S.C. 4951, Pub. L. 93-113, as amended.
    (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.
    (h) Handicapped person.
    (1) 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, except that as it relates to employment or volunteer service 
the term ``handicapped person'' 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 or volunteer service, by reason of such 
current alcohol or drug abuse, would constitute a direct threat to 
property or the safety of others.
    (2) As used in paragraph (h)(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; genitourinary; 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. 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.
    (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 substantially limit major life 
activities but 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 (h)(2)(i) of this section but is treated by a recipient as 
having such an impairment.
    (i) Qualified handicapped person means (1) with respect to 
employment or volunteer service, a handicapped person who, with 
reasonable accommodation, can perform the essential functions of the job 
or assignment in question; and (2) with respect to services, a 
handicapped person who meets the essential eligibility requirements for 
the receipt of such services.
    (j) Handicap means any condition or characteristic that renders a 
person a handicapped person as defined in paragraph (h) of this section.
    (k) Volunteer and ``Volunteer service'' refers to any person serving 
as a full time or part-time volunteer as authorized under the Domestic 
Volunteer Service Act of 1973, Pub. L. 93-113, as amended.
    (l) Work station means any public or private agency, institution, 
organization or other entity to which volunteers are assigned by a 
recipient.
    (m) Program or activity means all of the operations of any entity 
described in paragraphs (m)(1) through (4) of this section, any part of 
which is extended Federal financial assistance:
    (1)(i) A department, agency, special purpose district, or other 
instrumentality of a State or of a local government; or

[[Page 64]]

    (ii) The entity of such State or local government that distributes 
such assistance and each such department or agency (and each other State 
or local government entity) to which the assistance is extended, in the 
case of assistance to a State or local government;
    (2)(i) A college, university, or other postsecondary institution, or 
a public system of higher education; or
    (ii) A local educational agency (as defined in 20 U.S.C. 7801), 
system of vocational education, or other school system;
    (3)(i) An entire corporation, partnership, or other private 
organization, or an entire sole proprietorship--
    (A) If assistance is extended to such corporation, partnership, 
private organization, or sole proprietorship as a whole; or
    (B) Which is principally engaged in the business of providing 
education, health care, housing, social services, or parks and 
recreation; or
    (ii) The entire plant or other comparable, geographically separate 
facility to which Federal financial assistance is extended, in the case 
of any other corporation, partnership, private organization, or sole 
proprietorship; or
    (4) Any other entity which is established by two or more of the 
entities described in paragraph (m)(1), (2), or (3) of this section.

(Sec. 504, Rehabilitation Act of 1973, Pub. L. 93-112, 87 Stat. 394 (29 
U.S.C. 794), sec. 111(a), Rehabilitation Act Amendments of 1974, Pub. L. 
93-516, 88 Stat. 1619 (29 U.S.C. 706); Rehabilitation Act Amendments of 
1978, Pub. L. 95-602, 92 Stat. 2955; Sec. 402(14), Pub. L. 93-113, 87 
Stat. 398)

[44 FR 31018, May 30, 1979; 46 FR 6951, Jan. 22, 1981, as amended at 68 
FR 51388, Aug. 26, 2003]



Sec.  1232.4  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 to which this part applies.
    (b)(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 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) 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 or 
activity;
    (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 the aid, benefit, or service.
    (2) A recipient may not deny a qualified handicapped person the 
opportunity to participate in aid, benefits, or services that are not 
separate or different, despite the existence of permissibly separate or 
different programs or activities.
    (3) 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

[[Page 65]]

accomplishment of the objectives of the recipient's program or activity 
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.
    (4) A recipient may not, in determining the site or location of a 
facility, make selections:
    (i) 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 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 handicapped persons.
    (c) The exclusion of nonhandicapped persons from aid, benefits, or 
services limited by federal statute or executive order to handicapped 
persons or the exclusion of a specific class of handicapped persons from 
aid, benefits, or services limited by federal statute or executive order 
to a different class of handicapped persons is not prohibited by this 
part.
    (d) Recipients shall administer programs or activities in the most 
integrated setting appropriate to the needs of qualified handicapped 
persons.
    (e) Recipients shall take appropriate steps to ensure that 
communications with their applicants, employees, volunteers and 
beneficiaries are available to persons with impaired vision and hearing.
    (f) 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 or activity receiving Federal financial assistance from ACTION 
because of the absence of auxiliary aids for individuals with impaired 
sensory, manual, or speaking skills.

[44 FR 31018, May 30, 1979, as amended at 68 FR 51388, Aug. 26, 2003]



Sec.  1232.5  Assurances required.

    (a) An applicant for Federal financial assistance to which this part 
applies shall submit an assurance, on a form specified by the Director, 
that the program or activity will be operated in compliance with this 
part. An applicant may incorporate these assurances by reference in 
subsequent applications to ACTION. The assurance will obligate the 
recipient for the period during which Federal financial assistance is 
extended.
    (b) 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.
    (c) A recipient operating a program or activity under which 
volunteers are assigned to a number of work stations shall obtain an 
assurance from each work station that neither volunteers nor the 
beneficiaries they serve will be discriminated against on the basis of 
handicap.

[44 FR 31018, May 30, 1979, as amended at 68 FR 51388, Aug. 26, 2003]



Sec.  1232.6  Notice.

    Recipients shall take appropriate initial and continuing steps to 
notify participants, beneficiaries, applicants, volunteers and 
employees, including those with impaired vision or hearing, that it does 
not discriminate on the basis of handicap in violation of section 504 
and this part.



Sec.  1232.7  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

[[Page 66]]

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 or activity but who were 
participants in the program or activity when such discrimination 
occurred or
    (ii) With respect to handicapped persons who would have been 
participants in the program or activity had the discrimination not 
occurred, or
    (iii) With respect to handicapped persons presently in the program 
or activity, but not receiving full benefits or equal and integrated 
treatment within the program or activity.
    (b) Voluntary action. 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) Each recipient shall, within one year of 
the effective date of this part, conduct a self-evaluation of its 
compliance with Section 504, with the assistance of interested persons, 
including handicapped persons or organizations representing handicapped 
persons. Each recipient shall with the assistance of and consultation 
with interested persons, including handicapped persons, evaluate its 
current policies, practices and effects thereof; modify any that do not 
meet the requirements of this part; and take 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 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.

[44 FR 31018, May 30, 1979, as amended at 68 FR 51388, Aug. 26, 2003]



Sec.  1232.8  Effect of state or local law.

    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.



          Subpart B_Employment and Volunteer Service Practices



Sec.  1232.9  General prohibitions against employment 
and volunteer service discrimination.

    (a) No qualified handicapped person shall, on the basis of handicap, 
be subjected to discrimination in employment or volunteer service under 
any program or activity that receives federal financial assistance.
    (b) A recipient shall make all decisions concerning employment or 
volunteer service 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 or volunteers in any way that adversely affects 
their opportunities or status because of handicap.
    (c) The prohibition against discrimination in employment and 
volunteer service applies to the following activities:
    (1) Recruitment, advertising, and the processing of applications for 
employment or volunteer service;
    (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 or volunteer 
service, whether or not administered by the recipient;

[[Page 67]]

    (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 those that are social 
or recreational; and
    (9) Any other term, condition, or privilege of employment or 
volunteer service.
    (d) A recipient may not participate in a contractural or other 
relationship that has the effect of subjecting qualified handicapped 
applicants, volunteers 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 apprenticeships.
    (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.
    (f) Recipients operating a program or activity under which 
volunteers are assigned to work in a number of work stations will assure 
that a representative sample of work stations are accessible to 
handicapped persons.

[44 FR 31018, May 30, 1979, as amended at 68 FR 51388, Aug. 26, 2003]



Sec.  1232.10  Reasonable accommodation.

    (a) A recipient shall make reasonable accommodation to the known 
physical or mental limitations of an otherwise qualified handicapped 
applicant, employee or volunteer unless the recipient can demonstrate 
that the accommodation would impose an undue hardship on the operation 
of its program or activity.
    (b) Reasonable accommodation may include: (1) Making facilities used 
by employees or volunteers 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 or activity, factors to be considered include:
    (1) The overall size of the recipient's program or activity with 
respect to number of employees or volunteers, 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 or volunteer force, and
    (3) The nature and cost of the accommodation needed.

[44 FR 31018, May 30, 1979, as amended at 68 FR 51388, Aug. 26, 2003]



Sec.  1232.11  Employment and volunteer selection criteria.

    A recipient may not use employment tests or criteria that 
discriminate against handicapped persons and shall ensure that 
employment tests are adapted for use by persons who have handicaps that 
impair sensory, manual, or speaking skills.



Sec.  1232.12  Preemployment or pre-selection inquiries.

    (a) Except as provided in paragraphs (b) and (c) of this section, a 
recipient may not conduct a preemployment medical examination or not 
make pre-employment inquiry of an applicant as to whether the applicant 
is a handicapped person or as to the nature of severity of a handicap. A 
recipient may, however, make preemployment inquiry into an applicant's 
ability to perform job-related functions. For the purpose of this 
paragraph, ``pre-employment'' as applied to applicants for volunteer 
positions means prior to selection as a volunteer.
    (b) When a recipient is taking remedial action to correct the 
effects of past discrimination pursuant to Sec.  1232.8(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.  1232.8(b) or when a 
recipient is taking affirmative action pursuant to section

[[Page 68]]

503 of the Act, the recipient may invite applicants for employment or 
volunteer service 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 or volunteer service on the results 
of a medical examination conducted prior to the volunteer or employee's 
entrance on duty. Provided, That:
    (1) All entering volunteers or 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 officers investigating compliance with the Act shall 
be provided relevant information upon request.



                         Subpart C_Accessibility



Sec.  1232.13  General requirement concerning accessibility.

    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 that 
receives or benefits from federal financial assistance.

[44 FR 31018, May 30, 1979]



Sec.  1232.14  Existing facilities.

    (a) A recipient shall operate each program or activity to which this 
part applies so that when each part is viewed in its entirety it is 
readily accessible and usable by 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 handicapped 
persons.
    (b) A recipient is not required to make structural changes in 
existing facilities where other methods are effective in achieving 
compliance with this section. Where structural changes are necessary to 
comply with paragraph (a) of this section, such changes shall be made as 
soon as practicable, but in no event later than three years after the 
effective date of the regulation.
    (c) 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 which sets forth in detail the steps necessary to 
complete the changes, and a schedule for taking those steps. The plan 
shall be developed with the assistance of interested persons, including 
handicapped persons or organizations representing handicapped persons. A 
copy of the plan shall be made available for public inspection.

[44 FR 31018, May 30, 1979, as amended at 68 FR 51388, Aug. 26, 2003]



Sec.  1232.15  New construction.

    (a) Design, construction, and alteration. New facilities shall be 
designed and constructed to be readily accessible to

[[Page 69]]

and usable by handicapped persons. construction shall be considered new 
if ground breaking takes place after the effective date of the 
regulation. 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.

[44 FR 31018, May 30, 1979, as amended at 55 FR 52138, 52142, Dec. 19, 
1990]



                          Subpart D_Procedures



Sec.  1232.16  Procedures.

    The procedural provisions applicable to title VI of the Civil Rights 
Act of 1964 apply to this part. These procedures are found in Sec. Sec.  
1203.6 through 1203.11 of this title.



PART 1233_INTERGOVERNMENTAL REVIEW OF ACTION PROGRAMS--Table of Contents



Sec.
1233.1 What is the purpose of these regulations?
1233.2 What definitions apply to these regulations?
1233.3 What programs of the Agency are subject to these regulations?
1233.4 [Reserved]
1233.5 What is the Director's obligation with respect to federal 
          interagency coordination?
1233.6 What procedures apply to the selection of programs under these 
          regulations?
1233.7 How does the Director communicate with state and local officials 
          concerning the Agency's programs?
1233.8 How does the Director provide states an opportunity to comment on 
          proposed federal financial assistance?
1233.9 How does the Director receive and respond to comments?
1233.10 How does the Director make efforts to accommodate 
          intergovernmental concerns?
1233.11-1233.12 [Reserved]
1233.13 May the Director 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. 6505).

    Source: 48 FR 29284, June 24, 1983, unless otherwise noted.



Sec.  1233.1  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.
    (c) These regulations are intended to aid the internal management of 
the Agency, and are not intended to create any right or benefit 
enforceable at law by a party against the Agency or its officers.



Sec.  1233.2  What definitions apply to these regulations?

    Agency means ACTION, the National Volunteer Agency.
    Order means Executive Order 12372, issued July 14, 1982, and amended 
April

[[Page 70]]

8, 1983 and titled ``Intergovernmental Review of Federal Programs.''
    Director means the Director of ACTION, or an official or employee of 
the Agency 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.  1233.3  What programs of the Agency are subject to these regulations?

    The Director publishes in the Federal Register a list of the 
Agency's programs that are subject to these regulations.



Sec.  1233.4  [Reserved]



Sec.  1233.5  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 ACTION regarding programs covered under these regulations.



Sec.  1233.6  What procedures apply to the selection of programs 
under these regulations?

    (a) A state may select any ACTION program published in the Federal 
Register in accordance with Sec.  1233.3 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 Agency's programs 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 local elected officials 
regarding the change. The Agency 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, after the Director is notified of its 
selections.



Sec.  1233.7  How does the Director communicate with state and local officials 
concerning the Agency's programs?

    (a) The Director provides opportunities for consultation by elected 
officials of those state and local governments that would provide the 
nonfederal funds for, or that would be directly affected by, proposed 
federal financial assistance from the Agency. For those programs covered 
by a state process under Sec.  1233.6, the Director, to the extent 
permitted by law:
    (1) Uses the official state process to determine views of state and 
local elected officials; and,
    (2) Communicates with state and local elected officials, through the 
official 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 if:
    (1) The state has not adopted a process under the Order; or
    (2) The assistance involves a program not selected for the state 
process.

This notice may be made by publication in the Federal Register, or other 
appropriate means, which the Agency in its discretion deems appropriate.



Sec.  1233.8  How does the Director provide states an opportunity 
to comment on proposed federal financial assistance?

    (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 the form of 
noncompeting continuation awards; and
    (2) At least 60 days from the date established by the Director to 
comment on proposed federal financial assistance other than noncompeting 
continuation awards.

[[Page 71]]

    (b) This section also applies to comments in cases in which the 
review, coordination, and communication with the Agency have been 
delegated.



Sec.  1233.9  How does the Director receive and respond to comments?

    (a) The Director follows the procedures in Sec.  1233.10 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.  1233.6.
    (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 Agency, or both.
    (d) If a program 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 Agency, or both. In addition, if a 
state process recommendation for a nonselected program is transmitted to 
the Agency by the single point of contact, the Director follows the 
prodecures of Sec.  1233.10 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.  1233.10 of 
this part, when such comments are provided by a single point of contact, 
by the applicant, or directly to the Agency by a commenting party.



Sec.  1233.10  How does the Director make efforts to accommodate 
intergovernmental concerns?

    (a) If a state process provides a state process recommendation to 
the Agency 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 Agency's 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 Agency 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 purpose 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. Sec.  1233.11-1233.12  [Reserved]



Sec.  1233.13  May the Director waive any provision of these regulations?

    In an emergency, the Director may waive any provision of these 
regulations.



PART 1235_LOCALLY GENERATED CONTRIBUTIONS IN OLDER AMERICAN 
VOLUNTEER PROGRAMS--Table of Contents



Sec.
1235.1 Definitions.
1235.2 Implementation guidance.
1235.3 Statement of policy.

    Authority: 42 U.S.C. 5024; 42 U.S.C. 5060.

    Source: 56 FR 4732, Feb. 6, 1991, unless otherwise noted.

[[Page 72]]



Sec.  1235.1  Definitions.

    As used in this part and in section 224 of the Domestic Volunteer 
Service Act of 1973, as amended, the following definitions shall apply:
    (a) Director means the Director of ACTION.
    (b) Locally Generated Contributions means all contributions 
generated by the grantee in support of the grant, including non-ACTION 
Federal, State, local government and privately raised contributions.
    (c) Amount Required by the Director means the proportion of the non-
Federal contribution (including in-kind contributions) for a grant or 
contract made under the Domestic Volunteer Service Act of 1973, as 
amended, required by the Director in order to receive ACTION funds. This 
proportion is generally 10% for the Foster Grandparent Program/Senior 
Companion Program (FGP/SCP) and generally 10%, 20% and 30% for the 
Retired Senior Volunteer Program (RSVP) in the first, second, and 
subsequent years respectively. The ``amount required by the Director'' 
is also called the ``local match.''
    (d) In Excess of the Amount Required by the Director means of the 
total locally generated contributions, the amount over and above the 
percentage match (generally 10% for FGP/SCP and 10%, 20% and 30% for 
RSVP in the first, second, and subsequent years respectively) required 
by the Director of ACTION to be raised from non-ACTION sources to 
support the grant.
    (e) Inconsistent with the Provisions of This Act means expenditures 
not in support of ACTION programs, as defined by the Domestic Volunteer 
Service Act of 1973, as amended. For example:
    (1) Inconsistency with the age threshold for volunteers for all 
Older American Volunteer Programs (OAVP);
    (2) Inconsistency with the low income test for the FGP and SCP 
programs;
    (3) Variations from the approved stipend levels for the FGP and SCP 
programs;
    (4) Inconsistency with the prohibition against political activity 
under all the OAVP programs; and/or
    (5) Unreasonable cost for a low-cost volunteer program.



Sec.  1235.2  Implementation guidance.

    ACTION's implementation of section 224 of the DVSA is based on 
fundamental principles regarding the Congressional intent of the Section 
as well as the Executive Branch's policy on Federal financial assistance 
to grantees. These principles include:
    (a) That ACTION may not restrict grantees' use of excess 
contributions as long as those expenditures are ``not inconsistent'' 
with the Domestic Volunteer Service Act of 1973, as amended;
    (b) That grantees are to fully account for and document expenditures 
of non-Federal contributions, regardless of whether they are used to 
meet ACTION's local match requirement or are in excess of the 
requirement; and

[56 FR 4732, Feb. 6, 1991, as amended at 79 FR 76077, Dec. 19, 2014]



Sec.  1235.3  Statement of policy.

    (a) Expenditures of locally generated non-Federal contributions 
required by the Director as matching funds must meet the requirements 
specified in ACTION's Grant Management and Program Operations Handbook, 
ACTION Order 2650.2, as amended, and the Domestic Volunteer Service Act 
of 1973, as amended. Copies of ACTION's Grants Management and Program 
Operations Handbook, ACTION Order 2650.2, as amended, are available at 
ACTION, 1100 Vermont Avenue, NW., Room 9200, Washington, DC 20525.
    (b) All expenditures by the grantee of Federal and non-Federal funds 
(including expenditures from excess locally generated contributions) in 
support of the grant are subject to ACTION authorized audits.
    (c) ACTION will not restrict the manner in which locally generated 
contributions in excess of the required match are expended if these 
expenditures are not inconsistent with the Domestic Volunteer Service 
Act of 1973, as amended.

                       PARTS 1236	1299 [RESERVED]

[[Page 73]]



 CHAPTER XIII--ADMINISTRATION FOR CHILDREN AND FAMILIES, DEPARTMENT OF 
                        HEALTH AND HUMAN SERVICES




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

           SUBCHAPTER A--ADMINISTRATIVE MATTERS (EFF. 3-22-22)
Part                                                                Page
1300            Review of regulations.......................          75
 SUBCHAPTER B--THE ADMINISTRATION FOR CHILDREN AND FAMILIES, HEAD START 
                                 PROGRAM
1301            Program governance..........................          78
1302            Program operations..........................          80
1303            Financial and administrative requirements...         119
1304            Federal administrative procedures...........         134
1305            Definitions.................................         145
          SUBCHAPTER C--THE ADMINISTRATION FOR COMMUNITY LIVING
1321            Grants to State and community programs on 
                    aging...................................         152
1322            Grants to Indian tribes for support and 
                    nutrition services......................         167
1323            Grants for supportive and nutritional 
                    services to older Hawaiian natives......         171
1324            Allotments for vulnerable elder rights 
                    protection activities...................         175
1325            Requirements applicable to the developmental 
                    disabilities program....................         192
1326            Developmental disabilities formula grant 
                    programs................................         199
1327            Developmental disabilities projects of 
                    national significance...................         222
1328            The national network of university centers 
                    for excellence in developmental 
                    disabilities, education, research, and 
                    service.................................         222
1329            State independent living services and 
                    centers for independent living..........         226
1330            National Institute for Disability, 
                    Independent Living, and Rehabilitation 
                    Research................................         237

[[Page 74]]

1331            State health insurance assistance program...         247
 SUBCHAPTER D--THE ADMINISTRATION FOR NATIVE AMERICANS, NATIVE AMERICAN 
                                PROGRAMS
1336            Native American programs....................         250
                         SUBCHAPTER E [RESERVED]
   SUBCHAPTER F--THE ADMINISTRATION FOR CHILDREN, YOUTH AND FAMILIES, 
                    FAMILY AND YOUTH SERVICES BUREAU
1351            Runaway and Homeless Youth Program..........         264
SUBCHAPTER G--THE ADMINISTRATION ON CHILDREN, YOUTH AND FAMILIES, FOSTER 
  CARE MAINTENANCE PAYMENTS, ADOPTION ASSISTANCE, AND CHILD AND FAMILY 
                                SERVICES
1355            General.....................................         277
1356            Requirements applicable to Title IV-E.......         343
1357            Requirements applicable to Title IV-B.......         377
     SUBCHAPTER H--FAMILY VIOLENCE PREVENTION AND SERVICES PROGRAMS
1370            Family violence prevention and services 
                    programs................................         392
   SUBCHAPTER I--THE ADMINISTRATION ON INTELLECTUAL AND DEVELOPMENTAL 
            DISABILITIES, DEVELOPMENTAL DISABILITIES PROGRAM
1385-1399

[Reserved]

                       SUBCHAPTERS J-K [RESERVED]

[[Page 75]]



           SUBCHAPTER A_ADMINISTRATIVE MATTERS (EFF. 3	22	22)



    Effective Date Note: At 86 FR 5763, Jan. 19, 2021, subchapter A was 
added, effective Mar. 22, 2021. A correction was published at 86 FR 
15408, Mar. 23, 2021, and the effective date was delayed until Mar. 22, 
2022, at 86 FR 15404, Mar. 23, 2021.



PART 1300_REVIEW OF REGULATIONS--Table of Contents



Sec.
1300.1 Retrospective Review of Existing Regulations.
1300.2-1300.5 [Reserved]

    Authority: 5 U.S.C. 301; 5 U.S.C. 610; 29 U.S.C. 709; 29 U.S.C. 
3343; 42 U.S.C. 620 et seq., 42 U.S.C. 670 et seq.; 42 U.S.C. 1302; 42 
U.S.C. 1395b-4; 42 U.S.C. 2991, et seq.; 42 U.S.C. 3001 et seq.; Title 
III of the Older Americans Act; 42 U.S.C. 3001; Title VI, Part A of the 
Older Americans Act; 42 U.S.C. 3001; Title VI Part B of the Older 
Americans Act; 42 U.S.C. 3515e; 42 U.S.C. 5701; 42 U.S.C. 9801 et seq.; 
42 U.S.C. 10401 et seq.; 42 U.S.C. 15001 et seq.



Sec.  1300.1  Retrospective Review of Existing Regulations.

    (a) This section applies to and shall be deemed to amend all 
regulations issued by the Secretary or his delegates or sub-delegates in 
this chapter.
    (b) For purposes of this section,
    (1) Assess shall refer to a determination by the Department, in 
consultation with other Federal agencies as appropriate, as to whether 
the Sections issued as part of the same rulemaking (and any amendments 
or additions that may have been added thereafter) currently have a 
significant economic impact upon a substantial number of small entities.
    (2) Review shall refer to a process conducted by the Department, in 
consultation with other Federal agencies as appropriate, the purpose of 
which shall be to determine whether Sections that were issued as part of 
the same rulemaking (and any amendments or additions that may have been 
issued thereafter) should be continued without change, or should be 
amended or rescinded, consistent with the stated objectives of 
applicable statutes, to minimize any significant economic impact of the 
Sections upon a substantial number of small entities.
    (3) Section (when capitalized) shall mean a section of the Code of 
Federal Regulations. For example, 42 CFR 2.13 is a Section, and 42 CFR 
2.14 is another Section (see 1 CFR 21.11).
    (4) Year of the Section's promulgation shall mean the year the 
Section first became effective, irrespective of whether it was 
subsequently amended.
    (5) Significant economic impact upon a substantial number of small 
entities shall have the meaning of that term in section 610 of title 5 
of the United States Code.
    (c)(1) Unless a Section expires earlier or is rescinded, all 
Sections issued by the Secretary or his delegates or sub-delegates in 
this chapter shall expire at the end of:
    (i) Five calendar years after the year that this section first 
becomes effective;
    (ii) Ten calendar years after the year of the Section's 
promulgation; or
    (iii) Ten calendar years after the last year in which the Department 
assessed and (if review of the Section is required pursuant to paragraph 
(d) of this section) reviewed the Section, whichever is latest.
    (2) The last year in which the Department assessed and (if review of 
the Section is required) reviewed the Section shall be the year during 
which the findings of the assessment and (if required) the review of a 
Section are published in the Federal Register pursuant to paragraph (f) 
of this section.
    (3)(i) If, prior to the expiration of a Section under paragraph 
(c)(1) of this section, the Secretary makes a written determination that 
the public interest requires continuation of the Section in force beyond 
the date on which the Section would otherwise expire under paragraph 
(c)(1), the Secretary may continue the Section in force one time for a 
period stated in the determination, which shall not exceed one calendar 
year.
    (ii) The Department shall promptly publish in the Federal Register 
any written determination under paragraph (c)(3)(i) of this section.
    (iii) The authority of the Secretary under paragraph (c)(3)(i) of 
this section

[[Page 76]]

is not delegable and may be exercised only by the Secretary or, when the 
office of the Secretary is vacant or the Secretary has become unable to 
perform the functions and duties of the office of the Secretary, by the 
individual acting as Secretary in accordance with the law.
    (d) The Department is required to review those rulemakings (and any 
amendments or additions that may have been added thereafter) that the 
Department assesses have a significant economic impact upon a 
substantial number of small entities. In reviewing rulemakings to 
minimize any significant economic impact on a substantial number of 
small entities in a manner consistent with the stated objectives of 
applicable statutes, the Department's review shall consider the 
following factors:
    (1) The continued need for the rulemaking, consideration of which 
shall include but not be limited to the extent to which the rulemaking 
defines terms or sets standards used in or otherwise applicable to other 
Federal rules;
    (2) The nature of complaints or comments received concerning the 
rulemaking from the public;
    (3) The complexity of the rulemaking;
    (4) The extent to which the rulemaking overlaps, duplicates or 
conflicts with other Federal rules, and, to the extent feasible, with 
State and local governmental rules;
    (5) The degree to which technology, economic conditions, or other 
factors have changed in the area affected by the rulemaking since the 
rulemaking was promulgated or the last time the rulemaking was reviewed 
by the Department; and
    (6) Whether the rulemaking complies with applicable law.
    (e) If the review concludes the Section should be amended or 
rescinded, the Department shall have two years from the date that the 
findings of the review are published in the Federal Register pursuant to 
paragraph (f) of this section to amend or rescind the Section. If the 
Secretary determines that completion of the amendment or rescission is 
not feasible by the established date, he shall so certify in a statement 
published in the Federal Register and may extend the completion date by 
one year at a time, no more than three times, for a total of not more 
than five years (inclusive of the initial two-year period).
    (f) The results of all assessments and reviews conducted in a 
calendar year, including the full underlying analyses and data used to 
support the results (subject to any applicable privilege, protections 
for confidential business information, or explicit legal prohibition on 
disclosure), shall be published in a single document in the Federal 
Register during that calendar year. The document shall be organized in a 
manner that enables both the Department and the public to readily 
determine which assessments and reviews were conducted during that 
calendar year. The document shall also specify the year by which the 
next assessment (and, if required, the next review) of the Section shall 
be completed.
    (g) Paragraph (c) of this section shall not apply to:
    (1) Sections that are prescribed by Federal law, such that the 
Department exercises no discretion as to whether to promulgate the 
Section and as to what is prescribed by the Section. For Sections 
described in this paragraph (g)(1) that are adopted after the effective 
date of this section, the Federal law described in this paragraph (g)(1) 
shall be cited in the notice of adoption.
    (2) Sections whose expiration pursuant to this section would violate 
any other Federal law.
    (3) This section.
    (4) Sections that involve a military or foreign affairs function of 
the United States.
    (5) Sections addressed solely to internal agency management or 
personnel matters.
    (6) Sections related solely to Federal Government procurement.
    (7) Sections that were issued jointly with other Federal agencies, 
or that were issued in consultation with other agencies because of a 
legal requirement to consult with that other agency.
    (h) When the Department commences the process of performing an 
assessment or review, it shall state on a Department-managed website the 
Section(s) whose assessment or review it is

[[Page 77]]

commencing. It shall also announce once a month in the Federal Register 
those new assessments or reviews that it has commenced in the last 
month. The Department will create a docket on Regulations.gov for each 
assessment or review that the Department is conducting. The public will 
be able to submit comments to the dockets of each rulemaking being 
assessed or reviewed. Each docket shall specify the date by which 
comments must be received. There shall also be a general docket on 
Regulations.gov where the public can submit comments requesting that the 
Department assess or review a Section.
    (i) Any provision of this section held to be invalid or 
unenforceable by its terms, or as applied to any person or circumstance, 
shall be construed so as to continue to give the maximum effect to the 
provision permitted by law, unless such holding shall be one of utter 
invalidity or unenforceability, in which event the provision shall be 
severable from this section and shall not affect the remainder thereof 
or the application of the provision to persons not similarly situated or 
to dissimilar circumstances.



Sec.  1300.2-1300.5  [Reserved]

[[Page 78]]



 SUBCHAPTER B_THE ADMINISTRATION FOR CHILDREN AND FAMILIES, HEAD START 
                                 PROGRAM





PART 1301_PROGRAM GOVERNANCE--Table of Contents



Sec.
1301.1 Purpose.
1301.2 Governing body.
1301.3 Policy council and policy committee.
1301.4 Parent committees.
1301.5 Training.
1301.6 Impasse procedures.

    Authority: 42 U.S.C. 9801 et seq.

    Source: 81 FR 61412, Sept. 6, 2016, unless otherwise noted.



Sec.  1301.1  In general.

    An agency, as defined in part 1305 of this chapter, must establish 
and maintain a formal structure for program governance that includes a 
governing body, a policy council at the agency level and policy 
committee at the delegate level, and a parent committee. Governing 
bodies have a legal and fiscal responsibility to administer and oversee 
the agency's Head Start and Early Head Start programs. Policy councils 
are responsible for the direction of the agency's Head Start and Early 
Head Start programs.



Sec.  1301.2  Governing body.

    (a) Composition. The composition of a governing body must be in 
accordance with the requirements specified at section 642(c)(1)(B) of 
the Act, except where specific exceptions are authorized in the case of 
public entities at section 642(c)(1)(D) of the Act. Agencies must ensure 
members of the governing body do not have a conflict of interest, 
pursuant to section 642(c)(1)(C) of the Act.
    (b) Duties and responsibilities. (1) The governing body is 
responsible for activities specified at section 642(c)(1)(E) of the Act.
    (2) The governing body must use ongoing monitoring results, data on 
school readiness goals, other information described in Sec.  1302.102, 
and information described at section 642(d)(2) of the Act to conduct its 
responsibilities.
    (c) Advisory committees. (1) A governing body may establish advisory 
committees as it deems necessary for effective governance and 
improvement of the program.
    (2) If a governing body establishes an advisory committee to oversee 
key responsibilities related to program governance, it must:
    (i) Establish the structure, communication, and oversight in such a 
way that the governing body continues to maintain its legal and fiscal 
responsibility for the Head Start agency; and,
    (ii) Notify the responsible HHS official of its intent to establish 
such an advisory committee.



Sec.  1301.3  Policy council and policy committee.

    (a) Establishing policy councils and policy committees. Each agency 
must establish and maintain a policy council responsible for the 
direction of the Head Start program at the agency level, and a policy 
committee at the delegate level. If an agency delegates operational 
responsibility for the entire Head Start or Early Head Start program to 
one delegate agency, the policy council and policy committee may be the 
same body.
    (b) Composition. (1) A program must establish a policy council in 
accordance with section 642(c)(2)(B) of the Act, or a policy committee 
at the delegate level in accordance with section 642(c)(3) of the Act, 
as early in the program year as possible. Parents of children currently 
enrolled in each program option must be proportionately represented on 
the policy council and on the policy committee at the delegate level.
    (2) The program must ensure members of the policy council, and of 
the policy committee at the delegate level, do not have a conflict of 
interest pursuant to sections 642(c)(2)(C) and 642(c)(3)(B) of the Act. 
Staff may not serve on the policy council or policy committee at the 
delegate level except parents who occasionally substitute as staff. In 
the case of tribal grantees, this exclusion applies only to tribal staff 
who work in areas directly related

[[Page 79]]

to or which directly impact administrative, fiscal, or programmatic 
issues.
    (c) Duties and responsibilities. (1) A policy council is responsible 
for activities specified at section 642(c)(2)(D) of the Act. A policy 
committee must approve and submit to the delegate agency its decisions 
in each of the following areas referenced at section 642(c)(2)(D)(i) 
through (vii) of the Act.
    (2) A policy council, and a policy committee at the delegate level, 
must use ongoing monitoring results, data on school readiness goals, 
other information described in Sec.  1302.102, and information described 
in section 642(d)(2) of the Act to conduct its responsibilities.
    (d) Term. (1) A member will serve for one year.
    (2) If the member intends to serve for another year, s/he must stand 
for re-election.
    (3) The policy council, and policy committee at the delegate level, 
must include in its bylaws how many one-year terms, not to exceed five 
terms, a person may serve.
    (4) A program must seat a successor policy council, or policy 
committee at the delegate level, before an existing policy council, or 
policy committee at the delegate level, may be dissolved.
    (e) Reimbursement. A program must enable low-income members to 
participate fully in their policy council or policy committee 
responsibilities by providing, if necessary, reimbursements for 
reasonable expenses incurred by the low-income members.



Sec.  1301.4  Parent committees.

    (a) Establishing parent committees. A program must establish a 
parent committee comprised exclusively of parents of currently enrolled 
children as early in the program year as possible. This committee must 
be established at the center level for center-based programs and at the 
local program level for other program options. When a program operates 
more than one option, parents may choose to have a separate committee 
for each option or combine membership. A program must ensure that 
parents of currently enrolled children understand the process for 
elections to the policy council or policy committee and other leadership 
opportunities.
    (b) Requirements of parent committees. Within the parent committee 
structure, a program may determine the best methods to engage families 
using strategies that are most effective in their community, as long as 
the program ensures the parent committee carries out the following 
minimum responsibilities:
    (1) Advise staff in developing and implementing local program 
policies, activities, and services to ensure they meet the needs of 
children and families;
    (2) Have a process for communication with the policy council and 
policy committee; and
    (3) Within the guidelines established by the governing body, policy 
council or policy committee, participate in the recruitment and 
screening of Early Head Start and Head Start employees.



Sec.  1301.5  Training.

    An agency must provide appropriate training and technical assistance 
or orientation to the governing body, any advisory committee members, 
and the policy council, including training on program performance 
standards and training indicated in Sec.  1302.12(m) to ensure the 
members understand the information they receive and can effectively 
oversee and participate in the programs in the Head Start agency.



Sec.  1301.6  Impasse procedures.

    (a) To facilitate meaningful consultation and collaboration about 
decisions of the governing body and the policy council, each agency's 
governing body and policy council jointly must establish written 
procedures for resolving internal disputes between the governing board 
and policy council in a timely manner that include impasse procedures. 
These procedures must:
    (1) Demonstrate that the governing body considers proposed decisions 
from the policy council and that the policy council considers proposed 
decisions from the governing body;
    (2) If there is a disagreement, require the governing body and the 
policy council to notify the other in writing why it does not accept a 
decision; and,

[[Page 80]]

    (3) Describe a decision-making process and a timeline to resolve 
disputes and reach decisions that are not arbitrary, capricious, or 
illegal.
    (b) If the agency's decision-making process does not result in a 
resolution and an impasse continues, the governing body and policy 
council must select a mutually agreeable third party mediator and 
participate in a formal process of mediation that leads to a resolution 
of the dispute.
    (c) For all programs except American Indian and Alaska Native 
programs, if no resolution is reached with a mediator, the governing 
body and policy council must select a mutually agreeable arbitrator 
whose decision is final.



PART 1302_PROGRAM OPERATIONS--Table of Contents



Sec.
1302.1 Overview.

     Subpart A_Eligibility, Recruitment, Selection, Enrollment, and 
                               Attendance

1302.10 Purpose.
1302.11 Determining community strengths, needs, and resources.
1302.12 Determining, verifying, and documenting eligibility.
1302.13 Recruitment of children.
1302.14 Selection process.
1302.15 Enrollment.
1302.16 Attendance.
1302.17 Suspension and expulsion.
1302.18 Fees.

                       Subpart B_Program Structure

1302.20 Determining program structure.
1302.21 Center-based option.
1302.22 Home-based option.
1302.23 Family child care option.
1302.24 Locally-designed program option variations.

       Subpart C_Education and Child Development Program Services

1302.30 Purpose.
1302.31 Teaching and the learning environment.
1302.32 Curricula.
1302.33 Child screenings and assessments.
1302.34 Parent and family engagement in education and child development 
          services.
1302.35 Education in home-based programs.
1302.36 Tribal language preservation and revitalization.

                    Subpart D_Health Program Services

1302.40 Purpose.
1302.41 Collaboration and communication with parents.
1302.42 Child health status and care.
1302.43 Oral health practices.
1302.44 Child nutrition.
1302.45 Child mental health and social and emotional well-being.
1302.46 Family support services for health, nutrition, and mental 
          health.
1302.47 Safety practices.

       Subpart E_Family and Community Engagement Program Services

1302.50 Family engagement.
1302.51 Parent activities to promote child learning and development.
1302.52 Family partnership services.
1302.53 Community partnerships and coordination with other early 
          childhood and education programs.

      Subpart F_Additional Services for Children With Disabilities

1302.60 Full participation in program services and activities.
1302.61 Additional services for children.
1302.62 Additional services for parents.
1302.63 Coordination and collaboration with the local agency responsible 
          for implementing IDEA.

                      Subpart G_Transition Services

1302.70 Transitions from Early Head Start.
1302.71 Transitions from Head Start to kindergarten.
1302.72 Transitions between programs.

              Subpart H_Services to Enrolled Pregnant Women

1302.80 Enrolled pregnant women.
1302.81 Prenatal and postpartum information, education, and services.
1302.82 Family partnership services for enrolled pregnant women.

                  Subpart I_Human Resources Management

1302.90 Personnel policies.
1302.91 Staff qualification and competency requirements.
1302.92 Training and professional development.
1302.93 Staff health and wellness.
1302.94 Volunteers.

          Subpart J_Program Management and Quality Improvement

1302.100 Purpose.
1302.101 Management system.

[[Page 81]]

1302.102 Achieving program goals.
1302.103 Implementation of program performance standards.

    Authority: 42 U.S.C. 9801 et seq.

    Source: 81 FR 61412, Sept. 6, 2016, unless otherwise noted.



Sec.  1302.1  Overview.

    This part implements these statutory requirements in Sections 641A, 
645, 645A, and 648A of the Act by describing all of the program 
performance standards that are required to operate Head Start, Early 
Head Start, American Indian and Alaska Native and Migrant or Seasonal 
Head Start programs. The part covers the full range of operations from 
enrolling eligible children and providing program services to those 
children and their families, to managing programs to ensure staff are 
qualified and supported to effectively provide services. This part also 
focuses on using data through ongoing program improvement to ensure 
high-quality service. As required in the Act, these provisions do not 
narrow the scope or quality of services covered in previous regulations. 
Instead, these regulations raise the quality standard to reflect science 
and best practices, and streamline and simplify requirements so programs 
can better understand what is required for quality services.



     Subpart A_Eligibility, Recruitment, Selection, Enrollment, and 
                               Attendance



Sec.  1302.10  Purpose.

    This subpart describes requirements of grantees for determining 
community strengths, needs and resources as well as recruitment areas. 
It contains requirements and procedures for the eligibility 
determination, recruitment, selection, enrollment and attendance of 
children and explains the policy concerning the charging of fees.



Sec.  1302.11  Determining community strengths, needs, and resources.

    (a) Service area. (1) A program must propose a service area in the 
grant application and define the area by county or sub-county area, such 
as a municipality, town or census tract or jurisdiction of a federally 
recognized Indian reservation.
    (i) A tribal program may propose a service area that includes areas 
where members of Indian tribes or those eligible for such membership 
reside, including but not limited to Indian reservation land, areas 
designated as near-reservation by the Bureau of Indian Affairs (BIA) 
provided that the service area is approved by the tribe's governing 
council, Alaska Native Villages, Alaska Native Regional Corporations 
with land-based authorities, Oklahoma Tribal Statistical Areas, and 
Tribal Designated Statistical Areas where federally recognized Indian 
tribes do not have a federally established reservation.
    (ii) If the tribe's service area includes any area specified in 
paragraph (a)(1)(i) of this section, and that area is also served by 
another program, the tribe may serve children from families who are 
members of or eligible to be members of such tribe and who reside in 
such areas as well as children from families who are not members of the 
tribe, but who reside within the tribe's established service area.
    (2) If a program decides to change the service area after ACF has 
approved its grant application, the program must submit to ACF a new 
service area proposal for approval.
    (b) Community wide strategic planning and needs assessment 
(community assessment). (1) To design a program that meets community 
needs, and builds on strengths and resources, a program must conduct a 
community assessment at least once over the five-year grant period. The 
community assessment must use data that describes community strengths, 
needs, and resources and include, at a minimum:
    (i) The number of eligible infants, toddlers, preschool age 
children, and expectant mothers, including their geographic location, 
race, ethnicity, and languages they speak, including:
    (A) Children experiencing homelessness in collaboration with, to the 
extent possible, McKinney-Vento Local Education Agency Liaisons (42 
U.S.C. 11432 (6)(A));
    (B) Children in foster care; and
    (C) Children with disabilities, including types of disabilities and 
relevant

[[Page 82]]

services and resources provided to these children by community agencies;
    (ii) The education, health, nutrition and social service needs of 
eligible children and their families, including prevalent social or 
economic factors that impact their well-being;
    (iii) Typical work, school, and training schedules of parents with 
eligible children;
    (iv) Other child development, child care centers, and family child 
care programs that serve eligible children, including home visiting, 
publicly funded state and local preschools, and the approximate number 
of eligible children served;
    (v) Resources that are available in the community to address the 
needs of eligible children and their families; and,
    (vi) Strengths of the community.
    (2) A program must annually review and update the community 
assessment to reflect any significant changes including increased 
availability of publicly-funded pre-kindergarten- (including an 
assessment of how the pre-kindergarten available in the community meets 
the needs of the parents and children served by the program, and whether 
it is offered for a full school day), rates of family and child 
homelessness, and significant shifts in community demographics and 
resources.
    (3) A program must consider whether the characteristics of the 
community allow it to include children from diverse economic backgrounds 
that would be supported by other funding sources, including private pay, 
in addition to the program's eligible funded enrollment. A program must 
not enroll children from diverse economic backgrounds if it would result 
in a program serving less than its eligible funded enrollment.



Sec.  1302.12  Determining, verifying, and documenting eligibility.

    (a) Process overview. (1) Program staff must:
    (i) Conduct an in-person interview with each family, unless 
paragraph (a)(2) of this section applies;
    (ii) Verify information as required in paragraphs (h) and (i) of 
this section; and,
    (iii) Create an eligibility determination record for enrolled 
participants according to paragraph (k) of this section.
    (2) Program staff may interview the family over the telephone if an 
in-person interview is not possible or convenient for the family.
    (3) If a program has an alternate method to reasonably determine 
eligibility based on its community assessment, geographic and 
administrative data, or from other reliable data sources, it may 
petition the responsible HHS official to waive requirements in 
paragraphs (a)(1)(i) and (ii) of this section.
    (b)  Age requirements. (1) For Early Head Start, except when the 
child is transitioning to Head Start, a child must be an infant or a 
toddler younger than three years old.
    (2) For Head Start, a child must:
    (i) Be at least three years old or, turn three years old by the date 
used to determine eligibility for public school in the community in 
which the Head Start program is located; and,
    (ii) Be no older than the age required to attend school.
    (3) For Migrant or Seasonal Head Start, a child must be younger than 
compulsory school age by the date used to determine public school 
eligibility for the community in which the program is located.
    (c) Eligibility requirements. (1) A pregnant woman or a child is 
eligible if:
    (i) The family's income is equal to or below the poverty line; or,
    (ii) The family is eligible for or, in the absence of child care, 
would be potentially eligible for public assistance; including TANF 
child-only payments; or,
    (iii) The child is homeless, as defined in part 1305; or,
    (iv) The child is in foster care.
    (2) If the family does not meet a criterion under paragraph (c)(1) 
of this section, a program may enroll a child who would benefit from 
services, provided that these participants only make up to 10 percent of 
a program's enrollment in accordance with paragraph (d) of this section.
    (d) Additional allowances for programs. (1) A program may enroll an 
additional

[[Page 83]]

35 percent of participants whose families do not meet a criterion 
described in paragraph (c) of this section and whose incomes are below 
130 percent of the poverty line, if the program:
    (i) Establishes and implements outreach, and enrollment policies and 
procedures to ensure it is meeting the needs of eligible pregnant women, 
children, and children with disabilities, before serving pregnant women 
or children who do not meet the criteria in paragraph (c) of this 
section; and,
    (ii) Establishes criteria that ensure pregnant women and children 
eligible under the criteria listed in paragraph (c) of this section are 
served first.
    (2) If a program chooses to enroll participants who do not meet a 
criterion in paragraph (c) of this section, and whose family incomes are 
between 100 and 130 percent of the poverty line, it must be able to 
report to the Head Start regional program office:
    (i) How it is meeting the needs of low-income families or families 
potentially eligible for public assistance, homeless children, and 
children in foster care, and include local demographic data on these 
populations;
    (ii) Outreach and enrollment policies and procedures that ensure it 
is meeting the needs of eligible children or pregnant women, before 
serving over-income children or pregnant women;
    (iii) Efforts, including outreach, to be fully enrolled with 
eligible pregnant women or children;
    (iv) Policies, procedures, and selection criteria it uses to serve 
eligible children;
    (v) Its current enrollment and its enrollment for the previous year;
    (vi) The number of pregnant women and children served, disaggregated 
by the eligibility criteria in paragraphs (c) and (d)(1) of this 
section; and,
    (vii) The eligibility criteria category of each child on the 
program's waiting list.
    (e) Additional allowances for Indian tribes. (1) Notwithstanding 
paragraph (c)(2) of this section, a tribal program may fill more than 10 
percent of its enrollment with participants who are not eligible under 
the criteria in paragraph (c) of this section, if:
    (i) The tribal program has served all eligible pregnant women or 
children who wish to be enrolled from Indian and non-Indian families 
living within the approved service area of the tribal agency;
    (ii) The tribe has resources within its grant, without using 
additional funds from HHS intended to expand Early Head Start or Head 
Start services, to enroll pregnant women or children whose family 
incomes exceed low-income guidelines or who are not otherwise eligible; 
and,
    (iii) At least 51 percent of the program's participants meet an 
eligibility criterion under paragraph (c)(1) of this section.
    (2) If another program does not serve the approved service area, the 
program must serve all eligible Indian and non-Indian pregnant women or 
children who wish to enroll before serving over-income pregnant women or 
children.
    (3) A program that meets the conditions of this paragraph (e) must 
annually set criteria that are approved by the policy council and the 
tribal council for selecting over-income pregnant women or children who 
would benefit from program services.
    (4) An Indian tribe or tribes that operates both an Early Head Start 
program and a Head Start program may, at its discretion, at any time 
during the grant period involved, reallocate funds between the Early 
Head Start program and the Head Start program in order to address 
fluctuations in client populations, including pregnant women and 
children from birth to compulsory school age. The reallocation of such 
funds between programs by an Indian tribe or tribes during a year may 
not serve as a basis for any reduction of the base grant for either 
program in succeeding years.
    (f) Migrant or Seasonal eligibility requirements. A child is 
eligible for Migrant or Seasonal Head Start, if the family meets an 
eligibility criterion in paragraphs (c) and (d) of this section; and the 
family's income comes primarily from agricultural work.
    (g) Eligibility requirements for communities with 1,000 or fewer 
individuals. (1) A program may establish its own criteria for 
eligibility provided that it meets the criteria outlined in section 
645(a)(2) of the Act.

[[Page 84]]

    (2) No child residing in such community whose family is eligible 
under criteria described in paragraphs (c) through (f) of this section, 
may be denied an opportunity to participate in the program under the 
eligibility criteria established under this paragraph (g).
    (h) Verifying age. Program staff must verify a child's age according 
to program policies and procedures. A program's policies and procedures 
cannot require families to provide documents that confirm a child's age, 
if doing so creates a barrier for the family to enroll the child.
    (i) Verifying eligibility. (1) To verify eligibility based on 
income, program staff must use tax forms, pay stubs, or other proof of 
income to determine the family income for the relevant time period.
    (i) If the family cannot provide tax forms, pay stubs, or other 
proof of income for the relevant time period, program staff may accept 
written statements from employers, including individuals who are self-
employed, for the relevant time period and use information provided to 
calculate total annual income with appropriate multipliers.
    (ii) If the family reports no income for the relevant time period, a 
program may accept the family's signed declaration to that effect, if 
program staff describes efforts made to verify the family's income, and 
explains how the family's total income was calculated or seeks 
information from third parties about the family's eligibility, if the 
family gives written consent. If a family gives consent to contact third 
parties, program staff must adhere to program safety and privacy 
policies and procedures and ensure the eligibility determination record 
adheres to paragraph (k)(2) of this section.
    (iii) If the family can demonstrate a significant change in income 
for the relevant time period, program staff may consider current income 
circumstances.
    (2) To verify whether a family is eligible for, or in the absence of 
child care, would be potentially eligible for public assistance, the 
program must have documentation from either the state, local, or tribal 
public assistance agency that shows the family either receives public 
assistance or that shows the family is potentially eligible to receive 
public assistance.
    (3) To verify whether a family is homeless, a program may accept a 
written statement from a homeless services provider, school personnel, 
or other service agency attesting that the child is homeless or any 
other documentation that indicates homelessness, including documentation 
from a public or private agency, a declaration, information gathered on 
enrollment or application forms, or notes from an interview with staff 
to establish the child is homeless; or any other document that 
establishes homelessness.
    (i) If a family can provide one of the documents described in this 
paragraph (i)(3), program staff must describe efforts made to verify the 
accuracy of the information provided and state whether the family is 
eligible because they are homeless.
    (ii) If a family cannot provide one of the documents described in 
this paragraph (i)(3) to prove the child is homeless, a program may 
accept the family's signed declaration to that effect, if, in a written 
statement, program staff describe the child's living situation that 
meets the definition of homeless in part 1305 of this chapter.
    (iii) Program staff may seek information from third parties who have 
firsthand knowledge about a family's living situation, if the family 
gives written consent. If the family gives consent to contact third 
parties, program staff must adhere to program privacy policies and 
procedures and ensure the eligibility determination record adheres to 
paragraph (k) of this section.
    (4) To verify whether a child is in foster care, program staff must 
accept either a court order or other legal or government-issued 
document, a written statement from a government child welfare official 
that demonstrates the child is in foster care, or proof of a foster care 
payment.
    (j) Eligibility duration. (1) If a child is determined eligible 
under this section and is participating in a Head Start program, he or 
she will remain eligible through the end of the succeeding program year 
except that the Head Start program may choose not to enroll a

[[Page 85]]

child when there are compelling reasons for the child not to remain in 
Head Start, such as when there is a change in the child's family income 
and there is a child with a greater need for Head Start services.
    (2) Children who are enrolled in a program receiving funds under the 
authority of section 645A of the Act remain eligible while they 
participate in the program.
    (3) If a child moves from an Early Head Start program to a Head 
Start program, program staff must verify the family's eligibility again.
    (4) If a program operates both an Early Head Start and a Head Start 
program, and the parents wish to enroll their child who has been 
enrolled in the program's Early Head Start, the program must ensure, 
whenever possible, the child receives Head Start services until enrolled 
in school, provided the child is eligible.
    (k) Records. (1) A program must keep eligibility determination 
records for each participant and ongoing records of the eligibility 
training for staff required by paragraph (m) of this section. A program 
may keep these records electronically.
    (2) Each eligibility determination record must include:
    (i) Copies of any documents or statements, including declarations, 
that are deemed necessary to verify eligibility under paragraphs (h) and 
(i) of this section;
    (ii) A statement that program staff has made reasonable efforts to 
verify information by:
    (A) Conducting either an in-person, or a telephone interview with 
the family as described under paragraph (a)(1)(i) or (a)(2) of this 
section; and,
    (B) Describing efforts made to verify eligibility, as required under 
paragraphs (h) through (i) of this section; and, collecting documents 
required for third party verification that includes the family's written 
consent to contact each third party, the third parties' names, titles, 
and affiliations, and information from third parties regarding the 
family's eligibility.
    (iii) A statement that identifies whether:
    (A) The family's income is below income guidelines for its size, and 
lists the family's size;
    (B) The family is eligible for or, in the absence of child care, 
potentially eligible for public assistance;
    (C) The child is a homeless child or the child is in foster care;
    (D) The family was determined to be eligible under the criterion in 
paragraph (c)(2) of this section; or,
    (E) The family was determined to be eligible under the criterion in 
paragraph (d)(1) of this section.
    (3) A program must keep eligibility determination records for those 
currently enrolled, as long as they are enrolled, and, for one year 
after they have either stopped receiving services; or are no longer 
enrolled.
    (l) Program policies and procedures on violating eligibility 
determination regulations. A program must establish written policies and 
procedures that describe all actions taken against staff who 
intentionally violate federal and program eligibility determination 
regulations and who enroll pregnant women and children that are not 
eligible to receive Early Head Start or Head Start services.
    (m) Training on eligibility. (1) A program must train all governing 
body, policy council, management, and staff who determine eligibility on 
applicable federal regulations and program policies and procedures. 
Training must, at a minimum:
    (i) Include methods on how to collect complete and accurate 
eligibility information from families and third party sources;
    (ii) Incorporate strategies for treating families with dignity and 
respect and for dealing with possible issues of domestic violence, 
stigma, and privacy; and,
    (iii) Explain program policies and procedures that describe actions 
taken against staff, families, or participants who attempt to provide or 
intentionally provide false information.
    (2) A program must train management and staff members who make 
eligibility determinations within 90 days of hiring new staff.
    (3) A program must train all governing body and policy council 
members within 180 days of the beginning of

[[Page 86]]

the term of a new governing body or policy council.
    (4) A program must develop policies on how often training will be 
provided after the initial training.



Sec.  1302.13  Recruitment of children.

    In order to reach those most in need of services, a program must 
develop and implement a recruitment process designed to actively inform 
all families with eligible children within the recruitment area of the 
availability of program services, and encourage and assist them in 
applying for admission to the program. A program must include specific 
efforts to actively locate and recruit children with disabilities and 
other vulnerable children, including homeless children and children in 
foster care.



Sec.  1302.14  Selection process.

    (a) Selection criteria. (1) A program must annually establish 
selection criteria that weigh the prioritization of selection of 
participants, based on community needs identified in the community needs 
assessment as described in Sec.  1302.11(b), and including family 
income, whether the child is homeless, whether the child is in foster 
care, the child's age, whether the child is eligible for special 
education and related services, or early intervention services, as 
appropriate, as determined under the Individuals with Disabilities 
Education Act (IDEA) (20 U.S.C. 1400 et seq.) and, other relevant family 
or child risk factors.
    (2) If a program serves migrant or seasonal families, it must select 
participants according to criteria in paragraph (a)(1) of this section, 
and give priority to children whose families can demonstrate they have 
relocated frequently within the past two-years to pursue agricultural 
work.
    (3) If a program operates in a service area where Head Start 
eligible children can enroll in high-quality publicly funded pre-
kindergarten for a full school day, the program must prioritize younger 
children as part of the selection criteria in paragraph (a)(1) of this 
section. If this priority would disrupt partnerships with local 
education agencies, then it is not required. An American Indian and 
Alaska Native or Migrant or Seasonal Head Start program must consider 
whether such prioritization is appropriate in their community.
    (4) A program must not deny enrollment based on a disability or 
chronic health condition or its severity.
    (b) Children eligible for services under IDEA. (1) A program must 
ensure at least 10 percent of its total funded enrollment is filled by 
children eligible for services under IDEA, unless the responsible HHS 
official grants a waiver.
    (2) If the requirement in paragraph (b)(1) of this section has been 
met, children eligible for services under IDEA should be prioritized for 
the available slots in accordance with the program's selection criteria 
described in paragraph (a) of this section.
    (c) Waiting lists. A program must develop at the beginning of each 
enrollment year and maintain during the year a waiting list that ranks 
children according to the program's selection criteria.



Sec.  1302.15  Enrollment.

    (a) Funded enrollment. A program must maintain its funded enrollment 
level and fill any vacancy as soon as possible. A program must fill any 
vacancy within 30 days.
    (b) Continuity of enrollment. (1) A program must make efforts to 
maintain enrollment of eligible children for the following year.
    (2) Under exceptional circumstances, a program may maintain a 
child's enrollment in Head Start for a third year, provided that family 
income is verified again. A program may maintain a child's enrollment in 
Early Head Start as described in Sec.  1302.12(j)(2).
    (3) If a program serves homeless children or children in foster 
care, it must make efforts to maintain the child's enrollment regardless 
of whether the family or child moves to a different service area, or 
transition the child to a program in a different service area, as 
required in Sec.  1302.72(a), according to the family's needs.
    (c) Reserved slots. If a program determines from the community 
assessment there are families experiencing homelessness in the area, or 
children in foster care that could benefit from services, the program 
may reserve one or

[[Page 87]]

more enrollment slots for pregnant women and children experiencing 
homelessness and children in foster care, when a vacancy occurs. No more 
than three percent of a program's funded enrollment slots may be 
reserved. If the reserved enrollment slot is not filled within 30 days, 
the enrollment slot becomes vacant and then must be filled in accordance 
with paragraph (a) of this section.
    (d) Other enrollment. Children from diverse economic backgrounds who 
are funded with other sources, including private pay, are not considered 
part of a program's eligible funded enrollment.
    (e) State immunization enrollment requirements. A program must 
comply with state immunization enrollment and attendance requirements, 
with the exception of homeless children as described in Sec.  
1302.16(c)(1).
    (f) Voluntary parent participation. Parent participation in any 
program activity is voluntary, including consent for data sharing, and 
is not required as a condition of the child's enrollment.



Sec.  1302.16  Attendance.

    (a) Promoting regular attendance. A program must track attendance 
for each child.
    (1) A program must implement a process to ensure children are safe 
when they do not arrive at school. If a child is unexpectedly absent and 
a parent has not contacted the program within one hour of program start 
time, the program must attempt to contact the parent to ensure the 
child's well-being.
    (2) A program must implement strategies to promote attendance. At a 
minimum, a program must:
    (i) Provide information about the benefits of regular attendance;
    (ii) Support families to promote the child's regular attendance;
    (iii) Conduct a home visit or make other direct contact with a 
child's parents if a child has multiple unexplained absences (such as 
two consecutive unexplained absences); and,
    (iv) Within the first 60 days of program operation, and on an 
ongoing basis thereafter, use individual child attendance data to 
identify children with patterns of absence that put them at risk of 
missing ten percent of program days per year and develop appropriate 
strategies to improve individual attendance among identified children, 
such as direct contact with parents or intensive case management, as 
necessary.
    (3) If a child ceases to attend, the program must make appropriate 
efforts to reengage the family to resume attendance, including as 
described in paragraph (a)(2) of this section. If the child's attendance 
does not resume, then the program must consider that slot vacant. This 
action is not considered expulsion as described in Sec.  1302.17.
    (b) Managing systematic program attendance issues. If a program's 
monthly average daily attendance rate falls below 85 percent, the 
program must analyze the causes of absenteeism to identify any 
systematic issues that contribute to the program's absentee rate. The 
program must use this data to make necessary changes in a timely manner 
as part of ongoing oversight and correction as described in Sec.  
1302.102(b) and inform its continuous improvement efforts as described 
in Sec.  1302.102(c).
    (c) Supporting attendance of homeless children. (1) If a program 
determines a child is eligible under Sec.  1302.12(c)(1)(iii), it must 
allow the child to attend for up to 90 days or as long as allowed under 
state licensing requirements, without immunization and other records, to 
give the family reasonable time to present these documents. A program 
must work with families to get children immunized as soon as possible in 
order to comply with state licensing requirements.
    (2) If a child experiencing homelessness is unable to attend classes 
regularly because the family does not have transportation to and from 
the program facility, the program must utilize community resources, 
where possible, to provide transportation for the child.



Sec.  1302.17  Suspension and expulsion.

    (a) Limitations on suspension. (1) A program must prohibit or 
severely limit the use of suspension due to a child's behavior. Such 
suspensions may only be temporary in nature.
    (2) A temporary suspension must be used only as a last resort in 
extraordinary circumstances where there is a

[[Page 88]]

serious safety threat that cannot be reduced or eliminated by the 
provision of reasonable modifications.
    (3) Before a program determines whether a temporary suspension is 
necessary, a program must engage with a mental health consultant, 
collaborate with the parents, and utilize appropriate community 
resources--such as behavior coaches, psychologists, other appropriate 
specialists, or other resources--as needed, to determine no other 
reasonable option is appropriate.
    (4) If a temporary suspension is deemed necessary, a program must 
help the child return to full participation in all program activities as 
quickly as possible while ensuring child safety by:
    (i) Continuing to engage with the parents and a mental health 
consultant, and continuing to utilize appropriate community resources;
    (ii) Developing a written plan to document the action and supports 
needed;
    (iii) Providing services that include home visits; and,
    (iv) Determining whether a referral to a local agency responsible 
for implementing IDEA is appropriate.
    (b) Prohibition on expulsion. (1) A program cannot expel or unenroll 
a child from Head Start because of a child's behavior.
    (2) When a child exhibits persistent and serious challenging 
behaviors, a program must explore all possible steps and document all 
steps taken to address such problems, and facilitate the child's safe 
participation in the program. Such steps must include, at a minimum, 
engaging a mental health consultant, considering the appropriateness of 
providing appropriate services and supports under section 504 of the 
Rehabilitation Act to ensure that the child who satisfies the definition 
of disability in 29 U.S.C. 705(9)(b) of the Rehabilitation Act is not 
excluded from the program on the basis of disability, and consulting 
with the parents and the child's teacher, and:
    (i) If the child has an individualized family service plan (IFSP) or 
individualized education program (IEP), the program must consult with 
the agency responsible for the IFSP or IEP to ensure the child receives 
the needed support services; or,
    (ii) If the child does not have an IFSP or IEP, the program must 
collaborate, with parental consent, with the local agency responsible 
for implementing IDEA to determine the child's eligibility for services.
    (3) If, after a program has explored all possible steps and 
documented all steps taken as described in paragraph (b)(2) of this 
section, a program, in consultation with the parents, the child's 
teacher, the agency responsible for implementing IDEA (if applicable), 
and the mental health consultant, determines that the child's continued 
enrollment presents a continued serious safety threat to the child or 
other enrolled children and determines the program is not the most 
appropriate placement for the child, the program must work with such 
entities to directly facilitate the transition of the child to a more 
appropriate placement.



Sec.  1302.18  Fees.

    (a) Policy on fees. A program must not charge eligible families a 
fee to participate in Head Start, including special events such as field 
trips, and cannot in any way condition an eligible child's enrollment or 
participation in the program upon the payment of a fee.
    (b) Allowable fees. (1) A program must only accept a fee from 
families of enrolled children for services that are in addition to 
services funded by Head Start, such as child care before or after funded 
Head Start hours. A program may not condition a Head Start child's 
enrollment on the ability to pay a fee for additional hours.
    (2) In order to support programs serving children from diverse 
economic backgrounds or using multiple funding sources, a program may 
charge fees to private pay families and other non-Head Start enrolled 
families to the extent allowed by any other applicable federal, state or 
local funding sources.



                       Subpart B_Program Structure



Sec.  1302.20  Determining program structure.

    (a) Choose a program option. (1) A program must choose to operate 
one or more of the following program options: Center-based, home-based, 
family child care, or an approved locally-designed

[[Page 89]]

variation as described in Sec.  1302.24. The program option(s) chosen 
must meet the needs of children and families based on the community 
assessment described in Sec.  1302.11(b). A Head Start program serving 
preschool-aged children may not provide only the option described in 
Sec.  1302.22(a) and (c)(2).
    (2) To choose a program option and develop a program calendar, a 
program must consider in conjunction with the annual review of the 
community assessment described in Sec.  1302.11(b)(2), whether it would 
better meet child and family needs through conversion of existing slots 
to full school day or full working day slots, extending the program 
year, conversion of existing Head Start slots to Early Head Start slots 
as described in paragraph (c) of this section, and ways to promote 
continuity of care and services. A program must work to identify 
alternate sources to support full working day services. If no additional 
funding is available, program resources may be used.
    (b) Comprehensive services. All program options must deliver the 
full range of services, as described in subparts C, D, E, F, and G of 
this part, except that Sec. Sec.  1302.30 through 1302.32 and Sec.  
1302.34 do not apply to home-based options.
    (c) Conversion. (1) Consistent with section 645(a)(5) of the Head 
Start Act, grantees may request to convert Head Start slots to Early 
Head Start slots through the re-funding application process or as a 
separate grant amendment.
    (2) Any grantee proposing a conversion of Head Start services to 
Early Head Start services must obtain policy council and governing body 
approval and submit the request to their regional office.
    (3) With the exception of American Indian and Alaska Native grantees 
as described in paragraph (c)(4) of this section, the request to the 
regional office must include:
    (i) A grant application budget and a budget narrative that clearly 
identifies the funding amount for the Head Start and Early Head Start 
programs before and after the proposed conversion;
    (ii) The results of the community assessment demonstrating how the 
proposed use of funds would best meet the needs of the community, 
including a description of how the needs of eligible Head Start children 
will be met in the community when the conversion takes places;
    (iii) A revised program schedule that describes the program 
option(s) and the number of funded enrollment slots for Head Start and 
Early Head Start programs before and after the proposed conversion;
    (iv) A description of how the needs of pregnant women, infants, and 
toddlers will be addressed;
    (v) A discussion of the agency's capacity to carry out an effective 
Early Head Start program in accordance with the requirements of section 
645A(b) of the Head Start Act and all applicable regulations;
    (vi) Assurances that the agency will participate in training and 
technical assistance activities required of all Early Head Start 
grantees;
    (vii) A discussion of the qualifications and competencies of the 
child development staff proposed for the Early Head Start program, as 
well as a description of the facilities and program infrastructure that 
will be used to support the new or expanded Early Head Start program;
    (viii) A discussion of any one-time funding necessary to implement 
the proposed conversion and how the agency intends to secure such 
funding; and,
    (ix) The proposed timetable for implementing this conversion, 
including updating school readiness goals as described in subpart J of 
this part.
    (4) Consistent with section 645(d)(3) of the Act, any American 
Indian and Alaska Native grantee that operates both an Early Head Start 
program and a Head Start program may reallocate funds between the 
programs at its discretion and at any time during the grant period 
involved, in order to address fluctuations in client populations. An 
American Indian and Alaska Native program that exercises this discretion 
must notify the regional office.
    (d) Source of funding. A program may consider hours of service that 
meet the Head Start Program Performance Standards, regardless of the 
source of funding, as hours of planned class operations for the purposes 
of meeting the

[[Page 90]]

Head Start and Early Head Start service duration requirements in this 
subpart.



Sec.  1302.21  Center-based option.

    (a) Setting. The center-based option delivers the full range of 
services, consistent with Sec.  1302.20(b). Education and child 
development services are delivered primarily in classroom settings.
    (b) Ratios and group size. (1) Staff-child ratios and group size 
maximums must be determined by the age of the majority of children and 
the needs of children present. A program must determine the age of the 
majority of children in a class at the start of the year and may adjust 
this determination during the program year, if necessary. Where state or 
local licensing requirements are more stringent than the teacher-child 
ratios and group size specifications in this section, a program must 
meet the stricter requirements. A program must maintain appropriate 
ratios during all hours of program operation, except:
    (i) For brief absences of a teaching staff member for no more than 
five minutes; and,
    (ii) During nap time, one teaching staff member may be replaced by 
one staff member or trained volunteer who does not meet the teaching 
qualifications required for the age.
    (2) An Early Head Start or Migrant or Seasonal Head Start class that 
serves children under 36 months old must have two teachers with no more 
than eight children, or three teachers with no more than nine children. 
Each teacher must be assigned consistent, primary responsibility for no 
more than four children to promote continuity of care for individual 
children. A program must minimize teacher changes throughout a child's 
enrollment, whenever possible, and consider mixed age group classes to 
support continuity of care.
    (3) A class that serves a majority of children who are three years 
old must have no more than 17 children with a teacher and teaching 
assistant or two teachers. A double session class that serves a majority 
of children who are three years old must have no more than 15 children 
with a teacher and teaching assistant or two teachers.
    (4) A class that serves a majority of children who are four and five 
years old must have no more than 20 children with a teacher and a 
teaching assistant or two teachers. A double session class that serves a 
majority of children who are four and five years old must have no more 
than 17 children with a teacher and a teaching assistant or two 
teachers.

                               Table to Sec.   1302.21(b)--Center-Based Group Size
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
4 and 5 year olds......................................  No more than 20 children enrolled in any class.
                                                         No more than 17 children enrolled in any double session
                                                          class.
3 year olds............................................  No more than 17 children enrolled in any class.
                                                         No more than 15 children enrolled in any double session
                                                          class.
Under 3 years old......................................  No more than 8 or 9 children enrolled in any class,
                                                          depending on the number of teachers.
----------------------------------------------------------------------------------------------------------------

    (c) Service duration--(1) Early Head Start. (i) By August 1, 2018, a 
program must provide 1,380 annual hours of planned class operations for 
all enrolled children.
    (ii) A program that is designed to meet the needs of young parents 
enrolled in school settings may meet the service duration requirements 
in paragraph (c)(1)(i) of this section if it operates a center-based 
program schedule during the school year aligned with its local education 
agency requirements and provides regular home-based services during the 
summer break.
    (2) Head Start. (i) Until a program is operating all of its Head 
Start center-based funded enrollment at the standard described in 
paragraph (c)(2)(iv) or

[[Page 91]]

(v) of this section, a program must provide, at a minimum, at least 160 
days per year of planned class operations if it operates for five days 
per week, or at least 128 days per year if it operates four days per 
week. Classes must operate for a minimum of 3.5 hours per day.
    (ii) Until a program is operating all of its Head Start center-based 
funded enrollment at the standard described in paragraph (c)(2)(iv) or 
(v) of this section, if a program operates a double session variation, 
it must provide classes for four days per week for a minimum of 128 days 
per year and 3.5 hours per day. Each double session class staff member 
must be provided adequate break time during the course of the day. In 
addition, teachers, aides, and volunteers must have appropriate time to 
prepare for each session together, to set up the classroom environment, 
and to give individual attention to children entering and leaving the 
center.
    (iii) By August 1, 2019, a program must provide 1,020 annual hours 
of planned class operations over the course of at least eight months per 
year for at least 50 percent of its Head Start center-based funded 
enrollment.
    (iv) By August 1, 2021, a program must provide 1,020 annual hours of 
planned class operations over the course of at least eight months per 
year for all of its Head Start center-based funded enrollment.
    (v) A Head Start program providing fewer than 1,020 annual hours of 
planned class operations or fewer than eight months of service is 
considered to meet the requirements described in paragraphs (c)(2)(iii) 
and (iv) of this section if its program schedule aligns with the annual 
hours required by its local education agency for grade one and such 
alignment is necessary to support partnerships for service delivery.
    (3) Secretarial determination. (i) On or before February 1, 2018, 
the Secretary may lower the required percentage described in paragraph 
(c)(2)(iii) of this section, based on an assessment of the availability 
of sufficient funding to mitigate a substantial reduction in funded 
enrollment; and,
    (ii) On or before February 1, 2020, the Secretary may lower the 
required percentage described in paragraph (c)(2)(iv) of this section, 
based on an assessment of the availability of sufficient funding to 
mitigate a substantial reduction in funded enrollment.
    (4) Extension. If an extension is necessary to ensure children 
enrolled in the program on November 7, 2016 are not displaced from the 
Early Head Start or Head Start program, a program may request a one-year 
extension from the responsible HHS official of the requirements outlined 
in paragraphs (c)(1) and (c)(2)(iii) of this section.
    (5) Exemption for Migrant or Seasonal Head Start programs. A Migrant 
or Seasonal program is not subject to the requirements described in 
Sec.  1302.21(c)(1) or (2), but must make every effort to provide as 
many days and hours of service as possible to each child and family.
    (6) Calendar planning. A program must:
    (i) Plan its year using a reasonable estimate of the number of days 
during a year that classes may be closed due to problems such as 
inclement weather; and,
    (ii) Make every effort to schedule makeup days using existing 
resources if hours of planned class operations fall below the number 
required per year.
    (d) Licensing and square footage requirements. (1) The facilities 
used by a program must meet state, tribal, or local licensing 
requirements, even if exempted by the licensing entity. When state, 
tribal, or local requirements vary from Head Start requirements, the 
most stringent provision takes precedence.
    (2) A center-based program must have at least 35 square feet of 
usable indoor space per child available for the care and use of children 
(exclusive of bathrooms, halls, kitchen, staff rooms, and storage 
places) and at least 75 square feet of usable outdoor play space per 
child.
    (3) A program that operates two or more groups within an area must 
ensure clearly defined, safe divisions to separate groups. A program 
must ensure such spaces are learning environments that facilitate the 
implementation of the requirements in subpart C of this part. The 
divisions must limit

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noise transfer from one group to another to prevent disruption of an 
effective learning environment.



Sec.  1302.22  Home-based option.

    (a) Setting. The home-based option delivers the full range of 
services, consistent with Sec.  1302.20(b), through visits with the 
child's parents, primarily in the child's home and through group 
socialization opportunities in a Head Start classroom, community 
facility, home, or on field trips. For Early Head Start programs, the 
home-based option may be used to deliver services to some or all of a 
program's enrolled children. For Head Start programs, the home-based 
option may only be used to deliver services to a portion of a program's 
enrolled children.
    (b) Caseload. A program that implements a home-based option must 
maintain an average caseload of 10 to 12 families per home visitor with 
a maximum of 12 families for any individual home visitor.
    (c) Service duration--(1) Early Head Start. By August 1, 2017, an 
Early Head Start home-based program must:
    (i) Provide one home visit per week per family that lasts at least 
an hour and a half and provide a minimum of 46 visits per year; and,
    (ii) Provide, at a minimum, 22 group socialization activities 
distributed over the course of the program year.
    (2) Head Start. A Head Start home-based program must:
    (i) Provide one home visit per week per family that lasts at least 
an hour and a half and provide a minimum of 32 visits per year; and,
    (ii) Provide, at a minimum, 16 group socialization activities 
distributed over the course of the program year.
    (3) Meeting minimum requirements. A program that implements a home-
based option must:
    (i) Make up planned home visits or scheduled group socialization 
activities that were canceled by the program, and to the extent possible 
attempt to make up planned home visits canceled by the family, when this 
is necessary to meet the minimums described in paragraphs (c)(1) and (2) 
of this section; and,
    (ii) Not replace home visits or scheduled group socialization 
activities for medical or social service appointments for the purposes 
of meeting the minimum requirements described in paragraphs (c)(1) and 
(2) of this section.
    (d) Safety requirements. The areas for learning, playing, sleeping, 
toileting, preparing food, and eating in facilities used for group 
socializations in the home-based option must meet the safety standards 
described in Sec.  1302.47(1)(ii) through (viii).



Sec.  1302.23  Family child care option.

    (a) Setting. The family child care program option delivers the full 
range of services, consistent with Sec.  1302.20(b). Education and child 
development services are primarily delivered by a family child care 
provider in their home or other family-like setting. A program may 
choose to offer the family child care option if:
    (1) The program has a legally binding agreement with one or more 
family child care provider(s) that clearly defines the roles, rights, 
and responsibilities of each party, or the program is the employer of 
the family child care provider, and ensures children and families 
enrolled in this option receive the full range of services described in 
subparts C, D, E, F, and G of this part; and,
    (2) The program ensures family child care homes are available that 
can accommodate children and families with disabilities.
    (b) Ratios and group size. (1) A program that operates the family 
child care option where Head Start children are enrolled must ensure 
group size does not exceed the limits specified in this section. If the 
family child care provider's own children under the age of six are 
present, they must be included in the group size.
    (2) When there is one family child care provider, the maximum group 
size is six children and no more than two of the six may be under 24 
months of age. When there is a provider and an assistant, the maximum 
group size is twelve children with no more than four of the twelve 
children under 24 months of age.
    (3) One family child care provider may care for up to four children 
younger than 36 months of age with a maximum group size of four 
children, and no more than two of the four children may be under 18 
months of age.

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    (4) A program must maintain appropriate ratios during all hours of 
program operation. A program must ensure providers have systems to 
ensure the safety of any child not within view for any period. A program 
must make substitute staff and assistant providers available with the 
necessary training and experience to ensure quality services to children 
are not interrupted.
    (c) Service duration. Whether family child care option services are 
provided directly or via contractual arrangement, a program must ensure 
family child care providers operate sufficient hours to meet the child 
care needs of families and not less than 1,380 hours per year.
    (d) Licensing requirements. A family child-care provider must be 
licensed by the state, tribal, or local entity to provide services in 
their home or family-like setting. When state, tribal, or local 
requirements vary from Head Start requirements, the most stringent 
provision applies.
    (e) Child development specialist. A program that offers the family 
child care option must provide a child development specialist to support 
family child care providers and ensure the provision of quality services 
at each family child care home. Child development specialists must:
    (1) Conduct regular visits to each home, some of which are 
unannounced, not less than once every two weeks;
    (2) Periodically verify compliance with either contract requirements 
or agency policy;
    (3) Facilitate ongoing communication between program staff, family 
child care providers, and enrolled families; and,
    (4) Provide recommendations for technical assistance and support the 
family child care provider in developing relationships with other child 
care professionals.



Sec.  1302.24  Locally-designed program option variations.

    (a) Waiver option. Programs may request to operate a locally-
designed program option, including a combination of program options, to 
better meet the unique needs of their communities or to demonstrate or 
test alternative approaches for providing program services. In order to 
operate a locally-designed program option, programs must seek a waiver 
as described in this section and must deliver the full range of 
services, consistent with Sec.  1302.20(b), and demonstrate how any 
change to their program design is consistent with achieving program 
goals in subpart J of this part.
    (b) Request for approval. A program's request to operate a locally-
designed variation may be approved by the responsible HHS official 
through the end of a program's current grant or, if the request is 
submitted through a grant application for an upcoming project period, 
for the project period of the new award. Such approval may be revoked 
based on progress toward program goals as described in Sec.  1302.102 
and monitoring as described in Sec.  1304.2.
    (c) Waiver requirements. (1) The responsible HHS official may waive 
one or more of the requirements contained in Sec.  1302.21(b), 
(c)(1)(i), and (c)(2)(iii) and (iv); Sec.  1302.22(a) through (c); and 
Sec.  1302.23(b) and (c), but may not waive ratios or group size for 
children under 24 months. Center-based locally-designed options must 
meet the minimums described in section 640(k)(1) of the Act for center-
based programs.
    (2) If the responsible HHS official determines a waiver of group 
size for center-based services would better meet the needs of children 
and families in a community, the group size may not exceed the limits 
below:
    (i) A group that serves children 24 to 36 months of age must have no 
more than ten children; and,
    (ii) A group that serves predominantly three-year-old children must 
have no more than twenty children; and,
    (iii) A group that serves predominantly four-year-old children must 
have no more than twenty-four children.
    (3) If the responsible HHS official approves a waiver to allow a 
program to operate below the minimums described in Sec.  
1302.21(c)(2)(iii) or (iv), a program must meet the requirements 
described in Sec.  1302.21(c)(2)(i), or in the case of a double session 
variation, a program must meet the requirements described in Sec.  
1302.21(c)(2)(ii).

[[Page 94]]

    (4) In order to receive a waiver under this section, a program must 
provide supporting evidence that demonstrates the locally-designed 
variation effectively supports appropriate development and progress in 
children's early learning outcomes.
    (5) In order to receive a waiver of service duration, a program must 
meet the requirement in paragraph (c)(4) of this section, provide 
supporting evidence that it better meets the needs of parents than the 
applicable service duration minimums described in Sec.  1302.21(c)(1) 
and (c)(2)(iii) and (iv), Sec.  1302.22(c), or Sec.  1302.23(c), and 
assess the effectiveness of the variation in supporting appropriate 
development and progress in children's early learning outcomes.
    (d) Transition from previously approved program options. If, before 
November 7, 2016, a program was approved to operate a program option 
that is no longer allowable under Sec. Sec.  1302.21 through 1302.23, a 
program may continue to operate that model until July 31, 2018.



       Subpart C_Education and Child Development Program Services



Sec.  1302.30  Purpose.

    All programs must provide high-quality early education and child 
development services, including for children with disabilities, that 
promote children's cognitive, social, and emotional growth for later 
success in school. A center-based or family child care program must 
embed responsive and effective teacher-child interactions. A home-based 
program must promote secure parent-child relationships and help parents 
provide high-quality early learning experiences. All programs must 
implement a research-based curriculum, and screening and assessment 
procedures that support individualization and growth in the areas of 
development described in the Head Start Early Learning Outcomes 
Framework: Ages Birth to Five and support family engagement in 
children's learning and development. A program must deliver 
developmentally, culturally, and linguistically appropriate learning 
experiences in language, literacy, mathematics, social and emotional 
functioning, approaches to learning, science, physical skills, and 
creative arts. To deliver such high-quality early education and child 
development services, a center-based or family child care program must 
implement, at a minimum, the elements contained in Sec. Sec.  1302.31 
through 1302.34, and a home-based program must implement, at a minimum, 
the elements in Sec. Sec.  1302.33 and 1302.35.



Sec.  1302.31  Teaching and the learning environment.

    (a) Teaching and the learning environment. A center-based and family 
child care program must ensure teachers and other relevant staff provide 
responsive care, effective teaching, and an organized learning 
environment that promotes healthy development and children's skill 
growth aligned with the Head Start Early Learning Outcomes Framework: 
Ages Birth to Five, including for children with disabilities. A program 
must also support implementation of such environment with integration of 
regular and ongoing supervision and a system of individualized and 
ongoing professional development, as appropriate. This includes, at a 
minimum, the practices described in paragraphs (b) through (e) of this 
section.
    (b) Effective teaching practices. (1) Teaching practices must:
    (i) Emphasize nurturing and responsive practices, interactions, and 
environments that foster trust and emotional security; are communication 
and language rich; promote critical thinking and problem-solving; 
social, emotional, behavioral, and language development; provide 
supportive feedback for learning; motivate continued effort; and support 
all children's engagement in learning experiences and activities;
    (ii) Focus on promoting growth in the developmental progressions 
described in the Head Start Early Learning Outcomes Framework: Ages 
Birth to Five by aligning with and using the Framework and the curricula 
as described in Sec.  1302.32 to direct planning of organized 
activities, schedules, lesson plans, and the implementation of high-
quality early learning experiences that are responsive to and build upon 
each child's individual pattern of development and learning;

[[Page 95]]

    (iii) Integrate child assessment data in individual and group 
planning; and,
    (iv) Include developmentally appropriate learning experiences in 
language, literacy, social and emotional development, math, science, 
social studies, creative arts, and physical development that are focused 
toward achieving progress outlined in the Head Start Early Learning 
Outcomes Framework: Ages Birth to Five.
    (2) For dual language learners, a program must recognize 
bilingualism and biliteracy as strengths and implement research-based 
teaching practices that support their development. These practices must:
    (i) For an infant or toddler dual language learner, include teaching 
practices that focus on the development of the home language, when there 
is a teacher with appropriate language competency, and experiences that 
expose the child to English;
    (ii) For a preschool age dual language learner, include teaching 
practices that focus on both English language acquisition and the 
continued development of the home language; or,
    (iii) If staff do not speak the home language of all children in the 
learning environment, include steps to support the development of the 
home language for dual language learners such as having culturally and 
linguistically appropriate materials available and other evidence-based 
strategies. Programs must work to identify volunteers who speak 
children's home language/s who could be trained to work in the classroom 
to support children's continued development of the home language.
    (c) Learning environment. A program must ensure teachers implement 
well-organized learning environments with developmentally appropriate 
schedules, lesson plans, and indoor and outdoor learning experiences 
that provide adequate opportunities for choice, play, exploration, and 
experimentation among a variety of learning, sensory, and motor 
experiences and:
    (1) For infants and toddlers, promote relational learning and 
include individualized and small group activities that integrate 
appropriate daily routines into a flexible schedule of learning 
experiences; and,
    (2) For preschool age children, include teacher-directed and child-
initiated activities, active and quiet learning activities, and 
opportunities for individual, small group, and large group learning 
activities.
    (d) Materials and space for learning. To support implementation of 
the curriculum and the requirements described in paragraphs (a), (b), 
(c), and (e) of this section a program must provide age-appropriate 
equipment, materials, supplies and physical space for indoor and outdoor 
learning environments, including functional space. The equipment, 
materials and supplies must include any necessary accommodations and the 
space must be accessible to children with disabilities. Programs must 
change materials intentionally and periodically to support children's 
interests, development, and learning.
    (e) Promoting learning through approaches to rest, meals, routines, 
and physical activity. (1) A program must implement an intentional, age 
appropriate approach to accommodate children's need to nap or rest, and 
that, for preschool age children in a program that operates for 6 hours 
or longer per day provides a regular time every day at which preschool 
age children are encouraged but not forced to rest or nap. A program 
must provide alternative quiet learning activities for children who do 
not need or want to rest or nap.
    (2) A program must implement snack and meal times in ways that 
support development and learning. For bottle-fed infants, this approach 
must include holding infants during feeding to support socialization. 
Snack and meal times must be structured and used as learning 
opportunities that support teaching staff-child interactions and foster 
communication and conversations that contribute to a child's learning, 
development, and socialization. Programs are encouraged to meet this 
requirement with family style meals when developmentally appropriate. A 
program must also provide sufficient time for children to eat, not use 
food as reward or punishment, and not force children to finish their 
food.

[[Page 96]]

    (3) A program must approach routines, such as hand washing and 
diapering, and transitions between activities, as opportunities for 
strengthening development, learning, and skill growth.
    (4) A program must recognize physical activity as important to 
learning and integrate intentional movement and physical activity into 
curricular activities and daily routines in ways that support health and 
learning. A program must not use physical activity as reward or 
punishment.



Sec.  1302.32  Curricula.

    (a) Curricula. (1) Center-based and family child care programs must 
implement developmentally appropriate research-based early childhood 
curricula, including additional curricular enhancements, as appropriate 
that:
    (i) Are based on scientifically valid research and have standardized 
training procedures and curriculum materials to support implementation;
    (ii) Are aligned with the Head Start Early Learning Outcomes 
Framework: Ages Birth to Five and, as appropriate, state early learning 
and development standards; and are sufficiently content-rich to promote 
measurable progress toward development and learning outlined in the 
Framework; and,
    (iii) Have an organized developmental scope and sequence that 
include plans and materials for learning experiences based on 
developmental progressions and how children learn.
    (2) A program must support staff to effectively implement curricula 
and at a minimum monitor curriculum implementation and fidelity, and 
provide support, feedback, and supervision for continuous improvement of 
its implementation through the system of training and professional 
development.
    (b) Adaptation. A program that chooses to make significant 
adaptations to a curriculum or a curriculum enhancement described in 
paragraph (a)(1) of this section to better meet the needs of one or more 
specific populations must use an external early childhood education 
curriculum or content area expert to develop such significant 
adaptations. A program must assess whether the adaptation adequately 
facilitates progress toward meeting school readiness goals, consistent 
with the process described in Sec.  1302.102(b) and (c). Programs are 
encouraged to partner with outside evaluators in assessing such 
adaptations.



Sec.  1302.33  Child screenings and assessments.

    (a) Screening. (1) In collaboration with each child's parent and 
with parental consent, a program must complete or obtain a current 
developmental screening to identify concerns regarding a child's 
developmental, behavioral, motor, language, social, cognitive, and 
emotional skills within 45 calendar days of when the child first attends 
the program or, for the home-based program option, receives a home 
visit. A program that operates for 90 days or less must complete or 
obtain a current developmental screening within 30 calendar days of when 
the child first attends the program.
    (2) A program must use one or more research-based developmental 
standardized screening tools to complete the screening. A program must 
use as part of the screening additional information from family members, 
teachers, and relevant staff familiar with the child's typical behavior.
    (3) If warranted through screening and additional relevant 
information and with direct guidance from a mental health or child 
development professional a program must, with the parent's consent, 
promptly and appropriately address any needs identified through:
    (i) Referral to the local agency responsible for implementing IDEA 
for a formal evaluation to assess the child's eligibility for services 
under IDEA as soon as possible, and not to exceed timelines required 
under IDEA; and,
    (ii) Partnership with the child's parents and the relevant local 
agency to support families through the formal evaluation process.
    (4) If a child is determined to be eligible for services under IDEA, 
the program must partner with parents and the local agency responsible 
for implementing IDEA, as appropriate, and deliver the services in 
subpart F of this part.
    (5) If, after the formal evaluation described in paragraph (a)(3)(i) 
of this

[[Page 97]]

section, the local agency responsible for implementing IDEA determines 
the child is not eligible for early intervention or special education 
and related services under IDEA, the program must:
    (i) Seek guidance from a mental health or child development 
professional to determine if the formal evaluation shows the child has a 
significant delay in one or more areas of development that is likely to 
interfere with the child's development and school readiness; and,
    (ii) If the child has a significant delay, partner with parents to 
help the family access services and supports to help address the child's 
identified needs.
    (A) Such additional services and supports may be available through a 
child's health insurance or it may be appropriate for the program to 
provide needed services and supports under section 504 of the 
Rehabilitation Act if the child satisfies the definition of disability 
in 29 U.S.C. 705(9)(b) of the Rehabilitation Act, to ensure that the 
child who satisfies the definition of disability in 29 U.S.C. 705(9)(b) 
of the Rehabilitation Act is not excluded from the program on the basis 
of disability.
    (B) A program may use program funds for such services and supports 
when no other sources of funding are available.
    (b) Assessment for individualization. (1) A program must conduct 
standardized and structured assessments, which may be observation-based 
or direct, for each child that provide ongoing information to evaluate 
the child's developmental level and progress in outcomes aligned to the 
goals described in the Head Start Early Learning Child Outcomes 
Framework: Ages Birth to Five. Such assessments must result in usable 
information for teachers, home visitors, and parents and be conducted 
with sufficient frequency to allow for individualization within the 
program year.
    (2) A program must regularly use information from paragraph (b)(1) 
of this section along with informal teacher observations and additional 
information from family and staff, as relevant, to determine a child's 
strengths and needs, inform and adjust strategies to better support 
individualized learning and improve teaching practices in center-based 
and family child care settings, and improve home visit strategies in 
home-based models.
    (3) If warranted from the information gathered from paragraphs 
(b)(1) and (2) of this section and with direct guidance from a mental 
health or child development professional and a parent's consent, a 
program must refer the child to the local agency responsible for 
implementing IDEA for a formal evaluation to assess a child's 
eligibility for services under IDEA.
    (c) Characteristics of screenings and assessments. (1) Screenings 
and assessments must be valid and reliable for the population and 
purpose for which they will be used, including by being conducted by 
qualified and trained personnel, and being age, developmentally, 
culturally and linguistically appropriate, and appropriate for children 
with disabilities, as needed.
    (2) If a program serves a child who speaks a language other than 
English, a program must use qualified bilingual staff, contractor, or 
consultant to:
    (i) Assess language skills in English and in the child's home 
language, to assess both the child's progress in the home language and 
in English language acquisition;
    (ii) Conduct screenings and assessments for domains other than 
language skills in the language or languages that best capture the 
child's development and skills in the specific domain; and,
    (iii) Ensure those conducting the screening or assessment know and 
understand the child's language and culture and have sufficient skill 
level in the child's home language to accurately administer the 
screening or assessment and to record and understand the child's 
responses, interactions, and communications.
    (3) If a program serves a child who speaks a language other than 
English and qualified bilingual staff, contractors, or consultants are 
not able to conduct screenings and assessments, a program must use an 
interpreter in conjunction with a qualified staff person to conduct 
screenings and assessments as described in paragraphs (c)(2)(i) through 
(iii) of this section.

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    (4) If a program serves a child who speaks a language other than 
English and can demonstrate that there is not a qualified bilingual 
staff person or interpreter, then screenings and assessments may be 
conducted in English. In such a case, a program must also gather and use 
other information, including structured observations over time and 
information gathered in a child's home language from the family, for use 
in evaluating the child's development and progress.
    (d) Prohibitions on use of screening and assessment data. The use of 
screening and assessment items and data on any screening or assessment 
authorized under this subchapter by any agent of the federal government 
is prohibited for the purposes of ranking, comparing, or otherwise 
evaluating individual children for purposes other than research, 
training, or technical assistance, and is prohibited for the purposes of 
providing rewards or sanctions for individual children or staff. A 
program must not use screening or assessments to exclude children from 
enrollment or participation.



Sec.  1302.34  Parent and family engagement in education 
and child development services.

    (a) Purpose. Center-based and family child care programs must 
structure education and child development services to recognize parents' 
roles as children's lifelong educators, and to encourage parents to 
engage in their child's education.
    (b) Engaging parents and family members. A program must offer 
opportunities for parents and family members to be involved in the 
program's education services and implement policies to ensure:
    (1) The program's settings are open to parents during all program 
hours;
    (2) Teachers regularly communicate with parents to ensure they are 
well-informed about their child's routines, activities, and behavior;
    (3) Teachers hold parent conferences, as needed, but no less than 
two times per program year, to enhance the knowledge and understanding 
of both staff and parents of the child's education and developmental 
progress and activities in the program;
    (4) Parents have the opportunity to learn about and to provide 
feedback on selected curricula and instructional materials used in the 
program;
    (5) Parents and family members have opportunities to volunteer in 
the class and during group activities;
    (6) Teachers inform parents, about the purposes of and the results 
from screenings and assessments and discuss their child's progress;
    (7) Teachers, except those described in paragraph (b)(8) of this 
section, conduct at least two home visits per program year for each 
family, including one before the program year begins, if feasible, to 
engage the parents in the child's learning and development, except that 
such visits may take place at a program site or another safe location 
that affords privacy at the parent's request, or if a visit to the home 
presents significant safety hazards for staff; and,
    (8) Teachers that serve migrant or seasonal families make every 
effort to conduct home visits to engage the family in the child's 
learning and development.



Sec.  1302.35  Education in home-based programs.

    (a) Purpose. A home-based program must provide home visits and group 
socialization activities that promote secure parent-child relationships 
and help parents provide high-quality early learning experiences in 
language, literacy, mathematics, social and emotional functioning, 
approaches to learning, science, physical skills, and creative arts. A 
program must implement a research-based curriculum that delivers 
developmentally, linguistically, and culturally appropriate home visits 
and group socialization activities that support children's cognitive, 
social, and emotional growth for later success in school.
    (b) Home-based program design. A home-based program must ensure all 
home visits are:
    (1) Planned jointly by the home visitor and parents, and reflect the 
critical role of parents in the early learning and development of their 
children, including that the home visitor is able to effectively 
communicate with the

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parent, directly or through an interpreter;
    (2) Planned using information from ongoing assessments that 
individualize learning experiences;
    (3) Scheduled with sufficient time to serve all enrolled children in 
the home and conducted with parents and are not conducted when only 
babysitters or other temporary caregivers are present;
    (4) Scheduled with sufficient time and appropriate staff to ensure 
effective delivery of services described in subparts D, E, F, and G of 
this part through home visiting, to the extent possible.
    (c) Home visit experiences. A program that operates the home-based 
option must ensure all home visits focus on promoting high-quality early 
learning experiences in the home and growth towards the goals described 
in the Head Start Early Learning Outcomes Framework: Ages Birth to Five 
and must use such goals and the curriculum to plan home visit activities 
that implement:
    (1) Age and developmentally appropriate, structured child-focused 
learning experiences;
    (2) Strategies and activities that promote parents' ability to 
support the child's cognitive, social, emotional, language, literacy, 
and physical development;
    (3) Strategies and activities that promote the home as a learning 
environment that is safe, nurturing, responsive, and language- and 
communication- rich;
    (4) Research-based strategies and activities for children who are 
dual language learners that recognize bilingualism and biliteracy as 
strengths, and:
    (i) For infants and toddlers, focus on the development of the home 
language, while providing experiences that expose both parents and 
children to English; and,
    (ii) For preschoolers, focus on both English language acquisition 
and the continued development of the home language; and,
    (5) Follow-up with the families to discuss learning experiences 
provided in the home between each visit, address concerns, and inform 
strategies to promote progress toward school readiness goals.
    (d) Home-based curriculum. A program that operates the home-based 
option must:
    (1) Ensure home-visiting and group socializations implement a 
developmentally appropriate research-based early childhood home-based 
curriculum that:
    (i) Promotes the parent's role as the child's teacher through 
experiences focused on the parent-child relationship and, as 
appropriate, the family's traditions, culture, values, and beliefs;
    (ii) Aligns with the Head Start Early Learning Outcomes Framework: 
Ages Birth to Five and, as appropriate, state early learning standards, 
and, is sufficiently content-rich within the Framework to promote 
measurable progress toward goals outlined in the Framework; and,
    (iii) Has an organized developmental scope and sequence that 
includes plans and materials for learning experiences based on 
developmental progressions and how children learn.
    (2) Support staff in the effective implementation of the curriculum 
and at a minimum monitor curriculum implementation and fidelity, and 
provide support, feedback, and supervision for continuous improvement of 
its implementation through the system of training and professional 
development.
    (3) If a program chooses to make significant adaptations to a 
curriculum or curriculum enhancement to better meet the needs of one or 
more specific populations, a program must:
    (i) Partner with early childhood education curriculum or content 
experts; and,
    (ii) Assess whether the adaptation adequately facilitates progress 
toward meeting school readiness goals consistent with the process 
described in Sec.  1302.102(b) and (c).
    (4) Provide parents with an opportunity to review selected curricula 
and instructional materials used in the program.
    (e) Group socialization. (1) A program that operates the home-based 
option must ensure group socializations are

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planned jointly with families, conducted with both child and parent 
participation, occur in a classroom, community facility, home or field 
trip setting, as appropriate.
    (2) Group socializations must be structured to:
    (i) Provide age appropriate activities for participating children 
that are intentionally aligned to school readiness goals, the Head Start 
Early Learning Outcomes Framework: Ages Birth to Five and the home-based 
curriculum; and,
    (ii) Encourage parents to share experiences related to their 
children's development with other parents in order to strengthen parent-
child relationships and to help promote parents understanding of child 
development;
    (3) For parents with preschoolers, group socializations also must 
provide opportunities for parents to participate in activities that 
support parenting skill development or family partnership goals 
identified in Sec.  1302.52(c), as appropriate and must emphasize peer 
group interactions designed to promote children's social, emotional and 
language development, and progress towards school readiness goals, while 
encouraging parents to observe and actively participate in activities, 
as appropriate.
    (f) Screening and assessments. A program that operates the home-
based option must implement provisions in Sec.  1302.33 and inform 
parents about the purposes of and the results from screenings and 
assessments and discuss their child's progress.



Sec.  1302.36  Tribal language preservation and revitalization.

    A program that serves American Indian and Alaska Native children may 
integrate efforts to preserve, revitalize, restore, or maintain the 
tribal language for these children into program services. Such language 
preservation and revitalization efforts may include full immersion in 
the tribal language for the majority of the hours of planned class 
operations. If children's home language is English, exposure to English 
as described in Sec.  1302.31(b)(2)(i) and (ii) is not required.



                    Subpart D_Health Program Services



Sec.  1302.40  Purpose.

    (a) A program must provide high-quality health, oral health, mental 
health, and nutrition services that are developmentally, culturally, and 
linguistically appropriate and that will support each child's growth and 
school readiness.
    (b) A program must establish and maintain a Health Services Advisory 
Committee that includes Head Start parents, professionals, and other 
volunteers from the community.



Sec.  1302.41  Collaboration and communication with parents.

    (a) For all activities described in this part, programs must 
collaborate with parents as partners in the health and well-being of 
their children in a linguistically and culturally appropriate manner and 
communicate with parents about their child's health needs and 
development concerns in a timely and effective manner.
    (b) At a minimum, a program must:
    (1) Obtain advance authorization from the parent or other person 
with legal authority for all health and developmental procedures 
administered through the program or by contract or agreement, and, 
maintain written documentation if they refuse to give authorization for 
health services; and,
    (2) Share with parents the policies for health emergencies that 
require rapid response on the part of staff or immediate medical 
attention.



Sec.  1302.42  Child health status and care.

    (a) Source of health care. (1) A program, within 30 calendar days 
after the child first attends the program or, for the home-based program 
option, receives a home visit, must consult with parents to determine 
whether each child has ongoing sources of continuous, accessible health 
care--provided by a health care professional that maintains the child's 
ongoing health record and is not primarily a source of emergency or 
urgent care--and health insurance coverage.
    (2) If the child does not have such a source of ongoing care and 
health insurance coverage or access to care

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through the Indian Health Service, the program must assist families in 
accessing a source of care and health insurance that will meet these 
criteria, as quickly as possible.
    (b) Ensuring up-to-date child health status. (1) Within 90 calendar 
days after the child first attends the program or, for the home-based 
program option, receives a home visit, with the exceptions noted in 
paragraph (b)(3) of this section, a program must:
    (i) Obtain determinations from health care and oral health care 
professionals as to whether or not the child is up-to-date on a schedule 
of age appropriate preventive and primary medical and oral health care, 
based on: The well-child visits and dental periodicity schedules as 
prescribed by the Early and Periodic Screening, Diagnosis, and Treatment 
(EPSDT) program of the Medicaid agency of the state in which they 
operate, immunization recommendations issued by the Centers for Disease 
Control and Prevention, and any additional recommendations from the 
local Health Services Advisory Committee that are based on prevalent 
community health problems;
    (ii) Assist parents with making arrangements to bring the child up-
to-date as quickly as possible; and, if necessary, directly facilitate 
provision of health services to bring the child up-to-date with parent 
consent as described in Sec.  1302.41(b)(1).
    (2) Within 45 calendar days after the child first attends the 
program or, for the home-based program option, receives a home visit, a 
program must either obtain or perform evidence-based vision and hearing 
screenings.
    (3) If a program operates for 90 days or less, it has 30 days from 
the date the child first attends the program to satisfy paragraphs 
(b)(1) and (2) of this section.
    (4) A program must identify each child's nutritional health needs, 
taking into account available health information, including the child's 
health records, and family and staff concerns, including special dietary 
requirements, food allergies, and community nutrition issues as 
identified through the community assessment or by the Health Services 
Advisory Committee.
    (c) Ongoing care. (1) A program must help parents continue to follow 
recommended schedules of well-child and oral health care.
    (2) A program must implement periodic observations or other 
appropriate strategies for program staff and parents to identify any new 
or recurring developmental, medical, oral, or mental health concerns.
    (3) A program must facilitate and monitor necessary oral health 
preventive care, treatment and follow-up, including topical fluoride 
treatments. In communities where there is a lack of adequate fluoride 
available through the water supply and for every child with moderate to 
severe tooth decay, a program must also facilitate fluoride supplements, 
and other necessary preventive measures, and further oral health 
treatment as recommended by the oral health professional.
    (d) Extended follow-up care. (1) A program must facilitate further 
diagnostic testing, evaluation, treatment, and follow-up plan, as 
appropriate, by a licensed or certified professional for each child with 
a health problem or developmental delay, such as elevated lead levels or 
abnormal hearing or vision results that may affect child's development, 
learning, or behavior.
    (2) A program must develop a system to track referrals and services 
provided and monitor the implementation of a follow-up plan to meet any 
treatment needs associated with a health, oral health, social and 
emotional, or developmental problem.
    (3) A program must assist parents, as needed, in obtaining any 
prescribed medications, aids or equipment for medical and oral health 
conditions.
    (e) Use of funds. (1) A program must use program funds for the 
provision of diapers and formula for enrolled children during the 
program day.
    (2) A program may use program funds for professional medical and 
oral health services when no other source of funding is available. When 
program funds are used for such services, grantee and delegate agencies 
must have written documentation of their efforts to access other 
available sources of funding.

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Sec.  1302.43  Oral health practices.

    A program must promote effective oral health hygiene by ensuring all 
children with teeth are assisted by appropriate staff, or volunteers, if 
available, in brushing their teeth with toothpaste containing fluoride 
once daily.



Sec.  1302.44  Child nutrition.

    (a) Nutrition service requirements. (1) A program must design and 
implement nutrition services that are culturally and developmentally 
appropriate, meet the nutritional needs of and accommodate the feeding 
requirements of each child, including children with special dietary 
needs and children with disabilities. Family style meals are encouraged 
as described in Sec.  1302.31(e)(2).
    (2) Specifically, a program must:
    (i) Ensure each child in a program that operates for fewer than six 
hours per day receives meals and snacks that provide one third to one 
half of the child's daily nutritional needs;
    (ii) Ensure each child in a program that operates for six hours or 
more per day receives meals and snacks that provide one half to two 
thirds of the child's daily nutritional needs, depending upon the length 
of the program day;
    (iii) Serve three- to five-year-olds meals and snacks that conform 
to USDA requirements in 7 CFR parts 210, 220, and 226, and are high in 
nutrients and low in fat, sugar, and salt;
    (iv) Feed infants and toddlers according to their individual 
developmental readiness and feeding skills as recommended in USDA 
requirements outlined in 7 CFR parts 210, 220, and 226, and ensure 
infants and young toddlers are fed on demand to the extent possible;
    (v) Ensure bottle-fed infants are never laid down to sleep with a 
bottle;
    (vi) Serve all children in morning center-based settings who have 
not received breakfast upon arrival at the program a nourishing 
breakfast;
    (vii) Provide appropriate healthy snacks and meals to each child 
during group socialization activities in the home-based option;
    (viii) Promote breastfeeding, including providing facilities to 
properly store and handle breast milk and make accommodations, as 
necessary, for mothers who wish to breastfeed during program hours, and 
if necessary, provide referrals to lactation consultants or counselors; 
and,
    (ix) Make safe drinking water available to children during the 
program day.
    (b) Payment sources. A program must use funds from USDA Food, 
Nutrition, and Consumer Services child nutrition programs as the primary 
source of payment for meal services. Early Head Start and Head Start 
funds may be used to cover those allowable costs not covered by the 
USDA.



Sec.  1302.45  Child mental health and social and emotional well-being.

    (a) Wellness promotion. To support a program-wide culture that 
promotes children's mental health, social and emotional well-being, and 
overall health, a program must:
    (1) Provide supports for effective classroom management and positive 
learning environments; supportive teacher practices; and, strategies for 
supporting children with challenging behaviors and other social, 
emotional, and mental health concerns;
    (2) Secure mental health consultation services on a schedule of 
sufficient and consistent frequency to ensure a mental health consultant 
is available to partner with staff and families in a timely and 
effective manner;
    (3) Obtain parental consent for mental health consultation services 
at enrollment; and,
    (4) Build community partnerships to facilitate access to additional 
mental health resources and services, as needed.
    (b) Mental health consultants. A program must ensure mental health 
consultants assist:
    (1) The program to implement strategies to identify and support 
children with mental health and social and emotional concerns;
    (2) Teachers, including family child care providers, to improve 
classroom management and teacher practices through strategies that 
include using classroom observations and consultations to address 
teacher and individual child needs and creating physical and cultural 
environments that promote

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positive mental health and social and emotional functioning;
    (3) Other staff, including home visitors, to meet children's mental 
health and social and emotional needs through strategies that include 
observation and consultation;
    (4) Staff to address prevalent child mental health concerns, 
including internalizing problems such as appearing withdrawn and 
externalizing problems such as challenging behaviors; and,
    (5) In helping both parents and staff to understand mental health 
and access mental health interventions, if needed.
    (6) In the implementation of the policies to limit suspension and 
prohibit expulsion as described in Sec.  1302.17.



Sec.  1302.46  Family support services for health, nutrition, 
and mental health.

    (a) Parent collaboration. Programs must collaborate with parents to 
promote children's health and well-being by providing medical, oral, 
nutrition and mental health education support services that are 
understandable to individuals, including individuals with low health 
literacy.
    (b) Opportunities. (1) Such collaboration must include opportunities 
for parents to:
    (i) Learn about preventive medical and oral health care, emergency 
first aid, environmental hazards, and health and safety practices for 
the home including health and developmental consequences of tobacco 
products use and exposure to lead, and safe sleep;
    (ii) Discuss their child's nutritional status with staff, including 
the importance of physical activity, healthy eating, and the negative 
health consequences of sugar-sweetened beverages, and how to select and 
prepare nutritious foods that meet the family's nutrition and food 
budget needs;
    (iii) Learn about healthy pregnancy and postpartum care, as 
appropriate, including breastfeeding support and treatment options for 
parental mental health or substance abuse problems, including perinatal 
depression;
    (iv) Discuss with staff and identify issues related to child mental 
health and social and emotional well-being, including observations and 
any concerns about their child's mental health, typical and atypical 
behavior and development, and how to appropriately respond to their 
child and promote their child's social and emotional development; and,
    (v) Learn about appropriate vehicle and pedestrian safety for 
keeping children safe.
    (2) A program must provide ongoing support to assist parents' 
navigation through health systems to meet the general health and 
specifically identified needs of their children and must assist parents:
    (i) In understanding how to access health insurance for themselves 
and their families, including information about private and public 
health insurance and designated enrollment periods;
    (ii) In understanding the results of diagnostic and treatment 
procedures as well as plans for ongoing care; and,
    (iii) In familiarizing their children with services they will 
receive while enrolled in the program and to enroll and participate in a 
system of ongoing family health care.



Sec.  1302.47  Safety practices.

    (a) A program must establish, train staff on, implement, and enforce 
a system of health and safety practices that ensure children are kept 
safe at all times. A program should consult Caring for our Children 
Basics, available at http://www.acf.hhs.gov/sites/default/files/ecd/
caring_for_our_children_basics.pdf, for additional information to 
develop and implement adequate safety policies and practices described 
in this part.
    (b) A program must develop and implement a system of management, 
including ongoing training, oversight, correction and continuous 
improvement in accordance with Sec.  1302.102, that includes policies 
and practices to ensure all facilities, equipment and materials, 
background checks, safety training, safety and hygiene practices and 
administrative safety procedures are adequate to ensure child safety. 
This system must ensure:
    (1) Facilities. All facilities where children are served, including 
areas for learning, playing, sleeping, toileting, and eating are, at a 
minimum:

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    (i) Meet licensing requirements in accordance with Sec. Sec.  
1302.21(d)(1) and 1302.23(d);
    (ii) Clean and free from pests;
    (iii) Free from pollutants, hazards and toxins that are accessible 
to children and could endanger children's safety;
    (iv) Designed to prevent child injury and free from hazards, 
including choking, strangulation, electrical, and drowning hazards, 
hazards posed by appliances and all other safety hazards;
    (v) Well lit, including emergency lighting;
    (vi) Equipped with safety supplies that are readily accessible to 
staff, including, at a minimum, fully-equipped and up-to-date first aid 
kits and appropriate fire safety supplies;
    (vii) Free from firearms or other weapons that are accessible to 
children;
    (viii) Designed to separate toileting and diapering areas from areas 
for preparing food, cooking, eating, or children's activities; and,
    (ix) Kept safe through an ongoing system of preventative 
maintenance.
    (2) Equipment and materials. Indoor and outdoor play equipment, 
cribs, cots, feeding chairs, strollers, and other equipment used in the 
care of enrolled children, and as applicable, other equipment and 
materials meet standards set by the Consumer Product Safety Commission 
(CPSC) or the American Society for Testing and Materials, International 
(ASTM). All equipment and materials must at a minimum:
    (i) Be clean and safe for children's use and are appropriately 
disinfected;
    (ii) Be accessible only to children for whom they are age 
appropriate;
    (iii) Be designed to ensure appropriate supervision of children at 
all times;
    (iv) Allow for the separation of infants and toddlers from 
preschoolers during play in center-based programs; and,
    (v) Be kept safe through an ongoing system of preventative 
maintenance.
    (3) Background checks. All staff have complete background checks in 
accordance with Sec.  1302.90(b).
    (4) Safety training--(i) Staff with regular child contact. All staff 
with regular child contact have initial orientation training within 
three months of hire and ongoing training in all state, local, tribal, 
federal and program-developed health, safety and child care requirements 
to ensure the safety of children in their care; including, at a minimum, 
and as appropriate based on staff roles and ages of children they work 
with, training in:
    (A) The prevention and control of infectious diseases;
    (B) Prevention of sudden infant death syndrome and use of safe 
sleeping practices;
    (C) Administration of medication, consistent with standards for 
parental consent;
    (D) Prevention and response to emergencies due to food and allergic 
reactions;
    (E) Building and physical premises safety, including identification 
of and protection from hazards, bodies of water, and vehicular traffic;
    (F) Prevention of shaken baby syndrome, abusive head trauma, and 
child maltreatment;
    (G) Emergency preparedness and response planning for emergencies;
    (H) Handling and storage of hazardous materials and the appropriate 
disposal of biocontaminants;
    (I) Appropriate precautions in transporting children, if applicable;
    (J) First aid and cardiopulmonary resuscitation; and,
    (K) Recognition and reporting of child abuse and neglect, in 
accordance with the requirement at paragraph (b)(5) of this section.
    (ii) Staff without regular child contact. All staff with no regular 
responsibility for or contact with children have initial orientation 
training within three months of hire; ongoing training in all state, 
local, tribal, federal and program-developed health and safety 
requirements applicable to their work; and training in the program's 
emergency and disaster preparedness procedures.
    (5) Safety practices. All staff and consultants follow appropriate 
practices to keep children safe during all activities, including, at a 
minimum:
    (i) Reporting of suspected or known child abuse and neglect, 
including that

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staff comply with applicable federal, state, local, and tribal laws;
    (ii) Safe sleep practices, including ensuring that all sleeping 
arrangements for children under 18 months of age use firm mattresses or 
cots, as appropriate, and for children under 12 months, soft bedding 
materials or toys must not be used;
    (iii) Appropriate indoor and outdoor supervision of children at all 
times;
    (iv) Only releasing children to an authorized adult, and;
    (v) All standards of conduct described in Sec.  1302.90(c).
    (6) Hygiene practices. All staff systematically and routinely 
implement hygiene practices that at a minimum ensure:
    (i) Appropriate toileting, hand washing, and diapering procedures 
are followed;
    (ii) Safe food preparation; and,
    (iii) Exposure to blood and body fluids are handled consistent with 
standards of the Occupational Safety Health Administration.
    (7) Administrative safety procedures. Programs establish, follow, 
and practice, as appropriate, procedures for, at a minimum:
    (i) Emergencies;
    (ii) Fire prevention and response;
    (iii) Protection from contagious disease, including appropriate 
inclusion and exclusion policies for when a child is ill, and from an 
infectious disease outbreak, including appropriate notifications of any 
reportable illness;
    (iv) The handling, storage, administration, and record of 
administration of medication;
    (v) Maintaining procedures and systems to ensure children are only 
released to an authorized adult; and,
    (vi) Child specific health care needs and food allergies that 
include accessible plans of action for emergencies. For food allergies, 
a program must also post individual child food allergies prominently 
where staff can view wherever food is served.
    (8) Disaster preparedness plan. The program has all-hazards 
emergency management/disaster preparedness and response plans for more 
and less likely events including natural and manmade disasters and 
emergencies, and violence in or near programs.
    (c) A program must report any safety incidents in accordance with 
Sec.  1302.102(d)(1)(ii).



       Subpart E_Family and Community Engagement Program Services



Sec.  1302.50  Family engagement.

    (a) Purpose. A program must integrate parent and family engagement 
strategies into all systems and program services to support family well-
being and promote children's learning and development. Programs are 
encouraged to develop innovative two-generation approaches that address 
prevalent needs of families across their program that may leverage 
community partnerships or other funding sources.
    (b) Family engagement approach. A program must:
    (1) Recognize parents as their children's primary teachers and 
nurturers and implement intentional strategies to engage parents in 
their children's learning and development and support parent-child 
relationships, including specific strategies for father engagement;
    (2) Develop relationships with parents and structure services to 
encourage trust and respectful, ongoing two-way communication between 
staff and parents to create welcoming program environments that 
incorporate the unique cultural, ethnic, and linguistic backgrounds of 
families in the program and community;
    (3) Collaborate with families in a family partnership process that 
identifies needs, interests, strengths, goals, and services and 
resources that support family well-being, including family safety, 
health, and economic stability;
    (4) Provide parents with opportunities to participate in the program 
as employees or volunteers;
    (5) Conduct family engagement services in the family's preferred 
language, or through an interpreter, to the extent possible, and ensure 
families have the opportunity to share personal information in an 
environment in which they feel safe; and,
    (6) Implement procedures for teachers, home visitors, and family 
support staff to share information with each other, as appropriate and 
consistent

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with the requirements in part 1303, subpart C, of this chapter; FERPA; 
or IDEA, to ensure coordinated family engagement strategies with 
children and families in the classroom, home, and community.



Sec.  1302.51  Parent activities to promote child learning and development.

    (a) A program must promote shared responsibility with parents for 
children's early learning and development, and implement family 
engagement strategies that are designed to foster parental confidence 
and skills in promoting children's learning and development. These 
strategies must include:
    (1) Offering activities that support parent-child relationships and 
child development including language, dual language, literacy, and bi-
literacy development as appropriate;
    (2) Providing parents with information about the importance of their 
child's regular attendance, and partner with them, as necessary, to 
promote consistent attendance; and,
    (3) For dual language learners, information and resources for 
parents about the benefits of bilingualism and biliteracy.
    (b) A program must, at a minimum, offer opportunities for parents to 
participate in a research-based parenting curriculum that builds on 
parents' knowledge and offers parents the opportunity to practice 
parenting skills to promote children's learning and development. A 
program that chooses to make significant adaptations to the parenting 
curriculum to better meet the needs of one or more specific populations 
must work with an expert or experts to develop such adaptations.



Sec.  1302.52  Family partnership services.

    (a) Family partnership process. A program must implement a family 
partnership process that includes a family partnership agreement and the 
activities described in this section to support family well-being, 
including family safety, health, and economic stability, to support 
child learning and development, to provide, if applicable, services and 
supports for children with disabilities, and to foster parental 
confidence and skills that promote the early learning and development of 
their children. The process must be initiated as early in the program 
year as possible and continue for as long as the family participates in 
the program, based on parent interest and need.
    (b) Identification of family strengths and needs. A program must 
implement intake and family assessment procedures to identify family 
strengths and needs related to the family engagement outcomes as 
described in the Head Start Parent Family and Community Engagement 
Framework, including family well-being, parent-child relationships, 
families as lifelong educators, families as learners, family engagement 
in transitions, family connections to peers and the local community, and 
families as advocates and leaders.
    (c) Individualized family partnership services. A program must offer 
individualized family partnership services that:
    (1) Collaborate with families to identify interests, needs, and 
aspirations related to the family engagement outcomes described in 
paragraph (b) of this section;
    (2) Help families achieve identified individualized family 
engagement outcomes;
    (3) Establish and implement a family partnership agreement process 
that is jointly developed and shared with parents in which staff and 
families review individual progress, revise goals, evaluate and track 
whether identified needs and goals are met, and adjust strategies on an 
ongoing basis, as necessary, and;
    (4) Assign staff and resources based on the urgency and intensity of 
identified family needs and goals.
    (d) Existing plans and community resources. In implementing this 
section, a program must take into consideration any existing plans for 
the family made with other community agencies and availability of other 
community resources to address family needs, strengths, and goals, in 
order to avoid duplication of effort.

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Sec.  1302.53  Community partnerships and coordination with other 
early childhood and education programs.

    (a) Community partnerships. (1) A program must establish ongoing 
collaborative relationships and partnerships with community 
organizations such as establishing joint agreements, procedures, or 
contracts and arranging for onsite delivery of services as appropriate, 
to facilitate access to community services that are responsive to 
children's and families' needs and family partnership goals, and 
community needs and resources, as determined by the community 
assessment.
    (2) A program must establish necessary collaborative relationships 
and partnerships, with community organizations that may include:
    (i) Health care providers, including child and adult mental health 
professionals, Medicaid managed care networks, dentists, other health 
professionals, nutritional service providers, providers of prenatal and 
postnatal support, and substance abuse treatment providers;
    (ii) Individuals and agencies that provide services to children with 
disabilities and their families, elementary schools, state preschool 
providers, and providers of child care services;
    (iii) Family preservation and support services and child protective 
services and any other agency to which child abuse must be reported 
under state or tribal law;
    (iv) Educational and cultural institutions, such as libraries and 
museums, for both children and families;
    (v) Temporary Assistance for Needy Families, nutrition assistance 
agencies, workforce development and training programs, adult or family 
literacy, adult education, and post-secondary education institutions, 
and agencies or financial institutions that provide asset-building 
education, products and services to enhance family financial stability 
and savings;
    (vi) Housing assistance agencies and providers of support for 
children and families experiencing homelessness, including the local 
educational agency liaison designated under section 722(g)(1)(J)(ii) of 
the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11431 et seq.);
    (vii) Domestic violence prevention and support providers; and,
    (viii) Other organizations or businesses that may provide support 
and resources to families.
    (b) Coordination with other programs and systems. A program must 
take an active role in promoting coordinated systems of comprehensive 
early childhood services to low-income children and families in their 
community through communication, cooperation, and the sharing of 
information among agencies and their community partners, while 
protecting the privacy of child records in accordance with subpart C of 
part 1303 of this chapter and applicable federal, state, local, and 
tribal laws.
    (1) Memorandum of understanding. To support coordination between 
Head Start and publicly funded preschool programs, a program must enter 
into a memorandum of understanding with the appropriate local entity 
responsible for managing publicly funded preschool programs in the 
service area of the program, as described in section 642(e)(5) of the 
Act.
    (2) Quality Rating and Improvement Systems. A program, with the 
exception of American Indian and Alaska Native programs, must 
participate in its state or local Quality Rating and Improvement System 
(QRIS) if:
    (i) Its state or local QRIS accepts Head Start monitoring data to 
document quality indicators included in the state's tiered system;
    (ii) Participation would not impact a program's ability to comply 
with the Head Start Program Performance Standards; and,
    (iii) The program has not provided the Office of Head Start with a 
compelling reason not to comply with this requirement.
    (3) Data systems. A program, with the exception of American Indian 
and Alaska Native programs unless they would like to and to the extent 
practicable, should integrate and share relevant data with state 
education data systems, to the extent practicable, if the program can 
receive similar support and benefits as other participating early 
childhood programs.
    (4) American Indian and Alaska Native programs. An American Indian 
and

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Alaska Native program should determine whether or not it will 
participate in the systems described in paragraphs (b)(2) and (3) of 
this section.



      Subpart F_Additional Services for Children With Disabilities



Sec.  1302.60  Full participation in program services and activities.

    A program must ensure enrolled children with disabilities, including 
but not limited to those who are eligible for services under IDEA, and 
their families receive all applicable program services delivered in the 
least restrictive possible environment and that they fully participate 
in all program activities.



Sec.  1302.61  Additional services for children.

    (a) Additional services for children with disabilities. Programs 
must ensure the individualized needs of children with disabilities, 
including but not limited to those eligible for services under IDEA, are 
being met and all children have access to and can fully participate in 
the full range of activities and services. Programs must provide any 
necessary modifications to the environment, multiple and varied formats 
for instruction, and individualized accommodations and supports as 
necessary to support the full participation of children with 
disabilities. Programs must ensure all individuals with disabilities are 
protected from discrimination under and provided with all services and 
program modifications required by section 504 of the Rehabilitation Act 
(29 U.S.C. 794), the Americans with Disabilities Act (42 U.S.C. 12101 et 
seq.), and their implementing regulations.
    (b) Services during IDEA eligibility determination. While the local 
agency responsible for implementing IDEA determines a child's 
eligibility, a program must provide individualized services and 
supports, to the maximum extent possible, to meet the child's needs. 
Such additional supports may be available through a child's health 
insurance or it may be appropriate or required to provide the needed 
services and supports under section 504 of the Rehabilitation Act if the 
child satisfies the definition of disability in section 705(9)(b) of the 
Rehabilitation Act. When such supports are not available through 
alternate means, pending the evaluation results and eligibility 
determination, a program must individualize program services based on 
available information such as parent input and child observation and 
assessment data and may use program funds for these purposes.
    (c) Additional services for children with an IFSP or IEP. To ensure 
the individual needs of children eligible for services under IDEA are 
met, a program must:
    (1) Work closely with the local agency responsible for implementing 
IDEA, the family, and other service partners, as appropriate, to ensure:
    (i) Services for a child with disabilities will be planned and 
delivered as required by their IFSP or IEP, as appropriate;
    (ii) Children are working towards the goals in their IFSP or IEP;
    (iii) Elements of the IFSP or IEP that the program cannot implement 
are implemented by other appropriate agencies, related service providers 
and specialists;
    (iv) IFSPs and IEPs are being reviewed and revised, as required by 
IDEA; and,
    (v) Services are provided in a child's regular Early Head Start or 
Head Start classroom or family child care home to the greatest extent 
possible.
    (2) Plan and implement the transition services described in subpart 
G of this part, including at a minimum:
    (i) For children with an IFSP who are transitioning out of Early 
Head Start, collaborate with the parents, and the local agency 
responsible for implementing IDEA, to ensure appropriate steps are 
undertaken in a timely and appropriate manner to determine the child's 
eligibility for services under Part B of IDEA; and,
    (ii) For children with an IEP who are transitioning out of Head 
Start to kindergarten, collaborate with the parents, and the local 
agency responsible for implementing IDEA, to ensure steps are undertaken 
in a timely and appropriate manner to support the child and family as 
they transition to a new setting.

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Sec.  1302.62  Additional services for parents.

    (a) Parents of all children with disabilities. (1) A program must 
collaborate with parents of children with disabilities, including but 
not limited to children eligible for services under IDEA, to ensure the 
needs of their children are being met, including support to help parents 
become advocates for services that meet their children's needs and 
information and skills to help parents understand their child's 
disability and how to best support the child's development;
    (2) A program must assist parents to access services and resources 
for their family, including securing adaptive equipment and devices and 
supports available through a child's health insurance or other entities, 
creating linkages to family support programs, and helping parents 
establish eligibility for additional support programs, as needed and 
practicable.
    (b) Parents of children eligible for services under IDEA. For 
parents of children eligible for services under IDEA, a program must 
also help parents:
    (1) Understand the referral, evaluation, and service timelines 
required under IDEA;
    (2) Actively participate in the eligibility process and IFSP or IEP 
development process with the local agency responsible for implementing 
IDEA, including by informing parents of their right to invite the 
program to participate in all meetings;
    (3) Understand the purposes and results of evaluations and services 
provided under an IFSP or IEP; and,
    (4) Ensure their children's needs are accurately identified in, and 
addressed through, the IFSP or IEP.



Sec.  1302.63  Coordination and collaboration with the local agency 
responsible for implementing IDEA.

    (a) A program must coordinate with the local agency responsible for 
implementing IDEA to identify children enrolled or who intend to enroll 
in a program that may be eligible for services under IDEA, including 
through the process described in Sec.  1302.33(a)(3) and through 
participation in the local agency Child Find efforts.
    (b) A program must work to develop interagency agreements with the 
local agency responsible for implementing IDEA to improve service 
delivery to children eligible for services under IDEA, including the 
referral and evaluation process, service coordination, promotion of 
service provision in the least restrictive appropriate community-based 
setting and reduction in dual enrollment which causes reduced time in a 
less restrictive setting, and transition services as children move from 
services provided under Part C of IDEA to services provided under Part B 
of IDEA and from preschool to kindergarten.
    (c) A program must participate in the development of the IFSP or IEP 
if requested by the child's parents, and the implementation of the IFSP 
or IEP. At a minimum, the program must offer:
    (1) To provide relevant information from its screenings, 
assessments, and observations to the team developing a child's IFSP or 
IEP; and,
    (2) To participate in meetings with the local agency responsible for 
implementing IDEA to develop or review an IEP or IFSP for a child being 
considered for Head Start enrollment, a currently enrolled child, or a 
child transitioning from a program.
    (d) A program must retain a copy of the IEP or IFSP for any child 
enrolled in Head Start for the time the child is in the program, 
consistent with the IDEA requirements in 34 CFR parts 300 and 303.



                      Subpart G_Transition Services



Sec.  1302.70  Transitions from Early Head Start.

    (a) Implementing transition strategies and practices. An Early Head 
Start program must implement strategies and practices to support 
successful transitions for children and their families transitioning out 
of Early Head Start.
    (b) Timing for transitions. To ensure the most appropriate placement 
and service following participation in Early Head Start, such programs 
must, at least six months prior to each child's third birthday, 
implement transition planning for each child and family that:

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    (1) Takes into account the child's developmental level and health 
and disability status, progress made by the child and family while in 
Early Head Start, current and changing family circumstances and, the 
availability of Head Start, other public pre-kindergarten, and other 
early education and child development services in the community that 
will meet the needs of the child and family; and,
    (2) Transitions the child into Head Start or another program as soon 
as possible after the child's third birthday but permits the child to 
remain in Early Head Start for a limited number of additional months 
following the child's third birthday if necessary for an appropriate 
transition.
    (c) Family collaborations. A program must collaborate with parents 
of Early Head Start children to implement strategies and activities that 
support successful transitions from Early Head Start and, at a minimum, 
provide information about the child's progress during the program year 
and provide strategies for parents to continue their involvement in and 
advocacy for the education and development of their child.
    (d) Early Head Start and Head Start collaboration. Early Head Start 
and Head Start programs must work together to maximize enrollment 
transitions from Early Head Start to Head Start, consistent with the 
eligibility provisions in subpart A, and promote successful transitions 
through collaboration and communication.
    (e) Transition services for children with an IFSP. A program must 
provide additional transition services for children with an IFSP, at a 
minimum, as described in subpart F of this part.



Sec.  1302.71  Transitions from Head Start to kindergarten.

    (a) Implementing transition strategies and practices. A program that 
serves children who will enter kindergarten in the following year must 
implement transition strategies to support a successful transition to 
kindergarten.
    (b) Family collaborations for transitions. (1) A program must 
collaborate with parents of enrolled children to implement strategies 
and activities that will help parents advocate for and promote 
successful transitions to kindergarten for their children, including 
their continued involvement in the education and development of their 
child.
    (2) At a minimum, such strategies and activities must:
    (i) Help parents understand their child's progress during Head 
Start;
    (ii) Help parents understand practices they use to effectively 
provide academic and social support for their children during their 
transition to kindergarten and foster their continued involvement in the 
education of their child;
    (iii) Prepare parents to exercise their rights and responsibilities 
concerning the education of their children in the elementary school 
setting, including services and supports available to children with 
disabilities and various options for their child to participate in 
language instruction educational programs; and,
    (iv) Assist parents in the ongoing communication with teachers and 
other school personnel so that parents can participate in decisions 
related to their children's education.
    (c) Community collaborations for transitions. (1) A program must 
collaborate with local education agencies to support family engagement 
under section 642(b)(13) of the Act and state departments of education, 
as appropriate, and kindergarten teachers to implement strategies and 
activities that promote successful transitions to kindergarten for 
children, their families, and the elementary school.
    (2) At a minimum, such strategies and activities must include:
    (i) Coordination with schools or other appropriate agencies to 
ensure children's relevant records are transferred to the school or next 
placement in which a child will enroll, consistent with privacy 
requirements in subpart C of part 1303 of this chapter;
    (ii) Communication between appropriate staff and their counterparts 
in the schools to facilitate continuity of learning and development, 
consistent with privacy requirements in subpart C of part 1303 of this 
chapter; and,

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    (iii) Participation, as possible, for joint training and 
professional development activities for Head Start and kindergarten 
teachers and staff.
    (3) A program that does not operate during the summer must 
collaborate with school districts to determine the availability of 
summer school programming for children who will be entering kindergarten 
and work with parents and school districts to enroll children in such 
programs, as appropriate.
    (d) Learning environment activities. A program must implement 
strategies and activities in the learning environment that promote 
successful transitions to kindergarten for enrolled children, and at a 
minimum, include approaches that familiarize children with the 
transition to kindergarten and foster confidence about such transition.
    (e) Transition services for children with an IEP. A program must 
provide additional transition services for children with an IEP, at a 
minimum, as described in subpart F of this part.



Sec.  1302.72  Transitions between programs.

    (a) For families and children who move out of the community in which 
they are currently served, including homeless families and foster 
children, a program must undertake efforts to support effective 
transitions to other Early Head Start or Head Start programs. If Early 
Head Start or Head Start is not available, the program should assist the 
family to identify another early childhood program that meets their 
needs.
    (b) A program that serves children whose families have decided to 
transition them to other early education programs, including public pre-
kindergarten, in the year prior to kindergarten entry must undertake 
strategies and activities described in Sec.  1302.71(b) and (c)(1) and 
(2), as practicable and appropriate.
    (c) A migrant or seasonal Head Start program must undertake efforts 
to support effective transitions to other migrant or seasonal Head Start 
or, if appropriate, Early Head Start or Head Start programs for families 
and children moving out of the community in which they are currently 
served.



              Subpart H_Services to Enrolled Pregnant Women



Sec.  1302.80  Enrolled pregnant women.

    (a) Within 30 days of enrollment, a program must determine whether 
each enrolled pregnant woman has an ongoing source of continuous, 
accessible health care--provided by a health care professional that 
maintains her ongoing health record and is not primarily a source of 
emergency or urgent care--and, as appropriate, health insurance 
coverage.
    (b) If an enrolled pregnant woman does not have a source of ongoing 
care as described in paragraph (a) of this section and, as appropriate, 
health insurance coverage, a program must, as quickly as possible, 
facilitate her access to such a source of care that will meet her needs.
    (c) A program must facilitate the ability of all enrolled pregnant 
women to access comprehensive services through referrals that, at a 
minimum, include nutritional counseling, food assistance, oral health 
care, mental health services, substance abuse prevention and treatment, 
and emergency shelter or transitional housing in cases of domestic 
violence.
    (d) A program must provide a newborn visit with each mother and baby 
to offer support and identify family needs. A program must schedule the 
newborn visit within two weeks after the infant's birth.



Sec.  1302.81  Prenatal and postpartum information, education, and services.

    (a) A program must provide enrolled pregnant women, fathers, and 
partners or other relevant family members the prenatal and postpartum 
information, education and services that address, as appropriate, fetal 
development, the importance of nutrition, the risks of alcohol, drugs, 
and smoking, labor and delivery, postpartum recovery, parental 
depression, infant care and safe sleep practices, and the benefits of 
breastfeeding.
    (b) A program must also address needs for appropriate supports for 
emotional well-being, nurturing and responsive caregiving, and father 
engagement during pregnancy and early childhood.

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Sec.  1302.82  Family partnership services for enrolled pregnant women.

    (a) A program must engage enrolled pregnant women and other relevant 
family members, such as fathers, in the family partnership services as 
described in Sec.  1302.52 and include a specific focus on factors that 
influence prenatal and postpartum maternal and infant health.
    (b) A program must engage enrolled pregnant women and other relevant 
family members, such as fathers, in discussions about program options, 
plan for the infant's transition to program enrollment, and support the 
family during the transition process, where appropriate.



                  Subpart I_Human Resources Management



Sec.  1302.90  Personnel policies.

    (a) Establishing personnel policies and procedures. A program must 
establish written personnel policies and procedures that are approved by 
the governing body and policy council or policy committee and that are 
available to all staff.
    (b) Background checks and selection procedures. (1) Before a person 
is hired, directly or through contract, including transportation staff 
and contractors, a program must conduct an interview, verify references, 
conduct a sex offender registry check and obtain one of the following:
    (i) State or tribal criminal history records, including fingerprint 
checks; or,
    (ii) Federal Bureau of Investigation criminal history records, 
including fingerprint checks.
    (2) A program has 90 days after an employee is hired to complete the 
background check process by obtaining:
    (i) Whichever check listed in paragraph (b)(1) of this section was 
not obtained prior to the date of hire; and,
    (ii) Child abuse and neglect state registry check, if available.
    (3) A program must review the information found in each employment 
application and complete background check to assess the relevancy of any 
issue uncovered by the complete background check including any arrest, 
pending criminal charge, or conviction and must use Child Care and 
Development Fund (CCDF) disqualification factors described in 42 U.S.C. 
9858f(c)(1)(D) and 42 U.S.C. 9858f(h)(1) or tribal disqualifications 
factors to determine whether the prospective employee can be hired or 
the current employee must be terminated.
    (4) A program must ensure a newly hired employee, consultant, or 
contractor does not have unsupervised access to children until the 
complete background check process described in paragraphs (b)(1) through 
(3) of this section is complete.
    (5) A program must conduct the complete background check for each 
employee, consultant, or contractor at least once every five years which 
must include each of the four checks listed in paragraphs (b)(1) and (2) 
of this section, and review and make employment decisions based on the 
information as described in paragraph (b)(3) of this section, unless the 
program can demonstrate to the responsible HHS official that it has a 
more stringent system in place that will ensure child safety.
    (6) A program must consider current and former program parents for 
employment vacancies for which such parents apply and are qualified.
    (c) Standards of conduct. (1) A program must ensure all staff, 
consultants, contractors, and volunteers abide by the program's 
standards of conduct that:
    (i) Ensure staff, consultants, contractors, and volunteers implement 
positive strategies to support children's well-being and prevent and 
address challenging behavior;
    (ii) Ensure staff, consultants, contractors, and volunteers do not 
maltreat or endanger the health or safety of children, including, at a 
minimum, that staff must not:
    (A) Use corporal punishment;
    (B) Use isolation to discipline a child;
    (C) Bind or tie a child to restrict movement or tape a child's 
mouth;
    (D) Use or withhold food as a punishment or reward;
    (E) Use toilet learning/training methods that punish, demean, or 
humiliate a child;

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    (F) Use any form of emotional abuse, including public or private 
humiliation, rejecting, terrorizing, extended ignoring, or corrupting a 
child;
    (G) Physically abuse a child;
    (H) Use any form of verbal abuse, including profane, sarcastic 
language, threats, or derogatory remarks about the child or child's 
family; or,
    (I) Use physical activity or outdoor time as a punishment or reward;
    (iii) Ensure staff, consultants, contractors, and volunteers respect 
and promote the unique identity of each child and family and do not 
stereotype on any basis, including gender, race, ethnicity, culture, 
religion, disability, sexual orientation, or family composition;
    (iv) Require staff, consultants, contractors, and volunteers to 
comply with program confidentiality policies concerning personally 
identifiable information about children, families, and other staff 
members in accordance with subpart C of part 1303 of this chapter and 
applicable federal, state, local, and tribal laws; and,
    (v) Ensure no child is left alone or unsupervised by staff, 
consultants, contractors, or volunteers while under their care.
    (2) Personnel policies and procedures must include appropriate 
penalties for staff, consultants, and volunteers who violate the 
standards of conduct.
    (d) Communication with dual language learners and their families. 
(1) A program must ensure staff and program consultants or contractors 
are familiar with the ethnic backgrounds and heritages of families in 
the program and are able to serve and effectively communicate, either 
directly or through interpretation and translation, with children who 
are dual language learners and to the extent feasible, with families 
with limited English proficiency.
    (2) If a majority of children in a class or home-based program speak 
the same language, at least one class staff member or home visitor must 
speak such language.



Sec.  1302.91  Staff qualifications and competency requirements.

    (a) Purpose. A program must ensure all staff, consultants, and 
contractors engaged in the delivery of program services have sufficient 
knowledge, training and experience, and competencies to fulfill the 
roles and responsibilities of their positions and to ensure high-quality 
service delivery in accordance with the program performance standards. A 
program must provide ongoing training and professional development to 
support staff in fulfilling their roles and responsibilities.
    (b) Early Head Start or Head Start director. A program must ensure 
an Early Head Start or Head Start director hired after November 7, 2016, 
has, at a minimum, a baccalaureate degree and experience in supervision 
of staff, fiscal management, and administration.
    (c) Fiscal officer. A program must assess staffing needs in 
consideration of the fiscal complexity of the organization and 
applicable financial management requirements and secure the regularly 
scheduled or ongoing services of a fiscal officer with sufficient 
education and experience to meet their needs. A program must ensure a 
fiscal officer hired after November 7, 2016, is a certified public 
accountant or has, at a minimum, a baccalaureate degree in accounting, 
business, fiscal management, or a related field.
    (d) Child and family services management staff qualification 
requirements--(1) Family, health, and disabilities management. A program 
must ensure staff responsible for management and oversight of family 
services, health services, and services to children with disabilities 
hired after November 7, 2016, have, at a minimum, a baccalaureate 
degree, preferably related to one or more of the disciplines they 
oversee.
    (2) Education management. As prescribed in section 648A(a)(2)(B)(i) 
of the Act, a program must ensure staff and consultants that serve as 
education managers or coordinators, including those that serve as 
curriculum specialists, have a baccalaureate or advanced degree in early 
childhood education or a baccalaureate or advanced degree and equivalent 
coursework in early childhood education with early education teaching 
experience.
    (e) Child and family services staff--(1) Early Head Start center-
based teacher qualification requirements. As prescribed

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in section 645A(h) of the Act, a program must ensure center-based 
teachers that provide direct services to infants and toddlers in Early 
Head Start centers have a minimum of a Child Development Associate (CDA) 
credential or comparable credential, and have been trained or have 
equivalent coursework in early childhood development with a focus on 
infant and toddler development.
    (2) Head Start center-based teacher qualification requirements. (i) 
The Secretary must ensure no less than fifty percent of all Head Start 
teachers, nationwide, have a baccalaureate degree in child development, 
early childhood education, or equivalent coursework.
    (ii) As prescribed in section 648A(a)(3)(B) of the Act, a program 
must ensure all center-based teachers have at least an associate's or 
bachelor's degree in child development or early childhood education, 
equivalent coursework, or otherwise meet the requirements of section 
648A(a)(3)(B) of the Act.
    (3) Head Start assistant teacher qualification requirements. As 
prescribed in section 648A(a)(2)(B)(ii) of the Act, a program must 
ensure Head Start assistant teachers, at a minimum, have a CDA 
credential or a state-awarded certificate that meets or exceeds the 
requirements for a CDA credential, are enrolled in a program that will 
lead to an associate or baccalaureate degree or, are enrolled in a CDA 
credential program to be completed within two years of the time of hire.
    (4) Family child care provider qualification requirements. (i) A 
program must ensure family child care providers have previous early 
child care experience and, at a minimum, are enrolled in a Family Child 
Care CDA program or state equivalent, or an associate's or baccalaureate 
degree program in child development or early childhood education prior 
to beginning service provision, and for the credential acquire it within 
eighteen months of beginning to provide services.
    (ii) By August 1, 2018, a child development specialist, as required 
for family child care in Sec.  1302.23(e), must have, at a minimum, a 
baccalaureate degree in child development, early childhood education, or 
a related field.
    (5) Center-based teachers, assistant teachers, and family child care 
provider competencies. A program must ensure center-based teachers, 
assistant teachers, and family child care providers demonstrate 
competency to provide effective and nurturing teacher-child 
interactions, plan and implement learning experiences that ensure 
effective curriculum implementation and use of assessment and promote 
children's progress across the standards described in the Head Start 
Early Learning Outcomes Framework: Ages Birth to Five and applicable 
state early learning and development standards, including for children 
with disabilities and dual language learners, as appropriate.
    (6) Home visitors. A program must ensure home visitors providing 
home-based education services:
    (i) Have a minimum of a home-based CDA credential or comparable 
credential, or equivalent coursework as part of an associate's or 
bachelor's degree; and,
    (ii) Demonstrate competency to plan and implement home-based 
learning experiences that ensure effective implementation of the home 
visiting curriculum and promote children's progress across the standards 
described in the Head Start Early Learning Outcomes Framework: Ages 
Birth to Five, including for children with disabilities and dual 
language learners, as appropriate, and to build respectful, culturally 
responsive, and trusting relationships with families.
    (7) Family services staff qualification requirements. A program must 
ensure staff who work directly with families on the family partnership 
process hired after November 7, 2016, have within eighteen months of 
hire, at a minimum, a credential or certification in social work, human 
services, family services, counseling or a related field.
    (8) Health professional qualification requirements. (i) A program 
must ensure health procedures are performed only by a licensed or 
certified health professional.
    (ii) A program must ensure all mental health consultants are 
licensed or certified mental health professionals. A program must use 
mental health consultants with knowledge of and experience in serving 
young children and

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their families, if available in the community.
    (iii) A program must use staff or consultants to support nutrition 
services who are registered dieticians or nutritionists with appropriate 
qualifications.
    (f) Coaches. A program must ensure coaches providing the services 
described in Sec.  1302.92(c) have a minimum of a baccalaureate degree 
in early childhood education or a related field.



Sec.  1302.92  Training and professional development.

    (a) A program must provide to all new staff, consultants, and 
volunteers an orientation that focuses on, at a minimum, the goals and 
underlying philosophy of the program and on the ways they are 
implemented.
    (b) A program must establish and implement a systematic approach to 
staff training and professional development designed to assist staff in 
acquiring or increasing the knowledge and skills needed to provide high-
quality, comprehensive services within the scope of their job 
responsibilities, and attached to academic credit as appropriate. At a 
minimum, the system must include:
    (1) Staff completing a minimum of 15 clock hours of professional 
development per year. For teaching staff, such professional development 
must meet the requirements described in section 648A(a)(5) of the Act.
    (2) Training on methods to handle suspected or known child abuse and 
neglect cases, that comply with applicable federal, state, local, and 
tribal laws;
    (3) Training for child and family services staff on best practices 
for implementing family engagement strategies in a systemic way, as 
described throughout this part;
    (4) Training for child and family services staff, including staff 
that work on family services, health, and disabilities, that builds 
their knowledge, experience, and competencies to improve child and 
family outcomes; and,
    (5) Research-based approaches to professional development for 
education staff, that are focused on effective curricula implementation, 
knowledge of the content in Head Start Early Learning Outcomes 
Framework: Ages Birth to Five, partnering with families, supporting 
children with disabilities and their families, providing effective and 
nurturing adult-child interactions, supporting dual language learners as 
appropriate, addressing challenging behaviors, preparing children and 
families for transitions (as described in subpart G of this part), and 
use of data to individualize learning experiences to improve outcomes 
for all children.
    (c) A program must implement a research-based, coordinated coaching 
strategy for education staff that:
    (1) Assesses all education staff to identify strengths, areas of 
needed support, and which staff would benefit most from intensive 
coaching;
    (2) At a minimum, provides opportunities for intensive coaching to 
those education staff identified through the process in paragraph (c)(1) 
of this section, including opportunities to be observed and receive 
feedback and modeling of effective teacher practices directly related to 
program performance goals;
    (3) At a minimum, provides opportunities for education staff not 
identified for intensive coaching through the process in paragraph 
(c)(1) of this section to receive other forms of research-based 
professional development aligned with program performance goals;
    (4) Ensures intensive coaching opportunities for the staff 
identified through the process in paragraph (c)(1) of this section that:
    (i) Align with the program's school readiness goals, curricula, and 
other approaches to professional development;
    (ii) Utilize a coach with adequate training and experience in adult 
learning and in using assessment data to drive coaching strategies 
aligned with program performance goals;
    (iii) Provide ongoing communication between the coach, program 
director, education director, and any other relevant staff; and,
    (iv) Include clearly articulated goals informed by the program's 
goals, as described in Sec.  1302.102, and a process for achieving those 
goals; and,
    (5) Establishes policies that ensure assessment results are not used 
to solely determine punitive actions for staff identified as needing 
support, without

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providing time and resources for staff to improve.
    (d) If a program needs to develop or significantly adapt their 
approach to research-based professional development to better meet the 
training needs of education staff, such that it does not include the 
requirements in paragraph (c) of this section, the program must partner 
with external early childhood education professional development 
experts. A program must assess whether the adaptation adequately 
supports staff professional development, consistent with the process 
laid out in subpart J of this part.



Sec.  1302.93  Staff health and wellness.

    (a) A program must ensure each staff member has an initial health 
examination and a periodic re-examination as recommended by their health 
care provider in accordance with state, tribal, or local requirements, 
that include screeners or tests for communicable diseases, as 
appropriate. The program must ensure staff do not, because of 
communicable diseases, pose a significant risk to the health or safety 
of others in the program that cannot be eliminated or reduced by 
reasonable accommodation, in accordance with the Americans with 
Disabilities Act and section 504 of the Rehabilitation Act.
    (b) A program must make mental health and wellness information 
available to staff regarding health issues that may affect their job 
performance, and must provide regularly scheduled opportunities to learn 
about mental health, wellness, and health education.



Sec.  1302.94  Volunteers.

    (a) A program must ensure regular volunteers have been screened for 
appropriate communicable diseases in accordance with state, tribal or 
local laws. In the absence of state, tribal or local law, the Health 
Services Advisory Committee must be consulted regarding the need for 
such screenings.
    (b) A program must ensure children are never left alone with 
volunteers.



          Subpart J_Program Management and Quality Improvement



Sec.  1302.100  Purpose.

    A program must provide management and a process of ongoing 
monitoring and continuous improvement for achieving program goals that 
ensures child safety and the delivery of effective, high-quality program 
services.



Sec.  1302.101  Management system.

    (a) Implementation. A program must implement a management system 
that:
    (1) Ensures a program, fiscal, and human resource management 
structure that provides effective management and oversight of all 
program areas and fiduciary responsibilities to enable delivery of high-
quality services in all of the program services described in subparts C, 
D, E, F, G, and H of this part;
    (2) Provides regular and ongoing supervision to support individual 
staff professional development and continuous program quality 
improvement;
    (3) Ensures budget and staffing patterns that promote continuity of 
care for all children enrolled, allow sufficient time for staff to 
participate in appropriate training and professional development, and 
allow for provision of the full range of services described in subparts 
C, D, E, F, G, and H of this part; and,
    (4) Maintains an automated accounting and record keeping system 
adequate for effective oversight.
    (b) Coordinated approaches. At the beginning of each program year, 
and on an ongoing basis throughout the year, a program must design and 
implement program-wide coordinated approaches that ensure:
    (1) The training and professional development system, as described 
in Sec.  1302.92, effectively supports the delivery and continuous 
improvement of high-quality services;
    (2) The full and effective participation of children who are dual 
language learners and their families, by:
    (i) Utilizing information from the program's community assessment 
about the languages spoken throughout the program service area to 
anticipate child and family needs;
    (ii) Identifying community resources and establishing ongoing 
collaborative

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relationships and partnerships with community organizations consistent 
with the requirements in Sec.  1302.53(a); and,
    (iii) Systematically and comprehensively addressing child and family 
needs by facilitating meaningful access to program services, including, 
at a minimum, curriculum, instruction, staffing, supervision, and family 
partnerships with bilingual staff, oral language assistance and 
interpretation, or translation of essential program materials, as 
appropriate.
    (3) The full and effective participation of all children with 
disabilities, including but not limited to children eligible for 
services under IDEA, by providing services with appropriate facilities, 
program materials, curriculum, instruction, staffing, supervision, and 
partnerships, at a minimum, consistent with section 504 of the 
Rehabilitation Act and the Americans with Disabilities Act; and,
    (4) The management of program data to effectively support the 
availability, usability, integrity, and security of data. A program must 
establish procedures on data management, and have them approved by the 
governing body and policy council, in areas such as quality of data and 
effective use and sharing of data, while protecting the privacy of child 
records in accordance with subpart C of part 1303 of this chapter and 
applicable federal, state, local, and tribal laws.



Sec.  1302.102  Achieving program goals.

    (a) Establishing program goals. A program, in collaboration with the 
governing body and policy council, must establish goals and measurable 
objectives that include:
    (1) Strategic long-term goals for ensuring programs are and remain 
responsive to community needs as identified in their community 
assessment as described in subpart A of this part;
    (2) Goals for the provision of educational, health, nutritional, and 
family and community engagement program services as described in the 
program performance standards to further promote the school readiness of 
enrolled children;
    (3) School readiness goals that are aligned with the Head Start 
Early Learning Outcomes Framework: Ages Birth to Five, state and tribal 
early learning standards, as appropriate, and requirements and 
expectations of schools Head Start children will attend, per the 
requirements of subpart B of part 1304 of this part; and,
    (4) Effective health and safety practices to ensure children are 
safe at all times, per the requirements in Sec. Sec.  1302.47, 
1302.90(b) and (c), 1302.92(c)(1), and 1302.94 and part 1303, subpart F, 
of this chapter.
    (b) Monitoring program performance--(1) Ongoing compliance oversight 
and correction. In order to ensure effective ongoing oversight and 
correction, a program must establish and implement a system of ongoing 
oversight that ensures effective implementation of the program 
performance standards, including ensuring child safety, and other 
applicable federal regulations as described in this part, and must:
    (i) Collect and use data to inform this process;
    (ii) Correct quality and compliance issues immediately, or as 
quickly as possible;
    (iii) Work with the governing body and the policy council to address 
issues during the ongoing oversight and correction process and during 
federal oversight; and,
    (iv) Implement procedures that prevent recurrence of previous 
quality and compliance issues, including previously identified 
deficiencies, safety incidents, and audit findings.
    (2) Ongoing assessment of program goals. A program must effectively 
oversee progress towards program goals on an ongoing basis and annually 
must:
    (i) Conduct a self-assessment that uses program data including 
aggregated child assessment data, and professional development and 
parent and family engagement data as appropriate, to evaluate the 
program's progress towards meeting goals established under paragraph (a) 
of this section, compliance with program performance standards 
throughout the program year, and the effectiveness of the professional 
development and family engagement systems in promoting school readiness;
    (ii) Communicate and collaborate with the governing body and policy

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council, program staff, and parents of enrolled children when conducting 
the annual self-assessment; and,
    (iii) Submit findings of the self-assessment, including information 
listed in paragraph (b)(2)(i) of this section to the responsible HHS 
official.
    (c) Using data for continuous improvement. (1) A program must 
implement a process for using data to identify program strengths and 
needs, develop and implement plans that address program needs, and 
continually evaluate compliance with program performance standards and 
progress towards achieving program goals described in paragraph (a) of 
this section.
    (2) This process must:
    (i) Ensure data is aggregated, analyzed and compared in such a way 
to assist agencies in identifying risks and informing strategies for 
continuous improvement in all program service areas;
    (ii) Ensure child-level assessment data is aggregated and analyzed 
at least three times a year, including for sub-groups, such as dual 
language learners and children with disabilities, as appropriate, except 
in programs operating fewer than 90 days, and used with other program 
data described in paragraph (c)(2)(iv) of this section to direct 
continuous improvement related to curriculum choice and implementation, 
teaching practices, professional development, program design and other 
program decisions, including changing or targeting scope of services; 
and,
    (iii) For programs operating fewer than 90 days, ensures child 
assessment data is aggregated and analyzed at least twice during the 
program operating period, including for subgroups, such as dual language 
learners and children with disabilities, as appropriate, and used with 
other program data described in paragraph (c)(2)(iv) of this section to 
direct continuous improvement related to curriculum choice and 
implementation, teaching practices, professional development, program 
design and other program decisions, including changing or targeting 
scope of services;
    (iv) Use information from ongoing monitoring and the annual self-
assessment, and program data on teaching practice, staffing and 
professional development, child-level assessments, family needs 
assessments, and comprehensive services, to identify program needs, and 
develop and implement plans for program improvement; and,
    (v) Use program improvement plans as needed to either strengthen or 
adjust content and strategies for professional development, change 
program scope and services, refine school readiness and other program 
goals, and adapt strategies to better address the needs of sub-groups.
    (d) Reporting. (1) A program must submit:
    (i) Status reports, determined by ongoing oversight data, to the 
governing body and policy council, at least semi-annually;
    (ii) Reports, as appropriate, to the responsible HHS official 
immediately or as soon as practicable, related to any significant 
incidents affecting the health and safety of program participants, 
circumstances affecting the financial viability of the program, breaches 
of personally identifiable information, or program involvement in legal 
proceedings, any matter for which notification or a report to state, 
tribal, or local authorities is required by applicable law, including at 
a minimum:
    (A) Any reports regarding agency staff or volunteer compliance with 
federal, state, tribal, or local laws addressing child abuse and neglect 
or laws governing sex offenders;
    (B) Incidents that require classrooms or centers to be closed for 
any reason;
    (C) Legal proceedings by any party that are directly related to 
program operations; and,
    (D) All conditions required to be reported under Sec.  1304.12, 
including disqualification from the Child and Adult Care Food Program 
(CACFP) and license revocation.
    (2) Annually, a program must publish and disseminate a report that 
complies with section 644(a)(2) of the Act and includes a summary of a 
program's most recent community assessment, as described in Sec.  
1302.11(b), consistent with privacy protections in subpart C of part 
1303 of this chapter.

[[Page 119]]

    (3) If a program has had a deficiency identified, it must submit, to 
the responsible HHS official, a quality improvement plan as required in 
section 641A(e)(2) of the Act.



Sec.  1302.103  Implementation of program performance standards.

    (a) A current program as of November 7, 2016, must implement a 
program-wide approach for the effective and timely implementation of the 
changes to the program performance standards, including the purchase of 
materials and allocation of staff time, as appropriate.
    (b) A program's approach to implement the changes included in parts 
1301 through 1304 of this chapter must ensure adequate preparation for 
effective and timely service delivery to children and their families 
including, at a minimum, review of community assessment data to 
determine the most appropriate strategy for implementing required 
program changes, including assessing any changes in the number of 
children who can be served, as necessary, the purchase of and training 
on any curriculum, assessment, or other materials, as needed, assessment 
of program-wide professional development needs, assessment of staffing 
patterns, the development of coordinated approaches described in Sec.  
1302.101(b), and the development of appropriate protections for data 
sharing; and children enrolled in the program on November 7, 2016 are 
not displaced during a program year and that children leaving Early Head 
Start or Head Start at the end of the program year following November 7, 
2016 as a result of any slot reductions received services described in 
Sec. Sec.  1302.70 and 1302.72 to facilitate successful transitions to 
other programs.



PART 1303_FINANCIAL AND ADMINISTRATIVE REQUIREMENTS--Table of Contents



Sec.
1303.1 Overview.

                    Subpart A_Financial Requirements

1303.2 Purpose.
1303.3 Other requirements.
1303.4 Federal financial assistance, non-federal match, and waiver 
          requirements.
1303.5 Limitations on development and administrative costs.

                  Subpart B_Administrative Requirements

1303.10 Purpose.
1303.11 Limitations and prohibitions.
1303.12 Insurance and bonding.

         Subpart C_Protections for the Privacy of Child Records

1303.20 Establishing procedures.
1303.21 Program procedures--applicable confidentiality provisions.
1303.22 Disclosures with, and without, parental consent.
1303.23 Parental rights.
1303.24 Maintaining records.

               Subpart D_Delegation of Program Operations

1303.30 Grantee responsibility and accountability.
1303.31 Determining and establishing delegate agencies.
1303.32 Evaluations and corrective actions for delegate agencies.
1303.33 Termination of delegate agencies.

                          Subpart E_Facilities

1303.40 Purpose.
1303.41 Approval of previously purchased facilities.
1303.42 Eligibility to purchase, construct, and renovate facilities.
1303.43 Use of grant funds to pay fees.
1303.44 Applications to purchase, construct, and renovate facilities.
1304.45 Cost-comparison to purchase, construct, and renovate facilities.
1303.46 Recording and posting notices of federal interest.
1303.47 Contents of notices of federal interest.
1303.48 Grantee limitations on federal interest.
1303.49 Protection of federal interest in mortgage agreements.
1303.50 Third party leases and occupancy arrangements.
1303.51 Subordination of the federal interest.
1303.52 Insurance, bonding, and maintenance.
1303.53 Copies of documents.
1303.54 Record retention.
1303.55 Procurement procedures.
1303.56 Inspection of work.

                        Subpart F_Transportation

1303.70 Purpose.
1303.71 Vehicles.
1303.72 Vehicle operation.
1303.73 Trip routing.

[[Page 120]]

1303.74 Safety procedures.
1303.75 Children with disabilities.

    Authority: 42 U.S.C. 9801 et seq.

    Source: 81 FR 61412, Sept. 6, 2016, unless otherwise noted.



Sec.  1303.1  Overview.

    Section 641A of the Act requires that the Secretary modify as 
necessary program performance standards including administrative and 
financial management standards (section 641A(a)(1)(C)). This part 
specifies the financial and administrative requirements of agencies. 
Subpart A of this part outlines the financial requirements consistent 
with sections 640(b) and 644(b) and (c) of the Act. Subpart B of this 
part specifies the administrative requirements consistent with sections 
644(a)(1), 644(e), 653, 654, 655, 656, and 657A of the Act. Subpart C of 
this part implements the statutory provision at section 641A(b)(4) of 
the Act that directs the Secretary to ensure the confidentiality of any 
personally identifiable data, information, and records collected or 
maintained. Subpart D of this part prescribes regulations for the 
operation of delegate agencies consistent with Section 641(A)(d). 
Subpart E of this part implements the statutory requirements in Section 
644(c), (f) and (g) related to facilities. Subpart F prescribes 
regulations on transportation consistent with section 640(i) of the Act.



                    Subpart A_Financial Requirements



Sec.  1303.2  Purpose.

    This subpart establishes regulations applicable to program 
administration and grants management for all grants under the Act.



Sec.  1303.3  Other requirements.

    The following chart includes HHS regulations that apply to all 
grants made under the Act:

------------------------------------------------------------------------
            Cite                                 Title
------------------------------------------------------------------------
45 CFR part 16..............  Department grant appeals process.
45 CFR part 30..............  HHS Standards and Procedures for Claims
                               collection.
45 CFR part 46..............  Protection of human subjects.
45 CFR part 75..............  Uniform Administrative Requirements, Cost
                               Principles, and Audit Requirements for
                               Federal Awards.
45 CFR part 80..............  Nondiscrimination under programs receiving
                               federal assistance through the Department
                               of Health and Human Services--
                               Effectuation of title VI and VII of the
                               Civil Rights Act of 1964.
45 CFR part 81..............  Practice and procedure for hearings under
                               part 80.
45 CFR part 84..............  Nondiscrimination on the basis of handicap
                               in federally assisted programs.
45 CFR part 87..............  Equal treatment for faith based
                               organizations.
2 CFR part 170..............  FFATA Sub-award and executive
                               compensation.
2 CFR 25.110................  CCR/DUNS requirement.
------------------------------------------------------------------------



Sec.  1303.4  Federal financial assistance, non-federal match, 
and waiver requirements.

    In accordance with section 640(b) of the Act, federal financial 
assistance to a grantee will not exceed 80 percent of the approved total 
program costs. A grantee must contribute 20 percent as non-federal match 
each budget period. The responsible HHS official may approve a waiver of 
all or a portion of the non-federal match requirement on the basis of 
the grantee's written application submitted for the budget period and 
any supporting evidence the responsible HHS official requires. In 
deciding whether to grant a waiver, the responsible HHS official will 
consider the circumstances specified at section 640(b) of the Act and 
whether the grantee has made a reasonable effort to comply with the non-
federal match requirement.



Sec.  1303.5  Limitations on development and administrative costs.

    (a) Limitations. (1) Costs to develop and administer a program 
cannot be excessive or exceed 15 percent of the total approved program 
costs. Allowable costs to develop and administer a Head Start program 
cannot exceed 15 percent of the total approved program costs, which 
includes both federal costs and non-federal match, unless the 
responsible HHS official grants a waiver under paragraph (b) of this 
section that

[[Page 121]]

approves a higher percentage in order to carry out the purposes of the 
Act.
    (2) To assess total program costs and determine whether a grantee 
meets this requirement, the grantee must:
    (i) Determine the costs to develop and administer its program, 
including the local costs of necessary resources;
    (ii) Categorize total costs as development and administrative or 
program costs;
    (iii) Identify and allocate the portion of dual benefits costs that 
are for development and administration;
    (iv) Identify and allocate the portion of indirect costs that are 
for development and administration versus program costs; and,
    (v) Delineate all development and administrative costs in the grant 
application and calculate the percentage of total approved costs 
allocated to development and administration.
    (b) Waivers. (1) The responsible HHS official may grant a waiver for 
each budget period if a delay or disruption to program services is 
caused by circumstances beyond the agency's control, or if an agency is 
unable to administer the program within the 15 percent limitation and if 
the agency can demonstrate efforts to reduce its development and 
administrative costs.
    (2) If at any time within the grant funding cycle, a grantee 
estimates development and administration costs will exceed 15 percent of 
total approved costs, it must submit a waiver request to the responsible 
HHS official that explains why costs exceed the limit, that indicates 
the time period the waiver will cover, and that describes what the 
grantee will do to reduce its development and administrative costs to 
comply with the 15 percent limit after the waiver period.



                  Subpart B_Administrative Requirements



Sec.  1303.10  Purpose.

    A grantee must observe standards of organization, management, and 
administration that will ensure, so far as reasonably possible, that all 
program activities are conducted in a manner consistent with the 
purposes of the Act and the objective of providing assistance 
effectively, efficiently, and free of any taint of partisan political 
bias or personal or family favoritism.



Sec.  1303.11  Limitations and prohibitions.

    An agency must adhere to sections 644(e), 644(g)(3), 653, 654, 655, 
656, and 657A of the Act. These sections pertain to union organizing, 
the Davis-Bacon Act, limitations on compensation, nondiscrimination, 
unlawful activities, political activities, and obtaining parental 
consent.



Sec.  1303.12  Insurance and bonding.

    An agency must have an ongoing process to identify risks and have 
cost-effective insurance for those identified risks; a grantee must 
require the same for its delegates. The agency must specifically 
consider the risk of accidental injury to children while participating 
in the program. The grantee must submit proof of appropriate coverage in 
its initial application for funding. The process of identifying risks 
must also consider the risk of losses resulting from fraudulent acts by 
individuals authorized to disburse Head Start funds. Consistent with 45 
CFR part 75, if the agency lacks sufficient coverage to protect the 
federal government's interest, the agency must maintain adequate 
fidelity bond coverage.



         Subpart C_Protections for the Privacy of Child Records



Sec.  1303.20  Establishing procedures.

    A program must establish procedures to protect the confidentiality 
of any personally identifiable information (PII) in child records.



Sec.  1303.21  Program procedures--applicable confidentiality provisions.

    (a) If a program is an educational agency or institution that 
receives funds under a program administered by the Department of 
Education and therefore is subject to the confidentiality provisions 
under the Family Educational Rights and Privacy Act (FERPA), then it 
must comply with those confidentiality provisions of FERPA instead of 
the provisions in this subpart.
    (b) If a program serves a child who is referred to, or found 
eligible for services under, IDEA, then a program must

[[Page 122]]

comply with the applicable confidentiality provisions in Part B or Part 
C of IDEA to protect the PII in records of those children, and, 
therefore, the provisions in this subpart do not apply to those 
children.



Sec.  1303.22  Disclosures with, and without, parental consent.

    (a) Disclosure with parental consent. (1) Subject to the exceptions 
in paragraphs (b) and (c) of this section, the procedures to protect PII 
must require the program to obtain a parent's written consent before the 
program may disclose such PII from child records.
    (2) The procedures to protect PII must require the program to ensure 
the parent's written consent specifies what child records may be 
disclosed, explains why the records will be disclosed, and identifies 
the party or class of parties to whom the records may be disclosed. The 
written consent must be signed and dated.
    (3) ``Signed and dated written consent'' under this part may include 
a record and signature in electronic form that:
    (i) Identifies and authenticates a particular person as the source 
of the electronic consent; and,
    (ii) Indicates such person's approval of the information.
    (4) The program must explain to the parent that the granting of 
consent is voluntary on the part of the parent and may be revoked at any 
time. If a parent revokes consent, that revocation is not retroactive 
and therefore it does not apply to an action that occurred before the 
consent was revoked.
    (b) Disclosure without parental consent but with parental notice and 
opportunity to refuse. The procedures to protect PII must allow the 
program to disclose such PII from child records without parental consent 
if the program notifies the parent about the disclosure, provides the 
parent, upon the parent's request, a copy of the PII from child records 
to be disclosed in advance, and gives the parent an opportunity to 
challenge and refuse disclosure of the information in the records, 
before the program forwards the records to officials at a program, 
school, or school district in which the child seeks or intends to enroll 
or where the child is already enrolled so long as the disclosure is 
related to the child's enrollment or transfer.
    (c) Disclosure without parental consent. The procedures to protect 
PII must allow the program to disclose such PII from child records 
without parental consent to:
    (1) Officials within the program or acting for the program, such as 
contractors and subrecipients, if the official provides services for 
which the program would otherwise use employees, the program determines 
it is necessary for Head Start services, and the program maintains 
oversight with respect to the use, further disclosure, and maintenance 
of child records, such as through a written agreement;
    (2) Officials within the program, acting for the program, or from a 
federal or state entity, in connection with an audit or evaluation of 
education or child development programs, or for enforcement of or 
compliance with federal legal requirements of the program; provided the 
program maintains oversight with respect to the use, further disclosure, 
and maintenance of child records, such as through a written agreement, 
including the destruction of the PII when no longer needed for the 
purpose of the disclosure, except when the disclosure is specifically 
authorized by federal law or by the responsible HHS official;
    (3) Officials within the program, acting for the program, or from a 
federal or state entity, to conduct a study to improve child and family 
outcomes, including improving the quality of programs, for, or on behalf 
of, the program, provided the program maintains oversight with respect 
to the use, further disclosure, and maintenance of child records, such 
as through a written agreement, including the destruction of the PII 
when no longer needed for the purpose of the disclosure;
    (4) Appropriate parties in order to address a disaster, health or 
safety emergency during the period of the emergency, or a serious health 
and safety risk such as a serious food allergy, if the program 
determines that disclosing the PII from child records is necessary to 
protect the health or safety of children or other persons;

[[Page 123]]

    (5) Comply with a judicial order or lawfully issued subpoena, 
provided the program makes a reasonable effort to notify the parent 
about all such subpoenas and court orders in advance of the compliance 
therewith, unless:
    (i) A court has ordered that neither the subpoena, its contents, nor 
the information provided in response be disclosed;
    (ii) The disclosure is in compliance with an ex parte court order 
obtained by the United States Attorney General (or designee not lower 
than an Assistant Attorney General) concerning investigations or 
prosecutions of an offense listed in 18 U.S.C. 2332b(g)(5)(B) or an act 
of domestic or international terrorism as defined in 18 U.S.C. 2331.
    (iii) A parent is a party to a court proceeding directly involving 
child abuse and neglect (as defined in section 3 of the Child Abuse 
Prevention and Treatment Act (42 U.S.C. 5101)) or dependency matters, 
and the order is issued in the context of that proceeding, additional 
notice to the parent by the program is not required; or,
    (iv) A program initiates legal action against a parent or a parent 
initiates legal action against a program, then a program may disclose to 
the court, also without a court order or subpoena, the child records 
relevant for the program to act as plaintiff or defendant.
    (6) The Secretary of Agriculture or an authorized representative 
from the Food and Nutrition Service to conduct program monitoring, 
evaluations, and performance measurements for the Child and Adult Care 
Food Program under the Richard B. Russell National School Lunch Act or 
the Child Nutrition Act of 1966, if the results will be reported in an 
aggregate form that does not identify any individual: Provided, that any 
data collected must be protected in a manner that will not permit the 
personal identification of students and their parents by other than the 
authorized representatives of the Secretary of Agriculture and any PII 
must be destroyed when the data are no longer needed for program 
monitoring, evaluations, and performance measurements;
    (7) A caseworker or other representative from a state, local, or 
tribal child welfare agency, who has the right to access a case plan for 
a child who is in foster care placement, when such agency is legally 
responsible for the child's care and protection, under state or tribal 
law, if the agency agrees in writing to protect PII, to use information 
from the child's case plan for specific purposes intended of addressing 
the child's needs, and to destroy information that is no longer needed 
for those purposes; and,
    (8) Appropriate parties in order to address suspected or known child 
maltreatment and is consistent with applicable federal, state, local, 
and tribal laws on reporting child abuse and neglect.
    (d) Written agreements. When a program establishes a written 
agreement with a third party, the procedures to protect such PII must 
require the program to annually review and, if necessary, update the 
agreement. If the third party violates the agreement, then the program 
may:
    (1) Provide the third party an opportunity to self-correct; or,
    (2) Prohibit the third party from access to records for a set period 
of time as established by the programs governing body and policy 
council.
    (e) Annual notice. The procedures to protect PII must require the 
program to annually notify parents of their rights in writing described 
in this subpart and applicable definitions in part 1305 of this chapter, 
and include in that notice a description of the types of PII that may be 
disclosed, to whom the PII may be disclosed, and what may constitute a 
necessary reason for the disclosure without parental consent as 
described in paragraph (c) of this section.
    (f) Limit on disclosing PII. A program must only disclose the 
information that is deemed necessary for the purpose of the disclosure.



Sec.  1303.23  Parental rights.

    (a) Inspect record. (1) A parent has the right to inspect child 
records.
    (2) If the parent requests to inspect child records, the program 
must make the child records available within a reasonable time, but no 
more than 45 days after receipt of request.
    (3) If a program maintains child records that contain information on 
more than one child, the program must

[[Page 124]]

ensure the parent only inspects information that pertains to the 
parent's child.
    (4) The program shall not destroy a child record with an outstanding 
request to inspect and review the record under this section.
    (b) Amend record. (1) A parent has the right to ask the program to 
amend information in the child record that the parent believes is 
inaccurate, misleading, or violates the child's privacy.
    (2) The program must consider the parent's request and, if the 
request is denied, render a written decision to the parent within a 
reasonable time that informs the parent of the right to a hearing.
    (c) Hearing. (1) If the parent requests a hearing to challenge 
information in the child record, the program must schedule a hearing 
within a reasonable time, notify the parent, in advance, about the 
hearing, and ensure the person who conducts the hearing does not have a 
direct interest in its outcome.
    (2) The program must ensure the hearing affords the parent a full 
and fair opportunity to present evidence relevant to the issues.
    (3) If the program determines from evidence presented at the hearing 
that the information in the child records is inaccurate, misleading, or 
violates the child's privacy, the program must either amend or remove 
the information and notify the parent in writing.
    (4) If the program determines from evidence presented at the hearing 
that information in the child records is accurate, does not mislead, or 
otherwise does not violate the child's privacy, the program must inform 
the parent of the right to place a statement in the child records that 
either comments on the contested information or that states why the 
parent disagrees with the program's decision, or both.
    (d) Right to copy of record. The program must provide a parent, free 
of charge, an initial copy of child records disclosed to third parties 
with parental consent and, upon parent request, an initial copy of child 
records disclosed to third parties, unless the disclosure was for a 
court that ordered neither the subpoena, its contents, nor the 
information furnished in response be disclosed.
    (e) Right to inspect written agreements. A parent has the right to 
review any written agreements with third parties.



Sec.  1303.24  Maintaining records.

    (a) A program must maintain child records in a manner that ensures 
only parents, and officials within the program or acting on behalf of 
the program have access, and such records must be destroyed within a 
reasonable timeframe after such records are no longer needed or required 
to be maintained.
    (b) A program must maintain, with the child records, for as long as 
the records are maintained, information on all individuals, agencies, or 
organizations to whom a disclosure of PII from the child records was 
made (except for program officials and parents) and why the disclosure 
was made. If a program uses a web-based data system to maintain child 
records, the program must ensure such child records are adequately 
protected and maintained according to current industry security 
standards.
    (c) If a parent places a statement in the child record, the program 
must maintain the statement with the contested part of the child record 
for as long as the program maintains the record and, disclose the 
statement whenever it discloses the portion of the child record to which 
the statement relates.



               Subpart D_Delegation of Program Operations



Sec.  1303.30  Grantee responsibility and accountability.

    A grantee is accountable for the services its delegate agencies 
provide. The grantee supports, oversees and ensures delegate agencies 
provide high-quality services to children and families and meet all 
applicable Head Start requirements. The grantee can only terminate a 
delegate agency if the grantee shows cause why termination is necessary 
and provides a process for delegate agencies to appeal termination 
decisions. The grantee retains legal responsibility and authority and 
bears financial accountability for the program when services are 
provided by delegate agencies.

[[Page 125]]



Sec.  1303.31  Determining and establishing delegate agencies.

    (a) If a grantee enters into an agreement with another entity to 
serve children, the grantee must determine whether the agreement meets 
the definition of ``delegate agency'' in section 637(3) of the Act.
    (b) A grantee must not award a delegate agency federal financial 
assistance unless there is a written agreement and the responsible HHS 
official approves the agreement before the grantee delegates program 
operations.



Sec.  1303.32  Evaluations and corrective actions for delegate agencies.

    A grantee must evaluate and ensure corrective action for delegate 
agencies according to section 641A(d) of the Act.



Sec.  1303.33  Termination of delegate agencies.

    (a) If a grantee shows cause why termination is appropriate or 
demonstrates cost effectiveness, the grantee may terminate a delegate 
agency's contract.
    (b) The grantee's decision to terminate must not be arbitrary or 
capricious.
    (c) The grantee must establish a process for defunding a delegate 
agency, including an appeal of a defunding decision and must ensure the 
process is fair and timely.
    (d) The grantee must notify the responsible HHS official about the 
appeal and its decision.



                          Subpart E_Facilities



Sec.  1303.40  Purpose.

    This subpart prescribes what a grantee must establish to show it is 
eligible to purchase, construct and renovate facilities as outlined in 
section 644(c), (f) and (g) of the Act. It explains how a grantee may 
apply for funds, details what measures a grantee must take to protect 
federal interest in facilities purchased, constructed or renovated with 
grant funds, and concludes with other administrative provisions. This 
subpart applies to major renovations. It only applies to minor 
renovations and repairs, when they are included with a purchase 
application and are part of purchase costs.



Sec.  1303.41  Approval of previously purchased facilities.

    If a grantee purchased a facility after December 31, 1986, and seeks 
to use grant funds to continue to pay purchase costs for the facility or 
to refinance current indebtedness and use grant funds to service the 
resulting debt, the grantee may apply for funds to meet those costs. The 
grantee must submit an application that conforms to requirements in this 
part and in the Act to the responsible HHS official. If the responsible 
HHS official approves the grantee's application, Head Start funds may be 
used to pay ongoing purchase costs, which include principal and interest 
on approved loans.



Sec.  1303.42  Eligibility to purchase, construct, and renovate facilities.

    (a) Preliminary eligibility. (1) Before a grantee can apply for 
funds to purchase, construct, or renovate a facility under Sec.  
1303.44, it must establish that:
    (i) The facility will be available to Indian tribes, or rural or 
other low-income communities;
    (ii) The proposed purchase, construction or major renovation is 
within the grantee's designated service area; and,
    (iii) The proposed purchase, construction or major renovation is 
necessary because the lack of suitable facilities in the grantee's 
service area will inhibit the operation of the program.
    (2) If a program applies to construct a facility, that the 
construction of such facility is more cost-effective than the purchase 
of available facilities or renovation.
    (b) Proving a lack of suitable facilities. To satisfy paragraph 
(a)(1)(iii) of this section, the grantee must have a written statement 
from an independent real estate professional familiar with the 
commercial real estate market in the grantee's service area, that 
includes factors considered and supports how the real estate 
professional determined there are no other suitable facilities in the 
area.



Sec.  1303.43  Use of grant funds to pay fees.

    A grantee may submit a written request to the responsible HHS 
official for reasonable fees and costs necessary to determine 
preliminary eligibility

[[Page 126]]

under Sec.  1303.42 before it submits an application under Sec.  
1303.44. If the responsible HHS official approves the grantee's 
application, the grantee may use federal funds to pay fees and costs.



Sec.  1303.44  Applications to purchase, construct, and renovate facilities.

    (a) Application requirements. If a grantee is preliminarily eligible 
under Sec.  1303.42 to apply for funds to purchase, construct, or 
renovate a facility, it must submit to the responsible HHS official:
    (1) A statement that explains the anticipated effect the proposed 
purchase, construction or renovation has had or will have on program 
enrollment, activities and services, and how it determined what the 
anticipated effect would be;
    (2) A deed or other document showing legal ownership of the real 
property where facilities activity is proposed, legal description of the 
facility site, and an explanation why the location is appropriate for 
the grantee's service area;
    (3) Plans and specifications for the facility, including square 
footage, structure type, the number of rooms the facility will have or 
has, how the rooms will be used, where the structure will be positioned 
or located on the building site, and whether there is space available 
for outdoor play and for parking;
    (4) Certification by a licensed engineer or architect that the 
facility is, or will be upon completion, structurally sound and safe for 
use as a Head Start facility and that the facility complies, or will 
comply upon completion, with local building codes, applicable child care 
licensing requirements, the accessibility requirements of the Americans 
with Disabilities Act, section 504 of the Rehabilitation Act of 1973, 
the Flood Disaster Protection Act of 1973, and the National Historic 
Preservation Act of 1966;
    (5) A description of proposed renovations or repairs to make the 
facility suitable for program activities, and plans and specification 
that describe the facility after renovation or repair;
    (6) A proposed schedule that details when the grantee will acquire, 
renovate, repair and occupy the facility;
    (7) An estimate by a licensed independent certified appraiser of the 
facility's fair market value after proposed purchase and associated 
repairs and renovations construction, or major renovation is completed 
is required for all facilities activities except for major renovations 
to leased property;
    (8) The cost comparison described in Sec.  1303.45;
    (9) A statement that shows what share of the purchase, construction, 
or major renovation will be paid with grant funds and what the grantee 
proposes to contribute as a nonfederal match to the purchase, 
construction or major renovation;
    (10) A statement from a lender, if a grantee applies to use Head 
Start funds to continue purchase on a facility or refinance existing 
debt on a facility that indicates the lender is willing to comply with 
Sec.  1303.49;
    (11) The terms of any proposed or existing loan(s) related to 
purchase, construction or major renovation of the facility, including 
copies of any funding commitment letters, mortgages, promissory notes, 
potential security agreements to be entered into, information on all 
other sources of funding, construction or major renovation, and any 
restrictions or conditions imposed by other funding sources;
    (12) A Phase I environmental site assessment that describes the 
environmental condition of the proposed facility site and any structures 
on the site;
    (13) A description of the efforts by the grantee to coordinate or 
collaborate with other providers in the community to seek assistance, 
including financial assistance, prior to the use of funds under this 
section; and,
    (14) Any additional information the responsible HHS official may 
require.
    (b) Additional requirements for leased properties. (1) If a grantee 
applies to renovate leased property, it must submit to the responsible 
HHS official information described in paragraph (a) of this section, a 
copy of the existing or proposed lease agreement, and the landlord or 
lessor's consent.
    (2) If a grantee applies to purchase a modular unit it intends to 
site on leased property or on other property the grantee does not own, 
the grantee

[[Page 127]]

must submit to the responsible HHS official information described in 
paragraph (a) of this section and a copy of the proposed lease or other 
occupancy agreement that will allow the grantee access to the modular 
unit for at least 15 years.
    (c) Non-federal match. Any non-federal match associated with 
facilities activities becomes part of the federal share of the facility.



Sec.  1303.45  Cost-comparison to purchase, construct, and renovate facilities.

    (a) Cost comparison. (1) If a grantee proposes to purchase, 
construct, or renovate a facility, it must submit a detailed cost 
estimate of the proposed activity, compare the costs associated with the 
proposed activity to other available alternatives in the service area, 
and provide any additional information the responsible HHS official 
requests. The grantee must demonstrate that the proposed activity will 
result in savings when compared to the costs that would be incurred to 
acquire the use of an alternative facility to carry out program.
    (2) In addition to requirements in paragraph (a)(1) of this section, 
the grantee must:
    (i) Identify who owns the property;
    (ii) List all costs related to the purchase, construction, or 
renovation;
    (iii) Identify costs over the structure's useful life, which is at 
least 20 years for a facility that the grantee purchased or constructed 
and at least 15 years for a modular unit the grantee renovated, and 
deferred costs, including mortgage balloon payments, as costs with 
associated due dates; and,
    (iv) Demonstrate how the proposed purchase, construction, or major 
renovation is consistent with program management and fiscal goals, 
community needs, enrollment and program options and how the proposed 
facility will support the grantee as it provides quality services to 
children and families.
    (b) Continue purchase or refinance. To use funds to continue 
purchase on a facility or to refinance an existing indebtedness, the 
grantee must compare the costs of continued purchase against the cost of 
purchasing a comparable facility in the service area over the remaining 
years of the facility's useful life. The grantee must demonstrate that 
the proposed activity will result in savings when compared to the cost 
that would be incurred to acquire the use of an alternative facility to 
carry out the program.
    (c) Multi-purpose use. If the grantee intends to use a facility to 
operate a Head Start program and for another purpose, it must disclose 
what percentage of the facility will be used for non-Head Start 
activities, along with costs associated with those activities, in 
accordance with applicable cost principles.



Sec.  1303.46  Recording and posting notices of federal interest.

    (a) Survival of federal interest. A grantee that receives funds 
under this subpart must file notices of federal interest as set forth in 
paragraph (b) of this section. Federal interest cannot be defeated by a 
grantee's failure to file a notice of federal interest.
    (b) Recording notices of federal interest. (1) If a grantee uses 
federal funds to purchase real property or a facility, excluding modular 
units, appurtenant to real property, it must record a notice of federal 
interest in the official real property records for the jurisdiction 
where the facility is or will be located. The grantee must file the 
notice of federal interest as soon as it uses Head Start funds to either 
fully or partially purchase a facility or real property where a facility 
will be constructed or as soon as it receives permission from the 
responsible HHS official to use Head Start funds to continue purchase on 
a facility.
    (2) If a grantee uses federal funds in whole or in part to construct 
a facility, it must record the notice of federal interest in the 
official real property records for the jurisdiction in which the 
facility is located as soon as it receives the notice of award to 
construct the facility.
    (3) If a grantee uses federal funds to renovate a facility that it, 
or a third party owns, the grantee must record the notice of federal 
interest in the official real property records for the jurisdiction in 
which the facility is located as soon as it receives the notice of award 
to renovate the facility.

[[Page 128]]

    (4) If a grantee uses federal funds in whole or in part to purchase 
a modular unit or to renovate a modular unit, the grantee must post the 
notice of federal interest, in clearly visible locations, on the 
exterior of the modular unit and inside the modular unit.



Sec.  1303.47  Contents of notices of federal interest.

    (a) Facility and real property a grantee owns. A notice of federal 
interest for a facility, other than a modular unit, and real property 
the grantee owns or will own, must include:
    (1) The grantee's correct legal name and current mailing address;
    (2) A legal description of the real property;
    (3) Grant award number, amount and date of initial facilities 
funding award or initial use of base grant funds for ongoing purchase or 
mortgage payments;
    (4) A statement that the notice of federal interest includes funds 
awarded in grant award(s) and any Head Start funds subsequently used to 
purchase, construct or to make major renovations to the real property;
    (5) A statement that the facility and real property will only be 
used for purposes consistent with the Act and applicable Head Start 
regulations;
    (6) A statement that the facility and real property will not be 
mortgaged or used as collateral, sold or otherwise transferred to 
another party, without the responsible HHS official's written 
permission;
    (7) A statement that the federal interest cannot be subordinated, 
diminished, nullified or released through encumbrance of the property, 
transfer of the property to another party or any other action the 
grantee takes without the responsible HHS official's written permission;
    (8) A statement that confirms that the agency's governing body 
received a copy of the notice of federal interest prior to filing and 
the date the governing body was provided with a copy; and,
    (9) The name, title, and signature of the person who drafted the 
notice.
    (b) Facility leased by a grantee. (1) A notice of federal interest 
for a leased facility, excluding a modular unit, on land the grantee 
does not own, must be recorded in the official real property records for 
the jurisdiction where the facility is located and must include:
    (i) The grantee's correct legal name and current mailing address;
    (ii) A legal description of affected real property;
    (iii) The grant award number, amount and date of initial funding 
award or initial use of base grant funds for major renovation;
    (iv) Acknowledgement that the notice of federal interest includes 
any Head Start funds subsequently used to make major renovations on the 
affected real property;
    (v) A statement the facility and real property will only be used for 
purposes consistent with the Act and applicable Head Start regulations; 
and,
    (vi) A lease or occupancy agreement that includes the required 
information from paragraphs (b)(1)(i) through (v) of this section may be 
recorded in the official real property records for the jurisdiction 
where the facility is located to serve as a notice of federal interest.
    (2) If a grantee cannot file the lease or occupancy agreement 
described in paragraph (b)(1)(vi) of this section in the official real 
property records for the jurisdiction where the facility is located, it 
may file an abstract. The abstract must include the names and addresses 
of parties to the lease or occupancy agreement, terms of the lease or 
occupancy agreement, and information described in paragraphs (a)(1) 
through (9) of this section.
    (c) Modular units. A notice of federal interest on a modular unit 
the grantee purchased or renovated must be visible and clearly posted on 
the exterior of the modular and inside the modular and must include:
    (1) The grantee's correct legal name and current mailing address;
    (2) The grant award number, amount and date of initial funding award 
or initial use of base grant funds to purchase or renovate;
    (3) A statement that the notice of federal interest includes any 
Head Start funds subsequently used for major renovations to the modular 
unit;

[[Page 129]]

    (4) A statement that the facility and real property will only be 
used for purposes consistent with the Act and applicable Head Start 
regulations;
    (5) A statement that the modular unit will not be mortgaged or used 
as collateral, sold or otherwise transferred to another party, without 
the responsible HHS official's written permission;
    (6) A statement that the federal interest cannot be subordinated, 
diminished, nullified or released through encumbrance of the property, 
transfer to another party, or any other action the grantee takes without 
the responsible HHS official's written permission;
    (7) A statement that the modular unit cannot be moved to another 
location without the responsible HHS official's written permission;
    (8) A statement that confirms that the agency's governing body has 
received a copy of the filed notice of federal interest and the date the 
governing body was provided with a copy; and,
    (9) The name, title, and signature of the person who completed the 
notice for the grantee agency.



Sec.  1303.48  Grantee limitations on federal interest.

    (a) A grantee cannot mortgage, use as collateral for a credit line 
or for other loan obligations, or, sell or transfer to another party, a 
facility, real property, or a modular unit it has purchased, constructed 
or renovated with Head Start funds, without the responsible HHS 
official's written permission.
    (b) A grantee must have the responsible HHS official's written 
permission before it can use real property, a facility, or a modular 
unit subject to federal interest for a purpose other than that for which 
the grantee's application was approved.



Sec.  1303.49  Protection of federal interest in mortgage agreements.

    (a) Any mortgage agreement or other security instrument that is 
secured by real property or a modular unit constructed or purchased in 
whole or in part with federal funds or subject to renovation with 
federal funds must:
    (1) Specify that the responsible HHS official can intervene in case 
the grantee defaults on, terminates or withdraws from the agreement;
    (2) Designate the responsible HHS official to receive a copy of any 
notice of default given to the grantee under the terms of the agreement 
and include the regional grants management officer's current address;
    (3) Include a clause that requires any action to foreclose the 
mortgage agreement or security agreement be suspended for 60 days after 
the responsible HHS official receives the default notice to allow the 
responsible HHS official reasonable time to respond;
    (4) Include a clause that preserves the notice of federal interest 
and the grantee's obligation for its federal share if the responsible 
HHS official fails to respond to any notice of default provided under 
this section;
    (5) Include a statement that requires the responsible HHS official 
to be paid the federal interest before foreclosure proceeds are paid to 
the lender, unless the official's rights under the notice of federal 
interest have been subordinated by a written agreement in conformance 
with Sec.  1303.51;
    (6) Include a clause that gives the responsible HHS official the 
right to cure any default under the agreement within the designated 
period to cure the default; and,
    (7) Include a clause that gives the responsible HHS official the 
right to assign or transfer the agreement to another interim or 
permanent grantee.
    (b) A grantee must immediately notify the responsible HHS official 
of any default under an agreement described in paragraph (a) of this 
section.



Sec.  1303.50  Third party leases and occupancy arrangements.

    (a) After November 7, 2016, if a grantee receives federal funds to 
purchase, construct or renovate a facility on real property the grantee 
does not own or to purchase or renovate a modular unit on real property 
the grantee does not own, the grantee must have a lease or other 
occupancy agreement of at least 30 years for purchase or construction of 
a facility and at least 15 years for a major renovation or placement of 
a modular unit.
    (b) The lease or occupancy agreement must:

[[Page 130]]

    (1) Provide for the grantee's right of continued use and occupancy 
of the leased or occupied premises during the entire term of the lease;
    (2) Designate the regional grants management officer to receive a 
copy of any notice of default given to the grantee under the terms of 
the agreement and include the regional grants management officer's 
current address;
    (3) Specify that the responsible HHS official has the right to cure 
any default under the lease or occupancy agreement within the designated 
period to cure default; and,
    (4) Specify that the responsible HHS official has the right to 
transfer the lease to another interim or replacement grantee.



Sec.  1303.51  Subordination of the federal interest.

    Only the responsible HHS official can subordinate federal interest 
to the rights of a lender or other third party. Subordination agreements 
must be in writing and the mortgage agreement or security agreement for 
which subordination is requested must comply with Sec.  1303.49. When 
the amount of federal funds already contributed to the facility exceeds 
the amount to be provided by the lender seeking subordination, the 
federal interest may only be subordinated if the grantee can show that 
funding is not available without subordination of the federal interest.



Sec.  1303.52  Insurance, bonding, and maintenance.

    (a) Purpose. If a grantee uses federal funds to purchase or continue 
purchase on a facility, excluding modular units, the grantee must obtain 
a title insurance policy for the purchase price that names the 
responsible HHS official as an additional loss payee.
    (b) Insurance coverage. (1) If a grantee uses federal funds to 
purchase or continue purchase on a facility or modular unit the grantee 
must maintain physical damage or destruction insurance at the full 
replacement value of the facility, for as long as the grantee owns or 
occupies the facility.
    (2) If a facility is located in an area the National Flood Insurance 
Program defines as high risk, the grantee must maintain flood insurance 
for as long as the grantee owns or occupies the facility.
    (3) A grantee must submit to the responsible HHS official, within 10 
days after coverage begins, proof of insurance coverage required under 
paragraphs (a) and (b) of this section.
    (c) Maintenance. A grantee must keep all facilities purchased or 
constructed in whole or in part with Head Start funds in good repair in 
accordance with all applicable federal, state, and local laws, rules and 
regulations, including Head Start requirements, zoning requirements, 
building codes, health and safety regulations and child care licensing 
standards.



Sec.  1303.53  Copies of documents.

    A grantee must submit to the responsible HHS official, within 10 
days after filing or execution, copies of deeds, leases, loan 
instruments, mortgage agreements, notices of federal interest, and other 
legal documents related to the use of Head Start funds for purchase, 
construction, major renovation, or the discharge of any debt secured by 
the facility.



Sec.  1303.54  Record retention.

    A grantee must retain records pertinent to the lease, purchase, 
construction or renovation of a facility funded in whole or in part with 
Head Start funds, for as long as the grantee owns or occupies the 
facility, plus three years.



Sec.  1303.55  Procurement procedures.

    (a) A grantee must comply with all grants management regulations, 
including specific regulations applicable to transactions in excess of 
the current simplified acquisition threshold, cost principles, and its 
own procurement procedures, and must provide, to the maximum extent 
practical, open and full competition.
    (b) A grantee must obtain the responsible HHS official's written 
approval before it uses Head Start funds, in whole or in part, to 
contract construction or renovation services. The grantee must ensure 
these contracts are paid on a lump sum fixed-price basis.
    (c) A grantee must obtain prior written approval from the 
responsible HHS official for contract modifications that

[[Page 131]]

would change the scope or objective of a project or would materially 
alter the costs, by increasing the amount of grant funds needed to 
complete the project.
    (d) A grantee must ensure all construction and renovation contracts 
paid, in whole or in part with Head Start funds contain a clause that 
gives the responsible HHS official or his or her designee access to the 
facility, at all reasonable times, during construction and inspection.



Sec.  1303.56  Inspection of work.

    The grantee must submit to the responsible HHS official a final 
facility inspection report by a licensed engineer or architect within 30 
calendar days after the project is completed. The inspection report must 
certify that the facility complies with local building codes, applicable 
child care licensing requirements, is structurally sound and safe for 
use as a Head Start facility, complies with the access requirements of 
the Americans with Disabilities Act, section 504 of the Rehabilitation 
Act, and the Flood Disaster Protection Act of 1973, and complies with 
National Historic Preservation Act of 1966.



                        Subpart F_Transportation



Sec.  1303.70  Purpose.

    (a) Applicability. This rule applies to all agencies, including 
those that provide transportation services, with the exceptions and 
exclusions provided in this section, regardless of whether such 
transportation is provided directly on agency owned or leased vehicles 
or through arrangement with a private or public transportation provider.
    (b) Providing transportation services. (1) If a program does not 
provide transportation services, either for all or a portion of the 
children, it must provide reasonable assistance, such as information 
about public transit availability, to the families of such children to 
arrange transportation to and from its activities, and provide 
information about these transportation options in recruitment 
announcements.
    (2) A program that provides transportation services must make 
reasonable efforts to coordinate transportation resources with other 
human services agencies in its community in order to control costs and 
to improve the quality and the availability of transportation services.
    (3) A program that provides transportation services must ensure all 
accidents involving vehicles that transport children are reported in 
accordance with applicable state requirements.
    (c) Waiver. (1) A program that provides transportation services must 
comply with all provisions in this subpart. A Head Start program may 
request to waive a specific requirement in this part, in writing, to the 
responsible HHS official, as part of an agency's annual application for 
financial assistance or amendment and must submit any required 
documentation the responsible HHS official deems necessary to support 
the waiver. The responsible HHS official is not authorized to waive any 
requirements with regard to children enrolled in an Early Head Start 
program. A program may request a waiver when:
    (i) Adherence to a requirement in this part would create a safety 
hazard in the circumstances faced by the agency; and,
    (ii) For preschool children, compliance with requirements related to 
child restraint systems at Sec. Sec.  1303.71(d) and 1303.72(a)(1) or 
bus monitors at Sec.  1303.72(a)(4) will result in a significant 
disruption to the program and the agency demonstrates that waiving such 
requirements is in the best interest of the children involved.
    (2) The responsible HHS official is not authorized to waive any 
requirements of the Federal Motor Vehicle Safety Standards (FMVSS) made 
applicable to any class of vehicle under 49 CFR part 571.



Sec.  1303.71  Vehicles.

    (a) Required use of schools buses or allowable alternative vehicles. 
A program, with the exception of transportation services to children 
served under a home-based option, must ensure all vehicles used or 
purchased with grant funds to provide transportation services to 
enrolled children are school buses or allowable alternate vehicles that 
are equipped for use of height- and

[[Page 132]]

weight-appropriate child restraint systems, and that have reverse 
beepers.
    (b) Emergency equipment. A program must ensure each vehicle used in 
providing such services is equipped with an emergency communication 
system clearly labeled and appropriate emergency safety equipment, 
including a seat belt cutter, charged fire extinguisher, and first aid 
kit.
    (c) Auxiliary seating. A program must ensure any auxiliary seating, 
such as temporary or folding jump seats, used in vehicles of any type 
providing such services are built into the vehicle by the manufacturer 
as part of its standard design, are maintained in proper working order, 
and are inspected as part of the annual inspection required under 
paragraph (e)(2)(i) of this section.
    (d) Child restraint systems. A program must ensure each vehicle used 
to transport children receiving such services is equipped for use of 
age-, height- and weight-appropriate child safety restraint systems as 
defined in part 1305 of this chapter.
    (e) Vehicle maintenance. (1) A program must ensure vehicles used to 
provide such services are in safe operating condition at all times.
    (2) The program must:
    (i) At a minimum, conduct an annual thorough safety inspection of 
each vehicle through an inspection program licensed or operated by the 
state;
    (ii) Carry out systematic preventive maintenance on vehicles; and,
    (iii) Ensure each driver implements daily pre-trip vehicle 
inspections.
    (f) New vehicle inspection. A program must ensure bid announcements 
for school buses and allowable alternate vehicles to transport children 
in its program include correct specifications and a clear statement of 
the vehicle's intended use. The program must ensure vehicles are 
examined at delivery to ensure they are equipped in accordance with the 
bid specifications and that the manufacturer's certification of 
compliance with the applicable FMVSS is included with the vehicle.



Sec.  1303.72  Vehicle operation.

    (a) Safety. A program must ensure:
    (1) Each child is seated in a child restraint system appropriate to 
the child's age, height, and weight;
    (2) Baggage and other items transported in the passenger compartment 
are properly stored and secured, and the aisles remain clear and the 
doors and emergency exits remain unobstructed at all times;
    (3) Up-to-date child rosters and lists of the adults each child is 
authorized to be released to, including alternates in case of emergency, 
are maintained and no child is left behind, either at the classroom or 
on the vehicle at the end of the route; and,
    (4) With the exception of transportation services to children served 
under a home-based option, there is at least one bus monitor on board at 
all times, with additional bus monitors provided as necessary.
    (b) Driver qualifications. A program, with the exception of 
transportation services to children served under a home-based option, 
must ensure drivers, at a minimum:
    (1) In states where such licenses are granted, have a valid 
Commercial Driver's License (CDL) for vehicles in the same class as the 
vehicle the driver will operating; and,
    (2) Meet any physical, mental, and other requirements as necessary 
to perform job-related functions with any necessary reasonable 
accommodations.
    (c) Driver application review. In addition to the applicant review 
process prescribed Sec.  1302.90(b) of this chapter, a program, with the 
exception of transportation services to children served under a home-
based option, must ensure the applicant review process for drivers 
includes, at minimum:
    (1) Disclosure by the applicant of all moving traffic violations, 
regardless of penalty;
    (2) A check of the applicant's driving record through the 
appropriate state agency, including a check of the applicant's record 
through the National Driver Register, if available;
    (3) A check that drivers qualify under the applicable driver 
training requirements in the state or tribal jurisdiction; and,
    (4) After a conditional employment offer to the applicant and before 
the applicant begins work as a driver, a

[[Page 133]]

medical examination, performed by a licensed doctor of medicine or 
osteopathy, establishing that the individual possesses the physical 
ability to perform any job-related functions with any necessary 
accommodations.
    (d) Driver training. (1) A program must ensure any person employed 
as a driver receives training prior to transporting any enrolled child 
and receives refresher training each year.
    (2) Training must include:
    (i) Classroom instruction and behind-the-wheel instruction 
sufficient to enable the driver to operate the vehicle in a safe and 
efficient manner, to safely run a fixed route, to administer basic first 
aid in case of injury, and to handle emergency situations, including 
vehicle evacuation, operate any special equipment, such as wheelchair 
lifts, assistance devices or special occupant restraints, conduct 
routine maintenance and safety checks of the vehicle, and maintain 
accurate records as necessary; and,
    (ii) Instruction on the topics listed in Sec.  1303.75 related to 
transportation services for children with disabilities.
    (3) A program must ensure the annual evaluation of each driver of a 
vehicle used to provide such services includes an on-board observation 
of road performance.
    (e) Bus monitor training. A program must train each bus monitor 
before the monitor begins work, on child boarding and exiting 
procedures, how to use child restraint systems, completing any required 
paperwork, how to respond to emergencies and emergency evacuation 
procedures, how to use special equipment, child pick-up and release 
procedures, how to conduct and pre- and post-trip vehicle checks. Bus 
monitors are also subject to staff safety training requirements in Sec.  
1302.47(b)(4) of this chapter including Cardio Pulmonary Resuscitation 
(CPR) and first aid.



Sec.  1303.73  Trip routing.

    (a) A program must consider safety of the children it transports 
when it plans fixed routes.
    (b) A program must also ensure:
    (1) The time a child is in transit to and from the program must not 
exceed one hour unless there is no shorter route available or any 
alternative shorter route is either unsafe or impractical;
    (2) Vehicles are not loaded beyond maximum passenger capacity at any 
time;
    (3) Drivers do not back up or make U-turns, except when necessary 
for safety reasons or because of physical barriers;
    (4) Stops are located to minimize traffic disruptions and to afford 
the driver a good field of view in front of and behind the vehicle;
    (5) When possible, stops are located to eliminate the need for 
children to cross the street or highway to board or leave the vehicle;
    (6) Either a bus monitor or another adult escorts children across 
the street to board or leave the vehicle if curbside pick-up or drop off 
is impossible; and,
    (7) Drivers use alternate routes in the case of hazardous conditions 
that could affect the safety of the children who are being transported, 
such as ice or water build up, natural gas line breaks, or emergency 
road closing.



Sec.  1303.74  Safety procedures.

    (a) A program must ensure children who receive transportation 
services are taught safe riding practices, safety procedures for 
boarding and leaving the vehicle and for crossing the street to and from 
the vehicle at stops, recognition of the danger zones around the 
vehicle, and emergency evacuation procedures, including participating in 
an emergency evacuation drill conducted on the vehicle the child will be 
riding.
    (b) A program that provides transportation services must ensure at 
least two bus evacuation drills in addition to the one required under 
paragraph (a) of this section are conducted during the program year.



Sec.  1303.75  Children with disabilities.

    (a) A program must ensure there are school buses or allowable 
alternate vehicles adapted or designed for transportation of children 
with disabilities available as necessary to transport such children 
enrolled in the program. This requirement does not apply to the 
transportation of children receiving home-based services unless school 
buses or allowable alternate vehicles

[[Page 134]]

are used to transport the other children served under the home-based 
option by the grantee. Whenever possible, children with disabilities 
must be transported in the same vehicles used to transport other 
children enrolled in the Head Start or Early Head Start program.
    (b) A program must ensure special transportation requirements in a 
child's IEP or IFSP are followed, including special pick-up and drop-off 
requirements, seating requirements, equipment needs, any assistance that 
may be required, and any necessary training for bus drivers and 
monitors.



PART 1304_FEDERAL ADMINISTRATIVE PROCEDURES--Table of Contents



  Subpart A_Monitoring, Suspension, Termination, Denial of Refunding, 
                 Reduction in Funding, and Their Appeals

Sec.
1304.1 Purpose.
1304.2 Monitoring.
1304.3 Suspension with notice.
1304.4 Emergency suspension without advance notice.
1304.5 Termination and denial of refunding.
1304.6 Appeal for prospective delegate agencies.
1304.7 Legal fees.

                      Subpart B_Designation Renewal

1304.10 Purpose and scope.
1304.11 Basis for determining whether a Head Start agency will be 
          subject to an open competition.
1304.12 Grantee reporting requirements concerning certain conditions.
1304.13 Requirements to be considered for designation for a five-year 
          period when the existing grantee in a community is not 
          determined to be delivering a high-quality and comprehensive 
          Head Start program and is not automatically renewed.
1304.14 Tribal government consultation under the Designation Renewal 
          System for when an Indian Head Start grant is being considered 
          for competition.
1304.15 Designation request, review and notification process.
1304.16 Use of CLASS: Pre-K instrument in the Designation Renewal 
          System.
1304.17 Flexibility for Head Start Designation Renewal Determinations in 
          Certain Emergencies.

           Subpart C_Selection of Grantees Through Competition

1304.20 Selection among applicants.

   Subpart D_Replacement of American Indian and Alaska Native Grantees

1304.30 Procedure for identification of alternative agency.
1304.31 Requirements of alternative agency.
1304.32 Alternative agency--prohibition.

                  Subpart E_Head Start Fellows Program

1304.40 Purpose.
1304.41 Fellows Program.

    Authority: 42 U.S.C. 9801 et seq.

    Source: 81 FR 61412, Sept. 6, 2016, unless otherwise noted.



  Subpart A_Monitoring, Suspension, Termination, Denial of Refunding, 
                 Reduction in Funding, and Their Appeals



Sec.  1304.1  Purpose.

    (a) Section 641A(c) of the Act requires the Secretary to monitor 
whether a grantee meets program governance, program operations, and 
financial and administrative standards described in this regulation and 
to identify areas for improvements and areas of strength as part of the 
grantee's ongoing self-assessment process. This subpart focuses on the 
monitoring process. It discusses areas of noncompliance, deficiencies, 
and corrective action through quality improvement plans.
    (b) Section 646(a) of the Act requires the Secretary to prescribe 
procedures for notice and appeal for certain adverse actions. This 
subpart establishes rules and procedures to suspend financial assistance 
to a grantee, deny a grantee's application for refunding, terminate, or 
reduce a grantee's assistance under the Act when the grantee improperly 
uses federal funds or fails to comply with applicable laws, regulations, 
policies, instructions, assurances, terms and conditions or, if the 
grantee loses its legal status or financial viability. This subpart does 
not apply to reductions to a grantee's financial assistance based on 
chronic under-enrollment procedures at section

[[Page 135]]

641A(h) of the Act or to matters described in subpart B. This subpart 
does not apply to any administrative action based upon any violation, or 
alleged violation, of title VI of the Civil Rights Act of 1964. Except 
as otherwise provided for in this subpart, the appeals and processes in 
this subpart will be governed by the Departmental Appeals Board 
regulations at 45 CFR part 16.



Sec.  1304.2  Monitoring.

    (a) Areas of noncompliance. If a responsible HHS official determines 
through monitoring, pursuant to section 641(A)(c)(1) and (2) of the Act, 
that a grantee fails to comply with any of the standards described in 
parts 1301, 1302, and 1303 of this chapter, the official will notify the 
grantee promptly in writing, identify the area of noncompliance, and 
specify when the grantee must correct the area of noncompliance.
    (b) Deficiencies. If the Secretary determines that a grantee meets 
one of the criteria for a deficiency, as defined in section 637(2)(C) of 
the Act, the Secretary shall inform the grantee of the deficiency. The 
grantee must correct the deficiency pursuant to section 641A(e)(1)(B) of 
the Act, as the responsible HHS official determines.
    (c) Quality improvement plans. If the responsible HHS official does 
not require the grantee to correct a deficiency immediately as 
prescribed under section 641A(e)(1)(B)(i) of the Act, the grantee must 
submit to the official, for approval, a quality improvement plan that 
adheres to section 641A(e)(2)(A) of the Act.



Sec.  1304.3  Suspension with notice.

    (a) Grounds to suspend financial assistance with notice. If a 
grantee breaches or threatens to breach any requirement stated in 
Sec. Sec.  1304.3 through 1304.5, the responsible HHS official may 
suspend the grantee's financial assistance, in whole or in part, after 
it has given the grantee notice and an opportunity to show cause why 
assistance should not be suspended.
    (b) Notice requirements. (1) The responsible HHS official must 
notify the grantee in writing that ACF intends to suspend financial 
assistance, in whole or in part. The notice must:
    (i) Specify grounds for the suspension;
    (ii) Include the date suspension will become effective;
    (iii) Inform the grantee that it has the opportunity to submit to 
the responsible HHS official, at least seven days before suspension 
becomes effective, any written material it would like the official to 
consider, and to inform the grantee that it may request, in writing, no 
later than seven days after the suspension notice was mailed, to have an 
informal meeting with the responsible HHS official;
    (iv) Invite the grantee to voluntarily correct the deficiency; and,
    (v) Include a copy of this subpart.
    (2) The responsible HHS official must promptly transmit the 
suspension notice to the grantee. The notice becomes effective when the 
grantee receives the notice, when the grantee refuses delivery, or when 
the suspension notice is returned to sender unclaimed.
    (3) The responsible HHS official must send a copy of the suspension 
notice to any delegate agency whose actions or whose failures to act 
substantially caused or contributed to the proposed suspension. The 
responsible HHS official will inform the delegate agency that it is 
entitled to submit written material to oppose the suspension and to 
participate in the informal meeting, if one is held. In addition, the 
responsible HHS official may give notice to the grantee's other delegate 
agencies.
    (4) After the grantee receives the suspension notice, it has three 
days to send a copy of the notice to delegate agencies that would be 
financially affected by a suspension.
    (c) Opportunity to show cause. The grantee may submit to the 
responsible HHS official any written material to show why financial 
assistance should not be suspended. The grantee may also request, in 
writing, to have an informal meeting with the responsible HHS official. 
If the grantee requests an informal meeting, the responsible HHS 
official must schedule the meeting within seven days after the grantee 
receives the suspension notice.
    (d) Extensions. If the responsible HHS official extends the time or 
the date by which a grantee has to make requests

[[Page 136]]

or to submit material, it must notify the grantee in writing.
    (e) Decision. (1) The responsible HHS official will consider any 
written material presented before or during the informal meeting, as 
well as any proof the grantee has adequately corrected what led to 
suspension, and will render a decision within five days after the 
informal meeting. If no informal meeting is held, the responsible HHS 
official will render a decision within five days after it receives 
written material from all concerned parties.
    (2) If the responsible HHS official finds the grantee failed to show 
cause why ACF should not suspend financial assistance, the official may 
suspend financial assistance, in whole or in part, and under terms and 
conditions as he or she deems appropriate.
    (3) A suspension must not exceed 30 days, unless the conditions 
under section 646(a)(5)(B) are applicable or the grantee requests the 
suspension continue for an additional period of time and the responsible 
HHS official agrees.
    (4) The responsible HHS official may appoint an agency to serve as 
an interim grantee to operate the program until the grantee's suspension 
is lifted, or as otherwise provided under section 646(a)(5)(B) of the 
Act.
    (f) Obligations incurred during suspension. New obligations the 
grantee incurs while under suspension are not allowed unless the 
responsible HHS official expressly authorizes them in the suspension 
notice or in an amendment to the suspension notice. Necessary and 
otherwise allowable costs which the grantee could not reasonably avoid 
during the suspension period will be allowed if they result from 
obligations the grantee properly incurred before suspension and not in 
anticipation of suspension or termination. The responsible HHS official 
may allow third-party in-kind contributions applicable to the suspension 
period to satisfy cost sharing or matching requirements.
    (g) Modify or rescind suspension. The responsible HHS official may 
modify or rescind suspension at any time, if the grantee can 
satisfactorily show that it has adequately corrected what led to 
suspension and that it will not repeat such actions or inactions. 
Nothing in this section precludes the HHS official from imposing 
suspension again for additional 30 day periods if the cause of the 
suspension has not been corrected.



Sec.  1304.4  Emergency suspension without advance notice.

    (a) Grounds to suspend financial assistance without advance notice. 
The responsible HHS official may suspend financial assistance, in whole 
or in part, without prior notice and an opportunity to show cause if 
there is an emergency situation, such as a serious risk for substantial 
injury to property or loss of project funds, a federal, state, or local 
criminal statute violation, or harm to staff or participants' health and 
safety.
    (b) Emergency suspension notification requirements. (1) The 
emergency suspension notification must:
    (i) Specify the grounds for the suspension;
    (ii) Include terms and conditions of any full or partial suspension;
    (iii) Inform that grantee it cannot make or incur any new 
expenditures or obligations under suspended portion of the program; and,
    (iv) Advise that within five days after the emergency suspension 
becomes effective, the grantee may request, in writing, an informal 
meeting with the responsible HHS official to show why the basis for the 
suspension was not valid and should be rescinded and that the grantee 
has corrected any deficiencies.
    (2) The responsible HHS official must promptly transmit the 
emergency suspension notification to the grantee that shows the date of 
receipt. The emergency suspension becomes effective upon delivery of the 
notification or upon the date the grantee refuses delivery, or upon 
return of the notification unclaimed.
    (3) Within two workdays after the grantee receives the emergency 
suspension notification, the grantee must send a copy of the notice to 
delegate agencies affected by the suspension.
    (4) The responsible HHS official must inform affected delegate 
agencies that they have the right to participate in the informal 
meeting.
    (c) Opportunity to show cause. If the grantee requests an informal 
meeting,

[[Page 137]]

the responsible HHS official must schedule a meeting within five 
workdays after it receives the grantee's request. The suspension will 
continue until the grantee has been afforded such opportunity and until 
the responsible HHS official renders a decision. Notwithstanding 
provisions in this section, the responsible HHS official may proceed to 
deny refunding or to initiate termination proceedings at any time even 
though the grantee's financial assistance has been suspended in whole or 
in part.
    (d) Decision. (1) The responsible HHS official will consider any 
written material presented before or during the informal meeting, as 
well as any proof the grantee has adequately corrected what led to 
suspension, and render a decision within five work days after the 
informal meeting.
    (2) If the responsible HHS official finds the grantee failed to show 
cause why suspension should be rescinded, the responsible HHS official 
may continue the suspension, in whole or in part, and under the terms 
and conditions specified in the emergency suspension notification.
    (3) A suspension must not exceed 30 days, unless the conditions 
under section 646(a)(5)(B) are applicable or the grantee requests the 
suspension to continue for an additional period of time and the 
responsible HHS official agrees.
    (4) The responsible HHS official may appoint an agency to serve as 
an interim grantee to operate the program until either the grantee's 
emergency suspension is lifted or a new grantee is selected.
    (e) Obligations incurred during suspension. Any new obligations the 
grantee incurs during the suspension period will not be allowed unless 
the responsible HHS official expressly authorizes them in the suspension 
notice or in an amendment to the suspension notice. Necessary and 
otherwise allowable costs which the grantee could not reasonably avoid 
during the suspension period will be allowed if those costs result from 
obligations properly incurred before suspension and not in anticipation 
of suspension, denial of refunding or termination. The responsible HHS 
official may allow third-party in-kind contributions applicable to the 
suspension period to satisfy cost sharing or matching requirements.
    (f) Modify or rescind suspension. The responsible HHS official may 
modify or rescind suspension at any time, if the grantee can 
satisfactorily show that is has adequately corrected what led to the 
suspension and that it will not repeat such actions or inactions. 
Nothing in this section precludes the HHS official from imposing 
suspension again for additional 30 day periods if the cause of the 
suspension has not been corrected.



Sec.  1304.5  Termination and denial of refunding.

    (a) Grounds to terminate financial assistance or deny a grantee's 
application for refunding. (1) A responsible HHS official may terminate 
financial assistance in whole or in part to a grantee or deny a 
grantee's application for refunding.
    (2) The responsible HHS official may terminate financial assistance 
in whole or in part, or deny refunding to a grantee for any one or for 
all of the following reasons:
    (i) The grantee is no longer financially viable;
    (ii) The grantee has lost the requisite legal status or permits;
    (iii) The grantee has failed to timely correct one or more 
deficiencies as defined in the Act;
    (iv) The grantee has failed to comply with eligibility requirements;
    (v) The grantee has failed to comply with the Head Start grants 
administration or fiscal requirements set forth in 45 CFR part 1303;
    (vi) The grantee has failed to comply with requirements in the Act;
    (vii) The grantee is debarred from receiving federal grants or 
contracts; or
    (viii) The grantee has failed to abide by any other terms and 
conditions of its award of financial assistance, or any other applicable 
laws, regulations, or other applicable federal or state requirements or 
policies.
    (b) Notice requirements. (1) The responsible HHS official will 
notify the grantee and such notice will:
    (i) Include the legal basis for termination or adverse action as 
described in paragraph (a) of this section;

[[Page 138]]

    (ii) Include factual findings on which the action is based or 
reference specific findings in another document that form the basis for 
termination or denial of refunding;
    (iii) Cite to any statutory provisions, regulations, or policy 
issuances on which ACF relies for its determination;
    (iv) Inform the grantee that it may appeal the denial or termination 
within 30 days to the Departmental Appeals Board, that the appeal will 
be governed by 45 CFR part 16, except as otherwise provided in the Head 
Start appeals regulations, that a copy of the appeal must sent to the 
responsible HHS official, and that it has the right to request and 
receive a hearing, as mandated under section 646 of the Act;
    (v) Inform the grantee that only its board of directors, or an 
official acting on the board's behalf can appeal the decision;
    (vi) Name the delegate agency, if the actions of that delegate are 
the basis, in whole or in part, for the proposed action; and,
    (vii) Inform the grantee that the appeal must meet requirements in 
paragraph (c) of this section; and, that if the responsible HHS official 
fails to meet requirements in this paragraph, the pending action may be 
dismissed without prejudice or remanded to reissue it with corrections.
    (2) The responsible HHS official must provide the grantee as much 
notice as possible, but must notify the grantee no later than 30 days 
after ACF receives the annual application for refunding, that it has the 
opportunity for a full and fair hearing on whether refunding should be 
denied.
    (c) Grantee's appeal. (1) The grantee must adhere to procedures and 
requirements for appeals in 45 CFR part 16, file the appeal with the 
Departmental Appeals Board, and serve a copy of the appeal on the 
responsible HHS official who issued the termination or denial of 
refunding notice. The grantees must also serve a copy of its appeal on 
any affected delegate.
    (2) Unless funding has been suspended, funding will continue while a 
grantee appeals a termination decision, unless the responsible HHS 
official renders an adverse decision, or unless the current budget 
period is expired. If the responsible HHS official has not rendered a 
decision by the end of the current budget period, the official will 
award the grantee interim funding until a decision is made or the 
project period ends.
    (d) Funding during suspension. If a grantee's funding is suspended, 
the grantee will not receive funding during the termination proceedings, 
or at any other time, unless the action is rescinded or the grantee's 
appeal is successful.
    (e) Interim and replacement grantees. The responsible HHS official 
may appoint an interim or replacement grantee as soon as a termination 
action is affirmed by the Departmental Appeals Board.
    (f) Opportunity to show cause. (1) If the Departmental Appeals Board 
sets a hearing for a proposed termination or denial of refunding action, 
the grantee has five workdays to send a copy of the notice it receives 
from the Departmental Appeals Board, to all delegate agencies that would 
be financially affected by termination and to each delegate agency 
identified in the notice.
    (2) The grantee must send to the Departmental Appeals Board and to 
the responsible HHS official a list of the delegate agencies it notified 
and the dates when it notified them.
    (3) If the responsible HHS official initiated proceedings because of 
a delegate agency's activities, the official must inform the delegate 
agency that it may participate in the hearing. If the delegate agency 
chooses to participate in the hearing, it must notify the responsible 
HHS official in writing within 30 days of the grantee's appeal. If any 
other delegate agency, person, agency or organization wishes to 
participate in the hearing, it may request permission to do so from the 
Departmental Appeals Board.
    (4) If the grantee fails to appear at the hearing, without good 
cause, the grantee will be deemed to have waived its right to a hearing 
and consented to have the Departmental Appeals Board make a decision 
based on the parties' written information and argument.

[[Page 139]]

    (5) A grantee may waive the hearing and submit written information 
and argument for the record, within a reasonable period of time to be 
fixed by the Departmental Appeals Board.
    (6) The responsible HHS official may attempt, either personally or 
through a representative, to resolve the issues in dispute by informal 
means prior to the hearing.
    (g) Decision. The Departmental Appeals Board's decision and any 
measure the responsible HHS official takes after the decision is fully 
binding upon the grantee and its delegate agencies, whether or not they 
actually participated in the hearing.



Sec.  1304.6  Appeal for prospective delegate agencies.

    (a) Appeal. If a grantee denies, or fails to act on, a prospective 
delegate agency's funding application, the prospective delegate may 
appeal the grantee's decision or inaction.
    (b) Process for prospective delegates. To appeal, a prospective 
delegate must:
    (1) Submits the appeal, including a copy of the funding application, 
to the responsible HHS official within 30 days after it receives the 
grantee's decision; or within 30 days after the grantee has had 120 days 
to review but has not notified the applicant of a decision; and,
    (2) Provide the grantee with a copy of the appeal at the same time 
the appeal is filed with the responsible HHS official.
    (c) Process for grantees. When an appeal is filed with the 
responsible HHS official, the grantee must respond to the appeal and 
submit a copy of its response to the responsible HHS official and to the 
prospective delegate agency within 30 work days.
    (d) Decision. (1) The responsible HHS official will sustain the 
grantee's decision, if the official determines the grantee did not act 
arbitrarily, capriciously, or otherwise contrary to law, regulation, or 
other applicable requirements.
    (2) The responsible HHS official will render a written decision to 
each party within a reasonable timeframe. The official's decision is 
final and not subject to further appeal.
    (3) If the responsible HHS official finds the grantee did act 
arbitrarily, capriciously, or otherwise contrary to law, regulation, or 
other applicable requirements, the grantee will be directed to 
reevaluate their applications.



Sec.  1304.7  Legal fees.

    (a) An agency is not authorized to charge to its grant legal fees or 
other costs incurred to appeal terminations, reductions of funding, or 
denials of applications of refunding decisions.
    (b) If a program prevails in a termination, reduction, or denial of 
refunding decision, the responsible HHS official may reimburse the 
agency for reasonable and customary legal fees, incurred during the 
appeal, if:
    (1) The Departmental Appeals Board overturns the responsible HHS 
official's decision;
    (2) The agency can prove it incurred fees during the appeal; and,
    (3) The agency can prove the fees incurred are reasonable and 
customary.



                      Subpart B_Designation Renewal



Sec.  1304.10  Purpose and scope.

    The purpose of this subpart is to set forth policies and procedures 
for the designation renewal of Head Start and Early Head Start programs. 
It is intended that these programs be administered effectively and 
responsibly; that applicants to administer programs receive fair and 
equitable consideration; and that the legal rights of current Head Start 
and Early Head Start grantees be fully protected. The Designation 
Renewal System is established in this part to determine whether Head 
Start and Early Head Start agencies deliver high-quality services to 
meet the educational, health, nutritional, and social needs of the 
children and families they serve; meet the program and financial 
requirements and standards described in section 641A(a)(1) of the Head 
Start Act; and qualify to be designated for funding for five years 
without competing for such funding as required under section 641(c) of 
the Head Start Act with respect to Head Start agencies and pursuant to 
section 645A(b)(12) and (d) with respect to Early Head Start agencies. A 
competition to select a new Head Start or Early Head Start agency to 
replace a Head Start or Early Head Start agency

[[Page 140]]

that has been terminated voluntarily or involuntarily is not part of the 
Designation Renewal System established in this Part, and is subject 
instead to the requirements of Sec.  1304.20.



Sec.  1304.11  Basis for determining whether a Head Start agency 
will be subject to an open competition.

    A Head Start or Early Head Start agency will be required to compete 
for its next five years of funding whenever the responsible HHS official 
determines that one or more of the following seven conditions existed 
during the relevant time period under Sec.  1304.15:
    (a) An agency has two or more deficiencies across reviews conducted 
under section 641A(c)(1)(A), (C), or (D) of the Act during the relevant 
time period under Sec.  1304.15.
    (b) An agency has not, based on a review conducted under section 
641A(c)(1)(A), (C), or (D) of the Act during the relevant time period 
under Sec.  1304.15:
    (1) Established program goals for improving the school readiness of 
children participating in its program in accordance with the 
requirements of section 641A(g)(2) of the Act and demonstrated that such 
goals:
    (i) Appropriately reflect the ages of children, birth to five, 
participating in the program;
    (ii) Align with the Head Start Early Learning Outcomes Framework: 
Ages Birth to Five, state early learning guidelines, and the 
requirements and expectations of the schools, to the extent that they 
apply to the ages of children, birth to five, participating in the 
program and at a minimum address the domains of language and literacy 
development, cognition and general knowledge, approaches toward 
learning, physical well-being and motor development, and social and 
emotional development;
    (iii) Were established in consultation with the parents of children 
participating in the program.
    (2) Taken steps to achieve the school readiness goals described 
under paragraph (b)(1) of this section demonstrated by:
    (i) Aggregating and analyzing aggregate child-level assessment data 
at least three times per year (except for programs operating less than 
90 days, which will be required to do so at least twice within their 
operating program period) and using that data in combination with other 
program data to determine grantees' progress toward meeting its goals, 
to inform parents and the community of results, and to direct continuous 
improvement related to curriculum, instruction, professional 
development, program design and other program decisions; and
    (ii) Analyzing individual ongoing, child-level assessment data for 
all children birth to age five participating in the program and using 
that data in combination with input from parents and families to 
determine each child's status and progress with regard to, at a minimum, 
language and literacy development, cognition and general knowledge, 
approaches toward learning, physical well-being and motor development, 
and social and emotional development, and to individualize the 
experiences, instructional strategies, and services to best support each 
child.
    (c) An agency has been determined during the relevant time period 
covered by the responsible HHS official's review under Sec.  1304.15:
    (1) To have an average score across all classrooms observed that is 
below the following competitive thresholds on any of the three CLASS: 
Pre-K domains from the most recent CLASS: Pre-K observation:
    (i) For the Emotional Support domain, the competitive threshold is 
5;
    (ii) For the Classroom Organization domain, the competitive 
threshold is 5;
    (iii) For the Instructional Support domain, the competitive 
threshold is 2.3 through July 31, 2025, and 2.5 on and after August 1, 
2025.
    (2) If an agency is determined to have an average score across all 
classrooms observed below the quality threshold on any of the three 
CLASS: Pre-K domains, the Office of Head Start will support the program 
to strengthen its coordinated approach to training and professional 
development as required in Sec.  1302.92(b) and (c), to help promote 
improvement in teaching practices and teacher-child interactions. The 
quality threshold for each domain is as follows:
    (i) For the Emotional Support domain, the quality threshold is 6;

[[Page 141]]

    (ii) For the Classroom Organization domain, the quality threshold is 
6;
    (iii) For the Instructional Support domain, the quality threshold is 
3.
    (d) An agency has had a revocation of its license to operate a Head 
Start or Early Head Start center or program by a state or local 
licensing agency during the relevant time period under Sec.  1304.15, 
and the revocation has not been overturned or withdrawn before a 
competition for funding for the next five-year period is announced. A 
pending challenge to the license revocation or restoration of the 
license after correction of the violation will not affect application of 
this requirement after the competition for funding for the next five-
year period has been announced.
    (e) An agency has been suspended from the Head Start or Early Head 
Start program by ACF during the relevant time period covered by the 
responsible HHS official's review under Sec.  1304.15 and the suspension 
has not been overturned or withdrawn. If the agency did not have an 
opportunity to show cause as to why the suspension should not have been 
imposed or why the suspension should have been lifted if it had already 
been imposed under part 1304, the agency will not be required to compete 
based on this condition. If an agency has received an opportunity to 
show cause and the suspension remains in place, the condition will be 
implemented.
    (f) An agency has been debarred from receiving federal or state 
funds from any federal or state department or agency or has been 
disqualified from the Child and Adult Care Food Program (CACFP) any time 
during the relevant time period covered by the responsible HHS 
official's review under Sec.  1304.15 but has not yet been terminated or 
denied refunding by ACF. (A debarred agency will only be eligible to 
compete for Head Start funding if it receives a waiver described in 2 
CFR 180.135.)
    (g) An agency meets one of two fiscal criteria, if the agency:
    (1) Is at risk of failing to continue functioning as a going concern 
within the current project period. The final determination is made by 
the responsible HHS official based on a review of the findings and 
opinions of an audit conducted in accordance with section 647 of the 
Act; an audit, review or investigation by a state agency; a review by 
the National External Audit Review (NEAR) Center; or an audit, 
investigation or inspection by the Department of Health and Human 
Services Office of Inspector General; or
    (2) Has a total of two or more audit findings of material weakness 
or questioned costs associated with its Head Start funds in audit 
reports submitted to the Federal Audit Clearinghouse (in accordance with 
section 647 of the Act) for a financial period within the current 
project period.

[85 FR 53207, Aug. 28, 2020]



Sec.  1304.12  Grantee reporting requirements concerning certain conditions.

    A Head Start agency must report in writing to the responsible HHS 
official within 10 working days of occurrence of any of the following 
events:
    (a) The agency has had a revocation of a license to operate a center 
by a state or local licensing entity.
    (b) The agency has filed for bankruptcy or agreed to a 
reorganization plan as part of a bankruptcy settlement.
    (c) The agency has been debarred from receiving federal or state 
funds from any federal or state department or agency or has been 
disqualified from the Child and Adult Care Food Program (CACFP).
    (d) The agency has received an audit, audit review, investigation or 
inspection report from the agency's auditor, a state agency, or the 
cognizant federal audit agency containing a determination that the 
agency is at risk of ceasing to be a going concern.

[85 FR 53208, Aug. 28, 2020]



Sec.  1304.13  Requirements to be considered for designation 
for a five-year period when the existing grantee in a community 
is not determined to be delivering a high-quality and comprehensive 
Head Start program and is not automatically renewed.

    In order to compete for the opportunity to be awarded a five-year 
grant, an agency must submit an application to the responsible HHS 
official that

[[Page 142]]

demonstrates that it is the most qualified entity to deliver a high-
quality and comprehensive Head Start or Early Head Start program. The 
application must address the criteria for selection listed at section 
641(d)(2) of the Act for Head Start. Any agency that has had its Head 
Start or Early Head Start grant terminated for cause in the preceding 
five years is excluded from competing in such competition for the next 
five years. A Head Start or Early Head Start agency that has had a 
denial of refunding, as defined in 45 CFR part 1305, in the preceding 
five years is also excluded from competing.



Sec.  1304.14  Tribal government consultation under the Designation 
Renewal System for when an Indian Head Start grant is being considered 
for competition.

    (a) In the case of an Indian Head Start or Early Head Start agency 
determined not to be delivering a high-quality and comprehensive Head 
Start or Early Head Start program, the responsible HHS official will 
engage in government-to-government consultation with the appropriate 
tribal government or governments for the purpose of establishing a plan 
to improve the quality of the Head Start program or Early Head Start 
program operated by the Indian Head Start or Indian Early Head Start 
agency.
    (1) The plan will be established and implemented within six months 
after the responsible HHS official's determination.
    (2) Not more than six months after the implementation of that plan, 
the responsible HHS official will reevaluate the performance of the 
Indian Head Start or Early Head Start agency.
    (3) If the Indian Head Start or Early Head Start agency is still not 
delivering a high-quality and comprehensive Head Start or Early Head 
Start program, the responsible HHS official will conduct an open 
competition to select a grantee to provide services for the community 
currently being served by the Indian Head Start or Early Head Start 
agency.
    (b) A non-Indian Head Start or Early Head Start agency will not be 
eligible to receive a grant to carry out an Indian Head Start program, 
unless there is no Indian Head Start or Early Head Start agency 
available for designation to carry out an Indian Head Start or Indian 
Early Head Start program.
    (c) A non-Indian Head Start or Early Head Start agency may receive a 
grant to carry out an Indian Head Start program only until such time as 
an Indian Head Start or Indian Early Head Start agency in such community 
becomes available and is designated pursuant to this part.



Sec.  1304.15  Designation request, review and notification process.

    (a) A grantee must apply to be considered for Designation Renewal. A 
Head Start or Early Head Start agency wishing to be considered to have 
its designation as a Head Start or Early Head Start agency renewed for 
another five year period without competition must request that status 
from ACF at least 12 months before the end of their five year grant 
period or by such time as required by the Secretary.
    (b) ACF will review the relevant data to determine if one or more of 
the conditions under Sec.  1304.11 were met by the Head Start and Early 
Head Start agency during the current project period.
    (c) ACF will give notice to grantees on Designation Renewal System 
status, except as provided in Sec.  1304.14, at least 12 months before 
the expiration date of a Head Start or Early Head Start agency's current 
grant, stating:
    (1) The Head Start or Early Head Start agency will be required to 
compete for funding for an additional five-year period because ACF finds 
that one or more conditions under Sec.  1304.11 were met by the agency's 
program during the relevant time period described in paragraph (b) of 
this section, identifying the conditions ACF found, and summarizing the 
basis for the finding; or
    (2) That such agency has been determined on a preliminary basis to 
be eligible for renewed funding for five years without competition 
because ACF finds that none of the conditions under Sec.  1304.11 have 
been met during the relevant time period described in paragraph (b) of 
this section. If prior to the award of that grant, ACF determines that 
the grantee has met one of the conditions under Sec.  1304.11 during the

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relevant time period described in paragraph (b) of this section, this 
determination will change and the grantee will receive notice under 
paragraph (c)(1) of this section that it will be required to compete for 
funding for an additional five-year period.

[85 FR 53208, Aug. 28, 2020]



Sec.  1304.16  Use of CLASS: Pre-K instrument in the Designation 
Renewal System.

    Except when all children are served in a single classroom, ACF will 
conduct observations of multiple classes operated by the grantee based 
on a random sample of all classes and rate the conduct of the classes 
observed using the CLASS: Pre-K instrument. When the grantee serves 
children in its program in a single class, that class will be observed 
and rated using the CLASS: Pre-K instrument. The domain scores for that 
class will be the domain scores for the grantee for that observation. 
After the observations are completed, ACF will report to the grantee the 
scores of the classes observed during the CLASS: Pre-K observations in 
each of the domains covered by the CLASS: Pre-K instrument. ACF will 
average CLASS: Pre-K instrument scores in each domain for the classes 
operated by the agency that ACF observed to determine the agency's score 
in each domain.



Sec.  1304.17  Flexibility for Head Start Designation Renewal Determinations 
in Certain Emergencies.

    (a) In reviewing the relevant data as described in Sec.  1304.15(b), 
if ACF determines that one or more data elements described in the 
conditions in section Sec.  1304.11 is not available due to an emergency 
described in paragraph (b) of this section, ACF may make a designation 
renewal determination based on the data elements that are available.
    (b) The emergencies are:
    (1) A major disaster declared by the President under section 401 of 
the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5170).
    (2) An emergency declared by the President under section 501 of the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5191).
    (3) A public health emergency declared by the Secretary pursuant to 
section 319 of the Public Health Service Act (42 U.S.C. 247d).

[85 FR 78792, Dec. 7, 2020]



           Subpart C_Selection of Grantees Through Competition



Sec.  1304.20  Selection among applicants.

    (a) In selecting an agency to be designated to provide Head Start, 
Early Head Start, Migrant or Seasonal Head Start or tribal Head Start or 
Early Head Start services, the responsible HHS official will consider 
the applicable criteria at Section 641(d) of the Head Start Act and any 
other criteria outlined in the funding opportunity announcement.
    (b) In competitions to replace or potentially replace a grantee the 
responsible HHS official will also consider the extent to which the 
applicant supports continuity for participating children, the community 
and the continued employment of effective, well qualified personnel.
    (c) In competitions to replace or potentially replace a current 
grantee, the responsible HHS official will give priority to applicants 
that have demonstrated capacity in providing effective, comprehensive, 
and well-coordinated early childhood education and development services 
and programs to children and their families.



   Subpart D_Replacement of American Indian and Alaska Native Grantees



Sec. 1304.30  Procedure for indentification of alternative agency.

    (a) An Indian tribe whose Head Start grant has been terminated, 
relinquished, designated for competition or which has been denied 
refunding as a Head Start agency, may identify an alternate agency and 
request the responsible HHS official to designate such agency as an 
alternative agency to provide Head Start services to the tribe if:

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    (1) The tribe was the only agency that was receiving federal 
financial assistance to provide Head Start services to members of the 
tribe; and,
    (2) The tribe would be otherwise precluded from providing such 
services to its members because of the termination or denial of 
refunding.
    (b)(1) The responsible HHS official, when notifying a tribal grantee 
of the intent to terminate financial assistance or deny its application 
for refunding, or its designation for competition must notify the 
grantee that it may identify an agency and request that the agency serve 
as the alternative agency in the event that the grant is terminated or 
refunding denied, or the grant is not renewed without competition.
    (2) The tribe must identify the alternate agency to the responsible 
HHS official in writing.
    (3) The responsible HHS official will notify the tribe, in writing, 
whether the alternative agency proposed by the tribe is found to be 
eligible for Head Start funding and capable of operating a Head Start 
program. If the alternative agency identified by the tribe is not an 
eligible agency capable of operating a Head Start program, the tribe 
will have 15 days from the date of the sending of the notification to 
that effect from the responsible HHS official to identify another agency 
and request that the agency be designated. The responsible HHS official 
will notify the tribe in writing whether the second proposed alternate 
agency is found to be an eligible agency capable of operating the Head 
Start program.
    (4) If the tribe does not identify an eligible, suitable alternative 
agency, a grantee will be designated under these regulations.
    (c) If the tribe appeals a termination of financial assistance or a 
denial of refunding, it will, consistent with the terms of Sec.  1304.5, 
continue to be funded pending resolution of the appeal. However, the 
responsible HHS official and the grantee will proceed with the steps 
outlined in this regulation during the appeal process.
    (d) If the tribe does not identify an agency and request that the 
agency be appointed as the alternative agency, the responsible HHS 
official will seek a permanent replacement grantee under these 
regulations.



Sec.  1304.31  Requirements of alternative agency.

    The agency identified by the Indian tribe must establish that it 
meets all requirements established by the Head Start Act and these 
requirements for designation as a Head Start grantee and that it is 
capable of conducting a Head Start program. The responsible HHS 
official, in deciding whether to designate the proposed agency, will 
analyze the capacity and experience of the agency according to the 
criteria found in section 641(d) of the Head Start Act and Sec.  
1304.20.



Sec.  1304.32  Alternative agency--prohibition.

    (a) No agency will be designated as the alternative agency pursuant 
to this subpart if the agency includes an employee who:
    (1) Served on the administrative or program staff of the Indian 
tribal grantee described under section 646(e)(1)(A) of the Act; and
    (2) Was responsible for a deficiency that:
    (i) Relates to the performance standards or financial management 
standards described in section 641A(a)(1) of the Act; and,
    (ii) Was the basis for the termination of assistance under section 
646(e)(1)(A) of the Act or denial of refunding described in Sec.  
1304.4.
    (b) The responsible HHS official shall determine whether an employee 
was responsible for a deficiency within the meaning and context of this 
section.



                  Subpart E_Head Start Fellows Program



Sec.  1304.40  Purpose.

    As provided in section 648A(d) of the Act, the Head Start Fellows 
Program is designed to enhance the ability of Head Start Fellows to make 
significant contributions to Head Start and to other child development 
and family services programs.



Sec.  1304.41  Fellows Program.

    (a) Selection. An applicant must be working on the date of 
application in a

[[Page 145]]

local Head Start program or otherwise working in the field of child 
development and family services. The qualifications of the applicants 
for Head Start Fellowship positions will be competitively reviewed.
    (b) Placement. Head Start Fellows may be placed in the Head Start 
national and regional offices; local Head Start agencies and programs; 
institutions of higher education; public or private entities and 
organizations concerned with services to children and families; and 
other appropriate settings.
    (c) Restrictions. A Head Start Fellow who is not an employee of a 
local Head Start agency or program may only be placed in the national or 
regional offices within the Department of Health and Human Services that 
administer Head Start or local Head Start agencies. Head Start Fellows 
shall not be placed in any agency whose primary purpose, or one of whose 
major purposes is to influence federal, state or local legislation.
    (d) Duration. Head Start Fellowships will be for terms of one year, 
and may be renewed for a term of one additional year.
    (e) Status. For the purposes of compensation for injuries under 
chapter 81 of title 5, United States Code, Head Start Fellows shall be 
considered to be employees, or otherwise in the service or employment, 
of the federal government. Head Start Fellows assigned to the national 
or regional offices within the Department of Health and Human Services 
shall be considered employees in the Executive Branch of the federal 
government for the purposes of chapter 11 of title 18, United States 
Code, and for the purposes of any administrative standards of conduct 
applicable to the employees of the agency to which they are assigned.



PART 1305_DEFINITIONS--Table of Contents



Sec.
1305.1 Purpose.
1305.2 Terms.

    Authority: 42 U.S.C. 9801 et seq.

    Source: 81 FR 61412, Sept. 6, 2016, unless otherwise noted.



Sec.  1305.1  Purpose.

    The purpose of this part is to define terms for the purposes of this 
subchapter.



Sec.  1305.2  Terms.

    For the purposes of this subchapter, the following definitions 
apply:
    ACF means the Administration for Children and Families in the 
Department of Health and Human Services.
    Act means the Head Start Act, Sec. 635 et seq., Public Law 97-35, 95 
Stat. 499-511 (codified as amended at 42 U.S.C. Section 9801, et seq.).
    Agency means the body that receives the Head Start grant.
    Aggregate child-level assessment data means the data collected by an 
agency on the status and progress of the children it serves that have 
been combined to provide summary information about groups of children 
enrolled in specific classes, centers, home-based or other options, 
groups or settings, or other groups of children such as dual language 
learners, or to provide summary information by specific domains of 
development.
    Allowable alternate vehicle means a vehicle designed for carrying 
eleven or more people, including the driver, that meets all the Federal 
Motor Vehicle Safety Standards applicable to school buses, except 49 CFR 
571.108 and 571.131.
    Budget period means the interval of time, into which a multi-year 
period of assistance (project period) is divided for budgetary and 
funding purposes.
    Case plan is defined as presented in 42 U.S.C. 675(1) which, in 
summary, is a written document that must include a number of specified 
items including, but is not limited to, a plan for safe and proper care 
of the child in foster care placement, health records, and a plan for 
ensuring the educational stability of the child in foster care.
    Child-level assessment data means the data collected by an agency on 
an individual child from one or more valid and reliable assessments of a 
child's status and progress, including but not limited to direct 
assessment, structured observations, checklists, staff or parent report 
measures, and portfolio records or work samples.
    Child records means records that:
    (1) Are directly related to the child;

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    (2) Are maintained by the program, or by a party acting for the 
program; and
    (3) Include information recorded in any way, such as print, 
electronic, or digital means, including media, video, image, or audio 
format.
    Child restraint system means any device designed to restrain, seat, 
or position children that meets the current requirements of Federal 
Motor Vehicle Safety Standard No. 213, Child Restraint Systems, 49 CFR 
571.213, for children in the weight category established under the 
regulation, or any device designed to restrain, seat, or position 
children, other than a Type I seat belt as defined at 49 CFR 571.209, 
for children not in the weight category currently established by 49 CFR 
571.213.
    Child with a disability is defined in the same manner as presented 
in the Head Start Act, 42 U.S.C. 9801.
    CLASS: Pre-K means The Classroom Assessment Scoring System (CLASS). 
The CLASS is an observational instrument that assesses classroom quality 
in preschool through third grade classrooms. This tool meets the 
requirements described in 641(c)(1)(D) and 641A(c)(2)(F) of the Head 
Start Act (42 U.S.C. 9836(c)(1)(D) and 9836a(c)(2)(F)). The CLASS 
assesses three domains of classroom experience: Emotional Support, 
Classroom Organization, and Instructional Support.
    (1) Emotional Support measures children's social and emotional 
functioning in the classroom, and includes four dimensions: Positive 
Climate, Negative Climate, Teacher Sensitivity and Regard for Student 
Perspectives. Positive Climate addresses the emotional connection, 
respect, and enjoyment demonstrated between teachers and children and 
among children. Negative Climate addresses the level of expressed 
negativity such as anger, hostility, or aggression exhibited by teachers 
and/or children in the classroom. Teacher Sensitivity addresses 
teachers' awareness of and responsivity to children's academic and 
emotional concerns. Regard for Student Perspectives addresses the degree 
to which teachers' interactions with children and classroom activities 
place an emphasis on children's interests, motivations, and points of 
view.
    (2) Classroom Organization measures a broad array of classroom 
processes related to the organization and management of children's 
behavior, time, and attention in the classroom. It includes three 
dimensions: Behavior Management, Productivity, and Instructional 
Learning Formats. Behavior Management addresses how effectively teachers 
monitor, prevent, and redirect behavior. Productivity addresses how well 
the classroom runs with respect to routines and the degree to which 
teachers organize activities and directions so that maximum time can be 
spent on learning activities. Instructional Learning Formats addresses 
how teachers facilitate activities and provide interesting materials so 
that children are engaged and learning opportunities are maximized.
    (3) Instructional Support measures the ways in which teachers 
implement curriculum to effectively support cognitive and language 
development. It includes three dimensions: Concept Development, Quality 
of Feedback, and Language Modeling. Concept Development addresses how 
teachers use instructional discussions and activities to promote 
children's higher order thinking skills in contrast to a focus on rote 
instruction. Quality of Feedback addresses how teachers extend 
children's learning through their responses to children's ideas, 
comments, and work. Language Modeling addresses the extent to which 
teachers facilitate and encourage children's language.
    (4) Assessments with the CLASS involve observation-based measurement 
of each dimension on a seven point scale. A score ranging from 1 
(minimally characteristic) to 7 (highly characteristic) is given for 
each dimension and represents the extent to which that dimension is 
characteristic of that classroom. Relevant dimension scores are used to 
calculate each domain score.
    Commercial Driver's License (CDL) means a license issued by a state 
or other jurisdiction, in accordance with the standards contained in 49 
CFR part 383, to an individual which authorizes the individual to 
operate a class of commercial motor vehicles.

[[Page 147]]

    Construction means new buildings, and excludes renovations, 
alterations, additions, or work of any kind to existing buildings.
    Continuity of care means Head Start or Early Head Start services 
provided to children in a manner that promotes primary caregiving and 
minimizes the number of transitions in teachers and teacher assistants 
that children experience over the course of the day, week, program year, 
and to the extent possible, during the course of their participation 
from birth to age three in Early Head Start and in Head Start.
    Deficiency is defined in the same manner as presented in the Head 
Start Act, 42 U.S.C. 9801.
    Delegate agency is defined in the same manner as presented in the 
Head Start Act, 42 U.S.C. 9801.
    Denial of Refunding means the refusal of a funding agency to fund an 
application for a continuation of a Head Start program for a subsequent 
program year when the decision is based on a determination that the 
grantee has improperly conducted its program, or is incapable of doing 
so properly in the future, or otherwise is in violation of applicable 
law, regulations, or other policies.
    Development and administrative costs mean costs incurred in 
accordance with an approved Head Start budget which do not directly 
relate to the provision of program component services, including 
services to children with disabilities, as set forth and described in 
the Head Start program performance standards (45 CFR part 1304).
    Disclosure means to permit access to or the release, transfer, or 
other communication of PII contained in child records by any means, 
including oral, written, or electronic means, to any party except the 
party identified as the party that provided or created the record.
    Double session variation means a center-based option that employs a 
single teacher to work with one group of children in the morning and a 
different group of children in the afternoon.
    Dual benefit costs mean costs incurred in accordance with an 
approved Head Start budget which directly relate to both development and 
administrative functions and to the program component services, 
including services to children with disabilities, as set forth and 
described in the Head Start program performance standards (45 CFR part 
1304).
    Dual language learner means a child who is acquiring two or more 
languages at the same time, or a child who is learning a second language 
while continuing to develop their first language. The term ``dual 
language learner'' may encompass or overlap substantially with other 
terms frequently used, such as bilingual, English language learner 
(ELL), Limited English Proficient (LEP), English learner, and children 
who speak a Language Other Than English (LOTE).
    Early Head Start agency means a public or private non-profit or for-
profit entity designated by ACF to operate an Early Head Start program 
to serve pregnant women and children from birth to age three, pursuant 
to Section 645A(e) of the Head Start Act.
    Enrolled (or any variation of) means a child has been accepted and 
attended at least one class for center-based or family child care option 
or at least one home visit for the home-based option.
    Enrollment year means the period of time, not to exceed twelve 
months, during which a Head Start program provides center or home-based 
services to a group of children and their families.
    Facility means a structure, such as a building or modular unit, 
appropriate for use in carrying out a Head Start program and used 
primarily to provide Head Start services, including services to children 
and their families, or for administrative purposes or other activities 
necessary to carry out a Head Start program.
    Family means all persons living in the same household who are 
supported by the child's parent(s)' or guardian(s)' income; and are 
related to the child's parent(s) or guardian(s) by blood, marriage, or 
adoption; or are the child's authorized caregiver or legally responsible 
party.
    Federal interest is a property right which secures the right of the 
federal awarding agency to recover the current fair market value of its 
percentage of participation in the cost of the facility in the event the 
facility is no longer

[[Page 148]]

used for Head Start purposes by the grantee or upon the disposition of 
the property. When a grantee uses Head Start funds to purchase, 
construct or renovate a facility, or make mortgage payments, it creates 
a federal interest. The federal interest includes any portion of the 
cost of purchase, construction, or renovation contributed by or for the 
entity, or a related donor organization, to satisfy a matching 
requirement.
    Federal Motor Vehicle Safety Standards (FMVSS) means the National 
Highway and Traffic Safety Administration's standards for motor vehicles 
and motor vehicle equipment (49 CFR part 571) established under section 
30111 of Title 49, United States Code.
    Financial viability means that an organization is able to meet its 
financial obligations, balance funding and expenses and maintain 
sufficient funding to achieve organizational goals and objectives.
    Fixed route means the established routes to be traveled on a regular 
basis by vehicles that transport children to and from Head Start or 
Early Head Start program activities, and which include specifically 
designated stops where children board or exit the vehicle.
    Foster care means 24-hour substitute care for children placed away 
from their parents or guardians and for whom the state agency has 
placement and care responsibility. This includes, but is not limited to, 
placements in foster family homes, foster homes of relatives, group 
homes, emergency shelters, residential facilities, child-care 
institutions, and pre-adoptive homes. A child is in foster care in 
accordance with this definition regardless of whether the foster care 
facility is licensed and payments are made by the state or local agency 
for the care of the child, whether adoption subsidy payments are being 
made prior to the finalization of an adoption, or whether there is 
federal matching of any payments that are made.
    Full-working-day means not less than 10 hours of Head Start or Early 
Head Start services per day.
    Funded enrollment means the number of participants which the Head 
Start grantee is to serve, as indicated on the grant award.
    Going concern means an organization that operates without the threat 
of liquidation for the foreseeable future, a period of at least 12 
months.
    Grantee means the local public or private non-profit agency or for-
profit agency which has been designated as a Head Start agency under 42 
U.S.C. 9836 and which has been granted financial assistance by the 
responsible HHS official to operate a Head Start program.
    Head Start agency means a local public or private non-profit or for-
profit entity designated by ACF to operate a Head Start program to serve 
children age three to compulsory school age, pursuant to section 641(b) 
and (d) of the Head Start Act.
    Head Start Early Learning Outcomes Framework: Ages Birth to Five 
means the Head Start Early Learning Outcomes Framework: Ages Birth to 
Five, which describes the skills, behaviors, and knowledge that programs 
must foster in all children. It includes five central domains: 
Approaches to Learning; Social and Emotional Development; Language and 
Literacy; Cognition; and Perceptual, Motor, and Physical Development. 
These central domains are broken into five domains for infants and 
toddlers and seven domains for preschoolers. Infant and Toddler domains 
are Approaches to Learning; Social and Emotional Development; Language 
and Communication; Cognition; and Perceptual, Motor, and Physical 
Development. Preschool domains are Approaches to Learning; Social and 
Emotional Development; Language and Communication; Literacy; Mathematics 
Development; Scientific Reasoning; and Perceptual, Motor, and Physical 
Development. Domains are divided into sub-domains with goals that 
describe broad skills, behaviors, and concepts that are important for 
school success. Developmental progressions describe the skills, 
behaviors and concepts that children may demonstrate as they progress. 
As described in the Head Start Act, the Framework is central to program 
operations that promote high-quality early learning environments (42 
U.S.C. 9832(21)(G)(iv)(II)(aa), 42 U.S.C. 9835(o), 42 U.S.C. 
9836(d)(2)(C), 42 U.S.C.

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9836a(g)(2)(A), 42 U.S.C. 9837(f)(3)(E), 42 U.S.C. 9837a(a)(3), 42 
U.S.C. 9837a(a)(14), 42 U.S.C. 9837b(a)(2)(B)(iii), 42 U.S.C. 
9837b(a)(4)(A)(i), and 42 U.S.C. 9837b(a)(4)(B)(iii)).
    Homeless children means the same as homeless children and youths in 
Section 725(2) of the McKinney-Vento Homeless Assistance Act at 42 
U.S.C. 11434a(2).
    Home visitor means the staff member in the home-based program option 
assigned to work with parents to provide comprehensive services to 
children and their families through home visits and group socialization 
activities.
    Hours of planned class operations means hours when children are 
scheduled to attend. Professional development, training, orientation, 
teacher planning, data analysis, parent-teacher conferences, home 
visits, classroom sanitation, and transportation do not count toward the 
hours of planned class operations.
    Income means gross cash income and includes earned income, military 
income (including pay and allowances, except those described in Section 
645(a)(3)(B) of the Act), veteran's benefits, Social Security benefits, 
unemployment compensation, and public assistance benefits. Additional 
examples of gross cash income are listed in the definition of ``income'' 
which appears in U.S. Bureau of the Census, Current Population Reports, 
Series P-60-185 (available at https://www2.census.gov/prod2/popscan/p60-
185.pdf).
    Indian Head Start agency means a program operated by an Indian tribe 
(as defined by the Act) or designated by an Indian tribe to operate on 
its behalf.
    Indian tribe is defined in the same manner as presented in the Head 
Start Act, 42 U.S.C. 9801.
    Individualized Education Program is defined in the same manner as 
presented in the Individuals with Disabilities Education Act (20 U.S.C. 
1400 et seq.).
    Individualized Family Service Plan is defined in the same manner as 
presented in the Individuals with Disabilities Education Act (20 U.S.C. 
1400 et seq.).
    Legal status means the existence of an applicant or grantee as a 
public agency or organization under the law of the state in which it is 
located, or existence as a private nonprofit or for-profit agency or 
organization as a legal entity recognized under the law of the state in 
which it is located. Existence as a private non-profit agency or 
organization may be established under applicable state or federal law.
    Local agency responsible for implementing IDEA means the early 
intervention service provider under Part C of IDEA and the local 
educational agency under Part B of IDEA.
    Major renovation means any individual or collection renovation that 
has a cost equal to or exceeding $250,000. It excludes minor renovations 
and repairs except when they are included in a purchase application.
    Migrant family means, for purposes of Head Start eligibility, a 
family with children under the age of compulsory school attendance who 
changed their residence by moving from one geographic location to 
another, either intrastate or interstate, within the preceding two years 
for the purpose of engaging in agricultural work and whose family income 
comes primarily from this activity.
    Migrant or Seasonal Head Start Program means:
    (1) With respect to services for migrant farm workers, a Head Start 
program that serves families who are engaged in agricultural labor and 
who have changed their residence from one geographic location to another 
in the preceding 2-year period; and,
    (2) With respect to services for seasonal farmworkers, a Head Start 
program that serves families who are engaged primarily in seasonal 
agricultural labor and who have not changed their residence to another 
geographic location in the preceding 2-year period.
    Minor renovation means improvements to facilities, which do not meet 
the definition of major renovation.
    Modular unit means a portable prefabricated structure made at 
another location and moved to a site for use by a Head Start grantee to 
carry out a Head Start program, regardless of the manner or extent to 
which the modular unit is attached to underlying real property.

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    National Driver Register means the National Highway Traffic Safety 
Administration's automated system for assisting state driver license 
officials in obtaining information regarding the driving records of 
individuals who have been denied licenses for cause; had their licenses 
denied for cause, had their licenses canceled, revoked, or suspended for 
cause, or have been convicted of certain serious driving offenses.
    Parent means a Head Start child's mother or father, other family 
member who is a primary caregiver, foster parent or authorized 
caregiver, guardian or the person with whom the child has been placed 
for purposes of adoption pending a final adoption decree.
    Participant means a pregnant woman or child who is enrolled in and 
receives services from a Head Start, an Early Head Start, a Migrant or 
Seasonal Head Start, or an American Indian and Alaska Native Head Start 
program.
    Personally identifiable information (PII) means any information that 
could identify a specific individual, including but not limited to a 
child's name, name of a child's family member, street address of the 
child, social security number, or other information that is linked or 
linkable to the child.
    Program means a Head Start, Early Head Start, migrant, seasonal, or 
tribal program, funded under the Act and carried out by an agency, or 
delegate agency, to provide ongoing comprehensive child development 
services.
    Program costs mean costs incurred in accordance with an approved 
Head Start budget which directly relate to the provision of program 
component services, including services to children with disabilities, as 
set forth and described in the Head Start Program Performance Standards 
(45 CFR part 1304).
    Purchase means to buy an existing facility, including outright 
purchase, down payment or through payments made in satisfaction of a 
mortgage or other loan agreement, whether principal, interest or an 
allocated portion principal and/or interest. The use of grant funds to 
make a payment under a capital lease agreement, as defined in the cost 
principles, is a purchase subject to these provisions. Purchase also 
refers to an approved use of Head Start funds to continue paying the 
cost of purchasing facilities or refinance an existing loan or mortgage 
beginning in 1987.
    Real property means land, including land improvements, buildings, 
structures and all appurtenances thereto, excluding movable machinery 
and equipment.
    Recruitment area means that geographic locality within which a Head 
Start program seeks to enroll Head Start children and families. The 
recruitment area can be the same as the service area or it can be a 
smaller area or areas within the service area.
    Relevant time period means:
    (1) The 12 months preceding the month in which the application is 
submitted; or
    (2) During the calendar year preceding the calendar year in which 
the application is submitted, whichever more accurately reflects the 
needs of the family at the time of application.
    Repair means maintenance that is necessary to keep a Head Start 
facility in working condition. Repairs do not add significant value to 
the property or extend its useful life.
    Responsible HHS official means the official of the Department of 
Health and Human Services who has authority to make grants under the 
Act.
    School readiness goals mean the expectations of children's status 
and progress across domains of language and literacy development, 
cognition and general knowledge, approaches to learning, physical well-
being and motor development, and social and emotional development that 
will improve their readiness for kindergarten.
    School bus means a motor vehicle designed for carrying 11 or more 
persons (including the driver) and which complies with the Federal Motor 
Vehicle Safety Standards applicable to school buses.
    Service area means the geographic area identified in an approved 
grant application within which a grantee may provide Head Start 
services.
    Staff means paid adults who have responsibilities related to 
children and their families who are enrolled in programs.

[[Page 151]]

    State is defined in the same manner as presented in the Head Start 
Act, 42 U.S.C. 9801.
    Termination of a grant or delegate agency agreement means permanent 
withdrawal of the grantee's or delegate agency's 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 delegate agency. Termination does not include:
    (1) Withdrawal of funds awarded on the basis of the grantee's or 
delegate agency's underestimate of the unobligated balance in a prior 
period;
    (2) Refusal by the funding agency to extend a grant or award 
additional funds (such as refusal to make a competing or noncompeting 
continuation renewal, extension or supplemental award);
    (3) Withdrawal of the unobligated balance as of the expiration of a 
grant; and
    (4) Annulment, i.e., voiding of a grant upon determination that the 
award was obtained fraudulently or was otherwise illegal or invalid from 
its inception.
    Total approved costs mean the sum of all costs of the Head Start 
program approved for a given budget period by the Administration for 
Children and Families, as indicated on the Financial Assistance Award. 
Total approved costs consist of the federal share plus any approved non-
federal match, including non-federal match above the statutory minimum.
    Transition period means the three-year time period after December 9, 
2011, on the Designation Renewal System during which ACF will convert 
all of the current continuous Head Start and Early Head Start grants 
into five-year grants after reviewing each grantee to determine if it 
meets any of the conditions under Sec.  1304.12 of this chapter that 
require recompetition or if the grantee will receive its first five-year 
grant non-competitively.
    Transportation services means the planned transporting of children 
to and from sites where an agency provides services funded under the 
Head Start Act. Transportation services can involve the pick-up and 
discharge of children at regularly scheduled times and pre-arranged 
sites, including trips between children's homes and program settings. 
The term includes services provided directly by the Head Start and Early 
Head Start grantee or delegate agency and services which such agencies 
arrange to be provided by another organization or an individual. 
Incidental trips, such as transporting a sick child home before the end 
of the day, or such as might be required to transport small groups of 
children to and from necessary services, are not included under the 
term.
    Verify or any variance of the word means to check or determine the 
correctness or truth by investigation or by reference.

[81 FR 61412, Sept. 6, 2016, as amended at 85 FR 53209, Aug. 28, 2020]

[[Page 152]]



          SUBCHAPTER C_THE ADMINISTRATION FOR COMMUNITY LIVING





PART 1321_GRANTS TO STATE AND COMMUNITY PROGRAMS ON AGING--Table of Contents



                         Subpart A_Introduction

Sec.
1321.1 Basis and purpose of this part.
1321.3 Definitions.
1321.5 Applicability of other regulations.

                 Subpart B_State Agency Responsibilities

1321.7 Mission of the State agency.
1321.9 Organization and staffing of the State agency.
1321.11 State agency policies.
1321.13 Advocacy responsibilities.
1321.15 Duration, format and effective date of the State plan.
1321.17 Content of State plan.
1321.19 Amendments to the State plan.
1321.21 Submission of the State plan or plan amendment to the 
          Commissioner for approval.
1321.23 Notification of State plan or State plan amendment approval.
1321.25 Restriction of delegation of authority to other agencies.
1321.27 Public participation.
1321.29 Designation of planning and service areas.
1321.31 Appeal to Commissioner.
1321.33 Designation of area agencies.
1321.35 Withdrawal of area agency designation.
1321.37 Intrastate funding formula.
1321.41 Single State planning and service area.
1321.43 Interstate planning and service area.
1321.45 Transfer between congregate and home-delivered nutrition service 
          allotments.
1321.47 Statewide non-Federal share requirements.
1321.49 State agency maintenance of effort.
1321.51 Confidentiality and disclosure of information.
1321.52 Evaluation of unmet need.

                 Subpart C_Area Agency Responsibilities

1321.53 Mission of the area agency.
1321.55 Organization and staffing of the area agency.
1321.57 Area agency advisory council.
1321.59 Submission of an area plan and plan amendments to the State for 
          approval.
1321.61 Advocacy responsibilities of the area agency.

                     Subpart D_Service Requirements

1321.63 Purpose of services allotments under Title III.
1321.65 Responsibilities of service providers under area plans.
1321.67 Service contributions.
1321.69 Service priority for frail, homebound or isolated elderly.
1321.71 Legal assistance.
1321.73 Grant related income under Title III-C.
1321.75 Licenses and safety.

             Subpart E_Hearing Procedures for State Agencies

1321.77 Scope.
1321.79 When a decision is effective.
1321.81 How the State may appeal.
1321.83 How the Commissioner may reallot the State's withheld payments.

    Authority: 42 U.S.C. 3001 et seq.; title III of the Older Americans 
Act, as amended.

    Source: 53 FR 33766, Aug. 31, 1988, unless otherwise noted.



                         Subpart A_Introduction



Sec.  1321.1  Basis and purpose of this part.

    (a) This part prescribes requirements State agencies shall meet to 
receive grants to develop comprehensive and coordinated systems for the 
delivery of supportive and nutrition services under title III of the 
Older Americans Act, as amended (Act). These requirements include:
    (1) Designation and responsibilities of State agencies;
    (2) State plans and amendments;
    (3) Services delivery; and
    (4) Hearing procedures for applicants for planning and services area 
designation.
    (b) The requirements of this part are based on title III of the Act. 
Title III provides for formula grants to State agencies on aging, under 
approved State plans, to stimulate the development or enhancement of 
comprehensive and coordinated community-based systems resulting in a 
continuum of services to older persons with special emphasis on older 
individuals with the greatest economic or social need, with

[[Page 153]]

particular attention to low-income minority individuals. A responsive 
community-based system of services shall include collaboration in 
planning, resource allocation and delivery of a comprehensive array of 
services and opportunities for all older Americans in the community. The 
intent is to use title III funds as a catalyst in bringing together 
public and private resources in the community to assure the provision of 
a full range of efficient, well coordinated and accessible services for 
older persons.
    (c) Each State agency designates planning and service areas in the 
State, and makes a subgrant or contract under an approved area plan to 
one area agency in each planning and service area for the purpose of 
building comprehensive systems for older people throughout the State. 
Area agencies in turn make subgrants or contracts to service providers 
to perform certain specified functions.



Sec.  1321.3  Definitions.

    Act means the Older Americans Act of 1965 as amended.
    Altering or renovating, as used in section 307(a)(14) of the Act 
with respect to multipurpose senior centers, means making modifications 
to or in connection with an existing facility which are necessary for 
its effective use as a center. These may include renovation, repair, or 
expansion which is not in excess of double the square footage of the 
original facility and all physical improvements.
    Constructing, as used in section 307(a)(14) of the Act with respect 
to multipurpose senior centers, means building a new facility, including 
the costs of land acquisition and architectural and engineering fees, or 
making modifications to or in connection with an existing facility which 
are in excess of double the square footage of the original facility and 
all physical improvements.
    Department means the Department of Health and Human Services.
    Direct services, as used in this part, means any activity performed 
to provide services directly to an individual older person by the staff 
of a service provider, an area agency, or a State agency in a single 
planning and service area State.
    Fiscal year, as used in this part, means the Federal Fiscal Year.
    Frail, as used in this part, means having a physical or mental 
disability, including having Alzheimer's disease or a related disorder 
with neurological or organic brain dysfunction, that restricts the 
ability of an individual to perform normal daily tasks or which 
threatens the capacity of an individual to live independently.
    Human services, as used in Sec.  1321.41(a)(1) of this part, with 
respect to criteria for designation of a statewide planning and service 
area, means social, health, or welfare services.
    In-home service, as used in this part, includes: (a) Homemaker and 
home health aides; (b) visiting and telephone reassurance; (c) chore 
maintenance; (d) in-home respite care for families, including adult day 
care as a respite service for families; and (e) minor modification of 
homes that is necessary to facilitate the ability of older individuals 
to remain at home, and that is not available under other programs, 
except that not more than $150 per client may be expended under this 
part for such modification.
    Means test, as used in the provison of services, means the use of an 
older person's income or resource to deny or limit that person's receipt 
of services under this part.
    Official duties, as used in section 307(a)(12)(J) of the Act with 
respect to representatives of the Long-Term Care Ombudsman Program, 
means work pursuant to the Long-Term Care Ombudsman Program authorized 
by the Act or State law and carried out under the auspices and general 
direction of the State Long-Term Care Ombudsman.
    Periodic, as used in sections 306(a)(6) and 307(a)(8) of the Act 
with respect to evaluations of, and public hearings on, activities 
carried out under State and area plans, means, at a minimum, once each 
fiscal year.
    Reservation, as used in section 305(b)(4) of the Act with respect to 
the designation of planning and service areas, means any federally or 
State recognized Indian tribe's reservation, pueblo, or colony, 
including former reservations in Oklahoma, Alaskan Native

[[Page 154]]

regions established pursuant to the Alaska Native Claims Settlement Act 
(85 Stat. 688), and Indian allotments.
    Service provider, as used in section 306(a)(1) of the Act with 
respect to the provison of supportive and nutrition services, means an 
entity that is awarded a subgrant or contract from an area agency to 
provide services under the area plan.
    Severe disability, as used to carry out the provisions of the Act, 
means a severe chronic disability attributable to mental and/or physical 
impairment of an individual that:
    (a) Is likely to continue indefinitely; and
    (b) Results in substantial functional limitation in 3 or more of the 
following major life activities:
    (1) Self-care,
    (2) Receptive and expressive language,
    (3) Learning,
    (4) Mobility,
    (5) Self-direction,
    (6) Capacity for independent living, and
    (7) Economic self-sufficiency.



Sec.  1321.5  Applicability of other regulations.

    Several other regulations apply to all activities under this part. 
These include but are not limited to:
    (a) 45 CFR part 16--Procedures of the Departmental Grant Appeals 
Board;
    (b) 45 CFR part 75--Uniform Administrative Requirements, Cost 
Principles, and Audit Requirements for HHS Awards, except Sec.  75.206;
    (c) 45 CFR part 80--Nondiscrimination under Programs Receiving 
Federal Assistance through the Department of Health and Human Services: 
Effectuation of title VI of the Civil Rights Act of 1964;
    (d) 45 CFR part 81--Practice and Procedures for Hearings Under Part 
80 of this title;
    (e) 45 CFR part 84--Nondiscrimination on the Basis of Handicap in 
Programs and Activities Receiving or Benefiting from Federal Financial 
Participation;
    (f) 45 CFR part 91--Nondiscrimination on the Basis of Age in HHS 
Programs or Activities Receiving Federal Financial Assistance;
    (g) [Reserved]
    (h) 45 CFR part 100--Intergovernmental Review of Department of 
Health and Human Services Programs and Activities; and
    (i) 5 CFR part 900, subpart F, Standards for a Merit System of 
Personnel Administration.

[53 FR 33766, Aug. 31, 1988, as amended at 81 FR 3022, Jan. 20, 2016]



                 Subpart B_State Agency Responsibilities



Sec.  1321.7  Mission of the State agency.

    (a) The Older Americans Act intends that the State agency on aging 
shall be the leader relative to all aging issues on behalf of all older 
persons in the State. This means that the State agency shall proactively 
carry out a wide range of functions related to advocacy, planning, 
coordination, interagency linkages, information sharing, brokering, 
monitoring and evaluation, designed to lead to the development or 
enhancement of comprehensive and coordinated community based systems in, 
or serving, communities throughout the State. These systems shall be 
designed to assist older persons in leading independent, meaningful and 
dignified lives in their own homes and communities as long as possible.
    (b) The State agency shall designate area agencies on aging for the 
purpose of carrying out the mission described above for the State agency 
at the sub-State level. The State agency shall designate as its area 
agencies on aging only those sub-state agencies having the capacity and 
making the commitment to fully carry out the mission described for area 
agencies in Sec.  1321.53 below.
    (c) The State agency shall assure that the resources made available 
to area agencies on aging under the Older Americans Act are used to 
carry out the mission described for area agencies in Sec.  1321.53 
below.



Sec.  1321.9  Organization and staffing of the State agency.

    (a) The State shall designate a sole State agency to develop and 
administer the State plan required under this part

[[Page 155]]

and serve as the effective visible advocate for the elderly within the 
State.
    (b) The State agency shall have an adequate number of qualified 
staff to carry out the functions prescribed in this part.
    (c) The State agency shall have within the State agency, or shall 
contract or otherwise arrange with another agency or organization, as 
permitted by section 307(a)(12)(A), an Office of the State Long-Term 
Care Ombudsman, with a full-time State ombudsman and such other staff as 
are appropriate.
    (d) If a State statute establishes a State ombudsman program which 
will perform the functions of section 307(a)(12) of the Act, the State 
agency continues to be responsible to assure that all of the 
requirements of the Act for this program are met regardless of the State 
legislation or source of funds. In such cases, the Governor shall 
confirm this through an assurance in the State plan.



Sec.  1321.11  State agency policies.

    (a) The State agency on aging shall develop policies governing all 
aspects of programs operated under this part, including the ombudsman 
program whether operated directly by the State agency or under contract. 
These policies shall be developed in consultation with other appropriate 
parties in the State. The State agency is responsible for enforcement of 
these policies.
    (b) The policies developed by the State agency shall address the 
manner in which the State agency will monitor the performance of all 
programs and activities initiated under this part for quality and 
effectiveness. The State Long-Term Care Ombudsman shall be responsible 
for monitoring the files, records and other information maintained by 
the Ombudsman program. Such monitoring may be conducted by a designee of 
the Ombudsman. Neither the Ombudsman nor a designee shall disclose 
identifying information of any complainant or long-term care facility 
resident to individuals outside of the Ombudsman program, except as 
otherwise specifically provided in Sec.  1324.11(e)(3) of this chapter.

[53 FR 33766, Aug. 31, 1988, as amended at 80 FR 7758, Feb. 11, 2015; 81 
FR 35645, June 3, 2016]



Sec.  1321.13  Advocacy responsibilities.

    (a) The State agency shall:
    (1) Review, monitor, evaluate and comment on Federal, State and 
local plans, budgets, regulations, programs, laws, levies, hearings, 
policies, and actions which affect or may affect older individuals and 
recommend any changes in these which the State agency considers to be 
appropriate;
    (2) Provide technical assistance to agencies, organizations, 
associations, or individuals representing older persons; and
    (3) Review and comment, upon request, on applications to State and 
Federal agencies for assistance relating to meeting the needs of older 
persons.
    (b) No requirement in this section shall be deemed to supersede a 
prohibition contained in a Federal appropriation on the use of Federal 
funds to lobby the Congress.



Sec.  1321.15  Duration, format and effective date of the State plan.

    (a) A State may use its own judgment as to the format to use for the 
plan, how to collect information for the plan, and whether the plan will 
remain in effect for two, three or four years.
    (b) An approved State plan or amendment, as indentified in Sec.  
1321.17, becomes effective on the date designated by the Commissioner.
    (c) A State agency may not make expenditures under a new plan or 
amendment requiring approval, as identified in Sec.  1321.17 and Sec.  
1321.19, until it is approved.



Sec.  1321.17  Content of State plan.

    To receive a grant under this part, a State shall have an approved 
State plan as prescribed in section 307 of the Act. In addition to 
meeting the requirements of section 307, a State plan shall include:
    (a) Identification by the State of the sole State agency that has 
been designated to develop and administer the plan.
    (b) Statewide program objectives to implement the requirements under 
Title III of the Act and any objectives established by the Commissioner 
through the rulemaking process.

[[Page 156]]

    (c) A resource allocation plan indicating the proposed use of all 
title III funds administered by a State agency, and the distribution of 
title III funds to each planning and service area.
    (d) Identification of the geographic boundaries of each planning and 
service area and of area agencies on aging designated for each planning 
and service area, if appropriate.
    (e) Provision of prior Federal fiscal year information related to 
low income minority and rural older individuals as required by sections 
307(a)(23) and (29) of the Act.
    (f) Each of the assurances and provisions required in sections 305 
and 307 of the Act, and provisions that the State meets each of the 
requirements under Sec. Sec.  1321.5 through 1321.75 of this part, and 
the following assurances as prescribed by the Commissioner:
    (1) Each area agency engages only in activities which are consistent 
with its statutory mission as prescribed in the Act and as specified in 
State policies under Sec.  1321.11;
    (2) Preference is given to older persons in greatest social or 
economic need in the provision of services under the plan;
    (3) Procedures exist to ensure that all services under this part are 
provided without use of any means tests;
    (4) All services provided under title III meet any existing State 
and local licensing, health and safety requirements for the provision of 
those services;
    (5) Older persons are provided opportunities to voluntarily 
contribute to the cost of services;
    (6) Area plans shall specify as submitted, or be amended annually to 
include, details of the amount of funds expended for each priority 
service during the past fiscal year;
    (7) The State agency on aging shall develop policies governing all 
aspects of programs operated under this part, including the manner in 
which the ombudsman program operates at the State level and the relation 
of the ombudsman program to area agencies where area agencies have been 
designated;
    (8) The State agency will require area agencies on aging to arrange 
for outreach at the community level that identifies individuals eligible 
for assistance under this Act and other programs, both public and 
private, and informs them of the availability of assistance. The 
outreach efforts shall place special emphasis on reaching older 
individuals with the greatest economic or social needs with particular 
attention to low income minority individuals, including outreach to 
identify older Indians in the planning and service area and inform such 
older Indians of the availability of assistance under the Act.
    (9) The State agency shall have and employ appropriate procedures 
for data collection from area agencies on aging to permit the State to 
compile and transmit to the Commissioner accurate and timely statewide 
data requested by the Commissioner in such form as the Commissioner 
directs; and
    (10) If the State agency proposes to use funds received under 
section 303(f) of the Act for services other than those for preventive 
health specified in section 361, the State plan shall demonstrate the 
unmet need for the services and explain how the services are appropriate 
to improve the quality of life of older individuals, particularly those 
with the greatest economic or social need, with special attention to 
low-income minorities.
    (11) Area agencies shall compile available information, with 
necessary supplementation, on courses of post-secondary education 
offered to older individuals with little or no tuition. The assurance 
shall include a commitment by the area agencies to make a summary of the 
information available to older individuals at multipurpose senior 
centers, congregate nutrition sites, and in other appropriate places.
    (12) Individuals with disabilities who reside in a non-institutional 
household with and accompany a person eligible for congregate meals 
under this part shall be provided a meal on the same basis that meals 
are provided to volunteers pursuant to section 307(a)(13)(I) of the Act.
    (13) The services provided under this part will be coordinated, 
where appropriate, with the services provided under title VI of the Act.
    (14)(i) The State agency will not fund program development and 
coordinated

[[Page 157]]

activities as a cost of supportive services for the administration of 
area plans until it has first spent 10 percent of the total of its 
combined allotments under Title III on the administration of area plans;
    (ii) State and area agencies on aging will, consistent with 
budgeting cycles (annually, biannually, or otherwise), submit the 
details of proposals to pay for program development and coordination as 
a cost of supportive services, to the general public for review and 
comment; and
    (iii) The State agency certifies that any such expenditure by an 
area agency will have a direct and positive impact on the enhancement of 
services for older persons in the planning and service area.
    (15) The State agency will assure that where there is a significant 
population of older Indians in any planning and service area that the 
area agency will provide for outreach as required by section 
306(a)(6)(N) of the Act.



Sec.  1321.19  Amendments to the State plan.

    (a) A State shall amend the State plan whenever necessary to 
reflect:
    (1) New or revised Federal statutes or regulations,
    (2) A material change in any law, organization, policy or State 
agency operation, or
    (3) Information required annually by sections 307(a) (23) and (29) 
of the Act.
    (b) Information required by paragraph (a)(3) of this section shall 
be submitted according to guidelines prescribed by the Commissioner.
    (c) If a State intends to amend provisions of its plan required 
under Sec. Sec.  1321.17(a) or (f), it shall submit its proposed 
amendment to the Commissioner for approval. If the State changes any of 
the provisions of its plan required under Sec.  1321.17 (b) through (d), 
it shall amend the plan and notify the Commissioner. A State need only 
submit the amended portions of the plan.



Sec.  1321.21  Submission of the State plan or plan amendment 
to the Commissioner for approval.

    Each State plan, or plan amendment which requires approval of the 
Commissioner, shall be signed by the Governor or the Governor's designee 
and submitted to the Commissioner to be considered for approval at least 
45 calendar days before the proposed effective date of the plan or plan 
amendment.



Sec.  1321.23  Notification of State plan or State plan amendment approval.

    (a) The Commissioner approves a State plan or State plan amendment 
by notifying the Governor or the Governor's designee in writing.
    (b) When the Commissioner proposes to disapprove a State plan or 
amendment, the Commissioner notifies the Governor in writing, giving the 
reasons for the proposed disapproval, and informs the State agency that 
it has 60 days to request a hearing on the proposed disapproval 
following the procedures specified in subpart E of this part.



Sec.  1321.25  Restriction of delegation of authority to other agencies.

    A State or area agency may not delegate to another agency the 
authority to award or administer funds under this part.



Sec.  1321.27  Public participation.

    The State agency shall have a mechanism to obtain and shall consider 
the views of older persons and the public in developing and 
administering the State plan.



Sec.  1321.29  Designation of planning and service areas.

    (a) Any unit of general purpose local government, region within a 
State recognized for area wide planning, metropolitan area, or Indian 
reservation may make application to the State agency to be designated as 
a planning and service area, in accordance with State agency procedures.
    (b) A State agency shall approve or disapprove any application 
submitted under paragraph (a) of this section.
    (c) Any applicant under paragraph (a) of this section whose 
application for designation as a planning and service area is denied by 
a State agency may appeal the denial to the State agency, under 
procedures specified by the State agency.

[[Page 158]]

    (d) If the State denies an applicant for designation as a planning 
and service area under paragraph (a) of this section, the State shall 
provide a hearing on the denial of the application, if requested by the 
applicant, as well as issue a written decision.



Sec.  1321.31  Appeal to Commissioner.

    This section sets forth the procedures the Commissioner follows for 
providing hearings to applicants for designation as a planning and 
service area, under Sec.  1321.29(a), whose application is denied by the 
State agency.
    (a) Any applicant for designation as a planning and service area 
under Sec.  1321.29(a) whose application is denied, and who has been 
provided a hearing and a written decision by the State agency, may 
appeal the denial to the Commissioner in writing within 30 days 
following receipt of a State's hearing decision.
    (b) The Commissioner, or the Commissioner's designee, holds a 
hearing, and issues a written decision, within 60 days following receipt 
of an applicant's written request to appeal the State agency hearing 
decision to deny the applicant's request under Sec.  1321.29(a).
    (c) When the Commissioner receives an appeal, the Commissioner 
requests the State Agency to submit:
    (1) A copy of the applicant's application for designation as a 
planning and service area;
    (2) A copy of the written decision of the State; and
    (3) Any other relevant information the Commissioner may require.
    (d) The procedures for the appeal consist of:
    (1) Prior written notice to the applicant and the State agency of 
the date, time and location of the hearing;
    (2) The required attendance of the head of the State agency or 
designated representatives;
    (3) An opportunity for the applicant to be represented by counsel or 
other representative; and
    (4) An opportunity for the applicant to be heard in person and to 
present documentary evidence.
    (e) The Commissioner may:
    (1) Deny the appeal and uphold the decision of a State agency;
    (2) Uphold the appeal and require a State agency to designate the 
applicant as a planning and service area; or
    (3) Take other appropriate action, including negotiating between the 
parties or remanding the appeal to the State agency after initial 
findings.
    (f) The Commissioner will uphold the decision of the State agency if 
it followed the procedures specified in Sec.  1321.29, and the hearing 
decision is not manifestly inconsistent with the purpose of this part.
    (g) The Commissioner's decision to uphold the decision of a State 
agency does not extend beyond the period of the approved State plan.



Sec.  1321.33  Designation of area agencies.

    An area agency may be any of the types of agencies under section 
305(c) of the Act. A State may not designate any regional or local 
office of the State as an area agency. However, when a new area agency 
on aging is designated, the State shall give right of first refusal to a 
unit of general purpose local government as required in section 
305(b)(5)(B) of the Act. If the unit of general purpose local government 
chooses not to exercise this right, the State shall then give preference 
to an established office on aging as required in section 305(c)(5) of 
the Act.



Sec.  1321.35  Withdrawal of area agency designation.

    (a) In carrying out section 305 of the Act, the State agency shall 
withdraw the area agency designation whenever it, after reasonable 
notice and opportunity for a hearing, finds that:
    (1) An area agency does not meet the requirements of this part;
    (2) An area plan or plan amendment is not approved;
    (3) There is substantial failure in the provisions or administration 
of an approved area plan to comply with any provision of the Act or of 
this part or policies and procedures established and published by the 
State agency on aging; or
    (4) Activities of the area agency are inconsistent with the 
statutory mission prescribed in the Act or in conflict with the 
requirement of the Act that it function only as an area agency on aging.

[[Page 159]]

    (b) If a State agency withdraws an area agency's designation under 
paragraph (a) of this section it shall:
    (1) Provide a plan for the continuity of area agency functions and 
services in the affected planning and service area; and
    (2) Designate a new area agency in the planning and service area in 
a timely manner.
    (c) If necessary to ensure continuity of services in a planning and 
service area, the State agency may, for a period of up to 180 days after 
its final decision to withdraw designation of an area agency:
    (1) Perform the responsibilities of the area agency; or
    (2) Assign the responsibilities of the area agency to another agency 
in the planning and service area.
    (d) The Commissioner may extend the 180-day period if a State 
agency:
    (1) Notifies the Commissioner in writing of its action under 
paragraph (c) of this section;
    (2) Requests an extension; and
    (3) Demonstrates to the satisfaction of the Commissioner a need for 
the extension.



Sec.  1321.37  Intrastate funding formula.

    (a) The State agency, after consultation with all area agencies in 
the State, shall develop and use an intrastate funding formula for the 
allocation of funds to area agencies under this part. The State agency 
shall publish the formula for review and comment by older persons, other 
appropriate agencies and organizations and the general public. The 
formula shall reflect the proportion among the planning and service 
areas of persons age 60 and over in greatest economic or social need 
with particular attention to low-income minority individuals. The State 
agency shall review and update its formula as often as a new State plan 
is submitted for approval.
    (b) The intrastate funding formula shall provide for a separate 
allocation of funds received under section 303(f) for preventive health 
services. In the award of such funds to selected planning and service 
areas, the State agency shall give priority to areas of the State:
    (1) Which are medically underserved; and
    (2) In which there are large numbers of individuals who have the 
greatest economic and social need for such services.
    (c) The State agency shall submit its intrastate formula to the 
Commissioner for review and comment. The intrastate formula shall be 
submitted separately from the State plan.



Sec.  1321.41  Single State planning and service area.

    (a) The Commissioner will approve the application of a State which 
was, on or before October 1, 1980, a single planning and service area, 
to continue as a single planning and service area if the State agency 
demonstrates that:
    (1) The State is not already divided for purposes of planning and 
administering human services; or
    (2) The State is so small or rural that the purposes of this part 
would be impeded if the State were divided into planning and services 
areas; and
    (3) The State agency has the capacity to carry out the 
responsibilities of an area agency, as specified in the Act.
    (b) Prior to the Commissioner's approval for a State to continue as 
a single planning and service area, all the requirements and procedures 
in Sec.  1321.29 shall be met.
    (c) If the Commissioner approves a State's application under 
paragraph (a) this section:
    (1) The Commissioner notifies the State agency to develop a single 
State planning and service area plan which meets the requirements of 
section 306 and 307 of the Act.
    (2) A State agency shall meet all the State and area agency function 
requirements specified in the Act.
    (d) If the Commissioner denies the application because a State fails 
to meet the criteria or requirements set forth in paragraphs (a) or (b) 
of this section, the Commissioner notifies the State that it shall 
follow procedures in section 305(A)(1)(E) of the Act to divide the State 
into planning and service areas.

[[Page 160]]



Sec.  1321.43  Interstate planning and service area.

    (a) Before requesting permission of the Commissioner to designate an 
interstate planning and service area, the Governor of each State shall 
execute a written agreement that specifies the State agency proposed to 
have lead responsibility for administering the programs within the 
interstate planning and service area and lists the conditions, agreed 
upon by each State, governing the administration of the interstate 
planning and service area.
    (b) The lead State shall request permission of the Commissioner to 
designate an interstate planning and service area.
    (c) The lead State shall submit the request together with a copy of 
the agreement as part of its State plan or as an amendment to its State 
plan.
    (d) Prior to the Commissioner's approval for States to designate an 
interstate planning and service area, the Commissioner shall determine 
that all applicable requirements and procedures in Sec.  1321.29 and 
Sec.  1321.33 of this part, shall be met.
    (e) If the request is approved, the Commissioner, based on the 
agreement between the States, increases the allotment of the State with 
lead responsibility for administering the programs within the interstate 
area and reduces the allotment(s) of the State(s) without lead 
responsibility by one of these methods:
    (1) Reallotment of funds in proportion to the number of individuals 
age 60 and over for that portion of the interstate planning and service 
area located in the State without lead responsibility; or
    (2) Reallotment of funds based on the intrastate funding formula of 
the State(s) without lead responsibility.



Sec.  1321.45  Transfer between congregate and home-delivered 
nutrition service allotments.

    (a) A State agency, without the approval of the Commissioner, may 
transfer between allotments up to 30 percent of a State's separate 
allotments for congregate and home-delivered nutrition services.
    (b) A State agency may apply to the Commissioner to transfer from 
one allotment to the other a portion exceeding 30 percent of a State's 
separate allotments for congregate and home-delivered nutrition 
services. A State agency desiring such a transfer of allotment shall:
    (1) Specify the percent which it proposes to transfer from one 
allotment to the other;
    (2) Specify whether the proposed transfer is for the entire period 
of a State plan or a protion of a plan period; and
    (3) Specify the purpose of the proposed transfer.



Sec.  1321.47  Statewide non-Federal share requirements.

    The statewide non-Federal share for State or area plan 
administration shall not be less than 25 percent of the funds usesd 
under this part. All services statewide, including ombudsman services 
and services funded under Title III-B, C, D, E and F, shall be funded on 
a statewide basis with a non-Federal share of not less than 15 percent. 
Matching requirements for individual area agencies are determined by the 
State agency.



Sec.  1321.49  State agency maintenance of effort.

    In order to avoid a penalty, each fiscal year the State agency, to 
meet the required non-federal share applicable to its allotments under 
this part, shall spend under the State plan for both services and 
administration at least the average amount of State funds it spent under 
the plan for the three previous fiscal years. If the State agency spends 
less than this amount, the Commissioner reduces the State's allotments 
for supportive and nutrition services under this part by a percentage 
equal to the percentage by which the State reduced its expenditures.



Sec.  1321.51  Confidentiality and disclosure of information.

    (a) A State agency shall have procedures to protect the 
confidentiality of information about older persons collected in the 
conduct of its responsibilities. The procedures shall ensure that no 
information about an order person, or obtained from an older person by a 
service provider or the State or area

[[Page 161]]

agencies, is disclosed by the provider or agency in a form that 
identifies the person without the informed consent of the person or of 
his or her legal representative, unless the disclosure is required by 
court order, or for program monitoring by authorized Federal, State, or 
local monitoring agencies.
    (b) A State agency is not required to disclose those types of 
information or documents that are exempt from disclosure by a Federal 
agency under the Federal Freedom of Information Act, 5 U.S.C. 552.
    (c) A State or area agency on aging may not require a provider of 
legal assistance under this part to reveal any information that is 
protected by attorney client privilege.



Sec.  1321.52  Evaluation of unmet need.

    Each State shall submit objectively collected and statistically 
valid data with evaluative conclusions concerning the unmet need for 
supportive services, nutrition services, and multipurpose senior centers 
gathered pursuant to section 307(a)(3)(A) of the Act to the 
Commissioner. The evaluations for each State shall consider all services 
in these categories regardless of the source of funding for the 
services. This information shall be submitted not later than June 30, 
1989 and shall conform to guidance issued by the Commissioner.



                 Subpart C_Area Agency Responsibilities



Sec.  1321.53  Mission of the area agency.

    (a) The Older Americans Act intends that the area agency on aging 
shall be the leader relative to all aging issues on behalf of all older 
persons in the planning and service area. This means that the area 
agency shall proactively carry out, under the leadership and direction 
of the State agency, a wide range of functions related to advocacy, 
planning, coordination, inter-agency linkages, information sharing, 
brokering, monitoring and evaluation, designed to lead to the 
development or enhancement of comprehensive and coordinated community 
based systems in, or serving, each community in the planning and service 
area. These systems shall be designed to assist older persons in leading 
independent, meaningful and dignified lives in their own homes and 
communities as long as possible.
    (b) A comprehensive and coordinated community based system described 
in paragraph (a) of this section shall:
    (1) Have a visible focal point of contact where anyone can go or 
call for help, information or referral on any aging issue;
    (2) Provide a range of options:
    (3) Assure that these options are readily accessible to all older 
persons: The independent, semi-dependent and totally dependent, no 
matter what their income;
    (4) Include a commitment of public, private, voluntary and personal 
resources committed to supporting the system;
    (5) Involve collaborative decision-making among public, private, 
voluntary, religious and fraternal organizations and older people in the 
community;
    (6) Offer special help or targetted resources for the most 
vulnerable older persons, those in danger of losing their independence;
    (7) Provide effective referral from agency to agency to assure that 
information or assistance is received, no matter how or where contact is 
made in the community;
    (8) Evidence sufficient flexibility to respond with appropriate 
individualized assistance, especially for the vulnerable older person;
    (9) Have a unique character which is tailored to the specific nature 
of the community;
    (10) Be directed by leaders in the community who have the respect, 
capacity and authority necessary to convene all interested persons, 
assess needs, design solutions, track overall success, stimulate change 
and plan community responses for the present and for the future.
    (c) The resources made available to the area agency on aging under 
the Older Americans Act are to be used to finance those activities 
necessary to achieve elements of a community based system set forth in 
paragraph (b) of this section. For the purpose of assuring access to 
information and services for older persons, the area agency

[[Page 162]]

shall work with elected community officials in the planning and service 
area to designate one or more focal points on aging in each community, 
as appropriate. The area agency shall list designated focal points in 
the area plan. It shall be the responsibility of the area agency, with 
the approval of the State agency, to define ``community'' for the 
purposes of this section. Since the Older Americans Act defines focal 
point as a ``facility'' established to encourage the maximum collocation 
and coordination of services for older individuals, special 
consideration shall be given to developing and/or designating multi-
purpose senior centers as community focal points on aging. The area 
agency on aging shall assure that services financed under the Older 
Americans Act in, or on behalf of, the community will be either based 
at, linked to or coordinated with the focal points designated. The area 
agency on aging shall assure access from the designated focal points to 
services financed under the Older Americans Act. The area agency on 
aging shall work with, or work to assure that community leadership works 
with, other applicable agencies and institutions in the community to 
achieve maximum collocation at, coordination with or access to other 
services and opportunities for the elderly from the designated community 
focal points. The area agency may not engage in any activity which is 
inconsistent with its statutory mission prescribed in the Act or 
policies prescribed by the State under Sec.  1321.11.



Sec.  1321.55  Organization and staffing of the area agency.

    (a) An area agency may be either:
    (1) An agency whose single purpose is to administer programs for 
older persons; or
    (2) A separate organizational unit within a multi-purpose agency 
which functions only for purposes of serving as the area agency on 
aging. Where the State agency on aging designates, as an area agency on 
aging, a separate organizational unit of a multipurpose agency which has 
been serving as an area agency, the State agency action shall not be 
subject to section 305(b)(5)(B) of the Act.
    (b) The area agency, once designated, is responsible for providing 
for adequate and qualified staff to perform all of the functions 
prescribed in this part.
    (c) The designated area agency continues to function in that 
capacity until either:
    (1) The area agency informs the State agency that it no longer 
wishes to carry out the responsibilities of an area agency; or
    (2) The State agency withdraws the designation of the area agency as 
provided in Sec.  1321.35.



Sec.  1321.57  Area agency advisory council.

    (a) Functions of council. The area agency shall establish an 
advisory council. The council shall carry out advisory functions which 
further the area agency's mission of developing and coordinating 
community-based systems of services for all older persons in the 
planning and service area. The council shall advise the agency relative 
to:
    (1) Developing and administering the area plan;
    (2) Conducting public hearings;
    (3) Representing the interest of older persons; and
    (4) Reviewing and commenting on all community policies, programs and 
actions which affect older persons with the intent of assuring maximum 
coordination and responsiveness to older persons.
    (b) Composition of council. The council shall include individuals 
and representatives of community organizations who will help to enhance 
the leadership role of the area agency in developing community-based 
systems of services. The advisory council shall be made up of:
    (1) More than 50 percent older persons, including minority 
individuals who are participants or who are eligible to participate in 
programs under this part;
    (2) Representatives of older persons;
    (3) Representatives of health care provider organizations, including 
providers of veterans' health care (if appropriate);
    (4) Representatives of supportive services providers organizations;
    (5) Persons with leadership experience in the private and voluntary 
sectors;

[[Page 163]]

    (6) Local elected officials; and
    (7) The general public.
    (c) Review by advisory council. The area agency shall submit the 
area plan and amendments for review and comment to the advisory council 
before it is transmitted to the State agency for approval.



Sec.  1321.59  Submission of an area plan and plan amendments 
to the State for approval.

    The area agency shall submit the area plan and amendments to the 
State agency for approval following procedures specified by the State 
agency in the State policies prescribed by Sec.  1321.11.



Sec.  1321.61  Advocacy responsibilities of the area agency.

    (a) The area agency shall serve as the public advocate for the 
development or enhancement of comprehensive and coordinated community-
based systems of services in each community throughout the planning and 
service area.
    (b) In carrying out this responsibility, the area agency shall:
    (1) Monitor, evaluate, and, where appropriate, comment on all 
policies, programs, hearings, levies, and community actions which affect 
older persons;
    (2) Solicit comments from the public on the needs of older persons;
    (3) Represent the interests of older persons to local level and 
executive branch officials, public and private agencies or 
organizations;
    (4) Consult with and support the State's long-term care ombudsman 
program; and
    (5) Undertake on a regular basis activities designed to facilitate 
the coordination of plans and activities with all other public and 
private organizations, including units of general purpose local 
government, with responsibilities affecting older persons in the 
planning and service area to promote new or expanded benefits and 
opportunities for older persons; and
    (c) Each area agency on aging shall undertake a leadership role in 
assisting communities throughout the planning and service area to target 
resources from all appropriate sources to meet the needs of older 
persons with greatest economic or social need, with particular attention 
to low income minority individuals. Such activities may include location 
of services and specialization in the types of services must needed by 
these groups to meet this requirement. However, the area agency may not 
permit a grantee or contractor under this part to employ a means test 
for services funded under this part.
    (d) No requirement in this section shall be deemed to supersede a 
prohibition contained in the Federal appropriation on the use of Federal 
funds to lobby the Congress; or the lobbying provision applicable to 
private nonprofit agencies and organizations contained in OMB Circular 
A-122.



                     Subpart D_Service Requirements



Sec.  1321.63  Purpose of services allotments under Title III.

    (a) Title III of the Older Americans Act authorizes the distribution 
of Federal funds to the State agency on aging by formula for the 
following categories of services:
    (1) Supportive services;
    (2) Congregate meals services;
    (3) Home delivered meals services;
    (4) In-home services;
    (5) Ombudsman services;
    (6) Special needs services;
    (7) Elder abuse services;
    (8) Preventive health services; and
    (9) Outreach services.

Funds authorized under these categories are for the purpose of assisting 
the State and its area agencies to develop or enhance for older persons 
comprehensive and coordinated community based systems as described in 
Sec.  1321.53(b) throughout the State.
    (b) Except for ombudsman services, State agencies on aging will 
award the funds made available under paragraph (a) of this section to 
designated area agencies on aging according to the formula determined by 
the State agency. Except where a waiver is granted by the State agency, 
area agencies shall award these funds by grant or contract to community 
services provider agencies and organizations. All funds awarded to area 
agencies under this part are for the purpose of assisting area agencies 
to develop or enhance

[[Page 164]]

comprehensive and coordinated community based systems for older persons 
in, or serving, communities throughout the planning and service area.



Sec.  1321.65  Responsibilities of service providers under area plans.

    As a condition for receipt of funds under this part, each area 
agency on aging shall assure that providers of services shall:
    (a) Provide the area agency, in a timely manner, with statistical 
and other information which the area agency requires in order to meet 
its planning, coordination, evaluation and reporting requirements 
established by the State under Sec.  1321.13;
    (b) Specify how the provider intends to satisfy the service needs of 
low-income minority individuals in the area served, including attempting 
to provide services to low-income minority individuals at least in 
proportion to the number of low-income minority older persons in the 
population serviced by the provider;
    (c) Provide recipients with an opportunity to contribute to the cost 
of the service as provided in Sec.  1321.67;
    (d) With the consent of the older person, or his or her 
representative, bring to the attention of appropriate officials for 
follow-up, conditions or circumstances which place the older person, or 
the household of the older person, in imminent danger;
    (e) Where feasible and appropriate, make arrangements for the 
availability of services to older persons in weather related 
emergencies;
    (f) Assist participants in taking advantage of benefits under other 
programs; and
    (g) Assure that all services funded under this part are coordinated 
with other appropriate services in the community, and that these 
services do not constitute an unnecessary duplication of services 
provided by other sources.



Sec.  1321.67  Service contributions.

    (a) For services rendered with funding under the Older Americans 
Act, the area agency on aging shall assure that each service provider 
shall:
    (1) Provide each older person with an opportunity to voluntarily 
contribute to the cost of the service;
    (2) Protect the privacy of each older person with respect to his or 
her contributions; and
    (3) Establish appropriate procedures to safeguard and account for 
all contributions.
    (b) Each service provider shall use supportive services and 
nutrition services contributions to expand supportive services and 
nutrition services respectively. To that end, the State agency shall:
    (1) Permit service providers to follow either the addition 
alternative or the cost sharing alternatives as stated in 45 CFR 
75.307(e)(2) and (3); or
    (2) A combination of the two alternatives.
    (c) Each service provider under the Older Americans Act may develop 
a suggested contribution schedule for services provided under this part. 
In developing a contribution schedule, the provider shall consider the 
income ranges of older persons in the community and the provider's other 
sources of income. However, means tests may not be used for any service 
supported with funds under this part. State agencies, in developing 
State eligibility criteria for in-home services under section 343 of the 
Act, may not include a means test as an eligibility criterion.
    (d) A service provider that receives funds under this part may not 
deny any older person a service because the older person will not or 
cannot contribute to the cost of the service.

[53 FR 33766, Aug. 31, 1988, as amended at 81 FR 3022, Jan. 20, 2016]



Sec.  1321.69  Service priority for frail, homebound or isolated elderly.

    (a) Persons age 60 or over who are frail, homebound by reason of 
illness or incapacitating disability, or otherwise isolated, shall be 
given priority in the delivery of services under this part.
    (b) The spouse of the older person, regardless of age or condition, 
may receive a home-delivered meal if, according to criteria determined 
by the area agency, receipt of the meal is in the best interest of the 
homebound older person.

[[Page 165]]



Sec.  1321.71  Legal assistance.

    (a) The provisions and restrictions in this section apply only to 
legal assistance providers and only if they are providing legal 
assistance under section 307(a)(15) of the Act.
    (b) Nothing in this section is intended to prohibit any attorney 
from providing any form of legal assistance to an eligible client, or to 
interfere with the fulfillment of any attorney's professional 
responsibilities to a client.
    (c) The area agency shall award funds to the legal assistance 
provider(s) that most fully meet the standards in this subsection. The 
legal assistance provider(s) shall:
    (1) Have staff with expertise in specific areas of law affecting 
older persons in economic or social need, for example, public benefits, 
institutionalization and alternatives to institutionalization;
    (2) Demonstrate the capacity to provide effective administrative and 
judicial representation in the areas of law affecting older persons with 
economic or social need;
    (3) Demonstrate the capacity to provide support to other advocacy 
efforts, for example, the long-term care ombudsman program;
    (4) Demonstrate the capacity to provide legal services to 
institutionalized, isolated, and homebound older individuals 
effectively; and
    (5) Demonstrate the capacity to provide legal assistance in the 
principal language spoken by clients in areas where a significant number 
of clients do not speak English as their principal language.
    (d) A legal assistance provider may not require an older person to 
disclose information about income or resources as a condition for 
providing legal assistance under this part.
    (e) A legal assistance provider may ask about the person's financial 
circumstances as a part of the process of providing legal advice, 
counseling and representation, or for the purpose of identifying 
additional resources and benefits for which an older person may be 
eligible.
    (f) A legal assistance provider and its attorneys may engage in 
other legal activities to the extent that there is no conflict of 
interest nor other interference with their professional responsibilities 
under this Act.
    (g) No provider shall use funds received under the Act to provide 
legal assistance in a fee generating case unless other adequate 
representation is unavailable or there is an emergency requiring 
immediate legal action. All providers shall establish procedures for the 
referral of fee generating cases.
    (1) ``Fee generating case'' means any case or matter which, if 
undertaken on behalf of an eligible client by an attorney in private 
practice, reasonably may be expected to result in a fee for legal 
services from an award to a client, from public funds, or from the 
opposing party.
    (2) Other adequate representation is deemed to be unavailable when:
    (i) Recovery of damages is not the principal object of the client; 
or
    (ii) A court appoints a provider or an employee of a provider 
pursuant to a statute or a court rule or practice of equal applicability 
to all attorneys in the jurisdiction; or
    (iii) An eligible client is seeking benefits under title II of the 
Social Security Act, 42 U.S.C. 401, et seq., Federal Old Age, Survivors, 
and Disability Insurance Benefits; or title XVI of the Social Security 
Act, 42 U.S.C. 1381, et seq., Supplemental Security Income for Aged, 
Blind, and Disabled.
    (3) A provider may seek and accept a fee awarded or approved by a 
court or administrative body, or included in a settlement.
    (4) When a case or matter accepted in accordance with this section 
results in a recovery of damages, other than statutory benefits, a 
provider may accept reimbursement for out-of-pocket costs and expenses 
incurred in connection with the case or matter.
    (h) A provider, employee of the provider, or staff attorney shall 
not engage in the following prohibited political activities:
    (1) No provider or its employees shall contribute or make available 
Older Americans Act funds, personnel or equipment to any political party 
or association or to the campaign of any candidate for public or party 
office; or for use in advocating or opposing any ballot measure, 
initiative, or referendum;

[[Page 166]]

    (2) No provider or its employees shall intentionally identify the 
title III program or provider with any partisan or nonpartisan political 
activity, or with the campaign of any candidate for public or party 
office;
    (3) While engaged in legal assistance activities supported under the 
Act, no attorney shall engage in any political activity;
    (i) No funds made available under the Act shall be used for lobbying 
activities, including but not limited to any activities intended to 
influence any decision or activity by any nonjudicial Federal, State or 
local individual or body. Nothing in this section is intended to 
prohibit an employee from:
    (1) Communicating with a governmental agency for the purpose of 
obtaining information, clarification, or interpretation of the agency's 
rules, regulations, practices, or policies;
    (2) Informing a client about a new or proposed statute, executive 
order, or administrative regulation;
    (3) Responding to an individual client's request for advice only 
with respect to the client's own communications to officials unless 
otherwise prohibited by the Older Americans Act, title III regulations 
or other applicable law. This provision does not authorize publication 
of lobbying materials or training of clients on lobbying techniques or 
the composition of a communication for the client's use; or
    (4) Making direct contact with the area agency for any purpose;
    (5) Providing a client with administrative representation in 
adjudicatory or rulemaking proceedings or negotiations, directly 
affecting that client's legal rights in a particular case, claim or 
application;
    (6) Communicating with an elected official for the sole purpose of 
bringing a client's legal problem to the attention of that official; or
    (7) Responding to the request of a public official or body for 
testimony, legal advice or other statements on legislation or other 
issues related to aging; provided that no such action will be taken 
without first obtaining the written approval of the responsible area 
agency.
    (j) While carrying out legal assistance activities and while using 
resources provided under the Act, no provider or its employees shall:
    (1) Participate in any public demonstration, picketing, boycott, or 
strike, except as permitted by law in connection with the employee's own 
employment situation;
    (2) Encourage, direct, or coerce others to engage in such 
activities; or
    (3) At any time engage in or encourage others to engage in:
    (i) Any illegal activity; or
    (ii) Any intentional identification of programs funded under the Act 
or recipient with any political activity.
    (k) None of the funds made available under the Act may be used to 
pay dues exceeding $100 per recipient per annum to any organization 
(other than a bar association), a purpose or function of which is to 
engage in activities prohibited under these regulations unless such dues 
are not used to engage in activities for which Older Americans Act funds 
cannot be used directly.



Sec.  1321.73  Grant related income under Title III-C.

    States and sub-grantees must require that their subgrantees' grant 
related income be used in either the matching or cost sharing 
alternative in 75.307(e)(3) or the additive alternative in Sec.  
75.307(e)(2) or a combination of the two. The deductive alternative 
described in Sec.  75.307(e)(1) is not permitted.

[53 FR 33766, Aug. 31, 1988, as amended at 81 FR 3022, Jan. 20, 2016]



Sec.  1321.75  Licenses and safety.

    The State shall ensure:
    (a) That, in making awards for multipurpose senior center 
activities, the area agency will ensure that the facility complies with 
all applicable State and local health, fire, safety, building, zoning 
and sanitation laws, ordinances or codes; and
    (b) The technical adequacy of any proposed alteration or renovation 
of a multipurpose senior center assisted under this part, by requiring 
that any alteration or renovation of a multipurpose senior center that 
affects the load bearing members of the facility is structurally sound 
and complies with all applicable local or State ordinances, laws, or 
building codes.

[[Page 167]]



             Subpart E_Hearing Procedures for State Agencies



Sec.  1321.77  Scope.

    (a) Hearing procedures for State plan disapproval, as provided for 
in section 307(c) and section 307(d) of the Act are subject to the 
previsions of 45 CFR part 213 with the following exceptions:
    (1) Section 213.1(a); Sec.  213.32(d); and Sec.  213.33 do not 
apply.
    (2) Reference to SRS Hearing Clerk shall be read to mean HHS Hearing 
Clerk.
    (3) References to Administrator shall be read to mean Commissioner 
on Aging.
    (b) Instead of the scope described in Sec.  213.1(a), this subpart 
governs the procedures and opportunity for a hearing on:
    (1) Disapproval of a State plan or amendment:
    (2) Determination that a State agency does not meet the requirements 
of this part:
    (3) Determination that there is a failure in the provisions or the 
administration of an approved plan to comply substantially with Federal 
requirements, including failure to comply with any assurance required 
under the Act or under this part.



Sec.  1321.79  When a decision is effective.

    (a) The Commissioner's decision specifies the effective date for 
AoA's reduction and withholding of the State's grant. This effective 
date may not be earlier than the date of the Commissioner's decision or 
later than the first day of the next calendar quarter.
    (b) The decision remains in effect unless reversed or stayed on 
judicial appeal, or until the agency or the plan is changed to meet all 
Federal requirements, except that the Commissioner may modify or set 
aside his or her decision before the record of the proceedings under 
this subpart is filed in court.



Sec.  1321.81  How the State may appeal.

    A State may appeal the final decision of the Commissioner 
disapproving the State plan or plan amendment, finding of noncompliance, 
or finding that a State agency does not meet the requirements of this 
part to the U.S. Court of Appeals for the circuit in which the State is 
located. The State shall file the appeal within 30 days of the 
Commissioner's final decision.



Sec.  1321.83  How the Commissioner may reallot the State's withheld payments.

    The Commissioner disburses funds withheld from the State directly to 
any public or nonprofit private organization or agency, or political 
subdivision of the State that has the authority and capacity to carry 
out the functions of the State agency and submits a State plan which 
meets the requirements of this part and which contains an agreement to 
meet the non-federal share requirements.



PART 1322_GRANTS TO INDIAN TRIBES FOR SUPPORT AND NUTRITION SERVICES--
Table of Contents



Sec.
1322.1 Basis and purpose of this part.
1322.3 Definitions.
1322.5 Applicability of other regulations.
1322.7 Confidentiality and disclosure of information.
1322.9 Contributions.
1322.11 Prohibition against supplantation.
1322.13 Supportive services.
1322.15 Nutrition services.
1322.17 Access to information.
1322.19 Application requirements.
1322.21 Application approval.
1322.23 Hearing procedures.

    Authority: 42 U.S.C. 3001; Title VI, Part A of the Older Americans 
Act.

    Source: 53 FR 33774, Aug. 31, 1988, unless otherwise noted. 
Redesignated at 81 FR 35645, June 3, 2016.



Sec.  1322.1  Basis and purpose of this part.

    This program was established to meet the unique needs and 
circumstances of American Indian elders on Indian reservations. This 
part implements title VI (part A) of the Older Americans Act, as 
amended, by establishing the requirements that an Indian tribal 
organization shall meet in order to receive a grant to promote the 
delivery of services for older Indians that are comparable to services 
provided under Title III. This part also

[[Page 168]]

prescribes application and hearing requirements and procedures for these 
grants.



Sec.  1322.3  Definitions.

    Acquiring, as used in section 307(a)(14) of the Act, means obtaining 
ownership of an existing facility in fee simple or by lease for 10 years 
or more for use as a multipurpose senior center.
    Altering or renovating, as used in section 307(a)(14) of the Act 
with respect to multipurpose senior centers, means making modifications 
to or in connection with an existing facility which are necessary for 
its effective use as a center. These may include renovation, repair, or 
expansion which is not in excess of double the square footage of the 
original facility and all physical improvements.
    Budgeting period, as used in Sec.  1322.19, means the intervals of 
time into which a period of assistance (project period) is divided for 
budgetary and funding purposes.
    Constructing, as used in section 307(a)(14) of the Act with respect 
to multipurpose senior centers, means building a new facility, including 
the costs of land acquisition and architectural and engineering fees, or 
making modifications to or in connection with an existing facility which 
are in excess of double the square footage of the original facility and 
all physical improvements.
    Department, means the Department of Health and Human Services.
    Indian reservation, means the reservation of any Federally 
recognized Indian tribe, including any band, nation, pueblo, or 
rancheria, any former reservation in Oklahoma, any community on non-
trust land under the jurisdiction of an Indian tribe, including a band, 
nation, pueblo, or rancheria, with allotted lands, or lands subject to a 
restriction against alienation imposed by the United States, and Alaskan 
Native regions established, pursuant to the Alaska Native Claims 
Settlement Act (84 Stat. 688).
    Indian tribe, means any Indian tribe, band, nation, or organized 
group or community, including any Alaska Native Village, regional or 
village corporation as defined in or established pursuant to the Alaska 
Native Claims Settlement Act (85 Stat. 688) which is recognized as 
eligible for the special programs and services provided by the United 
States to Indians because of their status as Indians (25 U.S.C. 450b).
    Means test, as used in the provision of services, means the use of 
an older Indian's income or resources to deny or limit that person's 
receipt of services under this part.
    Older Indians, means those individuals who have attained the minimum 
age determined by the tribe for services.
    Project period, as used in Sec.  1322.19, means the total time for 
which a project is approved for support, including any extensions.
    Service area, as used in Sec.  1322.9(b) and elsewhere in this part, 
means that geographic area approved by the Commissioner in which the 
tribal organization provides supportive and nutritional services to 
older Indians residing there. A service area may include all or part of 
the reservation or any portion of a county or counties which has a 
common boundary with the reservation. A service area may also include a 
non-contiguous area if the designation of such an area will further the 
purpose of the Act and will provide for more effective administration of 
the program by the tribal organization.
    Service provider, means any entity that is awarded a subgrant or 
contract from a tribal organization to provide services under this part.
    Tribal organization, as used in Sec.  1322.7 and elsewhere in this 
part, means the recognized governing body of any Indian tribe, or any 
legally established organization of Indians which is controlled, 
sanctioned or chartered by such governing body or which is 
democratically elected by the adult members of the Indian community to 
be served by such organization and which includes the maximum 
participation of Indians in all phases of its activities. Provided that 
in any case where a contract is let or grant made to an organization to 
perform services benefiting more than one Indian tribe, the approval of 
each Indian tribe shall be a prerequisite to the letting or making of 
the contract or grant (25 U.S.C. 450b).

[53 FR 33774, Aug. 31, 1988, as amended at 81 FR 35645, June 3, 2016]

[[Page 169]]



Sec.  1322.5  Applicability of other regulations.

    The following regulations in title 45 of the Code of Federal 
Regulations apply to all activities under this part:
    (a) Part 16--Procedures of the Departmental Grant Appeals Board;
    (b) [Reserved]
    (c) 45 CFR part 75--Uniform Administrative Requirements, Cost 
Principles, and Audit Requirements for HHS Awards.
    (d) Part 80--Nondiscrimination Under Programs Receiving Federal 
Assistance through the Department of Health and Human Services: 
Effectuation of title VI of the Civil Rights Act of 1964;
    (e) Part 81--Practice and Procedure for Hearings under part 80 of 
this Title;
    (f) Part 84--Nondiscrimination on the Basis of Handicap in Programs 
and Activities Receiving Benefits from Federal Financial Participation; 
and
    (g) Part 91--Nondiscrimination on the Basis of Age in Programs or 
Activities Receiving Federal Financial Assistance from HHS.

[53 FR 33774, Aug. 31, 1988, as amended at 81 FR 3022, Jan. 20, 2016]



Sec.  1322.7  Confidentiality and disclosure of information.

    A tribal organization shall have confidentiality and disclosure 
procedures as follows:
    (a) A tribal organization shall have procedures to ensure that no 
information about an older Indian or obtained from an older Indian by 
any provider of services is disclosed by the provider of such services 
in a form that identifies the person without the informed consent of the 
person or of his or her legal representative, unless the disclosure is 
required by court order, or for program monitoring by authorized Federal 
or tribal monitoring agencies.
    (b) A tribal organization is not required to disclose those types of 
information or documents that are exempt from disclosure by a Federal 
agency under the Federal Freedom of Information Act, 5 U.S.C. 552.



Sec.  1322.9  Contributions.

    (a) Each tribal organization shall:
    (1) Provide each older Indian with a free and voluntary opportunity 
to contribute to the cost of the service;
    (2) Protect the privacy of each older Indian with respect to his or 
her contribution;
    (3) Establish appropriate procedures to safeguard and account for 
all contributions;
    (4) Use all services contributions to expand comprehensive and 
coordinated services systems supported under this part, while using 
nutrition services contributions only to expand services as provided 
under section 307(a)(13)(c)(ii) of the Act.
    (b) Each tribal organization may develop a suggested contribution 
schedule for services provided under this part. In developing a 
contribution schedule, the tribal organization shall consider the income 
ranges of older Indians in the service area and the tribal 
organization's other sources of income. However, means tests may not be 
used.
    (c) A tribal organization that receives funds under this part may 
not deny any older Indian a service because the older Indian will not or 
cannot contribute to the cost of the service.



Sec.  1322.11  Prohibition against supplantation.

    A tribal organization shall ensure that the activities provided 
under a grant under this part will be in addition to, and not in 
substitution for, comparable activities provided without Federal 
assistance.



Sec.  1322.13  Supportive services.

    (a) A tribal organization may provide any of the supportive services 
mentioned under title III of the Older Americans Act, and any other 
supportive services that are necessary for the general welfare of older 
Indians.
    (b) If an applicant elects to provide multipurpose senior center 
activities or uses any of the funds under this part for acquiring, 
altering or renovating a multipurpose senior center facility, it shall 
comply with the following requirements:
    (1) The tribal organization shall comply with all applicable local 
health, fire, safety, building, zoning and sanitation laws, ordinances 
or codes.
    (2) The tribal organization shall assure the technical adequacy of 
any proposed alteration or renovation of a multipurpose senior centers 
assisted

[[Page 170]]

under this part. The tribal organization assures technical adequacy by 
requiring that any alteration or renovation of a multipurpose senior 
center that affects the load bearing members of the facility is 
structurally sound and complies with all applicable local or State 
ordinances, laws, or building codes.
    (c) If an applicant elects to provide legal services, it shall 
substantially comply with the requirements in Sec.  1321.71 and legal 
services providers shall comply fully with the requirements in 
Sec. Sec.  1321.71(c) through 1321.71(p).



Sec.  1322.15  Nutrition services.

    (a) In addition to providing nutrition services to older Indians, a 
tribal organization may:
    (1) Provide nutrition services to the spouses of older Indians;
    (2) Provide nutrition services to non-elderly handicapped or 
disabled Indians who reside in housing facilities occupied primarily by 
the elderly, at which congregate nutrition services are provided;
    (3) Offer a meal, on the same basis as meals are provided to older 
Indians, to individuals providing volunteer services during meal hours; 
and
    (4) Provide a meal to individuals with disabilities who reside in a 
non-institutional household with and accompany a person eligible for 
congregate meals under that part.
    (b) Each tribal organization may receive cash payments in lieu of 
donated foods for all or any portion of its funding available under 
section 311(a)(4) of the Act. To receive cash or commodities, the tribal 
organization shall have an agreement with the U.S. Department of 
Agriculture's Food and Nutrition Service (FNS) to be a distributing 
agency.
    (c) Where applicable, the tribal organization shall work with 
agencies responsible for administering other programs to facilitate 
participation of older Indians.



Sec.  1322.17  Access to information.

    A tribal organization shall:
    (a) Establish or have a list of all services that are available to 
older Indians in the service area,
    (b) Maintain a list of services needed or requested by the older 
Indians; and
    (c) Provide assistance to older Indians to help them take advantage 
of available services.



Sec.  1322.19  Application requirements.

    A tribal organization shall have an approved application. The 
application shall be submitted as prescribed in section 604 of the Act 
and in accordance with the Commissioner's instructions for the specified 
project and budget periods. The application shall provide for:
    (a) Program objectives, as set forth in section 604(a)(5) of the 
Act, and any objectives established by the Commissioner.
    (b) A description of the geographic boundaries of the service area 
proposed by the tribal organization:
    (c) Documentation of the ability of the tribal organization to 
deliver supportive and nutrition services to older Indians, or 
documentation that the tribal organization has effectively administered 
supportive and nutrition services within the last 3 years;
    (d) Assurances as prescribed by the Commissioner that:
    (1) A tribal organization represents at least 50 individuals who 
have attained 60 years of age or older;
    (2) A tribal organization shall comply with all applicable State and 
local license and safety requirements for the provision of those 
services;
    (3) If a substantial number of the older Indians residing in the 
service area are of limited English-speaking ability, the tribal 
organization shall utilize the services of workers who are fluent in the 
language spoken by a predominant number of older Indians;
    (4) Procedures to ensure that all services under this part are 
provided without use of any means tests;
    (5) A tribal organization shall comply with all requirements set 
forth in Sec.  1322.7 through 1322.17; and
    (6) The services provided under this part will be coordinated, where 
applicable, with services provided under title III of the Act.
    (e) A tribal resolution(s) authorizing the tribal organization to 
apply for a grant under this part; and

[[Page 171]]

    (f) Signature by the principal official of the tribe.

[53 FR 33774, Aug. 31, 1988, as amended at 81 FR 35645, June 3, 2016]



Sec.  1322.21  Application approval.

    (a) Approval of any application under section 604(e) of the Act, 
shall not commit the Commissioner in any way to make additional, 
supplemental, continuation, or other awards with respect to any approved 
application or portion thereof.
    (b) The Commissioner may give first priority in awarding grants to 
grantees which have effectively administered such grants in the prior 
year.



Sec.  1322.23  Hearing procedures.

    In meeting the requirements of section 604(d)(3) of the Act, if the 
Commissioner disapproves an application from an eligible tribal 
organization, the tribal organization may file a written request for a 
hearing with the Commissioner.
    (a) The request shall be postmarked or delivered in person within 30 
days of the date of the disapproval notice. If it requests a hearing, 
the tribal organization shall submit to the Commissioner, as part of the 
request, a full written response to each objection specified in the 
notice of disapproval, including the pertinent facts and reasons in 
support of its response, and any and all documentation to support its 
position. Service of the request shall also be made on the individual(s) 
designated by the Commissioner to represent him or her.
    (b) The Administration on Aging shall have the opportunity to 
respond with 30 days to the merits of the tribal organization's request.
    (c) The Commissioner notifies the tribal organization in writing of 
the date, time and place for the hearing.
    (d) The hearing procedures include the right of the tribal 
organization to:
    (1) A hearing before the Commissioner or an official designated by 
the Commissioner;
    (2) Be heard in person or to be represented by counsel, at no 
expense to the Administration on Aging;
    (3) Present written evidence prior to and at the hearing, and 
present oral evidence at the hearing if the Commissioner or designated 
official decides that oral evidence is necessary for the proper 
resolution of the issues involved, and
    (4) Have the staff directly responsible for reviewing the 
application either present at the hearing, or have a deposition from the 
staff, whichever the Commissioner or designated official decides.
    (e) The Commissioner or designated official conducts a fair and 
impartial hearing, takes all necessary action to avoid delay and to 
maintain order and has all powers necessary to these ends.
    (f) Formal rules of evidence do not apply to the hearings.
    (g) The official hearing transcript together with all papers, 
documents, exhibits, and requests filed in the proceedings, including 
rulings, constitutes the record for decision.
    (h) After consideration of the record, the Commissoner or designated 
official issues a written decision, based on the record, which sets 
forth the reasons for the decision and the evidence on which it was 
based. The decision is issued within 60 days of the date of the hearing, 
constitutes the final administrative action on the matter and is 
promptly mailed to the tribal organization.
    (i) Either the tribal organization or the staff of the 
Administration on Aging may request for good cause an extension of any 
of the time limits specified in this section.



PART 1323_GRANTS FOR SUPPORTIVE AND NUTRITIONAL SERVICES 
TO OLDER HAWAIIAN NATIVES--Table of Contents



Sec.
1323.1 Basis and purpose of this part.
1323.3 Definitions.
1323.5 Applicability of other regulations.
1323.7 Confidentiality and disclosure of information.
1323.9 Contributions.
1323.11 Prohibition against supplantation.
1323.13 Supportive services.
1323.15 Nutrition services.
1323.17 Access to information.
1323.19 Application requirements.
1323.21 Application approval.
1323.23 Hearing procedures.

    Authority: 42 U.S.C. 3001; Title VI Part B of the Older Americans 
Act.

[[Page 172]]


    Source: 53 FR 33777, Aug. 31, 1988, unless otherwise noted. 
Redesignated at 81 FR 35645, June 3, 2016.



Sec.  1323.1  Basis and purpose of this part.

    This program was established to meet the unique needs and 
circumstances of Older Hawaiian Natives. This part implements title VI 
(part B) of the Older Americans Act, as amended, by establishing the 
requirements that a public or nonprofit private organization shall meet 
in order to receive a grant to promote the delivery of services for 
older Hawaiian Natives that are comparable to services provided under 
title III. This part also prescribes application and hearing 
requirements and procedures for these grants.



Sec.  1323.3  Definitions.

    Acquiring, as used in section 307(a)(14) of the Act, means obtaining 
ownership of an existing facility in fee simple or by lease of 10 years 
or more for use as a multipurpose senior center.
    Act, means the Older Americans Act of 1965, as amended.
    Altering or renovating, as used in section 307(a)(14) of the Act 
with respect to multipurpose senior centers, means making modifications 
to or in connection with an existing facility which are necessary for 
its effective use as a center. These may include renovation, repair, or 
expansion which is not in excess of double the square footage of the 
original facility and all physical improvements.
    Budgeting period, as used in Sec.  1323.19, means the intervals of 
time into which a period of assistance (project period) is divided for 
budgetary and funding purposes.
    Constructing, as used in section 307(a)(14) of the Act with respect 
to multipurpose senior centers, means building a new facility, including 
the costs of land acquisition and architectural and engineering fees, or 
making modificaitons to or in connection with an existing facility which 
are in excess of double the square footage of the original facility and 
all physical improvements.
    Department, means the Department of Health and Human Services.
    Eligible organization, means a public or nonprofit private 
organization having the capacity to provide services under this part for 
older Hawaiian Natives.
    Grantee, as used in this part, means an eligible organization that 
has received funds to provide services to older Hawaiians.
    Hawaiian Native, as used in this part, means any individual any of 
whose ancestors were native of the area which consists of the Hawaiian 
Islands prior to 1778.
    Means test, as used in the provision of services, means the use of 
an older Hawaiian Native's income or resources to deny or limit that 
person receipt of services under this part.
    Older Hawaiian, means any individual, age 60 or over, who is an 
Hawaiian Native.
    Project period, as used in Sec.  1323.19, means the total time for 
which a project is approved for support, including any extensions.
    Service area, as used in Sec.  1323.9(b) and elsewhere in this part, 
means that geographic area approved by the Commissioner in which the 
grantee provides supportive and nutritional services to older Hawaiian 
Natives residing there.

[53 FR 33777, Aug. 31, 1988, as amended at 81 FR 35646, June 3, 2016]



Sec.  1323.5  Applicability of other regulations.

    The following regulations in title 45 of the Code of Federal 
Regulations apply to all activities under this part:
    (a) Part 16-Procedures of the Departmental Grant Appeals Board;
    (b) [Reserved]
    (c) 45 CFR part 75--Uniform Administrative Requirements, Cost 
Principles, and Audit Requirements for HHS Awards.
    (d) Part 80-Nondiscrimination Under Programs Receiving Federal 
Assistance through the Department of Health and Human Services: 
Effectuation of title VI of the Civil Rights Act of 1964;
    (e) Part 81-Practice and procedures for hearings under part 80;
    (f) Part 84-Nondiscrimination on the Basis of Handicap in Programs 
and Activities Receiving Benefits from Federal Financing Participation; 
and

[[Page 173]]

    (g) Part 91-Nondiscrimination on the Basis of Age in Programs or 
Activities Receiving Federal Financial Assistance from HHS.

[53 FR 33777, Aug. 31, 1988, as amended at 81 FR 3022, Jan. 20, 2016]



Sec.  1323.7  Confidentiality and disclosure of information.

    A grantee shall have confidentiality and disclosure procedures as 
follows:
    (a) The grantee shall have procedures to ensure that no information 
about an older Hawaiian Native or obtained from an older Hawaiian Native 
is disclosed in a form that identifies the person without the informed 
consent of the person or of his or her legal representative, unless the 
disclosure is required by court order, or for program monitoring by 
authorized Federal monitoring agencies.
    (b) A grantee is not required to disclose those types of information 
or documents that are exempt from disclosure by a Federal agency under 
the Federal Freedom of Information Act, 5 U.S.C. 552.



Sec.  1323.9  Contributions.

    (a) Each grantee shall:
    (1) Provide each older Hawaiian Native with a free and voluntary 
opportunity to contribute to the cost of the service;
    (2) Protect the privacy of each older Hawaiian Native with respect 
to his or her contribution;
    (3) Establish appropriate procedures to safeguard and account for 
all contributions;
    (4) Use all supportive services contributions to expand the services 
provided under this part; and
    (5) Use all nutrition services contributions only to expand services 
as provided under section 307(a)(13)(c)(ii) of the Act.
    (b) Each grantee may develop a suggested contribution schedule for 
services provided under this part. In developing a contribution 
schedule, the grantee shall consider the income ranges of older Hawaiian 
Natives in the service area and the grantee's other sources of income. 
However, means tests may not be used.
    (c) A grantee may not deny any older Hawaiian a service because the 
older Hawaiian will not or cannot contribute to the cost of the service.



Sec.  1323.11  Prohibition against supplantation.

    A grantee shall ensure that the activities provided under a grant 
under this part will be in addition to, and not in substitution for, 
comparable activities provided without Federal assistance.



Sec.  1323.13  Supportive services.

    (a) A grantee may provide any of the supportive services specified 
under title III of the Older Americans Act and any other supportive 
services, approved in the grantee's application, that are necessary for 
the general welfare of older Hawaiian Natives.
    (b) If a grantee elects to provide multipurpose senior center 
activities or uses any of the funds under this part for acquiring, 
altering or renovating a multipurpose senior center facility, it shall 
comply with the following requirements:
    (1) The grantee shall comply with all applicable local health, fire, 
safety, building, zoning and sanitation laws, ordinances or codes.
    (2) The grantee shall assure the technical adequacy of any proposed 
alteration or renovation of a multipurpose senior center assisted under 
this part. The grantee shall assure technical adequacy by requiring that 
any alteration or renovation of a multipurpose senior center that 
affects the load bearing members of the facility is structurally sound 
and complies with all applicable local or State ordinances, laws, or 
building codes.
    (c) If a grantee elects to provide legal services, it shall 
substantially comply with the requirements in Sec.  1321.71 and legal 
services providers shall comply fully with the requirements in 
Sec. Sec.  1321.71(c) through 1321.71(p).



Sec.  1323.15  Nutrition services.

    (a) In addition to providing nutrition services to older Hawaiian 
Natives, a grantee may:
    (1) Provide nutrition services to the spouses of older Hawaiian 
Natives;

[[Page 174]]

    (2) Provide nutrition services to non-elderly handicapped or 
disabled Hawaiian Natives who reside in housing facilities occupied 
primarily by the elderly, at which congregate nutrition services are 
provided;
    (3) Offer a meal, on the same basis as meals are provided to older 
Hawaiian Natives, to individuals providing volunteer services during 
meal hours; and
    (4) Provide a meal to individuals with disabilities who reside in a 
non-institutional household with and accompany a person eligible for 
congregate meals under that part.
    (b) Each grantee may receive cash payments in lieu of donated foods 
for all or any portion of its funding available under section 311(a)(4) 
of the Act. To receive cash or commodities, the grantee shall have an 
agreement with the U.S. Department of Agriculture's Food and Nutrition 
Service (FNS) to be a distributing agency.
    (c) Where applicable, the grantee shall work with agencies 
responsible for administering other programs to facilitate participation 
of older Hawaiian Natives.



Sec.  1323.17  Access to information.

    A grantee shall:
    (a) Establish or have a list of all services that are available to 
older Hawaiian Natives in the service area;
    (b) Maintain a list of services needed or requested by the older 
Hawaiians; and
    (c) Provide assistance to older Hawaiian Natives to help them take 
advantage of available services.



Sec.  1323.19  Application requirements.

    To receive funds under this part, an eligible organization shall 
submit an application as prescribed in section 623 of the Act and in 
accordance with the Commissioner's instructions for the specified 
project and budget periods. The application shall provide for:
    (a) Program objectives, as set forth in section 623(a)(6) of the 
Act, and any objectives established by the Commissioner;
    (b) A description of the geographic boundaries of the service area 
proposed by the eligible organization;
    (c) Documentation of the organization's ability to serve older 
Hawaiian Natives;
    (d) Assurances as prescribed by the Commissioner that:
    (1) The eligible organization represents at least 50 older Hawaiian 
Natives who have attained 60 years of age or older;
    (2) The eligible organization shall conduct all activities on behalf 
of older Hawaiian natives in close coordination with the State agency 
and Area Agency on Aging:
    (3) The eligible organization shall comply with all applicable State 
and local license and safety requirements for the provision of those 
services;
    (4) The eligible organization shall ensure that all services under 
this part are provided without use of any means tests;
    (5) The eligible organization shall comply with all requirements set 
forth in Sec. Sec.  1323.7 through 1323.17; and
    (6) The services provided under this part will be coordinated, where 
applicable, with services provided under title III of the Act.
    (e) Signature by the principal official of the eligible 
organization.

[53 FR 33777, Aug. 31, 1988, as amended at 81 FR 35646, June 3, 2016]



Sec.  1323.21  Application approval.

    (a) Approval of any application under section 623(d) of the Act, 
shall not commit the Commissioner in any way to make additional, 
supplemental, continuation, or other awards with respect to any approved 
application or portion thereof.
    (b) The Commissioner may give first priority in awarding grants to 
eligible applicant organizations that have prior experience in serving 
Hawaiian Natives, particularly older Hawaiian Natives.



Sec.  1323.23  Hearing procedures.

    In accordance with section 623(c)(3) of the Act, if the Commissioner 
disapproves an application from an eligible organization, the 
organization may file a written request for a hearing with the 
Commissioner.
    (a) The request shall be postmarked or delivered in person within 30 
days of the date of the disapproval notice. If it

[[Page 175]]

requests a hearing, the organization shall submit to the Commissioner, 
as part of the request, a full written response to each objection 
specified in the notice of disapproval, including the pertinent facts 
and reasons in support of its response, and any and all documentation to 
support its position. Service of the request shall also be made on the 
individual(s) designated by the Commissioner to represent him or her.
    (b) The Administration on Aging shall have the opportunity to 
respond within 30 days to the merits of the organization's request.
    (c) The Commissioner notifies the organization in writing of the 
date, time and place for the hearing.
    (d) The hearing procedures include the right of the organization to:
    (1) A hearing before the Commissioner or an official designated by 
the Commissioner;
    (2) Be heard in person or to be represented by counsel, at no 
expense to the Administration on Aging;
    (3) Present written evidence prior to and at the hearing, and 
present oral evidence at the hearing if the Commissioner or the 
Commissioner's designee decides that oral evidence is necessary for the 
proper resolution of the issues involved, and
    (4) Have the staff directly responsible for reviewing the 
application either present at the hearing, or have a deposition from the 
staff, whichever the Commissioner or the Commissioner's designee 
decides.
    (e) The Commissioner or the Commissioner's designee conducts a fair 
and impartial hearing, takes all necessary action to avoid delay and to 
maintain order and has all powers necessary to these ends.
    (f) Formal rules of evidence do not apply to the hearings.
    (g) The official hearing transcript together with all papers 
documents, exhibits, and requests filed in the proceedings, including 
rulings, constitutes the record for decision.
    (h) After consideration of the record, the Commissioner or the 
Commissioner's designee issues a written decision, based on the record, 
which sets forth the reasons for the decision and the evidence on which 
it was based. The decision is issued within 60 days of the date of the 
hearing, constitutes the final administrative action on the matter and 
is promptly mailed to the organization.
    (i) Either the organization or the staff of the Administration on 
Aging may request, for good cause, an extension of any of the time 
limits specified in this section.



PART 1324_ALLOTMENTS FOR VULNERABLE ELDER RIGHTS PROTECTION ACTIVITIES--
Table of Contents



            Subpart A_State Long-Term Care Ombudsman Program

Sec.
1324.1 Definitions.
1324.11 Establishment of the Office of the State Long-Term Care 
          Ombudsman.
1324.13 Functions and responsibilities of the State Long-Term Care 
          Ombudsman.
1324.15 State agency responsibilities related to the Ombudsman program.
1324.17 Responsibilities of agencies hosting local Ombudsman entities.
1324.19 Duties of the representatives of the Office.
1324.21 Conflicts of interest.

Subpart B [Reserved]

    Authority: 42 U.S.C. 3001 et seq.

    Source: 80 FR 7758, Feb. 11, 2015, unless otherwise noted. 
Redesignated at 81 FR 35645, June 3, 2016.



            Subpart A_State Long-Term Care Ombudsman Program



Sec.  1324.1  Definitions.

    The following definitions apply to this part:
    Immediate family, pertaining to conflicts of interest as used in 
section 712 of the Act, means a member of the household or a relative 
with whom there is a close personal or significant financial 
relationship.
    Office of the State Long-Term Care Ombudsman, as used in sections 
711 and 712 of the Act, means the organizational unit in a State or 
territory which is headed by a State Long-Term Care Ombudsman.
    Representatives of the Office of the State Long-Term Care Ombudsman, 
as used in sections 711 and 712 of the Act,

[[Page 176]]

means the employees or volunteers designated by the Ombudsman to fulfill 
the duties set forth in Sec.  1324.19(a), whether personnel supervision 
is provided by the Ombudsman or his or her designees or by an agency 
hosting a local Ombudsman entity designated by the Ombudsman pursuant to 
section 712(a)(5) of the Act.
    Resident representative means any of the following:
    (1) An individual chosen by the resident to act on behalf of the 
resident in order to support the resident in decision-making; access 
medical, social or other personal information of the resident; manage 
financial matters; or receive notifications;
    (2) A person authorized by State or Federal law (including but not 
limited to agents under power of attorney, representative payees, and 
other fiduciaries) to act on behalf of the resident in order to support 
the resident in decision-making; access medical, social or other 
personal information of the resident; manage financial matters; or 
receive notifications;
    (3) Legal representative, as used in section 712 of the Act; or
    (4) The court-appointed guardian or conservator of a resident.
    (5) Nothing in this rule is intended to expand the scope of 
authority of any resident representative beyond that authority 
specifically authorized by the resident, State or Federal law, or a 
court of competent jurisdiction.
    State Long-Term Care Ombudsman, or Ombudsman, as used in sections 
711 and 712 of the Act, means the individual who heads the Office and is 
responsible to personally, or through representatives of the Office, 
fulfill the functions, responsibilities and duties set forth in 
Sec. Sec.  1324.13 and 1324.19.
    State Long-Term Care Ombudsman program, Ombudsman program, or 
program, as used in sections 711 and 712 of the Act, means the program 
through which the functions and duties of the Office are carried out, 
consisting of the Ombudsman, the Office headed by the Ombudsman, and the 
representatives of the Office.
    Willful interference means actions or inactions taken by an 
individual in an attempt to intentionally prevent, interfere with, or 
attempt to impede the Ombudsman from performing any of the functions or 
responsibilities set forth in Sec.  1324.13, or the Ombudsman or a 
representative of the Office from performing any of the duties set forth 
in Sec.  1324.19.

[80 FR 7758, Feb. 11, 2015, as amended at 81 FR 35646, June 3, 2016]



Sec.  1324.11  Establishment of the Office of the State 
Long-Term Care Ombudsman.

    (a) The Office of the State Long-Term Care Ombudsman shall be an 
entity which shall be headed by the State Long-Term Care Ombudsman, who 
shall carry out all of the functions and responsibilities set forth in 
Sec.  1324.13 and shall carry out, directly and/or through local 
Ombudsman entities, the duties set forth in Sec.  1324.19.
    (b) The State agency shall establish the Office and, thereby carry 
out the Long-Term Care Ombudsman program in any of the following ways:
    (1) The Office is a distinct entity, separately identifiable, and 
located within or connected to the State agency; or
    (2) The State agency enters into a contract or other arrangement 
with any public agency or nonprofit organization which shall establish a 
separately identifiable, distinct entity as the Office.
    (c) The State agency shall require that the Ombudsman serve on a 
full-time basis. In providing leadership and management of the Office, 
the functions, responsibilities, and duties, as set forth in Sec. Sec.  
1324.13 and 1324.19 are to constitute the entirety of the Ombudsman's 
work. The State agency or other agency carrying out the Office shall not 
require or request the Ombudsman to be responsible for leading, managing 
or performing the work of non-ombudsman services or programs except on a 
time-limited, intermittent basis.
    (1) This provision does not limit the authority of the Ombudsman 
program to provide ombudsman services to populations other than 
residents of long-term care facilities so long as the appropriations 
under the Act are utilized to serve residents of long-term care 
facilities, as authorized by the Act.
    (2) [Reserved]

[[Page 177]]

    (d) The State agency, and other entity selecting the Ombudsman, if 
applicable, shall ensure that the Ombudsman meets minimum qualifications 
which shall include, but not be limited to, demonstrated expertise in:
    (1) Long-term services and supports or other direct services for 
older persons or individuals with disabilities;
    (2) Consumer-oriented public policy advocacy;
    (3) Leadership and program management skills; and
    (4) Negotiation and problem resolution skills.
    (e) Policies and procedures. Where the Ombudsman has the legal 
authority to do so, he or she shall establish policies and procedures, 
in consultation with the State agency, to carry out the Ombudsman 
program in accordance with the Act. Where State law does not provide the 
Ombudsman with legal authority to establish policies and procedures, the 
Ombudsman shall recommend policies and procedures to the State agency or 
other agency in which the Office is organizationally located, and such 
agency shall establish Ombudsman program policies and procedures. Where 
local Ombudsman entities are designated within area agencies on aging or 
other entities, the Ombudsman and/or appropriate agency shall develop 
such policies and procedures in consultation with the agencies hosting 
local Ombudsman entities and with representatives of the Office. The 
policies and procedures must address the matters within this subsection.
    (1) Program administration. Policies and procedures regarding 
program administration must include, but not be limited to:
    (i) A requirement that the agency in which the Office is 
organizationally located must not have personnel policies or practices 
which prohibit the Ombudsman from performing the functions and 
responsibilities of the Ombudsman, as set forth in Sec.  1324.13, or 
from adhering to the requirements of section 712 of the Act. Nothing in 
this provision shall prohibit such agency from requiring that the 
Ombudsman, or other employees or volunteers of the Office, adhere to the 
personnel policies and procedures of the entity which are otherwise 
lawful.
    (ii) A requirement that an agency hosting a local Ombudsman entity 
must not have personnel policies or practices which prohibit a 
representative of the Office from performing the duties of the Ombudsman 
program or from adhering to the requirements of section 712 of the Act. 
Nothing in this provision shall prohibit such agency from requiring that 
representatives of the Office adhere to the personnel policies and 
procedures of the host agency which are otherwise lawful.
    (iii) A requirement that the Ombudsman shall monitor the performance 
of local Ombudsman entities which the Ombudsman has designated to carry 
out the duties of the Office.
    (iv) A description of the process by which the agencies hosting 
local Ombudsman entities will coordinate with the Ombudsman in the 
employment or appointment of representatives of the Office.
    (v) Standards to assure prompt response to complaints by the Office 
and/or local Ombudsman entities which prioritize abuse, neglect, 
exploitation and time-sensitive complaints and which consider the 
severity of the risk to the resident, the imminence of the threat of 
harm to the resident, and the opportunity for mitigating harm to the 
resident through provision of Ombudsman program services.
    (vi) Procedures that clarify appropriate fiscal responsibilities of 
the local Ombudsman entity, including but not limited to clarifications 
regarding access to programmatic fiscal information by appropriate 
representatives of the Office.
    (2) Procedures for access. Policies and procedures regarding timely 
access to facilities, residents, and appropriate records (regardless of 
format and including, upon request, copies of such records) by the 
Ombudsman and representatives of the Office must include, but not be 
limited to:
    (i) Access to enter all long-term care facilities at any time during 
a facility's regular business hours or regular visiting hours, and at 
any other time when access may be required by the circumstances to be 
investigated;
    (ii) Access to all residents to perform the functions and duties set 
forth in Sec. Sec.  1324.13 and 1324.19;

[[Page 178]]

    (iii) Access to the name and contact information of the resident 
representative, if any, where needed to perform the functions and duties 
set forth in Sec. Sec.  1324.13 and 1324.19;
    (iv) Access to review the medical, social and other records relating 
to a resident, if--
    (A) The resident or resident representative communicates informed 
consent to the access and the consent is given in writing or through the 
use of auxiliary aids and services;
    (B) The resident or resident representative communicates informed 
consent orally, visually, or through the use of auxiliary aids and 
services, and such consent is documented contemporaneously by a 
representative of the Office in accordance with such procedures; and
    (C) Access is necessary in order to investigate a complaint, the 
resident representative refuses to consent to the access, a 
representative of the Office has reasonable cause to believe that the 
resident representative is not acting in the best interests of the 
resident, and the representative of the Office obtains the approval of 
the Ombudsman;
    (v) Access to the administrative records, policies, and documents, 
to which the residents have, or the general public has access, of long-
term care facilities;
    (vi) Access of the Ombudsman to, and, upon request, copies of all 
licensing and certification records maintained by the State with respect 
to long-term care facilities; and
    (vii) Reaffirmation that the Health Insurance Portability and 
Accountability Act of 1996 (HIPAA) Privacy Rule, 45 CFR part 160 and 45 
CFR part 164, subparts A and E, does not preclude release by covered 
entities of resident private health information or other resident 
identifying information to the Ombudsman program, including but not 
limited to residents' medical, social, or other records, a list of 
resident names and room numbers, or information collected in the course 
of a State or Federal survey or inspection process.
    (3) Disclosure. Policies and procedures regarding disclosure of 
files, records and other information maintained by the Ombudsman program 
must include, but not be limited to:
    (i) Provision that the files, records, and information maintained by 
the Ombudsman program may be disclosed only at the discretion of the 
Ombudsman or designee of the Ombudsman for such purpose and in 
accordance with the criteria developed by the Ombudsman, as required by 
Sec.  1324.13(e);
    (ii) Prohibition of the disclosure of identifying information of any 
resident with respect to whom the Ombudsman program maintains files, 
records, or information, except as otherwise provided by Sec.  
1324.19(b)(5) through (8), unless:
    (A) The resident or the resident representative communicates 
informed consent to the disclosure and the consent is given in writing 
or through the use of auxiliary aids and services;
    (B) The resident or resident representative communicates informed 
consent orally, visually, or through the use of auxiliary aids and 
services and such consent is documented contemporaneously by a 
representative of the Office in accordance with such procedures; or
    (C) The disclosure is required by court order;
    (iii) Prohibition of the disclosure of identifying information of 
any complainant with respect to whom the Ombudsman program maintains 
files, records, or information, unless:
    (A) The complainant communicates informed consent to the disclosure 
and the consent is given in writing or through the use of auxiliary aids 
and services;
    (B) The complainant communicates informed consent orally, visually, 
or through the use of auxiliary aids and services and such consent is 
documented contemporaneously by a representative of the Office in 
accordance with such procedures; or
    (C) The disclosure is required by court order;
    (iv) Exclusion of the Ombudsman and representatives of the Office 
from abuse reporting requirements, including when such reporting would 
disclose identifying information of a complainant or resident without 
appropriate

[[Page 179]]

consent or court order, except as otherwise provided in Sec.  
1324.19(b)(5) through (8); and
    (v) Adherence to the provisions of paragraph (e)(3) of this section, 
regardless of the source of the request for information or the source of 
funding for the services of the Ombudsman program, notwithstanding 
section 705(a)(6)(c) of the Act.
    (4) Conflicts of interest. Policies and procedures regarding 
conflicts of interest must establish mechanisms to identify and remove 
or remedy conflicts of interest as provided in Sec.  1324.21, including:
    (i) Ensuring that no individual, or member of the immediate family 
of an individual, involved in the employment or appointment of the 
Ombudsman is subject to a conflict of interest;
    (ii) Requiring that other agencies in which the Office or local 
Ombudsman entities are organizationally located have policies in place 
to prohibit the employment or appointment of an Ombudsman or 
representatives of the Office with a conflict that cannot be adequately 
removed or remedied;
    (iii) Requiring that the Ombudsman take reasonable steps to refuse, 
suspend or remove designation of an individual who has a conflict of 
interest, or who has a member of the immediate family with a conflict of 
interest, which cannot be adequately removed or remedied;
    (iv) Establishing the methods by which the Office and/or State 
agency will periodically review and identify conflicts of the Ombudsman 
and representatives of the Office; and
    (v) Establishing the actions the Office and/or State agency will 
require the Ombudsman or representatives of the Office to take in order 
to remedy or remove such conflicts.
    (5) Systems advocacy. Policies and procedures related to systems 
advocacy must assure that the Office is required and has sufficient 
authority to carry out its responsibility to analyze, comment on, and 
monitor the development and implementation of Federal, State, and local 
laws, regulations, and other government policies and actions that 
pertain to long-term care facilities and services and to the health, 
safety, welfare, and rights of residents, and to recommend any changes 
in such laws, regulations, and policies as the Office determines to be 
appropriate.
    (i) Such procedures must exclude the Ombudsman and representatives 
of the Office from any State lobbying prohibitions to the extent that 
such requirements are inconsistent with section 712 of the Act.
    (ii) Nothing in this part shall prohibit the Ombudsman or the State 
agency or other agency in which the Office is organizationally located 
from establishing policies which promote consultation regarding the 
determinations of the Office related to recommended changes in laws, 
regulations, and policies. However, such a policy shall not require a 
right to review or pre-approve positions or communications of the 
Office.
    (6) Designation. Policies and procedures related to designation must 
establish the criteria and process by which the Ombudsman shall 
designate and refuse, suspend or remove designation of local Ombudsman 
entities and representatives of the Office.
    (i) Such criteria should include, but not be limited to, the 
authority to refuse, suspend or remove designation a local Ombudsman 
entity or representative of the Office in situations in which an 
identified conflict of interest cannot be adequately removed or remedied 
as set forth in Sec.  1324.21.
    (ii) [Reserved]
    (7) Grievance process. Policies and procedures related to grievances 
must establish a grievance process for the receipt and review of 
grievances regarding the determinations or actions of the Ombudsman and 
representatives of the Office.
    (i) Such process shall include an opportunity for reconsideration of 
the Ombudsman decision to refuse, suspend, or remove designation of a 
local Ombudsman entity or representative of the Office. Notwithstanding 
the grievance process, the Ombudsman shall make the final determination 
to designate or to refuse, suspend, or remove designation of a local 
Ombudsman entity or representative of the Office.
    (ii) [Reserved]
    (8) Determinations of the Office. Policies and procedures related to 
the determinations of the Office must ensure

[[Page 180]]

that the Ombudsman, as head of the Office, shall be able to 
independently make determinations and establish positions of the Office, 
without necessarily representing the determinations or positions of the 
State agency or other agency in which the Office is organizationally 
located, regarding:
    (i) Disclosure of information maintained by the Ombudsman program 
within the limitations set forth in section 712(d) of the Act;
    (ii) Recommendations to changes in Federal, State and local laws, 
regulations, policies and actions pertaining to the health, safety, 
welfare, and rights of residents; and
    (iii) Provision of information to public and private agencies, 
legislators, the media, and other persons, regarding the problems and 
concerns of residents and recommendations related to the problems and 
concerns.

[80 FR 7758, Feb. 11, 2015, as amended at 81 FR 35646, June 3, 2016; 85 
FR 72911, Nov. 16, 2020]



Sec.  1324.13  Functions and responsibilities of the State 
Long-Term Care Ombudsman.

    The Ombudsman, as head of the Office, shall have responsibility for 
the leadership and management of the Office in coordination with the 
State agency, and, where applicable, any other agency carrying out the 
Ombudsman program, as follows.
    (a) Functions. The Ombudsman shall, personally or through 
representatives of the Office--
    (1) Identify, investigate, and resolve complaints that--
    (i) Are made by, or on behalf of, residents; and
    (ii) Relate to action, inaction, or decisions, that may adversely 
affect the health, safety, welfare, or rights of residents (including 
the welfare and rights of residents with respect to the appointment and 
activities of resident representatives) of--
    (A) Providers, or representatives of providers, of long-term care;
    (B) Public agencies; or
    (C) Health and social service agencies.
    (2) Provide services to protect the health, safety, welfare, and 
rights of the residents;
    (3) Inform residents about means of obtaining services provided by 
the Ombudsman program;
    (4) Ensure that residents have regular and timely access to the 
services provided through the Ombudsman program and that residents and 
complainants receive timely responses from representatives of the Office 
to requests for information and complaints;
    (5) Represent the interests of residents before governmental 
agencies, assure that individual residents have access to, and pursue 
(as the Ombudsman determines as necessary and consistent with resident 
interests) administrative, legal, and other remedies to protect the 
health, safety, welfare, and rights of residents;
    (6) Provide administrative and technical assistance to 
representatives of the Office and agencies hosting local Ombudsman 
entities;
    (7)(i) Analyze, comment on, and monitor the development and 
implementation of Federal, State, and local laws, regulations, and other 
governmental policies and actions, that pertain to the health, safety, 
welfare, and rights of the residents, with respect to the adequacy of 
long-term care facilities and services in the State;
    (ii) Recommend any changes in such laws, regulations, policies, and 
actions as the Office determines to be appropriate; and
    (iii) Facilitate public comment on the laws, regulations, policies, 
and actions;
    (iv) Provide leadership to statewide systems advocacy efforts of the 
Office on behalf of long-term care facility residents, including 
coordination of systems advocacy efforts carried out by representatives 
of the Office; and
    (v) Provide information to public and private agencies, legislators, 
the media, and other persons, regarding the problems and concerns of 
residents and recommendations related to the problems and concerns.
    (vi) Such determinations and positions shall be those of the Office 
and shall not necessarily represent the determinations or positions of 
the State agency or other agency in which the Office is organizationally 
located.
    (vii) In carrying out systems advocacy efforts of the Office on 
behalf of

[[Page 181]]

long-term care facility residents and pursuant to the receipt of grant 
funds under the Act, the provision of information, recommendations of 
changes of laws to legislators, and recommendations of changes of 
regulations and policies to government agencies by the Ombudsman or 
representatives of the Office do not constitute lobbying activities as 
defined by 45 CFR part 93.
    (8) Coordinate with and promote the development of citizen 
organizations consistent with the interests of residents; and
    (9) Promote, provide technical support for the development of, and 
provide ongoing support as requested by resident and family councils to 
protect the well-being and rights of residents; and
    (b) The Ombudsman shall be the head of a unified statewide program 
and shall:
    (1) Establish or recommend policies, procedures and standards for 
administration of the Ombudsman program pursuant to Sec.  1324.11(e);
    (2) Require representatives of the Office to fulfill the duties set 
forth in Sec.  1324.19 in accordance with Ombudsman program policies and 
procedures.
    (c) Designation. The Ombudsman shall determine designation, and 
refusal, suspension, or removal of designation, of local Ombudsman 
entities and representatives of the Office pursuant to section 712(a)(5) 
of the Act and the policies and procedures set forth in Sec.  
1324.11(e)(6).
    (1) Where an Ombudsman chooses to designate local Ombudsman 
entities, the Ombudsman shall:
    (i) Designate local Ombudsman entities to be organizationally 
located within public or non-profit private entities;
    (ii) Review and approve plans or contracts governing local Ombudsman 
entity operations, including, where applicable, through area agency on 
aging plans, in coordination with the State agency; and
    (iii) Monitor, on a regular basis, the Ombudsman program performance 
of local Ombudsman entities.
    (2) Training requirements. The Ombudsman shall establish procedures 
for training for certification and continuing education of the 
representatives of the Office, based on model standards established by 
the Director of the Office of Long-Term Care Ombudsman Programs as 
described in section 201(d) of the Act, in consultation with residents, 
resident representatives, citizen organizations, long-term care 
providers, and the State agency, that--
    (i) Specify a minimum number of hours of initial training;
    (ii) Specify the content of the training, including training 
relating to Federal, State, and local laws, regulations, and policies, 
with respect to long-term care facilities in the State; investigative 
and resolution techniques; and such other matters as the Office 
determines to be appropriate; and
    (iii) Specify an annual number of hours of in-service training for 
all representatives of the Office;
    (3) Prohibit any representative of the Office from carrying out the 
duties described in Sec.  1324.19 unless the representative--
    (i) Has received the training required under paragraph (c)(2) of 
this section or is performing such duties under supervision of the 
Ombudsman or a designated representative of the Office as part of 
certification training requirements; and
    (ii) Has been approved by the Ombudsman as qualified to carry out 
the activity on behalf of the Office;
    (4) The Ombudsman shall investigate allegations of misconduct by 
representatives of the Office in the performance of Ombudsman program 
duties and, as applicable, coordinate such investigations with the State 
agency in which the Office is organizationally located, agency hosting 
the local Ombudsman entity and/or the local Ombudsman entity.
    (5) Policies, procedures, or practices which the Ombudsman 
determines to be in conflict with the laws, policies, or procedures 
governing the Ombudsman program shall be sufficient grounds for refusal, 
suspension, or removal of designation of the representative of the 
Office and/or the local Ombudsman entity.
    (d) Ombudsman program information. The Ombudsman shall manage the 
files, records, and other information of

[[Page 182]]

the Ombudsman program, whether in physical, electronic, or other 
formats, including information maintained by representatives of the 
Office and local Ombudsman entities pertaining to the cases and 
activities of the Ombudsman program. Such files, records, and other 
information are the property of the Office. Nothing in this provision 
shall prohibit a representative of the Office or a local Ombudsman 
entity from maintaining such information in accordance with Ombudsman 
program requirements.
    (e) Disclosure. In making determinations regarding the disclosure of 
files, records and other information maintained by the Ombudsman 
program, the Ombudsman shall:
    (1) Have the sole authority to make or delegate determinations 
concerning the disclosure of the files, records, and other information 
maintained by the Ombudsman program. The Ombudsman shall comply with 
section 712(d) of the Act in responding to requests for disclosure of 
files, records, and other information, regardless of the format of such 
file, record, or other information, the source of the request, and the 
sources of funding to the Ombudsman program;
    (2) Develop and adhere to criteria to guide the Ombudsman's 
discretion in determining whether to disclose the files, records or 
other information of the Office; and
    (3) Develop and adhere to a process for the appropriate disclosure 
of information maintained by the Office, including:
    (i) Classification of at least the following types of files, 
records, and information: medical, social and other records of 
residents; administrative records, policies, and documents of long-term 
care facilities; licensing and certification records maintained by the 
State with respect to long-term care facilities; and data collected in 
the Ombudsman program reporting system; and
    (ii) Identification of the appropriate individual designee or 
category of designee, if other than the Ombudsman, authorized to 
determine the disclosure of specific categories of information in 
accordance with the criteria described in paragraph (e) of this section.
    (f) Fiscal management. The Ombudsman shall determine the use of the 
fiscal resources appropriated or otherwise available for the operation 
of the Office. Where local Ombudsman entities are designated, the 
Ombudsman shall approve the allocations of Federal and State funds 
provided to such entities, subject to applicable Federal and State laws 
and policies. The Ombudsman shall determine that program budgets and 
expenditures of the Office and local Ombudsman entities are consistent 
with laws, policies and procedures governing the Ombudsman program.
    (g) Annual report. The Ombudsman shall independently develop and 
provide final approval of an annual report as set forth in section 
712(h)(1) of the Act and as otherwise required by the Assistant 
Secretary.
    (1) Such report shall:
    (i) Describe the activities carried out by the Office in the year 
for which the report is prepared;
    (ii) Contain analysis of Ombudsman program data;
    (iii) Describe evaluation of the problems experienced by, and the 
complaints made by or on behalf of, residents;
    (iv) Contain policy, regulatory, and/or legislative recommendations 
for improving quality of the care and life of the residents; protecting 
the health, safety, welfare, and rights of the residents; and resolving 
resident complaints and identified problems or barriers;
    (v) Contain analysis of the success of the Ombudsman program, 
including success in providing services to residents of, assisted 
living, board and care facilities and other similar adult care 
facilities; and
    (vi) Describe barriers that prevent the optimal operation of the 
Ombudsman program.
    (2) The Ombudsman shall make such report available to the public and 
submit it to the Assistant Secretary, the chief executive officer of the 
State, the State legislature, the State agency responsible for licensing 
or certifying long-term care facilities, and other appropriate 
governmental entities.
    (h) Through adoption of memoranda of understanding and other means, 
the

[[Page 183]]

Ombudsman shall lead state-level coordination, and support appropriate 
local Ombudsman entity coordination, between the Ombudsman program and 
other entities with responsibilities relevant to the health, safety, 
well-being or rights of residents of long-term care facilities 
including, but not limited to:
    (1) Area agency on aging programs;
    (2) Aging and disability resource centers;
    (3) Adult protective services programs;
    (4) Protection and advocacy systems, as designated by the State, and 
as established under the Developmental Disabilities Assistance and Bill 
of Rights Act of 2000 (42 U.S.C. 15001 et seq.);
    (5) Facility and long-term care provider licensure and certification 
programs;
    (6) The State Medicaid fraud control unit, as defined in section 
1903(q) of the Social Security Act (42 U.S.C. 1396b(q));
    (7) Victim assistance programs;
    (8) State and local law enforcement agencies;
    (9) Courts of competent jurisdiction; and
    (10) The State legal assistance developer and legal assistance 
programs, including those provided under section 306(a)(2)(C) of the 
Act.
    (i) The Ombudsman shall carry out such other activities as the 
Assistant Secretary determines to be appropriate.

[80 FR 7758, Feb. 11, 2015, as amended at 81 FR 35646, June 3, 2016]



Sec.  1324.15  State agency responsibilities related to the Ombudsman program.

    (a) In addition to the responsibilities set forth in part 1321 of 
this chapter, the State agency shall ensure that the Ombudsman complies 
with the relevant provisions of the Act and of this rule.
    (b) The State agency shall ensure, through the development of 
policies, procedures, and other means, consistent with Sec.  
1324.11(e)(2), that the Ombudsman program has sufficient authority and 
access to facilities, residents, and information needed to fully perform 
all of the functions, responsibilities, and duties of the Office.
    (c) The State agency shall provide opportunities for training for 
the Ombudsman and representatives of the Office in order to maintain 
expertise to serve as effective advocates for residents. The State 
agency may utilize funds appropriated under Title III and/or Title VII 
of the Act designated for direct services in order to provide access to 
such training opportunities.
    (d) The State agency shall provide personnel supervision and 
management for the Ombudsman and representatives of the Office who are 
employees of the State agency. Such management shall include an 
assessment of whether the Office is performing all of its functions 
under the Act.
    (e) The State agency shall provide monitoring, as required by Sec.  
1321.11(b) of this chapter, including but not limited to fiscal 
monitoring, where the Office and/or local Ombudsman entity is 
organizationally located within an agency under contract or other 
arrangement with the State agency. Such monitoring shall include an 
assessment of whether the Ombudsman program is performing all of the 
functions, responsibilities and duties set forth in Sec. Sec.  1324.13 
and 1324.19. The State agency may make reasonable requests of reports, 
including aggregated data regarding Ombudsman program activities, to 
meet the requirements of this provision.
    (f) The State agency shall ensure that any review of files, records 
or other information maintained by the Ombudsman program is consistent 
with the disclosure limitations set forth in Sec. Sec.  1324.11(e)(3) 
and 1324.13(e).
    (g) The State agency shall integrate the goals and objectives of the 
Office into the State plan and coordinate the goals and objectives of 
the Office with those of other programs established under Title VII of 
the Act and other State elder rights, disability rights, and elder 
justice programs, including, but not limited to, legal assistance 
programs provided under section 306(a)(2)(C) of the Act, to promote 
collaborative efforts and diminish duplicative efforts. Where 
applicable, the State agency shall require inclusion of goals and 
objectives of local Ombudsman entities into area plans on aging.
    (h) The State agency shall provide elder rights leadership. In so 
doing, it

[[Page 184]]

shall require the coordination of Ombudsman program services with, the 
activities of other programs authorized by Title VII of the Act as well 
as other State and local entities with responsibilities relevant to the 
health, safety, well-being or rights of older adults, including 
residents of long-term care facilities as set forth in Sec.  1324.13(h).
    (i) Interference, retaliation and reprisals. The State agency shall:
    (1) Ensure that it has mechanisms to prohibit and investigate 
allegations of interference, retaliation and reprisals:
    (i) by a long-term care facility, other entity, or individual with 
respect to any resident, employee, or other person for filing a 
complaint with, providing information to, or otherwise cooperating with 
any representative of the Office; or
    (ii) by a long-term care facility, other entity or individual 
against the Ombudsman or representatives of the Office for fulfillment 
of the functions, responsibilities, or duties enumerated at Sec. Sec.  
1324.13 and 1324.19; and
    (2) Provide for appropriate sanctions with respect to interference, 
retaliation and reprisals.
    (j) Legal counsel. (1) The State agency shall ensure that:
    (i) Legal counsel for the Ombudsman program is adequate, available, 
has competencies relevant to the legal needs of the program and of 
residents, and is without conflict of interest (as defined by the State 
ethical standards governing the legal profession), in order to--
    (A) Provide consultation and representation as needed in order for 
the Ombudsman program to protect the health, safety, welfare, and rights 
of residents; and
    (B) Provide consultation and/or representation as needed to assist 
the Ombudsman and representatives of the Office in the performance of 
their official functions, responsibilities, and duties, including, but 
not limited to, complaint resolution and systems advocacy;
    (ii) The Ombudsman and representatives of the Office assist 
residents in seeking administrative, legal, and other appropriate 
remedies. In so doing, the Ombudsman shall coordinate with the legal 
services developer, legal services providers, and victim assistance 
services to promote the availability of legal counsel to residents; and
    (iii) Legal representation, arranged by or with the approval of the 
Ombudsman, is provided to the Ombudsman or any representative of the 
Office against whom suit or other legal action is brought or threatened 
to be brought in connection with the performance of the official duties.
    (2) Such legal counsel may be provided by one or more entities, 
depending on the nature of the competencies and services needed and as 
necessary to avoid conflicts of interest (as defined by the State 
ethical standards governing the legal profession). However, at a 
minimum, the Office shall have access to an attorney knowledgeable about 
the Federal and State laws protecting the rights of residents and 
governing long-term care facilities.
    (3) Legal representation of the Ombudsman program by the Ombudsman 
or representative of the Office who is a licensed attorney shall not by 
itself constitute sufficiently adequate legal counsel.
    (4) The communications between the Ombudsman and legal counsel are 
subject to attorney-client privilege.
    (k) The State agency shall require the Office to:
    (1) Develop and provide final approval of an annual report as set 
forth in section 712(h)(1) of the Act and Sec.  1324.13(g) and as 
otherwise required by the Assistant Secretary.
    (2) Analyze, comment on, and monitor the development and 
implementation of Federal, State, and local laws, regulations, and other 
government policies and actions that pertain to long-term care 
facilities and services, and to the health, safety, welfare, and rights 
of residents, in the State, and recommend any changes in such laws, 
regulations, and policies as the Office determines to be appropriate;
    (3) Provide such information as the Office determines to be 
necessary to public and private agencies, legislators, the media, and 
other persons, regarding the problems and concerns of individuals 
residing in long-term care

[[Page 185]]

facilities; and recommendations related to such problems and concerns; 
and
    (4) Establish procedures for the training of the representatives of 
the Office, as set forth in Sec.  1324.13(c)(2).
    (5) Coordinate Ombudsman program services with entities with 
responsibilities relevant to the health, safety, welfare, and rights of 
residents of long-term care facilities, as set forth in Sec.  
1324.13(h).

[80 FR 7758, Feb. 11, 2015, as amended at 81 FR 35646, June 3, 2016; 85 
FR 72911, Nov. 16, 2020]



Sec.  1324.17  Responsibilities of agencies hosting local Ombudsman entities.

    (a) The agency in which a local Ombudsman entity is organizationally 
located shall be responsible for the personnel management, but not the 
programmatic oversight, of representatives, including employee and 
volunteer representatives, of the Office.
    (b) The agency in which a local Ombudsman entity is organizationally 
located shall not have personnel policies or practices which prohibit 
the representatives of the Office from performing the duties, or from 
adhering to the access, confidentiality and disclosure requirements of 
section 712 of the Act, as implemented through this rule and the 
policies and procedures of the Office.
    (1) Policies, procedures and practices, including personnel 
management practices of the host agency, which the Ombudsman determines 
conflict with the laws or policies governing the Ombudsman program shall 
be sufficient grounds for the refusal, suspension, or removal of the 
designation of local Ombudsman entity by the Ombudsman.
    (2) Nothing in this provision shall prohibit the host agency from 
requiring that the representatives of the Office adhere to the personnel 
policies and procedures of the agency which are otherwise lawful.



Sec.  1324.19  Duties of the representatives of the Office.

    In carrying out the duties of the Office, the Ombudsman may 
designate an entity as a local Ombudsman entity and may designate an 
employee or volunteer of the local Ombudsman entity as a representative 
of the Office. Representatives of the Office may also be designated 
employees or volunteers within the Office.
    (a) Duties. An individual so designated as a representative of the 
Office shall, in accordance with the policies and procedures established 
by the Office and the State agency:
    (1) Identify, investigate, and resolve complaints made by or on 
behalf of residents that relate to action, inaction, or decisions, that 
may adversely affect the health, safety, welfare, or rights of the 
residents;
    (2) Provide services to protect the health, safety, welfare, and 
rights of residents;
    (3) Ensure that residents in the service area of the local Ombudsman 
entity have regular and timely access to the services provided through 
the Ombudsman program and that residents and complainants receive timely 
responses to requests for information and complaints;
    (4) Represent the interests of residents before government agencies 
and assure that individual residents have access to, and pursue (as the 
representative of the Office determines necessary and consistent with 
resident interest) administrative, legal, and other remedies to protect 
the health, safety, welfare, and rights of the residents;
    (5)(i) Review, and if necessary, comment on any existing and 
proposed laws, regulations, and other government policies and actions, 
that pertain to the rights and well-being of residents; and
    (ii) Facilitate the ability of the public to comment on the laws, 
regulations, policies, and actions;
    (6) Promote, provide technical support for the development of, and 
provide ongoing support as requested by resident and family councils; 
and
    (7) Carry out other activities that the Ombudsman determines to be 
appropriate.
    (b) Complaint processing. (1) With respect to identifying, 
investigating and resolving complaints, and regardless of the source of 
the complaint (i.e. complainant), the Ombudsman and the representatives 
of the Office serve the resident of a long-term care facility. The 
Ombudsman or representative of

[[Page 186]]

the Office shall investigate a complaint, including but not limited to a 
complaint related to abuse, neglect, or exploitation, for the purposes 
of resolving the complaint to the resident's satisfaction and of 
protecting the health, welfare, and rights of the resident. The 
Ombudsman or representative of the Office may identify, investigate and 
resolve a complaint impacting multiple residents or all residents of a 
facility.
    (2) Regardless of the source of the complaint (i.e. the 
complainant), including when the source is the Ombudsman or 
representative of the Office, the Ombudsman or representative of the 
Office must support and maximize resident participation in the process 
of resolving the complaint as follows:
    (i) The Ombudsman or representative of Office shall offer privacy to 
the resident for the purpose of confidentially providing information and 
hearing, investigating and resolving complaints.
    (ii) The Ombudsman or representative of the Office shall personally 
discuss the complaint with the resident (and, if the resident is unable 
to communicate informed consent, the resident's representative) in order 
to:
    (A) Determine the perspective of the resident (or resident 
representative, where applicable) of the complaint;
    (B) Request the resident (or resident representative, where 
applicable) to communicate informed consent in order to investigate the 
complaint;
    (C) Determine the wishes of the resident (or resident 
representative, where applicable) with respect to resolution of the 
complaint, including whether the allegations are to be reported and, if 
so, whether Ombudsman or representative of the Office may disclose 
resident identifying information or other relevant information to the 
facility and/or appropriate agencies. Such report and disclosure shall 
be consistent with paragraph (b)(3) of this section;
    (D) Advise the resident (and resident representative, where 
applicable) of the resident's rights;
    (E) Work with the resident (or resident representative, where 
applicable) to develop a plan of action for resolution of the complaint;
    (F) Investigate the complaint to determine whether the complaint can 
be verified; and
    (G) Determine whether the complaint is resolved to the satisfaction 
of the resident (or resident representative, where applicable).
    (iii) Where the resident is unable to communicate informed consent, 
and has no resident representative, the Ombudsman or representative of 
the Office shall:
    (A) Take appropriate steps to investigate and work to resolve the 
complaint in order to protect the health, safety, welfare and rights of 
the resident; and
    (B) Determine whether the complaint was resolved to the satisfaction 
of the complainant.
    (iv) In determining whether to rely upon a resident representative 
to communicate or make determinations on behalf of the resident related 
to complaint processing, the Ombudsman or representative of the Office 
shall ascertain the extent of the authority that has been granted to the 
resident representative under court order (in the case of a guardian or 
conservator), by power of attorney or other document by which the 
resident has granted authority to the representative, or under other 
applicable State or Federal law.
    (3) The Ombudsman or representative of the Office may provide 
information regarding the complaint to another agency in order for such 
agency to substantiate the facts for regulatory, protective services, 
law enforcement, or other purposes so long as the Ombudsman or 
representative of the Office adheres to the disclosure requirements of 
section 712(d) of the Act and the procedures set forth in Sec.  
1324.11(e)(3).
    (i) Where the goals of a resident or resident representative are for 
regulatory, protective services or law enforcement action, and the 
Ombudsman or representative of the Office determines that the resident 
or resident representative has communicated informed consent to the 
Office, the Office must assist the resident or resident representative 
in contacting the appropriate agency and/or disclose the information for 
which the resident has provided consent to the appropriate agency for 
such purposes.

[[Page 187]]

    (ii) Where the goals of a resident or resident representative can be 
served by disclosing information to a facility representative and/or 
referrals to an entity other than those referenced in paragraph 
(b)(3)(i) of this section, and the Ombudsman or representative of the 
Office determines that the resident or resident representative has 
communicated informed consent to the Ombudsman program, the Ombudsman or 
representative of the Office may assist the resident or resident 
representative in contacting the appropriate facility representative or 
the entity, provide information on how a resident or representative may 
obtain contact information of such facility representatives or entities, 
and/or disclose the information for which the resident has provided 
consent to an appropriate facility representative or entity, consistent 
with Ombudsman program procedures.
    (iii) In order to comply with the wishes of the resident, (or, in 
the case where the resident is unable to communicate informed consent, 
the wishes of the resident representative), the Ombudsman and 
representatives of the Office shall not report suspected abuse, neglect 
or exploitation of a resident when a resident or resident representative 
has not communicated informed consent to such report except as set forth 
in paragraphs (b)(5) through (7) of this section, notwithstanding State 
laws to the contrary.
    (4) For purposes of paragraphs (b)(1) through (3) of this section, 
communication of informed consent may be made in writing, including 
through the use of auxiliary aids and services. Alternatively, 
communication may be made orally or visually, including through the use 
of auxiliary aids and services, and such consent must be documented 
contemporaneously by the Ombudsman or a representative of the Office, in 
accordance with the procedures of the Office;
    (5) For purposes of paragraphs (b)(1) through (3) of this section, 
if a resident is unable to communicate his or her informed consent, or 
perspective on the extent to which the matter has been satisfactorily 
resolved, the Ombudsman or representative of the Office may rely on the 
communication of informed consent and/or perspective regarding the 
resolution of the complaint of a resident representative so long as the 
Ombudsman or representative of the Office has no reasonable cause to 
believe that the resident representative is not acting in the best 
interests of the resident.
    (6) For purposes of paragraphs (b)(1) through (3) of this section, 
the procedures for disclosure, as required by Sec.  1324.11(e)(3), shall 
provide that the Ombudsman or representative of the Office may refer the 
matter and disclose resident-identifying information to the appropriate 
agency or agencies for regulatory oversight; protective services; access 
to administrative, legal, or other remedies; and/or law enforcement 
action in the following circumstances:
    (i) The resident is unable to communicate informed consent to the 
Ombudsman or representative of the Office;
    (ii) The resident has no resident representative;
    (iii) The Ombudsman or representative of the Office has reasonable 
cause to believe that an action, inaction or decision may adversely 
affect the health, safety, welfare, or rights of the resident;
    (iv) The Ombudsman or representative of the Office has no evidence 
indicating that the resident would not wish a referral to be made;
    (v) The Ombudsman or representative of the Office has reasonable 
cause to believe that it is in the best interest of the resident to make 
a referral; and
    (vi) The representative of the Office obtains the approval of the 
Ombudsman or otherwise follows the policies and procedures of the Office 
described in paragraph (b)(9) of this section.
    (7) For purposes of paragraphs (b)(1) through (3) of this section, 
the procedures for disclosure, as required by Sec.  1324.11(e)(3), shall 
provide that, the Ombudsman or representative of the Office may refer 
the matter and disclose resident-identifying information to the 
appropriate agency or agencies for regulatory oversight; protective 
services; access to administrative, legal, or other remedies; and/or law 
enforcement action in the following circumstances:

[[Page 188]]

    (i) The resident is unable to communicate informed consent to the 
Ombudsman or representative of the Office and the Ombudsman or 
representative of the Office has reasonable cause to believe that the 
resident representative has taken an action, inaction or decision that 
may adversely affect the health, safety, welfare, or rights of the 
resident;
    (ii) The Ombudsman or representative of the Office has no evidence 
indicating that the resident would not wish a referral to be made;
    (iii) The Ombudsman or representative of the Office has reasonable 
cause to believe that it is in the best interest of the resident to make 
a referral; and
    (iv) The representative of the Ombudsman obtains the approval of the 
Ombudsman.
    (8) The procedures for disclosure, as required by Sec.  
1324.11(e)(3), shall provide that, if the Ombudsman or representative of 
the Office personally witnesses suspected abuse, gross neglect, or 
exploitation of a resident, the Ombudsman or representative of the 
Office shall seek communication of informed consent from such resident 
to disclose resident-identifying information to appropriate agencies;
    (i) Where such resident is able to communicate informed consent, or 
has a resident representative available to provide informed consent, the 
Ombudsman or representative of the Office shall follow the direction of 
the resident or resident representative as set forth paragraphs (b)(1) 
through (3) of this section; and
    (ii) Where the resident is unable to communicate informed consent, 
and has no resident representative available to provide informed 
consent, the Ombudsman or representative of the Office shall open a case 
with the Ombudsman or representative of the Office as the complainant, 
follow the Ombudsman program's complaint resolution procedures, and 
shall refer the matter and disclose identifying information of the 
resident to the management of the facility in which the resident resides 
and/or to the appropriate agency or agencies for substantiation of 
abuse, gross neglect or exploitation in the following circumstances:
    (A) The Ombudsman or representative of the Office has no evidence 
indicating that the resident would not wish a referral to be made;
    (B) The Ombudsman or representative of the Office has reasonable 
cause to believe that disclosure would be in the best interest of the 
resident; and
    (C) The representative of the Office obtains the approval of the 
Ombudsman or otherwise follows the policies and procedures of the Office 
described in paragraph (b)(9) of this section.
    (iii) In addition, the Ombudsman or representative of the Office, 
following the policies and procedures of the Office described in 
paragraph (b)(9) of this section, may report the suspected abuse, gross 
neglect, or exploitation to other appropriate agencies for regulatory 
oversight; protective services; access to administrative, legal, or 
other remedies; and/or law enforcement action.
    (9) Prior to disclosing resident-identifying information pursuant to 
paragraph (b)(6) or (8) of this section, a representative of the Office 
must obtain approval by the Ombudsman or, alternatively, follow policies 
and procedures of the Office which provide for such disclosure.
    (i) Where the policies and procedures require Ombudsman approval, 
they shall include a time frame in which the Ombudsman is required to 
communicate approval or disapproval in order to assure that the 
representative of the Office has the ability to promptly take actions to 
protect the health, safety, welfare or rights of residents.
    (ii) Where the policies and procedures do not require Ombudsman 
approval prior to disclosure, they shall require that the representative 
of the Office promptly notify the Ombudsman of any disclosure of 
resident-identifying information under the circumstances set forth in 
paragraph (b)(6) or (8) of this section.
    (iii) Disclosure of resident-identifying information under paragraph 
(b)(7) of this section shall require Ombudsman approval.

[80 FR 7758, Feb. 11, 2015, as amended at 81 FR 35646, June 3, 2016; 81 
FR 92697, Dec. 20, 2016; 85 FR 72911, Nov. 16, 2020]

[[Page 189]]



Sec.  1324.21  Conflicts of interest.

    The State agency and the Ombudsman shall consider both the 
organizational and individual conflicts of interest that may impact the 
effectiveness and credibility of the work of the Office. In so doing, 
both the State agency and the Ombudsman shall be responsible to identify 
actual and potential conflicts and, where a conflict has been 
identified, to remove or remedy such conflict as set forth in paragraphs 
(b) and (d) of this section.
    (a) Identification of organizational conflicts. In identifying 
conflicts of interest pursuant to section 712(f) of the Act, the State 
agency and the Ombudsman shall consider the organizational conflicts 
that may impact the effectiveness and credibility of the work of the 
Office. Organizational conflicts of interest include, but are not 
limited to, placement of the Office, or requiring that an Ombudsman or 
representative of the Office perform conflicting activities, in an 
organization that:
    (1) Is responsible for licensing, surveying, or certifying long-term 
care facilities;
    (2) Is an association (or an affiliate of such an association) of 
long-term care facilities, or of any other residential facilities for 
older individuals or individuals with disabilities;
    (3) Has any ownership or investment interest (represented by equity, 
debt, or other financial relationship) in, or receives grants or 
donations from, a long-term care facility;
    (4) Has governing board members with any ownership, investment or 
employment interest in long-term care facilities;
    (5) Provides long-term care to residents of long-term care 
facilities, including the provision of personnel for long-term care 
facilities or the operation of programs which control access to or 
services for long-term care facilities;
    (6) Provides long-term care coordination or case management for 
residents of long-term care facilities;
    (7) Sets reimbursement rates for long-term care facilities;
    (8) Provides adult protective services;
    (9) Is responsible for eligibility determinations regarding Medicaid 
or other public benefits for residents of long-term care facilities;
    (10) Conducts preadmission screening for long-term care facility 
placements;
    (11) Makes decisions regarding admission or discharge of individuals 
to orfrom long-term care facilities; or
    (12) Provides guardianship, conservatorship or other fiduciary or 
surrogatedecision-making services for residents of long-term care 
facilities.
    (b) Removing or remedying organizational conflicts. The State agency 
and the Ombudsman shall identify and take steps to remove or remedy 
conflicts of interest between the Office and the State agency or other 
agency carrying out the Ombudsman program.
    (1) The Ombudsman shall identify organizational conflicts of 
interest in the Ombudsman program and describe steps taken to remove or 
remedy conflicts within the annual report submitted to the Assistant 
Secretary through the National Ombudsman Reporting System.
    (2) Where the Office is located within or otherwise organizationally 
attached to the State agency, the State agency shall:
    (i) Take reasonable steps to avoid internal conflicts of interest;
    (ii) Establish a process for review and identification of internal 
conflicts;
    (iii) Take steps to remove or remedy conflicts;
    (iv) Ensure that no individual, or member of the immediate family of 
an individual, involved in the designating, appointing, otherwise 
selecting or terminating the Ombudsman is subject to a conflict of 
interest; and
    (v) Assure that the Ombudsman has disclosed such conflicts and 
described steps taken to remove or remedy conflicts within the annual 
report submitted to the Assistant Secretary through the National 
Ombudsman Reporting System.
    (3) Where a State agency is unable to adequately remove or remedy a 
conflict, it shall carry out the Ombudsman program by contract or other 
arrangement with a public agency or nonprofit private organization, 
pursuant to section 712(a)(4) of the Act. The State agency may not enter 
into a contract or other arrangement to carry out the

[[Page 190]]

Ombudsman program, and may not operate the Office directly if it:
    (i) Is responsible for licensing, surveying, or certifying long-term 
care facilities;
    (ii) Is an association (or an affiliate of such an association) of 
long-term care facilities, or of any other residential facilities for 
older individuals or individuals with disabilities; or
    (iii) Has any ownership, operational, or investment interest 
(represented by equity, debt, or other financial relationship) in a 
long-term care facility.
    (4) Where the State agency carries out the Ombudsman program by 
contract or other arrangement with a public agency or nonprofit private 
organization, pursuant to section 712(a)(4) of the Act, the State agency 
shall:
    (i) Prior to contracting or making another arrangement, take 
reasonable steps to avoid conflicts of interest in such agency or 
organization which is to carry out the Ombudsman program and to avoid 
conflicts of interest in the State agency's oversight of the contract or 
arrangement;
    (ii) Establish a process for periodic review and identification of 
conflicts;
    (iii) Establish criteria for approval of steps taken by the agency 
or organization to remedy or remove conflicts;
    (iv) Require that such agency or organization have a process in 
place to:
    (A) Take reasonable steps to avoid conflicts of interest, and
    (B) Disclose identified conflicts and steps taken to remove or 
remedy conflicts to the State agency for review and approval.
    (5) Where an agency or organization carrying out the Ombudsman 
program by contract or other arrangement develops a conflict and is 
unable to adequately remove or remedy a conflict, the State agency shall 
either operate the Ombudsman program directly or by contract or other 
arrangement with another public agency or nonprofit private 
organization. The State agency shall not enter into such contract or 
other arrangement with an agency or organization which is responsible 
for licensing or certifying long-term care facilities in the state or is 
an association (or affiliate of such an association) of long-term care 
facilities.
    (6) Where local Ombudsman entities provide Ombudsman services, the 
Ombudsman shall:
    (i) Prior to designating or renewing designation, take reasonable 
steps to avoid conflicts of interest in any agency which may host a 
local Ombudsman entity.
    (ii) Establish a process for periodic review and identification of 
conflicts of interest with the local Ombudsman entity in any agencies 
hosting a local Ombudsman entity,
    (iii) Require that such agencies disclose identified conflicts of 
interest with the local Ombudsman entity and steps taken to remove or 
remedy conflicts within such agency to the Ombudsman,
    (iv) Establish criteria for approval of steps taken to remedy or 
remove conflicts in such agencies, and
    (v) Establish a process for review of and criteria for approval of 
plans to remove or remedy conflicts with the local Ombudsman entity in 
such agencies.
    (7) Failure of an agency hosting a local Ombudsman entity to 
disclose a conflict to the Office or inability to adequately remove or 
remedy a conflict shall constitute grounds for refusal, suspension or 
removal of designation of the local Ombudsman entity by the Ombudsman.
    (c) Identifying individual conflicts of interest. (1) In identifying 
conflicts of interest pursuant to section 712(f) of the Act, the State 
agency and the Ombudsman shall consider individual conflicts that may 
impact the effectiveness and credibility of the work of the Office.
    (2) Individual conflicts of interest for an Ombudsman, 
representatives of the Office, and members of their immediate family 
include, but are not limited to:
    (i) Direct involvement in the licensing or certification of a long-
term care facility;
    (ii) Ownership, operational, or investment interest (represented by 
equity, debt, or other financial relationship) in an existing or 
proposed long-term care facility;
    (iii) Employment of an individual by, or participation in the 
management of, a long-term care facility in the service

[[Page 191]]

area or by the owner or operator of any long-term care facility in the 
service area;
    (iv) Receipt of, or right to receive, directly or indirectly, 
remuneration (in cash or in kind) under a compensation arrangement with 
an owner or operator of a long-term care facility;
    (v) Accepting gifts or gratuities of significant value from a long-
term care facility or its management, a resident or a resident 
representative of a long-term care facility in which the Ombudsman or 
representative of the Office provides services (except where there is a 
personal relationship with a resident or resident representative which 
is separate from the individual's role as Ombudsman or representative of 
the Office);
    (vi) Accepting money or any other consideration from anyone other 
than the Office, or an entity approved by the Ombudsman, for the 
performance of an act in the regular course of the duties of the 
Ombudsman or the representatives of the Office without Ombudsman 
approval;
    (vii) Serving as guardian, conservator or in another fiduciary or 
surrogate decision-making capacity for a resident of a long-term care 
facility in which the Ombudsman or representative of the Office provides 
services; and
    (viii) Serving residents of a facility in which an immediate family 
member resides.
    (d) Removing or remedying individual conflicts. (1) The State agency 
or Ombudsman shall develop and implement policies and procedures, 
pursuant to Sec.  1324.11(e)(4), to ensure that no Ombudsman or 
representatives of the Office are required or permitted to hold 
positions or perform duties that would constitute a conflict of interest 
as set forth in Sec.  1324.21(c). This rule does not prohibit a State 
agency or Ombudsman from having policies or procedures that exceed these 
requirements.
    (2) When considering the employment or appointment of an individual 
as the Ombudsman or as a representative of the Office, the State agency 
or other employing or appointing entity shall:
    (i) Take reasonable steps to avoid employing or appointing an 
individual who has an unremedied conflict of interest or who has a 
member of the immediate family with an unremedied conflict of interest;
    (ii) Take reasonable steps to avoid assigning an individual to 
perform duties which would constitute an unremedied conflict of 
interest;
    (iii) Establish a process for periodic review and identification of 
conflicts of the Ombudsman and representatives of the Office, and
    (iv) Take steps to remove or remedy conflicts.
    (3) In no circumstance shall the entity, which appoints or employs 
the Ombudsman, appoint or employ an individual as the Ombudsman who:
    (i) Has direct involvement in the licensing or certification of a 
long-term care facility;
    (ii) Has an ownership or investment interest (represented by equity, 
debt, or other financial relationship) in a long-term care facility. 
Divestment within a reasonable period may be considered an adequate 
remedy to this conflict;
    (iii) Has been employed by or participating in the management of a 
long-term care facility within the previous twelve months.
    (iv) Receives, or has the right to receive, directly or indirectly, 
remuneration (in cash or in kind) under a compensation arrangement with 
an owner or operator of a long-term care facility.
    (4) In no circumstance shall the State agency, other agency which 
carries out the Office, or an agency hosting a local Ombudsman entity 
appoint or employ an individual, nor shall the Ombudsman designate an 
individual, as a representative of the Office who:
    (i) Has direct involvement in the licensing or certification of a 
long-term care facility;
    (ii) Has an ownership or investment interest (represented by equity, 
debt, or other financial relationship) in a long-term care facility. 
Divestment within a reasonable period may be considered an adequate 
remedy to this conflict;
    (iii) Receives, directly or indirectly, remuneration (in cash or in 
kind) under a compensation arrangement with an owner or operator of a 
long-term care facility; or

[[Page 192]]

    (iv) Is employed by, or participating in the management of, a long-
term care facility.
    (A) An agency which appoints or employs representatives of the 
Office shall make efforts to avoid appointing or employing an individual 
as a representative of the Office who has been employed by or 
participating in the management of a long-term care facility within the 
previous twelve months.
    (B) Where such individual is appointed or employed, the agency shall 
take steps to remedy the conflict.

[80 FR 7758, Feb. 11, 2015, as amended at 81 FR 35646, June 3, 2016; 85 
FR 72911, Nov. 16, 2020]

Subpart B [Reserved]



PART 1325_REQUIREMENTS APPLICABLE TO THE DEVELOPMENTAL DISABILITIES PROGRAM--
Table of Contents



Sec.
1325.1 General.
1325.2 Purpose of the regulations.
1325.3 Definitions.
1325.4 Rights of individuals with developmental disabilities.
1325.5 [Reserved]
1325.6 Employment of individuals with disabilities.
1325.7 Reports to the Secretary.
1325.8 Formula for determining allotments.
1325.9 Grants administration requirements.

    Authority: 42 U.S.C. 15001 et seq.

    Source: 80 FR 44807, July 27, 2015, unless otherwise noted. 
Redesignated at 81 FR 35645, June 3, 2016.



Sec.  1325.1  General.

    Except as specified in Sec.  1325.4, the requirements in this part 
are applicable to the following programs and projects:
    (a) Federal Assistance to State Councils on Developmental 
Disabilities;
    (b) Protection and Advocacy for Individuals with Developmental 
Disabilities;
    (c) Projects of National Significance; and
    (d) National Network of University Centers for Excellence in 
Developmental Disabilities Education, Research, and Service.

[80 FR 44807, July 27, 2015, as amended at 81 FR 35647, June 3, 2016]



Sec.  1325.2  Purpose of the regulations.

    These regulations implement the Developmental Disabilities 
Assistance and Bill of Rights Act of 2000 (42 U.S.C. 15001 et seq.).



Sec.  1325.3  Definitions.

    For the purposes of parts 1325 through 1328 of this chapter, the 
following definitions apply:
    ACL. The term ``ACL'' means the Administration for Community Living 
within the U.S. Department of Health and Human Services.
    Act. The term ``Act'' means the Developmental Disabilities 
Assistance and Bill of Rights Act of 2000 (DD Act of 2000) (42 U.S.C. 
15001 et seq.).
    Accessibility. The term ``Accessibility'' means that programs funded 
under the DD Act of 2000 and facilities which are used in those programs 
meet applicable requirements of section 504 of the Rehabilitation Act of 
1973 (Pub. L. 93-112), its implementing regulation, 45 CFR part 84, the 
Americans with Disabilities Act of 1990, as amended , Title VI of the 
Civil Rights Act of 1964 (Pub. L. 88-352), and its implementing 
regulation, 45 CFR part 80.
    (1) For programs funded under the DD Act of 2000, information shall 
be provided to applicants and program participants in plain language and 
in a manner that is accessible and timely to:
    (i) Individuals with disabilities, including accessible Web sites 
and the provision of auxiliary aids and services at no cost to the 
individual; and
    (ii) Individuals who are limited English proficient through the 
provision of language services at no cost to the individual, including:
    (A) Oral interpretation;
    (B) Written translations; and
    (C) Taglines in non-English languages indicating the availability of 
language services.
    AIDD. The term ``AIDD'' means the Administration on Intellectual and 
Developmental Disabilities, within the Administration for Community 
Living at the U.S. Department of Health and Human Services.
    Advocacy activities. The term ``advocacy activities'' means active 
support of policies and practices that promote

[[Page 193]]

systems change efforts and other activities that further advance self-
determination and inclusion in all aspects of community living 
(including housing, education, employment, and other aspects) for 
individuals with developmental disabilities, and their families.
    Areas of emphasis. The term ``areas of emphasis'' means the areas 
related to quality assurance activities, education activities and early 
intervention activities, child care-related activities, health-related 
activities, employment-related activities, housing-related activities, 
transportation-related activities, recreation-related activities, and 
other services available or offered to individuals in a community, 
including formal and informal community supports that affect their 
quality of life.
    Assistive technology device. The term ``assistive technology 
device'' means any item, piece of equipment, or product system, whether 
acquired commercially, modified or customized, that is used to increase, 
maintain, or improve functional capabilities of individuals with 
developmental disabilities.
    Assistive technology service. The term ``assistive technology 
service'' means any service that directly assists an individual with a 
developmental disability in the selection, acquisition, or use of an 
assistive technology device. Such term includes: Conducting an 
evaluation of the needs of an individual with a developmental 
disability, including a functional evaluation of the individual in the 
individual's customary environment; purchasing, leasing, or otherwise 
providing for the acquisition of an assistive technology device by an 
individual with a developmental disability; selecting, designing, 
fitting, customizing, adapting, applying, maintaining, repairing or 
replacing an assistive technology device; coordinating and using another 
therapy, intervention, or service with an assistive technology device, 
such as a therapy, intervention, or service associated with an education 
or rehabilitation plan or program; providing training or technical 
assistance for an individual with a developmental disability, or, where 
appropriate, a family member, guardian, advocate, or authorized 
representative of an individual with a developmental disability; and 
providing training or technical assistance for professionals (including 
individuals providing education and rehabilitation services), employers, 
or other individuals who provide services to, employ, or are otherwise 
substantially involved in the major life functions of, an individual 
with developmental disabilities.
    Capacity building activities. The term ``capacity building 
activities'' means activities (e.g. training and technical assistance) 
that expand and/or improve the ability of individuals with developmental 
disabilities, families, supports, services and/or systems to promote, 
support and enhance self-determination, independence, productivity and 
inclusion in community life.
    Center. The term ``Center'' means a University Center for Excellence 
in Developmental Disabilities Education, Research, and Service (UCEDD) 
established under subtitle D of the Act.
    Child care-related activities. The term ``child care-related 
activities'' means advocacy, capacity building, and systemic change 
activities that result in families of children with developmental 
disabilities having access to and use of child care services, including 
before-school, after-school, and out-of-school services, in their 
communities.
    Culturally competent. The term ``culturally competent,'' used with 
respect to services, supports, and other assistance means that services, 
supports, or other assistance that are conducted or provided in a manner 
that is responsive to the beliefs, interpersonal styles, attitudes, 
language, and behaviors of individuals who are receiving the services, 
supports or other assistance, and in a manner that has the greatest 
likelihood of ensuring their maximum participation in the program 
involved.
    Department. The term ``Department'' means the U.S. Department of 
Health and Human Services.
    Developmental disability. The term ``developmental disability'' 
means a severe, chronic disability of an individual that:
    (1) Is attributable to a mental or physical impairment or 
combination of mental and physical impairments;
    (2) Is manifested before the individual attains age 22;
    (3) Is likely to continue indefinitely;

[[Page 194]]

    (4) Results in substantial functional limitations in three or more 
of the following areas of major life activity:
    (i) Self-care;
    (ii) Receptive and expressive language;
    (iii) Learning;
    (iv) Mobility;
    (vi) Self-direction;
    (vii) Capacity for independent living; and
    (viii) Economic self-sufficiency.
    (5) Reflects the individual's need for a combination and sequence of 
special, interdisciplinary or generic services, individualized supports, 
or other forms of assistance that are of lifelong or extended duration 
and are individually planned and coordinated.
    (6) An individual from birth to age nine, inclusive, who has a 
substantial developmental delay or specific congenital or acquired 
condition, may be considered to have a developmental disability without 
meeting three or more of the criteria described in paragraphs (1) 
through (5) of this definition, if the individual, without services and 
supports, has a high probability of meeting those criteria later in 
life.
    Early intervention activities. The term ``early intervention 
activities'' means advocacy, capacity building, and systemic change 
activities provided to infants and young children described in the 
definition of ``developmental disability'' and their families to enhance 
the development of the individuals to maximize their potential, and the 
capacity of families to meet the special needs of the individuals.
    Education activities. The term ``education activities'' means 
advocacy, capacity building, and systemic change activities that result 
in individuals with developmental disabilities being able to access 
appropriate supports and modifications when necessary, to maximize their 
educational potential, to benefit from lifelong educational activities, 
and to be integrated and included in all facets of student life.
    Employment-related activities. The term ``employment-related 
activities'' means advocacy, capacity building, and systemic change 
activities that result in individuals with developmental disabilities 
acquiring, retaining, or advancing in paid employment, including 
supported employment or self-employment, in integrated settings in a 
community.
    Family support services. The term ``family support services'' means 
services, supports, and other assistance, provided to families with a 
member or members who have developmental disabilities, that are designed 
to: Strengthen the family's role as primary caregiver; prevent 
inappropriate out-of-the-home placement of the members and maintain 
family unity; and reunite, whenever possible, families with members who 
have been placed out of the home. This term includes respite care, 
provision of rehabilitation technology and assistive technology, 
personal assistance services, parent training and counseling, support 
for families headed by aging caregivers, vehicular and home 
modifications, and assistance with extraordinary expenses associated 
with the needs of individuals with developmental disabilities.
    Fiscal year. The term ``fiscal year'' means the Federal fiscal year 
unless otherwise specified.
    Governor. The term ``Governor'' means the chief executive officer of 
a State, as that term is defined in the Act, or his or her designee who 
has been formally designated to act for the Governor in carrying out the 
requirements of the Act and the regulations.
    Health-related activities. The term ``health-related activities'' 
means advocacy, capacity building, and systemic change activities that 
result in individuals with developmental disabilities having access to 
and use of coordinated health, dental, mental health, and other human 
and social services, including prevention activities, in their 
communities.
    Housing-related activities. The term ``housing-related activities'' 
means advocacy, capacity building, and systemic change activities that 
result in individuals with developmental disabilities having access to 
and use of housing and housing supports and services in their 
communities, including assistance related to renting, owning, or 
modifying an apartment or home.

[[Page 195]]

    Inclusion. The term ``inclusion'', used with respect to individuals 
with developmental disabilities, means the acceptance and encouragement 
of the presence and participation of individuals with developmental 
disabilities, by individuals without disabilities, in social, 
educational, work, and community activities, that enable individuals 
with developmental disabilities to have friendships and relationships 
with individuals and families of their own choice; live in homes close 
to community resources, with regular contact with individuals without 
disabilities in their communities; enjoy full access to and active 
participation in the same community activities and types of employment 
as individuals without disabilities; and take full advantage of their 
integration into the same community resources as individuals without 
disabilities, living, learning, working, and enjoying life in regular 
contact with individuals without disabilities.
    Individualized supports. The term ``individualized supports'' means 
supports that: Enable an individual with a developmental disability to 
exercise self-determination, be independent, be productive, and be 
integrated and included in all facets of community life; designed to 
enable such individual to control such individual's environment, 
permitting the most independent life possible; and prevent placement 
into a more restrictive living arrangement than is necessary and enable 
such individual to live, learn, work, and enjoy life in the community; 
and include early intervention services, respite care, personal 
assistance services, family support services, supported employment 
services support services for families headed by aging caregivers of 
individuals with developmental disabilities, and provision of 
rehabilitation technology and assistive technology, and assistive 
technology services.
    Integration. The term ``integration,'' means exercising the equal 
rights of individuals with developmental disabilities to access and use 
the same community resources as are used by and available to other 
individuals.
    Not-for-profit. The term ``not-for-profit,'' used with respect to an 
agency, institution or organization, means an agency, institution, or 
organization that is owned or operated by one or more corporations or 
associations, no part of the net earnings of which injures, or may 
lawfully inure, to the benefit of any private shareholder or individual.
    Personal assistance services. The term ``personal assistance 
services'' means a range of services provided by one or more individuals 
designed to assist an individual with a disability to perform daily 
activities, including activities on or off a job, that such individual 
would typically perform if such individual did not have a disability. 
Such services shall be designed to increase such individual's control in 
life and ability to perform everyday activities, including activities on 
or off a job.
    Prevention activities. The term ``prevention activities'' means 
activities that address the causes of developmental disabilities and the 
exacerbation of functional limitation, such as activities that: 
Eliminate or reduce the factors that cause or predispose individuals to 
developmental disabilities or that increase the prevalence of 
developmental disabilities; increase the early identification of 
problems to eliminate circumstances that create or increase functional 
limitations; and mitigate against the effects of developmental 
disabilities throughout the lifespan of an individual.
    Productivity. The term ``productivity'' means engagement in income-
producing work that is measured by increased income, improved employment 
status, or job advancement, or engagement in work that contributes to a 
household or community.
    Protection and Advocacy (P&A) Agency. The term ``Protection and 
Advocacy (P&A) Agency'' means a protection and advocacy system 
established in accordance with section 143 of the Act.
    Quality assurance activities. The term ``quality assurance 
activities'' means advocacy, capacity building, and systemic change 
activities that result in improved consumer and family-centered quality 
assurance and that result in systems of quality assurance and consumer 
protection that include monitoring of services, supports, and assistance 
provided to an individual with

[[Page 196]]

developmental disabilities that ensures that the individual will not 
experience abuse, neglect, sexual or financial exploitation, or 
violation of legal or human rights; and will not be subject to the 
inappropriate use of restraints or seclusion; include training in 
leadership, self-advocacy, and self-determination for individuals with 
developmental disabilities, their families, and their guardians to 
ensure that those individuals will not experience abuse, neglect, sexual 
or financial exploitation, or violation of legal or human rights; and 
will not be subject to the inappropriate use of restraints or seclusion; 
or include activities related to interagency coordination and systems 
integration that result in improved and enhanced services, supports, and 
other assistance that contribute to and protect the self-determination, 
independence, productivity, and integration and inclusion in all facets 
of community life of individuals with developmental disabilities.
    Rehabilitation technology. The term ``rehabilitation technology'' 
means the systematic application of technologies, engineering 
methodologies, or scientific principles to meet the needs of, and 
address the barriers confronted by individuals with developmental 
disabilities in areas that include education, rehabilitation, 
employment, transportation, independent living, and recreation. Such 
term includes rehabilitation engineering, and the provision of assistive 
technology devices and assistive technology services.
    Required planning documents. The term ``required planning 
documents'' means the State plans required by Sec.  1326.30 of this 
chapter for the State Council on Developmental Disabilities, the Annual 
Statement of Goals and Priorities required by Sec.  1326.22(c) of this 
chapter for P&As, and the five-year plan and annual report required by 
Sec.  1328.7 of this chapter for UCEDDs.
    Secretary. The term ``Secretary'' means the Secretary of the U.S. 
Department of Health and Human Services.
    Self-determination activities. The term ``self-determination 
activities'' means activities that result in individuals with 
developmental disabilities, with appropriate assistance, having the 
ability and opportunity to communicate and make personal decisions; the 
ability and opportunity to communicate choices and exercise control over 
the type and intensity of services, supports, and other assistance the 
individuals receive; the authority to control resources to obtain needed 
services, supports, and other assistance; opportunities to participate 
in, and contribute to, their communities; and support, including 
financial support, to advocate for themselves and others to develop 
leadership skills through training in self-advocacy to participate in 
coalitions, to educate policymakers, and to play a role in the 
development of public policies that affect individuals with 
developmental disabilities.
    State. The term ``State'':
    (1) Except as applied to the University Centers of Excellence in 
Developmental Disabilities Education, Research and Service in section 
155 of the Act, includes each of the several States of the United 
States, the District of Columbia, the Commonwealth of Puerto Rico, the 
United States Virgin Islands, Guam, American Samoa, and the Commonwealth 
of the Northern Mariana Islands.
    (2) For the purpose of UCEDDs in section 155 of the Act and part 
1388 of this chapter, ``State'' means each of the several States of the 
United States, the District of Columbia, the Commonwealth of Puerto 
Rico, the United States Virgin Islands, and Guam.
    State Council on Developmental Disabilities (SCDD). The term ``State 
Council on Developmental Disabilities (SCDD)'' means a Council 
established under section 125 of the DD Act.
    Supported employment services. The term ''supported employment 
services'' means services that enable individuals with developmental 
disabilities to perform competitive work in integrated work settings, in 
the case of individuals with developmental disabilities for whom 
competitive employment has not traditionally occurred; or for whom 
competitive employment has been interrupted or intermittent as a result 
of significant disabilities; and who, because of the nature and severity 
of

[[Page 197]]

their disabilities, need intensive supported employment services or 
extended services in order to perform such work.
    Systemic change activities. The term ``systemic change activities'' 
means a sustainable, transferable and replicable change in some aspect 
of service or support availability, design or delivery that promotes 
positive or meaningful outcomes for individuals with developmental 
disabilities and their families.
    Transportation-related activities. The term ``transportation-related 
activities'' means advocacy, capacity building, and systemic change 
activities that result in individuals with developmental disabilities 
having access to and use of transportation.
    UCEDD. The term ``UCEDD'' means University Centers for Excellence in 
Developmental Disabilities Education, Research, and Service, also known 
by the term ``Center'' under section 102(5) of the Act.
    Unserved and underserved. The term ``unserved and underserved'' 
includes populations such as individuals from racial and ethnic minority 
backgrounds, disadvantaged individuals, individuals with limited English 
proficiency, individuals from underserved geographic areas (rural or 
urban), and specific groups of individuals within the population of 
individuals with developmental disabilities, including individuals who 
require assistive technology in order to participate in community life.

[80 FR 44807, July 27, 2015, as amended at 81 FR 35647, June 3, 2016]



Sec.  1325.4  Rights of individuals with developmental disabilities.

    (a) Section 109 of the Act, Rights of Individuals with Developmental 
Disabilities (42 U.S.C. 15009), is applicable to the SCDD.
    (b) In order to comply with section 124(c)(5)(H) of the Act (42 
U.S.C. 15024(c)(5)(H)), regarding the rights of individuals with 
developmental disabilities, the State participating in the SCDD program 
must meet the requirements of 45 CFR 1326.30(f).
    (c) Applications from UCEDDs also must contain an assurance that the 
human rights of individuals assisted by this program will be protected 
consistent with section 101(c) (see section 154(a)(3)(D) of the Act).

[80 FR 44807, July 27, 2015, as amended at 85 FR 72911, Nov. 16, 2020]



Sec.  1325.5  [Reserved]



Sec.  1325.6  Employment of individuals with disabilities.

    Each grantee which receives Federal funding under the Act must meet 
the requirements of section 107 of the Act (42 U.S.C. 15007) regarding 
affirmative action. The grantee must take affirmative action to employ 
and advance in employment and otherwise treat qualified individuals with 
disabilities without discrimination based upon their physical or mental 
disability in all employment practices such: Advertising, recruitment, 
employment, rates of pay or other forms of compensation, selection for 
training, including apprenticeship, upgrading, demotion or transfer, and 
layoff or termination. This obligation is in addition to the 
requirements of 45 CFR part 84, subpart B, prohibiting discrimination in 
employment practices on the basis of disability in programs receiving 
assistance from the Department. Recipients of funds under the Act also 
may be bound by the provisions of the Americans with Disabilities Act of 
1990 (Pub. L. 101-336, 42 U.S.C. 12101 et seq.) with respect to 
employment of individuals with disabilities. Failure to comply with 
section 107 of the Act may result in loss of Federal funds under the 
Act. If a compliance action is taken, the State will be given reasonable 
notice and an opportunity for a hearing as provided in subpart E of 45 
CFR part 1326.

[80 FR 44807, July 27, 2015, as amended at 81 FR 35647, June 3, 2016]



Sec.  1325.7  Reports to the Secretary.

    All grantee submission of plans, applications and reports must label 
goals, activities and results clearly in terms of the following: Area of 
emphasis, type of activity (advocacy, capacity building, systemic 
change), and categories of measures of progress.



Sec.  1325.8  Formula for determining allotments.

    The Secretary, or his or her designee, will allocate funds 
appropriated under

[[Page 198]]

the Act for the State Councils on Developmental Disabilities and the 
P&As as directed in sections 122 and 142 of the Act (42 U.S.C. 15022 and 
15042).



Sec.  1325.9  Grants administration requirements.

    (a) The following parts of this title and title 2 CFR apply to 
grants funded under parts 1326 and 1328 of this chapter, and to grants 
for Projects of National Significance under section 162 of the Act (42 
U.S.C. 15082):
    (1) 45 CFR part 16--Procedures of the Departmental Grant Appeals 
Board.
    (2) 45 CFR part 46--Protection of Human Subjects.
    (3) 45 CFR part 75--Uniform Administrative Requirements, Cost 
Principles, and Audit Requirements for HHS Award.
    (4) 2 CFR part 376--Nonprocurement Debarment and Suspension.
    (5) 45 CFR part 80--Nondiscrimination under Programs Receiving 
Federal Assistance through the Department of Health and Human Services 
Effectuation of title VI of the Civil Rights Act of 1964.
    (5) 45 CFR part 81--Practice and Procedure for Hearings under part 
80 of this title.
    (6) 45 CFR part 84--Nondiscrimination on the Basis of Handicap in 
Programs and Activities Receiving Federal Financial Assistance.
    (7) 45 CFR part 86--Nondiscrimination on the Basis of Sex in 
Education Programs and Activities Receiving Federal Financial 
Assistance.
    (8) 45 CFR part 91--Nondiscrimination on the Basis of Age in 
Programs or Activities Receiving Federal Financial Assistance from HHS.
    (9) 45 CFR part 93--New Restrictions on Lobbying.
    (b) The Departmental Appeals Board also has jurisdiction over 
appeals by any grantee that has received grants under the UCEDD programs 
or for Projects of National Significance. The scope of the Board's 
jurisdiction concerning these appeals is described in 45 CFR part 16.
    (c) The Departmental Appeals Board also has jurisdiction to decide 
appeals brought by the States concerning any disallowances taken by the 
Secretary, or his or her designee, with respect to specific expenditures 
incurred by the States or by contractors or sub grantees of States. This 
jurisdiction relates to funds provided under the two formula programs--
subtitle B of the Act--Federal Assistance to State Councils on 
Developmental Disabilities, and subtitle C of the Act--Protection and 
Advocacy for Individuals with Developmental Disabilities. Appeals filed 
by States shall be decided in accordance with 45 CFR part 16.
    (d) In making audits and examination to any books, documents, 
papers, and transcripts of records of SCDDs, the P&As, the UCEDDs and 
the Projects of National Significance grantees and sub grantees, as 
provided for in 45 CFR part 75, the Department will keep information 
about individual clients confidential to the maximum extent permitted by 
law and regulations.
    (e)(1) The Department or other authorized Federal officials may 
access client and case eligibility records or other records of a P&A 
system for audit purposes, and for purposes of monitoring system 
compliance pursuant to section 103(b) of the Act. However, such 
information will be limited pursuant to section 144(c) of the Act. No 
personal identifying information such as name, address, and social 
security number will be obtained. Only eligibility information will be 
obtained regarding the type and level of disability of individuals being 
served by the P&A and the nature of the issue concerning which the 
system represented an individual.
    (2) Notwithstanding paragraph (e)(1) of this section, if an audit, 
monitoring review, evaluation, or other investigation by the Department 
produces evidence that the system has violated the Act or the 
regulations, the system will bear the burden of proving its compliance. 
The system's inability to establish compliance because of the 
confidentiality of records will not relieve it of this responsibility. 
The P&A may elect to obtain a release regarding personal information and 
privacy from all individuals requesting or receiving services at the 
time of intake or application. The release shall state that only 
information directly related to

[[Page 199]]

client and case eligibility will be subject to disclosure to officials 
of the Department.

[80 FR 44807, July 27, 2015, as amended at 81 FR 35647, June 3, 2016]



PART 1326_DEVELOPMENTAL DISABILITIES FORMULA GRANT PROGRAMS--Table of Contents



                      Subpart A_Basic Requirements

Sec.
1326.1 General.
1326.2 Obligation of funds.
1326.3 Liquidation of obligations.
1326.4 [Reserved]

  Subpart B_Protection and Advocacy for Individuals With Developmental 
                           Disabilities (PADD)

1326.19 Definitions.
1326.20 Agency designated as the State Protection and Advocacy System.
1326.21 Requirements and authority of the State Protection and Advocacy 
          System.
1326.22 Periodic reports: State Protection and Advocacy System.
1326.23 Non-allowable costs for the State Protection and Advocacy 
          System.
1326.24 Allowable litigation costs.

  Subpart C_Access to Records, Service Providers, and Individuals With 
                       Developmental Disabilities

1326.25 Access to records.
1326.26 Denial or delay of access to records.
1326.27 Access to service providers and individuals with developmental 
          disabilities.
1326.28 Confidentiality of State Protection and Advocacy System records.

    Subpart D_Federal Assistance to State Councils on Developmental 
                              Disabilities

1326.30 State plan requirements.
1326.31 State plan submittal and approval.
1326.32 Periodic reports: Federal assistance to State Councils on 
          Developmental Disabilities.
1326.33 Protection of employees interest.
1326.34 Designated State Agency.
1326.35 Allowable and non-allowable costs for Federal assistance to 
          State Councils on Developmental Disabilities.
1326.36 Final disapproval of the State plan or plan amendments.

  Subpart E_Practice and Procedure for Hearings Pertaining to States' 
 Conformity and Compliance With Developmental Disabilities State Plans, 
                    Reports, and Federal Requirements

                                 General

1326.80 Definitions.
1326.81 Scope of rules.
1326.82 Records to the public.
1326.83 Use of gender and number.
1326.84 Suspension of rules.
1326.85 Filling and service of papers.

                 Preliminary Matters--Notice and Parties

1326.90 Notice of hearing or opportunity for hearing.
1326.91 Time of hearing.
1326.92 Place.
1326.93 Issues at hearing.
1326.94 Request to participate in hearing.

                           Hearing Procedures

1326.100 Who presides.
1326.101 Authority of presiding officer.
1326.102 Rights of parties.
1326.103 Discovery.
1326.104 Evidentiary purpose.
1326.105 Evidence.
1326.106 Exclusion from hearing for misconduct.
1326.107 Unsponsored written material.
1326.108 Official transcript.
1326.109 Record for decision.

                   Post-Hearing Procedures, Decisions

1326.110 Post-hearing briefs.
1326.111 Decisions following hearing.
1326.112 Effective date of decision by the Secretary.

    Authority: 42 U.S.C. 15001 et seq.

    Source: 80 FR 44807, July 27, 2015, unless otherwise noted. 
Redesignated at 81 FR 35645, June 3, 2016.



                      Subpart A_Basic Requirements



Sec.  1326.1  General.

    All rules under this subpart are applicable to both the State 
Councils on Developmental Disabilities and the agency designated as the 
State Protection and Advocacy (P&As) System.



Sec.  1326.2  Obligation of funds.

    (a) Funds which the Federal Government allots under this part during 
a Federal fiscal year are available for obligation by States for a two-
year period

[[Page 200]]

beginning with the first day of the Federal fiscal year in which the 
grant is awarded.
    (b)(1) A State incurs an obligation for acquisition of personal 
property or for the performance of work on the date it makes a binding, 
legally enforceable, written commitment, or when the State Council on 
Developmental Disabilities enters into an Interagency Agreement with an 
agency of State government for acquisition of personal property or for 
the performance of work.
    (2) A State incurs an obligation for personal services, for services 
performed by public utilities, for travel or for rental of real or 
personal property on the date it receives the services, its personnel 
takes the travel, or it uses the rented property.
    (c)(1) A Protection & Advocacy System may elect to treat entry of an 
appearance in judicial and administrative proceedings on behalf of an 
individual with a developmental disability as a basis for obligating 
funds for the litigation costs. The amount of the funds obligated must 
not exceed a reasonable estimate of the costs, and the way the estimate 
was calculated must be documented.
    (2) For the purpose of this paragraph (c), litigation costs means 
expenses for court costs, depositions, expert witness fees, travel in 
connection with a case and similar costs, and costs resulting from 
litigation in which the agency has represented an individual with 
developmental disabilities (e.g., monitoring court orders, consent 
decrees), but not for salaries of employees of the P&A. All funds made 
available for Federal assistance to State Councils on Developmental 
Disabilities and to the P&As obligated under this paragraph (c) are 
subject to the requirement of paragraph (a) of this section. These 
funds, if reobligated, may be reobligated only within a two-year period 
beginning with the first day of the Federal fiscal year in which the 
funds were originally awarded.



Sec.  1326.3  Liquidation of obligations.

    (a) All obligations incurred pursuant to a grant made under the Act 
for a specific Federal fiscal year, must be liquidated within two years 
of the close of the Federal fiscal year in which the grant was awarded.
    (b) The Secretary, or his or her designee, may waive the 
requirements of paragraph (a) of this section when State law impedes 
implementation or the amount of obligated funds to be liquidated is in 
dispute.
    (c) Funds attributable to obligations which are not liquidated in 
accordance with the provisions of this section revert to the Federal 
Government.



Sec.  1326.4  [Reserved]



  Subpart B_Protection and Advocacy for Individuals With Developmental 
                           Disabilities (PADD)



Sec.  1326.19  Definitions.

    As used in this subpart and subpart C of this part, the following 
definitions apply:
    Abuse. The term ``abuse'' means any act or failure to act which was 
performed, or which was failed to be performed, knowingly, recklessly, 
or intentionally, and which caused, or may have caused, injury or death 
to an individual with developmental disabilities, and includes but is 
not limited to such acts as: Verbal, nonverbal, mental and emotional 
harassment; rape or sexual assault; striking; the use of excessive force 
when placing such an individual in bodily restraints; the use of bodily 
or chemical restraints which is not in compliance with Federal and State 
laws and regulations, or any other practice which is likely to cause 
immediate physical or psychological harm or result in long term harm if 
such practices continue. In addition, the P&A may determine, in its 
discretion that a violation of an individual's legal rights amounts to 
abuse, such as if an individual is subject to significant financial 
exploitation.
    American Indian Consortium. The term ``American Indian Consortium'' 
means any confederation of 2 or more recognized American Indian Tribes, 
created through the official resident population of 150,000 enrolled 
tribal members and a contiguous territory of Indian lands in two or more 
States.
    Complaint. The term ``complaint'' includes, but is not limited to, 
any report

[[Page 201]]

or communication, whether formal or informal, written or oral, received 
by the P&A system, including media accounts, newspaper articles, 
electronic communications, telephone calls (including anonymous calls) 
from any source alleging abuse or neglect of an individual with a 
developmental disability.
    Designating official. The term ``designating official'' means the 
Governor or other State official, who is empowered by the State 
legislature or Governor to designate the State official or public or 
private agency to be accountable for the proper use of funds by and 
conduct of the agency designated to administer the P&A system.
    Full investigation. The term ``full investigation'' means access to 
service providers, individuals with developmental disabilities and 
records authorized under these regulations, that are necessary for a P&A 
system to make a determination about whether alleged or suspected 
instances of abuse and neglect are taking place or have taken place. 
Full investigations may be conducted independently or in cooperation 
with other agencies authorized to conduct similar investigations.
    Legal guardian, Conservator, and Legal representative. The terms 
``legal guardian,'' ``conservator,'' and ``legal representative'' all 
mean a parent of a minor, unless the State has appointed another legal 
guardian under applicable State law, or an individual appointed and 
regularly reviewed by a State court or agency empowered under State law 
to appoint and review such officers, and having authority to make all 
decisions on behalf of individuals with developmental disabilities. It 
does not include persons acting only as a representative payee, persons 
acting only to handle financial payments, executors and administrators 
of estates, attorneys or other persons acting on behalf of an individual 
with developmental disabilities only in individual legal matters, or 
officials or their designees responsible for the provision of services, 
supports, and other assistance to an individual with developmental 
disabilities.
    Neglect. The term ``neglect'' means a negligent act or omission by 
an individual responsible for providing services, supports or other 
assistance which caused or may have caused injury or death to an 
individual with a developmental disability(ies) or which placed an 
individual with developmental disability(ies) at risk of injury or 
death, and includes acts or omissions such as failure to: establish or 
carry out an appropriate individual program plan or treatment plan 
(including a discharge plan); provide adequate nutrition, clothing, or 
health care to an individual with developmental disabilities; or provide 
a safe environment which also includes failure to maintain adequate 
numbers of trained staff or failure to take appropriate steps to prevent 
self-abuse, harassment, or assault by a peer.
    Probable cause. The term ``probable cause'' means a reasonable 
ground for belief that an individual with developmental disability(ies) 
has been, or may be, subject to abuse or neglect, or that the health or 
safety of the individual is in serious and immediate jeopardy. The 
individual making such determination may base the decision on reasonable 
inferences drawn from his or her experience or training regarding 
similar incidents, conditions or problems that are usually associated 
with abuse or neglect.
    State Protection and Advocacy System. The term ``State Protection 
and Advocacy System'' is synonymous with the term ``P&A'' used elsewhere 
in this regulation, and the terms ``System'' and ``Protection and 
Advocacy System'' used in this part and in subpart C of this part.



Sec.  1326.20  Agency designated as the State Protection and Advocacy System.

    (a) The designating official must designate the State official or 
public or private agency to be accountable for proper use of funds and 
conduct of the Protection and Advocacy System.
    (b) An agency of the State or private agency providing direct 
services, including guardianship services, may not be designated as the 
agency to administer the Protection and Advocacy System.
    (c) In the event that an entity outside of the State government is 
designated to carry out the program, the

[[Page 202]]

designating official or entity must assign a responsible State official 
to receive, on behalf of the State, notices of disallowances and 
compliance actions as the State is accountable for the proper and 
appropriate expenditure of Federal funds.
    (d)(1) Prior to any redesignation of the agency which administers 
and operates the State Protection and Advocacy System, the designating 
official must give written notice of the intention to make the 
redesignation to the agency currently administering and operating the 
State Protection and Advocacy System by registered or certified mail. 
The notice must indicate that the proposed redesignation is being made 
for good cause. The designating official also must publish a public 
notice of the proposed action. The agency and the public shall have a 
reasonable period of time, but not less than 45 days, to respond to the 
notice.
    (2) The public notice must include:
    (i) The Federal requirements for the State Protection and Advocacy 
System for individuals with developmental disabilities (section 143 of 
the Act); and where applicable, the requirements of other Federal 
advocacy programs administered by the State Protection and Advocacy 
System;
    (ii) The goals and function of the State's Protection and Advocacy 
System including the current Statement of Goals and Priorities;
    (iii) The name and address of the agency currently designated to 
administer and operate the State Protection and Advocacy System, and an 
indication of whether the agency also operates other Federal advocacy 
programs;
    (iv) A description of the current agency operating and administering 
the Protection and Advocacy System including, as applicable, 
descriptions of other Federal advocacy programs it operates;
    (v) A clear and detailed explanation of the good cause for the 
proposed redesignation;
    (vi) A statement suggesting that interested persons may wish to 
write the current agency operating and administering the State 
Protection and Advocacy System at the address provided in paragraph 
(d)(2)(iii) of this section to obtain a copy of its response to the 
notice required by paragraph (d)(1) of this section. Copies must be in a 
format accessible to individuals with disabilities (including plain 
language), and language assistance services will be provided to 
individuals with limited English proficiency, such as translated 
materials or interpretation, upon request;
    (vii) The name of the new agency proposed to administer and operate 
the State Protection and Advocacy System under the Developmental 
Disabilities Program. This agency will be eligible to administer other 
Federal advocacy programs;
    (viii) A description of the system which the new agency would 
administer and operate, including a description of all other Federal 
advocacy programs the agency would operate;
    (ix) The timetable for assumption of operations by the new agency 
and the estimated costs of any transfer and start-up operations; and
    (x) A statement of assurance that the proposed new designated State 
Protection and Advocacy System will continue to serve existing clients 
and cases of the current P&A system or refer them to other sources of 
legal advocacy as appropriate, without disruption.
    (3) The public notice as required by paragraph (d)(1) of this 
section, must be in a format accessible to individuals with 
disabilities, and language assistance services will be provided to 
individuals with limited English proficiency, such as translated 
materials or interpretation, upon request to individuals with 
developmental disabilities or their representatives. The designating 
official must provide for publication of the notice of the proposed 
redesignation using the State register, statewide newspapers, public 
service announcements on radio and television, or any other legally 
equivalent process. Copies of the notice must be made generally 
available to individuals with developmental disabilities and mental 
illness who live in residential facilities through posting or some other 
means.
    (4) After the expiration of the public comment period required in 
paragraph (d)(1) of this section, the designating official must conduct 
a public hearing

[[Page 203]]

on the redesignation proposal. After consideration of all public and 
agency comments, the designating official must give notice of the final 
decision to the currently designated agency and the public through the 
same means used under paragraph (d)(3) of this section. This notice must 
include a clear and detailed explanation of the good cause finding. If 
the notice to the currently designated agency states that the 
redesignation will take place, it also must inform the agency of its 
right to appeal this decision to the Secretary, or his or her designee, 
the authority to hear appeals by the Secretary, or his or her designee, 
and provide a summary of the public comments received in regard to the 
notice of intent to redesignate and the results of the public hearing 
and its responses to those comments. The redesignation shall not be 
effective until 10 working days after notifying the current agency that 
administers and operates the State Protection and Advocacy System or, if 
the agency appeals, until the Secretary, or his or her designee, has 
considered the appeal.
    (e)(1) Following notification as indicated in paragraph (d)(4) of 
this section, the agency that administers and operates the State 
Protection and Advocacy System which is the subject of such action, may 
appeal the redesignation to the Secretary, or his or her designee. To do 
so, the agency that administers and operates the State Protection and 
Advocacy System must submit an appeal in writing to the Secretary, or 
his or her designee, within 20 days of receiving official notification 
under paragraph (d)(4) of this section, with a separate copy sent by 
registered of certified mail to the designating official who made the 
decision concerning redesignation.
    (2) In the event that the agency subject to redesignation does 
exercise its right to appeal under paragraph (e)(1) of this section, the 
designating official must give public notice of the Secretary's, or his 
or her designated person's, final decision regarding the appeal through 
the same means utilized under paragraph (d)(3) of this section within 10 
working days of receipt of the Secretary's, or his or her designee's, 
final decision under paragraph (e)(6) of this section.
    (3) The designating official within 10 working days from the receipt 
of a copy of the appeal must provide written comments to the Secretary, 
or his or her designee, (with a copy sent by registered or certified 
mail to the Protection and Advocacy agency appealing under paragraph 
(e)(1) of this section), or withdraw the redesignation. The comments 
must include a summary of the public comments received in regard to the 
notice of intent to redesignate and the results of the public hearing 
and its responses to those comments.
    (4) In the event that the designating official withdraws the 
redesignation while under appeal pursuant to paragraph (e)(1) of this 
section, the designating official must notify the Secretary, or his or 
her designee, and the current agency, and must give public notice of his 
or her decision through the same means utilized under paragraph (d)(3) 
of this section.
    (5) As part of their submission under paragraph (e)(1) or (3) of 
this section, either party may request, and the Secretary, or his or her 
designee, may grant an opportunity for a meeting with the Secretary, or 
his or her designee, at which representatives of both parties will 
present their views on the issues in the appeal. The meeting will be 
held within 20 working days of the submission of written comments by the 
designating official under paragraph (e)(2) of this section. The 
Secretary, or his or her designee, will promptly notify the parties of 
the date and place of the meeting.
    (6) Within 30 days of the informal meeting under paragraph (e)(5) of 
this section, or, if there is no informal meeting under paragraph (e)(5) 
of this section, within 30 days of the submission under paragraph (e)(3) 
of this section, the Secretary, or his or her designee, will issue to 
the parties a final written decision on whether the redesignation was 
for good cause as defined in paragraph (d)(1) of this section. The 
Secretary, or his or her designee, will receive comments on the record 
from agencies administering the Federal advocacy programs that will be 
directly affected by the proposed redesignation. The P&A and the 
designating official

[[Page 204]]

will have an opportunity to comment on the submissions of the Federal 
advocacy programs. The Secretary, or his or her designee, shall consider 
the comments of the Federal programs, the P&A and the designating 
official in making his final decision on the appeal.
    (f)(1) Within 30 days after the redesignation becomes effective 
under paragraph (d)(4) of this section, the designating official must 
submit an assurance to the Secretary, or his or her designee, that the 
newly designated agency that will administer and operate the State 
Protection and Advocacy System meets the requirements of the statute and 
the regulations.
    (2) In the event that the agency administering and operating the 
State Protection and Advocacy System subject to redesignation does not 
exercise its rights to appeal within the period provided under paragraph 
(e)(1) of this section, the designating official must provide to the 
Secretary, or his or her designee, documentation that the agency was 
redesignated for good cause. Such documentation must clearly demonstrate 
that the Protection and Advocacy agency subject to redesignation was not 
redesignated for any actions or activities which were carried out under 
section 143 of the Act, this regulation or any other Federal advocacy 
program's legislation or regulations.



Sec.  1326.21  Requirements and authority of the State Protection 
and Advocacy System.

    (a) In order for a State to receive Federal funding for Protection 
and Advocacy activities under this subpart, as well as for the State 
Council on Developmental Disabilities activities (subpart D of this 
part), the Protection and Advocacy System must meet the requirements of 
section 143 and 144 of the Act (42 U.S.C. 15043 and 15044) and that 
system must be operational.
    (b) Allotments must be used to supplement and not to supplant the 
level of non-Federal funds available in the State for activities under 
the Act, which shall include activities on behalf of individuals with 
developmental disabilities to remedy abuse, neglect, and violations of 
rights as well as information and referral activities.
    (c) A P&A shall not implement a policy or practice restricting the 
remedies that may be sought on behalf of individuals with developmental 
disabilities or compromising the authority of the P&A to pursue such 
remedies through litigation, legal action or other forms of advocacy. 
Under this requirement, States may not establish a policy or practice, 
which requires the P&A to: Obtain the State's review or approval of the 
P&A's plans to undertake a particular advocacy initiative, including 
specific litigation (or to pursue litigation rather than some other 
remedy or approach); refrain from representing individuals with 
particular types of concerns or legal claims, or refrain from otherwise 
pursuing a particular course of action designed to remedy a violation of 
rights, such as educating policymakers about the need for modification 
or adoption of laws or policies affecting the rights of individuals with 
developmental disabilities; restrict the manner of the P&A's 
investigation in a way that is inconsistent with the System's required 
authority under the DD Act; or similarly interfere with the P&A's 
exercise of such authority. The requirements of this paragraph (c) shall 
not prevent P&As, including those functioning as agencies within State 
governments, from developing case or client acceptance criteria as part 
of the annual priorities identified by the P&A as described in Sec.  
1326.23(c). Clients must be informed at the time they apply for services 
of such criteria.
    (d) A Protection and Advocacy System shall be free from hiring 
freezes, reductions in force, prohibitions on staff travel, or other 
policies, imposed by the State, to the extent that such policies would 
impact system program staff or functions funded with Federal funds, and 
would prevent the system from carrying out its mandates under the Act.
    (e) A Protection and Advocacy System shall have sufficient staff, 
qualified by training and experience, to carry out the responsibilities 
of the system in accordance with the priorities of the system and 
requirements of the Act. These responsibilities include the 
investigation of allegations of abuse, neglect and representations of

[[Page 205]]

individuals with developmental disabilities regarding rights violations.
    (f) A Protection and Advocacy System may exercise its authority 
under State law where the State authority exceeds the authority required 
by the Developmental Disabilities Assistance and Bill of Rights Act of 
2000. However, State law must not diminish the required authority of the 
Protection and Advocacy System as set by the Act.
    (g) Each Protection and Advocacy System that is a public system 
without a multimember governing or advisory board must establish an 
advisory council in order to provide a voice for individuals with 
developmental disabilities. The Advisory Council shall advise the 
Protection and Advocacy System on program policies and priorities. The 
Advisory Council and Governing Board shall be comprised of a majority of 
individuals with disabilities who are eligible for services, have 
received or are receiving services, parents, family members, guardians, 
advocates, or authorized representatives of such individuals.
    (h) Prior to any Federal review of the State program, a 30-day 
notice and an opportunity for public comment must be published in the 
Federal Register. Reasonable effort shall be made by AIDD to seek 
comments through notification to major disability advocacy groups, the 
State Bar, disability law resources, the State Councils on Developmental 
Disabilities, and the University Centers for Excellence in Developmental 
Disabilities Education, Research, and Service, for example, through 
newsletters and publication of those organizations. The findings of 
public comments may be consolidated if sufficiently similar issues are 
raised and they shall be included in the report of the onsite visit.
    (i) Before the Protection and Advocacy System releases information 
to individuals not otherwise authorized to receive it, the Protection 
and Advocacy System must obtain written consent from the client 
requesting assistance or his or her guardian.
    (j) Contracts for program operations. (1) An eligible P&A system may 
contract for the operation of part of its program with another public or 
private nonprofit organization with demonstrated experience working with 
individuals with developmental disabilities, provided that:
    (i) The eligible P&A system institutes oversight and monitoring 
procedures which ensure that any and all subcontractors will be able to 
meet all applicable terms, conditions and obligations of the Federal 
grant, including but not limited to the ability to pursue all forms of 
litigation under the DD Act;
    (ii) The P&A exercises appropriate oversight to ensure that the 
contracting organization meets all applicable responsibilities and 
standards which apply to P&As, including but not limited to, the 
confidentiality provisions in the DD Act and regulations, ethical 
responsibilities, program accountability and quality controls;
    (2) Any eligible P&A system should work cooperatively with existing 
advocacy agencies and groups and, where appropriate, consider entering 
into contracts for protection and advocacy services with organizations 
already working on behalf of individuals with developmental 
disabilities.

[80 FR 44807, July 27, 2015, as amended at 81 FR 35647, June 3, 2016]



Sec.  1326.22  Periodic reports: State Protection and Advocacy System.

    (a) By January 1 of each year, each State Protection and Advocacy 
System shall submit to AIDD, an Annual Program Performance Report. In 
order to be accepted, the Report must meet the requirements of section 
144(e) of the Act (42 U.S.C. 15044), the applicable regulation and 
include information on the System's program necessary for the Secretary, 
or his or her designee, to comply with section 105(1), (2), and (3) of 
the Act (42 U.S.C. 15005). The Report shall describe the activities, 
accomplishments, and expenditures of the system during the preceding 
fiscal year. Reports shall include a description of the system's goals 
and the extent to which the goals were achieved, barriers to their 
achievement; the process used to obtain public input, the nature of such 
input, and how such input was used; the extent to which unserved or 
underserved individuals or groups, particularly from ethnic or racial 
groups or geographic regions (e.g.,

[[Page 206]]

rural or urban areas) were the target of assistance or service; and 
other such information on the Protection and Advocacy System's 
activities requested by AIDD.
    (b) Financial status reports (standard form 425) must be submitted 
by the agency administering and operating the State Protection and 
Advocacy System semiannually.
    (c) By January 1 of each year, the State Protection and Advocacy 
System shall submit to AIDD, an Annual Statement of Goals and 
Priorities, (SGP), for the coming fiscal year as required under section 
143(a)(2)(C) of the Act (42 U.S.C. 15043). In order to be accepted by 
AIDD, an SGP must meet the requirements of section 143 of the Act.
    (1) The SGP is a description and explanation of the system's goals 
and priorities for its activities, selection criteria for its individual 
advocacy and training activities, and the outcomes it strives to 
accomplish. The SGP is developed through data driven strategic planning. 
If changes are made to the goals or the indicators of progress 
established for a year, the SGP must be amended to reflect those 
changes. The SGP must include a description of how the Protection and 
Advocacy System operates, and where applicable, how it coordinates the 
State Protection and Advocacy program for individuals with developmental 
disabilities with other Protection and Advocacy programs administered by 
the State Protection and Advocacy System. This description must include 
the System's processes for intake, internal and external referrals, and 
streamlining of advocacy services. If the System will be requesting or 
requiring fees or donations from clients as part of the intake process, 
the SGP must state that the system will be doing so. The description 
also must address collaboration, the reduction of duplication and 
overlap of services, the sharing of information on service needs, and 
the development of statements of goals and priorities for the various 
advocacy programs.
    (2) Priorities as established through the SGP serve as the basis for 
the Protection and Advocacy System to determine which cases are selected 
in a given fiscal year. Protection and Advocacy Systems have the 
authority to turn down a request for assistance when it is outside the 
scope of the SGP, but they must inform individuals when this is the 
basis for turning them down.
    (d) Each fiscal year, the Protection and Advocacy System shall:
    (1) Obtain formal public input on its Statement of Goals and 
Priorities;
    (2) At a minimum, provide for a broad distribution of the proposed 
Statement of Goals and Priorities for the next fiscal year in a manner 
accessible to individuals with developmental disabilities and their 
representatives, allowing at least 45 days from the date of distribution 
for comment;
    (3) Provide to the State Councils on Developmental Disabilities and 
the University Centers for Excellence in Developmental Disabilities 
Education, Research and Service a copy of the proposed Statement of 
Goals and Priorities for comment concurrently with the public notice;
    (4) Incorporate or address any comments received through public 
input and any input received from the State Councils on Developmental 
Disabilities and the University Centers for Excellence in Developmental 
Disabilities Education, Research and Service in the final Statement 
submitted; and
    (5) Address how the Protection and Advocacy System, State Councils 
on Developmental Disabilities, and University Centers for Excellence in 
Developmental Disabilities Education Research and Service will 
collaborate with each other and with other public and private entities.



Sec.  1326.23  Non-allowable costs for the State Protection 
and Advocacy System.

    (a) Federal financial participation is not allowable for:
    (1) Costs incurred for activities on behalf of individuals with 
developmental disabilities to solve problems not directly related to 
their disabilities and which are faced by the general populace. Such 
activities include but are not limited to: Preparation of wills, divorce 
decrees, and real estate proceedings. Allowable costs in such cases 
would include the Protection and Advocacy System providing disability-
related technical assistance information

[[Page 207]]

and referral to appropriate programs and services; and
    (2) Costs not allowed under other applicable statutes, Departmental 
regulations and issuances of the Office of Management and Budget.
    (b) Attorneys' fees are considered program income pursuant to 45 CFR 
part 75 and must be added to the funds committed to the program and used 
to further the objectives of the program. This requirement shall apply 
to all attorneys' fees, including those earned by contractors and those 
received after the project period in which they were earned.



Sec.  1326.24  Allowable litigation costs.

    Allotments may be used to pay the otherwise allowable costs incurred 
by a Protection and Advocacy System in bringing lawsuits in its own 
right to redress incidents of abuse or neglect, discrimination and other 
rights violations impacting the ability of individuals with 
developmental disabilities to obtain access to records and when it 
appears on behalf of named plaintiffs or a class of plaintiff for such 
purposes.



  Subpart C_Access to Records, Service Providers, and Individuals With 
                       Developmental Disabilities



Sec.  1326.25  Access to records.

    (a) Pursuant to sections 143(a)(2), (A)(i), (B), (I), and (J) of the 
Act, and subject to the provisions of this section, a Protection and 
Advocacy (P&A) System, and all of its authorized agents, shall have 
access to the records of individuals with developmental disabilities 
under the following circumstances:
    (1) If authorized by an individual who is a client of the system, or 
who has requested assistance from the system, or by such individual's 
legal guardian, conservator or other legal representative.
    (2) In the case of an individual to whom all of the following 
conditions apply:
    (i) The individual, due to his or her mental or physical condition, 
is unable to authorize the system to have access;
    (ii) The individual does not have a legal guardian, conservator or 
other legal representative, or the individual's guardian is the State 
(or one of its political subdivisions); and
    (iii) The individual has been the subject of a complaint to the P&A 
system, or the P&A system has probable cause (which can be the result of 
monitoring or other activities including media reports and newspaper 
articles) to believe that such individual has been subject to abuse and 
neglect.
    (3) In the case of an individual, who has a legal guardian, 
conservator, or other legal representative, about whom a complaint has 
been received by the system or, as a result of monitoring or other 
activities, the system has determined that there is probable cause to 
believe that the individual with developmental disability has been 
subject to abuse or neglect, whenever the following conditions exist:
    (i) The P&A system has made a good faith effort to contact the legal 
guardian, conservator, or other legal representative upon prompt receipt 
(within the timelines set forth in paragraph (c) of this section) of the 
contact information (which is required to include but not limited to 
name, address, telephone numbers, and email address) of the legal 
guardian, conservator, or other legal representative;
    (ii) The system has offered assistance to the legal guardian, 
conservator, or other legal representative to resolve the situation; and
    (iii) The legal guardian, conservator, or other legal representative 
has failed or refused to provide consent on behalf of the individual.
    (4) If the P&A determines there is probable cause to believe that 
the health or safety of an individual is in serious and immediate 
jeopardy, no consent from another party is needed.
    (5) In the case of death, no consent from another party is needed. 
Probable cause to believe that the death of an individual with a 
developmental disability resulted from abuse or neglect or any other 
specific cause is not required for the P&A system to obtain access to 
the records. Any individual who dies in a situation in which services, 
supports, or other assistance are,

[[Page 208]]

have been, or may customarily be provided to individuals with 
developmental disabilities shall, for the purposes of the P&A system 
obtaining access to the individual's records, be deemed an ``individual 
with a developmental disability.''
    (b) Individual records to which P&A systems must have access under 
section 143(a)(2), (A)(i), (B), (I), and (J) of the Act (whether written 
or in another medium, draft, preliminary or final, including handwritten 
notes, electronic files, photographs or video or audiotape records) 
shall include, but shall not be limited to:
    (1) Individual records prepared or received in the course of 
providing intake, assessment, evaluation, education, training and other 
services; supports or assistance, including medical records, financial 
records, and monitoring and other reports prepared or received by a 
service provider. This includes records stored or maintained at sites 
other than that of the service provider, as well as records that were 
not prepared by the service provider, but received by the service 
provider from other service providers.
    (2) Reports prepared by a Federal, State or local governmental 
agency, or a private organization charged with investigating incidents 
of abuse or neglect, injury or death. The organizations whose reports 
are subject to this requirement include, but are not limited to, 
agencies in the foster care systems, developmental disabilities systems, 
prison and jail systems, public and private educational systems, 
emergency shelters, criminal and civil law enforcement agencies such as 
police departments, agencies overseeing juvenile justice facilities, 
juvenile detention facilities, all pre- and post-adjudication juvenile 
facilities, State and Federal licensing and certification agencies, and 
private accreditation organizations such as the Joint Commission on the 
Accreditation of Health Care Organizations or by medical care evaluation 
or peer review committees, regardless of whether they are protected by 
federal or state law. The reports subject to this requirement describe 
any or all of the following:
    (i) The incidents of abuse, neglect, injury, and/or death;
    (ii) The steps taken to investigate the incidents;
    (iii) Reports and records, including personnel records, prepared or 
maintained by the service provider in connection with such reports of 
incidents; or,
    (iv) Supporting information that was relied upon in creating a 
report including all information and records that describe persons who 
were interviewed, physical and documentary evidence that was reviewed, 
and the related investigative findings;
    (3) Discharge planning records; and
    (4) Information in professional, performance, building or other 
safety standards, and demographic and statistical information relating 
to a service provider.
    (c) The time period in which the P&A system must be given access to 
records of individuals with developmental disabilities under sections 
143(a)(2)(A)(i), (B), (I), and (J) of the Act, and subject to the 
provisions of this section, varies depending on the following 
circumstances:
    (1) If the P&A system determines that there is probable cause to 
believe that the health or safety of the individual with a developmental 
disability is in serious and immediate jeopardy, or in any case of the 
death of an individual with a developmental disability, access to the 
records of the individual with a developmental disability, as described 
in paragraph (b) of this section shall be provided (including the right 
to inspect and copy records as specified in paragraph (d) of this 
section) to the P&A system within 24 hours of receipt of the P&A 
system's written request for the records without the consent of another 
party.
    (2) In all other cases, access to records of individuals with 
developmental disabilities shall be provided to the P&A system within 
three business days after the receipt of such a written request from the 
P&A system.
    (d) A P&A shall be permitted to inspect and copy information and 
records, subject to a reasonable charge to offset duplicating costs. If 
the service provider or its agents copy the records for the P&A system, 
it may not charge the P&A system an amount

[[Page 209]]

that would exceed the amount customarily charged other non-profit or 
State government agencies for reproducing documents. At its option, the 
P&A may make written notes when inspecting information and records, and 
may use its own photocopying equipment to obtain copies. If a party 
other than the P&A system performs the photocopying or other 
reproduction of records, it shall provide the photocopies or 
reproductions to the P&A system within the time frames specified in 
paragraph (c) of this section. In addition, where records are kept or 
maintained electronically they shall be provided to the P&A 
electronically.
    (e) The Health Insurance Portability and Accountability Act Privacy 
Rule permits the disclosure of protected health information (PHI) 
without the authorization of the individual to a P&A system to the 
extent that such disclosure is required by law and the disclosure 
complies with the requirements of that law.
    (f) Educational agencies, including public, private, and charter 
schools, as well as, public and private residential and non-residential 
schools, must provide a P&A with the name of and contact information for 
the parent or guardian of a student for whom the P&A has probable cause 
to obtain records under the DD Act.



Sec.  1326.26  Denial or delay of access to records.

    If a P&A system's access is denied or delayed beyond the deadlines 
specified in Sec.  1326.25, the P&A system shall be provided, within one 
business day after the expiration of such deadline, with a written 
statement of reasons for the denial or delay. In the case of a denial 
for alleged lack of authorization, the name, address and telephone 
number of individuals with developmental disabilities and legal 
guardians, conservators, or other legal representative will be included 
in the aforementioned response. All of the above information shall be 
provided whether or not the P&A has probable cause to suspect abuse or 
neglect, or has received a complaint.

[80 FR 44807, July 27, 2015, as amended at 81 FR 35647, June 3, 2016]



Sec.  1326.27  Access to service providers and individuals 
with developmental disabilities.

    (a) Access to service providers and individuals with developmental 
disabilities shall be extended to all authorized agents of a P&A system.
    (b) The P&A system shall have reasonable unaccompanied access to 
individuals with developmental disabilities at all times necessary to 
conduct a full investigation of an incident of abuse or neglect.
    (1) Such access shall be afforded upon request, by the P&A system 
when:
    (i) An incident is reported or a complaint is made to the P&A 
system;
    (ii) The P&A system determines that there is probable cause to 
believe that an incident has or may have occurred; or
    (iii) The P&A system determines that there is or may be imminent 
danger of serious abuse or neglect of an individual with a developmental 
disability.
    (2) A P&A system shall have reasonable unaccompanied access to 
public and private service providers, programs in the State, and to all 
areas of the service provider's premises that are used by individuals 
with developmental disabilities or are accessible to them. Such access 
shall be provided without advance notice and made available immediately 
upon request. This authority shall include the opportunity to interview 
any individual with developmental disability, employee, or other 
persons, including the person thought to be the victim of such abuse, 
who might be reasonably believed by the system to have knowledge of the 
incident under investigation. The P&A may not be required to provide the 
name or other identifying information regarding the individual with 
developmental disability or staff with whom it plans to meet; neither 
may the P&A be required to justify or explain its interaction with such 
persons.
    (c) In addition to the access required under paragraph (b) of this 
section, a P&A system shall have reasonable unaccompanied access to 
service providers for routine circumstances. This includes areas which 
are used by individuals with developmental disabilities and are 
accessible to individuals with

[[Page 210]]

developmental disabilities at reasonable times, which at a minimum shall 
include normal working hours and visiting hours. A P&A also shall be 
permitted to attend treatment planning meetings concerning individuals 
with developmental disabilities with the consent of the individual or 
his or her guardian, conservator or other legal representative, except 
that no consent is required if the individual, due to his or mental or 
physical condition, is unable to authorize the system to have access to 
a treatment planning meeting; and the individual does not have a legal 
guardian, conservator or other legal representative, or the individual's 
guardian is the State (or one of its political subdivisions).
    (1) Access to service providers shall be afforded immediately upon 
an oral or written request by the P&A system. Except where complying 
with the P&A's request would interfere with treatment or therapy to be 
provided, service providers shall provide access to individuals for the 
purpose covered by this paragraph. If the P&As access to an individual 
must be delayed beyond 24 hours to allow for the provision of treatment 
or therapy, the P&A shall receive access as soon as possible thereafter. 
In cases where a service provider denies a P&A access to an individual 
with a developmental disability on the grounds that such access would 
interfere with the individual's treatment or therapy, the service 
provider shall, no later than 24 hours of the P&A's request, provide the 
P&A with a written statement from a physician stating that P&A access to 
the individual will interfere with the individual's treatment and 
therapy, and the time and circumstances under which the P&A can 
interview the individual. If the physician states that the individual 
cannot be interviewed in the next 24 hours, the P&A and the service 
provider shall engage in a good faith interactive process to determine 
when and under what circumstances the P&A can interview the individual. 
If the P&A and the service provider are unable to agree upon the time 
and circumstance, they shall select a mutually agreeable independent 
physician who will determine when and under what circumstances the 
individual may be interviewed. The expense of the independent 
physician's services shall be paid for by the service provider. 
Individuals with developmental disabilities subject to the requirements 
in this paragraph include adults and minors who have legal guardians or 
conservators.
    (2) P&A activities shall be conducted so as to minimize interference 
with service provider programs, respect individuals with developmental 
disabilities' privacy interests, and honor a recipient's request to 
terminate an interview. This access is for the purpose of:
    (i) Providing information, training, and referral for programs 
addressing the needs of individuals with developmental disabilities, 
information and training about individual rights, and the protection and 
advocacy services available from the P&A system, including the name, 
address, and telephone number of the P&A system. P&As shall be permitted 
to post, in an area which individuals with developmental disabilities 
receive services, a poster which states the protection and advocacy 
services available from the P&A system, including the name, address and 
telephone number of the P&A system.
    (ii) Monitoring compliance with respect to the rights and safety of 
individuals with developmental disabilities; and
    (iii) Access including, but is not limited to inspecting, viewing, 
photographing, and video recording all areas of a service provider's 
premises or under the service provider's supervision or control which 
are used by individuals with developmental disabilities or are 
accessible to them. This authority does not include photographing or 
video recording individuals with developmental disabilities unless they 
consent or State laws allow such activities.
    (d) Unaccompanied access to individuals with developmental 
disabilities including, but not limited to, the opportunity to meet and 
communicate privately with individuals regularly, both formally and 
informally, by telephone, mail and in person. This authority shall also 
include the opportunity to meet, communicate with, or interview any 
individual with a developmental disability, including a person thought

[[Page 211]]

to be the subject of abuse, who might be reasonably believed by the P&A 
system to have knowledge of an incident under investigation or non-
compliance with respect to the rights and safety of individuals with 
developmental disabilities. Except as otherwise required by law the P&A 
shall not be required to provide the name or other identifying 
information regarding the individual with a disability with whom it 
plans to meet; neither may the P&A be required to justify or explain its 
interaction with such persons.



Sec.  1326.28  Confidentiality of State Protection and Advocacy System records.

    (a) A P&A shall, at minimum, comply with the confidentiality 
provisions of all applicable Federal and State laws.
    (b) Records maintained by the P&A system are the property of the P&A 
system which must protect them from loss, damage, tampering, 
unauthorized use, or tampering. The P&A system must:
    (1) Except as provided elsewhere in this section, keep confidential 
all records and information, including information contained in any 
automated electronic database pertaining to:
    (i) Clients;
    (ii) Individuals who have been provided general information or 
technical assistance on a particular matter;
    (iii) The identity of individuals who report incidents of abuse or 
neglect, or who furnish information that forms the basis for a 
determination that probable cause exists; and
    (iv) Names of individuals who have received services, supports or 
other assistance, and who provided information to the P&A for the 
record.
    (v) Peer review records.
    (2) Have written policies governing the access, storage, duplication 
and release of information from client records, including the release of 
information peer review records.
    (3) Obtain written consent from the client, or from his or her legal 
representative; individuals who have been provided general information 
or technical assistance on a particular matter; and individuals who 
furnish reports or information that form the basis for a determination 
of probable cause, before releasing information concerning such 
individuals to those not otherwise authorized to receive it.
    (c) Nothing in this subpart shall prevent the P&A system from 
issuing a public report of the results of an investigation which 
maintains the confidentiality of the individuals listed in paragraph 
(a)(1) of this section, or reporting the results of an investigation in 
a manner which maintains the confidentiality of such individuals, to 
responsible investigative or enforcement agencies should an 
investigation reveal information concerning the service provider, its 
staff, or employees warranting possible sanctions or corrective action. 
This information may be reported to agencies responsible for service 
provider licensing or accreditation, employee discipline, employee 
licensing or certification, or criminal investigation or prosecution.
    (d) Notwithstanding the confidentiality requirements of this 
section, the P&A may make a report to investigative or enforcement 
agencies, as described in paragraph (b) of this section, which reveals 
the identity of an individual with developmental disability, and 
information relating to his or her status or treatment:
    (1) When the system has received a complaint that the individual has 
been or may be subject to abuse and neglect, or has probable cause 
(which can be the result of monitoring or other activities including 
media reports and newspaper articles) to believe that such individual 
has been or may be subject to abuse or neglect;
    (2) When the system determines that there is probable cause to 
believe the health or safety of the individual is in serious and 
immediate jeopardy; or
    (3) In any case of the death of an individual whom the system 
believes may have had a developmental disability.



    Subpart D_Federal Assistance to State Councils on Developmental 
                              Disabilities



Sec.  1326.30  State plan requirements.

    (a) In order to receive Federal funding under this subpart, each 
State Developmental Disabilities Council must

[[Page 212]]

prepare and submit a State plan which meets the requirements of sections 
124 and 125 of the Act (42 U.S.C. 15024 and 15025), and the applicable 
regulation. Development of the State plan and its periodic updating are 
the responsibility of the State Council on Developmental Disabilities. 
As provided in section 124(d) of the Act, the Council shall provide 
opportunities for public input and review (in accessible formats and 
plain language requirements), and will consult with the Designated State 
Agency to determine that the plan is consistent with applicable State 
laws, and obtain appropriate State plan assurances.
    (b) Failure to comply with the State plan requirements may result in 
the loss of Federal funds as described in section 127 of the Act (42 
U.S.C. 15027). The Secretary, or his or her designee, must provide 
reasonable notice and an opportunity for a hearing to the Council and 
the Designated State Agency before withholding any payments for 
planning, administration, and services.
    (c) The State plan must be submitted through the designated system 
by AIDD which is used to collect quantifiable and qualifiable 
information from the State Councils on Developmental Disabilities. The 
plan must:
    (1) Identify the agency or office in the State designated to support 
the Council in accordance with section 124(c)(2) and 125(d) of the Act. 
The Designated State Agency shall provide required assurances and 
support services requested from and negotiated with the Council.
    (2) For a year covered by the State plan, include for each area of 
emphasis under which a goal or goals have been identified, the measures 
of progress the Council has established or is required to apply in its 
progress in furthering the purpose of the Developmental Disabilities 
Assistance and Bill of Rights Act through advocacy, capacity building, 
and systemic change activities.
    (3) Provide for the establishment and maintenance of a Council in 
accordance with section 125 of the Act and describe the membership of 
such Council. The non-State agency members of the Council shall be 
subject to term limits to ensure rotating membership.
    (d) The State plan must be updated during the five-year period when 
substantive changes are contemplated in plan content, including changes 
under paragraph (c)(2) of this section.
    (e) The State plan may provide for funding projects to demonstrate 
new approaches to direct services that enhance the independence, 
productivity, and integration and inclusion into the community of 
individuals with developmental disabilities. Direct service 
demonstrations must be short-term, with a strategy to locate on-going 
funding from other sources after five years. Any State desiring to 
receive assistance beyond five years, under this subtitle, shall include 
in the State plan the information listed in paragraphs (e)(1) through 
(3) of this section, and AIDD reserves the right as the overseeing 
agency to deny the continuation of the demonstration project beyond five 
years.
    (1) The estimated period for the project's continued duration;
    (2) Justifications of why the project cannot be funded by the State 
or other sources and should receive continued funding; and
    (3) Provide data outcomes showing evidence of success.
    (f) The State plan may provide for funding of other demonstration 
projects or activities, including but not limited to outreach, training, 
technical assistance, supporting and educating communities, interagency 
collaboration and coordination, coordination with related councils, 
committees and programs, barrier elimination, systems design and 
redesign, coalition development and citizen participation, and informing 
policymakers. Demonstrations must be short-term, with a strategy to 
locate on-going funding from other sources after five years. Any State 
desiring to receive assistance beyond five years, under this subtitle, 
shall include in the State plan the information listed in paragraphs 
(f)(1) through (3) of this section, and AIDD reserves the right as the 
overseeing agency to deny the continuation of the demonstration project 
beyond five years.
    (1) The estimated period for the project's continued duration;
    (2) Justifications on why the project cannot be funded by the State 
or other

[[Page 213]]

resources and should receive continued funding; and
    (3) Provide data showing evidence of success.
    (g) The State plan must contain assurances that are consistent with 
section 124 of the Act (42 U.S.C. 15024).



Sec.  1326.31  State plan submittal and approval.

    (a) The Council shall issue a public notice about the availability 
of the proposed State plan or State plan amendment(s) for comment. The 
notice shall be published in formats accessible to individuals with 
developmental disabilities and the general public (e.g. public forums, 
Web sites, newspapers, and other current technologies) and shall provide 
a 45-day period for public review and comment. The Council shall take 
into account comments submitted within that period, and respond in the 
State plan to significant comments and suggestions. A summary of the 
Council's responses to State plan comments shall be submitted with the 
State plan and made available for public review. This document shall be 
made available in accessible formats upon request.
    (b) The State plan or amendment must be submitted to AIDD 45 days 
prior to the fiscal year for which it is applicable.
    (c) Failure to submit an approvable State plan or amendment prior to 
the Federal fiscal year for which it is applicable may result in the 
loss of Federal financial participation. Plans received during a quarter 
of the Federal fiscal year are approved back to the first day of the 
quarter so costs incurred from that point forward are approvable. Costs 
resulting from obligations incurred during the period of the fiscal year 
for which an approved plan is not in effect are not eligible for Federal 
financial participation.
    (d) The Secretary, or his or her designee, must approve any State 
plan or plan amendment provided it meets the requirements of the Act and 
this regulation.



Sec.  1326.32  Periodic reports: Federal assistance to State Councils 
on Developmental Disabilities.

    (a) The Governor or appropriate State financial officer must submit 
financial status reports (AIDD-02B) on the programs funded under this 
subpart semiannually.
    (b) By January 1 of each year, the State Council on Developmental 
Disabilities shall submit to AIDD, an Annual Program Performance Report 
through the system established by AIDD. In order to be accepted by AIDD, 
reports must meet the requirements of section 125(c)(7) of the Act (42 
U.S.C. 15025) and the applicable regulations, include the information on 
its program necessary for the Secretary, or his or her designee, to 
comply with section 105(1), (2), and (3) of the Act (42 U.S.C. 15005), 
and any other information requested by AIDD. Each Report shall contain 
information about the progress made by the Council in achieving its 
goals including:
    (1) A description of the extent to which the goals were achieved;
    (2) A description of the strategies that contributed to achieving 
the goals;
    (3) To the extent to which the goals were not achieved, a 
description of factors that impeded the achievement;
    (4) Separate information on the self-advocacy goal described in 
section 124(c)(4)(A)(ii) of the Act (42 U.S.C. 15024);
    (5) As appropriate, an update on the results of the comprehensive 
review and analysis of the extent to which services, supports, and other 
assistance are available to individuals with developmental disabilities 
and their families, including the extent of unmet needs for services, 
supports, and other assistance for those individuals and their families, 
in the State as required in section 124(c)(3) of the Act (42 U.S.C. 
15024);
    (6) Information on individual satisfaction with Council supported or 
conducted activities;
    (7) A description of the adequacy of health care and other services, 
supports, and assistance that individuals with developmental 
disabilities in Intermediate Care Facilities for Individuals with 
Intellectual Disabilities (ICF/IID) receive;
    (8) To the extent available, a description of the adequacy of health 
care and other services, supports, and assistance

[[Page 214]]

received by individuals with developmental disabilities served through 
home and community-based waivers (authorized under section 1915(c) of 
the Social Security Act);
    (9) An accounting of the funds paid to the State awarded under the 
DD Council program;
    (10) A description of resources made available to carry out 
activities to assist individuals with developmental disabilities 
directly attributable to Council actions;
    (11) A description of resources made available for such activities 
that are undertaken by the Council in collaboration with other entities; 
and
    (12) A description of the method by which the Council will widely 
disseminate the annual report to affected constituencies and the general 
public and will assure that the report is available in accessible 
formats.
    (c) Each Council must include in its Annual Program Performance 
Report information on its achievement of the measures of progress.



Sec.  1326.33  Protection of employees interests.

    (a) Based on section 124(c)(5)(J) of the Act (42 U.S.C. 
15024(c)(5)(J)), the State plan must assure fair and equitable 
arrangements to protect the interest of all institutional employees 
affected by actions under the plan to provide community living 
activities. The State must inform employees of the State's decision to 
provide for community living activities. Specific arrangements for the 
protection of affected employees must be developed through negotiations 
between the appropriate State authorities and employees or their 
representatives.
    (b) Fair and equitable arrangements must include procedures that 
provide for the impartial resolution of disputes between the State and 
an employee concerning the interpretation, application, and enforcement 
of protection arrangements. To the maximum extent practicable, these 
arrangements must include provisions for:
    (1) The preservation of rights and benefits;
    (2) Guaranteeing employment to employees affected by action under 
the plan to provide alternative community living arrangements; and
    (3) Employee training and retraining programs.



Sec.  1326.34  Designated State Agency.

    (a) The Designated State Agency shall provide the required 
assurances and other support services as requested and negotiated by the 
Council. These include:
    (1) Provision of financial reporting and other services as provided 
under section 125(d)(3)(D) of the Act; and
    (2) Information and direction, as appropriate, on procedures on the 
hiring, supervision, and assignment of staff in accordance with State 
law.
    (b) If the State Council on Developmental Disabilities requests a 
review by the Governor (or State legislature, if applicable) of the 
Designated State Agency, the Council must provide documentation of the 
reason for change, and recommend a new preferred Designated State Agency 
by the Governor (or State legislature, if applicable).
    (c) After the review is completed by the Governor (or State 
legislature, if applicable), and if no change is made, a majority of the 
non-State agency members of the Council may appeal to the Secretary, or 
his or her designee, for a review of the Designated State Agency if the 
Council's independence as an advocate is not assured because of the 
actions or inactions of the Designated State agency.
    (d) The following steps apply to the appeal of the Governor's (or 
State legislature, if applicable) designation of the Designated State 
Agency.
    (1) Prior to an appeal to the Secretary, or his or her designee, the 
State Council on Developmental Disabilities, must give a 30 day written 
notice, by certified mail, to the Governor (or State legislature, if 
applicable) of the majority of non-State members' intention to appeal 
the designation of the Designated State Agency.
    (2) The appeal must clearly identify the grounds for the claim that 
the Council's independence as an advocate is not assured because of the 
action or inactions of the Designated State Agency.
    (3) Upon receipt of the appeal from the State Council on 
Developmental

[[Page 215]]

Disabilities, the Secretary, or his or her designee, will notify the 
State Council on Developmental Disabilities and the Governor (or State 
legislature, if applicable), by certified mail, that the appeal has been 
received and will be acted upon within 60 days. The Governor (or State 
legislature, if applicable) shall within 10 working days from the 
receipt of the Secretary's, or his or her designated person's, 
notification provide written comments to the Secretary, or his or her 
designee, (with a copy sent by registered or certified mail to the 
Council) on the claims in the Council's appeal. Either party may 
request, and the Secretary, or his or her designee, may grant, an 
opportunity for an informal meeting with the Secretary, or his or her 
designee, at which representatives from both parties will present their 
views on the issues in the appeal. The meeting will be held within 20 
working days of the submission of written comments by the Governor (or 
State legislature, if applicable). The Secretary, or his or her 
designee, will promptly notify the parties of the date and place of the 
meeting.
    (4) The Secretary, or his or her designee, will review the issue(s) 
and provide a final written decision within 60 days following receipt of 
the appeal from the State Council on Developmental Disabilities. If the 
determination is made that the Designated State Agency should be 
redesignated, the Governor (or State legislature, if applicable) must 
provide written assurance of compliance within 45 days from receipt of 
the decision.
    (5) Anytime during this appeals process the State Council on 
Developmental Disabilities may withdraw such request if resolution has 
been reached with the Governor (or State legislature, if applicable) on 
the Designated State Agency. The Governor (or State legislature, if 
applicable) must notify the Secretary, or his or her designee, in 
writing of such a decision.
    (e) The Designated State Agency may authorize the Council to 
contract with State agencies other than the Designated State Agency to 
perform functions of the Designated State Agency.



Sec.  1326.35  Allowable and non-allowable costs for Federal assistance 
to State Councils on Developmental Disabilities.

    (a) Under this subpart, Federal funding is available for costs 
resulting from obligations incurred under the approved State plan for 
the necessary expenses of administering the plan, which may include the 
establishment and maintenance of the State Council, and all programs, 
projects, and activities carried out under the State plan.
    (b) Expenditures which are not allowable for Federal financial 
participation are:
    (1) Costs incurred by institutions or other residential or non-
residential programs which do not comply with the Congressional findings 
with respect to the rights of individuals with developmental 
disabilities in section 109 of the Act (42 U.S.C. 15009).
    (2) Costs incurred for activities not provided for in the approved 
State plan; and
    (3) Costs not allowed under other applicable statutes, Departmental 
regulations, or issuances of the Office of Management and Budget.
    (c) Expenditure of funds that supplant State and local funds are not 
allowed. Supplanting occurs when State or local funds previously used to 
fund activities under the State plan are replaced by Federal funds for 
the same purpose. However, supplanting does not occur if State or local 
funds are replaced with Federal funds for a particular activity or 
purpose in the approved State plan if the replaced State or local funds 
are then used for other activities or purposes in the approved State 
plan.
    (d) For purposes of determining aggregate minimum State share of 
expenditures, there are three categories of expenditures:
    (1) Expenditures for projects or activities undertaken directly by 
the Council and Council staff to implement State plan activities, as 
described in section 126(a)(3) of the Act, require no non-Federal 
aggregate of the necessary costs of such activities.
    (2) Expenditures for projects whose activities or products target 
individuals with developmental disabilities who live in urban or rural 
poverty

[[Page 216]]

areas, as determined by the Secretary, or his or her designee, but not 
carried out directly by the Council and Council staff, as described in 
section 126(a)(2) of the Act, shall have non-Federal funding of at least 
10 percent in the aggregate of the necessary costs of such projects.
    (3) All other projects not directly carried out by the Council and 
Council staff shall have non-Federal funding of at least 25 percent in 
the aggregate of the necessary costs of such projects.
    (e) The Council may vary the non-Federal funding required on a 
project-by-project, activity-by-activity basis (both poverty and non-
poverty activities), including requiring no non-Federal funding from 
particular projects or activities as the Council deems appropriate so 
long as the requirement for aggregate non-Federal funding is met.



Sec.  1326.36  Final disapproval of the State plan or plan amendments.

    The Department will disapprove any State plan or plan amendment only 
after the following procedures have been complied with:
    (a) The State plan has been submitted to AIDD for review. If after 
contacting the State on issues with the plan with no resolution, a 
detailed written analysis of the reasons for recommending disapproval 
shall be prepared and provided to the State Council and State Designated 
Agency.
    (b) Once the Secretary, or his or her designee, has determined that 
the State plan, in whole or in part, is not approvable, notice of this 
determination shall be sent to the State with appropriate references to 
the records, provisions of the statute and regulations, and all relevant 
interpretations of applicable laws and regulations. The notification of 
the decision must inform the State of its right to appeal in accordance 
with subpart E of this part.
    (c) The Secretary's, or his or her designee's, decision has been 
forwarded to the State Council and its Designated State Agency by 
certified mail with a return receipt requested.
    (d) A State has filed its request for a hearing with the Secretary, 
or his or her designee, within 21 days of the receipt of the decision. 
The request for a hearing must be sent by certified mail to the 
Secretary, or his or her designee. The date of mailing the request is 
considered the date of filing if it is supported by independent evidence 
of mailing. Otherwise the date of receipt shall be considered the date 
of filing.



  Subpart E_Practice and Procedure for Hearings Pertaining to States' 
 Conformity and Compliance With Developmental Disabilities State Plans, 
                    Reports, and Federal Requirements

                                 General



Sec.  1326.80  Definitions.

    For purposes of this subpart:
    Payment or allotment. The term ``payment'' or ``allotment'' means an 
amount provided under part B or C of the Developmental Disabilities 
Assistance and Bill or Rights Act of 2000. This term includes Federal 
funds provided under the Act irrespective of whether the State must 
match the Federal portion of the expenditure. This term shall include 
funds previously covered by the terms ``Federal financial 
participation,'' ``the State's total allotment,'' ``further payments,'' 
``payments,'' ``allotment'' and ``Federal funds.''
    Presiding officer. The term ``presiding officer'' means anyone 
designated by the Secretary to conduct any hearing held under this 
subpart. The term includes the Secretary, or the Secretary's designee, 
if the Secretary or his or her designee presides over the hearing. For 
purposes of this subpart the Secretary's ``designee'' refers to a 
person, such as the Administrator of ACL, who has been delegated broad 
authority to carry out all or some of the authorizing statute. The term 
designee does not refer to a presiding officer designated only to 
conduct a particular hearing or hearings.



Sec.  1326.81  Scope of rules.

    (a) The rules of procedures in this subpart govern the practice for 
hearings afforded by the Department to States pursuant to sections 124, 
127, and 143 of the Act. (42 U.S.C. 15024, 15027 and 15043).

[[Page 217]]

    (b) Nothing in this part is intended to preclude or limit 
negotiations between the Department and the State, whether before, 
during, or after the hearing to resolve the issues that are, or 
otherwise would be, considered at the hearing. Negotiation and 
resolution of issues are not part of the hearing, and are not governed 
by the rules in this subpart, except as otherwise provided in this 
subpart.



Sec.  1326.82  Records to the public.

    All pleadings, correspondence, exhibits, transcripts of testimony, 
exceptions, briefs, decisions, and other documents filed in the docket 
in any proceeding are subject to public inspection.



Sec.  1326.83  Use of gender and number.

    As used in this subpart, words importing the singular number may 
extend and be applied to several persons or things, and vice versa. 
Words importing either gender may be applied to the other gender or to 
organizations.



Sec.  1326.84  Suspension of rules.

    Upon notice to all parties, the Secretary or the Secretary's 
designee may modify or waive any rule in this subpart, unless otherwise 
expressly provided, upon determination that no party will be unduly 
prejudiced and justice will be served.



Sec.  1326.85  Filing and service of papers.

    (a) All papers in the proceedings must be filed with the designated 
individual in an original and two copies. Only the originals of exhibits 
and transcripts of testimony need be filed.
    (b) Copies of papers in the proceedings must be served on all 
parties by personal delivery or by mail. Service on the party's 
designated representative is deemed service upon the party.

                 Preliminary Matters--Notice and Parties



Sec.  1326.90  Notice of hearing or opportunity for hearing.

    Proceedings are commenced by mailing a notice of hearing or 
opportunity for hearing from the Secretary, or his or her designee, to 
the State Council on Developmental Disabilities and the Designated State 
Agency, or to the State Protection and Advocacy System or designating 
official. The notice must state the time and place for the hearing and 
the issues that will be considered. The notice must be published in the 
Federal Register.



Sec.  1326.91  Time of hearing.

    The hearing must be scheduled not less than 30 days, nor more than 
60 days after the notice of the hearing is mailed to the State.



Sec.  1326.92  Place.

    The hearing must be held on a date and at a time and place 
determined by the Secretary, or his or her designee with due regard for 
convenience, and necessity of the parties or their representatives. The 
site of the hearing shall be accessible to individuals with 
disabilities.



Sec.  1326.93  Issues at hearing.

    (a) Prior to a hearing, the Secretary or his or her designee may 
notify the State in writing of additional issues which will be 
considered at the hearing. That notice must be published in the Federal 
Register. If that notice is mailed to the State less than 20 days before 
the date of the hearing, the State or any other party, at its request, 
must be granted a postponement of the hearing to a date 20 days after 
the notice was mailed or such later date as may be agreed to by the 
Secretary or his or her designee.
    (b) If any issue is resolved in whole or in part, but new or 
modified issues are presented, the hearing must proceed on the new or 
modified issues.
    (c)(1) If at any time, whether prior to, during, or after the 
hearing, the Secretary, or his or her designee, finds that the State has 
come into compliance with Federal requirements on any issue in whole or 
in part, he or she must remove the issue from the proceedings in whole 
or in part as may be appropriate. If all issues are removed the 
Secretary, or his or her designee, must terminate the hearing.
    (2) Prior to the removal of an issue, in whole or in part, from a 
hearing involving issues relating to the conformity with Federal 
requirements under part B of the Act, of the State

[[Page 218]]

plan or the activities of the State Protection and Advocacy System, the 
Secretary, or his or her designee, must provide all parties other than 
the Department and the State (see Sec.  1326.94(b)) with the statement 
of his or her intention to remove an issue from the hearing and the 
reasons for that decision. A copy of the proposed State plan provision 
or document explaining changes in the activities of the State's 
Protection and Advocacy System on which the State and the Secretary, or 
his or her designee, have settled must be sent to the parties. The 
parties must have an opportunity to submit in writing within 15 days 
their views as to, or any information bearing upon, the merits of the 
proposed provision and the merits of the reasons for removing the issue 
from the hearing.
    (d) In hearings involving questions of noncompliance of a State's 
operation of its program under part B of the Act, with the State plan or 
with Federal requirements, or compliance of the State Protection and 
Advocacy System with Federal requirements, the same procedure set forth 
in paragraph (c)(2) of this section must be followed with respect to any 
report or evidence resulting in a conclusion by the Secretary, or his or 
her designee, that a State has achieved compliance.
    (e) The issues considered at the hearing must be limited to those 
issues of which the State is notified as provided in Sec.  1326.90 and 
paragraph (a) of this section, and new or modified issues described in 
paragraph (b) of this section, and may not include issues or parts of 
issues removed from the proceedings pursuant to paragraph (c) of this 
section.

[80 FR 44807, July 27, 2015, as amended at 81 FR 35647, June 3, 2016; 85 
FR 72911, Nov. 16, 2020]



Sec.  1326.94  Request to participate in hearing.

    (a) The Department, the State, the State Council on Developmental 
Disabilities, the Designated State Agency, and the State Protection and 
Advocacy System, as appropriate, are parties to the hearing without 
making a specific request to participate.
    (b)(1) Other individuals or groups may be recognized as parties if 
the issues to be considered at the hearing have caused them injury and 
their interests are relevant to the issues in the hearing.
    (2) Any individual or group wishing to participate as a party must 
file a petition with the designated individual within 15 days after 
notice of the hearing has been published in the Federal Register, and 
must serve a copy on each party of record at that time in accordance 
with Sec.  1326.85(b). The petition must concisely state:
    (i) Petitioner's interest in the proceeding;
    (ii) Who will appear for petitioner;
    (iii) The issues the petitioner wishes to address; and
    (iv) Whether the petitioner intends to present witnesses.
    (c)(1) Any interested person or organization wishing to participate 
as amicus curiae must file a petition with the designated individual 
before the commencement of the hearing. The petition must concisely 
state:
    (i) The petitioner's interest in the hearing;
    (ii) Who will represent the petitioner; and
    (iii) The issues on which the petitioner intends to present 
argument.
    (2) The presiding officer may grant the petition if he or she finds 
that the petitioner has a legitimate interest in the proceedings and 
that such participation will not unduly delay the outcome and may 
contribute materially to the proper disposition of the issues.
    (3) An amicus curiae may present a brief oral statement at the 
hearing at the point in the proceedings specified by the presiding 
officer. It may submit a written statement of position to the presiding 
officer prior to the beginning of a hearing and must serve a copy on 
each party. It also may submit a brief or written statement at such time 
as the parties submit briefs and must serve a copy on each party.

[80 FR 44807, July 27, 2015, as amended at 81 FR 35647, June 3, 2016]

                           Hearing Procedures



Sec.  1326.100  Who presides.

    (a) The presiding officer at a hearing must be the Secretary, his or 
her designee, or another person specifically

[[Page 219]]

designated for a particular hearing or hearings.
    (b) The designation of a presiding officer must be in writing. A 
copy of the designation must be served on all parties and amici curiae.



Sec.  1326.101  Authority of presiding officer.

    (a) The presiding officer has the duty to conduct a fair hearing, 
avoid delay, maintain order, and make a record of the proceedings. The 
presiding officer has all powers necessary to accomplish these ends, 
including, but not limited to, the power to:
    (1) Change the date, time, and place of the hearing, upon notice to 
the parties. This includes the power to continue the hearing in whole or 
in part;
    (2) Hold conferences to settle or simplify the issues in a 
proceeding, or to consider other matters that may aid in the expeditious 
disposition of the proceedings;
    (3) Regulate participation of parties and amici curiae and require 
parties and amici curiae to state their positions with respect to the 
issues in the proceeding;
    (4) Administer oaths and affirmations;
    (5) Rule on motions and other procedural items on matters pending 
before him or her, including issuance of protective orders or other 
relief to a party against whom discovery is sought;
    (6) Regulate the course of the hearing and conduct of counsel 
therein;
    (7) Examine witnesses;
    (8) Receive, rule on, exclude, or limit evidence or discovery;
    (9) Fix the time for filing motions, petitions, briefs, or other 
items in matters pending before him or her;
    (10) If the presiding officer is the Secretary, or his or her 
designee, make a final decision;
    (11) If the presiding officer is a person other than the Secretary 
or his or her designee, the presiding officer shall certify the entire 
record, including recommended findings and proposed decision, to the 
Secretary or his or her designee; and
    (12) Take any action authorized by the rules in this subpart or 5 
U.S.C. 551-559.
    (b) The presiding officer does not have authority to compel the 
production of witnesses, papers, or other evidence by subpoena.
    (c) If the presiding officer is a person other than the Secretary or 
his or her designee, his or her authority is to render a recommended 
decision with respect to program requirements which are to be considered 
at the hearing. In case of any noncompliance, he or she shall recommend 
whether payments or allotments should be withheld with respect to the 
entire State plan or the activities of the State's Protection and 
Advocacy System, or whether the payments or allotments should be 
withheld only with respect to those parts of the program affected by 
such noncompliance.



Sec.  1326.102  Rights of parties.

    All parties may:
    (a) Appear by counsel, or other authorized representative, in all 
hearing proceedings;
    (b) Participate in any prehearing conference held by the presiding 
officer;
    (c) Agree to stipulations of facts which will be made a part of the 
record;
    (d) Make opening statements at the hearing;
    (e) Present relevant evidence on the issues at the hearing;
    (f) Present witnesses who then must be available for cross-
examination by all other parties;
    (g) Present oral arguments at the hearing; and
    (h) Submit written briefs, proposed findings of fact, and proposed 
conclusions of law, after the hearing.



Sec.  1326.103  Discovery.

    The Department and any party named in the notice issued pursuant to 
Sec.  1326.90 has the right to conduct discovery (including depositions) 
against opposing parties as provided by the Federal Rules of Civil 
Procedure. There is no fixed rule on priority of discovery. Upon written 
motion, the presiding officer must promptly rule upon any objection to 
discovery action. The presiding officer also has the power to grant a 
protective order or relief to any party against whom discovery is

[[Page 220]]

sought and to restrict or control discovery so as to prevent undue delay 
in the conduct of the hearing. Upon the failure of any party to make 
discovery, the presiding officer may issue any order and impose any 
sanction other than contempt orders authorized by Rule 37 of the Federal 
Rules of Civil Procedure.

[80 FR 44807, July 27, 2015, as amended at 85 FR 72911, Nov. 16, 2020]



Sec.  1326.104  Evidentiary purpose.

    The hearing is directed to receiving factual evidence and expert 
opinion testimony related to the issues in the proceeding. Argument will 
not be received in evidence; rather, it must be presented in statements, 
memoranda, or briefs, as directed by the presiding officer. Brief 
opening statements, which shall be limited to a statement of the party's 
position and what it intends to prove, may be made at hearings.



Sec.  1326.105  Evidence.

    (a) Testimony. Testimony by witnesses at the hearing is given orally 
under oath or affirmation. Witnesses must be available at the hearing 
for cross-examination by all parties.
    (b) Stipulations and exhibits. Two or more parties may agree to 
stipulations of fact. Such stipulations, or any exhibit proposed by any 
party, must be exchanged at the prehearing conference or at a different 
time prior to the hearing if the presiding officer requires it.
    (c) Rules of evidence. Technical rules of evidence do not apply to 
hearings conducted pursuant to this subpart, but rules or principles 
designed to assure production of the most credible evidence available 
and to subject testimony to test by cross-examination are applied where 
reasonably necessary by the presiding officer. A witness may be cross-
examined on any matter material to the proceeding without regard to the 
scope of his or her direct examination. The presiding officer may 
exclude irrelevant, immaterial, or unduly repetitious evidence. All 
documents and other evidence offered or taken for the record is open to 
examination by the parties and opportunity must be given to refute facts 
and arguments advanced on either side of the issues.



Sec.  1326.106  Exclusion from hearing for misconduct.

    Disrespectful, disorderly, or rebellious language or contemptuous 
conduct, refusal to comply with directions, or continued use of dilatory 
tactics by any person at the hearing before a presiding officer shall 
constitute grounds for immediate exclusion of such person from the 
hearing by the presiding officer.



Sec.  1326.107  Unsponsored written material.

    Letters expressing views or urging action and other unsponsored 
written material regarding matters in issue in a hearing is placed in 
the correspondence section of the docket of the proceeding. This 
material is not deemed part of the evidence or record in the hearing.



Sec.  1326.108  Official transcript.

    The Department will designate the official reporter for all 
hearings. The official transcript of testimony taken, together with any 
stipulations, exhibits, briefs, or memoranda of law filed with them is 
filed with the Department. Transcripts of testimony in hearings may be 
obtained from the official reporter by the parties and the public at 
rates not to exceed the maximum rates fixed by the contract between the 
Department and the reporter. Upon notice to all parties, the presiding 
officer may authorize corrections to the transcript which involve 
matters of substance. Transcripts must be taken by stenotype machine and 
not be voice recording devices, unless otherwise agreed by all of the 
parties and the presiding officer.



Sec.  1326.109  Record for decision.

    The transcript of testimony, exhibits, and all papers and requests 
filed in the proceedings, except the correspondence section of the 
docket, including rulings and any recommended or initial decision, 
constitute the exclusive record for decision.

[[Page 221]]

                   Post-Hearing Procedures, Decisions



Sec.  1326.110  Post-hearing briefs.

    The presiding officer must fix the time for filing post-hearing 
briefs. This time may not exceed 30 days after termination of the 
hearing and receipt of the transcript. Briefs may contain proposed 
findings of fact and conclusions of law. If permitted, reply briefs may 
be filed no later than 15 days after filing of the post-hearing briefs.



Sec.  1326.111  Decisions following hearing.

    (a) If the Secretary, or his or her designee, is the presiding 
officer, he or she must issue a decision within 60 days after the time 
for submission of post-hearing briefs has expired.
    (b)(1) If the presiding officer is another person designated for a 
particular hearing or hearings, he or she must, within 30 days after the 
time for submission of post-hearing briefs has expired, certify the 
entire record to the Secretary (or his or her designee) including the 
recommended findings and proposed decision.
    (2) The Secretary, or his or her designee, must serve a copy of the 
recommended findings and proposed decision upon all parties and amici.
    (3) Any party may, within 20 days, file exceptions to the 
recommended findings and proposed decision and supporting brief or 
statement with the Secretary, or his or her designee.
    (4) The Secretary, or his or her designee, must review the 
recommended decision and, within 60 days of its issuance, issue his or 
her own decision.
    (c) If the Secretary, or his or her designee, concludes:
    (1) In the case of a hearing pursuant to sections 124, 127, or 143 
of the Act, that a State plan or the activities of the State's 
Protection and Advocacy System does not comply with Federal 
requirements, he or she shall also specify whether the State's payment 
or allotment for the fiscal year will not be authorized for the State or 
whether, in the exercise of his or her discretion, the payment or 
allotment will be limited to the parts of the State plan or the 
activities of the State's Protection and Advocacy System not affected by 
the noncompliance.
    (2) In the case of a hearing pursuant to section 127 of the Act that 
the State is not complying with the requirements of the State plan, he 
or she also must specify whether the State's payment or allotment will 
be made available to the State or whether, in the exercise of his or her 
discretion, the payment or allotment will be limited to the parts of the 
State plan not affected by such noncompliance. The Secretary, or his or 
her designee, may ask the parties for recommendations or briefs or may 
hold conferences of the parties on these questions.
    (d) The decision of the Secretary, or his or her designee, under 
this section is the final decision of the Secretary and constitutes 
``final agency action'' within the meaning of 5 U.S.C. 704 and the 
``Secretary's action'' within the meaning of section 128 of the Act (42 
U.S.C. 15028). The Secretary's, or his or her designee's, decision must 
be promptly served on all parties and amici.



Sec.  1326.112  Effective date of decision by the Secretary.

    (a) If, in the case of a hearing pursuant to section 124 of the Act, 
the Secretary, or his or her designee, concludes that a State plan does 
not comply with Federal requirements, and the decision provides that the 
payment or allotment will be authorized but limited to parts of the 
State plan not affected by such noncompliance, the decision must specify 
the effective date for the authorization of the payment or allotment.
    (b) In the case of a hearing pursuant to sections 127 or 143 of the 
Act, if the Secretary, or his or her designee, concludes that the State 
is not complying with the requirements of the State plan or if the 
activities of the State's Protection and Advocacy System do not comply 
with Federal requirements, the decision that further payments or 
allotments will not be made to the State, or will be limited to the 
parts of the State plan or activities of the State Protection and 
Advocacy System not affected, must specify the effective date for 
withholding payments or allotments.
    (c) The effective date may not be earlier than the date of the 
decision of the

[[Page 222]]

Secretary, or his or her designee, and may not be later than the first 
day of the next calendar quarter.
    (d) The provision of this section may not be waived pursuant to 
Sec.  1326.84.

[80 FR 44807, July 27, 2015, as amended at 85 FR 72911, Nov. 16, 2020]



PART 1327_DEVELOPMENTAL DISABILITIES PROJECTS OF NATIONAL SIGNIFICANCE--
Table of Contents



    Authority: 42 U.S.C. 15001 et seq.

    Source: 80 FR 44807, July 27, 2015, unless otherwise noted. 
Redesignated at 81 FR 35645, June 3, 2016.



Sec.  1327.1  General requirements.

    (a) All projects funded under this part must be of national 
significance and serve or relate to individuals with developmental 
disabilities to comply with subtitle E of the Act, sections 161-163 (42 
U.S.C. 15081-15083).
    (b) In general, Projects of National Significance (PNS) provide 
technical assistance, collect data, demonstrate exemplary and innovative 
models, disseminate knowledge at the local and national levels, and 
otherwise meet the goals of Projects of National Significance section 
161 (42 U.S.C. 15081).
    (c) Projects of National Significance may engage in one or more of 
the types of activities provided in section 161(2) of the Act.
    (d) In general, eligible applicants for PNS funding are public and 
private non-profit entities, 42 U.S.C. 15082, such as institutions of 
higher learning, State and local governments, and Tribal governments. 
The program announcements will specifically state any further 
eligibility requirements for the priority areas in the fiscal year.
    (e) Faith-based organizations are eligible to apply for PNS funding, 
providing that the faith-based organizations meet the specific 
eligibility criteria contained in the program announcement for the 
fiscal year.



PART 1328_THE NATIONAL NETWORK OF UNIVERSITY CENTERS FOR EXCELLENCE 
IN DEVELOPMENTAL DISABILITIES, EDUCATION, RESEARCH, AND SERVICE--
Table of Contents



Sec.
1328.1 Definitions.
1328.2 Purpose.
1328.3 Core functions.
1328.4 National training initiatives on critical and emerging needs.
1328.5 Applications.
1328.6 Governance and administration.
1328.7 Five-year plan and annual report.

    Authority: 42 U.S.C. 15001 et seq.

    Source: 80 FR 44807, July 27, 2015, unless otherwise noted. 
Redesignated at 81 FR 35645, June 3, 2016.



Sec.  1328.1  Definitions.

    States. For the purpose of this part, ``State'' means each of the 
several States of the United States, the District of Columbia, the 
Commonwealth of Puerto Rico, the United States Virgin Islands, and Guam.



Sec.  1328.2  Purpose.

    (a) The Secretary, or his or her designee awards grants to eligible 
entities designated as University Centers for Excellence in 
Developmental Disabilities Education, Research, and Service (``UCEDDs'', 
or ``Centers'') in each State to pay for the Federal share of the cost 
of the administration and operation of the Centers. Centers shall:
    (1) Provide leadership in, advise Federal, State, and community 
policymakers about, and promote opportunities for individuals with 
developmental disabilities to exercise self-determination, be 
independent, be productive, and be integrated and included in all facets 
of community life.
    (2) Be interdisciplinary education, research, and public service 
units of universities or public not-for-profit entities associated with 
universities that engage in core functions, described in Sec.  1328.3, 
addressing, directly or indirectly, one or more of the areas of 
emphasis, as defined in Sec.  1325.3 of this chapter.

[[Page 223]]

    (b) To conduct National Training Initiatives on Critical and 
Emerging Needs as described in Sec.  1328.4.

[80 FR 44807, July 27, 2015, as amended at 81 FR 35647, June 3, 2016; 85 
FR 72911, Nov. 16, 2020]



Sec.  1328.3  Core functions.

    The Centers described in Sec.  1328.2 must engage in the core 
functions referred to in this section, which shall include:
    (a) Provision of interdisciplinary pre-service preparation and 
continuing education of students and fellows, which may include the 
preparation and continuing education of leadership, direct service, 
clinical, or other personnel to strengthen and increase the capacity of 
States and communities to achieve the purpose of the DD Act of 2000.
    (b) Provision of community services:
    (1) That provide training or technical assistance for individuals 
with developmental disabilities, their families, professionals, 
paraprofessionals, policy-makers, students, and other members of the 
community; and
    (2) That may provide services, supports, and assistance for the 
persons listed in paragraph (b)(1) of this section through demonstration 
and model activities.
    (c) Conduct of research, which may include basic or applied 
research, evaluation, and the analysis of public policy in areas that 
affect or could affect, either positively or negatively, individuals 
with developmental disabilities and their families.
    (d) Dissemination of information related to activities undertaken to 
address the purpose of the DD Act of 2000, especially dissemination of 
information that demonstrates that the network authorized under Subtitle 
D of the Act is a national and international resource that includes 
specific substantive areas of expertise that may be accessed and applied 
in diverse settings and circumstances.

[80 FR 44807, July 27, 2015, as amended at 81 FR 35647, June 3, 2016; 85 
FR 72911, Nov. 16, 2020]



Sec.  1328.4  National training initiatives on critical and emerging needs.

    (a) Supplemental grant funds for National Training Initiatives 
(NTIs) on critical and emerging needs may be reserved when each Center 
described in section 152 of the DD Act has received a grant award of at 
least $500,000, adjusted for inflation.
    (b) The grants shall be awarded to Centers to pay for the Federal 
share of the cost of training initiatives related to the unmet needs of 
individuals with developmental disabilities and their families.
    (c) The grants shall be awarded on a competitive basis, and for 
periods of not more than 5 years.



Sec.  1328.5  Applications.

    (a) To be eligible to receive a grant under Sec.  1388.2 for a 
Center, an entity shall submit to the Secretary, or his or her designee, 
an application at such time, in such manner, and containing such 
information, as the Secretary, or his or her designee, may require for 
approval.
    (b) Each application shall describe a five-year plan that must 
include:
    (1) Projected goal(s) related to one or more areas of emphasis 
described in Sec.  1325.3 of this chapter for each of the core 
functions.
    (2) Measures of progress.
    (c) The application shall contain or be supported by reasonable 
assurances that the entity designated as the Center will:
    (1) Meet the measures of progress;
    (2) Address the projected goals, and carry out goal-related 
activities, based on data driven strategic planning and in a manner 
consistent with the objectives of subtitle D of the Act, that:
    (i) Are developed in collaboration with the Consumer Advisory 
Committee established pursuant to paragraph (c)(5) of this section;
    (ii) Are consistent with, and to the extent feasible complement and 
further, the Council goals contained in the State plan submitted under 
section 124 of the DD Act of 2000 and the goals of the Protection and 
Advocacy System established under section 143 of the DD Act of 2000; and
    (iii) Will be reviewed and revised annually as necessary to address 
emerging trends and needs.
    (3) Use the funds made available through the grant to supplement, 
and

[[Page 224]]

not supplant, the funds that would otherwise be made available for 
activities described in Sec.  1328.2(a)(1) and (2).
    (4) Protect, consistent with the policy specified in section 101(c) 
of the DD Act of 2000 the legal and human rights of all individuals with 
developmental disabilities (especially those individuals under State 
guardianship who are involved in activities carried out under programs 
assisted under subtitle D of the Act).
    (5) Establish a Consumer Advisory Committee:
    (i) Of which a majority of the members shall be individuals with 
developmental disabilities and family members of such individuals;
    (ii) That is comprised of:
    (A) Individuals with developmental disabilities and related 
disabilities;
    (B) Family members of individuals with developmental disabilities;
    (C) A representative of the State Protection and Advocacy System;
    (D) A representative of the State Council on Developmental 
Disabilities;
    (E) A representative of a self-advocacy organization described in 
section 124(c)(4)(A)(ii)(I) of the DD Act of 2000 (42 U.S.C. 
15024(c)(4)(A)(ii)(I)); and
    (F) Representatives of organizations that may include parent 
training and information centers assisted under section 671or 672 of the 
Individuals with Disabilities Education Act (20 U.S.C. 1471, 1472), 
entities carrying out activities authorized under section 104 or 105 of 
the Assistive Technology Act of 1998 (29 U.S.C. 3003, 3004), relevant 
State agencies, and other community groups concerned with the welfare of 
individuals with developmental disabilities and their families.
    (iii) That reflects the racial and ethnic diversity of the State;
    (iv) That shall:
    (A) Consult with the Director of the Center regarding the 
development of the five-year plan;
    (B) Participate in an annual review of, and comment on, the progress 
of the Center in meeting the projected goals contained in the plan;
    (C) Make recommendations to the Director of the Center regarding any 
proposed revisions of the plan that might be necessary; and
    (v) Meet as often as necessary to carry out the role of the 
committee, but at a minimum twice during each grant year.
    (6) To the extent possible, utilize the infrastructure and resources 
obtained through funds made available under the grant to leverage 
additional public and private funds to successfully achieve the 
projected goals developed in the five-year plan;
    (7) Have a director with appropriate academic credentials, 
demonstrated leadership, expertise regarding developmental disabilities, 
significant experience in managing grants and contracts, and the ability 
to leverage public and private funds; and
    (i) Allocate adequate staff time to carry out activities related to 
each of the core functions described in Sec.  1328.3.
    (ii) [Reserved]
    (8) Educate, and disseminate information related to the purpose of 
the DD Act of 2000 to the legislature of the State in which the Center 
is located, and to Members of Congress from such State.
    (d) All applications submitted under this section shall be subject 
to technical and qualitative review by peer review groups as described 
under paragraph (d)(1) of this section.
    (1) Each peer review group shall include such individuals with 
disabilities and parents, guardians, or advocates of or for individuals 
with developmental disabilities, as are necessary to carry out this 
section.
    (2) [Reserved]
    (e)(1) The Federal share of the cost of administration or operation 
of a Center, or the cost of carrying out a training initiative, 
supported by a grant made under subtitle D of the Act may not be more 
than 75 percent of the necessary cost of such project, as determined by 
the Secretary, or his or her designee.
    (2) In the case of a project whose activities or products target 
individuals with developmental disabilities who live in an urban or 
rural poverty area, as determined by the Secretary, or his or her 
designee, the Federal share of the cost of the project may not be more 
than 90 percent of the necessary costs

[[Page 225]]

of the project, as determined by the Secretary, or his or her designee.

[80 FR 44807, July 27, 2015, as amended at 81 FR 35647, June 3, 2016; 85 
FR 72911, Nov. 16, 2020]

    Editorial Note: At 85 FR 72911, Nov. 16, 2020, Sec.  1328.5 was 
amended in part by removing the reference ``1388.2'' and adding in its 
place ``45 CFR 1328.2''; however, the amendment could not be 
incorporated due to inaccurate amendatory instruction.



Sec.  1328.6  Governance and administration.

    (a) The UCEDD must be associated with, or an integral part of, a 
university and promote the independence, productivity, integration, and 
inclusion of individuals with developmental disabilities and their 
families.
    (b) The UCEDD must have a written agreement or charter with the 
university, or affiliated university that specifies the UCEDD 
designation as an official university component, the relationships 
between the UCEDD and other university components, the university 
commitment to the UCEDD, and the UCEDD commitment to the university.
    (c) Within the university, the UCEDD must maintain the autonomy and 
organizational structure required to carry out the UCEDD mission and 
provide for the mandated activities.
    (d) The UCEDD Director must report directly to, or be, a University 
Administrator who will represent the interests of the UCEDD within the 
University.
    (e) The University must demonstrate its support for the UCEDD 
through the commitment of financial and other resources.
    (f) UCEDD senior professional staff, including the UCEDD Director, 
Associate Director, Training Director, and Research Coordinator, must 
hold faculty appointments in appropriate academic departments of the 
host or an affiliated university, consistent with university policy. 
UCEDD senior professional staff must contribute to the university by 
participation on university committees, collaboration with other 
university departments, and other university community activities.
    (g) UCEDD faculty and staff must represent the broad range of 
disciplines and backgrounds necessary to implement the full inclusion of 
individuals with developmental disabilities in all aspects of society, 
consonant with the spirit of the Americans with Disabilities Act (ADA).
    (h) The management practices of the UCEDD, as well as the 
organizational structure, must promote the role of the UCEDD as a bridge 
between the University and the community. The UCEDD must actively 
participate in community networks and include a range of collaborating 
partners.
    (i) The UCEDD's Consumer Advisory Committee must meet regularly. The 
membership of the Consumer Advisory Committee must reflect the racial 
and ethnic diversity of the State or community in which the UCEDD is 
located. The deliberations of the Consumer Advisory Committee must be 
reflected in UCEDD policies and programs.
    (j) The UCEDD must maintain collaborative relationships with the 
SCDD and P&A. In addition, the UCEDD must be a permanent member of the 
SCDD and regularly participate in Council meetings and activities, as 
prescribed by the Act.
    (k) The UCEDD must maintain collaborative relationships and be an 
active participant with the UCEDD network and individual organizations.
    (l) The UCEDD must demonstrate the ability to leverage additional 
resources.
    (m) The university must demonstrate that the UCEDD have adequate 
space to carry out the mandated activities.
    (n) The UCEDD physical facility and all program initiatives 
conducted by the UCEDD must be accessible to individuals with 
disabilities as provided for by section 504 of the Rehabilitation Act 
and Titles II and III of the Americans with Disabilities Act.
    (o) The UCEDD must integrate the mandated core functions into its 
activities and
    programs and must have a written plan for each core function area.
    (p) The UCEDD must have in place a long range planning capability to 
enable it to respond to emergent and future developments in the field.
    (q) The UCEDD must utilize state-of-the-art methods, including the 
active participation of individuals, families

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and others of UCEDD programs and services to evaluate programs. The 
UCEDD must refine and strengthen its programs based on evaluation 
findings.
    (r) The UCEDD Director must demonstrate commitment to the field of 
developmental disabilities, leadership, and vision in carrying out the 
mission of the UCEDD.
    (s) The UCEDD must meet the ``Employment of Individuals with 
Disabilities'' requirements as described in section 107 of the Act.



Sec.  1328.7  Five-year plan and annual report.

    (a) As required by section 154(a)(2) of the DD Act of 2000 (42 
U.S.C. 15064), the application for core funding for a UCEDD shall 
describe a five-year plan, including a projected goal or goals related 
to one or more areas of emphasis for each of the core functions in 
section 153(a)(2) of the DD Act of 2000 (42 U.S.C.15063).
    (1) For each area of emphasis under which a goal has been 
identified, the UCEDD must state in its application the measures of 
progress with the requirements of the law and applicable regulation, in 
accordance with current practice.
    (2) If changes are made to the measures of progress established for 
a year, the five-year plan must be amended to reflect those changes and 
approved by AIDD upon review.
    (3) By July 30 of each year, a UCEDD shall submit an Annual Report, 
using the system established or funded by AIDD. In order to be accepted 
by AIDD, an Annual Report must meet the requirements of section 154(e) 
of the Act (42 U.S.C. 15064) and, the applicable regulations, and 
include the information necessary for the Secretary, or his or her 
designee, to comply with section 105(1), (2), and (3) of the Act (42 
U.S.C. 15005) and any other information requested by AIDD. The Report 
shall include information on progress made in achieving the UCEDD's 
goals for the previous year, including:
    (i) The extent to which the goals were achieved;
    (ii) A description of the strategies that contributed to achieving 
the goals;
    (iii) The extent to which the goals were not achieved;
    (iv) A detailed description of why goals were not met; and
    (v) An accounting of the manner in which funds paid to the UCEDD for 
a fiscal year were expended.
    (4) The Report also must include information on proposed revisions 
to the goals and a description of successful efforts to leverage funds, 
other than funds under the Act, to pursue goals consistent with the 
UCEDD program.
    (5) Each UCEDD must include in its Annual Report information on its 
achievement of the measures of progress.
    (b) [Reserved]



PART 1329_STATE INDEPENDENT LIVING SERVICES 
AND CENTERS FOR INDEPENDENT LIVING--Table of Contents



                      Subpart A_General Provisions

Sec.
1329.1 Programs covered.
1329.2 Purpose.
1329.3 Applicability of other regulations.
1329.4 Definitions.
1329.5 Indicators of minimum compliance.
1329.6 Reporting.
1329.7 Enforcement and appeals procedures.

                  Subpart B_Independent Living Services

1329.10 Authorized use of funds for Independent Living Services.
1329.11 DSE eligibility and application.
1329.12 Role of the designated State entity.
1329.13 Allotment of Federal funds for State independent living (IL) 
          services.
1329.14 Establishment of SILC.
1329.15 Duties of the SILC.
1329.16 Authorities of the SILC.
1329.17 General requirements for a State plan.

            Subpart C_Centers for Independent Living Program

1329.20 Centers for Independent Living (CIL) program.
1329.21 Continuation awards to entities eligible for assistance under 
          the CIL program.
1329.22 Competitive awards to new Centers for Independent Living.
1329.23 Compliance reviews.
1329.24 Training and technical assistance to Centers for Independent 
          Living.

    Authority: 29 U.S.C. 709; 42 U.S.C. 3515e.

[[Page 227]]


    Source: 81 FR 74694, Oct. 27, 2016, unless otherwise noted.



                      Subpart A_General Provisions



Sec.  1329.1  Programs covered.

    This part includes general requirements applicable to the conduct of 
the following programs authorized under title VII, chapter 1 of the 
Rehabilitation Act of 1973, as amended:
    (a) Independent Living Services (ILS), title VII, chapter 1, part B 
(29 U.S.C. 796e to 796e-3).
    (b) The Centers for Independent Living (CIL), title VII, chapter 1, 
part C (29 U.S.C. 796f to 796f-6).



Sec.  1329.2  Purpose.

    The purpose of title VII of the Act is to promote a philosophy of 
independent living (IL), including a philosophy of consumer control, 
peer support, self-help, self-determination, equal access, and 
individual and system advocacy, in order to maximize the leadership, 
empowerment, independence, and productivity of individuals with 
disabilities, and to promote the integration and full inclusion of 
individuals with disabilities into the mainstream of American society 
by:
    (a) Providing financial assistance to States for providing, 
expanding, and improving the provision of IL services;
    (b) Providing financial assistance to develop and support statewide 
networks of Centers for Independent Living (Centers or CILs);
    (c) Providing financial assistance to States, with the goal of 
improving the independence of individuals with disabilities, for 
improving working relationships among--
    (1) State Independent Living Services;
    (2) Centers for Independent Living;
    (3) Statewide Independent Living Councils (SILCs or Councils) 
established under section 705 of the Act (29 U.S.C. 796d);
    (4) State vocational rehabilitation (VR) programs receiving 
assistance under Title 1 of the Act (29 U.S.C. 720 et seq.);
    (5) State programs of supported employment services receiving 
assistance under Title VI of the Act (29 U.S.C. 795g et seq.);
    (6) Client assistance programs (CAPs) receiving assistance under 
section 112 of the Act (29 U.S.C. 732);
    (7) Programs funded under other titles of the Act;
    (8) Programs funded under other Federal laws; and
    (9) Programs funded through non-Federal sources with the goal of 
improving the independence of individuals with disabilities.



Sec.  1329.3  Applicability of other regulations.

    Several other regulations apply to all activities under this part. 
These include but are not limited to:
    (a) 45 CFR part 16--Procedures of the Departmental Grant Appeals 
Board.
    (b) 45 CFR part 46--Protection of Human Subjects.
    (c) 45 CFR part 75--Uniform Administrative Requirements, Cost 
Principles, and Audit Requirements for HHS Awards.
    (d) 45 CFR part 80--Nondiscrimination under Programs Receiving 
Federal Assistance through the Department of Health and Human Services--
Effectuation of title VI of the Civil Rights Act of 1964.
    (e) 45 CFR part 81--Practice and Procedure for Hearings under Part 
80 of this Title.
    (f) 45 CFR part 84--Nondiscrimination on the Basis of Handicap in 
Programs Activities Receiving Federal Financial Assistance.
    (g) 45 CFR part 86--Nondiscrimination on the Basis of Sex in 
Education Programs or Activities Receiving Federal Financial Assistance.
    (h) 45 CFR part 91--Nondiscrimination on the Basis of Age in 
Programs or Activities Receiving Federal Financial Assistance from HHS.
    (i) 45 CFR part 93--New Restrictions on Lobbying.
    (j) 2 CFR part 376--Nonprocurement Debarment and Suspension.
    (k) 2 CFR part 382--Requirements for Drug-Free Workplace (Financial 
Assistance).



Sec.  1329.4  Definitions.

    For the purposes of this part, the following definitions apply:
    Act means the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.), as 
amended.

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Part B refers to part B of chapter 1 of title VII of the Act (29 U.S.C. 
796e to 796e-3). Part C refers to part C of chapter 1 of title VII, of 
the Act (29 U.S.C. 796f to 796f-6).
    Administrative support services means services and supports provided 
by the designated State entity under Part B, and to Part C CILs 
administered by the State under section 723 of the Act in support of the 
goals, objectives and related activities under an approved State Plan 
for Independent Living (SPIL). Such support includes any costs 
associated with contracts and subgrants including fiscal and 
programmatic oversight, among other services.
    Administrator means the Administrator of the Administration for 
Community Living (ACL) of the Department of Health and Human Services.
    Advocacy means pleading an individual's cause or speaking or writing 
in support of an individual. To the extent permitted by State law or the 
rules of the agency before which an individual is appearing, a non-
lawyer may engage in advocacy on behalf of another individual. Advocacy 
may--
    (1) Involve representing an individual--
    (i) Before private entities or organizations, government agencies 
(whether State, local, or Federal), or in a court of law (whether State 
or Federal); or
    (ii) In negotiations or mediation, in formal or informal 
administrative proceedings before government agencies (whether State, 
local, or Federal), or in legal proceedings in a court of law; and
    (2) Be on behalf of--
    (i) A single individual, in which case it is individual advocacy;
    (ii) A group or class of individuals, in which case it is systems 
advocacy; or
    (iii) Oneself, in which case it is self advocacy.
    Attendant care means a personal assistance service provided to an 
individual with significant disabilities in performing a variety of 
tasks required to meet essential personal needs in areas such as 
bathing, communicating, cooking, dressing, eating, homemaking, 
toileting, and transportation.
    Center for independent living (``Center'') means a consumer-
controlled, community-based, cross-disability, nonresidential, private 
nonprofit agency for individuals with significant disabilities 
(regardless of age or income) that--
    (1) Is designed and operated within a local community by individuals 
with disabilities;
    (2) Provides an array of IL services as defined in section 7(18) of 
the Act, including, at a minimum, independent living core services as 
defined in this section; and
    (3) Complies with the standards set out in Section 725(b) and 
provides and complies with the assurances in section 725(c) of the Act 
and Sec.  1329.5.
    Completed their secondary education means, with respect to the 
Independent Living Core Services that facilitate the transition of youth 
who are individuals with significant disabilities in section 
7(17)(e)(iii) of the Act, that an eligible youth has received a diploma; 
has received a certificate of completion for high school or other 
equivalent document marking the completion of participation in high 
school; or has exceeded the age of eligibility for services under IDEA.
    Consumer control means, with respect to a Center or eligible agency, 
that the Center or eligible agency vests power and authority in 
individuals with disabilities, including individuals who are or have 
been recipients of IL services, in terms of the management, staffing, 
decision making, operation, and provision of services. Consumer control, 
with respect to an individual, means that the individual with a 
disability asserts control over his or her personal life choices, and in 
addition, has control over his or her independent living plan (ILP), 
making informed choices about content, goals and implementation.
    Cross-disability means, with respect to services provided by a 
Center, that a Center provides services to individuals with all 
different types of significant disabilities, including individuals with 
significant disabilities who are members of unserved or underserved 
populations by programs under Title VII. Eligibility for services shall 
be determined by the Center, and shall not be based on the presence of 
any one or more specific significant disabilities.

[[Page 229]]

    Designated State entity (DSE) is the State agency designated in the 
State Plan for Independent Living (SPIL) that acts on behalf of the 
State to provide the functions described in title VII, chapter 1 of the 
Act.
    Eligible agency means a consumer-controlled, community-based, cross-
disability, nonresidential, private, nonprofit agency.
    Independent living core services mean, for purposes of services that 
are supported under the ILS or CIL programs--
    (1) Information and referral services;
    (2) Independent Living skills training;
    (3) Peer counseling, including cross-disability peer counseling;
    (4) Individual and systems advocacy;
    (5) Services that:
    (i) Facilitate the transition of individuals with significant 
disabilities from nursing homes and other institutions to home and 
community-based residences, with the requisite supports and services. 
This process may include providing services and supports that a consumer 
identifies are needed to move that person from an institutional setting 
to community based setting, including systems advocacy required for the 
individual to move to a home of his or her choosing;
    (ii) Provide assistance to individuals with significant disabilities 
who are at risk of entering institutions so that the individuals may 
remain in the community. A determination of who is at risk of entering 
an institution should include self-identification by the individual as 
part of the intake or goal-setting process; and
    (iii) Facilitate the transition of youth who are individuals with 
significant disabilities, who were eligible for individualized education 
programs under section 614(d) of the Individuals with Disabilities 
Education Act (20 U.S.C. 1414(d)), and who have completed their 
secondary education or otherwise left school, to postsecondary life. 
Individuals who have reached the age of 18 and are still receiving 
services in accordance with an Individualized Education Program (IEP) 
under IDEA have not ``completed their secondary education.''
    Independent living service includes the independent living core 
services and such other services as described in section 7(18) of the 
Act.
    Individual with a disability means an individual who--
    (1) Has a physical or mental impairment that substantially limits 
one or more major life activities of such individual;
    (2) Has a record of such an impairment; or
    (3) Is regarded as having such an impairment, as described in 
section 3(3) of the Americans with Disabilities Act of 1990 (42 U.S.C. 
12102(3)).
    Individual with a significant disability means an individual with a 
severe physical or mental impairment whose ability to function 
independently in the family or community or whose ability to obtain, 
maintain, or advance in employment is substantially limited and for whom 
the delivery of independent living services will improve the ability to 
function, continue functioning, or move toward functioning independently 
in the family or community or to continue in employment, respectively.
    Majority means more than 50 percent.
    Minority group means American Indian, Alaskan Native, Asian 
American, Black or African American (not of Hispanic origin), Hispanic 
or Latino (including persons of Mexican, Puerto Rican, Cuban, and 
Central or South American origin), and Native Hawaiian or other Pacific 
Islander.
    Nonresidential means, with respect to a Center, that the Center does 
not operate or manage housing or shelter for individuals as an IL 
service on either a temporary or long-term basis unless the housing or 
shelter is--
    (1) Incidental to the overall operation of the Center;
    (2) Necessary so that the individual may receive an IL service; and
    (3) Limited to a period not to exceed eight weeks during any six-
month period.
    Peer relationships mean relationships involving mutual support and 
assistance among individuals with significant disabilities who are 
actively pursuing IL goals.
    Peer role models mean individuals with significant disabilities 
whose

[[Page 230]]

achievements can serve as a positive example for other individuals with 
significant disabilities.
    Personal assistance services mean a range of services, paid or 
unpaid, provided by one or more persons, designed to assist an 
individual with a disability to perform daily living activities that the 
individual would typically perform if the individual did not have a 
disability. These services must be designed to increase the individual's 
control in life and ability to perform everyday activities and include 
but are not limited to: Getting up and ready for work or going out into 
the community (including bathing and dressing), cooking, cleaning or 
running errands, engaging in social relationships including parenting.
    Service provider means a Center for Independent Living that receives 
financial assistance under Part B or C of chapter 1 of title VII of the 
Act, or any other entity or individual that provides IL services under a 
grant or contract from the DSE pursuant to Section 704(f) of the Act. A 
designated State entity (DSE) may directly provide IL services to 
individuals with significant disabilities only as specifically 
authorized in the SPIL.
    State includes, in addition to each of the several States of the 
United States, the District of Columbia, the Commonwealth of Puerto 
Rico, the United States Virgin Islands, Guam, American Samoa, and the 
Commonwealth of the Northern Mariana Islands.
    State plan means the State Plan for Independent Living (SPIL) 
required under Section 704 of the Act.
    Unserved and underserved groups or populations include populations 
such as individuals from racial and ethnic minority backgrounds, 
disadvantaged individuals, individuals with limited English proficiency, 
and individuals from underserved geographic areas (rural or urban).
    Youth with a significant disability means an individual with a 
significant disability who--
    (1) Is not younger than 14 years of age; and
    (2) Is not older than 24 years of age.



Sec.  1329.5  Indicators of minimum compliance.

    To be eligible to receive funds under this part, a Center must 
comply with the standards in section 725(b) and assurances in section 
725(c) of the Act, with the indicators of minimum compliance, and the 
requirements contained in the terms and conditions of the grant award.



Sec.  1329.6  Reporting.

    (a) A Center must submit a performance report in a manner and at a 
time described by the Administrator, consistent with section 
704(m)(4)(D) of the Act, 29 U.S.C. 796c(m)(4)(D).
    (b) The DSE must submit a report in a manner and at a time described 
by the Administrator, consistent with section 704(c)(4) of the Act, 29 
U.S.C. 796c(c)(4).
    (c) The Administrator may require such other reports as deemed 
necessary to carry out the responsibilities set forth in section 706 of 
the Act, 29 U.S.C. 796d-1.



Sec.  1329.7  Enforcement and appeals procedures.

    (a) Process for Centers for Independent Living. (1) If the Director 
of the Independent Living Administration (Director) determines that, as 
the result of the Onsite Compliance Review process defined in section 
706(c)(2), or other review activities, any Center receiving funds under 
this part, other than a Center that is provided Part C funding by the 
State under section 723 of the Act, is not in compliance with the 
standards and assurances in section 725 (b) and (c) of the Act and of 
this part, the Director must provide notice to the Center pursuant to 
guidance determined by the Administrator.
    (2) The Director may offer technical assistance to the Center to 
develop a corrective action plan or to take such other steps as are 
necessary to come into compliance with the standards and assurances.
    (3) The Center may request a preliminary appeal to the Director in a 
form and manner determined by the Administrator. The Director shall 
review the appeal request and provide written notice of the 
determination within a timely manner.

[[Page 231]]

    (4) Where there is a determination that falls within 45 CFR part 16, 
appendix A, C.a.(1)-(4), the Center may appeal an unfavorable decision 
by the Director to the Administrator within a time and manner 
established by the Administrator. The Administrator shall review the 
appeal request and provide written notice of the determination within a 
timely manner.
    (5) The Administrator may take steps to enforce a corrective action 
plan or to terminate funding if the Administrator determines that the 
Center remains out of compliance.
    (6) Written notice of the determination by the Administrator shall 
constitute a final determination for purposes of 45 CFR part 16. A 
Center that receives such notice of a determination that falls within 45 
CFR part 16, appendix A, C.a.(1)-(4), may appeal to the Departmental 
Appeals Board pursuant to the provisions of 45 CFR part 16.
    (7) A Center that is administered by the State under Section 723 of 
the Act must first exhaust any State process before going through the 
process described in paragraphs (a)(1) through (6) of this section.
    (b) Process for States. (1) If the Director of the Independent 
Living Administration determines that a State is out of compliance with 
sections 704, 705, 713 or other pertinent sections of the Act, the 
Director must provide notice to the State pursuant to guidance 
determined by the Administrator.
    (2) The Director may offer technical assistance to the State to 
develop a corrective action plan or to take such other steps as are 
necessary to ensure that the State comes in to compliance.
    (3) Where there is a determination that falls within 45 CFR part 16, 
appendix A, C.a.(1)-(4), the State may seek an appeal consistent with 
the steps set forth in paragraphs (a)(3) and (4) of this section.
    (4) The Administrator may take steps to enforce statutory or 
regulatory requirements or to terminate funding if the Administrator 
determines that the State remains out of compliance.
    (5) Written notice of the determination by the Administrator shall 
constitute a final determination for purposes of 45 CFR part 16 with 
regard to the types of determinations set forth in 45 CFR part 16, 
appendix A, C.a.(1)-(4). A State that receives such notice may appeal to 
the Departmental Appeals Board pursuant to the provisions of 45 CFR part 
16.



                  Subpart B_Independent Living Services



Sec.  1329.10  Authorized use of funds for Independent Living Services.

    (a) The State:
    (1) May use funds received under this part to support the SILC 
resource plan described in section 705(e) of the Act but may not use 
more than 30 percent of the funds unless an approved SPIL so specifies 
pursuant to Sec.  1329.15(c);
    (2) May retain funds under section 704(c)(5) of the Act; and
    (3) Shall distribute the remainder of the funds received under this 
part in a manner consistent with the approved State plan for the 
activities described in paragraph (b) of this section.
    (b) The State may use the remainder of the funds described in 
paragraph (a)(3) of this section to--
    (1) Provide to individuals with significant disabilities the 
independent living (IL) services required by section 704(e) of the Act, 
particularly those in unserved areas of the State;
    (2) Demonstrate ways to expand and improve IL services;
    (3) Support the operation of Centers for Independent Living 
(Centers) that are in compliance with the standards and assurances in 
section 725 (b) and (c) of the Act;
    (4) Support activities to increase the capacities of public or 
nonprofit agencies and organizations and other entities to develop 
comprehensive approaches or systems for providing IL services;
    (5) Conduct studies and analyses, gather information, develop model 
policies and procedures, and present information, approaches, 
strategies, findings, conclusions, and recommendations to Federal, 
State, and local policy makers in order to enhance IL services for 
individuals with significant disabilities;
    (6) Train individuals with disabilities and individuals providing 
services to individuals with disabilities, and other

[[Page 232]]

persons regarding the IL philosophy; and
    (7) Provide outreach to populations that are unserved or underserved 
by programs under title VII of the Act, including minority groups and 
urban and rural populations.



Sec.  1329.11  DSE eligibility and application.

    (a) Any designated State entity (DSE) identified by the State and 
included in the signed SPIL pursuant to section 704(c) is eligible to 
apply for assistance under this part in accordance with section 704 of 
the Act, 29 U.S.C. 796c.
    (b) To receive financial assistance under Parts B and C of chapter 1 
of title VII, a State shall submit to the Administrator and obtain 
approval of a State plan that meets the requirements of section 704 of 
the Act, 29 U.S.C. 796c.
    (c) Allotments to states are determined in accordance with section 
711 of the Act, 29 U.S.C. 796e.



Sec.  1329.12  Role of the designated State entity.

    (a) A DSE that applies for and receives assistance must:
    (1) Receive, account for, and disburse funds received by the State 
under Part B and Part C in a State under section 723 of the Act based on 
the State plan;
    (2) Provide administrative support services for a program under Part 
B, as directed by the approved State plan, and for CILs under Part C 
when administered by the State under section 723 of the Act, 29 U.S.C. 
796f-2;
    (3) Keep such records and afford such access to such records as the 
Administrator finds to be necessary with respect to the programs;
    (4) Submit such additional information or provide such assurances as 
the Administrator may require with respect to the programs; and
    (5) Retain not more than 5 percent of the funds received by the 
State for any fiscal year under Part B, for the performance of the 
services outlined in paragraphs (a)(1) through (4) of this section. For 
purposes of these regulations, the 5 percent cap on funds for 
administrative expenses applies only to the Part B funds allocated to 
the State and to the State's required 10 percent Part B match. It does 
not apply to other program income funds, including, but not limited to, 
payments provided to a State from the Social Security Administration for 
assisting Social Security beneficiaries and recipients to achieve 
employment outcomes, any other federal funds, or to other funds 
allocated by the State for IL purposes.
    (b) The DSE must also carry out its other responsibilities under the 
Act, including, but not limited to:
    (1) Allocating funds for the delivery of IL services under Part B of 
the Act as directed by the SPIL; and
    (2) Allocating the necessary and sufficient resources needed by the 
SILC to fulfill its statutory duties and authorities under section 
705(c), consistent with the approved State Plan.
    (c) Fiscal and accounting requirements: The DSE must adopt fiscal 
control and fund accounting procedures as may be necessary to ensure the 
proper disbursement of and accounting for federal funds provided to 
CILs, SILCs, and/or other services providers under the ILS program. The 
DSE must comply with all applicable federal and State laws and 
regulations, including those in 45 CFR part 75.



Sec.  1329.13  Allotment of Federal funds for State independent living 
IL) services.

    (a) The allotment of Federal funds for State IL services for each 
State is computed in accordance with the requirements of section 
711(a)(1) of the Act.
    (b) Notwithstanding paragraph (a) of this section, the allotment of 
Federal funds for Guam, American Samoa, the United States Virgin 
Islands, and the Commonwealth of the Northern Mariana Islands is 
computed in accordance with section 711(a)(2) of the Act.
    (c) The Administrator shall reserve between 1.8 percent and 2 
percent of appropriated funds to provide, either directly or through 
grants, contracts, or cooperative agreements, training and technical 
assistance to SILCs. Training and technical assistance funds shall be 
administered in accordance with section 711A of the Act.

[[Page 233]]



Sec.  1329.14  Establishment of a SILC.

    (a) To be eligible to receive assistance under this part, each State 
shall establish and maintain a SILC that meets the requirements of 
section 705 of the Act, including composition and appointment of 
members.
    (b) The SILC shall not be established as an entity within a State 
agency, including the DSE. The SILC shall be independent of and 
autonomous from the DSE and all other State agencies.



Sec.  1329.15  Duties of the SILC.

    (a) The duties of the SILC are those set forth in section 705(c), 
(d), and (e) of the Act.
    (1) The SILC shall develop the SPIL in accordance with guidelines 
developed by the Administrator;
    (2) The SILC shall monitor, review and evaluate the implementation 
of the SPIL on a regular basis as determined by the SILC and set forth 
in the SPIL;
    (3) The SILC shall meet regularly, and ensure that such meetings are 
open to the public and sufficient advance notice of such meetings is 
provided;
    (4) The SILC shall submit to the Administrator such periodic reports 
as the Administrator may reasonably request, and keep such records, and 
afford such access to such records, as the Administrator finds necessary 
to verify the information in such reports; and
    (5) The SILC shall, as appropriate, coordinate activities with other 
entities in the State that provide services similar to or complementary 
to independent living services, such as entities that facilitate the 
provision of or provide long-term community-based services and supports.
    (b) In carrying out the duties under this section, the SILC may 
provide contact information for the nearest appropriate CIL. Sharing of 
such information shall not constitute the direct provision of 
independent living services as defined in section 705(c)(3) of the Act.
    (c) The SILC, in conjunction with the DSE, shall prepare a plan for 
the provision of resources, including staff and personnel that are 
necessary and sufficient to carry out the functions of the SILC.
    (1) The resource plan amount shall be commensurate, to the extent 
possible, with the estimated costs related to SILC fulfilment of its 
duties and authorities consistent with the approved State Plan.
    (2) Available resources include: Innovation and Expansion (I&E) 
funds authorized by 29 U.S.C. 721(a)(18); Independent Living Part B 
funds; State matching funds; other public funds (such as Social Security 
reimbursement funds); and private sources.
    (3) In accordance with Sec.  1329.10(a)(1), no more than 30 percent 
of the State's allocation of Part B and Part B State matching funds may 
be used to fund the resource plan, unless the approved SPIL provides 
that more than 30 percent is needed and justifies the greater 
percentage.
    (4) No conditions or requirements may be included in the SILC's 
resource plan that may compromise the independence of the SILC.
    (5) The SILC is responsible for the proper expenditure of funds and 
use of resources that it receives under the resource plan.
    (6) A description of the SILC's resource plan must be included in 
the State plan. The plan should include:
    (i) Staff/personnel;
    (ii) Operating expenses;
    (iii) Council compensation and expenses;
    (iv) Meeting expenses, including public hearing expenses, such as 
meeting space, alternate formats, interpreters, and other 
accommodations;
    (v) Resources to attend and/or secure training for staff and Council 
members; and
    (vi) Other costs as appropriate.
    (d) The SILC shall carry out the activities in paragraph (a), to 
better serve individuals with significant disabilities and help achieve 
the purpose of section 701 of the Act.
    (e) The SILC shall, consistent with State law, supervise and 
evaluate its staff and other personnel as may be necessary to carry out 
its functions under this section.

[[Page 234]]



Sec.  1329.16  Authorities of the SILC.

    (a) The SILC may conduct the following discretionary activities, as 
authorized and described in the approved State Plan:
    (1) Work with Centers for Independent Living to coordinate services 
with public and private entities to improve services provided to 
individuals with disabilities;
    (2) Conduct resource development activities to support the 
activities described in the approved SPIL and/or to support the 
provision of independent living services by Centers for Independent 
Living; and
    (3) Perform such other functions, consistent with the purpose of 
this part and comparable to other functions described in section 705(c) 
of the Act, as the Council determines to be appropriate and authorized 
in the approved SPIL.
    (b) In undertaking the foregoing duties and authorities, the SILC 
shall:
    (1) Coordinate with the CILs in order to avoid conflicting or 
overlapping activities within the CILs' established service areas;
    (2) Not engage in activities that constitute the direct provision of 
IL services to individuals, including the IL core services; and
    (3) Comply with Federal prohibitions against lobbying.



Sec.  1329.17  General requirements for a State plan.

    (a) The State may use funds received under Part B to support the 
Independent Living Services program and to meet its obligations under 
the Act, including the section 704(e) requirements that apply to the 
provision of independent living services. The State plan must stipulate 
that the State will provide IL services, directly and/or through grants 
and contracts, with Federal, State or other funds, and must describe how 
and to whom those funds will be disbursed for this purpose.
    (b) In order to receive financial assistance under this part, a 
State shall submit to the Administrator a State plan for independent 
living.
    (1) The State plan must contain, in the form prescribed by the 
Administrator, the information set forth in section 704 of the Act, 
including designation of an Agency to serve as the designated State 
entity, and such other information requested by the Administrator.
    (2) The State plan must contain the assurances set forth in section 
704(m) of the Act.
    (3) The State plan must be signed in accordance with the provisions 
of this section.
    (4) The State plan must be submitted 90 days before the completion 
date of the proceeding plan, and otherwise in the time frame and manner 
prescribed by the Administrator.
    (5) The State plan must be approved by the Administrator.
    (c) The State plan must cover a period of not more than three years 
and must be amended whenever necessary to reflect any material change in 
State law, organization, policy, or agency operations that affects the 
administration of the State plan.
    (d) The State plan must be jointly--
    (1) Developed by the chairperson of the SILC, and the directors of 
the CILs, after receiving public input from individuals with 
disabilities and other stakeholders throughout the State; and
    (2) Signed by the--
    (i) Chairperson of the SILC, acting on behalf of and at the 
direction of the SILC;
    (ii) The director of the DSE, signifying agreement to execute the 
responsibilities of the DSE identified in section 704(c) of the Act; and
    (iii) Not less than 51 percent of the directors of the CILs in the 
State. For purposes of this provision, if a legal entity that 
constitutes the ``CIL'' has multiple Part C grants considered as 
separate Centers for all other purposes, for SPIL signature purposes, it 
is only considered as one Center. CILs with service areas in more than 
one State that meet the other applicable requirements are eligible to 
participate in SPIL development and sign the SPIL in each of the 
relevant States.
    (e) The State plan must provide for the review and revision of the 
plan, not less than once every three years, to ensure the existence of 
appropriate planning, financial support and coordination, and other 
assistance to meet the requirements of section 704(a) of the Act.

[[Page 235]]

    (f) The public, including people with disabilities and other 
stakeholders throughout the State, must have an opportunity to comment 
on the State plan prior to its submission to the Administrator and on 
any revisions to the approved State plan. Meeting this standard for 
public input from individuals with disabilities requires providing 
reasonable modifications in policies, practices, or procedures; 
effective communication and appropriate auxiliary aids and services for 
individuals with disabilities, which may include the provision of 
qualified interpreters and information in alternate formats, free of 
charge.
    (1) The requirement for public input in this section may be met by 
holding public meetings before a preliminary draft State plan is 
prepared and by providing a preliminary draft State plan for comment 
prior to submission.
    (2) To meet the public input standard of this section, a public 
meeting requires:
    (i) Accessible, appropriate and sufficient notice provided at least 
30 days prior to the public meeting through various media available to 
the general public, such as Web sites, newspapers and public service 
announcements, and through specific contacts with appropriate 
constituency groups.
    (ii) All notices, including notices published on a Web site, and 
other written materials provided at or prior to public meetings must be 
available upon request in accessible formats.
    (g) The State plan must identify those provisions that are State-
imposed requirements. For purposes of this section, a State-imposed 
requirement includes any State law, regulation, rule, or policy relating 
to the DSE's administration or operation of IL programs under Title VII 
of the Act, including any rule or policy implementing any Federal law, 
regulation, or guideline that is beyond what would be required to comply 
with the regulations in this part.
    (h) The State plan must address how the specific requirements in the 
Act and in paragraph (f) of this section will be met.



            Subpart C_Centers for Independent Living Program



Sec.  1329.20  Centers for Independent Living (CIL) program.

    State allotments of Part C, funds shall be based on section 721(c) 
of the Act, and distributed to Centers within the State in accordance 
with the order of priorities in sections 722(e) and 723(e) of the Act.



Sec.  1329.21  Continuation awards to entities eligible for assistance 
under the CIL program.

    (a) In any State in which the Administrator has approved the State 
plan required by section 704 of the Act, an eligible agency funded under 
Part C in fiscal year 2015 may receive a continuation award in FY 2016 
or a succeeding fiscal year if the Center has--
    (1) Complied during the previous project year with the standards and 
assurances in section 725 of the Act and the terms and conditions of its 
grant; and
    (2) Submitted an approvable annual performance report demonstrating 
that the Center meets the indicators of minimum compliance referenced in 
in Sec.  1329.5.
    (b) If an eligible agency administers more than one Part C grant, 
each of the Center grants must meet the requirements of paragraph (a) of 
this section to receive a continuation award.
    (c) A designated State entity (DSE) that operated a Center in 
accordance with section 724(a) of the Act in fiscal year (FY) 2015 is 
eligible to continue receiving assistance under this part in FY 2016 or 
a succeeding fiscal year if, for the fiscal year for which assistance is 
sought--
    (1) No nonprofit private agency submits and obtains approval of an 
acceptable application under section 722 or 723 of the Act to operate a 
Center for that fiscal year before a date specified by the 
Administrator; or
    (2) After funding all applications so submitted and approved, the 
Administrator determines that funds remain available to provide that 
assistance.
    (d) A Center operated by the DSE under section 724(a) of the Act 
must comply with paragraphs (a), (b), and (c) of this section to receive 
continuation

[[Page 236]]

funding, except for the requirement that the Center be a private 
nonprofit agency.
    (e) A designated State entity that administered Part C funds and 
awarded grants directly to Centers within the State under section 723 of 
the Act in fiscal year (FY) 2015 is eligible to continue receiving 
assistance under section 723 in FY 2016 or a succeeding fiscal year if 
the Administrator determines that the amount of State funding earmarked 
by the State to support the general operation of Centers during the 
preceding fiscal year equaled or exceeded the amount of federal funds 
allotted to the State under section 721(c) of the Act for that fiscal 
year.
    (f) A DSE may apply to administer Part C funds under section 723 in 
the time and in the manner that the Administrator may require, 
consistent with section 723(a)(1)(A) of the Act.
    (g) Grants awarded by the DSE under section 723 of the Act are 
subject to the requirements of paragraphs (a) and (b) of this section 
and the order of priorities in section 723(e) of the Act, unless the DSE 
and the SILC jointly agree on another order of priorities.



Sec.  1329.22  Competitive awards to new Centers for Independent Living.

    (a) Subject to the availability of funds and in accordance with the 
order of priorities in section 722(e) of the Act and the State Plan's 
design for the statewide network of Centers, an eligible agency may 
receive Part C funding as a new Center for Independent Living in a 
State, if the eligible agency:
    (1) Submits to the Administrator an application at the time and 
manner required in the funding opportunity announcement (FOA) issued by 
the Administrator which contains the information and meets the selection 
criteria established by the Administrator in accordance with section 
722(d) of the Act;
    (2) Proposes to serve a geographic area that has been designated as 
a priority unserved or underserved in the State Plan for Independent 
Living and that is not served by an existing Part C-funded Center; and
    (3) Is determined by the Administrator to be the most qualified 
applicant to serve the designated priority area consistent with the 
State plan setting forth the design of the State for establishing a 
statewide network of Centers for independent living.
    (b) An existing Part C-funded Center may apply to serve the 
designated unserved or underserved areas if it proposes the 
establishment of a separate and complete Center (except that the 
governing board of the existing center may serve as the governing board 
of the new Center) at a different geographic location, consistent with 
the requirements in the FOA.
    (c) An eligible agency located in a bordering, contiguous State may 
be eligible for a new CIL award if the Administrator determines, based 
on the submitted application, that the agency:
    (1) Is the most qualified applicant meeting the requirements in 
paragraphs (a) and (b) of this section; and
    (2) Has the expertise and resources necessary to serve individuals 
with significant disabilities who reside in the bordering, contiguous 
State, in accordance with the requirements of the Act and these 
regulations.
    (d) If there are insufficient funds under the State's allotment to 
fund a new Center, the Administrator may--
    (1) Use the excess funds in the State to assist existing Centers 
consistent with the State plan; or
    (2) Reallot these funds in accordance with section 721(d) of the 
Act.



Sec.  1329.23  Compliance reviews.

    (a) Centers receiving Part C funding shall be subject to periodic 
reviews, including on-site reviews, in accordance with sections 706(c), 
722(g), and 723(g) of the Act and guidance set forth by the 
Administrator, to verify compliance with the standards and assurances in 
section 725(b) and (c) of the Act and the grant terms and conditions. 
The Administrator shall annually conduct reviews of at least 15 percent 
of the Centers.
    (b) A copy of each review under this section shall be provided, in 
the case of section 723(g), by the director of the DSE to the 
Administrator and to the SILC, and in the case of section 722(g), by the 
Administrator to the SILC and the DSE.

[[Page 237]]



Sec.  1329.24  Training and technical assistance to Centers 
for Independent Living.

    The Administrator shall reserve between 1.8% and 2% of appropriated 
funds to provide training and technical assistance to Centers through 
grants, contracts or cooperative agreements, consistent with section 
721(b) of the Act. The training and technical assistance funds shall be 
administered in accordance with section 721(b) of the Act.



PART 1330_NATIONAL INSTITUTE FOR DISABILITY, INDEPENDENT LIVING, 
AND REHABILITATION RESEARCH--Table of Contents



 Subpart A_Disability, Independent Living, and Rehabilitation Research 
                      Projects and Centers Program

Sec.
1330.1 General.
1330.2 Eligibility for assistance and other regulations and guidance.
1330.3 Definitions.
1330.4 Stages of research.
1330.5 Stages of development.

                   Subpart B_Requirements for Awardees

1330.10 General requirements for awardees.
1330.11 Individuals with disabilities from minority backgrounds.

                     Subpart C_Selection of Awardees

1330.20 Peer review purpose.
1330.21 Peer review process.
1330.22 Composition of peer review panel.
1330.23 Evaluation process.
1330.24 Selection criteria.
1330.25 Additional considerations for field-initiated priorities.

 Subpart D_Disability, Independent Living, and Rehabilitation Research 
                               Fellowships

1330.30 Fellows program.

 Subpart E_Special Projects and Demonstrations for Spinal Cord Injuries

1330.40 Spinal cord injuries program.

    Authority: 29 U.S.C. 709, 3343.

    Source: 81 FR 29159, May 11, 2016, unless otherwise noted.



 Subpart A_Disability, Independent Living, and Rehabilitation Research 
                      Projects and Centers Program



Sec.  1330.1  General.

    (a) The Disability, Independent Living, and Rehabilitation Research 
Projects and Centers Program provides grants to establish and support:
    (1) The following Disability, Independent Living, and Rehabilitation 
Research and Related Projects:
    (i) Disability, Independent Living, and Rehabilitation Research 
Projects;
    (ii) Field-Initiated Projects;
    (iii) Advanced Rehabilitation Research Training Projects; and
    (2) The following Disability, Independent Living, and Rehabilitation 
Research Centers:
    (i) Rehabilitation Research and Training Centers;
    (ii) Rehabilitation Engineering Research Centers.
    (b) The purpose of the Disability, Independent Living, and 
Rehabilitation Research Projects and Centers Program is to plan and 
conduct research, development, demonstration projects, training, 
dissemination, and related activities, including international 
activities, to:
    (1) Develop methods, procedures, and rehabilitation technology, that 
maximize the full inclusion and integration into society, employment, 
education, independent living, family support, and economic and social 
self-sufficiency of individuals with disabilities, especially 
individuals with the most severe disabilities; and
    (2) Improve the effectiveness of services authorized under the 
Rehabilitation Act of 1973, 29 U.S.C. 701 et seq.



Sec.  1330.2  Eligibility for assistance and other regulations and guidance.

    (a) Unless otherwise stated in this part or in a determination by 
the NIDILRR Director, the following entities are eligible for an award 
under this program:
    (1) States.
    (2) Public or private agencies, including for-profit agencies.
    (3) Public or private organizations, including for-profit 
organizations.
    (4) Institutions of higher education.

[[Page 238]]

    (5) Indian tribes and tribal organizations.
    (b) Other sources of regulation which may apply to awards under this 
part include but are not limited to:
    (1) 45 CFR part 16--Procedures of the Departmental Grant Appeals 
Board.
    (2) 45 CFR part 46--Protection of Human Subjects.
    (3) 45 CFR part 75--Uniform Administrative Requirements, Cost 
Principles, and Audit Requirements for HHS Awards.
    (4) 2 CFR parts 376 and 382--Nonprocurement Debarment and Suspension 
and Requirements for Drug-Free Workplace (Financial Assistance).
    (5) 45 CFR part 80--Nondiscrimination under Programs Receiving 
Federal Assistance through the Department of Health and Human Services--
Effectuation of title VI of the Civil Rights Act of 1964.
    (6) 45 CFR part 81--Practice and Procedure for Hearings under part 
80 of this title.
    (7) 45 CFR part 84--Nondiscrimination on the Basis of Handicap in 
Programs or Activities Receiving Federal Financial Assistance.
    (8) 45 CFR part 86--Nondiscrimination on the Basis of Sex in 
Education Programs or Activities Receiving Federal Financial Assistance.
    (9) 45 CFR part 87--Equal Treatment of Faith-Based Organizations.
    (10) 45 CFR part 91--Nondiscrimination on the Basis of Age in 
Programs or Activities Receiving Federal Financial Assistance from HHS.
    (11) 45 CFR part 93--New Restrictions on Lobbying.



Sec.  1330.3  Definitions.

    As used in this part:
    (a) Secretary means the Secretary of the Department of Health and 
Human Services.
    (b) Administrator means the Administrator of the Administration for 
Community Living.
    (c) Director means the Director of the National Institute on 
Disability, Independent Living, and Rehabilitation Research.
    (d) Research is classified on a continuum from basic to applied:
    (1) Basic research is research in which the investigator is 
concerned primarily with gaining new knowledge or understanding of a 
subject without reference to any immediate application or utility.
    (2) Applied research is research in which the investigator is 
primarily interested in developing new knowledge, information, or 
understanding which can be applied to a predetermined rehabilitation 
problem or need.
    (e) Development activities use knowledge and understanding gained 
from research to create materials, devices, systems, or methods 
beneficial to the target population, including design and development of 
prototypes and processes.
    (f) Products encompass models, methods, tools, applications, and 
devices, but are not necessarily limited to these types.



Sec.  1330.4  Stages of research.

    For any Disability, Independent Living, and Rehabilitation Research 
Projects and Centers Program competition, the Department may require in 
the application materials for the competition that the applicant 
identify the stage(s) of research in which it will focus the work of its 
proposed project or center. The four stages of research are:
    (a) Exploration and discovery mean the stage of research that 
generates hypotheses or theories through new and refined analyses of 
data, producing observational findings and creating other sources of 
research-based information. This research stage may include identifying 
or describing the barriers to and facilitators of improved outcomes of 
individuals with disabilities, as well as identifying or describing 
existing practices, programs, or policies that are associated with 
important aspects of the lives of individuals with disabilities. Results 
achieved under this stage of research may inform the development of 
interventions or lead to evaluations of interventions or policies. The 
results of the exploration and discovery stage of research may also be 
used to inform decisions or priorities;
    (b) Intervention development means the stage of research that 
focuses on generating and testing interventions

[[Page 239]]

that have the potential to improve outcomes for individuals with 
disabilities. Intervention development involves determining the active 
components of possible interventions, developing measures that would be 
required to illustrate outcomes, specifying target populations, 
conducting field tests, and assessing the feasibility of conducting a 
well-designed intervention study. Results from this stage of research 
may be used to inform the design of a study to test the efficacy of an 
intervention;
    (c) Intervention efficacy means the stage of research during which a 
project evaluates and tests whether an intervention is feasible, 
practical, and has the potential to yield positive outcomes for 
individuals with disabilities. Efficacy research may assess the strength 
of the relationships between an intervention and outcomes, and may 
identify factors or individual characteristics that affect the 
relationship between the intervention and outcomes. Efficacy research 
can inform decisions about whether there is sufficient evidence to 
support ``scaling-up'' an intervention to other sites and contexts. This 
stage of research may include assessing the training needed for wide-
scale implementation of the intervention, and approaches to evaluation 
of the intervention in real-world applications; and
    (d) Scale-up evaluation means the stage of research during which a 
project analyzes whether an intervention is effective in producing 
improved outcomes for individuals with disabilities when implemented in 
a real-world setting. During this stage of research, a project tests the 
outcomes of an evidence-based intervention in different settings. The 
project examines the challenges to successful replication of the 
intervention, and the circumstances and activities that contribute to 
successful adoption of the intervention in real-world settings. This 
stage of research may also include well-designed studies of an 
intervention that has been widely adopted in practice, but lacks a 
sufficient evidence base to demonstrate its effectiveness.



Sec.  1330.5  Stages of development.

    For any Disability, Independent Living, and Rehabilitation Research 
Projects and Centers Program competition, the Department may require in 
the notice inviting applications for the competition that the applicant 
identify the stage(s) of development in which it will focus the work of 
its proposed project or center. The three stages of development are:
    (a) Proof of concept means the stage of development where key 
technical challenges are resolved. Stage activities may include 
recruiting study participants, verifying product requirements; 
implementing and testing (typically in controlled contexts) key 
concepts, components, or systems, and resolving technical challenges. A 
technology transfer plan is typically developed and transfer partner(s) 
identified; and plan implementation may have started. Stage results 
establish that a product concept is feasible.
    (b) Proof of product means the stage of development where a fully-
integrated and working prototype, meeting critical technical 
requirements is created. Stage activities may include recruiting study 
participants, implementing and iteratively refining the prototype, 
testing the prototype in natural or less-controlled contexts, and 
verifying that all technical requirements are met. A technology transfer 
plan is typically ongoing in collaboration with the transfer partner(s). 
Stage results establish that a product embodiment is realizable.
    (c) Proof of adoption means the stage of development where a product 
is substantially adopted by its target population and used for its 
intended purpose. Stage activities typically include completing product 
refinements; and continued implementation of the technology transfer 
plan in collaboration with the transfer partner(s). Other activities 
include measuring users' awareness of the product, opinion of the 
product, decisions to adopt, use, and retain products; and identifying 
barriers and facilitators impacting product adoption. Stage results 
establish that a product is beneficial.

[[Page 240]]



                   Subpart B_Requirements for Awardees



Sec.  1330.10  General requirements for awardees.

    (a) In carrying out a research activity under this program, an 
awardee must:
    (1) Identify one or more hypotheses or research questions;
    (2) Based on the hypotheses or research question identified, perform 
an intensive systematic study in accordance with its approved 
application directed toward:
    (i) New or full scientific knowledge; or
    (ii) Understanding of the subject or problem being studied.
    (b) In carrying out a development activity under this program, an 
awardee must create, using knowledge and understanding gained from 
research, models, methods, tools, systems, materials, devices, 
applications, or standards that are adopted by and beneficial to the 
target population. Development activities span one or more stages of 
development.
    (c) In carrying out a training activity under this program, an 
awardee shall conduct a planned and systematic sequence of supervised 
instruction that is designed to impart predetermined skills and 
knowledge.
    (d) In carrying out a demonstration activity under this program, an 
awardee shall apply results derived from previous research, testing, or 
practice to determine the effectiveness of a new strategy or approach.
    (e) In carrying out a utilization activity under this program, a 
grantee must relate research findings to practical applications in 
planning, policy making, program administration, and delivery of 
services to individuals with disabilities.
    (f) In carrying out a dissemination activity under this program, a 
grantee must systematically distribute information or knowledge through 
a variety of ways to potential users or beneficiaries.
    (g) In carrying out a technical assistance activity under this 
program, a grantee must provide expertise or information for use in 
problem-solving.



Sec.  1330.11  Individuals with disabilities from minority backgrounds.

    (a) If the director so indicates in the application materials or 
elsewhere, an applicant for assistance under this program must 
demonstrate in its application how it will address, in whole or in part, 
the needs of individuals with disabilities from minority backgrounds.
    (b) The approaches an applicant may take to meet this requirement 
may include one or more of the following:
    (1) Proposing project objectives addressing the needs of individuals 
with disabilities from minority backgrounds.
    (2) Demonstrating that the project will address a problem that is of 
particular significance to individuals with disabilities from minority 
backgrounds.
    (3) Demonstrating that individuals from minority backgrounds will be 
included in study samples in sufficient numbers to generate information 
pertinent to individuals with disabilities from minority backgrounds.
    (4) Drawing study samples and program participant rosters from 
populations or areas that include individuals from minority backgrounds.
    (5) Providing outreach to individuals with disabilities from 
minority backgrounds to ensure that they are aware of rehabilitation 
services, clinical care, or training offered by the project.
    (6) Disseminating materials to or otherwise increasing the access to 
disability information among minority populations.



                     Subpart C_Selection of Awardees



Sec.  1330.20  Peer review purpose.

    The purpose of peer review is to insure that:
    (a) Those activities supported by the National Institute on 
Disability, Independent Living, and Rehabilitation Research (NIDILRR) 
are of the highest scientific, administrative, and technical quality; 
and
    (b) Activity results may be widely applied to appropriate target 
populations and rehabilitation problems.



Sec.  1330.21  Peer review process.

    (a) The Director refers each application for an award governed by 
these

[[Page 241]]

regulations in this part to a peer review panel established by the 
Director.
    (b) Peer review panels review applications on the basis of the 
applicable selection criteria in Sec.  1330.23.



Sec.  1330.22  Composition of peer review panel.

    (a) The Director selects as members of a peer review panel 
scientists and other experts in disability, independent living, 
rehabilitation or related fields who are qualified, on the basis of 
training, knowledge, or experience, to give expert advice on the merit 
of the applications under review.
    (b) The scientific peer review process shall be conducted by 
individuals who are not Department of Health and Human Services 
employees.
    (c) In selecting members to serve on a peer review panel, the 
Director may take into account the following factors:
    (1) The level of formal scientific or technical education completed 
by potential panel members.
    (2) The extent to which potential panel members have engaged in 
scientific, technical, or administrative activities appropriate to the 
category of applications that the panel will consider; the roles of 
potential panel members in those activities; and the quality of those 
activities.
    (3) The recognition received by potential panel members as reflected 
by awards and other honors from scientific and professional agencies and 
organizations outside the Department.
    (4) Whether the panel includes knowledgeable individuals with 
disabilities, or parents, family members, guardians, advocates, or 
authorized representatives of individuals with disabilities.
    (5) Whether the panel includes individuals from diverse populations.



Sec.  1330.23  Evaluation process.

    (a) The Director selects one or more of the selection criteria to 
evaluate an application:
    (1) The Director establishes selection criteria based on statutory 
provisions that apply to the Program which may include, but are not 
limited to:
    (i) Specific statutory selection criteria;
    (ii) Allowable activities;
    (iii) Application content requirements; or
    (iv) Other pre-award and post-award conditions; or
    (2) The Director may use a combination of selection criteria 
established under paragraph (a)(1) of this section and selection 
criteria from Sec.  1330.24 to evaluate a competition.
    (3) For Field-Initiated Projects, the Director does not consider 
Sec.  1330.24(b) (Responsiveness to the Absolute or Competitive 
Priority) in evaluating an application.
    (b) In considering selection criteria in Sec.  1330.24, the Director 
selects one or more of the factors listed in the criteria, but always 
considers the factor in Sec.  1330.24(n) regarding members of groups 
that have traditionally been underrepresented based on race, color, 
national origin, gender, age, or disability.
    (c) The maximum possible score for an application is 100 points.
    (d) In the application package or a notice published in the Federal 
Register, the Director informs applicants of:
    (1) The selection criteria chosen and the maximum possible score for 
each of the selection criteria; and
    (2) The factors selected for considering the selection criteria and 
if points are assigned to each factor, the maximum possible score for 
each factor under each criterion. If no points are assigned to each 
factor, the Director evaluates each factor equally.
    (e) For all instances in which the Director chooses to allow field-
initiated research and development, the selection criteria in Sec.  
1330.25 will apply, including the requirement that the applicant must 
achieve a score of 85 percent or more of maximum possible points.



Sec.  1330.24  Selection criteria.

    In addition to criteria established under Sec.  1330.23(a)(1), the 
Director may select one or more of the following criteria in evaluating 
an application:
    (a) Importance of the problem. In determining the importance of the 
problem, the Director considers one or more of the following factors:
    (1) The extent to which the applicant clearly describes the need and 
target population.

[[Page 242]]

    (2) The extent to which the proposed activities further the purposes 
of the Rehabilitation Act.
    (3) The extent to which the proposed activities address a 
significant need of individuals with disabilities.
    (4) The extent to which the proposed activities address a 
significant need of rehabilitation service providers.
    (5) The extent to which the proposed activities address a 
significant need of those who provide services to individuals with 
disabilities.
    (6) The extent to which the applicant proposes to provide training 
in a rehabilitation discipline or area of study in which there is a 
shortage of qualified researchers, or to a trainee population in which 
there is a need for more qualified researchers.
    (7) The extent to which the proposed project will have beneficial 
impact on the target population.
    (b) Responsiveness to an absolute or competitive priority. In 
determining the application's responsiveness to the application package 
or the absolute or competitive priority published in the Federal 
Register, the Director considers one or more of the following factors:
    (1) The extent to which the applicant addresses all requirements of 
the absolute or competitive priority.
    (2) The extent to which the applicant's proposed activities are 
likely to achieve the purposes of the absolute or competitive priority.
    (c) Design of research activities. In determining the extent to 
which the design is likely to be effective in accomplishing the 
objectives of the project, the Director considers one or more of the 
following factors:
    (1) The extent to which the research activities constitute a 
coherent, sustained approach to research in the field, including a 
substantial addition to the state-of-the-art.
    (2) The extent to which the methodology of each proposed research 
activity is meritorious, including consideration of the extent to which:
    (i) The proposed design includes a comprehensive and informed review 
of the current literature, demonstrating knowledge of the state-of-the-
art;
    (ii) Each research hypothesis or research question, as appropriate, 
is theoretically sound and based on current knowledge;
    (iii) Each sample is drawn from an appropriate, specified population 
and is of sufficient size to address the proposed hypotheses or research 
questions, as appropriate, and to support the proposed data analysis 
methods;
    (iv) The source or sources of the data and the data collection 
methods are appropriate to address the proposed hypotheses or research 
questions and to support the proposed data analysis methods;
    (v) The data analysis methods are appropriate;
    (vi) Implementation of the proposed research design is feasible, 
given the current state of the science and the time and resources 
available;
    (vii) Input of individuals with disabilities and other key 
stakeholders is used to shape the proposed research activities; and
    (viii) The applicant identifies and justifies the stage of research 
being proposed and the research methods associated with the stage.
    (3) The extent to which anticipated research results are likely to 
satisfy the original hypotheses or answer the original research 
questions, as appropriate, and could be used for planning additional 
research, including generation of new hypotheses or research questions, 
where applicable.
    (4) The extent to which the stage of research is identified and 
justified in the description of the research project(s) being proposed.
    (d) Design of development activities. In determining the extent to 
which the project design is likely to be effective in accomplishing 
project objectives, the Director considers one or more of the following 
factors:
    (1) The extent to which the proposed project identifies a 
significant need and a well-defined target population for the new or 
improved product;
    (2) The extent to which the proposed project methodology is 
meritorious, including consideration of the extent to which:
    (i) The proposed project shows awareness of the state-of-the-art for 
current, related products;

[[Page 243]]

    (ii) The proposed project employs appropriate concepts, components, 
or systems to develop the new or improved product;
    (iii) The proposed project employs appropriate samples in tests, 
trials, and other development activities;
    (iv) The proposed project conducts development activities in 
appropriate environment(s);
    (v) Input from individuals with disabilities and other key 
stakeholders is obtained to establish and guide proposed development 
activities; and
    (vi) The applicant identifies and justifies the stage(s) of 
development for the proposed project; and activities associated with 
each stage.
    (3) The new product will be developed and tested in an appropriate 
environment.
    (e) Design of demonstration activities. In determining the extent to 
which the design of demonstration activities is likely to be effective 
in accomplishing the objectives of the project, the Director considers 
one or more of the following factors:
    (1) The extent to which the proposed demonstration activities build 
on previous research, testing, or practices.
    (2) The extent to which the proposed demonstration activities 
include the use of proper methodological tools and theoretically sound 
procedures to determine the effectiveness of the strategy or approach.
    (3) The extent to which the proposed demonstration activities 
include innovative and effective strategies or approaches.
    (4) The extent to which the proposed demonstration activities are 
likely to contribute to current knowledge and practice and be a 
substantial addition to the state-of-the-art.
    (5) The extent to which the proposed demonstration activities can be 
applied and replicated in other settings.
    (f) Design of training activities. In determining the extent to 
which the design is likely to be effective in accomplishing the 
objectives of the project, the Director considers one or more of the 
following factors:
    (1) The extent to which the proposed training materials are likely 
to be effective, including consideration of their quality, clarity, and 
variety.
    (2) The extent to which the proposed training methods are of 
sufficient quality, intensity, and duration.
    (3) The extent to which the proposed training content:
    (i) Covers all of the relevant aspects of the subject matter; and
    (ii) If relevant, is based on new knowledge derived from research 
activities of the proposed project.
    (4) The extent to which the proposed training materials, methods, 
and content are appropriate to the trainees, including consideration of 
the skill level of the trainees and the subject matter of the materials.
    (5) The extent to which the proposed training materials and methods 
are accessible to individuals with disabilities.
    (6) The extent to which the applicant's proposed recruitment program 
is likely to be effective in recruiting highly qualified trainees, 
including those who are individuals with disabilities.
    (7) The extent to which the applicant is able to carry out the 
training activities, either directly or through another entity.
    (8) The extent to which the proposed didactic and classroom training 
programs emphasize scientific methodology and are likely to develop 
highly qualified researchers.
    (9) The extent to which the quality and extent of the academic 
mentorship, guidance, and supervision to be provided to each individual 
trainee are of a high level and are likely to develop highly qualified 
researchers.
    (10) The extent to which the type, extent, and quality of the 
proposed research experience, including the opportunity to participate 
in advanced-level research, are likely to develop highly qualified 
researchers.
    (11) The extent to which the opportunities for collegial and 
collaborative activities, exposure to outstanding scientists in the 
field, and opportunities to participate in the preparation of scholarly 
or scientific publications and presentations are extensive and 
appropriate.
    (g) Design of dissemination activities. In determining the extent to 
which the design is likely to be effective in accomplishing the 
objectives of the

[[Page 244]]

project, the Director considers one or more of the following factors:
    (1) The extent to which the content of the information to be 
disseminated:
    (i) Covers all of the relevant aspects of the subject matter; and
    (ii) If appropriate, is based on new knowledge derived from research 
activities of the project.
    (2) The extent to which the materials to be disseminated are likely 
to be effective and usable, including consideration of their quality, 
clarity, variety, and format.
    (3) The extent to which the methods for dissemination are of 
sufficient quality, intensity, and duration.
    (4) The extent to which the materials and information to be 
disseminated and the methods for dissemination are appropriate to the 
target population, including consideration of the familiarity of the 
target population with the subject matter, format of the information, 
and subject matter.
    (5) The extent to which the information to be disseminated will be 
accessible to individuals with disabilities.
    (h) Design of utilization activities. In determining the extent to 
which the design of utilization activities is likely to be effective in 
accomplishing the objectives of the project, the Director considers one 
or more of the following factors:
    (1) The extent to which the potential new users of the information 
or technology have a practical use for the information and are likely to 
adopt the practices or use the information or technology, including new 
devices.
    (2) The extent to which the utilization strategies are likely to be 
effective.
    (3) The extent to which the information or technology is likely to 
be of use in other settings.
    (i) Design of technical assistance activities. In determining the 
extent to which the design of technical assistance activities is likely 
to be effective in accomplishing the objectives of the project, the 
Director considers one or more of the following factors:
    (1) The extent to which the methods for providing technical 
assistance are of sufficient quality, intensity, and duration.
    (2) The extent to which the information to be provided through 
technical assistance covers all of the relevant aspects of the subject 
matter.
    (3) The extent to which the technical assistance is appropriate to 
the target population, including consideration of the knowledge level of 
the target population, needs of the target population, and format for 
providing information.
    (4) The extent to which the technical assistance is accessible to 
individuals with disabilities.
    (j) Plan of operation. In determining the quality of the plan of 
operation, the Director considers one or more of the following factors:
    (1) The adequacy of the plan of operation to achieve the objectives 
of the proposed project on time and within budget, including clearly 
defined responsibilities, and timelines for accomplishing project tasks.
    (2) The adequacy of the plan of operation to provide for using 
resources, equipment, and personnel to achieve each objective.
    (k) Collaboration. In determining the quality of collaboration, the 
Director considers one or more of the following factors:
    (1) The extent to which the applicant's proposed collaboration with 
one or more agencies, organizations, or institutions is likely to be 
effective in achieving the relevant proposed activities of the project.
    (2) The extent to which agencies, organizations, or institutions 
demonstrate a commitment to collaborate with the applicant.
    (3) The extent to which agencies, organizations, or institutions 
that commit to collaborate with the applicant have the capacity to carry 
out collaborative activities.
    (l) Adequacy and reasonableness of the budget. In determining the 
adequacy and the reasonableness of the proposed budget, the Director 
considers one or more of the following factors:
    (1) The extent to which the costs are reasonable in relation to the 
proposed project activities.
    (2) The extent to which the budget for the project, including any 
subcontracts, is adequately justified to support the proposed project 
activities.

[[Page 245]]

    (3) The extent to which the applicant is of sufficient size, scope, 
and quality to effectively carry out the activities in an efficient 
manner.
    (m) Plan of evaluation. In determining the quality of the plan of 
evaluation, the Director considers one or more of the following factors:
    (1) The extent to which the plan of evaluation provides for periodic 
assessment of progress toward:
    (i) Implementing the plan of operation; and
    (ii) Achieving the project's intended outcomes and expected impacts.
    (2) The extent to which the plan of evaluation will be used to 
improve the performance of the project through the feedback generated by 
its periodic assessments.
    (3) The extent to which the plan of evaluation provides for periodic 
assessment of a project's progress that is based on identified 
performance measures that:
    (i) Are clearly related to the intended outcomes of the project and 
expected impacts on the target population; and
    (ii) Are objective, and quantifiable or qualitative, as appropriate.
    (n) Project staff. In determining the quality of the project staff, 
the Director considers the extent to which the applicant encourages 
applications for employment from persons who are members of groups that 
have traditionally been underrepresented based on race, color, national 
origin, gender, age, or disability. In addition, the Director considers 
one or more of the following:
    (1) The extent to which the key personnel and other key staff have 
appropriate training and experience in disciplines required to conduct 
all proposed activities.
    (2) The extent to which the commitment of staff time is adequate to 
accomplish all the proposed activities of the project.
    (3) The extent to which the key personnel are knowledgeable about 
the methodology and literature of pertinent subject areas.
    (4) The extent to which the project staff includes outstanding 
scientists in the field.
    (5) The extent to which key personnel have up-to-date knowledge from 
research or effective practice in the subject area covered in the 
priority.
    (o) Adequacy and accessibility of resources. In determining the 
adequacy and accessibility of the applicant's resources to implement the 
proposed project, the Director considers one or more of the following 
factors:
    (1) The extent to which the applicant is committed to provide 
adequate facilities, equipment, other resources, including 
administrative support, and laboratories, if appropriate.
    (2) The quality of an applicant's past performance in carrying out a 
grant.
    (3) The extent to which the applicant has appropriate access to 
populations and organizations representing individuals with disabilities 
to support advanced disability, independent living and clinical 
rehabilitation research.
    (4) The extent to which the facilities, equipment, and other 
resources are appropriately accessible to individuals with disabilities 
who may use the facilities, equipment, and other resources of the 
project.
    (p) Quality of the project design. In determining the quality of the 
design of the proposed project, the Director considers one or more of 
the following factors:
    (1) The extent to which the goals, objectives, and outcomes to be 
achieved by the proposed project are clearly specified and measurable.
    (2) The quality of the methodology to be employed in the proposed 
project.
    (3) The extent to which the design of the proposed project includes 
a thorough, high-quality review of the relevant literature, a high-
quality plan for project implementation, and the use of appropriate 
methodological tools to ensure successful achievement of project 
objectives.
    (4) The extent to which the design of the proposed project is 
appropriate to, and will successfully address, the needs of the target 
population or other identified needs.
    (5) The extent to which the proposed development efforts include 
adequate quality controls and, as appropriate, repeated testing of 
products.
    (6) The extent to which the proposed project will be coordinated 
with similar or related efforts, and with other

[[Page 246]]

appropriate community, State, and Federal resources.
    (7) The extent to which the design of the proposed project reflects 
up-to-date knowledge from research and effective practice.
    (8) The extent to which the proposed project represents an 
exceptional approach to the priority or priorities established for the 
competition.



Sec.  1330.25  Additional considerations for field-initiated priorities.

    (a) The Director reserves funds to support field-initiated 
applications funded under this part when those applications have been 
awarded points totaling 85 percent or more of the maximum possible 
points under the procedures described in Sec.  1330.23.
    (b) In making a final selection from applications received when 
NIDILRR uses field-initiated priorities, the Director may consider 
whether one of the following conditions is met and, if so, use this 
information to fund an application out of rank order:
    (1) The proposed project represents a unique opportunity to advance 
rehabilitation and other knowledge to improve the lives of individual 
with disabilities.
    (2) The proposed project complements or balances research activity 
already planned or funded by NIDILRR through its annual priorities or 
addresses the research in a new and promising way.
    (c) If the Director funds an application out of rank order under 
paragraph (b) of this section, the public will be notified through a 
notice on the NIDILRR Web site or through other means deemed appropriate 
by the Director.



 Subpart D_Disability, Independent Living, and Rehabilitation Research 
                               Fellowships



Sec.  1330.30  Fellows program.

    (a) The purpose of this program is to build research capacity by 
providing support to highly qualified individuals, including those who 
are individuals with disabilities, to perform research on 
rehabilitation, independent living, and other experiences and outcomes 
of individuals with disabilities.
    (b) The eligibility requirements for the Fellows program are as 
follows:
    (1) Only individuals are eligible to be recipients of Fellowships.
    (2) Any individual is eligible for assistance under this program who 
has training and experience that indicate a potential for engaging in 
scientific research related to rehabilitation and independent living for 
individuals with disabilities.
    (3) This program provides two categories of Fellowships: Merit 
Fellowships and Distinguished Fellowships.
    (i) To be eligible for a Distinguished Fellowship, an individual 
must have seven or more years of research experience in subject areas, 
methods, or techniques relevant to disability and rehabilitation 
research and must have a doctorate, other terminal degree, or comparable 
academic qualifications.
    (ii) The Director awards Merit Fellowships to individuals in earlier 
stages of their careers in research. To be eligible for a Merit 
Fellowship, an individual must have either advanced professional 
training or experience in independent study in an area which is directly 
pertinent to disability and rehabilitation.
    (c) Fellowships will be awarded in the form of a grant to eligible 
individuals.
    (d) In making a final selection of applicants to support under this 
program, the Director considers the extent to which applicants present a 
unique opportunity to effect a major advance in knowledge, address 
critical problems in innovative ways, present proposals which are 
consistent with the Institute's Long-Range Plan, build research capacity 
within the field, or complement and significantly increases the 
potential value of already planned research and related activities.



 Subpart E_Special Projects and Demonstrations for Spinal Cord Injuries



Sec.  1330.40  Spinal cord injuries program.

    (a) This program provides assistance to establish innovative 
projects for the delivery, demonstration, and evaluation of 
comprehensive medical, vocational, independent living, and 
rehabilitation services to meet the wide

[[Page 247]]

range of needs of individuals with spinal cord injuries.
    (b) The agencies and organizations eligible to apply under this 
program are described in Sec.  1330.2.



PART 1331_STATE HEALTH INSURANCE ASSISTANCE PROGRAM--Table of Contents



Sec.
1331.1 Basis, scope, and definition.
1331.2 Eligibility for grants.
1331.3 Availability of grants.
1331.4 Number and size of grants.
1331.5 Limitations.
1331.6 Reporting requirements.
1331.7 Administration.

    Authority: 42 U.S.C. 1395b-4.

    Source: 81 FR 5918, Feb. 4, 2016, unless otherwise noted.



Sec.  1331.1  Basis, scope, and definition.

    (a) Basis. This part implements, in part, the provisions of section 
4360 of Public Law 101-508 by establishing a minimum level of funding 
for grants made to States for the purpose of providing information, 
counseling, and assistance relating to obtaining adequate and 
appropriate health insurance coverage to individuals eligible to receive 
benefits under the Medicare program.
    (b) Scope of part. This part sets forth the following:
    (1) Conditions of eligibility for the grant.
    (2) Minimum levels of funding for those States qualifying for the 
grants.
    (3) Reporting requirements.
    (c) Definition. For purposes of this subpart, the term ``State'' 
includes (except where otherwise indicated by the context) the 50 
States, the District of Columbia, the Commonwealth of Puerto Rico, the 
Virgin Islands, Guam, and American Samoa.



Sec.  1331.2  Eligibility for grants.

    To be eligible for a grant under this subpart, the State must have 
an approved Medicare supplemental regulatory program under section 1882 
of the Act and submit a timely application to ACL that meets the 
requirements of--
    (a) Section 4360 of Public Law 101-508 (42 U.S.C. 1395b-4);
    (b) This subpart; and
    (c) The applicable solicitation for grant applications issued by 
ACL.



Sec.  1331.3  Availability of grants.

    ACL awards grants to States subject to availability of funds, and if 
applicable, subject to the satisfactory progress in the State's project 
during the preceding grant period. The criteria by which progress is 
evaluated and the performance standards for determining whether 
satisfactory progress has been made are specified in the terms and 
conditions included in the notice of grant award sent to each State. ACL 
advises each State as to when to make application, what to include in 
the application, and provides information as to the timing of the grant 
award and the duration of the grant award. ACL also provides an estimate 
of the amount of funds that may be available to the State.



Sec.  1331.4  Number and size of grants.

    (a) General. For available grant funds, up to and including 
$10,000,000, grants will be made to States according to the terms and 
formula in paragraphs (b) and (c) of this section. For any available 
grant funds in excess of $10,000,000, distribution of grants will be at 
the discretion of ACL, and will be made according to criteria that ACL 
will communicate to the States via grant solicitation. ACL will provide 
information to each State as to what must be included in the application 
for grant funds. ACL awards the following type of grants:
    (1) New program grants.
    (2) Existing program enhancement grants.
    (b) Grant award. Subject to the availability of funds, each eligible 
State that submits an acceptable application receives a grant that 
includes a fixed amount (minimum funding level) and a variable amount.
    (1) A fixed portion is awarded to States in the following amounts:
    (i) Each of the 50 States, $75,000.
    (ii) The District of Columbia, $75,000.
    (iii) Puerto Rico, $75,000.
    (iv) American Samoa, $25,000.
    (v) Guam, $25,000.
    (vi) The Virgin Islands, $25,000.

[[Page 248]]

    (2) A variable portion which is based on the number and location of 
Medicare beneficiaries residing in the State is awarded to each State. 
The variable amount a particular State receives is determined as set 
forth in paragraph (c) of this section.
    (c) Calculation of variable portion of the grant. (1) ACL bases the 
variable portion of the grant on--
    (i) The amount of available funds, and
    (ii) A comparison of each State with the average of all of the 
States (except the State being compared) with respect to three factors 
that relate to the size of the State's Medicare population and where 
that population resides.
    (2) The factors ACL uses to compare States' Medicare populations 
comprise separate components of the variable amount. These factors, and 
the extent to which they each contribute to the variable amount, are as 
follows:
    (i) Approximately 75 percent of the variable amount is based on the 
number of Medicare beneficiaries living in the State as a percentage of 
all Medicare beneficiaries nationwide.
    (ii) Approximately 10 percent of the variable amount is based on the 
percentage of the State's total population who are Medicare 
beneficiaries.
    (iii) Approximately 15 percent of the variable amount is based on 
the percentage of the State's Medicare beneficiaries that reside in 
rural areas (``rural areas'' are defined as all areas not included 
within a metropolitan Statistical Area).
    (3) Based on the foregoing four factors (that is, the amount of 
available funds and the three comparative factors), ACL determines a 
variable rate for each participating State for each grant period.
    (d) Submission of revised budget. A State that receives an amount of 
grant funds under this subpart that differs from the amount requested in 
the budget submitted with its application must submit a revised budget 
to ACL, along with its acceptance of the grant award, which reflects the 
amount awarded.



Sec.  1331.5  Limitations.

    (a) Use of grants. Except as specified in paragraph (b) of this 
section, and in the terms and conditions in the notice of grant award, a 
State that receives a grant under this subpart may use the grant for any 
reasonable expenses for planning, developing, implementing and/or 
operating the program for which the grant is made as described in the 
solicitation for application for the grant.
    (b) Maintenance of effort. A State that receives a grant to 
supplement an existing program (that is, an existing program enhancement 
grant)--
    (1) Must not use the grant to supplant funds for activities that 
were conducted immediately preceding the date of the initial award of a 
grant made under this subpart and funded through other sources 
(including in-kind contributions).
    (2) Must maintain the activities of the program at least at the 
level that those activities were conducted immediately preceding the 
initial award of a grant made under this subpart.



Sec.  1331.6  Reporting requirements.

    A State that receives a grant under this subpart must submit at 
least one annual report to ACL and any additional reports as ACL may 
prescribe in the notice of grant award. ACL advises the State of the 
requirements concerning the frequency, timing, and contents of reports 
in the notice of grant award that it sends to the State.



Sec.  1331.7  Administration.

    (a) General. Administration of grants will be in accordance with the 
provisions of this subpart, 45 CFR part 75 (``Uniform Administrative 
Requirements for Grants and Cooperative Agreements to State and Local 
Governments''), the terms of the solicitation, and the terms of the 
notice of grant award. Except for the minimum funding levels established 
by Sec.  1331.4(b)(1), in the event of conflict between a provision of 
the notice of grant award, any provision of the solicitation, or of any 
regulation enumerated in 45 CFR part 75, the terms of the notice of 
grant award control.
    (b) Notice. ACL provides notice to each applicant regarding ACL's 
decision on an application for grant funding under Sec.  1331.4.

[[Page 249]]

    (c) Appeal. Any applicant for a grant under this subpart has the 
right to appeal ACL's determination regarding its application. Appeal 
procedures are governed by the regulations at 45 CFR part 16 (Procedures 
of the Departmental Grant Appeals Board).

[[Page 250]]



 SUBCHAPTER D_THE ADMINISTRATION FOR NATIVE AMERICANS, NATIVE AMERICAN 
                                PROGRAMS





PART 1336_NATIVE AMERICAN PROGRAMS--Table of Contents



                          Subpart A_Definitions

Sec.
1336.10 Definitions.

            Subpart B_Purpose of the Native American Programs

1336.20 Program purpose.

                   Subpart C_Native American Projects

1336.30 Eligibility under sections 804 and 805 of the Native American 
          Programs Act of 1974.
1336.31 Project approval procedures.
1336.32 Grants.
1336.33 Eligible applicants and proposed activities which are 
          ineligible.
1336.34 Notice of ineligibility.
1336.35 Appeal of ineligibility.

                          Subpart D_Evaluation

1336.40 General.

                Subpart E_Financial Assistance Provisions

1336.50 Financial and administrative requirements.
1336.51 Project period.
1336.52 Appeals.

   Subpart F_Native Hawaiian Revolving Loan Fund Demonstration Project

1336.60 Purpose of this subpart.
1336.61 Purpose of the Revolving Loan Fund.
1336.62 Definitions.
1336.63 General responsibilities of the Loan Administrator.
1336.64 Development of goals and strategies: Responsibilities of the 
          Loan Administrator.
1336.65 Staffing and organization of the Revolving Loan Fund: 
          Responsibilities of the Loan Administrator.
1336.66 Procedures and criteria for administration of the Revolving Loan 
          Fund: Responsibilities of the Loan Administrator.
1336.67 Security and collateral: Responsibilities of the Loan 
          Administrator.
1336.68 Defaults, uncollectible loans, liquidations: Responsibilities of 
          the Loan Administrator.
1336.69 Reporting requirements: Responsibilities of the Loan 
          Administrator.
1336.70 Technical assistance: Responsibilities of the Loan 
          Administrator.
1336.71 Administrative costs.
1336.72 Fiscal requirements.
1336.73 Eligible borrowers.
1336.74 Time limits and interest on loans.
1336.75 Allowable loan activities.
1336.76 Unallowable loan activities.
1336.77 Recovery of funds.

    Authority: 42 U.S.C. 2991 et seq.

    Source: 48 FR 55821, Dec. 15, 1983, unless otherwise noted.



                          Subpart A_Definitions



Sec.  1336.10  Definitions.

    For the purposes of this part, unless the context otherwise 
requires:
    Act means the Native American Programs Act of 1974, as amended (42 
U.S.C. 2991 et seq.).
    Alaskan Native means a person who is an Alaskan Indian, Eskimo, or 
Aleut, or any combination thereof. The term also includes any person who 
is regarded as an Alaskan Native by the Alaskan Native Village or group 
of which he or she claims to be a member and whose father or mother is 
(or, if deceased, was) regarded as an Alaskan Native by an Alaskan 
Native Village or group. The term includes any Alaskan Native as so 
defined, either or both of whose adoptive parents are not Alaskan 
Natives.
    American Indian or Indian means any individual who is a member or a 
descendant of a member of a North American tribe, band, Pueblo or other 
organized group of native people who are indigenous to the Continental 
United States, or who otherwise have a special relationship with the 
United States or a State through treaty, agreement, or some other form 
of recognition. This includes any individual who claims to be an Indian 
and who is regarded as such by the Indian tribe, group, band, or 
community of which he or she claims to be a member.
    ANA means the Administration for Native Americans within the Office 
of Human Development Services.
    Applicant means an organization which has applied for financial 
assistance from ANA.

[[Page 251]]

    Budget period means the interval of time into which a project period 
is divided for budgetary and funding purposes, and for which a grant is 
made. A budget period usually lasts one year in a multi-year project 
period.
    Economic and social self-sufficiency means the ability of Native 
Americans to define and achieve their own economic and social goals.
    Indian tribe means a distinct political community of Indians which 
exercises powers of self-government.
    Native American means American Indian, Indian, Native Hawaiian, and 
Alaskan Native, as defined in the Act, or in this section.
    Project period means, for discretionary grants and cooperative 
agreements, the total time for which the recipient's project or program 
is approved for support, including any extension, subject to the 
availability of funds, satisfactory progress, and a determination by HHS 
that continued funding is in the best interest of the Government.
    Recipient means an organization which has applied for financial 
assistance, and to which financial assistance is awarded under this Act. 
The term includes grantees and recipients of cooperative agreements.



            Subpart B_Purpose of the Native American Programs



Sec.  1336.20  Program purpose.

    The purpose of the Native American Programs authorized by the Native 
American Programs Act of 1974 is to promote the goal of economic and 
social self-sufficiency for Native Americans.



                   Subpart C_Native American Projects



Sec.  1336.30  Eligibility under sections 804 and 805 
of the Native American Programs Act of 1974.

    Financial assistance under sections 804 and 805 may be made to 
public or private agencies including ``for-profit'' organizations.

[48 FR 55821, Dec. 15, 1983, as amended at 53 FR 23968, June 24, 1988; 
53 FR 28223, July 27, 1988; 54 FR 3452, Jan. 24, 1989; 61 FR 42820, Aug. 
19, 1996]



Sec.  1336.31  Project approval procedures.

    (a) Each applicant for financial assistance under section 803 of the 
Act must submit a work plan that falls within the statutory requirements 
of the Act and meets the criteria of program announcements published by 
ANA in the Federal Register. If the proposed project extends beyond one 
year, a work plan must be submitted for the period of time specified by 
the Commissioner in the Program Announcement. ANA will determine whether 
to approve all, part, or none of the requested work plan. Proposed 
changes to the approved work plan must receive the written approval of 
ANA prior to implementation by the recipient.
    (b) ANA will negotiate the approved project goals, objectives, work 
plan, and the funding level for each budget period with each recipient.
    (c) The evaluation for the purpose of making an approval decision on 
each proposed work plan will take into account the proposal's 
conformance with ANA program purposes and the recipient's past 
performance and accomplishments.
    (d) Financial assistance awarded under section 803 may be renewed by 
ANA to grantees based on acceptable work plans and past performance.

(Approved by the Office of Management and Budget under control number 
0980-0016)



Sec.  1336.32  Grants.

    Generally, financial assistance will be made available for a one-
year budget period and subsequent non-competing continuation awards with 
the same project period will also be for one year. A recipient must 
submit a separate application to have financial assistance continued for 
each subsequent year, with the same project period, but the continuation 
application need only contain budget and a summary progress report.

[[Page 252]]



Sec.  1336.33  Eligible applicants and proposed activities 
which are ineligible.

    (a) Eligibility for the listed programs is restricted to the 
following specified categories of organizations. In addition, 
applications from tribal components which are tribally-authorized 
divisions of a larger tribe must be approved by the governing body of 
the Tribe. If the applicant, other than a tribe or an Alaska Native 
Village government, is proposing a project benefiting Native Americans 
or Native Alaskans, or both, it must provide assurance that its duly 
elected or appointed board of directors is representative of the 
community to be served.
    (1) Social and Economic Development Strategies (SEDS) and 
Preservation and Enhancement of Native American Languages:
    (i) Federally recognized Indian Tribes;
    (ii) Consortia of Indian Tribes;
    (iii) Incorporated non-Federally recognized Tribes;
    (iv) Incorporated nonprofit multi-purpose community-based Indian 
organizations;
    (v) Urban Indian Centers;
    (vi) National and regional incorporated nonprofit Native American 
organizations with Native American community-specific objectives;
    (vii) Alaska Native villages as defined in the Alaska Native Claims 
Settlement Act (ANSCA) and/or nonprofit village consortia;
    (viii) Incorporated nonprofit Alaska Native multi-purpose community-
based organizations;
    (ix) Nonprofit Alaska Native Regional Corporations/Associations in 
Alaska with village specific projects;
    (x) Nonprofit Native organizations in Alaska with village specific 
projects;
    (xi) Public and nonprofit private agencies serving Native Hawaiians;
    (xii) Public and nonprofit private agencies serving native peoples 
from Guam, American Samoa, Palau, or the Commonwealth of the Northern 
Mariana Islands. (The populations served may be located on these islands 
or in the United States);
    (xiii) Tribally Controlled Community Colleges Tribally Controlled 
Post-Secondary Vocational Institutions, and colleges and universities 
located in Hawaii, Guam, American Samoa, Palau, or the Commonwealth of 
the Northern Mariana Islands which serve Native American Pacific 
Islanders; and
    (xiv) Nonprofit Alaska Native community entities or tribal governing 
bodies (Indian Reorganization Act or traditional councils) as recognized 
by the Bureau of Indian Affairs.


(Statutory authority: Sections 803(a) and 803C of the Native American 
Programs Act of 1974, as amended, 42 U.S.C. 2991 b(a) and 42 U.S.C. 
2991b-3)

    (2) Alaska-Specific Social and Economic Development Strategies 
(SEDS) Projects:
    (i) Federally recognized Indian Tribes in Alaska;
    (ii) Alaska Native villages as defined in the Alaska Native Claims 
Settlement Act (ANCSA) and/or nonprofit village consortia;
    (iii) Incorporated nonprofit Alaska Native multi-purpose community-
based organizations;
    (iv) Nonprofit Alaska Native Regional Corporations/Associations in 
Alaska with village specific projects; and
    (v) Nonprofit Native organizations in Alaska with village specific 
projects.
    (3) Mitigation of Environmental Impacts to Indian Lands Due to 
Department of Defense Activities:
    (i) Federally recognized Indian Tribes;
    (ii) Incorporated non-Federally and State recognized Tribes;
    (iii) Nonprofit Alaska Native community entities or tribal governing 
bodies (Indian Reorganization Act (IRA) or traditional councils) as 
recognized by the Bureau of Indian Affairs.
    (iv) Nonprofit Alaska Native Regional Associations and/or 
Corporations with village specific projects; and
    (v) Other tribal or village organizations or consortia of Indian 
Tribes. (Statutory authority: Sec.  8094A of the Department of Defense 
Appropriations Act, 1994 (Public Law 103-139), Sec.  8094A of the Native 
Americans Programs Act of 1974, as amended, 42 U.S.C. 2991h(b)).
    (4) Improvement of the capability of tribal governing bodies to 
regulate environmental quality:

[[Page 253]]

    (i) Federally recognized Indian Tribes;
    (ii) Incorporated non-Federally and State recognized Indian tribes;
    (iii) Alaska Native villages as defined in the Alaska Native Claims 
Settlement Act (ANSCA) and/or nonprofit village consortia;
    (iv) Nonprofit Alaska Native Regional Corporations/Associations with 
village-specific projects;
    (v) Other tribal or village organizations or consortia of Indian 
tribes: and
    (vi) Tribal governing bodies (IRA or traditional councils) as 
recognized by the Bureau of Indian Affairs. (Statutory authority: 
Sections 803(d) of the Native Americans Programs Act of 1974, as amended 
42 U.S.C. 2991b(d).)
    (b) The following is a nonexclusive list of activities that are 
ineligible for funding under programs authorized by the Native American 
Programs Act of 1974:
    (1) Projects in which a grantee would provide training and/or 
technical assistance (T/TA) to other tribes or Native American 
organizations (``third party T/TA''). However, the purchase of T/TA by a 
grantee for its own use or for its members' use (as in the case of a 
consortium), where T/TA is necessary to carry out project objectives, is 
acceptable;
    (2) Projects that request funds for feasibility studies, business 
plans, marketing plans or written materials, such as manuals, that are 
not an essential part of the applicant's SEDS long-range development 
plan;
    (3) The support of on-going social service delivery programs or the 
expansion, or continuation, of existing social service delivery 
programs;
    (4) Core administration functions, or other activities, that 
essentially support only the applicant's on-going administrative 
functions; however, for Competitive Area 2, Alaska-Specific SEDS 
Projects, ANA will consider funding core administrative capacity 
building projects at the village government level if the village does 
not have governing systems in place;
    (5) The conduct of activities which are not responsive to one or 
more of the three interrelated ANA goals (Governance Development, 
Economic Development, and Social Development);
    (6) Proposals from consortia of tribes that are not specific with 
regard to support from, and roles of member tribes. An application from 
a consortium must have goals and objectives that will create positive 
impacts and outcomes in the communities of its members. ANA will not 
fund activities by a consortium of tribes which duplicates activities 
for which member tribes also receive funding from ANA; and
    (7) The purchase of real estate. (Statutory authority: Sections 803B 
of the Native American Programs Act of 1974, as amended, 42 U.S.C. 
2991b-2)

[61 FR 42820, Aug. 19, 1996]



Sec.  1336.34  Notice of ineligibility.

    (a) Upon a finding by the Commissioner that an organization which 
has applied for funding is ineligible or that the activities proposed by 
an organization are ineligible, the Commissioner shall inform the 
applicant by certified letter of the decision.
    (b) The letter must include the following:
    (1) The legal and factual grounds for the Commissioner's finding 
concerning eligibility;
    (2) A copy of the regulations in this part; and
    (3) The following statement: This is the final decision of the 
Commissioner, Administration for Native Americans. It shall be the final 
decision of the Department unless, within 30 days after receiving this 
decision as provided in Sec.  810(b) of the Native Americans Programs 
Act of 1974, as amended, and 45 CFR part 1336, you deliver or mail (you 
should use registered or certified mail to establish the date) a written 
notice of appeal to the HHS Departmental Appeals Board, 200 Independence 
Avenue, S.W., Washington, D.C. 20201. You shall attach to the notice a 
copy of this decision and note that you intend an appeal. The appeal 
must clearly identify the issue(s) in dispute and contain a statement of 
the applicant's position on such issue(s) along with pertinent facts and 
reasons in support of the position. We are enclosing a copy of 45

[[Page 254]]

CFR part 1336 which governs the conduct of appeals under Sec.  810(b). 
For additional information on the appeals process see 45 CFR 1336.35. 
(Statutory authority: Sections 810(b) of the Native American Programs 
Act of 1974, as amended, 42 U.S.C. 2991h(b).)

[61 FR 42821, Aug. 19, 1996]



Sec.  1336.35  Appeal of ineligibility.

    The following steps apply when seeking an appeal on a finding of 
ineligibility for funding:
    (a) An applicant, which has had its application rejected either 
because it has been found ineligible or because the activities it 
proposes are ineligible for funding by the Commissioner of ANA, may 
appeal the Commissioner's ruling to the HHS Departmental Appeals Board, 
in writing, within 30 days following receipt of ineligibility 
notification.
    (b) The appeal must clearly identify the issue(s) in dispute and 
contain a statement of the applicant's position on such issue(s) along 
with pertinent facts and reasons in support of the position.
    (c) Upon receipt of appeal for reconsideration of a rejected 
application or activities proposed by an applicant, the Departmental 
Appeals Board will notify the applicant by certified mail that the 
appeal has been received.
    (d) The applicant's request for reconsideration will be reviewed by 
the Departmental Appeals Board in accordance with 45 CFR part 16, except 
as otherwise provided in this part.
    (e) The Commissioner shall have 45 days to respond to the 
applicant's submission under paragraph (a) of this section.
    (f) The applicant shall have 20 days to respond to the 
Commissioner's submission and the parties may be requested to submit 
additional information within a specified time period before closing the 
record in the appeal.
    (g) The Departmental Appeals Board will review the record in the 
appeal and provide a final written decision within 30 days following the 
closing of the record, unless the Board determines for good reason that 
a decision cannot be issued within this time period and so notifies the 
parties.
    (h) If the Departmental Appeals Board determines that the applicant 
is eligible or that the activities proposed by the applicant are 
eligible for funding, such eligibility shall not be effective until the 
next cycle of grant proposals are considered by the Administration for 
Native Americans. (Statutory authority: Sections 810(b) of the Native 
American Programs Act of 1974, as amended, 42 U.S.C. 2991h(b).)

[61 FR 42822, Aug. 19, 1996]



                          Subpart D_Evaluation



Sec.  1336.40  General.

    Progress reports and continuation applications must contain 
sufficient information for ANA to determine the extent to which the 
recipient meets ANA project evaluation standards. Sufficient information 
means information adequate to enable ANA to compare the recipient's 
accomplishments with the goals and activities of the approved work plan 
and with ANA project evaluation criteria.

(Approved by the Office of Management and Budget under control numbers 
0980-0155 and 0980-0144)



                Subpart E_Financial Assistance Provisions



Sec.  1336.50  Financial and administrative requirements.

    (a) General. The following HHS regulations apply to all grants 
awarded under this part:
    45 CFR Part 16 Department grant appeals process.
    45 CFR Part 46 Protection of human subjects.
    45 CFR part 75--Uniform Administrative Requirements, Cost 
Principles, and Audit Requirements for HHS Awards
    45 CFR Part 80 Nondiscrimination under programs receiving Federal 
assistance through the Department of Health and Human Services--
Effectuation of title VI of the Civil Rights Act of 1964.
    45 CFR Part 81 Practice and procedure for hearing under part 80.
    45 CFR Part 84 Nondiscrimination on the basis of handicap in 
federally assisted programs.

[[Page 255]]

    45 CFR Part 86 Nondiscrimination on the basis of sex in education 
programs and activities receiving or benefiting from Federal financial 
assistance.
    45 CFR Part 91 Nondiscrimination on the basis of age in programs or 
activities receiving Federal financial assistance from HHS.
    (b) Cost sharing or matching--(1) Policy. Recipients of financial 
assistance under sections 803, 804, and 805 of the Act are required to 
provide a matching share of 20 percent of the approved cost of the 
assisted project.

This requirement may be waived in accordance with the criteria in Sec.  
1336.50(b)(3). The matching share requirement may be met using either 
cash or in-kind contributions.
    (2) Application. If an applicant wishes to request a waiver of the 
requirement for a 20 percent non-Federal matching share, it must include 
with is application for funding a written justification that clearly 
explains why the applicant cannot provide the matching share and how it 
meets the criteria.
    (3) Criteria. Both of the following criterial must be met for an 
applicant to be eligible for a waiver of the non-Federal matching 
requirement:
    (i) Applicant lacks the available resources to meet part or all of 
the non-Federal matching requirement. This must be documented by an 
institutional audit if available, or a full disclosure of applicant's 
total assets and liabilities.
    (ii) Applicant can document that reasonable efforts to obtain cash 
or inkind contributions for the purposes of the project from third 
parties have been unsuccessful. Evidence of such efforts can include 
letters from possible sources of funding indicating that the requested 
resources are not available for that project. The requests must be 
appropriate to the source in terms of project purpose, applicant 
eligibility, and reasonableness of the request.
    (4) Approval. For a waiver to be approved, ANA must determine that 
it will not prevent the award of other grants at levels it believes are 
desirable for the purposes of the program. Waiver of all or part of the 
non-Federal share shall apply only to the budget period for which 
application was made.
    (c) Maintenance of effort. (1) Applications for financial assistance 
under this Part must include either a statement of compliance with the 
maintenance of effort requirement contained in section 803(c) of the 
Act, or a request for a waiver, in accordance with criteria established 
in this paragraph.
    (2) To be eligible for a waiver of the maintenance of effort 
requirement, the applicant must demonstrate to ANA that the organization 
whose funds previously supported the project discontinued its support:
    (i) As a result of funding limitations; and
    (ii) Not as a result of an adverse evaluation of the project's 
purpose or the manner in which it was conducted; and
    (iii) Not because it was anticipated that Federal funds would 
replace the original source of project funding.
    (3) In addition, the applicant must demonstrate in the request for a 
waiver that the maintenance of effort requirement would result in 
insurmountable hardship for the recipient or would otherwise be 
inconsistent with the purposes of this part.
    (d) Delegation of project operations. (1) Each subgrant awarded to a 
delegate agency must have specific prior approval by ANA. Such 
delegation must be formalized by written agreement.
    (2) The agreement must specify the activities to be performed by the 
delegate agency, the time schedule, the policies and procedures to be 
followed, the dollar limitations, and the costs allowed. The applicant 
must submit a budget for each delegate agency as part of its 
application.
    (e) Unallowable costs. ANA funds may not be used by recipients to 
purchase real property.
    (f) Office of the Chief Executive. The costs of salaries and 
expenses of the Office of Chief Executive of a federally recognized 
Indian tribal government (as defined in Sec.  75.2 of this title ) are 
allowable, provided that such costs exclude any portion of salaries and 
expenses of the Office of Chief Executive that are a cost of general 
government and provided they are related to a project assisted under 
this part.

[48 FR 55821, Dec. 15, 1983, as amended at 81 FR 3022, Jan. 20, 2016]

[[Page 256]]



Sec.  1336.51  Project period.

    The Notice of Financial Assistance Awarded will specify the period 
for which support is intended, although the Department makes funding 
commitments only for one budget period at a time. Financial assistance 
under section 803 of the Act may be ongoing, subject to policy decisions 
and funding limitations.



Sec.  1336.52  Appeals.

    (a) Right to appeal. Recipients whose financial assistance has been 
suspended or terminated, or whose non-competing continuation 
applications for refunding have been denied, may appeal such decisions 
using the procedures described in this section. Denial of an application 
for refunding means the refusal to fund a non-competing continuation 
application for a budget period within a previously approved project 
period.
    (b) Suspension, termination, and denial of funding. Procedures for 
and definitions of suspension and termination of financial assistance 
are published in 45 CFR 75.371 through 75.380. Appeals from a denial of 
refunding will be treated the same procedurally as appeals to 
termination of financial assistance. The term ``denial of refunding'' 
does not include policy decisions to eliminate one or more activities of 
an approved project. A decision not to fund an application at the end of 
the recipients's project period is not a ``denial of refunding'' and is 
not subject to appeal.
    (c) Hearings. (1) A recipient shall be given an initial written 
notice at least thirty (30) days prior to the suspension or termination 
of financial assistance except in emergency situations, which occur when 
Federal property is in imminent danger of dissipation, or when life, 
health, or safety is endangered. During this period of time, the 
recipient has the opportunity to show cause to ANA why such action 
should not be taken.
    (2) A recipient who has received final written notice of termination 
or denial of refunding, or whose financial assistance will be suspended 
for more than 30 days, or who has other appealable disputes with ANA as 
provided by 45 CFR part 16 may request review by the Departmental Grant 
Appeals Board under the provisions of 45 CFR part 16.
    (3) If a recipient appeals a suspension of more than 30 days which 
subsequently results in termination of financial assistance, both 
actions may be considered simultaneously by the Departmental Grant 
Appeals Board.

[48 FR 55821, Dec. 15, 1983, as amended at 81 FR 3022, Jan. 20, 2016]



   Subpart F_Native Hawaiian Revolving Loan Fund Demonstration Project

    Authority: 88 Stat. 2324, 101 Stat. 976 (42 U.S.C. 2991, et seq.).

    Source: 53 FR 23969, June 24, 1988; 53 FR 28223, July 27, 1988; 54 
FR 3452, Jan. 24, 1989, unless otherwise noted.



Sec.  1336.60  Purpose of this subpart.

    (a) The Administration for Native Americans will award a five-year 
demonstration grant to one agency of the State of Hawaii or to one 
community-based Native Hawaiian organization whose purpose is the 
economic and social self-sufficiency of Native Hawaiians to develop 
procedures for and to manage a revolving loan fund for Native Hawaiian 
individuals and organizations in the State of Hawaii. (section 
830A(a)(1))
    (b) This subpart sets forth the requirements that the organization 
or agency selected to administer the revolving loan fund must meet and 
the terms and conditions applicable to loans made to borrowers from the 
loan fund.



Sec.  1336.61  Purpose of the Revolving Loan Fund.

    The purpose of the Native Hawaiian Revolving Loan Fund is to provide 
funding not available from other sources on reasonable terms and 
conditions to:
    (a) Promote economic activities which result in expanded 
opportunities for Native Hawaiians to increase their ownership of, 
employment in, or income from local economic enterprise;
    (b) Assist Native Hawaiians to overcome specific gaps in local 
capital markets and to encourage greater private-

[[Page 257]]

sector participation in local economic development activities; and
    (c) Increase capital formation and private-sector jobs for Native 
Hawaiians. (section 803A(a)(1)(A))



Sec.  1336.62  Definitions.

    Applicant means an applicant for a loan from the Native Hawaiian 
Revolving Loan Fund. An applicant must be an individual Native Hawaiian 
or a Native Hawaiian organization. If the applicant is a group of people 
organized for economic development purposes, the applicant ownership 
must be 100% Native Hawaiian.
    Commissioner means the Commissioner of the Administration for Native 
Americans.
    Cooperative association means an association of individuals 
organized pursuant to State or Federal law, for the purpose of owning 
and operating an economic enterprise for profit, with profits 
distributed or allocated to patrons who are members of the organization.
    Corporation means an entity organized pursuant to State or Federal 
law, as a corporation, with or without stock, for the purpose of owning 
and operating an economic enterprise.
    Default means failure of a borrower to make scheduled payments on a 
loan, failure to obtain the lender's approval for disposal of assets 
mortgaged as security for a loan, or failure to comply with the 
convenants, obligations or other provisions of a loan agreement.
    Economic enterprise means any Native Hawaiian-owned, commercial, 
industrial, agricultural or other business activity established or 
organized for the purpose of profit.
    Financing statement means the document filed or recorded in country 
or State offices pursuant to the provisions of the Uniform Commercial 
Code as enacted by Hawaii notifying third parties that a lender has a 
lien on the chattel and/or crops of a borrower.
    Loan Administrator means either the agency of the State of Hawaii or 
the community-based Native Hawaiian organization whose purpose is the 
economic and social self-sufficiency of Native Hawaiians selected to 
administer the revolving loan fund.
    Mortgages mean mortgages and deeds of trust evidencing an 
encumbrance of trust or restricted land, mortgages and security 
agreements executed as evidence of liens against crops and chattels, and 
mortgages and deeds of trust evidencing a lien on leasehold interests.
    Native Hawaiian means an individual any of whose ancestors were 
natives of the area which consists of the Hawaiian Islands prior to 
1778.
    Partnership means two or more persons engaged in the same business, 
sharing its profits and risks, and organized pursuant to state or 
Federal law.
    Profits mean the net income earned after deducting operating 
expenses from operating revenues.
    Revolving Loan Fund (RLF) means all funds that are now or are 
hereafter a part of the Native Hawaiian Revolving Loan Fund authorized 
by the Native American Programs Act of 1974, as amended in 1987, and 
supplemented by sums collected in repayment of loans made, including 
interest or other charges on loans and any funds appropriated pursuant 
to section 803A of the Native American Programs Act of 1974, as amended.



Sec.  1336.63  General responsibilities of the Loan Administrator.

    (a) The Loan Administrator will make loans to Native Hawaiian 
organizations and to individual Native Hawaiians for the purpose or 
promoting economic development among Native Hawaiians in the State of 
Hawaii. (Section 803(a)(1)(A).)
    (b) Prior to any loan being made from the RLF, the Loan 
Administrator will develop and obtain the Commissioner's approval of the 
following organizational and administrative materials necessary to 
implement the RLF:
    (1) Goals and strategies;
    (2) Staffing and organizational responsibilities;
    (3) Preapplication and loan screening processes;
    (4) Loan procedures including application forms;
    (5) Criteria and procedures for loan review, evaluation and 
decision-making;
    (6) Loan closing procedures; and

[[Page 258]]

    (7) Procedures for loan servicing, monitoring and provision of 
technical assistance.
    (c) The Loan Administrator will set up fiscal management procedures 
to satisfy the requirements of section 803A of the Native American 
Programs Act and this subpart.
    (d) The Loan Administrator must set up a separate account for the 
RLF into which all payments, interest, charges, and other amounts 
collected from loans made from the RLF will be deposited.



Sec.  1336.64  Development of goals and strategies: 
Responsibilities of the Loan Administrator.

    (a) Prior to the approval of any direct loan under the RLF, the Loan 
Administrator will develop and obtain the Commissioner's approval for a 
clear and comprehensive set of goals and strategies for the RLF. The 
goals will specify the results the Loan Administrator expects to 
accomplish from the Revolving Loan Fund, define the RLF's role and 
responsibilities for potential users, and serve as the basis for the 
development of an organizational strategy and operating plan. The RLF 
strategies will provide the Loan Administrator with a sound 
understanding of the economic and market conditions within the Native 
Hawaiian community.
    (b) The following factors shall be considered by the Loan 
Administrator in developing the RLF's goals:
    (1) Employment needs of the local population;
    (2) Characteristics of the local economic base;
    (3) Characteristics of the local capital base and the gaps in the 
local availability of business capital;
    (4) Local resources for economic development and their availability; 
and
    (5) Goals and strategies of other local organizations involved in 
economic development.
    (c) The loan fund strategies developed by the Revolving Loan Fund 
must include the following:
    (1) Business Targeting Strategy: to determine which types of 
businesses are to be targeted by the loan fund. The Loan Administrator 
will develop procedures to ensure that the loans made are directed to 
Native Hawaiians.
    (2) Financing Strategy: to determine the types of financing the loan 
fund will provide;
    (3) Business Assistance Strategy: to identify the possible or 
potential management problems of a borrower and develop a workable plan 
for providing borrowers with the needed management assistance;
    (4) Marketing Strategy: to generate applications from potential 
borrowers and to generate the support and participation of local 
financial institutions;
    (5) Capital Base Management Strategy: to develop and allocate the 
financial resources of the fund in the most effective possible way to 
meet the need or demand for financing; and
    (6) Accountability Strategy: to develop policies and mechanisms to 
hold borrowers accountable for providing the public benefits promised 
(e.g. jobs) in return for financing; to ensure that, until expenditure, 
loan proceeds are held by the borrower in secured, liquid financial 
instruments; to hold borrowers accountable for upholding the commitments 
made prior to the loan; and to develop the methods used by the RLF to 
enforce these commitments.



Sec.  1336.65  Staffing and organization of the Revolving Loan Fund: 
Responsibilities of the Loan Administrator.

    Prior to the approval of any direct loan under the RLF, the Loan 
Administrator must develop and obtain the Commissioner's approval for 
the RLF's organization table, including:
    (a) The structure and composition of the Board of Directors of the 
RLF;
    (b) The staffing requirements for the RLF, with position 
descriptions and necessary personnel qualifications;
    (c) The appointments to the advisory loan review committee; and
    (d) The roles and responsibilities of the Board, staff and loan 
review committee.



Sec.  1336.66  Procedures and criteria for administration 
of the Revolving Loan Fund: Responsibilities of the Loan Administrator.

    Prior to the approval of any direct loan under the RLF, the Loan 
Administrator must develop and obtain the

[[Page 259]]

Commissioner's approval for the following procedures:
    (a) Preapplication and loan screening procedures. Some factors to be 
considered in the loan screening process are:
    (1) General eligibility criteria;
    (2) Potential economic development criteria;
    (3) Indication of business viability;
    (4) The need for RLF financing; and
    (5) The ability to properly utilize financing.
    (b) Application process. The application package includes forms, 
instructions, and policies and procedures for the loan application. The 
package must also include instructions for the development of a business 
and marketing plan and a financing proposal from the applicant.
    (c) Loan evaluation criteria and procedures. The loan evaluation 
must include the following topics:
    (1) General and specific business trends;
    (2) Potential market for the product or service;
    (3) Marketing strategy;
    (4) Management skills of the borrower;
    (5) Operational plan of the borrower;
    (6) Financial controls and accounting systems;
    (7) Financial projections; and
    (8) Structure of investment and financing package.
    (d) Loan decision-making process. Decision-making on a loan 
application includes the recommendations of the staff, the review by the 
loan review committee and the decision by the Board.
    (e) Loan closing process. The guidelines for the loan closing 
process include the finalization of loan terms; conditions and 
covenants; the exercise of reasonable and proper care to ensure 
adherence of the proposed loan and borrower's operations to legal 
requirements; and the assurance that any requirement for outside 
financing or other actions on which disbursement is contingent are met 
by the borrower.
    (f) Loan closing documents. Documents used in the loan closing 
process include:
    (1) Term Sheet: an outline of items to be included in the loan 
agreement. It should cover the following elements:
    (i) Loan terms;
    (ii) Security interest;
    (iii) Conditions for closing the loan;
    (iv) Covenants, including reporting requirements;
    (v) Representations and warranties;
    (vi) Defaults and remedies; and
    (vii) Other provisions as necessary.
    (2) Closing Agenda: an outline of the loan documents, the background 
documents, and the legal and other supporting documents required in 
connection with the loan.
    (g) Loan servicing and monitoring. The servicing of a loan will 
include collections, monitoring, and maintenance of an up-to-date 
information system on loan status.
    (1) Collections: To include a repayment schedule, invoice for each 
loan payment, late notices, provisions for late charges.
    (2) Loan Monitoring: To include regular reporting requirements, 
periodic analysis of corporate and industry information, scheduled 
telephone contact and site visits, regular loan review committee 
oversight of loan status, and systematic internal reports and files.



Sec.  1336.67  Security and collateral: 
Responsibilities of the Loan Administrator.

    The Loan Administrator may require any applicant for a loan from the 
RLF to provide such collateral as the Loan Administrator determines to 
be necessary to secure the loan. (Section 803A(b)(3))
    (a) As a Credit Factor. The availability of collateral security 
normally is considered an important factor in making loans. The types 
and amount of collateral security required should be governed by the 
relative strengths and weaknesses of other credit factors. The taking of 
collateral as security should be considered with respect to each loan. 
Collateral security should be sufficient to provide the lender 
reasonable protection from loss in the case of adversity, but such 
security or lack thereof should not be used as the primary basis for 
deciding whether to extend credit.
    (b) Security Interests. Security interests which may be taken by the 
lender include, but are not limited to, liens on

[[Page 260]]

real or personal property, including leasehold interests; assignments of 
income and accounts receivable; and liens on inventory or proceeds of 
inventory sales as well as marketable securities and cash collateral 
accounts.
    (1) Motor vehicles. Liens ordinarily should be taken on licensed 
motor vehicles, boats or aircraft purchased hereunder in order to be 
able to transfer title easily should the lender need to declare a 
default or repossess the property.
    (2) Insurance on property secured. Hazard insurance up to the amount 
of the loan or the replacement value of the property secured (whichever 
is less) must be taken naming the lender as beneficiary. Such insurance 
includes fire and extended coverage, public liability, property damage, 
and other appropriate types of hazard insurance.
    (3) Appraisals. Real property serving as collateral security must be 
appraised by a qualified appraiser. For all other types of property, a 
valuation shall be made using any recognized, standard technique 
(including standard reference manuals), and this valuation shall be 
described in the loan file.
    (c) Additional security. The lender may require collateral security 
or additional security at any time during the term of the loan if after 
review and monitoring an assessment indicates the need for such 
security.



Sec.  1336.68  Defaults, uncollectible loans, liquidations: 
Responsibilities of the Loan Administrator.

    (a) Prior to making loans from the RLF, the Loan Administrator will 
develop and obtain the Commissioner's approval for written procedures 
and definitions pertaining to defaults and collections of payments. 
(section 803A(b)(4))
    (b) The Loan Administrator will provide a copy of such procedures 
and definitions to each applicant for a loan at the time the application 
is made. (section 803A(b)(4))
    (c) The Loan Administrator will report to the Commissioner whenever 
a loan recipient is 90 days in arrears in the repayment of principal or 
interest or has failed to comply with the terms of the loan agreement. 
After making reasonable efforts to collect amounts payable, as specified 
in the written procedures, the Loan Administrator shall notify the 
Commissioner whenever a loan is uncollectible at reasonable cost. The 
notice shall include recommendations for future action to be taken by 
the Loan Administrator. (section 803A(c)(1) and (2))
    (d) Upon receiving such notices, the Commissioner will, as 
appropriate, instruct the Loan Administrator:
    (1) To demand the immediate and full repayment of the loan;
    (2) To continue with its collection activities;
    (3) To cancel, adjust, compromise, or reduce the amount of such 
loan;
    (4) To modify any term or condition of such loan, including any term 
or condition relating to the rate of interest or the time of payment of 
any installment of principal or interest, or portion thereof, that is 
payable under such loan;
    (5) To discontinue any further advance of funds contemplated by the 
loan agreement;
    (6) To take possession of any or all collateral given as security 
and in the case of individuals, corporations, partnerships or 
cooperative associations, the property purchased with the borrowed 
funds;
    (7) To prosecute legal action against the borrower or against the 
officers of the borrowing organization;
    (8) To prevent further disbursement of credit funds under the 
control of the borrower;
    (9) To assign or sell at a public or private sale, or otherwise 
dispose of for cash or credit any evidence of debt, contract, claim, 
personal or real property or security assigned to or held by the Loan 
Administrator; or
    (10) To liquidate or arrange for the operation of economic 
enterprises financed with the revolving loan until the indebtedness is 
paid or until the Loan Administrator has received acceptable assurance 
of its repayment and compliance with the terms of the loan agreement. 
(Section 803A(c)(2)(B))

[[Page 261]]



Sec.  1336.69  Reporting requirements: 
Responsibilities of the Loan Administrator.

    (a) The Loan Administrator will maintain the following internal 
information and records:
    (1) For each borrower: The loan repayment schedule, log of telephone 
calls and site visits made with the date and the items discussed, 
correspondence with the borrower, progress reports and analyses.
    (2) Monthly status of all outstanding loans, noting all overdue 
payments.
    (3) Monthly status of the investments of the revolving loan fund 
monies not currently used for loans.
    (4) Monthly records on the revenue generated by the loan fund from 
interest charges and late charges.
    (5) Monthly administrative costs of the management of the loan fund 
and the sources of the monies to support the administrative costs.
    (b) The Loan Administrator must submit a quarterly report to the 
Commissioner. The report may be in a format of the choice of the Loan 
Administrator as long as it includes at a minimum the following topics:
    (1) For each borrower:
    (i) Name of the borrower;
    (ii) Economic development purpose(s) of the loan;
    (iii) Financing of the loan by source;
    (iv) Loan status (current/delinquent/paid);
    (v) Principal and interest outstanding; and
    (vi) Amount delinquent/defaulted, if any.
    (2) Financial status of the RLF:
    (i) Administrative cost expenditures;
    (ii) Level of base capital;
    (iii) Level of current capital;
    (iv) Amount of ANA funding;
    (v) Matching share;
    (vi) Other direct funding of the RLF;
    (vii) Program income, including interest on loans, earnings from 
investments, fee charges;
    (viii) Loans made;
    (ix) Losses on loans;
    (x) Principal and interest outstanding;
    (xi) Loans repaid;
    (xii) Delinquent loans; and
    (xiii) Collateral position of the RLF (the value of collateral as a 
percent of the outstanding balance on direct loans).
    (c) The Loan Administrator must submit a semi-annual report to the 
Commissioner containing an analysis of the RLF progress to date.
    (d) The Loan Administrator must submit to the Department a quarterly 
SF-269, Financial Status Report, or any equivalent report required by 
the Department.



Sec.  1336.70  Technical assistance: 
Responsibilities of the Loan Administrator.

    The Loan Administrator will assure that competent management and 
technical assistance is available to the borrower consistent with the 
borrower's knowledge and experience and the nature and complexity of the 
economic enterprise being financed by the RLF. Consultants, RLF staff, 
and members of the loan review committee and Board may be used to assist 
borrowers. (section 803A(d)(1)(B))



Sec.  1336.71  Administrative costs.

    Reasonable administrative costs of the RLF may be paid out of the 
loan fund. The grant award agreement between the Loan Administrator and 
ANA will set forth the allowable administrative costs of the loan fund 
during the five-year demonstration period. (sections 803A(a)(2) and 
803A(d)(1)(A))



Sec.  1336.72  Fiscal requirements.

    (a) Any portion of the revolving loan fund that is not required for 
expenditure must be invested in obligations of the United States or in 
obligations guaranteed or insured by the United States.
    (b) Loans made under the RLF will be for a term that does not exceed 
five years.
    (c) No loan may be made by the RLF after November 29, 1992, the 
close of the five-year period of the demonstration project. (section 
803A(b)(6))
    (d) All monies that are in the revolving loan fund on November 29, 
1992 and that are not otherwise needed (as determined by the 
Commissioner) to carry out the provisions of this subpart must be 
deposited in the Treasury of the United States as miscellaneous 
receipts. The Commissioner will make this determination based on 
reports,

[[Page 262]]

audits and other appropriate documents as determined by the 
Commissioner. The Commissioner will take into consideration the costs 
necessary to collect loans outstanding beyond November 29, 1992, which 
costs may be paid from interest and loan charges collected by the Fund 
and in the Fund as of November 29, 1992. To use monies in the Fund for 
the costs of collection after November 29, 1992, the Commissioner must 
give prior approval for such use.
    (e) All monies deposited in the revolving loan fund after November 
29, 1992 must be deposited in the Treasury of the United States as 
miscellaneous receipts.
    (f) After November 29, 1992, the Loan Administrator will assume 
responsibility for the collection of all outstanding loans without 
additional financial assistance from ANA.



Sec.  1336.73  Eligible borrowers.

    (a) Loans may be made to eligible applicants only if the Loan 
Administrator determines that the applicant is unable to obtain 
financing on reasonable terms and conditions from other sources such as 
banks, Small Business Administration, Production Credit Associations, 
Federal Land Banks; and
    (b) Only if there is a reasonable prospect that the borrower will 
repay the loan. (section 803A(b)(1)(A) and (B))
    (c) The Loan Administrator will determine an applicant's inability 
to obtain financing elsewhere on reasonable terms and conditions from 
documentation provided by the applicant.
    (d) Those eligible to receive loans from the revolving loan fund 
are:
    (1) Native Hawaiian individuals.
    (2) Native Hawaiian non-profit organizations.
    (3) Native Hawaiian businesses.
    (4) Native Hawaiian cooperative associations.
    (5) Native Hawaiian partnerships.
    (6) Native Hawaiian associations.
    (7) Native Hawaiian corporations.



Sec.  1336.74  Time limits and interest on loans.

    (a) Loans made under the RLF will be for a term that does not exceed 
5 years.
    (b) Loans will be made to approved borrowers at a rate of interest 
that is 2 percentage points below the average market yield on the most 
recent public offering of United States Treasury bills occurring before 
the date on which the loan is made. (section 803A(b)(2)(A) and (B))



Sec.  1336.75  Allowable loan activities.

    The following are among those activities for which a loan may be 
made from the RLF:
    (a) The establishment or expansion of businesses engaged in 
commercial, industrial or agricultural activities, such as farming, 
manufacturing, construction, sales, service;
    (b) The establishment or expansion of cooperatives engaged in the 
production and marketing of farm products, equipment, or supplies; the 
manufacture and sale of industrial, commercial or consumer products; or 
the provision of various commercial services;
    (c) Business or job retention;
    (d) Small business development;
    (e) Private sector job creation; and
    (f) Promotion of economic diversification, e.g. targeting firms in 
growth industries that have not previously been part of a community's 
economic base.



Sec.  1336.76  Unallowable loan activities.

    The following activities are among those activities not eligible for 
support under the revolving loan fund:
    (a) Loans to the Loan Administrator or any representative or 
delegate of the Loan Administrator (section 803A(b)(5));
    (b) Loans which would create a potential conflict-of-interest for 
any officer or employee of the Loan Administrator; loan activities which 
directly benefit these individuals, or persons related to them by 
marriage, or law.
    (c) Eligible activities which are moved from the State of Hawaii;
    (d) Investing in high interest account, certificates of deposit or 
other investments;
    (e) Relending of the loan amount by the borrower;
    (f) The purchase of land or buildings;
    (g) The construction of buildings; and
    (h) Purchasing or financing equity in private businesses.

[[Page 263]]



Sec.  1336.77  Recovery of funds.

    (a) Funds provided under this Subpart may be recovered by the 
Commissioner for both costs of administration of the Loan Fund and 
losses incurred by the Fund (hereafter jointly referred to as ``costs'') 
under the following circumstances:
    (1) Whenever claimed costs are unallowable under the Native 
Americans Programs Act of 1974, as amended, or under 45 CFR part 75, 
subpart E, or both;
    (2) For costs for loans made to ineligible persons or entities as 
defined in Sec.  1336.73;
    (3) For costs connected with the default of a borrower when the Loan 
Administrator has failed to perfect any security interest or when the 
Loan Administrator has failed to obtain collateral when provision of 
collateral is a condition of a loan.
    (4) For costs connected with any default when the Loan Administrator 
has failed to perform a proper check of an applicant's credit;
    (5) For costs whenever the Loan Administrator has failed to notify 
the Commission of loans at risk as required by Sec.  1336.68 of these 
regulations, and as may be required by the procedures approved pursuant 
to that regulation;
    (6) For costs whenever the Loan Administrator has failed to follow 
properly instructions provided to it by the Commissioner pursuant to 
Sec.  1336.68(d) of these regulations;
    (7) For costs which are incurred due to faulty record keeping, 
reporting, or both; or
    (8) For costs which are in connection with any activity or action 
which violates any Federal or State law or regulation not specifically 
identified in these regulations.
    (b) Whenever the Commissioner determines that funds have been 
improperly utilized or accounted for, he will issue a disallowance 
pursuant to the Act and to 45 CFR part 75 and will notify the Loan 
Administrator of its appeal rights, which appeal must be taken pursuant 
to 45 CFR part 16.
    (c) If a disallowance is taken and not appealed, or if it is 
appealed and the disallowance is upheld by the Departmental Grant 
Appeals Board, the Loan Administrator must repay the disallowed amount 
to the Loan Fund within 30 days, such repayment to be made with non-
Federal funds.

[53 FR 23969, June 24, 1988; 53 FR 28223, July 27, 1988; 54 FR 3452, 
Jan. 24, 1989, as amended at 81 FR 3022, Jan. 20, 2016]



                         SUBCHAPTER E [RESERVED]



[[Page 264]]



SUBCHAPTER F_THE ADMINISTRATION FOR CHILDREN, YOUTH AND FAMILIES, FAMILY 
                        AND YOUTH SERVICES BUREAU





PART 1351_RUNAWAY AND HOMELESS YOUTH PROGRAM--Table of Contents



                      Subpart A_Definition of Terms

Sec.
1351.1 Significant terms.

           Subpart B_Runaway and Homeless Youth Program Grants

1351.10 What is the purpose of Runaway and Homeless Youth Program 
          grants?
1351.11 Who is eligible to apply for a Runaway and Homeless Youth 
          Program grant?
1351.12 Who gets priority for the award of a Runaway and Homeless Youth 
          Program grant?
1351.13 What are the Federal and non-Federal match requirements under a 
          Runaway and Homeless Youth Program grant?
1351.14 What is the period for which a grant will be awarded?
1351.15 What costs are supportable under a Runaway and Homeless Youth 
          Program grant?
1351.16 What costs are not allowable under a Runaway and Homeless Youth 
          Program grant?
1351.17 How is application made for a Runaway and Homeless Youth Program 
          grant?
1351.18 What criteria has HHS established for deciding which Runaway and 
          Homeless Youth Program grant applications to fund?

                    Subpart C_Additional Requirements

1351.20 What Government-wide and HHS-wide regulations apply to these 
          programs?
1351.21 What confidentiality requirements apply to these programs?
1351.22 What additional requirements apply to these programs?
1351.23 What are the additional requirements that apply to the Basic 
          Center, Transitional Living and Street Outreach Program 
          grants?
1351.24 What are the additional requirements that the Basic Center 
          Program grantees must meet?
1351.25 What are the additional requirements that the Transitional 
          Living Program and Maternity Group Home grantees must meet?
1351.26 What are the additional requirements that both the Basic Center 
          and Transitional Living Program grantees must meet?
1351.27 What are the additional requirements that the Street Outreach 
          Program grantees must meet?

   Subpart D_What are the Runaway and Homeless Youth Program-Specific 
                         Performance Standards?

1351.30 What performance standards must Basic Center Program grantees 
          meet?
1351.31 What performance standards must Transitional Living Program 
          grantees, including Maternity Group Homes, meet?
1351.32 What performance standards must Street Outreach Program grantees 
          meet?

    Authority: 42 U.S.C. 5701.

    Source: 43 FR 55635, Nov. 28, 1978, unless otherwise noted.



                      Subpart A_Definition of Terms



Sec.  1351.1  Significant Terms.

    For the purposes of this part:
    Act means the Runaway and Homeless Youth Act as amended, 42 U.S.C. 
5701 et seq.
    Aftercare means additional services provided beyond the period of 
residential stay that offer continuity and supportive follow-up to youth 
served by the program.
    Background check means the review of an individual employee's or 
employment applicant's personal information, which shall include State 
or Tribal criminal history records (including fingerprint checks); 
Federal Bureau of Investigation criminal history records, including 
fingerprint checks, to the extent FSYB determines this to be practicable 
and specifies the requirement in a Funding Opportunity Announcement that 
is applicable to a grantee's award; a child abuse and neglect registry 
check, to the extent FSYB determines this to be practicable and 
specifies the requirement in a Funding Opportunity Announcement that is 
applicable to a grantee's award; and a sex

[[Page 265]]

offender registry check for all employees, consultants, contractors, and 
volunteers who have regular, unsupervised contact with individual youth, 
and for all adult occupants of host homes. As appropriate to job 
functions, it shall also include verification of educational credentials 
and employment experience, and an examination of the individual's 
driving records (for those who will transport youth), and professional 
licensing records.
    Case management means identifying and assessing the needs of the 
client, including consulting with the client, and, as appropriate, 
arranging, coordinating, monitoring, evaluating, and advocating for a 
package of services to meet the specific needs of the client.
    Client means a runaway, homeless, or street youth, or a youth at 
risk of running away or becoming homeless, who is served by a program 
grantee.
    Congregate care means a shelter type that combines living quarters 
and restroom facilities with centralized dining services, shared living 
spaces, and access to social and recreational activities, and which is 
not a family home.
    Contact means the engagement between Street Outreach Program staff 
and youth who are at risk of homelessness or runaway status or homeless 
youth in need of services that could reasonably lead to shelter or 
significant harm reduction. Contact may occur on the streets, at a drop-
in center, or at other locations known to be frequented by homeless, 
runaway, or street youth.
    Core competencies of youth worker means the ability to demonstrate 
skills in six domain areas:
    (1) Professionalism (including, but not limited to, consistent and 
reliable job performance, awareness and use of professional ethics to 
guide practice);
    (2) Applied positive youth development approach (including, but not 
limited to, skills to develop a positive youth development plan and 
identifying the client's strengths in order to best apply a positive 
youth development framework);
    (3) Cultural and human diversity (including, but not limited to, 
gaining knowledge and skills to meet the needs of clients of a different 
race, ethnicity, nationality, religion/spirituality, gender identity/
expression, sexual orientation);
    (4) Applied human development (including, but not limited to, 
understanding the developmental needs of those at risk and with special 
needs);
    (5) Relationship and communication (including, but not limited to, 
working with clients in a collaborative manner); and
    (6) Developmental practice methods (including, but not limited to, 
utilizing methods focused on genuine relationships, health and safety, 
intervention planning).
    Counseling services means the provision of guidance, support, 
referrals for services including, but not limited to, health services, 
and advice to runaway or otherwise homeless youth and their families, as 
well as to youth and families when a young person is at risk of running 
away, as appropriate. These services are provided in consultation with 
clients and are designed to alleviate the problems that have put the 
youth at risk of running away or contributed to his or her running away 
or being homeless. Any treatment or referral to treatment that aims to 
change someone's sexual orientation, gender identity or gender 
expression is prohibited.
    Drop-in center means a place operated and staffed for runaway or 
homeless youth that clients can visit without an appointment to get 
advice or information, to receive services or service referrals, or to 
meet other runaway or homeless youth.
    Drug abuse education and prevention services means services to 
prevent or reduce drug and/or alcohol abuse by runaway and homeless 
youth, and may include: (1) Individual, family, group, and peer 
counseling; (2) drop-in services; (3) assistance to runaway and homeless 
youth in rural areas (including the development of community support 
groups); (4) information and training relating to drug and/or alcohol 
abuse by runaway and homeless youth for individuals involved in 
providing services to such youth; and (5) activities to improve the 
availability of local drug and/or alcohol abuse prevention services to 
runaway and homeless youth.

[[Page 266]]

    Education or employment means performance in and completion of 
educational and training activities, especially for younger youth, and 
starting and maintaining adequate and stable employment, particularly 
for older youth.
    Health care services means physical, mental, behavioral, and dental 
health services. It includes services provided to runaway and homeless 
youth and in the case of Maternity Group Homes also includes services 
provided to a pregnant youth and the child(ren) of the youth. Where 
applicable and allowable within a program, it includes information on 
appropriate health related services provided to family or household 
members of the youth. Any treatment or referral to treatment that aims 
to change someone's sexual orientation, gender identity or gender 
expression is prohibited.
    Home-based services means services provided to youth and their 
families for the purpose of preventing such youth from running away or 
otherwise becoming separated from their families and assisting runaway 
youth to return to their families. It includes services that are 
provided in the residences of families (to the extent practicable), 
including intensive individual and family counseling and training 
relating to life skills and parenting.
    Homeless youth means an individual who cannot live safely with a 
parent, legal guardian, or relative, and who has no other safe 
alternative living arrangement. For purposes of Basic Center Program 
eligibility, a homeless youth must be less than 18 years of age (or 
higher if allowed by a state or local law or regulation that applies to 
licensure requirements for child- or youth-serving facilities). For 
purposes of Transitional Living Program eligibility, a homeless youth 
cannot be less than 16 years of age and must be less than 22 years of 
age (unless the individual commenced his or her stay before age 22, and 
the maximum service period has not ended).
    Host family home means a family or single adult home or domicile, 
other than that of a parent or permanent legal guardian, that provides 
shelter to homeless youth.
    Intake means a process for gathering information to assess 
eligibility and the services required to meet the immediate needs of the 
client. The intake process may be operated independently but grantees 
should, at minimum, ensure they are working with their local Continuum 
of Care Program to ensure that referrals are coordinated and youth have 
access to all of the community's resources.
    Juvenile justice system means agencies that include, but are not 
limited to, juvenile courts, correctional institutions, detention 
facilities, law enforcement, training schools, or agencies that use 
probation, parole, and/or court ordered confinement.
    Maternity group home means a community-based, adult-supervised 
transitional living arrangement where client oversight is provided on 
site or on-call 24 hours a day and that provides pregnant or parenting 
youth and their children with a supportive environment in which to learn 
parenting skills, including child development, family budgeting, health 
and nutrition, and other skills to promote their long-term economic 
independence and ensure the well-being of their children.
    Outreach means finding runaway, homeless, and street youth, or youth 
at risk of becoming runaway or homeless, who might not use services due 
to lack of awareness or active avoidance, providing information to them 
about services and benefits, and encouraging the use of appropriate 
services.
    Permanent connections means ongoing attachments to families or adult 
role models, communities, schools, and other positive social networks 
which support young people's ability to access new ideas and 
opportunities that support thriving, and they provide a social safety 
net when young people are at-risk of re-entering homelessness
    Risk and protective factors mean those factors that are measureable 
characteristics of a youth that can occur at multiple levels, including 
biological, psychological, family, community, and cultural levels, that 
precede and are associated with an outcome. Risk factors are associated 
with higher likelihood of problematic outcomes, and protective factors 
are associated with higher likelihood of positive outcomes.

[[Page 267]]

    Runaway youth means an individual under 18 years of age who absents 
himself or herself from home or place of legal residence without the 
permission of a parent or legal guardian.
    Runaway and Homeless Youth project means a community-based program 
outside the juvenile justice or child welfare systems that provides 
runaway prevention, outreach, shelter, or transition services to 
runaway, homeless, or street youth or youth at risk of running away or 
becoming homeless.
    Safe and appropriate exits means settings that reflect achievement 
of the intended purposes of the Basic Center and Transitional Living 
Programs as outlined in section 382(a) of the Act. Examples of Safe and 
Appropriate Exits are exits:
    (1) To the private residence of a parent, guardian, another adult 
relative, or another adult that has the youth's best interest in mind 
and can provide a stable arrangement;
    (2) To another residential program if the youth's transition to the 
other residential program is consistent with the youth's needs; or
    (3) To independent living if consistent with the youth's needs and 
abilities.
    Safe and appropriate exits are not exits:
    (1) To the street;
    (2) To a locked correctional institute or detention center if the 
youth became involved in activities that lead to this exit after 
entering the program;
    (3) To another residential program if the youth's transition to the 
other residential program is inconsistent with the youth's needs; or
    (4) To an unknown or unspecified other living situation.
    Screening and assessment means valid and reliable standardized 
instruments and practices used to identify each youth's individual 
strengths and needs across multiple aspects of health, wellbeing and 
behavior in order to inform appropriate service decisions and provide a 
baseline for monitoring outcomes over time. Screening involves 
abbreviated instruments, for example with trauma and health problems, 
which can indicate certain youth for more thorough diagnostic 
assessments and service needs. Assessment, which is used here to mean 
assessment more broadly than for the purposes of diagnosis, involves 
evaluating multiple aspects of social, emotional, and behavioral 
competencies and functioning in order to inform service decisions and 
monitor outcomes.
    Service plan or treatment plan means a written plan of action based 
on the assessment of client needs and strengths and engaging in joint 
problem solving with the client that identifies problems, sets goals, 
and describes a strategy for achieving those goals. To the extent 
possible, the plan should incorporate the use of trauma informed, 
evidence-based, or evidence-informed interventions. As appropriate, the 
service and treatment plans should address both physical and mental 
safety issues.
    Short-term training means the provision of local, state, or 
regionally-based instruction to runaway or otherwise homeless youth 
service providers in skill areas that will directly strengthen service 
delivery.
    Social and emotional well-being means the development of key 
competencies, attitudes, and behaviors that equip a young person 
experiencing homelessness to avoid unhealthy risks and to succeed across 
multiple domains of daily life, including school, work, relationships, 
and community.
    Stable housing means a safe and reliable place to call home. Stable 
housing fulfills a critical and basic need for homeless youth. It is 
essential to enabling enable functioning across a range of life 
activities.
    State means any State of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the 
Northern Mariana Islands, and any territory or possession of the United 
States.
    Street youth means an individual who is a runaway youth or an 
indefinitely or intermittently homeless youth who spends a significant 
amount of time on the street or in other areas that increase the risk to 
such youth for sexual abuse, sexual exploitation, prostitution, or drug 
and/or alcohol abuse. For purposes of this definition, youth means an 
individual who is age 21 or less.
    Supervised apartments mean a type of shelter setting using 
building(s) with

[[Page 268]]

separate residential units where client supervision is provided on site 
or on call 24 hours a day.
    Technical assistance means the provision of expertise or support for 
the purpose of strengthening the capabilities of grantee organizations 
to deliver services.
    Temporary shelter means all Basic Center Program shelter settings in 
which runaway and homeless youth are provided room and board, crisis 
intervention, and other services on a 24-hour basis for up to 21 days. 
The 21 day restriction is on the use of RHY funds through the Basic 
Center Program, not a restriction on the length of stay permitted by the 
facility.

[81 FR 93058, Dec. 20, 2016]



           Subpart B_Runaway and Homeless Youth Program Grants



Sec.  1351.10  What is the purpose of Runaway and Homeless 
Youth Program grants?

    (a) The purpose of Runaway and Homeless Youth Program grants is to 
establish or strengthen community-based projects to provide runaway 
prevention, outreach, shelter, and transition services to runaway, 
homeless, or street youth or youth at risk of running away or becoming 
homeless.
    (b) Youth who have become homeless or who leave and remain away from 
home without parental permission are disproportionately subject to 
serious health, behavioral, and emotional problems. They lack sufficient 
resources to obtain care and may live on the street for extended 
periods, unable to achieve stable, safe living arrangements that at 
times put them in danger. Many are urgently in need of shelter, which, 
depending on the type of Runaway and Homeless Youth project, can include 
host family homes, drop-in centers, congregate care, or supervised 
apartments, and services, including services that are linguistically 
appropriate, responsive to their complex social identities (i.e., race, 
ethnicity, nationality, religion/spirituality, gender identity/
expression, sexual orientation, socioeconomic status, physical ability, 
language, beliefs, values, behavior patterns, or customs), and 
acknowledge the environment they come from. Runaway and Homeless Youth 
grant services should have a positive youth development approach that 
ensures a young person has a sense of safety and structure; belonging 
and membership; self-worth and social contribution; independence and 
control over one's life; skills to develop plans for the future and set 
goals; and closeness in interpersonal relationships. To make a 
successful transition to adulthood, runaway youth, homeless youth, and 
street youth also need opportunities to complete high school or earn a 
general equivalency degree, learn job skills, and obtain employment. HHS 
operates three programs to carry out these purposes through direct local 
services: The Basic Center Program; the Transitional Living Program 
(including Maternity Group Homes); and the Street Outreach Program. HHS 
operates three additional activities to support achievement of these 
purposes: Research, evaluation, and service projects; a national 
communications system to assist runaway and homeless youth in 
communicating with service providers; and technical assistance and 
training.

[81 FR 93060, Dec. 20, 2016]



Sec.  1351.11  Who is eligible to apply for a Runaway 
and Homeless Youth Program grant?

    Public (state and local) and private non-profit entities, and 
coordinated networks of such entities, are eligible to apply for a 
Runaway and Homeless Youth Program grant unless they are part of the 
juvenile justice system.

[81 FR 93060, Dec. 20, 2016]



Sec.  1351.12  Who gets priority for the award of a Runaway 
and Homeless Youth Program grant?

    (a) In selecting applications for grants under the Basic Center 
Program the Secretary shall give priority to--
    (1) Eligible applicants who have demonstrated experience in 
providing services to runaway and homeless youth; and
    (2) Eligible applicants that request grants of less than $200,000 or 
such figure as Congress may specify.
    (b) In selecting applications for grants under the Transitional 
Living

[[Page 269]]

Program, the Secretary shall give priority to entities that have 
experience in providing to homeless youth shelter (such as group homes, 
including maternity group homes, host family homes, and supervised 
apartments) and services (including information and counseling services 
in basic life skills which shall include money management, budgeting, 
consumer education, and use of credit, parenting skills (as 
appropriate), interpersonal skill building, educational advancement, job 
attainment skills, and mental and physical health care) to homeless 
youth.
    (c) In selecting applicants to receive grants under the Street 
Outreach Program, the Secretary shall give priority to public and 
nonprofit private agencies that have experience in providing services to 
runaway and homeless, and street youth.
    (d) In selecting grants for the national communication system to 
assist runaway and homeless youth in communicating with their families 
and with service providers, the Secretary shall give priority to grant 
applicants that have experience in providing electronic communications 
services to runaway and homeless youth, including telephone, Internet, 
mobile applications, and other technology-driven services.
    (e) In selecting grants for research, evaluation, demonstration and 
service projects, the Secretary shall give priority to proposed projects 
outlined in section 343(b) and (c) of the Act.
    (f) The Secretary shall integrate the performance standards outlined 
in Sec. Sec.  1351.30, 1351.31, or 1351.32 into the grantmaking, 
monitoring, and evaluation processes of the Basic Center Program, 
Transitional Living Program, and Street Outreach Program. Specific 
details about how performance standards will be considered, along with 
examples of performance documentation, will be provided in the annual 
funding opportunity announcements.

[81 FR 93060, Dec. 20, 2016]



Sec.  1351.13  What are the Federal and non-Federal match requirements 
under a Runaway and Homeless Youth Program grant?

    The federal share of the project represents 90 percent of the total 
project cost supported by the federal government. The remaining 10 
percent represents the required project match cost by the grantee. This 
may be a cash or in-kind contribution.

[81 FR 93060, Dec. 20, 2016]



Sec.  1351.14  What is the period for which a grant will be awarded?

    (a) The initial notice of grant award specifies how long HHS intends 
to support the project without requiring the project to recompete for 
funds. This period, called the project period, will not exceed five 
years.
    (b) Generally the grant will initially be for one year. A grantee 
must submit a separate application to have the support continued for 
each subsequent year. Continuation awards within the project period will 
be made provided the grantee has made satisfactory progress, funds are 
available, and HHS determines that continued funding is in the best 
interest of the Government.

[43 FR 55635, Nov. 28, 1978, as amended at 65 FR 50141, Aug. 17, 2000]



Sec.  1351.15  What costs are supportable under a Runaway and Homeless 
Youth Program grant?

    (a) For all grant programs, costs that can be supported include, but 
are not limited to, staff training and core services such as outreach, 
intake, case management, data collection, temporary shelter, 
transitional living arrangements, referral services, counseling 
services, and aftercare services. Costs for acquisition and renovation 
of existing structures may not normally exceed 15 percent of the grant 
award. HHS may waive this limitation upon written request under special 
circumstances based on demonstrated need.
    (b) For grants that support research, evaluation, and service 
projects; a national communications system to assist runaway and 
homeless youth in communicating with service providers; and for 
technical assistance and training grants; costs that can be supported 
include those enumerated above as well as services such as data 
collection and analysis, telecommunications services,

[[Page 270]]

and preparation and publication of materials in support of the purposes 
of such grants.

[81 FR 93060, Dec. 20, 2016]



Sec.  1351.16  What costs are not allowable under a Runaway and Homeless 
Youth Program grant?

    (a) A Runaway and Homeless Youth Program grant does not cover the 
capital costs of constructing new facilities, or operating costs of 
existing community centers or other facilities that are used partially 
or incidentally for services to runaway or homeless youth clients, 
except to the extent justified by application of cost allocation methods 
accepted by HHS as reasonable and appropriate.
    (b) A Runaway and Homeless Youth Program grant does not cover any 
treatment or referral to treatment that aims to change someone's sexual 
orientation, gender identity or gender expression.

[81 FR 93061, Dec. 20, 2016]



Sec.  1351.17  How is application made for a Runaway and Homeless 
Youth Program grant?

    An applicant should follow instructions included in funding 
opportunity announcements, which describe procedures for receipt and 
review of applications.

[81 FR 93061, Dec. 20, 2016]



Sec.  1351.18  What criteria has HHS established for deciding which Runaway 
and Homeless Youth Program grant applications to fund?

    In reviewing applications for a Runaway and Homeless Youth Program 
grant, HHS takes into consideration a number of factors, including, but 
not limited to:
    (a) Whether the grant application meets the particular priorities, 
requirements, standards, or evaluation criteria established in funding 
opportunity announcements;
    (b) A need for Federal support based on the likely number of 
estimated runaway or otherwise homeless youth in the area in which the 
Runaway and Homeless Youth project is or will be located exceeding the 
availability of existing services for such youth in that area;
    (c) For runaway and homeless youth centers, whether there is a 
minimum residential capacity of four (4) and a maximum residential 
capacity of twenty (20) youth in a single structure (except where the 
applicant assures that the state where the center or locally controlled 
facility is located has a state or local law or regulation that requires 
a higher maximum to comply with licensure requirements for child and 
youth serving facilities), or within a single floor of a structure in 
the case of apartment buildings, with a number of staff sufficient to 
assure adequate supervision and treatment for the number of clients to 
be served and the guidelines followed for determining the appropriate 
staff ratio;
    (d) Plans for meeting the best interests of the youth involving, 
when reasonably possible, both the youth and the family. For Basic 
Center grantee applicants, the grantee shall develop adequate plans for 
contacting the parents or other relatives of the youth and ensuring the 
safe return of the youth according to the best interests of the youth, 
for contacting local government officials pursuant to informal 
arrangements established with such officials by the runaway and homeless 
youth center, and for providing for other appropriate alternative living 
arrangements;
    (e) Plans for the delivery of aftercare or counseling services to 
runaway or otherwise homeless youth and their families;
    (f) Whether the estimated cost to HHS for the Runaway and Homeless 
Youth project is reasonable considering the anticipated results;
    (g) Whether the proposed personnel are well qualified and the 
applicant agency has adequate facilities and resources;
    (h) Past performance on a RHY grant, including but not limited to 
program performance standards;
    (i) Whether the proposed project design, if well executed, is 
capable of attaining program objectives;
    (j) The consistency of the grant application with the provisions of 
the Act and these regulations; and

[[Page 271]]

    (k) Other factors as outlined in funding opportunity announcements.

[81 FR 93061, Dec. 20, 2016]



                    Subpart C_Additional Requirements

    Source: 81 FR 93061, Dec. 20, 2016, unless otherwise noted.



Sec.  1351.20  What Government-wide and HHS-wide regulations apply 
to these programs?

    A number of other rules and regulations apply or potentially apply 
to applicants and grantees. These include:
    (a) 2 CFR part 182--Government-wide Requirements for Drug Free 
Workplace;
    (b) 2 CFR part 376--Nonprocurement Debarment and Suspension
    (c) 45 CFR part 16--Procedures of the Departmental Grant Appeals 
Board;
    (d) 45 CFR part 30--Claims Collection;
    (e) 45 CFR part 46--Protection of Human Subjects;
    (f) 45 CFR part 75--Uniform Administrative Requirements, Cost 
principles, and Audit Requirements for HHS Awards, including 
nondiscrimination requirements.
    (g) 45 CFR part 80--Nondiscrimination Under Programs Receiving 
Federal Assistance Through the Department of Health and Human Services 
Effectuation of Title VI of the Civil Rights Act of 1964;
    (h) 45 CFR part 81--Practice and Procedure for Hearings Under part 
80;
    (i) 45 CFR part 84--Nondiscrimination on the Basis of Handicap in 
Programs or Activities Receiving Federal Financial Assistance;
    (j) 45 CFR part 86--Nondiscrimination on the Basis of Sex in 
Education Programs or Activities receiving Federal Financial Assistance;
    (k) 45 CFR part 87--Equal Treatment for Faith Based Organizations;
    (l) 45 CFR part 91--Nondiscrimination on the Basis of Age in 
Programs or Activities Receiving Federal Financial Assistance;
    (m) 45 CFR part 92--Nondiscrimination in Health Programs and 
Activities; and
    (n) 45 CFR part 93--New Restrictions on Lobbying.



Sec.  1351.21  What confidentiality requirements apply to these programs?

    Several program policies regarding confidentiality of information, 
treatment, conflict of interest and state protection apply to recipients 
of Runaway and Homeless Youth Program grants. These include:
    (a) Confidential information. Pursuant to the Act, no records 
containing the identity of individual youth, including but not limited 
to lists of names, addresses, photographs, or records of evaluation of 
individuals served by a Runaway and Homeless Youth project, may be 
disclosed or transferred to any individual or to any public or private 
agency except:
    (1) For Basic Center Program grants, records maintained on 
individual runaway and homeless youth shall not be disclosed without the 
informed consent of the individual youth and parent or legal guardian to 
anyone other than another agency compiling statistical records or a 
government agency involved in the disposition of criminal charges 
against an individual runaway and homeless youth;
    (2) For Transitional Living Programs, records maintained on 
individual homeless youth shall not be disclosed without the informed 
consent of the individual youth to anyone other than an agency compiling 
statistical records;
    (3) Research, evaluation, and statistical reports funded by grants 
provided under section 343 of the Act are allowed to be based on 
individual data, but only if such data are de-identified in ways that 
preclude disclosing information on identifiable individuals; and
    (4) Youth served by a Runaway and Homeless Youth project shall have 
the right to review their records; to correct a record or file a 
statement of disagreement; and to be apprised of the individuals who 
have reviewed their records.
    (b) State law protection. HHS policies regarding confidential 
information and experimentation and treatment shall not apply if HHS 
finds that state law is more protective of the rights of runaway or 
otherwise homeless youth.
    (c) Procedures shall be established for the training of project 
staff in the protection of these rights and for the secure storage of 
records.

[[Page 272]]



Sec.  1351.22  What additional requirements apply to these programs?

    (a) Non-discriminatory and culturally and linguistically sensitive 
services and training. Service delivery and staff training must 
comprehensively address the individual strengths and needs of youth as 
well as be language appropriate, gender appropriate (interventions that 
are sensitive to the diverse experiences of male, female, and 
transgender youth and consistent with the gender identity of 
participating youth), and culturally sensitive and respectful of the 
complex social identities of youth (i.e., race, ethnicity, nationality, 
age, religion/spirituality, gender identity/expression, sexual 
orientation, socioeconomic status, physical or cognitive ability, 
language, beliefs, values, behavior patterns, or customs). No runaway 
youth or homeless youth shall, on any of the foregoing bases, be 
excluded from participation in, be denied the benefits of, or be subject 
to discrimination under, any program or activity funded in whole or in 
part under the Runaway and Homeless Youth Act.
    (1) The criteria that grantees adopt to determine eligibility for 
the program, or any activity or service, may include an assessment of 
the needs of each applicant, and the health and safety of other 
beneficiaries, among other factors.
    (2) [Reserved]
    (b) Medical, psychiatric or psychological treatment. No youth shall 
be subject to medical, psychiatric, or psychological treatment without 
the consent of the youth and, for youth under the age of emancipation in 
their state of residence, consent of a parent or guardian, if required 
by state law.
    (c) Conflict of interest. Employees or individuals participating in 
a program or project under the Act shall not use their positions for a 
purpose that is, or gives the appearance of being, motivated by a desire 
for private gain for themselves or others, particularly those with whom 
they have family, business or other ties.



Sec.  1351.23  What are the additional requirements that apply to 
the Basic Center, Transitional Living and Street Outreach Program grants?

    To improve the administration of these Runaway and Homeless Youth 
Programs by increasing the capacity of Runaway and Homeless Youth 
projects to deliver services, by improving their performance in 
delivering services, and by providing for the evaluation of performance:
    (a) Grantees shall participate in technical assistance, monitoring, 
and short-term training as a condition of funding, as determined 
necessary by HHS, in such areas as: Aftercare services and counseling; 
background checks; core competencies of youth workers; core support 
services; crisis intervention techniques; culturally and linguistically 
sensitive services; participation in or development of coordinated 
networks of private nonprofit agencies and/or public agencies to provide 
services; ethics and staff safety; fiscal management; low cost community 
alternatives for runaway or otherwise homeless youth; positive youth 
development; program management; risk and protective factors related to 
youth homelessness; screening and assessment practices; shelter facility 
staff development; special populations (tribal youth; lesbian, gay, 
bisexual, transgender, questioning (LGBTQ), and intersex youth; youth 
with disabilities; youth victims of trafficking, sexual exploitation or 
sexual abuse); trauma and the effects of trauma on youth; use of 
evidence-based and evidence-informed interventions; and youth and family 
counseling. It is not a requirement that every staff person receives 
training in every subject but all staff members who work directly with 
youth should receive training sufficient to meet the stated core-
competencies of youth workers.
    (b) Grantees shall coordinate their activities with the 24-hour 
National toll-free and Internet communication system, which links 
Runaway and Homeless Youth projects and other service providers with 
runaway or otherwise homeless youth, as appropriate to the specific 
activities provided by the grantee.

[[Page 273]]

    (c) Grantees shall submit statistical reports profiling the clients 
served and providing management and performance information in 
accordance with guidance provided by HHS.
    (d) Grantees shall perform outreach to locate runaway and homeless 
youth and to coordinate activities with other organizations serving the 
same or similar client populations, such as child welfare agencies, 
juvenile justice systems, schools, and Continuums of Care, as defined by 
HUD.
    (e) Grantees shall develop and implement a plan for addressing youth 
who have run away from foster care placement or correctional 
institutions, in accordance with federal, state, or local laws or 
regulations that apply to these situations. In accordance with section 
312(b)(4) of the Act, Basic Center grantees must also develop a plan 
that ensures the return of runaway and homeless youth who have run away 
from the correctional institution back to the correctional institution.
    (f) Grantees shall take steps to ensure that youth who are or should 
be under the legal jurisdiction of the juvenile justice or child welfare 
systems obtain and receive services from those systems until such time 
as they are released from the jurisdiction of those systems.
    (g) Grantees shall develop and document plans that address steps to 
be taken in case of a local or national situation that poses risk to the 
health and safety of staff and youth. Emergency preparedness plans 
should, at a minimum, include routine preventative maintenance of 
facilities as well as preparedness, response, and recovery efforts. The 
plan should contain strategies for addressing evacuation, security, 
food, medical supplies, and notification of youths' families, as 
appropriate. In the event of an evacuation due to specific facility 
issues, such as a fire, loss of utilities, or mandatory evacuation by 
the local authorities, an alternative location needs to be designated 
and included in the plan. Grantees must immediately provide notification 
to their project officer and grants officer when evacuation plans are 
executed.
    (h) Grantees shall ensure that all shelters that they operate are 
licensed and determine that any shelters to which they regularly refer 
clients have evidence of current licensure, in states or localities with 
licensure requirements. Grantees shall promptly report to HHS instances 
in which shelters are cited for failure to meet licensure or related 
requirements, or lose licensure. For grantee-operated facilities, 
failure to meet any applicable state or local legal requirements as a 
condition of operation may be grounds for grant termination.
    (i) Grantees shall utilize and integrate into the operation of their 
projects the principles of positive youth development, including healthy 
messages, safe and structured places, adult role models, skill 
development, and opportunities to serve others.
    (j) No later than October 1, 2017, grantees shall have a plan, 
procedures, and standards for ensuring background checks on all 
employees, contractors, volunteers, and consultants who have regular and 
unsupervised private contact with youth served by the grantee, and on 
all adults who reside in or operate host homes. The plans, procedures, 
and standards must identify the background check findings that would 
disqualify an applicant from consideration for employment to provide 
services for which assistance is made available in accordance with this 
part.
    (1) Required background checks include:
    (i) State or tribal criminal history records, including fingerprint 
checks;
    (ii) Federal Bureau of Investigation criminal history records, 
including fingerprint checks, to the extent FSYB determines this to be 
practicable and specifies the requirement in a Funding Opportunity 
Announcement that is applicable to a grantee's award;
    (iii) Child abuse and neglect state registry check, to the extent 
FSYB determines this to be practicable and specifies the requirement in 
a Funding Opportunity Announcement that is applicable to a grantee's 
award;
    (iv) Sex offender registry check; and,
    (v) Any other checks required under state or tribal law.
    (2) Programs must document the justification for any hire where an 
arrest, pending criminal charge or conviction, is present.

[[Page 274]]

    (k) Grantees shall provide such other services and meet such 
additional requirements as HHS determines are necessary to carry out the 
purposes of the statute, as appropriate to the services and activities 
for which they are funded. These services and requirements are 
articulated in the funding opportunity announcements and other 
instructions issued by the Secretary or secretarial designees. This 
includes operational instructions and standards of execution determined 
by the Secretary or secretarial designees to be necessary to properly 
perform or document meeting the requirements applicable to particular 
programs or projects.



Sec.  1351.24  What are the additional requirements that the Basic Center 
Program grantees must meet?

    (a) Grantees shall have an intake procedure that is available 24 
hours a day and 7 days a week to all youth seeking services and 
temporary shelter that addresses and responds to immediate needs for 
crisis counseling, food, clothing, shelter, and health care services.
    (b) Grantees shall provide, either directly or through arrangements, 
access to temporary shelter 24 hours a day and 7 days a week.
    (c) Grantees shall provide trauma-informed case management, 
counseling and referral services that meet client needs and that 
encourage, when in the best interests of the youth particularly with 
regard to safety, the involvement of parents or legal guardians.
    (d) Grantees shall provide additional core support services to 
clients both residentially and non-residentially as appropriate. The 
core services must include case planning, skill building, recreation and 
leisure activities.
    (e) Grantees shall, as soon as feasible and no later than 72 hours 
of the youth entering the program, contact the parents, legal guardians 
or other relatives of each youth according to the best interests of the 
youth. If a grantee determines that it is not in the best interest of 
the client to contact the parents, legal guardian or other relatives of 
the client, or if the grantee is unable to locate, or the youth refuses 
to disclose the contact information of, the parent, legal guardian or 
other relative of the client, they must:
    (1) Inform another adult identified by the child;
    (2) Document why it is not in the client's best interest to contact 
the parent, legal guardian or other relative, or why they are not able 
to contact the parent, legal guardian or other relative; and
    (3) Send a copy of the documentation to the regional program 
specialist for review.
    (f) Additional requirements included in the funding opportunity 
announcement.



Sec.  1351.25  What are the additional requirements that the Transitional 
Living Program and Maternity Group Home grantees must meet?

    (a) Grantees shall provide transitional living arrangements and 
additional core services including case planning/management, counseling, 
skill building, consumer education, referral to needed social and health 
care services, and education, recreation and leisure activities, 
aftercare and, as appropriate to grantees providing maternity-related 
services, parenting skills, child care, and child nutrition.
    (b) Additional requirements included in the funding opportunity 
announcement.



Sec.  1351.26  What are the additional requirements that both the Basic Center 
and Transitional Living Program grantees must meet?

    (a) Basic Center and Transitional Living grantees shall develop and 
implement an aftercare plan, covering at least 3 months, to stay in 
contact with youth who leave the program in order to ensure their 
ongoing safety and access to services. A youth's individual aftercare 
plan shall outline what services were and will be provided as well as 
the youth's housing status during and after the program. The plan shall 
be provided to the youth in exit counseling or before. Follow-up efforts 
shall be made for all youth. For those contacted after 3 months, the 
plan shall be updated to record the rate of participation and completion 
of the services in the plan at 3 months after exiting the program. In 
accordance with section 312(b)(5) of the Act, as possible, Basic

[[Page 275]]

Center grantees shall also provide a plan for providing counseling and 
aftercare services to youth who are returned beyond the state in which 
the runaway and homeless youth service is located.
    (b) Basic Center and Transitional Living grantees shall develop and 
implement a plan for health care services referrals for youth during the 
service and aftercare periods. Such referral plans shall include health 
care services and referrals and counseling on insurance coverage through 
family health insurance plans, or to agencies that assist in enrolling 
persons in Medicaid or in insurance plans offered under Affordable Care 
Act exchanges.
    (c) Basic Center and Transitional Living grantees shall develop and 
implement a plan to assist youth to stay connected with their schools or 
to obtain appropriate educational services, training, or employment 
services. This includes coordination with McKinney-Vento school district 
liaisons, designated under the McKinney-Vento Homeless Assistance Act, 
to assure that runaway and homeless youth are provided information about 
the services available under that Act. This also includes coordination 
with local employment and employment training coordinating agencies or 
programs, coordination with local college placement services, and 
providing access to the Free Application for Federal Student Aid (FAFSA) 
application.



Sec.  1351.27  What are the additional requirements that the Street Outreach 
Program grantees must meet?

    (a) Grantees shall provide services that are designed to assist 
clients in leaving the streets, making healthy choices, and building 
trusting relationships in areas where targeted youth congregate.
    (b) Grantees shall directly or by referral provide treatment, 
counseling, prevention, and education services to clients as well as 
referral for emergency shelter.
    (c) Additional requirements included in the funding opportunity 
announcement.



   Subpart D_What are the Runaway and Homeless Youth Program-Specific 
                         Performance Standards?

    Source: 81 FR 93064, Dec. 20, 2016, unless otherwise noted.



Sec.  1351.30  What performance standards must Basic Center Program 
grantees meet?

    (a)(1) Grantees shall consistently enhance outcomes for youth in the 
following four core areas:
    (i) Social and Emotional Well-being;
    (ii) Permanent Connections;
    (iii) Education or Employment; and
    (iv) Stable Housing.
    (2) Each grantee shall report data related to these outcomes, using 
existing data collection processes found under PRA OMB Control Numbers 
0970-0406 and 0970-0123, and their successors.
    (b) Grantees shall ensure that youth receive counseling services 
that are trauma informed and match the individual needs of each client. 
Data shall be reported by each grantee on the type of counseling each 
youth received (individual, family and/or group counseling), the 
participation rate based on a youth's service plan or treatment plan, 
and the completion rate based on a youth's service plan or treatment 
plan, where applicable.
    (c) Grantees that choose to provide street-based services, home-
based services, drug and/or alcohol abuse education and prevention 
services, and/or testing for sexually transmitted diseases (at the 
request of the youth) shall ensure youth receive the appropriate 
services. Data shall be reported on the completion rate for each service 
provided based on the youth's service or treatment plan.
    (d) Grantees shall ensure that youth have safe and appropriate exits 
when leaving the program. Each grantee shall report data on the type of 
exit experienced by each young person departing a Basic Center Program.

[[Page 276]]



Sec.  1351.31  What performance standards must Transitional Living 
Program grantees, including Maternity Group Homes, meet?

    (a)(1) Grantees shall consistently enhance outcomes for youth in the 
following four core areas:
    (i) Social and Emotional Well-being;
    (ii) Permanent Connections;
    (iii) Education or Employment; and
    (iv) Stable Housing.
    (2) Each grantee shall report data related to these outcomes, using 
existing data collection and reporting processes, in accordance with the 
Paperwork Reduction Act and the Office of Management and Budget Control 
Numbers 0970-0406 and 0970-0123, and their successors.
    (b) Grantees shall ensure youth are engaged in educational 
advancement, job attainment skills or work activities while in the 
program. Each grantee shall report data on the type of education or job-
related activities that each youth is engaged in.
    (c) Grantees shall ensure and report that youth receive health care 
referrals, including both services and insurance, as determined within 
their health care referral plan.
    (d) Maternity Group Home Grantees shall ensure and report that youth 
receive consistent pre-natal care, well-baby exams, and immunizations 
for the infant while in the program.
    (e) Grantees shall ensure that youth have safe and appropriate exits 
when leaving the program. Each grantee shall report data on the type of 
exit experienced by each young person departing a Transitional Living 
Program.



Sec.  1351.32  What performance standards must Street Outreach Program 
grantees meet?

    Grantees shall contact youth who are or who are at risk of homeless 
or runaway status on the streets in numbers that are reasonably 
attainable for the staff size of the project. Grantees with larger staff 
will be expected to contact larger numbers of youth in approximate 
proportion, as determined by HHS, to the larger number of staff 
available to provide this service. Each grantee shall report data 
related to this outcome, using existing data collection and reporting 
processes, in accordance with the Paperwork Reduction Act and the Office 
of Management and Budget Control Numbers 0970-0406 and 0970-0123, and 
their successors.

[[Page 277]]



SUBCHAPTER G_THE ADMINISTRATION ON CHILDREN, YOUTH AND FAMILIES, FOSTER 
  CARE MAINTENANCE PAYMENTS, ADOPTION ASSISTANCE, AND CHILD AND FAMILY 
                                SERVICES





PART 1355_GENERAL--Table of Contents



Sec.
1355.10 Scope.
1355.20 Definitions.
1355.21 Plan requirements for titles IV-E and IV-B.
1355.25 Principles of child and family services.
1355.30 Other applicable regulations.
1355.31 Elements of the child and family services review system.
1355.32 Timetable for the reviews.
1355.33 Procedures for the review.
1355.34 Criteria for determining substantial conformity.
1355.35 Program improvement plans.
1355.36 Withholding Federal funds due to failure to achieve substantial 
          conformity or failure to successfully complete a program 
          improvement plan.
1355.37 Opportunity for public inspection of review reports and 
          materials.
1355.38 Enforcement of section 471(a)(18) of the Act regarding the 
          removal of barriers to interethnic adoption.
1355.39 Administrative and judicial review.
1355.40 Foster care and adoption data collection.
1355.41 Scope of the Adoption and Foster Care Analysis and Reporting 
          System.
1355.42 Reporting populations.
1355.43 Data reporting requirements.
1355.44 Out-of-home care data file elements.
1355.45 Adoption and guardianship assistance data file elements.
1355.46 Compliance.
1355.47 Penalties.
1355.50 Purpose.
1355.51 Definitions applicable to Comprehensive Child Welfare 
          Information Systems (CCWIS).
1355.52 CCWIS project requirements.
1355.53 CCWIS design requirements.
1355.54 CCWIS options.
1355.55 Review and assessment of CCWIS projects.
1355.56 Requirements for S/TACWIS and non-S/TACWIS projects during and 
          after the transition period.
1355.57 Cost allocation for CCWIS projects.
1355.58 Failure to meet the conditions of the approved APD.
1355.59 [Reserved]

Appendix A to Part 1355--Foster Care Data Elements.
Appendix B to Part 1355--Adoption Data Elements.
Appendix C to Part 1355--Electronic Data Transmission Format.
Appendix D to Part 1355--Foster Care and Adoption Record Layouts.
Appendix E to Part 1355--Data Standards.

    Authority: 42 U.S.C. 620 et seq., 42 U.S.C. 670 et seq.; 42 U.S.C. 
1302.



Sec.  1355.10  Scope.

    Unless otherwise specified, part 1355 applies to States and Indian 
Tribes and contains general requirements for Federal financial 
participation under titles IV-B and IV-E of the Social Security Act.

[61 FR 58653, Nov. 18, 1996]



Sec.  1355.20  Definitions.

    (a) Unless otherwise specified, the following terms as they appear 
in 45 CFR parts 1355, 1356 and 1357 of this title are defined as 
follows--
    Act means the Social Security Act, as amended.
    ACYF means the Administration on Children, Youth and Families, 
Administration for Children and Families (ACF), U. S. Department of 
Health and Human Services.
    Adoption means the method provided by State law, or for a Tribal 
title IV-E agency, Tribal law, which establishes the legal relationship 
of parent and child between persons who are not so related by birth, 
with the same mutual rights and obligations that exist between children 
and their birth parents. This relationship can only be termed 
``adoption'' after the legal process is complete.
    Child abuse and neglect means the definition contained in 42 U.S.C. 
5106(g)(2).
    Child care institution means a private child care institution, or a 
public child care institution which accommodates no more than twenty-
five children, and is licensed by the licensing authority responsible 
for licensing or approval of institutions of this type as meeting the 
standards established for such licensing. The licensing authority must 
be a State authority in the State in which

[[Page 278]]

the child care institution is located, a Tribal authority with respect 
to a child care institution on or near an Indian Reservation, or a 
Tribal authority of a Tribal title IV-E agency with respect to a child 
care institution in the Tribal title IV-E agency's service area. This 
definition must not include detention facilities, forestry camps, 
training schools, or any other facility operated primarily for the 
detention of children who are determined to be delinquent.
    Commissioner means the Commissioner on Children, Youth and Families, 
Administration for Children and Families, U.S. Department of Health and 
Human Services.
    Date a child is considered to have entered foster care means the 
earlier of: The date of the first judicial finding that the child has 
been subjected to child abuse or neglect; or, the date that is 60 
calendar days after the date on which the child is removed from the home 
pursuant to Sec.  1356.21(k). A title IV-E agency may use a date earlier 
than that required in this definition, such as the date the child is 
physically removed from the home. This definition determines the date 
used in calculating all time period requirements for the periodic 
reviews, permanency hearings, and termination of parental rights 
provision in section 475(5) of the Act and for providing time-limited 
reunification services described at section 431(a)(7) of the Act. The 
definition has no relationship to establishing initial title IV-E 
eligibility.
    Department means the United States Department of Health and Human 
Services.
    Detention facility in the context of the definition of child care 
institution in section 472(c)(2) of the Act means a physically 
restricting facility for the care of children who require secure custody 
pending court adjudication, court disposition, execution of a court 
order or after commitment.
    Entity, as used in Sec.  1355.38, means any organization or agency 
(e.g., a private child placing agency) that is separate and independent 
of the title IV-E agency; performs title IV-E functions pursuant to a 
contract or subcontract with the title IV-E agency; and, receives title 
IV-E funds. A State or Tribal court is not an ``entity'' for the 
purposes of Sec.  1355.38 except if an administrative arm of the State 
or Tribal court carries out title IV-E administrative functions pursuant 
to a contract with the title IV-E agency.
    Foster care means 24-hour substitute care for children placed away 
from their parents or guardians and for whom the title IV-E agency has 
placement and care responsibility. This includes, but is not limited to, 
placements in foster family homes, foster homes of relatives, group 
homes, emergency shelters, residential facilities, child care 
institutions, and preadoptive homes. A child is in foster care in 
accordance with this definition regardless of whether the foster care 
facility is licensed and payments are made by the State, Tribal or local 
agency for the care of the child, whether adoption subsidy payments are 
being made prior to the finalization of an adoption, or whether there is 
Federal matching of any payments that are made.
    Foster care maintenance payments are payments made on behalf of a 
child eligible for title IV-E foster care to cover the cost of (and the 
cost of providing) food, clothing, shelter, daily supervision, school 
supplies, a child's personal incidentals, liability insurance with 
respect to a child, and reasonable travel for a child's visitation with 
family, or other caretakers. Local travel associated with providing the 
items listed above is also an allowable expense. In the case of child 
care institutions, such term must include the reasonable costs of 
administration and operation of such institutions as are necessarily 
required to provide the items described in the preceding sentences. 
``Daily supervision'' for which foster care maintenance payments may be 
made includes:
    (1) Foster family care--licensed child care, when work 
responsibilities preclude foster parents from being at home when the 
child for whom they have care and responsibility in foster care is not 
in school, licensed child care when the foster parent is required to 
participate, without the child, in activities associated with parenting 
a child in foster care that are beyond the scope of ordinary parental 
duties, such

[[Page 279]]

as attendance at administrative or judicial reviews, case conferences, 
or foster parent training. Payments to cover these costs may be: 
included in the basic foster care maintenance payment; a separate 
payment to the foster parent, or a separate payment to the child care 
provider; and
    (2) Child care institutions--routine day-to-day direction and 
arrangements to ensure the well-being and safety of the child.
    Foster family home means, for the purpose of title IV-E eligibility, 
the home of an individual or family licensed or approved as meeting the 
standards established by the licensing or approval authority(ies), that 
provides 24-hour out-of-home care for children. The licensing authority 
must be a State authority in the State in which the foster family home 
is located, a Tribal authority with respect to a foster family home on 
or near an Indian Reservation, or a Tribal authority of a Tribal title 
IV-E agency with respect to a foster family home in the Tribal title IV-
E agency's service area. The term may include group homes, agency-
operated boarding homes or other facilities licensed or approved for the 
purpose of providing foster care by the State or Tribal agency 
responsible for approval or licensing of such facilities. Foster family 
homes that are approved must be held to the same standards as foster 
family homes that are licensed. Anything less than full licensure or 
approval is insufficient for meeting title IV-E eligibility 
requirements. Title IV-E agencies may, however, claim title IV-E 
reimbursement during the period of time between the date a prospective 
foster family home satisfies all requirements for licensure or approval 
and the date the actual license is issued, not to exceed 60 days.
    Full review means the joint Federal and title IV-E agency review of 
all federally-assisted child and family services programs, including 
family preservation and support services, child protective services, 
foster care, adoption, and independent living services, for the purpose 
of determining the title IV-E agency's substantial conformity with the 
plan requirements of titles IV-B and IV-E as listed in Sec.  1355.34 of 
this part. A full review consists of two phases, the statewide 
assessment (or for a Tribal title IV-E agency, an assessment of the 
service area) and a subsequent on-site review, as described in Sec.  
1355.33 of this part.
    Legal guardianship means a judicially-created relationship between 
child and caretaker which is intended to be permanent and self-
sustaining as evidenced by the transfer to the caretaker of the 
following parental rights with respect to the child: protection, 
education, care and control of the person, custody of the person, and 
decision-making. The term legal guardian means the caretaker in such a 
relationship.
    National Child Abuse and Neglect Data System (NCANDS) means the 
voluntary national data collection and analysis system established by 
the Administration for Children and Families in response to a 
requirement in the Child Abuse Prevention and Treatment Act (Pub. L. 93-
247), as amended.
    Partial review means:
    (1) For the purpose of the child and family services review, the 
joint Federal and State/Tribal review of one or more federally-assisted 
child and family services program(s), including family preservation and 
support services, child protective services, foster care, adoption, and 
independent living services. A partial review may consist of any of the 
components of the full review, as mutually agreed upon by the title IV-E 
agency and the Administration for Children and Families as being 
sufficient to determine substantial conformity of the reviewed 
components with the plan requirements of titles IV-B and IV-E as listed 
in Sec.  1355.34 of this part;
    (2) For the purpose of title IV-B and title IV-E State plan 
compliance issues that are outside the prescribed child and family 
services review format, e.g., compliance with AFCARS requirements, a 
review of State laws, policies, regulations, or other information 
appropriate to the nature of the concern, to determine State compliance; 
or
    (3) For the purpose of title IV-E plan compliance issues for a 
Tribal title IV-E agency which are outside of the prescribed child and 
family services review format, a review of Tribal laws,

[[Page 280]]

policies, regulations, or other information appropriate to the nature of 
the concern, to determine plan compliance.
    Permanency hearing means:
    (1) The hearing required by section 475(5)(C) of the Act to 
determine the permanency plan for a child in foster care. Within this 
context, the court (including a Tribal court) or administrative body 
determines whether and, if applicable, when the child will be:
    (i) Returned to the parent;
    (ii) Placed for adoption, with the title IV-E agency filing a 
petition for termination of parental rights;
    (iii) Referred for legal guardianship;
    (iv) Placed permanently with a fit and willing relative; or
    (v) Placed in another planned permanent living arrangement, but only 
in cases where the title IV-E agency has documented to the State or 
Tribal court a compelling reason for determining that it would not be in 
the best interests of the child to follow one of the four specified 
options above.
    (2) The permanency hearing must be held no later than 12 months 
after the date the child is considered to have entered foster care in 
accordance with the definition at Sec.  1355.20 of this part or within 
30 days of a judicial determination that reasonable efforts to reunify 
the child and family are not required. After the initial permanency 
hearing, subsequent permanency hearings must be held not less frequently 
than every 12 months during the continuation of foster care. The 
permanency hearing must be conducted by a family or juvenile court or 
another court of competent jurisdiction or by an administrative body 
appointed or approved by the court which is not a part of or under the 
supervision or direction of the title IV-E agency. Paper reviews, ex 
parte hearings, agreed orders, or other actions or hearings which are 
not open to the participation of the parents of the child, the child (if 
of appropriate age), and foster parents or preadoptive parents (if any) 
are not permanency hearings.
    State means, for title IV-B, the 50 States, the District of 
Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin Islands, the 
Commonwealth of the Northern Mariana Islands, and American Samoa. For 
title IV-E the term ``State'' means the 50 States, the District of 
Columbia, the Commonwealth of Puerto Rico, the United States Virgin 
Islands, Guam, and American Samoa.
    State agency means the State agency administering or supervising the 
administration of the title IV-B and title IV-E State plans and the 
title XX social services block grant program. An exception to this 
requirement is permitted by section 103(d) of the Adoption Assistance 
and Child Welfare Act of 1980 (Pub. L. 96-272). Section 103(d) provides 
that, if on December 1, 1974, the title IV-B program (in a State or 
local agency) and the social services program under section 402(a)(3) of 
the Act (the predecessor program to title XX) were administered by 
separate agencies, that separate administration of the programs could 
continue at State option.
    Statewide assessment (or Tribal assessment) means the initial phase 
of a full review of all federally-assisted child and family services 
programs in the States (or for a Tribal title IV-E agency, in the 
service area), including family preservation and support services, child 
protective services, foster care, adoption, and independent living 
services as described in Sec.  1355.33(b) of this part, for the purpose 
of determining substantial conformity with the plan requirements of 
titles IV-B and IV-E as listed in Sec.  1355.34 of this part.
    Title IV-E agency means the State or Tribal agency administering or 
supervising the administration of the title IV-B and title IV-E plans.
    Tribal agency means, for the purpose of title IV-E, the agency of 
the Indian Tribe, Indian Tribal organization (as those terms are defined 
in section 479B(a) of the Act) or consortium of Indian Tribes that is 
administering or supervising the administration of the title IV-E and 
title IV-B, subpart 1 plan.
    (b) Unless otherwise specified, the definitions contained in section 
475 of the Act apply to all programs under titles IV-E and IV-B of the 
Act.

[48 FR 23114, May 23, 1983, as amended at 57 FR 30429, July 9, 1992; 58 
FR 67924, Dec. 22, 1993; 61 FR 58653, Nov. 18, 1996; 65 FR 4076, Jan. 
25, 2000; 66 FR 58675, Nov. 23, 2001; 77 FR 925, Jan. 6, 2012]

[[Page 281]]



Sec.  1355.21  Plan requirements for titles IV-E and IV-B.

    (a) The plans for titles IV-E and IV-B must provide for safeguards 
on the use and disclosure of information which meet the requirements 
contained in section 471(a)(8) of the Act.
    (b) The plans for titles IV-E and IV-B must provide for compliance 
with the Department's regulations applicable to the State and/or Tribe 
as listed in 45 CFR 1355.30.
    (c) The State agency and the Indian Tribe must make available for 
public review and inspection the Child and Family Services Plan (CFSP) 
and the Annual Progress and Services Reports. (See 45 CFR 1357.15 and 
1357.16.) The title IV-E agency also must make available for public 
review and inspection the title IV-E Plan.

[48 FR 23114, May 23, 1983, as amended at 61 FR 58654, Nov. 18, 1996; 77 
FR 926, Jan. 6, 2012]



Sec.  1355.25  Principles of child and family services.

    The following principles, most often identified by practitioners and 
others as helping to assure effective services for children, youth, and 
families, should guide the States and Indian Tribes in developing, 
operating, and improving the continuum of child and family services.
    (a) The safety and well-being of children and of all family members 
is paramount. When safety can be assured, strengthening and preserving 
families is seen as the best way to promote the healthy development of 
children. One important way to keep children safe is to stop violence in 
the family including violence against their mothers.
    (b) Services are focused on the family as a whole; service providers 
work with families as partners in identifying and meeting individual and 
family needs; family strengths are identified, enhanced, respected, and 
mobilized to help families solve the problems which compromise their 
functioning and well-being.
    (c) Services promote the healthy development of children and youth, 
promote permanency for all children and help prepare youth emancipating 
from the foster care system for self-sufficiency and independent living.
    (d) Services may focus on prevention, protection, or other short or 
long-term interventions to meet the needs of the family and the best 
interests and need of the individual(s) who may be placed in out-of-home 
care.
    (e) Services are timely, flexible, coordinated, and accessible to 
families and individuals, principally delivered in the home or the 
community, and are delivered in a manner that is respectful of and 
builds on the strengths of the community and cultural groups.
    (f) Services are organized as a continuum, designed to achieve 
measurable outcomes, and are linked to a wide variety of supports and 
services which can be crucial to meeting families' and children's needs, 
for example, housing, substance abuse treatment, mental health, health, 
education, job training, child care, and informal support networks.
    (g) Most child and family services are community-based, involve 
community organizations, parents and residents in their design and 
delivery, and are accountable to the community and the client's needs.
    (h) Services are intensive enough and of sufficient duration to keep 
children safe and meet family needs. The actual level of intensity and 
length of time needed to ensure safety and assist the family may vary 
greatly between preventive (family support) and crisis intervention 
services (family preservation), based on the changing needs of children 
and families at various times in their lives. A family or an individual 
does not need to be in crisis in order to receive services.

[61 FR 58654, Nov. 18, 1996]



Sec.  1355.30  Other applicable regulations.

    Except as specified, the following regulations are applicable to 
State and Tribal programs funded under titles IV-B and IV-E of the Act.
    (a) 45 CFR Part 16--Procedures of the Departmental Grant Appeals 
Board.
    (b) 45 CFR Part 30--Claims Collection.
    (c) 2 CFR part 376--Nonprocurement Debarment and Suspension.
    (d) 2 CFR part 382--Requirements for Drug-Free Workplace (Financial 
Assistance).

[[Page 282]]

    (e) 45 CFR Part 80--Nondiscrimination Under Programs Receiving 
Federal Assistance Through the Department of Health and Human Services 
Effectuation of Title VI of the Civil Rights Act of 1964.
    (f) 45 CFR Part 81--Practice and Procedure for Hearings Under Part 
80 of This Title.
    (g) 45 CFR Part 84--Nondiscrimination on the Basis of Handicap in 
Programs and Activities Receiving Federal Financial Assistance.
    (h) 45 CFR Part 91--Nondiscrimination on the Basis of Age in HHS 
Programs or Activities Receiving Federal Financial Assistance.
    (i) 45 CFR part 75--Uniform Administrative Requirements, Cost 
Principles, and Audit Requirements for HHS Awards. Part 75 of this title 
is applicable to title IV-B programs and the John H. Chafee Foster Care 
Independence Program under Section 477 of the Act that are operated by 
States and/or Tribes. Part 75 of this title is applicable to title IV-E 
foster care and adoption assistance programs operated by a State title 
IV-E agency, except that section 75.306 Cost sharing or matching and 
section 75.341 Financial reporting do not apply. Part 75 of this title 
is applicable to title IV-E foster care and adoption assistance programs 
operated by a Tribal title IV-E agency pursuant to section 479B, except 
that section 75.341 and the sections specified in Sec.  1356.68 do not 
apply to a Tribal title IV-E agency.
    (j) 45 CFR Part 93--New Restrictions on Lobbying.
    (k) 45 CFR part 95--General Administration--Grant Programs (Public 
Assistance and Medical Assistance). Part 95 of this title is applicable 
to State and Indian Tribe operated title IV-B and title IV-E programs, 
except:
    (1) Notwithstanding 45 CFR 95.1(a), subpart A, Time Limits for 
States to File Claims, does not apply to State and Indian Tribe-operated 
title IV-B (subparts 1 and 2) program and the John H. Chafee Foster Care 
Independence Program; and
    (2) 45 CFR part 95 Subpart E, Cost Allocation Plans, is not 
applicable to Indian Tribe-operated title IV-E foster care and adoption 
assistance pursuant to section 479B of the Act (ACYF-CB-PI-10-13).
    (l) 45 CFR Part 97--Consolidation of Grants to the Insular Areas. 
(Applicable only to the title IV-B programs).
    (m) 45 CFR part 100--Intergovernmental Review of Department of 
Health and Human Services Programs and Activities. Only one section is 
applicable: 45 CFR 100.12, How may a State simplify, consolidate, or 
substitute federally required State plans? This section is applicable to 
a State title IV-E agency only.
    (n) 45 CFR part 201--Grants to States for Public Assistance 
Programs. Only the following sections are applicable:
    (1) Sec.  201.5--Grants. Applicable to title IV-E foster care and 
adoption assistance only.
    (2) Sec.  201.6--Withholding of payment; reduction of Federal 
financial participation in the costs of social services and training. 
Applicable only to an unapprovable change in an approved plan, or the 
failure of the agency to change its approved plan to conform to a new 
Federal requirement for approval of plans.
    (3) Sec.  201.15--Deferral of claims for Federal financial 
participation. Applicable only to title IV-E foster care and adoption 
assistance.
    (4) Sec.  201.66--Repayment of Federal funds by installments. 
Applicable only to title IV-E foster care and adoption assistance.
    (o) 45 CFR 204.1--Submittal of State Plans for Governor's Review. 
Applicable to State title IV-E agencies only.
    (p) 45 CFR Part 205--General Administration--Public Assistance 
Programs. Only the following sections are applicable:
    (1) Sec.  205.5--Plan amendments.
    (2) Sec.  205.10--Hearings.
    (3) Sec.  205.50--Safeguarding information for the financial 
assistance programs.
    (4) Sec.  205.100--Single State agency.

[61 FR 58654, Nov. 18, 1996, as amended at 66 FR 58675, Nov. 23, 2001; 
77 FR 926, Jan. 6, 2012; 81 FR 3022, Jan. 20, 2016]



Sec.  1355.31  Elements of the child and family services review system.

    Scope. Sections 1355.32 through 1355.37 of this part apply to 
reviews of child and family services programs under subparts 1 and 2 of 
title IV-B of the

[[Page 283]]

Act, and reviews of foster care and adoption assistance programs under 
title IV-E of the Act.

[77 FR 926, Jan. 6, 2012]



Sec.  1355.32  Timetable for the reviews.

    (a) Initial reviews. Each State must complete an initial full review 
as described in Sec.  1355.33 of this part during the four-year period 
after the final rule becomes effective. Each Tribal title IV-E agency 
must complete an initial full review as described in Sec.  1355.33 of 
this part, during the four-year period after the ACF determines that the 
Tribe has approved title IV-B, subpart 1 and 2 and title IV-E plans and 
has sufficient cases for ACF to apply the procedures in Sec.  
1355.33(c).
    (b) Reviews following the initial review. (1) A title IV-E agency 
found to be operating in substantial conformity during an initial or 
subsequent review, as defined in Sec.  1355.34 of this part, must:
    (i) Complete a full review every five years; and
    (ii) Submit a completed statewide assessment, or in the case of a 
Tribal title IV-E agency, a completed Tribal assessment of the service 
area, to ACF three years after the on-site review. The assessment will 
be reviewed jointly by the title IV-E agency and ACF to determine the 
State's or Indian Tribe's continuing substantial conformity with the 
plan requirements subject to review. No formal approval of this interim 
assessment by ACF is required.
    (2) A program found not to be operating in substantial conformity 
during an initial or subsequent review will:
    (i) Be required to develop and implement a program improvement plan, 
as defined in Sec.  1355.35 of this part; and
    (ii) Begin a full review two years after approval of the program 
improvement plan.
    (c) Reinstatement of reviews based on information that a title IV-E 
agency is not in substantial conformity. (1) ACF may require a full or a 
partial review at any time, based on any information, regardless of the 
source, that indicates the title IV-E agency may no longer be operating 
in substantial conformity.
    (2) Prior to reinstating a full or partial review, ACF will conduct 
an inquiry and require the title IV-E agency to submit additional data 
whenever ACF receives information that the title IV-E agency may not be 
in substantial conformity.
    (3) If the additional information and inquiry indicates to ACF's 
satisfaction that the title IV-E agency is operating in substantial 
conformity, ACF will not proceed with any further review of the issue 
addressed by the inquiry. This inquiry will not substitute for the full 
reviews conducted by ACF under Sec.  1355.32(b).
    (4) ACF may proceed with a full or partial review if the title IV-E 
agency does not provide the additional information as requested, or the 
additional information confirms that the title IV-E agency may not be 
operating in substantial conformity.
    (d) Partial reviews based on noncompliance with plan requirements 
that are outside the scope of a child and family services review. When 
ACF becomes aware of a title IV-B or title IV-E compliance issue that is 
outside the scope of the child and family services review process, we 
will:
    (1) Conduct an inquiry and require the title IV-E agency to submit 
additional data.
    (2) If the additional information and inquiry indicates to ACF's 
satisfaction that the title IV-E agency is in compliance, we will not 
proceed with any further review of the issue addressed by the inquiry.
    (3) ACF will institute a partial review, appropriate to the nature 
of the concern, if the title IV-E agency does not provide the additional 
information as requested, or the additional information confirms that 
the title IV-E agency may not be in compliance.
    (4) If the partial review determines that the title IV-E agency is 
not in compliance with the applicable plan requirement, the title IV-E 
agency must enter into a program improvement plan designed to bring the 
title IV-E agency into compliance, if the provisions for such a plan are 
applicable. The terms, action steps and time-frames of the program 
improvement plan will be developed on a case-by-case basis by ACF and 
the title IV-E agency. The program improvement plan must take into 
consideration the

[[Page 284]]

extent of noncompliance and the impact of the noncompliance on the 
safety, permanency or well-being of children and families served through 
the title IV-E agency's title IV-B or IV-E allocation. If the title IV-E 
agency remains out of compliance, the title IV-E agency will be subject 
to a penalty related to the extent of the noncompliance.

[65 FR 4076, Jan. 25, 2000, as amended at 66 FR 58675, Nov. 23, 2001; 77 
FR 926, Jan. 6, 2012]



Sec.  1355.33  Procedures for the review.

    (a) The full child and family services reviews will:
    (1) Consist of a two-phase process that includes a statewide 
assessment and an on-site review; and
    (2) Be conducted by a team of Federal, and State or Tribal reviewers 
that includes:
    (i) Staff of the child and family services agency, including the 
offices that represent the service areas that are the focus of any 
particular review;
    (ii) Representatives selected by the title IV-E agency, in 
collaboration with the ACF Regional Office, from those with whom the 
title IV-E agency was required to consult in developing its CFSP, as 
described and required in 45 CFR 1357.15(l);
    (iii) Federal staff of HHS; and
    (iv) Other individuals, as deemed appropriate and agreed upon by the 
title IV-E agency and ACF.
    (b) Statewide or Tribal Assessment. The first phase of the full 
review will be a statewide assessment, or for a Tribal title IV-E agency 
a service area assessment, conducted by the title IV-E agency's internal 
and external members of the review team. The assessment must:
    (1) Address each systemic factor under review including the 
statewide/Tribal information system; case review system; quality 
assurance system; staff training; service array; agency responsiveness 
to the community; and foster and adoptive parent licensing, recruitment 
and retention;
    (2) Assess the outcome areas of safety, permanence, and well-being 
of children and families served by the title IV-E agency using data from 
AFCARS and NCANDS. For the initial review, ACF may approve another data 
source to substitute for AFCARS, and in all reviews, ACF may approve 
another data source to substitute for NCANDS. The title IV-E agency must 
also analyze and explain its performance in meeting the national 
standards for the statewide/Tribal service area data indicators;
    (3) Assess the characteristics of the title IV-E agency that have 
the most significant impact on the agency's capacity to deliver services 
to children and families that will lead to improved outcomes;
    (4) Assess the strengths and areas of the title IV-E agency's child 
and family services programs that require further examination through an 
on-site review;
    (5) Include a listing of all the persons external to the title IV-E 
agency who participated in the preparation of the assessment pursuant to 
Sec.  1355.33(a)(2)(ii) and (iv); and
    (6) Be completed and submitted to ACF within 4 months of the date 
that ACF transmits the information for the assessment to the title IV-E 
agency.
    (c) On-site review. The second phase of the full review will be an 
on-site review.
    (1) The on-site review will cover the title IV-E agency's programs 
under titles IV-B and IV-E of the Act, including in-home services and 
foster care. It will be jointly planned by the title IV-E agency and 
ACF, and guided by information in the completed assessment that 
identifies areas in need of improvement or further review.
    (2) The on-site review may be concentrated in several specific 
political subdivisions or jurisdictions of the title IV-E agency, as 
agreed upon by the ACF and the title IV-E agency; however, for a State 
title IV-E agency, a State's largest metropolitan subdivision must be 
one of the locations selected.
    (3) ACF has final approval of the selection of specific areas of the 
title IV-E agency's child and family services continuum described in 
paragraph (c)(1) of this section and selection of the political 
subdivisions or jurisdiction referenced in paragraph (c)(2) of this 
section.
    (4) Sources of information collected during the on-site review to 
determine

[[Page 285]]

substantial conformity must include, but are not limited to:
    (i) Case records on children and families served by the agency;
    (ii) Interviews with children and families whose case records have 
been reviewed and who are, or have been, recipients of services of the 
agency;
    (iii) Interviews with caseworkers, foster parents, and service 
providers for the cases selected for the on-site review; and
    (iv) Interviews with key stakeholders, both internal and external to 
the agency, which, at a minimum, must include those individuals who 
participated in the development of the State's or Tribal title IV-E 
agency's CFSP required at 45 CFR 1357.15(1), courts, administrative 
review bodies, children's guardians ad litem and other individuals or 
bodies assigned responsibility for representing the best interests of 
the child.
    (5) The sample will range from 30-50 cases. Foster care cases must 
be drawn randomly from AFCARS, or, for the initial review, from another 
source approved by ACF and include children who entered foster care 
during the year under review. In-home cases must be drawn randomly from 
NCANDS or from another source approved by ACF. To ensure that all 
program areas are adequately represented, the sample size may be 
increased.
    (6) The sample of 30-50 cases reviewed on-site will be selected from 
a randomly drawn oversample of no more than 150 foster care and 150 in-
home services cases. The oversample must be statistically significant at 
a 90 percent compliance rate (95 percent in subsequent reviews), with a 
tolerable sampling error of 5 percent and a confidence coefficient of 95 
percent. The additional cases in the oversample not selected for the on-
site review will form the sample of cases to be reviewed, if needed, in 
order to resolve discrepancies between the statewide/Tribal assessment 
and the on-site review in accordance with paragraph (d)(2) of this 
section.
    (d) Resolution of discrepancies between the assessment and the 
findings of the on-site portion of the review. Discrepancies between the 
statewide or Tribal assessment and the findings of the on-site portion 
of the review will be resolved by either of the following means, at the 
title IV-E agency's option:
    (1) The submission of additional information by the title IV-E 
agency; or
    (2) ACF and the title IV-E agency will review additional cases using 
only those indicators in which the discrepancy occurred. ACF and the 
title IV-E agency will determine jointly the number of additional cases 
to be reviewed, not to exceed 150 foster care cases or 150 in-home 
services cases to be selected as specified in paragraph (c)(6) of this 
section.
    (e) Partial review. A partial child and family services review, when 
required, will be planned and conducted jointly by ACF and the title IV-
E agency based on the nature of the concern. A partial review does not 
substitute for the full reviews as required under Sec.  1355.32(b).
    (f) Notification. Within 30 calendar days following either a partial 
child and family services review, full child and family services review, 
or the resolution of a discrepancy between the assessment and the 
findings of the on-site portion of the review, ACF will notify the title 
IV-E agency in writing of whether the title IV-E agency is, or is not, 
operating in substantial conformity.

[65 FR 4077, Jan. 25, 2000, as amended at 66 FR 58675, Nov. 23, 2001; 77 
FR 927, Jan. 6, 2012]



Sec.  1355.34  Criteria for determining substantial conformity.

    (a) Criteria to be satisfied. ACF will determine a title IV-E 
agency's substantial conformity with title IV-B and title IV-E plan 
requirements based on the following:
    (1) Its ability to meet national standards, set by the Secretary, 
for the statewide/Tribal service area data indicators associated with 
specific outcomes for children and families;
    (2) Its ability to meet criteria related to outcomes for children 
and families; and
    (3) Its ability to meet criteria related to the title IV-E agency's 
capacity to deliver services leading to improved outcomes.

[[Page 286]]

    (b) Criteria related to outcomes. (1) A title IV-E agency's 
substantial conformity will be determined by its ability to 
substantially achieve the following child and family service outcomes:
    (i) In the area of child safety:
    (A) Children are, first and foremost, protected from abuse and 
neglect; and,
    (B) Children are safely maintained in their own homes whenever 
possible and appropriate;
    (ii) In the area of permanency for children:
    (A) Children have permanency and stability in their living 
situations; and
    (B) The continuity of family relationships and connections is 
preserved for children; and
    (iii) In the area of child and family well-being:
    (A) Families have enhanced capacity to provide for their children's 
needs;
    (B) Children receive appropriate services to meet their educational 
needs; and
    (C) Children receive adequate services to meet their physical and 
mental health needs.
    (2) A title IV-E agency's level of achievement with regard to each 
outcome reflects the extent to which a title IV-E agency has:
    (i) Met the national standard(s) for the statewide/Tribal service 
area data indicator(s) associated with that outcome, if applicable; and,
    (ii) Implemented the following CFSP requirements or assurances:
    (A) The requirements in 45 CFR 1357.15(p) regarding services 
designed to assure the safety and protection of children and the 
preservation and support of families;
    (B) The requirements in 45 CFR 1357.15(q) regarding the permanency 
provisions for children and families in sections 422 and 471 of the Act;
    (C) The requirements in section 422(b)(7) of the Act regarding 
recruitment of potential foster and adoptive families;
    (D) The assurances as required by section 422(b)(8)(B) of the Act 
regarding policies and procedures for abandoned children;
    (E) The requirements in section 422(b)(9) of the Act regarding the 
State's compliance with the Indian Child Welfare Act;
    (F) The requirements in section 422(b)(10) of the Act regarding a 
title IV-E agency's plan for effective use of cross-jurisdictional 
resources to facilitate timely adoptive or permanent placements; and,
    (G) The requirements in section 471(a)(15) of the Act regarding 
reasonable efforts to prevent removals of children from their homes, to 
make it possible for children in foster care to safely return to their 
homes, or, when the child is not able to return home, to place the child 
in accordance with the permanency plan and complete the steps necessary 
to finalize the permanent placement.
    (3) A title IV-E agency will be determined to be in substantial 
conformity if its performance on:
    (i) Each statewide/Tribal service area data indicator developed 
pursuant to paragraph (b)(4) of this section meets the national standard 
described in paragraph (b)(5) of this section; and,
    (ii) Each outcome listed in paragraph (b)(1) of this section is 
rated as ``substantially achieved'' in 95 percent of the cases examined 
during the on-site review (90 percent of the cases for an initial 
review). Information from various sources (case records, interviews) 
will be examined for each outcome and a determination made as to the 
degree to which each outcome has been achieved for each case reviewed.
    (4) The Secretary may, using AFCARS and NCANDS, develop statewide/
Tribal service area data indicators for each of the specific outcomes 
described in paragraph (b)(1) of this section for use in determining 
substantial conformity. The Secretary may add, amend, or suspend any 
such statewide/Tribal service area data indicator(s) when appropriate. 
To the extent practical and feasible, the statewide/Tribal service area 
data indicators will be consistent with those developed in accordance 
with section 203 of the Adoption and Safe Families Act of 1997 (Pub. L. 
105-89).
    (5) The initial national standards for the statewide data indicators 
described in paragraph (b)(4) of this section will be based on the 75th 
percentile of all State performance for that indicator,

[[Page 287]]

as reported in AFCARS or NCANDS. The Secretary may adjust these national 
standards if appropriate. The initial national standard will be set 
using the following data sources:
    (i) The 1997 and 1998 submissions to NCANDS (or the most recent and 
complete 2 years available), for those statewide data indicators 
associated with the safety outcomes; and,
    (ii) The 1998b, 1999c, and 2000a submissions to AFCARS (or the most 
recent and complete report periods available), for those statewide data 
indicators associated with the permanency outcomes.
    (c) Criteria related to title IV-E agency capacity to deliver 
services leading to improved outcomes for children and families. In 
addition to the criteria related to outcomes contained in paragraph (b) 
of this section, the title IV-E agency also must satisfy criteria 
related to the delivery of services. Based on information from the 
assessment and onsite review, the title IV-E agency must meet the 
following criteria for each systemic factor in paragraphs (c)(2) through 
(c)(7) of this section to be considered in substantial conformity: All 
of the plan requirements associated with the systemic factor must be in 
place, and no more than one of the plan requirements fails to function 
as described in paragraphs (c)(2) through (c)(7) of this section. The 
systemic factor in paragraph (c)(1) of this section is rated on the 
basis of only one plan requirement. To be considered in substantial 
conformity, the plan requirement associated with statewide/Tribal 
information system capacity must be both in place and functioning as 
described in the requirement. ACF will use a rating scale to make the 
determinations of substantial conformity. The systemic factors under 
review are:
    (1) Statewide/Tribal information system: The State/Tribal title IV-E 
agency is operating a statewide/Tribal information system that, at a 
minimum, can readily identify the status, demographic characteristics, 
location, and goals for the placement of every child who is (or within 
the immediately preceding 12 months, has been) in foster care (section 
(422)(b)(8)(A)(i) of the Act);
    (2) Case review system: The title IV-E agency has procedures in 
place that:
    (i) Provide, for each child, a written case plan to be developed 
jointly with the child's parent(s) that includes provisions: for placing 
the child in the least restrictive, most family-like placement 
appropriate to his/her needs, and in close proximity to the parents' 
home where such placement is in the child's best interests; for visits 
with a child placed out of State/Tribal service area at least every 12 
months by a caseworker of the agency or of the agency in the State/
Tribal service area where the child is placed; and for documentation of 
the steps taken to make and finalize an adoptive or other permanent 
placement when the child cannot return home (sections 422(b)(8)(A)(ii), 
471(a)(16) and 475(5)(A) of the Act);
    (ii) Provide for periodic review of the status of each child no less 
frequently than once every six months by either a court or by 
administrative review (sections 422(b)(8)(A)(ii), 471(a)(16) and 
475(5)(B) of the Act);
    (iii) Assure that each child in foster care under the supervision of 
the title IV-E agency has a permanency hearing in a family or juvenile 
court or another court of competent jurisdiction (including a Tribal 
court), or by an administrative body appointed or approved by the court, 
which is not a part of or under the supervision or direction of the 
title IV-E agency, no later than 12 months from the date the child 
entered foster care (and not less frequently than every 12 months 
thereafter during the continuation of foster care) (sections 
422(b)(8)(A)(ii), 471(a)(16) and 475(5)(C) of the Act);
    (iv) Provide a process for termination of parental rights 
proceedings in accordance with sections 422(b)(8)(A)(ii), 475(5)(E) and 
(F) of the Act; and,
    (v) Provide foster parents, preadoptive parents, and relative 
caregivers of children in foster care with notice of and a right to be 
heard in permanency hearings and six-month periodic reviews held with 
respect to the child (sections 422(b)(8)(A)(ii), 475(5)(G) of the Act, 
and 45 CFR 1356.21(o)).

[[Page 288]]

    (3) Quality assurance system: The title IV-E agency has developed 
and implemented standards to ensure that children in foster care 
placements are provided quality services that protect the safety and 
health of the children (section 471(a)(22)) and is operating an 
identifiable quality assurance system (45 CFR 1357.15(u)) as described 
in the CFSP that:
    (i) Is in place in the jurisdictions within the State/Tribal service 
area where services included in the CFSP are provided;
    (ii) Is able to evaluate the adequacy and quality of services 
provided under the CFSP;
    (iii) Is able to identify the strengths and needs of the service 
delivery system it evaluates;
    (iv) Provides reports to agency administrators on the quality of 
services evaluated and needs for improvement; and
    (v) Evaluates measures implemented to address identified problems.
    (4) Staff training: The title IV-E agency is operating a staff 
development and training program (45 CFR 1357.15(t)) that:
    (i) Supports the goals and objectives in the title IV-E agency's 
CFSP;
    (ii) Addresses services provided under both subparts of title IV-B 
and the training plan under title IV-E of the Act;
    (iii) Provides training for all staff who provide family 
preservation and support services, child protective services, foster 
care services, adoption services and independent living services soon 
after they are employed and that includes the basic skills and knowledge 
required for their positions;
    (iv) Provides ongoing training for staff that addresses the skills 
and knowledge base needed to carry out their duties with regard to the 
services included in the CFSP; and,
    (v) Provides training for current or prospective foster parents, 
adoptive parents, and the staff of State/Tribal-licensed or State/
Tribal-approved child care institutions providing care to foster and 
adopted children receiving assistance under title IV-E that addresses 
the skills and knowledge base needed to carry out their duties with 
regard to caring for foster and adopted children.
    (5) Service array: Information from the assessment and on-site 
review determines that the title IV-E agency has in place an array of 
services (45 CFR 1357.15(n) and section 422(b)(8)(A)(iii) and (iv) of 
the Act) that includes, at a minimum:
    (i) Services that assess the strengths and needs of children and 
families assisted by the agency and are used to determine other service 
needs;
    (ii) Services that address the needs of the family, as well as the 
individual child, in order to create a safe home environment;
    (iii) Services designed to enable children at risk of foster care 
placement to remain with their families when their safety and well-being 
can be reasonably assured;
    (iv) Services designed to help children achieve permanency by 
returning to families from which they have been removed, where 
appropriate, be placed for adoption or with a legal guardian or in some 
other planned, permanent living arrangement, and through post-legal 
adoption services;
    (v) Services that are accessible to families and children in all 
political subdivisions and/or the entire service area covered in the 
CFSP; and,
    (vi) Services that can be individualized to meet the unique needs of 
children and families served by the agency.
    (6) Agency responsiveness to the community:
    (i) The title IV-E agency, in implementing the provisions of the 
CFSP, engages in ongoing consultation with a broad array of individuals 
and organizations representing the State/Tribal and county/local 
agencies responsible for implementing the CFSP and other major 
stakeholders in the services delivery system including, at a minimum, 
Tribal representatives, consumers, service providers, foster care 
providers, the juvenile court, and other public and private child and 
family serving agencies (45 CFR 1357.15(l)(3));
    (ii) The agency develops, in consultation with these or similar 
representatives, annual reports of progress and services delivered 
pursuant to the CFSP (45 CFR 1357.16(a));

[[Page 289]]

    (iii) There is evidence that the agency's goals and objectives 
included in the CFSP reflect consideration of the major concerns of 
stakeholders consulted in developing the plan and on an ongoing basis 
(45 CFR 1357.15(m)); and
    (iv) There is evidence that the services under the plan are 
coordinated with services or benefits under other Federal or federally-
assisted programs serving the same populations to achieve the goals and 
objectives in the plan (45 CFR 1357.15(m)).
    (7) Foster and adoptive parent licensing, recruitment and retention:
    (i) The State or Tribe has established and maintains standards for 
foster family homes and child care institutions which are reasonably in 
accord with recommended standards of national organizations concerned 
with standards for such institutions or homes (section 471(a)(10) of the 
Act);
    (ii) The standards so established are applied by the State or Tribe 
to every licensed or approved foster family home or child care 
institution receiving funds under title IV-E or IV-B of the Act (section 
471(a)(10) of the Act);
    (iii) The title IV-E agency complies with the safety requirements 
for foster care and adoptive placements in accordance with sections 
471(a)(16), 471(a)(20) and 475(1) of the Act and 45 CFR 1356.30;
    (iv) The title IV-E agency has in place an identifiable process for 
assuring the diligent recruitment of potential foster and adoptive 
families that reflect the ethnic and racial diversity of children in the 
State or Tribe for whom foster and adoptive homes are needed (section 
422(b)(7) of the Act); and,
    (v) The title IV-E agency has developed and implemented plans for 
the effective use of cross-jurisdictional resources to facilitate timely 
adoptive or permanent placements for waiting children (section 
422(b)(10) of the Act).
    (d) Availability of review instruments. ACF will make available to 
the title IV-E agencies copies of the review instruments, which will 
contain the specific standards to be used to determine substantial 
conformity, on an ongoing basis, whenever significant revisions to the 
instruments are made.

[65 FR 4078, Jan. 25, 2000, as amended at 66 FR 58675, Nov. 23, 2001; 77 
FR 928, Jan. 6, 2012]



Sec.  1355.35  Program improvement plans.

    (a) Mandatory program improvement plan. (1) Title IV-E agencies 
found not to be operating in substantial conformity shall develop a 
program improvement plan. The program improvement plan must:
    (i) Be developed jointly by title IV-E agency and Federal staff in 
consultation with the review team;
    (ii) Identify the areas in which the title IV-E agency's program is 
not in substantial conformity;
    (iii) Set forth the goals, the action steps required to correct each 
identified weakness or deficiency, and dates by which each action step 
is to be completed in order to improve the specific areas;
    (iv) Set forth the amount of progress the statewide/Tribal data will 
make toward meeting the national standards;
    (v) Establish benchmarks that will be used to measure the title IV-E 
agency's progress in implementing the program improvement plan and 
describe the methods that will be used to evaluate progress;
    (vi) Identify how the action steps in the plan build on and make 
progress over prior program improvement plans;
    (vii) Identify the technical assistance needs and sources of 
technical assistance, both Federal and non-Federal, which will be used 
to make the necessary improvements identified in the program improvement 
plan.
    (2) In the event that ACF and the title IV-E agency cannot reach 
consensus regarding the content of a program improvement plan or the 
degree of program or data improvement to be achieved, ACF retains the 
final authority to assign the contents of the plan and/or the degree of 
improvement required for successful completion of the plan. Under such 
circumstances, ACF will render a written rationale for assigning such 
content or degree of improvement.
    (b) Voluntary program improvement plan. Title IV-E agencies found to 
be operating in substantial conformity

[[Page 290]]

may voluntarily develop and implement a program improvement plan in 
collaboration with the ACF Regional Office, under the following 
circumstances:
    (1) The title IV-E agency and Regional Office agree that there are 
areas of the title IV-E agency's child and family services programs in 
need of improvement which can be addressed through the development and 
implementation of a voluntary program improvement plan;
    (2) ACF approval of the voluntary program improvement plan will not 
be required; and
    (3) No penalty will be assessed for the title IV-E agency's failure 
to achieve the goals described in the voluntary program improvement 
plan.
    (c) Approval of program improvement plans. (1) A title IV-E agency 
determined not to be in substantial conformity must submit a program 
improvement plan to ACF for approval within 90 calendar days from the 
date the title IV-E agency receives the written notification from ACF 
that it is not operating in substantial conformity.
    (2) Any program improvement plan will be approved by ACF if it meets 
the provisions of paragraph (a) of this section.
    (3) If the program improvement plan does not meet the provisions of 
paragraph (a) of this section, the title IV-E agency will have 30 
calendar days from the date it receives notice from ACF that the plan 
has not been approved to revise and resubmit the plan for approval.
    (4) If the title IV-E agency does not submit a revised program 
improvement plan according to the provisions of paragraph (c)(3) of this 
section or if the plan does not meet the provisions of paragraph (a) of 
this section, withholding of funds pursuant to the provisions of Sec.  
1355.36 of this part will begin.
    (d) Duration of program improvement plans. (1) ACF retains the 
authority to establish time frames for the program improvement plan 
consistent with the seriousness and complexity of the remedies required 
for any areas determined not in substantial conformity, not to exceed 
two years.
    (2) Particularly egregious areas of nonconformity impacting child 
safety must receive priority in both the content and time frames of the 
program improvement plans and must be addressed in less than two years.
    (3) The Secretary may approve extensions of deadlines in a program 
improvement plan not to exceed one year. The circumstances under which 
requests for extensions will be approved are expected to be rare. The 
title IV-E agency must provide compelling documentation of the need for 
such an extension. Requests for extensions must be received by ACF at 
least 60 days prior to the affected completion date.
    (4) Title IV-E agencies must provide quarterly status reports 
(unless ACF and the title IV-E agency agree to less frequent reports) to 
ACF. Such reports must inform ACF of progress in implementing the 
measures of the plan.
    (e) Evaluating program improvement plans. Program improvement plans 
will be evaluated jointly by the title IV-E agency and ACF, in 
collaboration with other members of the review team, as described in the 
title IV-E agency's program improvement plan and in accordance with the 
following criteria:
    (1) The methods and information used to measure progress must be 
sufficient to determine when and whether the title IV-E agency is 
operating in substantial conformity or has reached the negotiated 
standard with respect to statewide/Tribal service area data indicators 
that failed to meet the national standard for that indicator;
    (2) The frequency of evaluating progress will be determined jointly 
by the title IV-E agency and Federal team members, but no less than 
annually. Evaluation of progress will be performed in conjunction with 
the annual updates of the title IV-E agency's CFSP, as described in 
paragraph (f) of this section;
    (3) Action steps may be jointly determined by the title IV-E agency 
and ACF to be achieved prior to projected completion dates, and will not 
require any further evaluation at a later date; and
    (4) The title IV-E agency and ACF may jointly renegotiate the terms 
and conditions of the program improvement plan as needed, provided that:

[[Page 291]]

    (i) The renegotiated plan is designed to correct the areas of the 
title IV-E agency's program determined not to be in substantial 
conformity and/or achieve a standard for the statewide/Tribal service 
area data indicators that is acceptable to ACF;
    (ii) The amount of time needed to implement the provisions of the 
plan does not extend beyond three years from the date the original 
program improvement plan was approved;
    (iii) The terms of the renegotiated plan are approved by ACF; and
    (iv) The Secretary approves any extensions beyond the two-year 
limit.
    (f) Integration of program improvement plans with CFSP planning. The 
elements of the program improvement plan must be incorporated into the 
goals and objectives of the title IV-E agency's CFSP. Progress in 
implementing the program improvement plan must be included in the annual 
reviews and progress reports related to the CFSP required in 45 CFR 
1357.16.


(This requirement has been approved by the Office of Management and 
Budget under OMB Control Number 0970-0214. In accordance with the 
Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, 
and a person is not required to respond to, a collection of information 
unless it displays a currently valid OMB control number.)

[65 FR 4080, Jan. 25, 2000, as amended at 66 FR 58675, Nov. 23, 2001; 77 
FR 929, Jan. 6, 2012]



Sec.  1355.36  Withholding Federal funds due to failure to achieve substantial 
conformity or failure to successfully complete a program improvement plan.

    (a) For the purposes of this section:
    (1) The term ``title IV-B funds'' refers to the title IV-E agency's 
combined allocation of title IV-B subpart 1 and subpart 2 funds; and
    (2) The term ``title IV-E funds'' refers to the title IV-E agency's 
reimbursement for administrative costs for the foster care program under 
title IV-E.
    (b) Determination of the amount of Federal funds to be withheld. ACF 
will determine the amount of title IV-B and IV-E funds to be withheld 
due to a finding that the title IV-E agency is not operating in 
substantial conformity, as follows:
    (1) A title IV-E agency will have the opportunity to develop and 
complete a program improvement plan prior to any withholding of funds.
    (2) Title IV-B and IV-E funds will not be withheld from a title IV-E 
agency if the determination of nonconformity was caused by the title IV-
E agency's correct use of formal written statements of Federal law or 
policy provided the title IV-E agency by DHHS.
    (3) A portion of the title IV-E agency's title IV-B and IV-E funds 
will be withheld by ACF for the year under review and for each 
succeeding year until the title IV-E agency either successfully 
completes a program improvement plan or is found to be operating in 
substantial conformity.
    (4) The amount of title IV-B and title IV-E funds subject to 
withholding due to a determination that a title IV-E agency is not 
operating in substantial conformity is based on a pool of funds defined 
as follows:
    (i) The title IV-E agency's allotment of title IV-B funds for each 
of the years to which the withholding applies; and
    (ii) An amount equivalent to 10 percent of the title IV-E agency's 
Federal claims for title IV-E foster care administrative costs for each 
of the years to which withholding applies;
    (5) The amount of funds to be withheld from the pool in paragraph 
(b)(4) of this section will be computed as follows:
    (i) Except as provided for in paragraphs (b)(7) and (b)(8) of this 
section, an amount equivalent to one percent of the funds described in 
paragraph (b)(4) of this section for each of the years to which 
withholding applies will be withheld for each of the seven outcomes 
listed in Sec.  1355.34(b)(1) of this part that is determined not to be 
in substantial conformity; and
    (ii) Except as provided for in paragraphs (b)(7) and (b)(8) of this 
section, an amount equivalent to one percent of the funds described in 
paragraph (b)(4) of this section for each of the years to which 
withholding applies will be withheld for each of the seven systemic 
factors listed in Sec.  1355.34(c) of this part that is determined not 
to be in substantial conformity.
    (6) Except as provided for in paragraphs (b)(7), (b)(8), and (e)(4) 
of this

[[Page 292]]

section, in the event the title IV-E agency is determined to be in 
nonconformity on each of the seven outcomes and each of the seven 
systemic factors subject to review, the maximum amount of title IV-B and 
title IV-E funds to be withheld due to the title IV-E agency's failure 
to comply is 14 percent per year of the funds described in paragraph 
(b)(4) of this section for each year.
    (7) Title IV-E agencies determined not to be in substantial 
conformity that fail to correct the areas of nonconformity through the 
successful completion of a program improvement plan, and are determined 
to be in nonconformity on the second full review following the first 
full review in which a determination of nonconformity was made will be 
subject to increased withholding as follows:
    (i) The amount of funds described in paragraph (b)(5) of this 
section will increase to two percent for each of the seven outcomes and 
each of the seven systemic factors that continues in nonconformity since 
the immediately preceding child and family services review;
    (ii) The increased withholding of funds for areas of continuous 
nonconformity is subject to the provisions of paragraphs (c), (d), and 
(e) of this section;
    (iii) The maximum amount of title IV-B and title IV-E funds to be 
withheld due to the title IV-E agency's failure to comply on the second 
full review following the first full review in which the determination 
of nonconformity was made is 28 percent of the funds described in 
paragraph (b)(4) of this section for each year to which the withholding 
of funds applies.
    (8) Title IV-E agencies determined not to be in substantial 
conformity that fail to correct the areas of nonconformity through the 
successful completion of a program improvement plan, and are determined 
to be in nonconformity on the third and any subsequent full reviews 
following the first full review in which a determination of 
nonconformity was made will be subject to increased withholding as 
follows:
    (i) The amount of funds described in paragraph (b)(5) of this 
section will increase to three percent for each of the seven outcomes 
and each of the seven systemic factors that continues in nonconformity 
since the immediately preceding child and family services review;
    (ii) The increased withholding of funds for areas of continuous 
nonconformity is subject to the provisions of paragraphs (c), (d), and 
(e) of this section;
    (iii) The maximum amount of title IV-B and title IV-E funds to be 
withheld due to the title IV-E agency's failure to comply on the third 
and any subsequent full reviews following the first full review in which 
the determination of nonconformity was made is 42 percent of the funds 
described in paragraph (b)(4) of this section for each year to which the 
withholding of funds applies.
    (c) Suspension of withholding. (1) For title IV-E agencies 
determined not to be operating in substantial conformity, ACF will 
suspend the withholding of the title IV-E agencies' title IV-B and title 
IV-E funds during the time that a program improvement plan is in effect, 
provided that:
    (i) The program improvement plan conforms to the provisions of Sec.  
1355.35 of this part; and
    (ii) The title IV-E agency is actively implementing the provisions 
of the program improvement plan.
    (2) Suspension of the withholding of funds is limited to three years 
following each review, or the amount of time approved for implementation 
of the program improvement plan, whichever is less.
    (d) Terminating the withholding of funds. For title IV-E agencies 
determined not to be in substantial conformity, ACF will terminate the 
withholding of the title IV-E agency's title IV-B and title IV-E funds 
related to the nonconformity upon determination by the title IV-E agency 
and ACF that the title IV-E agency has achieved substantial conformity 
or has successfully completed a program improvement plan. ACF will 
rescind the withholding of the portion of title IV-B and title IV-E 
funds related to specific goals or action steps as of the date at the 
end of the quarter in which they were determined to have been achieved.

[[Page 293]]

    (e) Withholding of funds. (1) Title IV-E agencies determined not to 
be in substantial conformity that fail to successfully complete a 
program improvement plan will be notified by ACF of this final 
determination of nonconformity in writing within 10 business days after 
the relevant completion date specified in the plan, and advised of the 
amount of title IV-B and title IV-E funds which are to be withheld.
    (2) Title IV-B and title IV-E funds will be withheld based on the 
following:
    (i) If the title IV-E agency fails to submit status reports in 
accordance with Sec.  1355.35(d)(4), or if such reports indicate that 
the title IV-E agency is not making satisfactory progress toward 
achieving goals or actions steps, funds will be withheld at that time 
for a period beginning October 1 of the fiscal year for which the 
determination of nonconformity was made and ending on the specified 
completion date for the affected goal or action step.
    (ii) Funds related to goals and action steps that have not been 
achieved by the specified completion date will be withheld at that time 
for a period beginning October 1 of the fiscal year for which the 
determination of nonconformity was made and ending on the completion 
date of the affected goal or action step; and
    (iii) The withholding of funds commensurate with the level of 
nonconformity at the end of the program improvement plan will begin at 
the latest completion date specified in the program improvement plan and 
will continue until a subsequent full review determines the title IV-E 
agency to be in substantial conformity or the title IV-E agency 
successfully completes a program improvement plan developed as a result 
of that subsequent full review.
    (3) When the date the title IV-E agency is determined to be in 
substantial conformity or to have successfully completed a program 
improvement plan falls within a specific quarter, the amount of funds to 
be withheld will be computed to the end of that quarter.
    (4) A title IV-E agency that refuses to participate in the 
development or implementation of a program improvement plan, as required 
by ACF, will be subject to the maximum increased withholding of 42 
percent of its title IV-B and title IV-E funds, as described in 
paragraph (b)(8) of this section, for each year or portion thereof to 
which the withholding of funds applies.
    (5) The title IV-E agency will be liable for interest on the amount 
of funds withheld by the Department, in accordance with the provisions 
of 45 CFR 30.18.

[65 FR 4081, Jan. 25, 2000, as amended at 66 FR 58675, Nov. 23, 2001; 77 
FR 930, Jan. 6, 2012]



Sec.  1355.37  Opportunity for public inspection of review reports 
and materials.

    The title IV-E agency must make available for public review and 
inspection all statewide or Tribal assessments (Sec.  1355.33(b)), 
report of findings (Sec.  1355.33(e)), and program improvement plans 
(Sec.  1355.35(a)) developed as a result of a full or partial child and 
family services review.

[77 FR 931, Jan. 6, 2012]



Sec.  1355.38  Enforcement of section 471(a)(18) of the Act 
regarding the removal of barriers to interethnic adoption.

    (a) Determination that a violation has occurred in the absence of a 
court finding. (1) If ACF becomes aware of a possible section 471(a)(18) 
violation, whether in the course of a child and family services review, 
the filing of a complaint, or through some other mechanism, it will 
refer such a case to the Department's Office for Civil Rights (OCR) for 
investigation.
    (2) Based on the findings of the OCR investigation, ACF will 
determine if a violation of section 471(a)(18) has occurred. A section 
471(a)(18) violation occurs if a title IV-E agency or an entity in the 
State/Tribe:
    (i) Has denied to any person the opportunity to become an adoptive 
or foster parent on the basis of the race, color, or national origin of 
the person, or of the child, involved;
    (ii) Has delayed or denied the placement of a child for adoption or 
into foster care on the basis of the race, color, or national origin of 
the adoptive or foster parent, or the child involved; or,
    (iii) With respect to a title IV-E agency, maintains any statute, 
regulation, policy, procedure, or practice that on its face, is a 
violation as defined in

[[Page 294]]

paragraphs (a)(2)(i) and (2)(ii) of this section.
    (3) ACF will provide the title IV-E agency or entity with written 
notification of its determination.
    (4) If there has been no violation, there will be no further action. 
If ACF determines that there has been a violation of section 471(a)(18), 
it will take enforcement action as described in this section.
    (5) Compliance with the Indian Child Welfare Act of 1978 (Pub. L. 
95-608) does not constitute a violation of section 471(a)(18).
    (b) Corrective action and penalties for violations with respect to a 
person or based on a court finding. (1) A title IV-E agency or entity 
found to be in violation of section 471(a)(18) of the Act with respect 
to a person, as described in paragraphs (a)(2)(i) and (a)(2)(ii) of this 
section, will be penalized in accordance with paragraph (g)(2) of this 
section. A title IV-E agency or entity determined to be in violation of 
section 471(a)(18) of the Act as a result of a court finding will be 
penalized in accordance with paragraph (g)(4) of this section. The title 
IV-E agency may develop, obtain approval of, and implement a plan of 
corrective action any time after it receives written notification from 
ACF that it is in violation of section 471(a)(18) of the Act.
    (2) Corrective action plans are subject to ACF approval.
    (3) If the corrective action plan does not meet the provisions of 
paragraph (d) of this section, the title IV-E agency must revise and 
resubmit the plan for approval until it has an approved plan.
    (4) A title IV-E agency or entity found to be in violation of 
section 471(a)(18) of the Act by a court must notify ACF within 30 days 
from the date of entry of the final judgment once all appeals have been 
exhausted, declined, or the appeal period has expired.
    (c) Corrective action for violations resulting from a title IV-E 
agency's statute, regulation, policy, procedure, or practice. (1) A 
title IV-E agency found to have committed a violation of the type 
described in paragraph (a)(2)(iii) of this section must develop and 
submit a corrective action plan within 30 days of receiving written 
notification from ACF that it is in violation of section 471(a)(18). 
Once the plan is approved the title IV-E agency will have to complete 
the corrective action and come into compliance. If the title IV-E agency 
fails to complete the corrective action plan within six months and come 
into compliance, a penalty will be imposed in accordance with paragraph 
(g)(3) of this section.
    (2) Corrective action plans are subject to ACF approval.
    (3) If the corrective action plan does not meet the provisions of 
paragraph (d) of this section, the title IV-E agency must revise and 
resubmit the plan within 30 days from the date it receives a written 
notice from ACF that the plan has not been approved. If the title IV-E 
agency does not submit a revised corrective action plan according to the 
provisions of paragraph (d) of this section, withholding of funds 
pursuant to the provisions of paragraph (g) of this section will apply.
    (d) Contents of a corrective action plan. A corrective action plan 
must:
    (1) Identify the issues to be addressed;
    (2) Set forth the steps for taking corrective action;
    (3) Identify any technical assistance needs and Federal and non-
Federal sources of technical assistance which will be used to complete 
the action steps; and,
    (4) Specify the completion date. This date will be no later than 6 
months from the date ACF approves the corrective action plan.
    (e) Evaluation of corrective action plan. ACF will evaluate 
corrective action plans and notify the title IV-E agency (in writing) of 
its success or failure to complete the plan within 30 calendar days. If 
the title IV-E agency has failed to complete the corrective action plan, 
ACF will calculate the amount of reduction in the title IV-E agency's 
title IV-E payment and include this information in the written 
notification of failure to complete the plan.
    (f) Funds to be withheld. The term ``title IV-E funds'' refers to 
the amount of Federal funds advanced or paid to the title IV-E agency 
for allowable costs incurred by a title IV-E agency for: foster care 
maintenance

[[Page 295]]

payments, adoption assistance payments, administrative costs, and 
training costs under title IV-E and includes the title IV-E agency's 
allotment for the Chafee Foster Care Independence Program under section 
477 of the Act.
    (g) Reduction of title IV-E funds. (1) Title IV-E funds shall be 
reduced in specified amounts in accordance with paragraph (h) of this 
section under the following circumstances:
    (i) A determination that a title IV-E agency or entity is in 
violation of section 471(a)(18) of the Act with respect to a person as 
described in paragraphs (a)(2)(i) and (a)(2)(ii) of this section, or:
    (ii) After a title IV-E agency's failure to implement and complete a 
corrective action plan and come into compliance as described in 
paragraph (c) of this section.
    (2) Once ACF notifies a title IV-E agency (in writing) that it has 
committed a section 471(a)(18) violation with respect to a person, the 
title IV-E agency's title IV-E funds will be reduced for the fiscal 
quarter in which the title IV-E agency received written notification and 
for each succeeding quarter within that fiscal year or until the title 
IV-E agency completes a corrective action plan and comes into 
compliance, whichever is earlier. Once ACF notifies an entity (in 
writing) that it has committed a section 471(a)(18) violation with 
respect to a person, the entity must remit to the Secretary all title 
IV-E funds paid to it by the title IV-E agency during the quarter in 
which the entity is notified of the violation.
    (3) For title IV-E agencies that fail to complete a corrective 
action plan within 6 months, title IV-E funds will be reduced by ACF for 
the fiscal quarter in which the title IV-E agency received notification 
of its violation. The reduction will continue for each succeeding 
quarter within that fiscal year or until the title IV-E agency completes 
the corrective action plan and comes into compliance, whichever is 
earlier.
    (4) If, as a result of a court finding, a title IV-E agency or 
entity is determined to be in violation of section 471(a)(18) of the 
Act, ACF will assess a penalty without further investigation. Once the 
title IV-E agency is notified (in writing) of the violation, its title 
IV-E funds will be reduced for the fiscal quarter in which the court 
finding was made and for each succeeding quarter within that fiscal year 
or until the title IV-E agency completes a corrective action plan and 
comes into compliance, whichever is sooner. Once an entity is notified 
(in writing) of the violation, the entity must remit to the Secretary 
all title IV-E funds paid to it by the title IV-E agency during the 
quarter in which the court finding was made.
    (5) The maximum number of quarters that a title IV-E agency will 
have its title IV-E funds reduced due to a finding of a title IV-E 
agency's failure to conform to section 471(a)(18) of the Act is limited 
to the number of quarters within the fiscal year in which a 
determination of nonconformity was made. However, an uncorrected 
violation may result in a subsequent review, another finding, and 
additional penalties.
    (6) No penalty will be imposed for a court finding of a violation of 
section 471(a)(18) until the judgement is final and all appeals have 
been exhausted, declined, or the appeal period has expired.
    (h) Determination of the amount of reduction of Federal funds. ACF 
will determine the reduction in title IV-E funds due to a section 
471(a)(18) violation in accordance with section 474(d)(1) and (2) of the 
Act.
    (1) Title IV-E agencies that violate section 471(a)(18) with respect 
to a person or fail to implement or complete a corrective action plan as 
described in paragraph (c) of this section will be subject to a penalty. 
The penalty structure will follow section 474(d)(1) of the Act. 
Penalties will be levied for the quarter of the fiscal year in which the 
title IV-E agency is notified of its section 471(a)(18) violation, and 
for each succeeding quarter within that fiscal year until the title IV-E 
agency comes into compliance with section 471(a)(18). The reduction in 
title IV-E funds will be computed as follows:
    (i) 2 percent of the title IV-E agency's title IV-E funds for the 
fiscal year quarter, as defined in paragraph (f) of this section, for 
the first finding of noncompliance in that fiscal year;

[[Page 296]]

    (ii) 3 percent of the title IV-E agency's title IV-E funds for the 
fiscal year quarter, as defined in paragraph (f) of this section, for 
the second finding of noncompliance in that fiscal year;
    (iii) 5 percent of the title IV-E agency's title IV-E funds for the 
fiscal year quarter, as defined in paragraph (f) of this section, for 
the third or subsequent finding of noncompliance in that fiscal year.
    (2) Any entity (other than the title IV-E agency) which violates 
section 471(a)(18) of the Act during a fiscal quarter must remit to the 
Secretary all title IV-E funds paid to it by the title IV-E agency in 
accordance with the procedures in paragraphs (g)(2) or (g)(4) of this 
section.
    (3) No fiscal year payment to a title IV-E agency will be reduced by 
more than 5 percent of its title IV-E funds, as defined in paragraph (f) 
of this section, where the title IV-E agency has been determined to be 
out of compliance with section 471(a)(18) of the Act.
    (4) The title IV-E agency or an entity, as applicable, will be 
liable for interest on the amount of funds reduced by the Department, in 
accordance with the provisions of 45 CFR 30.18.
    (This requirement has been approved by the Office of Management and 
Budget under OMB Control Number 0970-0214. In accordance with the 
Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, 
and a person is not required to respond to, a collection of information 
unless it displays a currently valid OMB control number.)

[65 FR 4082, Jan. 25, 2000, as amended at 66 FR 58676, Nov. 23, 2001; 77 
FR 931, Jan. 6, 2012]



Sec.  1355.39  Administrative and judicial review.

    A title IV-E agency determined not to be in substantial conformity 
with titles IV-B and IV-E plan requirements, or a title IV-E agency or 
an entity in violation of section 471(a)(18) of the Act:
    (a) May appeal, pursuant to 45 CFR part 16, the final determination 
and any subsequent withholding of, or reduction in, funds to the HHS 
Departmental Appeals Board within 60 days after receipt of a notice of 
nonconformity described in Sec.  1355.36(e)(1) of this part, or receipt 
of a notice of noncompliance by ACF as described in Sec.  1355.38(a)(3) 
of this part; and
    (b) Will have the opportunity to obtain judicial review of an 
adverse decision of the Departmental Appeals Board within 60 days after 
the title IV-E agency or entity receives notice of the decision by the 
Board. Appeals of adverse Department Appeals Board decisions must be 
made to the district court of the United States for the judicial 
district in which the principal or headquarters office of the agency 
responsible for administering the program is located.
    (c) The procedure described in paragraphs (a) and (b) of this 
section will not apply to a finding that a title IV-E agency or an 
entity has been determined to be in violation of section 471(a)(18) 
which is based on a judicial decision.

[65 FR 4083, Jan. 25, 2000, as amended at 77 FR 932, Jan. 6, 2012]



Sec.  1355.40  Foster care and adoption data collection.

    (a) Scope. State and tribal title IV-E agencies must follow the 
requirements of this section and appendices A through E of this part 
until September 30, 2022. As of October 1, 2022, state and tribal title 
IV-E agencies must comply with Sec. Sec.  1355.41 through 1355.47.
    (b) Scope of the data collection system. (1) Each title IV-E agency 
which administers or supervises the administration of titles IV-B and 
IV-E must implement a system to collect data. The data reporting system 
must meet the requirements of Sec.  1355.40(c) and electronically report 
certain data regarding children in foster care and adoption. The foster 
care data elements are listed and defined in Appendix A to this part and 
the adoption data elements are listed and defined in Appendix B to this 
part.
    (2) For the purposes of foster care reporting, each data 
transmission must include all children in foster care for whom the title 
IV-E agency has responsibility for placement, care, or supervision. This 
includes American Indian children covered under the assurances in 
section 422(b)(8) of the Act on the same basis as any other child. For 
children in care less than 30 days, only

[[Page 297]]

a core set of information will be required, as noted in Appendix A to 
this part. For children who enter foster care prior to October 1, 1995 
and who are still in the system, core data elements will be required; in 
addition, the title IV-E agency also will be required to report on the 
most recent case plan goal affecting those children. For children in 
out-of-State placement, the State placing the child and making the 
foster care payment submits and continually updates the data. For 
children in the Tribal title IV-E agency's placement and care 
responsibility who are placed outside of the Tribal service area, the 
Indian Tribe placing the child and making foster care payments submits 
and continually updates the data for each such child.
    (3) For the purposes of adoption reporting, data are required to be 
transmitted by the title IV-E agency on all adopted children who were 
placed by the title IV-E agency, and on all adopted children for whom 
the agency is providing adoption assistance (either ongoing or for 
nonrecurring expenses), care or services directly or by contract or 
agreement with other private or public agencies. Full adoption data as 
specified in appendix B to this part are required only for children 
adopted after the implementation date of October 1, 1994. For children 
adopted prior to October 1, 1994, who are continuing to receive title 
IV-E subsidies, aggregate data are to be reported. For a child adopted 
out-of-State, the title IV-E agency which placed the child submits the 
data. Similarly, the Tribal title IV-E agency which placed the child 
outside of the Tribal service area for adoption submits the data.
    (c) Foster care and adoption reporting requirements. (1) The title 
IV-E agency shall transmit semi-annually, within 45 days of the end of 
the reporting period (i.e., by May 15 and November 14), information on 
each child in foster care and each child adopted during the reporting 
period. The information to be reported consists of the data elements 
found in appendices A and B to this part. The data must be extracted 
from the data system as of the last day of the reporting period and must 
be submitted in electronic form as described in appendix C to this part 
and in record layouts as delineated in appendix D to this part.
    (2) For foster care information, the child-specific data to be 
transmitted must reflect the data in the information system when the 
data are extracted. Dates of removal from the home and discharge from 
foster care must be entered in accordance with paragraph (d)(1) of this 
section. The date of the most recent periodic review (either 
administrative or court) must be entered for children who have been in 
foster care for more than nine months. Entry of this date constitutes 
title IV-E agency certification that the data on the child have been 
reviewed and are current.
    (3) Adoption data are to be reported during the reporting period in 
which the adoption is legalized or, at the title IV-E agency's option, 
in the following reporting period if the adoption is legalized within 
the last 60 days of the reporting period. For a semi-annual period in 
which no adoptions have been legalized, the title IV-E agency must 
report such an occurrence.
    (4) A summary file of the semi-annual data transmission must be 
submitted and will be used to verify the completeness of the title IV-E 
agency's detailed submission for the reporting period.
    (5) A variety of internal data consistency checks will be used to 
judge the internal consistency of the semi-annual detailed data 
submission. These are specified in Appendix E to this part.
    (d) Missing data standards. (1) The term ``missing data'' refers to 
instances where no data have been entered, if applicable, for a 
particular data element. In addition, all data elements which fail a 
consistency check for a particular case will be converted to missing 
data. All data which are ``out of range'' (i.e., the response is beyond 
the parameters allowed for that particular data element) will also be 
converted to missing data. Details of the circumstances under which data 
will be converted to missing data are specified in appendix E to this 
part. Data elements with responses of ``cannot be determined'' or ``not 
yet determined'' are not considered as having missing data.

[[Page 298]]

    (2) Substantial noncompliance occurs when missing data exceed 10 
percent for any one data element.
    (e) Timeliness of foster care data reports. Ninety percent of the 
subject transactions must have been entered into the system within 60 
days of the event (removal from home or discharge from foster care) or 
the title IV-E agency will be found in substantial noncompliance.
    (f) Substantial noncompliance. Failure by a title IV-E agency to 
meet any of the standards described in paragraphs (b) through (e) of 
this section is considered a substantial failure to meet the 
requirements of the title IV-E plan.

(This requirement has been approved by the Office of Management and 
Budget under OMB Control Number 0980-0267. In accordance with the 
Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, 
and a person is not required to respond to, a collection of information 
unless it displays a currently valid OMB control number.)

[58 FR 67924, Dec. 22, 1993, as amended at 60 FR 40507, Aug. 9, 1995; 65 
FR 4084, Jan. 25, 2000; 66 FR 58676, Nov. 23, 2001; 77 FR 932, Jan. 6, 
2012; 81 FR 90569, Dec. 14, 2016; 83 FR 42227, Aug. 21, 2018; 85 FR 
28424, May 12, 2020]

    Effective Date Note: At 81 FR 90569, Dec. 14, 2016, Sec.  1355.40 
was removed, effective Oct. 1, 2019. At 83 FR 42225, Aug. 21, 2018, the 
removal was delayed until Oct. 1, 2020. At 85 FR 28410, May 12, 2020, 
the removal was further delayed until Oct. 1, 2022.



Sec.  1355.41  Scope of the Adoption and Foster Care Analysis 
and Reporting System.

    (a) This section applies to state and tribal title IV-E agencies 
unless indicated for state title IV-E agencies only.
    (b) An agency described in paragraph (a) of this section must report 
information on the characteristics and experiences of a child in the 
reporting populations described in Sec.  1355.42. The title IV-E agency 
must submit the information collected to ACF on a semi-annual basis in 
an out-of-home care data file and adoption assistance data file as 
required in Sec.  1355.43, pertaining to information described in 
Sec. Sec.  1355.44 and 1355.45 and in a format according to ACF's 
specifications.

[81 FR 90569, Dec. 14, 2016, as amended at 85 FR 28424, May 12, 2020]



Sec.  1355.42  Reporting populations.

    (a) Out-of-home care reporting population. (1) A title IV-E agency 
must report a child of any age who is in out-of-home care for more than 
24 hours. The out-of-home care reporting population includes a child in 
the following situations:
    (i) A child in foster care as defined in Sec.  1355.20.
    (ii) A child on whose behalf title IV-E foster care maintenance 
payments are made and who is under the placement and care responsibility 
of another public agency or an Indian tribe, tribal organization or 
consortium with which the title IV-E agency has an agreement pursuant to 
section 472(a)(2)(B)(ii) of the Act.
    (iii) A child who runs away or whose whereabouts are unknown at the 
time the child is placed under the placement and care responsibility of 
the title IV-E agency.
    (2) Once a child enters the out-of-home care reporting population, 
the child remains in the out-of-home care reporting population through 
the end of the report period in which the title IV-E agency's placement 
and care responsibility ends, or a child's title IV-E foster care 
maintenance payment pursuant to a title IV-E agreement per section 
472(a)(2) of the Act ends, regardless of any subsequent living 
arrangement.
    (b) Adoption and guardianship assistance reporting population. (1) 
The title IV-E agency must include in the adoption and guardianship 
assistance reporting population any child who is:
    (i) In a finalized adoption under a title IV-E adoption assistance 
agreement pursuant to section 473(a) of the Act with the reporting title 
IV-E agency that is or was in effect at some point during the current 
report period; or
    (ii) In a legal guardianship under a title IV-E guardianship 
assistance agreement pursuant to section 473(d) of the Act with the 
reporting title IV-E agency that is or was in effect at some point 
during the current report period.
    (2) A child remains in the adoption or guardianship assistance 
reporting population through the end of the report

[[Page 299]]

period in which the title IV-E agreement ends or is terminated.

[81 FR 90569, Dec. 14, 2016]



Sec.  1355.43  Data reporting requirements.

    (a) Report periods and deadlines. There are two six-month report 
periods based on the Federal fiscal year: October 1 to March 31 and 
April 1 to September 30. The title IV-E agency must submit the out-of-
home care and adoption assistance data files to ACF within 45 days of 
the end of the report period (i.e., by May 15 and November 14). If the 
reporting deadline falls on a weekend, the title IV-E agency has through 
the end of the following Monday to submit the data file.
    (b) Out-of-home care data file. A title IV-E agency must report the 
information required in Sec.  1355.44 pertaining to each child in the 
out-of-home care reporting population, in accordance with the following:
    (1) The title IV-E agency must report the most recent information 
for the applicable data elements in Sec.  1355.44(a) and (b).
    (2) Except as provided in paragraph (b)(3) of this section, the 
title IV-E agency must report the most recent information and all 
historical information for the applicable data elements described in 
Sec.  1355.44(c) through (h).
    (3) For a child who had an out-of-home care episode(s) as defined in 
Sec.  1355.42(a) prior to October 1, 2022, the title IV-E agency must 
report only the information for the data described in Sec.  
1355.44(d)(1) and (g)(1) and (3) for the out-of-home care episode(s) 
that occurred prior to October 1, 2022.
    (c) Adoption and guardianship assistance data file. A title IV-E 
agency must report the most recent information for the applicable data 
elements in Sec.  1355.45 that pertains to each child in the adoption 
and guardianship assistance reporting population on the last day of the 
report period.
    (d) Missing information. If the title IV-E agency fails to collect 
the information for a data element, the title IV-E agency must report 
the element as blank or otherwise missing. The title IV-E agency is not 
permitted to default or map missing information that was not collected 
to a valid response option.
    (e) Electronic submission. The title IV-E agency must submit the 
required data files electronically and in a format according to ACF's 
specifications.
    (f) Record retention. The title IV-E agency must retain all records 
necessary to comply with the data requirements in Sec. Sec.  1355.41 
through 1355.45. The title IV-E agency's retention of such records is 
not limited to the requirements of 45 CFR 92.42(b) and (c).

[81 FR 90569, Dec. 14, 2016, as amended at 85 FR 28424, May 12, 2020]



Sec.  1355.44  Out-of-home care data file elements.

    (a) General information--(1) Title IV-E agency. Indicate the title 
IV-E agency responsible for submitting the Adoption and Foster Care 
Analysis and Reporting System (AFCARS) data in a format according to 
ACF's specifications.
    (2) Report date. The report date corresponds with the end of the 
report period. Indicate the last month and the year of the report 
period.
    (3) Local agency. Indicate the local county, jurisdiction, or 
equivalent unit that has primary responsibility for the child in a 
format according to ACF's specifications.
    (4) Child record number. Indicate the child's record number. This is 
an encrypted, unique person identification number that is the same for 
the child, no matter where the child lives while in the placement and 
care responsibility of the title IV-E agency in out-of-home care and 
across all report periods and episodes. The title IV-E agency must apply 
and retain the same encryption routine or method for the person 
identification number across all report periods. The record number must 
be encrypted in accordance with ACF standards.
    (b) Child information--(1) Child's date of birth. Indicate the 
month, day and year of the child's birth. If the actual date of birth is 
unknown because the child has been abandoned, provide an estimated date 
of birth. ``Abandoned'' means that the child was left alone or with 
others and the identity of the parent(s) or legal guardian(s) is unknown 
and cannot be ascertained. This includes a child left at a ``safe 
haven.''

[[Page 300]]

    (2) Child's sex. Indicate whether the child is ``male'' or 
``female.''
    (3) Reason to know a child is an ``Indian Child'' as defined in the 
Indian Child Welfare Act (ICWA). For state title IV-E agencies only: 
Indicate whether the state title IV-E agency made inquiries whether the 
child is an Indian child as defined in ICWA. Indicate ``yes'' or ``no.''
    (4) Child's tribal membership. For state title IV-E agencies only:
    (i) Indicate whether the child is a member of or eligible for 
membership in a federally recognized Indian tribe. Indicate ``yes,'' 
``no,'' or ``unknown''.
    (ii) If the state title IV-E agency indicated ``yes'' in paragraph 
(b)(4)(i) of this section, indicate all federally recognized Indian 
tribe(s) that may potentially be the Indian child's tribe(s). The title 
IV-E agency must submit the information in a format according to ACF's 
specifications.
    (5) Application of ICWA. For state title IV-E agencies only:
    (i) Indicate whether ICWA applies for the child. Indicate ``yes,'' 
``no,'' or ``unknown''.
    (ii) If the state title IV-E agency indicated ``yes'' in paragraph 
(b)(5)(i) of this section, indicate the date that the state title IV-E 
agency was notified by the Indian tribe or state or tribal court that 
ICWA applies.
    (6) Notification. For state title IV-E agencies only: If the state 
title IV-E agency indicated ``yes'' to paragraph (b)(5)(i) of this 
section, the state title IV-E agency must indicate whether the Indian 
child's tribe(s) was sent legal notice in accordance with 25 U.S.C. 
1912(a). Indicate ``yes'' or ``no.''
    (7) Child's race. In general, a child's race is determined by the 
child, the child's parent(s) or legal guardian(s). Indicate whether each 
race category listed in paragraphs (b)(7)(i) through (viii) of this 
section applies with a ``yes'' or ``no.''
    (i) Race--American Indian or Alaska Native. An American Indian or 
Alaska Native child has origins in any of the original peoples of North 
or South America (including Central America), and maintains tribal 
affiliation or community attachment.
    (ii) Race--Asian. An Asian child has origins in any of the original 
peoples of the Far East, Southeast Asia or the Indian subcontinent 
including, for example, Cambodia, China, India, Japan, Korea, Malaysia, 
Pakistan, the Philippine Islands, Thailand and Vietnam.
    (iii) Race--Black or African American. A Black or African American 
child has origins in any of the black racial groups of Africa.
    (iv) Race--Native Hawaiian or Other Pacific Islander. A Native 
Hawaiian or Other Pacific Islander child has origins in any of the 
original peoples of Hawaii, Guam, Samoa or other Pacific Islands.
    (v) Race--White. A white child has origins in any of the original 
peoples of Europe, the Middle East or North Africa.
    (vi) Race--unknown. The child or parent or legal guardian does not 
know, or is unable to communicate the race, or at least one race of the 
child. This category does not apply when the child has been abandoned or 
the parents failed to return and the identity of the child, parent(s), 
or legal guardian(s) is known.
    (vii) Race--abandoned. The child's race is unknown because the child 
has been abandoned. ``Abandoned'' means that the child was left alone or 
with others and the identity of the parent(s) or legal guardian(s) is 
unknown and cannot be ascertained. This includes a child left at a 
``safe haven.''
    (viii) Race--declined. The child or parent(s) or legal guardian(s) 
has declined to identify a race.
    (8) Child's Hispanic or Latino ethnicity. In general, a child's 
ethnicity is determined by the child or the child's parent(s) or legal 
guardian(s). A child is of Hispanic or Latino ethnicity if the child is 
a person of Cuban, Mexican, Puerto Rican, South or Central American or 
other Spanish culture or origin, regardless of race. Indicate whether 
this category applies with a ``yes'' or ``no.'' If the child or the 
child's parent(s) or legal guardian(s) does not know or is unable to 
communicate whether the child is of Hispanic or Latino ethnicity, 
indicate ``unknown.'' If the child is abandoned indicate ``abandoned.'' 
Abandoned means that the child was left alone or with others and the 
identity of the parent(s) or

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legal guardian(s) is unknown and cannot be ascertained. This includes a 
child left at a ``safe haven.'' If the child or the child's parent(s) or 
legal guardian(s) refuses to identify the child's ethnicity, indicate 
``declined.''
    (9) Health assessment. Indicate whether the child had a health 
assessment during the current out-of-home care episode. This assessment 
could include an initial health screening or any follow-up health 
screening pursuant to section 422(b)(15)(A) of the Act. Indicate ``yes'' 
or ``no.''
    (10) Health, behavioral or mental health conditions. Indicate 
whether the child was diagnosed by a qualified professional, as defined 
by the state or tribe, as having a health, behavioral or mental health 
condition, prior to or during the child's current out-of-home care 
episode as of the last day of the report period. Indicate ``child has a 
diagnosed condition'' if a qualified professional has made such a 
diagnosis and for each paragraph (b)(10)(i) through (xi) of this 
section, indicate ``existing condition,'' ``previous condition'' or 
``does not apply,'' as applicable. ``Previous condition'' means a 
previous diagnoses that no longer exists as a current condition. 
Indicate ``no exam or assessment conducted'' if a qualified professional 
has not conducted a medical exam or assessment of the child and leave 
paragraphs (b)(10)(i) through (xi) of this section blank. Indicate 
``exam or assessment conducted and none of the conditions apply'' if a 
qualified professional has conducted a medical exam or assessment and 
has concluded that the child does not have one of the conditions listed 
and leave paragraphs (b)(10)(i) through (xi) of this section blank. 
Indicate ``exam or assessment conducted but results not received'' if a 
qualified professional has conducted a medical exam or assessment but 
the title IV-E agency has not yet received the results of such an exam 
or assessment and leave paragraphs (b)(10)(i) through (xi) of this 
section blank.
    (i) Intellectual disability. The child has, or had previously, 
significantly sub-average general cognitive and motor functioning 
existing concurrently with deficits in adaptive behavior manifested 
during the developmental period that adversely affect the child's 
socialization and learning.
    (ii) Autism spectrum disorder. The child has, or had previously, a 
neurodevelopment disorder, characterized by social impairments, 
communication difficulties, and restricted, repetitive, and stereotyped 
patterns of behavior. This includes the range of disorders from autistic 
disorder, sometimes called autism or classical autism spectrum disorder, 
to milder forms known as Asperger syndrome and pervasive developmental 
disorder not otherwise specified.
    (iii) Visual impairment and blindness. The child has, or had 
previously, a visual impairment that may adversely affect the day-to-day 
functioning or educational performance, such as blindness, amblyopia, or 
color blindness.
    (iv) Hearing impairment and deafness. The child has, or had 
previously, an impairment in hearing, whether permanent or fluctuating, 
that adversely affects the child's day-to-day functioning and 
educational performance.
    (v) Orthopedic impairment or other physical condition. The child 
has, or had previously, a physical deformity, such as amputations and 
fractures or burns that cause contractures, or an orthopedic impairment, 
including impairments caused by a congenital anomalies or disease, such 
as cerebral palsy, spina bifida, multiple sclerosis, or muscular 
dystrophy.
    (vi) Mental/emotional disorders. The child has, or had previously, 
one or more mood or personality disorders or conditions over a long 
period of time and to a marked degree, such as conduct disorder, 
oppositional defiant disorder, emotional disturbance, anxiety disorder, 
obsessive-compulsive disorder, or eating disorder.
    (vii) Attention deficit hyperactivity disorder. The child has, or 
had previously, a diagnosis of the neurobehavioral disorders of 
attention deficit hyperactivity disorder (ADHD) or attention deficit 
disorder (ADD).
    (viii) Serious mental disorders. The child has, or had previously, a 
diagnosis of a serious mental disorder or illness, such as bipolar 
disorder, depression, psychotic disorders, or schizophrenia.

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    (ix) Developmental delay. The child has been assessed by appropriate 
diagnostic instruments and procedures and is experiencing delays in one 
or more of the following areas: Physical development or motor skills, 
cognitive development, communication, language, or speech development, 
social or emotional development, or adaptive development.
    (x) Developmental disability. The child has, or had previously been 
diagnosed with a developmental disability as defined in the 
Developmental Disabilities Assistance and Bill of Rights Act of 2000 
(Pub. L. 106-402), section 102(8). This means a severe, chronic 
disability of an individual that is attributable to a mental or physical 
impairment or combination of mental and physical impairments that 
manifests before the age of 22, is likely to continue indefinitely and 
results in substantial functional limitations in three or more areas of 
major life activity. Areas of major life activity include self-care, 
receptive and expressive language, learning, mobility, self-direction, 
capacity for independent living, economic self-sufficiency, and reflects 
the individual's need for a combination and sequence of special, 
interdisciplinary, or generic services, individualized supports or other 
forms of assistance that are of lifelong or extended duration and are 
individually planned and coordinated. If a child is given the diagnosis 
of ``developmental disability,'' do not indicate the individual 
conditions that form the basis of this diagnosis separately in other 
data elements.
    (xi) Other diagnosed condition. The child has, or had previously, a 
diagnosed condition or other health impairment other than those 
described in paragraphs (b)(10)(i) through (x) of this section, which 
requires special medical care, such as asthma, diabetes, chronic 
illnesses, a diagnosis as HIV positive or AIDS, epilepsy, traumatic 
brain injury, other neurological disorders, speech/language impairment, 
learning disability, or substance use issues.
    (11) School enrollment. Indicate whether the child is a full-time 
student at, and enrolled in (or in the process of enrolling in), 
``elementary'' or ``secondary'' education, or is a full or part-time 
student at and enrolled in a ``post-secondary education or training'' or 
``college,'' as of the earlier of the last day of the report period or 
the day of exit for a child exiting out-of-home care prior to the end of 
the report period. A child is still considered enrolled in school if the 
child would otherwise be enrolled in a school that is currently out of 
session. An ``elementary or secondary school student'' is defined in 
section 471(a)(30) of the Act as a child that is enrolled (or in the 
process of enrolling) in an institution which provides elementary or 
secondary education, as determined under the law of the state or other 
jurisdiction in which the institution is located, instructed in 
elementary or secondary education at home in accordance with a home 
school law of the state or other jurisdiction in which the home is 
located, in an independent study elementary or secondary education 
program in accordance with the law of the state or other jurisdiction in 
which the program is located, which is administered by the local school 
or school district, or incapable of attending school on a full-time 
basis due to the medical condition of the child, which incapability is 
supported by a regularly updated information in the case plan of the 
child. Enrollment in ``post-secondary education or training'' refers to 
full or part-time enrollment in any post-secondary education or 
training, other than an education pursued at a college or university. 
Enrollment in ``college'' refers to a child that is enrolled full or 
part-time at a college or university. If child has not reached 
compulsory school age, indicate ``not school-age.'' If the child has 
reached compulsory school-age, but is not enrolled or is in the process 
of enrolling in any school setting full-time, indicate ``not enrolled.''
    (12) Educational level. Indicate the highest educational level from 
kindergarten to college or post-secondary education/training completed 
by the child as of the last day of the report period. If child has not 
reached compulsory school-age, indicate ``not school-age.'' Indicate 
``kindergarten'' if the child is currently in or about to begin 1st 
grade. Indicate ``1st grade'' if the child is currently in or about to 
begin 2nd grade. Indicate ``2nd grade'' if the child is currently in or 
about to begin

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3rd grade. Indicate ``3rd grade'' if the child is currently in or about 
to begin 4th grade. Indicate ``4th grade'' if the child is currently in 
or about to begin 5th grade. Indicate ``5th grade'' if the child is 
currently in or about to begin 6th grade. Indicate ``6th grade'' if the 
child is currently in or about to begin 7th grade. Indicate ``7th 
grade'' if the child is currently in or about to begin 8th grade. 
Indicate ``8th grade'' if the child is currently in or about to begin 
9th grade. Indicate ``9th grade'' if the child is currently in or about 
to begin 10th grade. Indicate ``10th grade'' if the child is currently 
in or about to begin 11th grade. Indicate ``11th grade'' if the child is 
currently in or about to begin 12th grade. Indicate ``12th grade'' if 
the child has graduated from high school. Indicate ``GED'' if the child 
has completed a general equivalency degree or other high school 
equivalent. Indicate ``Post-secondary education or training'' if the 
child has completed any post-secondary education or training, including 
vocational training, other than an education pursued at a college or 
university. Indicate ``College'' if the child has completed at least a 
semester of study at a college or university.
    (13) Pregnant or parenting. (i) Indicate whether the child is 
pregnant as of the end of the report period. Indicate ``yes'' or ``no.''
    (ii) Indicate whether the child has ever fathered or bore a child. 
Indicate ``yes'' or ``no.''
    (iii) Indicate whether the child and his/her child(ren) are placed 
together at any point during the report period, if the response in 
paragraph (b)(13)(ii) of this section is ``yes.'' Indicate ``yes,'' 
``no,'' or ``not applicable'' if the response in paragraph (b)(13)(ii) 
of this section is ``no.''
    (14) Special education. Indicate whether the child has an 
Individualized Education Program (IEP) as defined in section 614(d)(1) 
of Part B of Title I of the Individuals with Disabilities Education Act 
(IDEA) and implementing regulations, or an Individualized Family Service 
Program (IFSP) as defined in section 636 of Part C of Title I of IDEA 
and implementing regulations, as of the end of the report period. 
Indicate ``yes'' if the child has either an IEP or an IFSP or ``no'' if 
the child has neither.
    (15) Prior adoption. Indicate whether the child experienced a prior 
legal adoption before the current out-of-home care episode. Include any 
public, private or independent adoption in the United States or adoption 
in another country and tribal customary adoptions. Indicate ``yes,'' 
``no'' or ``abandoned'' if the information is unknown because the child 
has been abandoned. ``Abandoned'' means that the child was left alone or 
with others and the identity of the parent(s) or legal guardian(s) is 
unknown and cannot be ascertained. This includes a child left at a 
``safe haven.'' If the child has experienced a prior legal adoption, the 
title IV-E agency must complete paragraphs (b)(15)(i) and (ii) of this 
section; otherwise the title IV-E agency must leave those paragraphs 
blank.
    (i) Prior adoption date. Indicate the month and year that the most 
recent prior adoption was finalized. In the case of a prior intercountry 
adoption where the adoptive parent(s) readopted the child in the United 
States, the title IV-E agency must provide the date of the adoption 
(either the original adoption in the home country or the re-adoption in 
the United States) that is considered final in accordance with 
applicable laws.
    (ii) Prior adoption intercountry. Indicate whether the child's most 
recent prior adoption was an intercountry adoption, meaning that the 
child's prior adoption occurred in another country or the child was 
brought into the United States for the purposes of finalizing the prior 
adoption. Indicate ``yes'' or ``no.''
    (16) Prior guardianship general--(i) Prior guardianship. Indicate 
whether the child experienced a prior legal guardianship before the 
current out-of-home care episode. Include any public, private or 
independent guardianship(s) in the United States that meets the 
definition in section 475(7) of the Act. This includes any judicially 
created relationship between a child and caretaker which is intended to 
be permanent and self-sustaining, as evidenced by the transfer to the 
caretaker of the following parental rights with respect to the child: 
Protection, education,

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care and control, custody, and decision making. Indicate ``yes,'' 
``no,'' or ``abandoned'' if the information is unknown because the child 
has been abandoned. ``Abandoned'' means that the child was left alone or 
with others and the identity of the parent(s) or legal guardian(s) is 
unknown and cannot be ascertained. This includes a child left at a 
``safe haven.'' If the child has experienced a prior legal guardianship, 
the title IV-E agency must complete paragraph (b)(16)(ii) of this 
section; otherwise the title IV-E agency must leave it blank.
    (ii) Prior guardianship date. Indicate the month and year that the 
most recent prior guardianship became legalized.
    (17) Child financial and medical assistance. Indicate whether the 
child received financial and medical assistance at any point during the 
six-month report period. Indicate ``child has received support/
assistance'' if the child was the recipient of such assistance during 
the report period, and indicate which of the following sources of 
support described in paragraphs (b)(17)(i) through (viii) of this 
section ``applies'' or ``does not apply.'' Indicate ``no support/
assistance received'' if none of these apply.
    (i) State/Tribal adoption assistance. The child is receiving an 
adoption subsidy or other adoption assistance paid for solely by the 
state or Indian tribe.
    (ii) State/Tribal foster care. The child is receiving a foster care 
payment that is solely funded by the state or Indian tribe.
    (iii) Title IV-E adoption subsidy. The child is determined eligible 
for a title IV-E adoption assistance subsidy.
    (iv) Title IV-E guardianship assistance. The child is determined 
eligible for a title IV-E guardianship assistance subsidy.
    (v) Title IV-A TANF. The child is living with relatives who are 
receiving a Temporary Assistance for Needy Families (TANF) cash 
assistance payment on behalf of the child.
    (vi) Title IV-B. The child's living arrangement is supported by 
funds under title IV-B of the Act.
    (vii) Chafee Program. The child is living independently and is 
supported by funds under the John H. Chafee Foster Care Program for 
Successful Transition to Adulthood.
    (viii) Other. The child is receiving financial support from another 
source not previously listed in paragraphs (b)(17)(i) through (vii) of 
this section.
    (18) Title IV-E foster care during report period. Indicate whether a 
title IV-E foster care maintenance payment was paid on behalf of the 
child at any point during the report period that is claimed under title 
IV-E foster care with a ``yes'' or ``no,'' as appropriate. Indicate 
``yes'' if the child has met all eligibility requirements of section 
472(a) of the Act and the title IV-E agency has claimed, or intends to 
claim, Federal reimbursement for foster care maintenance payments made 
on the child's behalf during the report period.
    (19) Total number of siblings. Indicate the total number of siblings 
of the child. A sibling to the child is his or her brother or sister by 
biological, legal, or marital connection. Do not include the child who 
is subject of this record in the total number. If the child does not 
have any siblings, the title IV-E agency must indicate ``0.'' If the 
title IV-E agency indicates ``0,'' the title IV-E agency must leave 
paragraphs (b)(20) and (21) of this section blank.
    (20) Siblings in foster care. Indicate the number of siblings of the 
child who are in foster care, as defined in Sec.  1355.20. A sibling to 
the child is his or her brother or sister by biological, legal, or 
marital connection. Do not include the child who is subject of this 
record in the total number. If the child does not have any siblings, the 
title IV-E agency must leave this paragraph (b)(20) blank. If the child 
has siblings, but they are not in foster care as defined in Sec.  
1355.20, the title IV-E agency must indicate ``0.'' If the title IV-E 
agency reported ``0,'' leave paragraph (b)(21) of this section blank.
    (21) Siblings in living arrangement. Indicate the number of siblings 
of the child who are in the same living arrangement as the child, on the 
last day of the report period. A sibling to the child is his or her 
brother or sister by biological, legal, or marital connection. Do not 
include the child who is

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subject of this record in the total number. If the child does not have 
any siblings, the title IV-E agency must leave this paragraph (b)(21) 
blank. If the child has siblings, but they are not in the same living 
arrangement as the child, the title IV-E agency must indicate ``0.''
    (c) Parent or legal guardian information--(1) Year of birth of first 
parent or legal guardian. If applicable, indicate the year of birth of 
the first parent (biological, legal or adoptive) or legal guardian of 
the child. To the extent that a child has both a parent and a legal 
guardian, or two different sets of legal parents, the title IV-E agency 
must report on those who had legal responsibility for the child. We are 
not seeking information on putative parent(s) in this paragraph (c)(1). 
If there is only one parent or legal guardian of the child, that 
person's year of birth must be reported here. If the child was abandoned 
indicate ``abandoned.'' ``Abandoned'' means that the child was left 
alone or with others and the identity of the child's parent(s) or legal 
guardian(s) is unknown and cannot be ascertained. This includes a child 
left at a ``safe haven.''
    (2) Year of birth of second parent or legal guardian. If applicable, 
indicate the year of birth of the second parent (biological, legal or 
adoptive) or legal guardian of the child. We are not seeking information 
on putative parent(s) in this paragraph (c)(2). If the child was 
abandoned, indicate ``abandoned.'' ``Abandoned'' means that the child 
was left alone or with others and the identity of the child's parent(s) 
or legal guardian(s) is unknown and cannot be ascertained. This includes 
a child left at a ``safe haven.'' Indicate ``not applicable'' if there 
is not another parent or legal guardian.
    (3) Tribal membership mother. For state title IV-E agencies only: 
Indicate whether the biological or adoptive mother is a member of an 
Indian tribe. Indicate ``yes,'' ``no,'' or ``unknown.''
    (4) Tribal membership father. For state title IV-E agencies only: 
Indicate whether the biological or adoptive father is a member of an 
Indian tribe. Indicate ``yes,'' ``no,'' or ``unknown.''
    (5) Termination/modification of parental rights. Indicate whether 
the termination/modification of parental rights for each parent 
(biological, legal and/or putative) was voluntary or involuntary. 
``Voluntary'' means the parent voluntarily relinquished their parental 
rights to the title IV-E agency, with or without court involvement. 
Indicate ``voluntary'' or ``involuntary.'' Indicate ``not applicable'' 
if there was no termination/modification and leave paragraphs (c)(5)(i) 
and (ii) of this section blank.
    (i) Termination/modification of parental rights petition. Indicate 
the month, day and year that each petition to terminate/modify the 
parental rights of a biological, legal and/or putative parent was filed 
in court, if applicable. Indicate ``deceased'' if the parent is 
deceased. If a petition has not been filed, leave this paragraph 
(c)(5)(i) blank.
    (ii) Termination/modification of parental rights. Enter the month, 
day and year that the parental rights were voluntarily or involuntarily 
terminated/modified, for each biological, legal and/or putative parent, 
if applicable. If the parent is deceased, enter the date of death.
    (d) Removal information--(1) Date of child's removal. Indicate the 
removal date(s) in month, day and year format for each removal of a 
child who enters the placement and care responsibility of the title IV-E 
agency. For a child who is removed and is placed initially in foster 
care, indicate the date that the title IV-E agency received placement 
and care responsibility. For a child who ran away or whose whereabouts 
are unknown at the time the child is removed and is placed in the 
placement and care responsibility of the title IV-E agency, indicate the 
date that the title IV-E agency received placement and care 
responsibility. For a child who is removed and is placed initially in a 
non-foster care setting, indicate the date that the child enters foster 
care as the date of removal.
    (2) Removal transaction date. A non-modifiable, computer-generated 
date which accurately indicates the month, day and year each response to 
paragraph (d)(1) of this section was entered into the information 
system.
    (3) Environment at removal. Indicate the type of environment 
(household or facility) the child was living in at the

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time of each removal for each removal reported in paragraph (d)(1) of 
this section. Indicate ``parent household'' if the child was living in a 
household that included one or both of the child's parents, whether 
biological, adoptive or legal. Indicate ``relative household'' if the 
child was living with a relative(s), the relative(s) is not the child's 
legal guardian and neither of the child's parents were living in the 
household. Indicate ``legal guardian household'' if the child was living 
with a legal guardian(s), the guardian(s) is not the child's relative 
and neither of the child's parents were living in the household. 
Indicate ``relative legal guardian household'' if the child was living 
with a relative(s) who is also the child's legal guardian. Indicate 
``justice facility'' if the child was in a detention center, jail or 
other similar setting where the child was detained. Indicate ``medical/
mental health facility'' if the child was living in a facility such as a 
medical or psychiatric hospital or residential treatment center. 
Indicate ``other'' if the child was living in another situation not so 
described, such as living independently or homeless.
    (4) Child and family circumstances at removal. Indicate all child 
and family circumstances that were present at the time of the child's 
removal and/or related to the child being placed into foster care for 
each removal reported in paragraph (d)(1) of this section. Indicate 
whether each circumstance described in paragraphs (d)(4)(i) through 
(xxxiv) of this section ``applies'' or ``does not apply'' for each 
removal indicated in paragraph (d)(1) of this section.
    (i) Runaway. The child has left, without authorization, the home or 
facility where the child was residing.
    (ii) Whereabouts unknown. The child's whereabouts are unknown and 
the title IV-E agency does not consider the child to have run away.
    (iii) Physical abuse. Alleged or substantiated physical abuse, 
injury or maltreatment of the child by a person responsible for the 
child's welfare.
    (iv) Sexual abuse. Alleged or substantiated sexual abuse or 
exploitation of the child by a person who is responsible for the child's 
welfare.
    (v) Psychological or emotional abuse. Alleged or substantiated 
psychological or emotional abuse, including verbal abuse, of the child 
by a person who is responsible for the child's welfare.
    (vi) Neglect. Alleged or substantiated negligent treatment or 
maltreatment of the child, including failure to provide adequate food, 
clothing, shelter, supervision or care by a person who is responsible 
for the child's welfare.
    (vii) Medical neglect. Alleged or substantiated medical neglect 
caused by a failure to provide for the appropriate health care of the 
child by a person who is responsible for the child's welfare, although 
the person was financially able to do so, or was offered financial or 
other means to do so.
    (viii) Domestic violence. Alleged or substantiated violent act(s), 
including any forceful detention of an individual that results in, 
threatens to result in, or attempts to cause physical injury or mental 
harm. This is committed by a person against another individual residing 
in the child's home and with whom such person is in an intimate 
relationship, dating relationship, is or was related by marriage, or has 
a child in common. This circumstance includes domestic violence between 
the child and his or her partner and applies to a child or youth of any 
age including those younger and older than the age of majority. This 
does not include alleged or substantiated maltreatment of the child by a 
person who is responsible for the child's welfare.
    (ix) Abandonment. The child was left alone or with others and the 
parent or legal guardian's identity is unknown and cannot be 
ascertained. This does not include a child left at a ``safe haven'' as 
defined by the title IV-E agency. This category does not apply when the 
identity of the parent(s) or legal guardian(s) is known.
    (x) Failure to return. The parent, legal guardian or caretaker did 
not or has not returned for the child or made his or her whereabouts 
known. This category does not apply when the identity of the parent, 
legal guardian or caretaker is unknown.
    (xi) Caretaker's alcohol use. A parent, legal guardian or other 
caretaker responsible for the child uses alcohol

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compulsively that is not of a temporary nature.
    (xii) Caretaker's drug use. A parent, legal guardian or other 
caretaker responsible for the child uses drugs compulsively that is not 
of a temporary nature.
    (xiii) Child alcohol use. The child uses alcohol.
    (xiv) Child drug use. The child uses drugs.
    (xv) Prenatal alcohol exposure. The child has been identified as 
prenatally exposed to alcohol, resulting in fetal alcohol spectrum 
disorders such as fetal alcohol exposure, fetal alcohol effect, or fetal 
alcohol syndrome.
    (xvi) Prenatal drug exposure. The child has been identified as 
prenatally exposed to drugs.
    (xvii) Diagnosed condition. The child has a clinical diagnosis by a 
qualified professional of a health, behavioral or mental health 
condition, such as one or more of the following: Intellectual 
disability, emotional disturbance, specific learning disability, 
hearing, speech or sight impairment, physical disability or other 
clinically diagnosed condition.
    (xviii) Inadequate access to mental health services. The child and/
or child's family has inadequate resources to access the necessary 
mental health services outside of the child's out-of-home care 
placement.
    (xix) Inadequate access to medical services. The child and/or 
child's family has inadequate resources to access the necessary medical 
services outside of the child's out-of-home care placement.
    (xx) Child behavior problem. The child's behavior in his or her 
school and/or community adversely affects his or her socialization, 
learning, growth and/or moral development. This includes all child 
behavior problems, as well as adjudicated and non-adjudicated status or 
delinquency offenses and convictions.
    (xxi) Death of caretaker. Existing family stress in caring for the 
child or an inability to care for the child due to the death of a 
parent, legal guardian or other caretaker.
    (xxii) Incarceration of caretaker. The child's parent, legal 
guardian or caretaker is temporarily or permanently placed in jail or 
prison which adversely affects his or her ability to care for the child.
    (xxiii) Caretaker's significant impairment--physical/emotional. A 
physical or emotional illness or disabling condition of the child's 
parent, legal guardian or caretaker that adversely limits his or her 
ability to care for the child.
    (xxiv) Caretaker's significant impairment--cognitive. The child's 
parent, legal guardian or caretaker has cognitive limitations that 
impact his or her ability to function in areas of daily life, which 
adversely affect his or her ability to care for the child. It also may 
be characterized by a significantly below-average score on a test of 
mental ability or intelligence.
    (xxv) Inadequate housing. The child's or his or her family's housing 
is substandard, overcrowded, unsafe or otherwise inadequate which 
results in it being inappropriate for the child to reside.
    (xxvi) Voluntary relinquishment for adoption. The child's parent has 
voluntarily relinquished the child by assigning the physical and legal 
custody of the child to the title IV-E agency, in writing, for the 
purpose of having the child adopted. This includes a child left at a 
``safe haven'' as defined by the title IV-E agency.
    (xxvii) Child requested placement. The child, age 18 or older, has 
requested placement into foster care.
    (xxviii) Sex trafficking. The child is a victim of sex trafficking 
at the time of removal.
    (xxix) Parental immigration detainment or deportation. The parent is 
or was detained or deported by immigration officials.
    (xxx) Family conflict related to child's sexual orientation, gender 
identity, or gender expression. There is family conflict related to the 
child's expressed or perceived sexual orientation, gender identity, or 
gender expression. This includes any conflict related to the ways in 
which a child manifests masculinity or femininity.
    (xxxi) Educational neglect. Alleged or substantiated failure of a 
parent or caregiver to enroll a child of mandatory school age in school 
or provide appropriate home schooling or needed

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special educational training, thus allowing the child or youth to engage 
in chronic truancy.
    (xxxii) Public agency title IV-E agreement. The child is in the 
placement and care responsibility of another public agency that has an 
agreement with the title IV-E agency pursuant to section 472(a)(2)(B) of 
the Act and on whose behalf title IV-E foster care maintenance payments 
are made.
    (xxxiii) Tribal title IV-E agreement. The child is in the placement 
and care responsibility of an Indian tribe, tribal organization or 
consortium with which the title IV-E agency has an agreement and on 
whose behalf title IV-E foster care maintenance payments are made.
    (xxxiv) Homelessness. The child or his or her family has no regular 
or adequate place to live. This includes living in a car, or on the 
street, or staying in a homeless or other temporary shelter.
    (5) Victim of sex trafficking prior to entering foster care. 
Indicate whether the child had been a victim of sex trafficking before 
the current out-of-home care episode. Indicate ``yes'' if the child was 
a victim or ``no'' if the child had not been a victim.
    (i) Report to law enforcement. If the title IV-E agency indicated 
``yes'' in paragraph (d)(5) of this section, indicate whether the title 
IV-E agency made a report to law enforcement for entry into the National 
Crime Information Center (NCIC) database. Indicate ``yes'' if the agency 
made a report to law enforcement and indicate ``no'' if the agency did 
not make a report.
    (ii) Date. If the title IV-E agency indicated ``yes'' in paragraph 
(d)(5)(i) of this section, indicate the date that the agency made the 
report to law enforcement.
    (6) Victim of sex trafficking while in foster care. Indicate ``yes'' 
if the child was a victim of sex trafficking while in out-of-home care 
during the current out-of-home care episode. Indicate ``no'' if the 
child was not a victim of sex trafficking during the current out-of-home 
care episode.
    (i) Report to law enforcement. If the title IV-E agency indicated 
``yes'' in paragraph (d)(6) of this section, indicate whether the agency 
made a report to law enforcement for entry into the NCIC database. 
Indicate ``yes'' if the title IV-E agency made a report(s) to law 
enforcement and indicate ``no'' if the title IV-E agency did not make a 
report.
    (ii) Date. If the title IV-E agency indicated ``yes'' in paragraph 
(d)(6)(i) of this section, indicate the date(s) the agency made the 
report(s) to law enforcement.
    (e) Living arrangement and provider information--(1) Date of living 
arrangement. Indicate the month, day and year representing the first 
date of placement in each of the child's living arrangements for each 
out-of-home care episode. In the case of a child who has run away, whose 
whereabouts are unknown, or who is already in a living arrangement and 
remains there when the title IV-E agency receives placement and care 
responsibility, indicate the date of the Voluntary Placement Agreement 
or court order providing the title IV-E agency with placement and care 
responsibility for the child, rather than the date when the child was 
originally placed in the living arrangement.
    (2) Foster family home. Indicate whether each of the child's living 
arrangements is a foster family home, with a ``yes'' or ``no'' as 
appropriate. If the child has run away or the child's whereabouts are 
unknown, indicate ``no.'' If the title IV-E agency indicates that the 
child is living in a foster family home, by indicating ``yes,'' the 
title IV-E agency must complete paragraph (e)(3) of this section. If the 
title IV-E agency indicates ``no,'' the title IV-E agency must complete 
paragraph (e)(4) of this section.
    (3) Foster family home type. If the title IV-E agency indicated that 
the child is living in a foster family home in paragraph (e)(2) of this 
section, indicate whether each foster family home type listed in 
paragraphs (e)(3)(i) through (vi) of this section applies or does not 
apply; otherwise the title IV-E agency must leave paragraph (e)(3) 
blank.
    (i) Licensed home. The child's living arrangement is licensed or 
approved by the state or tribal licensing/approval authority.
    (ii) Therapeutic foster family home. The home provides specialized 
care and services.
    (iii) Shelter care foster family home. The home is so designated by 
the state

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or tribal licensing/approval authority, and is designed to provide 
short-term or transitional care.
    (iv) Relative foster family home. The foster parent(s) is related to 
the child by biological, legal or marital connection and the relative 
foster parent(s) lives in the home as his or her primary residence.
    (v) Pre-adoptive home. The home is one in which the family and the 
title IV-E agency have agreed on a plan to adopt the child.
    (vi) Kin foster family home. The home is one in which there is a kin 
relationship as defined by the title IV-E agency, such as one where 
there is a psychological, cultural or emotional relationship between the 
child or the child's family and the foster parent(s) and there is not a 
legal, biological, or marital connection between the child and foster 
parent.
    (4) Other living arrangement type. If the title IV-E agency 
indicated that the child's living arrangement is other than a foster 
family home in paragraph (e)(2) of this section, indicate the type of 
setting; otherwise the title IV-E agency must leave this paragraph 
(e)(4) blank. Indicate ``group home-family operated'' if the child is in 
a group home that provides 24-hour care in a private family home where 
the family members are the primary caregivers. Indicate ``group home-
staff operated'' if the child is in a group home that provides 24-hour 
care for children where the care-giving is provided by shift or rotating 
staff. Indicate ``group home-shelter care'' if the child is in a group 
home that provides 24-hour care which is short-term or transitional in 
nature, and is designated by the state or tribal licensing/approval 
authority to provide shelter care. Indicate ``residential treatment 
center'' if the child is in a facility that has the purpose of treating 
children with mental health or behavioral conditions or if the child is 
placed with a parent who is in a licensed residential family-based 
treatment facility for substance abuse pursuant to section 472(j) of the 
Act. This does not include a qualified residential treatment program 
defined in section 472(k)(4) of the Act. Indicate ``qualified 
residential treatment program'' if the child is in a placement that 
meets all of the requirements of section 472(k)(2)(A) and (4) of the 
Act. Indicate ``child care institution'' if the child is in a private 
child care institution, or a public child care institution which 
accommodates no more than 25 children, and is licensed by the state or 
tribal authority responsible for licensing or approving child care 
institutions. This includes a setting specializing in providing 
prenatal, post-partum, or parenting supports for youth pursuant to 
section 472(k)(2)(B) of the Act, and a setting providing high-quality 
residential care and supportive services to children and youth who have 
been found to be, or are at risk of becoming, sex trafficking victims 
pursuant to section 472(k)(2)(D) of the Act. This does not include 
detention facilities, forestry camps, training schools or any other 
facility operated primarily for the detention of children who are 
determined to be delinquent. Indicate ``child care institution-shelter 
care'' if the child is in a child care institution and the institution 
is designated to provide shelter care by the state or tribal authority 
responsible for licensing or approving child care institutions and is 
short-term or transitional in nature. Indicate ``supervised independent 
living'' if the child is living independently in a supervised setting. 
Indicate ``juvenile justice facility'' if the child is in a secure 
facility or institution where alleged or adjudicated juvenile 
delinquents are housed. Indicate ``medical or rehabilitative facility'' 
if the child is in a facility where an individual receives medical or 
physical health care, such as a hospital. Indicate ``psychiatric 
hospital'' if the child is in a facility that provides emotional or 
psychological health care and is licensed or accredited as a hospital. 
Indicate ``runaway'' if the child has left, without authorization, the 
home or facility where the child was placed. Indicate ``whereabouts 
unknown'' if the child is not in the physical custody of the title IV-E 
agency or person or institution with whom the child has been placed, the 
child's whereabouts are unknown, and the title IV-E agency does not 
consider the child to have run away. Indicate ``placed at home'' if the 
child is home with the parent(s) or legal guardian(s) in preparation for 
the

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title IV-E agency to return the child home permanently.
    (5) Location of living arrangement. Indicate whether each of the 
child's living arrangements reported in paragraph (e)(1) of this section 
is located within or outside of the reporting state or tribal service 
area or is outside of the country. Indicate ``out-of-state or out-of-
tribal service area'' if the child's living arrangement is located 
outside of the reporting state or tribal service area but inside the 
United States. Indicate ``in-state or in-tribal service area'' if the 
child's living arrangement is located within the reporting state or 
tribal service area. Indicate ``out-of-country'' if the child's living 
arrangement is outside of the United States. Indicate ``runaway or 
whereabouts unknown'' if the child has run away from his or her living 
arrangement or the child's whereabouts are unknown. If the title IV-E 
agency indicates either ``out-of-state or out-of-tribal service area'' 
or ``out-of-country'' for the child's living arrangement, the title IV-E 
agency must complete paragraph (e)(6) of this section; otherwise the 
title IV-E agency must leave paragraph (e)(6) of this section blank.
    (6) Jurisdiction or country where child is living. Indicate the 
state, tribal service area, Indian reservation, or country where the 
reporting title IV-E agency placed the child for each living 
arrangement, if the title IV-E agency indicated either ``out-of-state'' 
or ``out-of-tribal service area'' or ``out-of-country'' in paragraph 
(e)(5) of this section; otherwise the title IV-E agency must leave this 
paragraph (e)(6) blank. The title IV-E agency must report the 
information in a format according to ACF's specifications.
    (7) Marital status of the foster parent(s). Indicate the marital 
status of the child's foster parent(s) for each foster family home 
living arrangement in which the child is placed, as indicated in 
paragraph (e)(3) of this section. Indicate ``married couple'' if the 
foster parents are considered united in matrimony according to 
applicable laws. Include common law marriage, where provided by 
applicable laws. Indicate ``unmarried couple'' if the foster parents are 
living together as a couple, but are not united in matrimony according 
to applicable laws. Indicate ``separated'' if the foster parent is 
legally separated or is living apart from his or her spouse. Indicate 
``single adult'' if the foster parent is not married and is not living 
with another individual as part of a couple. If the response is either 
``married couple'' or ``unmarried couple,'' the title IV-E agency must 
complete the paragraphs for the second foster parent in paragraphs 
(e)(14) through (18) of this section; otherwise the title IV-E agency 
must leave those paragraphs blank.
    (8) Child's relationship to the foster parent(s). Indicate the type 
of relationship between the child and his or her foster parent(s), for 
each foster family home living arrangement in which the child is placed, 
as indicated in paragraph (e)(3) of this section. Indicate 
``relative(s)'' if the foster parent(s) is the child's relative (by 
biological, legal or marital connection). Indicate ``non-relative(s)'' 
if the foster parent(s) is not related to the child (by biological, 
legal or marital connection). Indicate ``kin'' if the foster parent(s) 
has kin relationship to the child as defined by the title IV-E agency, 
such as one where there is a psychological, cultural or emotional 
relationship between the child or the child's family and the foster 
parent(s) and there is not a legal, biological, or marital connection 
between the child and foster parent.
    (9) Year of birth for first foster parent. Indicate the year of 
birth for the first foster parent for each foster family home living 
arrangement in which the child is placed, as indicated in paragraph 
(e)(3) of this section.
    (10) First foster parent tribal membership. For state title IV-E 
agencies only: Indicate whether the first foster parent is a member of 
an Indian tribe. Indicate ``yes,'' ``no,'' or ``unknown.''
    (11) Race of first foster parent. Indicate the race of the first 
foster parent for each foster family home living arrangement in which 
the child is placed, as indicated in paragraph (e)(3) of this section. 
In general, an individual's race is determined by the individual. 
Indicate whether each race category listed in paragraphs (e)(11)(i) 
through (vii) of this section applies with a ``yes'' or ``no.''

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    (i) Race--American Indian or Alaska Native. An American Indian or 
Alaska Native individual has origins in any of the original peoples of 
North or South America (including Central America) and maintains tribal 
affiliation or community attachment.
    (ii) Race--Asian. An Asian individual has origins in any of the 
original peoples of the Far East, Southeast Asia or the Indian 
subcontinent including, for example, Cambodia, China, India, Japan, 
Korea, Malaysia, Pakistan, the Philippine Islands, Thailand and Vietnam.
    (iii) Race--Black or African American. A Black or African American 
individual has origins in any of the black racial groups of Africa.
    (iv) Race--Native Hawaiian or Other Pacific Islander. A Native 
Hawaiian or Other Pacific Islander individual has origins in any of the 
original peoples of Hawaii, Guam, Samoa or other Pacific Islands.
    (v) Race--White. A White individual has origins in any of the 
original peoples of Europe, the Middle East or North Africa.
    (vi) Race--unknown. The first foster parent does not know his or her 
race, or at least one race.
    (vii) Race--declined. The first foster parent has declined to 
identify a race.
    (12) Hispanic or Latino ethnicity of first foster parent. Indicate 
the Hispanic or Latino ethnicity of the first foster parent for each 
foster family home living arrangement in which the child is placed, as 
indicated in paragraph (e)(3) of this section. In general, an 
individual's ethnicity is determined by the individual. An individual is 
of Hispanic or Latino ethnicity if the individual is a person of Cuban, 
Mexican, Puerto Rican, South or Central American or other Spanish 
culture or origin, regardless of race. Indicate whether this category 
applies with a ``yes'' or ``no.'' If the first foster parent does not 
know his or her ethnicity indicate ``unknown.'' If the individual 
refuses to identify his or her ethnicity, indicate ``declined.''
    (13) Sex of first foster parent. Indicate whether the first foster 
parent is ``female'' or ``male.''
    (14) Year of birth for second foster parent. Indicate the birth year 
of the second foster parent for each foster family home living 
arrangement in which the child is placed, as indicated in paragraph 
(e)(3) of this section, if applicable. The title IV-E agency must leave 
this paragraph (e)(14) blank if there is no second foster parent 
according to paragraph (e)(7) of this section.
    (15) Second foster parent tribal membership. For state title IV-E 
agencies only: Indicate whether the second foster parent is a member of 
an Indian tribe. Indicate ``yes,'' ``no,'' or ``unknown.''
    (16) Race of second foster parent. Indicate the race of the second 
foster parent for each foster family home living arrangement in which 
the child is placed, as indicated in paragraph (e)(3) of this section, 
if applicable. In general, an individual's race is determined by the 
individual. Indicate whether each race category listed in paragraphs 
(e)(16)(i) through (vii) of this section applies with a ``yes'' or 
``no.'' The title IV-E agency must leave this paragraph (e)(16) blank if 
there is no second foster parent according to paragraph (e)(7) of this 
section.
    (i) Race--American Indian or Alaska Native. An American Indian or 
Alaska Native individual has origins in any of the original peoples of 
North or South America (including Central America) and maintains tribal 
affiliation or community attachment.
    (ii) Race--Asian. An Asian individual has origins in any of the 
original peoples of the Far East, Southeast Asia or the Indian 
subcontinent including, for example, Cambodia, China, India, Japan, 
Korea, Malaysia, Pakistan, the Philippine Islands, Thailand and Vietnam.
    (iii) Race--Black or African American. A Black or African American 
individual has origins in any of the black racial groups of Africa.
    (iv) Race--Native Hawaiian or Other Pacific Islander. A Native 
Hawaiian or Other Pacific Islander individual has origins in any of the 
original peoples of Hawaii, Guam, Samoa or other Pacific Islands.
    (v) Race--White. A White individual has origins in any of the 
original peoples of Europe, the Middle East or North Africa.

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    (vi) Race--unknown. The second foster parent does not know his or 
her race, or at least one race.
    (vii) Race--declined. The second foster parent has declined to 
identify a race.
    (17) Hispanic or Latino ethnicity of second foster parent. Indicate 
the Hispanic or Latino ethnicity of the second foster parent for each 
foster family home living arrangement in which the child is placed, as 
indicated in paragraph (e)(3) of this section, if applicable. In 
general, an individual's ethnicity is determined by the individual. An 
individual is of Hispanic or Latino ethnicity if the individual is a 
person of Cuban, Mexican, Puerto Rican, South or Central American or 
other Spanish culture or origin, regardless of race. Indicate whether 
this category applies with a ``yes'' or ``no.'' If the second foster 
parent does not know his or her ethnicity, indicate ``unknown.'' If the 
individual refuses to identify his or her ethnicity, indicate 
``declined.'' The title IV-E agency must leave this paragraph (e)(17) 
blank if there is no second foster parent according to paragraph (e)(7) 
of this section.
    (18) Sex of second foster parent. Indicate whether the second foster 
parent is ``female'' or ``male.''
    (f) Permanency planning--(1) Permanency plan. Indicate each 
permanency plan established for the child. Indicate ``reunify with 
parent(s) or legal guardian(s)'' if the plan is to keep the child in 
out-of-home care for a limited time and the title IV-E agency is to work 
with the child's parent(s) or legal guardian(s) to establish a stable 
family environment. Indicate ``live with other relatives'' if the plan 
is for the child to live permanently with a relative(s) (by biological, 
legal or marital connection) who is not the child's parent(s) or legal 
guardian(s). Indicate ``adoption'' if the plan is to facilitate the 
child's adoption by relatives, foster parents, kin or other unrelated 
individuals. Indicate ``guardianship'' if the plan is to establish a new 
legal guardianship. Indicate ``planned permanent living arrangement'' if 
the plan is for the child to remain in foster care until the title IV-E 
agency's placement and care responsibility ends. The title IV-E agency 
must only select ``planned permanent living arrangement'' consistent 
with the requirements in section 475(5)(C)(i) of the Act. Indicate 
``permanency plan not established'' if a permanency plan has not yet 
been established.
    (2) Date of permanency plan. Indicate the month, day and year that 
each permanency plan(s) was established during each out-of-home care 
episode.
    (3) Date of periodic review(s). Enter the month, day and year of 
each periodic review, either by a court or by administrative review (as 
defined in section 475(6) of the Act) that meets the requirements of 
section 475(5)(B) of the Act.
    (4) Date of permanency hearing(s). Enter the month, day and year of 
each permanency hearing held by a court or an administrative body 
appointed or approved by the court that meets the requirements of 
section 475(5)(C) of the Act.
    (5) Caseworker visit dates. Enter each date in which a caseworker 
had an in-person, face-to-face visit with the child consistent with 
section 422(b)(17) of the Act. Indicate the month, day and year of each 
visit.
    (6) Caseworker visit locations. Indicate the location of each in-
person, face-to-face visit between the caseworker and the child. 
Indicate ``child's residence'' if the visit occurred at the location 
where the child is currently residing, such as the current foster care 
provider's home, child care institution or facility. Indicate ``other 
location'' if the visit occurred at any location other than where the 
child currently resides, such as the child's school, a court, a child 
welfare office or in the larger community.
    (g) General exit information. Provide exit information for each out-
of-home care episode. An exit occurs when the title IV-E agency's 
placement and care responsibility of the child ends.
    (1) Date of exit. Indicate the month, day and year for each of the 
child's exits from out-of-home care. An exit occurs when the title IV-E 
agency's placement and care responsibility of the child ends. If the 
child has not exited out-of-home care the title IV-E agency must leave 
this paragraph (g)(1) blank. If this paragraph (g)(1) is applicable, 
paragraphs (g)(2) and (3) of this section must have a response.

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    (2) Exit transaction date. A non-modifiable, computer-generated date 
which accurately indicates the month, day and year each response to 
paragraph (g)(1) of this section was entered into the information 
system.
    (3) Exit reason. Indicate the reason for each of the child's exits 
from out-of-home care. Indicate ``not applicable'' if the child has not 
exited out-of-home care. Indicate ``reunify with parent(s)/legal 
guardian(s)'' if the child was returned to his or her parent(s) or legal 
guardian(s) and the title IV-E agency no longer has placement and care 
responsibility. Indicate ``live with other relatives'' if the child 
exited to live with a relative (related by a biological, legal or 
marital connection) other than his or her parent(s) or legal 
guardian(s). Indicate ``adoption'' if the child was legally adopted. 
Indicate ``emancipation'' if the child exited care due to age. Indicate 
``guardianship'' if the child exited due to a legal guardianship of the 
child. Indicate ``runaway or whereabouts unknown'' if the child ran away 
or the child's whereabouts were unknown at the time that the title IV-E 
agency's placement and care responsibility ends. Indicate ``death of 
child'' if the child died while in out-of-home care. Indicate ``transfer 
to another agency'' if placement and care responsibility for the child 
was transferred to another agency, either within or outside of the 
reporting state or tribal service area.
    (4) Transfer to another agency. If the title IV-E agency indicated 
the child was transferred to another agency in paragraph (g)(3) of this 
section, indicate the type of agency that received placement and care 
responsibility for the child from the following options: ``State title 
IV-E agency,'' ``Tribal title IV-E agency,'' ``Indian tribe or tribal 
agency (non-IV-E),'' ``juvenile justice agency,'' ``mental health 
agency,'' ``other public agency'' or ``private agency.''
    (h) Exit to adoption and guardianship information. Report 
information in this paragraph (h) only if the title IV-E agency 
indicated the child exited to adoption or legal guardianship in 
paragraph (g)(3) of this section. Otherwise the title IV-E agency must 
leave paragraphs (h)(1) through (15) of this section blank.
    (1) Marital status of the adoptive parent(s) or guardian(s). 
Indicate the marital status of the adoptive parent(s) or legal 
guardian(s). Indicate ``married couple'' if the adoptive parents or 
legal guardians are considered united in matrimony according to 
applicable laws. Include common law marriage, where provided by 
applicable laws. Indicate ``married but individually adopting or 
obtaining legal guardianship'' if the adoptive parents or legal 
guardians are considered united in matrimony according to applicable 
laws, but are individually adopting or obtaining legal guardianship. 
Indicate ``separated'' if the foster parent is legally separated or is 
living apart from his or her spouse. Indicate ``unmarried couple'' if 
the adoptive parents or guardians are living together as a couple, but 
are not united in matrimony according to applicable laws. Use this 
response option even if only one person of the unmarried couple is the 
adoptive parent or legal guardian of the child. Indicate ``single 
adult'' if the adoptive parent or legal guardian is not married and is 
not living with another individual as part of a couple. If the response 
is ``married couple'' or ``unmarried couple,'' the title IV-E agency 
also must complete paragraphs for the second adoptive parent or second 
legal guardian in paragraphs (h)(8) through (12) of this section; 
otherwise the title IV-E agency must leave those paragraphs blank.
    (2) Child's relationship to the adoptive parent(s) or guardian(s). 
Indicate the type of relationship between the child and his or her 
adoptive parent(s) or legal guardian(s). Indicate whether each 
relationship listed in paragraphs (h)(2)(i) through (iv) of this section 
``applies'' or ``does not apply.''
    (i) Relative(s). The adoptive parent(s) or legal guardian(s) is the 
child's relative (by biological, legal or marital connection).
    (ii) Kin. The adoptive parent(s) or legal guardian(s) has a kin 
relationship with the child, as defined by the title IV-E agency, such 
as one where there is a psychological, cultural or emotional 
relationship between the child or the child's family and the adoptive

[[Page 314]]

parent(s) or legal guardian(s) and there is not a legal, biological, or 
marital connection between the child and foster parent.
    (iii) Non-relative(s). The adoptive parent(s) or legal guardian(s) 
is not related to the child by biological, legal or marital connection.
    (iv) Foster parent(s). The adoptive parent(s) or legal guardian(s) 
was the child's foster parent(s).
    (3) Date of birth of first adoptive parent or guardian. Indicate the 
month, day and year of the birth of the first adoptive parent or legal 
guardian.
    (4) First adoptive parent or guardian tribal membership. For state 
title IV-E agencies only: Indicate whether the first adoptive parent or 
guardian is a member of an Indian tribe. Indicate ``yes,'' ``no'' or 
``unknown.''
    (5) Race of first adoptive parent or guardian. In general, an 
individual's race is determined by the individual. Indicate whether each 
race category listed in paragraphs (h)(5)(i) through (vii) of this 
section applies with a ``yes'' or ``no.''
    (i) Race--American Indian or Alaska Native. An American Indian or 
Alaska Native individual has origins in any of the original peoples of 
North or South America (including Central America), and maintains tribal 
affiliation or community attachment.
    (ii) Race--Asian. An Asian individual has origins in any of the 
original peoples of the Far East, Southeast Asia or the Indian 
subcontinent including, for example, Cambodia, China, India, Japan, 
Korea, Malaysia, Pakistan, the Philippine Islands, Thailand and Vietnam.
    (iii) Race--Black or African American. A Black or African American 
individual has origins in any of the black racial groups of Africa.
    (iv) Race--Native Hawaiian or Other Pacific Islander. A Native 
Hawaiian or Other Pacific Islander individual has origins in any of the 
original peoples of Hawaii, Guam, Samoa or other Pacific Islands.
    (v) Race--White. A White individual has origins in any of the 
original peoples of Europe, the Middle East or North Africa.
    (vi) Race--Unknown. The first adoptive parent or legal guardian does 
not know his or her race, or at least one race.
    (vii) Race--Declined. The first adoptive parent, or legal guardian 
has declined to identify a race.
    (6) Hispanic or Latino ethnicity of first adoptive parent or 
guardian. In general, an individual's ethnicity is determined by the 
individual. An individual is of Hispanic or Latino ethnicity if the 
individual is a person of Cuban, Mexican, Puerto Rican, South or Central 
American or other Spanish culture or origin, regardless of race. 
Indicate whether this category applies with a ``yes'' or ``no.'' If the 
first adoptive parent or legal guardian does not know his or her 
ethnicity, indicate ``unknown.'' If the individual refuses to identify 
his or her ethnicity, indicate ``declined.''
    (7) Sex of first adoptive parent or guardian. Indicate whether the 
first adoptive parent is ``female'' or ``male.''
    (8) Date of birth of second adoptive parent, guardian, or other 
member of the couple. Indicate the month, day and year of the date of 
birth of the second adoptive parent, legal guardian, or other member of 
the couple. The title IV-E agency must leave this paragraph (h)(8) blank 
if there is no second adoptive parent, legal guardian, or other member 
of the couple according to paragraph (h)(1) of this section.
    (9) Second adoptive parent, guardian, or other member of the couple 
tribal membership. For state title IV-E agencies only: Indicate whether 
the second adoptive parent or guardian is a member of an Indian tribe. 
Indicate ``yes,'' ``no'' or ``unknown.''
    (10) Race of second adoptive parent, guardian, or other member of 
the couple. In general, an individual's race is determined by the 
individual. Indicate whether each race category listed in paragraphs 
(h)(10)(i) through (vii) of this section applies with a ``yes'' or 
``no.'' The title IV-E agency must leave this paragraph (h)(10) blank if 
there is no second adoptive parent, legal guardian, or other member of 
the couple according to paragraph (h)(1) of this section.
    (i) Race--American Indian or Alaska Native. An American Indian or 
Alaska Native individual has origins in any of the original peoples of 
North or South America (including Central America),

[[Page 315]]

and maintains tribal affiliation or community attachment.
    (ii) Race--Asian. An Asian individual has origins in any of the 
original peoples of the Far East, Southeast Asia or the Indian 
subcontinent including, for example, Cambodia, China, India, Japan, 
Korea, Malaysia, Pakistan, the Philippine Islands, Thailand and Vietnam.
    (iii) Race--Black or African American. A Black or African American 
individual has origins in any of the black racial groups of Africa.
    (iv) Race--Native Hawaiian or Other Pacific Islander. A Native 
Hawaiian or Other Pacific Islander individual has origins in any of the 
original peoples of Hawaii, Guam, Samoa or other Pacific Islands.
    (v) Race--White. A White individual has origins in any of the 
original peoples of Europe, the Middle East or North Africa.
    (vi) Race--Unknown. The second adoptive parent, legal guardian, or 
other member of the couple does not know his or her race, or at least 
one race.
    (vii) Race--Declined. The second adoptive parent, legal guardian, or 
other member of the couple has declined to identify a race.
    (11) Hispanic or Latino ethnicity of second adoptive parent, 
guardian, or other member of the couple. In general, an individual's 
ethnicity is determined by the individual. An individual is of Hispanic 
or Latino ethnicity if the individual is a person of Cuban, Mexican, 
Puerto Rican, South or Central American or other Spanish culture or 
origin, regardless of race. Indicate whether this category applies with 
a ``yes'' or ``no.'' If the second adoptive parent, legal guardian, or 
other member of the couple does not know his or her ethnicity, indicate 
``unknown.'' If the individual refuses to identify his or her ethnicity, 
indicate ``declined.'' The title IV-E agency must leave this paragraph 
(h)(11) blank if there is no second adoptive parent, legal guardian, or 
other member of the couple according to paragraph (h)(1) of this 
section.
    (12) Sex of second adoptive parent, guardian, or other member of the 
couple. Indicate whether the second adoptive parent, guardian, or other 
member of the couple is ``female'' or ``male.''
    (13) Inter/Intrajurisdictional adoption or guardianship. Indicate 
whether the child was placed within the state or tribal service area, 
outside of the state or tribal service area or into another country for 
adoption or legal guardianship. Indicate ``interjurisdictional adoption 
or guardianship'' if the reporting title IV-E agency placed the child 
for adoption or legal guardianship outside of the state or tribal 
service area but within the United States. Indicate ``intercountry 
adoption or guardianship'' if the reporting title IV-E agency placed the 
child for adoption or legal guardianship outside of the United States. 
Indicate ``intrajurisdictional adoption or guardianship'' if the 
reporting title IV-E agency placed the child within the same state or 
tribal service area as the one with placing responsibility.
    (14) Assistance agreement type. Indicate the type of assistance 
agreement between the title IV-E agency and the adoptive parent(s) or 
legal guardian(s): ``Title IV-E adoption assistance agreement''; 
``State/tribal adoption assistance agreement''; ``Adoption-Title IV-E 
agreement non-recurring expenses only''; ``Adoption-Title IV-E agreement 
Medicaid only''; ``Title IV-E guardianship assistance agreement''; 
``State/tribal guardianship assistance agreement''; or ``no agreement'' 
if there is no assistance agreement.
    (15) Siblings in adoptive or guardianship home. Indicate the number 
of siblings of the child who are in the same adoptive or guardianship 
home as the child. A sibling to the child is his or her brother or 
sister by biological, legal, or marital connection. Do not include the 
child who is subject of this record in the total number. If the child 
does not have any siblings, the title IV-E agency must indicate ``not 
applicable.'' If the child has siblings, but they are not in the same 
adoptive or guardianship home as the child, the title IV-E agency must 
indicate ``0.''

[85 FR 28424, May 12, 2020]



Sec.  1355.45  Adoption and guardianship assistance data file elements.

    A title IV-E agency must report the following information for each 
child in

[[Page 316]]

the adoption and guardianship assistance reporting population, if 
applicable based on Sec.  1355.42(b).
    (a) General information--(1) Title IV-E agency. Indicate the title 
IV-E agency responsible for submitting the AFCARS data to ACF per 
requirements issued by ACF.
    (2) Report date. The report date corresponds to the end of the 
current report period. Indicate the last month and the year of the 
report period.
    (3) Child record number. The child record number is the encrypted, 
unique person identification number. The record number must be encrypted 
in accordance with ACF standards. Indicate the record number for the 
child.
    (b) Child demographics--(1) Child's date of birth. Indicate the 
month, day and year of the child's birth.
    (2) Child's sex. Indicate ``male'' or ``female.''
    (3) Child's race. In general, a child's race is determined by the 
child or the child's parent(s) or legal guardian(s). Indicate whether 
each race category listed in the data elements described in paragraphs 
(b)(2)(i) through (viii) of this section applies with a ``yes'' or 
``no.''
    (i) Race--American Indian or Alaska Native. An American Indian or 
Alaska Native child has origins in any of the original peoples of North 
or South America (including Central America), and maintains Tribal 
affiliation or community attachment.
    (ii) Race--Asian. An Asian child has origins in any of the original 
peoples of the Far East, Southeast Asia or the Indian subcontinent 
including, for example, Cambodia, China, India, Japan, Korea, Malaysia, 
Pakistan, the Philippine Islands, Thailand and Vietnam.
    (iii) Race--Black or African American. A Black or African American 
child has origins in any of the black racial groups of Africa.
    (iv) Race--Native Hawaiian or Other Pacific Islander. A Native 
Hawaiian or Other Pacific Islander child has origins in any of the 
original peoples of Hawaii, Guam, Samoa or other Pacific Islands.
    (v) Race--White. A White child has origins in any of the original 
peoples of Europe, the Middle East or North Africa.
    (vi) Race--Unknown. The child or parent or legal guardian does not 
know the race, or at least one race of the child. This category does not 
apply when the child has been abandoned or the parents failed to return 
and the identity of the child, parent(s), or legal guardian(s) is known.
    (vii) Race--Abandoned. The child's race is unknown because the child 
has been abandoned. Abandoned means that the child was left alone or 
with others and the parent(s) or legal guardian(s)' identity is unknown 
and cannot be ascertained. This includes a child left at a ``safe 
haven.''
    (viii) Race--Declined. The child or parent or legal guardian has 
declined to identify a race.
    (4) Hispanic or Latino ethnicity. In general, a child's ethnicity is 
determined by the child or the child's parent(s) or legal guardian(s). A 
child is of Hispanic or Latino ethnicity if the child is a person of 
Cuban, Mexican, Puerto Rican, South or Central American or other Spanish 
culture or origin, regardless of race. Indicate whether this category 
applies with a ``yes'' or ``no.'' If the child or the child's parent or 
legal guardian does not know or cannot communicate whether the child is 
of Hispanic or Latino ethnicity, indicate ``unknown.'' If the child was 
abandoned indicate ``abandoned.'' Abandoned means that the child was 
left alone or with others and the parent(s) or legal guardian(s)' 
identity is unknown and cannot be ascertained. This includes a child 
left at a ``safe haven.'' If the child or the child's parent(s) or legal 
guardian(s) refuses to identify the child's ethnicity, indicate 
``declined.''
    (c) Adoption and guardianship assistance agreement information--(1) 
Assistance agreement type. Indicate whether the child is or was in a 
finalized adoption with a title IV-E adoption assistance agreement or in 
a legal guardianship with a title IV-E guardianship assistance 
agreement, pursuant to sections 473(a) and 473(d) of the Act, in effect 
during the report period. Indicate ``title IV-E adoption assistance 
agreement'' or ``title IV-E guardianship assistance agreement,'' as 
appropriate.
    (2) Adoption or guardianship subsidy amount. Indicate the per diem 
dollar amount of the financial subsidy paid to

[[Page 317]]

the adoptive parent(s) or legal guardian(s) on behalf of the child 
during the last month of the current report period, if any. The title 
IV-E agency must indicate ``0'' if a financial subsidy was not paid 
during the last month of the report period.
    (d) Adoption finalization or guardianship legalization date. 
Indicate the month, day and year that the child's adoption was finalized 
or the guardianship became legalized.
    (e) Agreement termination date. If the title IV-E agency terminated 
the adoption assistance or guardianship assistance agreement or the 
agreement expired during the report period, indicate the month, day and 
year that the agreement terminated or expired; otherwise leave this data 
element blank.
    (f) Adoption or guardianship placing agency. Indicate the agency 
that placed the child for adoption or legal guardianship. Indicate 
``title IV-E agency'' if the reporting title IV-E agency placed the 
child for adoption or legal guardianship. Indicate ``private agency 
under agreement'' if a private agency placed the child for adoption or 
legal guardianship through an agreement with the reporting title IV-E 
agency. Indicate ``Indian tribe under contract/agreement'' if an Indian 
tribe, tribal organization or consortia placed the child for adoption or 
legal guardianship through a contract or an agreement with the reporting 
title IV-E agency.

[81 FR 90569, Dec. 14, 2016, as amended at 85 FR 28433, May 12, 2020]



Sec.  1355.46  Compliance.

    (a) Files subject to compliance. ACF will evaluate the out-of-home 
care and adoption and guardianship assistance data files that a title 
IV-E agency submits to determine whether the data complies with the 
requirements of Sec.  1355.43 and the data file submission and data 
quality standards described in paragraphs (c) and (d) of this section. 
ACF will exempt records related to a child in either data file whose 
18th birthday occurred in a prior report period and will exempt records 
relating to a child in the adoption and guardianship assistance data 
file who is in a title IV-E guardianship from a compliance determination 
as described in paragraph (e) of this section.
    (b) Errors. ACF will utilize the error definitions in paragraphs 
(b)(1) through (5) of this section to assess a title IV-E agency's out-
of-home care and adoption and guardianship assistance data files. This 
assessment of errors will help ACF to determine if the title IV-E 
agency's submitted data files meet the data file submission and data 
quality standards outlined in paragraphs (c) and (d) of this section. 
ACF will develop and issue error specifications.
    (1) Missing data. Missing data refers to instances in which a data 
element has a blank or otherwise missing response, when such a response 
is not a valid option as described in Sec. Sec.  1355.44 or 1355.45.
    (2) Invalid data. Invalid data refers to instances in which a data 
element contains a value that is outside the parameters of acceptable 
responses or exceeds, either positively or negatively, the acceptable 
range of response options as described in Sec. Sec.  1355.44 or 1355.45.
    (3) Internally inconsistent data. Internally inconsistent data 
refers to instances in which a data element fails an internal 
consistency check designed to validate the logical relationship between 
data elements within each record. This assessment will identify all data 
elements involved in a particular check as in error.
    (4) Cross-file errors. A cross-file error occurs when a cross-file 
check determines that a response option for a data element recurs across 
the records in either the out-of-home care data file or adoption and 
guardianship assistance data file beyond a specified acceptable 
threshold as specified per ACF.
    (5) Tardy transactions. Tardy transactions are instances in which 
the removal transaction date or exit transaction date described in Sec.  
1355.44(d)(2) and (g)(2) respectively, are entered into the title IV-E 
agency's information system more than 30 days after the event.
    (c) Data file standards. To be in compliance with the AFCARS 
requirements, the title IV-E agency must submit a data file in 
accordance with the data file standards described in paragraphs (c)(1) 
through (3) of this section.

[[Page 318]]

    (1) Timely submission. ACF must receive the data files on or before 
the reporting deadline described in Sec.  1355.43(a).
    (2) Proper format. The data files must meet the technical standards 
issued by ACF for data file construction and transmission. In addition, 
each record subject to compliance standards within the data file must 
have the data elements described in Sec. Sec.  1355.44(a) and (b)(1) and 
(2) and 1355.45(a) and (b)(1) and (2) be 100 percent free of missing 
data, invalid data, and internally inconsistent data (see paragraphs 
(b)(1) through (3) of this section). ACF will not process a title IV-E 
agency's data file that does not meet the proper format standard.
    (d) Data quality standards. (1) To be in compliance with the AFCARS 
requirements, the title IV-E agency must submit a data file that has no 
more than 10 percent total of missing, invalid, or internally 
inconsistent data, or tardy transactions for each data element of 
applicable records. These standards are in addition to the formatting 
standards described in paragraph (c)(2) of this section.
    (2) Acceptable cross-file. The data files must be free of cross-file 
errors that exceed the acceptable thresholds, as defined by ACF.
    (e) Compliance determination and corrected data. (1) ACF will first 
determine whether the title IV-E agency's out-of-home care data file and 
adoption and guardianship assistance data file meets the data file 
standards in paragraph (c) of this section. Compliance is determined 
separately for each data file.
    (2) If each data file meets the data file standards, ACF will then 
determine whether each data file meets the data quality standards in 
paragraph (d) of this section. For every data element, we will divide 
the total number of applicable records in error (numerator) by the total 
number of applicable records (denominator), to determine whether the 
title IV-E agency has met the applicable data quality standards.
    (3) In general, a title IV-E agency that has not met either the data 
file formatting standards or data quality standards must submit a 
corrected data file(s) no later than when data is due for the subsequent 
six month report period (i.e., by May 15 and November 14), as 
applicable. ACF will determine that the corrected data file(s) is in 
compliance if it meets the data file and data standards in paragraphs 
(c) and (d) of this section. Exception: If ACF determines initially that 
the title IV-E agency's data file has not met the data quality standard 
related to tardy transactions, ACF will determine compliance with regard 
to the transaction dates only in the out-of-home care data file 
submitted for the subsequent report period.
    (f) Noncompliance. If the title IV-E agency does not submit a 
corrected data file, or submits a corrected data file that fails to meet 
the compliance standards in paragraphs (c) and (d) of this section, ACF 
will notify the title IV-E agency of such and apply penalties as 
provided in Sec.  1355.47.
    (g) Other assessments. ACF may use other monitoring tools or 
assessment procedures to determine whether the title IV-E agency is 
meeting all of the requirements of Sec. Sec.  1355.41 through 1355.45.

[81 FR 90569, Dec. 14, 2016, as amended at 85 FR 28434, May 12, 2020]



Sec.  1355.47  Penalties.

    (a) Federal funds subject to a penalty. The funds that are subject 
to a penalty are the title IV-E agency's claims for title IV-E foster 
care administration and training for the quarter in which the title IV-E 
agency is required to submit the data files. For data files due on May 
15, ACF will assess the penalty based on the title IV-E agency's claims 
for the third quarter of the Federal fiscal year. For data files due on 
November 14, ACF will assess the penalty based on the title IV-E 
agency's claims for the first quarter of the Federal fiscal year.
    (b) Penalty amounts. ACF will assess penalties in the following 
amounts:
    (1) First six month period. ACF will assess a penalty in the amount 
of one sixth of one percent (\1/6\ of 1%) of the funds described in 
paragraph (a) of this section for the first six month period in which 
the title IV-E agency's submitted corrected data file does not comply 
with Sec.  1355.46.
    (2) Subsequent six month periods. ACF will assess a penalty in the 
amount of

[[Page 319]]

one fourth of one percent (\1/4\ of 1%) of the funds described in 
paragraph (a) of this section for each subsequent six month period in 
which the title IV-E agency continues to be out of compliance.
    (c) Penalty reduction from grant. ACF will offset the title IV-E 
agency's title IV-E foster care grant award in the amount of the penalty 
from the title IV-E agency's claims following the title IV-E agency 
notification of ACF's final determination of noncompliance.
    (d) Appeals. The title IV-E agency may appeal ACF's final 
determination of noncompliance to the HHS Departmental Appeals Board 
pursuant to 45 CFR part 16.

[81 FR 90569, Dec. 14, 2016]



Sec.  1355.50  Purpose.

    Sections 1355.50 through 1355.59 contain the requirements a title 
IV-E agency must meet to receive Federal financial participation 
authorized under sections 474(a)(3)(C) and (D), and 474(c) of the Act 
for the planning, design, development, installation, operation, and 
maintenance of a comprehensive child welfare information system.

[81 FR 35479, June 2, 2016]



Sec.  1355.51  Definitions applicable to Comprehensive Child Welfare 
Information Systems (CCWIS).

    (a) The following terms as they appear in Sec. Sec.  1355.50 through 
1355.59 are defined as follows--
    Approved activity means a project task that supports planning, 
designing, developing, installing, operating, or maintaining a CCWIS.
    Automated function means a computerized process or collection of 
related processes to achieve a purpose or goal.
    Child welfare contributing agency means a public or private entity 
that, by contract or agreement with the title IV-E agency, provides 
child abuse and neglect investigations, placement, or child welfare case 
management (or any combination of these) to children and families.
    Data exchange means the automated, electronic submission or receipt 
of information, or both, between two automated data processing systems.
    Data exchange standard means the common data definitions, data 
formats, data values, and other guidelines that the state's or tribe's 
automated data processing systems follow when exchanging data.
    New CCWIS project means a project to build an automated data 
processing system meeting all requirements in Sec.  1355.52 and all 
automated functions meet the requirements in Sec.  1355.53(a).
    Non-S/TACWIS project means an active automated data processing 
system or project that, prior to the effective date of these 
regulations, ACF had not classified as a S/TACWIS and for which:
    (i) ACF approved a development procurement; or
    (ii) The applicable state or tribal agency approved a development 
procurement below the thresholds of 45 CFR 95.611(a); or
    (iii) The operational automated data processing system provided the 
data for at least one AFCARS or NYTD file for submission to the federal 
system or systems designated by ACF to receive the report.
    Notice of intent means a record from the title IV-E agency, signed 
by the governor, tribal leader, or designated state or tribal official 
and provided to ACF declaring that the title IV-E agency plans to build 
a CCWIS project that is below the APD approval thresholds of 45 CFR 
95.611(a).
    S/TACWIS project means an active automated data processing system or 
project that, prior to the effective date of these regulations, ACF 
classified as a S/TACWIS and for which:
    (i) ACF approved a procurement to develop a S/TACWIS; or
    (ii) The applicable state or tribal agency approved a development 
procurement for a S/TACWIS below the thresholds of 45 CFR 95.611(a).
    Transition period means the 24 months after the effective date of 
these regulations.
    (b) Other terms as they appear in Sec. Sec.  1355.50 through 1355.59 
are defined in 45 CFR 95.605.

[81 FR 35479, June 2, 2016]



Sec.  1355.52  CCWIS project requirements.

    (a) Efficient, economical, and effective requirement. The title IV-E 
agency's

[[Page 320]]

CCWIS must support the efficient, economical, and effective 
administration of the title IV-B and IV-E plans pursuant to section 
474(a)(3)(C)(iv) of the Act by:
    (1) Improving program management and administration by maintaining 
all program data required by federal, state or tribal law or policy;
    (2) Appropriately applying information technology;
    (3) Not requiring duplicative application system development or 
software maintenance; and
    (4) Ensuring costs are reasonable, appropriate, and beneficial.
    (b) CCWIS data requirements. The title IV-E agency's CCWIS must 
maintain:
    (1) Title IV-B and title IV-E data that supports the efficient, 
effective, and economical administration of the programs including:
    (i) Data required for ongoing federal child welfare reports;
    (ii) Data required for title IV-E eligibility determinations, 
authorizations of services, and expenditures under IV-B and IV-E;
    (iii) Data to support federal child welfare laws, regulations, and 
policies; and
    (iv) Case management data to support federal audits, reviews, and 
other monitoring activities;
    (2) Data to support state or tribal child welfare laws, regulations, 
policies, practices, reporting requirements, audits, program 
evaluations, and reviews;
    (3) For states, data to support specific measures taken to comply 
with the requirements in section 422(b)(9) of the Act regarding the 
state's compliance with the Indian Child Welfare Act; and
    (4) For each state, data for the National Child Abuse and Neglect 
Data System.
    (c) Reporting requirements. The title IV-E agency's CCWIS must use 
the data described in paragraph (b) of this section to:
    (1) Generate, or contribute to, required title IV-B or IV-E federal 
reports according to applicable formatting and submission requirements; 
and
    (2) Generate, or contribute to, reports needed by state or tribal 
child welfare laws, regulations, policies, practices, reporting 
requirements, audits, and reviews that support programs and services 
described in title IV-B and title IV-E.
    (d) Data quality requirements. (1) The CCWIS data described in 
paragraph (b) of this section must:
    (i) Meet the most rigorous of the applicable federal, and state or 
tribal standards for completeness, timeliness, and accuracy;
    (ii) Be consistently and uniformly collected by CCWIS and, if 
applicable, child welfare contributing agency systems;
    (iii) Be exchanged and maintained in accordance with confidentiality 
requirements in section 471(a)(8) of the Act, and 45 CFR 205.50, and 42 
U.S.C. 5106a(b)(2)(B)(viii) through (x) of the Child Abuse Prevention 
and Treatment Act, if applicable, and other applicable federal and state 
or tribal laws;
    (iv) Support child welfare policies, goals, and practices; and
    (v) Not be created by default or inappropriately assigned.
    (2) The title IV-E agency must implement and maintain automated 
functions in CCWIS to:
    (i) Regularly monitor CCWIS data quality;
    (ii) Alert staff to collect, update, correct, and enter CCWIS data;
    (iii) Send electronic requests to child welfare contributing agency 
systems to submit current and historical CCWIS data to the CCWIS;
    (iv) Prevent, to the extent practicable, the need to re-enter data 
already captured or exchanged with the CCWIS; and
    (v) Generate reports of continuing or unresolved CCWIS data quality 
problems.
    (3) The title IV-E agency must conduct biennial data quality reviews 
to:
    (i) Determine if the title IV-E agency and, if applicable, child 
welfare contributing agencies, meet the requirements of paragraphs (b), 
(d)(1), and (d)(2) of this section; and
    (ii) Confirm that the bi-directional data exchanges meet the 
requirements of paragraphs (e) and (f) of this section, and other 
applicable ACF regulations and policies.

[[Page 321]]

    (4) The title IV-E agency must enhance CCWIS or the electronic bi-
directional data exchanges or both to correct any findings from reviews 
described at paragraph (d)(3) of this section.
    (5) The title IV-E agency must develop, implement, and maintain a 
CCWIS data quality plan in a manner prescribed by ACF and include it as 
part of Annual or Operational APDs submitted to ACF as required in 45 
CFR 95.610. The CCWIS data quality plan must:
    (i) Describe the comprehensive strategy to promote data quality 
including the steps to meet the requirements at paragraphs (d)(1) 
through (3) of this section; and
    (ii) Report the status of compliance with paragraph (d)(1) of this 
section.
    (e) Bi-directional data exchanges. (1) The CCWIS must support 
efficient, economical, and effective bi-directional data exchanges to 
exchange relevant data with:
    (i) Systems generating the financial payments and claims for titles 
IV-B and IV-E per paragraph (b)(1)(ii) of this section, if applicable;
    (ii) Systems operated by child welfare contributing agencies that 
are collecting or using data described in paragraph (b) of this section, 
if applicable;
    (iii) Each system used to calculate one or more components of title 
IV-E eligibility determinations per paragraph (b)(1)(ii) of this 
section, if applicable; and
    (iv) Each system external to CCWIS used by title IV-E agency staff 
to collect CCWIS data, if applicable.
    (2) To the extent practicable, the title IV-E agency's CCWIS must 
support one bi-directional data exchange to exchange relevant data, 
including data that may benefit IV-E agencies and data exchange partners 
in serving clients and improving outcomes, with each of the following 
state or tribal systems:
    (i) Child abuse and neglect system(s);
    (ii) System(s) operated under title IV-A of the Act;
    (iii) Systems operated under title XIX of the Act including:
    (A) Systems to determine Medicaid eligibility described in 42 CFR 
433.111(b)(2)(ii)(A); and
    (B) Medicaid Management Information Systems as defined at 42 CFR 
433.111(b)(2)(ii)(B);
    (iv) Systems operated under title IV-D of the Act;
    (v) Systems operated by the court(s) of competent jurisdiction over 
title IV-E foster care, adoption, and guardianship programs;
    (vi) Systems operated by the state or tribal education agency, or 
school districts, or both.
    (f) Data exchange standard requirements. The title IV-E agency must 
use a single data exchange standard that describes data, definitions, 
formats, and other specifications upon implementing a CCWIS:
    (1) For bi-directional data exchanges between CCWIS and each child 
welfare contributing agency; and
    (2) For data exchanges with systems described under paragraph 
(e)(1)(iv) of this section.
    (g) Automated eligibility determination requirements. (1) A state 
title IV-E agency must use the same automated function or the same group 
of automated functions for all title IV-E eligibility determinations.
    (2) A tribal title IV-E agency must, to the extent practicable, use 
the same automated function or the same group of automated functions for 
all title IV-E eligibility determinations.
    (h) Software provision requirement. The title IV-E agency must 
provide a copy of the agency-owned software that is designed, developed, 
or installed with FFP and associated documentation to the designated 
federal repository within the Department upon request.
    (i) Submission requirements. (1) Before claiming funding in 
accordance with a CCWIS cost allocation, a title IV-E agency must submit 
an APD or, if below the APD submission thresholds defined at 45 CFR 
95.611, a Notice of Intent that includes:
    (i) A description of how the CCWIS will meet the requirements in 
paragraphs (a) through (h) of this section and, if applicable Sec.  
1355.54;
    (ii) A list of all automated functions included in the CCWIS; and
    (iii) A notation of whether each automated function listed in 
paragraph (i)(1)(ii) of this section meets, or when

[[Page 322]]

implemented will meet, the following requirements:
    (A) The automated function supports at least one requirement of this 
section or, if applicable Sec.  1355.54;
    (B) The automated function is not duplicated within the CCWIS or 
systems supporting child welfare contributing agencies and is 
consistently used by all child welfare users responsible for the area 
supported by the automated function; and
    (C) The automated function complies with the CCWIS design 
requirements described under Sec.  1355.53(a), unless exempted in 
accordance with Sec.  1355.53(b).
    (2) Annual APD Updates and Operational APDs for CCWIS projects must 
include:
    (i) An updated list of all automated functions included in the 
CCWIS;
    (ii) A notation of whether each automated function listed in 
paragraph (i)(2)(i) of this section meets the requirements of paragraph 
(i)(1)(iii)(B) of this section; and
    (iii) A description of changes to the scope or the design criteria 
described at Sec.  1355.53(a) for any automated function listed in 
paragraph (i)(2)(i) of this section.
    (j) Other applicable requirements. Regulations at 45 CFR 95.613 
through 95.621 and 95.626 through 95.641 are applicable to all CCWIS 
projects below the APD submission thresholds at 45 CFR 95.611.

[81 FR 35479, June 3, 2016]



Sec.  1355.53  CCWIS design requirements.

    (a) Except as exempted in paragraph (b) of this section, automated 
functions contained in a CCWIS must:
    (1) Follow a modular design that includes the separation of business 
rules from core programming;
    (2) Be documented using plain language;
    (3) Adhere to a state, tribal, or industry defined standard that 
promotes efficient, economical, and effective development of automated 
functions and produces reliable systems; and
    (4) Be capable of being shared, leveraged, and reused as a separate 
component within and among states and tribes.
    (b) CCWIS automated functions may be exempt from one or more of the 
requirements in paragraph (a) of this section if:
    (1) The CCWIS project meets the requirements of Sec.  1355.56(b) or 
(f)(1); or
    (2) ACF approves, on a case-by-case basis, an alternative design 
proposed by a title IV-E agency that is determined by ACF to be more 
efficient, economical, and effective than what is found in paragraph (a) 
of this section.

[81 FR 35481, June 2, 2016]



Sec.  1355.54  CCWIS options.

    If a project meets, or when completed will meet, the requirements of 
Sec.  1355.52, then ACF may approve CCWIS funding described at Sec.  
1355.57 for other ACF-approved data exchanges or automated functions 
that are necessary to achieve title IV-E or IV-B programs goals.

[81 FR 35481, June 2, 2016]



Sec.  1355.55  Review and assessment of CCWIS projects.

    ACF will review, assess, and inspect the planning, design, 
development, installation, operation, and maintenance of each CCWIS 
project on a continuing basis, in accordance with APD requirements in 45 
CFR part 95, subpart F, to determine the extent to which the project 
meets the requirements in Sec. Sec.  1355.52, 1355.53, 1355.56, and, if 
applicable, Sec.  1355.54.

[81 FR 35481, June 2, 2016]



Sec.  1355.56  Requirements for S/TACWIS and non-S/TACWIS projects during 
and after the transition period.

    (a) During the transition period a title IV-E agency with a S/TACWIS 
project may continue to claim title IV-E funding according to the cost 
allocation methodology approved by ACF for development or the 
operational cost allocation plan approved by the Department, or both.
    (b) A S/TACWIS project must meet the submission requirements of 
Sec.  1355.52(i)(1) during the transition period to qualify for the 
CCWIS cost allocation methodology described in Sec.  1355.57(a) after 
the transition period.
    (c) A title IV-E agency with a S/TACWIS may request approval to 
initiate a new CCWIS and qualify for the CCWIS cost allocation 
methodology described in Sec.  1355.57(b) by meeting the

[[Page 323]]

submission requirements of Sec.  1355.52(i)(1).
    (d) A title IV-E agency that elects not to transition a S/TACWIS 
project to a CCWIS project must:
    (1) Notify ACF in an APD or Notice of Intent submitted during the 
transition period of this election; and
    (2) Continue to use the S/TACWIS through its life expectancy in 
accordance with 45 CFR 95.619.
    (e) A title IV-E agency that elects not to transition its S/TACWIS 
project to a CCWIS and fails to meet the requirements of paragraph (d) 
of this section is subject to funding recoupment described under Sec.  
1355.58(d).
    (f) A title IV-E agency with a non-S/TACWIS (as defined in Sec.  
1355.51) that elects to build a CCWIS or transition to a CCWIS must meet 
the submission requirements of Sec.  1355.52(i)(1):
    (1) During the transition period to qualify for a CCWIS cost 
allocation as described at Sec.  1355.57(a); or
    (2) At any time to request approval to initiate a new CCWIS and 
qualify for a CCWIS cost allocation as described at Sec.  1355.57(b).

[81 FR 35481, June 2, 2016]



Sec.  1355.57  Cost allocation for CCWIS projects.

    (a) CCWIS cost allocation for projects transitioning to CCWIS. (1) 
All automated functions developed after the transition period for 
projects meeting the requirements of Sec.  1355.56(b) or Sec.  
1355.56(f)(1) must meet the CCWIS design requirements described under 
Sec.  1355.53(a), unless exempted by Sec.  1355.53(b)(2).
    (2) The Department may approve the applicable CCWIS cost allocation 
for an automated function of a project transitioning to a CCWIS if the 
automated function:
    (i) Supports programs authorized under titles IV-B or IV-E, and at 
least one requirement of Sec.  1355.52 or, if applicable Sec.  1355.54; 
and
    (ii) Is not duplicated within the CCWIS or systems supporting child 
welfare contributing agencies and is consistently used by all child 
welfare users responsible for the area supported by the automated 
function.
    (b) CCWIS cost allocation for new CCWIS projects. (1) Unless 
exempted in accordance with Sec.  1355.53(b)(2), all automated functions 
of a new CCWIS project must meet the CCWIS design requirements described 
under Sec.  1355.53(a).
    (2) An automated function of a CCWIS project described in paragraph 
(b)(1) of this section may qualify for a CCWIS cost allocation if the 
automated function:
    (i) Supports programs authorized under titles IV-B or IV-E, and at 
least one requirement of Sec.  1355.52 or, if applicable Sec.  1355.54; 
and
    (ii) Is not duplicated within the CCWIS or systems supporting child 
welfare contributing agencies and is consistently used by all child 
welfare users responsible for the area supported by the automated 
function.
    (c) CCWIS cost allocation for approved activities. The Department 
may approve a CCWIS cost allocation for an approved activity for a CCWIS 
project meeting the requirements of paragraph (a) or (b) of this 
section.
    (d) Project cost allocation. A title IV-E agency must allocate 
project costs in accordance with applicable HHS regulations and other 
guidance.
    (e) CCWIS cost allocation. (1) A title IV-E agency may allocate 
CCWIS development and operational costs to title IV-E for the share of 
approved activities and automated functions that:
    (i) Are approved by the Department;
    (ii) Meet the requirements of paragraphs (a), (b), or (c) of this 
section; and
    (iii) Benefit federal, state or tribal funded participants in 
programs and allowable activities described in title IV-E of the Act to 
the title IV-E program.
    (2) A title IV-E agency may also allocate CCWIS development costs to 
title IV-E for the share of system approved activities and automated 
functions that meet requirements (e)(1)(i) and (ii) of this section and:
    (i) Benefit title IV-B programs; or
    (ii) Benefit both title IV-E and child welfare related programs.
    (f) Non-CCWIS cost allocation. Title IV-E costs not previously 
described in this section may be charged to title IV-E in accordance 
with Sec.  1356.60(d) .

[81 FR 35481, June 2, 2016]

[[Page 324]]



Sec.  1355.58  Failure to meet the conditions of the approved APD.

    (a) In accordance with 45 CFR 75.371 through 75.375 and 45 CFR 
95.635, ACF may suspend title IV-B and title IV-E funding approved in 
the APD for a CCWIS if ACF determines that the title IV-E agency fails 
to comply with APD requirements in 45 CFR part 95, subpart F, or meet 
the requirements at Sec.  1355.52 or, if applicable, Sec.  1355.53, 
Sec.  1355.54, or Sec.  1355.56.
    (b) Suspension of CCWIS funding begins on the date that ACF 
determines the title IV-E agency failed to:
    (1) Comply with APD requirements in 45 CFR part 95, subpart F; or
    (2) Meet the requirements at Sec.  1355.52 or, if applicable, Sec.  
1355.53, Sec.  1355.54, or Sec.  1355.56 and has not corrected the 
failed requirements according to the time frame in the approved APD.
    (c) The suspension will remain in effect until the date that ACF:
    (1) Determines that the title IV-E agency complies with 45 CFR part 
95, subpart F; or
    (2) Approves a plan to change the application to meet the 
requirements at Sec.  1355.52 and, if applicable, Sec.  1355.53, Sec.  
1355.54, or Sec.  1355.56.
    (d) If ACF suspends an APD, or the title IV-E agency voluntarily 
ceases the design, development, installation, operation, or maintenance 
of an approved CCWIS, ACF may recoup all title IV-E funds claimed for 
the CCWIS project.

[81 FR 35482, June 2, 2016]



Sec.  1355.59  [Reserved]



         Sec. Appendix A to Part 1355--Foster Care Data Elements

    Effective Date Note: At 81 FR 90584, Dec. 14, 2016, appendix A to 
part 1355 was removed, effective Oct. 1, 2019. At 83 FR 42225, Aug. 21, 
2018, the removal was delayed until Oct. 1, 2020. At 85 FR 28410, May 
12, 2020, the removal was further delayed until Oct. 1, 2022.

                  Section I--Foster Care Data Elements

    Data elements preceded by ``**'' are the only data elements required 
for children who have been in care less than 30 days. For children who 
entered care prior to October 1, 1995, data elements preceded by either 
``**'' and ``***'' are the only data elements required. This means that, 
for these two categories of children, these are the only data elements 
to which the missing data standard will be applied.

                         I. General Information

 **A. Title IV-E agency_________________________________________________
    **B. Report date __ (mo.) __ (yr.)
 **C. Local Agency (County or Equivalent Jurisdiction)__________________
 **D. Record Number_____________________________________________________
    **E. Date of Most Recent Periodic Review (if Applicable) __ (mo.) __ 
(day) __ (yr.)

                   II. Child's Demographic Information

    **A. Date of Birth __ (mo.) __ (day) __ (yr.)
    **B. Sex __
    Male: 1
    Female: 2
    C. Race/Ethnicity
    a. American Indian or Alaska Native
    b. Asian
    c. Black or African American
    d. Native Hawaiian or Other Pacific Islander
    e. White
    f. Unable to Determine
    Yes: 1
    No: 2
    Unable to Determine: 3
    D. Has this child been clinically diagnosed as having a 
disability(ies)? __
    Yes: 1
    No: 2
    Not Yet Determined: 3
    1. If yes, indicate each type of disability with a ``1''
    Mental Retardation __
    Visually or Hearing Impaired __
    Physically Disabled __
    Emotionally Disturbed (DSM III)
    Other Medically Diagnosed Condition Requiring Special Care __
    E. 1. Has this child ever been adopted? __
    Yes: 1
    No: 2
    Unable to Determine: 3
    2. If yes, how old was the child when the adoption was legalized? __
    Less than 2 years old: 1
    2 to 5 years old: 2
    6 to 12 years old: 3
    13 years or older: 4
    Unable to determine: 5

                III. Removal/Placement Setting Indicators

    A. Removal Episodes
    Date of First Removal From Home __ (mo.) __ (day) __ (yr.)
    Total Number of Removals From Home to Date __
    Date Child was Discharged From Last Foster Care Episode (if 
Applicable) __ (mo.) __ (day) __ (yr.)
    **; Date of Latest Removal From Home __ (mo.) __ (day) __ (yr.)

[[Page 325]]

    **Transaction Date __ (mo.) __ (day) __ (yr.)
    B. Placement Settings
    Date of Placement in Current Foster Care Setting __ (mo.) __ (day) 
__ (yr.)
    Number of Previous Placement Settings During This Removal Episode __

                      IV. Circumstances of Removal

    A. Manner of Removal From Home for Current Placement Episode __
    Voluntary: 1
    Court Ordered: 2
    Not Yet Determined: 3
    B. Actions or Conditions Associated With Child's Removal: (Indicate 
all that apply with a ``1'')
 Physical Abuse (Alleged/Reported)______________________________________
 Sexual Abuse (Alleged/Reported)________________________________________
 Neglect (Alleged/Reported)_____________________________________________
 Alcohol Abuse (Parent)_________________________________________________
 Drug Abuse (Parent)____________________________________________________
 Alcohol Abuse (Child)__________________________________________________
 Drug Abuse (Child)_____________________________________________________
 Child's Disability_____________________________________________________
 Child's Behavior Problem_______________________________________________
 Death of Parent(s)_____________________________________________________
 Incarceration of Parent(s)_____________________________________________
 Caretaker's Inability to Cope Due to Illness or Other Reasons__________
 Abandonment____________________________________________________________
 Relinquishment_________________________________________________________
 Inadequate Housing_____________________________________________________

 **V. Current Placement Setting_________________________________________

    **A. Pre-Adoptive Home: 1
    Foster Family Home (Relative): 2
    Foster Family Home (Non-Relative): 3
    Group Home: 4
    Institution: 5
    Supervised Independent Living: 6
    Runaway: 7
    Tribal Home Visit: 8
 **B. Is Current Placement Out-of-State/Tribal service area?____________
    Yes (Out-of-State/Tribal service area Placement): 1
    No (In State/Tribal service area Placement): 2***

 VI. Most Recent Case Plan Goal_________________________________________

    Reunify With Parent(s) or Principal Caretaker(s): 1
    Live With Other Relative(s): 2
    Adoption: 3
    Long Term Foster Care: 4
    Emancipation: 5
    Guardianship: 6
    Case Plan Goal Not Yet Established: 7

                 VII. Principal Caretaker(s) Information

 A. Caretaker Family Structure__________________________________________
    Married Couple: 1
    Unmarried Couple: 2
    Single Female: 3
    Single Male: 4
    Unable to Determine: 5
    B. Year of Birth
 1st Principal Caretaker________________________________________________
 2nd Principal Caretaker (If Applicable)________________________________

            VIII. Parental Rights Termination (If Applicable)

    A. Mother __ (mo.) __ (day) __ (yr.)
    B. Legal or Putative Father __ (mo.) __ (day) __ (yr.)

 IX. Foster Family Home--Parent(s) Data (To be answered only if Section 
           V., Part A. CURRENT PLACEMENT SETTING is 1, 2 or 3)

 A. Foster Family Structure_____________________________________________
    Married Couple: 1
    Unmarried Couple: 2
    Single Female: 3
    Single Male: 4
    B. Year of Birth
 1st Foster Caretaker___________________________________________________
 2nd Foster Caretaker (If Applicable)___________________________________
    C. Race/Ethnicity
    1. Race of 1st Foster Caretaker
    a. American Indian or Alaska Native
    b. Asian
    c. Black or African American
    d. Native Hawaiian or Other Pacific Islander
    e. White
    f. Unable to Determine
    2. Hispanic or Latino Ethnicity of 1st Foster Caretaker __
    Yes: 1
    No: 2
    Unable to Determine: 3
    3. Race of 2nd Foster Caretaker (If Applicable)
    a. American Indian or Alaska Native
    b. Asian
    c. Black or African American
    d. Native Hawaiian or Other Pacific Islander
    e. White
    f. Unable to Determine
    4. Hispanic or Latino Ethnicity of 2nd Foster Caretaker (If 
Applicable)
    Yes: 1
    No: 2
    Unable to Determine: 3

                         X. Outcome Information

    **A. Date of Discharge From Foster Care __ (mo.) __ (day)__ (yr.)
    **Transaction Date __ (mo.) __ (day) __ (yr.)
 **B. Reason for Discharge______________________________________________
    Reunification With Parents or Primary Caretakers: 1
    Living with Other Relative(s): 2
    Adoption: 3
    Emancipation: 4
    Guardianship: 5
    Transfer to Another Agency: 6
    Runaway: 7
    Death of Child: 8

[[Page 326]]

    XI. Source(s) of Federal Financial Support/Assistance for Child 
                 (Indicate all that apply with a ``1'')

 Title IV-E (Foster Care)_______________________________________________
 Title IV-E (Adoption Assistance)_______________________________________
 Title IV-A (Aid to Families with Dependent Children)___________________
 Title IV-D (Child Support)_____________________________________________
 Title XIX (Medicaid)___________________________________________________
 SSI or Other Social Security Act Benefits______________________________
 None of the Above______________________________________________________

XII. Amount of the monthly foster care payment (regardless of sources). 
                                   __

    Section II--Definitions of and Instructions for Foster Care Data 
                                Elements

    Reporting population. The population to be included in this 
reporting system includes all children in foster care under the 
responsibility of the title IV-E agency administering or supervising the 
administration of the title IV-B Child and Family Services plan and the 
title IV-E plan; that is, all children who are required to be provided 
the assurances of section 422(b)(8) of the Social Security Act.
    This population includes all children supervised by or under the 
responsibility of another public agency with which the title IV-E agency 
has an agreement under title IV-E and on whose behalf the title IV-E 
agency makes title IV-E foster care maintenance payments.
    Foster care is defined as 24 hour substitute care for children 
outside their own home. The reporting system includes all children who 
have or had been in foster care at least 24 hours. The foster care 
settings include, but are not limited to:

    --Family foster homes
    --Relative foster homes (whether payments are made or not)
    --Group homes
    --Emergency shelters
    --Residential facilities
    --Child care institutions
    --Pre-adoptive homes

    Foster care does not include children who are in their own homes 
under the responsibility of the title IV-E agency. However, children who 
are at home on a trial basis may be included even though they are not 
considered to be in foster care. If they are included, element number V. 
CURRENT PLACEMENT SETTING must be given the value of ``8''.

                         I. General Information

    A. Title IV-E agency**--for a State, the U.S. Postal Service two 
letter abbreviation for the State submitting the report. For a Tribal 
title IV-E agency, the abbreviation provided by ACF.
    B. Report Date**--the last month and year for the reporting period.
    C. Local Agency**-- Identity of the county or equivalent unit which 
has responsibility for the case. The 5 digit Federal Information 
Processing Standard (FIPS) must be used or other ACF-provided code.
    D. Record Number**--The sequential number which the title IV-E 
agency uses to transmit data to the Department of Health and Human 
Services (DHHS) or a unique number which follows the child as long as he 
or she is in foster care. The record number cannot be linked to the 
child's case I.D. number except at the title IV-E agency level.
    E. Date of Most Recent Periodic Review (if applicable)--For children 
who have been in care for seven months or longer, enter the month, day 
and year of the most recent administrative or court review, including 
dispositional hearing. For children who have been in care less than 
seven months, leave the field blank. An entry in this field certifies 
that the child's computer record is current up to this date.

                   II. Child's Demographic Information

    A. Date of Birth**--Month, day and year of the child's birth. If the 
child is abandoned or the date of birth is otherwise unknown, enter an 
approximate date of birth. Use the 15th as the day of birth.
    B. Sex**--Indicate as appropriate.
    C. Race/Ethnicity**
    1. Race--In general, a person's race is determined by how they 
define themselves or by how others define them. In the case of young 
children, parents determine the race of the child. Indicate all races (a 
through e) that apply with a ``1.'' For those that do not apply, 
indicate a ``0.'' Indicate ``f. Unable to Determine'' with a ``1'' if it 
applies and a ``0'' if it does not.
    American Indian or Alaska Native--A person having origins in any of 
the original peoples of North or South America (including Central 
America), and who maintains tribal affiliation or community attachment.
    Asian--A person having origins in any of the original peoples of the 
Far East, Southeast Asia, or the Indian subcontinent including, for 
example, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, the 
Philippine Islands, Thailand, and Vietnam.
    Black or African American--A person having origins in any of the 
black racial groups of Africa.
    Native Hawaiian or Other Pacific Islander--A person having origins 
in any of the original peoples of Hawaii, Guam, Samoa, or other Pacific 
Islands.
    White--A person having origins in any of the original peoples of 
Europe, the Middle East, or North Africa.
    Unable to Determine--The specific race category is ``unable to 
determine'' because the child is very young or is severely disabled and 
no person is available to identify

[[Page 327]]

the child's race. ``Unable to determine'' is also used if the parent, 
relative or guardian is unwilling to identify the child's race.
    2. Hispanic or Latino Ethnicity--Answer ``yes'' if the child is of 
Mexican, Puerto Rican, Cuban, Central or South American origin, or a 
person of other Spanish cultural origin regardless of race. Whether or 
not a person is Hispanic or Latino is determined by how they define 
themselves or by how others define them. In the case of young children, 
parents determine the ethnicity of the child. ``Unable to Determine'' is 
used because the child is very young or is severely disabled and no 
person is available to determine whether or not the child is Hispanic or 
Latino. ``Unable to determine'' is also used if the parent, relative or 
guardian is unwilling to identify the child's ethnicity.
    D. Has the child been clinically diagnosed as having a 
disability(ies)? ``Yes'' indicates that a qualified professional has 
clinically diagnosed the child as having at least one of the 
disabilities listed below. ``No'' indicates that a qualified 
professional has conducted a clinical assessment of the child and has 
determined that the child has no disabilities. ``Not Yet Determined'' 
indicates that a clinical assessment of the child by a qualified 
professional has not been conducted.
    1. Indicate Each Type of Disability With a ``1''
    Mental Retardation--Significantly subaverage general cognitive and 
motor functioning existing concurrently with deficits in adaptive 
behavior manifested during the development period that adversely affect 
a child's/youth's socialization and learning.
    Visually or Hearing Impaired--Having a visual impairment that may 
significantly affect educational performance or development; or a 
hearing impairment, whether permanent or fluctuating, that adversely 
affects educational performance.
    Emotionally Disturbed (DSM III)--A condition exhibiting one or more 
of the following characteristics over a long period of time and to a 
marked degree: An inability to build or maintain satisfactory 
interpersonal relationships; inappropriate types of behavior or feelings 
under normal circumstances; a general pervasive mood of unhappiness or 
depression; or a tendency to develop physical symptoms or fears 
associated with personal problems. The term includes persons who are 
schizophrenic or autistic. The term does not include persons who are 
socially maladjusted, unless it is determined that they are also 
seriously emotionally disturbed. The diagnosis is based on the 
Diagnostic and Statistical Manual of Mental Disorders (Third Edition) 
(DSM III) or the most recent edition.
    Other Medically Diagnosed Conditions Requiring Special Care--
Conditions other than those noted above which require special medical 
care such as chronic illnesses. Included are children diagnosed as HIV 
positive or with AIDS.
    E.1. Has this child ever been adopted? If this child has ever been 
legally adopted, enter ``yes.'' If the child has never been legally 
adopted, enter ``no''. Enter ``Unable to Determine'' if the child has 
been abandoned or the child's parent(s) are otherwise not available to 
provide the information.
    2. If yes, how old was the child when the adoption was legalized? 
Enter the number which represents the appropriate age range. If 
uncertain, use an estimate. If no one is available to provide the 
information, enter ``Unable to Determine.''

                III. Removal/Placement Setting Indicators

    A. Removal Episodes--The removal of the child from his/her normal 
place of residence resulting in his/her placement in a foster care 
setting.
    Date of First Removal From Home--Month, day and year the child was 
removed from home for the first time for purpose of placement in a 
foster care setting. If the current \1\ removal is the first removal, 
enter the date of the current removal.\1\For children who have exited 
foster care, ``current'' refers to the most recent removal episode and 
the most recent placement setting.
    Total Number of Removals from Home to Date--The number of times the 
child was removed from home, including the current removal.
    Date Child was Discharged From Last Foster Care Episode (If 
Applicable)--For children with prior removals, enter the month, day and 
year they were discharged from care for the episode immediately prior to 
the current episode. For children with no prior removals, leave blank.
    Date of Latest Removal From Home**--Month, day and year the child 
was last removed from his/her home for the purpose of being place in 
foster care. This would be the date for the current episode or, if the 
child has existed foster care, the date of removal for the most recent 
removal.
    Transaction Date**--A computer generated date which accurately 
indicates the month, day and year the response to ``Date of Latest 
Removal From Home'' was entered into the information system.
    B. Placement Settings.
    Date of Placement in Current Foster Care Setting--Month, day and 
year the child moved into the current foster home, facility, residence, 
shelter, institution, etc. for purposes of continued foster care.
    Number of Previous Placement Settings During This Removal Episode--
Enter the number of places the child has lived, including the current 
setting, during the current removal episode. Do not include trial home 
visits as a placement setting.

[[Page 328]]

                      IV. Circumstances of Removal

    A. Manner of Removal From Home for Current Placement Episode.
    Voluntary Placement Agreement--An official voluntary placement 
agreement has been executed between the caretaker and the agency. The 
placement remains voluntary even if a subsequent court order is issued 
to continue the child in foster care.
    Court Ordered--The court has issued an order which is the basis of 
the child's removal.
    Not Yet Determined--A voluntary placement agreement has not been 
signed or a court order has not been issued. This will mostly occur in 
very short-term cases. When either a voluntary placement agreement is 
signed or a court order issued, the record should be updated to reflect 
the manner of removal at that time.
    B. Actions or Conditions Associated With Child's Removal (indicate 
all that apply with a ``1''.)
    Physical Abuse--Alleged or substantiated physical abuse, injury or 
maltreatment of the child by a person responsible for the child's 
welfare.
    Sexual Abuse--Alleged or substantiated sexual abuse or exploitation 
of a child by a person who is responsible for the child's welfare.
    Neglect--Alleged or substantiated negligent treatment or 
maltreatment, including failure to provide adequate food, clothing, 
shelter or care.
    Alcohol Abuse (Parent)--Principal caretaker's compulsive use of 
alcohol that is not of a temporary nature.
    Drug Abuse (Parent)--Principal caretaker's compulsive use of drugs 
that is not of a temporary nature.
    Alcohol Abuse (Child)--Child's compulsive use of or need for 
alcohol. This element should include infants addicted at birth.
    Drug Abuse (Child)--Child's compulsive use of or need for narcotics. 
This element should include infants addicted at birth.
    Child's Disability--Clinical diagnosis by a qualified professional 
of one or more of the following: Mental retardation; emotional 
disturbance; specific learning disability; hearing, speech or sight 
impairment; physical disability; or other clinically diagnosed handicap. 
Include only if the disability(ies) was at least one of the factors 
which led to the child's removal.
    Child's Behavior Problem--Behavior in the school and/or community 
that adversely affects socialization, learning, growth, and moral 
development. These may include adjudicated or nonadjudicated child 
behavior problems. This would include the child's running away from home 
or other placement.
    Death of Parent(s)--Family stress or inability to care for child due 
to death of a parent or caretaker.
    Incarceration of Parent(s)--Temporary or permanent placement of a 
parent or caretaker in jail that adversely affects care for the child.
    Caretaker's Inability to Cope Due to Illness or Other Reasons--
Physical or emotional illness or disabling condition adversely affecting 
the caretaker's ability to care for the child.
    Abandonment--Child left alone or with others; caretaker did not 
return or make whereabouts known.
    Relinquishment--Parent(s), in writing, assigned the physical and 
legal custody of the child to the agency for the purpose of having the 
child adopted.
    Inadequate Housing--Housing facilities were substandard, 
overcrowded, unsafe or otherwise inadequate resulting in their not being 
appropriate for the parents and child to reside together. Also includes 
homelessness.

                     V. Current Placement Setting**

    A. Identify the type of setting in which the child currently lives.
    Pre-Adoptive Home--A home in which the family intends to adopt the 
child. The family may or may not be receiving a foster care payment or 
an adoption subsidy on behalf of the child.
    Foster Family Home (Relative)--A licensed or unlicensed home of the 
child's relatives regarded by the title IV-E agency as a foster care 
living arrangement for the child.
    Foster Family Home (Non-Relative)--A licensed foster family home 
regarded by the title IV-E agency as a foster care living arrangement.
    Group Home--A licensed or approved home providing 24-hour care for 
children in a small group setting that generally has from seven to 
twelve children.
    Institution--A child care facility operated by a public or private 
agency and providing 24-hour care and/or treatment for children who 
require separation from their own homes and group living experience. 
These facilities may include: Child care institutions; residential 
treatment facilities; maternity homes; etc.
    Supervised Independent Living--An alternative transitional living 
arrangement where the child is under the supervision of the agency but 
without 24 hour adult supervision, is receiving financial support from 
the child welfare agency, and is in a setting which provides the 
opportunity for increased responsibility for self care.
    Runaway--The child has run away from the foster care setting.
    Trial Home Visit--The child has been in a foster care placement, 
but, under title IV-E agency supervision, has been returned to the 
principal caretaker for a limited and specified period of time.

[[Page 329]]

    B. Is current placement setting outside of the State or Tribal 
service area?
    ``Yes'' indicates that the current placement setting is located 
outside of the State or the Tribal service area of the Tribal title IV-E 
agency making the report.
    ``No'' indicates that the child continues to reside within the State 
or the Tribal service area of the Tribal title IV-E agency making the 
report.

    Note: Only the title IV-E agency with placement and care 
responsibility for the child should include the child in this reporting 
system.

                    VI. Most Recent Case Plan Goal***

    Indicate the most recent case plan goal for the child based on the 
latest review of the child's case plan--whether a court review or an 
administrative review. If the child has been in care less than six 
months, enter the goal in the case record as determined by the 
caseworker.
    Reunify With Parents or Principal Caretaker(s)--The goal is to keep 
the child in foster care for a limited time to enable the agency to work 
with the family with whom the child had been living prior to entering 
foster care in order to reestablish a stable family environment.
    Live With Other Relatives--The goal is to have the child live 
permanently with a relative or relatives other than the ones from whom 
the child was removed. This could include guardianship by a relative(s).
    Adoption--The goal is to facilitate the child's adoption by 
relatives, foster parents or other unrelated individuals.
    Long Term Foster Care--Because of specific factors or conditions, it 
is not appropriate or possible to return the child home or place her or 
him for adoption, and the goal is to maintain the child in a long term 
foster care placement.
    Emancipation--Because of specific factors or conditions, it is not 
appropriate or possible to return the child home, have a child live 
permanently with a relative or have the child be adopted; therefore, the 
goal is to maintain the child in a foster care setting until the child 
reaches the age of majority.
    Guardianship--The goal is to facilitate the child's placement with 
an agency or unrelated caretaker, with whom he or she was not living 
prior to entering foster care, and whom a court of competent 
jurisdiction has designated as legal guardian.
    Case Plan Goal Not Yet Established--No case plan goal has yet been 
established other then the care and protection of the child.

                 VII. Principal Caretaker(s) Information

    A. Caretaker Family Structure--Select from the four alternatives--
married couple, unmarried couple, single female, single male--the 
category which best describes the type of adult caretaker(s) from whom 
the child was removed for the current foster care episode. Enter 
``Unable to Determine'' if the child has been abandoned or the child's 
caretakers are otherwise unknown.
    B. Year of Birth--Enter the year of birth for up to two caretakers. 
If the response to data element VII. A--Caretaker Family Structure, was 
1 or 2, enter data for two caretakers. If the response was 3 or 4, enter 
data only for the first caretaker. If the exact year of birth is 
unknown, enter an estimated year of birth.

                    VIII. Parental Rights Termination

    Enter the month, day and year that the court terminated the parental 
rights. If the parents are known to be deceased, enter the date of 
death.

                 IX. Family Foster Home--Parent(s) Data

    Provide information only if data element in Section V., Part A. 
CURRENT PLACEMENT SETTING is 1, 2, or 3.
    A. Foster Family Structure--Select from the four alternatives--
married couple, unmarried couple, single female, single male--the 
category which best describes the nature of the foster parents with whom 
the child is living in the current foster care episode.
    B. Year of Birth--Enter the year of birth for up to two foster 
parents. If the response to data element IX. A.--Foster Family 
Structure, was 1 or 2, enter data for two caretakers. If the response 
was 3 or 4, enter data only for the first caretaker. If the exact year 
of birth is unknown, enter an estimated year of birth.
    C. Race--Indicate the race for each of the foster parent(s). See 
instructions and definitions for the race categories under data element 
II.C.1. Use ``f. Unable to Determine'' only when a parent is unwilling 
to identify his or her race. Hispanic or Latino Ethnicity--Indicate the 
ethnicity for each of the foster parent(s). See instructions and 
definitions under data element II.C.2. Use ``f. Unable to Determine'' 
only when a parent is unwilling to identify his or her ethnicity.

                         X. Outcome Information

    Enter data only for children who have exited foster care during the 
reporting period.
    A. Date of Discharge From Foster Care**--Enter the month, day and 
year the child was discharged from foster care. If the child has not 
been discharged from care, leave blank.
    Transaction Date**--A computer generated date which accurately 
indicates the month, day and year the response to ``Date of Discharge 
from Foster Care'' was entered into the information system.
    B. Reason for Discharge**.

[[Page 330]]

    Reunification With Parents or Primary Caretakers--The child was 
returned to his or her principal caretaker(s)' home.
    Living With Other Relatives--The child went to live with a relative 
other than the one from whose home he or she was removed.
    Adoption--The child was legally adopted.
    Emancipation--The child reached majority according to the law by 
virtue of age, marriage, etc.
    Guardianship--Permanent custody of the child was awarded to an 
individual.
    Transfer to Another Agency--Responsibility for the care of the child 
was awarded to another agency--either in or outside of the State or 
Tribal service area.
    Runaway--The child ran away from the foster care placement.
    Death of Child--The child died while in foster care.

XI. Source(s) of Federal Support/Assistance for Child (Indicate All That 
                          Apply With a ``1''.)

    Title IV-E (Foster Care)--Title IV-E foster care maintenance 
payments are being paid on behalf of the child.
    Title IV-E (Adoption Subsidy)--Title IV-E adoption subsidy is being 
paid on behalf of the child who is in an adoptive home, but the adoption 
has not been legalized.
    Title IV-A (Aid to Families With Dependent Children)--Child is 
living with relative(s) whose source of support is an AFDC payment for 
the child.
    Title IV-D (Child Support)--Child support funds are being paid to 
the State agency on behalf of the child by assignment from the receiving 
parent.
    Title XIX (Medicaid)--Child is eligible for and may be receiving 
assistance under title XIX.
    SSI or Other Social Security Act Benefits--Child is receiving 
support under title XVI or other Social Security Act titles not included 
in this section.
    None of the Above--Child is receiving support only from the title 
IV-E agency, or from some other source (Federal or non-Federal) which is 
not indicated above.

 XII. Amount of the Monthly Foster Care Payment (Regardless of Sources)

    Enter the monthly payment paid on behalf of the child regardless of 
source (i.e., Federal, State, county, municipality, tribal, and private 
payments). If title IV-E is paid on behalf of the child the amount 
indicated should be the total computable amount. If the payment made on 
behalf of the child is not the same each month, indicate the amount of 
the last full monthly payment made during the reporting period. If no 
monthly payment has been made during the period, enter all zeros.

[77 FR 934, Jan. 6, 2012]



          Sec. Appendix B to Part 1355--Adoption Data Elements

    Effective Date Note: At 81 FR 90584, Dec. 14, 2016, appendix B to 
part 1355 was removed, effective Oct. 1, 2019. At 83 FR 42225, Aug. 21, 
2018, the removal was delayed until Oct. 1, 2020. At 85 FR 28410, May 
12, 2020, the removal was further delayed until Oct. 1, 2022.

                    Section I--Adoption Data Elements

    I. General Information
    A. Title IV-E agency__
    B. Report Date __(mo.) __(day) __(yr.)
    C. Record Number__
    D. Did the Title IV-E Agency Have any Involvement in This Adoption? 
__
    Yes: 1
    No: 2

                   II. Child's Demographic Information

    A. Date of Birth __(mo) __(day) __(yr.)
    B. Sex __
    Male: 1
    Female: 2
    C. Race/Ethnicity
    1. Race
    a. American Indian or Alaska Native
    b. Asian
    c. Black or African American
    d. Native Hawaiian or Other Pacific Islander
    e. White
    f. Unable to Determine
    2. Hispanic or Latino Ethnicity__
    Yes: 1
    No: 2
    Unable to determine: 3

                        III. Special Needs Status

    A. Has the title IV-E agency determined that this child has special 
needs? __
    Yes: 1
    No: 2
    B. If yes, indicate the primary basis for determining that this 
child has special needs __
    Racial/Original Background: 1
    Age: 2
    Membership in a Sibling Group to be Placed for Adoption Together: 3
    Medical Conditions or Mental, Physical or Emotional Disabilities: 4
    Other: 5
    1. If III. B was ``4,'' indicate with a ``1'' the type(s) of 
disability(ies)
    Mental Retardation __
    Visually or Hearing Impaired __
    Physically Disabled __
    Emotionally Disturbed (DSM III) __
    Other Medically Diagnosed Condition Requiring Special Care __

                            IV. Birth Parents

    A. Year of Birth __

[[Page 331]]

    Mother, If known __
    Father (Putative or Legal), if known __
    B. Was the mother married at the time of the child's birth? __
    Yes: 1
    No: 2
    Unable to Determine: 3

                            V. Court Actions

    A. Dates of Termination of Parental Rights
    Mother __(mo.) __(day) __(yr.)
    Father __(mo.) __(day) __(yr.)
    B. Date Adoption Legalized __(mo.) __(day) __(yr.)

                          VI. Adoptive Parents

    A. Family Structure __
    Married Couple: 1
    Unmarried Couple: 2
    Single Female: 3
    Single Male: 4
    B. Year of Birth
    Mother (if Applicable) __
    Father (if Applicable) __
    C. Race/Ethnicity
    1. Adoptive Mother's Race (If Applicable)
    a. American Indian or Alaska Native
    b. Asian
    c. Black or African American
    d. Native Hawaiian or Other Pacific Islander
    e. White
    f. Unable to Determine
    2. Hispanic or Latino Ethnicity of Mother (If Applicable)__
    Yes: 1
    No: 2
    Unable to Determine: 3
    3. Adoptive Father's Race (If Applicable)
    a. American Indian or Alaska Native
    b. Asian
    c. Black or African American
    d. Native Hawaiian or Other Pacific Islander
    e. White
    f. Unable to Determine
    4. Hispanic or Latino Ethnicity of Father (If Applicable)__
    Yes: 1
    No: 2
    Unable to Determine: 3
    D. Relationship of Adoptive Parent(s) to the Child (Indicate with a 
``1'' all that apply)
    Stepparent
    Other Relative of Child by Birth or Marriage __
    Foster Parent of Child __
    Non-Relative __

                       VII. Placement Information

    A. Child Was Placed From __
    Within State/Tribal Service Area: 1
    Another State/Tribal Service Area: 2
    Another Country: 3
    B. Child Was Placed by __
    Public Agency: 1
    Private Agency: 2
    Tribal Agency: 3
    Independent Person: 4
    Birth Parent: 5

                    VIII. Financial Adoption Support

    A. Is a monthly financial subsidy being paid for this child? __
    Yes: 1
    No: 2
    B. If yes, the monthly amount __
    C. If VIII. A is yes, is the subsidy paid under Title IV-E adoption 
assistance? __
    Yes: 1
    No: 2

   Section II--Definitions of Instructions for Adoption Data Elements

                          Reporting Population

    The title IV-E agency must report on all children who are adopted in 
the State or Tribal service area during the reporting period and in 
whose adoption the title IV-E agency has had any involvement. Failure to 
report on these adoptions will result in assessed finding of 
noncompliance. Reports on all other adoptions are encouraged but are 
voluntary. Therefore, reports on the following are mandated:
    (a) All children adopted who had been in foster care under the 
responsibility and care of the child welfare agency and who were 
subsequently adopted whether special needs or not and whether subsidies 
are provided or not;
    (b) All special needs children who were adopted in the State or 
Tribal service area, whether or not they were in the public foster care 
system prior to their adoption and for whom non-recurring expenses were 
reimbursed; and
    (c) All children adopted for whom an adoption assistance payment or 
service is being provided based on arrangements made by or through the 
title IV-E agency.
    These children must be identified by answering ``yes'' to data 
element I.D. Children who are reported by the title IV-E agency, but for 
whom there has not been any title IV-E agency involvement, and whose 
reporting, therefore, has not been mandated, are identified by answering 
``no'' to element I.D.

                         I. General Information

    A. Title IV-E agency--For a State, the U.S. Postal Service two 
letter abbreviation for the State submitting the report. For a Tribal 
title IV-E agency, the two letter abbreviation provided by ACF.
    B. Report Date--The last month and the year for the reporting 
period.
    C. Record Number--The sequential number which the title IV-E agency 
uses to transmit data to the Department of Health and

[[Page 332]]

Human Services (DHHS). The record number cannot be linked to the child 
except at the title IV-E agency level.
    D. Did the title IV-E Agency Have Any Involvement in This Adoption?
    Indicate whether the title IV-E agency had any involvement in this 
adoption, that is, whether the adopted child belongs to one of the 
following categories:
     A child who had been in foster care under the 
responsibility and care of the child welfare agency and who was 
subsequently adopted whether special needs or not and whether a subsidy 
was provided;
     A special needs child who was adopted in the 
State or Tribal service area, whether or not he/she was in the public 
foster care system prior to his/her adoption and for whom non-recurring 
expenses were reimbursed; or
     A child for whom an adoption assistance payment 
or service is being provided based on arrangements made by or through 
the title IV-E agency.

                   II. Child's Demographic Information

    A. Date of Birth--Month and year of the child's birth. If the child 
was abandoned or the date of birth is otherwise unknown, enter an 
approximate date of birth.
    B. Sex--Indicate as appropriate.
    C. Race/Ethnicity
    1. Race--In general, a person's race is determined by how they 
define themselves or by how others define them. In the case of young 
children, parents determine the race of the child. Indicate all races 
(a-e) that apply with a ``1.'' For those that do not apply, indicate a 
``0.'' Indicate ``f. Unable to Determine'' with a 1'' if it applies and 
a ``0'' if it does not.
    American Indian or Alaska Native--A person having origins in any of 
the original peoples of North or South America (including Central 
America), and who maintains tribal affiliation or community attachment.
    Asian--A person having origins in any of the original peoples of the 
Far East, Southeast Asia, or the Indian subcontinent including, for 
example, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, the 
Philippine Islands, Thailand, and Vietnam.
    Black or African American--A person having origins in any of the 
black racial groups of Africa.
    Native Hawaiian or Other Pacific Islander--A person having origins 
in any of the original peoples of Hawaii, Guam, Samoa, or other Pacific 
Islands.
    White--A person having origins in any of the original peoples of 
Europe, the Middle East, or North Africa.
    Unable to Determine--The specific race category is ``unable to 
determine'' because the child is very young or is severely disabled and 
no person is available to identify the child's race. ``Unable to 
determine'' is also used if the parent, relative or guardian is 
unwilling to identify the child's race.
    2. Hispanic or Latino Ethnicity--Answer ``yes'' if the child is of 
Mexican, Puerto Rican, Cuban, Central or South American origin, or a 
person of other Spanish cultural origin regardless of race. Whether or 
not a person is Hispanic or Latino is determined by how they define 
themselves or by how others define them. In the case of young children, 
parents determine the ethnicity of the child. ``Unable to Determine'' is 
used because the child is very young or is severely disabled and no 
other person is available to determine whether or not the child is 
Hispanic or Latino. ``Unable to determine'' is also used if the parent, 
relative or guardian is unwilling to identify the child's ethnicity.

                        III. Special Needs Status

    A. Has the title IV-E Agency Determined That the Child has Special 
Needs? Use the title IV-E agency definition of special needs as it 
pertains to a child eligible for an adoption subsidy under title IV-E.
    B. Primary Factor or Condition for Special Needs--Indicate only the 
primary factor or condition for categorization as special needs and only 
as it is defined by the title IV-E agency. Racial/Original Background--
Primary condition or factor for special needs is racial/original 
background as defined by the title IV-E agency.
    Age--Primary factor or condition for special needs is age of the 
child as defined by the title IV-E agency.
    Membership in a Sibling Group to be Placed for Adoption Together--
Primary factor or condition for special needs is membership in a sibling 
group as defined by the title IV-E agency.
    Medical Conditions of Mental, Physical, or Emotional Disabilities--
Primary factor or condition for special needs is the child's medical 
condition as defined by the title IV-E agency, but clinically diagnosed 
by a qualified professional.
    When this is the response to question B, then item 1 below must be 
answered.
    1. Types of Disabilities--Data are only to be entered if response to 
III.B was ``4.'' Indicate with a ``1'' the types of disabilities.
    Mental Retardation--Significantly subaverage general cognitive and 
motor functioning existing concurrently with deficits in adaptive 
behavior manifested during the developmental period that adversely 
affect a child's/youth's socialization and learning.
    Visually or Hearing Impaired--Having a visual impairment that may 
significantly affect educational performance or development; or a 
hearing impairment, whether permanent or fluctuating, that adversely 
affects educational performance.
    Physically Disabled--A physical condition that adversely affects the 
child's day-to-day motor functioning, such as cerebral palsy,

[[Page 333]]

spina bifida, multiple sclerosis, orthopedic impairments, and other 
physical disabilities.
    Emotionally Disturbed (DSM III)--A condition exhibiting one or more 
of the following characteristics over a long period of time and to a 
marked degree: An inability to build or maintain satisfactory 
interpersonal relationships; inappropriate types of behavior or feelings 
under normal circumstances; a general pervasive mood of unhappiness or 
depression; or a tendency to develop physical symptoms or fears 
associated with personal problems. The term includes persons who are 
schizophrenic or autistic. The term does not include persons who are 
socially maladjusted, unless it is determined that they are also 
seriously emotionally disturbed. Diagnosis is based on the Diagnostic 
and Statistical Manual of Mental Disorders (Third Edition) (DSM III) or 
the most recent edition.
    Other Medically Diagnosed Conditions Requiring Special Care--
Conditions other than those noted above which require special medical 
care such as chronic illnesses. Included are children diagnosed as HIV 
positive or with AIDS.

                            IV. Birth Parents

    A. Year of Birth--Enter the year of birth for both parents, if 
known. If the child was abandoned and no information was available on 
either one or both parents, leave blank for the parent(s) for which no 
information was available.
    B. Was the Mother Married at the Time of the Child's Birth?
    Indicate whether the mother was married at time of the child's 
birth; include common law marriage if legal in the State or Tribe. If 
the child was abandoned and no information was available on the mother, 
enter ``Unable to Determine.''

                            V. Court Actions

    A. Dates of Termination of Parental Rights--Enter the month, day and 
year that the court terminated parental rights. If the parents are known 
to be deceased, enter the date of death.
    B. Date Adoption Legalized--Enter the date the court issued the 
final adoption decree.

                          VI. Adoptive Parents

    A. Family Structure--Select from the four alternatives--married 
couple, unmarried couple, single female, single male--the category which 
best describes the nature of the adoptive parent(s) family structure.
    B. Year of Birth--Enter the year of birth for up to two adoptive 
parents. If the response to data element IV.A--Family Structure, was 1 
or 2, enter data for two parents. If the response was 3 or 4, enter data 
only for the appropriate parent. If the exact year of birth is unknown, 
enter an estimated year of birth.
    C. Race/Ethnicity--Indicate the race/ethnicity for each of the 
adoptive parent(s). See instructions and definitions for the race/
ethnicity categories under data element II.C. Use ``f. Unable to 
Determine'' only when a parent is unwilling to identify his or her race 
or ethnicity.
    D. Relationship to Adoptive Parent(s)--Indicate the prior 
relationship(s) the child had with the adoptive parent(s).
    Stepparent--Spouse of the child's birth mother or birth father.
    Other Relative of Child by Birth or Marriage--A relative through the 
birth parents by blood or marriage.
    Foster Parent of Child--Child was placed in a non-relative foster 
family home with a family which later adopted him or her. The initial 
placement could have been for the purpose of adoption or for the purpose 
of foster care.
    Non-Relative--Adoptive parent fits into none of the categories 
above.

                       VII. Placement Information

    A. Child Was Placed From: Indicate the location of the individual or 
agency that had custody or responsibility for the child at the time of 
initiation of adoption proceedings.
    Within State or Tribal service area--Responsibility for the child 
resided with an individual or agency within the State or service area of 
the Tribal title IV-E agency filing the report.
    Another State or Tribal service area--Responsibility for the child 
resided with an individual or agency in another State, Tribal service 
area, or territory of the United States.
    Another Country--Immediately prior to the adoptive placement, the 
child was residing in another country and was not a citizen of the 
United States.
    B. Child Was Placed By: Indicate the individual or agency which 
placed the child for adoption.
    Public Agency--A unit of State or local government.
    Private Agency--A for-profit or non-profit agency or institution.
    Tribal Agency--A unit within one of the federally recognized Indian 
Tribes, Indian Tribal organizations, or Indian Tribal consortia.
    Independent Person--A doctor, a lawyer or some other individual.
    Birth Parent--The parent(s) placed the child directly with the 
Adoptive parent(s).

                         VIII. Adoption Support

    A. Is The Child Receiving a Monthly Subsidy?
    Enter ``yes'' if this child was adopted with an adoption assistance 
agreement under

[[Page 334]]

which regular subsidies (Federal, State, or Tribal) are paid.
    B. Monthly Amount--Indicate the monthly amount of the subsidy. The 
amount of the subsidy should be rounded to the nearest dollar. Indicate 
``0'' if the subsidy includes only benefits under titles XIX or XX of 
the Social Security Act.
    C. If VIII.A is ``Yes,'' is Child Receiving Title IV-E Adoption 
Subsidy?
    If VIII.A is ``yes,'' indicate whether the subsidy is claimed by the 
title IV-E agency for reimbursement under title IV-E. Do not include 
title IV-E non-recurring costs in this item.

[77 FR 934, Jan. 6, 2012]



    Sec. Appendix C to Part 1355--Electronic Data Transmission Format

    Effective Date Note: At 81 FR 90584, Dec. 14, 2016, appendix C to 
part 1355 was removed, effective Oct. 1, 2019. At 83 FR 42225, Aug. 21, 
2018, the removal was delayed until Oct. 1, 2020. At 85 FR 28410, May 
12, 2020, the removal was further delayed until Oct. 1, 2022.

    All AFCARS data to be sent from title IV-E agencies to the 
Department are to be in electronic form. In order to meet this general 
specification, the Department will offer as much flexibility as 
possible. Technical assistance will be provided to negotiate a method of 
transmission best suited to the title IV-E agency's environment.
    There will be four semi-annual electronic data transmissions from 
the title IV-E agency to the Administration for Children and Families 
(ACF).
    Regardless of the electronic data transmission methodology selected, 
certain criteria must be met by the title IV-E agency:
    (1) Records must be written using ASCII standard character format.
    (2) All elements must be comprised of integer (numeric) value(s). 
Element character length specifications refer to the maximum number of 
numeric values permitted for that element. See Appendix D.
    (3) All records must be a fixed length. The Foster Care Detailed 
Data Elements Record is 150 characters long and the Adoption Detailed 
Data Elements Record is 72 characters long. The Foster Care Summary Data 
Elements Record and the Adoption Summary Data Elements Record are each 
172 characters long.
    (4) All title IV-E agencies must inform the Department, in writing, 
of the method of transfer they intend to use.

[77 FR 934, Jan. 6, 2012]



  Sec. Appendix D to Part 1355--Foster Care and Adoption Record Layouts

    Effective Date Note: At 81 FR 90584, Dec. 14, 2016, appendix D to 
part 1355 was removed, effective Oct. 1, 2019. At 83 FR 42225, Aug. 21, 
2018, the removal was delayed until Oct. 1, 2020. At 85 FR 28410, May 
12, 2020, the removal was further delayed until Oct. 1, 2022.

                             A. Foster Care

        1. Foster Care Semi-Annual Detailed Data Elements Record

    a. The record will consist of 66 data elements.
    b. Data must be supplied for each of the elements in accordance with 
these instructions:
    (1) All data must be numeric. Enter the appropriate value for each 
element.
    (2) Enter date values in year, month and day order (YYYYMMDD), e.g., 
19991030 for October 30, 1999, or year and month order (YYYYMM), e.g., 
199910 for October 1999. Leave the element value blank if dates are not 
applicable.
    (3) For elements 8, 11-15, 26-40, 52, 54 and 59-65, which are 
``select all that apply'' elements, enter a ``1'' for each element that 
applies, enter a zero for non-applicable elements.
    (4) Transaction Date--is a computer generated date indicating when 
the datum (Elements 21 or 55) is entered into the title IV-E agency's 
automated information system.
    (5) Report the status of all children in foster care as of the last 
day of the reporting period. Also, provide data for all children who 
were discharged from foster care at any time during the reporting 
period, or in the previous reporting period, if not previously reported.
    c. Foster Care Semi-Annual Detailed Data Elements Record Layout 
follows:

----------------------------------------------------------------------------------------------------------------
                                                                                                    Number of
           Element No.                 Appendix A data element       Data element description        numeric
                                                                                                   characters
----------------------------------------------------------------------------------------------------------------
01..............................  I.A.............................  Title IV-E agency.........                 2
02..............................  I.B.............................  Report period ending date.                 6
03..............................  I.C.............................  Local Agency FIPS code                     5
                                                                     (county or equivalent
                                                                     jurisdiction) or other
                                                                     ACF assigned code.
04..............................  I.D.............................  Record number.............                12
05..............................  I.E.............................  Date of most recent                        8
                                                                     periodic review.
06..............................  II.A............................  Child's date of birth.....                 8
07..............................  II.B............................  Sex.......................                 1
08..............................  II.C.1..........................  Race......................
08a.............................  ................................  American Indian or Alaska                  1
                                                                     native.

[[Page 335]]

 
08b.............................  ................................  Asian.....................                 1
08c.............................  ................................  Black or African American.                 1
08d.............................  ................................  Native Hawaiian or Other                   1
                                                                     Pacific Islander.
08e.............................  ................................  White.....................                 1
08f.............................  ................................  Unable to Determine.......                 1
09..............................  II.C.2..........................  Hispanic or Latino                         1
                                                                     Ethnicity.
10..............................  II.D............................  Has this child been                        1
                                                                     clinically diagnosed as
                                                                     having a disability(ies).
                                                                    Indicate each type of
                                                                     disability of the child
                                                                     with a ``1'' for elements
                                                                     11-15 and a zero for
                                                                     disabilities that do not
                                                                     apply.
11..............................  II.D.1.a........................  Mental retardation........                 1
12..............................  II.D.1.b........................  Visually or hearing                        1
                                                                     impaired.
13..............................  II.D.1.c........................  Physically disabled.......                 1
14..............................  II.D.1.d........................  Emotionally disturbed (DSM                 1
                                                                     III).
15..............................  II.D.1.e........................  Other medically diagnosed                  1
                                                                     condition requiring
                                                                     special care.
16..............................  II.E.1..........................  Has this child ever been                   1
                                                                     adopted.
17..............................  II.E.2..........................  If yes, how old was the                    1
                                                                     child when the adoption
                                                                     was legalized?
18..............................  III.A.1.........................  Date of first removal from                 8
                                                                     home.
19..............................  III.A.2.........................  Total number of removals                   2
                                                                     from home to date.
20..............................  III.A.3.........................  Date child was discharged                  8
                                                                     from last foster care
                                                                     episode.
21..............................  III.A.4.........................  Date of latest removal                     8
                                                                     from home.
22..............................  III.A.5.........................  Removal transaction date..                 8
23..............................  III.B.1.........................  Date of placement in                       8
                                                                     current foster care
                                                                     setting.
24..............................  III.B.2.........................  Number of previous                         2
                                                                     placement settings during
                                                                     this removal episode.
25..............................  IV.A............................  Manner of removal from                     1
                                                                     home for current
                                                                     placement episode.
                                                                    Actions or conditions
                                                                     associated with child's
                                                                     removal: Indicate with a
                                                                     ``1'' for elements 26-40
                                                                     and a zero for conditions
                                                                     that do not apply.
26..............................  IV.B.1..........................  Physical abuse (alleged/                   1
                                                                     reported).
27..............................  IV.B.2..........................  Sexual abuse (alleged/                     1
                                                                     reported).
28..............................  IV.B.3..........................  Neglect (alleged/reported)                 1
29..............................  IV.B.4..........................  Alcohol abuse (parent)....                 1
30..............................  IV.B.5..........................  Drug abuse (parent).......                 1
31..............................  IV.B.6..........................  Alcohol abuse (child).....                 1
32..............................  IV.B.7..........................  Drug abuse (child)........                 1
33..............................  IV.B.8..........................  Child's disability........                 1
34..............................  IV.B.9..........................  Child's behavior problem..                 1
35..............................  IV.B.10.........................  Death of parent(s)........                 1
36..............................  IV.B.11.........................  Incarceration of parent(s)                 1
37..............................  IV.B.12.........................  Caretaker's inability to                   1
                                                                     cope due to illness or
                                                                     other reasons.
38..............................  IV.B.13.........................  Abandonment...............                 1
39..............................  IV.B.14.........................  Relinquishment............                 1
40..............................  IV.B.15.........................  Inadequate housing........                 1
41..............................  V.A.............................  Current placement setting.                 1
42..............................  V.B.............................  Out of State/Tribal                        1
                                                                     service area placement.
43..............................  VI..............................  Most recent case plan goal                 1
44..............................  VII.A...........................  Caretaker family structure                 1
45..............................  VII.B.1.........................  Year of birth (1st                         4
                                                                     principal caretaker).
46..............................  VII.B.2.........................  Year of birth (2nd                         4
                                                                     principal caretaker).
47..............................  VIII.A..........................  Date of mother's parental                  8
                                                                     rights termination.
48..............................  VIII.B..........................  Date of legal or putative                  8
                                                                     father's parental rights.
49..............................  IX.A............................  Foster family structure...                 1
50..............................  IX.B.1..........................  Year of birth (1st foster                  4
                                                                     caretaker).
51..............................  IX.B.2..........................  Year of birth (2nd foster                  4
                                                                     caretaker).
52..............................  IX.C.1..........................  Race of 1st foster
                                                                     caretaker.
52a.............................  ................................  American Indian or Alaska                  1
                                                                     Native.
52b.............................  ................................  Asian.....................                 1
52c.............................  ................................  Black or Asian American...                 1
52d.............................  ................................  Native Hawaiian or Other                   1
                                                                     Pacific Islander.
52e.............................  ................................  White.....................                 1
52f.............................  ................................  Unable to Determine.......                 1
53..............................  IX.C.2..........................  Hispanic or Latino                         1
                                                                     ethnicity of 1st foster
                                                                     caretaker.
54..............................  IX.C.3..........................  Race of 2nd foster
                                                                     caretaker.
54a.............................  ................................  American Indian or Alaska                  1
                                                                     Native.
54b.............................  ................................  Asian.....................                 1
54c.............................  ................................  Black or African American.                 1
54d.............................  ................................  Native Hawaiian or Other                   1
                                                                     Pacific Islander.
54e.............................  ................................  White.....................                 1
54f.............................  ................................  Unable to Determine.......                 1

[[Page 336]]

 
55..............................  IX.C.4..........................  Hispanic or Latino                         1
                                                                     ethnicity of 2nd foster
                                                                     caretaker.
56..............................  X.A.1...........................  Date of discharge from                     8
                                                                     foster care.
57..............................  X.A.2...........................  Foster care discharge                      8
                                                                     transaction date.
58..............................  X.B.............................  Reason for discharge......                 1
                                                                    Sources of Federal support/
                                                                     assistance for child;
                                                                     indicate with a ``1'' for
                                                                     elements 58-64 and a zero
                                                                     for sources that do not
                                                                     apply.
59..............................  XI.A............................  Title IV-E (Foster Care)..                 1
60..............................  XI.B............................  Title IV-E (Adoption                       1
                                                                     Assistance).
61..............................  XI.C............................  Title IV-A (Aid to                         1
                                                                     Families With Dependent
                                                                     Children).
62..............................  XI.D............................  Title IV-D (Child Support)                 1
63..............................  XI.E............................  Title XIX (Medicaid)......                 1
64..............................  XI.F............................  SSI or other Social                        1
                                                                     Security Act benefits.
65..............................  XI.G............................  None of the above.........                 1
66..............................  XII.............................  Amount of monthly foster                   5
                                                                     care payment (regardless
                                                                     of source).
                                                                                               -----------------
                                                                       Total characters.......               197
----------------------------------------------------------------------------------------------------------------

    2. Foster Care Semi-Annual Summary Data Elements Record
    a. The record will consist of 22 data elements.
    The values for these data elements are generated by processing all 
records in the semi-annual detailed data transmission and computing the 
summary values for Elements 1 and 3-22. Element 2 is the semi-annual 
report period ending date. In calculating the age range for the child, 
the last day of the reporting period is to be used.
    b. Data must be supplied for each of the elements in accordance with 
these instructions:
    (1) Enter the appropriate value for each element.
    (2) For all elements where the total is zero, enter a numeric zero.
    (3) Enter date values in year, month order (YYYYMM), e.g.,199912 for 
December 1999.
    c. Foster Care Semi-Annual Summary Data Elements Record Layout 
follows:

------------------------------------------------------------------------
                                                            Number of
        Element No.              Summary data file         characters
------------------------------------------------------------------------
01........................  Number of records.........                 8
02........................  Report period ending date                  6
                             (YYYYMM).
03........................  Children in care under 1                   8
                             year.
04........................  Children in care 1 year                    8
                             old.
05........................  Children in care 2 years                   8
                             old.
06........................  Children in care 3 years                   8
                             old.
07........................  Children in care 4 years                   8
                             old.
08........................  Children in care 5 years                   8
                             old.
09........................  Children in care 6 years                   8
                             old.
10........................  Children in care 7 years                   8
                             old.
11........................  Children in care 8 years                   8
                             old.
12........................  Children in care 9 years                   8
                             old.
13........................  Children in care 10 years                  8
                             old.
14........................  Children in care 11 years                  8
                             old.
15........................  Children in care 12 years                  8
                             old.
16........................  Children in care 13 years                  8
                             old.
17........................  Children in care 14 years                  8
                             old.
18........................  Children in care 15 years                  8
                             old.
19........................  Children in care 16 years                  8
                             old.
20........................  Children in care 17 years                  8
                             old.
21........................  Children in care 18 years                  8
                             old.
22........................  Children in care over 18                   8
                             years old.
                                                       -----------------
                               Record Length..........               174
------------------------------------------------------------------------

                               B. Adoption

          1. Adoption Semi-Annual Detailed Data Elements Record

    a. The record will consist of 37 data elements.
    b. Data must be supplied for each of the elements in accordance with 
these instructions:
    (1) Enter the appropriate value for each element.

[[Page 337]]

    (2) Enter date values in year, month and day order (YYYYMMDD), e.g., 
19991030 for October 30, 1999, or year and month (YYYYMM), e.g., 199910 
for October 1999. Leave the element value blank if dates are not 
applicable.
    (3) For elements 7, 11-15, 25, 27 and 29-32 which are ``select all 
that apply'' elements, enter a ``1'' for each element that applies; 
enter a zero for non-applicable elements.
    c. Adoption Semi-Annual Detailed Data Elements Record Layout 
follows:

----------------------------------------------------------------------------------------------------------------
                                                                                                    Number of
           Element No.                 Appendix B data element       Data element description        numeric
                                                                                                   characters
----------------------------------------------------------------------------------------------------------------
01..............................  I.A.............................  Title IV-E agency.........                 2
02..............................  I.B.............................  Report period ending date.                 6
03..............................  I.C.............................  Record number.............                 6
04..............................  I.D.............................  Title IV-E agency                          1
                                                                     involvement.
05..............................  II.A............................  Date of birth.............                 6
06..............................  II.B............................  Sex.......................                 1
07..............................  II.C.1..........................  Race......................
07a.............................  ................................  American Indian or Alaska                  1
                                                                     Native.
07b.............................  ................................  Asian.....................                 1
07c.............................  ................................  Black or African American.                 1
07d.............................  ................................  Native Hawaiian or Other                   1
                                                                     Pacific Islander.
07e.............................  ................................  White.....................                 1
07f.............................  ................................  Unable to Determine.......                 1
08..............................  II.C.2..........................  Hispanic or Latino                         1
                                                                     ethnicity.
09..............................  III.A...........................  Has the title IV-E agency                  1
                                                                     determined that this
                                                                     child has special needs.
10..............................  III.B...........................  Primary basis for special                  1
                                                                     needs.
                                                                    Indicate a primary basis
                                                                     of special needs with a
                                                                     ``1'' for elements 11-15.
                                                                     Enter a zero for special
                                                                     needs that do not apply.
11..............................  III.B.1.a.......................  Mental retardation........                 1
12..............................  III.B.1.b.......................  Visually or hearing                        1
                                                                     impaired.
13..............................  III.B.1.c.......................  Physically disabled.......                 1
14..............................  III.B.1.d.......................  Emotionally disturbed (DSM                 1
                                                                     III).
15..............................  III.B.1.e.......................  Other medically diagnosed                  1
                                                                     condition requiring
                                                                     special care.
16..............................  IV.A.1..........................  Mother's year of birth....                 4
17..............................  IV.A.2..........................  Father's (Putative or                      4
                                                                     legal) year of birth.
18..............................  IV.B............................  Was the mother married at                  1
                                                                     time of child's birth.
19..............................  V.A.1...........................  Date of mother's                           8
                                                                     termination of parental
                                                                     rights.
20..............................  V.A.2...........................  Date of father's                           8
                                                                     termination of parental
                                                                     rights.
21..............................  V.B.............................  Date adoption legalized...                 8
22..............................  VI.A............................  Adoptive parents family                    1
                                                                     structure.
23..............................  VI.B.1..........................  Mother's year of birth (if                 4
                                                                     applicable).
24..............................  VI.B.2..........................  Father's year of birth (if                 4
                                                                     applicable).
25..............................  VI.C.1..........................  Adoptive mother's race....
25a.............................  ................................  American Indian or Alaska                  1
                                                                     Native.
25b.............................  ................................  Asian.....................                 1
25c.............................  ................................  Black or African American.                 1
25d.............................  ................................  Native Hawaiian or Other                   1
                                                                     Pacific Islander.
25e.............................  ................................  White.....................                 1
25f.............................  ................................  Unable to Determine.......                 1
26..............................  VI.C.2..........................  Hispanic or Latino                         1
                                                                     Ethnicity.
27..............................  VI.C.3..........................  Adoptive father's race....
27a.............................  ................................  American Indian or Alaska                  1
                                                                     Native.
27b.............................  ................................  Asian.....................                 1
27c.............................  ................................  Black or African American.                 1
27d.............................  ................................  Native Hawaiian or Other                   1
                                                                     Pacific Islander.
27e.............................  ................................  White.....................                 1
27f.............................  ................................  Unable to Determine.......                 1
28..............................  VI.C.4..........................  Hispanic or Latino                         1
                                                                     Ethnicity.
                                                                    Indicate each type of
                                                                     relationship of adoptive
                                                                     parent(s) to the child
                                                                     with a ``1'' for elements
                                                                     29-32. Enter a zero for
                                                                     relationships that do not
                                                                     apply below.
29..............................  VI.D.1..........................  Stepparent................                 1
30..............................  VI.D.2..........................  Other relative of child by                 1
                                                                     birth or marriage.
31..............................  VI.D.3..........................  Foster parent of child....                 1
32..............................  VI.D.4..........................  Other non-relative........                 1
33..............................  VII.A...........................  Child was placed from.....                 1
34..............................  VII.B...........................  Child was placed by.......                 1
35..............................  VIII.A..........................  Is this child receiving a                  1
                                                                     monthly subsidy.
36..............................  VIII.B..........................  If VIII.B is ``yes.'' What                 5
                                                                     is the monthly amount.
37..............................  VIII.C..........................  If VII.B is ``yes.'' Is                    1
                                                                     the child receiving title
                                                                     IV-E adoption assistance?.
                                                                                               -----------------
                                                                       Total Characters.......  ................
----------------------------------------------------------------------------------------------------------------


[[Page 338]]

          2. Adoption Semi-Annual Summary Data Elements Record

    a. The record will consist of 22 data elements.
    The values for these data elements are generated by processing all 
records in the semi-annual detailed data transmission and computing the 
summary values for Elements 1 and 3-22. Element 2 is the semi-annual 
report period ending date. In calculating the age range for the child, 
the last day of the reporting period is to be used.
    b. Data must be supplied for each of the elements in accordance with 
these instructions:
    (1) Enter the appropriate value for each element.
    (2) For all elements where the total is zero, enter a numeric zero.
    (3) Enter data values in year, month order (YYYYMM), e.g., 199912 
for December 1999.
    c. Adoption Semi-Annual Summary Data Element Record Layout follows:

------------------------------------------------------------------------
                                                            Number of
        Element No.              Summary data file         characters
------------------------------------------------------------------------
01........................  Number of records.........                 8
02........................  Report period ending date                  6
                             (YYYYMM).
03........................  Children adopted Under 1                   8
                             year old.
04........................  Children adopted 1 year                    8
                             old.
05........................  Children adopted 2 years                   8
                             old.
06........................  Children adopted 3 years                   8
                             old.
07........................  Children adopted 4 years                   8
                             old.
08........................  Children adopted 5 years                   8
                             old.
09........................  Children adopted 6 years                   8
                             old.
10........................  Children adopted 7 years                   8
                             old.
11........................  Children adopted 8 years                   8
                             old.
12........................  Children adopted 9 years                   8
                             old.
13........................  Children adopted 10 years                  8
                             old.
14........................  Children adopted 11 years                  8
                             old.
15........................  Children adopted 12 years                  8
                             old.
16........................  Children adopted 13 years                  8
                             old.
17........................  Children adopted 14 years                  8
                             old.
18........................  Children adopted 15 years                  8
                             old.
19........................  Children adopted 16 years                  8
                             old.
20........................  Children adopted 17 years                  8
                             old.
21........................  Children adopted 18 years                  8
                             old.
22........................  Children adopted over 18                   8
                             years old.
                                                       -----------------
                               Record Length..........               174
------------------------------------------------------------------------


[77 FR 934, Jan. 6, 2012]



              Sec. Appendix E to Part 1355--Data Standards

    Effective Date Note: At 81 FR 90584, Dec. 14, 2016, appendix E to 
part 1355 was removed, effective Oct. 1, 2019. At 83 FR 42225, Aug. 21, 
2018, the removal was delayed until Oct. 1, 2020. At 85 FR 28410, May 
12, 2020, the removal was further delayed until Oct. 1, 2022.

    All data submissions will be evaluated to determine the completeness 
and internal consistency of the data. Four types of assessments will be 
conducted on both the foster care and adoption data submissions. The 
results of these assessments will determine the applicability of a 
substantial noncompliance determination with the title IV-E plan.
    The four types of assessments are:
     Comparisons of the detailed data to summary data;
     Internal consistency checks of the detailed data;
     An assessment of the status of missing data; and
     Timeliness, an assessment of how current the 
submitted data are.

                             A. Foster Care

              1. Summary Data Elements Submission Standards

    A summary file must accompany the Detailed Data Elements submission. 
Both transmissions must be sent through electronic means (see appendix C 
for details). This summary will be used to verify basic counts of 
records on the detailed data received.
    a. The summary file must be a discrete file separate from the semi-
annual reporting period detailed data file. The record layout for the 
summary file is included in appendix D. section A.2.c. All data must be 
included. If the value for a numeric field is zero, zero must be 
entered.
    b. The Department will develop a second summary file by computing 
the values from the detailed data file received from the title IV-E 
agency. The two summary files (the one submitted by the title IV-E 
agency and the one created during Federal processing)

[[Page 339]]

will be compared, field by field. If the two files match, further 
validation of the detailed data elements will commence. If the two 
summary files do not match, we will assume that there has been an error 
in transmission and will request a retransmission from the title IV-E 
agency within 24 hours of the time the title IV-E agency has been 
notified. In addition, a log of these occurrences will be kept as a 
means of cataloging problems and offering suggestions on improved 
procedures.

               2. Detailed Data File Submission Standards

    a. Internal Consistency Validations.
    Internal consistency validations involve evaluating the logical 
relationships between data elements in a detailed record. For example, a 
child cannot be discharged from foster care before he or she has been 
removed from his or her home. Thus, the Date of Latest Removal From Home 
data element must be a date prior to the Date of Discharge. If this is 
not the case, an internal inconsistency will be detected and an 
``error'' indicated in the detailed data file.
    A number of data elements have ``if applicable'' contingency 
relationships with other data elements in the detailed record. For 
example, if the Foster Family Structure has only a single parent, then 
the appropriate sex of the Single Female/Male element in the ``Year of 
Birth'' and ``Race/Origin'' elements must be completed and the ``non-
applicable'' fields for these elements are to be filled with zero's or, 
for dates, left blank.
    The internal consistency validations that will be performed on the 
foster care detailed data are as follows:
    (1) The Local Agency must be the county or a county equivalent unit 
which has responsibility for the case. The 5 digit Federal Information 
Processing Standard (FIPS) or other ACF assigned code must be used.
    (2) If Date of Latest Removal From Home (Element 21) is less than 
nine months prior to the Report Period Ending Date (Element 2) then the 
Date of Most Recent Periodic Review (Element 5) may be left blank.
    (3) If Date of Latest Removal From Home (Element 21) is greater than 
nine months from Report Date (Element 2) then the Date of Most Recent 
Periodic Review (Element 5) must not be more than nine months prior to 
the Report Date (Element 2).
    (4) If a child is identified as having a disability(ies) (Element 
10), at least one Type of Disability Condition (Elements 11-15) must be 
indicated. Enter a zero (0) for disabilities that do not apply.
    (5) If the Total Number of Removals From Home to Date (Element 19) 
is one (1), the Date Child was Discharged From Last Foster Care Episode 
(Element 20) must be blank.
    (6) If the Total Number of Removals From Home to Date (Element 19) 
is two or more, then the Date Child was Discharged From Last Foster Care 
Episode (Element 20) must not be blank.
    (7) If Date Child was Discharged From Last Foster Care Episode 
(Element 20) exists, then this date must be a date prior to the Date of 
Latest Removal From Home (Element 21).
    (8) The Date of Latest Removal From Home (Element 21) must be prior 
to the Date of Placement in Current Foster Care Setting (Element 23).
    (9) At least one element between elements 26 and 40 must be answered 
by selecting a ``1''. Enter a zero (0) for conditions that do not apply.
    (10) If Current Placement Setting (Element 41) is a value that 
indicates that the child is not in a foster family or a pre-adoptive 
home, then elements 49-55 must be zero (0).
    (11) At least one element between elements 59 and 65 must be 
answered by selecting a ``1''. Enter a zero for sources that do not 
apply.
    (12) If the answer to the question, ``Has this child ever been 
adopted?'' (Element 16) is ``1'' (Yes), then the question, ``How old was 
the child when the adoption was legalized?'' (Element 17) must have an 
answer from ``1'' to ``5.''
    (13) If the Date of Most Recent Periodic Review (Element 5) is not 
blank, then Manner of Removal From Home for Current Placement Episode 
(Element 25) cannot be option 3, ``Not Yet Determined.''
    (14) If Reason for Discharge (Element 58) is option 3, ``Adoption,'' 
then Parental Rights Termination dates (Elements 46 and 47) must not be 
blank.
    (15) If the Date of Latest Removal From Home (Element 21) is 
present, the Date of Latest Removal From Home Transaction Date (Element 
22) must be present and must be later than or equal to the Date of 
Latest Removal From Home (Element 21).
    (16) If the Date of Discharge From Foster Care (Element 56) is 
present, the Date of Discharge From Foster Care Transaction Date 
(Element 57) must be present and must be later than or equal to the Date 
of Discharge From Foster Care (Element 56).
    (17) If the Date of Discharge From Foster Care (Element 56) is 
present, it must be after the Date of Latest Removal From Home (Element 
21).
    (18) In Elements 8, 52, and 54, race categories (``a'' through 
``e'') and ``f. Unable to Determine'' cannot be coded ``0,'' for it does 
not apply. If any of the race categories apply and are coded as ``1'' 
then ``f. Unable to Determine'' cannot also apply.
    b. Out-of-Range Standards.
    Out-of-range standards relate to the occurrence of values in 
response to data elements that exceed, either positively or negatively, 
the acceptable range of responses to the question. For example, if the 
acceptable responses to the element, Sex of the Adoptive Child, is ``1'' 
for a male and ``2'' for a female,

[[Page 340]]

but the datum provided in the element is ``3,'' this represents an out-
of-range response situation.
    Out-of-range comparisons will be made for all elements. The 
acceptable values are described in Appendix A, Section I.

                        3. Missing Data Standards

    The term ``missing data'' refers to instances where data for an 
element are required but are not present in the submission. Data 
elements with values of ``Unable to Determine,'' ``Not Yet Determined'' 
or which are not applicable, are not considered missing.
    a. In addition, the following situations will result in converting 
data values to a missing data status:
    (1) Data elements whose values fail internal consistency validations 
as outlined in A.2.a.(1)-(18) above, and
    (2) Data elements whose values are out-of-range.
    b. The maximum amount of allowable missing data is dependent on the 
data elements as described below:
    (1) No Missing Data.
    The data for the elements listed below must be present in all 
records in the submission. If any record contains missing data for any 
of these elements, the entire submission will be considered missing and 
processing will not proceed.

------------------------------------------------------------------------
            Element No.                         Element name
------------------------------------------------------------------------
01................................  Title IV-E agency.
02................................  Report date.
03................................  Local agency FIPS code or other ACF
                                     assigned code.
04................................  Record number.
------------------------------------------------------------------------

    (2) Less Than Ten Percent Missing Data.
    The data for the elements listed below cannot have ten percent or 
more missing data without incurring a finding of substantial 
noncompliance with the title IV-E plan.

------------------------------------------------------------------------
            Element No.                      Element description
------------------------------------------------------------------------
05................................  Date of most recent periodic,
                                     review.
06................................  Child's date of birth.
07................................  Child's sex.
08................................  Child's race.
09................................  Child's Hispanic or Latino
                                     Ethnicity.
10................................  Does child have a disability(ies)?
11-15.............................  Type of disability (at least one
                                     must be selected).
16................................  Has child been adopted?
17................................  How old was child when adoption was
                                     legalized?
18................................  Date of first removal from home.
19................................  Total number of removals from home
                                     to date.
20................................  Date child was discharged from last
                                     foster care.
21................................  Date of latest removal from home.
22................................  Removal transaction date.
23................................  Date of placement in current foster
                                     care setting.
24................................  Number of previous placement
                                     settings during this removal
                                     episode.
25................................  Manner of removal from home for
                                     current placement episode.
26-40.............................  Actions or conditions associated
                                     with child's removal (at least one
                                     must be selected).
41................................  Current placement setting.
42................................  Out of State/Tribal service area
                                     placement.
43................................  Most recent case plan goal.
44................................  Caretaker family structure.
45................................  Year of birth of 1st principal
                                     caretaker.
46................................  Year of birth of 2nd principal
                                     caretaker.
47................................  Date of mother's parental rights
                                     termination.
48................................  Legal or putative father parental
                                     rights termination date.
49................................  Foster family structure.
50................................  Year of birth of 1st foster
                                     caretaker.
51................................  Year of birth of 2nd foster
                                     caretaker.
52................................  Race of 1st foster caretaker.
53................................  Hispanic or Latino Ethnicity of 1st
                                     foster caretaker.
54................................  Race of 2nd foster caretaker.
55................................  Hispanic or Latino Ethnicity of 2nd
                                     foster caretaker.
56................................  Date of discharge from foster care.
57................................  Foster care discharge transaction
                                     date.
58................................  Reason for discharge.
59-65.............................  Sources of Federal support/
                                     assistance for child (at least one
                                     must be selected).
66................................  Amount of monthly foster care
                                     payment (regardless of source).
------------------------------------------------------------------------

    c. Determination of substantial noncompliance with the title IV-E 
plan.
    Missing data are a major factor in determining substantial 
noncompliance with the title IV-E plan.
    (1) Selection Rules.
    All data elements will be used in calculating missing data unless 
one of the following limiting rules applies to the detailed case record.
    (a) If Date of Latest Removal From Home (Element 21) and the Date of 
Discharge From Foster Care (Element 56) is less than 30 days, then the 
following date elements are the only ones to be used in evaluating the 
missing data provisions for purposes of a determination of substantial 
noncompliance with the title IV-E plan:

Elements
1 to 4
6 to 9
21 and 22
41 and 42
56 to 58

    (b) If Date of Latest Removal From Home (Element 18) is prior to 
October 1, 1995, then the following data elements are the only ones to 
be used in evaluating the missing data provisions for purposes of a 
determination of substantial noncompliance with the title IV-E plan:
Elements
1 to 4
6 to 9
21 and 22
41 and 43

[[Page 341]]

56 to 58

    (2) Determination of substantial noncompliance with the title IV-E 
plan.
    The percentage calculation will be performed for each data element. 
The total number of detailed records that are included by the selection 
rules in 3.c.(1), will serve as the denominator. The number of missing 
data occurrences for each element will serve as the numerator. The 
result will be multiplied by one hundred. The determination of 
substantial noncompliance with the title IV-E plan is made when any one 
element's missing data percentage is ten percent or greater.

                4. Timeliness of Foster Care Data Reports

    Title IV-E agencies are required to submit reports within 45 
calendar days after the end of the semi-annual reporting period.
    Computer generated transaction dates indicate the date when key 
foster care events are entered into the title IV-E agency's computer 
system. The intent of these transaction dates is to ensure that 
information about the status of children in foster care is recorded and, 
thus, reported in a timely manner.
    a. Date of Latest Removal From Home.
    The Date of Latest Removal From Home Transaction Date (Element 22) 
must not be more than 60 days after the Date of Latest Removal From Home 
(Element 21) event.
    b. The Date of Discharge From Foster Care Transaction Data (Element 
57) must not be more than 60 days after the Date of Discharge From 
Foster Care (Element 56) event.
    For purposes of a determination of substantial noncompliance with 
the title IV-E plan, ninety percent of the records in a detailed data 
submission, must indicate that:
    (1) The difference between the Date of Latest Removal From Home 
Transaction Date (Element 22) and the Date of Latest Removal From Home 
(Element 21) event is 60 days or less;
    and, where applicable,
    (2) The difference between the Date of Discharge From Foster Care 
Transaction Date (Element 57), and the Date of Discharge From Foster 
Care (Element 56) event is 60 days or less.

                               B. Adoption

           1. Summary Data Elements File Submission Standards

    A summary file must accompany the detailed Data Elements File 
submission. Both files must be sent through electronic means (see 
appendix C for details). This summary will be used to verify the 
completeness of the Detailed Data File submission received.
    a. The summary file should be a discrete file separate from the 
semi-annual reporting period detailed data file. The record layout for 
the summary file is included in appendix D, section B.2.c. All data must 
be included. If the value for a numeric field is zero, zero must be 
entered.
    b. The Department will develop a second summary file by computing 
the values from the detailed data file received from the title IV-E 
agency. The two summary files (the one submitted by the title IV-E 
agency and the one created during Federal processing) will be compared, 
field by field. If the two files match, further validation of the 
detailed data elements will commence. (See section B.2 below.) If the 
two summary files do not match, we will assume that there has been an 
error in transmission and will request a retransmission from the title 
IV-E agency within 24 hours of the time the title IV-E agency has been 
notified. In addition, a log of these occurrences will be kept as a 
means of cataloging problems and offering suggestions on improved 
procedures.

           2. Detailed Data Elements File Submission Standards

                   a. Internal Consistency Validations

    Internal consistency validations involve evaluating the logical 
relationships between data elements in a detailed record. For example, 
an adoption cannot be finalized until parental rights have been 
terminated. Thus, the dates of Mother/Father Termination of Parental 
Rights, elements must be present and the dates must be prior to the 
``Date Adoption Legalized.'' If this is not the case, an internal 
inconsistency will be detected and an ``error'' indicated in the 
detailed data file.
    A number of data elements have ``if applicable'' contingency 
relationships with other data elements in the detailed record. For 
example, if the Adoptive Parent is single, then the appropriate sex of 
the single female/male element in the ``Family Structure,'' ``Year of 
Birth'' and ``Race/Origin'' elements must be completed and the ``non-
applicable'' fields for these elements are to be filled with zeros or 
left blank.
    The internal consistency validations that will be performed on the 
adoption detailed data are as follows:
    (1) The Child's Date of Birth (Element 5) must be later than both 
the Mother's and Father's Year of Birth (Elements 16 and 17) unless 
either of these is unknown.)
    (2) If the title IV-E agency has determined that the child is a 
special needs child (Element 9), then ``the primary basis for 
determining that this child has special needs'' (Element 10) must be 
completed. If ``the primary basis for determining that this child has 
special needs'' (Element 10) is answered by option ``4,'' then at least 
one element between Elements 11-15, ``Type of Disability,'' must be 
selected. Enter a zero (0) for disabilities that do not apply.

[[Page 342]]

    (3) Dates of Parental Rights Termination (Elements 19 and 20) must 
be completed and must be prior to the Date Adoption Legalized (Element 
21).
    (4) If ``Is a monthly financial subsidy being paid for this child'' 
(Element 35) is answered negatively, ``2'', then Element 36 must be zero 
(0) and ``Is the subsidy paid under Title IV-E adoption assistance'' 
(Element 37) must be a ``2''.
    (5) If the ``Child Was Placed By'' (Element 34) is answered with 
option 1, ``Public Agency,'' then the question, ``Did the title IV-E 
Agency Have any Involvement in This Adoption'' (Element 4) must be 
``1''.
    (6) If the ``Relationship of Adoptive Parent(s) to the Child,'' 
``Foster Parent of Child'' (Element 31) is selected, then the question, 
``Did the title IV-E Agency Have any Involvement in This Adoption'' 
(Element 4) must be ``1''.
    (7) If ``Is a monthly financial subsidy being paid for this child?'' 
(Element 35) answered ``1,'' then the question, ``Did the title IV-E 
Agency Have any Involvement in This Adoption'' (Element 4) must be 
``1.''
    (8) If the ``Family Structure'' (Element 22) is option 3, Single 
Female, then the Mother's Year of Birth (Element 23), the ``Adoptive 
Mother's Race'' (Element 25) and ``Hispanic or Latino Ethnicity'' 
(Element 26) must be completed. Similarly, if the ``Family Structure'' 
(Element 22) is option 4, Single Male, then the Father's Year of Birth 
(Element 24), the Adoptive Father's Race'' (Element 27) and ``Hispanic 
or Latino Ethnicity'' (Element 28) must be completed. If the ``Family 
Structure'' (Element 22) is option 1 or 2, then both Mother's and 
Father's ``Year of Birth,'' ``Race'' and ``Hispanic or Latino 
Ethnicity'' must be completed.
    (9) In Elements 7, 25, and 27, race categories (``a'' through ``e'') 
and ``f. Unable to Determine'' cannot be coded ``0,'' for it does not 
apply. If any of the race categories apply and are coded as ``1'' then 
``f. Unable to Determine'' cannot also apply.

                        b. Out-of-Range Standards

    Out-of-range standards relate to the occurrence of values in 
response to data elements that exceed, either positively or negatively, 
the acceptable range of responses to the question. For example, if the 
acceptable response to the element, Sex of the Adoptive Child, is ``1'' 
for a male and ``2'' for a female, but the datum provided in the element 
is ``3,'' this represents an out-of-range response situation.
    Out-of-range comparisons will be made for all elements. The 
acceptable values are described in appendix B, section I.

                        3. Missing Data Standards

    The term ``missing data'' refers to instances where data for an 
element are required but are not present in the submission. Data 
elements with values of ``Unable to Determine,'' ``Other'' or which are 
not applicable, are not considered missing.
    a. In addition, the following situations will result in converting 
data values to a missing data status:
    (1) Data elements whose values fail internal consistency validations 
as outlined in 2.a.(1)-(9) above, and
    (2) Data elements whose values are out-of-range.
    b. The maximum amount of allowable missing data is dependent on the 
data elements as described below.
    (1) No Missing Data.
    The data for the elements listed below must be present in all 
records in the submission. If any record contains missing data for any 
of these elements, the entire submission will be considered missing and 
processing will not proceed.

------------------------------------------------------------------------
            Element No.                         Element name
------------------------------------------------------------------------
01................................  Title IV-E agency.
02................................  Report date.
03................................  Record number.
04................................  Did the title IV-e agency have any
                                     involvement in this adoption?
------------------------------------------------------------------------

                 (2) Less Than Ten Percent Missing Data

    The data for the elements listed below cannot have ten percent or 
more missing data without incurring a determination of substantial 
noncompliance with the title IV-E plan.

------------------------------------------------------------------------
            Element No.                         Element name
------------------------------------------------------------------------
05................................  Child's date of birth.
06................................  Child's sex.
07................................  Child's race.
08................................  Is the child of Hispanic or Latino
                                     ethnicity?
09................................  Does child have special needs?
10................................  Indicate the primary basis for
                                     determining that the child has
                                     special needs. (If Element 09 is
                                     yes, you must answer this
                                     question.)
11-15.............................  Type of special need (at least one
                                     must be selected.)
16................................  Mother's year of birth.
17................................  Father's year of birth.
18................................  Was mother married at time of
                                     child's birth?
19................................  Date of mother's termination of
                                     parental rights.
20................................  Date of father's termination of
                                     parental rights.
21................................  Date adoption legalized.
22................................  Adoptive parent(s)' family
                                     structure.
23................................  Mother's year of birth.
24................................  Father's year of birth.
25................................  Adoptive mother's race.
26................................  Hispanic or Latino ethnicity of
                                     mother.
27................................  Adoptive father's race.
28................................  Hispanic or Latino ethnicity of
                                     father.
29-32.............................  Relationship of adoptive parent(s)
                                     to child (at least one must be
                                     selected.)
33................................  Child placed from.
34................................  Child placed by.

[[Page 343]]

 
35................................  Is a monthly financial subsidy paid
                                     for this child?
36................................  If yes, the monthly amount is?
37................................  Is the child receiving Title IV-E
                                     adoption assistance? (If Element 35
                                     is a ``1'' (Yes) an answer to this
                                     question is required.)
------------------------------------------------------------------------

    c. Determination of substantial noncompliance with the title IV-E 
plan.
    Missing data are a major factor in determining substantial 
noncompliance with the title IV-E plan.
    (1) Selection Rules.
    Only the adoption records with a ``1'' (Yes) answer in Element 4, 
``Did the title IV-E Agency have any Involvement in this adoption'' will 
be subject to a determination of substantial noncompliance with the 
title IV-E plan.
    (2) Determination of substantial noncompliance with the title IV-E 
plan.
    The percentage calculation will be performed for each data element. 
The total number of detailed records will serve as the denominator and 
the number of missing data occurrences for each element will serve as 
the numerator. The result will be multiplied by one hundred. The 
determination of substantial noncompliance with the title IV-E plan is 
made when any one element's missing data percentage is ten percent or 
greater.

                    4. Timeliness of Adoption Reports

    The title IV-E agency is required to submit reports within 45 
calendar days after the end of the semi-annual reporting period.
    For determinations of substantial noncompliance with the title IV-E 
plan purposes, however, no specific timeliness of data standards apply. 
Data on adoptions should be submitted as promptly after finalization as 
possible.
    The desired approach to reporting adoption data is that adoptions 
should be reported during the reporting period in which the adoption is 
legalized. Or, at the title IV-E agency's option, they can be reported 
in the following reporting period if the adoption is legalized within 
the last 60 days of the reporting period.
    Negative reports must be submitted for any semi-annual period in 
which no adoptions have been legalized.

[77 FR 934, Jan. 6, 2012]



PART 1356_REQUIREMENTS APPLICABLE TO TITLE IV-E--Table of Contents



Sec.
1356.10 Scope.
1356.20 Title IV-E plan document and submission requirements.
1356.21 Foster care maintenance payments program implementation 
          requirements.
1356.22 Implementation requirements for children voluntarily placed in 
          foster care.
1356.30 Safety requirements for foster care and adoptive home providers.
1356.40 Adoption assistance program: Administrative requirements to 
          implement section 473 of the Act.
1356.41 Nonrecurring expenses of adoption.
1356.50 Withholding of funds for non-compliance with the approved title 
          IV-E plan.
1356.60 Fiscal requirements (title IV-E).
1356.65-1356.66 [Reserved]
1356.67 Procedures for the transfer of placement and care responsibility 
          of a child from a State to a Tribal title IV-E agency or an 
          Indian Tribe with a title IV-E agreement.
1356.68 Tribal title IV-E agency requirements for in-kind administrative 
          and training contributions from third-party sources.
1356.69-1356.70 [Reserved]
1356.71 Federal review of the eligibility of children in foster care and 
          the eligibility of foster care providers in title IV-E 
          programs.
1356.80 Scope of the National Youth in Transition Database.
1356.81 Reporting population.
1356.82 Data collection requirements.
1356.83 Reporting requirements and data elements.
1356.84 Sampling.
1356.85 Compliance.
1356.86 Penalties for noncompliance.

Appendix A to Part 1356--NYTD Data Elements
Appendix B to Part 1356--NYTD Youth Outcome Survey
Appendix C to Part 1356--Calculating Sample Size for NYTD Follow-Up 
          Populations

    Authority: 42 U.S.C. 620 et seq., 42 U.S.C. 670 et seq.; 42 U.S.C. 
1302.



Sec.  1356.10  Scope.

    This part applies to title IV-E agency programs for foster care 
maintenance payments, adoption assistance payments, related foster care 
and adoption administrative and training expenditures, and the 
independent living services program under title IV-E of the Act.

[77 FR 946, Jan. 6, 2012]

[[Page 344]]



Sec.  1356.20  Title IV-E plan document and submission requirements.

    (a) To be in compliance with the title IV-E plan requirements and to 
be eligible to receive Federal financial participation (FFP) in the 
costs of foster care maintenance payments and adoption assistance under 
this part, a title IV-E agency must have a plan approved by the 
Secretary that meets the requirements of this part, part 1355, section 
471(a) of the Act and for Tribal title IV-E agencies, section 479B(c) of 
the Act. The title IV-E plan must be submitted to the appropriate 
Regional Office, ACYF, in a form determined by the title IV-E agency.
    (b) Failure by a title IV-E agency to comply with the requirements 
and standards for the data reporting system for foster care and adoption 
(Sec.  1355.40 of this chapter) shall be considered a substantial 
failure by the title IV-E agency in complying with the plan.
    (c) The following procedures for approval of plans and amendments 
apply to the title IV-E program:
    (1) Plan. The plan consists of written documents furnished by the 
title IV-E agency to cover its program under part E of title IV. After 
approval of the original plan by the Commissioner, ACYF, all relevant 
changes, required by new statutes, rules, regulations, interpretations, 
and court decisions, are required to be submitted currently so that ACYF 
may determine whether the plan continues to meet Federal requirements 
and policies.
    (2) Submittal. Plans and revisions of the plans are submitted first 
to the State governor or his/her designee, or the Tribal leader or his/
her designee for review and then to the regional office, ACYF. Title IV-
E agencies are encouraged to obtain consultation of the regional staff 
when a plan is in process of preparation or revision.
    (3) Review. Staff in the regional offices are responsible for review 
of plans and amendments. They also initiate discussion with the title 
IV-E agency on clarification of significant aspects of the plan which 
come to their attention in the course of this review. Plan material on 
which the regional staff has questions concerning the application of 
Federal policy is referred with recommendations as required to the 
central office for technical assistance. Comments and suggestions, 
including those of consultants in specified areas, may be prepared by 
the central office for use by the regional staff in negotiations with 
the title IV-E agency.
    (4) Action. ACYF has the authority to approve plans and amendments 
thereto which provide for the administration of foster care maintenance 
payments and adoption assistance programs under section 471 of the Act. 
The Commissioner, ACYF, retains the authority to determine that proposed 
plan material is not approvable, or that a previously approved plan no 
longer meets the requirements for approval. The Regional Office, ACYF, 
formally notifies the title IV-E agency of the actions taken on plans or 
revisions.
    (5) Basis for approval. Determinations as to whether plans 
(including plan amendments and administrative practice under the plans) 
originally meet or continue to meet, the requirements for approval are 
based on relevant Federal statutes and regulations.
    (6) Prompt approval of plans. The determination as to whether a plan 
submitted for approval conforms to the requirements for approval under 
the Act and regulations issued pursuant thereto shall be made promptly 
and not later than the 45th day following the date on which the plan 
submittal is received in the regional office, unless the Regional 
Office, ACYF, has secured from the title IV-E agency a written agreement 
to extend that period.
    (7) Prompt approval of plan amendments. Any amendment of an approved 
plan may, at the option of the title IV-E agency, be considered as a 
submission of a new plan. If the title IV-E agency requests that such 
amendment be so considered, the determination as to its conformity with 
the requirements for approval shall be made promptly and not later than 
the 45th day following the date on which such a request is received in 
the regional office with respect to an amendment that has been received 
in such office, unless the Regional Office, ACYF, has secured from the 
title IV-E agency a written agreement to extend that period. In absence 
of request by a title IV-E agency that an amendment of an approved

[[Page 345]]

plan shall be considered as a submission of a new plan, the procedures 
under Sec.  201.6(a) and (b) shall be applicable.
    (8) Effective date. The effective date of a new plan may not be 
earlier than the first day of the calendar quarter in which an 
approvable plan is submitted, and with respect to expenditures for 
assistance under such plan, may not be earlier than the first day on 
which the plan is in operation on a statewide basis or, in the case of a 
Tribal title IV-E agency, in operation in the Tribal title IV-E agency's 
entire service area. The same applies with respect to plan amendments.
    (d) Once the title IV-E plan has been submitted and approved, it 
shall remain in effect until amendments are required. An amendment is 
required if there is any significant and relevant change in the 
information or assurances in the plan, or the organization, policies or 
operations described in the plan.

[77 FR 946, Jan. 6, 2012]



Sec.  1356.21  Foster care maintenance payments program 
implementation requirements.

    (a) Statutory and regulatory requirements of the Federal foster care 
program. To implement the foster care maintenance payments program 
provisions of the title IV-E plan and to be eligible to receive Federal 
financial participation (FFP) for foster care maintenance payments under 
this part, a title IV-E agency must meet the requirements of this 
section, 45 CFR 1356.22, 45 CFR 1356.30, and sections 472, 475(1), 
475(4), 475(5), 475(6), and for a Tribal title IV-E agency section 
479(B)(c)(1)(C)(ii)(II) of the Act.
    (b) Reasonable efforts. The title IV-E agency must make reasonable 
efforts to maintain the family unit and prevent the unnecessary removal 
of a child from his/her home, as long as the child's safety is assured; 
to effect the safe reunification of the child and family (if temporary 
out-of-home placement is necessary to ensure the immediate safety of the 
child); and to make and finalize alternate permanency plans in a timely 
manner when reunification is not appropriate or possible. In order to 
satisfy the ``reasonable efforts'' requirements of section 471(a)(15) 
(as implemented through section 472(a)(2) of the Act), the title IV-E 
agency must meet the requirements of paragraphs (b) and (d) of this 
section. In determining reasonable efforts to be made with respect to a 
child and in making such reasonable efforts, the child's health and 
safety must be the paramount concern.
    (1) Judicial determination of reasonable efforts to prevent a 
child's removal from the home. (i) When a child is removed from his/her 
home, the judicial determination as to whether reasonable efforts were 
made, or were not required to prevent the removal, in accordance with 
paragraph (b)(3) of this section, must be made no later than 60 days 
from the date the child is removed from the home pursuant to paragraph 
(k)(1)(ii) of this section.
    (ii) If the determination concerning reasonable efforts to prevent 
the removal is not made as specified in paragraph (b)(1)(i) of this 
section, the child is not eligible under the title IV-E foster care 
maintenance payments program for the duration of that stay in foster 
care.
    (2) Judicial determination of reasonable efforts to finalize a 
permanency plan. (i) The title IV-E agency must obtain a judicial 
determination that it has made reasonable efforts to finalize the 
permanency plan that is in effect (whether the plan is reunification, 
adoption, legal guardianship, placement with a fit and willing relative, 
or placement in another planned permanent living arrangement) within 
twelve months of the date the child is considered to have entered foster 
care in accordance with the definition at Sec.  1355.20 of this part, 
and at least once every twelve months thereafter while the child is in 
foster care.
    (ii) If such a judicial determination regarding reasonable efforts 
to finalize a permanency plan is not made in accordance with the 
schedule prescribed in paragraph (b)(2)(i) of this section, the child 
becomes ineligible under title IV-E at the end of the month in which the 
judicial determination was required to have been made, and remains 
ineligible until such a determination is made.

[[Page 346]]

    (3) Circumstances in which reasonable efforts are not required to 
prevent a child's removal from home or to reunify the child and family. 
Reasonable efforts to prevent a child's removal from home or to reunify 
the child and family are not required if the title IV-E agency obtains a 
judicial determination that such efforts are not required because:
    (i) A court of competent jurisdiction has determined that the parent 
has subjected the child to aggravated circumstances (as defined in 
State, or for a Tribal title IV-E agency, Tribal law, which definition 
may include but need not be limited to abandonment, torture, chronic 
abuse, and sexual abuse);
    (ii) A court of competent jurisdiction has determined that the 
parent has been convicted of:
    (A) Murder (which would have been an offense under section 1111(a) 
of title 18, United States Code, if the offense had occurred in the 
special maritime or territorial jurisdiction of the United States) of 
another child of the parent;
    (B) Voluntary manslaughter (which would have been an offense under 
section 1112(a) of title 18, United States Code, if the offense had 
occurred in the special maritime or territorial jurisdiction of the 
United States) of another child of the parent;
    (C) Aiding or abetting, attempting, conspiring, or soliciting to 
commit such a murder or such a voluntary manslaughter; or
    (D) A felony assault that results in serious bodily injury to the 
child or another child of the parent; or,
    (iii) The parental rights of the parent with respect to a sibling 
have been terminated involuntarily.
    (4) Concurrent planning. Reasonable efforts to finalize an alternate 
permanency plan may be made concurrently with reasonable efforts to 
reunify the child and family.
    (5) Use of the Federal Parent Locator Service. The State agency may 
seek the services of the Federal Parent Locator Service to search for 
absent parents at any point in order to facilitate a permanency plan.
    (c) Contrary to the welfare determination. Under section 472(a)(2) 
of the Act, a child's removal from the home must have been the result of 
a judicial determination (unless the child was removed pursuant to a 
voluntary placement agreement) to the effect that continuation of 
residence in the home would be contrary to the welfare, or that 
placement would be in the best interest, of the child. The contrary to 
the welfare determination must be made in the first court ruling that 
sanctions (even temporarily) the removal of a child from home. If the 
determination regarding contrary to the welfare is not made in the first 
court ruling pertaining to removal from the home, the child is not 
eligible for title IV-E foster care maintenance payments for the 
duration of that stay in foster care.
    (d) Documentation of judicial determinations. The judicial 
determinations regarding contrary to the welfare, reasonable efforts to 
prevent removal, and reasonable efforts to finalize the permanency plan 
in effect, including judicial determinations that reasonable efforts are 
not required, must be explicitly documented and must be made on a case-
by-case basis and so stated in the court order.
    (1) If the reasonable efforts and contrary to the welfare judicial 
determinations are not included as required in the court orders 
identified in paragraphs (b) and (c) of this section, a transcript of 
the court proceedings is the only other documentation that will be 
accepted to verify that these required determinations have been made.
    (2) Neither affidavits nor nunc pro tunc orders will be accepted as 
verification documentation in support of reasonable efforts and contrary 
to the welfare judicial determinations except for a Tribal title IV-E 
agency for the first 12 months that agency's title IV-E plan is in 
effect as provided for in section 479B(c)(1)(C)(ii)(I) of the Act.
    (3) Court orders that reference State or Tribal law to substantiate 
judicial determinations are not acceptable, even if such law provides 
that a removal must be based on a judicial determination that remaining 
in the home would be contrary to the child's welfare or that removal can 
only be ordered after reasonable efforts have been made.
    (e) Trial home visits. A trial home visit may not exceed six months 
in duration, unless a court orders a longer trial home visit. If a trial 
home visit

[[Page 347]]

extends beyond six months and has not been authorized by the court, or 
exceeds the time period the court has deemed appropriate, and the child 
is subsequently returned to foster care, that placement must then be 
considered a new placement and title IV-E eligibility must be newly 
established. Under these circumstances the judicial determinations 
regarding contrary to the welfare and reasonable efforts to prevent 
removal are required.
    (f) Case review system. In order to satisfy the provisions of 
section 471(a)(16) of the Act regarding a case review system, each title 
IV-E agency's case review system must meet the requirements of sections 
475(5) and 475(6) of the Act.
    (g) Case plan requirements. In order to satisfy the case plan 
requirements of sections 471(a)(16), 475(1) and 475(5)(A) and (D) of the 
Act, the title IV-E agency must promulgate policy materials and 
instructions for use by staff to determine the appropriateness of and 
necessity for the foster care placement of the child. The case plan for 
each child must:
    (1) Be a written document, which is a discrete part of the case 
record, in a format determined by the title IV-E agency, which is 
developed jointly with the parent(s) or guardian of the child in foster 
care; and
    (2) Be developed within a reasonable period, to be established by 
the title IV-E agency, but in no event later than 60 days from the 
child's removal from the home pursuant to paragraph (k) of this section;
    (3) Include a discussion of how the case plan is designed to achieve 
a safe placement for the child in the least restrictive (most family-
like) setting available and in close proximity to the home of the 
parent(s) when the case plan goal is reunification and a discussion of 
how the placement is consistent with the best interests and special 
needs of the child. (FFP is not available when a court orders a 
placement with a specific foster care provider);
    (4) Include a description of the services offered and provided to 
prevent removal of the child from the home and to reunify the family; 
and
    (5) Document the steps to finalize a placement when the case plan 
goal is or becomes adoption or placement in another permanent home in 
accordance with sections 475(1)(E) and (5)(E) of the Act. When the case 
plan goal is adoption, at a minimum, such documentation shall include 
child-specific recruitment efforts such as the use of State, Tribal, 
regional, and national adoption exchanges including electronic exchange 
systems.

(This requirement has been approved by the Office of Management and 
Budget under OMB Control Number 0980-0140. In accordance with the 
Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, 
and a person is not required to respond to, a collection of information 
unless it displays a currently valid OMB control number.)

    (h) Application of the permanency hearing requirements. (1) To meet 
the requirements of the permanency hearing, the title IV-E agency must, 
among other requirements, comply with section 475(5)(C) of the Act.
    (2) In accordance with paragraph (b)(3) of this section, when a 
court determines that reasonable efforts to return the child home are 
not required, a permanency hearing must be held within 30 days of that 
determination, unless the requirements of the permanency hearing are 
fulfilled at the hearing in which the court determines that reasonable 
efforts to reunify the child and family are not required.
    (3) If the title IV-E agency concludes, after considering 
reunification, adoption, legal guardianship, or permanent placement with 
a fit and willing relative, that the most appropriate permanency plan 
for a child is placement in another planned permanent living 
arrangement, the title IV-E agency must document to the court the 
compelling reason for the alternate plan. Examples of a compelling 
reason for establishing such a permanency plan may include:
    (i) The case of an older teen who specifically requests that 
emancipation be established as his/her permanency plan;
    (ii) The case of a parent and child who have a significant bond but 
the parent is unable to care for the child because of an emotional or 
physical disability and the child's foster parents have committed to 
raising him/her to the age of majority and to facilitate visitation with 
the disabled parent; or,

[[Page 348]]

    (iii) the Tribe has identified another planned permanent living 
arrangement for the child.
    (4) When an administrative body, appointed or approved by the court, 
conducts the permanency hearing, the procedural safeguards set forth in 
the definition of permanency hearing must be so extended by the 
administrative body.
    (i) Application of the requirements for filing a petition to 
terminate parental rights at section 475(5)(E) of the Social Security 
Act. (1) Subject to the exceptions in paragraph (i)(2) of this section, 
the title IV-E agency must file a petition (or, if such a petition has 
been filed by another party, seek to be joined as a party to the 
petition) to terminate the parental rights of a parent(s):
    (i) Whose child has been in foster care under the responsibility of 
the title IV-E agency for 15 of the most recent 22 months. The petition 
must be filed by the end of the child's fifteenth month in foster care. 
In calculating when to file a petition for termination of parental 
rights, the title IV-E agency:
    (A) Must calculate the 15 out of the most recent 22 month period 
from the date the child is considered to have entered foster care as 
defined at section 475(5)(F) of the Act and Sec.  1355.20 of this part;
    (B) Must use a cumulative method of calculation when a child 
experiences multiple exits from and entries into foster care during the 
22 month period;
    (C) Must not include trial home visits or runaway episodes in 
calculating 15 months in foster care; and,
    (D) Need only apply section 475(5)(E) of the Act to a child once if 
the title IV-E agency does not file a petition because one of the 
exceptions at paragraph (i)(2) of this section applies;
    (ii) Whose child has been determined by a court of competent 
jurisdiction to be an abandoned infant (as defined under State or for a 
Tribal title IV-E agency, Tribal law). The petition to terminate 
parental rights must be filed within 60 days of the judicial 
determination that the child is an abandoned infant; or,
    (iii) Who has been convicted of one of the felonies listed at 
paragraph (b)(3)(ii) of this section. Under such circumstances, the 
petition to terminate parental rights must be filed within 60 days of a 
judicial determination that reasonable efforts to reunify the child and 
parent are not required.
    (2) The title IV-E agency may elect not to file or join a petition 
to terminate the parental rights of a parent per paragraph (i)(1) of 
this section if:
    (i) At the option of the title IV-E agency, the child is being cared 
for by a relative;
    (ii) The title IV-E agency has documented in the case plan (which 
must be available for court review) a compelling reason for determining 
that filing such a petition would not be in the best interests of the 
individual child. Compelling reasons for not filing a petition to 
terminate parental rights include, but are not limited to:
    (A) Adoption is not the appropriate permanency goal for the child; 
or,
    (B) No grounds to file a petition to terminate parental rights 
exist; or,
    (C) The child is an unaccompanied refugee minor as defined in 45 CFR 
400.111; or
    (D) There are international legal obligations or compelling foreign 
policy reasons that would preclude terminating parental rights; or
    (iii) The title IV-E agency has not provided to the family, 
consistent with the time period in the case plan, services that the 
title IV-E agency deems necessary for the safe return of the child to 
the home, when reasonable efforts to reunify the family are required.
    (3) When the title IV-E agency files or joins a petition to 
terminate parental rights in accordance with paragraph (i)(1) of this 
section, it must concurrently begin to identify, recruit, process, and 
approve a qualified adoptive family for the child.
    (j) Child of a minor parent in foster care. Foster care maintenance 
payments made on behalf of a child placed in a foster family home or 
child care institution, who is the parent of a son or daughter in the 
same home or institution, must include amounts which are necessary to 
cover costs incurred on behalf of the child's son or daughter. Said 
costs must be limited to funds expended on items listed in the 
definition of foster care maintenance payments in Sec.  1355.20 of this 
part.

[[Page 349]]

    (k) Removal from the home of a specified relative. (1) For the 
purposes of meeting the requirements of section 472(a)(1) of the Act, a 
removal from the home must occur pursuant to:
    (i) A voluntary placement agreement entered into by a parent or 
guardian which leads to a physical or constructive removal (i.e., a non-
physical or paper removal of custody) of the child from the home; or
    (ii) A judicial order for a physical or constructive removal of the 
child from a parent or specified relative.
    (2) A removal has not occurred in situations where legal custody is 
removed from the parent or relative and the child remains with the same 
relative in that home under supervision by the title IV-E agency.
    (3) A child is considered constructively removed on the date of the 
first judicial order removing custody, even temporarily, from the 
appropriate specified relative or the date that the voluntary placement 
agreement is signed by all relevant parties.
    (l) Living with a specified relative. For purposes of meeting the 
requirements for living with a specified relative prior to removal from 
the home under section 472(a)(1) of the Act, all of the conditions under 
section 472(a)(3), and for Tribal title IV-E agencies section 
479B(c)(1)(C)(ii)(II) of the Act, one of the two following situations 
must apply:
    (1) The child was living with the parent or specified relative, and 
was AFDC eligible in that home in the month of the voluntary placement 
agreement or initiation of court proceedings; or
    (2) The child had been living with the parent or specified relative 
within six months of the month of the voluntary placement agreement or 
the initiation of court proceedings, and the child would have been AFDC 
eligible in that month if s/he had still been living in that home.
    (m) Review of payments and licensing standards. In meeting the 
requirements of section 471(a)(11) of the Act, the title IV-E agency 
must review at reasonable, specific, time-limited periods to be 
established by the agency:
    (1) The amount of the payments made for foster care maintenance and 
adoption assistance to assure their continued appropriateness; and
    (2) The licensing or approval standards for child care institutions 
and foster family homes.
    (n) Foster care goals. The specific foster care goals required under 
section 471(a)(14) of the Act must be incorporated into State law or 
Tribal law by statute, code, resolution, Tribal proceedings or 
administrative regulation with the force of law.
    (o) Notice and right to be heard. The title IV-E agency must provide 
the foster parent(s) of a child and any preadoptive parent or relative 
providing care for the child with timely notice of and the opportunity 
to be heard in any proceedings held with respect to the child during the 
time the child is in the care of such foster parent, preadoptive parent, 
or relative caregiver. Notice of and opportunity to be heard does not 
include the right to standing as a party to the case.

[65 FR 4088, Jan. 25, 2000, as amended at 66 FR 58677, Nov. 23, 2001; 77 
FR 947, Jan. 6, 2012]



Sec.  1356.22  Implementation requirements for children 
voluntarily placed in foster care.

    (a) As a condition of receipt of Federal financial participation 
(FFP) in foster care maintenance payments for a dependent child removed 
from his home under a voluntary placement agreement, the title IV-E 
agency must meet the requirements of:
    (1) Section 472 of the Act, as amended;
    (2) Sections 422(b)(8) and 475(5) of the Act;
    (3) 45 CFR 1356.21(e), (f), (g), (h), and (i); and
    (4) The requirements of this section.
    (b) Federal financial participation is available only for voluntary 
foster care maintenance expenditures made within the first 180 days of 
the child's placement in foster care unless there has been a judicial 
determination by a court of competent jurisdiction, within the first 180 
days of such placement, to the effect that the continued voluntary 
placement is in the best interests of the child.
    (c) The title IV-E agency must establish and maintain a uniform 
procedure or system, consistent with State or

[[Page 350]]

Tribal law, for revocation by the parent(s) of a voluntary placement 
agreement and return of the child.

[65 FR 4090, Jan. 25, 2000, as amended at 66 FR 58677, Nov. 23, 2001; 77 
FR 949, Jan. 6, 2012]



Sec.  1356.30  Safety requirements for foster care and adoptive home providers.

    (a) The title IV-E agency must provide documentation that criminal 
records checks have been conducted with respect to prospective foster 
and adoptive parents.
    (b) The title IV-E agency may not approve or license any prospective 
foster or adoptive parent, nor may the title IV-E agency claim FFP for 
any foster care maintenance or adoption assistance payment made on 
behalf of a child placed in a foster home operated under the auspices of 
a child placing agency or on behalf of a child placed in an adoptive 
home through a private adoption agency, if the title IV-E agency finds 
that, based on a criminal records check conducted in accordance with 
paragraph (a) of this section, a court of competent jurisdiction has 
determined that the prospective foster or adoptive parent has been 
convicted of a felony involving:
    (1) Child abuse or neglect;
    (2) Spousal abuse;
    (3) A crime against a child or children (including child 
pornography); or,
    (4) A crime involving violence, including rape, sexual assault, or 
homicide, but not including other physical assault or battery.
    (c) The title IV-E agency may not approve or license any prospective 
foster or adoptive parent, nor may the title IV-E agency claim FFP for 
any foster care maintenance or adoption assistance payment made on 
behalf of a child placed in a foster home operated under the auspices of 
a child placing agency or on behalf of a child placed in an adoptive 
home through a private adoption agency, if the title IV-E agency finds, 
based on a criminal records check conducted in accordance with paragraph 
(a) of this section, that a court of competent jurisdiction has 
determined that the prospective foster or adoptive parent has, within 
the last five years, been convicted of a felony involving:
    (1) Physical assault;
    (2) Battery; or,
    (3) A drug-related offense.
    (d) [Reserved]
    (e) In all cases where the State opted out of the criminal records 
check requirement, as permitted prior to the amendments made by section 
152 of Public Law 109-248, the licensing file for that foster or 
adoptive family must contain documentation which verifies that safety 
considerations with respect to the caretaker(s) have been addressed.
    (f) In order for a child care institution to be eligible for title 
IV-E funding, the licensing file for the institution must contain 
documentation which verifies that safety considerations with respect to 
the staff of the institution have been addressed.

[65 FR 4090, Jan. 25, 2000, as amended at 77 FR 949, Jan. 6, 2012]



Sec.  1356.40  Adoption assistance program: Administrative requirements 
to implement section 473 of the Act.

    (a) To implement the adoption assistance program provisions of the 
title IV-E plan and to be eligible for Federal financial participation 
in adoption assistance payments under this part, the title IV-E agency 
must meet the requirements of this section and section 471(a), 
applicable provisions of section 473, and section 475(3) of the Act.
    (b) The adoption assistance agreement for payments pursuant to 
section 473(a)(2) must meet the requirements of section 475(3) of the 
Act and must:
    (1) Be signed and in effect at the time of or prior to the final 
decree of adoption. A copy of the signed agreement must be given to each 
party; and
    (2) Specify its duration; and
    (3) Specify the nature and amount of any payment, services and 
assistance to be provided under such agreement and, for purposes of 
eligibility under title XIX of the Act, specify that the child is 
eligible for Medicaid services; and
    (4) Specify, with respect to agreements entered into on or after 
October 1, 1983, that the agreement shall remain in effect regardless of 
the place of residence of the adoptive parents at any given time.

[[Page 351]]

    (c) There must be no income eligibility requirement (means test) for 
the prospective adoptive parent(s) in determining eligibility for 
adoption assistance payments.
    (d) In the event an adoptive family moves from one place of 
residence to another, the family may apply for social services on behalf 
of the adoptive child in the new place of residence. If a needed 
service(s) specified in the adoption assistance agreement is not 
available in the new place of residence, the title IV-E agency making 
the original adoption assistance payment remains financially responsible 
for providing the specified service(s).
    (e) A title IV-E agency may make an adoption assistance agreement 
with adopting parent(s) who reside in another State or a Tribal service 
area. If so, all provisions of this section apply.
    (f) The title IV-E agency must actively seek ways to promote the 
adoption assistance program.

[48 FR 23116, May 23, 1983, as amended at 53 FR 50220, Dec. 14, 1988; 77 
FR 949, Jan. 6, 2012]



Sec.  1356.41  Nonrecurring expenses of adoption.

    (a) The amount of the payment made for nonrecurring expenses of 
adoption shall be determined through agreement between the adopting 
parent(s) and the title IV-E agency administering the program. The 
agreement must indicate the nature and amount of the nonrecurring 
expenses to be paid.
    (b) The agreement for nonrecurring expenses may be a separate 
document or a part of an agreement for either State, Tribal, or Federal 
adoption assistance payments or services.
    (c) There must be no income eligibility requirement (means test) for 
adopting parents in determining whether payments for nonrecurring 
expenses of adoption shall be made. However, parents cannot be 
reimbursed for out-of-pocket expenses for which they have otherwise been 
reimbursed.
    (d) For purposes of payment of nonrecurring expenses of adoption, 
the title IV-E agency must determine that the child is a ``child with 
special needs'' as defined in section 473(c) of the Act, and that the 
child has been placed for adoption in accordance with applicable laws; 
the child need not meet the categorical eligibility requirements at 
section 473(a)(2).
    (e)(1) The title IV-E agency must notify all appropriate courts and 
all public and licensed private nonprofit adoption agencies of the 
availability of funds for the nonrecurring expenses of adoption of 
children with special needs as well as where and how interested persons 
may apply for these funds. This information should routinely be made 
available to all persons who inquire about adoption services.
    (2) The agreement for nonrecurring expenses must be signed at the 
time of or prior to the final decree of adoption. Claims must be filed 
with the title IV-E agency within two years of the date of the final 
decree of adoption.
    (f)(1) Funds expended by the title IV-E agency under an adoption 
assistance agreement, with respect to nonrecurring adoption expenses 
incurred by or on behalf of parents who adopt a child with special 
needs, shall be considered an administrative expenditure of the title 
IV-E Adoption Assistance Program. Federal reimbursement is available at 
a 50 percent matching rate, for title IV-E agency expenditures up to 
$2,000, for any adoptive placement.
    (2) Title IV-E agencies may set a reasonable lower maximum which 
must be based on reasonable charges, consistent with State, Tribal, and 
local practices, for special needs adoptions within the State or Tribal 
service area. The basis for setting a lower maximum must be documented 
and available for public inspection.
    (3) In cases where siblings are placed and adopted, either 
separately or as a unit, each child is treated as an individual with 
separate reimbursement for nonrecurring expenses up to the maximum 
amount allowable for each child.
    (g) Federal financial participation for nonrecurring expenses of 
adoption is limited to costs incurred by or on behalf of adoptive 
parents that are not otherwise reimbursed from other sources. Payments 
for nonrecurring expenses shall be made either directly by the title IV-
E agency or through another public or licensed nonprofit private agency.

[[Page 352]]

    (h) When the adoption of the child involves a placement outside the 
State or Tribal service area, the title IV-E agency that enters into an 
adoption assistance agreement under section 473(a)(1)(B)(ii) of the Act 
or under a State or Tribal subsidy program will be responsible for 
paying the nonrecurring adoption expenses of the child. In cases where 
there is placement outside the State or Tribal service area but no 
agreement for other Federal, Tribal, or State adoption assistance, the 
title IV-E agency in the jurisdiction in which the final adoption decree 
is issued will be responsible for reimbursement of nonrecurring expenses 
if the child meets the requirements of section 473(c).
    (i) The term ``nonrecurring adoption expenses'' means reasonable and 
necessary adoption fees, court costs, attorney fees and other expenses 
which are directly related to the legal adoption of a child with special 
needs, which are not incurred in violation of State, Tribal or Federal 
law, and which have not been reimbursed from other sources or other 
funds. ``Other expenses which are directly related to the legal adoption 
of a child with special needs'' means the costs of the adoption incurred 
by or on behalf of the parents and for which parents carry the ultimate 
liability for payment. Such costs may include the adoption study, 
including health and psychological examination, supervision of the 
placement prior to adoption, transportation and the reasonable costs of 
lodging and food for the child and/or the adoptive parents when 
necessary to complete the placement or adoption process.
    (j) Failure to honor all eligible claims will be considered non-
compliance by the title IV-E agency with title IV-E of the Act.
    (k) A title IV-E expenditure is considered made in the quarter 
during which the payment was made by a title IV-E agency to a private 
nonprofit agency, individual or vendor payee.

[53 FR 50220, Dec. 14, 1988, as amended at 77 FR 949, Jan. 6, 2012]



Sec.  1356.50  Withholding of funds for non-compliance with 
the approved title IV-E plan.

    (a) To be in compliance with the title IV-E plan requirements, a 
title IV-E agency must meet the requirements of the Act and 45 CFR 
1356.20, 1356.21, 1356.30, and 1356.40 of this part.
    (b) To be in compliance with the title IV-E plan requirements, a 
title IV-E agency that chooses to claim FFP for voluntary placements 
must meet the requirements of the Act, 45 CFR 1356.22 and paragraph (a) 
of this section; and
    (c) For purposes of this section, the procedures in Sec.  1355.39 of 
this chapter apply.

[48 FR 23117, May 23, 1983, as amended at 65 FR 4091, Jan. 25, 2000; 66 
FR 58677, Nov. 23, 2001; 77 FR 950, Jan. 6, 2012]



Sec.  1356.60  Fiscal requirements (title IV-E).

    (a) Federal matching funds for foster care maintenance and adoption 
assistance payments. (1) Effective October 1, 1980, Federal financial 
participation (FFP) is available to States under an approved title IV-E 
State plan for allowable costs in expenditures for:
    (1) Federal financial participation (FFP) is available to title IV-E 
agencies under an approved title IV-E plan for allowable costs in 
expenditures for:
    (i) Foster care maintenance payments as defined in section 475(4) of 
the Act, made in accordance with 45 CFR 1356.20 through 1356.30, section 
472 of the Act, and for a Tribal title IV-E agency, section 479B of the 
Act;
    (ii) Adoption assistance payments made in accordance with 45 CFR 
1356.20 and 1356.40, applicable provisions of section 473, section 
475(3) and, for a Tribal title IV-E agency, section 479B of the Act.
    (2) Federal financial participation is available at the rate of the 
Federal medical assistance percentage as defined in section 1905(b), 
474(a)(1) and (2) and 479B(d) of the Act as applicable, definitions, and 
pertinent regulations as promulgated by the Secretary, or his designee.
    (b) Federal matching funds for title IV-E agency training for foster 
care and adoption assistance under title IV-E. (1)

[[Page 353]]

Federal financial participation is available at the rate of seventy-five 
percent (75%) in the costs of:
    (i) Training personnel employed or preparing for employment by the 
title IV-E agency administering the plan, and;
    (ii) Providing short-term training (including travel and per diem 
expenses) to current or prospective foster or adoptive parents and the 
members of the state licensed or approved child care institutions 
providing care to foster and adopted children receiving title IV-E 
assistance.
    (2) All training activities and costs funded under title IV-E shall 
be included in the agency's training plan for title IV-B.
    (3) Short and long term training at educational institutions and in-
service training may be provided in accordance with the provisions of 
Sec. Sec.  235.63 through 235.66(a) of this title.
    (c) Federal matching funds for other title IV-E agency 
administrative expenditures for foster care and adoption assistance 
under title IV-E. Federal financial participation is available at the 
rate of fifty percent (50%) for administrative expenditures necessary 
for the proper and efficient administration of the title IV-E plan. The 
State's cost allocation plan shall identify which costs are allocated 
and claimed under this program.
    (1) The determination and redetermination of eligibility, fair 
hearings and appeals, rate setting and other costs directly related only 
to the administration of the foster care program under this part are 
deemed allowable administrative costs under this paragraph. They may not 
be claimed under any other section or Federal program.
    (2) The following are examples of allowable administrative costs 
necessary for the administration of the foster care program:
    (i) Referral to services;
    (ii) Preparation for and participation in judicial determinations;
    (iii) Placement of the child;
    (iv) Development of the case plan;
    (v) Case reviews;
    (vi) Case management and supervision;
    (vii) Recruitment and licensing of foster homes and institutions;
    (viii) Rate setting; and
    (ix) A proportionate share of related agency overhead.
    (x) Costs related to data collection and reporting.
    (3) Allowable administrative costs do not include the costs of 
social services provided to the child, the child's family or foster 
family which provide counseling or treatment to ameliorate or remedy 
personal problems, behaviors or home conditions.
    (d) Cost of the data collection system. (1) Costs related to data 
collection system initiation, implementation and operation may be 
charged as an administrative cost of title IV-E at the 50 percent 
matching rate subject to the restrictions in paragraph (d)(2) of this 
section
    (2) For information systems used for purposes other than those 
specified by section 479 of the Act, costs must be allocated and must 
bear the same ratio as the foster care and adoption population bears to 
the total population contained in the information system as verified by 
reports from all other programs included in the system.
    (e) Federal matching funds for CCWIS and Non-CCWIS. Federal matching 
funds are available at the rate of fifty percent (50%). Requirements for 
the cost allocation of CCWIS and non-CCWIS project costs are at Sec.  
1355.57 of this chapter.

[47 FR 30925, July 15, 1982, as amended at 48 FR 23117, May 23, 1983; 53 
FR 50221, Dec. 14, 1988; 58 FR 67938, 67947, Dec. 22, 1993; 65 FR 4091, 
Jan. 25, 2000; 66 FR 58677, Nov. 23, 2001; 77 FR 950, Jan. 6, 2012; 81 
FR 35482, June 2, 2016]



Sec. Sec.  1356.65-1356.66  [Reserved]



Sec.  1356.67  Procedures for the transfer of placement and care 
responsibility of a child from a State to a Tribal title IV-E agency 
or an Indian Tribe with a title IV-E agreement.

    (a) Each State with a title IV-E plan approved under section 471 of 
the Act must establish and maintain procedures, in consultation with 
Indian Tribes, for the transfer of responsibility for the placement and 
care of a child under a State title IV-E plan to a Tribal title IV-E 
agency or an Indian Tribe with a title IV-E agreement in a

[[Page 354]]

way that does not affect a child's eligibility for, or payment of, title 
IV-E and the child's eligibility for medical assistance under title XIX 
of the Act.
    (b) The procedures must, at a minimum, provide for the State to:
    (1) Determine, if the eligibility determination is not already 
completed, the child's eligibility under section 472 or 473 of the Act 
at the time of the transfer of placement and care responsibility of a 
child to a Tribal title IV-E agency or an Indian Tribe with a title IV-E 
agreement.
    (2) Provide essential documents and information necessary to 
continue a child's eligibility under title IV-E and Medicaid programs 
under title XIX to the Tribal title IV-E agency, including, but not 
limited to providing:
    (i) All judicial determinations to the effect that continuation in 
the home from which the child was removed would be contrary to the 
welfare of the child and that reasonable efforts described in section 
471(a)(15) of the Act have been made;
    (ii) Other documentation the State has that relates to the child's 
title IV-E eligibility under sections 472 and 473 of the Act;
    (iii) Information and documentation available to the agency 
regarding the child's eligibility or potential eligibility for other 
Federal benefits;
    (iv) The case plan developed pursuant to section 475(1) of the Act, 
including health and education records of the child pursuant to section 
475(1)(C) of the Act; and
    (v) Information and documentation of the child's placement settings, 
including a copy of the most recent provider's license or approval.

[77 FR 950, Jan. 6, 2012]



Sec.  1356.68  Tribal title IV-E agency requirements for in-kind 
administrative and training contributions from third-party sources.

    (a) Option to claim in-kind expenditures from third-party sources 
for non-Federal share of administrative and training costs. A Tribal 
title IV-E agency may claim allowable in-kind expenditures from third-
party sources for the purpose of determining the non-Federal share of 
administrative or training costs subject to paragraphs (b) through (d) 
of this section.
    (b) In-kind expenditures for fiscal years 2010 and 2011--(1) 
Administrative costs. A Tribal title IV-E agency may claim allowable in-
kind expenditures from third-party sources of up to 25 percent of the 
total administrative funds expended during a fiscal quarter pursuant to 
section 474(a)(3)(C), (D) or (E) of the Act.
    (2) Training costs. A Tribal title IV-E agency may claim in-kind 
training expenditures of up to 12 percent of the total training funds 
expended during a fiscal year quarter pursuant to section 474(a)(3)(A) 
and (B) of the Act, but only from the following sources:
    (i) A State or local government;
    (ii) An Indian Tribe, Tribal organization, or Tribal consortium 
other than the Indian Tribe, organization, or consortium submitting the 
title IV-E plan;
    (iii) A public institution of higher education;
    (iv) A Tribal College or University (as defined in section 316 of 
the Higher Education Act of 1965 (20 U.S.C. 1059c)); and
    (v) A private charitable organization.
    (c) In-kind expenditures for fiscal years 2012 and thereafter--(1) 
Administrative costs. A Tribal title IV-E agency may claim in-kind 
expenditures from third-party sources of up to 50 percent of the total 
administrative funds expended during a fiscal quarter pursuant to 
section 474(a)(3)(C), (D) or (E) of the Act.
    (2) Training costs. A Tribal title IV-E agency may claim in-kind 
training expenditures of up to 25 percent (or 30 percent consistent with 
section 203(b) of Pub. L. 110-351) of the total training funds expended 
during each quarter of fiscal year 2012 pursuant to section 474(a)(3)(A) 
and (B) of the Act. For fiscal year 2013 and thereafter, a Tribal title 
IV-E agency may claim in-kind training expenditures of up to 25 percent 
of the total training funds expended during a fiscal quarter pursuant to 
section 474(a)(3)(A) and (B) of the Act.
    (3) Third-party sources. A Tribal title IV-E agency may claim in-
kind training expenditures for training funds from any allowable third-
party source.

[77 FR 950, Jan. 6, 2012]

[[Page 355]]



Sec. Sec.  1356.69-1356.70  [Reserved]



Sec.  1356.71  Federal review of the eligibility of children in foster care 
and the eligibility of foster care providers in title IV-E programs.

    (a) Purpose, scope and overview of the process. (1) This section 
sets forth requirements governing Federal reviews of compliance with the 
title IV-E eligibility provisions as they apply to children and foster 
care providers under paragraphs (a) and (b) of section 472 of the Act.
    (2) The requirements of this section apply to title IV-E agencies 
that receive Federal payments for foster care under title IV-E of the 
Act.
    (3) The review process begins with a primary review of foster care 
cases for the title IV-E eligibility requirements.
    (i) Title IV-E agencies in substantial compliance. Title IV-E 
agencies determined to be in substantial compliance based on the primary 
review will be subject to another review in three years.
    (ii) Title IV-E agencies not in substantial compliance. Title IV-E 
agencies that are determined not to be in substantial compliance based 
on the primary review will develop and implement a program improvement 
plan designed to correct the areas of noncompliance. A secondary review 
will be conducted after the completion of the program improvement plan. 
A subsequent primary review will be held three years from the date of 
the secondary review.
    (b) Composition of review team and preliminary activities preceding 
an on-site review. (1) The review team must be composed of 
representatives of the title IV-E agency, and ACF's Regional and Central 
Offices.
    (2) The title IV-E agency must provide ACF with the complete payment 
history for each of the sample and oversample cases prior to the on-site 
review.
    (c) Sampling guidance and conduct of review. (1) The list of 
sampling units in the target population (i.e., the sampling frame) will 
be drawn by ACF statistical staff from the Adoption and Foster Care 
Analysis and Reporting System (AFCARS) data which are transmitted by the 
title IV-E agency to ACF. The sampling frame will consist of cases of 
children who were eligible for foster care maintenance payments during 
the reporting period reflected in a title IV-E agency's most recent 
AFCARS data submission. For the initial primary review, if these data 
are not available or are deficient, an alternative sampling frame, 
consistent with one AFCARS six-month reporting period, will be selected 
by ACF in conjunction with the title IV-E agency.
    (2) A sample of 80 cases (plus a 10 percent oversample of eight 
cases) from the title IV-E foster care program will be selected for the 
primary review utilizing probability sampling methodologies. Usually, 
the chosen methodology will be simple random sampling, but other 
probability samples may be utilized, when necessary and appropriate.
    (3) Cases from the oversample will be substituted and reviewed for 
each of the original sample of 80 cases which is found to be in error.
    (4) At the completion of the primary review, the review team will 
determine the number of ineligible cases. When the total number of 
ineligible cases does not exceed eight, ACF can conclude with a 
probability of 88 percent that in a population of 1000 or more cases the 
population ineligibility case error rate is less than 15 percent and the 
title IV-E agency will be considered in substantial compliance.For 
primary reviews held subsequent to the initial primary reviews, the 
acceptable population ineligibility case error rate threshold will be 
reduced from less than 15 percent (eight or fewer ineligible cases) to 
less than 10 percent (four or fewer ineligible cases)). A title IV-E 
agency which meets this standard is considered to be in ``substantial 
compliance'' (see paragraph (h) of this section). A disallowance will be 
assessed for the ineligible cases for the period of time the cases are 
ineligible.
    (5) A title IV-E agency which has been determined to be in 
``noncompliance'' (i.e., not in substantial compliance) will be required 
to develop a program improvement plan according to the specifications 
discussed in paragraph (i) of this section, as well as undergo a 
secondary review. For the secondary review, a sample of 150 cases

[[Page 356]]

(plus a 10 percent oversample of 15 cases) will be drawn from the most 
recent AFCARS submission. Usually, the chosen methodology will be simple 
random sampling, but other probability samples may be utilized, when 
necessary and appropriate. Cases from the oversample will be substituted 
and reviewed for each of the original sample of 150 cases which is found 
to be in error.
    (6) At the completion of the secondary review, the review team will 
calculate both the sample case ineligibility and dollar error rates for 
the cases determined ineligible during the review. An extrapolated 
disallowance equal to the lower limit of a 90 percent confidence 
interval for the population total dollars in error for the amount of 
time corresponding to the AFCARS reporting period will be assessed if 
both the child/provider (case) ineligibility and dollar error rates 
exceed 10 percent. If neither, or only one, of the error rates exceeds 
10 percent, a disallowance will be assessed for the ineligible cases for 
the period of time the cases are ineligible.
    (d) Requirements subject to review. Title IV-E agencies will be 
reviewed against the requirements of title IV-E of the Act regarding:
    (1) The eligibility of the children on whose behalf the foster care 
maintenance payments are made (section 472(a)(1)-(4) of the Act) to 
include:
    (i) Judicial determinations regarding ``reasonable efforts'' and 
``contrary to the welfare'' in accordance with Sec.  1356.21(b) and (c), 
respectively;
    (ii) Voluntary placement agreements in accordance with Sec.  
1356.22;
    (iii) Responsibility for placement and care vested with the title 
IV-E or other public agency per section 472(a)(2)(B) of the Act;
    (iv) Placement in a licensed foster family home or child care 
institution; and,
    (v) Eligibility for AFDC under such State plan as it was in effect 
on July 16, 1996 per section 472(a)(3) or 479B(c)(1)(C)(ii)(II) of the 
Act, as appropriate.
    (2) Allowable payments made to foster care providers who comport 
with sections 471(a)(10), 471(a)(20), 472(b) and (c), and 479B(c)(2) of 
the Act and Sec.  1356.30.
    (e) Review instrument. A title IV-E foster care eligibility review 
checklist will be used when conducting the eligibility review.
    (f) Eligibility determination--child. The case record of the child 
must contain sufficient documentation to verify a child's eligibility in 
accordance with paragraph (d)(1) of this section, in order to 
substantiate payments made on the child's behalf.
    (g) Eligibility determination--provider. (1) For each case being 
reviewed, the title IV-E agency must make available a licensing file 
which contains the licensing history, including a copy of the 
certificate of licensure/approval or letter of approval, for each of the 
providers in the following categories:
    (i) Public child care institutions with 25 children or less in 
residence;
    (ii) Private child care institutions;
    (iii) Group homes; and
    (iv) Foster family homes, including relative homes.
    (2) The licensing file must contain documentation that the title IV-
E agency has complied with the safety requirements for foster and 
adoptive placements in accordance with Sec.  1356.30.
    (3) If the licensing file does not contain sufficient information to 
support a child's placement in a licensed facility, the title IV-E 
agency may provide supplemental information from other sources (e.g., a 
computerized database).
    (h) Standards of compliance. (1) Disallowances will be taken, and 
plans for program improvement required, based on the extent to which a 
title IV-E agency is not in substantial compliance with recipient or 
provider eligibility provisions of title IV-E, or applicable regulations 
in 45 CFR parts 1355 and 1356.
    (2) Substantial compliance and noncompliance are defined as follows:
    (i) Substantial compliance--For the primary review (of the sample of 
80 cases), no more than eight of the title IV-E cases reviewed may be 
determined to be ineligible. (This critical number of allowable 
``errors,'' i.e., ineligible cases, is reduced to four errors or less in 
primary reviews held subsequent to the initial primary review). For the

[[Page 357]]

secondary review (if required), substantial compliance means either the 
case ineligibility or dollar error rate does not exceed 10 percent.
    (ii) Noncompliance--means not in substantial compliance. For the 
primary review (of the sample of 80 cases), nine or more of the title 
IV-E cases reviewed must be determined to be ineligible. (This critical 
number of allowable ``errors,'' i.e., ineligible cases, is reduced to 
five or more in primary reviews subsequent to the initial primary 
review). For the secondary review (if required), noncompliance means 
both the case ineligibility and dollar error rates exceed 10 percent.
    (3) ACF will notify the title IV-E agency in writing within 30 
calendar days after the completion of the review of whether the title 
IV-E agency is, or is not, operating in substantial compliance.
    (4) Title IV-E agencies which are determined to be in substantial 
compliance must undergo a subsequent review after a minimum of three 
years.
    (i) Program improvement plans. (1) Title IV-E agencies which are 
determined to be in noncompliance with recipient or provider eligibility 
provisions of title IV-E, or applicable regulations in 45 CFR Parts 1355 
and 1356, will develop a program improvement plan designed to correct 
the areas determined not to be in substantial compliance. The program 
improvement plan will:
    (i) Be developed jointly by title IV-E agency and Federal staff;
    (ii) Identify the areas in which the title IV-E agency's program is 
not in substantial compliance;
    (iii) Not extend beyond one year. A title IV-E agency will have a 
maximum of one year in which to implement and complete the provisions of 
the program improvement plan unless State/Tribal legislative action is 
required. In such instances, an extension may be granted with the title 
IV-E agency and ACF negotiating the terms and length of such extension 
that shall not exceed the last day of the first legislative session 
after the date of the program improvement plan; and
    (iv) Include:
    (A) Specific goals;
    (B) The action steps required to correct each identified weakness or 
deficiency; and,
    (C) a date by which each of the action steps is to be completed.
    (2) Title IV-E agencies determined not to be in substantial 
compliance as a result of a primary review must submit the program 
improvement plan to ACF for approval within 90 calendar days from the 
date the title IV-E agency receives written notification that it is not 
in substantial compliance. This deadline may be extended an additional 
30 calendar days when a title IV-E agency submits additional 
documentation to ACF in support of cases determined to be ineligible as 
a result of the on-site eligibility review.
    (3) The ACF Regional Office will intermittently review, in 
conjunction with the title IV-E agency, the title IV-E agency's progress 
in completing the prescribed action steps in the program improvement 
plan.
    (4) If a title IV-E agency does not submit an approvable program 
improvement plan in accordance with the provisions of paragraphs (i)(1) 
and (2) of this section, ACF will move to a secondary review in 
accordance with paragraph (c) of this section.
    (j) Disallowance of funds. The amount of funds to be disallowed will 
be determined by the extent to which a title IV-E agency is not in 
substantial compliance with recipient or provider eligibility provisions 
of title IV-E, or applicable regulations in 45 CFR parts 1355 and 1356.
    (1) Title IV-E agencies which are found to be in substantial 
compliance during the primary or secondary review will have 
disallowances (if any) determined on the basis of individual cases 
reviewed and found to be in error. The amount of disallowance will be 
computed on the basis of payments associated with ineligible cases for 
the entire period of time that each case has been ineligible.
    (2) Title IV-E agencies which are found to be in noncompliance 
during the primary review will have disallowances determined on the 
basis of individual cases reviewed and found to be in error, and must 
implement a program improvement plan in accordance with the provisions 
contained within

[[Page 358]]

it. A secondary review will be conducted no later than during the AFCARS 
reporting period which immediately follows the program improvement plan 
completion date on a sample of 150 cases drawn from the title IV-E 
agency's most recent AFCARS data. If both the case ineligibility and 
dollar error rates exceed 10 percent, the title IV-E agency is not in 
compliance and an additional disallowance will be determined based on 
extrapolation from the sample to the universe of claims paid for the 
duration of the AFCARS reporting period (i.e., all title IV-E funds 
expended for a case during the quarter(s) that case is ineligible, 
including administrative costs). If either the case ineligibility or 
dollar rate does not exceed 10 percent, the amount of disallowance will 
be computed on the basis of payments associated with ineligible cases 
for the entire period of time the case has been determined to be 
ineligible.
    (3) The title IV-E agency will be liable for interest on the amount 
of funds disallowed by the Department, in accordance with the provisions 
of 45 CFR 30.18.
    (4) Title IV-E agencies may appeal any disallowance actions taken by 
ACF to the HHS Departmental Appeals Board in accordance with regulations 
at 45 CFR part 16.

[65 FR 4091, Jan. 25, 2000, as amended at 66 FR 58677, Nov. 23, 2001; 77 
FR 951, Jan. 6, 2012]



Sec.  1356.80  Scope of the National Youth in Transition Database.

    The requirements of the National Youth in Transition Database (NYTD) 
Sec. Sec.  1356.81 through 1356.86 of this part apply to the agency in 
any State, the District of Columbia, or Territory, that administers, or 
supervises the administration of the Chafee Foster Care Independence 
Program (CFCIP) under section 477 of the Social Security Act (the Act).

[73 FR 10365, Feb. 26, 2008]



Sec.  1356.81  Reporting population.

    The reporting population is comprised of all youth in the following 
categories:
    (a) Served population. Each youth who receives an independent living 
service paid for or provided by the State agency during the reporting 
period.
    (b) Baseline population. Each youth who is in foster care as defined 
in 45 CFR 1355.20 and reaches his or her 17th birthday during Federal 
fiscal year (FFY) 2011, and such youth who reach a 17th birthday during 
every third year thereafter.
    (c) Follow-up population. Each youth who reaches his or her 19th or 
21st birthday in a Federal fiscal year and had participated in data 
collection as part of the baseline population, as specified in section 
1356.82(a)(2) of this part. A youth has participated in the outcomes 
data collection if the State agency reports to ACF a valid response 
(i.e., a response option other than ``declined'' and ``not applicable'') 
to any of the outcomes-related elements described in section 
1356.83(g)(37) through (g)(58) of this part.

[73 FR 10365, Feb. 26, 2008]



Sec.  1356.82  Data collection requirements.

    (a) The State agency must collect applicable information as 
specified in section 1356.83 of this part on the reporting population 
defined in section 1356.81 of this part in accordance with the 
following:
    (1) For each youth in the served population, the State agency must 
collect information for the data elements specified in section 
1356.83(b) and 1356.83(c) of this part on an ongoing basis, for as long 
as the youth receives services.
    (2) For each youth in the baseline population, the State agency must 
collect information for the data elements specified in section 
1356.83(b) and 1356.83(d) of this part. The State agency must collect 
this information on a new baseline population every three years.
    (i) For each youth in foster care who turns age 17 in FFY 2011, the 
State agency must collect this information within 45 days following the 
youth's 17th birthday, but not before that birthday.
    (ii) Every third Federal fiscal year thereafter, the State agency 
must collect this information on each youth in foster care who turns age 
17 during the year within 45 days following the youth's 17th birthday, 
but not before that birthday.

[[Page 359]]

    (iii) The State agency must collect this information using the 
survey questions in appendix B of this part entitled ``Information to 
collect from all youth surveyed for outcomes, whether in foster care or 
not.''
    (3) For each youth in the follow-up population, the State agency 
must collect information on the data elements specified in sections 
1356.83(b) and 1356.83(e) of this part within the reporting period of 
the youth's 19th and 21st birthday. The State agency must collect the 
information using the appropriate survey questions in appendix B of this 
part, depending upon whether the youth is in foster care.
    (b) The State agency may select a sample of the 17-year-olds in the 
baseline population to follow over time consistent with the sampling 
requirements described in section 1356.84 of this part to satisfy the 
data collection requirements in paragraph (a)(3) of this section for the 
follow-up population. A State that samples must identify the youth at 
age 19 who participated in the outcomes data collection as part of the 
baseline population at age 17 who are not in the sample in accordance 
with 45 CFR 1356.83(e).

[73 FR 10365, Feb. 26, 2008]



Sec.  1356.83  Reporting requirements and data elements.

    (a) Reporting periods and deadlines. The six-month reporting periods 
are from October 1 to March 31 and April 1 to September 30. The State 
agency must submit data files that include the information specified in 
this section to ACF on a semi-annual basis, within 45 days of the end of 
the reporting period (i.e., by May 15 and November 14).
    (b) Data elements for all youth. The State agency must report the 
data elements described in paragraphs (g)(1) through (g)(13) of this 
section for each youth in the entire reporting population defined in 
section 1356.81 of this part.
    (c) Data elements for served youth. The State agency must report the 
data elements described in paragraphs (g)(14) through (g)(33) of this 
section for each youth in the served population defined in section 
1356.81(a) of this part.
    (d) Data elements for baseline youth. The State agency must report 
the data elements described in paragraphs (g)(34) through (g)(58) of 
this section for each youth in the baseline population defined in 
section 1356.81(b) of this part.
    (e) Data elements for follow-up youth. The State agency must report 
the data elements described in paragraphs (g)(34) through (g)(58) of 
this section for each youth in the follow-up population defined in 
section 1356.81(c) of this part or alternatively, for each youth 
selected in accordance with the sampling procedures in section 1356.84 
of this part. A State that samples must identify in the outcomes 
reporting status element described in paragraph (g)(34), the 19-year-old 
youth who participated in the outcomes data collection as a part of the 
baseline population at age 17, who are not in the sample.
    (f) Single youth record. The State agency must report all applicable 
data elements for an individual youth in one record per reporting 
period.
    (g) Data element descriptions. For each element described in 
paragraphs (g)(1) through (58) of this section, the State agency must 
indicate the applicable response as instructed.
    (1) State. State means the State responsible for reporting on the 
youth. Indicate the first two digits of the State's Federal Information 
Processing Standard (FIPS) code for the State submitting the report to 
ACF.
    (2) Report date. The report date corresponds with the end of the 
current reporting period. Indicate the last month and the year of the 
reporting period.
    (3) Record number. The record number is the encrypted, unique person 
identification number for the youth. The State agency must apply and 
retain the same encryption routine or method for the person 
identification number across all reporting periods. The record number 
must be encrypted in accordance with ACF standards. Indicate the record 
number for the youth.
    (i) If the youth is in foster care as defined in 45 CFR 1355.20 or 
was during the current or previous reporting period, the State agency 
must use and report to the NYTD the same person identification number 
for the youth the State agency reports to AFCARS. The person 
identification number must

[[Page 360]]

remain the same for the youth wherever the youth is living and in any 
subsequent NYTD reports.
    (ii) If the youth was never in the State's foster care system as 
defined in 45 CFR 1355.20, the State agency must assign a person 
identification number that must remain the same for the youth wherever 
the youth is living and in any subsequent reports to NYTD.
    (4) Date of birth. The youth's date of birth. Indicate the year, 
month, and day of the youth's birth.
    (5) Sex. The youth's sex. Indicate whether the youth is male or 
female as appropriate.
    (6) Race: American Indian or Alaska Native. In general, a youth's 
race is determined by the youth or the youth's parent(s). An American 
Indian or Alaska Native youth has origins in any of the original peoples 
of North or South America (including Central America), and maintains 
tribal affiliation or community attachment. Indicate whether this racial 
category applies for the youth, with a ``yes'' or ``no.''
    (7) Race: Asian. In general, a youth's race is determined by the 
youth or the youth's parent(s). An Asian youth has origins in any of the 
original peoples of the Far East, Southeast Asia, or the Indian 
subcontinent including, for example, Cambodia, China, India, Japan, 
Korea, Malaysia, Pakistan, the Philippine Islands, Thailand, and 
Vietnam. Indicate whether this racial category applies for the youth, 
with a ``yes'' or ``no.''
    (8) Race: Black or African American. In general, a youth's race is 
determined by the youth or the youth's parent(s). A Black or African 
American youth has origins in any of the black racial groups of Africa. 
Indicate whether this racial category applies for the youth, with a 
``yes'' or ``no.''
    (9) Race: Native Hawaiian or Other Pacific Islander. In general, a 
youth's race is determined by the youth or the youth's parent(s). A 
Native Hawaiian or Other Pacific Islander youth has origins in any of 
the original peoples of Hawaii, Guam, Samoa, or other Pacific Islands. 
Indicate whether this racial category applies for the youth, with a 
``yes'' or ``no.''
    (10) Race: White. In general, a youth's race is determined by the 
youth or the youth's parent(s). A White youth has origins in any of the 
original peoples of Europe, the Middle East, or North Africa. Indicate 
whether this racial category applies for the youth, with a ``yes'' or 
``no.''
    (11) Race: unknown. The race, or at least one race of the youth is 
unknown, or the youth and/or parent is not able to communicate the 
youth's race. Indicate whether this category applies for the youth, with 
a ``yes'' or ``no.''
    (12) Race: declined. The youth or parent has declined to identify a 
race. Indicate whether this category applies for the youth, with a 
``yes'' or ``no.''
    (13) Hispanic or Latino ethnicity. In general, a youth's ethnicity 
is determined by the youth or the youth's parent(s). A youth is of 
Hispanic or Latino ethnicity if the youth is a person of Cuban, Mexican, 
Puerto Rican, South or Central American, or other Spanish culture or 
origin, regardless of race. Indicate which category applies, with 
``yes,'' ``no,'' ``unknown'' or ``declined,'' as appropriate. 
``Unknown'' means that the youth and/or parent is unable to communicate 
the youth's ethnicity. ``Declined'' means that the youth or parent has 
declined to identify the youth's Hispanic or Latino ethnicity.
    (14) Foster care status--services. The youth receiving services is 
or was in foster care during the reporting period if the youth is or was 
in the placement and care responsibility of the State title IV-B/IV-E 
agency in accordance with the definition of foster care in 45 CFR 
1355.20. Indicate whether the youth is or was in foster care at any 
point during the reporting period, with a ``yes'' or ``no'' as 
appropriate. If the youth is not in the served population this element 
must be left blank.
    (15) Local agency. The local agency is the county or equivalent 
jurisdictional unit that has primary responsibility for placement and 
care of a youth who is in foster care consistent with the definition in 
45 CFR 1355.20, or that has primary responsibility for providing 
services to a youth who is not in foster care. Indicate the five-digit 
Federal Information Processing Standard (FIPS) code(s) that corresponds 
to the identity of the county or equivalent unit jurisdiction(s) that 
meets these criteria during the reporting period. If a youth

[[Page 361]]

who is not in foster care is provided services by a centralized unit 
only, rather than a county agency, indicate ``centralized unit.'' If the 
youth is not in the served population this element must be left blank.
    (16) Federally recognized tribe. The youth is enrolled in or 
eligible for membership in a federally recognized tribe. The term 
``federally recognized tribe'' means any Indian 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 (43 
U.S.C 1601 et seq.), that is recognized as eligible for the special 
programs and services provided by the United States to Indians because 
of their status as Indians pursuant to the Indian Self-Determination and 
Educational Assistance Act (25 U.S.C. 450 et seq.). Indicate ``yes'' or 
``no'' as appropriate. If the youth is not in the served population this 
element must be left blank.
    (17) Adjudicated delinquent. Adjudicated delinquent means that a 
State or Federal court of competent jurisdiction has adjudicated the 
youth as a delinquent. Indicate ``yes,'' or ``no'' as appropriate. If 
the youth is not in the served population this element must be left 
blank.
    (18) Educational level. Educational level means the highest 
educational level completed by the youth. For example, for a youth 
currently in 11th grade, ``10th grade'' is the highest educational level 
completed. Post-secondary education or training refers to any post-
secondary education or training, other than an education pursued at a 
college or university. College refers to completing at least a semester 
of study at a college or university. Indicate the highest educational 
level completed by the youth during the reporting period. If the youth 
is not in the served population this element must be left blank.
    (19) Special education. The term ``special education,'' means 
specifically designed instruction, at no cost to parents, to meet the 
unique needs of a child with a disability. Indicate whether the youth 
has received special education instruction during the reporting period 
with a ``yes'' or ``no'' as appropriate. If the youth is not in the 
served population this element must be left blank.
    (20) Independent living needs assessment. An independent living 
needs assessment is a systematic procedure to identify a youth's basic 
skills, emotional and social capabilities, strengths, and needs to match 
the youth with appropriate independent living services. An independent 
living needs assessment may address knowledge of basic living skills, 
job readiness, money management abilities, decision-making skills, goal 
setting, task completion, and transitional living needs. Indicate 
whether the youth received an independent living needs assessment that 
was paid for or provided by the State agency during the reporting period 
with a ``yes'' or ``no'' as appropriate. If the youth is not in the 
served population this element must be left blank.
    (21) Academic support. Academic supports are services designed to 
help a youth complete high school or obtain a General Equivalency Degree 
(GED). Such services include the following: Academic counseling; 
preparation for a GED, including assistance in applying for or studying 
for a GED exam; tutoring; help with homework; study skills training; 
literacy training; and help accessing educational resources. Academic 
support does not include a youth's general attendance in high school. 
Indicate whether the youth received academic supports during the 
reporting period that were paid for or provided by the State agency with 
a ``yes'' or ``no'' as appropriate. If the youth is not in the served 
population this element must be left blank.
    (22) Post-secondary educational support. Post-secondary educational 
support are services designed to help a youth enter or complete a post-
secondary education and include the following: Classes for test 
preparation, such as the Scholastic Aptitude Test (SAT); counseling 
about college; information about financial aid and scholarships; help 
completing college or loan applications; or tutoring while in college. 
Indicate whether the youth received post-secondary educational support 
during the reporting period that

[[Page 362]]

was paid for or provided by the State agency with a ``yes'' or ``no'' as 
appropriate. If the youth is not in the served population this element 
must be left blank.
    (23) Career preparation. Career preparation services focus on 
developing a youth's ability to find, apply for, and retain appropriate 
employment. Career preparation includes the following types of 
instruction and support services: Vocational and career assessment, 
including career exploration and planning, guidance in setting and 
assessing vocational and career interests and skills, and help in 
matching interests and abilities with vocational goals; job seeking and 
job placement support, including identifying potential employers, 
writing resumes, completing job applications, developing interview 
skills, job shadowing, receiving job referrals, using career resource 
libraries, understanding employee benefits coverage, and securing work 
permits; retention support, including job coaching; learning how to work 
with employers and other employees; understanding workplace values such 
as timeliness and appearance; and understanding authority and customer 
relationships. Indicate whether the youth received career preparation 
services during the reporting period that was paid for or provided by 
the State agency with a ``yes'' or ``no'' as appropriate. If the youth 
is not in the served population this element must be left blank.
    (24) Employment programs or vocational training. Employment programs 
and vocational training are designed to build a youth's skills for a 
specific trade, vocation, or career through classes or on-site training. 
Employment programs include a youth's participation in an 
apprenticeship, internship, or summer employment program and do not 
include summer or after-school jobs secured by the youth alone. 
Vocational training includes a youth's participation in vocational or 
trade programs and the receipt of training in occupational classes for 
such skills as cosmetology, auto mechanics, building trades, nursing, 
computer science, and other current or emerging employment sectors. 
Indicate whether the youth attended an employment program or received 
vocational training during the reporting period that was paid for or 
provided by the State agency, with a ``yes'' or ``no'' as appropriate. 
If the youth is not in the served population this element must be left 
blank.
    (25) Budget and financial management. Budget and financial 
management assistance includes the following types of training and 
practice: Living within a budget; opening and using a checking and 
savings account; balancing a checkbook; developing consumer awareness 
and smart shopping skills; accessing information about credit, loans and 
taxes; and filling out tax forms. Indicate whether the youth received 
budget and financial management assistance during the reporting period 
that was paid for or provided by the State agency with a ``yes'' or 
``no'' as appropriate. If the youth is not in the served population this 
element must be left blank.
    (26) Housing education and home management training. Housing 
education includes assistance or training in locating and maintaining 
housing, including filling out a rental application and acquiring a 
lease, handling security deposits and utilities, understanding practices 
for keeping a healthy and safe home, understanding tenants rights and 
responsibilities, and handling landlord complaints. Home management 
includes instruction in food preparation, laundry, housekeeping, living 
cooperatively, meal planning, grocery shopping and basic maintenance and 
repairs. Indicate whether the youth received housing education or home 
management training during the reporting period that was paid for or 
provided by the State agency with a ``yes'' or ``no'' as appropriate. If 
the youth is not in the served population this element must be left 
blank.
    (27) Health education and risk prevention. Health education and risk 
prevention includes providing information about: Hygiene, nutrition, 
fitness and exercise, and first aid; medical and dental care benefits, 
health care resources and insurance, prenatal care and maintaining 
personal medical records; sex education, abstinence education, and HIV 
prevention, including education and information about sexual development 
and sexuality, pregnancy prevention and family planning,

[[Page 363]]

and sexually transmitted diseases and AIDS; substance abuse prevention 
and intervention, including education and information about the effects 
and consequences of substance use (alcohol, drugs, tobacco) and 
substance avoidance and intervention. Health education and risk 
prevention does not include the youth's actual receipt of direct medical 
care or substance abuse treatment. Indicate whether the youth received 
these services during the reporting period that were paid for or 
provided by the State agency with a ``yes'' or ``no'' as appropriate. If 
the youth is not in the served population this element must be left 
blank.
    (28) Family support and healthy marriage education. Such services 
include education and information about safe and stable families, 
healthy marriages, spousal communication, parenting, responsible 
fatherhood, childcare skills, teen parenting, and domestic and family 
violence prevention. Indicate whether the youth received these services 
that were paid for or provided by the State agency during the reporting 
period with a ``yes'' or ``no'' as appropriate. If the youth is not in 
the served population this element must be left blank.
    (29) Mentoring. Mentoring means that the youth has been matched with 
a screened and trained adult for a one-on-one relationship that involves 
the two meeting on a regular basis. Mentoring can be short-term, but it 
may also support the development of a long-term relationship. While 
youth often are connected to adult role models through school, work, or 
family, this service category only includes a mentor relationship that 
has been facilitated, paid for or provided by the State agency or its 
staff. Indicate whether the youth received mentoring services that were 
paid for or provided by the State agency during the reporting period 
with a ``yes'' or ``no'' as appropriate. If the youth is not in the 
served population this element must be left blank.
    (30) Supervised independent living. Supervised independent living 
means that the youth is living independently under a supervised 
arrangement that is paid for or provided by the State agency. A youth in 
supervised independent living is not supervised 24 hours a day by an 
adult and often is provided with increased responsibilities, such as 
paying bills, assuming leases, and working with a landlord, while under 
the supervision of an adult. Indicate whether the youth was living in a 
supervised independent living setting that was paid or provided by the 
State agency during the reporting period with a ``yes'' or ``no'' as 
appropriate. If the youth is not in the served population this element 
must be left blank.
    (31) Room and board financial assistance. Room and board financial 
assistance is a payment that is paid for or provided by the State agency 
for room and board, including rent deposits, utilities, and other 
household start-up expenses. Indicate whether the youth received 
financial assistance for room and board that was paid for or provided by 
during the reporting period with a ``yes'' or ``no'' as appropriate. If 
the youth is not in the served population this element must be left 
blank.
    (32) Education financial assistance. Education financial assistance 
is a payment that is paid for or provided by the State agency for 
education or training, including allowances to purchase textbooks, 
uniforms, computers, and other educational supplies; tuition assistance; 
scholarships; payment for educational preparation and support services 
(i.e., tutoring), and payment for GED and other educational tests. This 
financial assistance also includes vouchers for tuition or vocational 
education or tuition waiver programs paid for or provided by the State 
agency. Indicate whether the youth received education financial 
assistance during the reporting period that was paid for or provided by 
the State agency with a ``yes'' or ``no'' as appropriate. If the youth 
is not in the served population this element must be left blank.
    (33) Other financial assistance. Other financial assistance includes 
any other payments made or provided by the State agency to help the 
youth live independently. Indicate whether the youth received any other 
financial assistance that was paid for or provided by the State agency 
during the reporting period with a ``yes'' or ``no'' as appropriate. If 
the youth is not in the

[[Page 364]]

served population this element must be left blank.
    (34) Outcomes reporting status. The outcomes reporting status 
represents the youth's participation, or lack thereof, in the outcomes 
data collection. If the State agency collects and reports information on 
any of the data elements in paragraphs (g)(37) through (g)(58) of this 
section for a youth in the baseline or follow-up sample or population, 
indicate that the youth participated. If a youth is in the baseline or 
follow-up sample or population, but the State agency is unable to 
collect the information, indicate the reason and leave the data elements 
in paragraph (g)(37) through (g)(58) of this section blank. If a 19-year 
old youth in the follow-up population is not in the sample, indicate 
that the youth is not in the sample. If the youth is not in the baseline 
or follow-up population this element must be left blank.
    (i) Youth participated. The youth participated in the outcome 
survey, either fully or partially.
    (ii) Youth declined. The State agency located the youth successfully 
and invited the youth's participation, but the youth declined to 
participate in the data collection.
    (iii) Parent declined. The State agency invited the youth's 
participation, but the youth's parent/guardian declined to grant 
permission. This response may be used only when the youth has not 
reached the age of majority in the State and State law or policy 
requires a parent/guardian's permission for the youth to participate in 
information collection activities.
    (iv) Incapacitated. The youth has a permanent or temporary mental or 
physical condition that prevents him or her from participating in the 
outcomes data collection.
    (v) Incarcerated. The youth is unable to participate in the outcomes 
data collection because of his or her incarceration.
    (vi) Runaway/missing. A youth in foster care is known to have run 
away or be missing from his or her foster care placement.
    (vii) Unable to locate/invite. The State agency could not locate a 
youth who is not in foster care or otherwise invite such a youth's 
participation.
    (viii) Death. The youth died prior to his participation in the 
outcomes data collection.
    (ix) Not in sample. The 19-year-old youth participated in the 
outcomes data collection as a part of the baseline population at age 17, 
but the youth is not in the State's follow-up sample. This response 
option applies only when the outcomes data collection is required on the 
follow-up population of 19-year-old youth.
    (35) Date of outcome data collection. The date of outcome data 
collection is the latest date that the agency collected data from a 
youth for the elements described in paragraphs (g)(38) through (g)(58) 
of this section. Indicate the month, day and year of the outcomes data 
collection. If the youth is not in the baseline or follow-up population 
this element must be left blank.
    (36) Foster care status--outcomes. The youth is in foster care if 
the youth is under the placement and care responsibility of the State 
title IV-B/IV-E agency in accordance with the definition of foster care 
in 45 CFR 1355.20. Indicate whether the youth is in foster care on the 
date of outcomes data collection with a ``yes'' or ``no'' as 
appropriate. If the youth is not in the baseline or follow-up population 
this element must be left blank.
    (37) Current full-time employment. A youth is employed full-time if 
employed at least 35 hours per week, in one or multiple jobs, as of the 
date of the outcome data collection. Indicate whether the youth is 
employed full-time, with a ``yes'' or ``no'' as appropriate. If the 
youth does not answer this question indicate ``declined.'' If the youth 
is not in the baseline or follow-up population this element must be left 
blank.
    (38) Current part-time employment. A youth is employed part-time if 
employed between one and 34 hours per week, in one or multiple jobs, as 
of the date of the outcome data collection. Indicate whether the youth 
is employed part-time, with a ``yes'' or ``no.'' If the youth does not 
answer this question, indicate ``declined.'' If the youth is not in the 
baseline or follow-up population this element must be left blank.

[[Page 365]]

    (39) Employment-related skills. A youth has obtained employment-
related skills if the youth completed an apprenticeship, internship, or 
other on-the-job training, either paid or unpaid, in the past year. The 
experience must help the youth acquire employment-related skills, such 
as specific trade skills such as carpentry or auto mechanics, or office 
skills such as word processing or use of office equipment. Indicate 
whether the youth has obtained employment-related skills, with a ``yes'' 
or ``no'' as appropriate. If the youth does not answer this question, 
indicate ``declined.'' If the youth is not in the baseline or follow-up 
population this element must be left blank.
    (40) Social Security. A youth is receiving some form of Social 
Security if receiving Supplemental Security Income (SSI) or Social 
Security Disability Insurance (SSDI), either directly or as a dependent 
beneficiary as of the date of the outcome data collection. SSI payments 
are made to eligible low-income persons with disabilities. SSDI payments 
are made to persons with a certain amount of work history who become 
disabled. A youth may receive SSDI payments through a parent. Indicate 
whether the youth is receiving a form of Social Security payments, with 
a ``yes'' or ``no'' as appropriate. If the youth does not answer this 
question, indicate ``declined.'' If the youth is not in the baseline or 
follow-up population this element must be left blank.
    (41) Educational aid. A youth is receiving educational aid if using 
a scholarship, voucher (including education or training vouchers 
pursuant to section 477(h)(2) of the Social Security Act), grant, 
stipend, student loan, or other type of educational financial aid to 
cover educational expenses as of the date of the outcome data 
collection. Scholarships, grants, and stipends are funds awarded for 
spending on expenses related to gaining an education. ``Student loan'' 
means a government-guaranteed, low-interest loan for students in post-
secondary education. Indicate whether the youth is receiving educational 
aid with a ``yes'' or ``no'' as appropriate. If the youth does not 
answer this question, indicate ``declined.'' If the youth is not in the 
baseline or follow-up population this element must be left blank.
    (42) Public financial assistance. A youth is receiving public 
financial assistance if receiving ongoing cash welfare payments from the 
government to cover some of his or her basic needs, as of the date of 
the outcome data collection. Public financial assistance does not 
include government payments or subsidies for specific purposes, such as 
unemployment insurance, child care subsidies, education assistance, food 
stamps or housing assistance. Indicate whether the youth is receiving 
public financial assistance, with ``yes'' or ``no'' as appropriate, and 
``not applicable'' for a youth still in foster care. If the youth does 
not answer this question, indicate ``declined.'' If the youth is not in 
the baseline or follow-up population this element must be left blank.
    (43) Public food assistance. A youth is receiving public food 
assistance if receiving food stamps in any form (i.e., government-
sponsored checks, coupons or debit cards) to buy eligible food at 
authorized stores as of the date of the outcome data collection. This 
definition includes receiving public food assistance through the Women, 
Infants, and Children (WIC) program. Indicate whether the youth is 
receiving some form of public food assistance with ``yes'' or ``no,'' 
and ``not applicable'' for a youth still in foster care. If the youth 
does not answer this question, indicate ``declined.'' If the youth is 
not in the baseline or follow-up population this element must be left 
blank.
    (44) Public housing assistance. A youth is receiving public housing 
assistance if the youth is living in government-funded public housing, 
or receiving a government-funded housing voucher to pay for part of his/
her housing costs as of the date of the outcome data collection. CFCIP 
room and board payments are not included in this definition. Indicate 
whether the youth is receiving housing assistance with ``yes'' or ``no'' 
and ``not applicable'' for a youth still in foster care. If the youth 
does not answer this question, indicate ``declined.'' If the youth is 
not in the baseline or follow-up population this element must be left 
blank.

[[Page 366]]

    (45) Other financial support. A youth has other financial support if 
receiving any other periodic and/or significant financial resources or 
support from another source not listed in the elements described in 
paragraphs (g)(41) through (g)(44) of this section as of the date of 
outcome data collection. Such support can include payments from a spouse 
or family member (biological, foster or adoptive), child support that 
the youth receives for him or herself, or funds from a legal settlement. 
This definition does not include occasional gifts, such as birthday or 
graduation checks or small donations of food or personal incidentals, 
child care subsidies, child support for a youth's child, or other 
financial support which does not benefit the youth directly in 
supporting himself or herself. Indicate whether the youth is receiving 
any other financial support with a ``yes'' or ``no.'' If the youth does 
not answer this question, indicate ``declined.'' If the youth is not in 
the baseline or follow-up population this element must be left blank.
    (46) Highest educational certification received. A youth has 
received an education certificate if the youth has a high school diploma 
or general equivalency degree (GED), vocational certificate, vocational 
license, associate's degree (e.g., A.A.), bachelor's degree (e.g., B.A. 
or B.S.), or a higher degree as of the date of the outcome data 
collection. Indicate the highest degree that the youth has received. If 
the youth does not answer this question, indicate ``declined.'' If the 
youth is not in the baseline or follow-up population this element must 
be left blank.
    (i) A vocational certificate is a document stating that a person has 
received education or training that qualifies him or her for a 
particular job, e.g., auto mechanics or cosmetology.
    (ii) A vocational license is a document that indicates that the 
State or local government recognizes an individual as a qualified 
professional in a particular trade or business.
    (iii) An associate's degree is generally a two-year degree from a 
community college.
    (iv) A bachelor's degree is a four-year degree from a college or 
university.
    (v) A higher degree indicates a graduate degree, such as a Master's 
Degree or a Juris Doctor (J.D.).
    (vi) None of the above means that the youth has not received any of 
the above educational certifications.
    (47) Current enrollment and attendance. Indicate whether the youth 
is enrolled in and attending high school, GED classes, or postsecondary 
vocational training or college, as of the date of the outcome data 
collection. A youth is still considered enrolled in and attending school 
if the youth would otherwise be enrolled in and attending a school that 
is currently out of session. Indicate whether the youth is currently 
enrolled and attending school with a ``yes'' or ``no.'' If the youth 
does not answer this question, indicate ``declined.'' If the youth is 
not in the baseline or follow-up population this element must be left 
blank.
    (48) Connection to adult. A youth has a connection to an adult if, 
as of the date of the outcome data collection, the youth knows an adult 
who he or she can go to for advice or guidance when there is a decision 
to make or a problem to solve, or for companionship when celebrating 
personal achievements. The adult must be easily accessible to the youth, 
either by telephone or in person. This can include, but is not limited 
to adult relatives, parents or foster parents. The definition excludes 
spouses, partners, boyfriends or girlfriends and current caseworkers. 
Indicate whether the youth has such a connection with an adult with a 
``yes'' or ``no.'' If the youth does not answer this question, indicate 
``declined.'' If the youth is not in the baseline or follow-up 
population this element must be left blank.
    (49) Homelessness. A youth is considered to have experienced 
homelessness if the youth had no regular or adequate place to live. This 
definition includes situations where the youth is living in a car or on 
the street, or staying in a homeless or other temporary shelter. For a 
17-year-old youth in the baseline population, the data element relates 
to a youth's lifetime experiences. For a 19- or 21-year-old youth in the 
follow-up population, the data element relates to the youth's experience 
in the past two years. Indicate if the youth has

[[Page 367]]

been homeless with a ``yes'' or ``no.'' If the youth does not answer 
this question, indicate ``declined.'' If the youth is not in the 
baseline or follow-up population this element must be left blank.
    (50) Substance abuse referral. A youth has received a substance 
abuse referral if the youth was referred for an alcohol or drug abuse 
assessment or counseling. For a 17-year-old youth in the baseline 
population, the data element relates to a youth's lifetime experience. 
For a 19-or 21-year-old youth in the follow-up population, the data 
element relates to the youth's experience in the past two years. This 
definition includes either a self-referral or referral by a social 
worker, school staff, physician, mental health worker, foster parent, or 
other adult. Alcohol or drug abuse assessment is a process designed to 
determine if someone has a problem with alcohol or drug use. Indicate 
whether the youth had a substance abuse referral with a ``yes'' or 
``no.'' If the youth does not answer this question, indicate 
``declined.'' If the youth is not in the baseline or follow-up 
population this element must be left blank.
    (51) Incarceration. A youth is considered to have been incarcerated 
if the youth was confined in a jail, prison, correctional facility, or 
juvenile or community detention facility in connection with allegedly 
committing a crime (misdemeanor or felony). For a 17-year-old youth in 
the baseline population, the data element relates to a youth's lifetime 
experience. For a 19-or 21-year-old youth in the follow-up population, 
the data element relates to the youth's experience in the past two 
years. Indicate whether the youth was incarcerated with a ``yes'' or 
``no''. If the youth does not answer this question, indicate 
``declined.'' If the youth is not in the baseline or follow-up 
population this element must be left blank.
    (52) Children. A youth is considered to have a child if the youth 
has given birth herself, or the youth has fathered any children who were 
born. For a 17-year-old youth in the baseline population, the data 
element relates to a youth's lifetime experience. For a 19-or 21-year-
old youth in the follow-up population, the data element refers to 
children born to the youth in the past two years only. This refers to 
biological parenthood. Indicate whether the youth had a child with a 
``yes'' or ``no.'' If the youth does not answer this question, indicate 
``declined.'' If the youth is not in the baseline or follow-up 
population this element must be left blank.
    (53) Marriage at child's birth. A youth is married at the time of 
the child's birth if he or she was united in matrimony according to the 
laws of the State to the child's other parent. Indicate whether the 
youth was married to the child's other parent at the time of the birth 
of any child reported in the element described in paragraph (g)(52) of 
this section with a ``yes'' or ``no''. If the youth does not answer this 
question, indicate ``declined.'' If the answer to the element described 
in paragraph (g)(52) of this section is ``no,'' indicate ``not 
applicable.'' If the youth is not in the baseline or follow-up 
population this element must be left blank.
    (54) Medicaid. A youth is receiving Medicaid if the youth is 
participating in a Medicaid-funded State program, which is a medical 
assistance program supported by the Federal and State government under 
title XIX of the Social Security Act as of the date of outcomes data 
collection. Indicate whether the youth receives Medicaid with ``yes,'' 
``no,'' or ``don't know'' as appropriate. If the youth does not answer 
this question, indicate ``declined.'' If the youth is not in the 
baseline or follow-up population this element must be left blank.
    (55) Other health insurance coverage. A youth has other health 
insurance if the youth has a third party pay (other than Medicaid) for 
all or part of the costs of medical care, mental health care, and/or 
prescription drugs, as of the date of the outcome data collection. This 
definition includes group coverage offered by employers, schools or 
associations, an individual health plan, self-employed plans, or 
inclusion in a parent's insurance plan. This also could include access 
to free health care through a college, Indian Health Service, or other 
source. Medical or drug discount cards or plans are not insurance. 
Indicate

[[Page 368]]

``yes'', ``no'', or ``don't know'' as appropriate. If the youth does not 
answer this question, indicate ``declined.''
    (56) Health insurance type: Medical. If the youth has indicated that 
he or she has health insurance coverage in the element described in 
paragraph (g)(55) of this section, indicate whether the youth has 
insurance that pays for all or part of medical health care services. 
Indicate ``yes'', ``no'', or ``don't know'' as appropriate, or ``not 
applicable'' if the youth did not indicate any health insurance 
coverage. If the youth does not answer this question, indicate 
``declined.'' If the youth is not in the baseline or follow-up 
population this element must be left blank.
    (57) Health insurance type: Mental health. If the youth has 
indicated that he or she has medical health insurance coverage as 
described in paragraph (g)(56) of this section, indicate whether the 
youth has insurance that pays for all or part of the costs for mental 
health care services, such as counseling or therapy. Indicate ``yes'', 
``no'', or ``don't know'' as appropriate, or ``not applicable'' if the 
youth did not indicate having medical health insurance coverage. If the 
youth does not answer this question, indicate ``declined.'' If the youth 
is not in the baseline or follow-up population this element must be left 
blank.
    (58) Health insurance type: Prescription drugs. If the youth has 
indicated that he or she has medical health insurance coverage as 
described in paragraph (g)(56) of this section, indicate whether the 
youth has insurance coverage that pays for part or all of the costs of 
some prescription drugs. Indicate ``yes'', ``no'', or ``don't know'' as 
appropriate, or ``not applicable'' if the youth did not indicate having 
medical health insurance coverage. If the youth does not answer this 
question, indicate ``declined.'' If the youth is not in the baseline or 
follow-up population this element must be left blank.
    (h) Electronic reporting. The State agency must report all data to 
ACF electronically according to ACF's specifications and appendix A of 
this part.

(This requirement has been approved by the Office of Management and 
Budget under OMB Control Number OMB 0970-0340. In accordance with the 
Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, 
and a person is not required to respond to, a collection of information 
unless it displays a currently valid OMB control number.)

[73 FR 10365, Feb. 26, 2008, as amended at 77 FR 952, Jan. 6, 2012]



Sec.  1356.84  Sampling.

    (a) The State agency may collect and report the information required 
in section 1356.83(e) of this part on a sample of the baseline 
population consistent with the sampling requirements described in 
paragraphs (b) and (c) of this section.
    (b) The State agency must select the follow-up sample using simple 
random sampling procedures based on random numbers generated by a 
computer program, unless ACF approves another sampling procedure. The 
sampling universe consists of youth in the baseline population 
consistent with 45 CFR 1356.81(b) who participated in the State agency's 
data collection at age 17.
    (c) The sample size is based on the number of youth in the baseline 
population who participated in the State agency's data collection at age 
17.
    (1) If the number of youth in the baseline population who 
participated in the outcome data collection at age 17 is 5,000 or less, 
the State agency must calculate the sample size using the formula in 
appendix C of this part, with the Finite Population Correction (FPC). 
The State agency must increase the resulting number by 30 percent to 
allow for attrition, but the sample size may not be larger than the 
number of youth who participated in data collection at age 17.
    (2) If the number of youth in the baseline population who 
participated in the outcome data collection at age 17 is greater than 
5,000, the State agency must calculate the sample size using the formula 
in appendix C of this part, without the FPC. The State agency must 
increase the resulting number by 30 percent to allow for attrition, but 
the sample size must not be larger than

[[Page 369]]

the number of youth who participated in data collection at age 17.

[73 FR 10365, Feb. 26, 2008]



Sec.  1356.85  Compliance.

    (a) File submission standards. A State agency must submit a data 
file in accordance with the following file submission standards:
    (1) Timely data. The data file must be received in accordance with 
the reporting period and timeline described in section 1356.83(a) of 
this part;
    (2) Format. The data file must be in a format that meets ACF's 
specifications; and
    (3) Error-free information. The file must contain data in the 
general and demographic elements described in section 1356.83(g)(1) 
through (g)(5), (g)(14), and (g)(36) of this part that is 100 percent 
error-free as defined in paragraph (c) of this section.
    (b) Data standards. A State agency also must submit a file that 
meets the following data standards:
    (1) Error-free. The data for the applicable demographic, service and 
outcomes elements defined in section 1356.83(g)(6) through (13), (g)(15) 
through (35) and (g)(37) through (58) of this part must be 90 percent 
error-free as described and assessed according to paragraph (c) of this 
section.
    (2) Outcomes universe. In any Federal fiscal year for which the 
State agency is required to submit information on the follow-up 
population, the State agency must submit a youth record containing at 
least outcomes data for the outcomes status element described in section 
1356.83(g)(34) of this part on each youth for whom the State agency 
reported outcome information as part of the baseline population. 
Alternatively, if the State agency has elected to conduct sampling in 
accordance with section 1356.84 of this part, the State agency must 
submit a record containing at least outcomes data for the outcomes 
status element described in section 1356.83(g)(34) of this part on each 
19-year-old youth in the follow-up population, inclusive of those youth 
who are not in the sample, and each 21-year-old youth in the follow-up 
sample.
    (3) Outcomes participation rate. The State agency must report 
outcome information on each youth in the follow-up population at the 
rates described in paragraphs (b)(3)(i) through (iii) of this section. A 
youth has participated in the outcomes data collection if the State 
agency collected and reported a valid response (i.e., a response option 
other than ``declined'' or ``not applicable'') to any of the outcomes-
related elements described in section 1356.83(g)(37) through (g)(58) of 
this part. ACF will exclude from the calculation of the participation 
rate any youth in the follow-up population who is reported as deceased, 
incapacitated or incarcerated in section 1356.83(g)(34) at the time 
information on the follow-up population is required.
    (i) Foster care youth participation rate. The State agency must 
report outcome information on at least 80 percent of youth in the 
follow-up population who are in foster care on the date of outcomes data 
collection as indicated in section 1356.83(g)(35) and (g)(36) of this 
part.
    (ii) Discharged youth participation rate. The State agency must 
report outcome information on at least 60 percent of youth in the 
follow-up population who are not in foster care on the date of outcomes 
data collection as indicated in section 1356.83(g)(35) and (g)(36) of 
this part.
    (iii) Effect of sampling on participation rates. For State agencies 
electing to sample in accordance with section 1356.84 and appendix C of 
this part, ACF will apply the outcome participation rates in paragraphs 
(b)(2)(i) and (ii) of this section to the required sample size for the 
State.
    (c) Errors. ACF will assess each State agency's data file for the 
following types of errors: Missing data, out-of-range data, or 
internally inconsistent data. The amount of errors acceptable for each 
reporting period is described in paragraphs (a) and (b) of this section.
    (1) Missing data is any element that has a blank response when a 
blank response is not a valid response option as described in section 
1356.83(g) of this part.
    (2) Out-of-range data is any element that contains a value that is 
outside the parameters of acceptable responses or exceeds, either 
positively or negatively, the acceptable range of response

[[Page 370]]

options as described in section 1356.83(g) of this part; and
    (3) Internally inconsistent data is any element that fails an 
internal consistency check designed to evaluate the logical relationship 
between elements in each record. The evaluation will identify all 
elements involved in a particular check as in error.
    (d) Review for compliance. (1) ACF will determine whether a State 
agency's data file for each reporting period is in compliance with the 
file submission standards and data standards in paragraphs (a) and (b) 
of this section.
    (i) For State agencies that achieve the file submission standards, 
ACF will determine whether the State agency's data file meets the data 
standards.
    (ii) For State agencies that do not achieve the file submission 
standards or data standards, ACF will notify the State agency that they 
have an opportunity to submit a corrected data file by the end of the 
subsequent reporting period in accordance with paragraph (e) of this 
section.
    (2) ACF may use monitoring tools or assessment procedures to 
determine whether the State agency is meeting all the requirements of 
section 1356.81 through 1356.85 of this part.
    (e) Submitting corrected data and noncompliance. A State agency that 
does not submit a data file that meets the standards in section 1356.85 
of this part will have an opportunity to submit a corrected data file in 
accordance with paragraphs (e)(1) and (e)(2) of this section.
    (1) A State agency must submit a corrected data file no later than 
the end of the subsequent reporting period as defined in section 
1356.83(a) of this part (i.e., by September 30 or March 31).
    (2) If a State agency fails to submit a corrected data file that 
meets the compliance standards in section 1356.85 of this part and the 
deadline in paragraph (e)(1) of this section, ACF will make a final 
determination that the State is out of compliance, notify the State 
agency, and apply penalties as defined in section 1356.86 of this part.

[73 FR 10365, Feb. 26, 2008]



Sec.  1356.86  Penalties for noncompliance.

    (a) Definition of Federal funds subject to a penalty. The funds that 
are subject to a penalty are the CFCIP funds allocated or reallocated to 
the State agency under section 477(c)(1) of the Act for the Federal 
fiscal year that corresponds with the reporting period for which the 
State agency was required originally to submit data according to section 
1356.83(a) of this part.
    (b) Assessed penalty amounts. ACF will assess penalties in the 
following amounts, depending on the area of noncompliance:
    (1) Penalty for not meeting file submission standards. ACF will 
assess a penalty in an amount equivalent to two and one half percent 
(2.5%) of the funds subject to a penalty for each reporting period in 
which ACF makes a final determination that the State agency's data file 
does not comply with the file submission standards defined in section 
1356.85(a) of this part.
    (2) Penalty for not meeting certain data standards. ACF will assess 
a penalty in an amount equivalent to:
    (i) One and one quarter percent (1.25%) of the funds subject to a 
penalty for each reporting period in which ACF makes a final 
determination that the State agency's data file does not comply with the 
data standard for error-free data as defined in section 1356.85(b)(1) of 
this part.
    (ii) One and one quarter percent (1.25%) of the funds subject to a 
penalty for each reporting period in which ACF makes a final 
determination that the State agency's data file does not comply with the 
outcome universe standard defined in section 1356.85(b)(2) of this part.
    (iii) One half of one percent (0.5%) of the funds subject to a 
penalty for each reporting period in which ACF makes a final 
determination that the State agency's data file does not comply with the 
participation rate for youth in foster care standard defined in section 
1356.85(b)(3)(i) of this part.
    (iv) One half of one percent (0.5%) of the funds subject to a 
penalty for each reporting period in which ACF makes a final 
determination that the State agency's data file does not comply with the 
participation rate for discharged

[[Page 371]]

youth standard defined in section 1356.85(b)(3)(ii) of this part.
    (c) Calculation of the penalty amount. ACF will add together any 
assessed penalty amounts described in paragraphs (b)(1) or (b)(2) of 
this section to determine the total calculated penalty result. If the 
total calculated penalty result is less than one percent of the funds 
subject to a penalty, the State agency will be penalized in the amount 
of one percent.
    (d) Notification of penalty amount. ACF will advise the State agency 
in writing of a final determination of noncompliance and the amount of 
the total calculated penalty as determined in paragraph (c) of this 
section.
    (e) Interest. The State agency will be liable for interest on the 
amount of funds penalized by the Department, in accordance with the 
provisions of 45 CFR 30.18.
    (f) Appeals. The State agency may appeal, pursuant to 45 CFR part 
16, ACF's final determination to the HHS Departmental Appeals Board.

[73 FR 10365, Feb. 26, 2008, as amended at 77 FR 952, Jan. 6, 2012]



            Sec. Appendix A to Part 1356--NYTD Data Elements

------------------------------------------------------------------------
                                          Responses        Applicable
    Element No.       Element name         options         population
------------------------------------------------------------------------
1.................  State...........  2 digit FIPS
                                       code.
2.................  Report date.....  CYYMM...........
                                      CC = century
                                       year (i.e., 20).
                                      YY = decade year
                                       (00-99).
                                      MM = month (01-
                                       12).
3.................  Record number...  Encrypted,
                                       unique person
                                       identification
                                       number.
4.................  Date of birth...  CCYYMMDD........
                                      CC = century
                                       year (i.e., 20).
                                      YY = decade year
                                       (00-99).
                                      MM = month (01-
                                       12).
                                      DD= day (01-31).
5.................  Sex.............  Male............
                                      Female..........
6.................  Race--American    Yes.............  All youth in
                     Indian or                           served,
                     Alaska Native.                      baseline and
                                                         follow-up
                                                         populations.
                                      No..............
7.................  Race--Asian.....  Yes.............
                                      No..............
8.................  Race--Black or    Yes.............
                     African
                     American.
                                      No..............
9.................  Race--Native      Yes.............
                     Hawaiian or
                     Other Pacific
                     Islander.
                                      No..............
10................  Race--White.....  Yes.............
                                      No..............
11................  Race--Unknown...  Yes.............
                                      No..............
12................  Race--Declined..  Yes.............
                                      No..............
13................  Hispanic or       Yes.............
                     Latino
                     Ethnicity.
                                      No..............
                                      Unknown.........
                                      Declined........
14................  Foster care       Yes.............  Served
                     status--service                     population
                     s.                                  only.
                                      No..............
15................  Local agency....  FIPS code(s)....
                                      Centralized unit
16................  Federally-        Yes.............
                     recognized
                     tribe.
                                      No..............
17................  Adjudicated       Yes.............
                     delinquent.
                                      No..............
18................  Education level.  Less than 6th     Served
                                       grade.            population
                                                         only.
                                      6th grade.......
                                      7th grade.......
                                      8th grade.......
                                      9th grade.......
                                      10th grade......
                                      11th grade......
                                      12th grade......

[[Page 372]]

 
                                      Postsecondary
                                       education or
                                       training.
                                      College, at
                                       least one
                                       semester.
19................  Special           Yes.............
                     education.
                                      No..............
20................  Independent       Yes.............
                     living needs
                     assessment.
                                      No..............
21................  Academic support  Yes.............
                                      No..............
22................  Post-secondary    Yes.............
                     educational
                     support.
                                      No..............
23................  Career            Yes.............
                     preparation.
                                      No..............
24................  Employment        Yes.............
                     programs or
                     vocational
                     training.
                                      No..............
25................  Budget and        Yes.............
                     financial
                     management.
                                      No..............
26................  Housing           Yes.............
                     education and
                     home management
                     training.
                                      No..............
27................  Health education  Yes.............
                     and risk
                     prevention.
                                      No..............
28................  Family Support/   Yes.............
                     Healthy
                     Marriage
                     Education.
                                      No..............
29................  Mentoring.......  Yes.............
                                      No..............
30................  Supervised        Yes.............
                     independent
                     living.
                                      No..............
31................  Room and board    Yes.............
                     financial
                     assistance.
                                      No..............
32................  Education         Yes.............
                     financial
                     assistance.
                                      No..............
33................  Other financial   Yes.............
                     assistance.
                                      No..............
34................  Outcomes          Youth             Baseline and
                     reporting         Participated.     follow-up
                     status.          Youth Declined..   populations
                                      Parent Declined.   (with the
                                      Youth              exception of
                                       Incapacitated..   the response
                                      Incarcerated....   option ``not in
                                      Runaway/Missing.   sample'' which
                                      Unable to locate/  is applicable
                                       invite..          to 19-year olds
                                      Death...........   in the follow-
                                      Not in sample...   up only).
35................  Date of outcome   CCYYMMDD........  Baseline and
                     data collection.                    follow-up
                                                         populations.
                                      CC = century
                                       year (i.e., 20).
                                      YY = decade year
                                       (00-99).
                                      MM = month (01-
                                       12).
                                      DD = day (01-31)
36................  Foster care       Yes.............
                     status-outcomes.
                                      No..............
37................  Current full-     Yes.............
                     time employment.
                                      No..............
                                      Declined........
38................  Current part-     Yes.............
                     time employment.
                                      No..............
                                      Declined........
39................  Employment-       Yes.............
                     related skills.
                                      No..............
                                      Declined........
40................  Social Security.  Yes.............
                                      No..............
                                      Declined........
41................  Educational aid.  Yes.............
                                      No..............
                                      Declined........
42................  Public financial  Yes.............  Follow-up
                     assistance.                         population not
                                                         in foster care.

[[Page 373]]

 
                                      No..............
                                      Not applicable..
                                      Declined........
43................  Public food       Yes.............
                     assistance.
                                      No..............
                                      Not applicable..
                                      Declined........
44................  Public housing    Yes.............
                     assistance.
                                      No..............
                                      Not applicable..
                                      Declined........
45................  Other financial   Yes.............  Baseline and
                     support.                            follow-up
                                                         population.
                                      No..............
                                      Declined........
46................  Highest           High school
                     educational       diploma/GED.
                     certification
                     received.
                                      Vocational
                                       certificate.
                                      Vocational
                                       license.
                                      Associate's
                                       degree.
                                      Bachelor's
                                       degree.
                                      Higher degree...
                                      None of the
                                       above.
                                      Declined........
47................  Current           Yes.............
                     enrollment and
                     attendance.
                                      No..............
                                      Declined........
48................  Connection to     Yes.............
                     adult.
                                      No..............
                                      Declined........
49................  Homelessness....  Yes.............
                                      No..............
                                      Declined........
50................  Substance abuse   Yes.............
                     referral.
                                      No..............
                                      Declined........
51................  Incarceration...  Yes.............
                                      No..............
                                      Declined........
52................  Children........  Yes.............
                                      No..............
                                      Declined........
53................  Marriage at       Yes.............
                     child's birth.
                                      No..............
                                      Not applicable..
                                      Declined........
54................  Medicaid........  Yes.............
                                      No..............
                                      Don't know......
                                      Declined........
55................  Other health      Yes.............  Baseline and
                     insurance.                          follow-up
                                                         population.
                                      No..............
                                      Don't know......
                                      Declined........
56................  Health insurance  Yes.............
                     type--medical.
                                      No..............
                                      Don't know......
                                      Not Applicable..
                                      Declined........
57................  Health insurance  Yes.............
                     type--mental
                     health.
                                      No..............
                                      Don't know......
                                      Not applicable..
                                      Declined........
58................  Health insurance  Yes.
                     type--prescript  No..............
                     ion drugs.       Don't know......
                                      Not applicable..
                                      Declined........
------------------------------------------------------------------------


[77 FR 952, Jan. 6, 2012]

[[Page 374]]



         Sec. Appendix B to Part 1356--NYTD Youth Outcome Survey

------------------------------------------------------------------------
                                Question to youth
       Topic/element No.           and response          Definition
                                     options
------------------------------------------------------------------------
 INFORMATION TO COLLECT FROM ALL YOUTH SURVEYED FOR OUTCOMES, WHETHER IN
                           FOSTER CARE OR NOT
------------------------------------------------------------------------
Current full-time employment    Currently are you  ``Full-time'' means
 (37).                           employed full-     working at least 35
                                 time?              hours per week at
                                                    one or multiple
                                                    jobs.
                                _Yes
                                _No
                                _Declined
Current part-time employment    Currently are you  ``Part-time'' means
 (38).                           employed part-     working at least 1-
                                 time?              34 hours per week at
                                                    one or multiple
                                                    jobs.
                                _Yes
                                _No
                                _Declined
Employment-related skills (39)  In the past year,  This means
                                 did you complete   apprenticeships,
                                 an                 internships, or
                                 apprenticeship,    other on-the-job
                                 internship, or     trainings, either
                                 other on-the-job   paid or unpaid, that
                                 training, either   helped the youth
                                 paid or unpaid?    acquire employment-
                                _Yes                related skills
                                _No                 (which can include
                                _Declined           specific trade
                                                    skills such as
                                                    carpentry or auto
                                                    mechanics, or office
                                                    skills such as word
                                                    processing or use of
                                                    office equipment).
Social Security (40)..........  Currently are you  These are payments
                                 receiving social   from the government
                                 security           to meet basic needs
                                 payments           for food, clothing,
                                 (Supplemental      and shelter of a
                                 Security Income    person with a
                                 (SSI, Social       disability. A youth
                                 Security           may be receiving
                                 Disability         these payments
                                 Insurance          because of a parent
                                 (SSDI), or         or guardian's
                                 dependents'        disability, rather
                                 payments)?         than his/her own.
                                _Yes
                                _No
                                _Declined
Educational Aid (41)..........  Currently are you  Scholarships, grants,
                                 using a            and stipends are
                                 scholarship,       funds awarded for
                                 grant, stipend,    spending on expenses
                                 student loan,      related to gaining
                                 voucher, or        an education.
                                 other type of      ``Student loan''
                                 educational        means a government-
                                 financial aid to   guaranteed, low-
                                 cover any          interest loan for
                                 educational        students in post-
                                 expenses?          secondary education.
                                _Yes
                                _No
                                _Declined
Other financial support (45)..  Currently are you  This means periodic
                                 receiving any      and/or significant
                                 periodic and/or    financial support
                                 significant        from a spouse or
                                 financial          family member
                                 resources or       (biological, foster
                                 support from       or adoptive), child
                                 another source     support that the
                                 not previously     youth receives or
                                 indicated and      funds from a legal
                                 excluding paid     settlement. This
                                 employment?        does not include
                                _Yes                occasional gifts,
                                _No                 such as birthday or
                                _Declined           graduation checks or
                                                    small donations of
                                                    food or personal
                                                    incidentals, child
                                                    care subsidies,
                                                    child support for a
                                                    youth's child or
                                                    other financial help
                                                    that does not
                                                    benefit the youth
                                                    directly in
                                                    supporting himself
                                                    or herself.
Highest educational             What is the        ``Vocational
 certification received (46).    highest            certificate'' means
                                 educational        a document stating
                                 degree or          that a person has
                                 certification      received education
                                 that you have      or training that
                                 received?          qualifies him or her
                                _High school        for a particular
                                 diploma/GED        job, e.g., auto
                                _Vocational         mechanics or
                                 certificate        cosmetology.
                                _Vocational         ``Vocational
                                 license            license'' means a
                                _Associate's        document that
                                 degree (e.g.,      indicates that the
                                 A.A.)              State or local
                                _Bachelor's         government
                                 degree (e.g.,      recognizes an
                                 B.A. or B.S.)      individual as a
                                _Higher degree      qualified
                                _None of the        professional in a
                                 above              particular trade or
                                _Declined           business. An
                                                    Associate's degree
                                                    is generally a two-
                                                    year degree from a
                                                    community college,
                                                    and a Bachelor's
                                                    degree is a four-
                                                    year degree from a
                                                    college or
                                                    university. ``Higher
                                                    degree'' indicates a
                                                    graduate degree,
                                                    such as a Masters or
                                                    Doctorate degree.
                                                    ``None of the
                                                    above'' means that
                                                    the youth has not
                                                    received any of the
                                                    above educational
                                                    certifications.
Current enrollment and          Currently are you  This means both
 attendance (47).                enrolled in and    enrolled in and
                                 attending high     attending high
                                 school, GED        school, GED classes,
                                 classes, post-     or postsecondary
                                 high school        vocational training
                                 vocational         or college. A youth
                                 training, or       is still considered
                                 college?           enrolled in and
                                _Yes                attending school if
                                _No                 the youth would
                                _Declined           otherwise be
                                                    enrolled in and
                                                    attending a school
                                                    that is currently
                                                    out of session
                                                    (e.g., Spring break,
                                                    summer vacation,
                                                    etc.).

[[Page 375]]

 
Connection to adult (48)......  Currently is       This refers to an
                                 there at least     adult who the youth
                                 one adult in       can go to for advice
                                 your life, other   or guidance when
                                 than your          there is a decision
                                 caseworker, to     to make or a problem
                                 whom you can go    to solve, or for
                                 for advice or      companionship to
                                 emotional          share personal
                                 support?           achievements. This
                                _Yes                can include, but is
                                _No                 not limited to,
                                _Declined           adult relatives,
                                                    parents or foster
                                                    parents. The
                                                    definition excludes
                                                    spouses, partners,
                                                    boyfriends or
                                                    girlfriends and
                                                    current caseworkers.
                                                    The adult must be
                                                    easily accessible to
                                                    the youth, either by
                                                    telephone or in
                                                    person.
Homelessness (49).............  Have you ever      ``Homeless'' means
                                 been homeless?     that the youth had
                                OR                  no regular or
                                _In the past two    adequate place to
                                 years, were you    live. This includes
                                 homeless at any    living in a car, or
                                 time?              on the street, or
                                _Yes                staying in a
                                _No                 homeless or other
                                _Declined           temporary shelter.
Substance abuse referral (50).  Have you ever      This includes either
                                 referred           self-referring or
                                 yourself or has    being referred by a
                                 someone else       social worker,
                                 referred you for   school staff,
                                 an alcohol or      physician, mental
                                 drug abuse         health worker,
                                 assessment or      foster parent, or
                                 counseling?        other adult for an
                                OR                  alcohol or drug
                                                    abuse assessment or
                                                    counseling. Alcohol
                                                    or drug abuse
                                                    assessment is a
                                                    process designed to
                                                    determine if someone
                                                    has a problem with
                                                    alcohol or drug use.
                                In the past two
                                 years, did you
                                 refer yourself,
                                 or had someone
                                 else referred
                                 you for an
                                 alcohol or drug
                                 abuse assessment
                                 or counseling?
                                _Yes
                                _No
                                _Declined
Incarceration (51)............  Have you ever      This means that the
                                 been confined in   youth was confined
                                 a jail, prison,    in a jail, prison,
                                 correctional       correctional
                                 facility, or       facility, or
                                 juvenile or        juvenile or
                                 community          community detention
                                 detention          facility in
                                 facility, in       connection with a
                                 connection with    crime (misdemeanor
                                 allegedly          or felony) allegedly
                                 committing a       committed by the
                                 crime?             youth.
                                OR
                                In the past two
                                 years, were you
                                 confined in a
                                 jail, prison,
                                 correctional
                                 facility, or
                                 juvenile or
                                 community
                                 detention
                                 facility, in
                                 connection with
                                 allegedly
                                 committing a
                                 crime?
                                _Yes
                                _No
                                _Declined
Children (52).................  Have you ever      This means giving
                                 given birth or     birth to or
                                 fathered any       fathering at least
                                 children that      one child that was
                                 were born?         born. If males do
                                OR                  not know, answer
                                                    ``No.''
                                In the past two
                                 years, did you
                                 give birth to or
                                 father any
                                 children that
                                 were born?
                                _Yes
                                _No
                                _Declined
Marriage at Child's Birth (53)  If you responded   This means that when
                                 yes to the         every child was born
                                 previous           the youth was
                                 question, were     married to the other
                                 you married to     parent of the child.
                                 the child's
                                 other parent at
                                 the time each
                                 child was born?
                                _Yes
                                _No
                                _Declined
Medicaid (54).................  Currently are you  Medicaid (or the
                                 on Medicaid [or    State medical
                                 use the name of    assistance program)
                                 the State's        is a health
                                 medical            insurance program
                                 assistance         funded by the
                                 program under      government.
                                 title XIX]?
                                _Yes
                                _No
                                _Don't know
                                _Declined

[[Page 376]]

 
Other Health insurance          Currently do you   ``Health insurance''
 Coverage (55).                  have health        means having a third
                                 insurance, other   party pay for all or
                                 than Medicaid?     part of health care.
                                _Yes                Youth might have
                                _No                 health insurance
                                _Don't know         such as group
                                _Declined           coverage offered by
                                                    employers or
                                                    schools, or
                                                    individual policies
                                                    that cover medical
                                                    and/or mental health
                                                    care and/or
                                                    prescription drugs,
                                                    or youth might be
                                                    covered under
                                                    parents' insurance.
                                                    This also could
                                                    include access to
                                                    free health care
                                                    through a college,
                                                    Indian Tribe, or
                                                    other source.
Health insurance type--medical  Does your health   This means that the
 (56).                           insurance          youth's health
                                 coverage include   insurance covers at
                                 coverage for       least some medical
                                 medical            services or
                                 services?          procedures. This
                                _Yes                question is for only
                                _No                 those youth who
                                _Don't know         responded ``yes'' to
                                _Not Applicable     having health
                                _Declined           insurance.
Health insurance type--mental   Does your health   This means that the
 health (57).                    insurance          youth's health
                                 include coverage   insurance covers at
                                 for mental         least some mental
                                 health services?   health services.
                                _Yes                This question is for
                                _No                 only those youth who
                                _Don't know         responded ``yes'' to
                                Not Applicable      having health
                                _Declined           insurance with
                                                    medical coverage.
Health insurance type--         Does your health   This means that the
 prescription drugs (58).        insurance          youth's health
                                 include coverage   insurance covers at
                                 for prescription   least some
                                 drugs?             prescription drugs.
                                _Yes                This question is for
                                _No                 only those youth who
                                _Don't know         responded ``yes'' to
                                _Declined           having health
                                                    insurance with
                                                    medical coverage.
------------------------------------------------------------------------
ADDITIONAL OUTCOMES INFORMATION TO COLLECT FROM YOUTH OUT OF FOSTER CARE
------------------------------------------------------------------------
Public financial assistance     Currently are you  This refers to
 (42).                           receiving          ongoing welfare
                                 ongoing welfare    payments from the
                                 payments from      government to
                                 the government     support your basic
                                 to support your    needs. Do not
                                 basic needs?       consider payments or
                                 [The State may     subsidies for
                                 add and/or         specific purposes,
                                 substitute the     such as unemployment
                                 name(s) of the     insurance, child
                                 State's welfare    care subsidies,
                                 program].          education
                                                    assistance, food
                                                    stamps or housing
                                                    assistance in this
                                                    category.
                                _Yes
                                _No
                                _Declined
Public food assistance (43)...  Currently are you  Public food
                                 receiving public   assistance includes
                                 food assistance?   food stamps, which
                                _Yes                are government-
                                _No                 issued coupons or
                                _Declined           debit cards that
                                                    recipients can use
                                                    to buy eligible food
                                                    at authorized
                                                    stores. Public food
                                                    assistance also
                                                    includes assistance
                                                    from the Women,
                                                    Infants and Children
                                                    (WIC) program.
Public housing assistance (44)  Currently are you  Public housing is
                                 receiving any      rental housing
                                 sort of housing    provided by the
                                 assistance from    government to keep
                                 the government,    rents affordable for
                                 such as living     eligible individuals
                                 in public          and families, and a
                                 housing or         housing voucher
                                 receiving a        allows participants
                                 housing voucher?   to choose their own
                                _Yes                housing while the
                                _No                 government pays part
                                _Declined           of the housing
                                                    costs. This does not
                                                    include payments
                                                    from the child
                                                    welfare agency for
                                                    room and board
                                                    payments.
------------------------------------------------------------------------


[77 FR 952, Jan. 6, 2012]



Sec. Appendix C to Part 1356--Calculating Sample Size for NYTD Follow-Up 
                               Populations

                  1. Using Finite Population Correction

    The Finite Population Correction (FPC) is applied when the sample is 
drawn from a population of one to 5,000 youth, because the sample is 
more than five percent of the population.

[[Page 377]]

[GRAPHIC] [TIFF OMITTED] TR26FE08.000

     (Py)(Pn), an estimate of the percent of responses 
to a dichotomous variable, is (.50)(.50) for the most conservative 
estimate.
[GRAPHIC] [TIFF OMITTED] TR26FE08.001

     Acceptable level of error = .05 (results are plus 
or minus five percentage points from the actual score)
     Z = 1.645 (90 percent confidence interval)
    [GRAPHIC] [TIFF OMITTED] TR26FE08.002
    
     N = number of youth from whom the sample is being 
drawn

                2. Not Using Finite Population Correction

    The FPC is not applied when the sample is drawn from a population of 
over 5,000 youth.
[GRAPHIC] [TIFF OMITTED] TR26FE08.003


[73 FR 10372, Feb. 26, 2008]



PART 1357_REQUIREMENTS APPLICABLE TO TITLE IV-B--Table of Contents



Sec.
1357.10 Scope and definitions.
1357.15 Comprehensive child and family services plan requirements.
1357.16 Annual progress and services reports.
1357.20 Child abuse and neglect programs.
1357.25 Requirements for eligibility for additional payments under 
          section 427.
1357.30 State fiscal requirements (title IV-B, subpart 1, child welfare 
          services).
1357.32 State fiscal requirements (title IV-B, subpart 2, family 
          preservation and family support services).
1357.40 Direct payments to Indian Tribal Organizations (title IV-B, 
          subpart 1, child welfare services).
1357.50 Direct payments to Indian Tribal organizations (title IV-B, 
          subpart 2, family preservation and support services).

    Authority: 42 U.S.C. 620 et seq., 42 U.S.C. 670 et seq.; 42 U.S.C. 
1302.



Sec.  1357.10  Scope and definitions.

    (a) Scope. This part applies to State and Indian Tribal programs for 
child welfare services under subpart 1, and family preservation and 
family support services under subpart 2 of title IV-B of the Act.
    (b) Eligibility. Child and family services under title IV-B, 
subparts 1 and 2, must be available on the basis of need for services 
and must not be denied on the basis of income or length of residence in 
the State or within the Indian Tribe's jurisdiction.
    (c) Definitions.
    Child and Family Services Plan (CFSP) means the document, developed 
through joint planning, which describes the publicly-funded State child 
and family services continuum (family support and family preservation 
services; child welfare services, including child abuse and neglect 
prevention, intervention, and treatment services; services to support 
reunification, adoption, kinship care, foster care, independent living, 
or other permanent living arrangements). For Indian Tribes, the document 
describes the child welfare and/or family preservation and support 
services to be provided by the Indian Tribe; includes goals and 
objectives both for improved outcomes for the safety, permanency and 
well-being

[[Page 378]]

of children and families and for service delivery system reform; 
specifies the services and other implementation activities that will be 
undertaken to carry out the goals and objectives; and includes plans for 
program improvement and allocation of resources.
    Child welfare services means public social services directed to 
accomplish the following purposes:
    (1) Protecting and promoting the welfare and safety of all children, 
including individuals with disabilities; homeless, dependent, or 
neglected children;
    (2) Preventing or remedying, or assisting in the solution of 
problems which may result in the neglect, abuse, exploitation, or 
delinquency of children;
    (3) Preventing the unnecessary separation of children from their 
families by identifying family problems and assisting families in 
resolving their problems and preventing the breakup of the family where 
the prevention of child removal is desirable and possible;
    (4) Restoring to their families children who have been removed and 
may be safely returned, by the provision of services to the child and 
the family;
    (5) Assuring adequate care of children away from their homes, in 
cases where the child cannot be returned home or cannot be placed for 
adoption; and
    (6) Placing children in suitable adoptive homes, in cases where 
restoration to the biological family is not possible or appropriate.
    Children refers to individuals from birth to the age of 21 (or such 
age of majority as provided under State law) including infants, 
children, youth, adolescents, and young adults.
    Community-based services refers to programs delivered in accessible 
settings in the community and responsive to the needs of the community 
and the individuals and families residing therein. These services may be 
provided under public or private nonprofit auspices.
    Families includes, but is not limited to, biological, adoptive, 
foster, and extended families.
    Family preservation services refers to services for children and 
families designed to protect children from harm and help families 
(including foster, adoptive, and extended families) at risk or in 
crisis, including--
    (1) Preplacement preventive services programs, such as intensive 
family preservation programs, designed to help children at risk of 
foster care placement remain with their families, where possible;
    (2) Service programs designed to help children, where appropriate, 
return to families from which they have been removed; or be placed for 
adoption, with a legal guardian, or, if adoption or legal guardianship 
is determined not to be appropriate for a child, in some other planned, 
permanent living arrangement;
    (3) Service programs designed to provide follow-up care to families 
to whom a child has been returned after a foster care placement;
    (4) Respite care of children to provide temporary relief for parents 
and other caregivers (including foster parents);
    (5) Services designed to improve parenting skills (by reinforcing 
parents' confidence in their strengths, and helping them to identify 
where improvement is needed and to obtain assistance in improving those 
skills) with respect to matters such as child development, family 
budgeting, coping with stress, health, and nutrition; and
    (6) Case management services designed to stabilize families in 
crisis such as transportation, assistance with housing and utility 
payments, and access to adequate health care.
    Family support services means community-based services to promote 
the well-being of children and families designed to increase the 
strength and stability of families (including adoptive, foster, and 
extended families), to increase parents' confidence and competence in 
their parenting abilities, to afford children a stable and supportive 
family environment, and otherwise to enhance child development. Family 
support services may include:
    (1) Services, including in-home visits, parent support groups, and 
other programs designed to improve parenting skills (by reinforcing 
parents' confidence in their strengths, and helping them to identify 
where improvement is needed and to obtain assistance in improving those 
skills) with respect to matters such as child development,

[[Page 379]]

family budgeting, coping with stress, health, and nutrition;
    (2) Respite care of children to provide temporary relief for parents 
and other caregivers;
    (3) Structured activities involving parents and children to 
strengthen the parent-child relationship;
    (4) Drop-in centers to afford families opportunities for informal 
interaction with other families and with program staff;
    (5) Transportation, information and referral services to afford 
families access to other community services, including child care, 
health care, nutrition programs, adult education literacy programs, 
legal services, and counseling and mentoring services; and
    (6) Early developmental screening of children to assess the needs of 
such children, and assistance to families in securing specific services 
to meet these needs.
    Joint planning means an ongoing partnership process between ACF and 
the State and between ACF and an Indian Tribe in the development, 
review, analysis, and refinement and/or revision of the State's and the 
Indian Tribe's child and family services plan. Joint planning involves 
discussions, consultation, and negotiation between ACF and the State or 
Indian Tribe in all areas of CFSP creation such as, but not limited to, 
identifying the service needs of children, youth, and families; 
selecting the unmet service needs that will be addressed; developing 
goals and objectives that will result in improving outcomes for children 
and families; developing a plan to meet the matching requirements; and 
establishing a more comprehensive, coordinated and effective child and 
family services delivery system. The expectation of joint planning is 
that both ACF and the State or Indian Tribe will reach agreement on 
substantive and procedural matters related to the CFSP.

[61 FR 58655, Nov. 18, 1996]



Sec.  1357.15  Comprehensive child and family services plan requirements.

    (a) Scope. (1) The CFSP provides an opportunity to lay the 
groundwork for a system of coordinated, integrated, culturally relevant 
family focused services. This section describes the requirements for the 
development, implementation and phase-in of the five-year comprehensive 
child and family services plan (CFSP). The State's CFSP must meet the 
requirements of both of the following programs. The Indian Tribe's CFSP 
must meet the requirements of one or both of the following programs 
depending on the Tribe's eligibility:
    (i) Child welfare services under title IV-B, subpart 1; and
    (ii) Family preservation and family support services under title IV-
B, subpart 2.
    (2) For States only, the CFSP also must contain information on the 
following programs:
    (i) The independent living program under title IV-E, section 477 of 
the Act; and
    (ii) The Child Abuse and Neglect State grant program (known as the 
Basic State Grant) under the Child Abuse Prevention and Treatment Act 
(CAPTA) (42 U.S.C. 5101 et. seq.).
    (3) States must meet all requirements of this section except those 
that apply only to Indian Tribes. Indian Tribes must meet the 
requirements of this section only as specified.
    (4) States and eligible Indian Tribes have the option to phase-in 
the requirements for a consolidated CFSP. The consolidated CFSP 
requirements must be in place by June 30, 1997 and meet the requirements 
of 45 CFR 1357.16.
    (b) Eligibility for funds. (1) In order to receive funding under 
title IV-B, subparts 1 and 2, each State and eligible Indian Tribe must 
submit and have approved a consolidated, five-year Child and Family 
Services Plan (CFSP) and a CFS-101, Budget Request and Estimated 
Expenditure Report that meets the requirements under 45 CFR 1357.16.
    (2) States and Indian Tribes that are consolidating the requirements 
for a CFSP in FY 1995, in accordance with Sec.  1357.15(a), must submit 
the CFSP and a CFS-101 for FY 1995 and 1996 by June 30, 1995.
    (3) States and eligible Indian Tribes choosing to phase-in the 
requirements for a consolidated CFSP in FY 1996 and 1997 must submit the 
CFSP, the CFS-101 for FY 1995 for subpart 1 and 2, and

[[Page 380]]

the CFS-101 for subpart 2 for FY 1996 by June 30, 1995.
    (4) The CFSP will be approved only if the plan was developed jointly 
by ACF and the State (or the Indian Tribe), and only after broad 
consultation by the State (and the Indian Tribe) with a wide range of 
appropriate public and non-profit private agencies and community-based 
organizations with experience in administering programs of services for 
children and families (including family preservation and support 
services).
    (5) By June 30, 1996, each grantee must submit and have approved the 
first Annual Progress and Services Report and a CFS 101 for FY 1997 that 
meets the statutory and regulatory requirements of title IV-B, subparts 
1 and 2.
    (6) The Annual Progress and Services Report will be approved if it 
was developed jointly by ACF and the State (or the Indian Tribe) and if 
it meets the requirements of 45 CFR 1357.16.
    (7) The five-year CFSP for FYs 1995-1999 may be submitted in the 
format of the State's or the Indian Tribe's choice and must be submitted 
no later than June 30, 1995, to the appropriate ACF Regional Office.
    (c) Assurances. The following assurances will remain in effect on an 
ongoing basis and will need to be re-submitted only if a significant 
change in the State or the Indian Tribe's program affects an assurance:
    (1) The State or Indian Tribe must assure that it will participate 
in any evaluations the Secretary of HHS may require.
    (2) The State or Indian Tribe must assure that it will administer 
the CFSP in accordance with methods determined by the Secretary to be 
proper and efficient.
    (3) The State or Indian Tribe must assure that it has a plan for the 
training and use of paid paraprofessional staff, with particular 
emphasis on the full-time or part-time employment of low-income persons, 
as community service aides; and a plan for the use of nonpaid or 
partially paid volunteers in providing services and in assisting any 
advisory committees established by the State or Tribe.
    (4) The State or Indian Tribe must assure that standards and 
requirements imposed with respect to child care under title XX shall 
apply with respect to day care services, if provided under the CFSP, 
except insofar as eligibility for such services is involved.
    (d) The child and family services plan (CFSP): general. The State 
and the Indian Tribe must base the development of the CFSP on a planning 
process that includes:
    (1) broad involvement and consultation with a wide range of 
appropriate public and non-profit private agencies and community-based 
organizations, parents, including parents who are involved or have 
experience with the child welfare system, and others;
    (2) coordination of the provision of services under the plan with 
other Federal and federally assisted programs serving children and 
families, including youth and adolescents; and
    (3) collection of existing or available information to help 
determine vulnerable or at-risk populations or target areas; assess 
service needs and resources; identify gaps in services; select 
priorities for targeting funding and services; formulate goals and 
objectives; and develop opportunities for bringing about more effective 
and accessible services for children and families.
    (e) State agency administering the programs. (1) The State's CFSP 
must identify the name of the State agency that will administer the 
title IV-B programs under the plan. Except as provided by statute, the 
same agency is required to administer or supervise the administration of 
all programs under titles IV-B and IV-E of the Act and the social 
services block grant program under title XX of the Act. (See the 
definition of ``State agency'' in 45 CFR 1355.20.)
    (2) The CFSP must include a description of the organization and 
function of the State agency and organizational charts as appropriate. 
It also must identify the organizational unit(s) within the State agency 
responsible for the operation and administration of the CFSP, and 
include a description of the unit's organization and function and a copy 
of the organizational chart(s).

[[Page 381]]

    (f) Indian Tribal organization administering the program(s). (1) The 
Indian Tribe's CFSP must provide the name of the Indian Tribal 
organization (ITO) designated to administer funds under title IV-B, 
subpart 1, child welfare services and/or under subpart 2, family 
preservation and family support services. If the Indian Tribe receives 
funds under both subparts, the same agency or organization must 
administer both programs.
    (2) The Indian Tribe's CFSP must include a description of the 
organization and function of the office responsible for the operation 
and administration of the CFSP, an organizational chart of that office, 
and a description of how that office relates to Tribal and other offices 
operating or administering services programs within the Indian Tribe's 
service area (e.g., Indian Health Service.)
    (g) Vision Statement. The CFSP must include a vision statement which 
articulates the grantee's philosophy in providing child and family 
services and developing or improving a coordinated service delivery 
system. The vision should reflect the service principles at section 
1355.25.
    (h) Goals. The CFSP must specify the goals, based on the vision 
statement, that will be accomplished during and by the end of the five-
year period of the plan. The goals must be expressed in terms of 
improved outcomes for and the safety, permanency and well-being of 
children and families, and in terms of a more comprehensive, 
coordinated, and effective child and family service delivery system.
    (i) Objectives. (1) The CFSP must include the realistic, specific, 
quantifiable and measurable objectives that will be undertaken to 
achieve each goal. Each objective should focus on outcomes for children, 
youth, and/or their families or on elements of service delivery (such as 
quality) that are linked to outcomes in important ways. Each objective 
should include both interim benchmarks and a long-term timetable, as 
appropriate, for achieving the objective.
    (2) For States and Indian Tribes administering the title IV-B, 
subpart 1 program, the CFSP must include objectives to make progress in 
covering additional political subdivisions, reaching additional children 
in need of services, expanding and strengthening the range of existing 
services, and developing new types of services.
    (j) Measures of progress. The CFSP must describe the methods to be 
used in measuring the results, accomplishments, and annual progress 
toward meeting the goals and objectives, especially the outcomes for 
children, youth, and families. Processes and procedures assuring the 
production of valid and reliable data and information must be specified. 
The data and information must be capable of determining whether or not 
the interim benchmarks and multiyear timetable for accomplishing CFSP 
goals and objectives are being met.
    (k) Baseline information. (1) For FY 1995, the State and the Indian 
Tribe must base the development of the CFSP vision, goals, objectives, 
and funding and service decisions on an analysis of available baseline 
information and any trends over time on indicators in the following 
areas: the well-being of children and families; the needs of children 
and families; the nature, scope, and adequacy of existing child and 
family and related social services. Additional and updated information 
on service needs and organizational capacities must be obtained 
throughout the five-year period to measure progress in accomplishing the 
goals and objectives cited in the CFSP. A description of how this 
process will continue to be carried out must be included in the CFSP, 
and any revisions should be provided in the Annual Progress and Services 
Report.
    (2) The State must collect and analyze State-wide information on 
family preservation and family support services currently available to 
families and children, including the nature and scope of existing public 
and privately funded family support and family preservation services; 
the extent to which each service is available and being provided in 
different geographic areas and to different types of families; and 
important gaps in service, including mismatches between available 
services and family needs as identified through baseline data and the 
consultation process. Other services which impact

[[Page 382]]

on the ability to preserve and support families may be included in the 
assessment. The Indian Tribe must collect and analyze information on 
family preservation and family support services currently available 
within their service delivery area including the information in this 
paragraph as appropriate. An Indian Tribe may submit documentation 
prepared to satisfy the requirements of other Federal child welfare 
grants, or contracts (such as the section 638 reporting form), along 
with a descriptive addendum addressing specifically the family 
preservation and family support services available.
    (3) The CFSP must include a summary of the information used in 
developing the plan; an explanation of how this information and analysis 
were used in developing the goals, objectives, and funding and service 
decisions, including decisions about geographic targeting and service 
mix; a description of how information will be used to measure progress 
over the five-year period; and how this information will be used to 
facilitate the coordination of services.
    (l) Consultation. (1) The State's CFSP must describe the internal 
and external consultation process used to obtain broad and active 
involvement of major actors across the entire spectrum of the child and 
family service delivery system in the development of the plan. The 
description should explain how this process was coordinated with or was 
a part of other planning processes in the State; how it led or will lead 
to improved coordination of services.
    (2) The Indian Tribe's CFSP must describe the consultation process 
appropriate to its needs and circumstances used to obtain the active 
involvement of major actors providing child and family services within 
the Tribe's area of jurisdiction.
    (3) For States and Indian Tribes, the consultation process must 
involve:
    (i) All appropriate offices and agencies within the State agency or 
within the Indian Tribal service delivery system (e.g., child protective 
services (CPS), foster care and adoption, the social services block 
grant, reunification services, independent living, and other services to 
youth;)
    (ii) In a State-supervised, county-administered State, county social 
services and/or child welfare directors or representatives of the county 
social services/child welfare administrators' association;
    (iii) A wide array of State, local, Tribal, and community-based 
agencies and organizations, both public and private nonprofit with 
experience in administering programs of services for infants, children, 
youth, adolescents, and families, including family preservation and 
family support services;
    (iv) Parents, including birth and adoptive parents, foster parents, 
families with a member with a disability, children both in and outside 
the child welfare system, and consumers of services from diverse groups;
    (v) For States, representatives of Indian Tribes within the State;
    (vi) For States, representatives of local government (e.g., 
counties, cities, and other communities, neighborhoods, or areas where 
needs for services are great;)
    (vii) Representatives of professional and advocacy organizations 
(including, for example foundations and national resource centers with 
expertise to assist States and Indian Tribes to design, expand, and 
improve the delivery of services); individual practitioners working with 
children and families; the courts; representatives or other States or 
Indian Tribes with experience in administering family preservation and 
family support services; and academicians, especially those assisting 
the child and family service agency with management information systems, 
training curricula, and evaluations;
    (viii) Representatives of State and local agencies administering 
Federal and federally assisted programs which may include: Head Start; 
the local education agency (school-linked social services, adult 
education and literacy programs, Part H programs); developmental 
disabilities; nutrition services (Food Stamps, Special Supplemental Food 
Program for Women, Infants and Children (WIC)); Title IV-A; runaway 
youth, youth gang, juvenile justice programs and youth residential and 
training institutions; child care and development block grant (CCDBG) 
and respite care programs; domestic and

[[Page 383]]

community violence prevention and services programs; housing programs; 
the health agency (substance abuse, Healthy Start, maternal and child 
health, Early and Periodic Screening, Diagnosis, and Treatment (EPSDT), 
mental health, and public health nursing); law enforcement; Children's 
Trust Funds; Community-Based Family Resource Programs, and new Federal 
initiatives such as the Empowerment Zones and Enterprise Communities 
Program; and
    (ix) Administrators, supervisors and front line workers (direct 
service providers) of the State child and family services agency.
    (4) The CFSP must describe the ongoing consultation process that 
each grantee will use to ensure the continued involvement of a wide 
range of major actors in meeting the goals and objectives over the five-
year operational period of the plan and developing the Annual Progress 
and Services Report.
    (m) Services coordination. (1) States must include in the ongoing 
coordination process representatives of the full range of child and 
family services provided by the State agency as well as other service 
delivery systems providing social, health, education, and economic 
services (including mental health, substance abuse, developmental 
disabilities, and housing) to improve access and deliver a range of 
services to children and their families.
    (2) The State's CFSP must describe how services under the plan will 
be coordinated over the five-year period with services or benefits under 
other Federal or federally assisted programs serving the same 
populations to achieve the goals and objectives in the plan. The 
description must include the participants in the process and examples of 
how the process led or will lead to additional coordination of services 
(e.g., integrated service models, improved accessibility, use of a 
consolidated application or intake form, inter-disciplinary training, 
coordinated case management for several programs, pooled resources 
through blended financing, shared information across services providers 
and compatible and linked automated information systems, co-location of 
several services or programs.)
    (3) The Indian Tribe must include in the coordination process 
representatives of other Federal or federally assisted child and family 
services or related programs. The Indian Tribe's CFSP must describe how 
services under the plan will be coordinated over the five-year period 
with services or benefits under other Federal or federally assisted 
programs serving the same populations to achieve the goals and 
objectives in the plan. The descriptions must include the participants 
in the process and any examples of how the process led or will lead to 
additional coordination of services.
    (n) Services. (1) The State's CFSP must describe the publicly funded 
child and family services continuum: child welfare services (including 
child abuse and neglect prevention, intervention, and treatment 
services; and foster care); family preservation services; family support 
services; and services to support reunification, adoption, kinship care, 
independent living, or other permanent living arrangements.
    (2) The Indian Tribe's CFSP must describe the child welfare services 
(including child abuse and neglect prevention, intervention, treatment 
services and foster care) and/or the family support and family 
preservation services to be provided.
    (3) For each service described, the CFSP must include the following 
information, or it must be listed on the CFS-101, Part II:
    (i) The population(s) to be served;
    (ii) The geographic area(s) where the services will be available;
    (iii) The estimated number of individuals and/or families to be 
served;
    (iv) The estimated expenditures for these services from Federal, 
State, local, and donated sources, including title IV-B, subparts 1 and 
2, the CAPTA program referenced in paragraph (a) of this section, and 
the independent living program.
    (o) Family preservation and family support services and linkages to 
other social and health services. (1) The State's CFSP must explain how 
the funds under title IV-B, subpart 2 of the Act, will be used to 
develop or expand family support and family preservation

[[Page 384]]

services; how the family support and family preservation services relate 
to existing family support and family preservation services; and how 
these family support and preservation services will be linked to other 
services in the child and family services continuum.
    (2) The State's CFSP must explain whether and/or how funds under the 
CAPTA and independent living programs are coordinated with and 
integrated into the child and family services continuum described in the 
plan.
    (3) The State's CFSP must describe the existing or current linkages 
and the coordination of services between the services in the child and 
family services continuum and the services in other public services 
systems (e.g., health, education, housing, substance abuse, the courts), 
and other Federal and non-federally funded public and nonprofit private 
programs (e.g., Children's Trust Funds, Community-Based Family Resource 
Programs, private foundations.)
    (p) Services in relation to service principles. The CFSP must 
describe how the child and family services to be provided are designed 
to assure the safety and protection of children as well as the 
preservation and support of families, and how they are or will be 
designed to be consistent with the other service principles in 45 CFR 
1355.25.
    (q) Services in relation to permanency planning. For States 
administering both title IV-B programs (subparts 1 and 2), the CFSP must 
explain how these services will help meet the permanency provisions for 
children and families in sections 422(b)(9) and 471 of the Act (e.g., 
preplacement preventive services, reunification services, independent 
living services.) The CFSP must describe the arrangements, jointly 
developed with the Indian Tribes within its borders, made for the 
provision of the child welfare services and protections in section 
422(b)(9) to Indian children under both State and Tribal jurisdiction.
    (r) Decision-making process: selection of family support programs 
for funding. The State's CFSP must include an explanation of how 
agencies and organizations were selected for funding to provide family 
support services and how these agencies and organizations meet the 
requirement that family support services be community-based.
    (s) Significant portion of funds used for family support and family 
preservation services. With each fiscal year's budget request, each 
State must indicate the specific percentage of family preservation and 
family support funds (title IV-B, subpart 2) that the State will expend 
for community-based family support and for family preservation services, 
and the rationale for the decision. The State must have an especially 
strong rationale if the request for either percentage is below 25 
percent. It must also include an explanation of how this distribution 
was reached and why it meets the requirements that a ``significant 
portion'' of the service funds must be spent for each service. Examples 
of important considerations might include the nature of the planning 
efforts that led to the decision, the level of existing State effort in 
each area, and the resulting need for new or expanded services.
    (t) Staff training, technical assistance, and evaluation. (1) The 
State's CFSP must include a staff development and training plan in 
support of the goals and objectives in the CFSP which addresses both of 
the title IV-B programs covered by the plan. This training plan also 
must be combined with the training plan under title IV-E as required by 
45 CFR 1356.60(b)(2). Training must be an on-going activity and must 
include content from various disciplines and knowledge bases relevant to 
child and family services policies, programs and practices. Training 
content must also support the cross-system coordination consultation 
basic to the development of the CFSP.
    (2) The State's CFSP must describe the technical assistance 
activities that will be undertaken in support of the goals and 
objectives in the plan.
    (3) The State's CFSP must describe any evaluation and research 
activities underway or planned with which the State agency is involved 
or participating and which are related to the goals and objectives in 
the plan.
    (u) Quality assurance. The State must include in the CFSP a 
description of the quality assurance system it will use to regularly 
assess the quality of

[[Page 385]]

services under the CFSP and assure that there will be measures to 
address identified problems.
    (v) Distribution of the CFSP and the annual progress and services 
report. The CFSP must include a description of how the State and the 
Indian Tribe will make available to interested parties the CFSP and the 
Annual Progress and Services Report. (See 45 CFR 1355.21(c) and 45 CFR 
1357.16(d)). State agencies and Indian Tribal organizations within the 
State must exchange copies of their CFSPs and their annual services 
reports.

(This requirement has been approved by the Office of Management and 
Budget under OMB Control Number 0980-0047. In accordance with the 
Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, 
and a person is not required to respond to, a collection of information 
unless it displays a currently valid OMB control number.)

[61 FR 58656, Nov. 18, 1996, as amended at 66 FR 58677, Nov. 23, 2001]



Sec.  1357.16  Annual progress and services reports.

    (a) Annual progress and services reports. Annually, each State and 
each Indian Tribe must conduct an interim review of the progress made in 
the previous year toward accomplishing the goals and objectives in the 
plan, based on updated information. In developing paragraphs (a)(2) 
through (a)(4) of this section, the State and the Indian Tribe must 
involve the agencies, organizations, and individuals who are a part of 
the on-going CFSP-related consultation and coordination process. On the 
basis of this review, each State and Indian Tribe must prepare and 
submit to ACF, and make available to the public, an Annual Progress and 
Services Report which must include the following--
    (1) A report on the specific accomplishments and progress made in 
the past fiscal year toward meeting each goal and objective, including 
improved outcomes for children and families, and a more comprehensive, 
coordinated, effective child and family services continuum;
    (2) Any revisions in the statement of goals and objectives, or to 
the training plan, if necessary, to reflect changed circumstances;
    (3) For Indian Tribes, a description of the child welfare and/or 
family preservation and family support services to be provided in the 
upcoming fiscal year highlighting any changes in services or program 
design and including the information required in 45 CFR 1357.15(n);
    (4) For States, a description of the child protective, child 
welfare, family preservation, family support, and independent living 
services to be provided in the upcoming fiscal year highlighting any 
additions or changes in services or program design and including the 
information required in 45 CFR 1357.15(n);
    (5) Information on activities in the areas of training, technical 
assistance, research, evaluation, or management information systems that 
will be carried out in the upcoming fiscal year in support of the goals 
and objectives in the plan;
    (6) For States only, the information required to meet the 
maintenance of effort (non-supplantation) requirement in section 
432(a)(7) and (8) of the Act;
    (7) For States and eligible Indian Tribes phasing in requirements 
for a consolidated CFSP, information on activities and progress directed 
toward a consolidated plan by June 30, 1996 or 1997. The report must 
include information that demonstrates States' and eligible Indian 
Tribes' progress toward the consolidation of a CFSP, including 
activities that have been accomplished and still need to be 
accomplished; and
    (8) Any other information the State or the Indian Tribe wishes to 
include.
    (b) Submittal of the annual progress and services report and CFS-
101. (1) The State and the Indian Tribe must send the Annual Progress 
and Services Report and the CFS-101 to the appropriate ACF Regional 
Office no later than June 30 of the year prior to the fiscal year in 
which the services will be provided (e.g., the report submitted and made 
public by June 30, 1996 will describe the services to be provided in FY 
1997. The report covering FY 1998 services must be submitted by June 30, 
1997.)
    (2) In order for States and eligible Indian Tribes to receive title 
IV-B, subparts 1 and 2 allocations a CFS-101 must be submitted for each 
fiscal year.

[[Page 386]]

    (3) States and Indian Tribes which have consolidated the 
requirements for title IV-B, subparts 1 and 2, must submit the CFS-101 
to the appropriate ACF Regional Office no later than June 30 of the year 
prior to the fiscal year in which the services will be provided (e.g., 
for FY 1997 allocations, the CFS-101 must be submitted by June 30, 1996; 
for FY 1998 allocations, the CFS-101 must be submitted by June 30, 
1997.)
    (4) States and eligible Indian Tribes choosing to phase-in the 
requirements for a consolidated CFSP must:
    (i) Submit by June 30, 1996 a CFS-101 for title IV-B, subpart 1 for 
FY 1996 allocations; a CFS-101 for title IV-B, subpart 2 for FY 1997 
allocations; and, if a State or eligible Indian Tribe chooses, a CFS-101 
for subpart 1 FY 1997 allocations.
    (ii) Submit by June 30, 1997 a CFS-101 for title IV-B, subpart 1 for 
FY 1997 allocations, if not previously submitted by June 30, 1996; and a 
CFS-101 for FY 1998 for subparts 1 and 2 allocations.
    (c) Annual progress and services reports on FY 1994 family support 
and family preservation services. Each State and Indian Tribe that used 
FY 1994 funds under title IV-B, subpart 2, for services must describe in 
the CFSP what services were provided, the population(s) served, and the 
geographic areas where services were available. The CFSP also must 
include the amount of FY 1994 funds used for planning, for family 
preservation services, for family support services, and a brief 
statement on how these services met the service priorities of the State 
or the Indian Tribe.
    (d) Availability of the annual progress and services report. The 
State and the Indian Tribe must make the Annual Progress and Services 
Report available to the public including the agencies, organizations, 
and individuals with which the State or the Indian Tribe is coordinating 
services or consulting and to other interested members of the public. 
Each State and eligible Indian Tribe within the State must exchange 
copies of their Annual Progress and Services Reports.
    (e) FY 1999 Final Review. In FY 1999, each State and eligible Indian 
Tribe must conduct a final review of progress toward accomplishing the 
goals and objectives in the plan. On the basis of the final review, it 
must--
    (1) Prepare a final report on the progress made toward accomplishing 
the goals and objectives; and
    (2) Send the final report to the ACF Regional Office and make it 
available to the public.
    (f) FY 2000 Five-Year State Plan. Based on the FY 1999 final review 
and final Annual Progress and Services Report, and in consultation with 
a broad range of agencies, organizations, and individuals, the States 
and eligible Indian Tribes must develop a new five-year CFSP following 
the requirements of 45 CFR 1357.15.

(This requirement has been approved by the Office of Management and 
Budget under OMB Control Number 0980-0047. In accordance with the 
Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, 
and a person is not required to respond to, a collection of information 
unless it displays a currently valid OMB control number.)

[61 FR 58659, Nov. 18, 1996, as amended at 66 FR 58677, Nov. 23, 2001]



Sec.  1357.20  Child abuse and neglect programs.

    The State agency must assure that, with regard to any child abuse 
and neglect programs or projects funded under title IV-B of the Act, the 
requirements of section 106(b)(1) and (2) of the Child Abuse Prevention 
and Treatment Act, as amended, are met. These requirements relate to the 
State plan and assurances required for the Child Abuse and Neglect State 
Grant Program.

[61 FR 58660, Nov. 18, 1996]



Sec.  1357.25  Requirements for eligibility for additional payments 
under section 427.

    (a) For any fiscal year after FY 1979 in which a sum in excess of 
$141,000,000 is appropriated under Section 420 of the Act, a State is 
not eligible for payment of an amount greater than the amount for which 
it would be eligible if the appropriation were equal to $141,000,000 
unless the State complies with the requirements of Section 427(a) of the 
Act.
    (b) In meeting the requirements for the inventory and statewide 
information system in sections 427 (a)(1) and (2)(A) of the Act, the 
inventory and

[[Page 387]]

statewide information system must include those children under the 
placement and care responsibility of the State title IV-B or IV-E 
agencies. At the State's discretion, other children may be included. The 
six month requirement in section 427(a)(1) and the twelve month 
requirement in section 427(a)(2)(A) of the Act must also be met.

(The requirement has been approved by the Office of Management and 
Budget under OMB Control Number 0980-0138)

    (c) If, for each of any two consecutive fiscal years after FY 1979, 
there is appropriated under Section 420 of the Act a sum equal to or 
greater than $266,000,000, a State's allotment amount for any fiscal 
year after two such consecutive fiscal years shall be reduced to an 
amount equal to what the allotment amount would have been for FY 1979 
unless the State has implemented the requirements of section 427(b) of 
the Act.
    (d) In meeting the requirements of section 427(a)(2)(B) of the Act 
for dispositional hearings the State agency must meet the requirements 
of section 475(5)(C) of the Act and 45 CFR 1356.21(e).
    (e) A State may appeal a final decision by ACYF that the State has 
not met the requirements of this section and section 427 of the Act to 
the Department Grant Appeals Board under the provisions of 45 CFR part 
16.

[48 FR 23118, May 23, 1983]



Sec.  1357.30  State fiscal requirements (title IV-B, subpart 1, 
child welfare services).

    (a) Scope. The requirements of this section shall apply to all funds 
allotted or reallotted to States under title IV-B, subpart 1.
    (b) Allotments. Allotments for each State shall be determined in 
accordance with section 421 of the Act.
    (c) Payments. Payments to States shall be made in accordance with 
section 423 of the Act.
    (d) Enforcement and termination. In the event of a State's failure 
to comply with the terms of the grant under title IV-B, subpart 1, the 
provisions of 45 CFR 75.371 through 75.372 will apply.
    (e) Matching or cost-sharing. Federal financial participation is 
available only if costs are incurred in implementing sections 422, 423, 
and 425 of the Act in accordance with the grants administration 
requirements of 45 CFR part 75 with the following conditions--
    (1) The State's contribution may be in cash, donated funds, and non-
public third party in-kind contributions.
    (2) The total of Federal funds used for the following purposes under 
title IV-B, subpart 1 may not exceed an amount equal to the FY 1979 
Federal payment under title IV-B:
    (i) Child day care necessary solely because of the employment, or 
training to prepare for employment, of a parent or other relative with 
whom the child involved is living, plus;
    (ii) Foster care maintenance payments, plus;
    (iii) Adoption assistance payments.
    (3) Notwithstanding paragraph (e)(2) of this section, State 
expenditures required to match the title IV-B, subpart 1 allotment may 
include foster care maintenance expenditures in any amount.
    (f) Prohibition against purchase or construction of facilities. 
Funds awarded under title IV-B may not be used for the purchase or 
construction of facilities.
    (g) Maintenance of effort. (1) A State may not receive an amount of 
Federal funds under title IV-B in excess of the Federal payment made in 
FY 1979 under title IV-B unless the State's total expenditure of State 
and local appropriated funds for child welfare services under title IV-B 
of the Act is equal to or greater than the total of the State's 
expenditure from State and local appropriated funds used for similar 
covered services and programs under title IV-B in FY 1979.
    (2) In computing a State's level of expenditures under this section 
in FY 1979 and any subsequent fiscal year, the following costs shall not 
be included--
    (i) Expenditures and costs for child day care necessary to support 
the employment of a parent or other relative;
    (ii) Foster care maintenance payments; and
    (iii) Adoption assistance payments.
    (3) A State applying for an amount of Federal funds under title IV-B 
greater

[[Page 388]]

than the amount of title IV-B, subpart 1 funds received by that State in 
FY 1979 shall certify:
    (i) The amount of their expenditure in FY 1979 for child welfare 
services as described in paragraphs (g)(1) and (2) of this section, and
    (ii) The amount of State and local funds that have been appropriated 
and are available for child welfare services as described in paragraphs 
(g)(1) and (2) of this section for the fiscal year for which application 
for funds is being made. Records verifying the required certification 
shall be maintained by the State and made available to the Secretary as 
necessary to confirm compliance with this section.
    (h) Reallotment. (1) When a State certifies to the Commissioner that 
funds available to that State under its title IV-B, subpart 1 allotment 
will not be required, those funds shall be available for reallotment to 
other States.
    (2) When a State, after receiving notice from the Commissioner of 
the availability of funds, does not certify by a date fixed by the 
Commissioner that it will be able to expend during the period stated in 
paragraph (i) of this section all of the funds available to it under its 
title IV-B, subpart 1 allotment, those funds shall be available for 
reallotment to other States.
    (3) The Commissioner may reallot available funds to another State 
when it is determined that--
    (i) The requesting State's plan requires funds in excess of the 
State's original allotment; and
    (ii) the State will be able to expend the additional funds during 
the period stated in paragraph (i) of this section.
    (i) Time limit on expenditures. Funds under title IV-B, subpart 1, 
must be expended by September 30 of the fiscal year following the fiscal 
year in which the funds were awarded.

[61 FR 58660, Nov. 18, 1996, as amended at 81 FR 3023, Jan. 20, 2016]



Sec.  1357.32  State fiscal requirements (title IV-B, subpart 2, 
family preservation and family support services).

    (a) Scope. The requirements of this section apply to all funds 
allocated to States under title IV-B, subpart 2, of the Act.
    (b) Allotments. The annual allotment to each State shall be made in 
accordance with section 433 of the Act.
    (c) Payments. Payments to each State will be made in accordance with 
section 434 of the Act.
    (d) Matching or cost sharing. Funds used to provide services in FY 
1994 and in subsequent years will be federally reimbursed at 75 percent 
of allowable expenditures. (This is the same Federal financial 
participation rate as title IV-B, subpart 1.) Federal funds, however, 
will not exceed the amount of the State's allotment.
    (1) The State's contribution may be in cash, donated funds, and non-
public third party in-kind contributions.
    (2) Except as provided by Federal statute, other Federal funds may 
not be used to meet the matching requirement.
    (e) Prohibition against purchase or construction of facilities. 
Funds awarded under title IV-B may not be used for the purchase or 
construction of facilities.
    (f) Maintenance of effort. States may not use the Federal funds 
under title IV-B, subpart 2, to supplant Federal or non-Federal funds 
for existing family preservation and family support services. For the 
purpose of implementing this requirement, ``non-Federal funds'' means 
State funds. ACF will collect information annually from each State on 
expenditures for family support and family preservation using the State 
fiscal year 1992 as the base year.
    (g) Time limits on expenditures. Funds must be expended by September 
30 of the fiscal year following the fiscal year in which the funds were 
awarded.
    (h) Administrative costs. (1) States claiming Federal financial 
participation for services provided in FY 1994 and subsequent years may 
not claim more than 10 percent of expenditures under subpart 2 for 
administrative costs. There is no limit on the percentage of 
administrative costs which may be reported as State match.
    (2) For the purposes of title IV-B, subpart 2, ``administrative 
costs'' are costs of auxiliary functions as identified through as 
agency's accounting system which are:
    (i) Allocable (in accordance with the agency's approved cost 
allocation plan)

[[Page 389]]

to the title IV-B, subpart 2 program cost centers;
    (ii) necessary to sustain the direct effort involved in 
administering the State plan for title IV-B, subpart 2, or an activity 
providing service to the program: and
    (iii) centralized in the grantee department or in some other agency, 
and may include but are not limited to the following: Procurement; 
payroll; personnel functions; management, maintenance and operation of 
space and property; data processing and computer services; accounting; 
budgeting; auditing.
    (3) Program costs are costs, other than administrative costs, 
incurred in connection with developing and implementing the CFSP (e.g., 
delivery of services, planning, consultation, coordination, training, 
quality assurance measures, data collection, evaluations, supervision).

[61 FR 58661, Nov. 18, 1996]



Sec.  1357.40  Direct payments to Indian Tribal Organizations 
(title IV-B, subpart 1, child welfare services).

    (a) Who may apply for direct funding? Any Indian Tribal Organization 
(ITO) that meets the definitions in section 428(c) of the Act, or any 
consortium or other group of eligible Tribal organizations authorized by 
the membership of the Tribes to act for them is eligible to apply for 
direct funding if the ITO, consortium or group has a plan for child 
welfare services that is jointly developed by the ITO and the 
Department.
    (b) Title IV-B Child and Family Services Plan (CFSP). (1) In order 
to receive funds under title IV-B, subpart 1, beginning in FY 1995, the 
Indian Tribe or Tribal organization must have in effect an approved 
five-year child and family services plan that meets the applicable 
requirements of Sec.  1357.15 of this part.
    (2) The Indian Tribe or Tribal organization must also comply with 
section 422(b)(1-8) of the Act; 45 CFR part 1355 (except that the 
requirements in Sec.  1355.30 for a single Tribal agency and Governor's 
review of the CFSP do not apply); and other applicable requirements of 
Sec. Sec.  1357.10 and 1357.16.
    (c) Information related to the requirements of Section 422(b)(9) of 
the Act. The following information must be submitted with the assurances 
required to be eligible for title IV-B, subpart 1 funds:
    (1) A description of the arrangements, jointly developed with the 
State, made for the provision of the child welfare services and 
protections in section 422(b)(9) to Indian children under both State and 
Tribal jurisdiction;
    (2) A statement of the legal responsibility, if any, for children 
who are in foster care on the reservation and those awaiting adoption;
    (3) A description of Tribal jurisdiction in civil and criminal 
matters, existence or nonexistence of a Tribal court and the type of 
court and codes, if any;
    (4) An identification of the standards for foster family homes and 
institutional care and day care;
    (5) The Indian Tribal organization's political subdivisions, if any;
    (6) Whether the Tribal organization is controlled, sanctioned or 
chartered by the governing body of Indians to be served and if so, 
documentation of that fact;
    (7) Any limitations on authorities granted to the Indian Tribal 
organizations; and
    (8) The Tribal resolution(s) authorizing an application for a direct 
title IV-B, subpart 1 grant under this Part.
    (d) Grants: General. (1) Grants may be made to eligible Indian 
Tribal organizations in a State which has a jointly developed child and 
family services plan approved and in effect.
    (2) Federal funds made available for a direct grant to an eligible 
ITO shall be paid by the Department, from the title IV-B allotment for 
the State in which the ITO is located. Should a direct grant be 
approved, the Department shall promptly notify the State(s) affected.
    (3) If an eligible ITO includes population from more than one State, 
a proportionate amount of the grant will be paid from each State's 
allotment.
    (4) The receipt of title IV-B funds must be in addition to and not a 
substitute for funds otherwise previously expended by the ITO for child 
welfare services.

[[Page 390]]

    (5) The following fiscal and administrative requirements apply to 
Indian Tribal grants under this section:
    (i) Enforcement and termination. In the event of an Indian Tribe's 
failure to comply with the terms of the grant under title IV-B, subpart 
1, the provisions of 45 CFR 75.371 through 75.372 will apply.
    (ii) Matching or cost-sharing. Federal financial participation is 
available only if costs are incurred in implementing sections 422, 423, 
and 425 of the Act in accordance with the grants administration 
requirements of 45 CFR part 75 with the following conditions--
    (A) The ITO's contribution may be in cash, donated funds, and non-
public third party in-kind contributions.
    (B) The total of Federal funds used for the following purposes under 
title IV-B, subpart 1 may not exceed an amount equal to the FY 1979 
Federal payment under title IV-B:
    (1) Child day care necessary solely because of the employment, or 
training to prepare for employment, of a parent or other relative with 
whom the child involved is living, plus;
    (2) Foster care maintenance payments, plus;
    (3) Adoption assistance payments.
    (C) Notwithstanding paragraph (d)(5)(ii)(B) of this section, Tribal 
expenditures required to match the title IV-B, subpart 1 allotment may 
include foster care maintenance expenditures in any amount.
    (iii) Prohibition against purchase or construction of facilities. 
Funds awarded under title IV-B may not be used for the purchase or 
construction of facilities.
    (iv) Time limit on expenditures. Funds under title IV-B, subpart 1, 
must be expended by September 30 of the fiscal year following the fiscal 
year in which the funds were awarded.
    (6) In order to determine the amount of Federal funds available for 
a direct grant to an eligible ITO, the Department shall first divide the 
State's title IV-B allotment by the number of children in the State, 
then multiply the resulting amount by a multiplication factor determined 
by the Secretary, and then multiply that amount by the number of Indian 
children in the ITO population. The multiplication factor will be set at 
a level designed to achieve the purposes of the act and revised as 
appropriate.

[61 FR 58661, Nov. 18, 1996, as amended at 65 FR 4093, Jan. 25, 2000; 81 
FR 3023, Jan. 20, 2016]



Sec.  1357.50  Direct payments to Indian Tribal organizations 
(title IV-B, subpart 2, family preservation and support services).

    (a) Definitions.
    Alaska Native Organization means any organized group of Alaska 
Natives eligible to operate a Federal program under the Indian Self-
Determination Act (Pub. L. 93-638) or such group's designee as defined 
in section 482(i)(7)(A) of the Act.
    Indian Tribe means any Tribe, band, nation, or other organized group 
or community of Indians that is recognized as eligible for the special 
programs and services provided by the United States to Indians because 
of their status as Indians; and for which a reservation (including 
Indian reservations, public domain Indian allotments, and former Indian 
reservations in Oklahoma) exists.
    Tribal organization means the recognized governing body of the 
Indian Tribe.
    (b) Eligibility for funds: FY 1994. (1) Section 432(b)(2) of the Act 
provides that the Secretary may not approve a plan of an Indian Tribe 
whose FY 1995 allotment under subpart 2 would be less than $10,000. 
Therefore, only those Indian Tribes whose FY 1995 allotment is $10,000 
or more are eligible to receive funds beginning in FY 1994.
    (2) ACF will pay any amount to which an Indian Tribe is entitled to 
the Tribal organization of the Indian Tribe.
    (c) Eligibility for funds: FY 1995. In order to receive funds under 
title IV-B, subpart 2, in FY 1995, an Indian Tribe that is eligible for 
planning funds in FY 1994 must submit a Child and Family Services Plan 
that meets the applicable requirements in section 1357.15 of this Part.
    (d) Eligibility for funds: FY 1996 through FY 1998. (1) ACF will 
make grants to additional Indian Tribes in Fys 1996 through 1998 in the 
event that there are increased appropriations.

[[Page 391]]

    (2) Allotments will be calculated in Fys 1996, 1997, and 1998 as 
required in section 433 of the Act. Those Indian Tribes in each year 
whose allotment is at least $10,000 will be notified of their 
eligibility to apply.
    (3) In order to receive funds, additional Indian Tribes which become 
eligible for grants in FY 1996, 1997, and 1998 must submit either a five 
year Child and Family Services Plan (CFSP) that meets the applicable 
requirements of 45 CFR 1357.15 or an application for planning funds by 
June 30 of the year in which they first become eligible for grants. 
Those Indian Tribes which submitted an application for planning funds in 
their first year of funding must submit a five year CFSP that meets the 
applicable requirements of 45 CFR 1357.15 by June 30 of the second year 
they receive funding. For example, in order to receive funds, an Indian 
Tribe which becomes eligible to receive funding beginning in FY 1996 
must submit either an application for planning funds or a CFSP by June 
30, 1996. If the Indian Tribe submitted an application for planning 
funds in FY 1996, they must submit a CFSP by June 30, 1997.
    (4) All Indian Tribes will be Federally reimbursed at 75 percent of 
allowable expenditures. Federal funds without match are available in the 
first year of receipt of funds for additional Indian Tribes meeting the 
following criteria:
    (i) Submittal of an application for planning funds, and not a five 
year CFSP;
    (ii) Receipt of an initial award in FY 1996 or 1997 or 1998; and
    (iii) A proposal to spend the entire grant in the first year on 
planning.
    (e) Allotments. Allotments to Indian Tribes are computed based on 
section 433 of the Act and are based on a ratio of the number of 
children in each Indian Tribe with an approved plan compared to the 
number of children in all Indian Tribes with approved plans, based on 
the most current and reliable data available.
    (f) Exemptions of requirements. (1) ACF has exempted Indian Tribes 
from three statutory requirements:
    (i) The limitation on administrative costs to 10 percent of total 
Federal and Tribal funds--Indian Tribes may use the indirect cost rate 
agreement in effect for the Tribe;
    (ii) The requirement for maintenance of effort that funds under this 
program may not be used to supplant other Federal and non-Federal funds; 
and
    (iii) The requirement that a significant portion of funds must be 
used for both family support and family preservation services.
    (2) Specific exemptions from other statutory requirements may be 
requested by the Tribe in the course of its joint planning. Such a 
request must contain a compelling reason.
    (g) Matching requirement. (1) Funds used to provide services in FY 
1994 and in subsequent years will be federally reimbursed at 75 percent 
of allowable expenditures. (This is the same Federal financial 
participation rate as title IV-B, subpart 1.) The Indian Tribe's match 
must be at least 25 percent of the total project costs or one-third of 
the Federal share. Federal funds, however, will not exceed the amount of 
the Indian Tribe's allotment.
    (2) The Indian Tribe's contribution may be in cash, donated funds, 
and non-public third party in-kind contributions.
    (3) Indian Tribes, by statute, may use the following three Federal 
sources of funds as matching funds: Indian Child Welfare Act funds, 
Indian Self-Determination and Education Assistance Act funds, and 
Community Development Block Grant funds.
    (h) Time limits on expenditures. An Indian Tribe must expend all 
funds by September 30 of the fiscal year following the fiscal year in 
which the funds were awarded.

[61 FR 58662, Nov. 18, 1996]

[[Page 392]]



      SUBCHAPTER H_FAMILY VIOLENCE PREVENTION AND SERVICES PROGRAMS





PART 1370_FAMILY VIOLENCE PREVENTION AND SERVICES PROGRAMS--Table of Contents



                      Subpart A_General Provisions

Sec.
1370.1 What are the purposes of the Family Violence Prevention and 
          Services Act Programs?
1370.2 What definitions apply to these programs?
1370.3 What Government-wide and HHS-wide regulations apply to these 
          programs?
1370.4 What confidentiality requirements apply to these programs?
1370.5 What additional non-discrimination requirements apply to these 
          programs?
1370.6 What requirements for reports and evaluations apply to these 
          programs?

                Subpart B_State and Indian Tribal Grants

1370.10 What additional requirements apply to State and Indian Tribal 
          grants?

           Subpart C_State Domestic Violence Coalition Grants

1370.20 What additional requirements apply to State Domestic Violence 
          Coalitions?

              Subpart D_Discretionary Grants and Contracts

1370.30 What National Resource Center and Training and Technical 
          Assistance grant programs are available and what additional 
          requirements apply?
1370.31 What additional requirements apply to grants for specialized 
          services for abused parents and their children?
1370.32 What additional requirements apply to National Domestic Violence 
          Hotline grants?

    Authority: 42 U.S.C. 10401 et seq.

    Source: 81 FR 76471, Nov. 2, 2016, unless otherwise noted.



                      Subpart A_General Provisions



Sec.  1370.1  What are the purposes of the Family Violence Prevention 
and Services Act Programs?

    This part addresses sections 301 through 313 of the Family Violence 
Prevention and Services Act (FVPSA), as amended, and codified at 42 
U.S.C. 10401 et seq. FVPSA authorizes the Secretary to implement 
programs for the purposes of increasing public awareness about and 
preventing family violence, domestic violence, and dating violence; 
providing immediate shelter and supportive services for victims of 
family violence, domestic violence, and dating violence and their 
dependents; providing for technical assistance and training relating to 
family violence, domestic violence, and dating violence programs; 
providing for State Domestic Violence Coalitions; providing specialized 
services for abused parents and their children; and operating a national 
domestic violence hotline. FVPSA emphasizes both primary, and secondary, 
prevention of violence.



Sec.  1370.2  What definitions apply to these programs?

    For the purposes of this part:
    Dating violence means violence committed by a person who is or has 
been in a social relationship of a romantic or intimate nature with the 
victim and where the existence of such a relationship shall be 
determined based on a consideration of the following factors: The length 
of the relationship, the type of relationship, and the frequency of 
interaction between the persons involved in the relationship. This part 
of the definition reflects the definition also found in Section 40002(a) 
of VAWA (as amended), 42 U.S.C. 13925(a), as required by FVPSA. Dating 
violence also includes but is not limited to the physical, sexual, 
psychological, or emotional violence within a dating relationship, 
including stalking. It can happen in person or electronically, and may 
involve financial abuse or other forms of manipulation which may occur 
between a current or former dating partner regardless of actual or 
perceived sexual orientation or gender identity.
    Domestic violence means felony or misdemeanor crimes of violence 
committed by a current or former spouse or intimate partner of the 
victim, by a person with whom the victim shares a

[[Page 393]]

child in common, by a person who is cohabitating with or has cohabitated 
with the victim as a spouse or intimate partner, by a person similarly 
situated to a spouse of the victim under the domestic or family violence 
laws of the jurisdiction receiving grant monies, or by any other person 
against an adult or youth victim who is protected from that person's 
acts under the domestic or family violence laws of the jurisdiction. 
This definition also reflects the statutory definition of ``domestic 
violence'' found in Section 40002(a) of VAWA (as amended), 42 U.S.C. 
13925(a). This definition also includes but is not limited to criminal 
or non-criminal acts constituting intimidation, control, coercion and 
coercive control, emotional and psychological abuse and behavior, 
expressive and psychological aggression, financial abuse, harassment, 
tormenting behavior, disturbing or alarming behavior, and additional 
acts recognized in other Federal, Tribal State, and local laws as well 
as acts in other Federal regulatory or sub-regulatory guidance. This 
definition is not intended to be interpreted more restrictively than 
FVPSA and VAWA but rather to be inclusive of other, more expansive 
definitions. The definition applies to individuals and relationships 
regardless of actual or perceived sexual orientation or gender identity.
    Family violence means any act or threatened act of violence, 
including any forceful detention of an individual, that results or 
threatens to result in physical injury and is committed by a person 
against another individual, to or with whom such person is related by 
blood or marriage, or is or was otherwise legally related, or is or was 
lawfully residing.
    Personally identifying information (PII) or personal information is 
individually identifying information for or about an individual 
including information likely to disclose the location of a victim of 
domestic violence, dating violence, sexual assault, or stalking, 
regardless of whether the information is encoded, encrypted, hashed, or 
otherwise protected, including, a first and last name; a home or other 
physical address; contact information (including a postal, email or 
Internet protocol address, or telephone or facsimile number); a social 
security number, driver license number, passport number, or student 
identification number; and any other information, including date of 
birth, racial or ethnic background, or religious affiliation, that would 
serve to identify any individual.
    Primary prevention means strategies, policies, and programs to stop 
both first-time perpetration and first-time victimization. Primary 
prevention is stopping domestic and dating violence before they occur. 
Primary prevention includes, but is not limited to: School-based 
violence prevention curricula, programs aimed at mitigating the effects 
on children of witnessing domestic or dating violence, community 
campaigns designed to alter norms and values conducive to domestic or 
dating violence, worksite prevention programs, and training and 
education in parenting skills and self-esteem enhancement.
    Primary-purpose domestic violence service provider, for the term 
only as it appears in the definition of State Domestic Violence 
Coalition, means an entity that operates a project of demonstrated 
effectiveness carried out by a nonprofit, nongovernmental, private 
entity, Tribe, or Tribal organization, that has as its project's 
primary-purpose the operation of shelters and supportive services for 
victims of domestic violence and their dependents; or has as its 
project's primary purpose counseling, advocacy, or self-help services to 
victims of domestic violence. Territorial Domestic Violence Coalitions 
may include government-operated domestic violence projects as primary-
purpose domestic violence service providers for complying with the 
membership requirement, provided that Territorial Coalitions can 
document providing training, technical assistance, and capacity-building 
of community-based and privately operated projects to provide shelter 
and supportive services to victims of family, domestic, or dating 
violence, with the intention of recruiting such projects as members once 
they are sustainable as primary-purpose domestic violence service 
providers.
    Secondary prevention is identifying risk factors or problems that 
may lead to future family, domestic, or dating

[[Page 394]]

violence, and taking the necessary actions to eliminate the risk factors 
and the potential problem, and may include, but are not limited to, 
healing services for children and youth who have been exposed to 
domestic or dating violence, home visiting programs for high-risk 
families, and screening programs in health care settings.
    Shelter means the provision of temporary refuge in conjunction with 
supportive services in compliance with applicable State or Tribal law or 
regulations governing the provision, on a regular basis, of shelter, 
safe homes, meals, and supportive services to victims of family 
violence, domestic violence, or dating violence, and their dependents. 
State and Tribal law governing the provision of shelter and supportive 
services on a regular basis is interpreted by ACF to mean, for example, 
the laws and regulations applicable to zoning, fire safety, and other 
regular safety, and operational requirements, including State, Tribal, 
or local regulatory standards for certifying domestic violence advocates 
who work in shelter. This definition also includes emergency shelter and 
immediate shelter, which may include housing provision, rental 
subsidies, temporary refuge, or lodging in properties that could be 
individual units for families and individuals (such as apartments) in 
multiple locations around a local jurisdiction, Tribe/reservation, or 
State; such properties are not required to be owned, operated, or leased 
by the program. Temporary refuge includes a residential service, 
including shelter and off-site services such as hotel or motel vouchers 
or individual dwellings, which is not transitional or permanent housing, 
but must also provide comprehensive supportive services. The mere act of 
making a referral to shelter or housing shall not itself be considered 
provision of shelter. Should other jurisdictional laws conflict with 
this definition of temporary refuge, the definition which provides more 
expansive housing accessibility governs.
    State means each of the several States, the District of Columbia, 
the Commonwealth of Puerto Rico, and, except as otherwise provided in 
statute, Guam, American Samoa, the United States Virgin Islands, and the 
Commonwealth of the Northern Mariana Islands.
    State Domestic Violence Coalition means a Statewide, 
nongovernmental, nonprofit 501(c)(3) organization whose membership 
includes a majority of the primary-purpose domestic violence service 
providers in the State; whose board membership is representative of 
these primary-purpose domestic violence service providers and which may 
include representatives of the communities in which the services are 
being provided in the State; that has as its purpose to provide 
education, support, and technical assistance to such service providers 
to enable the providers to establish and maintain supportive services 
and to provide shelter to victims of domestic violence and their 
children; and that serves as an information clearinghouse, primary point 
of contact, and resource center on domestic violence for the State and 
supports the development of policies, protocols and procedures to 
enhance domestic violence intervention and prevention in the State/
Territory.
    Supportive services means services for adult and youth victims of 
family violence, domestic violence, or dating violence, and their 
dependents that are designed to meet the needs of such victims and their 
dependents for short-term, transitional, or long-term safety and 
recovery. Supportive services include, but are not limited to: Direct 
and/or referral-based advocacy on behalf of victims and their 
dependents, counseling, case management, employment services, referrals, 
transportation services, legal advocacy or assistance, child care 
services, health, behavioral health and preventive health services, 
culturally and linguistically appropriate services, and other services 
that assist victims or their dependents in recovering from the effects 
of the violence. To the extent not already described in this definition, 
supportive services also include but are not limited to other services 
identified in FVPSA at 42 U.S.C. 10408(b)(1)(A)-(H). Supportive services 
may be directly provided by grantees and/or by providing advocacy or 
referrals to assist victims in accessing such services.
    Underserved populations means populations who face barriers in 
accessing

[[Page 395]]

and using victim services, and includes populations underserved because 
of geographic location, religion, sexual orientation, gender identity, 
underserved racial and ethnic populations, and populations underserved 
because of special needs including language barriers, disabilities, 
immigration status, and age. Individuals with criminal histories due to 
victimization and individuals with substance use disorders and mental 
health issues are also included in this definition. The reference to 
racial and ethnic populations is primarily directed toward racial and 
ethnic minority groups (as defined in section 1707(g) of the Public 
Health Service Act (42 U.S.C. 300(u-6)(g)), which means American Indians 
(including Alaska Natives, Eskimos, and Aleuts); Asian American; Native 
Hawaiians and other Pacific Islanders; Blacks and Hispanics. The term 
``Hispanic'' or ``Latino'' means individuals whose origin is Mexican, 
Puerto Rican, Cuban, Central or South American, or any other Spanish-
speaking country. This underserved populations' definition also includes 
other population categories determined by the Secretary or the 
Secretary's designee to be underserved.



Sec.  1370.3  What Government-wide and HHS-wide regulations apply 
to these programs?

    (a) A number of government-wide and HHS regulations apply or 
potentially apply to all grantees. These include but are not limited to:
    (1) 2 CFR part 182--Government-wide Requirements for Drug Free 
Workplaces;
    (2) 2 CFR part 376--Nonprocurement Debarment and Suspension;
    (3) 45 CFR part 16--Procedures of the Departmental Grant Appeals 
Board;
    (4) 45 CFR part 30--Claims Collection;
    (5) 45 CFR part 46--Protection of Human Subjects;
    (6) 45 CFR part 75--Uniform Administrative Requirements, Cost 
Principles and Audit Requirements for HHS Awards
    (7) 45 CFR part 80--Nondiscrimi-nation Under Programs Receiving 
Federal Assistance Through the Department of Health and Human Services 
Effectuation of Title VI of the Civil Rights Act of 1964;
    (8) 45 CFR part 81--Practice and Procedure for Hearings under part 
80;
    (9) 45 CFR part 84--Nondiscrimi-nation on the Basis of Handicap in 
Programs or Activities Receiving Federal Financial Assistance;
    (10) 45 CFR part 86--Nondiscrimi-nation on the Basis of Sex in 
Education Programs or Activities Receiving Federal Financial Assistance;
    (11) 45 CFR part 87--Equal Treatment for Faith-Based Organizations;
    (12) 45 CFR part 91--Nondiscrimi-nation on the Basis of Age in 
Programs or Activities Receiving Federal Financial Assistance for HHS;
    (13) 45 CFR part 92--Nondiscrimi-nation in Health Programs and 
Activities; and
    (14) 45 CFR part 93--New Restrictions on Lobbying.
    (b) A number of government-wide and HHS regulations apply to all 
contractors. These include but are not limited to:
    (15) 48 CFR Chapter 1--Federal Acquisition Regulations; and
    (16) 48 CFR Chapter 3--Federal Acquisition Regulations--Department 
of Health and Human Services.



Sec.  1370.4  What confidentiality requirements apply to these programs?

    (a) In order to ensure the safety of adult, youth, and child victims 
of family violence, domestic violence, or dating violence, and their 
families, grantees and subgrantees under FVPSA shall protect the 
confidentiality and privacy of such victims and their families. Subject 
to paragraphs (c), (d), and (e) of this section, grantees and 
subgrantees shall not--
    (1) Disclose any personally identifying information (as defined in 
Sec.  1370.2) collected in connection with services requested (including 
services utilized or denied) through grantees' and subgrantees' 
programs;
    (2) Reveal any personally identifying information without informed, 
written, reasonably time-limited consent by the person about whom 
information is sought, whether for this program or any other Federal, 
Tribal or State

[[Page 396]]

grant program, including but not limited to whether to comply with 
Federal, Tribal, or State reporting, evaluation, or data collection 
requirements; or
    (3) Require an adult, youth, or child victim of family violence, 
domestic violence, and dating violence to provide a consent to release 
his or her personally identifying information as a condition of 
eligibility for the services provided by the grantee or subgrantee.
    (b) Consent shall be given by the person, except in the case of an 
unemancipated minor it shall be given by both the minor and the minor's 
parent or guardian; or in the case of an individual with a guardian it 
shall be given by the individual's guardian. A parent or guardian may 
not give consent if: he or she is the abuser or suspected abuser of the 
minor or individual with a guardian; or, the abuser or suspected abuser 
of the other parent of the minor. If a minor or a person with a legally 
appointed guardian is permitted by law to receive services without the 
parent's or guardian's consent, the minor or person with a guardian may 
release information without additional consent. Reasonable 
accommodations shall also be made for those who may be unable, due to 
disability or other functional limitation, to provide consent in 
writing.
    (c) If the release of information described in paragraphs (a) and 
(b) of this section is compelled by statutory or court mandate:
    (1) Grantees and sub-grantees shall make reasonable attempts to 
provide notice to victims affected by the release of the information; 
and
    (2) Grantees and subgrantees shall take steps necessary to protect 
the privacy and safety of the persons affected by the release of the 
information.
    (d) Grantees and subgrantees may share:
    (1) Non-personally identifying information, in the aggregate, 
regarding services to their clients and demographic non-personally 
identifying information in order to comply with Federal, State, or 
Tribal reporting, evaluation, or data collection requirements;
    (2) Court-generated information and law enforcement-generated 
information contained in secure, governmental registries for protective 
order enforcement purposes; and
    (3) Law enforcement- and prosecution-generated information necessary 
for law enforcement and prosecution purposes.
    (4) Personally identifying information may be shared with a health 
care provider or payer, but only with the informed, written, reasonably 
time-limited consent of the person about whom such information is 
sought.
    (e) Nothing in this section prohibits a grantee or subgrantee, where 
mandated or expressly permitted by the State or Indian Tribe, from 
reporting abuse and neglect, as those terms are defined by law, or from 
reporting imminent risk of serious bodily injury or death of the victim 
or another person.
    (f) Nothing in this section shall be construed to supersede any 
provision of any Federal, State, Tribal, or local law that provides 
greater protection than this section for victims of family violence, 
domestic violence, or dating violence.
    (g) The address or location of any shelter facility assisted that 
maintains a confidential location shall, except with written 
authorization of the person or persons responsible for the operation of 
such shelter, not be made public.
    (1) Shelters which choose to remain confidential pursuant to this 
rule must develop and maintain systems and protocols to remain secure, 
which must include policies to respond to disruptive or dangerous 
contact from abusers, and
    (2) Tribal governments, while exercising due diligence to comply 
with statutory provisions and this rule, may determine how best to 
maintain the safety and confidentiality of shelter locations.



Sec.  1370.5  What additional non-discrimination requirements apply 
to these programs?

    (a) No person shall on the ground of actual or perceived sex, 
including gender identity, be excluded from participation in, be denied 
the benefits of, or be subject to discrimination under, any program or 
activity funded in whole or in part through FVPSA.
    (1) FVPSA grantees and subgrantees must provide comparable services 
to

[[Page 397]]

victims regardless of actual or perceived sex, including gender 
identity. This includes not only providing access to services for all 
victims, including male victims, of family, domestic, and dating 
violence regardless of actual or perceived sex, including gender 
identity, but also making sure not to limit services for victims with 
adolescent children (under the age of 18) on the basis of the actual or 
perceived sex, including gender identity, of the children. Victims and 
their minor children must be sheltered or housed together, regardless of 
actual or perceived sex, including gender identity, unless requested 
otherwise or unless the factors or considerations identified in Sec.  
1370.5(a)(2) require an exception to this general rule.
    (2) No such program or activity is required to include an individual 
in such program or activity without taking into consideration that 
individual's sex in those certain instances where sex is a bona fide 
occupational qualification or a programmatic factor reasonably necessary 
to the essential operation of that particular program or activity. If 
sex segregation or sex-specific programming is essential to the normal 
or safe operation of the program, nothing in this paragraph shall 
prevent any such program or activity from consideration of an 
individual's sex. In such circumstances, grantees and subgrantees may 
meet the requirements of this paragraph by providing comparable services 
to individuals who cannot be provided with the sex-segregated or sex-
specific programming, including access to a comparable length of stay, 
supportive services, and transportation as needed to access services. If 
a grantee or subgrantee determines that sex-segregated or sex-specific 
programming is essential for the normal or safe operation of the 
program, it must support its justification with an assessment of the 
facts and circumstances surrounding the specific program, including an 
analysis of factors discussed in paragraph (a)(3) of this section, and 
take into account established field-based best practices and research 
findings, as applicable. The justification cannot rely on unsupported 
assumptions or overly-broad sex-based generalizations. An individual 
must be treated consistent with their gender identity in accordance with 
this section.
    (3) Factors that may be relevant to a grantee's or subgrantee's 
evaluation of whether sex-segregated or sex-specific programming is 
essential to the normal or safe operations of the program include, but 
are not limited, to the following: The nature of the service, the 
anticipated positive and negative consequences to all eligible 
beneficiaries of not providing the program in a sex-segregated or sex-
specific manner, the literature on the efficacy of the service being 
sex-segregated or sex-specific, and whether similarly-situated grantees 
and subgrantees providing the same services have been successful in 
providing services effectively in a manner that is not sex-segregated or 
sex-specific. A grantee or subgrantee may not provide sex-segregated or 
sex-specific services for reasons that are trivial or based on the 
grantee's or subgrantee's convenience.
    (4) As with all individuals served, transgender and gender 
nonconforming individuals must have equal access to FVPSA-funded shelter 
and nonresidential programs. Programmatic accessibility for transgender 
and gender nonconforming survivors and minor children must be afforded 
to meet individual needs consistent with the individual's gender 
identity. ACF requires that a FVPSA grantee or subgrantee that makes 
decisions about eligibility for or placement into single-sex emergency 
shelters or other facilities offer every individual an assignment 
consistent with their gender identity. For the purpose of assigning a 
service beneficiary to sex-segregated or sex-specific services, the 
grantee/subgrantee may ask a beneficiary which group or services the 
beneficiary wishes to join. The grantee/subgrantee may not, however, ask 
questions about the beneficiary's anatomy or medical history or make 
demands for identity documents or other documentation of gender. A 
victim's/beneficiary's or potential victim's/beneficiary's request for 
an alternative or additional accommodation for purposes of personal 
health, privacy, or safety must be given serious consideration in making 
the placement. For instance, if the potential

[[Page 398]]

victim/beneficiary requests to be placed based on his or her sex 
assigned at birth, ACF requires that the provider will place the 
individual in accordance with that request, consistent with health, 
safety, and privacy concerns of the individual. ACF also requires that a 
provider will not make an assignment or re-assignment of the transgender 
or gender nonconforming individual based on complaints of another person 
when the sole stated basis of the complaint is a victim/client or 
potential victim/client's non-conformance with gender stereotypes or 
sex, including gender identity.
    (b) An organization that participates in programs funded through the 
FVPSA shall not, in providing services, discriminate against a program 
beneficiary or prospective program beneficiary on the basis of religion, 
a religious belief, a refusal to hold a religious belief, or a refusal 
to attend or participate in a religious practice.
    (1) Dietary practices dictated by particular religious beliefs may 
require reasonable accommodation in cooking or feeding arrangements for 
particular beneficiaries as practicable. Additionally, other forms of 
religious practice may require reasonable accommodation including, but 
not limited to, shelters that have cleaning schedules may need to 
account for a survivor's religion which prohibits him/her from working 
on religious holidays.
    (c) No person shall on the ground of actual or perceived sexual 
orientation be excluded from participation in, be denied the benefits 
of, or be subject to discrimination under, any program or activity 
funded in whole or in part through FVPSA.
    (1) All programs must take into account participants' needs and be 
inclusive and not stigmatize participants based on actual or perceived 
sexual orientation.
    (d) All FVPSA-funded services must be provided without requiring 
documentation of immigration status because HHS has determined that 
FVPSA-funded services do not fall within the definition of federal 
public benefit that would require verification of immigration status.
    (e) Grantees and subgrantees should create a plan to ensure 
effective communication and equal access, including:
    (1) How to identify and communicate with individuals with Limited 
English Proficiency, and how to identify and properly use qualified 
interpretation and translation services, and taglines; and
    (2) How to take appropriate steps to ensure that communications with 
applicants, participants, beneficiaries, members of the public, and 
companions with disabilities are as effective as communications with 
others; and furnish appropriate auxiliary aids and services where 
necessary to afford qualified individuals with disabilities, including 
applicants, participants, beneficiaries, and members of the public, an 
equal opportunity to participate in, and enjoy the benefits of, a 
service, program, or activity. Auxiliary aids and services include 
qualified interpreters and large print materials.
    (f) Nothing in this section shall be construed to invalidate or 
limit the rights, remedies, procedures, or legal standards available to 
individuals under other applicable law.
    (g) The Secretary shall enforce the provisions of paragraphs (a) and 
(b) of this section in accordance with section 602 of the Civil Rights 
Act of 1964 (42 U.S.C. 2000d-1). Section 603 of the Civil Rights Act of 
1964 (42 U.S.C. 2000d-2) shall apply with respect to any action taken by 
the Secretary to enforce this section.



Sec.  1370.6  What requirements for reports and evaluations apply 
to these programs?

    Each entity receiving a grant or contract under these programs shall 
submit a performance report to the Secretary at such time as required by 
the Secretary. Such performance report shall describe the activities 
that have been carried out, contain an evaluation of the effectiveness 
of such activities, and provide such additional information as the 
Secretary may require. Territorial governments which consolidate FVPSA 
funds with other HHS funds in a Consolidated Block Grant pursuant to 45 
CFR part 97 are not required to submit annual FVPSA performance

[[Page 399]]

progress reports and programmatic assurances if FVPSA funds are not 
designated in the consolidation application for FVPSA purposes. If a 
territorial government either does not consolidate FVPSA funds with 
other HHS funds or does consolidate but indicates that FVPSA funds will 
be used for FVPSA purposes, the territorial government must submit an 
annual FVPSA performance progress report and programmatic assurances to 
FYSB.



                Subpart B_State and Indian Tribal Grants



Sec.  1370.10  What additional requirements apply to State 
and Indian Tribal grants?

    (a) These grants assist States and Tribes to support the 
establishment, maintenance, and expansion of programs and projects to 
prevent incidents of family violence, domestic violence, and dating 
violence; to provide immediate shelter, supportive services, and access 
to community-based programs for victims of family violence, domestic 
violence, or dating violence, and their dependents; and to provide 
specialized services for children exposed to family violence, domestic 
violence, or dating violence, including victims who are members of 
underserved populations. States must consult with and provide for the 
participation of State Domestic Violence Coalitions and Tribal 
Coalitions in the planning and monitoring of the distribution and 
administration of subgrant programs and projects. At a minimum to 
further FVPSA requirements, States and State Domestic Violence 
Coalitions will work together to determine grant priorities based upon 
jointly identified needs; to identify strategies to address needs; to 
define mutual expectations regarding programmatic performance and 
monitoring; and to implement an annual collaboration plan that 
incorporates concrete steps for accomplishing these tasks. If States 
also fund State Domestic Violence Coalitions to provide training, 
technical assistance, or other programming, nothing in this rule is 
intended to conflict with State contracting requirements regarding 
conflicts of interest but rather that this rule's requirements should be 
interpreted to complement States' contracting and procurement laws and 
regulations. States must involve community-based organizations that 
primarily serve underserved populations, including culturally- and 
linguistically-specific populations, to determine how such populations 
can assist the States in serving the unmet needs of underserved 
populations and culturally- and linguistically-specific populations. 
Tribes should be involved in these processes where appropriate, but this 
rule is not intended to encroach upon Tribal sovereignty. States also 
must consult with and provide for the participation of State Domestic 
Violence Coalitions and Tribal Coalitions in State planning and 
coordinate such planning with needs assessments to identify service gaps 
or problems and develop appropriate responsive plans and programs. 
Similar coordination and collaboration processes for Tribes and State 
Domestic Violence Coalitions are expected when feasible and appropriate 
with deference to Tribal sovereignty as previously indicated.
    (b) A State application must be submitted by the Chief Executive of 
the State and signed by the Chief Executive Officer or the Chief Program 
Official designated as responsible for the administration of FVPSA. Each 
application must contain the following information or documentation:
    (1) The name of the State agency, the name and contact information 
for the Chief Program Official designated as responsible for the 
administration of funds under FVPSA and coordination of related programs 
within the State, and the name and contact information for a contact 
person if different from the Chief Program Official;
    (2) A plan describing in detail how the needs of underserved 
populations will be met, including:
    (i) Identification of which populations in the State are 
underserved, a description of those that are being targeted for outreach 
and services, and a brief explanation of why those populations were 
selected to receive outreach and services, including how often the State 
revisits the identification and selection of the populations to be 
served with FVPSA funding. States

[[Page 400]]

must review their State demographics and other relevant metrics at least 
every three years or explain why this process is unnecessary;
    (ii) A description of the outreach plan, including the domestic 
violence training to be provided, the means for providing technical 
assistance and support, and the leadership role played by those 
representing and serving the underserved populations in question;
    (iii) A description of the specific services to be provided or 
enhanced, such as new shelters or services, improved access to shelters 
or services, or new services for underserved populations; and
    (iv) A description of the public information component of the 
State's outreach program, including the elements of the program that are 
used to explain domestic violence, the most effective and safe ways to 
seek help, and tools to identify available resources; and
    (v) A description of the means by which the program will provide 
meaningful access for limited English proficient individuals and 
effective communication for individuals with disabilities.
    (3) A description of the process and procedures used to involve the 
State Domestic Violence Coalition and Tribal Coalition where one exists, 
knowledgeable individuals, and interested organizations, including those 
serving or representing underserved populations in the State planning 
process;
    (4) Documentation of planning, consultation with and participation 
of the State Domestic Violence Coalition and Tribal Coalition where one 
exists, in the administration and distribution of FVPSA programs, 
projects, and grant funds awarded to the State;
    (5) A description of the procedures used to assure an equitable 
distribution of grants and grant funds within the State and between 
urban and rural areas. States may use one of the Census definitions of 
rural or non-metro areas or another State-determined definition. A 
State-determined definition must be supported by data and be available 
for public input prior to its adoption. The State must show that the 
definition selected achieves an equitable distribution of funds within 
the State and between urban and rural areas. The plan should describe 
how funding processes and allocations will address the needs of 
underserved populations as defined in Sec.  1370.2, including Tribal 
populations, with an emphasis on funding organizations that can meet 
unique needs including culturally- and linguistically-specific 
populations. Other Federal, State, local, and private funds may be 
considered in determining compliance;
    (6) A description of:
    (i) how the State plans to use the grant funds including a State 
plan developed in consultation with State and Tribal Domestic Violence 
Coalitions and representatives of underserved populations;
    (ii) the target populations;
    (iii) the number of shelters and programs providing shelter to be 
funded;
    (iv) the number of non-residential programs to be funded; the 
services the State will provide; and
    (v) the expected results from the use of the grant funds. To fulfill 
these requirements, it is critically important that States work with 
State Domestic Violence Coalitions and Tribes to solicit their feedback 
on program effectiveness which may include recommendations such as 
establishing program standards and participating in program monitoring;
    (7) An assurance that the State has a law or procedure to bar an 
abuser from a shared household or a household of the abused person, 
which may include eviction laws or procedures, where appropriate;
    (8) An assurance that not less than 70 percent of the funds 
distributed by a State to sub-recipients shall be distributed to 
entities for the primary purpose of providing immediate shelter and 
supportive services to adult and youth victims of family violence, 
domestic violence, or dating violence, and their dependents, and that 
not less than 25 percent of the funds distributed by a State to 
subgrantees/recipients shall be distributed to entities for the purpose 
of providing supportive services and prevention services (these 
percentages may overlap with respect to supportive services but are not 
included in the 5 percent cap applicable to State administrative costs). 
In the distribution of funds, States will give

[[Page 401]]

special emphasis to the support of community-based projects of 
demonstrated effectiveness that are carried out by primary-purpose 
domestic violence providers. No grant shall be made under this section 
to an entity other than a State unless the entity agrees that, with 
respect to the costs to be incurred by the entity in carrying out the 
program or project for which the grant is awarded, the entity will make 
available (directly or through donations from public or private 
entities) non-Federal contributions in an amount that is not less than 
$1 for every $5 of Federal funds provided under the grant. The non-
Federal contributions required under this paragraph may be in cash or in 
kind;
    (9) Documentation of policies, procedures and protocols that ensure 
individual identifiers of client records will not be used when providing 
statistical data on program activities and program services or in the 
course of grant monitoring, that the confidentiality of records 
pertaining to any individual provided family violence, domestic 
violence, or dating violence prevention or intervention services by any 
program or entity supported under the FVPSA will be strictly maintained, 
and the address or location of any shelter supported under the FVPSA 
will not be made public without the written authorization of the person 
or persons responsible for the operation of such shelter;
    (10) Such additional agreements, assurances, and information, in 
such form, and submitted in such manner as the Funding Opportunity 
Announcement and related program guidance prescribe. Moreover, 
additional agreements, assurances, and information required by the 
Funding Opportunity Announcement and other program guidance will include 
that no requirement for participating in supportive services offered by 
FVPSA-funded programs may be imposed by grantees or subgrantees for the 
receipt of emergency shelter and receipt of all supportive services 
shall be voluntary. Similarly, the receipt of shelter cannot be 
conditioned on participation in other services, such as, but not limited 
to counseling, parenting classes, mental health or substance use 
disorders treatment, pursuit of specific legal remedies, or life skill 
classes. Additionally, programs cannot impose conditions for admission 
to shelter by applying inappropriate screening mechanisms, such as 
criminal background checks, sobriety requirements, requirements to 
obtain specific legal remedies, or mental health or substance use 
disorder screenings. An individual's or family's stay in shelter cannot 
be conditioned upon accepting or participating in services. Based upon 
the capacity of a FVPSA-funded service provider, victims and their 
dependents do not need to reside in shelter to receive supportive 
services. Nothing is these requirements prohibits a shelter operator 
from adopting reasonable policies and procedures reflecting field-based 
best practices, to ensure that persons receiving services are not 
currently engaging in illegal drug use, if that drug use presents a 
danger to the safety of others, creates an undue hardship for the 
shelter operator, or causes a fundamental alteration to the operator's 
services. In the case of an apparent conflict with State, Federal, or 
Tribal laws, case-by-case determinations will be made by ACF if they are 
not resolved at the State or Tribal level. In general, when two or more 
laws apply, a grantee/subgrantee must meet the highest standard for 
providing programmatic accessibility to victims and their dependents. 
These provisions are not intended to deny a shelter the ability to 
manage its services and secure the safety of all shelter residents 
should, for example, a client become violent or abusive to other 
clients.
    (c) An application from a Tribe or Tribal Organization must include 
documentation demonstrating that the governing body of the organization 
on whose behalf the application is submitted approves the application's 
submission to ACF for the current FVPSA grant period. Each application 
must contain the following information or documentation:
    (1) Written Tribal resolutions, meeting minutes from the governing 
body, and/or letters from the authorizing official reflecting approval 
of the application's submittal, depending on what

[[Page 402]]

is appropriate for the applicant's governance structure. Such 
documentation must reflect the applicant's authority to submit the 
application on behalf of members of the Tribes and administer programs 
and activities pursuant to FVPSA;
    (2) The resolution or equivalent documentation must specify the 
name(s) of the Tribe(s) on whose behalf the application is submitted and 
the service areas for the intended grant services;
    (3) Applications from consortia must provide letters of commitment, 
memoranda of understanding, or their equivalent identifying the primary 
applicant that is responsible for administering the grant, documenting 
commitments made by partnering eligible applicants, and describing their 
roles and responsibilities as partners in the consortia or 
collaboration;
    (4) A description of the procedures designed to involve 
knowledgeable individuals and interested organizations in providing 
services under the FVPSA. For example, knowledgeable individuals and 
interested organizations may include Tribal officials or social services 
staff involved in child abuse or family violence prevention, Tribal law 
enforcement officials, representatives of Tribal or State Domestic 
Violence Coalitions, and operators of domestic violence shelters and 
service programs;
    (5) A description of the applicant's operation of and/or capacity to 
carry out a family violence prevention and services program. This might 
be demonstrated in ways such as:
    (i) The current operation of a shelter, safe house, or domestic 
violence prevention program;
    (ii) The establishment of joint or collaborative service agreements 
with a local public agency or a private, non- profit agency for the 
operation of family violence prevention and intervention activities or 
services; or
    (iii) The operation of social services programs as evidenced by 
receipt of grants or contracts awarded under Indian Child Welfare grants 
from the Bureau of Indian Affairs; Child Welfare Services grants under 
Title IV-B of the Social Security Act; or Family Preservation and Family 
Support grants under Title IV-B of the Social Security Act.
    (6) A description of the services to be provided, how the applicant 
organization plans to use the grant funds to provide the direct 
services, to whom the services will be provided, and the expected 
results of the services;
    (7) An assurance that the Indian Tribe has a law or procedure to bar 
an abuser from a shared household or a household of the abused person, 
which may include eviction laws or procedures, where appropriate;
    (8) Documentation of the policies and procedures developed and 
implemented, including copies of the policies and procedures, to ensure 
that individual identifiers of client records will not be used when 
providing statistical data on program activities and program services or 
in the course of grant monitoring and that the confidentiality of 
records pertaining to any individual provided domestic violence 
prevention or intervention services by any FVPSA-supported program will 
be strictly maintained; and
    (9) Such agreements, assurances, and information, in such form, and 
submitted in such manner as the Funding Opportunity Announcement and 
related program guidance prescribe.
    (d) Given the unique needs of victims of trafficking, FVPSA-funded 
programs are strongly encouraged to safely screen for and identify 
victims of human trafficking who are also victims or survivors of 
domestic violence or dating violence and provide services that support 
their unique needs.



           Subpart C_State Domestic Violence Coalition Grants



Sec.  1370.20  What additional requirements apply to State 
Domestic Violence Coalitions?

    (a) State Domestic Violence Coalitions reflect a Federal commitment 
to reducing domestic violence; to urge States, localities, cities, and 
the private sector to improve the responses to and the prevention of 
domestic violence and encourage stakeholders and service providers to 
plan toward an integrated service delivery approach that meets the needs 
of all victims, including those in underserved communities; to provide 
for technical assistance and training relating to domestic violence

[[Page 403]]

programs; and to increase public awareness about and prevention of 
domestic violence and increase the quality and availability of shelter 
and supportive services for victims of domestic violence and their 
dependents.
    (b) To be eligible to receive a grant under this section, an 
organization shall be a Statewide, non-governmental, non-profit 
501(c)(3) domestic violence coalition, designated as such by the 
Department. To obtain this designation the organization must meet the 
following criteria:
    (1) The membership must include representatives from a majority of 
the primary-purpose domestic violence service providers operating within 
the State (a Coalition also may include representatives of Indian Tribes 
and Tribal organizations as defined in the Indian Self-Determination and 
Education Assistance Act);
    (2) The Board membership of the Coalition must be representative of 
such programs, and may include representatives of communities in which 
the services are being provided in the State;
    (3) Financial sustainability of State Domestic Violence Coalitions, 
as independent, autonomous non-profit organizations, also must be 
supported by their membership, including those member representatives on 
the Coalitions' Boards of Directors;
    (4) The purpose of a State Domestic Violence Coalition is to provide 
education, support, and technical assistance to such service providers 
to enable the providers to establish and maintain shelter and supportive 
services for victims of domestic violence and their dependents; and to 
serve as an information clearinghouse, primary point of contact, and 
resource center on domestic violence for the State; and support the 
development of polices, protocols, and procedures to enhance domestic 
violence intervention and prevention in the State.
    (c) To apply for a grant under this section, an organization shall 
submit an annual application that:
    (1) Includes a complete description of the applicant's plan for the 
operation of a State Domestic Violence Coalition, including 
documentation that the Coalition's work will demonstrate the capacity to 
support state-wide efforts to improve system responses to domestic and 
dating violence as outlined in (c)(1)(i) through (vii) of this section. 
Coalitions must also have documented experience in administering Federal 
grants to conduct the activities of a Coalition or a documented history 
of active participation in:
    (i) Working with local family violence, domestic violence, and 
dating violence service programs and providers of direct services to 
encourage appropriate and comprehensive responses to family violence, 
domestic violence, and dating violence against adults or youth within 
the State involved, including providing training and technical 
assistance and conducting State needs assessments and participate in 
planning and monitoring of the distribution of subgrants within the 
States and in the administration of grant programs and projects;
    (ii) In conducting needs assessments, Coalitions and States must 
work in partnership on the statutorily required FVPSA State planning 
process to involve representatives from underserved populations and 
culturally- and linguistically-specific populations to plan, assess and 
voice the needs of the communities they represent. Coalitions will 
assist States in identifying underserved populations and culturally- and 
linguistically- specific community based organizations in State planning 
and to work with States to unify planning and needs assessment efforts 
so that comprehensive and culturally-specific services are provided. The 
inclusion of the populations targeted will emphasize building the 
capacity of culturally- and linguistically-specific services and 
programs.
    (iii) Working in collaboration with service providers and community-
based organizations to address the needs of family violence, domestic 
violence, and dating violence victims, and their dependents, who are 
members of underserved populations and culturally- and linguistically-
specific populations;
    (iv) Collaborating with and providing information to entities in 
such fields as housing, health care, mental health, social welfare, or 
business to support the development and implementation

[[Page 404]]

of effective policies, protocols, and programs that address the safety 
and support needs of adult and youth victims of family violence, 
domestic violence, or dating violence;
    (v) Encouraging appropriate responses to cases of family violence, 
domestic violence, or dating violence against adults or youth, including 
by working with judicial and law enforcement agencies;
    (vi) Working with family law judges, criminal court judges, child 
protective service agencies, and children's advocates to develop 
appropriate responses to child custody and visitation issues in cases of 
child exposure to family violence, domestic violence, or dating violence 
and in cases in which family violence, domestic violence, or dating 
violence is present and child abuse is present;
    (vii) Providing information to the public about prevention of family 
violence, domestic violence, and dating violence, including information 
targeted to underserved populations, including limited English 
proficient individuals; and
    (viii) Collaborating with Indian Tribes and Tribal organizations 
(and corresponding Native Hawaiian groups or communities) to address the 
needs of Indian (including Alaska Native) and Native Hawaiian victims of 
family violence, domestic violence, or dating violence, as applicable in 
the State;
    (2) Contains such agreements, assurances, and information, in such 
form, and submitted in such manner as the Funding Opportunity 
Announcement and related program guidance prescribe.
    (d) Nothing in this section limits the ability of a Coalition to use 
non-Federal or other Federal funding sources to conduct required 
functions, provided that if the Coalition uses funds received under 
section 2001(c)(1) of the Omnibus Crime Control and Safe Streets Act of 
1968 to perform the functions described in FVPSA at 42 U.S.C. 10411(e) 
in lieu of funds provided under the FVPSA, it shall provide an annual 
assurance to the Secretary that it is using such funds, and that it is 
coordinating the activities conducted under this section with those of 
the State's activities under Part T of title I of the Omnibus Crime 
Control and Safe Streets Act of 1968.
    (e) In cases in which two or more organizations seek designation, 
the designation of each State's individual Coalition is within the 
exclusive discretion of HHS. HHS will determine which applicant best 
fits statutory criteria, with particular attention paid to the 
applicant's documented history of effective work, support of primary-
purpose domestic violence service providers and programs that serve 
underserved populations, coordination and collaboration with the State 
government, and capacity to accomplish the FVPSA-mandated role of a 
Coalition.
    (f) Regarding FVPSA funding, in cases where a Coalition financially 
or otherwise dissolves, is newly formed, or merges with another entity, 
the designation of a new Coalition is within the exclusive discretion of 
HHS. HHS will seek individual feedback from domestic violence service 
providers, community stakeholders, State leaders, and representatives of 
underserved populations and culturally- and linguistically-specific 
populations to identify an existing organization that can serve as the 
Coalition or to develop a new organization. The new Coalition must 
reapply for designation and funding following steps determined by the 
Secretary. HHS will determine whether the applicant fits the statutory 
criteria, with particular attention paid to the applicant's documented 
history of effective work, support of primary-purpose domestic violence 
programs and programs that serve underserved populations, coordination 
and collaboration with the State government, and capacity to accomplish 
the FVPSA mandated role of a Coalition.



              Subpart D_Discretionary Grants and Contracts



Sec.  1370.30  What National Resource Center and Training and Technical 
Assistance grant programs are available and what additional requirements apply?

    (a) These grants are to provide resource information, training, and 
technical assistance to improve the capacity of individuals, 
organizations, governmental entities, and communities

[[Page 405]]

to prevent family violence, domestic violence, and dating violence and 
to provide effective intervention services. They fund national, special 
issue, and culturally-specific resource centers addressing key areas of 
domestic violence intervention and prevention, and may include State 
resource centers to reduce disparities in domestic violence in States 
with high proportions of Native American (including Alaska Native or 
Native Hawaiian) populations and to support training and technical 
assistance that address emerging issues related to family violence, 
domestic violence, or dating violence, to entities demonstrating 
expertise in these areas. Grants may be made for:
    (1) A National Resource Center on Domestic Violence which will 
conduct the following activities:
    (i) offer a comprehensive array of technical assistance and training 
resources to Federal, State, and local governmental agencies, domestic 
violence service providers, community-based organizations, and other 
professionals and interested parties, related to domestic violence 
service programs and research, including programs and research related 
to victims and their children who are exposed to domestic violence; and
    (ii) Maintain a central resource library in order to collect, 
prepare, analyze, and disseminate information and statistics related to 
the incidence and prevention of family violence and domestic violence; 
and the provision of shelter, supportive services, and prevention 
services to adult and youth victims of domestic violence (including 
services to prevent repeated incidents of violence).
    (2) A National Indian Resource Center Addressing Domestic Violence 
and Safety for Indian Women which will conduct the following activities:
    (i) Offer a comprehensive array of technical assistance and training 
resources to Indian Tribes and Tribal organizations, specifically 
designed to enhance the capacity of the Tribes and Tribal organizations 
to respond to domestic violence and increase the safety of Indian women; 
and
    (ii) Enhance the intervention and prevention efforts of Indian 
Tribes and Tribal organizations to respond to domestic violence and 
increase the safety of Indian women, and
    (iii) To coordinate activities with other Federal agencies, offices, 
and grantees that address the needs of Indians (including Alaska 
Natives) and Native Hawaiians that experience domestic violence.
    (3) Special issue resource centers to provide national information, 
training, and technical assistance to State and local domestic violence 
service providers. Each special issue resource center shall focus on 
enhancing domestic violence intervention and prevention efforts in at 
least one of the following areas:
    (i) Response of the criminal and civil justice systems to domestic 
violence victims, which may include the response to the use of the self-
defense plea by domestic violence victims and the issuance and use of 
protective orders;
    (ii) Response of child protective service agencies to victims of 
domestic violence and their dependents and child custody issues in 
domestic violence cases;
    (iii) Response of the interdisciplinary health care system to 
victims of domestic violence and access to health care resources for 
victims of domestic violence; and
    (iv) Response of mental health systems, domestic violence service 
programs, and other related systems and programs to victims of domestic 
violence and to their children who are exposed to domestic violence.
    (4) Culturally-Specific Special Issue Resource Centers enhance 
domestic violence intervention and prevention efforts for victims of 
domestic violence who are members of racial and ethnic minority groups, 
to enhance the cultural and linguistic relevancy of service delivery, 
resource utilization, policy, research, technical assistance, community 
education, and prevention initiatives.
    (5) State resource centers to provide Statewide information, 
training, and technical assistance to Indian Tribes, Tribal 
organizations, and local domestic violence service organizations serving 
Native Americans (including Alaska Natives and Native Hawaiians) in a

[[Page 406]]

culturally sensitive and relevant manner. These centers shall:
    (i) Offer a comprehensive array of technical assistance and training 
resources to Indian Tribes, Tribal organizations, and providers of 
services to Native Americans (including Alaska Natives and Native 
Hawaiians) specifically designed to enhance the capacity of the Tribes, 
organizations, and providers to respond to domestic violence, including 
offering the resources in States in which the population of Indians 
(including Alaska Natives) or Native Hawaiians exceeds 2.5 percent of 
the total population of the State;
    (ii) Coordinate all projects and activities with the National Indian 
Resource Center Addressing Domestic Violence and Safety for Indian 
Women, including projects and activities that involve working with State 
and local governments to enhance their capacity to understand the unique 
needs of Native Americans (including Alaska Natives and Native 
Hawaiians); and
    (iii) Provide comprehensive community education and domestic 
violence prevention initiatives in a culturally sensitive and relevant 
manner; and
    (iv) Otherwise meet certain eligibility requirements for state 
resource centers to reduce tribal disparities, pursuant to 42 U.S.C. 
10410(c)(4).
    (6) Other discretionary purposes to support training and technical 
assistance that address emerging issues related to family violence, 
domestic violence, or dating violence, to entities demonstrating related 
experience.
    (b) To receive a grant under any part of this section, an entity 
shall submit an application that shall meet such eligibility standards 
as are prescribed in the FVPSA and contains such agreements, assurances, 
and information, in such form, and submitted in such manner as the 
Funding Opportunity Announcement and related program guidance prescribe.



Sec.  1370.31  What additional requirements apply to grants for 
specialized services for abused parents and their children?

    (a) These grants serve to expand the capacity of family violence, 
domestic violence, and dating violence service programs and community-
based programs to prevent future domestic violence by addressing, in an 
appropriate manner, the needs of children exposed to family violence, 
domestic violence, or dating violence. To be eligible an entity must be 
a local agency, a nonprofit private organization (including faith-based 
and charitable organizations, community-based organizations, and 
voluntary associations), or a Tribal organization, with a demonstrated 
record of serving victims of family violence, domestic violence, or 
dating violence and their children.
    (b) To be eligible to receive a grant under this section, an entity 
shall submit an application that:
    (1) Includes a complete description of the applicant's plan for 
providing specialized services for abused parents and their children, 
including descriptions of:
    (i) How the entity will prioritize the safety of, and 
confidentiality of, information about victims of family violence, 
victims of domestic violence, and victims of dating violence and their 
children, and will comply with the confidentiality requirements of 
FVPSA, 42 U.S.C. 10406(c)(5) and this rule at Sec.  1370.4;
    (ii) How the entity will provide developmentally appropriate and 
age-appropriate services, and culturally and linguistically appropriate 
services, to the victims and children;
    (iii) How the entity will ensure that professionals working with the 
children receive the training and technical assistance appropriate and 
relevant to the unique needs of children exposed to family violence, 
domestic violence, or dating violence; and
    (iv) How, in the case of victims who choose to or by virtue of their 
circumstances must remain in contact with an abusive partner/parent, the 
entity will: consider the victim's decision-making for keeping children 
safe within the continuum of domestic violence (see the definition of 
domestic violence in the regulatory text at Sec.  1370.2 which describes 
the potential range of behaviors constituting domestic violence); not 
place burdens or demands on the non-abusive parent that the parent 
cannot comply with due to the coercive control of the offender; and take

[[Page 407]]

precautions to avoid actions that discourage victims from help-seeking, 
such as making unnecessary referrals to child protective services when 
survivors go to community-based organizations for assistance in safety 
planning to protect children.
    (2) Demonstrates that the applicant has the ability to effectively 
provide, or partner with an organization that provides, direct 
counseling, appropriate services, and advocacy on behalf of victims of 
family violence, domestic violence, or dating violence, and their 
children, including coordination with services provided by the child 
welfare system, schools, health care providers, home visitors, family 
court systems, and any other child or youth serving system;
    (3) Demonstrates that the applicant can effectively provide services 
for non-abusing parents to support those parents' roles as caregivers 
and their roles in responding to the social, emotional, and 
developmental needs of their children; and
    (4) Contains such agreements, assurances, and information, in such 
form, and submitted in such manner as the Funding Opportunity 
Announcement and related program guidance prescribe.
    (c) Eligible applicants may use funds under a grant pursuant to this 
section:
    (1) To provide early childhood development and mental health 
services;
    (2) To coordinate activities with and provide technical assistance 
to community-based organizations serving victims of family violence, 
domestic violence, or dating violence or children exposed to family 
violence, domestic violence, or dating violence; and
    (3) To provide additional services and referrals to services for 
children, including child care, transportation, educational support, 
respite care, supervised visitation, or other necessary services.
    (d) If Congressional appropriations in any fiscal year for the 
entirety of programs covered in this part (exclusive of the National 
Domestic Violence Hotline which receives a separate appropriation) 
exceed $130 million, not less than 25 percent of such excess funds shall 
be made available to carry out this grant program. If appropriations 
reach this threshold, HHS will specify funding levels in future Funding 
Opportunity Announcements.



Sec.  1370.32  What additional requirements apply to National 
Domestic Violence Hotline grants?

    (a) These grants are for one or more private entities to provide for 
the ongoing operation of a 24-hour, national, toll-free telephone 
hotline to provide information and assistance to adult and youth victims 
of family violence, domestic violence, or dating violence, family and 
household members of such victims, and persons affected by the 
victimization.
    (b) Telephone is defined as a communications device that permits two 
or more callers or users to engage in transmitted analog, digital, short 
message service (SMS), cellular/wireless, laser, cable/broadband, 
internet, voice-over internet protocol (IP), video, or other 
communications, including telephone, smartphone, chat, text, voice 
recognition, or other technological means which connects callers or 
users together.
    (c) To be eligible to receive a grant under this section, an entity 
shall submit an application that:
    (1) Includes a complete description of the applicant's plan for the 
operation of a national domestic violence telephone hotline, including 
descriptions of:
    (i) The training program for hotline personnel, including technology 
training to ensure that all persons affiliated with the hotline are able 
to effectively operate any technological systems used by the hotline, 
and are familiar with effective communication and equal access 
requirements, to ensure access for all, including people who are Limited 
English Proficient and people with disabilities;
    (ii) The hiring criteria and qualifications for hotline personnel;
    (iii) The methods for the creation, maintenance, and updating of a 
resource database;
    (iv) A plan for publicizing the availability of the hotline;
    (v) A plan for providing service such as advocacy and supportive 
services to

[[Page 408]]

Limited English Proficient callers, including service through hotline 
personnel who are qualified to interpret in non-English languages;
    (vi) A plan for facilitating access to the hotline by persons with 
disabilities, including persons who are deaf or have hearing 
impairments; and
    (vii) A plan for providing assistance and referrals to youth victims 
of domestic violence and for victims of dating violence who are minors, 
which may be carried out through a national teen dating violence 
hotline.
    (2) Demonstrates that the applicant has recognized expertise in the 
area of family violence, domestic violence, or dating violence and a 
record of high quality service to victims of family violence, domestic 
violence, or dating violence, including a demonstration of support from 
advocacy groups and State Domestic violence Coalitions;
    (3) Demonstrates that the applicant has the capacity and the 
expertise to maintain a domestic violence hotline and a comprehensive 
database of service providers;
    (4) Demonstrates the ability to provide information and referrals 
for callers, directly connect callers to service providers, and employ 
crisis interventions meeting the standards of family violence, domestic 
violence, and dating violence providers;
    (5) Demonstrates that the applicant has a commitment to diversity 
and to the provision of services to underserved populations, including 
to ethnic, racial, and Limited English Proficient individuals, in 
addition to older individuals and individuals with disabilities;
    (6) Demonstrates that the applicant follows comprehensive quality 
assurance practices; and
    (7) Contains such agreements, information, and assurances, including 
nondisclosure of confidential or private information, in such form, and 
submitted in such manner as the Funding Opportunity Announcement and 
related program guidance prescribe.
    (d) The entity receiving a grant under this section shall submit a 
performance report to the Secretary at such time as reasonably required 
by the Secretary that shall describe the activities that have been 
carried out with grant funds, contain an evaluation of the effectiveness 
of such activities, and provide additional information as the Secretary 
may reasonably require.

[[Page 409]]



   SUBCHAPTER I_THE ADMINISTRATION ON INTELLECTUAL AND DEVELOPMENTAL 
            DISABILITIES, DEVELOPMENTAL DISABILITIES PROGRAM



                       PARTS 1385	1399 [RESERVED]



                       SUBCHAPTERS J	K [RESERVED]



[[Page 411]]



                 CHAPTER XVI--LEGAL SERVICES CORPORATION




  --------------------------------------------------------------------
Part                                                                Page
1600            Definitions.................................         413
1601

[Reserved]

1602            Procedures for disclosure of information 
                    under the Freedom of Information Act....         414
1603            Testimony by employees and production of 
                    documents in proceedings where the 
                    United States is not a party............         425
1604            Outside practice of law.....................         427
1605            Appeals on behalf of clients................         428
1606            Termination, limited reduction of funding, 
                    and debarment procedures; recompetition.         429
1607            Governing bodies............................         436
1608            Prohibited political activities.............         439
1609            Fee-generating cases........................         440
1610            Use of non-LSC funds; program integrity.....         441
1611            Financial eligibility.......................         445
1612            Restrictions on lobbying and certain other 
                    activities..............................         450
1613            Restrictions on legal assistance with 
                    respect to criminal proceedings.........         454
1614            Private attorney involvement................         454
1615            Restrictions on actions collaterally 
                    attacking criminal convictions..........         462
1616            Attorney hiring.............................         462
1617            Class actions...............................         463
1618            Enforcement procedures......................         464
1619            Disclosure of information...................         465
1620            Priorities in use of resources..............         465
1621            Client grievance procedures.................         467
1622            Public access to meetings under the 
                    Government in the Sunshine Act..........         468
1623            Suspension procedures.......................         472
1624            Prohibition against discrimination on the 
                    basis of disability.....................         474
1625

[Reserved]

1626            Restrictions on legal assistance to aliens..         478

[[Page 412]]

1627            Subgrants...................................         483
1628            Recipient fund balances.....................         487
1629            Bonding requirements for recipients.........         489
1630            Cost standards and procedures...............         491
1631            Purchasing and property management..........         497
1632            Redistricting...............................         504
1633            Restriction on representation in certain 
                    eviction proceedings....................         504
1634            Competitive bidding for grants and contracts         505
1635            Timekeeping requirement.....................         510
1636            Client identity and statement of facts......         512
1637            Representation of prisoners.................         513
1638            Restriction on solicitation.................         514
1639            Welfare reform..............................         515
1640            Application of Federal law to LSC recipients         515
1641            Debarment, suspension and removal of 
                    recipient auditors......................         516
1642

[Reserved]

1643            Restriction on assisted suicide, euthanasia, 
                    and mercy killing.......................         524
1644            Disclosure of case information..............         525
1645-1699

 [Reserved]

[[Page 413]]



PART 1600_DEFINITIONS--Table of Contents



    Authority: 42 U.S.C. 2996g(e).



Sec.  1600.1  Definitions.

    As used in these regulations, chapter XVI, unless otherwise 
indicated, the term--
    Act means the Legal Services Corporation Act, Pub. L. 93-355 (1974), 
as amended, Pub. L. 95-222 (1977), 42 U.S.C. 2996-29961.
    Appeal means any appellate proceeding in a civil action as defined 
by law or usage in the jurisdiction in which the action is filed.
    Attorney means a person who provides legal assistance to eligible 
clients and who is authorized to practice law in the jurisdiction where 
assistance is rendered.
    Control means the direct or indirect ability to determine the 
direction of management and policies or to influence the management or 
operating policies of another organization to the extent that an arm's-
length transaction may not be achieved.
    Corporation means the Legal Services Corporation established under 
the Act.
    Corporation funds or LSC funds means any funds appropriated to LSC 
by Congress to carry out the purposes of the Legal Services Corporation 
Act of 1974, 42 U.S.C. 2996 et seq., as amended.
    Director of a recipient means a person directly employed by a 
recipient in an executive capacity who has overall day-to-day 
responsibility for management of operations by a recipient.
    Eligible client means any person determined to be eligible for legal 
assistance under the Act, these regulations or other applicable law.
    Employee means a person employed by the Corporation or by a 
recipient, or a person employed by a subrecipient whose salary is paid 
in whole or in major part with funds provided by the Corporation.
    Fee generating case means any case or matter which, if undertaken on 
behalf of an eligible client by an attorney in private practice, 
reasonably may be expected to result in a fee for legal services from an 
award to a client from public funds or from an opposing party.
    Financial assistance means annualized funding from the Corporation 
granted under section 1006(a)(1)(A) for the direct delivery of legal 
assistance to eligible clients.
    Legal assistance means the provisions of any legal services 
consistent with the purposes and provisions of the Act or other 
applicable law.
    Non-LSC funds means any funds that are not Corporation funds or LSC 
funds.
    Outside practice of law means the provisions of legal assistance to 
a client who is not eligible to receive legal assistance from the 
employer of the attorney rendering assistance, but does not include, 
among other activities, teaching, consulting, or performing evaluations.
    Political means that which relates to engendering public support for 
or opposition to candidates for public office, ballot measures, or 
political parties, and would include publicity or propaganda used for 
that purpose.
    President means the President of the Corporation.
    Public funds means the funds received directly or indirectly from 
the Corporation or a Federal, State, or local government or 
instrumentality of a government.
    Recipient means any grantee or contractor receiving financial 
assistance from the Corporation under section 1006(a)(1)(A) of the Act.
    Staff attorney means an attorney more than one half of whose annual 
professional income is derived from the proceeds of a grant from the 
Legal Services Corporation or is received from a recipient, 
subrecipient, grantee, or contractor that limits its activities to 
providing legal assistance to clients eligible for assistance under the 
Act.
    Tribal funds means funds received from an Indian tribe or from a 
private foundation for the benefit of an Indian tribe.

[49 FR 21327, May 21, 1984, as amended at 51 FR 24827, July 9, 1986; 82 
FR 37337, Aug. 10, 2017]

                          PART 1601 [RESERVED]

[[Page 414]]



PART 1602_PROCEDURES FOR DISCLOSURE OF INFORMATION 
UNDER THE FREEDOM OF INFORMATION ACT--Table of Contents



Sec.
1602.1 Purpose.
1602.2 Definitions.
1602.3 Policy.
1602.4 Records published in the Federal Register.
1602.5 Public reading room.
1602.6 Procedures for use of public reading room.
1602.7 Index of records.
1602.8 Requests for records.
1602.9 Timing and responses to requests for records.
1602.10 Exemptions for withholding records.
1602.11 Officials authorized to grant or deny requests for records.
1602.12 Denials.
1602.13 Appeals of denials.
1602.14 Fees.
1602.15 Submitter's rights process.

    Authority: 42 U.S.C. 2996g(e).

    Source: 81 FR 91039, Dec. 16, 2016, unless otherwise noted.



Sec.  1602.1  Purpose.

    This part contains the rules and procedures the Legal Services 
Corporation (LSC) follows in making records available to the public 
under the Freedom of Information Act.



Sec.  1602.2  Definitions.

    (a) 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 determining whether a requester properly 
belongs in this category, LSC will look to the use to which a requester 
will put the documents requested. When LSC has reasonable cause to doubt 
the requester's stated use of the records sought, or where the use is 
not clear from the request itself, it will seek additional clarification 
before assigning the request to a category.
    (b) Confidential commercial information means records provided to 
LSC by a submitter that arguably contain material exempt from release 
under Exemption 4 of the FOIA, 5 U.S.C. 552(b)(4).
    (c) Duplication means the process of making a copy of a requested 
record pursuant to this part in a form appropriate for release in 
response to a FOIA request.
    (d) Educational institution means a preschool, a public or private 
elementary or secondary school, an institution of undergraduate or 
graduate higher education, or an institution of professional or 
vocational education which operates a program or programs of scholarly 
research.
    (e) FOIA means the Freedom of Information Act, 5 U.S.C. 552.
    (f) LSC means the Legal Services Corporation. Unless explicitly 
stated otherwise, LSC includes the Office of Inspector General.
    (g) Non-commercial 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.
    (h) Office refers to the Office of Legal Affairs and/or the Office 
of Inspector General (OIG).
    (i) Person includes an individual, partnership, corporation, 
association, or public or private organization other than LSC or a 
Federal agency.
    (j) Records are any type of information made or received by LSC or 
the OIG for purposes of transacting LSC or OIG business and preserved by 
LSC or the OIG (either directly or maintained by a third party under 
contract to LSC or the OIG for records management purposes) regardless 
of form (e.g., paper or electronic, formal or informal, copies or 
original) as evidence of LSC's or OIG's organization, functions, 
policies, decisions, procedures, operations, or other activities of LSC 
or the OIG or because the record has informational value.
    (k) Representative of the news media means any person or entity that 
gathers information of potential interest to a segment of the public, 
uses its editorial skills to turn the raw materials into a distinct 
work, and distributes that work to an audience. In this clause, the term 
``news'' means information that is about current events or that would be 
of current interest to the

[[Page 415]]

public. Examples of news media entities are television or radio stations 
broadcasting to the public at large and publishers of periodicals (but 
only if such entities qualify as disseminators of ``news'') who make 
their products available for purchase or subscription or by free 
distribution to the general public. These examples are not all-
inclusive. Moreover, as methods of news delivery evolve (for example, 
the adoption of the electronic dissemination of newspapers through 
telecommunications services), such alternative media shall be considered 
to be news media entities. A freelance journalist shall be regarded as 
working for a news media entity if the journalist can demonstrate a 
solid basis for expecting publication through that entity, whether or 
not the journalist is actually employed by the entity. A publication 
contract would present a solid basis for such an expectation. LSC may 
also consider the past publication record of the requester in making 
such a determination.
    (l) Review means the process of examining documents located in 
response to a request to determine whether any portion of any such 
document is exempt from disclosure. It also includes processing any such 
documents for disclosure. Review does not include time spent resolving 
general legal or policy issues regarding the application of exemptions.
    (m) Rule means the whole or a part of an LSC statement of general or 
particular applicability and future effect designed to implement, 
interpret, or prescribe law or policy or describing the organization, 
procedure, or practice requirements of LSC.
    (n) Search means the process of looking for and retrieving records 
that are responsive to a request for records. It includes page-by-page 
or line-by-line identification of material within documents and also 
includes reasonable efforts to locate and retrieve information from 
records maintained in electronic form or format. Searches may be 
conducted manually or by automated means and will be conducted in the 
most efficient and least expensive manner.
    (o) Submitter means any person or applicant for funds who provides 
confidential commercial information to LSC.



Sec.  1602.3  Policy.

    LSC will make records concerning its operations, activities, and 
business available to the public to the maximum extent reasonably 
possible. LSC will withhold records from the public only in accordance 
with the FOIA and this part. LSC will disclose records otherwise exempt 
from disclosure under the FOIA when LSC does not reasonably foresee that 
disclosure would harm an interest protected by an exemption and 
disclosure is not prohibited by law or protected under Exemption 3.



Sec.  1602.4  Records published in the Federal Register.

    LSC routinely publishes in the Federal Register information on its 
basic structure and operations necessary to inform the public how to 
deal effectively with LSC. LSC will make reasonable efforts to currently 
update such information, which will include basic information on LSC's 
location, functions, rules of procedure, substantive rules, statements 
of general policy, and information regarding how the public may obtain 
information, make submittals or requests, or obtain decisions.



Sec.  1602.5  Public reading room.

    (a) LSC will maintain a public reading room at its offices at 3333 K 
St. NW., Washington, DC 20007. This room will be supervised and will be 
open to the public during LSC's regular business hours. Procedures for 
use of the public reading room are described in Sec.  1602.6. LSC also 
maintains an electronic public reading room that may be accessed at 
http://www.lsc.gov/about-lsc/foia/foia-electronic-public-reading-room.
    (b) Subject to the limitation stated in paragraph (c) of this 
section, LSC will make available for public inspection in its electronic 
public reading room the records described in 5 U.S.C. 552(a)(2).
    (c) Records required by FOIA to be available in the public reading 
room may be exempt from mandatory disclosure pursuant to 5 U.S.C. 
552(b). LSC will not make such records available in

[[Page 416]]

the public reading room. LSC may edit other records maintained in the 
reading room by redacting details about individuals to prevent clearly 
unwarranted invasions of personal privacy. In such cases, LSC will 
attach a full explanation of the redactions to the record. LSC will 
indicate the extent of the redactions unless doing so would harm an 
interest protected by the exemption under which the redactions are made. 
If technically feasible, LSC will indicate the extent of the redactions 
at the place in the record where the redactions were made.



Sec.  1602.6  Procedures for use of public reading room.

    (a) A person who wishes to inspect or copy records in the public 
reading room should arrange a time in advance, by telephone or letter 
request made to the Office of Legal Affairs, Legal Services Corporation, 
3333 K Street NW., Washington, DC 20007 or by email to [email protected].
    (1) In appropriate circumstances, LSC will advise persons making 
telephonic requests to use the public reading room that a written 
request would aid in the identification and expeditious processing of 
the records sought.
    (2) Written requests should identify the records sought in the 
manner provided in Sec.  1602.8(b) and should request a specific date 
for inspecting the records.
    (b) LSC will advise the requester as promptly as possible if, for 
any reason, it is not feasible to make the records sought available on 
the date requested.
    (c) A computer terminal and printer are available upon request in 
the public reading room for accessing Electronic Reading Room records.



Sec.  1602.7  Index of records.

    LSC will maintain and make available for public inspection in an 
electronic format a current index identifying any matter within the 
scope of Sec.  1602.4 and Sec.  1602.5(b).



Sec.  1602.8  Requests for records.

    (a) LSC will make its records promptly available, upon request, to 
any person in accordance with this section, unless:
    (1) the FOIA requires the records to be published in the Federal 
Register (Sec.  1602.4) or to be made available in the public reading 
room (Sec.  1602.5); or
    (2) LSC determines that such records should be withheld and are 
exempt from mandatory disclosure under the FOIA and Sec.  1602.10.
    (b)(1) Requests for LSC records. All requests for LSC records must 
be clearly marked Freedom of Information Act Request and shall be 
addressed to the FOIA Analyst, Office of Legal Affairs, Legal Services 
Corporation, 3333 K Street NW., Washington, DC 20007. Email requests 
shall be sent to [email protected]. Requests for LSC Records may also be made 
online using the FOIA Request Electronic Submission Form located at 
http://www.lsc.gov/about-lsc/foia.
    (2) Requests for Office of Inspector General records. All requests 
for records maintained by the OIG must be clearly marked Freedom of 
Information Act Request and shall be addressed to the FOIA Officer, 
Office of Inspector General, Legal Services Corporation, 3333 K Street 
NW., Washington, DC 20007. Email requests shall be sent to 
[email protected].
    (3) Any request not marked and addressed as specified in this 
section will be so marked by LSC personnel as soon as it is properly 
identified, and will be forwarded immediately to the appropriate Office. 
A request improperly addressed will be deemed to have been received as 
in accordance with Sec.  1602.9 only when it has been received by the 
appropriate Office. Upon receipt of an improperly addressed request, the 
Chief FOIA Officer, Office of Inspector General Legal Counsel or their 
designees shall notify the requester of the date on which the time 
period began.
    (c) A request must reasonably describe the records requested so that 
employees of LSC who are familiar with the subject area of the request 
are able, with a reasonable amount of effort, to determine which 
particular records are within the scope of the request. Before 
submitting their requests, requesters may contact LSC's or OIG's FOIA 
Analyst or FOIA Public Liaison to discuss the records they seek and to 
receive assistance in describing the records. If LSC determines

[[Page 417]]

that a request does not reasonably describe the records sought, LSC will 
inform the requester what additional information is needed or why the 
request is otherwise insufficient. Requesters who are attempting to 
reformulate or modify their request may discuss their request with LSC's 
or OIG's FOIA Analyst or FOIA Public Liaison. If a request does not 
reasonably describe the records sought, LSC's response to the request 
may be delayed.
    (d) To facilitate the location of records by LSC, a requester should 
try to provide the following kinds of information, if known:
    (1) The specific event or action to which the record refers;
    (2) The unit or program of LSC that may be responsible for or may 
have produced the record;
    (3) The date of the record or the date or period to which it refers 
or relates;
    (4) The type of record, such as an application, a grant, a contract, 
or a report;
    (5) Personnel of LSC who may have prepared or have knowledge of the 
record;
    (6) Citations to newspapers or publications which have referred to 
the record.
    (e) Requests may specify the preferred form or format (including 
electronic formats) for the records sought. LSC will provide records in 
the form or format indicated by the requester to the extent such records 
are readily reproducible in the requested form or format. LSC reserves 
the right to limit the number of copies of any document that will be 
provided to any one requester or to require that special arrangements 
for duplication be made in the case of bound volumes or other records 
representing unusual problems of handling or reproduction.
    (f) Requesters must provide contact information, such as their phone 
number, email address, and/or mailing address, to assist LSC in 
communicating with them and providing released records.
    (g) LSC is not required to create a record or to perform research to 
satisfy a request.
    (h) Any request for a waiver or reduction of fees should be included 
in the FOIA request, and any such request should indicate the grounds 
for a waiver or reduction of fees, as set out in Sec.  1602.14(g).



Sec.  1602.9  Timing and responses to requests for records.

    (a)(1) Upon receiving a request for LSC or Inspector General records 
under Sec.  1602.8, the Chief FOIA Officer, Office of Inspector General 
Legal Counsel or their designees shall make an initial determination of 
whether to comply with or deny such request. The Chief FOIA Officer, 
Office of Inspector General Legal Counsel or their designees will send 
the determination to the requester within 20 business days after receipt 
of the request and will notify the requester of their right to seek 
assistance from an LSC FOIA Public Liaison.
    (2) The 20-day period under paragraph (a)(1) of this section shall 
commence on the date on which the request is first received by the 
appropriate Office, but in no event later than 10 working days after the 
request has been received by either the Office of Legal Affairs or the 
Office of Inspector General. The 20-day period shall not be tolled by 
the Office processing the request except that the processing Office may 
make one request to the requester for information pursuant to paragraph 
(b) of this section and toll the 20-day period while
    (i) It is awaiting such information that it has reasonably requested 
from the requester under this section; or
    (ii) It communicates with the requester to clarify issues regarding 
fee assessment.
    In either case, the processing Office's receipt of the requester's 
response to such a request for information or clarification ends the 
tolling period.
    (b) Consultation. When records originated with the Office processing 
the request, but contain within them information of interest to another 
Office or Federal agency, the Office processing the request should 
typically consult with that other entity prior to making a release 
determination.
    (c) Referral. (1) If the processing Office determines that the other 
Office or Federal agency is best able to determine whether to disclose 
the record, the processing Office will typically refer the 
responsibility for responding

[[Page 418]]

to the request for that record to the other Office or Federal agency. 
Ordinarily, the Office that originated the record is presumed to be the 
best Office to make the disclosure determination. However, if the 
Offices or Federal agency jointly agree that the processing Office is in 
the best position to respond regarding the record, then the record may 
be released by the processing Office after consultation with the other 
Office or Federal agency.
    (2) Whenever a referral occurs, the processing Office must document 
the referral, maintain a copy of the record that it refers, and notify 
the requester of the referral, informing the requester of the name(s) of 
the Office or Federal agency to which the record was referred, including 
that Office's or Federal agency's FOIA contact information.
    (d)(1) In unusual circumstances, as specified in paragraph (d)(3) of 
this section, LSC may extend the time limit for up to 10 working days by 
written notice to the requester setting forth the reasons for such 
extension and the date on which LSC expects to send its determination.
    (2) LSC may also provide an opportunity to the requester to narrow 
the request. In addition, to aid the requester, LSC shall make available 
a FOIA Public Liaison, who shall assist in the resolution of any 
disputes between the requester and LSC, and shall notify the requester 
of his right to seek dispute resolution services from the U.S. National 
Archives and Records Administration's Office of Government Information 
Services.
    (3) Unusual circumstances. As used in this part, unusual 
circumstances are limited to the following, but only to the extent 
reasonably necessary for the proper processing of the particular 
request:
    (i) The need to search for and collect the requested records from 
establishments that are separate from the office processing the request;
    (ii) 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
    (iii) The need for consultation, which shall be conducted with all 
practicable speed, with another Office, Federal agency, or organization 
having a substantial interest in the determination of the request.
    (c)(1) When the processing Office cannot send a determination to the 
requester within the applicable time limit, the Chief FOIA Officer, 
Office of the Inspector General Legal Counsel, or their designees shall 
inform the requester of the reason for the delay, the date on which the 
processing Office expects to send its determination, and the requester's 
right to treat the delay as a denial and to appeal to LSC's President or 
Inspector General, in accordance with Sec.  1602.13, or to seek dispute 
resolution services from a FOIA Public Liaison or the Office of 
Government Information Services.
    (2) If the processing Office has not sent its determination by the 
end of the 20-day period or the last extension thereof, the requester 
may deem the request denied, and exercise a right of appeal in 
accordance with Sec.  1602.13, or seek dispute resolution services from 
LSC's or OIG's FOIA Public Liaison or the National Archives and Records 
Administration's Office of Government Information Services. The Chief 
FOIA Officer, Office of Inspector General Legal Counsel, or their 
designees may ask the requester to forego appeal until a determination 
is made.
    (d) After the processing Office determines that a request will be 
granted, LSC or the OIG will act with due diligence in providing a 
substantive response.
    (e)(1) Expedited treatment. Requests and appeals will be taken out 
of order and given expedited treatment whenever the requester 
demonstrates a compelling need. A compelling need means:
    (i) Circumstances in which the lack of expedited treatment could 
reasonably be expected to pose an imminent threat to the life or 
physical safety of an individual;
    (ii) An urgency to inform the public about an actual or alleged LSC 
activity and the request is made by a person primarily engaged in 
disseminating information;
    (iii) The loss of substantial due process rights; or

[[Page 419]]

    (iv) A matter of widespread and exceptional media interest raising 
questions about LSC's integrity which may affect public confidence in 
LSC.
    (2) A request for expedited processing may be made at the time of 
the initial request for records or at any later time. For a prompt 
determination, a request for expedited processing must be properly 
addressed and marked and received by LSC pursuant to Sec.  1602.8.
    (3) A requester who seeks expedited processing must submit a 
statement demonstrating a compelling need and explaining in detail the 
basis for requesting expedited processing. The requester must certify 
that the statement is true and correct to the best of the requester's 
knowledge and belief.
    (4) Within 10 calendar days of receiving a request for expedited 
processing, the Chief FOIA Officer, Office of Inspector General Legal 
Counsel or their designees shall decide whether to grant the request and 
shall notify the requester of the decision. If a request for expedited 
treatment is granted, the request shall be given priority and shall be 
processed as soon as practicable. If a request for expedited processing 
is denied, the requester may appeal in writing to LSC's President or 
Inspector General in the format described in Sec.  1602.13(a). Any 
appeal of a denial for expedited treatment shall be acted on 
expeditiously by LSC.



Sec.  1602.10  Exemptions for withholding records.

    (a) LSC shall--
    (1) Withhold information under this section only if--
    (i) LSC reasonably foresees that disclosure would harm an interest 
protected by an exemption described in paragraph (b); or
    (ii) Disclosure is prohibited by law; and
    (2)(i) Consider whether partial disclosure of information is 
possible whenever LSC determines that a full disclosure of a requested 
record is not possible; and
    (ii) Take reasonable steps necessary to segregate and release 
nonexempt information;
    (b) LSC may withhold a requested record from public disclosure only 
if one or more of the following exemptions authorized by the FOIA apply:
    (1)(i) Matter that is specifically authorized under criteria 
established by an Executive order to be kept secret in the interest of 
national defense or foreign policy; and
    (ii) Is in fact properly classified pursuant to such Executive 
Order;
    (2) Matter that is related solely to the internal personnel rules 
and practices of LSC;
    (3) Matter that is specifically exempted from disclosure by statute 
(other than the exemptions under FOIA at 5 U.S.C. 552(b)), provided that 
such statute requires that the matters be withheld from the public in 
such a manner as to leave no discretion on the issue, or establishes 
particular criteria for withholding, or refers to particular types of 
matters to be withheld;
    (4) Trade secrets and commercial or financial information obtained 
from a person and privileged or confidential;
    (5) Inter-agency or intra-agency memoranda or letters that would not 
be available by law to a party other than an agency in litigation with 
LSC, provided that the deliberative process privilege shall not apply to 
records created 25 years or more before the date on which the records 
were requested;
    (6) Personnel and medical files and similar files, the disclosure of 
which would constitute a clearly unwarranted invasion of personal 
privacy;
    (7) Records or information compiled for law enforcement purposes, 
including enforcing the Legal Services Corporation Act or any other law, 
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 recipient of 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 that furnished information on a 
confidential basis, and in

[[Page 420]]

the case of a record or information compiled by a criminal law 
enforcement authority in the course of a criminal investigation, 
information furnished by a confidential source;
    (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) Matter that is 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; or
    (9) Geological and geophysical information and data, including maps, 
concerning wells.
    (c) In the event that one or more of the exemptions in paragraph (b) 
of this section applies, any reasonably segregable portion of a record 
shall be provided to the requester after redaction of the exempt 
portions. The amount of information redacted and the exemption under 
which the redaction is being made shall be indicated on the released 
portion of the record, unless doing so would harm the interest protected 
by the exemption under which the redaction is made. If technically 
feasible, the amount of information redacted and the exemption under 
which the redaction is being made shall be indicated at the place in the 
record where the redaction occurs.
    (d) No requester shall have a right to insist that any or all of the 
techniques in paragraph (c) of this section should be employed in order 
to satisfy a request.
    (e) Records that may be exempt from disclosure pursuant to paragraph 
(b) of this section may be made available at the discretion of the LSC 
official authorized to grant or deny the request for records, after 
appropriate consultation as provided in Sec.  1602.11. LSC will disclose 
records otherwise exempt from disclosure under the FOIA when LSC does 
not reasonably foresee that disclosure would harm an interest protected 
by an exemption and disclosure is not prohibited by law or protected 
under Exemption 3.



Sec.  1602.11  Officials authorized to grant or deny requests for records.

    (a) The Chief FOIA Officer, Office of Inspector General Legal 
Counsel or their designees are authorized to grant or deny requests 
under this part. In the absence of an Office of Inspector General Legal 
Counsel, the Inspector General shall name a designee who will be 
authorized to grant or deny requests under this part and who will 
perform all other functions of the Office of Inspector General Legal 
Counsel under this part.
    (b)(1) The Chief FOIA Officer or designee shall consult with the 
Office of Inspector General Legal Counsel or designee prior to granting 
or denying any request for records or portions of records which 
originated with the OIG, or which contain information which originated 
with the OIG, but which are maintained by other components of LSC.
    (2) The Office of Inspector General Legal Counsel or designee shall 
consult with the Chief FOIA Officer or designee prior to granting or 
denying any request for records or portions of records which originated 
with any component of LSC other than the OIG, or which contain 
information which originated with a component of LSC other than the OIG, 
but which are maintained by the OIG.



Sec.  1602.12  Denials.

    (a) A denial of a written request for a record that complies with 
the requirements of Sec.  1602.8 shall be in writing and shall include 
the following:
    (1) A reference to the applicable exemption or exemptions in Sec.  
1602.10(b) upon which the denial is based;
    (2) An explanation of how the exemption applies to the requested 
records;
    (3) A statement explaining why it is deemed unreasonable to provide 
segregable portions of the record after deleting the exempt portions;
    (4) An estimate of the volume of requested matter denied unless 
providing such estimate would harm the interest protected by the 
exemption under which the denial is made;

[[Page 421]]

    (5) The name and title of the person or persons responsible for 
denying the request;
    (6) An explanation of the right to appeal the denial and of the 
procedures for submitting an appeal, as described in Sec.  1602.13, 
including the address of the official to whom appeals should be 
submitted; and
    (7) An explanation of the right of the requester to seek dispute 
resolution services from a FOIA Public Liaison or the Office of 
Government Information Services.
    (b) Whenever LSC makes a record available subject to the deletion of 
a portion of the record, such action shall be deemed a denial of a 
record for purposes of paragraph (a) of this section.
    (c) All denials shall be treated as final opinions under Sec.  
1602.5(b).



Sec.  1602.13  Appeals of denials.

    (a) Any person whose written request has been denied is entitled to 
appeal the denial within 90 days of the date of the response by writing 
to the President of LSC or, in the case of a denial of a request for OIG 
records, the Inspector General, at the mailing or email addresses given 
in Sec.  1602.8(b)(1) and (2). The envelope and letter or email appeal 
should be clearly marked: ``Freedom of Information Appeal.'' An appeal 
need not be in any particular form, but should adequately identify the 
denial, if possible, by describing the requested record, identifying the 
official who issued the denial, and providing the date on which the 
denial was issued.
    (b) No personal appearance, oral argument, or hearing will 
ordinarily be permitted on appeal of a denial. Upon request and a 
showing of special circumstances, however, this limitation may be waived 
and an informal conference may be arranged with the President, Inspector 
General or their designees for this purpose.
    (c)(1) The decision of the President or the Inspector General on an 
appeal shall be in writing and, in the event the denial is in whole or 
in part upheld, shall contain an explanation responsive to the arguments 
advanced by the requester, the matters described in Sec.  1602.12(a)(1) 
through (4), and the provisions for judicial review of such decision 
under 5 U.S.C. 552(a)(4). The decision must also notify the requester of 
the dispute resolution services offered by the National Archives and 
Records Administration's Office of Government Information Systems as a 
non-exclusive alternative to litigation. A requester may contact the 
Office of Government Information Services in any of the following ways:
    (i) Office of Government Information Services, National Archives and 
Records Administration, 8601 Adelphi Road--OGIS, College Park, MD 20740.
    (ii) ogis.archives.gov.
    (iii) Email: [email protected].
    (iv) Telephone: 202-741-5770.
    (v) Facsimile: 202-741-5769.
    (vi) Toll-free: 1-877-684-6448.
    (2) Dispute resolution through the Office of Government Information 
Services is a voluntary process. If LSC agrees to participate in the 
dispute resolution services provided by the Office of Government 
Information Services, it will actively engage in the process in an 
attempt to resolve the dispute.
    (d) LSC will send its decision to the requester within 20 business 
days after receipt of the appeal, unless an additional period is 
justified due to unusual circumstances, as described in Sec.  1602.9, in 
which case LSC may extend the time limit for up to 10 working days by 
written notice to the requester setting forth the reasons for such 
extension and the date on which LSC expects to send its determination. 
The decision of the President or the Inspector General shall constitute 
the final action of LSC. All such decisions shall be treated as final 
opinions under Sec.  1602.5(b)(1).
    (e) On an appeal, the President or designee shall consult with the 
OIG prior to reversing in whole or in part the denial of any request for 
records or portions of records which originated with the OIG, or which 
contain information which originated with the OIG, but which are 
maintained by LSC. The Inspector General or designee shall consult with 
the President prior to reversing in whole or in part the denial of any 
request for records or portions of records which originated with LSC, or 
which contain information which originated with LSC, but which are 
maintained by the OIG.

[[Page 422]]



Sec.  1602.14  Fees.

    (a) LSC will not charge fees for information routinely provided in 
the normal course of doing business.
    (b)(1) When records are requested for commercial use, LSC shall 
limit fees to reasonable standard charges for document search, review, 
and duplication.
    (2) LSC shall not assess any search fees (or if the requester is a 
representative of the news media, duplication fees) if LSC has failed to 
comply with the time limits set forth in Sec.  1602.9 and no unusual 
circumstances, as defined in that section apply.
    (3)(i) If LSC has determined that unusual circumstances as defined 
in Sec.  1602.9 apply and LSC has provided timely written notice to the 
requester in accordance with Sec.  1602.9, a failure described in 
paragraph (2) is excused for an additional 10 days. If LSC fails to 
comply with the extended time limit, LSC may not assess any search fees 
(or, if the requester is a representative of the news media, duplication 
fees) except as provided in paragraphs (a)(3)(ii)-(iii) of this section.
    (ii) If LSC has determined that unusual circumstances as defined in 
Sec.  1602.9 apply and more than 5,000 pages are necessary to respond to 
the request, LSC may charge search fees or duplication fees if LSC has 
provided a timely written notice to the requester in accordance with 
Sec.  1602.9 and LSC has discussed with the requester via written mail, 
electronic mail, or telephone (or made not less than three good faith 
attempts to do so) how the requester could effectively limit the scope 
of the request in accordance with Sec.  1602.9.
    (iii) If a court has determined that exceptional circumstances 
exist, as defined by the FOIA, a failure to comply with the time limits 
shall be excused for the length of time provided by the court order.
    (c) When records are sought by a representative of the news media or 
by an educational or non-commercial scientific institution, LSC shall 
limit fees to reasonable standard charges for document duplication after 
the first 100 pages; and
    (d) For all other requests, LSC shall limit fees to reasonable 
standard charges for search time after the first 2 hours and duplication 
after the first 100 pages.
    (e) The schedule of charges and fees for services regarding the 
production or disclosure of the Corporation's records is as follows:
    (1) Manual search for and review of records will be charged as 
follows:
    (i) Administrative fee: $22.35/hour;
    (ii) Professional fee: $66.26/hour;
    (iii) Charges for search and review time less than a full hour will 
be billed by quarter-hour segments;
    (2) Duplication by paper copy: 35 cents per page;
    (3) Duplication by other methods: actual charges as incurred;
    (4) Packing and mailing records: no charge for regular mail;
    (5) Express mail: actual charges as incurred.
    (f) LSC may charge for time spent searching even if it does not 
locate any responsive records or it withholds the records located as 
exempt from disclosure.
    (g) Fee waivers. A requester may seek a waiver or reduction of the 
fees established under paragraph (e) of this section. A fee waiver or 
reduction request will be granted where LSC has determined that the 
requester has demonstrated that disclosure of the information is in the 
public interest because it is likely to contribute significantly to 
public understanding of the operations of LSC and is not primarily in 
the commercial interest of the requester.
    (1) In order to determine whether 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 LSC, LSC 
shall consider the following four factors:
    (i) The subject of the request: Whether the subject of the requested 
records concerns ``the operations or activities of LSC.'' The subject of 
the requested records must concern identifiable operations or activities 
of LSC, with a connection that is direct and clear, not remote or 
attenuated.
    (ii) The informative value of the information to be disclosed: 
Whether the disclosure is ``likely to contribute'' to an understanding 
of LSC operations or activities. The requested records must be

[[Page 423]]

meaningfully informative about LSC operations or activities in order to 
be likely to contribute to an increased public understanding of those 
operations or activities. The disclosure of information that is already 
in the public domain, in either a duplicative or a substantially 
identical form, would not be likely to contribute to such understanding 
where nothing new would be added to the public's understanding.
    (iii) The contribution to an understanding of the subject by the 
public likely to result from disclosure: Whether disclosure of the 
requested records will contribute to ``public understanding.'' The 
disclosure must contribute to a reasonably broad audience of persons 
interested in the subject, as opposed to the personal interest of the 
requester. A requester's expertise in the subject area and ability and 
intention to effectively convey information to the public shall be 
considered. LSC shall presume that a representative of the news media 
will satisfy this consideration.
    (iv) The significance of the contribution to public understanding: 
Whether the disclosure is likely to contribute ``significantly'' to 
public understanding of LSC operations or activities. The disclosure 
must enhance the public's understanding of the subject in question to a 
significant extent.
    (2) In order to determine whether disclosure of the information is 
not primarily in the commercial interest of the requester, LSC will 
consider the following two factors:
    (i) The existence and magnitude of a commercial interest: Whether 
the requester has a commercial interest that would be furthered by the 
requested disclosure. LSC shall consider any commercial interest of the 
requester (with reference to the definition of commercial use in this 
part) or of any person on whose behalf the requester may be acting, that 
would be furthered by the requested disclosure.
    (ii) The primary interest in disclosure: Whether the magnitude of 
the identified commercial interest is sufficiently large, in comparison 
with the public interest in disclosure, that disclosure is ``primarily'' 
in the commercial interest of the requester. A fee waiver or reduction 
is justified where the public interest is of greater magnitude than is 
any identified commercial interest in disclosure. LSC ordinarily shall 
presume that where a news media requester has satisfied the public 
interest standard, the public interest will be the interest primarily 
served by disclosure to that requester. Disclosure to data brokers or 
others who merely compile and market government information for direct 
economic return shall not be presumed primarily to serve a public 
interest.
    (3) Where LSC has determined that a fee waiver or reduction request 
is justified for only some of the records to be released, LSC shall 
grant the fee waiver or reduction for those records.
    (4) Requests for fee waivers and reductions shall be made in writing 
and must address the factors listed in this paragraph as they apply to 
the request.
    (h) Requesters must agree to pay all fees charged for services 
associated with their requests. LSC will assume that requesters agree to 
pay all charges for services associated with their requests up to $25 
unless otherwise indicated by the requester. For requests estimated to 
exceed $25, LSC will consult with the requester prior to processing the 
request, and such requests will not be deemed to have been received by 
LSC until the requester agrees in writing to pay all fees charged for 
services. LSC will also make available its FOIA Public Liaison or other 
FOIA professional to assist any requester in reformulating a request to 
meet the requester's needs at a lower cost.
    (i) No requester will be required to make an advance payment of any 
fee unless:
    (1) The requester has previously failed to pay a required fee within 
30 days of the date of billing, in which case an advance deposit of the 
full amount of the anticipated fee together with the fee then due plus 
interest accrued may be required (and the request will not be deemed to 
have been received by LSC until such payment is made); or
    (2) LSC determines that an estimated fee will exceed $250, in which 
case the requester shall be notified of the amount of the anticipated 
fee or such portion thereof as can readily be estimated. Such 
notification shall be transmitted as soon as possible, but in

[[Page 424]]

any event within five working days of receipt by LSC, giving the best 
estimate then available. The notification shall offer the requester the 
opportunity to confer with appropriate representatives of LSC for the 
purpose of reformulating the request so as to meet the needs of the 
requester at a reduced cost. The request will not be deemed to have been 
received by LSC for purposes of the initial 20-day response period until 
the requester makes a deposit on the fee in an amount determined by LSC.
    (j) Interest may be charged to those requesters who fail to pay the 
fees charged. Interest will be assessed on the amount billed, starting 
on the 31st day following the day on which the billing was sent. The 
rate charged will be as prescribed in 31 U.S.C. 3717.
    (k) If LSC reasonably believes that a requester or group of 
requesters is attempting to break a request into a series of requests 
for the purpose of evading the assessment of fees, LSC shall aggregate 
such requests and charge accordingly. Likewise, LSC will aggregate 
multiple requests for documents received from the same requester within 
45 days.



Sec.  1602.15  Submitter's rights process.

    (a) When LSC receives a FOIA request seeking the release of 
confidential commercial information, LSC shall provide prompt written 
notice of the request to the submitter in order to afford the submitter 
an opportunity to object to the disclosure of the requested confidential 
commercial information. The notice shall reasonably describe the 
confidential commercial information requested, inform the submitter of 
the process required by paragraph (b) of this section, and provide a 
reasonable time period for the submitter to respond.
    (b) If a submitter who has received notice of a request for the 
submitter's confidential commercial information wishes to object to the 
disclosure of the confidential commercial information, the submitter 
must provide LSC within the time period set forth in the notice, a 
detailed written statement identifying the information which it objects. 
The submitter must send its objections to the Office of Legal Affairs 
or, if it pertains to Office of Inspector General records, to the Office 
of Inspector General, and must specify the grounds for withholding the 
information under FOIA or this part. In particular, the submitter must 
demonstrate why the information is commercial or financial information 
that is privileged or confidential. If the submitter fails to respond to 
the notice from LSC within the time period specified in the notice, LSC 
will deem the submitter to have no objection to the disclosure of the 
information.
    (c) Upon receipt of written objection to disclosure by a submitter, 
LSC shall consider the submitter's objections and specific grounds for 
withholding in deciding whether to release the disputed information. 
Whenever LSC decides to disclose information over the objection of the 
submitter, LSC shall give the submitter written notice which shall 
include:
    (1) A description of the information to be released and a notice 
that LSC intends to release the information;
    (2) A statement of the reason(s) why the submitter's request for 
withholding is being rejected; and
    (3) A specified disclosure date, which must be a reasonable time 
after the notice.
    (d) The requirements of this section shall not apply if:
    (1) LSC determines upon initial review of the requested confidential 
commercial information that the requested information should not be 
disclosed;
    (2) The information has been previously published or officially made 
available to the public; or
    (3) Disclosure of the information is required by statute (other than 
FOIA) or LSC's regulations.
    (e) Whenever a requester files a lawsuit seeking to compel 
disclosure of a submitter's information, LSC shall promptly notify the 
submitter.
    (f) Whenever LSC provides a submitter with notice and opportunity to 
oppose disclosure under this section, LSC shall notify the requester 
that the submitter's rights process under this section has been 
triggered. Likewise, whenever a submitter files a lawsuit seeking to 
prevent the disclosure of the submitter's information, LSC shall notify 
the requester.

[[Page 425]]



PART 1603_TESTIMONY BY EMPLOYEES AND PRODUCTION OF DOCUMENTS IN PROCEEDINGS 
WHERE THE UNITED STATES IS NOT A PARTY--Table of Contents



Sec.
1603.1 Scope, purpose, and applicability.
1603.2 Definitions.
1603.3 What is LSC's policy on presentation of testimony and production 
          of documents?
1603.4 How does a person request voluntary testimony from an employee?
1603.5 How will LSC respond to a request for expert testimony from an 
          employee?
1603.6 How will LSC respond to a subpoena for documents?
1603.7 When will LSC certify the authenticity of records?
1603.8 Does this part give individuals any rights?

    Authority: 42 U.S.C. 2996g(e).

    Source: 83 FR 17087, April 18, 2018, unless otherwise noted.



Sec.  1603.1  Scope, purpose, and applicability.

    (a) This part sets forth rules to be followed when a litigant 
requests an employee of the Legal Services Corporation (LSC), including 
LSC's Office of the Inspector General (OIG), to provide testimony in a 
deposition, trial, or other similar proceeding concerning information 
acquired in the course of performing official duties or because of such 
person's official capacity with LSC. This part also sets forth 
procedures for the handling of subpoenas for documents and other 
requests for documents in the possession of LSC or the OIG, and for the 
processing of requests for certification of copies of documents.
    (b) It is LSC's policy to provide information, data, and records to 
non-federal litigants to the same extent and in the same manner that 
they are made available to the public. When subject to the jurisdiction 
of a court or other tribunal presiding over litigation between non-
federal parties, LSC will follow all applicable procedural and 
substantive rules relating to the production of information, data, and 
records by a non-party. The availability of LSC employees to testify in 
litigation not involving federal parties is governed by LSC's policy to 
maintain strict impartiality with respect to private litigants and to 
minimize the disruption of official duties.
    (c) This part applies to state, local, and tribal judicial, 
administrative, and legislative proceedings, and to federal judicial and 
administrative proceedings.
    (d) This part does not apply to:
    (1) Any civil or criminal proceedings to which LSC is a party.
    (2) Congressional requests or subpoenas for testimony or documents.
    (3) Consultative services and technical assistance provided by LSC 
in carrying out its normal program activities.
    (4) Employees serving as expert witnesses in connection with 
professional and consultative services as approved outside activities. 
In cases where employees are providing such outside services, they must 
state for the record that the testimony represents their own views and 
does not necessarily represent the official position of LSC.
    (5) Employees making appearances in their private capacity in legal 
or administrative proceedings that do not relate to LSC, such as cases 
arising out of traffic accidents, crimes, domestic relations, etc., and 
not involving professional and consultative services.
    (6) Any civil or criminal proceedings in State court brought on 
behalf of LSC.
    (7) Any criminal proceeding brought as a result of a referral for 
prosecution by the OIG or by any other Inspector General in connection 
with a case worked jointly with the OIG.



Sec.  1603.2  Definitions.

    (a) Certify means to authenticate official LSC documents.
    (b) Employee means current and former LSC employees, including 
temporary employees, OIG employees, and members of the Board of 
Directors and its Committees.
    (c) LSC means the Legal Services Corporation. Unless explicitly 
stated otherwise, LSC includes the OIG.
    (d) Testify and testimony include in-person, oral statements before 
a court, legislative or administrative body and statements made pursuant 
to depositions, interrogatories, declarations, affidavits, or other 
formal participation.

[[Page 426]]



Sec.  1603.3  What is LSC's policy on presentation of testimony 
and production of documents?

    In any proceedings to which this part applies, no employee may 
provide testimony or produce documents concerning information acquired 
in the course of performing official duties or because of the person's 
official relationship with LSC unless authorized by the General Counsel 
or the OIG Legal Counsel pursuant to this part based on his or her 
determination that compliance with the request would promote LSC's 
objectives.



Sec.  1603.4  How does a person request voluntary testimony from an employee?

    (a) All requests for testimony by an employee in his or her official 
capacity, except employees of OIG described in paragraph (b) of this 
section, and not subject to the exceptions set forth in Sec.  1603.1(d) 
of this part must be in writing and addressed to the General Counsel.
    (b) All requests for testimony by an employee of the OIG must be in 
writing and addressed to the OIG Legal Counsel.
    (c) Requests must state the nature of the requested testimony, why 
the information sought is unavailable by any other means, and the 
reasons why the testimony would be in the interest of LSC.



Sec.  1603.5  How will LSC respond to a request for expert testimony 
from an employee?

    No employee shall serve as an expert witness in any proceeding 
described in Sec.  1603.1(c) of this part or before a court or agency of 
the United States unless the General Counsel or the OIG Legal Counsel 
authorizes the employee's participation.



Sec.  1603.6  How will LSC respond to a subpoena for documents?

    (a) Whenever a subpoena commanding the production of any LSC record 
has been served upon an employee, the employee shall refer the subpoena 
to the General Counsel or the OIG Legal Counsel, as appropriate. The 
General Counsel or the OIG Legal Counsel shall determine whether the 
subpoena is legally sufficient, whether the subpoena was properly 
served, and whether the issuing court or other tribunal has jurisdiction 
over LSC. If the General Counsel or the OIG Legal Counsel determines 
that the subpoena satisfies all three factors, LSC shall comply with the 
terms of the subpoena unless LSC takes affirmative action to modify or 
quash the subpoena in accordance with Fed. R. Civ. P. 45 (c).
    (b) If a subpoena commanding the production of any record served 
upon an employee is determined by the General Counsel or the OIG Legal 
Counsel to be legally insufficient, improperly served, or from a 
tribunal not having jurisdiction, LSC shall deem the subpoena a request 
for records under the Freedom of Information Act. LSC shall handle the 
subpoena pursuant to the rules governing public disclosure established 
in 45 CFR part 1602.
    (c) If the General Counsel or the OIG Legal Counsel denies approval 
to comply with a subpoena for testimony or has not acted by the return 
date, the employee will be directed to appear at the stated time and 
place, unless advised by the General Counsel or the OIG Legal Counsel 
that responding to the subpoena would be inappropriate. The employee 
will be directed to produce a copy of these regulations and respectfully 
decline to testify or produce any documents on the basis of these 
regulations.



Sec.  1603.7  When will LSC certify the authenticity of records?

    Upon request, LSC will certify the authenticity of copies of records 
that are to be disclosed. The requesting party will be responsible for 
reasonable fees for copying and certification.



Sec.  1603.8  Does this part give individuals any rights?

    This part is intended only to provide a process for receipt and 
processing of private litigants' requests for LSC documents and 
testimony. It does not, and may not be relied upon, to create a right or 
benefit, substantive or procedural, enforceable at law by a party 
against LSC.

[[Page 427]]



PART 1604_OUTSIDE PRACTICE OF LAW--Table of Contents



Sec.
1604.1 Purpose.
1604.2 Definitions.
1604.3 General policy.
1604.4 Permissible outside practice.
1604.5 Compensation.
1604.6 Use of recipient resources.
1604.7 Court appointments.

    Authority: 42 U.S.C. 2996e(b)(3), 2996e(d)(6), 2996f(a)(4), 
2996g(e).

    Source: 68 FR 67377, Dec. 2, 2003, unless otherwise noted.



Sec.  1604.1  Purpose.

    This part is intended to provide guidance to recipients in adopting 
written policies relating to the outside practice of law by recipients' 
full-time attorneys. Under the standards set forth in this part, 
recipients are authorized, but not required, to permit attorneys, to the 
extent that such activities do not hinder fulfillment of their 
overriding responsibility to serve those eligible for assistance under 
the Act, to engage in pro bono legal assistance and comply with the 
reasonable demands made upon them as members of the Bar and as officers 
of the Court.



Sec.  1604.2  Definitions.

    As used in this part--
    (a) Full-time attorney means an attorney who is employed full-time 
by a recipient in legal assistance activities supported in major part by 
the Corporation, and who is authorized to practice law in the 
jurisdiction where assistance is provided.
    (b) Outside practice of law means the provision of legal assistance 
to a client who is not receiving that legal assistance from the employer 
of the full-time attorney rendering assistance, but does not include 
court appointments except where specifically stated or the performance 
of duties as a Judge Advocate General Corps attorney in the United 
States armed forces reserves.
    (c) Court appointment means an appointment in a criminal or civil 
case made by a court or administrative agency under a statute, rule or 
practice applied generally to attorneys practicing in the court or 
before the administrative agency where the appointment is made.



Sec.  1604.3  General policy.

    (a) A recipient shall adopt written policies governing the outside 
practice of law by full-time attorneys that are consistent with the LSC 
Act, this part and applicable rules of professional responsibility.
    (b) A recipient's policies may permit the outside practice of law by 
full-time attorneys only to the extent allowed by the LSC Act and this 
part, but may impose additional restrictions as necessary to meet the 
recipient's responsibilities to clients.



Sec.  1604.4  Permissible outside practice.

    A recipient's written policies may permit a full-time attorney to 
engage in a specific case or matter that constitutes the outside 
practice of law if:
    (a) The director of the recipient or the director's designee 
determines that representation in such case or matter is consistent with 
the attorney's responsibilities to the recipient's clients;
    (b) Except as provided in Sec.  1604.7, the attorney does not 
intentionally identify the case or matter with the Corporation or the 
recipient; and
    (c) The attorney is--
    (1) Newly employed and has a professional responsibility to close 
cases from a previous law practice, and does so on the attorney's own 
time as expeditiously as possible; or
    (2) Acting on behalf of him or herself, a close friend, family 
member or another member of the recipient's staff; or
    (3) Acting on behalf of a religious, community, or charitable group; 
or
    (4) Participating in a voluntary pro bono or legal referral program 
affiliated with or sponsored by a bar association, other legal 
organization or religious, community or charitable group.



Sec.  1604.5  Compensation.

    (a) Except as provided in paragraph (b) of this section and Sec.  
1604.7(a), a recipient's written policies shall not permit a full-time 
attorney to receive any compensation for the outside practice of law.

[[Page 428]]

    (b) A recipient's written policies which permit a full-time attorney 
who meets the criteria set forth in Sec.  1604.4(c)(1) to engage in the 
outside practice of law shall permit full-time attorneys to seek and 
receive personal compensation for work performed pursuant to that 
section.



Sec.  1604.6  Use of recipient resources.

    (a) For cases undertaken pursuant to Sec.  1604.4(c)(1), a 
recipient's written policies may permit a full-time attorney to use de 
minimis amounts of the recipient's resources for permissible outside 
practice if necessary to carry out the attorney's professional 
responsibilities, as long as the recipient's resources, whether funded 
with Corporation or private funds, are not used for any activities for 
which the use of such funds is prohibited.
    (b) For cases undertaken pursuant to Sec.  1604.4(c)(2) through (4), 
a recipient's written policies may permit a full-time attorney to use 
limited amounts of the recipient's resources for permissible outside 
practice if necessary to carry out the attorney's professional 
responsibilities, as long as the recipient's resources, whether funded 
with Corporation or private funds are not used for any activities for 
which the use of such funds is prohibited.



Sec.  1604.7  Court appointments.

    (a) A recipient's written policies may permit a full-time attorney 
to accept a court appointment if the director of the recipient or the 
director's designee determines that:
    (1) Such an appointment is consistent with the recipient's primary 
responsibility to provide legal assistance to eligible clients in civil 
matters;
    (2) The appointment is made and the attorney will receive 
compensation for the court appointment under the same terms and 
conditions as are applied generally to attorneys practicing in the court 
where the appointment is made; and
    (3) Subject to the applicable law and rules of professional 
responsibility, the attorney agrees to remit to the recipient any 
compensation received.
    (b) A recipient's written policies may permit a full-time attorney 
to use program resources to undertake representation pursuant to a court 
appointment.
    (c) A recipient's written policies may permit a full-time attorney 
to identify the recipient as his or her employer when engaged in 
representation pursuant to a court appointment.
    (d) If, under the applicable State or local court rules or practices 
or rules of professional responsibility, legal services attorneys are 
mandated to provide pro bono legal assistance in addition to the 
attorneys' work on behalf of the recipient's clients, the recipient's 
written policies shall treat such legal assistance in the same manner as 
court appointments under paragraphs (a)(1), (a)(3), (b) and (c) of this 
section, provided that the policies may only permit mandatory pro bono 
activities that are not otherwise prohibited by the LSC Act, applicable 
appropriations laws, or LSC regulation.



PART 1605_APPEALS ON BEHALF OF CLIENTS--Table of Contents



Sec.
1605.1 Purpose.
1605.2 Definition.
1605.3 Review of Appeals.

    Authority: Secs. 1007(a)(7), 1008(e), 42 U.S.C. 2996f(a)(7), 
2996g(e).

    Source: 41 FR 18513, May 5, 1976, unless otherwise noted.



Sec.  1605.1  Purpose.

    This part is intended to promote efficient and effective use of 
Corporation funds. It does not apply to any case or matter in which 
assistance is not being rendered with funds provided under the Act.



Sec.  1605.2  Definition.

    Appeal means any appellate proceeding in a civil action as defined 
by law or usage in the jurisdiction in which the action is filed.



Sec.  1605.3  Review of Appeals.

    The governing body of a recipient shall adopt a policy and procedure 
for review of every appeal to an appellate court taken from a decision 
of any court or tribunal. The policy adopted shall
    (a) Discourage frivolous appeals, and

[[Page 429]]

    (b) Give appropriate consideration to priorities in resource 
allocation adopted by the governing body, or required by the Act, or 
Regulations of the Corporation; but
    (c) Shall not interfere with the professional responsibilities of an 
attorney to a client.



PART 1606_TERMINATION, LIMITED REDUCTION OF FUNDING, AND DEBARMENT PROCEDURES; 
RECOMPETITION--Table of Contents



Sec.
1606.1 Purpose.
1606.2 Definitions.
1606.3 Grounds for a termination or a limited reduction of funding.
1606.4 Grounds for debarment.
1606.5 Procedures.
1606.6 Preliminary determination and final decision.
1606.7 Corrective action, informal conference, review of written 
          materials, and final decision.
1606.8 Hearing for a termination or debarment.
1606.9 Recommended decision for a termination or debarment.
1606.10 Final decision for a termination, debarment, or limited 
          reduction of funding.
1606.11 Qualifications on hearing procedures.
1606.12 Time and waiver.
1606.13 Interim and termination funding; reprogramming, implementation.
1606.14 Recompetition.

    Authority: 42 U.S.C. 2996e(b)(1), 2996f(a)(3), and 2996f(d); Pub. L. 
105-119, Title V, Secs. 501(b) and (c), 502, 503, and 504, 111 Stat. 
2440, 2510-12; Pub. L. 104-134, Title V, Sec. 503(f), 110 Stat. 1321, 
1321-53.

    Source: 78 FR 10093, Feb. 13, 2013, unless otherwise noted.



Sec.  1606.1  Purpose.

    The purpose of this rule is to:
    (a) Ensure that the Corporation is able to take timely action to 
deal with incidents of substantial noncompliance by recipients with a 
provision of the LSC Act, the Corporation's appropriations act or other 
law applicable to LSC funds, a Corporation rule, regulation, guideline 
or instruction, or the terms and conditions of the recipient's grant or 
contract with the Corporation;
    (b) Provide timely and fair due process procedures, proportional to 
the proposed action, when the Corporation has made a preliminary 
decision to terminate a recipient's LSC grant or contract, to debar a 
recipient from receiving future LSC awards of financial assistance, or 
to impose a limited reduction in funding; and
    (c) Ensure that scarce funds are provided to recipients who can 
provide the most effective and economical legal assistance to eligible 
clients.
    (d) None of the following actions are subject to the procedures or 
requirements of this part:
    (1) A reduction of funding required by law, including but not 
limited to a reduction in, or rescission of, the Corporation's 
appropriation that is apportioned among all recipients of the same class 
in proportion to their current level of funding;
    (2) A reduction or deduction of LSC support for a recipient under 
the Corporation's fund balance regulation at 45 CFR part 1628;
    (3) A recovery of disallowed costs under the Corporation's 
regulation on costs standards and procedures at 45 CFR part 1630;
    (4) A withholding of funds pursuant to the Corporation's Private 
Attorney Involvement rule at 45 CFR part 1614.



Sec.  1606.2  Definitions.

    For the purposes of this part:
    Corporation, when used to refer to decisions by the Legal Services 
Corporation, means that those decisions are made by an individual acting 
with a seniority level at, or equivalent to, the level of an office 
director or higher.
    Days shall mean the number of calendar days as determined by the 
rules for computing time in the Federal Rules of Civil Procedure, Rule 
6, except that computation of business days shall exclude Saturdays, 
Sundays, and legal holidays (as defined in those rules).
    Debarment means an action taken by the Corporation to exclude a 
recipient from receiving an additional award of financial assistance 
from the Corporation or from receiving additional LSC funds from another 
recipient of the Corporation pursuant to any other means, including a 
subgrant, subcontract or similar agreement, for the period of time 
stated in the final debarment decision.

[[Page 430]]

    Funding term means the maximum time period for an award or awards of 
financial assistance under section 1006(a)(1)(A) of the LSC Act provided 
by the Corporation to a recipient selected pursuant the competition 
requirements at 45 CFR part 1634. LSC may award grants or contracts for 
a period of the entire funding term or for shorter periods that may be 
renewed or extended up to the funding term.
    Knowing and willful means that the recipient had actual knowledge 
that its action or lack thereof constituted a violation and despite such 
knowledge, undertook or failed to undertake the action, as the case may 
be.
    Limited reduction of funding means a reduction of funding of less 
than five percent of a recipient's current level of financial assistance 
imposed by the Corporation in accordance with the procedures and 
requirements of this part. A limited reduction of funding will affect 
only the recipient's current year's funding.
    LSC requirements means the same as that term is defined in 45 CFR 
Part 1618.
    Receipt of materials shall mean that the materials were sent to the 
normal address for physical mail, email, or fax transmission, and there 
is reliable secondary confirmation of delivery. For physical delivery, 
confirmation may be provided through tracking information from the 
delivery service. For other forms of delivery, confirmation may be 
provided through a document such as a confirmation email or a fax sent 
from an authorized person at the recipient. Receipt of materials by the 
LSC recipient or the Corporation is sufficient for the running of 
applicable time periods. Proof of receipt by the Chair of the governing 
body is not necessary unless delivery to the recipient itself cannot be 
reasonably accomplished.
    Recipient means the same as the term is defined in 45 CFR Part 1600.
    Substantial noncompliance means either a substantial violation, as 
defined in this part, or a substantial failure, as indicated at Sec.  
1606.3(a) of this part.
    Substantial violation means a violation that merits action under 
this part based on consideration of the following criteria by the 
Corporation:
    (1) The number of restrictions or requirements violated;
    (2) Whether the violation represents an instance of noncompliance 
with a substantive statutory or regulatory restriction or requirement, 
rather than an instance of noncompliance with a non-substantive 
technical or procedural requirement;
    (3) The extent to which the violation is part of a pattern of 
noncompliance with LSC requirements or restrictions;
    (4) The extent to which the recipient failed to take action to cure 
the violation when it became aware of the violation; and
    (5) Whether the violation was knowing and willful.
    Termination means that a recipient's level of financial assistance 
under its grant or contract with the Corporation will be reduced in 
whole or in part in the amount of five percent or greater prior to the 
expiration of the funding term of a recipient's current grant or 
contract. A partial termination will affect only the level of funding 
for the current grant year, unless the Corporation provides otherwise in 
the final decision.
    Violation means a violation by the recipient of the LSC 
requirements.



Sec.  1606.3  Grounds for a termination or a limited reduction of funding.

    (a) A grant or contract may be terminated in whole or in part when:
    (1) There has been a substantial violation by the recipient, and the 
violation occurred less than 5 years prior to the date the recipient 
receives a preliminary determination pursuant to Sec.  1606.6(a) of this 
part; or
    (2) There has been a substantial failure by the recipient to provide 
high quality, economical, and effective legal assistance, as measured by 
generally accepted professional standards, the provisions of the LSC Act 
or LSC appropriations, or a rule, regulation, including 45 CFR 
1634.9(a)(2), or guidelines or instructions issued by the Corporation.
    (b) The Corporation may impose a limited reduction of funding when 
the Corporation determines that there has been a substantial violation 
by the recipient but that termination of the recipient's grant, in whole 
or in part, is

[[Page 431]]

not warranted, and the violation occurred less than 5 years prior to the 
date the recipient receives a preliminary determination pursuant to 
Sec.  1606.6(a) of this part.
    (c) A determination of whether there has been a substantial 
violation for the purposes of this part, and the magnitude of any 
termination, in whole or in part, or any limited reduction in funding, 
shall be based on consideration of the criteria set forth in the 
definition of ``substantial violation'' in Sec.  1606.2 of this part.



Sec.  1606.4  Grounds for debarment.

    (a) The Corporation may debar a recipient, on a showing of good 
cause, from receiving an additional award of financial assistance from 
the Corporation.
    (b) As used in paragraph (a) of this section, ``good cause'' means:
    (1) A termination of financial assistance to the recipient pursuant 
to part 1640 of this chapter;
    (2) A termination of financial assistance in whole of the most 
recent grant or contract of financial assistance;
    (3) The substantial violation by the recipient of the restrictions 
delineated in Sec.  1610.2(a) and (b) of this chapter, provided that the 
violation occurred within 5 years prior to the receipt of the debarment 
notice by the recipient;
    (4) Knowing entry by the recipient into:
    (i) Any agreement or arrangement, including, but not limited to, a 
subgrant, subcontract, or other similar agreement, with an entity 
debarred by the Corporation during the period of debarment if so 
precluded by the terms of the debarment; or
    (ii) An agreement for professional services with an independent 
public accountant or other auditor debarred by the Corporation during 
the period of debarment if so precluded by the terms of the debarment; 
or
    (5) The filing of a lawsuit by a recipient, provided that the 
lawsuit:
    (i) Was filed on behalf of the recipient as plaintiff, rather than 
on behalf of a client of the recipient;
    (ii) Named the Corporation, or any agency or employee of a Federal, 
State, or local government as a defendant;
    (iii) Seeks judicial review of an action by the Corporation or such 
government agency that affects the recipient's status as a recipient of 
Federal funding, except for a lawsuit that seeks review of whether the 
Corporation or agency acted outside of its statutory authority or 
violated the recipient's constitutional rights; and
    (iv) Was initiated after December 23, 1998.



Sec.  1606.5  Procedures.

    (a) Before any final action is taken under this part, the recipient 
will be provided notice and an opportunity to be heard as set out in 
this part.
    (b) Prior to a preliminary determination involving a limited 
reduction of funding, the Corporation shall designate either the 
President or another senior Corporation employee to conduct any final 
review that is requested pursuant to Sec.  1606.10 of this part. The 
Corporation shall ensure that the person so designated has had no prior 
involvement in the proceedings under this part so as to meet the 
criterion set out in Sec.  1606.10(d) of this part.



Sec.  1606.6  Preliminary determination and final decision.

    (a) When the Corporation has made a preliminary determination of one 
or more of the following, the Corporation shall issue a written notice 
to the recipient and the Chair of the recipient's governing body: that a 
recipient's grant or contract should be terminated, that a limited 
reduction of funding shall be imposed, or that a recipient should be 
debarred. The notice shall:
    (1) State the substantial noncompliance that constitutes the grounds 
for the proposed action;
    (2) Identify, with reasonable specificity, any facts or documents 
relied upon as justification for the proposed action;
    (3) Inform the recipient of the proposed amount and proposed 
effective date for the proposed action;
    (4) Advise the recipient of its procedural rights for review of the 
proposed action under this part;
    (5) Inform the recipient of its right to receive interim funding 
pursuant to Sec.  1606.13 of this part;

[[Page 432]]

    (6) Specify what, if any, corrective action the recipient can take 
to avoid the proposed action; and
    (7) Summarize prior attempts, if any, for resolution of the 
substantial noncompliance.
    (b) If the recipient does not request review, as provided for in 
this part, before the relevant time limits have expired, then the 
Corporation may issue a final decision to the recipient. No further 
appeal or review will be available under this part.



Sec.  1606.7  Corrective action, informal conference, 
review of written materials, and final decision.

    (a) If the Corporation proposes a corrective action in the 
preliminary determination pursuant to Sec.  1606.6(a)(6) of this part, 
then the recipient may accept and implement the corrective action, in 
lieu of an informal conference or submission of written materials under 
this section, subject to the following requirements:
    (1) Within 10 business days of receipt of the preliminary 
determination, the recipient may submit a draft compliance agreement to 
accept the terms of the proposed corrective action, which must include 
an implementation plan and timeline;
    (2) If the Corporation approves the draft compliance agreement, 
including any modifications suggested by the recipient or the 
Corporation, then it shall be memorialized in a final compliance 
agreement signed by the Corporation and the recipient, which shall stay 
these proceedings;
    (3) If the recipient completes the terms of the written compliance 
agreement in a time and manner that is satisfactory to the Corporation, 
then the Corporation shall withdraw the preliminary determination; and
    (4) If the Corporation determines at any time that the recipient has 
not presented an acceptable draft compliance agreement, or has not 
fulfilled any terms of the final compliance agreement, then the 
Corporation shall notify the recipient in writing. Within 15 calendar 
days of that notice, the Corporation shall modify or affirm the 
preliminary determination as a draft final decision. The draft final 
decision shall summarize these attempts at resolution. The draft final 
decision need not engage in a detailed analysis of the failure to 
resolve the substantial noncompliance.
    (b) A recipient may submit written materials in opposition to the 
preliminary determination, request an informal conference, or both, as 
follows:
    (1) For terminations or debarments, within 30 calendar days of 
receipt of the preliminary determination; or
    (2) For limited reductions in funding, within 10 business days of 
receipt of the preliminary determination.
    (c) Within 5 business days of receipt of a request for a conference, 
the Corporation shall notify the recipient of the time and place the 
conference will be held. Some or all of the participants in the 
conference may attend via telephone, unless the recipient requests an 
in-person meeting between the Corporation and at least one 
representative of the recipient. If the recipient requests an in-person 
meeting, then other participants may attend via telephone. Alternative 
means of participation other than the telephone are permissible at the 
sole discretion of the Corporation.
    (d) The informal conference shall be conducted by the Corporation 
employee who issued the preliminary determination or any other 
Corporation employee with a seniority level equivalent to the level of 
an office director or higher.
    (e) At the informal conference, the Corporation and the recipient 
shall both have an opportunity to state their case, seek to narrow the 
issues, explore the possibilities of settlement or compromise including 
implementation of corrective actions, and submit written materials.
    (f) If an informal conference is conducted or written materials are 
submitted in opposition to the proposed determination by the recipient, 
or both, the Corporation shall consider any written materials and any 
oral presentation or written materials submitted by the recipient at an 
informal conference. Based on any of these materials or the informal 
conference, or both, the Corporation shall modify, withdraw, or affirm 
the preliminary determination through a draft final decision in writing, 
which shall be provided

[[Page 433]]

to the recipient within the later of 15 calendar days after the 
conclusion of the informal conference or after the recipient of written 
materials in opposition to the proposed determination (when no informal 
conference is requested). Except for decisions to withdraw the 
preliminary determination, the draft final decision shall include a 
summary of the issues raised in the informal conference and presented in 
any written materials. The draft final decision need not engage in a 
detailed analysis of all issues raised.
    (g) If the recipient does not request further process, as provided 
for in this part, then, after the relevant time limits have expired, the 
Corporation shall notify the recipient that no further appeal or review 
will be available under this part and may proceed to issue the final 
decision.



Sec.  1606.8  Hearing for a termination or debarment.

    (a) For terminations or debarments only, the recipient may make a 
written request for a hearing within the later of: 30 calendar days of 
its receipt of the preliminary determination, or 15 calendar days of 
receipt of the draft final decision issued under Sec.  1606.7 of this 
part, as the case may be.
    (b) Within 10 business days after receipt of a request for a 
hearing, the Corporation shall notify the recipient in writing of the 
date, time, and place of the hearing and the names of the hearing 
officer and of the attorney who will represent the Corporation. The 
time, date, and location of the hearing may be changed upon agreement of 
the Corporation and the recipient.
    (c) A hearing officer shall be appointed by the President or 
designee and may be an employee of the Corporation. The hearing officer 
shall not have been involved in the current termination or debarment 
action, and the President or designee shall determine that the person is 
qualified to preside over the hearing as an impartial decision maker. An 
impartial decision maker is a person who has not formed a prejudgment on 
the case and does not have a pecuniary interest or personal bias in the 
outcome of the proceeding.
    (d) The hearing shall be scheduled to commence at the earliest 
appropriate date, ordinarily not later than 30 calendar days after the 
Corporation receives the notice required by paragraph (b) of this 
section.
    (e) The hearing officer shall preside over and conduct a full and 
fair hearing, avoid delay, maintain order, and insure that a record 
sufficient for full disclosure of the facts and issues is maintained.
    (f) The hearing shall be open to the public unless, for good cause 
and the interests of justice, the hearing officer determines otherwise.
    (g) The Corporation and the recipient shall be entitled to be 
represented by counsel or by another person.
    (h) At the hearing, the Corporation and the recipient each may 
present its case by oral or documentary evidence, conduct examination 
and cross-examination of witnesses, examine any documents submitted, and 
submit rebuttal evidence.
    (i) The hearing officer shall not be bound by the technical rules of 
evidence and may make any procedural or evidentiary ruling that may help 
to insure full disclosure of the facts, to maintain order, or to avoid 
delay. Irrelevant, immaterial, repetitious or unduly prejudicial matter 
may be excluded.
    (j) Official notice may be taken of published policies, rules, 
regulations, guidelines, and instructions of the Corporation, of any 
matter of which judicial notice may be taken in a Federal court, or of 
any other matter whose existence, authenticity, or accuracy is not open 
to serious question.
    (k) A stenographic or electronic record shall be made in a manner 
determined by the hearing officer, and a copy shall be made available to 
the recipient at no cost.
    (l) The Corporation shall have the initial burden to show grounds 
for a termination or debarment. The burden of persuasion shall then 
shift to the recipient to show by a preponderance of evidence on the 
record that its funds should not be terminated or that it should not be 
debarred.



Sec.  1606.9  Recommended decision for a termination or debarment.

    (a) For termination or debarment hearings under Sec.  1606.8 of this 
part,

[[Page 434]]

within 20 calendar days after the conclusion of the hearing, the hearing 
officer shall issue a written recommended decision to the recipient and 
the Corporation, which may:
    (1) Terminate financial assistance to the recipient commencing as of 
a specific date;
    (2) Impose a limited reduction of funding commencing as of a 
specific date;
    (3) Continue the recipient's current level of financial assistance 
under the grant or contract, subject to any modification or condition 
that may be deemed necessary on the basis of information adduced at the 
hearing; or
    (4) Debar the recipient from receiving an additional award of 
financial assistance from the Corporation.
    (b) The recommended decision shall contain findings of the 
significant and relevant facts and shall state the reasons for the 
decision. Findings of fact shall be based solely on the record of, and 
the evidence adduced at the hearing or on matters of which official 
notice was taken.



Sec.  1606.10  Final decision for a termination, debarment, 
or limited reduction of funding.

    (a) If neither the Corporation nor the recipient requests review by 
the President of a draft final decision pursuant to Sec.  1606.7 of this 
part or a recommended decision pursuant to Sec.  1606.9, as provided for 
in this part, within 10 business days after receipt by the recipient, 
then the Corporation shall issue to the recipient a final decision 
containing either the draft final decision or the recommended decision, 
as the case may be. No further appeal or review will be available under 
this part.
    (b) The recipient or the Corporation may seek review by the 
President of a draft final decision or a recommended decision. A request 
shall be made in writing within 10 business days after receipt of the 
draft final decision or recommended decision by the party seeking review 
and shall state in detail the reasons for seeking review.
    (c) The President's review shall be based solely on the 
administrative record of the proceedings, including the appeal to the 
President, and any additional submissions, either oral or in writing, 
that the President may request. A recipient shall be given a copy of, 
and an opportunity to respond to, any additional submissions made to the 
President. All submissions and responses made to the President shall 
become part of the administrative record. Upon request, the Corporation 
shall provide a copy of the administrative record to the recipient.
    (d) For an appeal of a draft final decision involving a limited 
reduction of funding pursuant to Sec.  1606.7 of this part (for which 
there is no right to a hearing under Sec.  1606.8 of this part) the 
President may not review the appeal if the President has had prior 
involvement in the proceedings under this part. If the President cannot 
review the appeal, or the President chooses not to do so, then the 
appeal shall be reviewed by either the individual designated to do so 
pursuant to Sec.  1606.5(b) of this part, or by another senior 
Corporation employee designated by the President who has not had prior 
involvement in the proceedings under this part.
    (e) As soon as practicable after receipt of the request for review 
of a draft final decision or a recommended decision, but not later than 
30 calendar days thereafter, the President or designee shall adopt, 
modify, or reverse the draft final decision or the recommended decision, 
or direct further consideration of the matter. In the event of 
modification or reversal of a recommended decision pursuant to Sec.  
1606.9 of this part, this decision shall conform to the requirements of 
Sec.  1606.9(b) of this part.
    (f) The decision of the President or designee under this section 
shall become final upon receipt by the recipient.



Sec.  1606.11  Qualifications on hearing procedures.

    (a) Except as modified by paragraph (c) of this section, the hearing 
rights set out in Sec. Sec.  1606.6 through 1606.10 of this part shall 
apply to any action to debar a recipient or to terminate a recipient's 
funding.
    (b) The Corporation may simultaneously take action to debar and 
terminate a recipient within the same

[[Page 435]]

hearing procedure that is set out in Sec. Sec.  1606.6 through 1606.10 
of this part. In such a case, the same hearing officer shall oversee 
both the termination and debarment actions in the same hearing.
    (c) If the Corporation does not simultaneously take action to debar 
and terminate a recipient under paragraph (b) of this section and 
initiates a debarment action based on a prior termination under Sec.  
1606.4(b)(1) or (2), the hearing procedures set out in Sec.  1606.6 
through 1606.10 of this part shall not apply. Instead:
    (1) The President shall appoint a hearing officer, as described in 
Sec.  1606.8(c), to review the matter and make a written recommended 
decision on debarment.
    (2) The hearing officer's recommended decision shall be based solely 
on the information in the administrative record of the termination 
proceedings providing grounds for the debarment and any additional 
submissions, either oral or in writing, that the hearing officer may 
request. The recipient shall be given a copy of and an opportunity to 
respond to any additional submissions made to the hearing officer. All 
submissions and responses made to the hearing officer shall become part 
of the administrative record.
    (3) If neither party appeals the hearing officer's recommended 
decision within 10 business days of receipt of the recommended decision, 
the decision shall become final and the final decision shall be issued 
by the Corporation to the recipient within 5 business days.
    (4) Either party may appeal the recommended decision to the 
President who shall review the matter and issue a final written decision 
pursuant to Sec.  1606.9(b).
    (d) All final debarment decisions shall state the effective date of 
the debarment and the period of debarment, which shall be commensurate 
with the seriousness of the cause for debarment but shall not be for 
longer than 6 years.
    (e) The Corporation may reverse a debarment decision upon request 
for the following reasons:
    (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 of a recipient;
    (4) Elimination of other causes for which the debarment was imposed; 
or
    (5) Other reasons the Corporation deems appropriate.



Sec.  1606.12  Time and waiver.

    (a) Except for the 6-year time limit for debarments in Sec.  
1606.11(d) of this part, any period of time provided in these rules may, 
upon good cause shown and determined, be extended in writing:
    (1) By the Corporation, unless a hearing officer has been appointed;
    (2) By the hearing officer, until the recommended decision has been 
issued; or
    (3) By the President at any time.
    (b) Failure by the Corporation to meet a time requirement of this 
part does not preclude the Corporation from terminating a recipient's 
grant or contract with the Corporation or imposing a limited reduction 
of funding.



Sec.  1606.13  Interim and other funding, reprogramming, implementation.

    (a) Pending the completion of termination or limited reduction of 
funding proceedings under this part, the Corporation shall provide the 
recipient with the level of financial assistance provided for under its 
current grant or contract for financial assistance with the Corporation.
    (b) After a final decision has been made to terminate a recipient's 
grant or contract or to impose a limited reduction of funding, the 
recipient loses all rights to the terminated or reduced funds.
    (c) After a final decision has been made to terminate a recipient's 
grant or contract, the Corporation may authorize closeout or transition 
funding, or both, if necessary to enable the recipient to close or 
transfer current matters in a manner consistent with the recipient's 
professional responsibilities to its present clients.
    (d) The Corporation has sole discretion to determine the manner in 
which the final decision is implemented. The Corporation's discretion 
includes, but

[[Page 436]]

is not limited to the decision to pro-rate the amount of funds reduced 
over the remaining disbursements in the funding term or deduct the sum 
in a single disbursement, or any other method the Corporation deems 
appropriate.
    (e) Funds recovered by the Corporation pursuant to a termination or 
limited reduction of funding shall be reallocated by the Corporation for 
basic field purposes at its sole discretion.



Sec.  1606.14  Recompetition.

    After a final decision has been issued by the Corporation 
terminating financial assistance to a recipient in whole for any service 
area, the Corporation shall implement a new competitive bidding process 
for the affected service area. Until a new recipient has been awarded a 
grant pursuant to such process, the Corporation shall take all practical 
steps to ensure the continued provision of legal assistance in the 
service area pursuant to Sec.  1634.11 of this part.



PART 1607_GOVERNING BODIES--Table of Contents



Sec.
1607.1 Purpose.
1607.2 Definitions.
1607.3 Composition.
1607.4 Functions of a governing body.
1607.5 Compensation.
1607.6 Waiver.

    Authority: 42 U.S.C. 2996g(e).

    Source: 59 FR 65254, Dec. 19, 1994, unless otherwise noted.



Sec.  1607.1  Purpose.

    This part is designed to insure that the governing body of a 
recipient will be well qualified to guide a recipient in its efforts to 
provide high-quality legal assistance to those who otherwise would be 
unable to obtain adequate legal counsel and to insure that the recipient 
is accountable to its clients.



Sec.  1607.2  Definitions.

    As used in this part,
    (a) Attorney member means a board member who is an attorney admitted 
to practice in a State within the recipient's service area.
    (b) Board member means a member of a recipient's governing body or 
policy body.
    (c) Eligible client member means a board member who is financially 
eligible to receive legal assistance under the Act and part 1611 of this 
chapter, without regard to whether the person actually has received or 
is receiving legal assistance at that time. Eligibility of client 
members must be determined by the recipient or, if the recipient so 
chooses, by the nominating organization(s) or group(s) in accordance 
with written policies adopted by the recipient.
    (d) Governing body means the board of directors or other body with 
authority to govern the activities of a recipient receiving funds under 
Sec.  1006(a)(1)(A) of the Act.
    (e) Policy body means a policy board or other body established by a 
recipient to formulate and enforce policy with respect to the services 
provided under a grant or contract made under the Act.
    (f) Recipient means any grantee or contractor receiving financial 
assistance from the Corporation under Sec.  1006(a)(1)(A) of the Act.

[59 FR 65254, Dec. 19, 1994, as amended at 84 FR 1407, Feb. 4, 2019]



Sec.  1607.3  Composition.

    (a) A recipient shall be incorporated in a State in which it 
provides legal assistance and shall have a governing body which 
reasonably reflects the interests of the eligible clients in the area 
served and which consists of members, each of whom is supportive of the 
purposes of the Act and has an interest in, and knowledge of, the 
delivery of quality legal services to the poor.
    (b) At least sixty percent (60%) of a governing body shall be 
attorney members.
    (1) A majority of the members of the governing body shall be 
attorney members appointed by the governing body(ies) of one or more 
State, county or municipal bar associations, the membership of which 
represents a majority of attorneys practicing law in the localities in 
which the recipient provides legal assistance.
    (i) Appointments may be made either by the bar association which 
represents

[[Page 437]]

a majority of attorneys in the recipient's service area or by bar 
associations which collectively represent a majority of the attorneys 
practicing law in the recipient's service area.
    (ii) Recipients that provide legal assistance in more than one State 
may provide that appointments of attorney members be made by the 
appropriate bar association(s) in the State(s) or locality(ies) in which 
the recipient's principal office is located or in which the recipient 
provides legal assistance.
    (2) Any additional attorney members may be selected by the 
recipient's governing body or may be appointed by other organizations 
designated by the recipient which have an interest in the delivery of 
legal services to the poor.
    (3) Appointments shall be made so as to insure that the attorney 
members reasonably reflect the diversity of the legal community and the 
population of the areas served by the recipient, including race, 
ethnicity, gender and other similar factors.
    (c) At least one-third of the members of a recipient's governing 
body must be eligible client members when initially appointed by the 
recipient. The recipient must solicit recommendations for eligible 
client members from a variety of appropriate groups designated by the 
recipient that may include, but are not limited to, client and 
neighborhood associations and community-based organizations that 
advocate for or deliver services or resources to the client community 
served by the recipient. Recipients should solicit recommendations from 
groups in a manner that reflects, to the extent possible, the variety of 
interests within the client community, and eligible client members 
should be selected so that they reasonably reflect the diversity of the 
eligible client population served by the recipient, including race, 
gender, ethnicity and other similar factors.
    (d) The remaining members of a governing body may be appointed by 
the recipient's governing body or selected in a manner described in the 
recipient's bylaws or policies, and the appointment or selection shall 
be made so that the governing body as a whole reasonably reflects the 
diversity of the areas served by the recipient, including race, 
ethnicity, gender and other similar factors.
    (e) The nonattorney members of a governing body shall not be 
dominated by persons serving as the representatives of a single 
association, group or organization, except that eligible client members 
may be selected from client organizations that are composed of 
coalitions of numerous smaller or regionally based client groups.
    (f) Members of a governing body may be selected by appointment, 
election, or other means consistent with this part and with the 
recipient's bylaws and applicable State law.
    (g) Recipients shall make reasonable and good faith efforts to 
insure that governing body vacancies are filled as promptly as possible.
    (h) Recipients may recommend candidates for governing body 
membership to the appropriate bar associations and other appointing 
groups and should consult with the appointing organizations to insure 
that:
    (1) Appointees meet the criteria for board membership set out in 
this part, including financial eligibility for persons appointed as 
eligible clients, bar admittance requirements for attorney board 
members, and the general requirements that all members be supportive of 
the purposes of the Act and have an interest in and knowledge of the 
delivery of legal services to the poor;
    (2) The particular categories of board membership and the board as a 
whole meet the diversity requirements described in Sec. Sec.  
1607.3(b)(3), 1607.3(c) and 1607.3(d);
    (3) Appointees do not have actual and significant individual or 
institutional conflicts of interest with the recipient or the 
recipient's client community that could reasonably be expected to 
influence their ability to exercise independent judgment as members of 
the recipient's governing body.

[59 FR 65254, Dec. 19, 1994, as amended at 84 FR 1407, Feb. 4, 2019]



Sec.  1607.4  Functions of a governing body.

    (a) A governing body shall have at least four meetings a year. A 
recipient shall give timely and reasonable prior public notice of all 
meetings, and all

[[Page 438]]

meetings shall be public except for those concerned with matters 
properly discussed in executive session in accordance with written 
policies adopted by the recipient's governing body.
    (b) In addition to other powers and responsibilities that may be 
provided for by State law, a governing body shall establish and enforce 
broad policies governing the operation of a recipient, but neither the 
governing body nor any member thereof shall interfere with any 
attorney's professional responsibilities to a client or obligations as a 
member of the profession or interfere with the conduct of any ongoing 
representation.
    (c) A governing body shall adopt bylaws which are consistent with 
State law and the requirements of this part. Recipients shall submit a 
copy of such bylaws to the Corporation and shall give the Corporation 
notice of any changes in such bylaws within a reasonable time after the 
change is made.



Sec.  1607.5  Compensation.

    (a) While serving on the governing body of a recipient, no attorney 
member shall receive compensation from that recipient, but any member 
may receive a reasonable per diem expense payment or reimbursement for 
actual expenses for normal travel and other reasonable out-of-pocket 
expenses in accordance with written policies adopted by the recipient.
    (b) Pursuant to a waiver granted under Sec.  1607.6(b)(1), a 
recipient may adopt policies that would permit partners or associates of 
attorney members to participate in any compensated private attorney 
involvement activities supported by the recipient.
    (c) A recipient may adopt policies that permit attorney members, 
subject to terms and conditions applicable to other attorneys in the 
service area:
    (1) To accept referrals of fee-generating cases under part 1609 of 
these regulations;
    (2) To participate in any uncompensated private attorney involvement 
activities supported by the recipient;
    (3) To seek and accept attorneys' fees awarded by a court or 
administrative body or included in a settlement in cases undertaken 
pursuant to Sec. Sec.  1607.5 (c)(1) and (2); and
    (4) To receive reimbursement from the recipient for out-of-pocket 
expenses incurred by the attorney member as part of the activities 
undertaken pursuant to Sec.  1607.5(c)(2).

[59 FR 65254, Dec. 19, 1994, as amended at 60 FR 2330, Jan. 9, 1995]



Sec.  1607.6  Waiver.

    (a) Upon application, the president shall waive the requirements of 
this part to permit a recipient that was funded under Sec.  222(a)(3) of 
the Economic Opportunity Act of 1964 and, on July 25, 1974, had a 
majority of persons who were not attorneys on its governing body, to 
continue such nonattorney majority.
    (b) Upon application, the president may waive any of the 
requirements of this part which are not mandated by applicable law if a 
recipient demonstrates that it cannot comply with them because of: (1) 
The nature of the population, legal community or area served; or (2) 
Special circumstances, including but not limited to, conflicting 
requirements of the recipient's other major funding source(s) or State 
law.
    (c) A recipient seeking a waiver under Sec.  1607.6(b)(1) shall 
demonstrate that it has made diligent efforts to comply with the 
requirements of this part.
    (d) As a condition of granting a waiver under Sec.  1607.6(b)(2) of 
any of the requirements imposed upon governing bodies by Sec.  1607.3, 
the president shall require that a recipient have a policy body with a 
membership composed and appointed in the manner prescribed by Sec.  
1607.3. Such policy body shall be subject to the meeting requirements of 
Sec.  1607.4(a) and its attorney members shall be subject to the 
restrictions on compensation contained in Sec.  1607.5. The policy body 
shall have such specific powers and responsibilities as the President 
determines are necessary to enable it to formulate and enforce policy 
with respect to the services provided under the recipient's LSC grant or 
contract.

[[Page 439]]



PART 1608_PROHIBITED POLITICAL ACTIVITIES--Table of Contents



Sec.
1608.1 Purpose.
1608.2 Definition.
1608.3 Prohibitions applicable to the Corporation and to recipients.
1608.4 Prohibitions applicable to all employees.
1608.5 Prohibitions applicable to Corporation employees and staff 
          attorneys.
1608.6 Prohibitions applicable to attorneys and to staff attorneys.
1608.7 Attorney-client relationship.
1608.8 Enforcement.

    Authority: Secs. 1001(5), 1005(b)(2), 1006(b)(3), 1006(b)(5)(B), 
1006(d)(3), 1006 (d)(4), 1006(e)(1), 1006(e)(2), 1007(a)(6), 1007(b)(2); 
42 U.S.C. 2996(5), 2996d(b)(2), 2996e(b)(3), 2996e(b)(5)(B), 
2996e(d)(3), 2996e(d)(4), 2996e(e)(1), 2996e(e)(2), 2996f(a)(6), 
2996(b)(2).

    Source: 43 FR 32773, July 28, 1978, unless otherwise noted.



Sec.  1608.1  Purpose.

    This part is designed to insure that the Corporation's resources 
will be used to provide high quality legal assistance and not to support 
or promote political activities or interests. The part should be 
construed and applied so as to further this purpose without infringing 
upon the constitutional rights of employees or the professional 
responsibilities of attorneys to their clients.



Sec.  1608.2  Definition.

    Legal assistance activities, as used in this part, means any 
activity.
    (a) Carried out during an employee's working hours;
    (b) Using resources provided by the Corporation or by a recipient; 
or
    (c) That, in fact, provides legal advice, or representation to an 
eligible client.



Sec.  1608.3  Prohibitions applicable to the Corporation and to recipients.

    (a) Neither the Corporation nor any recipient shall use any 
political test or qualification in making any decision, taking any 
action, or performing any function under the act.
    (b) Neither the Corporation nor any recipient shall contribute or 
make available Corporation funds, or any personnel or equipment
    (1) To any political party or association;
    (2) To the campaign of any candidate for public or party office; or
    (3) For use in advocating or opposing any ballot measure, 
initiative, or referendum.



Sec.  1608.4  Prohibitions applicable to all employees.

    (a) No employee shall intentionally identify the Corporation or a 
recipient with any partisian or nonpartisan political activity, or with 
the campaign of any candidate for public or party office.
    (b) No employee shall use any Corporation funds for activities 
prohibited to attorneys under Sec.  1608.6; nor shall an employee 
intentionally identify or encourage others to identify the Corporation 
or a recipient with such activities.



Sec.  1608.5  Prohibitions applicable to Corporation employees 
and to staff attorneys.

    While employed under the act, no Corporation employee and no staff 
attorney shall, at any time,
    (a) Use official authority or influence for the purpose of 
interfering with or affecting the result of an election or nomination 
for office, whether partisan of nonpartisan;
    (b) Directly or indirectly coerce, attempt to coerce, command or 
advise an employee of the Corporation or of any recipient to pay, lend, 
or contribute anything of value to a political party, or committee, 
organization, agency or person for political purposes; or
    (c) Be a candidate for partisan elective public office.



Sec.  1608.6  Prohibitions applicable to attorneys and to staff attorneys.

    While engaged in legal assistance activities supported under the 
act, no attorney shall engage in
    (a) Any political activity,
    (b) Any activity to provide voters with transportation to the polls, 
or to provide similar assistance in connection with an election, or
    (c) Any voter registration activity.



Sec.  1608.7  Attorney-client relationship.

    Nothing in this part is intended to prohibit an attorney or staff 
attorney

[[Page 440]]

from providing any form of legal assistance to an eligible client, or to 
interfere with the fulfillment of any attorney's professional 
responsibilities to a client.



Sec.  1608.8  Enforcement.

    This part shall be enforced according to the procedures set forth in 
Sec.  1612.5.



PART 1609_FEE-GENERATING CASES--Table of Contents



Sec.
1609.1 Purpose.
1609.2 Definitions.
1609.3 Authorized representation in a fee-generating case.
1609.4 Requesting and receiving attorneys' fees.
1609.5 Receiving reimbursement from a client.
1609.6 Recipient policies, procedures and recordkeeping.

    Authority: 42 U.S.C. 2996g(e).

    Source: 62 FR 19399, Apr. 21, 1997, unless otherwise noted.



Sec.  1609.1  Purpose.

    This part is designed:
    (a) To ensure that recipients do not use scarce legal services 
resources when private attorneys are available to provide effective 
representation and
    (b) To assist eligible clients to obtain appropriate and effective 
legal assistance.



Sec.  1609.2  Definitions.

    (a) Fee-generating case means any case or matter which, if 
undertaken on behalf of an eligible client by an attorney in private 
practice, reasonably may be expected to result in a fee for legal 
services from an award to a client.
    (b) Fee-generating case does not include a case where:
    (1) A court appoints a recipient or an employee of a recipient to 
provide representation in a case pursuant to a statute or a court rule 
or practice equally applicable to all attorneys in the jurisdiction;
    (2) A recipient undertakes representation under a contract with a 
government agency or other entity; or
    (3) A recipient provides only advice and counsel or limited 
services, as those terms are defined in 45 CFR 1611.1(a) and (e), to an 
eligible client.

[62 FR 19399, Apr. 21, 1997, as amended at 82 FR 20446, May 2, 2017]



Sec.  1609.3  Authorized representation in a fee-generating case.

    (a) Except as provided in paragraph (b) of this section, a recipient 
may not use Corporation funds to provide legal assistance in a fee-
generating case unless:
    (1) The case has been rejected by the local lawyer referral service, 
or by two private attorneys; or
    (2) Neither the referral service nor two private attorneys will 
consider the case without payment of a consultation fee.
    (b) A recipient may provide legal assistance in a fee-generating 
case without first attempting to refer the case pursuant to paragraph 
(a) of this section only when:
    (1) An eligible client is seeking benefits under Subchapter II of 
the Social Security Act, 42 U.S.C. 401 et seq., as amended, Federal Old 
Age, Survivors, and Disability Insurance Benefits; or Subchapter XVI of 
the Social Security Act, 42 U.S.C. 1381 et seq., as amended, 
Supplemental Security Income for Aged, Blind, and Disabled;
    (2) The recipient, after consultation with appropriate 
representatives of the private bar, has determined that the type of case 
is one that private attorneys in the area served by the recipient 
ordinarily do not accept, or do not accept without prepayment of a fee; 
or
    (3) The director of the recipient, or the director's designee, has 
determined that referral of the case to the private bar is not possible 
because:
    (i) Documented attempts to refer similar cases in the past generally 
have been futile;
    (ii) Emergency circumstances compel immediate action before referral 
can be made, but the client is advised that, if appropriate, and 
consistent with professional responsibility, referral will be attempted 
at a later time; or

[[Page 441]]

    (iii) Recovery of damages is not the principal object of the 
recipient's client's case and substantial statutory attorneys' fees are 
not likely to be available.

[62 FR 19399, Apr. 21, 1997, as amended at 75 FR 6818, Feb. 11, 2010; 76 
FR 23504, Apr. 27, 2011; 82 FR 20447, May 2, 2017]



Sec.  1609.4  Requesting and receiving attorneys' fees.

    (a) Any petition seeking attorneys' fees for representation 
supported in whole or in part with funds provided by LSC, shall, to the 
extent permitted by law and rules in the jurisdiction, be filed in the 
name of the recipient.
    (b) Attorneys' fees received by a recipient or an employee of a 
recipient for representation supported in whole or in part with funds 
provided by LSC shall be allocated to the fund in which the recipient's 
LSC grant is recorded in the same proportion that the amount of LSC 
funds expended bears to the total amount expended by the recipient to 
support the representation.
    (c) Attorneys' fees received shall be recorded during the accounting 
period in which the money from the fee award is actually received by the 
recipient and may be expended for any purpose permitted by the LSC Act, 
regulations, and other law applicable at the time the money is received.

[82 FR 20447, May 2, 2017]



Sec.  1609.5  Receiving reimbursement from a client.

    (a) When a case results in recovery of damages or statutory 
benefits, a recipient may accept reimbursement from the client for out-
of-pocket costs and expenses incurred in connection with the case, if 
the client has agreed in writing to reimburse the recipient for such 
costs and expenses out of any such recovery.
    (b) A recipient may require a client to pay court costs when the 
client does not qualify to proceed in forma pauperis under the rules of 
the jurisdiction.

[75 FR 6818, Feb. 11, 2010, as amended at 82 FR 20447, May 2, 2017]



Sec.  1609.6  Recipient policies, procedures and recordkeeping.

    Each recipient shall adopt written policies and procedures to guide 
its staff in complying with this part and shall maintain records 
sufficient to document the recipient's compliance with this part.

[62 FR 19399, Apr. 21, 1997. Redesignated at 75 FR 6818, Feb. 11, 2010]



PART 1610_USE OF NON-LSC FUNDS; PROGRAM INTEGRITY--Table of Contents



                      Subpart A_General Provisions

Sec.
1610.1 Purpose.
1610.2 Definitions.
1610.3 Other requirements on recipients' funds.

                     Subpart B_Use of Non-LSC Funds

1610.4 Prohibitions on the use of non-LSC funds.
1610.5 Grants, subgrants, donations, and gifts made by recipients.
1610.6 Exceptions for public defender programs and criminal or related 
          cases.
1610.7 Notification to non-LSC funders and donors.

                       Subpart C_Program Integrity

1610.8 Program integrity of recipient.

                   Subpart D_Accounting and Compliance

1610.9 Accounting.
1610.10 Compliance.

    Authority: 42 U.S.C. 2996g(e).

    Source: 85 FR 63214, Oct. 7, 2020, unless otherwise noted.



                      Subpart A_General Provisions



Sec.  1610.1  Purpose.

    This part is designed to implement restrictions and requirements on 
the use of non-LSC funds by LSC recipients and to set requirements for 
each LSC recipient to maintain program integrity with respect to any 
organization that engages in LSC-restricted activities.



Sec.  1610.2  Definitions.

    (a) Use of funds means the expenditure of funds by an LSC recipient.

[[Page 442]]

    (1) Authorized use of funds means any use of funds within the 
purpose for which the funds were provided. The following non-exhaustive 
list provides examples of some of the types of purposes that a grantor, 
donor, or other might identify.
    (i) A grant stating that the funds provided are available to support 
legal services for victims of domestic violence regardless of income or 
financial resources are authorized for those purposes;
    (ii) A grant stating that the funds provided are available to 
support any civil legal services to people with household incomes below 
200% of the Federal Poverty Guidelines are authorized for those 
purposes;
    (iii) A private donation stating that the funds are for eviction 
work are authorized for that purpose; or
    (iv) A private donation without any instructions from the donor or 
grantor regarding the use of the funds are available for any purposes.
    (2) Unauthorized use of funds means any use of funds that is not an 
authorized use as defined above.
    (b) Derived from means the recipient obtained the funds either 
directly from the source or as the result of a series of grants and 
subgrants (or similar arrangements) originating from the source. For 
example, a state provides public funds to a private, non-LSC-funded 
statewide legal aid entity. The statewide legal aid entity subgrants 
some of those public funds to an LSC recipient to provide services in 
six counties. The subgranted funds remain public funds under this rule 
because they are derived from public funds.
    (c) Non-LSC funds means funds derived from any source other than 
LSC.
    (1) Private funds means funds that are derived from any source other 
than LSC or the other categories of non-LSC funds in this section. 
Examples of private funds are donations from individuals or grants that 
do not qualify as public funds or tribal funds in this section.
    (2) Public funds means funds that are:
    (i) Derived from a Federal, State, or local government or 
instrumentality of a government; or
    (ii) Derived from Interest on Lawyers' Trust Account (IOLTA or IOLA) 
programs established by State court rules or legislation that collect 
and distribute interest on lawyers' trust accounts.
    (3) Tribal funds means funds that are derived from an Indian tribe 
or from a private nonprofit foundation or organization for the benefit 
of Indians or Indian tribes.
    (d) Restrictions means the prohibitions or limitations on the use of 
LSC funds by a recipient and on the use of non-LSC funds as described in 
this part. LSC has four categories of restrictions: Extended, standard, 
limited, and other. The restrictions appear in 45 CFR parts 1600 through 
1644, in the LSC Act at 42 U.S.C. 2996-2996l and in the sections of 
LSC's annual appropriation (Appropriations Restrictions) that 
incorporate the restrictions enacted in section 504 of Title V in Public 
Law 104-134, 122 Stat. 1321-50 (1996), as incorporated through Public 
Law 105-119, tit. V, Sec.  502(a)(2), 111 Stat. 2440, 2510 (1998) and 
subject to modifications in other statutes.
    (1) Extended restrictions are the restrictions on:
    (i) Abortion litigation (other abortion activities are subject to a 
standard restriction)--Section 504(a)(14) of the Appropriations 
Restrictions;
    (ii) Aliens (representation of non-U.S. citizens)--45 CFR part 1626;
    (iii) Class actions--45 CFR part 1617;
    (iv) Evictions from public housing involving illegal drug 
activities--45 CFR part 1633;
    (v) Lobbying in general--45 CFR1612.3, subject to the limitations 
and exceptions in 45 CFR 1612.5 (activities that are not lobbying) and 
45 CFR 1612.6 (exceptions for non-LSC funds that are a limited 
restriction);
    (vi) Prisoner litigation--45 CFR part 1637;
    (vii) Redistricting or census--45 CFR part 1632;
    (viii) Solicitation of clients--45 CFR part 1638;
    (ix) Training on prohibited topics--45 CFR 1612.8; and
    (x) Welfare reform--45 CFR part 1639.
    (2) Standard restrictions are the restrictions on:

[[Page 443]]

    (i) Abortion activities (other than abortion litigation subject to 
an extended restriction)--42 U.S.C. 2996f(b)(8);
    (ii) Criminal proceedings--45 CFR part 1613;
    (iii) Draft registration violations (violations of Military 
Selective Service Act) or military desertion--42 U.S.C. 2996f(b)(10);
    (iv) Desegregation of schools--42 U.S.C. 2996f(b)(9);
    (v) Fee-generating cases--45 CFR part 1609;
    (vi) Habeas corpus (collaterally attacking criminal convictions)--45 
CFR part 1615;
    (vii) Organizing--45 CFR 1612.9;
    (viii) Persistent incitement of litigation and other activities 
prohibited by rules of professional responsibility for attorneys--
Section 42 U.S.C. 2996f(a)(10); and
    (ix) Political activities--the provisions of 45 CFR part 1608 that 
are stated as restrictions on the use of LSC funds (e.g., the clause of 
Sec.  1608.4(b) regarding ``the use of any Corporation funds'') but not 
the other provisions of part 1608, which are included in the category 
for other restrictions (e.g., Sec.  1608.3(a) prohibiting the use of 
``any political test or qualification''). ).
    (3) Limited restrictions are the restrictions on:
    (i) Lobbying permitted with non-LSC funds (upon government request, 
in public rulemaking, or regarding state or local funding of the 
recipient)--45 CFR 1612.6;
    (ii) Assisted suicide, euthanasia, and mercy killing--45 CFR part 
1643; and
    (iii) Use of appropriated LSC funds to file or pursue a lawsuit 
against LSC--Section 506 of the Appropriations Restrictions.
    (4) Other restrictions are the restrictions on:
    (i) Demonstrations, picketing, boycotts, or strikes--45 CFR 
1612.7(a).
    (ii) Political activities--the provisions of 45 CFR part 1608 other 
than those stated as restrictions on the use of LSC funds (which are 
standard restrictions) (e.g., Sec.  1608.3(a) prohibiting the use of 
``any political test or qualification'' is an other restriction).
    (iii) Rioting, civil disturbances, or violations of injunctions--45 
CFR 1612.7(b).
    (e) Restricted activity means an activity prohibited or limited by 
the restrictions.
    (f) Program integrity means that a recipient is maintaining 
objective integrity and independence from any organization that engages 
in restricted activities, as required by subpart C of this part.



Sec.  1610.3  Other requirements on recipients' funds.

    The following requirements apply to non-LSC funds as provided in the 
referenced regulations. This part neither expands nor limits those 
requirements.
    (a) Client identity and statement of facts--45 CFR part 1636.
    (b) Disclosure of case information--45 CFR part 1644.
    (c) Priorities for the provision of services--45 CFR part 1620.
    (d) Timekeeping--45 CFR part 1635.



                     Subpart B_Use of Non-LSC Funds



Sec.  1610.4  Prohibitions on the use of non-LSC funds.

    (a) Non-LSC funds. Non-LSC funds may not be used by recipients for 
restricted activities as described in this section, subject to the 
exceptions in Sec. Sec.  1610.5 and 1610.6 of this part.
    (b) Extended restrictions. The extended restrictions apply to the 
following uses of non-LSC funds:
    (1) Private funds--any use of private funds;
    (2) Public funds--any use of public funds; and
    (3) Tribal funds--any unauthorized use of tribal funds.
    (c) Standard restrictions. The standard restrictions apply to the 
following uses of non-LSC funds:
    (1) Private funds--any use of private funds;
    (2) Public funds--any unauthorized use of public funds; and
    (3) Tribal funds--any unauthorized use of tribal funds.
    (d) Limited restrictions. The limited restrictions do not apply to 
the use of non-LSC funds.
    (e) Other restrictions. The other restrictions apply to non-LSC 
funds as

[[Page 444]]

provided in the referenced regulations. This part neither expands nor 
limits those requirements.
    (f) Inapplicability to part 1611--financial eligibility. This part 
does not expand, limit, or otherwise apply to the financial eligibility 
rules of 45 CFR part 1611.



Sec.  1610.5  Grants, subgrants, donations, and gifts made by recipients.

    (a) Subgrants in which a recipient provides LSC funds or LSC-funded 
resources as some or all of a subgrant to a subrecipient are governed by 
45 CFR part 1627. That rule states how the restrictions apply to the 
subgrant and to the non-LSC funds of the subrecipient, which can vary 
with different types of subgrants.
    (b) Donations and gifts using LSC funds are prohibited by 45 CFR 
part 1630.
    (c) Use of non-LSC funds. Grants, subgrants, donations, or gifts 
provided by a recipient and funded entirely with non-LSC funds are not 
subject to this part.



Sec.  1610.6  Exceptions for public defender programs and criminal 
or related cases.

    The following restrictions do not apply to: (1) A recipient's or 
subrecipient's separately funded public defender program or project; or 
(2) Criminal or related cases accepted by a recipient or subrecipient 
pursuant to a court appointment.
    (a) Criminal proceedings--45 CFR part 1613;
    (b) Actions challenging criminal convictions--45 CFR part 1615;
    (c) Aliens--45 CFR part 1626;
    (d) Prisoner litigation--45 CFR part 1637;



Sec.  1610.7  Notification to non-LSC funders and donors.

    (a) No recipient may accept funds from any source other than LSC 
unless the recipient provides the source of the funds with written 
notification of LSC prohibitions and conditions that apply to the funds, 
except as provided in paragraph (b) of this section.
    (b) LSC does not require recipients to provide written notification 
for receipt of any single contribution of less than $250.



                       Subpart C_Program Integrity



Sec.  1610.8  Program integrity of recipient.

    (a) A recipient must have objective integrity and independence from 
any organization that engages in restricted activities. A recipient will 
be found to have objective integrity and independence from such an 
organization if:
    (1) The other organization is a legally separate entity;
    (2) The other organization receives no subgrant of LSC funds from 
the recipient, as defined in 45 CFR part 1627, and LSC funds do not 
subsidize restricted activities; and
    (3) The recipient is physically and financially separate from the 
other organization. Mere bookkeeping separation of LSC funds from other 
funds is not sufficient. LSC will determine whether sufficient physical 
and financial separation exists on a case-by-case basis and will base 
its determination on the totality of the facts. The presence or absence 
of any one or more factors will not be determinative. Factors relevant 
to this determination shall include but will not be limited to:
    (i) The existence of separate personnel;
    (ii) The existence of separate accounting and timekeeping records;
    (iii) The degree of separation from facilities in which restricted 
activities occur, and the extent of such restricted activities; and
    (iv) The extent to which signs and other forms of identification 
that distinguish the recipient from the organization are present.
    (b) Each recipient's governing body must certify to LSC on an annual 
basis that the recipient is in compliance with the requirements of this 
section.



                   Subpart D_Accounting and Compliance



Sec.  1610.9  Accounting.

    (a) Recipients shall account for funds received from a source other 
than LSC as separate and distinct receipts and disbursements in a manner 
directed by LSC.

[[Page 445]]

    (b) Recipients shall adopt written policies and procedures to 
implement the requirements of this part.
    (c) Recipients shall maintain records sufficient to document the 
expenditure of non-LSC funds for any restricted activities as defined in 
Subpart A and to otherwise demonstrate compliance with the requirements 
of this part.



Sec.  1610.10  Compliance.

    In addition to all other compliance and enforcement options, LSC may 
recover from a recipient's LSC funds an amount not to exceed the amount 
improperly charged to non-LSC funds, as provided in Sec.  1630.16 of 
this chapter.



PART 1611_FINANCIAL ELIGIBILITY--Table of Contents



Sec.
1611.1 Purpose.
1611.2 Definitions.
1611.3 Financial eligibility policies.
1611.4 Financial eligibility for legal assistance.
1611.5 Authorized exceptions to the recipient's annual income ceiling.
1611.6 Representation of groups.
1611.7 Manner of determining financial eligibility.
1611.8 Changes in financial eligibility status.
1611.9 Retainer agreements.

Appendix A to Part 1611--Income Level for Individuals Eligible for 
          Assistance

    Authority: 42 U.S.C. 2996g(e).

    Source: 70 FR 45562, Aug. 8, 2005, unless otherwise noted.



Sec.  1611.1  Purpose.

    This part sets forth requirements relating to the financial 
eligibility of individual applicants for legal assistance supported with 
LSC funds and recipients' responsibilities in making financial 
eligibility determinations. This part is not intended to and does not 
create any entitlement to service for persons deemed financially 
eligible. This part also seeks to ensure that financial eligibility is 
determined in a manner conducive to development of an effective 
attorney-client relationship. In addition, this part sets forth 
standards relating to the eligibility of groups for legal assistance 
supported with LSC funds. Finally, this part sets forth requirements 
relating to recipients' responsibilities in executing retainer 
agreements with clients.



Sec.  1611.2  Definitions.

    (a) ``Advice and counsel'' means legal assistance that is limited to 
the review of information relevant to the client's legal problem(s) and 
counseling the client on the relevant law and/or suggested course of 
action. Advice and counsel does not encompass drafting of documents or 
making third-party contacts on behalf of the client.
    (b) ``Applicable rules of professional responsibility'' means the 
rules of ethics and professional responsibility generally applicable to 
attorneys in the jurisdiction where the recipient provides legal 
services.
    (c) ``Applicant'' means an individual who is seeking legal 
assistance supported with LSC funds from a recipient. The term does not 
include a group, corporation or association.
    (d) ``Assets'' means cash or other resources of the applicant or 
members of the applicant's household that are readily convertible to 
cash, which are currently and actually available to the applicant.
    (e) ``Brief services'' means legal assistance in which the recipient 
undertakes to provide a discrete and time-limited service to a client 
beyond advice and consultation, including but not limited to activities, 
such as the drafting of documents or making limited third party contacts 
on behalf of a client.
    (f) ``Extended service'' means legal assistance characterized by the 
performance of multiple tasks incident to continuous representation. 
Examples of extended service would include representation of a client in 
litigation, an administrative adjudicative proceeding, alternative 
dispute resolution proceeding, extended negotiations with a third party, 
or other legal representation in which the recipient undertakes 
responsibility for protecting or advancing a client's interest beyond 
advice and counsel or brief services.
    (g) ``Governmental program for low income individuals or families'' 
means any Federal, State or local program that provides benefits of any 
kind to persons whose eligibility is determined on the basis of 
financial need.

[[Page 446]]

    (h) ``Governmental program for persons with disabilities'' means any 
Federal, State or local program that provides benefits of any kind to 
persons whose eligibility is determined on the basis of mental and/or 
physical disability.
    (i) ``Income'' means actual current annual total cash receipts 
before taxes of all persons who are resident members and contribute to 
the support of an applicant's household, as that term is defined by the 
recipient. Total cash receipts include, but are not limited to, wages 
and salaries before any deduction; income from self-employment after 
deductions for business or farm expenses; regular payments from 
governmental programs for low income persons or persons with 
disabilities; social security payments; unemployment and worker's 
compensation payments; strike benefits from union funds; veterans 
benefits; training stipends; alimony; child support payments; military 
family allotments; public or private employee pension benefits; regular 
insurance or annuity payments; income from dividends, interest, rents, 
royalties or from estates and trusts; and other regular or recurring 
sources of financial support that are currently and actually available 
to the applicant. Total cash receipts do not include the value of food 
or rent received by the applicant in lieu of wages; money withdrawn from 
a bank; tax refunds; gifts; compensation and/or one-time insurance 
payments for injuries sustained; non-cash benefits; and up to $2,000 per 
year of funds received by individual Native Americans that is derived 
from Indian trust income or other distributions exempt by statute.



Sec.  1611.3  Financial eligibility policies.

    (a) The governing body of a recipient shall adopt policies 
consistent with this part for determining the financial eligibility of 
applicants and groups. The governing body shall review its financial 
eligibility policies at least once every three years and make 
adjustments as necessary. The recipient shall implement procedures 
consistent with its policies.
    (b) As part of its financial eligibility policies, every recipient 
shall specify that only individuals and groups determined to be 
financially eligible under the recipient's financial eligibility 
policies and LSC regulations may receive legal assistance supported with 
LSC funds.
    (c)(1) As part of its financial eligibility policies, every 
recipient shall establish annual income ceilings for individuals and 
households, which may not exceed one hundred and twenty five percent 
(125%) of the current official Federal Poverty Guidelines amounts. The 
Corporation shall annually calculate 125% of the Federal Poverty 
Guidelines amounts and publish such calculations in the Federal Register 
as a revision to Appendix A to this part.
    (2) As part of its financial eligibility policies, a recipient may 
adopt authorized exceptions to its annual income ceilings consistent 
with Sec.  1611.5.
    (d)(1) As part of its financial eligibility policies, every 
recipient shall establish reasonable asset ceilings for individuals and 
households. In establishing asset ceilings, the recipient may exclude 
consideration of a household's principal residence, vehicles used for 
transportation, assets used in producing income, and other assets which 
are exempt from attachment under State or Federal law.
    (2) The recipient's policies may provide authority for waiver of its 
asset ceilings for specific applicants under unusual circumstances and 
when approved by the recipient's Executive Director, or his/her 
designee. When the asset ceiling is waived, the recipient shall record 
the reasons for such waiver and shall keep such records as are necessary 
to inform the Corporation of the reasons for such waiver.
    (e) Notwithstanding any other provision of this part, or other 
provision of the recipient's financial eligibility policies, every 
recipient shall specify as part of its financial eligibility policies 
that in assessing the income or assets of an applicant who is a victim 
of domestic violence, the recipient shall consider only the assets and 
income of the applicant and members of the applicant's household other 
than those of the alleged perpetrator of the domestic violence and shall 
not include any assets held by the alleged perpetrator of the domestic 
violence, jointly held by

[[Page 447]]

the applicant with the alleged perpetrator of the domestic violence, or 
assets jointly held by any member of the applicant's household with the 
alleged perpetrator of the domestic violence.
    (f) As part of its financial eligibility policies, a recipient may 
adopt policies that permit financial eligibility to be established by 
reference to an applicant's receipt of benefits from a governmental 
program for low-income individuals or families consistent with Sec.  
1611.4(c).
    (g) Before establishing its financial eligibility policies, a 
recipient shall consider the cost of living in the service area or 
locality and other relevant factors, including but not limited to:
    (1) The number of clients who can be served by the resources of the 
recipient;
    (2) The population that would be eligible at and below alternative 
income and asset ceilings; and
    (3) The availability and cost of legal services provided by the 
private bar and other free or low cost legal services providers in the 
area.



Sec.  1611.4  Financial eligibility for legal assistance.

    (a) A recipient may provide legal assistance supported with LSC 
funds only to individuals whom the recipient has determined to be 
financially eligible for such assistance. Nothing in this part, however, 
prohibits a recipient from providing legal assistance to an individual 
without regard to that individual's income and assets if the legal 
assistance is wholly supported by funds from a source other than LSC, 
and is otherwise permissible under applicable law and regulation.
    (b) Consistent with the recipient's financial eligibility policies 
and this part, the recipient may determine an applicant to be 
financially eligible for legal assistance if the applicant's assets do 
not exceed the recipient's applicable asset ceiling established pursuant 
to Sec.  1611.3(d)(1), or the applicable asset ceiling has been waived 
pursuant Sec.  1611.3(d)(2), and:
    (1) The applicant's income is at or below the recipient's applicable 
annual income ceiling; or
    (2) The applicant's income exceeds the recipient's applicable annual 
income ceiling but one or more of the authorized exceptions to the 
annual income ceilings, as provided in Sec.  1611.5, applies.
    (c) Consistent with the recipient's policies, a recipient may 
determine an applicant to be financially eligible without making an 
independent determination of income or assets, if the applicant's income 
is derived solely from a governmental program for low-income individuals 
or families, provided that the recipient's governing body has determined 
that the income standards of the governmental program are at or below 
125% of the Federal Poverty Guidelines amounts and that the governmental 
program has eligibility standards which include an assets test.



Sec.  1611.5  Authorized exceptions to the annual income ceiling.

    (a) Consistent with the recipient's policies and this part, a 
recipient may determine an applicant whose income exceeds the 
recipient's applicable annual income ceiling to be financially eligible 
if the applicant's assets do not exceed the recipient's applicable asset 
ceiling established pursuant to Sec.  1611.3(d), or the asset ceiling 
has been waived pursuant to Sec.  1611.3(d)(2), and:
    (1) The applicant is seeking legal assistance to maintain benefits 
provided by a governmental program for low income individuals or 
families; or
    (2) The Executive Director of the recipient, or his/her designee, 
has determined on the basis of documentation received by the recipient, 
that the applicant's income is primarily committed to medical or nursing 
home expenses and that, excluding such portion of the applicant's income 
which is committed to medical or nursing home expenses, the applicant 
would otherwise be financially eligible for service; or
    (3) The applicant's income does not exceed 200% of the applicable 
Federal Poverty Guidelines amount and:
    (i) The applicant is seeking legal assistance to obtain governmental 
benefits for low income individuals and families; or
    (ii) The applicant is seeking legal assistance to obtain or maintain 
governmental benefits for persons with disabilities; or

[[Page 448]]

    (4) The applicant's income does not exceed 200% of the applicable 
Federal Poverty Guidelines amount and the recipient has determined that 
the applicant should be considered financially eligible based on 
consideration of one or more of the following factors as applicable to 
the applicant or members of the applicant's household:
    (i) Current income prospects, taking into account seasonal 
variations in income;
    (ii) Unreimbursed medical expenses and medical insurance premiums;
    (iii) Fixed debts and obligations;
    (iv) Expenses such as dependent care, transportation, clothing and 
equipment expenses necessary for employment, job training, or 
educational activities in preparation for employment;
    (v) Non-medical expenses associated with age or disability;
    (vi) Current taxes; or
    (vii) Other significant factors that the recipient has determined 
affect the applicant's ability to afford legal assistance.
    (b) In the event that a recipient determines that an applicant is 
financially eligible pursuant to this section and is provided legal 
assistance, the recipient shall document the basis for the financial 
eligibility determination. The recipient shall keep such records as may 
be necessary to inform the Corporation of the specific facts and factors 
relied on to make such determination.



Sec.  1611.6  Representation of groups.

    (a) A recipient may provide legal assistance to a group, 
corporation, association or other entity if it provides information 
showing that it lacks, and has no practical means of obtaining, funds to 
retain private counsel and either:
    (1) The group, or for a non-membership group the organizing or 
operating body of the group, is primarily composed of individuals who 
would be financially eligible for LSC-funded legal assistance; or
    (2) The group has as a principal activity the delivery of services 
to those persons in the community who would be financially eligible for 
LSC-funded legal assistance and the legal assistance sought relates to 
such activity.
    (b)(1) In order to make a determination that a group, corporation, 
association or other entity is eligible for legal services as required 
by paragraph (a) of this section, a recipient shall consider the 
resources available to the group, such as the group's income and income 
prospects, assets and obligations and either:
    (i) For a group primarily composed of individuals who would be 
financially eligible for LSC-funded legal assistance, whether the 
financial or other socioeconomic characteristics of the persons 
comprising the group are consistent with those of persons who are 
financially eligible for LSC-funded legal assistance; or
    (ii) For a group having as a principal activity the delivery of 
services to those persons in the community who would be financially 
eligible for LSC-funded legal assistance, whether the financial or other 
socioeconomic characteristics of the persons served by the group are 
consistent with those of persons who are financially eligible for LSC-
funded legal assistance and the assistance sought relates to such 
activity of the group.
    (2) A recipient shall collect information that reasonably 
demonstrates that the group, corporation, association or other entity 
meets the eligibility criteria set forth herein.
    (c) The eligibility requirements set forth herein apply only to 
legal assistance supported by funds from LSC, provided that any legal 
assistance provided by a recipient, regardless of the source of funds 
supporting the assistance, must be otherwise permissible under 
applicable law and regulation.



Sec.  1611.7  Manner of determining financial eligibility.

    (a)(1) In making financial eligibility determinations regarding 
individual applicants, a recipient shall make reasonable inquiry 
regarding sources of the applicant's income, income prospects and 
assets. The recipient shall record income and asset information in the 
manner specified in this section.
    (2) In making financial eligibility determinations regarding groups 
seeking LSC-supported legal assistance, a recipient shall follow the 
requirements set forth in Sec.  1611.6(b) of this part.

[[Page 449]]

    (b) A recipient shall adopt simple intake forms and procedures to 
obtain information from applicants and groups to determine financial 
eligibility in a manner that promotes the development of trust between 
attorney and client. The forms shall be preserved by the recipient.
    (c) If there is substantial reason to doubt the accuracy of the 
financial eligibility information provided by an applicant or group, a 
recipient shall make appropriate inquiry to verify the information, in a 
manner consistent with the attorney-client relationship.
    (d) When one recipient has determined that a client is financially 
eligible for service in a particular case or matter, that recipient may 
request another recipient to extend legal assistance or undertake 
representation on behalf of that client in the same case or matter in 
reliance upon the initial financial eligibility determination. In such 
cases, the receiving recipient is not required to review or redetermine 
the client's financial eligibility unless there is a change in financial 
eligibility status as described in Sec.  1611.8 or there is substantial 
reason to doubt the validity of the original determination, provided 
that the referring recipient provides and the receiving recipient 
retains a copy of the intake form documenting the financial eligibility 
of the client.



Sec.  1611.8  Change in financial eligibility status.

    (a) If, after making a determination of financial eligibility and 
accepting a client for service, the recipient becomes aware that a 
client has become financially ineligible through a change in 
circumstances, a recipient shall discontinue representation supported 
with LSC funds if the change in circumstances is sufficient, and is 
likely to continue, to enable the client to afford private legal 
assistance, and discontinuation is not inconsistent with applicable 
rules of professional responsibility.
    (b) If, after making a determination of financial eligibility and 
accepting a client for service, the recipient later determines that the 
client is financially ineligible on the basis of later discovered or 
disclosed information, a recipient shall discontinue representation 
supported with LSC funds if the discontinuation is not inconsistent with 
applicable rules of professional responsibility.



Sec.  1611.9  Retainer agreements.

    (a) When a recipient provides extended service to a client, the 
recipient shall execute a written retainer agreement with the client. 
The retainer agreement shall be executed when representation commences 
or as soon thereafter as is practicable. Such retainer agreement must be 
in a form consistent with the applicable rules of professional 
responsibility and prevailing practices in the recipient's service area 
and shall include, at a minimum, a statement identifying the legal 
problem for which representation is sought, and the nature of the legal 
services to be provided.
    (b) No written retainer agreement is required for advice and counsel 
or brief service provided by the recipient to the client or for legal 
services provided to the client by a private attorney pursuant to 45 CFR 
part 1614.
    (c) The recipient shall maintain copies of all retainer agreements 
generated in accordance with this section.



Sec. Appendix A to Part 1611--Income Level for Individuals Eligible for 
                               Assistance

                               Legal Services Corporation 2021 Income Guidelines *
----------------------------------------------------------------------------------------------------------------
                                                                  48 Contiguous
                                                                  states and the
                       Size of household                           District of        Alaska          Hawaii
                                                                     Columbia
----------------------------------------------------------------------------------------------------------------
1..............................................................          $16,100         $20,113         $18,525
2..............................................................           21,775          27,213          25,050
3..............................................................           27,450          34,313          31,575
4..............................................................           33,125          41,413          38,100

[[Page 450]]

 
5..............................................................           38,800         48, 513          44,625
6..............................................................           44,475          54,938          51,150
7..............................................................           50,150          62,713          57,675
8..............................................................           55,825          69,813          64,200
For each additional member of the household in excess of 8,                5,675           7,100           6,525
 add:..........................................................
----------------------------------------------------------------------------------------------------------------
* The figures in this table represent 125% of the Federal Poverty Guidelines by household size as determined by
  HHS.


                              Reference Chart--200% of Federal Poverty Guidelines *
----------------------------------------------------------------------------------------------------------------
                                                                  48 Contiguous
                                                                 states and  the
                       Size of household                           District  of       Alaska          Hawaii
                                                                     Columbia
----------------------------------------------------------------------------------------------------------------
1..............................................................          $25,760         $32,180         $29,640
2..............................................................           34,840          43,540          40,080
3..............................................................           43,920          54,900          50,520
4..............................................................           53,000          66,260          60,960
5..............................................................           62,080          77,620          71,400
6..............................................................           71,160          88,980          81,840
7..............................................................           80,240         100,340          92,280
8..............................................................           89,320         111,700         102,720
For each additional member of the household in excess of 8,                9,080          11,360          10,440
 add:..........................................................
----------------------------------------------------------------------------------------------------------------
* The figures in this table represent 200% of the Federal Poverty Guidelines by household size as determined by
  HHS.


[86 FR 7351, Jan. 28, 2021]



PART 1612_RESTRICTIONS ON LOBBYING AND CERTAIN OTHER ACTIVITIES--
Table of Contents



Sec.
1612.1 Purpose.
1612.2 Definitions.
1612.3 Prohibited legislative and administrative activities.
1612.4 Grassroots lobbying.
1612.5 Permissible activities using any funds.
1612.6 Permissible activities using non-LSC funds.
1612.7 Public demonstrations and activities.
1612.8 Training.
1612.9 Organizing.
1612.10 Recordkeeping and accounting for activities funded with non-LSC 
          funds.
1612.11 Recipient policies and procedures.

    Authority: Pub. L. 104-208, 110 Stat. 3009; Pub. L. 104-134, 110 
Stat. 1321, secs. 504(a)(2), (3), (4), (5), (6), and (12), 504(b) and 
(e); 42 U.S.C. 2996e(b)(5), 2996f(a)(5) and (6), 2996f(b)(4), (6) and 
(7), and 2996g(e).

    Source: 62 FR 19404, Apr. 21, 1997, unless otherwise noted.



Sec.  1612.1  Purpose.

    The purpose of this part is to ensure that LSC recipients and their 
employees do not engage in certain prohibited activities, including 
representation before legislative bodies or other direct lobbying 
activity, grassroots lobbying, participation in rulemaking, public 
demonstrations, advocacy training, and certain organizing activities. 
The part also provides guidance on when recipients may participate in 
public rulemaking or in efforts to encourage State or local governments 
to make funds available to support recipient activities, and when they 
may respond to requests of legislative and administrative officials.



Sec.  1612.2  Definitions.

    (a)(1) Grassroots lobbying means any oral, written or electronically 
transmitted communication or any advertisement, telegram, letter, 
article, newsletter, or other printed or written matter or device which 
contains a direct suggestion to the public to contact public officials 
in support of or in opposition to pending or proposed legislation, 
regulations, executive decisions, or any decision by the electorate on a 
measure submitted to it for a vote. It also includes the provision of 
financial

[[Page 451]]

contributions by recipients to, or participation by recipients in, any 
demonstration, march, rally, fundraising drive, lobbying campaign, 
letter writing or telephone campaign for the purpose of influencing the 
course of such legislation, regulations, decisions by administrative 
bodies, or any decision by the electorate on a measure submitted to it 
for a vote.
    (2) Grassroots lobbying does not include communications which are 
limited solely to reporting on the content or status of, or explaining, 
pending or proposed legislation or regulations.
    (b)(1) Legislation means any action or proposal for action by 
Congress or by a State or local legislative body which is intended to 
prescribe law or public policy. The term includes, but is not limited 
to, action on bills, constitutional amendments, ratification of treaties 
and intergovernmental agreements, approval of appointments and budgets, 
and approval or disapproval of actions of the executive.
    (2) Legislation does not include those actions of a legislative body 
which adjudicate the rights of individuals under existing laws; nor does 
it include legislation adopted by an Indian Tribal Council.
    (c) Public policy means an overall plan embracing the general goals 
and procedures of any governmental body and pending or proposed 
statutes, rules, and regulations.
    (d)(1) Rulemaking means any agency process for formulating, 
amending, or repealing rules, regulations or guidelines of general 
applicability and future effect issued by the agency pursuant to 
Federal, State or local rulemaking procedures, including:
    (i) The customary procedures that are used by an agency to formulate 
and adopt proposals for the issuance, amendment or revocation of 
regulations or other statements of general applicability and future 
effect, such as negotiated rulemaking and ``notice and comment'' 
rulemaking procedures under the Federal Administrative Procedure Act or 
similar procedures used by State or local government agencies; and
    (ii) Adjudicatory proceedings that are formal adversarial 
proceedings to formulate or modify an agency policy of general 
applicability and future effect.
    (2) Rulemaking does not include:
    (i) Administrative proceedings that produce determinations that are 
of particular, rather than general, applicability and affect only the 
private rights, benefits or interests of individuals, such as Social 
Security hearings, welfare fair hearings, or granting or withholding of 
licenses;
    (ii) Communication with agency personnel for the purpose of 
obtaining information, clarification, or interpretation of the agency's 
rules, regulations, guidelines, policies or practices.
    (e) Public rulemaking means any rulemaking proceeding or portion of 
such proceeding or procedure that is open to the public through notices 
of proposed rulemaking published in the Federal Register or similar 
State or local journals, announcements of public hearings on proposed 
rules or notices of proposed rulemaking including those that are 
routinely sent to interested members of the public, or other similar 
notifications to members of the public;
    (f) Similar procedure refers to a legislative process by which 
matters must be determined by a vote of the electorate.

[62 FR 19404, Apr. 21, 1997; 62 FR 22895, Apr. 28, 1997]



Sec.  1612.3  Prohibited legislative and administrative activities.

    (a) Except as provided in Sec. Sec.  1612.5 and 1612.6, recipients 
shall not attempt to influence:
    (1) The passage or defeat of any legislation or constitutional 
amendment;
    (2) Any initiative, or any referendum or any similar procedure of 
the Congress, any State legislature, any local council, or any similar 
governing body acting in any legislative capacity;
    (3) Any provision in a legislative measure appropriating funds to, 
or defining or limiting the functions or authority of, the recipient or 
the Corporation; or,
    (4) The conduct of oversight proceedings concerning the recipient or 
the Corporation.
    (b) Except as provided in Sec. Sec.  1612.5 and 1612.6, recipients 
shall not participate in or attempt to influence any rulemaking, or 
attempt to influence the

[[Page 452]]

issuance, amendment or revocation of any executive order.
    (c) Recipients shall not use any funds to pay for any personal 
service, advertisement, telegram, telephone communication, letter, 
printed or written matter, administrative expense, or related expense 
associated with an activity prohibited in paragraphs (a) and (b) in this 
section.



Sec.  1612.4  Grassroots lobbying.

    A recipient shall not engage in any grassroots lobbying.



Sec.  1612.5  Permissible activities using any funds.

    (a) A recipient may provide administrative representation for an 
eligible client in a proceeding that adjudicates the particular rights 
or interests of such eligible client or in negotiations directly 
involving that client's legal rights or responsibilities, including pre-
litigation negotiation and negotiation in the course of litigation.
    (b) A recipient may initiate or participate in litigation 
challenging agency rules, regulations, guidelines or policies, unless 
such litigation is otherwise prohibited by law or Corporation 
regulations.
    (c) Nothing in this part is intended to prohibit a recipient from:
    (1) Applying for a governmental grant or contract;
    (2) Communicating with a governmental agency for the purpose of 
obtaining information, clarification, or interpretation of the agency's 
rules, regulations, practices, or policies;
    (3) Informing clients, other recipients, or attorneys representing 
eligible clients about new or proposed statutes, executive orders, or 
administrative regulations;
    (4) Communicating directly or indirectly with the Corporation for 
any purpose including commenting upon existing or proposed Corporation 
rules, regulations, guidelines, instructions and policies;
    (5) Permitting its employees to participate in bar association 
activities, provided that recipient resources are not used to support 
and the recipient is not identified with activities of bar associations 
that are devoted to activities prohibited by this part.
    (6) Advising a client of the client's right to communicate directly 
with an elected official; or
    (7) Participating in activity related to the judiciary, such as the 
promulgation of court rules, rules of professional responsibility and 
disciplinary rules.



Sec.  1612.6  Permissible activities using non-LSC funds.

    (a) If the conditions of paragraphs (b) and (c) of this section are 
met, recipients and their employees may use non-LSC funds to respond to 
a written request from a governmental agency or official thereof, 
elected official, legislative body, committee, or member thereof made to 
the employee, or to a recipient to:
    (1) Testify orally or in writing;
    (2) Provide information which may include analysis of or comments 
upon existing or proposed rules, regulations or legislation, or drafts 
of proposed rules, regulations or legislation; or
    (3) Participate in negotiated rulemaking under the Negotiated 
Rulemaking Act of 1990, 5 U.S.C. 561, et seq., or comparable State or 
local laws.
    (b) Communications made in response to requests under paragraph (a) 
may be distributed only to the party or parties that made the request 
and to other persons or entities only to the extent that such 
distribution is required to comply with the request.
    (c) No employee of the recipient shall solicit or arrange for a 
request from any official to testify or otherwise provide information in 
connection with legislation or rulemaking.
    (d) Recipients shall maintain copies of all written requests 
received by the recipient and written responses made in response thereto 
and make such requests and written responses available to monitors and 
other representatives of the Corporation upon request.
    (e) Recipients may use non-LSC funds to provide oral or written 
comment to an agency and its staff in a public rulemaking proceeding.
    (f) Recipients may use non-LSC funds to contact or communicate with, 
or respond to a request from, a State or local government agency, a 
State or local legislative body or committee, or a member thereof, 
regarding funding for the recipient, including a pending

[[Page 453]]

or proposed legislative or agency proposal to fund such recipient.



Sec.  1612.7  Public demonstrations and activities.

    (a) During working hours, while providing legal assistance or 
representation to the recipient's clients or while using recipient 
resources provided by the Corporation or by private entities, no person 
shall:
    (1) Participate in any public demonstration, picketing, boycott, or 
strike, except as permitted by law in connection with the employee's own 
employment situation; or
    (2) Encourage, direct, or coerce others to engage in such 
activities.
    (b) No employee of a recipient shall at any time engage in or 
encourage others to engage in any:
    (1) Rioting or civil disturbance;
    (2) Activity determined by a court to be in violation of an 
outstanding injunction of any court of competent jurisdiction; or
    (3) Other illegal activity that is inconsistent with an employee's 
responsibilities under applicable law, Corporation regulations, or the 
rules of professional responsibility of the jurisdiction where the 
recipient is located or the employee practices law.
    (c) Nothing in this section shall prohibit an attorney from:
    (1) Informing and advising a client about legal alternatives to 
litigation or the lawful conduct thereof; or
    (2) Taking such action on behalf of a client as may be required by 
professional responsibilities or applicable law of any State or other 
jurisdiction.



Sec.  1612.8  Training.

    (a) A recipient may not support or conduct training programs that:
    (1) Advocate particular public policies;
    (2) Encourage or facilitate political activities, labor or anti-
labor activities, boycotts, picketing, strikes or demonstrations, or the 
development of strategies to influence legislation or rulemaking;
    (3) Disseminate information about such policies or activities; or
    (4) Train participants to engage in activities prohibited by the 
Act, other applicable law, or Corporation regulations, guidelines or 
instructions.
    (b) Nothing in this section shall be construed to prohibit training 
of any attorneys or paralegals, clients, lay advocates, or others 
involved in the representation of eligible clients necessary for 
preparing them:
    (1) To provide adequate legal assistance to eligible clients; or
    (2) To provide advice to any eligible client as to the legal rights 
of the client.



Sec.  1612.9  Organizing.

    (a) Recipients may not use funds provided by the Corporation or by 
private entities to initiate the formation, or to act as an organizer, 
of any association, federation, labor union, coalition, network, 
alliance, or any similar entity.
    (b) This section shall not be construed to apply to:
    (1) Informational meetings attended by persons engaged in the 
delivery of legal services at which information about new developments 
in law and pending cases or matters are discussed; or
    (2) Organizations composed exclusively of eligible clients formed 
for the purpose of advising a legal services program about the delivery 
of legal services.
    (c) Recipients and their employees may provide legal advice or 
assistance to eligible clients who desire to plan, establish or operate 
organizations, such as by preparing articles of incorporation and 
bylaws.



Sec.  1612.10  Recordkeeping and accounting for activities funded 
with non-LSC funds.

    (a) No funds made available by the Corporation shall be used to pay 
for administrative overhead or related costs associated with any 
activity listed in Sec.  1612.6.
    (b) Recipients shall maintain separate records documenting the 
expenditure of non-LSC funds for legislative and rulemaking activities 
permitted by Sec.  1612.6.
    (c) Recipients shall submit semi-annual reports describing their 
legislative activities with non-LSC funds conducted pursuant to Sec.  
1612.6, together

[[Page 454]]

with such supporting documentation as specified by the Corporation.

[62 FR 19404, Apr. 21, 1997; 62 FR 22895, Apr. 28, 1997]



Sec.  1612.11  Recipient policies and procedures.

    Each recipient shall adopt written policies and procedures to guide 
its staff in complying with this part.



PART 1613_RESTRICTIONS ON LEGAL ASSISTANCE WITH RESPECT 
TO CRIMINAL PROCEEDINGS--Table of Contents



Sec.
1613.1 Purpose.
1613.2 Definition.
1613.3 Prohibition.
1613.4 Authorized representation.
1613.5 Criminal representation in Indian tribal courts.

    Authority: Sec. 234(d), Public Law 111-211, 124. Stat. 2282; 42 
U.S.C. 2996f(b)(2); 42 U.S.C. 2996g(e).

    Source: 43 FR 32775, July 28, 1978, unless otherwise noted.



Sec.  1613.1  Purpose.

    This part is designed to ensure that Corporation funds will not be 
used to provide legal assistance with respect to criminal proceedings 
unless such assistance is authorized by this part.

[79 FR 21150, Apr. 15, 2014]



Sec.  1613.2  Definition.

    Criminal proceeding means the adversary judicial process prosecuted 
by a public officer and initiated by a formal complaint, information, or 
indictment charging a person with an offense denominated ``criminal'' by 
applicable law and punishable by death, imprisonment, or a jail 
sentence.

[79 FR 21150, Apr. 15, 2014]



Sec.  1613.3  Prohibition.

    Corporation funds shall not be used to provide legal assistance with 
respect to a criminal proceeding, unless authorized by this part.



Sec.  1613.4  Authorized representation.

    Legal assistance may be provided with respect to a criminal 
proceeding.
    (a) Pursuant to a court appointment made under a statute or a court 
rule of equal applicability to all attorneys in the jurisdiction, if 
authorized by the recipient after a determination that acceptance of the 
appointment would not impair the recipient's primary responsibility to 
provide legal assistance to eligible clients in civil matters.
    (b) When professional responsibility requires representation in a 
criminal proceeding arising out of a transaction with respect to which 
the client is being, or has been, represented by a recipient.

[43 FR 32775, July 28, 1978, as amended at 79 FR 21150, Apr. 15, 2014]



Sec.  1613.5  Criminal representation in Indian tribal courts.

    (a) Legal assistance may be provided with Corporation funds to a 
person charged with a criminal offense in an Indian tribal court who is 
otherwise eligible.
    (b) Legal assistance may be provided in a criminal proceeding in an 
Indian tribal court pursuant to a court appointment only if the 
appointment is made under a statute or a court rule or practice of equal 
applicability to all attorneys in the jurisdiction, and is authorized by 
the recipient after a determination that acceptance of the appointment 
would not impair the recipient's primary responsibility to provide legal 
assistance to eligible clients in civil matters.

[79 FR 21151, Apr. 15, 2014]



PART 1614_PRIVATE ATTORNEY INVOLVEMENT--Table of Contents



Sec.
1614.1 Purpose.
1614.2 General policy.
1614.3 Definitions.
1614.4 Range of activities.
1614.5 Compensation of recipient staff and private attorneys; blackout 
          period.
1614.6 Procedure.
1614.7 Fiscal recordkeeping.
1614.8 Prohibition of revolving litigation funds.
1614.9 Waivers.
1614.10 Failure to comply.

    Authority: 42 U.S.C. 2996g(e).

    Source: 79 FR 61781, Oct. 15, 2014, unless otherwise noted.

[[Page 455]]



Sec.  1614.1  Purpose.

    Private attorney involvement shall be an integral part of a total 
local program undertaken within the established priorities of that 
program, and consistent with LSC's governing statutes and regulations, 
in a manner that furthers the statutory requirement of providing high 
quality, economical, and effective client-centered legal assistance and 
legal information to eligible clients. This part is designed to ensure 
that recipients of LSC funds involve private attorneys, and encourages 
recipients to involve law students, law graduates, or other 
professionals, in the delivery of legal information and legal assistance 
to eligible clients.



Sec.  1614.2  General policy.

    (a) A recipient of LSC funding shall devote an amount equal to at 
least twelve and one-half percent (12.5%) of the recipient's annualized 
Basic Field-General award to the involvement of private attorneys, law 
students, law graduates, or other professionals in the delivery of legal 
information and legal assistance to eligible clients. This requirement 
is hereinafter referred to as the ``PAI requirement.''
    (b) Basic Field-Native American grants, Basic Field-Migrant grants, 
and non-Basic Field grants are not subject to the PAI requirement. For 
example, Technology Initiative Grants are not subject to the PAI 
requirement. However, recipients of Native American or migrant funding 
shall provide opportunity for involvement in the delivery of legal 
information and legal assistance by private attorneys, law students, law 
graduates, or other professionals in a manner that is generally open to 
broad participation in those activities undertaken with those funds, or 
shall demonstrate to the satisfaction of the Corporation that such 
involvement is not feasible.



Sec.  1614.3  Definitions.

    (a) Attorney means a person who is authorized to practice law in the 
jurisdiction in which assistance is rendered. For purposes of this part, 
attorney does not have the meaning stated in 45 CFR 1600.1.
    (b) Incubator project means a program that provides legal training 
and support, for a limited period of time, to law students, law 
graduates, or attorneys who are establishing, or upon graduation and bar 
admission intend to establish, their own independent law practices.
    (c) Law graduate means an individual who, within the last two years, 
has completed the education and/or training requirements necessary for 
application to the bar in any U.S. state or territory.
    (d) Law student means an individual who is, or has been, enrolled, 
full-time or part-time, within the past year, and not expelled from:
    (1) A law school that can provide the student with a degree that is 
a qualification for application to the bar in any U.S. state or 
territory; or
    (2) An apprenticeship program that can provide the student with 
sufficient qualifications for application to the bar in any U.S. state 
or territory.
    (e) Legal assistance means service on behalf of a client or clients 
that is specific to the client's or clients' unique circumstances, 
involves a legal analysis that is tailored to the client's or clients' 
factual situation, and involves applying legal judgment in interpreting 
the particular facts and in applying relevant law to the facts 
presented.
    (f) Legal information means substantive legal information not 
tailored to address a person's specific problem and that does not 
involve applying legal judgment or recommending a specific course of 
action.
    (g) Other professional means an individual, not engaged in the 
practice of law and not employed by the recipient, providing services in 
furtherance of the recipient's provision of legal information or legal 
assistance to eligible clients. For example, a paralegal representing a 
client in a Supplemental Security Income (SSI) case, an accountant 
providing tax advice to an eligible client, or an attorney not 
authorized to practice law in the jurisdiction in which the recipient is 
located would fit within the definition of other professional. An 
individual granted a limited license to practice law by a body 
authorized by court rule or state

[[Page 456]]

law to grant such licenses in the jurisdiction in which the recipient is 
located would also meet the definition of other professional.
    (h) PAI Clinic means an activity under this part in which private 
attorneys, law students, law graduates, or other professionals are 
involved in providing legal information and/or legal assistance to the 
public at a specified time and location.
    (i) Private attorney means an attorney. Private attorney does not 
include:
    (1) An attorney employed half time or more per calendar year by an 
LSC recipient or subrecipient; or
    (2) An attorney employed less than half time by an LSC recipient or 
subrecipient acting within the terms of his or her employment by the LSC 
recipient or subrecipient; or
    (3) An attorney acting within the terms of his or her employment by 
a non-profit organization whose primary purpose is the delivery of free 
civil legal services to low-income individuals; or
    (4) An attorney acting within the terms of his or her employment by 
a component of a non-profit organization, where the component's primary 
purpose is the delivery of free civil legal services to low-income 
individuals.
    (j) Screen for eligibility means to screen individuals for 
eligibility using the same criteria recipients use to determine an 
individual's eligibility for cases accepted by the recipient and whether 
LSC funds or non-LSC funds can be used to provide legal assistance 
(e.g., income and assets, citizenship, eligible alien status, within 
priorities, applicability of LSC restrictions).
    (k) Subrecipient has the meaning stated in 45 CFR 1627.2(b)(1), 
except that as used in this part, such term shall not include entities 
that meet the definition of subrecipient solely because they receive 
more than $25,000 from an LSC recipient for services provided through a 
fee-for-service arrangement, such as services provided by a private law 
firm or attorney representing a recipient's clients on a contract or 
judicare basis.



Sec.  1614.4  Range of activities.

    (a) Direct delivery of legal assistance to recipient clients. (1) 
Activities undertaken by the recipient to meet the requirements of this 
part must include the direct delivery of legal assistance to eligible 
clients by private attorneys through programs such as organized pro bono 
plans, reduced fee plans, judicare panels, private attorney contracts, 
or those modified pro bono plans which provide for the payment of 
nominal fees by eligible clients and/or organized referral systems; 
except that payment of attorney's fees through ``revolving litigation 
fund'' systems, as described in Sec.  1614.8, shall neither be used nor 
funded under this part nor funded with any LSC support.
    (2) In addition to the activities described in paragraph (a)(1) of 
this section, direct delivery of legal assistance to eligible clients 
may include representation by a non-attorney in an administrative 
tribunal that permits non-attorneys to represent individuals before the 
tribunal.
    (3) Systems designed to provide direct legal assistance to eligible 
clients of the recipient by private attorneys on either a pro bono or 
reduced fee basis, shall include at a minimum, the following components:
    (i) Intake and case acceptance procedures consistent with the 
recipient's established priorities in meeting the legal needs of 
eligible clients;
    (ii) Case assignments which ensure the referral of cases according 
to the nature of the legal problems involved and the skills, expertise, 
and substantive experience of the participating attorney;
    (iii) Case oversight and follow-up procedures to ensure the timely 
disposition of cases to achieve, if possible, the result desired by the 
client and the efficient and economical utilization of recipient 
resources; and
    (iv) Access by private attorneys to LSC recipient resources that 
provide back-up on substantive and procedural issues of the law.
    (b) Support and other activities. Activities undertaken by 
recipients to meet the requirements of this part may also include, but 
are not limited to:
    (1) Support provided by private attorneys to the recipient or a 
subrecipient as part of its delivery of legal assistance or legal 
information to eligible clients on either a reduced fee or pro

[[Page 457]]

bono basis such as the provision of community legal education, training, 
technical assistance, research, advice and counsel; co-counseling 
arrangements; or the use of the private attorney's facilities, 
libraries, computer-assisted legal research systems or other resources;
    (2) Support provided by other professionals in their areas of 
professional expertise to the recipient as part of its delivery of legal 
information or legal assistance to eligible clients on either a reduced 
fee or pro bono basis such as the provision of intake support, research, 
training, technical assistance, or direct assistance to an eligible 
client of the recipient; and
    (3) Support provided by the recipient in furtherance of activities 
undertaken pursuant to this section including the provision of training, 
technical assistance, research, advice and counsel or the use of 
recipient facilities, libraries, computer assisted legal research 
systems or other resources.
    (4) Support provided to bar associations or courts establishing 
legal clinics. A recipient may allocate to its PAI requirement costs 
associated with providing a bar association or court with technical 
assistance in planning and establishing a legal clinic at which private 
attorneys will provide legal information and/or legal assistance.
    (5) PAI Clinics--(i) Legal information provided in PAI clinics. A 
recipient may allocate to its PAI requirement costs associated with 
providing support to clinics, regardless of whether the clinic screens 
for eligibility, if the clinic provides only legal information.
    (ii) Legal assistance provided in PAI clinics. A recipient may 
provide support to a PAI clinic that provides legal assistance if the 
PAI clinic screens for eligibility.
    (A) A recipient may allocate to its PAI requirement costs associated 
with its support of such clinics for legal assistance provided to 
individuals who are eligible to receive LSC-funded legal services.
    (B) Where a recipient supports a clinic that provides legal 
assistance to individuals who are eligible for permissible non-LSC-
funded services, the recipient may not allocate to its PAI requirement 
costs associated with the legal assistance provided to such individuals. 
For example, a recipient may not allocate to its PAI requirement costs 
associated with legal assistance provided through a clinic to an 
individual who exceeds the income and asset tests for LSC eligibility, 
but is otherwise eligible.
    (C) For clinics providing legal information to the public and legal 
assistance to clients screened for eligibility, a recipient may allocate 
to its PAI requirement costs associated with its support of both parts 
of the clinic. If the clinic does not screen for eligibility, the 
recipient may allocate to the PAI requirement costs associated with the 
legal information portion of the PAI clinic, but may not allocate to the 
PAI requirement costs associated with the legal assistance portion of 
the clinic.
    (D) In order to allocate to its PAI requirement costs associated 
with support of the legal assistance portion of a clinic, a recipient 
must maintain records sufficient to document that such clinic has an 
eligibility screening process and that each individual provided with 
legal assistance in the portion of the clinic supported by the recipient 
was properly screened for eligibility under the process.
    (6) Screening and referral systems. (i) A recipient may participate 
in a referral system in which the recipient conducts intake screening 
and refers LSC-eligible applicants to programs that assign applicants to 
private attorneys on a pro bono or reduced fee basis.
    (ii) In order to allocate to its PAI requirement costs associated 
with participating in such referral systems, a recipient must be able to 
report the number of eligible persons referred by the recipient to each 
program and the number of eligible persons who were placed with a 
private attorney through the program receiving the referral.
    (7) Law student activities. A recipient may allocate to its PAI 
requirement costs associated with law student work supporting the 
recipient's provision of legal information or delivery of legal 
assistance to eligible clients. Compensation paid by the recipient to 
law students may not be allocated to the PAI requirement.

[[Page 458]]

    (c) Determination of PAI activities. The specific methods to be 
undertaken by a recipient to involve private attorneys, law students, 
law graduates, or other professionals in the provision of legal 
information and legal assistance to eligible clients will be determined 
by the recipient's taking into account the following factors:
    (1) The priorities established pursuant to part 1620 of this 
chapter;
    (2) The effective and economic delivery of legal assistance and 
legal information to eligible clients;
    (3) The linguistic and cultural barriers to effective advocacy;
    (4) The actual or potential conflicts of interest between specific 
participating attorneys, law students, law graduates, or other 
professionals and individual eligible clients; and
    (5) The substantive and practical expertise, skills, and willingness 
to undertake new or unique areas of the law of participating attorneys 
and other professionals.
    (d) Unauthorized practice of law. This part is not intended to 
permit any activities that would conflict with the rules governing the 
unauthorized practice of law in the recipient's jurisdiction.



Sec.  1614.5  Compensation of recipient staff and private attorneys; 
blackout period.

    (a) A recipient may allocate to its PAI requirement costs associated 
with compensation paid to its employees only for facilitating the 
involvement of private attorneys, law students, law graduates, or other 
professionals in activities under this part.
    (b) A recipient may not allocate to its PAI requirement costs 
associated with compensation paid to a private attorney, law graduate, 
or other professional for services under this part for any hours an 
individual provides above 800 hours per calendar year.
    (c) No costs may be allocated to the PAI requirement for direct 
payment to any individual who for any portion of the current year or the 
previous year was employed more than 1,000 hours per calendar year by an 
LSC recipient or subrecipient, except for employment as a law student; 
provided, however:
    (1) This paragraph (c) shall not be construed to prohibit the 
allocation of costs to the PAI requirement for payments made to such an 
individual participating in a pro bono or judicare project on the same 
terms that are available to other attorneys;
    (2) This paragraph (c) shall not apply to the allocation of costs to 
the PAI requirement for payments to attorneys who were employed for less 
than a year by an LSC recipient or subrecipient as part of an incubator 
project; and
    (3) This paragraph (c) shall not be construed to restrict recipients 
from allocating to their PAI requirement the payment of funds as a 
result of work performed by an attorney or other individual who 
practices in the same business with such former employee.



Sec.  1614.6  Procedure.

    (a) The recipient shall develop a plan and budget to meet the 
requirements of this part which shall be incorporated as a part of the 
refunding application or initial grant application. The budget shall be 
modified as necessary to fulfill this part. That plan shall take into 
consideration:
    (1) The legal needs of eligible clients in the geographical area 
served by the recipient and the relative importance of those needs 
consistent with the priorities established pursuant to section 
1007(a)(2)(C) of the Legal Services Corporation Act (42 U.S.C. 
2996f(a)(2)(C)) and 45 CFR part 1620 adopted pursuant thereto;
    (2) The delivery mechanisms potentially available to provide the 
opportunity for private attorneys, law students, law graduates, or other 
professionals to meet the established priority legal needs of eligible 
clients in an economical and effective manner; and
    (3) The results of the consultation as required below.
    (b) The recipient shall consult with significant segments of the 
client community, private attorneys, and bar associations, including 
minority and women's bar associations, in the recipient's service area 
in the development of its annual plan to provide for the involvement of 
private attorneys, law

[[Page 459]]

students, law graduates, or other professionals in the provision of 
legal information and legal assistance to eligible clients and shall 
document that each year its proposed annual plan has been presented to 
all local bar associations within the recipient's service area and shall 
summarize their response.
    (c) In the case of recipients whose service areas are adjacent, 
coterminous, or overlapping, the recipients may enter into joint efforts 
to involve private attorneys, law students, law graduates, or other 
professionals in the delivery of legal information and legal assistance 
to eligible clients, subject to the prior approval of LSC. In order to 
be approved, the joint venture plan must meet the following conditions:
    (1) The recipients involved in the joint venture must plan to expend 
at least twelve and one-half percent (12.5%) of the aggregate of their 
basic field awards on PAI. In the case of recipients with adjacent 
service areas, twelve and one-half percent (12.5%) of each recipient's 
grant shall be expended to PAI; provided, however, that such expenditure 
is subject to waiver under this section;
    (2) Each recipient in the joint venture must be a bona fide 
participant in the activities undertaken by the joint venture; and
    (3) The joint PAI venture must provide an opportunity for involving 
private attorneys, law students, law graduates, or other professionals 
throughout the entire joint service area(s).



Sec.  1614.7  Fiscal recordkeeping.

    The recipient shall demonstrate compliance with this part by 
utilizing financial systems and procedures and maintaining supporting 
documentation to identify and account separately for costs related to 
the PAI effort. Such systems and records shall meet the requirements of 
the Corporation's Audit Guide for Recipients and Auditors and the 
Accounting Guide for LSC Recipients and shall have the following 
characteristics:
    (a) They shall accurately identify and account for:
    (1) The recipient's administrative, overhead, staff, and support 
costs related to PAI activities. Non-personnel costs shall be allocated 
on the basis of reasonable operating data. All methods of allocating 
common costs shall be clearly documented. If any direct or indirect time 
of staff attorneys or paralegals is to be allocated as a cost to PAI, 
such costs must be documented by time sheets accounting for the time 
those employees have spent on PAI activities. The timekeeping 
requirement does not apply to such employees as receptionists, 
secretaries, intake personnel or bookkeepers; however, personnel cost 
allocations for non-attorney or non-paralegal staff should be based on 
other reasonable operating data which is clearly documented;
    (2) Payments to private attorneys, law graduates, or other 
professionals for support or direct client services rendered. The 
recipient shall maintain contracts on file that set forth payment 
systems, hourly rates, and maximum allowable fees. Bills and/or invoices 
from private attorneys, law graduates, or other professionals shall be 
submitted before payments are made. Encumbrances shall not be included 
in calculating whether a recipient has met the requirement of this part;
    (3) Contractual payments or subgrants to individuals or 
organizations that undertake administrative, support, and/or direct 
services to eligible clients on behalf of the recipient consistent with 
the provisions of this part. Contracts or subgrants concerning transfer 
of LSC funds for PAI activities shall require that such funds be 
accounted for by the recipient in accordance with LSC guidelines, 
including the requirements of the Audit Guide for Recipients and 
Auditors and the Accounting Guide for LSC Recipients and 45 CFR parts 
1610, 1627 and 1630;
    (4) Other such actual costs as may be incurred by the recipient in 
this regard.
    (b) Support and expenses relating to the PAI effort must be reported 
separately in the recipient's year-end audit. This shall be done by 
establishing a separate fund or providing a separate schedule in the 
financial statement to account for the entire PAI allocation. Recipients 
are not required to establish separate bank accounts to segregate

[[Page 460]]

funds allocated to PAI. Auditors are required to perform sufficient 
audit tests to enable them to render an opinion on the recipient's 
compliance with the requirements of this part.
    (c) Attorneys, law students, law graduates, or other professionals 
may be reimbursed for actual costs and expenses.
    (d) Fees paid to individuals for providing services under this part 
may not exceed 50% of the local prevailing market rate for that type of 
service.



Sec.  1614.8  Prohibition of revolving litigation funds.

    (a) A revolving litigation fund system is a system under which a 
recipient systematically encourages the acceptance of fee-generating 
cases as defined in Sec.  1609.2 of this chapter by advancing funds to 
private attorneys, law students, law graduates, or other professionals 
to enable them to pay costs, expenses, or attorneys' fees for 
representing clients.
    (b) No funds received from the Corporation shall be used to 
establish or maintain revolving litigation fund systems.
    (c) The prohibition in paragraph (b) of this section does not 
prevent recipients from reimbursing or paying private attorneys, law 
students, law graduates, or other professionals for costs and expenses, 
provided:
    (1) The private attorney, law student, law graduate, or other 
professional is representing an eligible client in a matter in which 
representation of the eligible client by the recipient would be allowed 
under LSC's governing statutes and regulations; and
    (2) The private attorney, law student, law graduate, or other 
professional has expended such funds in accordance with a schedule 
previously approved by the recipient's governing body or, prior to 
initiating action in the matter, has requested the recipient to advance 
the funds.
    (d) Nothing in this section shall prevent a recipient from 
recovering from a private attorney, law student, law graduate, or other 
professional the amount advanced for any costs, expenses, or fees from 
an award to the attorney for representing an eligible client.



Sec.  1614.9  Waivers.

    (a) While it is the expectation and experience of the Corporation 
that most basic field programs can effectively expend their PAI 
requirement, there are some circumstances, temporary or permanent, under 
which the goal of economical and effective use of Corporation funds will 
be furthered by a partial, or in exceptional circumstances, a complete 
waiver of the PAI requirement.
    (b) A complete waiver shall be granted by LSC when the recipient 
shows to the satisfaction of LSC that:
    (1) Because of the unavailability of qualified private attorneys, 
law students, law graduates, or other professionals an attempt to carry 
out a PAI program would be futile; or
    (2) All qualified private attorneys, law students, law graduates, or 
other professionals in the program's service area either refuse to 
participate or have conflicts generated by their practice which render 
their participation inappropriate.
    (c) A partial waiver shall be granted by LSC when the recipient 
shows to the satisfaction of LSC that:
    (1) The population of qualified private attorneys, law students, law 
graduates, or other professionals available to participate in the 
program is too small to use the full PAI allocation economically and 
effectively; or
    (2) Despite the recipient's best efforts too few qualified private 
attorneys, law students, law graduates, or other professionals are 
willing to participate in the program to use the full PAI allocation 
economically and effectively; or
    (3) Despite a recipient's best efforts--including, but not limited 
to, communicating its problems expending the required amount to LSC and 
requesting and availing itself of assistance and/or advice from LSC 
regarding the problem--expenditures already made during a program year 
are insufficient to meet the PAI requirement, and there is insufficient 
time to make economical and efficient expenditures during the remainder 
of a program year, but in this instance, unless the shortfall resulted 
from unforeseen and unusual circumstances, the recipient shall accompany 
the waiver request with a

[[Page 461]]

plan to avoid such a shortfall in the future; or
    (4) The recipient uses a fee-for-service program whose current 
encumbrances and projected expenditures for the current fiscal year 
would meet the requirement, but its actual current expenditures do not 
meet the requirement, and could not be increased to do so economically 
and effectively in the remainder of the program year, or could not be 
increased to do so in a fiscally responsible manner in view of 
outstanding encumbrances; or
    (5) The recipient uses a fee-for-service program and its PAI 
expenditures in the prior year exceeded the twelve and one-half percent 
(12.5%) requirement but, because of variances in the timing of work 
performed by the private attorneys and the consequent billing for that 
work, its PAI expenditures for the current year fail to meet the twelve 
and one-half percent (12.5%) requirement; or
    (6) If, in the reasonable judgment of the recipient's governing 
body, it would not be economical and efficient for the recipient to 
expend its full twelve and one-half percent (12.5%) of Corporation funds 
on PAI activities, provided that the recipient has handled and expects 
to continue to handle at least twelve and one-half percent (12.5%) of 
cases brought on behalf of eligible clients through its PAI program(s).
    (d)(1) A waiver of special accounting and bookkeeping requirements 
of this part may be granted by LSC, if the recipient shows to the 
satisfaction of LSC that such waiver will advance the purpose of this 
part as expressed in Sec. Sec.  1614.1 and 1614.2.
    (2) As provided in 45 CFR 1627.3(c) with respect to subgrants, 
alternatives to Corporation audit requirements or to the accounting 
requirements of this Part may be approved for subgrants by LSC; such 
alternatives for PAI subgrants shall be approved liberally where 
necessary to foster increased PAI participation.
    (e) Waivers of the PAI expenditure requirement may be full or 
partial, that is, the Corporation may waive all or some of the required 
expenditure for a fiscal year.
    (1) Applications for waivers of any requirement under this Part may 
be for the current or next fiscal year. All such applications must be in 
writing. Applications for waivers for the current fiscal year must be 
received by the Corporation during the current fiscal year.
    (2) At the expiration of a waiver a recipient may seek a similar or 
identical waiver.
    (f) All waiver requests shall be addressed to LSC. The Corporation 
shall make a written response to each such request postmarked not later 
than thirty (30) days after its receipt. If the request is denied, the 
Corporation will provide the recipient with an explanation and statement 
of the grounds for denial. If the waiver is to be denied because the 
information submitted is insufficient, the Corporation will inform the 
recipient as soon as possible, both orally and in writing, about what 
additional information is needed. Should the Corporation fail to so 
respond, the request shall be deemed to be granted.



Sec.  1614.10  Failure to comply.

    (a)(1) If a recipient fails to comply with the expenditure required 
by this part and that recipient fails without good cause to seek a 
waiver during the term of the grant or contract, the Corporation shall 
withhold from the recipient's grant payments an amount equal to the 
difference between the amount expended on PAI and twelve and one-half 
percent (12.5%) of the recipient's basic field award.
    (2) If the Corporation determines that a recipient failed without 
good cause to seek a waiver, the Corporation shall give the recipient 
written notice of that determination. The written notice shall state the 
determination, the amount to be withheld, and the process by which the 
recipient may appeal the determination.
    (3) The appeal process will follow the procedures for the appeal of 
disallowed costs set forth at 45 CFR 1630.7(c)-(g), except that:
    (i) The subject matter of the appeal shall be limited to the 
Corporation's determination that the recipient failed without good cause 
to seek a waiver; and

[[Page 462]]

    (ii) Withholding of funds shall be the method for the Corporation to 
recover the amount to be withheld.
    (b) If a recipient fails with good cause to seek a waiver, or 
applies for but does not receive a waiver, or receives a waiver of part 
of the PAI requirement and does not expend the amount required to be 
expended, the PAI expenditure requirement for the ensuing year shall be 
increased for that recipient by an amount equal to the difference 
between the amount actually expended and the amount required to be 
expended.
    (c)(1) Any funds withheld by the Corporation pursuant to this 
section shall be made available by the Corporation for use in providing 
legal services through PAI programs. When such funds are available for 
competition, LSC shall publish notice of the requirements concerning 
time, format, and content of the application and the procedures for 
submitting an application for such funds. Disbursement of these funds 
for PAI activities shall be made through a competitive solicitation and 
awarded on the basis of efficiency, quality, creativity, and 
demonstrated commitment to PAI service delivery to low-income people. 
Competition for these funds may be held in the recipient's service area, 
or if the recipient from which funds are withheld is the only LSC 
recipient applying for the funds in the competitive solicitation, in 
additional service areas.
    (2) Recipients shall expend funds awarded through the competitive 
process in paragraph (c)(1) of this section in addition to twelve and 
one-half percent (12.5%) of their Basic Field-General awards.
    (d) The withholding of funds under this section shall not be 
construed as any action under 45 CFR parts 1606, 1618, 1623, or 1630.



PART 1615_RESTRICTIONS ON ACTIONS COLLATERALLY ATTACKING CRIMINAL CONVICTIONS--
Table of Contents



Sec.
1615.1 Purpose.
1615.2 Prohibition.
1615.3 Application of this part.

    Authority: Sec. 1007(b)(1); (42 U.S.C. 2996f(b)(1)).

    Source: 41 FR 38508, Sept. 10, 1976, unless otherwise noted.



Sec.  1615.1  Purpose.

    This part prohibits the provision of legal assistance in an action 
in the nature of habeas corpus seeking to collaterally attack a criminal 
conviction.



Sec.  1615.2  Prohibition.

    Except as authorized by this part, no Corporation funds shall be 
used to provide legal assistance in an action in the nature of habeas 
corpus collaterally attacking a criminal conviction if the action
    (a) Is brought against an officer of a court, a law enforcement 
official, or a custodian of an institution for persons convicted of 
crimes; and
    (b) Alleges that the conviction is invalid because of any alleged 
acts or failures to act by an officer of a court or a law enforcement 
official.



Sec.  1615.3  Application of this part.

    This part does not prohibit legal assistance--
    (a) To challenge a conviction resulting from a criminal proceeding 
in which the defendant received representation from a recipient pursuant 
to Corporation regulations; or
    (b) Pursuant to a court appointment made under a statute or a court 
rule or practice of equal applicability to all attorneys in the 
jurisdiction, if authorized by the recipient after a determination that 
it is consistent with the primary responsibility of the recipient to 
provide legal assistance to eligible clients in civil matters.



PART 1616_ATTORNEY HIRING--Table of Contents



Sec.
1616.1 Purpose.
1616.2 Definition.
1616.3 Qualifications.
1616.4 Recommendations.
1616.5 Preference to local applicants.
1616.6 Equal employment opportunity.
1616.7 Language ability.

    Authority: Secs. 1007(a)(8); 1006(b)(6); 1006(b)(4); (42 U.S.C. 
2996f(a)(8); 2996e(b)(6); 2996e(b)(4)).

    Source: 41 FR 38509, Sept. 10, 1976, unless otherwise noted.

[[Page 463]]



Sec.  1616.1  Purpose.

    This part is designed to promote a mutually beneficial relationship 
between a recipient and the local Bar and community, and to insure that 
a recipient will choose highly qualified attorneys for its staff.



Sec.  1616.2  Definition.

    Community, as used in this part, means the geographical area most 
closely corresponding to the area served by a recipient.



Sec.  1616.3  Qualifications.

    A recipient shall establish qualifications for individual positions 
for attorneys providing legal assistance under the Act, that may 
include, among other relevant factors:
    (a) Academic training and performance;
    (b) The nature and extent of prior legal experience;
    (c) Knowledge and understanding of the legal problems and needs of 
the poor;
    (d) Prior working experience in the client community, or in other 
programs to aid the poor;
    (e) Ability to communicate with persons in the client community, 
including, in areas where significant numbers of eligible clients speak 
a language other than English as their principal language, ability to 
speak that language; and
    (f) Cultural similarity with the client community.



Sec.  1616.4  Recommendations.

    (a) Before filling an attorney position, a recipient shall notify 
the organized Bar in the community of the existence of a vacancy, and of 
the qualifications established for it, and seek recommendations for 
attorneys who meet the qualifications established for the position.
    (b) A recipient shall similarly notify and seek recommendations from 
other organizations, deemed appropriate by the recipient, that have 
knowledge of the legal needs of persons in the community unable to 
afford legal assistance.



Sec.  1616.5  Preference to local applicants.

    When equally qualified applicants are under consideration for an 
attorney position, a recipient shall give preference to an applicant 
residing in the community to be served.



Sec.  1616.6  Equal employment opportunity.

    A recipient shall adopt employment qualifications, procedures, and 
policies that meet the requirements of applicable laws prohibiting 
discrimination in employment, and shall take affirmative action to 
insure equal employment opportunity.



Sec.  1616.7  Language ability.

    In areas where a significant number of clients speak a language 
other than English as their principal language, a recipient shall adopt 
employment policies that insure that legal assistance will be provided 
in the language spoken by such clients.



PART 1617_CLASS ACTIONS--Table of Contents



Sec.
1617.1 Purpose.
1617.2 Definitions.
1617.3 Prohibition.
1617.4 Recipient policies and procedures.

    Authority: 29 U.S.C. 2996e(d)(5); 110 Stat. 3009 (1996); 110 Stat. 
1321 (1996).

    Source: 61 FR 63755, Dec. 2, 1996, unless otherwise noted.



Sec.  1617.1  Purpose.

    This rule is intended to ensure that LSC recipients do not initiate 
or participate in class actions.



Sec.  1617.2  Definitions.

    (a) Class action means a lawsuit filed as, or otherwise declared by 
the court having jurisdiction over the case to be, a class action 
pursuant to Rule 23 of the Federal Rules of Civil Procedure or the 
comparable State statute or rule of civil procedure applicable in the 
court in which the action is filed.
    (b)(1) Initiating or participating in any class action means any 
involvement at any stage of a class action prior to or after an order 
granting relief. ``Involvement'' includes acting as amicus

[[Page 464]]

curiae, co-counsel or otherwise providing representation relating to a 
class action.
    (2) Initiating or participating in any class action does not include 
representation of an individual client seeking to withdraw from or opt 
out of a class or obtain the benefit of relief ordered by the court, or 
non-adversarial activities, including efforts to remain informed about, 
or to explain, clarify, educate or advise others about the terms of an 
order granting relief.



Sec.  1617.3  Prohibition.

    Recipients are prohibited from initiating or participating in any 
class action.



Sec.  1617.4  Recipient policies and procedures.

    Each recipient shall adopt written policies and procedures to guide 
its staff in complying with this part.



PART 1618_ENFORCEMENT PROCEDURES--Table of Contents



Sec.
1618.1 Purpose.
1618.2 Definition.
1618.3 Complaints.
1618.4 Duties of recipients.
1618.5 Duties of the Corporation.

    Authority: 42 U.S.C. 2996e(b)(1), 2996e(b)(2), 2996e(b)(5), 
2996f(a)(3), 2996f(d), and 2996g(e).

    Source: 78 FR 10097, Feb. 13, 2013, unless otherwise noted.



Sec.  1618.1  Purpose.

    In order to ensure uniform and consistent interpretation and 
application of the provisions of the LSC Act, the Corporation's 
appropriations act or other law applicable to LSC funds, a Corporation 
rule, regulation, guideline or instruction, or the terms and conditions 
of the recipient's grant or contract with the Corporation, and to 
prevent a question of whether these requirements have been violated from 
becoming an ancillary issue in any case undertaken by a recipient, this 
part establishes a systematic procedure for enforcing compliance with 
them.



Sec.  1618.2  Definitions.

    LSC requirements means the provisions of the LSC Act, the 
Corporation's appropriations act or other law applicable to LSC funds, a 
Corporation rule, regulation, guideline or instruction, or the terms or 
conditions of the recipient's grant or contract with the Corporation.
    Violation means a violation by the recipient of the LSC 
requirements.



Sec.  1618.3  Complaints.

    A complaint of a violation by a recipient or an employee of a 
recipient may be made to the recipient, the State Advisory Council, or 
the Corporation.



Sec.  1618.4  Duties of recipients.

    (a) A recipient shall:
    (1) Advise its employees of their responsibilities under the LSC 
requirements;
    (2) Establish procedures, consistent with the notice and hearing 
requirements of section 1011 of the LSC Act, for determining whether an 
employee has committed a violation and whether the violation merits a 
sanction based on consideration of the totality of the circumstances; 
and
    (3) Establish a policy for determining the appropriate sanction to 
be imposed for a violation, including:
    (i) Administrative reprimand if a violation is found to be minor and 
unintentional, or otherwise affected by mitigating circumstances;
    (ii) Suspension and termination of employment; and
    (iii) Other sanctions appropriate for enforcement of the LSC 
requirements.
    (b) Before suspending or terminating the employment of any person 
for a violation, a recipient shall consult the Corporation to ensure 
that its interpretation of these requirements is consistent with 
Corporation policy.
    (c) This section provides procedural requirements between the 
Corporation and recipients. It does not create rights for recipient 
employees.



Sec.  1618.5  Duties of the Corporation.

    (a) Whenever the Corporation learns that there is reason to believe 
that a recipient or a recipient's employee may have committed a 
violation, the Corporation shall investigate the matter promptly and 
attempt to resolve it through informal consultation with the

[[Page 465]]

recipient. Such actions may be limited to determining if the recipient 
is sufficiently investigating and resolving the matter itself.
    (b) Whenever there is substantial reason to believe that a recipient 
has persistently or intentionally violated the LSC requirements, or, 
after notice, has failed to take appropriate remedial or disciplinary 
action to ensure compliance by its employees with the LSC requirements, 
and attempts at informal resolution have been unsuccessful, the 
Corporation may proceed to suspend or terminate financial support of the 
recipient, or impose a limited reduction in funding, pursuant to the 
procedures set forth in parts 1623 and 1606, or may take other action to 
enforce compliance with the LSC requirements.
    (c) Whenever the Corporation determines that a recipient has 
committed a violation, that corrective actions by the recipient are 
required to remedy the violation and/or prevent recurrence of the 
violation, and that imposition of special grant conditions are needed 
prior to the next grant renewal or competition for the service area, the 
Corporation may immediately impose Special Grant Conditions on the 
recipient to require completion of those corrective actions.



PART 1619_DISCLOSURE OF INFORMATION--Table of Contents



Sec.
1619.1 Purpose.
1619.2 Policy.
1619.3 Referral to the Corporation.
1619.4 Exemptions.

    Authority: Sec. 1006(b)(1), (42 U.S.C. 2996e(b)(1)); sec. 1008(e), 
(42 U.S.C. 2996g(e)).

    Source: 42 FR 4848, Jan. 26, 1977, unless otherwise noted.



Sec.  1619.1  Purpose.

    This part is designed to insure disclosure of information that is a 
valid subject of public interest in the activities of a recipient.



Sec.  1619.2  Policy.

    A recipient shall adopt a procedure for affording the public 
appropriate access to the Act, Corporation rules, regulations and 
guidelines, the recipient's written policies, procedures, and 
guidelines, the names and addresses of the members of its governing 
body, and other materials that the recipient determines should be 
disclosed. The procedure adopted shall be subject to approval by the 
Corporation.



Sec.  1619.3  Referral to the Corporation.

    If a person requests information, not required to be disclosed by 
this part, that the Corporation may be required to disclose pursuant to 
part 1602 of this chapter implementing the Freedom of Information Act, 
the recipient shall either provide the information or inform the person 
seeking it how to request it from the Corporation.



Sec.  1619.4  Exemptions.

    Nothing in this part shall require disclosure of:
    (a) Any information furnished to a recipient by a client;
    (b) The work product of an attorney or paralegal;
    (c) Any material used by a recipient in providing representation to 
clients;
    (d) Any matter that is related solely to the internal personnel 
rules and practices of the recipient; or
    (e) Personnel, medical, or similar files.



PART 1620_PRIORITIES IN USE OF RESOURCES--Table of Contents



Sec.
1620.1 Purpose.
1620.2 Definitions.
1620.3 Establishing priorities.
1620.4 Establishing policies and procedures for emergencies.
1620.5 Annual review.
1620.6 Signed written agreement.
1620.7 Reporting.

    Authority: 42 U.S.C. 2996f(a)(2); Pub. L. 104-208, 110 Stat. 3009; 
Pub. L. 104-134,110 Stat. 1321.

    Source: 62 FR 19408, Apr. 21, 1997, unless otherwise noted.



Sec.  1620.1  Purpose.

    This part is designed to provide guidance to recipients for setting 
priorities and to ensure that a recipient's governing body adopts 
written priorities

[[Page 466]]

for the types of cases and matters, including emergencies, to which the 
recipient's staff will limit its commitment of time and resources.



Sec.  1620.2  Definitions.

    (a) A case is a form of program service in which an attorney or 
paralegal of a recipient provides legal services to one or more specific 
clients, including, without limitation, providing representation in 
litigation, administrative proceedings, and negotiations, and such 
actions as advice, providing brief services and transactional 
assistance, and assistance with individual Private Attorney Involvement 
(PAI) cases.
    (b) A matter is an action which contributes to the overall delivery 
of program services but does not involve direct legal advice to or legal 
representation of one or more specific clients. Examples of matters 
include both direct services, such as community education presentations, 
operating pro se clinics, providing information about the availability 
of legal assistance, and developing written materials explaining legal 
rights and responsibilities; and indirect services, such as training, 
continuing legal education, general supervision of program services, 
preparing and disseminating desk manuals, PAI recruitment, intake when 
no case is undertaken, and tracking substantive law developments.



Sec.  1620.3  Establishing priorities.

    (a) The governing body of a recipient must adopt procedures for 
establishing priorities for the use of all of its Corporation and non-
Corporation resources and must adopt a written statement of priorities, 
pursuant to those procedures, that determines the cases and matters 
which may be undertaken by the recipient.
    (b) The procedures adopted must include an effective appraisal of 
the needs of eligible clients in the geographic area served by the 
recipient, and their relative importance, based on information received 
from potential or current eligible clients that is solicited in a manner 
reasonably calculated to obtain the views of all significant segments of 
the client population. The appraisal must also include and be based on 
information from the recipient's employees, governing body members, the 
private bar, and other interested persons. The appraisal should address 
the need for outreach, training of the recipient's employees, and 
support services.
    (c) The following factors shall be among those considered by the 
recipient in establishing priorities:
    (1) The suggested priorities promulgated by the Legal Services 
Corporation;
    (2) The appraisal described in paragraph (b) of this section;
    (3) The population of eligible clients in the geographic areas 
served by the recipient, including all significant segments of that 
population with special legal problems or special difficulties of access 
to legal services;
    (4) The resources of the recipient;
    (5) The availability of another source of free or low-cost legal 
assistance in a particular category of cases or matters;
    (6) The availability of other sources of training, support, and 
outreach services;
    (7) The relative importance of particular legal problems to the 
individual clients of the recipient;
    (8) The susceptibility of particular problems to solution through 
legal processes;
    (9) Whether legal efforts by the recipient will complement other 
efforts to solve particular problems in the area served;
    (10) Whether legal efforts will result in efficient and economic 
delivery of legal services; and
    (11) Whether there is a need to establish different priorities in 
different parts of the recipient's service area.



Sec.  1620.4  Establishing policies and procedures for emergencies.

    The governing body of a recipient shall adopt written policies and 
procedures to guide the recipient in undertaking emergency cases or 
matters not within the recipient's established priorities. Emergencies 
include those non-priority cases or matters that require immediate legal 
action to:
    (a) Secure or preserve the necessities of life,
    (b) Protect against or eliminate a significant risk to the health or 
safety

[[Page 467]]

of the client or immediate family members, or
    (c) Address other significant legal issues that arise because of new 
and unforeseen circumstances.



Sec.  1620.5  Annual review.

    (a) Priorities shall be set periodically and shall be reviewed by 
the governing body of the recipient annually or more frequently if the 
recipient has accepted a significant number of emergency cases outside 
of its priorities.
    (b) The following factors should be among those considered in 
determining whether the recipient's priorities should be changed:
    (1) The extent to which the objectives of the recipient's priorities 
have been accomplished;
    (2) Changes in the resources of the recipient;
    (3) Changes in the size, distribution, or needs of the eligible 
client population; and
    (4) The volume of non-priority emergency cases or matters in a 
particular legal area since priorities were last reviewed.



Sec.  1620.6  Signed written agreement.

    All staff who handle cases or matters, or are authorized to make 
decisions about case acceptance, must sign a simple agreement developed 
by the recipient which indicates that the signatory:
    (a) Has read and is familiar with the priorities of the recipient;
    (b) Has read and is familiar with the definition of an emergency 
situation and the procedures for dealing with an emergency that have 
been adopted by the recipient; and
    (c) Will not undertake any case or matter for the recipient that is 
not a priority or an emergency.



Sec.  1620.7  Reporting.

    (a) The recipient shall report to the recipient's governing body on 
a quarterly basis information on all emergency cases or matters 
undertaken that were not within the recipient's priorities, and shall 
include a rationale for undertaking each such case or matter.
    (b) The recipient shall report annually to the Corporation, on a 
form provided by the Corporation, information on all emergency cases or 
matters undertaken that were not within the recipient's priorities.
    (c) The recipient shall submit to the Corporation and make available 
to the public an annual report summarizing the review of priorities; the 
date of the most recent appraisal; the timetable for the future 
appraisal of needs and evaluation of priorities; mechanisms which will 
be utilized to ensure effective client participation in priority-
setting; and any changes in priorities.



PART 1621_CLIENT GRIEVANCE PROCEDURES--Table of Contents



Sec.
1621.1 Purpose.
1621.2 Grievance committee.
1621.3 Complaints by applicants about denial legal assistance.
1621.4 Complaints by clients about manner or quality of legal 
          assistance.

    Authority: Sec. 1006(b)(1), 42 U.S.C. 2996e(b)(1); sec. 1006(b)(3), 
42 U.S.C. 2996e(b)(3); sec. 1007(a)(1), 42 U.S.C. 2996f(a)(1).

    Source: 72 FR 3954, Jan. 29, 2007, unless otherwise noted.



Sec.  1621.1  Purpose.

    This Part is intended to help ensure that recipients provide the 
highest quality legal assistance to clients as required by the LSC Act 
and are accountable to clients and applicants for legal assistance by 
requiring recipients to establish grievance procedures to process 
complaints by applicants about the denial of legal assistance and 
clients about the manner or quality of legal assistance provided. This 
Part is further intended to help ensure that the grievance procedures 
adopted by recipients will result, to the extent possible, in the 
provision of an effective remedy in the resolution of complaints.



Sec.  1621.2  Grievance Committee.

    The governing body of a recipient shall establish a grievance 
committee or committees, composed of lawyer and client members of the 
governing body, in approximately the same proportion in which they are 
on the governing body.

[[Page 468]]



Sec.  1621.3  Complaints by applicants about denial of legal assistance.

    A recipient shall establish a simple procedure for review of 
complaints by applicants about decisions to deny legal assistance to the 
applicant. The procedure shall, at a minimum, provide: A practical 
method for the recipient to provide applicants with adequate notice of 
the complaint procedures and how to make a complaint; and an opportunity 
for applicants to confer with the Executive Director or the Executive 
Director's designee, and, to the extent practical, with a representative 
of the governing body. The procedure shall be designed to foster 
effective communications between the recipient and complaining 
applicants.



Sec.  1621.4  Complaints by clients about manner or quality 
of legal assistance.

    (a) A recipient shall establish procedures for the review of 
complaints by clients about the manner or quality of legal assistance 
that has been rendered by the recipient to the client.
    (b) The procedures shall be designed to foster effective 
communications between the recipient and the complaining client and, at 
a minimum, provide:
    (1) A method for providing a client, at the time the person is 
accepted as a client or as soon thereafter as is practical, with 
adequate notice of the complaint procedures and how to make a complaint;
    (2) For prompt consideration of each complaint by the Executive 
Director or the Executive Director's designee,
    (3) An opportunity for the complainant, if the Executive Director or 
the Executive Director's designee is unable to resolve the matter, to 
submit an oral or written statement to a grievance committee established 
by the governing body as required by Sec.  1621.2 of this Part. The 
procedures shall also: provide that the opportunity to submit an oral 
statement may be accomplished in person, by teleconference, or through 
some other reasonable alternative; permit a complainant to be 
accompanied by another person who may speak on that complainant's 
behalf; and provide that, upon request of the complainant, the recipient 
shall transcribe a brief written statement, dictated by the complainant 
for inclusion in the recipient's complaint file.
    (c) Complaints received from clients about the manner or quality of 
legal assistance that has been rendered by a private attorney pursuant 
to the recipient's private attorney involvement program under 45 CFR 
Part 1614 shall be processed in a manner consistent with its 
responsibilities under 45 CFR Sec.  1614.3(d)(3) and with applicable 
state or local rules of professional responsibility.
    (d) A file containing every complaint and a statement of its 
disposition shall be preserved for examination by LSC. The file shall 
include any written statement submitted by the complainant or 
transcribed by the recipient from a complainant's oral statement.



PART 1622_PUBLIC ACCESS TO MEETINGS UNDER THE GOVERNMENT IN THE SUNSHINE ACT--
Table of Contents



Sec.
1622.1 Purpose and scope.
1622.2 Definitions.
1622.3 Open meetings.
1622.4 Public announcement of meetings.
1622.5 Grounds on which meetings may be closed or information withheld.
1622.6 Procedures for closing discussion or withholding information.
1622.7 Certification by the General Counsel.
1622.8 Records of closed meetings.
1622.9 Emergency procedures.
1622.10 Report to Congress.

    Authority: Sec. 1004(g), Pub. L. 95-222, 91 Stat. 1619, (42 U.S.C. 
2996c(g)).

    Source: 49 FR 30940, Aug. 2, 1984, unless otherwise noted.



Sec.  1622.1  Purpose and scope.

    This part is designed to provide the public with full access to the 
deliberations and decisions of the Board of Directors of the Legal 
Services Corporation, committees of the Board, and state Advisory 
Councils, while maintaining the ability of those bodies to carry out 
their responsibilities and protecting the rights of individuals.



Sec.  1622.2  Definitions.

    Board means the Board of Directors of the Legal Services 
Corporation.

[[Page 469]]

    Committee means any formally designated subdivision of the Board 
established pursuant to Sec.  1601.27 of the By-Laws of the Corporation.
    Council means a state Advisory Council appointed by a state Governor 
or the Board pursuant to section 1004(f) of the Legal Services 
Corporation Act of 1974, 42 U.S.C. 2996c(f).
    Director means a voting member of the Board or a Council. Reference 
to actions by or communications to a ``Director'' means action by or 
communications to Board members with respect to proceedings of the 
Board, committee members with respect to proceedings of their 
committees, and council members with respect to proceedings of their 
councils.
    General Counsel means the General Counsel of the Corporation, or, in 
the absence of the General Counsel of the Corporation, a person 
designated by the President to fulfill the duties of the General Counsel 
or a member designated by a council to act as its chief legal officer.
    Meetings means the deliberations of a quorum of the Board, or of any 
committee, or of a council, when such deliberations determine or result 
in the joint conduct or disposition of Corporation business, but does 
not include deliberations about a decision to open or close a meeting, a 
decision to withhold information about a meeting, or the time, place, or 
subject of a meeting.
    Public observation means the right of any member of the public to 
attend and observe a meeting within the limits of reasonable 
accommodations made available for such purposes by the Corporation, but 
does not include any right to participate unless expressly invited by 
the Chairman of the Board of Directors, and does not include any right 
to disrupt or interfere with the disposition of Corporation business.
    Publicly available for the purposes of Sec.  1622.6(e) means to be 
procurable either from the Secretary of the Corporation at the site of 
the meeting or from the Office of Government Relations at Corporation 
Headquarters upon reasonable request made during business hours.
    Quorum means the number of Board or committee members authorized to 
conduct Corporation business pursuant to the Corporation's By-laws, or 
the number of council members authorized to conduct its business.
    Secretary means the Secretary of the Corporation, or, in the absence 
of the Secretary of the Corporation, a person appointed by the Chairman 
of the meeting to fulfill the duties of the Secretary, or a member 
designated by a council to act as its secretary.



Sec.  1622.3  Open meetings.

    Every meeting of the Board, a committee or a council shall be open 
in its entirety to public observation except as otherwise provided in 
Sec.  1622.5.



Sec.  1622.4  Public announcement of meetings.

    (a) Public announcement shall be posted of every meeting. The 
announcement shall include: (1) The time, place, and subject matter to 
be discussed;
    (2) Whether the meeting or a portion thereof is to be open or closed 
to public observation; and
    (3) The name and telephone number of the official designated by the 
Board, committee, or council to respond to requests for information 
about the meeting.
    (b) The announcement shall be posted at least seven calendar days 
before the meeting, unless a majority of the Directors determines by a 
recorded vote that Corporation business requires a meeting on fewer than 
seven days notice. In the event that such a determination is made, 
public announcement shall be posted at the earliest practicable time.
    (c) Each public announcement shall be posted at the offices of the 
Corporation in an area to which the public has access, and promptly 
submitted to the Federal Register for publication. Reasonable effort 
shall be made to communicate the announcement of a Board or committee 
meeting to the chairman of each council and the governing body and the 
program director of each recipient of funds from the Corporation, and of 
a council meeting to the governing body and program director of each 
recipient within the same State.

[[Page 470]]

    (d) An amended announcement shall be issued of any change in the 
information provided by a public announcement. Such changes shall be 
made in the following manner:
    (1) The time or place of a meeting may be changed without a recorded 
vote.
    (2) The subject matter of a meeting, or a decision to open or close 
a meeting or a portion thereof, may be changed by recorded vote of a 
majority of the Directors that Corporation business so requires and that 
no earlier announcement of the change was possible.

An amended public announcement shall be made at the earliest practicable 
time and in the manner specified by Sec.  1622.4 (a) and (c). In the 
event that changes are made pursuant to Sec.  1622.4(d)(2), the amended 
public announcement shall also include the vote of each Director upon 
such change.

[49 FR 30940, Aug. 2, 1984, as amended at 50 FR 30714, July 29, 1985]



Sec.  1622.5  Grounds on which meetings may be closed or information withheld.

    Except when the Board or council finds that the public interest 
requires otherwise, a meeting or a portion thereof may be closed to 
public observation, and information pertaining to such meeting or 
portion thereof may be withheld, if the Board or council determines that 
such meeting or portion thereof, or disclosure of such information, will 
more probably than not:
    (a) Relate solely to the internal personnel rules and practices of 
the Corporation;
    (b) Disclose matters specifically exempted from disclosure by 
statute (other than the Freedom of Information Act, 5 U.S.C. 552): 
Provided, That such statute (1) requires that the matters be withheld 
from the public in such a manner as to leave no discretion on the issue, 
or
    (2) Establishes particular types of matters to be withheld;
    (c) Disclose trade secrets and commercial or financial information 
obtained from a person and privileged or confidential;
    (d) Involve accusing any person of a crime or formally censuring any 
person;
    (e) Disclose information of a personal nature where disclosure would 
constitute a clearly unwarranted invasion of personal privacy;
    (f) Disclose investigatory records compiled for the purpose of 
enforcing the Act or any other law, or information which if written 
would be contained in such records, but only to the extent that 
production of such records or information would: (1) Interfere with 
enforcement proceedings,
    (2) Deprive a person of a right to a fair trial or an impartial 
adjudication,
    (3) Constitute an unwarranted invasion of personal privacy,
    (4) Disclose the identity of a confidential source,
    (5) Disclose investigative techniques and procedures, or
    (6) Endanger the life or physical safety of law enforcement 
personnel;
    (g) Disclose information the premature disclosure of which would be 
likely to frustrate significantly implementation of a proposed 
Corporation action, except that this paragraph shall not apply in any 
instance where the Corporation has already disclosed to the public the 
content or nature of its proposed action, or where the Corporation is 
required by law to make such disclosure on its own initiative prior to 
taking final action on such proposal; or
    (h) Specifically concern the Corporation'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 Corporation of a particular case involving a determination on the 
record after opportunity for a hearing.



Sec.  1622.6  Procedures for closing discussion or withholding information.

    (a) No meeting or portion of a meeting shall be closed to public 
observation, and no information about a meeting shall be withheld from 
the public, except by a recorded vote of a majority of the Directors 
with respect to each meeting or portion thereof proposed to be closed to 
the public, or with respect to any information that is proposed to be 
withheld.
    (b) A separate vote of the Directors shall be taken with respect to 
each

[[Page 471]]

meeting or portion thereof proposed to be closed to the public, or with 
respect to any information which is proposed to be withheld; except, a 
single vote may be taken with respect to a series of meetings or 
portions thereof 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.
    (c) Whenever any person's interest may be directly affected by a 
matter to be discussed at a meeting, the person may request that a 
portion of the meeting be closed to public observation by filing a 
written statement with the Secretary. The statement shall set forth the 
person's interest, the manner in which that interest will be affected at 
the meeting, and the grounds upon which closure is claimed to be proper 
under Sec.  1622.5. The Secretary shall promptly communicate the request 
to the Directors, and a recorded vote as required by paragraph (a) of 
this section shall be taken if any Director so requests.
    (d) With respect to each vote taken pursuant to paragraphs (a) 
through (c) of this section, the vote of each Director participating in 
the vote shall be recorded and no proxies shall be allowed.
    (e) With respect to each vote taken pursuant to paragraphs (a) 
through (c) of this section, the Corporation shall, within one business 
day, make publicly available:
    (1) A written record of the vote of each Director on the question;
    (2) A full written explanation of the action closing the meeting, 
portion(s) thereof, or series of meetings, with reference to the 
specific exemptions listed in Sec.  1622.5, including a statement of 
reasons as to why the specific discussion comes within the cited 
exemption and a list of all persons expected to attend the meeting(s) or 
portion(s) thereof and their affiliation.

[49 FR 30940, Aug. 2, 1984, as amended at 50 FR 30714, July 29, 1985]



Sec.  1622.7  Certification by the General Counsel.

    Before a meeting or portion thereof is closed, the General Counsel 
shall publicly certify that, in his opinion, the meeting may be so 
closed to the public and shall state each relevant exemption. A copy of 
the certification, together with a statement from the presiding officer 
of the meeting setting forth the time and place of the meeting and the 
persons present, shall be retained by the Corporation.



Sec.  1622.8  Records of closed meetings.

    (a) The Secretary shall make a complete transcript or electronic 
recording adequate to record fully the proceedings of each meeting or 
portion thereof closed to the public, except that in the case of meeting 
or any portion thereof closed to the public pursuant to paragraph (h) of 
Sec.  1622.5, a transcript, a recording, or a set of minutes shall be 
made.
    Any such minutes shall describe all matters discussed and shall 
provide a summary of any actions taken and the reasons therefor, 
including a description of each Director's views expressed on any item 
and the record of each Director's vote on the question. All documents 
considered in connection with any action shall be identified in the 
minutes.
    (b) A complete copy of the transcript, recording, or minutes 
required by paragraph (a) of this section shall be maintained at the 
Corporation for a Board or committee meeting, and at the appropriate 
Regional Office for a council meeting, for a period of two years after 
the meeting, or until one year after the conclusion of any Corporation 
proceeding with respect to which the meeting was held, whichever occurs 
later.
    (c) The Corporation shall make available to the public all portions 
of the transcript, recording, or minutes required by paragraph (a) of 
this section that do not contain information that may be withheld under 
Sec.  1622.5. A copy of those portions of the transcript, recording, or 
minutes that are available to the public shall be furnished to any 
person upon request at the actual cost of duplication or transcription.

[[Page 472]]

    (d) Copies of Corporation records other than notices or records 
prepared under this part may be pursued in accordance with part 1602 of 
these regulations.



Sec.  1622.9  Emergency procedures.

    If, in the opinion of the Chairman, the Directors are rendered 
incapable of conducting a meeting by the acts or conduct of any members 
of the public present at the meeting, the Directors may thereupon 
determine by a recorded vote of the majority of the number of Directors 
present at the meeting that the Chairman or presiding officer of the 
Board shall have the authority to have such members of the public who 
are responsible for such acts or conduct removed from the meeting.

[50 FR 30714, July 29, 1985]



Sec.  1622.10  Report to Congress.

    The Corporation shall report to the Congress annually regarding its 
compliance with the requirements of the Government in the Sunshine Act, 
5 U.S.C. 552(b), including a tabulation of the number of meetings open 
to the public, the number of meetings or portions of meetings closed to 
the public, the reasons for closing such meetings or portions thereof, 
and a description of any litigation brought against the Corporation 
under 5 U.S.C. 552b, including any costs assessed against the 
Corporation in such litigation.



PART 1623_SUSPENSION PROCEDURES--Table of Contents



Sec.
1623.1 Purpose.
1623.2 Definitions.
1623.3 Grounds for suspension.
1623.4 Suspension procedures.
1623.5 Time extensions and waiver.
1623.6 Interim funding.

    Authority: 42 U.S.C. 2996e(b)(1), 2996f(a)(3), and 2996f(d); Pub. L. 
105-119, Title V, Secs. 501(b), 502, and 503, 111 Stat. 2440, 2510-11; 
Pub. L. 104-134, Title V, Secs. 503(f) and 509(c), 110 Stat. 1321, 1321-
53, 1321-58, and 1321-59.

    Source: 78 FR 10098, Feb. 13, 2013, unless otherwise noted.



Sec.  1623.1  Purpose.

    The purpose of this rule is to:
    (a) Ensure that the Corporation is able to take prompt action when 
necessary to safeguard LSC funds or to ensure the compliance of a 
recipient with applicable provisions of law, or a rule, regulation, 
guideline or instruction issued by the Corporation, or the terms and 
conditions of a recipient's grant or contract with the Corporation; and
    (b) Provide procedures for prompt review that will ensure informed 
deliberation by the Corporation when it has made a proposed 
determination that financial assistance to a recipient should be 
suspended.



Sec.  1623.2  Definitions.

    For the purposes of this part the definitions in 45 CFR part 1606 
shall apply and also:
    Suspension means an action taken during the term of the recipient's 
current year's grant or contract with the Corporation that withholds 
financial assistance to a recipient, in whole or in part, until the end 
of the suspension period pending prompt corrective action by the 
recipient or a decision by the Corporation to initiate termination 
proceedings.



Sec.  1623.3  Grounds for suspension.

    (a) Financial assistance provided to a recipient may be suspended 
when the Corporation determines that there has been a substantial 
violation by the recipient of the LSC requirements, and the Corporation 
has reason to believe that prompt action is necessary to:
    (1) Safeguard LSC funds; or
    (2) Ensure immediate corrective action necessary to bring a 
recipient into compliance with an applicable provision of law, or a 
rule, regulation, guideline or instruction issued by the Corporation, or 
the terms and conditions of the recipient's grant or contract with the 
Corporation.
    (b) Financial assistance provided to a recipient may also be 
suspended by the Corporation pursuant to a recommendation by the Office 
of Inspector General when the recipient has failed to have an acceptable 
audit in accordance with the guidance promulgated by the Corporation's 
Office of Inspector General.

[[Page 473]]



Sec.  1623.4  Suspension procedures.

    (a) Prior to a preliminary determination involving a suspension of 
funding, the Corporation shall designate either the President or another 
senior Corporation employee to conduct any final review that is 
requested pursuant this part. The Corporation shall ensure that the 
person so designated has had no prior involvement in the proceedings 
under this part so as to meet the criterion of impartiality described in 
this section.
    (b) When the Corporation has made a proposed determination, based on 
the grounds set out in Sec.  1623.3 of this part, that financial 
assistance to a recipient should be suspended, the Corporation shall 
serve a written proposed determination on the recipient. The proposed 
determination shall:
    (1) State the grounds and effective date for the proposed 
suspension;
    (2) Identify, with reasonable specificity, any facts or documents 
relied upon as justification for the suspension;
    (3) Specify what, if any, prompt corrective action the recipient can 
take to avoid or end the suspension;
    (4) Advise the recipient that it may request, within 5 business days 
of receipt of the proposed determination, an informal meeting with the 
Corporation at which it may attempt to show that the proposed suspension 
should not be imposed; and
    (5) Advise the recipient that, within 10 business days of its 
receipt of the proposed determination and without regard to whether it 
requests an informal meeting, it may submit written materials in 
opposition to the proposed suspension.
    (c) If the recipient requests an informal meeting with the 
Corporation, the Corporation shall designate the time and place for the 
meeting. The meeting shall occur within 5 business days after the 
recipient's request is received.
    (d) The informal meeting shall be conducted by the Corporation 
employee who issued the preliminary determination or any other 
Corporation employee with a seniority level at, or equivalent to, the 
level of an office director or higher.
    (e) At the informal meeting, the Corporation and the recipient shall 
both have an opportunity to state their case, seek to narrow the issues, 
explore the possibilities of settlement or compromise including 
implementation of corrective actions, and submit written materials.
    (f) The Corporation shall consider any written materials submitted 
by the recipient in opposition to the proposed suspension and any oral 
presentation or written materials submitted by the recipient at an 
informal meeting. If, after considering such materials, the Corporation 
determines that the recipient has failed to show that the suspension 
should not become effective, the Corporation may issue a written final 
determination to suspend financial assistance to the recipient in whole 
or in part and under such terms and conditions the Corporation deems 
appropriate and necessary. The final determination shall include a 
summary of the issues raised in the informal conference and presented in 
any written materials. The final determination need not engage in a 
detailed analysis of all issues raised.
    (g) The final determination shall be promptly transmitted to the 
recipient in a manner that verifies receipt of the determination by the 
recipient, and the suspension shall become effective when the final 
determination is received by the recipient or on such later date as is 
specified therein.
    (h) If a suspension lasts for more than 30 days, then the recipient 
may seek review of the suspension by the President. A request may be 
made in writing on the thirty-first day or any day thereafter, and shall 
state, in detail, the reasons for seeking review.
    (1) The President may not review the suspension appeal if the 
President has had prior involvement in the suspension proceedings. If 
the President cannot review, or the President chooses not to do so, then 
the appeal shall be reviewed by either the individual designated to do 
so pursuant to Sec.  1623.4(a) of this part, or by another senior 
Corporation employee designated by the President who has not had prior 
involvement in the suspension proceedings.
    (2) The President's review shall be based on the administrative 
record of the proceedings, including the appeal

[[Page 474]]

to the President, and any additional submissions, either oral or in 
writing that the President may request. A recipient shall be given a 
copy of, and an opportunity to respond to, any additional submissions 
made to the President. All submissions and responses made to the 
President shall become part of the administrative record. Upon request, 
the Corporation shall provide a copy of the administrative record to the 
recipient.
    (3) The President shall affirm, modify, or terminate the suspension 
through a suspension appeal decision within 15 calendar days of receipt 
of the appeal by the Corporation, unless the Corporation and the 
recipient agree to a later date.
    (i) The Corporation may at any time rescind or modify the terms of 
the final determination to suspend and, on written notice to the 
recipient, may reinstate the suspension without further proceedings 
under this part.
    (j) Except as provided in Sec.  1623.4(k) of this part, the total 
time of a suspension shall not exceed 90 calendar days, unless the 
Corporation and the recipient agree to a continuation of the suspension 
without further proceedings under this part.
    (k) When the suspension is based on the grounds in Sec.  1623.3(b) 
of this part, a recipient's funds may be suspended until an acceptable 
audit is completed. No appeal to the President will be available for 
audit-based suspensions pursuant to Sec.  1623.3(b).



Sec.  1623.5  Time extensions and waiver.

    (a) Except for the time limits in Sec.  1623.4(i) and (j), any 
period of time provided in this part may be extended by the Corporation 
for good cause. Requests for extensions of time shall be considered in 
light of the overall objective that the procedures prescribed by this 
part ordinarily shall be concluded within 30 calendar days of the 
service of the proposed determination.
    (b) Any other provision of this part may be waived or modified by 
agreement of the recipient and the Corporation for good cause.
    (c) Failure by the Corporation to meet a time requirement of this 
part shall not preclude the Corporation from suspending a recipient's 
grant or contract with the Corporation.



Sec.  1623.6  Interim funding.

    (a) Pending the completion of suspension proceedings under this 
part, the Corporation shall provide the recipient with the level of 
financial assistance provided for under its current grant or contract 
with the Corporation.
    (b) Funds withheld pursuant to a suspension shall be released to the 
recipient at the end of the suspension period.



PART 1624_PROHIBITION AGAINST DISCRIMINATION ON THE BASIS OF DISABILITY--
Table of Contents



Sec.
1624.1 Purpose.
1624.2 Application.
1624.3 Definitions.
1624.4 Discrimination prohibited.
1624.5 Accessibility of legal services.
1624.6 Employment.
1624.7 Enforcement.

    Authority: 49 U.S.C. 794; 42 U.S.C. 2996f(a)(1) and (3).

    Source: 71 FR 65059, Nov. 7, 2006, unless otherwise noted.



Sec.  1624.1  Purpose.

    The purpose of this part is to assist and provide guidance to legal 
services programs supported in whole or in part by Legal Services 
Corporation funds in removing any impediments that may exist to the 
provision of legal assistance to persons with disabilities eligible for 
such assistance in accordance with section 504 of the Rehabilitation Act 
of 1973, as amended, 29 U.S.C. 794 and with sections 1007(a)(1) and (3) 
of the Legal Services Corporation Act, as amended, 42 U.S.C. 2996f(a)(1) 
and (3), with respect to the provision of services to and employment of 
persons with disabilities. The requirements of this Part apply in 
addition to any responsibilities legal services programs may have under 
applicable requirements of the Americans with Disabilities Act and 
applicable implementing regulations of the Department of Justice and the 
Equal Employment Opportunity Commission.

[[Page 475]]



Sec.  1624.2  Application.

    This part applies to each legal services program receiving financial 
assistance from the Legal Services Corporation.



Sec.  1624.3  Definitions.

    As used in this part, the term:
    (a) Legal services program means any recipient, as defined by Sec.  
1600.1 of this chapter, or any other public or private agency, 
institution, organization, or other entity, or any person to which or to 
whom financial assistance is extended by the Legal Services Corporation 
directly or through another agency, institution, organization, entity or 
person, including any successor, assignee, or transferee of a legal 
services program, but does not include the ultimate beneficiary of legal 
assistance;
    (b) 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;
    (c)(1) Person with a disability means any person 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 (c)(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; digestive; genitourinary; 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; The phrase 
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;
    (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 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 substantially limit major life 
activities but is treated by a legal services program 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 impairments; or (C) has none of the 
impairments defined in paragraph (c)(2)(i) of this section but is 
treated by a legal services program as having such an impairment;
    (d) Qualified person with a disability means:
    (1) With respect to employment, a person with a disability who, with 
reasonable accommodation, can perform the essential functions of the job 
in question;
    (2) with respect to other services, a person with a disability who 
meets the eligibility requirements for the receipt of such services from 
the legal services program.
    (e) Auxiliary aids and/or other assistive technologies means any 
item, piece of equipment, or product system whether acquired 
commercially off the shelf, modified or customized, that is used to 
increase, maintain, or improve functional capabilities of individuals 
with disabilities. Auxiliary aids and/or other assistive technologies 
include, but are not limited to, brailled and taped material, 
interpreters, telecommunications equipment for the deaf, voice 
recognition software, computer screen magnifiers, screen reader 
software, wireless amplification systems, and other aids.



Sec.  1624.4  Discrimination prohibited.

    (a) No qualified person with a disability shall, on the basis of 
disability, be excluded from participation in, be denied the benefits 
of, or otherwise be subjected to discrimination by any legal services 
program, directly or

[[Page 476]]

through any contractual or other arrangement.
    (b) A legal services program may not deny a qualified person with a 
disability the opportunity to participate in any of its programs or 
activities or to receive any of its services provided at a facility on 
the ground that the program operates a separate or different program, 
activity or facility that is specifically designed to serve persons with 
disabilities.
    (c) In determining the geographic site or location of a facility, a 
legal services program may not make selections that have the purpose or 
effect of excluding persons with disabilities from, denying them the 
benefits of, or otherwise subjecting them to discrimination under any 
program or activity of the legal services program.
    (d)(1) A legal services program that employs a total of fifteen or 
more persons, regardless of whether such persons are employed at one or 
more locations, shall provide, when necessary, appropriate auxiliary 
aids and/or other assistive technologies to persons with impaired 
sensory, manual or speaking skills, in order to afford such persons an 
equal opportunity to benefit from the legal services program's services. 
A legal services program is not required to maintain such aids at all 
times, provided they can be obtained on reasonable notice.
    (2) The Corporation may require legal services programs with fewer 
than fifteen employees to provide auxiliary aids and/or other assistive 
technologies where the provision of such aids would not significantly 
impair the ability of the legal services program to provide its 
services.
    (e) A legal services program shall take reasonable steps to ensure 
that communications with its applicants, employees, and beneficiaries 
are available to persons with impaired vision and hearing.
    (f) A legal services program may not deny persons with disabilities 
the opportunity to participate as members of or in the meetings or 
activities of any planning or advisory board or process established by 
or conducted by the legal services program, including but not limited to 
meetings and activities conducted in response to the requirements of 45 
CFR part 1620.



Sec.  1624.5  Accessibility of legal services.

    (a) No qualified person with a disability shall, because a legal 
services program's facilities are inaccessible to or unusable by persons 
with disabilities, be denied the benefits of, be excluded from 
participation in, or otherwise be subjected to discrimination by any 
legal services program.
    (b) A legal services program shall conduct its programs and 
activities so that, when viewed in their entirety, they are readily 
accessible to and usable by persons with disabilities. This paragraph 
does not necessarily require a legal services program to make each of 
its existing facilities or every part of an existing facility accessible 
to and usable by persons with disabilities, or require a legal services 
program to make structural changes in existing facilities when other 
methods are effective in achieving compliance. In choosing among 
available methods for meeting the requirements of this paragraph, a 
legal services program shall give priority to those methods that offer 
legal services to persons with disabilities in the most integrated 
setting appropriate.
    (c) A legal services program shall, to the maximum extent feasible, 
ensure that new facilities that it rents or purchases are accessible to 
persons with disabilities. Prior to entering into any lease or contract 
for the purchase of a building, a legal services program shall submit a 
statement to LSC certifying that the facilities covered by the lease or 
contract will be accessible to persons with disabilities, or if the 
facilities will not be accessible, a detailed description of the efforts 
the program made to obtain accessible space, the reasons why the 
inaccessible facility was nevertheless selected, and the specific steps 
that will be taken by the legal services program to ensure that its 
services are accessible to persons with disabilities who would otherwise 
use that facility. After a statement certifying facility accessibility 
has been submitted, additional statements need not be resubmitted with 
respect to the same facility, unless substantial

[[Page 477]]

changes have been made in the facility that affect its accessibility.
    (d) A legal services program shall ensure that new facilities 
designed or constructed for it are readily accessible to and usable by 
persons with disabilities. Alterations to existing facilities shall, to 
the maximum extent feasible, be designed and constructed to make the 
altered facilities readily accessible to and usable by persons with 
disabilities.



Sec.  1624.6  Employment.

    (a) No qualified person with a disability shall, on the basis of 
disability, be subjected to discrimination in employment by any legal 
services program.
    (b) A legal services program shall make all decisions concerning 
employment under any program or activity to which this part applies in a 
manner that ensures that discrimination on the basis of disability 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 disability.
    (c) 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 absence, sick leave, or any other leave;
    (6) Fringe benefits available by virtue of employment, whether or 
not administered by the legal services program;
    (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.
    (d) A legal services program may not participate in any contractual 
or other relationship with persons, agencies, organizations or other 
entities such as, but not limited to, employment and referral agencies, 
labor unions, organizations providing or administering fringe benefits 
to employees of the legal services program, and organizations providing 
training and apprenticeship programs, if the practices of such person, 
agency, organization, or other entity have the effect of subjecting 
qualified applicants or employees with disabilities to discrimination 
prohibited by this paragraph.
    (e) A legal services program shall make reasonable accommodation to 
the known physical or mental limitations of an otherwise qualified 
applicant or employee with a disability unless the accommodation would 
impose an undue hardship on the operation of the program.
    (1) For purposes of this paragraph (e), reasonable accommodation may 
include:
    (i) Making facilities used by employees readily accessible to and 
usable by persons with disabilities; and
    (ii) job restructuring, part-time or modified work schedules, 
acquisition or modification of equipment or devices, the provision of 
auxiliary aids and/or other assistive technologies, and other similar 
actions.
    (2) In determining whether an accommodation would impose an undue 
hardship on the operation of a legal services program, factors to be 
considered include, but are not limited to, the overall size of the 
legal services program with respect to number of employees, number and 
type of facilities, and size of budget, and the nature and costs of the 
accommodation needed.
    (3) A legal services program may not deny any employment opportunity 
to a qualified employee or applicant with a disability if the basis for 
the denial is a need to make reasonable accommodation to the physical or 
mental limitations of the employee or applicant.

[[Page 478]]

    (f) A legal services program may not use employment tests or 
criteria that discriminate against persons with disabilities, and shall 
ensure that employment tests are adapted for use by persons who have 
disabilities that impair sensory, manual, or speaking skills.
    (g) A legal services program may not conduct a pre-employment 
medical examination or make a pre-employment inquiry as to whether an 
applicant is a person with a disability or as to the nature or severity 
of a disability except under the circumstances described in 45 CFR 
84.14(a) through (d)(2). The Corporation shall have access to relevant 
information obtained in accordance with this section to permit 
investigations of alleged violations of this part.
    (h) A legal services program shall post in prominent places in each 
of its offices a notice stating that the legal services program does not 
discriminate on the basis of disability.
    (i) Any recruitment materials published or used by a legal services 
program shall include a statement that the legal services program does 
not discriminate on the basis of disability.



Sec.  1624.7  Enforcement.

    (a) The procedures described in part 1618 of these regulations shall 
apply to any alleged violation of this Part by a legal services program.
    (b) When LSC receives a complaint of a violation of this part, LSC 
policy is generally to refer such complainants promptly to the 
appropriate Federal, state or local agencies, although LSC retains the 
discretion to investigate all complaints and/or to maintain an open 
complaint file during the pendency of an investigation being conducted 
by such other Federal, state or local agency. LSC may use, at its 
discretion, information obtained by such other agency as may be 
available to LSC, including findings of such other agency of whether 
discrimination on the basis of disability occurred.

                          PART 1625 [RESERVED]



PART 1626_RESTRICTIONS ON LEGAL ASSISTANCE TO ALIENS--Table of Contents



Sec.
1626.1 Purpose.
1626.2 Definitions.
1626.3 Prohibition.
1626.4 Aliens eligible for assistance under anti-abuse laws.
1626.5 Aliens eligible for assistance based on immigration status.
1626.6 Verification of citizenship.
1626.7 Verification of eligible alien status.
1626.8 Emergencies.
1626.9 Change in circumstances.
1626.10 Special eligibility questions.
1626.11 H-2 agricultural and forestry workers.
1626.12 Recipient policies, procedures, and recordkeeping.

    Authority: 42 U.S.C. 2996g(e).

    Source: 79 FR 21871, Apr. 18, 2014, unless otherwise noted.



Sec.  1626.1  Purpose.

    This part is designed to ensure that recipients provide legal 
assistance only to citizens of the United States and eligible aliens. It 
is also designed to assist recipients in determining the eligibility and 
immigration status of persons who seek legal assistance.



Sec.  1626.2  Definitions.

    (a) Anti-abuse statutes means the Violence Against Women Act of 
1994, Pub. L. 103-322, 108 Stat. 1941, as amended, and the Violence 
Against Women and Department of Justice Reauthorization Act of 2005, 
Public Law 109-162, 119 Stat. 2960 (collectively referred to as 
``VAWA''); Section 101(a)(15)(U) of the INA, 8 U.S.C. 1101(a)(15)(U); 
and the incorporation of these statutory provisions in section 
502(a)(2)(C) of LSC's FY 1998 appropriation, Public Law 105-119, Title 
V, 111 Stat. 2440, 2510 as incorporated by reference thereafter; the 
Victims of Trafficking and Violence Protection Act of 2000, Public Law 
106-386, 114 Stat. 1464 (``TVPA''), as amended; and Section 
101(a)(15)(T) of the Immigration and Nationality Act (``INA''), 8 U.S.C. 
1101(a)(15)(T).
    (b) Battered or subjected to extreme cruelty includes, but is not 
limited to, being the victim of any act or threatened act of violence, 
including any forceful detention, which results or threatens to result 
in physical or mental injury. Psychological or sexual abuse or 
exploitation, including rape, molestation, incest (if the victim is a 
minor), or forced prostitution may be

[[Page 479]]

considered acts of violence. Other abusive actions may also be acts of 
violence under certain circumstances, including acts that, in and of 
themselves, may not initially appear violent but that are a part of an 
overall pattern of violence.
    (c) Certification means the certification prescribed in 22 U.S.C. 
7105(b)(1)(E).
    (d) Citizen means a person described or defined as a citizen or 
national of the United States in 8 U.S.C. 1101(a)(22) and Title III of 
the Immigration and Nationality Act (INA), Chapter 1 (8 U.S.C. 1401 et 
seq.) (citizens by birth) and Chapter 2 (8 U.S.C. 1421 et seq.) 
(citizens by naturalization) or antecedent citizen statutes.
    (e) Eligible alien means a person who is not a citizen but who meets 
the requirements of Sec.  1626.4 or Sec.  1626.5.
    (f) Ineligible alien means a person who is not a citizen and who 
does not meet the requirements of Sec.  1626.4 or Sec.  1626.5.
    (g) On behalf of an ineligible alien means to render legal 
assistance to an eligible client that benefits an ineligible alien and 
does not affect a specific legal right or interest of the eligible 
client.
    (h)(1) Qualifies for immigration relief under section 101(a)(15)(U) 
of the INA means:
    (i) A person who has been granted relief under that section;
    (ii) A person who has applied for relief under that section and who 
the recipient determines has evidentiary support for such application; 
or
    (iii) A person who has not filed for relief under that section, but 
who the recipient determines has evidentiary support for filing for such 
relief.
    (2) A person who qualifies for immigration relief under section 
101(a)(15)(U) of the INA includes any person who may apply for primary U 
visa relief under subsection (i) of section 101(a)(15)(U) of the INA (8 
U.S.C. 1101(a)(15)(U)(i)) or for derivative U visa relief for family 
members under subsection (ii) of section 101(a)(15)(U) of the INA (8 
U.S.C. 1101(a)(15)(U)(ii)). Recipients may provide assistance for any 
person who qualifies for derivative U visa relief regardless of whether 
such a person has been subjected to abuse.
    (i) Rejected refers to an application for adjustment of status that 
has been denied by the Department of Homeland Security (DHS) and is not 
subject to further administrative appeal.
    (j) Victim of severe forms of trafficking means any person described 
at 22 U.S.C. 7105(b)(1)(C).
    (k) Victim of sexual assault or trafficking means:
    (1) A victim of sexual assault subjected to any conduct included in 
the definition of sexual assault in VAWA, 42 U.S.C. 13925(a)(29); or
    (2) A victim of trafficking subjected to any conduct included in the 
definition of ``trafficking'' under law, including, but not limited to, 
local, state, and federal law, and T visa holders regardless of 
certification from the U.S. Department of Health and Human Services 
(HHS).
    (l) United States, for purposes of this part, has the same meaning 
given that term in section 101(a)(38) of the INA (8 U.S.C. 1101(a)(38)).

[79 FR 30052, May 27, 2014]



Sec.  1626.3  Prohibition.

    Recipients may not provide legal assistance for or on behalf of an 
ineligible alien. For purposes of this part, legal assistance does not 
include normal intake and referral services.



Sec.  1626.4  Aliens eligible for assistance under anti-abuse laws.

    (a) Subject to all other eligibility requirements and restrictions 
of the LSC Act and regulations and other applicable law:
    (1) A recipient may provide related legal assistance to an alien who 
is within one of the following categories:
    (i) An alien who has been battered or subjected to extreme cruelty, 
or is a victim of sexual assault or trafficking in the United States, or 
qualifies for immigration relief under section 101(a)(15)(U) of the INA 
(8 U.S.C. 1101(a)(15)(U)); or
    (ii) An alien whose child, without the active participation of the 
alien, has been battered or subjected to extreme cruelty, or has been a 
victim of sexual assault or trafficking in the United States, or 
qualifies for immigration relief under section 101(a)(15)(U) of the INA 
(8 U.S.C. 1101(a)(15)(U)).

[[Page 480]]

    (2)(i) A recipient may provide legal assistance, including but not 
limited to related legal assistance, to:
    (A) An alien who is a victim of severe forms of trafficking of 
persons in the United States; or
    (B) An alien classified as a non-immigrant under section 
101(a)(15)(T)(ii) of the INA (8 U.S.C. 1101(a)(15)(T)(ii), regarding 
others related to the victim).
    (ii) For purposes of this part, aliens described in paragraphs 
(a)(2)(i)(A) and (a)(2)(i)(B) of this section include individuals 
seeking certification as victims of severe forms of trafficking and 
certain family members applying for immigration relief under section 
101(a)(15)(T)(ii) of the INA (8 U.S.C. 1101(a)(15)(T)(ii)).
    (b)(1) Related legal assistance means legal assistance directly 
related:
    (i) To the prevention of, or obtaining relief from, the battery, 
cruelty, sexual assault, or trafficking;
    (ii) To the prevention of, or obtaining relief from, crimes listed 
in section 101(a)(15)(U)(iii) of the INA (8 U.S.C. 1101(a)(15)(U)(iii)); 
or
    (iii) To an application for relief:
    (A) Under section 101(a)(15)(U) of the INA (8 U.S.C. 
1101(a)(15)(U)); or
    (B) Under section 101(a)(15)(T) of the INA (8 U.S.C. 
1101(a)(15)(T)).
    (2) Such assistance includes representation in matters that will 
assist a person eligible for assistance under this part to escape from 
the abusive situation, ameliorate the current effects of the abuse, or 
protect against future abuse, so long as the recipient can show the 
necessary connection of the representation to the abuse. Such 
representation may include immigration law matters and domestic or 
poverty law matters (such as obtaining civil protective orders, divorce, 
paternity, child custody, child and spousal support, housing, public 
benefits, employment, abuse and neglect, juvenile proceedings and 
contempt actions).
    (c) Relationship to the United States. An alien must satisfy both 
paragraph (c)(1) and either paragraph (c)(2)(i) or (ii) of this section 
to be eligible for legal assistance under this part.
    (1) Relation of activity to the United States. An alien is eligible 
under this section if the activity giving rise to eligibility violated a 
law of the United States, regardless of where the activity occurred, or 
occurred in the United States (including in Indian country and military 
installations) or the territories and possessions of the United States.
    (2) Relationship of alien to the United States. (i) An alien defined 
in Sec.  1626.2(b), (h), or (k)(1) need not be present in the United 
States to be eligible for assistance under this section.
    (ii) An alien defined in Sec.  1626.2(j) or (k)(2) must be present 
in the United States to be eligible for assistance under this section.
    (d) Evidentiary support--(1) Intake and subsequent evaluation. A 
recipient may determine that an alien is qualified for assistance under 
this section if there is evidentiary support that the alien falls into 
any of the eligibility categories or if the recipient determines there 
will likely be evidentiary support after a reasonable opportunity for 
further investigation. If the recipient determines that an alien is 
eligible because there will likely be evidentiary support, the recipient 
must obtain evidence of support as soon as possible and may not delay in 
order to provide continued assistance.
    (2) Documentary evidence. Evidentiary support may include, but is 
not limited to, affidavits or unsworn written statements made by the 
alien; written summaries of statements or interviews of the alien taken 
by others, including the recipient; reports and affidavits from police, 
judges, and other court officials, medical personnel, school officials, 
clergy, social workers, other social service agency personnel; orders of 
protection or other legal evidence of steps taken to end abuse; evidence 
that a person sought safe haven in a shelter or similar refuge; 
photographs; documents; or other evidence of a series of acts that 
establish a pattern of qualifying abuse.
    (3) Victims of severe forms of trafficking. Victims of severe forms 
of trafficking may present any of the forms of evidence listed in 
paragraph (d)(2) of this section or any of the following:
    (i) A certification letter issued by the Department of Health and 
Human Services (HHS).

[[Page 481]]

    (ii) Verification that the alien has been certified by calling the 
HHS trafficking verification line, (202) 401-5510 or (866) 401-5510.
    (iii) An interim eligibility letter issued by HHS, if the alien was 
subjected to severe forms of trafficking while under the age of 18.
    (iv) An eligibility letter issued by HHS, if the alien was subjected 
to severe forms of trafficking while under the age of 18.
    (e) Recordkeeping. Recipients are not required by Sec.  1626.12 to 
maintain records regarding the immigration status of clients represented 
pursuant to this section. If a recipient relies on an immigration 
document for the eligibility determination, the recipient shall document 
that the client presented an immigration document by making a note in 
the client's file stating that a staff member has seen the document, the 
type of document, the client's alien registration number (``A number''), 
the date of the document, and the date of the review, and containing the 
signature of the staff member that reviewed the document.
    (f) Changes in basis for eligibility. If, during the course of 
representing an alien eligible pursuant to Sec.  1626.4(a)(1), a 
recipient determines that the alien is also eligible under Sec.  
1626.4(a)(2) or Sec.  1626.5, the recipient should treat the alien as 
eligible under that section and may provide all the assistance available 
pursuant to that section.



Sec.  1626.5  Aliens eligible for assistance based on immigration status.

    Subject to all other eligibility requirements and restrictions of 
the LSC Act and regulations and other applicable law, a recipient may 
provide legal assistance to an alien who is present in the United States 
and who is within one of the following categories:
    (a) An alien lawfully admitted for permanent residence as an 
immigrant as defined by section 101(a)(20) of the INA (8 U.S.C. 
1101(a)(20));
    (b) An alien who is either married to a United States citizen or is 
a parent or an unmarried child under the age of 21 of such a citizen and 
who has filed an application for adjustment of status to permanent 
resident under the INA, and such application has not been rejected;
    (c) An alien who is lawfully present in the United States pursuant 
to an admission under section 207 of the INA (8 U.S.C. 1157) (relating 
to refugee admissions) or who has been granted asylum by the Attorney 
General or the Secretary of DHS under section 208 of the INA (8 U.S.C. 
1158);
    (d) An alien who is lawfully present in the United States as a 
result of being granted conditional entry pursuant to section 203(a)(7) 
of the INA (8 U.S.C. 1153(a)(7), as in effect on March 31, 1980) before 
April 1, 1980, because of persecution or fear of persecution on account 
of race, religion, or political opinion or because of being uprooted by 
catastrophic natural calamity;
    (e) An alien who is lawfully present in the United States as a 
result of the Attorney General's withholding of deportation or exclusion 
under section 243(h) of the INA (8 U.S.C. 1253(h), as in effect on April 
16, 1996) or withholding of removal pursuant to section 241(b)(3) of the 
INA (8 U.S.C. 1231(b)(3)); or
    (f) An alien who meets the requirements of Sec.  1626.10 or Sec.  
1626.11.



Sec.  1626.6  Verification of citizenship.

    (a) A recipient shall require all applicants for legal assistance 
who claim to be citizens to attest in writing in a standard form 
provided by the Corporation that they are citizens, unless the only 
service provided for a citizen is brief advice and consultation by 
telephone, or by other non-in-person means, which does not include 
continuous representation.
    (b) When a recipient has reason to doubt that an applicant is a 
citizen, the recipient shall require verification of citizenship. A 
recipient shall not consider factors such as a person's accent, limited 
English-speaking ability, appearance, race, or national origin as a 
reason to doubt that the person is a citizen.
    (1) If verification is required, a recipient may accept originals, 
certified copies, or photocopies that appear to be complete, correct, 
and authentic of any of the following documents as evidence of 
citizenship:
    (i) United States passport;
    (ii) Birth certificate;

[[Page 482]]

    (iii) Naturalization certificate;
    (iv) United States Citizenship Identification Card (INS Form 1-197 
or I-197); or
    (v) Baptismal certificate showing place of birth within the United 
States and date of baptism within two months after birth.
    (2) A recipient may also accept any other authoritative document, 
such as a document issued by DHS, by a court, or by another governmental 
agency, that provides evidence of citizenship.
    (3) If a person is unable to produce any of the above documents, the 
person may submit a notarized statement signed by a third party, who 
shall not be an employee of the recipient and who can produce proof of 
that party's own United States citizenship, that the person seeking 
legal assistance is a United States citizen.



Sec.  1626.7  Verification of eligible alien status.

    (a) An alien seeking representation shall submit appropriate 
documents to verify eligibility, unless the only service provided for an 
eligible alien is brief advice and consultation by telephone, or by 
other non-in-person means, which does not include continuous 
representation of a client.
    (1) As proof of eligibility, a recipient may accept originals, 
certified copies, or photocopies that appear to be complete, correct, 
and authentic, of any documents establishing eligibility. LSC will 
publish a list of examples of such documents from time to time in the 
form of a program letter or equivalent.
    (2) A recipient may also accept any other authoritative document 
issued by DHS, by a court, or by another governmental agency, that 
provides evidence of alien status.
    (b) A recipient shall upon request furnish each person seeking legal 
assistance with a current list of documents establishing eligibility 
under this part as is published by LSC.



Sec.  1626.8  Emergencies.

    In an emergency, legal services may be provided prior to compliance 
with Sec. Sec.  1626.4, 1626.6, and 1626.7 if:
    (a) An applicant cannot feasibly come to the recipient's office or 
otherwise transmit written documentation to the recipient before 
commencement of the representation required by the emergency, and the 
applicant provides oral information to establish eligibility which the 
recipient records, and the applicant submits the necessary documentation 
as soon as possible; or
    (b) An applicant is able to come to the recipient's office but 
cannot produce the required documentation before commencement of the 
representation, and the applicant signs a statement of eligibility and 
submits the necessary documentation as soon as possible; and
    (c) The recipient informs clients accepted under paragraph (a) or 
(b) of this section that only limited emergency legal assistance may be 
provided without satisfactory documentation and that, if the client 
fails to produce timely and satisfactory written documentation, the 
recipient will be required to discontinue representation consistent with 
the recipient's professional responsibilities.



Sec.  1626.9  Change in circumstances.

    If, to the knowledge of the recipient, a client who was an eligible 
alien becomes ineligible through a change in circumstances, continued 
representation is prohibited by this part and a recipient must 
discontinue representation consistent with applicable rules of 
professional responsibility.



Sec.  1626.10  Special eligibility questions.

    (a)(1) This part is not applicable to recipients providing services 
in the Commonwealth of the Northern Mariana Islands, the Republic of 
Palau, the Federated States of Micronesia, or the Republic of the 
Marshall Islands.
    (2) All citizens of the Republic of Palau, the Federated States of 
Micronesia, and the Republic of the Marshall Islands residing in the 
United States are eligible to receive legal assistance provided that 
they are otherwise eligible under the Act.
    (b) All Canadian-born American Indians at least 50% Indian by blood 
are eligible to receive legal assistance provided they are otherwise 
eligible under the Act.
    (c) Members of the Texas Band of Kickapoo are eligible to receive 
legal

[[Page 483]]

assistance provided they are otherwise eligible under the Act.
    (d) An alien who qualified as a special agricultural worker and 
whose status is adjusted to that of temporary resident alien under the 
provisions of the Immigration Reform and Control Act (``IRCA'') is 
considered a permanent resident alien for all purposes except 
immigration under the provisions of section 302 of 100 Stat. 3422, 8 
U.S.C. 1160(g). Since the status of these aliens is that of permanent 
resident alien under section 101(a)(20) of the INA (8 U.S.C. 
1101(a)(20)), these workers may be provided legal assistance. These 
workers are ineligible for legal assistance in order to obtain the 
adjustment of status of temporary resident under IRCA, but are eligible 
for legal assistance after the application for adjustment of status to 
that of temporary resident has been filed, and the application has not 
been rejected.
    (e) A recipient may provide legal assistance to indigent foreign 
nationals who seek assistance pursuant to the Hague Convention on the 
Civil Aspects of International Child Abduction and the Federal 
implementing statute, the International Child Abduction Remedies Act, 42 
U.S.C. 11607(b), provided that they are otherwise financially eligible.



Sec.  1626.11  H-2 agricultural and forestry workers.

    (a) Nonimmigrant agricultural workers admitted to, or permitted to 
remain in, the United States under the provisions of section 
101(a)(15)(h)(ii)(a) of the INA (8 U.S.C. 1101(a)(15)(h)(ii)(a)), 
commonly called H-2A agricultural workers, may be provided legal 
assistance regarding the matters specified in paragraph (c) of this 
section.
    (b) Nonimmigrant forestry workers admitted to, or permitted to 
remain in, the United States under the provisions of section 
101(a)(15)(h)(ii)(b) of the INA (8 U.S.C. 1101(a)(15)(h)(ii)(b)), 
commonly called H-2B forestry workers, may be provided legal assistance 
regarding the matters specified in paragraph (c) of this section.
    (c) The following matters which arise under the provisions of the 
worker's specific employment contract may be the subject of legal 
assistance by an LSC-funded program:
    (1) Wages;
    (2) Housing;
    (3) Transportation; and
    (4) Other employment rights as provided in the worker's specific 
contract under which the nonimmigrant worker was admitted.



Sec.  1626.12  Recipient policies, procedures, and recordkeeping.

    Each recipient shall adopt written policies and procedures to guide 
its staff in complying with this part and shall maintain records 
sufficient to document the recipient's compliance with this part.

[79 FR 21871, Apr. 18, 2014]



PART 1627_SUBGRANTS--Table of Contents



Sec.
1627.1 Purpose.
1627.2 Definitions.
1627.3 Characteristics of subgrants.
1627.4 Requirements for all subgrants.
1627.5 Applicability of restrictions, recordkeeping, and recipient 
          priorities; private attorney involvement subgrants.
1627.6 Transfers to other recipients.
1627.7 Recipient policies, procedures and recordkeeping.

    Authority: 42 U.S.C. 2996g(e).

    Source: 82 FR 10283, Feb. 10, 2017, unless otherwise noted.



Sec.  1627.1  Purpose.

    The purpose of this part is to establish the requirements for 
subgrants of LSC funds from recipients to third parties to assist in the 
recipient's provision of legal assistance to eligible clients.



Sec.  1627.2  Definitions.

    (a) Private attorney has the meaning given that term in 45 CFR 
1614.3(i).
    (b) Procurement contract means an agreement between a recipient and 
a third party under which the recipient purchases property or services 
that does not qualify as a subgrant as defined in paragraph (e)(1) of 
this section.
    (c) Property means real estate or personal property.
    (d) Recipient as used in this part means any recipient as defined in 
section 1002(6) of the Act and any grantee

[[Page 484]]

or contractor receiving funds from LSC under section 1006(a)(1)(B) of 
the Act.
    (e) Subgrant. (1) Subgrant means an award of LSC funds or property 
or services purchased in whole or in part with LSC funds from a 
recipient to a subrecipient for the subrecipient to carry out part of 
the recipient's legal assistance activities. A subgrant has the 
characteristics set forth in Sec.  1627.3(b).
    (2) Subgrant includes fee-for-service arrangements, such as those 
provided by a private law firm or attorney representing a recipient's 
clients on a contract or judicare basis, only when the cost of such 
arrangements exceed $60,000.
    (f) Subrecipient means any entity receiving a subgrant. A single 
entity may be a subrecipient with respect to some activities it conducts 
for a recipient while not being a subrecipient with respect to other 
activities it conducts for a recipient.



Sec.  1627.3  Characteristics of subgrants.

    (a) In determining whether an agreement between a recipient and 
another entity should be considered a subgrant or a procurement 
contract, the substance of the relationship is more important than the 
form of the agreement. All of the characteristics listed in paragraph 
(b) of this section may not be present in all cases, and the recipient 
must use judgment in classifying each agreement as a subgrant or a 
procurement contract. The recipient must make case-by-case 
determinations whether each agreement that it makes with another entity 
constitutes a subgrant or a procurement contract.
    (b) Characteristics that support the classification of the agreement 
as a subgrant include when the other entity:
    (1) Determines who is eligible to receive legal assistance under the 
recipient's LSC grant;
    (2) Has its performance measured in relation to whether objectives 
of the LSC grant were met;
    (3) Has responsibility for programmatic decision-making regarding 
the delivery of legal assistance under the recipient's LSC grant;
    (4) Is responsible for adherence to applicable LSC program 
requirements specified in the LSC grant award; and
    (5) In accordance with its agreement, uses the LSC funds or property 
or services acquired in whole or in part with LSC funds, to carry out a 
program for a public purpose specified in LSC's governing statutes and 
regulations, as opposed to providing goods or services for the benefit 
of the recipient.



Sec.  1627.4  Requirements for all subgrants.

    (a) Threshold. (1) A recipient must obtain LSC's written approval 
prior to making a subgrant when the cost of the subgrant is $20,000 of 
LSC funds or greater.
    (2) Valuation of in-kind subgrants. (i) If either the actual cost to 
the recipient of the subgranted property or service or the fair market 
value of the subgranted property or service exceeds $20,000 of LSC 
funds, the recipient must seek written approval from LSC prior to making 
a subgrant.
    (ii) The valuation of the subgrant, either by fair market value or 
actual cost to the recipient of property or services, must be documented 
and to the extent feasible supported by the same methods used internally 
by the recipient.
    (b) Corporation approval of subgrants. Recipients must submit all 
applications for subgrants exceeding the $20,000 threshold to LSC in 
writing for prior written approval. LSC will publish notice of the 
requirements concerning the format and contents of the application 
annually in the Federal Register and on LSC's Web site.
    (1) Basic Field Grants. (i) Recipients should submit applications 
for subgrants of Basic Field Grant funds along with the recipient's 
proposal for funding, including applications for renewal of funding.
    (ii) LSC will notify a recipient of its decision to approve, 
disapprove, or suggest modifications to an application for subgrant 
approval prior to, or at the same time as LSC provides notice of its 
decision with respect to the applicant's proposal for Basic Field Grant 
funding.

[[Page 485]]

    (2) Special grants. (i) Recipients of special grants (e.g., 
Technology Initiative Grants, Pro Bono Innovation Fund grants, emergency 
relief grants), should submit their subgrant applications following 
notification of approval of special grant funds.
    (ii) A subgrant application must be submitted at least 45 days in 
advance of its proposed effective date. Within 45 days of the date of 
receipt, LSC will notify the recipient in writing of its decision to 
approve, disapprove, or suggest modifications to the subgrant; or, if 
LSC has not made a decision, the date by which LSC expects to make a 
decision. A subgrant that is disapproved or to which LSC has suggested 
modifications may be resubmitted for approval.
    (3) Mid-year subgrant requests. A recipient may apply for prior 
approval of a subgrant outside of the periods prescribed in paragraphs 
(a)(1) and (2) of this section as needed. LSC will follow the time 
periods prescribed in paragraph (a)(2)(ii) of this section to consider 
and notify a recipient of its decision to approve, disapprove, or 
suggest modifications to the subgrant.
    (4) Failure to comply. Any subgrant not approved according to 
paragraphs (a)(1) through (3) of this section will be subject to 
disallowance and recovery of all funds expended under the subgrant.
    (5) Changes to subgrants requiring prior approval. (i) If a 
recipient needs to make substantial changes to the scope or objectives, 
or increase or decrease the amount of funding of more than 10%, of a 
subgrant approved under paragraph (b) of this section, the recipient 
must obtain LSC's prior written approval. Minor changes in the scope or 
objectives or changes in support of less than 10% do not require prior 
approval, but the recipient must notify LSC of such changes in writing.
    (ii) If a subgrant did not require prior approval, and the recipient 
proposes a change that will cause the total value of the subgrant to 
exceed the threshold for prior approval, the recipient must obtain LSC's 
prior written approval before making the change.
    (c) Duration of subgrant. (1) For Basic Field grants, a subgrant may 
not be for a period longer than one year. All funds unexpended at the 
end of the subgrant period will be considered part of the recipient's 
available LSC funds.
    (2) For special grants (e.g., Pro Bono Innovation Fund grants, 
Technology Initiative Grants, emergency relief grants), a subgrant may 
not be for a period longer than the term of the grant. Absent written 
approval from LSC, all unexpended funds must be returned to LSC at the 
end of the subgrant period.
    (d) Provisions for termination and suspension of subgrants. All 
subgrants must contain provisions for their orderly termination in the 
event that the recipient is no longer an LSC recipient, and for 
suspension of activities if the recipient's funding is suspended.
    (e) Recipient responsibilities. (1) Recipients must ensure that 
subrecipients comply with LSC's financial and audit provisions to the 
extent required by this part.
    (2) The recipient must ensure that the subrecipient properly spends, 
accounts for, and audits funds or property or services acquired in whole 
or in part with LSC funds received through the subgrant.
    (3) The recipient must repay LSC for any disallowed expenditures by 
a subrecipient. Repayment is required regardless of whether the 
recipient is able to recover such expenditures from the subrecipient.
    (f) Accounting and auditing requirements--(1) Subgrants of funds. 
(i) Any LSC funds paid by a recipient to a subrecipient through a 
subgrant are subject to the audit and financial requirements of the 
Audit Guide for Recipients and Auditors and the Accounting Guide for LSC 
Recipients. The relationship between the recipient and subrecipient will 
determine the proper method of financial reporting following generally 
accepted accounting principles.
    (ii) Subgranted funds may be separately disclosed and accounted for, 
and reported upon in the audited financial statements of a recipient; or 
such funds may be included in a separate audit report of the 
subrecipient. A subgrant agreement may provide for alternative means of 
assuring the propriety of subrecipient expenditures, especially in 
instances where an organization receives a small subgrant. Any request 
to use

[[Page 486]]

an alternative means of assuring propriety of subrecipient funds must be 
submitted to LSC for consideration as part of the subgrant approval 
process. If LSC approves a request to use an alternative means, the 
information provided thereby shall satisfy the recipient's annual audit 
requirement with regard to the subgrant funds.
    (2) In-kind subgrants. (i) The value of property or services funded 
in whole or in part with LSC funds provided by a recipient to a 
subrecipient through a subgrant is subject to the audit and financial 
requirements of the Audit Guide for Recipients and Auditors and the 
Accounting Guide for LSC Recipients. The relationship between the 
recipient and subrecipient will determine the proper method of financial 
reporting following generally accepted accounting principles.
    (ii) Subgrants involving in-kind exchanges of property or services 
may be separately disclosed and accounted for, and reported upon in the 
audited financial statements of a recipient. A subgrant agreement may 
provide for alternative means of assuring the propriety of subrecipient 
expenditures and use of property or services acquired in whole or in 
part with LSC funds, especially in instances where an organization 
receives a small subgrant. Any request to use an alternative means of 
assuring propriety of subrecipient funds must be submitted to LSC for 
consideration as part of the subgrant approval process. If LSC approves 
a request to use an alternative means, the information provided thereby 
shall satisfy the recipient's annual audit requirement with regard to 
the subgrant funds.
    (iii) If accounting for in-kind subgrants is not practicable, a 
recipient may convert the subgrant to a cash payment and follow the 
accounting procedures in paragraph (f)(1) of this section.
    (iv) Subrecipients described in Sec.  1627.5(d)(2) are not subject 
to the audit and financial requirements of the Audit Guide for 
Recipients and Auditors and the Accounting Guide for LSC Recipients. 
Such subrecipients must have financial management systems in place that 
would allow the recipient and LSC to determine that any resources the 
subrecipient receives or uses under the subgrant are used consistent 
with 45 CFR part 1610.
    (g) Oversight. To ensure subrecipient compliance with the LSC Act, 
LSC's appropriations statutes, Congressional restrictions having the 
force of law, and LSC's regulations, guidelines, and instructions, 
agreements between a recipient and a subrecipient must provide the same 
oversight rights for LSC with respect to subgrants as apply to 
recipients.



Sec.  1627.5  Applicability of restrictions, recordkeeping, 
and recipient priorities; private attorney involvement subgrants.

    (a) Applicability of restrictions. The prohibitions and requirements 
set forth in 45 CFR part 1610 apply both to the subgrant and to the 
subrecipient's non-LSC funds, except as modified by paragraphs (b), (c), 
and (d) of this section.
    (b) Priorities. Subrecipients must either:
    (1) Use the subgrant consistent with the recipient's priorities; or
    (2) Establish their own priorities for the use of the subgrant 
consistent with 45 CFR part 1620.
    (c) Recordkeeping. A recipient must be able to account for how its 
subrecipients spend LSC funds or use property or services funded in 
whole or in part with LSC funds. A subrecipient must provide to the 
recipient records as described in paragraphs (c)(1) and (2) of this 
section.
    (1) A subrecipient that handles matters as defined at 45 CFR 
1635.2(b) must maintain adequate records to demonstrate that its 
attorneys and paralegals used the LSC funds or property or services 
funded in whole or in part with LSC funds:
    (i) To carry out the activities described in the subgrant agreement; 
and
    (ii) Consistent with the restrictions set forth at 45 CFR part 1610.
    (2) A subrecipient that handles cases as defined at 45 CFR 
1635.2(a):
    (i) Must require its attorneys and paralegals to maintain records 
for each case that show the amount of time spent on the case and the 
activity conducted by date, and a unique client name or case number; and
    (ii) Either the subrecipient or the recipient must maintain records 
for each

[[Page 487]]

case that show the problem type and the closing code for the case.
    (iii) This requirement does not apply to subrecipients described in 
paragraph (d)(2)(ii) of this section.
    (3) A subrecipient who handles both cases and matters must maintain 
the types of records described in paragraphs (c)(1) and (2).
    (d) Subgrants for engaging private attorneys--(1) Subgrants of 
funds. The prohibitions and requirements set forth in 45 CFR part 1610 
apply only to the subgranted funds when the subrecipient is a bar 
association, pro bono program, private attorney or law firm, or other 
entity that receives a subgrant for the sole purpose of funding private 
attorney involvement activities (PAI) pursuant to 45 CFR part 1614.
    (2) In-kind subgrants. The prohibitions and requirements set forth 
in 45 CFR part 1610 apply only to the subgranted property or services 
acquired in whole or in part with LSC funds when the subrecipient is a 
bar association, pro bono program, private attorney or law firm, or 
other entity that receives a subgrant for the sole purpose of:
    (i) Conducting private attorney involvement activities (PAI) 
pursuant to 45 CFR part 1614; or
    (ii) Providing legal information or legal assistance on a pro bono 
or reduced fee basis to individuals who have been screened and found 
eligible to receive legal assistance from an LSC recipient.
    (3) Treatment of non-LSC funds. Any funds or property or services 
acquired in whole or in part with LSC funds and used by a recipient as 
payment for a PAI subgrant are deemed LSC funds for purposes of this 
paragraph (d).
    (4) Recordkeeping exception. The recordkeeping requirement in 
paragraph (c) of this section does not apply to private attorneys 
providing legal assistance on a pro bono or reduced fee basis.



Sec.  1627.6  Transfers to other recipients.

    (a) The requirements of this part apply to all subgrants from one 
recipient to another recipient.
    (b) The subrecipient must audit any funds or property or services 
acquired in whole or in part with LSC funds provided by the recipient 
under a subgrant in its annual audit and supply a copy of this audit to 
the recipient. The recipient must either submit the relevant part of 
this audit with its next annual audit or, if an audit has been recently 
submitted, submit it as an addendum to that recently submitted audit.
    (c) In addition to the provisions of Sec.  1627.4(c)(3), LSC may 
hold the recipient responsible for any disallowed expenditures of 
subgrant funds. Thus, LSC may recover all of the disallowed costs from 
either the recipient or the subrecipient or may divide the recovery 
between the two. LSC's total recovery may not exceed the amount of 
expenditures disallowed.



Sec.  1627.7  Recipient policies, procedures and recordkeeping.

    Each recipient must adopt written policies and procedures to guide 
its staff in complying with this part and must maintain records 
sufficient to document the recipient's compliance with this part.



PART 1628_RECIPIENT FUND BALANCES--Table of Contents



Sec.
1628.1 Purpose.
1628.2 Definitions.
1628.3 Policy.
1628.4 Procedures.
1628.5 Fund balance deficits.

    Authority: 42 U.S.C. 2996g(e).

    Source: 65 FR 66642, Nov. 7, 2000, unless otherwise noted.



Sec.  1628.1  Purpose

    The purpose of this part is to set out the Corporation's policies 
and procedures applicable to recipient fund balances. The Corporation's 
fund balance policies are intended to ensure the timely expenditure of 
LSC funds for the effective and economical provision of high quality 
legal assistance to eligible clients.



Sec.  1628.2  Definitions.

    (a) Excess fund balance means a recipient's LSC fund balance that 
exceeds the amount a recipient is permitted to retain under this part.
    (b) LSC support means the sum of:
    (1) The amount of financial assistance awarded by the Corporation to 
the recipient for the fiscal year included in

[[Page 488]]

the recipient's annual audited financial statement, not including one-
time and special purpose grants; and
    (2) Any LSC derivative income, as defined in Sec.  1630.2(c), earned 
by the recipient for the fiscal year included in the recipient's annual 
audited financial statement, not including derivative income from one-
time and special purpose grants.
    (c) The LSC fund balance is the excess of LSC support plus the prior 
year carryover amount over expenditures of LSC funds (including capital 
acquisitions), as each is reported in the recipient's annual financial 
statements.
    (d) The fund balance percentage is the amount of the LSC fund 
balance expressed as a percentage of the recipient's LSC support.
    (e) Recipient, as used in this part, means any grantee or contractor 
receiving financial assistance from the Corporation under section 
1006(a)(1)(A) of the LSC Act.



Sec.  1628.3  Policy.

    (a) Recipients are permitted to retain from one fiscal year to the 
next LSC fund balances up to 10% of their LSC support.
    (b) Recipients may request a waiver to retain a fund balance up to a 
maximum of 25% of their LSC support for special circumstances.
    (c) Recipients may request a waiver to retain a fund balance in 
excess of 25% of a recipient's LSC support only for extraordinary and 
compelling circumstances, such as when a natural disaster or other 
catastrophic event prevents the timely expenditure of LSC funds, or when 
the recipient receives an insurance reimbursement, the proceeds from the 
sale of real property, a payment from a lawsuit in which the recipient 
was a party, or a payment from an LSC-funded lawsuit, regardless of 
whether the recipient was a party to the lawsuit.
    (d) A waiver pursuant to paragraph (b) or (c) of this section may be 
granted at the discretion of the Corporation pursuant to the criteria 
set out in Sec.  1628.4(e).
    (e) In the absence of a waiver, a fund balance in excess of 10% of 
LSC support shall be repaid to the Corporation. If a waiver of the 10% 
ceiling is granted, any fund balance in excess of the amount permitted 
to be retained shall be repaid to the Corporation.
    (f) A recovery of an excess fund balance pursuant to this part does 
not constitute a termination under 45 CFR part 1606. See Sec.  
1606.2(c)(2)(ii).
    (g) One-time and special purpose grants awarded by the Corporation 
are not subject to the fund balance policy set forth in this part. 
Revenue and expenses relating to such grants shall be reflected 
separately in the audit report submitted to the Corporation. This may be 
done by establishing a separate fund or by providing a separate 
supplemental schedule of revenue and expenses related to such grants as 
a part of the audit report. No funds provided under a one-time or 
special purpose grant may be expended subsequent to the expiration date 
of the grant without the prior written approval of the Corporation. 
Absent approval from the Corporation, all unexpended funds under such 
grants shall be returned to the Corporation.

[65 FR 66642, Nov. 7, 2000, as amended at 80 FR 43968, July 24, 2015]



Sec.  1628.4  Procedures.

    (a) A recipient may request a waiver of the 10% ceiling on LSC fund 
balances within 30 days after the submission to LSC of its annual 
audited financial statements. The request shall specify:
    (1) The LSC fund balance as reported in the recipient's annual 
audited financial statements;
    (2) The reason(s) for the excess fund balance;
    (3) The recipient's plan for disposing of the excess fund balance 
during the current fiscal year;
    (4) The amount of fund balance projected to be carried forward at 
the close of the recipient's current fiscal year; and
    (5) The special circumstances justifying the retention of the excess 
fund balance up to 25%, or the extraordinary and compelling 
circumstances set out in Sec.  1628.3(c) justifying a fund balance in 
excess of 25%.
    (b) Within 45 days of receipt of the recipient's waiver request 
submitted pursuant to paragraph (a) of this section, the Corporation 
shall provide a written

[[Page 489]]

response to the request and a written notice to the recipient of any 
fund balance due and payable to the Corporation as well as the method 
for repayment.
    (c) In the event that repayment is required, the Corporation shall 
give written notice 30 days prior to the effective date for repayment. 
Repayment shall be in a lump sum or by pro rata deductions from the 
recipient's grant checks for a specific number of months. The 
Corporation shall determine which of the specified methods of repayment 
is reasonable and appropriate in each case after consultation with the 
recipient.
    (d) A recipient may submit a waiver request to retain a fund balance 
in excess of 25% of its LSC support prior to the submission of its 
audited financial statements. The Corporation may, at its discretion, 
provide approval in writing. The request shall specify the extraordinary 
and compelling circumstances justifying the fund balance in excess of 
25%; the estimated fund balance that the recipient anticipates it will 
accrue by the time of the submission of its audited financial 
statements; and the recipient's plan for disposing of the excess fund 
balance. Upon the submission of its annual audited financial statements, 
the recipient must submit updated information consistent with the 
requirements of paragraph (a) of this section to confirm the actual fund 
balance to be retained.
    (e) The Corporation's written approval of a request for a waiver 
shall require that the recipient use the funds it is permitted to retain 
within the time period set out in the approval and for the purposes 
approved by the Corporation.
    (f) Excess fund balances approved by the Corporation for expenditure 
by a recipient shall be separately reported by natural line item in the 
current fiscal year's audited financial statements. This may be done by 
establishing a separate fund or by providing a separate supplemental 
schedule as part of the audit report.
    (g) The recipient shall promptly inform and seek guidance from the 
Corporation when it determines a need for any changes to the conditions 
on timing or purposes set out in the Corporation's written approval of a 
recipient's request for a waiver.

[65 FR 66642, Nov. 7, 2000, as amended at 80 FR 43968, July 24, 2015]



Sec.  1628.5  Fund balance deficits.

    (a) Sound financial management practices such as those set out in 
Chapter 3 of the Corporation's Accounting Guide for LSC Recipients 
should preclude deficit spending. Use of current year LSC grant funds to 
liquidate deficit balances in the LSC fund from a preceding period 
requires the prior written approval of the Corporation.
    (b) Within 30 days of the submission of the recipient's annual 
audit, the recipient may apply to the Corporation for approval of the 
expenses associated with the liquidation of the deficit balance in the 
LSC fund.
    (c) In the absence of approval by the Corporation, expenditures of 
current year LSC grant funds to liquidate a deficit from a prior year 
shall be identified as questioned costs under 45 CFR part 1630.
    (d) The recipient's request must specify the same information 
relative to the deficit LSC fund balance as that set forth in Sec.  
1628.4(a)(1) and (2). Additionally, the recipient must develop and 
submit a plan approved by its governing body describing the measures 
which will be implemented to prevent a recurrence of a deficit balance 
in the LSC fund. The Corporation reserves the right to require changes 
in the submitted plan.
    (e) The decision of the Corporation regarding acceptance of these 
deficit-related costs shall be guided by the statutory mandate requiring 
the recipient to provide high quality legal services performed in an 
effective and economical manner. Special consideration will be given for 
emergencies, unusual occurrences, or other special circumstances giving 
rise to a deficit balance.



PART 1629_BONDING REQUIREMENTS FOR RECIPIENTS--Table of Contents



Sec.
1629.1 Purpose.
1629.2 Definitions.
1629.3 Who must be bonded?

[[Page 490]]

1629.4 What forms of bonds can recipients use?
1629.5 What losses must the bond cover?
1629.6 What is the required minimum level of coverage?
1629.7 Can LSC funds be used to cover bonding costs?

    Authority: 42 U.S.C. 2996e(1)(A) and 2996f(3).

    Source: 82 FR 37180, Aug. 9, 2017, unless otherwise noted.



Sec.  1629.1  Purpose.

    This part is intended to protect LSC funds by requiring that 
recipients be bonded or have similar insurance coverage to indemnify 
recipients against losses resulting from fraudulent or dishonest acts 
committed by one or more employees, officers, directors, agents, 
volunteers, and third-party contractors who handle LSC funds.



Sec.  1629.2  Definitions.

    Annualized funding level means the amount of:
    (1) Basic Field Grant funds (including Agricultural Worker and 
Native American) and (2) Special grants of LSC funds, including 
Technology Initiative Grants, Pro Bono Innovation Fund grants, and 
emergency relief grants, awarded by LSC to the recipient for the fiscal 
year included in the recipient's annual audited financial statements.



Sec.  1629.3  Who must be bonded?

    (a) A recipient must supply fidelity bond coverage for all 
employees, officers, directors, agents, and volunteers.
    (b) If a recipient uses a third party for payroll, billing, or 
collection services, the recipient must either supply coverage covering 
the third party or ensure that the third party has a fidelity bond or 
similar insurance coverage.
    (c) For recipients with subgrants:
    (1) The recipient must extend its fidelity bond coverage to supply 
identical coverage to the subrecipient and the subrecipient's directors, 
officers, employees, agents, and volunteers to the extent required to 
comply with this Part; or
    (2) The subrecipient must supply proof of its own fidelity bond 
coverage that meets the requirements of this Part for the subrecipient's 
directors, officers, employees, agents, and volunteers.



Sec.  1629.4  What forms of bonds can recipients use?

    (a) A recipient may use any form of bond, such as individual, name 
schedule, position schedule, blanket, or any combination of such forms 
of bonds, as long as the type or combination of bonds secured adequately 
protects LSC funds.
    (b) A recipient may use similar forms of insurance that essentially 
fulfill the same purpose as a fidelity bond.



Sec.  1629.5  What losses must the bond cover?

    The bond must provide recovery for loss caused by such acts as 
fraud, dishonesty, larceny, theft, embezzlement, forgery, 
misappropriation, wrongful abstraction, wrongful conversion, willful 
misapplication, or any other fraudulent or dishonest act committed by an 
employee, officer, director, agent, or volunteer.



Sec.  1629.6  What is the required minimum level of coverage?

    (a) A recipient must carry fidelity bond coverage or similar 
coverage at a minimum level of at least ten percent of its annualized 
funding level for the previous fiscal year.
    (b) If a recipient is a new recipient, the coverage must be at a 
minimum level of at least ten percent of the initial grant.
    (c) Notwithstanding paragraphs (a) and (b) of this section, 
recipients must not carry coverage under this part at a level less than 
$100,000.



Sec.  1629.7  Can LSC funds be used to cover bonding costs?

    Costs of bonding required by this part are allowable if expended 
consistent with 45 CFR part 1630. Costs of bonding such as rates, 
deductibles, single loss retention, and premiums, are allowable as an 
indirect cost if such bonding is in accordance with sound business 
practice and is reasonable.

[[Page 491]]



PART 1630_COST STANDARDS AND PROCEDURES--Table of Contents



                      Subpart A_General Provisions

Sec.
1630.1 Purpose.
1630.2 Definitions.
1630.3 Time.
1630.4 Burden of proof.

               Subpart B_Cost Standards and Prior Approval

1630.5 Standards governing allowability of costs under LSC grants or 
          contracts.
1630.6 Prior approval.
1630.7 Membership fees or dues.
1630.8 Contributions.
1630.9 Tax-sheltered annuities, retirement accounts, and penalties.
1630.10 Recipient policies, procedures, and recordkeeping.

                  Subpart C_Questioned Cost Proceedings

1630.11 Review of questioned costs.
1630.12 Appeals to the president.
1630.13 Recovery of disallowed costs and other corrective action.
1630.14 Other remedies; effect on other parts.
1630.15 Applicability to subgrants.
1630.16 Applicability to non-LSC funds.
1630.17 Applicability to derivative income.

                      Subpart D_Closeout Procedures

1630.18 Applicability.
1630.19 Closeout plan; timing.
1630.20 Closeout costs.
1630.21 Returning funds to LSC.

    Authority: 42 U.S.C. 2996g(e).

    Source: 82 FR 37337, Aug. 10, 2017, unless otherwise noted.



                      Subpart A_General Provisions



Sec.  1630.1  Purpose.

    This part is intended to provide uniform standards for allowability 
of costs and to provide a comprehensive, fair, timely, and flexible 
process for the resolution of questioned costs.



Sec.  1630.2  Definitions.

    As used in this part:
    (a) Corrective action means action taken by a recipient that:
    (1) Corrects identified deficiencies;
    (2) Produces recommended improvements; or
    (3) Demonstrates that audit or other findings are either invalid or 
do not warrant recipient action.
    (b) Derivative income means income earned by a recipient from LSC-
supported activities during the term of an LSC grant or contract, and 
includes, but is not limited to, income from fees for services 
(including attorney fee awards and reimbursed costs), sales and rentals 
of real or personal property, and interest earned on LSC grant or 
contract advances.
    (c) Disallowed cost means those charges to an LSC award that LSC 
determines to be unallowable, in accordance with the applicable 
statutes, regulations, or terms and conditions of the grant award.
    (d) Final written decision means either:
    (1) The decision issued by the Vice President for Grants Management 
after reviewing all information provided by a recipient in response to a 
notice of questioned costs; or
    (2) The notice of questioned costs if a recipient does not respond 
to the notice within 30 days of receipt.
    (e) Membership fees or dues means payments to an organization on 
behalf of a program or individual to be a member thereof, or to acquire 
voting or participatory rights therein. Membership fees or dues include, 
but are not limited to, fees or dues paid to a state supreme court or to 
a bar organization acting as an administrative arm of the court or in 
some other governmental capacity if such fees or dues are required for 
an attorney to practice law in that jurisdiction.
    (f) Questioned cost means a cost that LSC has questioned because of 
an audit or other finding that:
    (1) There may have been a violation of a provision of a law, 
regulation, contract, grant, or other agreement or document governing 
the use of LSC funds;
    (2) The cost is not supported by adequate documentation; or
    (3) The cost incurred appears unnecessary or unreasonable and does 
not reflect the actions a prudent person would take in the 
circumstances.
    (g) Real estate means land and buildings (including capital 
improvements), excluding moveable personal property.

[[Page 492]]

    (h) Single purchase, single lease, and single contract mean a single 
order or lease of goods or a single contract for services from a single 
vendor.



Sec.  1630.3  Time.

    (a) Computation. In computing any period of time under this part, 
the time period begins the day following the event and includes the last 
day of the period, unless the last day is a Saturday, Sunday, or legal 
holiday observed by the Federal government. In those cases, the time 
period includes the next business day. When the prescribed time period 
is seven days or less, intermediate Saturdays, Sundays, and legal 
holidays shall be excluded from the computation.
    (b) Extensions. A recipient may, within the applicable timeframe for 
a particular response under this part, submit a written request for an 
extension of time for good cause to LSC. LSC will respond to the request 
for extension within seven calendar days from the date of receiving the 
request. LSC may grant the request for extension and shall notify the 
recipient of its decision in writing.



Sec.  1630.4  Burden of proof.

    The recipient shall have the burden of proof under this part.



               Subpart B_Cost Standards and Prior Approval



Sec.  1630.5  Standards governing allowability of costs under LSC grants 
or contracts.

    (a) General criteria. Expenditures are allowable under an LSC grant 
or contract only if the recipient can demonstrate that the cost was:
    (1) Actually incurred in the performance of the grant or contract 
and the recipient was liable for payment;
    (2) Reasonable and necessary for the performance of the grant or 
contract as approved by LSC;
    (3) Allocable to the grant or contract;
    (4) In compliance with the Act, applicable appropriations law, LSC 
rules, regulations, guidelines, and instructions, the Accounting Guide 
for LSC Recipients, the terms and conditions of the grant or contract, 
and other applicable law;
    (5) Consistent with accounting policies and procedures that apply 
uniformly to both LSC-funded and non-LSC-funded activities;
    (6) Accorded consistent treatment over time;
    (7) Determined in accordance with generally accepted accounting 
principles; and
    (8) Adequately and contemporaneously documented in business records 
accessible during normal business hours to LSC management, the Office of 
Inspector General, the General Accounting Office, and independent 
auditors or other audit organizations authorized to conduct audits of 
recipients.
    (b) Reasonable costs. A cost is reasonable if, in its nature or 
amount, it does not exceed that which would be incurred by a prudent 
person under the same or similar circumstances prevailing at the time 
the decision was made to incur the cost. In determining the 
reasonableness of a given cost, consideration shall be given to:
    (1) Whether the cost is of a type generally recognized as ordinary 
and necessary for the operation of the recipient or the performance of 
the grant or contract;
    (2) The restraints or requirements imposed by such factors as 
generally accepted sound business practices, arms-length bargaining, 
Federal and State laws and regulations, and the terms and conditions of 
the grant or contract;
    (3) Whether the recipient acted with prudence under the 
circumstances, considering its responsibilities to its clients and 
employees, the public at large, the Corporation, and the Federal 
government; and
    (4) Significant deviations from the recipient's established 
practices, which may unjustifiably increase the grant or contract costs.
    (c) Allocable costs. (1) A cost is allocable to a particular cost 
objective, such as a grant, project, service, or other activity, in 
accordance with the relative benefits received. Costs may be allocated 
to LSC funds either as direct or indirect costs according to the 
provisions of this section.

[[Page 493]]

    (2) A cost is allocable to an LSC grant or contract if it is treated 
consistently with other costs incurred for the same purpose in like 
circumstances and if it:
    (i) Is incurred specifically for the grant or contract;
    (ii) Benefits both the grant or contract and other work and can be 
distributed in reasonable proportion to the benefits received; or
    (iii) Is necessary to the recipient's overall operation, although a 
direct relationship to any particular cost objective cannot be shown.
    (3) Recipients must maintain accounting systems sufficient to 
demonstrate the proper allocation of costs to each of their funding 
sources.
    (d) Direct costs. Direct costs are those that can be identified 
specifically with a particular grant award, project, service, or other 
direct activity of an organization. Costs identified specifically with 
grant awards are direct costs of the awards and are to be assigned 
directly thereto. Direct costs include, but are not limited to, the 
salaries and wages of recipient staff who are working on cases or 
matters that are identified with specific grants or contracts. Salary 
and wages charged directly to LSC grants and contracts must be supported 
by personnel activity reports.
    (e) Indirect costs. Indirect costs are those that have been incurred 
for common or joint objectives and cannot be readily identified with a 
particular final cost objective. A recipient may treat any direct cost 
of a minor amount as an indirect cost for reasons of practicality where 
the accounting treatment for such cost is consistently applied to all 
final cost objectives. Indirect costs include, but are not limited to, 
the costs of operating and maintaining facilities, and the costs of 
general program administration, such as the salaries and wages of 
program staff whose time is not directly attributable to a particular 
grant or contract. Such staff may include, but are not limited to, 
executive officers and personnel, accounting, secretarial and clerical 
staff.
    (f) Allocation of indirect costs. Where a recipient has only one 
major function, i.e., the delivery of legal services to low-income 
clients, allocation of indirect costs may be by a simplified allocation 
method, whereby total allowable indirect costs (net of applicable 
credits) are divided by an equitable distribution base and distributed 
to individual grant awards accordingly. The distribution base may be 
total direct costs, direct salaries and wages, attorney hours, numbers 
of cases, numbers of employees, or another base which results in an 
equitable distribution of indirect costs among funding sources.
    (g) Exception for certain indirect costs. Some funding sources may 
refuse to allow the allocation of certain indirect costs to an award. In 
such instances, a recipient may allocate a proportional share of another 
funding source's share of an indirect cost to LSC funds, provided that 
the activity associated with the indirect cost is permissible under the 
LSC Act, LSC appropriations statutes, and regulations.
    (h) Applicable credits. Applicable credits are those receipts or 
reductions of expenditures which operate to offset or reduce expense 
items that are allocable to grant awards as direct or indirect costs. 
Applicable credits include, but are not limited to, purchase discounts, 
rebates or allowances, recoveries or indemnities on losses, insurance 
refunds, and adjustments of overpayments or erroneous charges. To the 
extent that such credits relate to allowable costs, they shall be 
credited as a cost reduction or cash refund in the same fund to which 
the related costs are charged.
    (i) Fundraising. Costs associated with fundraising for the purpose 
of increasing recipient funds available to carry out the purposes of the 
LSC grant are allowable and allocable to the LSC grant if they meet the 
requirements of this section.
    (j) Guidance. The regulations of the Office of Management and Budget 
shall provide guidance for all allowable cost questions arising under 
this part when relevant policies or criteria therein are not 
inconsistent with the provisions of the Act, applicable appropriations 
law, this part, the Accounting Guide for LSC Recipients, LSC rules, 
regulations, guidelines, instructions, and other applicable law.

[[Page 494]]



Sec.  1630.6  Prior approval.

    (a) Advance understandings. Under any given grant award, the 
reasonableness and allocability of certain cost items may be difficult 
to determine. To avoid subsequent disallowance or dispute based on 
unreasonableness or nonallocability, a recipient may seek a written 
understanding from LSC in advance of incurring special or unusual costs. 
If a recipient elects not to seek an advance understanding from LSC, the 
absence of an advance understanding on any element of a cost will not 
affect the reasonableness or allocability of the cost.
    (b) Costs requiring prior approval. (1) Without LSC's prior written 
approval, a recipient may not expend $25,000 or more of LSC funds on any 
of the following:
    (i) A single purchase or single lease of personal property;
    (ii) A single contract for services;
    (iii) A single combined purchase or lease of personal property and 
contract for services; and
    (iv) Capital improvements.
    (2) Without LSC's prior written approval, a recipient may not expend 
LSC funds on a purchase of real estate.
    (3) For costs apportioned between LSC funds and one or more other 
funding sources, this requirement applies when the cost allocable to LSC 
funds is $25,000 or greater.
    (4) The process and substantive requirements for requests for prior 
approval are in 45 CFR part 1631--Purchasing and Property Management.
    (c) Duration. LSC's advance understanding or approval shall be valid 
for one year, or for a greater period of time which LSC may specify in 
its approval or advance understanding.

[82 FR 37337, Aug. 10, 2017; 82 FR 55053, Nov. 20, 2017]



Sec.  1630.7  Membership fees or dues.

    (a) LSC funds may not be used to pay membership fees or dues to any 
private or nonprofit organization, whether on behalf of the recipient or 
an individual.
    (b) Paragraph (a) of this section does not apply to the payment of 
membership fees or dues mandated by a governmental organization to 
engage in a profession, or to the payment of membership fees or dues 
from non-LSC funds.



Sec.  1630.8  Contributions.

    Any contributions or gifts of LSC funds to another organization or 
to an individual are prohibited.



Sec.  1630.9  Tax-sheltered annuities, retirement accounts, and penalties.

    No provision contained in this part shall be construed to affect any 
payment by a recipient on behalf of its employees for the purpose of 
contributing to or funding a tax-sheltered annuity, retirement account, 
or pension fund.



Sec.  1630.10  Recipient policies, procedures, and recordkeeping.

    Each recipient must adopt written policies and procedures to guide 
its staff in complying with this subpart and must maintain records 
sufficient to document the recipient's compliance with this subpart.



                  Subpart C_Questioned Cost Proceedings



Sec.  1630.11  Review of questioned costs.

    (a) LSC may identify questioned costs:
    (1) When the Office of Inspector General, the General Accounting 
Office, or an independent auditor or other audit organization authorized 
to conduct an audit of a recipient has identified and referred a 
questioned cost to LSC;
    (2) In the course of its oversight of recipients; or
    (3) As a result of complaints filed with LSC.
    (b) If LSC determines that there is a basis for disallowing a 
questioned cost, LSC must provide the recipient with written notice of 
its intent to disallow the cost. The notice of questioned costs must 
state the amount of the cost and the factual and legal basis for 
disallowing it.
    (c) If a questioned cost is disallowed solely because it is 
excessive, only the amount that is larger than reasonable shall be 
disallowed.
    (d)(1) Within 30 days of receiving the notice of questioned costs, 
the recipient may respond with written evidence and argument to show 
that the cost

[[Page 495]]

was allowable, or that LSC, for equitable, practical, or other reasons, 
should not recover all or part of the amount, or that the recovery 
should be made in installments.
    (2) The written notice shall become LSC's final written decision 
unless:
    (i) The recipient responds to LSC's written notice within 30 days;
    (ii) The recipient requests an extension of time pursuant to Sec.  
1630.3(b) within 30 days; or
    (iii) LSC grants an extension of time pursuant to Sec.  1630.3(b) 
within 30 days.
    (e) Within 60 days of receiving the recipient's written response to 
the notice of questioned costs, LSC management must issue a final 
written decision stating whether the cost has been disallowed and the 
reasons for the decision.
    (f) If LSC has determined that the questioned cost should be 
disallowed, the final written decision must:
    (1) State that the recipient may appeal the decision as provided in 
Sec.  1630.12 and describe the process for seeking an appeal;
    (2) Describe how it expects the recipient to repay the cost, 
including the method and schedule for collection of the amount of the 
cost;
    (3) State whether LSC is requiring the recipient to make financial 
adjustments or take other corrective action to prevent a recurrence of 
the circumstances giving rise to the disallowed cost.



Sec.  1630.12  Appeals to the president.

    (a)(1) If the amount of a disallowed cost exceeds $2,500, the 
recipient may appeal in writing to LSC's President within 30 days of 
receiving LSC's final written decision to disallow the cost. The 
recipient should state in detail the reasons why LSC should not disallow 
part or all of the questioned cost.
    (2) If the recipient did not respond to LSC's notice of questioned 
costs and the notice became LSC's final written decision pursuant to 
Sec.  1630.11(d)(2), the recipient may not appeal the final written 
decision.
    (b) If the President has had prior involvement in the consideration 
of the disallowed cost, the President shall designate another senior LSC 
employee who has not had prior involvement to review the recipient's 
appeal. In circumstances where the President has not had prior 
involvement in the disallowed cost proceeding, the President has 
discretion to designate another senior LSC employee who also has not had 
prior involvement in the proceeding to review the appeal.
    (c) Within 30 days of receiving the recipient's written appeal, the 
President or designee will adopt, modify, or reverse LSC's final written 
decision.
    (d) The decision of the President or designee shall be final and 
shall be based on the written record, consisting of LSC's notice of 
questioned costs, the recipient's response, LSC's final written 
decision, the recipient's written appeal, any additional response or 
analysis provided to the President or designee by LSC staff, and the 
relevant findings, if any, of the Office of Inspector General, General 
Accounting Office, or other authorized auditor or audit organization. 
Upon request, LSC shall provide the recipient with a copy of the written 
record.



Sec.  1630.13  Recovery of disallowed costs and other corrective action.

    (a) LSC will recover any disallowed costs from the recipient within 
the time limits and conditions set forth in either LSC's final written 
decision or the President's decision on an appeal. Recovery of the 
disallowed costs may be in the form of a reduction in the amount of 
future grant checks or in the form of direct payment from you to LSC.
    (b) LSC shall ensure that a recipient who has incurred a disallowed 
cost takes any additional necessary corrective action within the time 
limits and conditions set forth in LSC's final written decision or the 
President's decision.



Sec.  1630.14  Other remedies; effect on other parts.

    (a) In cases of serious financial mismanagement, fraud, or 
defalcation of funds, LSC shall refer the matter to the Office of 
Inspector General and may take appropriate action pursuant to parts 
1606, 1623, and 1640 of this chapter.
    (b) The recovery of a disallowed cost according to the procedures of 
this part

[[Page 496]]

does not constitute a permanent reduction in a recipient's annualized 
funding level, nor does it constitute a limited reduction of funding or 
termination of financial assistance under part 1606, or a suspension of 
funding under part 1623 of this chapter.



Sec.  1630.15  Applicability to subgrants.

    When disallowed costs arise from expenditures incurred under a 
subgrant of LSC funds, the recipient and the subrecipient will be 
jointly and severally responsible for the actions of the subrecipient, 
as provided by 45 CFR part 1627, and will be subject to all remedies 
available under this part. Both the recipient and the subrecipient shall 
have access to the review and appeal procedures of this part.



Sec.  1630.16  Applicability to non-LSC funds.

    (a) No cost may be charged to non-LSC funds in violation of 45 CFR 
1610.3 or 1610.4.
    (b) LSC may recover from a recipient's LSC funds an amount not to 
exceed the amount improperly charged to non-LSC funds. The review and 
appeal procedures of Sec. Sec.  1630.11 and 1630.12 govern any decision 
by LSC to recover funds under this paragraph.

[85 FR 63216, Oct. 7, 2020]



Sec.  1630.17  Applicability to derivative income.

    (a) Derivative income resulting from an activity supported in whole 
or in part with LSC funds shall be allocated to the fund in which the 
recipient's LSC grant is recorded in the same proportion that the amount 
of LSC funds expended bears to the total amount expended by the 
recipient to support the activity.
    (b) Derivative income allocated to the LSC fund in accordance with 
paragraph (a) of this section is subject to the requirements of this 
part.



                      Subpart D_Closeout Procedures



Sec.  1630.18  Applicability.

    This subpart applies when a recipient of LSC funds:
    (a) Ceases to exist as a legal entity, including merging or 
consolidating functions with another LSC recipient when the other 
recipient becomes the LSC recipient for the service area; or
    (b) Otherwise ceases to receive funds directly from LSC. This may 
include voluntary termination by the recipient or involuntary 
termination by LSC of the recipient's LSC grant, and may occur at the 
end of a grant term or during the grant term.



Sec.  1630.19  Closeout plan; timing.

    (a) A recipient must provide LSC with a plan for the orderly 
conclusion of the recipient's role and responsibilities. LSC will 
maintain a list of the required elements for the closeout plan on its 
Web site. LSC will provide recipients with a link to the list in the 
grant award documents.
    (b)(1) A recipient must notify LSC no less than 60 days prior to any 
of the above events, except for an involuntary termination of its LSC 
grant by LSC. The recipient must submit the closeout plan described in 
paragraph (a) of this section at the same time.
    (2) If LSC terminates a recipient's grant, the recipient must submit 
the closeout plan described in paragraph (a) of this section within 15 
days of being notified by LSC that it is terminating the recipient's 
grant.



Sec.  1630.20  Closeout costs.

    (a) The recipient must submit to LSC a detailed budget and timeline 
for all closeout procedures described in the closeout plan. LSC must 
approve the budget, either as presented or after negotiations with the 
recipient, before the recipient may proceed with implementing the 
budget, timeline, and plan.
    (b) LSC will withhold funds for all closeout expenditures, including 
costs for the closing audit, all staff and consultant services needed to 
perform closeout activities, and file storage and retention.
    (c) LSC will release any funding installments that the recipient has 
not received as of the date it notified LSC of a merger, change in 
status, or voluntary termination or that LSC notified the recipient of 
an involuntary termination of funding only upon the recipient's 
satisfactory completion of all closeout obligations.

[[Page 497]]



Sec.  1630.21  Returning funds to LSC.

    (a) Excess fund balance. If the recipient has an LSC fund balance 
after the termination of funding and closeout, the recipient must return 
the full amount of the fund balance to LSC at the time it submits the 
closing audit to LSC.
    (b) Derivative income. Any attorneys' fees claimed or collected and 
retained by the recipient after funding ceases that result from LSC-
funded work performed during the grant term are derivative income 
attributable to the LSC grant. Such derivative income must be returned 
to LSC within 15 days of the date on which the recipient receives the 
income.



PART 1631_PURCHASING AND PROPERTY MANAGEMENT--Table of Contents



                      Subpart A_General Provisions

Sec.
1631.1 Purpose.
1631.2 Definitions.
1631.3 Prior approval process.
1631.4 Use of funds.
1631.5 Recipient policies, procedures, and recordkeeping.

              Subpart B_Procurement Policies and Procedures

1631.6 Characteristics of procurements.
1631.7 Procurement policies and procedures.
1631.8 Requests for prior approval.
1631.9 Applicability of part 1630 of this chapter.

                 Subpart C_Personal Property Management

1631.10 Use of property in compliance with LSC's statutes and 
          regulations.
1631.11 Intellectual property.
1631.12 Disposing of personal property purchased with LSC funds.
1631.13 Use of derivative income from sale of personal property 
          purchased with LSC funds.

       Subpart D_Real Estate Acquisition and Capital Improvements

1631.14 Purchasing real estate with LSC funds.
1631.15 Capital improvements.

                    Subpart E_Real Estate Management

1631.16 Using real estate purchased with LSC funds.
1631.17 Maintenance.
1631.18 Insurance.
1631.19 Accounting and reporting to LSC.
1631.20 Disposing of real estate purchased with LSC funds.
1631.21 Retaining income from sale of real estate purchased with LSC 
          funds.

    Authority: 42 U.S.C. 2996g(e).

    Source: 82 FR 37341, Aug. 10, 2017, unless otherwise noted.



                      Subpart A_General Provisions



Sec.  1631.1  Purpose.

    The purpose of this part is to set standards for purchasing, 
leasing, using, and disposing of LSC-funded personal property and real 
estate and using LSC funds to contract for services.



Sec.  1631.2  Definitions.

    As used in this part:
    (a) Capital improvement means spending more than $25,000 of LSC 
funds to improve real estate through construction or the addition of 
fixtures that become an integral part of real estate.
    (b) LSC property interest agreement means a formal written agreement 
between the recipient and LSC establishing the terms of LSC's legal 
interest in real estate purchased with LSC funds.
    (c) Personal property means property other than real estate.
    (d) Purchase means buying personal property or real estate or 
contracting for services with LSC funds.
    (e) Quote means a quotation or bid from a potential source 
interested in selling or leasing property or providing services to a 
recipient.
    (f) Real estate means land and buildings (including capital 
improvements), excluding moveable personal property.
    (g)(1) Services means professional and consultant services rendered 
by persons who are members of a particular profession or possess a 
special skill and who are not officers or employees of an LSC recipient. 
Services includes, but is not limited to intangible products such as 
accounting, banking, cleaning, consultants, training, expert services, 
maintenance of equipment, and transportation.
    (2) Services does not include:

[[Page 498]]

    (i) Services provided by recipients to their employees as 
compensation in addition to regular salaries and wages, including but 
not limited to employee insurance, pensions, and unemployment benefit 
plans;
    (ii) Insurance, including malpractice insurance provided to staff 
attorneys and organizational insurance (e.g., directors and officers 
liability insurance, employment practices liability insurance, and 
commercial liability insurance);
    (iii) Annual audits required by section 509(a) of Public Law 104-
134;
    (iv) Services necessary to conduct litigation on behalf of clients 
(e.g., expert witnesses, discovery);
    (v) Contracts for services necessary to address a recipient's 
internal personnel issues, such as labor counsel, investigators, and 
mediators; and
    (vi) Contracts for employees, whether with the employee directly or 
with a placement agency.
    (h) Source means a seller, supplier, vendor, or contractor who has 
agreed:
    (1) To sell or lease property to the recipient through a purchase or 
lease agreement; or
    (2) To provide services to the recipient through a contract.



Sec.  1631.3  Prior approval process.

    (a) LSC shall grant prior approval of a cost listed in Sec.  
1630.6(b) of this chapter if the recipient has provided sufficient 
written information to demonstrate that the cost would be consistent 
with the standards and policies of this part. LSC may request additional 
information if necessary to make a decision on the recipient's request.
    (b)(1) For purchases or leases of personal property, contracts for 
services, and capital improvements, LSC will make a decision to approve 
or deny a request for prior approval within 30 days of receiving 
materials LSC deems sufficient to decide. LSC will inform a recipient 
within 20 days of receiving the initial prior approval request whether 
LSC needs additional information to make a decision.
    (2) For purchases of real estate, LSC will make a decision within 60 
days of receiving materials LSC deems sufficient to decide. LSC will 
inform a recipient within 20 days of receiving the initial prior 
approval request whether LSC needs additional information to make a 
decision.
    (3) If LSC cannot make a decision whether to approve the request 
within the allotted time, it will provide the requester with a date by 
which it expects to make a decision.
    (c) If LSC denies a request for prior approval, LSC shall provide 
the recipient with a written explanation of the grounds for denying the 
request.
    (d) Exigent circumstances. (1) A recipient may use more than $25,000 
of LSC funds to purchase personal property or award a contract for 
services without seeking LSC's prior approval if the purchase or 
contract is necessary;
    (i) To avoid imminent harm to the recipient's personnel, physical 
facilities, or systems;
    (ii) To remediate or mitigate damage to the recipient's personnel, 
physical facilities or systems;
    (iii) To avoid disruption to the recipient's client-service delivery 
system (e.g., an event that causes a recipient's telecommunications 
system to cease functioning); or
    (iv) To respond to a natural disaster (e.g., a flood washes out 
roads leading to the recipient's offices such that the recipient must 
contract for services that will enable it to contact its clients).
    (2) The recipient must provide LSC with a description of the exigent 
circumstances and the information described in Sec.  1631.8(b) within 30 
days after the circumstances necessitating the purchase or contract have 
ended.

[82 FR 37341, Aug. 10, 2017; 82 FR 55053, Nov. 20, 2017]



Sec.  1631.4  Use of funds.

    When LSC receives funds from a disposition of property under this 
section, LSC will use those funds to make emergency and other special 
grants to recipients. LSC generally will make such grants to the same 
service area as the returned funds originally supported.



Sec.  1631.5  Recipient policies, procedures, and recordkeeping.

    Each recipient shall adopt written policies and procedures to guide 
its

[[Page 499]]

staff in complying with this part and shall maintain records sufficient 
to document the recipient's compliance with this part.



              Subpart B_Procurement Policies and Procedures



Sec.  1631.6  Characteristics of procurements.

    (a) Characteristics indicative of a procurement relationship between 
a recipient and another entity are when the other entity:
    (1) Provides the goods and services within its normal business 
operations;
    (2) Provides similar goods or services to many different purchasers;
    (3) Normally operates in a competitive environment;
    (4) Provides goods or services that are ancillary to the operation 
of the LSC grant; and
    (5) Is not subject to LSC's compliance requirements as a result of 
the agreement, though similar requirements may apply for other reasons.
    (b) In determining whether an agreement between a recipient and 
another entity constitutes a contract under this part or a subgrant 
under part 1627 of this chapter, the substance of the relationship is 
more important than the form of the agreement. All the characteristics 
above may not be present in all cases, and a recipient must use judgment 
in classifying each agreement as a subgrant or a contract.



Sec.  1631.7  Procurement policies and procedures.

    Recipients must have written procurement policies and procedures. 
These policies must:
    (a) Identify competition thresholds that establish the basis (for 
example, price, risk level, or type of purchase) for the level of 
competition required at each threshold (for example, certification that 
a purchase reflects the best value to the recipient; a price comparison 
for alternatives that the recipient considered; or requests for 
information, quotes, or proposals);
    (b) Establish the grounds for non-competitive purchases;
    (c) Establish the level of documentation necessary to justify 
procurements. The level of documentation needed may be proportional to 
the nature of the purchase or tied to competition thresholds;
    (d) Establish internal controls that, at a minimum, provide for 
segregation of duties in the procurement process, identify which 
employees, officers, or directors who have authority to make purchases 
for the recipient, and identify procedures for approving purchases;
    (e) Establish procedures to ensure quality and cost control in 
purchasing, including procedures for selecting sources, fair and 
objective criteria for selecting sources; and
    (f) Establish procedures for identifying and preventing conflicts of 
interest in the purchasing process.



Sec.  1631.8  Requests for prior approval.

    (a) As required by 45 CFR 1630.6 and 1631.3, a recipient using more 
than $25,000 of LSC funds to purchase or lease personal property or 
contract for services must request and receive LSC's prior approval.
    (b) A request for prior approval must include:
    (1) A statement of need;
    (2) A copy of the recipient's procurement policy; and
    (3) Documentation showing that the recipient followed its 
procurement policies and procedures in soliciting, reviewing, and 
approving the purchase, lease, or contract for services.



Sec.  1631.9  Applicability of part 1630 of this chapter.

    All purchases and leases of personal property and contracts for 
services made with LSC funds must comply with the provisions of 45 CFR 
part 1630 (Cost Standards and Procedures).



                 Subpart C_Personal Property Management



Sec.  1631.10  Use of property in compliance with LSC's statutes 
and regulations.

    (a) A recipient may use personal property purchased or leased, in 
whole or in part, with LSC funds primarily to deliver legal services to 
eligible clients under the requirements of the LSC Act, applicable 
appropriations acts, and LSC regulations.

[[Page 500]]

    (b) A recipient may use personal property purchased or leased, in 
whole or in part, with LSC funds for the performance of an LSC grant or 
contract for other activities, if such other activities do not interfere 
with the performance of the LSC grant or contract.
    (c) If a recipient uses personal property purchased or leased, in 
whole or in part, with LSC funds to provide services to an organization 
that engages in activity restricted by the LSC Act, LSC regulations, or 
other applicable law, the recipient must charge the organization a fee 
no less than that which private nonprofit organizations in the same area 
charge for the same services under similar conditions.



Sec.  1631.11  Intellectual property.

    (a) A recipient owns all products, technologies, and software 
developed or improved using LSC funds, subject to any agreement the 
recipient may have with a third-party vendor. LSC retains a royalty-
free, nonexclusive, and irrevocable license to use, reproduce, 
distribute, publish, and prepare derivative works of any LSC-funded 
products, technologies, and software, including making them available to 
other LSC grantees or the broader access to justice community and 
partners.
    (b) A recipient must have a written contract with vendors who 
develop or improve LSC-funded products, technologies, and software. The 
contract must include a provision disclosing LSC's royalty-free, 
nonexclusive, and irrevocable license and prohibiting third-party 
vendors from denying its existence, challenging its legality, or 
interfering with LSC's full exercise of it.



Sec.  1631.12  Disposing of personal property purchased with LSC funds.

    (a) Disposal by LSC recipients. During the term of an LSC grant or 
contract, a recipient may dispose of personal property purchased with 
LSC funds by:
    (1) Trading in the personal property when it acquires replacement 
property;
    (2) Selling or otherwise disposing of the personal property with no 
further obligation to LSC when the fair market value of the personal 
property is negligible;
    (3) Where the current fair market value of the personal property is 
$15,000 or less, selling the property at a reasonable negotiated price, 
without advertising;
    (4) Where the current fair market value of the personal property 
exceeds $15,000, advertising the property for 14 days and selling the 
property after receiving reasonable offers. If the recipient receives no 
reasonable offers after advertising the property for 14 days, it may 
sell the property at a reasonable negotiated price;
    (5) Transferring the property to another recipient of LSC funds; or
    (6) With the approval of LSC, transferring the personal property to 
another nonprofit organization serving the poor in the same service 
area.
    (b) Disposal when no longer a recipient. When a recipient stops 
receiving LSC funds, it must obtain LSC's approval to dispose of 
personal property purchased with LSC funds in one of the following ways:
    (1) Transferring the property to another recipient of LSC funds, in 
which case the former recipient will be entitled to compensation in the 
amount of the percentage of the property's current fair market value 
that is equal to the percentage of the property's purchase cost borne by 
non-LSC funds;
    (2) Transferring the property to another nonprofit organization 
serving the poor in the same service area, in which case LSC will be 
entitled to compensation from the recipient for the percentage of the 
property's current fair market value that is equal to the percentage of 
the property's purchase cost borne by LSC funds;
    (3) Selling the property and retaining the proceeds from the sale 
after compensating LSC for the percentage of the property's current fair 
market value that is equal to the percentage of the property's purchase 
cost borne by LSC funds; or
    (4) Retaining the property, in which case LSC will be entitled to 
compensation from the recipient for the percentage of the property's 
current fair market value that is equal to that percentage of the 
property's purchase cost borne by LSC funds.
    (c) Disposal upon merger with or succession by another LSC 
recipient. When a

[[Page 501]]

recipient stops receiving LSC funds because it merged with or is 
succeeded by another grantee, the recipient may transfer the property to 
the new recipient, if the two entities execute an LSC-approved successor 
in interest agreement that requires the new recipient to use the 
property primarily to provide legal services to eligible clients under 
the requirements of the LSC Act, applicable appropriations acts, and LSC 
regulations.
    (d) Prohibition. A recipient may not dispose of personal property by 
sale, donation, or other transfer of the property to its board members 
or employees.



Sec.  1631.13  Use of derivative income from sale of personal property 
purchased with LSC funds.

    (a) During the term of an LSC grant or contract, a recipient may 
retain and use income from any sale of personal property purchased with 
LSC funds according to 45 CFR 1630.17 (Cost Standards and Procedures: 
Applicability to derivative income) and 45 CFR 1628.3 (Recipient Fund 
Balances: Policy).
    (b) The recipient must account for income earned from the sale, 
rent, or lease of personal property purchased with LSC funds according 
to the requirements of 45 CFR 1630.17.



       Subpart D_Real Estate Acquisition and Capital Improvements



Sec.  1631.14  Purchasing real estate with LSC funds.

    (a) Pre-purchase planning requirements. (1) Before purchasing real 
estate with LSC funds, a recipient must conduct an informal market 
survey and evaluate at least three potential equivalent properties.
    (2) When a recipient evaluates potential properties, it must 
consider:
    (i) The average annual cost of the purchase, including the costs of 
a down payment, interest and principal payments on a mortgage financing 
the purchase; closing costs; renovation costs; and the costs of 
utilities, maintenance, and taxes, if any;
    (ii) The estimated total costs of buying and using the property 
throughout the mortgage term compared to the estimated total costs of 
leasing and using a similar property over the same period of time;
    (iii) The property's quality; and
    (iv) Whether the property is conducive to delivering legal services 
(e.g. property is accessible to the client population (ADA compliant) 
and near public transportation, courts, and other government or social 
services agencies).
    (3) If a recipient cannot evaluate three potential properties, it 
must be able to explain why such evaluation was not possible.
    (b) Prior approval. Before a recipient may purchase real estate with 
LSC funds, LSC must approve the purchase as required by 45 CFR 1630.6 
and 1631.3. The request for approval must be in writing and include:
    (1) A statement of need, including:
    (i) The information obtained and considered in paragraph (a) of this 
section;
    (ii) Trends in funding and program staffing levels in relation to 
space needs;
    (iii) Why the recipient needs to purchase real estate; and
    (iv) Why purchasing real estate is reasonable and necessary to 
performing the LSC grant.
    (2) A brief analysis comparing:
    (i) The estimated average annual cost of the purchase including the 
costs of a down payment, interest and principal payments on a mortgage 
financing the purchase; closing costs; renovation costs; and the costs 
of utilities, maintenance, and taxes, if any; and
    (ii) The estimated average annual cost of leasing or purchasing 
similar property over the same period of time;
    (3) Anticipated financing of the purchase, including:
    (i) The estimated total acquisition costs, including capital 
improvements, taxes, recordation fees, maintenance costs, insurance 
costs, and closing costs;
    (ii) The anticipated breakdown of LSC funds and non-LSC funds to be 
applied toward the total costs of the purchase;
    (iii) The monthly amount of principal and interest payments on debt 
secured to finance the purchase, if any;
    (4) A current, independent appraisal sufficient to secure a 
mortgage;

[[Page 502]]

    (5) A comparison of available loan terms considered by the recipient 
before selecting the chosen financing method;
    (6) Board approval of the purchase in either a board resolution or 
board minutes, including Board approvals that are contingent on LSC's 
approval;
    (7) Whether the property will replace or supplement existing program 
offices;
    (8) A statement that the property
    (i) Currently complies with the Americans with Disabilities Act 
(ADA) or applicable state law, whichever is stricter, and 45 CFR 1624.5; 
or
    (ii) Will comply with the ADA, any applicable state law, and 45 CFR 
1624.5 upon completion of any necessary capital improvements. Such 
improvements must be completed within 60 days of the date of purchase; 
and
    (9) A copy of a purchase agreement, contract, or other document 
containing a description of the property and the terms of the purchase.
    (c) Property interest agreement. Once LSC approves the purchase, the 
recipient must enter a written property interest agreement with LSC. The 
agreement must include:
    (1) The recipient's agreement to use the property consistent with 
Sec.  1631.15;
    (2) The recipient's agreement to record, under appropriate state 
law, LSC's interest in the property;
    (3) The recipient's agreement not to encumber the property without 
prior LSC approval; and
    (4) The recipient's agreement not to dispose of the property without 
prior LSC approval.



Sec.  1631.15  Capital improvements.

    (a) As required by 45 CFR 1630.6 and 1631.3, a recipient must obtain 
LSC's prior written approval before using more than $25,000 LSC funds to 
make capital improvements to real estate.
    (b) The written request must include:
    (1) A statement of need;
    (2) A brief description of the nature of the work to be done, the 
name of the sources performing the work, and the total expected cost of 
the improvement; and
    (3) Documentation showing that the recipient followed its 
procurement policies and procedures in competing, selecting, and 
awarding contracts to perform the work.
    (c) A recipient must maintain supporting documentation to accurately 
identify and account for any use of LSC funds to make capital 
improvements to real estate owned by the recipient.



                    Subpart E_Real Estate Management



Sec.  1631.16  Using real estate purchased with LSC funds.

    (a) Recipients must use real estate purchased or leased in whole or 
in part with LSC funds to deliver legal assistance to eligible clients 
consistent with the requirements of the LSC Act, applicable 
appropriations acts, other applicable Federal law, and LSC's 
regulations. If a recipient does not need to use some or all such real 
estate to deliver legal assistance to eligible clients, it may use the 
space for other activities as described in paragraphs (b) and (c) of 
this section.
    (b) A recipient may use real estate purchased or leased, in whole or 
part, with LSC funds for the performance of an LSC grant or contract for 
other activities, if they do not interfere with the performance of the 
LSC grant or contract.
    (c) If a recipient uses real estate purchased or leased, in whole or 
part, with LSC funds to provide space to an organization that engages in 
activity restricted by the LSC Act, applicable appropriations acts, LSC 
regulations, or other applicable law, the recipient must charge the 
organization rent no less than that which private nonprofit 
organizations in the same area charge for the same amount of space under 
similar conditions.



Sec.  1631.17  Maintenance.

    A recipient must maintain real estate acquired with LSC funds:
    (a) In an efficient operating condition; and
    (b) In compliance with state and local government property standards 
and building codes.



Sec.  1631.18  Insurance.

    At the time of purchase, a recipient must obtain insurance coverage 
for

[[Page 503]]

real estate purchased with LSC funds which is not lower in value than 
coverage it has obtained for other real estate it owns and which 
provides at least the following coverage:
    (a) Title insurance that:
    (1) Insures the fee interest in the property for an amount not less 
than the full appraised value as approved by LSC, or the amount of the 
purchase price, whichever is greater; and
    (2) Contains an endorsement identifying LSC as a loss payee to be 
reimbursed if the title fails.
    (3) If no endorsement naming LSC as loss payee is made, the 
recipient must pay LSC the title insurance proceeds it receives in the 
event of a failure.
    (b) A physical destruction insurance policy, including flood 
insurance where appropriate, which insures the full replacement value of 
the facility from risk of partial and total physical destructions. The 
recipient must maintain this policy for the period of time that the 
recipient owns the real estate.



Sec.  1631.19  Accounting and reporting to LSC.

    A recipient must maintain an accounting of the amount of LSC funds 
relating to the purchase or maintenance of real estate purchased with 
LSC funds. The accounting must include the amount of LSC funds used to 
pay for acquisition costs, financing, and capital improvements. The 
recipient must provide the accounting for each year to LSC no later than 
April 30 of the following year or in its annual audited financial 
statements submitted to LSC.



Sec.  1631.20  Disposing of real estate purchased with LSC funds.

    (a) Disposal by LSC recipients. During the term of an LSC grant or 
contract, a recipient must seek LSC's prior written approval to dispose 
of real estate purchased with LSC funds by:
    (1) Selling the property after having advertised for and received 
offers; or
    (2) Transferring the property to another recipient of LSC funds, in 
which case the recipient may be compensated by the recipient receiving 
the property for the percentage of the property's current fair market 
value that is equal to the percentage of the costs of the original 
acquisition and costs of any capital improvements borne by non-LSC 
funds.
    (b) Disposal after a recipient no longer receives LSC funding. When 
a recipient who owns real estate purchased with LSC funds stops 
receiving LSC funds, it must seek LSC's prior written approval to 
dispose of the property in one of the following ways:
    (1) Transfer the property title to another grantee of LSC funds, in 
which case the recipient may be compensated the percentage of the 
property's current fair market value that is equal to the percentage of 
the costs of the original acquisition and costs of any capital 
improvements by non-LSC funds;
    (2) Buyout LSC's interest in the property (i.e., pay LSC the 
percentage of the property's current fair market value proportional to 
its percent interest in the property); or
    (3) Sell the property to a third party and pay LSC a share of the 
sale proceeds proportional to its interest in the property, after 
deducting actual and reasonable closing costs, if any.
    (4) When a recipient stops receiving LSC funds because it merged 
with or is succeeded by another recipient, it may transfer the property 
to the new recipient. The two entities must execute an LSC-approved 
successor in interest agreement that requires the transferee to use the 
property primarily to provide legal services to eligible clients under 
the requirements of the LSC Act, applicable appropriations acts, and LSC 
regulations.
    (c) Prior approval process. No later than 60 days before a recipient 
or former recipient proposes to dispose of real estate purchased with 
LSC funds, the recipient or former recipients must submit a written 
request for prior approval to dispose of the property to LSC. The 
request must include:
    (1) The proposed method of disposition and an explanation of why the 
proposed method is in the best interests of LSC and the recipient;
    (2) Documentation showing the fair market value of the property at 
the time of transfer or sale, including, but not limited to, an 
independent appraisal of the property and competing bona fide offers to 
purchase the property;

[[Page 504]]

    (3) A description of the recipient's process for advertising the 
property for sale and receiving offers;
    (4) An accounting of all LSC funds used in the acquisition and any 
capital improvements of the property. The accounting must include the 
amount of LSC funds used to pay for acquisition costs, financing, and 
capital improvements; and
    (5) Information on the proposed transferee or buyer of the property 
and a document evidencing the terms of transfer or sale.



Sec.  1631.21  Retaining income from sale of real estate purchased with LSC funds.

    (a) During the term of an LSC grant or contract, a recipient may 
retain and use income from any sale of real estate purchased with LSC 
funds according to 45 CFR 1630.17 (Cost Standards and Procedures: 
Applicability to derivative income.) and 45 CFR 1628.3 (Recipient Fund 
Balances: Policy.).
    (b) The recipient must account for income earned from the sale, 
rent, or lease of real or personal property purchased with LSC funds 
according to the requirements of 45 CFR 1630.17.



PART 1632_REDISTRICTING--Table of Contents



Sec.
1632.1 Purpose.
1632.2 Definitions.
1632.3 Prohibition.
1632.4 Recipient policies.

    Authority: 42 U.S.C. 2996e(b)(1)(A); 2996f(a)(2)(C); 2996f(a)(3); 
2996(g)(e); 110 Stat. 3009; 110 Stat. 1321(1996).

    Source: 61 FR 63756, Dec. 2, 1996, unless otherwise noted.



Sec.  1632.1  Purpose.

    This part is intended to ensure that recipients do not engage in 
redistricting activities.



Sec.  1632.2  Definitions.

    (a) Advocating or opposing any plan means any effort, whether by 
request or otherwise, even if of a neutral nature, to revise a 
legislative, judicial, or elective district at any level of government.
    (b) Recipient means any grantee or contractor receiving funds made 
available by the Corporation under sections 1006(a)(1) or 1006(a)(3) of 
the LSC Act. For the purposes of this part, recipient includes 
subrecipient and employees of recipients and subrecipients.
    (c) Redistricting means any effort, directly or indirectly, that is 
intended to or would have the effect of altering, revising, or 
reapportioning a legislative, judicial, or elective district at any 
level of government, including influencing the timing or manner of the 
taking of a census.



Sec.  1632.3  Prohibition.

    (a) Neither the Corporation nor any recipient shall make available 
any funds, personnel, or equipment for use in advocating or opposing any 
plan or proposal, or representing any party, or participating in any 
other way in litigation, related to redistricting.
    (b) This part does not prohibit any litigation brought by a 
recipient under the Voting Rights Act of 1965, as amended, 42 U.S.C. 
1971 et seq., provided such litigation does not involve redistricting.



Sec.  1632.4  Recipient policies.

    Each recipient shall adopt written policies to implement the 
requirements of this part.



PART 1633_RESTRICTION ON REPRESENTATION IN CERTAIN EVICTION PROCEEDINGS--
Table of Contents



Sec.
1633.1 Purpose.
1633.2 Definitions.
1633.3 Prohibition.
1633.4 Recipient policies, procedures and recordkeeping.

    Authority: 42 U.S.C. 2996e(a), 2996e(b)(1)(A), 2996f(a)(2)(C), 
2996f(a)(3), 2996g(e); 110 Stat. 3009; 110 Stat. 1321 (1996).

    Source: 61 FR 63758, Dec. 2, 1996, unless otherwise noted.



Sec.  1633.1  Purpose.

    This part is designed to ensure that in certain public housing 
eviction proceedings recipients refrain from defending persons charged 
with or convicted of illegal drug activities.

[[Page 505]]



Sec.  1633.2  Definitions.

    (a) Controlled substance has the meaning given that term in section 
102 of the Controlled Substances Act (21 U.S.C. 802);
    (b) Public housing project and public housing agency have the 
meanings given those terms in section 3 of the United States Housing Act 
of 1937 (42 U.S.C. 1437a);
    (c) Charged with means that a person is subject to a pending 
criminal proceeding instituted by a governmental entity with authority 
to initiate such proceeding against that person for engaging in illegal 
drug activity.



Sec.  1633.3  Prohibition.

    Recipients are prohibited from defending any person in a proceeding 
to evict that person from a public housing project if:
    (a) The person has been charged with or has been convicted of the 
illegal sale, distribution, or manufacture of a controlled substance, or 
possession of a controlled substance with the intent to sell or 
distribute; and
    (b) The eviction proceeding is brought by a public housing agency on 
the basis that the illegal drug activity for which the person has been 
charged or for which the person has been convicted threatens the health 
or safety of other tenants residing in the public housing project or 
employees of the public housing agency.



Sec.  1633.4  Recipient policies, procedures and recordkeeping.

    Each recipient shall adopt written policies and procedures to guide 
its staff in complying with this part and shall maintain records 
sufficient to document the recipient's compliance with this part.



PART 1634_COMPETITIVE BIDDING FOR GRANTS AND CONTRACTS--Table of Contents



Sec.
1634.1 Purpose.
1634.2 Definitions.
1634.3 Competition for grants and contracts.
1634.4 Announcement of competition.
1634.5 Identification of qualified applicants for grants and contracts.
1634.6 Notice of intent to compete.
1634.7 Application process.
1634.8 Selection process.
1634.9 Selection criteria.
1634.10 Transition provisions.
1634.11 Replacement of recipient that does not complete grant term.
1634.12 Emergency procedures and waivers.

    Authority: 42 U.S.C. 2996e(a)(1)(A); 2996f(a)(3).

    Source: 61 FR 14258, Apr. 1, 1996, unless otherwise noted.



Sec.  1634.1  Purpose.

    This part is designed to improve the delivery of legal assistance to 
eligible clients through the use of a competitive system to award grants 
and contracts for the delivery of legal services. The purposes of such a 
competitive system are to:
    (a) Encourage the effective and economical delivery of high quality 
legal services to eligible clients that is consistent with the 
Corporation's Performance Criteria and the American Bar Association's 
Standards for Providers of Civil Legal Services to the Poor through an 
integrated system of legal services providers;
    (b) Provide opportunities for qualified attorneys and entities to 
compete for grants and contracts to deliver high quality legal services 
to eligible clients;
    (c) Encourage ongoing improvement of performance by recipients in 
providing high quality legal services to eligible clients;
    (d) Preserve local control over resource allocation and program 
priorities; and
    (e) Minimize disruptions in the delivery of legal services to 
eligible clients within a service area during a transition to a new 
provider.



Sec.  1634.2  Definitions.

    (a) Qualified applicants are those persons, groups or entities 
described in section 1634.5(a) of this part who are eligible to submit 
notices of intent to compete and applications to participate in a 
competitive bidding process as described in this part.
    (b) Review panel means a group of individuals who are not 
Corporation staff but who are engaged by the Corporation to review 
applications and make recommendations regarding awards of grants or 
contracts for the delivery of

[[Page 506]]

legal assistance to eligible clients. A majority of review panel members 
shall be lawyers who are supportive of the purposes of the LSC Act and 
experienced in and knowledgeable about the delivery of legal assistance 
to low-income persons, and eligible clients or representatives of low-
income community groups. The remaining members of the review panel shall 
be persons who are supportive of the purposes of the LSC Act and have an 
interest in and knowledge of the delivery of quality legal services to 
the poor. No person may serve on a review panel for an applicant with 
whom the person has a financial interest or ethical conflict; nor may 
the person have been a board member of or employed by that applicant in 
the past five years.
    (c) Service area is the area defined by the Corporation to be served 
by grants or contracts to be awarded on the basis of a competitive 
bidding process. A service area is defined geographically and may 
consist of all or part of the area served by a current recipient, or it 
may include an area larger than the area served by a current recipient.
    (d) Subpopulation of eligible clients includes Native Americans and 
migrant farm workers and may include other groups of eligible clients 
that, because they have special legal problems or face special 
difficulties of access to legal services, might better be addressed by a 
separate delivery system to serve that client group effectively.



Sec.  1634.3  Competition for grants and contracts.

    (a) After the effective date of this part, all grants and contracts 
for legal assistance awarded by the Corporation under Section 
1006(a)(1)(A) of the LSC Act shall be subject to the competitive bidding 
process described in this part. No grant or contract for the delivery of 
legal assistance shall be awarded by the Corporation for any period 
after the effective date of this part, unless the recipient of that 
grant has been selected on the basis of the competitive bidding process 
described in this part.
    (b) The Corporation shall determine the service areas to be covered 
by grants or contracts and shall determine whether the population to be 
served will consist of all eligible clients within the service area or a 
specific subpopulation of eligible clients within one or more service 
areas.
    (c) The use of the competitive bidding process to award grant(s) or 
contract(s) shall not constitute a termination or denial of refunding of 
financial assistance to a current recipient pursuant to parts 1606 and 
1625 of this chapter.
    (d) Wherever possible, the Corporation shall award no more than one 
grant or contract to provide legal assistance to eligible clients or a 
subpopulation of eligible clients within a service area. The Corporation 
may award more than one grant or contract to provide legal assistance to 
eligible clients or a subpopulation of eligible clients within a service 
area only when the Corporation determines that it is necessary to award 
more than one such grant or contract in order to ensure that all 
eligible clients within the service area will have access to a full 
range of high quality legal services in accordance with the LSC Act or 
other applicable law.
    (e) In no event may the Corporation award a grant or contract for a 
term longer than five years. The amount of funding provided annually 
under each such grant or contract is subject to changes in congressional 
appropriations or restrictions on the use of those funds by the 
Corporation. A reduction in a recipient's annual funding required as a 
result of a change in the law or a reduction in funding appropriated to 
the Corporation shall not be considered a termination or denial of 
refunding under parts 1606 or 1625 of this chapter.



Sec.  1634.4  Announcement of competition.

    (a) The Corporation shall give public notice that it intends to 
award a grant or contract for a service area on the basis of a 
competitive bidding process, shall take appropriate steps to announce 
the availability of such a grant or contract in the periodicals of State 
and local bar associations, and shall publish a notice of the Request 
For Proposals (RFP) in at least one daily newspaper of general 
circulation in the area to be served under the grant or contract. In 
addition, the Corporation shall notify current recipients, other bar 
associations, and other interested

[[Page 507]]

groups within the service area of the availability of the grant or 
contract and shall conduct such other outreach as the Corporation 
determines to be appropriate to ensure that interested parties are given 
an opportunity to participate in the competitive bidding process.
    (b) The Corporation shall issue an RFP which shall include 
information regarding: who may apply, application procedures, the 
selection process, selection criteria, the service areas that will be 
the subject of the competitive bidding process, the amount of funding 
available for the service area, if known, applicable timetables and 
deadlines, and the LSC Act, regulations, guidelines and instructions and 
any other applicable federal law. The RFP may also include any other 
information that the Corporation determines to be appropriate.
    (c) The Corporation shall make a copy of the RFP available to any 
person, group or entity that requests a copy in accordance with 
procedures established by the Corporation.



Sec.  1634.5  Identification of qualified applicants for grants and contracts.

    (a) The following persons, groups and entities are qualified 
applicants who may submit a notice of intent to compete and an 
application to participate in the competitive bidding process:
    (1) Current recipients;
    (2) Other non-profit organizations that have as a purpose the 
furnishing of legal assistance to eligible clients;
    (3) Private attorneys, groups of attorneys or law firms (except that 
no private law firm that expends 50 percent or more of its resources and 
time litigating issues in the broad interests of a majority of the 
public may be awarded a grant or contract under the LSC Act);
    (4) State or local governments;
    (5) Substate regional planning and coordination agencies which are 
composed of substate areas and whose governing boards are controlled by 
locally elected officials.
    (b) All persons, groups and entities listed in paragraph (a) of this 
section must have a governing or policy body consistent with the 
requirements of part 1607 of this chapter or other law that sets out 
requirements for recipients' governing bodies, unless such governing 
body requirements are inconsistent with applicable law.
    (c) Applications may be submitted jointly by more than one qualified 
applicant so long as the application delineates the respective roles and 
responsibilities of each qualified applicant.



Sec.  1634.6  Notice of intent to compete.

    (a) In order to participate in the competitive bidding process, an 
applicant must submit a notice of intent to compete on or before the 
date designated by the Corporation in the RFP. The Corporation may 
extend the date if necessary to take account of special circumstances or 
to permit the Corporation to solicit additional notices of intent to 
compete.
    (b) At the time of the filing of the notice of intent to compete, 
each applicant must provide the Corporation with the following 
information as well as any additional information that the Corporation 
determines is appropriate:
    (1) Names and resumes of principals and key staff;
    (2) Names and resumes of current and proposed governing board or 
policy body members and their appointing organizations;
    (3) Initial description of area proposed to be served by the 
applicant and the services to be provided.



Sec.  1634.7  Application process.

    (a) The Corporation shall set a date for receipt of applications and 
shall announce the date in the RFP. The date shall afford applicants 
adequate opportunity, after filing the notice of intent to compete, to 
complete the application process. The Corporation may extend the 
application date if necessary to take account of special circumstances.
    (b) The application shall be submitted in a form to be determined by 
the Corporation.
    (c) A completed application shall include all of the information 
requested by the RFP. It may also include any additional information 
needed to fully address the selection criteria, and any other 
information requested by the Corporation. Incomplete applications

[[Page 508]]

will not be considered for awards by the Corporation.
    (d) The Corporation shall establish a procedure to provide 
notification to applicants of receipt of the application.



Sec.  1634.8  Selection process.

    (a) After receipt of all applications for a particular service area, 
Corporation staff shall:
    (1) Review each application and any additional information that the 
Corporation has regarding each applicant, including for any applicant 
that is or includes a current or former recipient, past monitoring and 
compliance reports, performance evaluations and other pertinent records 
for the past six years;
    (2) Request from an applicant and review any additional information 
that the Corporation determines is appropriate to evaluate the 
application fully;
    (3) Conduct one or more on-site visits to an applicant if the 
Corporation determines that such visits are appropriate to evaluate the 
application fully;
    (4) Summarize in writing information regarding the applicant that is 
not contained in the application if appropriate for the review process; 
and
    (5) Convene a review panel unless there is only one applicant for a 
particular service area and the Corporation determines that use of a 
review panel is not appropriate. The review panel shall:
    (i) Review the applications and the summaries prepared by the 
Corporation staff. The review panel may request other information 
identified by the Corporation as necessary to evaluate the applications 
fully; and
    (ii) Make a written recommendation to the Corporation regarding the 
award of grants or contracts from the Corporation for a particular 
service area.
    (6) After considering the recommendation made by the review panel, 
if a review panel was convened, make a staff recommendation to the 
President. The staff recommendation shall include the recommendation of 
the review panel and, if the staff recommendation differs from that of 
the review panel, an explanation of the basis for the difference in the 
recommendations.
    (b) After reviewing the written recommendations, the President shall 
select the applicants to be awarded grants or contracts from the 
Corporation and the Corporation shall notify each applicant in writing 
of the President's decision regarding each applicant's application.
    (c) In the event that there are no applicants for a service area or 
that the Corporation determines that no applicant meets the criteria and 
therefore determines not to award a grant or contract for a particular 
service area, the Corporation shall take all practical steps to ensure 
the continued provision of legal assistance in that service area. The 
Corporation shall have discretion to determine how legal assistance is 
to be provided to the service area, including, but not limited to, 
enlarging the service area of a neighboring recipient, putting a current 
recipient on month-to-month funding or entering into a short term, 
interim grant or contract with another qualified provider for the 
provision of legal assistance in the service area until the completion 
of a competitive bidding process within a reasonable period of time.



Sec.  1634.9  Selection criteria.

    (a) The criteria to be used to select among qualified applicants 
shall include the following:
    (1) Whether the applicant has a full understanding of the basic 
legal needs of the eligible clients in the area to be served;
    (2) The quality, feasibility and cost-effectiveness of the 
applicant's legal services delivery and delivery approach in relation to 
the Corporation's Performance Criteria and the American Bar 
Association's Standards for Providers of Civil Legal Services to the 
Poor, as evidenced by, among other things, the applicant's experience 
with the delivery of the type of legal assistance contemplated under the 
proposal;
    (3) Whether the applicant's governing or policy body meets or will 
meet all applicable requirements of the LSC Act, regulations, 
guidelines, instructions and any other requirements of law in accordance 
with a time schedule set out by the Corporation;

[[Page 509]]

    (4) The applicant's capacity to comply with all other applicable 
provisions of the LSC Act, rules, regulations, guidelines and 
instructions, as well as with ethical requirements and any other 
requirements imposed by law. Evidence of the applicant's capacity to 
comply with this criterion may include, among other things, the 
applicant's compliance experience with the Corporation or other funding 
sources or regulatory agencies, including but not limited to Federal or 
State agencies, bar associations or foundations, courts, IOLTA programs, 
and private foundations;
    (5) The reputations of the applicant's principals and key staff;
    (6) The applicant's knowledge of the various components of the legal 
services delivery system in the State and its willingness to coordinate 
with the various components as appropriate to assure the availability of 
a full range of legal assistance, including:
    (i) its capacity to cooperate with State and local bar associations, 
private attorneys and pro bono programs to increase the involvement of 
private attorneys in the delivery of legal assistance and the 
availability of pro bono legal services to eligible clients; and
    (ii) its knowledge of and willingness to cooperate with other legal 
services providers, community groups, public interest organizations and 
human services providers in the service area;
    (7) The applicant's capacity to develop and increase non-Corporation 
resources;
    (8) The applicant's capacity to ensure continuity in client services 
and representation of eligible clients with pending matters; and
    (9) The applicant does not have known or potential conflicts of 
interest, institutional or otherwise, with the client community and 
demonstrates a capacity to protect against such conflicts.
    (b) In selecting recipients of awards for grants or contracts under 
this part, the Corporation shall not grant any preference to current or 
previous recipients of funds from the Corporation.



Sec.  1634.10  Transition provisions.

    (a) When the competitive bidding process results in the award of a 
grant or contract to an applicant, other than the current recipient, to 
serve the area currently served by that recipient, the Corporation--
    (1) may provide, if the law permits, continued funding to the 
current recipient, for a period of time and at a level to be determined 
by the Corporation after consultation with the recipient, to ensure the 
prompt and orderly completion of or withdrawal from pending cases or 
matters or the transfer of such cases or matters to the new recipient or 
to other appropriate legal service providers in a manner consistent with 
the rules of ethics or professional responsibility for the jurisdiction 
in which those services are being provided; and
    (2) shall ensure, after consultation with the recipient, the 
appropriate disposition of real and personal property purchased by the 
current recipient in whole or in part with Corporation funds consistent 
with the Corporation's policies.
    (b) Awards of grants or contracts for legal assistance to any 
applicant that is not a current recipient may, in the Corporation's 
discretion, provide for incremental increases in funding up to the 
annualized level of the grant or contract award in order to ensure that 
the applicant has the capacity to utilize Corporation funds in an 
effective and economical manner.



Sec.  1634.11  Replacement of recipient that does not complete grant term.

    In the event that a recipient is unable or unwilling to continue to 
perform the duties required under the terms of its grant or contract, 
the Corporation shall take all practical steps to ensure the continued 
provision of legal assistance in that service area. The Corporation 
shall have discretion to determine how legal assistance is to be 
provided to the service area, including, but not limited to, enlarging 
the service area of a neighboring recipient, putting a current recipient 
on month-to-month funding or entering into a short term, interim grant 
or contract with another qualified provider for the provision of legal 
assistance in the

[[Page 510]]

service area until the completion of a competitive bidding process 
within a reasonable period of time.



Sec.  1634.12  Emergency procedures and waivers.

    The President of the Corporation may waive the requirements of 
Sec. Sec.  1634.6 and 1634.8(a)(3) and (5) when necessary to comply with 
requirements imposed by law on the awards of grants and contracts for a 
particular fiscal year.



PART 1635_TIMEKEEPING REQUIREMENT--Table of Contents



Sec.
1635.1 Purpose.
1635.2 Definitions.
1635.3 Timekeeping requirement.
1635.4 Administrative provisions.

    Authority: 42 U.S.C. Sec. Sec.  2996e(b)(1)(A), 2996g(a), 2996g(b), 
2996g(e).

    Source: 65 FR 41882, July 7, 2000, unless otherwise noted.

    Effective Date Note: At 86 FR 27041, May 19, 2021, part 1635 was 
revised, effective Jan. 1, 2022. For the convenience of the user, the 
new part 1635 follows the text of this part.



Sec.  1635.1  Purpose.

    This part is intended to improve accountability for the use of all 
funds of a recipient by:
    (a) Assuring that allocations of expenditures of LSC funds pursuant 
to 45 CFR part 1630 are supported by accurate and contemporaneous 
records of the cases, matters, and supporting activities for which the 
funds have been expended;
    (b) Enhancing the ability of the recipient to determine the cost of 
specific functions; and
    (c) Increasing the information available to LSC for assuring 
recipient compliance with Federal law and LSC rules and regulations.



Sec.  1635.2  Definitions.

    As used in this part--
    (a) A case is a form of program service in which an attorney or 
paralegal of a recipient provides legal services to one or more specific 
clients, including, without limitation, providing representation in 
litigation, administrative proceedings, and negotiations, and such 
actions as advice, providing brief services and transactional 
assistance, and assistance with individual PAI cases.
    (b) A matter is an action which contributes to the overall delivery 
of program services but does not involve direct legal advice to or legal 
representation of one or more specific clients. Examples of matters 
include both direct services, such as but not limited to, community 
education presentations, operating pro se clinics, providing information 
about the availability of legal assistance, and developing written 
materials explaining legal rights and responsibilities; and indirect 
services, such as training, continuing legal education, general 
supervision of program services, preparing and disseminating desk 
manuals, PAI recruitment, referral, intake when no case is undertaken, 
and tracking substantive law developments.
    (c) Restricted activities means those activities that recipients may 
not undertake as set out in 45 CFR part 1610.
    (d) A supporting activity is any action that is not a case or 
matter, including management in general, and fund-raising.



Sec.  1635.3  Timekeeping requirement.

    (a) All expenditures of funds for recipient actions are, by 
definition, for cases, matters, or supporting activities. The allocation 
of all expenditures must be carried out in accordance with 45 CFR part 
1630.
    (b) Time spent by attorneys and paralegals must be documented by 
time records which record the amount of time spent on each case, matter, 
or supporting activity.
    (1) Time records must be created contemporaneously and account for 
time by date and in increments not greater than one-quarter of an hour 
which comprise all of the efforts of the attorneys and paralegals for 
which compensation is paid by the recipient.
    (2) Each record of time spent must contain: for a case, a unique 
client name or case number; for matters or supporting activities, an 
identification of the category of action on which the time was spent.

[[Page 511]]

    (c) The timekeeping system must be able to aggregate time record 
information on both closed and pending cases by legal problem type.
    (d) Recipients shall require any attorney or paralegal who works 
part-time for the recipient and part-time for an organization that 
engages in restricted activities to certify in writing that the attorney 
or paralegal has not engaged in restricted activity during any time for 
which the attorney or paralegal was compensated by the recipient or has 
not used recipient resources for restricted activities. The 
certification requirement does not apply to a de minimis action related 
to a restricted activity. Actions consistent with the de minimis 
standard are those that meet all or most of the following criteria: 
actions that are of little substance; require little time; are not 
initiated by the part-time employee; and, for the most part, are 
unavoidable. Certifications shall be made on a quarterly basis and shall 
be made on a form determined by LSC.



Sec.  1635.4  Administrative provisions.

    Time records required by this section shall be available for 
examination by auditors and representatives of LSC, and by any other 
person or entity statutorily entitled to access to such records. LSC 
shall not disclose any time record except to a Federal, State or local 
law enforcement official or to an official of an appropriate bar 
association for the purpose of enabling such bar association official to 
conduct an investigation of an alleged violation of the rules of 
professional conduct.

    Effective Date Note: At 86 FR 27041, May 19, 2021, part 1635 was 
revised, effective Jan. 1, 2022. For the convenience of the user, the 
added and revised text is set forth as follows:



PART 1635_TIMEKEEPING REQUIREMENT

    Authority: 42 U.S.C. 2996g(e).



Sec.  1635.1  What is the purpose of this part?

    This part is intended to improve recipient accountability for the 
use of all funds by:
    (a) Assuring that allocations of direct costs to a recipient's LSC 
grant pursuant to 45 CFR part 1630 are supported by accurate records of 
the cases, matters, and supporting activities for which the funds have 
been expended;
    (b) Enhancing the recipient's ability to determine the cost of 
specific functions; and
    (c) Increasing the information available to LSC for assuring 
recipient compliance with Federal law and LSC rules and regulations.



Sec.  1635.2  Definitions.

    As used in this part--
    (a) Case means a form of program service in which a recipient 
employee provides legal assistance to one or more specific clients, 
including but not limited to providing representation in litigation, 
administrative proceedings, and negotiations, and such actions as 
advice, providing brief services, and transactional assistance.
    (b)(1) Case oversight means a supervisor's review of a case for 
regulatory compliance, consistency with Case Service Report reporting 
rules, and quality control purposes. Case oversight activities include, 
but are not limited to, review of file for retainer, citizenship 
attestation or documentation of eligible non-citizen status, and 
documentation of financial eligibility determination; review of closing 
codes; and review of advice provided or pleadings filed.
    (2) Case oversight activities may be counted as case activity when 
the supervisor conducts extended review of the substantive legal advice 
provided in the case. Case oversight activities may be reported as a 
supporting activity when it represents the aggregate of a supervisor's 
time spent doing brief review of a large number of cases.
    (c) Matter means an action that contributes to the overall delivery 
of program services but does not involve direct legal advice to or legal 
representation of one or more specific clients. Examples of matters 
include both direct services, such as community education presentations, 
operating pro se clinics, providing information about the availability 
of legal assistance, and developing written materials explaining legal 
rights and responsibilities; and indirect services, such as training, 
continuing legal education, supervision of program services, preparing 
and disseminating desk manuals, PAI recruitment, referral, intake when 
no case is undertaken, and tracking substantive law developments.
    (d) Restricted activities means those activities that recipients may 
not engage in pursuant to 45 CFR part 1610.
    (e) Supporting activity means any action that is not a case or 
matter.



Sec.  1635.3  Who is covered by the timekeeping requirement?

    Any attorney, paralegal, or other recipient employee who performs 
work that is charged to one or more awards as a direct cost (as defined 
in 45 CFR 1630.5(d)) must keep time according to the standards set forth 
in Sec.  1635.4.

[[Page 512]]



Sec.  1635.4  What are LSC's timekeeping standards?

    (a) Recipients must base allocations of salaries and wages on 
records that accurately reflect the work performed. These records must:
    (1) Be supported by a system of internal control which provides 
reasonable assurance that the charges are accurate, allowable, and 
properly allocated;
    (2) Be incorporated into the recipient's official records by no 
later than the end of the employee's pay period, generally every two 
weeks;
    (3) Reflect the total activity for which the recipient compensates 
the employee;
    (4) Encompass within the grantee's case management system both LSC-
funded and all other direct cost activities compensated by the 
recipient, but may include the use of subsidiary records as defined in 
the recipient's written policies;
    (5) Comply with the recipient's established accounting policies and 
practices;
    (6) Support the distribution of the employee's salary or wages among 
specific activities or cost objectives if the employee works on more 
than one award or an indirect cost activity and a direct cost activity;
    (7) Contain
    (i) For cases, a unique client name or case number, the amount of 
time spent on the case, a description of the activities performed, and 
the dates on which a recipient employee worked on the case;
    (ii) For matters or supporting activities, the amount of time and 
type of activity on which a recipient employee spent time and sufficient 
information to link the activity to a specific award or indirect cost 
amount. For example, if a recipient employee conducts a legal 
information session on filing a pro se divorce petition, the employee 
could record ``pro se divorce group information session, 1.5 hours.''
    (b) In accordance with Department of Labor regulations implementing 
the Fair Labor Standards Act (FLSA) (29 CFR part 516), charges for the 
salaries and wages of nonexempt employees, in addition to the supporting 
documentation described in this section, must also be supported by 
records indicating the total number of hours worked each day.
    (c) Salaries and wages of employees used in meeting cost sharing or 
matching requirements of Federal awards must be supported in the same 
manner as salaries and wages claimed for reimbursement from Federal 
awards.
    (d) Recipients may establish the increments of time for which 
employees must record their activities (e.g., .25 hours, one-sixth of an 
hour). LSC recommends that recipients require employees to record their 
time in increments no greater than one quarter of an hour.
    (e)(1) Any recipient employee subject to this part who works part-
time for the recipient and part-time for an organization that engages in 
restricted activities shall certify in writing that the employee has not 
engaged in restricted activity during any time for which the employee 
was compensated by the recipient or has not used recipient resources to 
carry out restricted activities.
    (2) The certification requirement does not apply to a de minimis 
action related to a restricted activity. Actions consistent with the de 
minimis standard are those that meet all or most of the following 
criteria: Actions that are of little substance; require little time; are 
not initiated by the part-time employee; and, for the most part, are 
unavoidable. Employees shall make the required certification on a 
quarterly basis using a form determined by LSC.



Sec.  1635.5  Who outside the recipient has access to these records?

    Recipients must make time records required by this section available 
for examination by auditors and representatives of LSC, and by any other 
person or entity statutorily entitled to access to such records. LSC 
shall not disclose any time record except to a Federal, State, or local 
law enforcement official or to an official of an appropriate bar 
association to enable such bar association official to investigate of an 
alleged violation of the rules of professional conduct.



PART 1636_CLIENT IDENTITY AND STATEMENT OF FACTS--Table of Contents



Sec.
1636.1 Purpose.
1636.2 Requirements.
1636.3 Access to written statements.
1636.4 Applicability.
1636.5 Recipient policies, procedures and recordkeeping.

    Authority: Pub. L. 104-208, 110 Stat. 3009; Pub. L. 104-134, 110 
Stat. 1321.

    Source: 62 FR 19420, Apr. 21, 1997, unless otherwise noted.



Sec.  1636.1  Purpose.

    The purpose of this rule is to ensure that, when an LSC recipient 
files a complaint in a court of law or otherwise initiates or 
participates in litigation against a defendant or engages in pre-
complaint settlement negotiations, the recipient identifies the 
plaintiff it represents to the defendant and ensures that the plaintiff 
has a colorable claim.

[[Page 513]]



Sec.  1636.2  Requirements.

    (a) When a recipient files a complaint in a court of law or 
otherwise initiates or participates in litigation against a defendant, 
or before a recipient engages in pre-complaint settlement negotiations 
with a prospective defendant on behalf of a client who has authorized it 
to file suit in the event that the settlement negotiations are 
unsuccessful, it shall:
    (1) Identify each plaintiff it represents by name in any complaint 
it files, or in a separate notice provided to the defendant against whom 
the complaint is filed where disclosure in the complaint would be 
contrary to law or court rules or practice, and identify each plaintiff 
it represents to prospective defendants in pre-litigation settlement 
negotiations, unless a court of competent jurisdiction has entered an 
order protecting the client from such disclosure based on a finding, 
after notice and an opportunity for a hearing on the matter, of 
probable, serious harm to the plaintiff if the disclosure is not 
prevented; and
    (2) Prepare a dated written statement signed by each plaintiff it 
represents, enumerating the particular facts supporting the complaint, 
insofar as they are known to the plaintiff when the statement is signed.
    (b) The statement of facts must be written in English and, if 
necessary, in a language other than English that the plaintiff 
understands.
    (c) In the event of an emergency, where the recipient reasonably 
believes that delay is likely to cause harm to a significant safety, 
property or liberty interest of the client, the recipient may proceed 
with the litigation or negotiation without a signed statement of facts, 
provided that the statement is prepared and signed as soon as possible 
thereafter.



Sec.  1636.3  Access to written statements.

    (a) Written statements of facts prepared in accordance with this 
part are to be kept on file by the recipient and made available to the 
Corporation or to any Federal department or agency auditing or 
monitoring the activities of the recipient or to any auditor or monitor 
receiving Federal funds to audit or monitor on behalf of a Federal 
department or agency or on behalf of the Corporation.
    (b) This part does not give any person or party other than those 
listed in paragraph (a) of this section any right of access to the 
plaintiff's written statement of facts, either in the lawsuit or through 
any other procedure. Access to the statement of facts by such other 
persons or parties is governed by applicable law and the discovery rules 
of the court in which the action is brought.



Sec.  1636.4  Applicability.

    This part applies to cases for which private attorneys are 
compensated by the recipient as well as to those cases initiated by the 
recipient's staff.



Sec.  1636.5  Recipient policies, procedures and recordkeeping.

    Each recipient shall adopt written policies and procedures to guide 
its staff in complying with this part and shall maintain records 
sufficient to document the recipient's compliance with this part.



PART 1637_REPRESENTATION OF PRISONERS--Table of Contents



Sec.
1637.1 Purpose.
1637.2 Definitions.
1637.3 Prohibition.
1637.4 Change in circumstances.
1637.5 Recipient policies, procedures and recordkeeping.

    Authority: 42 U.S.C. 2996g(e); Pub. L. 104-208, 110 Stat. 3009; Pub. 
L. 104-134, 110 Stat. 1321.

    Source: 62 FR 19422, Apr. 21, 1997, unless otherwise noted.



Sec.  1637.1  Purpose.

    This part is intended to ensure that recipients do not participate 
in any civil litigation on behalf of persons incarcerated in Federal, 
State or local prisons.



Sec.  1637.2  Definitions.

    (a) Incarcerated means the involuntary physical restraint of a 
person who has been arrested for or convicted of a crime.

[[Page 514]]

    (b) Federal, State or local prison means any penal facility 
maintained under governmental authority.



Sec.  1637.3  Prohibition.

    A recipient may not participate in any civil litigation on behalf of 
a person who is incarcerated in a Federal, State or local prison, 
whether as a plaintiff or as a defendant, nor may a recipient 
participate on behalf of such an incarcerated person in any 
administrative proceeding challenging the conditions of incarceration.



Sec.  1637.4  Change in circumstances.

    If, to the knowledge of the recipient, a client becomes incarcerated 
after litigation has commenced, the recipient must use its best efforts 
to withdraw promptly from the litigation, unless the period of 
incarceration is anticipated to be brief and the litigation is likely to 
continue beyond the period of incarceration.



Sec.  1637.5  Recipient policies, procedures and recordkeeping.

    Each recipient shall adopt written policies and procedures to guide 
its staff in complying with this part and shall maintain records 
sufficient to document the recipient's compliance with this part.



PART 1638_RESTRICTION ON SOLICITATION--Table of Contents



Sec.
1638.1 Purpose.
1638.2 Definitions.
1638.3 Prohibition.
1638.4 Permissible activities.
1638.5 Recipient policies.

    Authority: Sec. 504(a)(18), Pub. L. 104-208, 110 Stat. 3009; Pub. L. 
104-134, 110 Stat. 1321.

    Source: 62 FR 19424, Apr. 21, 1997, unless otherwise noted.



Sec.  1638.1  Purpose.

    This part is designed to ensure that recipients and their employees 
do not solicit clients.



Sec.  1638.2  Definitions.

    (a) In-person means a face-to-face encounter or a personal encounter 
via other means of communication such as a personal letter or telephone 
call.
    (b) Unsolicited advice means advice to obtain counsel or take legal 
action given by a recipient or its employee to an individual who did not 
seek the advice and with whom the recipient does not have an attorney-
client relationship.



Sec.  1638.3  Prohibition.

    (a) Recipients and their employees are prohibited from representing 
a client as a result of in-person unsolicited advice.
    (b) Recipients and their employees are also prohibited from 
referring to other recipients individuals to whom they have given in-
person unsolicited advice.



Sec.  1638.4  Permissible activities.

    (a) This part does not prohibit recipients or their employees from 
providing information regarding legal rights and responsibilities or 
providing information regarding the recipient's services and intake 
procedures through community legal education activities such as 
outreach, public service announcements, maintaining an ongoing presence 
in a courthouse to provide advice at the invitation of the court, 
disseminating community legal education publications, and giving 
presentations to groups that request them.
    (b) A recipient may represent an otherwise eligible individual 
seeking legal assistance from the recipient as a result of information 
provided as described in Sec.  1638.4(a), provided that the request has 
not resulted from in-person unsolicited advice.
    (c) This part does not prohibit representation or referral of 
clients by recipients pursuant to a statutory or private ombudsman 
program that provides investigatory and referral services and/or legal 
assistance on behalf of persons who are unable to seek assistance on 
their own, including those who are institutionalized or are physically 
or mentally disabled.



Sec.  1638.5  Recipient policies.

    Each recipient shall adopt written policies to implement the 
requirements of this part.

[[Page 515]]



PART 1639_WELFARE REFORM--Table of Contents



Sec.
1639.1 Purpose.
1639.2 Definitions.
1639.3 Prohibition.
1639.4 Permissible representation of eligible clients.
1639.5 Exceptions for public rulemaking and responding to requests with 
          non-LSC funds.
1639.6 Recipient policies and procedures.

    Authority: 42 U.S.C. 2996g(e); Pub. L. 104-208, 110 Stat. 3009; Pub. 
L. 104-134, 110 Stat. 1321.

    Source: 62 FR 30766, June 5, 1997, unless otherwise noted.



Sec.  1639.1  Purpose.

    The purpose of this rule is to ensure that LSC recipients do not 
initiate litigation involving, or challenge or participate in, efforts 
to reform a Federal or State welfare system. The rule also clarifies 
when recipients may engage in representation on behalf of an individual 
client seeking specific relief from a welfare agency and under what 
circumstances recipients may use funds from sources other than the 
Corporation to comment on public rulemaking or respond to requests from 
legislative or administrative officials involving a reform of a Federal 
or State welfare system.



Sec.  1639.2  Definitions.

    An effort to reform a Federal or State welfare system includes all 
of the provisions, except for the Child Support Enforcement provisions 
of Title III, of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (Personal Responsibility Act), 110 Stat. 2105 
(1996), and subsequent legislation enacted by Congress or the States to 
implement, replace or modify key components of the provisions of the 
Personal Responsibility Act or by States to replace or modify key 
components of their General Assistance or similar means-tested programs 
conducted by States or by counties with State funding or under State 
mandates.

[67 FR 19343, Apr. 19, 2002]



Sec.  1639.3  Prohibition.

    Except as provided in Sec. Sec.  1639.4 and 1639.5, recipients may 
not initiate legal representation, or participate in any other way in 
litigation, lobbying or rulemaking, involving an effort to reform a 
Federal or State welfare system. Prohibited activities include 
participation in:
    (a) Litigation challenging laws or regulations enacted as part of an 
effort to reform a Federal or State welfare system.
    (b) Rulemaking involving proposals that are being considered to 
implement an effort to reform a Federal or State welfare system.
    (c) Lobbying before legislative or administrative bodies undertaken 
directly or through grassroots efforts involving pending or proposed 
legislation that is part of an effort to reform a Federal or State 
welfare system.



Sec.  1639.4  Permissible representation of eligible clients.

    Recipients may represent an individual eligible client who is 
seeking specific relief from a welfare agency.

[62 FR 30766, June 5, 1997, as amended at 67 FR 19343, Apr. 19, 2002]



Sec.  1639.5  Exceptions for public rulemaking and responding to requests 
with non-LSC funds.

    Consistent with the provisions of 45 CFR 1612.6 (a) through (e), 
recipients may use non-LSC funds to comment in a public rulemaking 
proceeding or respond to a written request for information or testimony 
from a Federal, State or local agency, legislative body, or committee, 
or a member thereof, regarding an effort to reform a Federal or State 
welfare system.



Sec.  1639.6  Recipient policies and procedures.

    Each recipient shall adopt written policies and procedures to guide 
its staff in complying with this part.



PART 1640_APPLICATION OF FEDERAL LAW TO LSC RECIPIENTS--Table of Contents



Sec.
1640.1 Purpose.
1640.2 Applicable Federal laws.
1640.3 Contractual agreement.

[[Page 516]]

1640.4 Violation of agreement.

    Authority: 42 U.S.C. 2996e(g).

    Source: 80 FR 21656, Apr. 20, 2015, unless otherwise noted.



Sec.  1640.1  Purpose.

    The purpose of this part is to ensure that recipients use their LSC 
funds in accordance with Federal law related to the proper use of 
Federal funds. This part also provides notice to recipients of the 
consequences of a violation of such Federal laws by a recipient, its 
employees or board members.



Sec.  1640.2  Applicable federal laws.

    (a) LSC will maintain an exhaustive list of applicable Federal laws 
relating to the proper use of Federal funds on its Web site and provide 
recipients with a link to the list in the contractual agreement. The 
list may be modified with the approval of the Corporation's Board of 
Directors at a public meeting. LSC will provide recipients with notice 
when the list is modified.
    (b) For the purposes of this part and the laws referenced in 
paragraph (a) of this section, LSC is considered a Federal agency and a 
recipient's LSC funds are considered Federal funds provided by grant or 
contract.



Sec.  1640.3  Contractual agreement.

    As a condition of receiving LSC funds, a recipient must enter into a 
written agreement with the Corporation that, with respect to its LSC 
funds, will subject the recipient to the applicable Federal laws 
relating to the proper use of Federal funds. The agreement must include 
a statement that all of the recipient's employees and board members have 
been informed of such Federal law and of the consequences of a violation 
of such law, both to the recipient and to themselves as individuals.



Sec.  1640.4  Violation of agreement.

    (a) LSC will determine that a recipient has violated the agreement 
described in Sec.  1640.3 when the recipient has been convicted of, or 
judgment has been entered against the recipient for, a violation of an 
applicable Federal law relating to the proper use of Federal funds with 
respect to its LSC grant or contract, by the court having jurisdiction 
of the matter, and any appeals of the conviction or judgment have been 
exhausted or the time for appeal has expired.
    (b) A violation of the agreement by a recipient based on recipient 
conduct will result in the Corporation terminating the recipient's LSC 
grant or contract without need for a termination hearing. While an 
appeal of a conviction or judgment is pending, the Corporation may take 
any necessary steps to safeguard its funds.
    (c) LSC will determine that the recipient has violated the agreement 
described in Sec.  1640.3 when an employee or board member of the 
recipient has been convicted of, or judgment has been entered against 
the employee or board member for, a violation of an applicable Federal 
law relating to the proper use of Federal funds with respect to the 
recipient's grant or contract with LSC, by the court having jurisdiction 
of the matter, and any appeals of the conviction or judgment have been 
exhausted or the time for appeal has expired, and the Corporation finds 
that the recipient has knowingly or through gross negligence allowed the 
employee or board member to engage in such activities.
    (d) A violation of the agreement by the recipient based on employee 
or board member conduct will result in the Corporation terminating the 
recipient's LSC grant or contract. Prior to termination, the Corporation 
will provide notice and an opportunity to be heard for the sole purpose 
of determining whether the recipient knowingly or through gross 
negligence allowed the employee or board member to engage in the 
activities leading to the conviction or judgment. While an appeal of a 
conviction or judgment or a hearing is pending, the Corporation may take 
any necessary steps to safeguard its funds.



PART 1641_DEBARMENT, SUSPENSION AND REMOVAL OF RECIPIENT AUDITORS--
Table of Contents



                            Subpart A_General

Sec.
1641.1 Purpose/Applicability.

[[Page 517]]

1641.2 Definitions.
1641.3 Scope of debarment, suspension and removal.
1641.4 Duration of debarment, suspension and removal.

                           Subpart B_Debarment

1641.5 Debarment.
1641.6 Procedures for debarment.
1641.7 Causes for debarment.
1641.8 Notice of proposed debarment.
1641.9 Response to notice of proposed debarment.
1641.10 Additional proceedings as to disputed material facts.

                          Subpart C_Suspension

1641.11 Suspension.
1641.12 Procedures for suspension.
1641.13 Causes for suspension.
1641.14 Notice of proposed suspension.
1641.15 Response to notice of proposed suspension.

                            Subpart D_Removal

1641.16 Removal.
1641.17 Procedures for removal.
1641.18 Causes for removal.
1641.19 Notice of proposed removal.
1641.20 Response to notice of proposed removal.
1641.21 Additional proceedings as to disputed material facts.

                           Subpart E_Decisions

1641.22 Decisions of debarring official.
1641.23 Exceptions to debarment, suspension and removal.
1641.24 Appeal and reconsideration of debarring official decisions.

    Authority: 42 U.S.C. 2996e(g); Pub. L. 105-277.

    Source: 64 FR 67507, Dec. 2, 1999, unless otherwise noted.



                            Subpart A_General



Sec.  1641.1  Purpose/Applicability.

    In order to assist in ensuring that recipients receive acceptable 
audits, this part sets out the authority of the Legal Services 
Corporation (``LSC'') Office of Inspector General (``OIG'') to debar, 
suspend or remove independent public accountants (``IPAs'') from 
performing audit services for recipients. This rule informs IPAs of 
their rights to notice and an opportunity to be heard on actions 
involving debarment, suspension or removal, and the standards upon which 
such actions will be taken. This part applies to IPAs performing audit 
services for recipients, subrecipients or other entities which receive 
LSC funds and are required to have an audit performed in accordance with 
guidance promulgated by the OIG.



Sec.  1641.2  Definitions.

    Adequate evidence means information sufficient to support the 
reasonable belief that a particular act or omission has occurred.
    Audit services means the annual financial statement audit of a 
recipient, including an audit of the recipient's financial statements, 
systems of internal control, and compliance with laws and regulations.
    Contract means an agreement between a recipient and an IPA for an 
IPA to provide audit services to the recipient.
    Conviction means a judgment or conviction of a criminal offense by 
any court, whether entered upon a verdict or plea, including but not 
limited to, pleas of nolo contendere.
    Debarment means a decision by the debarring official to prohibit an 
IPA from soliciting or entering into new contracts to perform audit 
services for recipient(s) based upon a finding by a preponderance of the 
evidence that any of the causes for debarment set out in Sec.  1641.7 
exist. Debarment may cover an IPA's contracts with all recipients or 
with one or more specific recipients.
    Debarring official is the official responsible for debarment, 
suspension or removal actions under this part. The OIG legal counsel is 
the debarring official. In the absence of an OIG legal counsel or in the 
discretion of the Inspector General, the debarring official shall be the 
OIG staff person or other individual designated by the Inspector 
General.
    Indictment means a charge by a grand jury that the person named 
therein has committed a criminal offense. An information, presentment, 
or other filing by competent authority charging a criminal offense shall 
be given the same effect as an indictment.
    IPA means an independent public accountant or firm of accountants.

[[Page 518]]

    Knowingly means that an act was done voluntarily and intentionally 
and not because of mistake or accident.
    Material fact means one which is necessary to determine the outcome 
of an issue or case and without which the case could not be supported.
    Person means an individual or a firm, partnership, corporation, 
association, or other legal entity.
    Preponderance of the evidence means proof by information that, 
compared with that opposing it, leads to the conclusion that the fact at 
issue is more probably true than not.
    Removal means a decision by the debarring official to prohibit an 
IPA from performing audit services in subsequent years of an existing 
contract with one or more specific recipients based upon a finding by a 
preponderance of the evidence that any of the causes set out in Sec.  
1641.18 exist.
    Suspension means a decision by the debarring official, in 
anticipation of a debarment, to prohibit an IPA from soliciting or 
entering into new contracts to perform audit services for recipient(s) 
based upon a finding of adequate evidence that any of the causes 
referred to in Sec.  1641.13 exist. Suspension may preclude an IPA from 
soliciting or entering into new contracts with all recipients or with 
one or more specific recipients.



Sec.  1641.3  Scope of debarment, suspension and removal.

    An IPA may be debarred, suspended or removed under this part only if 
the IPA is specifically named and given notice of the proposed action 
and an opportunity to respond in accordance with this part.
    (a) Actions against individual IPAs. Debarment, suspension or 
removal of an individual IPA, debars, suspends or removes that 
individual from performing audit services as an individual or as an 
employee, independent contractor, agent or other representative of an 
IPA firm.
    (b) Actions against IPA firms. (1) Debarment, suspension or removal 
shall affect only those divisions or other organizational elements 
materially involved in the relevant engagement and as to which there is 
cause to debar, suspend or remove.
    (2) The debarment, suspension or removal action contemplated in 
paragraph (b)(1) of this section may include any firm that is an 
affiliate, subcontractor, joint venturer, agent or representative of the 
IPA firm only if such firm was materially involved in the relevant 
engagement and is specifically named and given notice of the proposed 
action and an opportunity to respond in accordance with this part.
    (3) The debarment, suspension or removal action contemplated in 
paragraph (b)(1) of this section may include an individual officer, 
director, or partner responsible for the engagement, or an individual 
employee, independent contractor, agent, representative or other 
individual associated with an IPA firm only if such individual is 
specifically named and given notice of the proposed action and an 
opportunity to respond in accordance with this part.



Sec.  1641.4  Duration of debarment, suspension and removal.

    A debarment, suspension or removal is effective as set out in the 
debarring official's decision to debar, suspend or remove, issued 
pursuant to Sec.  1641.22.
    (a) Debarment. (1) Debarment generally should not exceed three 
years, but may be for a shorter period based on a consideration of the 
evidence presented by the IPA. Debarment may exceed three years in 
extraordinary circumstances.
    (2) If a suspension precedes a debarment, the suspension period 
shall be considered in determining the debarment period.
    (3) The debarring official may extend an existing debarment for an 
additional period if the debarring official determines, based on 
additional facts not previously in the record, that an extension is 
necessary to protect LSC funds. The standards and procedures in this 
part shall be applied in any proceeding to extend a debarment.
    (b) Suspension. (1) The debarring official may determine that a 
cause for suspension exists, but that an investigation or other legal or 
debarment proceeding should be completed before proceeding to a 
debarment. Suspension shall be for a temporary period pending the 
completion of an investigation or other legal or debarment proceedings,

[[Page 519]]

including a proceeding conducted by the OIG, a law enforcement or other 
government agency, an investigative or audit official from another OIG, 
a court, or a state licensing body or other organization with authority 
over IPAs.
    (2) If debarment proceedings are not initiated within 12 months 
after the date of the suspension notice, the suspension shall be 
terminated unless an official or organization conducting a proceeding 
referred to in paragraph (b)(1) of this section requests its extension 
in writing. In such cases, the suspension may be extended up to an 
additional six months. In no event may a suspension be imposed for more 
than 18 months, unless debarment proceedings have been initiated within 
that period.
    (3) The OIG shall notify the appropriate official or organization 
conducting a proceeding referred to in paragraph (b)(1) of this section, 
if any, of the suspension within 10 days of its implementation, and 
shall notify such official or organization of an impending termination 
of a suspension at least 30 days before the 12-month period expires to 
allow an opportunity to request an extension.
    (4) The limit on the duration of a suspension in paragraph (b)(2) of 
this section may be waived by the affected IPA.
    (c) Removal. Removal shall be effective for the years remaining on 
the existing contract(s) between the IPA and the recipient(s).



                           Subpart B_Debarment



Sec.  1641.5  Debarment.

    (a) IPAs debarred from providing audit services for all recipients 
are prohibited from soliciting or entering into any new contracts for 
audit services with recipients for the duration of the specified period 
of debarment. Recipients shall not knowingly award contracts to, extend 
or modify existing contracts with, or solicit proposals from, such IPAs. 
Debarred IPAs also are prohibited from providing audit services to 
recipients as agents or representatives of other IPAs.
    (b) IPAs debarred from providing audit services for one or more 
specific recipient(s) are prohibited from soliciting or entering into 
any new contracts for audit services with such recipient(s) for the 
duration of the period of debarment as determined pursuant to this part. 
The affected recipient(s) shall not knowingly award contracts to, extend 
or modify existing contracts with, or solicit proposals from, such IPAs. 
Debarred IPAs also are prohibited from providing audit services to the 
affected recipient(s) as agents or representatives of other IPAs, and 
are required to provide prior written notice to the debarring official 
before providing such services to other recipients. Debarred IPAs also 
must provide prior written notice of the debarment to any recipient for 
which the IPA provides audit services.



Sec.  1641.6  Procedures for debarment.

    Before debarring an IPA, the OIG shall provide the IPA with a 
hearing in accordance with the procedures set out in Sec. Sec.  1641.7 
through 1641.9. Such hearing shall be held entirely by written 
submissions, except:
    (a) Additional proceedings shall be held under Sec.  1641.10 if the 
debarring official finds there is a genuine dispute of material fact; 
and/or
    (b) A meeting may be held under Sec.  1641.9(c).



Sec.  1641.7  Causes for debarment.

    The debarring official may debar an IPA from performing audit 
services in accordance with the procedures set forth in this part upon a 
finding by a preponderance of the evidence that:
    (a) The IPA has failed significantly to comply with government 
auditing standards established by the Comptroller General of the United 
States, generally accepted auditing standards and/or OIG audit guidance 
as stated in the OIG Audit Guide for Recipients and Auditors, including 
the Compliance Supplement for Audits of LSC Recipients, and in OIG Audit 
Bulletins;
    (b) The IPA is currently debarred from contracting with any Federal 
agency or entity receiving Federal funds, including when the IPA has 
stipulated to such debarment;
    (c) The IPA's license to practice accounting has been revoked, 
terminated or suspended by a state licensing body

[[Page 520]]

or other organization with authority over IPAs;
    (d) The IPA has been convicted of any offense indicating a breach of 
trust, dishonesty or lack of integrity, or conspiracy to commit such an 
offense, and the conviction is final; or
    (e) The IPA has been found subject to a civil judgment for any 
action indicating a breach of trust, dishonesty or lack of integrity, or 
conspiracy to take such action, and the judgment is final.



Sec.  1641.8  Notice of proposed debarment.

    (a) Before debarring an IPA, the OIG shall send the IPA written 
notice of the proposed debarment. The notice shall be sent in a manner 
that provides evidence of its receipt and shall:
    (1) State that debarment is being considered;
    (2) Identify the reasons for the proposed debarment sufficient to 
put the IPA on notice of the conduct or transaction(s) upon which a 
debarment proceeding is based;
    (3) Identify the regulatory provisions governing the debarment 
proceeding; and
    (4) State that debarment may be for a period of up to three years or 
longer under extraordinary circumstances. If the OIG has determined that 
extraordinary circumstances warranting debarment in excess of three 
years may exist, the notice shall so state.
    (b) A copy of the notice also shall be sent to the affected 
recipient(s), if any, which may comment on the proposed action in the 
time frame set out in Sec.  1641.9.



Sec.  1641.9  Response to notice of proposed debarment.

    (a) The IPA shall have 30 days from receipt of the notice within 
which to respond.
    (b) The response shall be in writing and may include information and 
argument in opposition to the proposed debarment, including any 
additional specific information pertaining to the possible causes for 
debarment, and information and argument in mitigation of the proposed 
period of debarment.
    (c) The response may request a meeting with the debarring official 
to permit the IPA to discuss issues of fact or law relating to the 
proposed debarment, or to otherwise resolve the pending matters. Any 
such meeting shall take the form that the debarring official deems 
appropriate and shall be held within 20 days of the response. If the IPA 
requests an in person meeting, it shall be held at LSC headquarters.
    (d) Failure to respond to the notice shall be deemed an admission of 
the existence of the cause(s) for debarment set forth in the notice and 
an acceptance of the period of debarment. In such circumstances, without 
further proceedings, the debarring official may enter a final decision 
stating the period of debarment.



Sec.  1641.10  Additional proceedings as to disputed material facts.

    (a) In actions not based upon a conviction or civil judgment under 
Sec.  1641.7 (d) or (e), if the debarring official finds that the IPA's 
submission raises a genuine dispute of material fact, the IPA shall be 
afforded an opportunity to appear (with counsel, if desired), submit 
documentary evidence, present witnesses, and confront any witnesses the 
OIG presents. If the debarring official finds that the IPA's submission 
does not raise a genuine issue of material fact, additional proceedings 
will not be provided. In such case, the hearing shall be held entirely 
by written submissions, except that a meeting may be held under Sec.  
1641.9(c).
    (b) If the debarring official determines additional proceedings to 
be warranted, OIG shall notify the IPA. Such notice shall include notice 
of the procedures under which such proceedings shall be conducted.
    (c) A transcribed record of any additional proceedings shall be 
prepared and a copy shall be made available to the IPA without cost.
    (d) The debarring official may refer disputed material facts to a 
fact finder, who need not be a member of the OIG staff, for fact 
finding, analysis and recommendation.



                          Subpart C_Suspension



Sec.  1641.11  Suspension.

    (a) IPAs suspended from providing audit services for all recipients 
are prohibited from soliciting or entering into any new contracts for 
audit services

[[Page 521]]

with recipients for the duration of the suspension. Recipients shall not 
knowingly award contracts to, extend or modify existing contracts with, 
or solicit proposals from, such IPAs. Suspended IPAs also are prohibited 
from providing audit services to recipients as agents or representatives 
of other IPAs.
    (b) IPAs suspended from providing audit services for one or more 
specific recipient(s) are prohibited from soliciting or entering into 
any new contracts for audit services with such recipient(s) for the 
duration of the period of suspension as determined pursuant to this 
part. The affected recipient(s) shall not knowingly award contracts to, 
extend or modify existing contracts with, or solicit proposals from, 
such IPAs. Suspended IPAs also are prohibited from providing audit 
services to the affected recipient(s) as agents or representatives of 
other IPAs, and are required to provide prior written notice to the 
debarring official before providing such services to other recipients. 
Suspended IPAs also must provide prior written notice of the suspension 
to any recipient for which the IPA provides audit services.



Sec.  1641.12  Procedures for suspension.

    Before suspending an IPA, the OIG shall provide the IPA with a show 
cause hearing in accordance with the procedures set out in Sec. Sec.  
1641.13 through 1641.15. Such hearing shall be held entirely by written 
submissions, except that a meeting may be held under Sec.  1641.15(c).



Sec.  1641.13  Causes for suspension.

    The debarring official may suspend an IPA in accordance with the 
procedures set forth in this part upon adequate evidence that:
    (a) A cause for debarment under Sec.  1641.7 may exist;
    (b) The IPA has been indicted for or convicted of any offense 
described in Sec.  1641.7;
    (c) The IPA has been found subject to a civil judgment described in 
Sec.  1641.7(e), whether the judgment is final or not.
    (d) The IPA has been suspended from contracting with a Federal 
agency or entity receiving Federal funds including when the IPA has 
stipulated to the suspension.



Sec.  1641.14  Notice of proposed suspension.

    (a) Before suspending an IPA, OIG shall send it written notice of 
cause to suspend. Such notice shall:
    (1) Include a directive to show cause, signed by the debarring 
official, which shall inform the IPA that unless the IPA responds within 
10 days as provided in Sec.  1641.15, a suspension will be imposed;
    (2) Identify the reasons for the proposed suspension sufficient to 
put the IPA on notice of the conduct or transaction(s) upon which a 
suspension proceeding is based;
    (3) Identify the regulatory provisions governing the suspension 
proceeding; and
    (4) State that, if imposed, the suspension shall be for a temporary 
period pending the completion of an investigation or other legal or 
debarment proceeding.
    (b) A copy of the notice also shall be sent to the affected 
recipient(s), if any, who may comment on the proposed action in the time 
frame set out in Sec.  1641.15.



Sec.  1641.15  Response to notice of proposed suspension.

    (a) The IPA shall have 10 days from receipt of the notice within 
which to respond.
    (b) The response shall be in writing and may include information and 
argument in opposition to the proposed suspension, including any 
additional specific information pertaining to the possible causes for 
suspension, and information and argument in mitigation of the proposed 
period of suspension.
    (c) The response may request a meeting with the OIG official 
identified in the notice to permit the IPA to discuss issues of fact or 
law relating to the proposed suspension, or to otherwise resolve the 
pending matters.
    (1) Any such meeting shall take such form as the debarring official 
deems appropriate and shall be held within 10 days of the response.
    (2) No meeting will be held if a law enforcement official, an 
investigative or audit official from another OIG, a

[[Page 522]]

state licensing body or other organization with authority over IPAs, or 
a governmental agency has advised in writing that the substantial 
interest of a governmental unit would be prejudiced by such a meeting 
and the debarring official determines that the suspension is based on 
the same facts as the pending legal proceedings referenced by the law 
enforcement official.
    (d) Failure to respond to the notice shall be deemed an admission of 
the existence of the cause(s) for suspension set forth in the notice and 
an acceptance of the period of suspension. In such circumstances, the 
OIG may proceed to a final decision without further proceedings.



                            Subpart D_Removal



Sec.  1641.16  Removal.

    Removed IPAs are prohibited from performing audit services in 
subsequent years under an existing contract(s) with one or more specific 
recipients. The affected recipient(s) shall not extend existing 
contracts with such IPAs. Removed IPAs also are prohibited from 
providing audit services to the affected recipient(s) as agents or 
representatives of other IPAs, and are required to provide prior written 
notice to the debarring official before providing such services to other 
recipients. Removed IPAs also must provide prior written notice of the 
removal to any such recipient.



Sec.  1641.17  Procedures for removal.

    (a) Before removing an IPA, the OIG shall provide the IPA with a 
hearing in accordance with the procedures set out in Sec. Sec.  1641.18 
through 1641.21. Such hearing shall be held entirely by written 
submissions, except:
    (1) Additional proceedings shall be held under Sec.  1641.21 if the 
debarring official finds there is a genuine dispute of material fact; 
and/or
    (2) A meeting may be held under Sec.  1641.20(c).
    (b) A Notice of Proposed Removal normally will be accompanied by a 
Notice of Proposed Debarment, and the proceedings may be consolidated.



Sec.  1641.18  Causes for removal.

    The debarring official may remove an IPA from performing audit 
services in accordance with the procedures set forth in this part upon a 
finding by a preponderance of the evidence that:
    (a) The IPA has failed significantly to comply with government 
auditing standards established by the Comptroller General of the United 
States, generally accepted auditing standards and/or OIG audit guidance 
as stated in the OIG Audit Guide for Recipients and Auditors, including 
the Compliance Supplement for Audits of LSC Recipients, and in OIG Audit 
Bulletins;
    (b) The IPA is currently debarred from contracting with any Federal 
agency or entity receiving Federal funds, including when the IPA has 
stipulated to such debarment;
    (c) The IPA's license to practice accounting has been revoked, 
terminated or suspended by a state licensing body or other organization 
with authority over IPAs;
    (d) The IPA has been convicted of any offense indicating a breach of 
trust, dishonesty or lack of integrity, or conspiracy to commit such an 
offense, and the conviction is final; or
    (e) The IPA has been found subject to a civil judgment for any 
action indicating a breach of trust, dishonesty or lack of integrity, or 
conspiracy to take such action, and the judgment is final.



Sec.  1641.19  Notice of proposed removal.

    (a) Before removing an IPA, the OIG shall send the IPA written 
notice of the proposed removal. The notice shall be sent in a manner 
that provides evidence of its receipt and shall:
    (1) State that removal is being considered;
    (2) Identify the reasons for the proposed removal sufficient to put 
the IPA on notice of the conduct or transaction(s) upon which a removal 
proceeding is based;
    (3) Identify the regulatory provisions governing the removal 
proceeding; and
    (4) State that removal shall be for the years remaining on the 
existing contract(s) between the IPA and the recipient(s).
    (b) A copy of the notice also shall be sent to the affected 
recipient(s), if any, which may comment on the proposed

[[Page 523]]

action in the time frame set out in Sec.  1641.20.



Sec.  1641.20  Response to notice of proposed removal.

    (a) The IPA shall have 30 days from receipt of the notice within 
which to respond.
    (b) The response shall be in writing and may include information and 
argument in opposition to the proposed removal, including any additional 
specific information pertaining to the possible causes for removal.
    (c) The response may request a meeting with the debarring official 
to permit the IPA to discuss issues of fact or law relating to the 
proposed removal, or to otherwise resolve the pending matters. Any such 
meeting shall take the form that the debarring official deems 
appropriate and shall be held within 20 days of the response. If the IPA 
requests an in person meeting, it shall be held at LSC headquarters.
    (d) Failure to respond to the notice shall be deemed an admission of 
the existence of the cause(s) for removal set forth in the notice and an 
acceptance of the removal. In such circumstances, without further 
proceedings, the debarring official may enter a final decision removing 
the IPA.



Sec.  1641.21  Additional proceedings as to disputed material facts.

    (a) In actions not based upon a conviction or civil judgment under 
Sec.  1641.18(d) or (e), if the debarring official finds that the IPA's 
submission raises a genuine dispute of material fact, the IPA shall be 
afforded an opportunity to appear (with counsel, if desired), submit 
documentary evidence, present witnesses, and confront any witnesses the 
OIG presents. If the debarring official finds that the IPA's submission 
does not raise a genuine issue of material fact, additional proceedings 
will not be provided. In such case, the hearing shall be held entirely 
by written submissions, except that a meeting may be held under Sec.  
1641.20(c).
    (b) If the debarring official determines additional proceedings to 
be warranted, OIG shall notify the IPA. Such notice shall include notice 
of the procedures under which such proceedings shall be conducted.
    (c) A transcribed record of any additional proceedings shall be 
prepared and a copy shall be made available to the IPA without cost.
    (d) The debarring official may refer disputed material facts to a 
fact finder, who need not be a member of the OIG staff, for fact 
finding, analysis and recommendation.



                           Subpart E_Decisions



Sec.  1641.22  Decisions of debarring official.

    (a) Standard of proof. (1) A debarment or removal must be based on a 
finding that the cause or causes for debarment or removal are 
established by a preponderance of the evidence in the administrative 
record of the case.
    (2) A suspension must be based on a finding that the cause or causes 
are established by adequate evidence in the administrative record of the 
case.
    (b) The administrative record consists of any information, reports, 
documents or other evidence identified and relied upon in the Notice of 
Proposed Debarment, the Notice of Proposed Suspension, or the Notice of 
Proposed Removal, together with any relevant material contained in the 
IPA's response or submitted by an affected recipient. In the case of 
debarment or removal, when additional proceedings are necessary to 
determine disputed material facts, the administrative record also shall 
consist of any relevant material submitted or presented at such 
proceedings.
    (c) Failure of the OIG to meet a time requirement of this part does 
not preclude the OIG from debarring, suspending or removing an IPA. In 
extraordinary circumstances, the OIG may grant an IPA an extension of 
the time requirements set out in this part.
    (d) Notice of decisions. IPAs shall be given prompt notice of the 
debarring official's decision. A copy of the decision also will be sent 
to the affected recipient. If the debarring official debars, suspends or 
removes an IPA, the decision shall:
    (1) Set forth the finding(s) upon which the decision is based;
    (2) Set forth the effect of the debarment, suspension or removal 
action and the effective dates of the action;

[[Page 524]]

    (3) Refer the IPA to its procedural rights of appeal and 
reconsideration under Sec.  1641.24; and
    (4) Inform the IPA that a copy of the debarring official's decision 
will be a public document and the fact of debarment, suspension or 
removal will be a matter of public record.
    (e) If the debarring official decides that a debarment, suspension, 
or removal is not warranted, the Notice may be withdrawn or the 
proceeding may be otherwise terminated.
    (f) If the debarring official deems it appropriate, the debarring 
official may, at any time, settle by agreement with the IPA a debarment, 
suspension, or removal action. Such a negotiated settlement may include 
the imposition of appropriate conditions on the IPA.



Sec.  1641.23  Exceptions to debarment, suspension and removal.

    Exceptions to the effects of debarment, suspension or removal may be 
available in unique circumstances, when there are compelling reasons to 
use a particular IPA for a specific task. Requests for such exceptions 
may be submitted only by the recipient requiring audit services. The 
Inspector General may except a contract from the effects of debarment, 
suspension or removal upon a written determination that a compelling 
reason exists for using the IPA in the particular instance.



Sec.  1641.24  Appeal and reconsideration of debarring official decisions.

    (a) Appeal and reconsideration generally. A debarred, suspended or 
removed IPA may submit the debarring official's decision for appeal or 
reconsideration in accordance with this section. Within 60 days, IPAs 
shall be given notice of decisions on appeal and reconsideration. The 
relief, if any, granted upon appeal or reconsideration shall be limited 
to the relief stated in the decision on the appeal or reconsideration.
    (b) Appeal. (1) A debarred, suspended or removed IPA may appeal the 
decision to the Inspector General, who may uphold, reverse or modify the 
debarring official's decision.
    (2) The appeal shall be filed in writing:
    (i) By a debarred or removed IPA, within 30 days of receipt of the 
decision;
    (ii) By a suspended IPA, within 15 days of receipt of the decision.
    (3) The Inspector General, at his or her discretion and after 
determining that a compelling reason exists, may stay the effect of the 
debarment, suspension or removal pending conclusion of his or her review 
of the matter.
    (c) Reconsideration. (1) A debarred, suspended or removed IPA may 
submit a request to the debarring official to reconsider the debarment, 
suspension or removal decision, reduce the period of debarment or 
removal, or terminate the suspension.
    (2) Such requests shall be in writing and supported by documentation 
that the requested action is justified by:
    (i) In the case of suspension, reversal of the conviction or civil 
judgment upon which the suspension was based;
    (ii) Newly discovered material evidence;
    (iii) Bona fide change in ownership or management;
    (iv) Elimination of other causes for which the debarment, suspension 
or removal was imposed; or
    (v) Other reasons the debarring official deems appropriate.
    (3) A request for reconsideration of a suspension which was based a 
conviction, civil judgment, or sanction that has been reversed may be 
filed at any time.
    (4) Requests for reconsideration based on other grounds may only be 
filed during the period commencing 60 days after the debarring 
official's decision imposing the debarment or suspension. Only one such 
request may be filed in any twelve month period.
    (5) The debarring official's decision on a request for 
reconsideration is subject to the appeal procedure set forth in 
paragraph (b) of this section.

                          PART 1642 [RESERVED]



PART 1643_RESTRICTION ON ASSISTED SUICIDE, EUTHANASIA, AND MERCY KILLING--
Table of Contents



Sec.
1643.1 Purpose.
1643.2 Definitions.

[[Page 525]]

1643.3 Prohibition.
1643.4 Applicability.
1643.5 Recipient policies and recordkeeping.

    Authority: Pub. L. 105-12; 42 U.S.C. 2996f(b)(11).

    Source: 62 FR 67749, Dec. 30, 1997, unless otherwise noted.



Sec.  1643.1  Purpose.

    This part is intended to ensure that recipients do not use any LSC 
funds for any assisted suicide, euthanasia or mercy killing activities 
prohibited by this part.



Sec.  1643.2  Definitions.

    (a) Assisted suicide means the provision of any means to another 
person with the intent of enabling or assisting that person to commit 
suicide.
    (b) Euthanasia (or mercy killing) is the use of active means by one 
person to cause the death of another person for reasons assumed to be 
merciful, regardless of whether the person killed consents to be killed.
    (c) Suicide means the act or instance of taking one's own life 
voluntarily and intentionally.



Sec.  1643.3  Prohibition.

    No recipient may use LSC funds to assist in, support, or fund any 
activity or service which has a purpose of assisting in, or to bring 
suit or provide any other form of legal assistance for the purpose of:
    (a) Securing or funding any item, benefit, program, or service 
furnished for the purpose of causing, or the purpose of assisting in 
causing, the suicide, euthanasia, or mercy killing of any individual;
    (b) Compelling any person, institution, or governmental entity to 
provide or fund any item, benefit, program, or service for such purpose; 
or
    (c) Asserting or advocating a legal right to cause, or to assist in 
causing, the suicide, euthanasia, or mercy killing of any individual.



Sec.  1643.4  Applicability.

    (a) Nothing in Sec.  1643.3 shall be interpreted to apply to:
    (1) The withholding or withdrawing of medical treatment or medical 
care;
    (2) The withholding or withdrawing of nutrition or hydration;
    (3) Abortion;
    (4) The use of items, goods, benefits, or services furnished for 
purposes relating to the alleviation of pain or discomfort even if they 
may increase the risk of death, unless they are furnished for the 
purpose of causing or assisting in causing death; or
    (5) The provision of factual information regarding applicable law on 
assisted suicide, euthanasia and mercy killing. Nor shall Sec.  1643.3 
be interpreted as limiting or interfering with the operation of any 
other statute or regulation governing the activities listed in this 
paragraph.
    (b) This part does not apply to activities funded with a recipient's 
non-LSC funds.



Sec.  1643.5  Recipient policies and recordkeeping.

    The recipient shall adopt written policies to guide its staff in 
complying with this part and shall maintain records sufficient to 
document the recipient's compliance with this part.



PART 1644_DISCLOSURE OF CASE INFORMATION--Table of Contents



Sec.
1644.1 Purpose.
1644.2 Definitions.
1644.3 Applicability.
1644.4 Case disclosure requirement.
1644.5 Recipient policies and procedures.

    Authority: Pub. L. 105-119, 111 Stat. 2440, Sec. 505; Pub. L. 104-
134, 110 Stat. 1321; 42 U.S.C. 2996g(a).

    Source: 63 FR 33254, June 18, 1994, unless otherwise noted.



Sec.  1644.1  Purpose.

    The purpose of this rule is to ensure that recipients disclose to 
the public and to the Corporation certain information on cases filed in 
court by their attorneys.



Sec.  1644.2  Definitions.

    For the purposes of this part:
    (a) To disclose the cause of action means to provide a sufficient 
description of the case to indicate the type r principal nature of the 
case.

[[Page 526]]

    (b) Recipient means any entity receiving funds from the Corporation 
pursuant to a grant or contract under section 1006(a)(1)(A) of the Act.
    (c) Attorney means any full-time or part-time attorney employed by 
the recipient as a regular or contract employee.



Sec.  1644.3  Applicability.

    (a) The case disclosure requirements of this part apply:
    (1) To actions filed on behalf of plaintiffs or petitioners who are 
clients of a recipient;
    (2) Only to the original filing of a case, except for appeals filed 
in appellate courts by a recipient if the recipient was not the attorney 
of record in the case below and the recipient's client is the appellant;
    (3) To a request filed on behalf of a client of the recipient in a 
court of competent jurisdiction for judicial review of an administrative 
action; and
    (4) To cases filed pursuant to subgrants under 45 CFR part 1627 for 
the direct representation of eligible clients, except for subgrants for 
private attorney involvement activities under part 1614 of this chapter.
    (b) This part does not apply to any cases filed by private attorneys 
as part of a recipient's private attorney involvement activities 
pursuant to part 1614 of this chapter.



Sec.  1644.4  Case disclosure requirement.

    (a) For each case filed in court by its attorneys on behalf of a 
client of the recipient after January 1, 1998, a recipient shall 
disclose, in accordance with the requirements of this part, the 
following information:
    (1) The name and full address of each party to a case, unless:
    (i) the information is protected by an order or rule of court or by 
State or Federal law; or
    (ii) the recipient's attorney reasonably believes that revealing 
such information would put the client of the recipient at risk of 
physical harm;
    (2) The cause of action;
    (3) The name and full address of the court where the case is filed; 
and
    (4) The case number assigned to the case by the court.
    (b) Recipients shall provide the information required in paragraph 
(a) of this section to the Corporation in semiannual reports in the 
manner specified by the Corporation. Recipients may file such reports on 
behalf of their subrecipients for cases that are filed under subgrants. 
Reports filed with the Corporation will be made available by the 
Corporation to the public upon request pursuant to the Freedom of 
Information Act, 5 U.S.C. 552.
    (c) Upon request, a recipient shall make the information required in 
paragraph (a) of this section available in written form to any person. 
Recipients may charge a reasonable fee for mailing and copying 
documents.



Sec.  1644.5  Recipient policies and procedures.

    Each recipient shall adopt written policies and procedures to 
implement the requirements of this part.

                       PARTS 1645	1699 [RESERVED]

[[Page 527]]



 CHAPTER XVII--NATIONAL COMMISSION ON LIBRARIES AND INFORMATION SCIENCE




  --------------------------------------------------------------------
Part                                                                Page
1700            Organization and functions..................         529
1701            Disclosure of information...................         530
1703            Government in the Sunshine Act..............         533
1705            Privacy regulations.........................         538
1706            Enforcement of nondiscrimination on the 
                    basis of handicap in programs or 
                    activities conducted by National 
                    Commission on Libraries and Information 
                    Science.................................         540
1707-1799

 [Reserved]

[[Page 529]]



PART 1700_ORGANIZATION AND FUNCTIONS--Table of Contents



Sec.
1700.1 Purpose.
1700.2 Functions.
1700.3 Membership.
1700.4 Chairperson.
1700.5 Executive Director.

    Authority: 5 U.S.C. 552; 20 U.S.C. 1501 et seq.

    Source: 63 FR 51533, Sept. 28, 1998, unless otherwise noted.



Sec.  1700.1  Purpose.

    The National Commission on Libraries and Information Science 
(NCLIS):
    (a) Advises the President and the Congress on library and 
information services adequate to meet the needs of the people of the 
United States;
    (b) Advises Federal, State, and local governments, and other public 
and private organizations regarding library services and information 
science, including consultations on relevant treaties, international 
agreements, and implementing legislation; and
    (c) Promotes research and development activities to extend and 
improve the nation's library and information handling capabilities as 
essential links in national and international networks.



Sec.  1700.2  Functions.

    The Commission's functions include the following:
    (a) Developing and recommending overall plans for library and 
information services adequate to meet the needs of the people of the 
United States;
    (b) Coordinating, at the Federal, State and local levels, 
implementation of the plans referred to in paragraph (a) of this section 
and related activities;
    (c) Conducting studies, surveys and analyses of, and hearings on, 
the library and informational needs of the Nation, including the special 
needs of rural areas, economically, socially or culturally deprived 
persons and the elderly;
    (d) Evaluating the means by which the needs referred to in paragraph 
(c) of this section may be met through the establishment or improvement 
of information centers and libraries;
    (e) Appraising the adequacies and deficiencies of current library 
and information resources and services; and
    (f) Evaluating current library and information science programs.



Sec.  1700.3  Membership.

    (a) The Commission is composed of the Librarian of Congress, the 
Director of the Institute of Museum and Library Services (who serves as 
an ex officio, nonvoting member), and 14 members appointed by the 
President, by and with the advice and consent of the Senate.
    (b) The President designates one of the members of the Commission as 
the Chairperson.



Sec.  1700.4  Chairperson.

    (a) To facilitate its work, the Commission from time to time 
delegates to the Chairperson various duties and responsibilities.
    (b) The Commission records formal delegation of the duties and 
responsibilities referred to in paragraph (a) of this section in 
resolutions and in the minutes of its meetings.
    (c) The Chairperson may delegate the duties and responsibilities 
referred to in paragraph (a) of this section, as necessary, to other 
Commissioners or the Executive Director of the Commission.



Sec.  1700.5  Executive Director.

    (a) The Executive Director serves as the administrative and 
technical head of the Commission staff, directly responsible for 
managing its day-to-day operations and assuring that Commission 
operations conform to all applicable Federal laws.
    (b) The Executive Director is directly responsible to the 
Commission, works under the general direction of the Chairperson, and 
assists the Chairperson in carrying out the Commission's organizational 
and administrative responsibilities.
    (c) The Executive Director acts as the principal staff advisor to 
the Chairperson and Commissioners, participating with the Commissioners 
in the development, recommendation and implementation of overall plans 
and policies to achieve the Commission's goals.
    (d) To facilitate its work, the Commission from time to time 
delegates to

[[Page 530]]

the Executive Director various duties and responsibilities.
    (e) The Commission records formal delegation of the duties and 
responsibilities referred to in paragraph (d) of this section in 
resolutions and in the minutes of its meetings.
    (f) The Executive Director may delegate the duties and 
responsibilities referred to in paragraph (d) of this section, as 
necessary, to other members of the Commission staff.



PART 1701_DISCLOSURE OF INFORMATION--Table of Contents



Sec.
1701.1 Statement of policy.
1701.2 Disclosure of records and informational materials.
1701.3 Requests.
1701.4 Fees.
1701.5 Prompt response.
1701.6 Form of denial.
1701.7 Appeals.

    Authority: 5 U.S.C. 552, 20 U.S.C. 1501 et seq.



Sec.  1701.1  Statement of policy.

    The records of the National Commission on Libraries and Information 
Science shall be available to the fullest extent possible consistent 
with the terms and policies of 5 U.S.C. section 552 and on request will 
be promptly furnished to any member of the public.

[39 FR 39879, Nov. 4, 1974]



Sec.  1701.2  Disclosure of records and informational materials.

    (a) With the exception of records and materials exempt from 
disclosure pursuant to paragraph (b) of this section, any person in 
accordance with the procedure provided in Sec.  1701.3 may inspect and 
copy any document of the National Commission on Libraries and 
Information Science.
    (b) The provisions of 5 U.S.C. section 552 which require that 
agencies make their records available for public inspection and copying 
do not apply to Commission records which are:
    (1)(i) Specifically authorized under criteria established by an 
Executive Order to be kept secret in the interest of national defense or 
foreign policy and (ii) are in fact properly classified pursuant to such 
Executive Order;
    (2) Related solely to the internal personnel rules and practices of 
the Commission;
    (3) Specifically exempted from disclosure by statute;
    (4) Trade secrets and information which is privileged or which 
relates to the business, personal or financial affairs of any person and 
which is furnished in confidence;
    (5) Inter-agency and intra-agency memoranda or letters which would 
not be available by law to a private party in litigation with the 
Commission;
    (6) Personnel, medical and similar files the disclosure of which 
would constitute a clearly unwarranted invasion of personal privacy;
    (7) Investigatory records compiled for law enforcement purposes, but 
only to the extent that the production of such records 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) 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; 
or
    (9) Geological and geophysical information and data, including maps, 
concerning wells.
    (c) The Commission shall maintain and make available for public 
inspection and copying a current index providing identifying information 
for the public as to any matter issued, adopted, or promulgated by the 
Commission since its creation on July 20, 1970, and required by section 
552(a)(2) of title 5 to be made available or published. However, in 
accordance with 5 U.S.C. 552(a)(4)(A) the Commission deems that 
publication of the index or supplements

[[Page 531]]

thereto would be unnecessary and impracticable. Accordingly, it shall 
provide copies of such index on request but shall not publish and 
distribute it quarterly or more frequently.

[39 FR 39879, Nov. 12, 1974, as amended at 40 FR 7652, Feb. 21, 1975]



Sec.  1701.3  Requests.

    (a) A member of the public may request records from the National 
Commission on Libraries and Information Science by writing to the 
Associate Director, National Commission on Libraries and Information 
Science, Suite 601, 1717 K Street, NW, Washington, DC 20036.
    (b) A request for access to records should reasonably describe the 
records requested such that Commission personnel will be able to locate 
them with a reasonable amount of effort. Where possible, specific 
information regarding dates, titles, file designations, and other 
information which may help identify the records should be supplied by 
the requester.
    (c) Records or materials will be available for inspection and 
copying at the offices of the Commission during the normal business 
hours of regular business days or they may be obtained by mail.

[39 FR 39879, Nov. 12, 1974, as amended at 40 FR 7652, Feb. 21, 1975]



Sec.  1701.4  Fees.

    (a) A fee may be charged for direct costs of document search and 
duplication at the rate of $0.10 per page for copying and $5.00 per hour 
for time expended in identifying and locating records.
    (b) A fee may be waived in whole or in part where it is determined 
that it is in the public interest because furnishing the information can 
be considered as primarily benefiting the general public or where other 
circumstances indicate that a waiver is appropriate.
    (c) The Commission may limit the number of copies of any document 
provided to any person.

[40 FR 7653, Feb. 21, 1975]



Sec.  1701.5  Prompt response.

    (a) Within ten days (excluding Saturdays, Sundays and legal public 
holidays) of the receipt of a request, the Associate Director shall 
determine whether to comply with or deny such request and shall dispatch 
such determination to the requester, unless an extension is made under 
paragraph (c) of this section.
    (b) Only the Associate Director may deny a request and is the 
``person responsible for the denial'' within the meaning of 5 U.S.C. 
552(a). When a denial is made at the behest of another agency, the 
person in that agency responsible for urging the denial may also be a 
``person responsible for the denial'' if he is so advised before the 
Associate Director informs the requester that his request is denied.
    (c) In unusual circumstances as specified in this paragraph, the 
Associate Director may extend the time for the initial determination of 
a request up to a total of ten days (excluding Saturdays, Sundays and 
legal public holidays). Extensions shall be made by written notice to 
the requester setting forth the reason for the extension and the date 
upon which a determination is expected to be dispatched. As used in this 
paragraph ``unusual circumstances'' means, but only to the extent 
necessary to the proper processing of the request--
    (1) The need to search for and collect the requested records from 
field facilities or other establishments that are separate from the 
Commission;
    (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 substantial interest in 
the determination of the request.
    (d) If no determination has been dispatched at the end of the ten-
day period, or the last extension thereof, the requester may deem his 
request denied, and exercise a right of appeal in accordance with Sec.  
1701.7. When no determination can be dispatched within the applicable 
time limit, the Associate Director shall nevertheless continue to

[[Page 532]]

process the request. On expiration of the time limit he shall inform the 
requester of the reason for the delay, of the date on which a 
determination may be expected to be dispatched, and of his rights to 
treat the delay as a denial and appeal to the Executive Director in 
accordance with Sec.  1701.7. He may also ask the requester to forgo 
appeal until a determination is made.

[40 FR 7653, Feb. 21, 1975]



Sec.  1701.6  Form of denial.

    A reply denying a request shall be in writing, signed by the 
Associate Director, and shall include: (a) A specific reference to the 
exemption or exemptions under the Freedom of Information Act authorizing 
the withholding of the record, (b) brief explanation of how the 
exemption(s) applies to the record(s) withheld, (c) a statement that the 
denial may be appealed under Sec.  1701.7 within thirty days by writing 
to the Executive Director, National Commission on Libraries and 
Information Science, Suite 601, 1717 K Street NW., Washington, DC 20036, 
and (d) that judicial review will thereafter be available in the 
district in which the requester resides or has his principal place of 
business, the district in which the agency records are situated, or in 
the District of Columbia.

[40 FR 7653, Feb. 21, 1975]



Sec.  1701.7  Appeals.

    (a) When the Associate Director has denied a request for records in 
whole or in part, the requester may, within thirty days of receipt of 
the letter notifying him of the denial, appeal to the Commission. 
Appeals to the Commission shall be in writing, addressed to the 
Executive Director, National Commission on Libraries and Information 
Science, 1717 K Street NW., Washington, DC 20036.
    (b) The Commission will act upon an appeal within twenty days 
(excepting Saturdays, Sundays or legal public holidays) of its receipt, 
unless an extension is made under paragraph (c) of this section.
    (c) In unusual circumstances as specified in this paragraph, the 
time for action on an appeal may be extended up to ten days (excluding 
Saturdays, Sundays, and legal public holidays) minus any extension 
granted at the initial request level pursuant to Sec.  1701.5(c). Such 
extension shall be made by written notice to the requester setting forth 
the reason for the extension and the date on which a determination is 
expected to be dispatched. As used in this paragraph ``unusual 
circumstances'' means, but only to the extent necessary to the proper 
processing of the appeal--
    (1) The need to search for and collect the requested records from 
field facilities or other establishments that are separate from the 
Commission;
    (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 substantial interest in 
the determination of the request.
    (d) If no determination of the appeal has been dispatched at the end 
of the twenty-day period or the last extension thereof, the requester is 
deemed to have exhausted his administrative remedies, giving rise to a 
right of review in a district court of the United States as specified in 
5 U.S.C. 552(a)(4). When no determination can be dispatched within the 
applicable time limit, the appeal will nevertheless continue to be 
processed. On expiration of the time limit the requester shall be 
informed of the reason for the delay, of the date on which a 
determination may be expected to be dispatched, and of his right to seek 
judicial review in the United States district court in the district in 
which he resides or has his principal place of business, the district in 
which the records are situated, or the District of Columbia. The 
requester may be asked to forgo judicial review until determination of 
the appeal.
    (e) The Commission's determination on appeal shall be in writing. An 
affirmance in whole or in part of a denial on appeal shall include: (1) 
A reference to the specific exemption or exemptions under the Freedom of 
Information Act authorizing the withholding of the record,

[[Page 533]]

    (2) A brief explanation of how the exemption(s) applies to the 
record(s) withheld, and
    (3) A statement that judicial review of the denial is available in 
the district in which the requester resides or has his principal place 
of business, the district in which the agency records are situated, or 
the District of Columbia.

[40 FR 7653, Feb. 21, 1975]



PART 1703_GOVERNMENT IN THE SUNSHINE ACT--Table of Contents



                      Subpart A_General Provisions

Sec.
1703.101 Purpose.
1703.102 Definitions.
1703.103 Applicability and scope.
1703.104 Open meeting policy.

         Subpart B_Procedures Governing Decisions About Meetings

1703.201 Decision to hold meetings.
1703.202 Provisions under which a meeting may be closed.
1703.203 Decision to close meeting.
1703.204 Public availability of recorded vote to close meeting.
1703.205 Public announcement of meeting.
1703.206 Providing information to the public.
1703.207 Change in meeting plans after public announcement.
1703.208 Meetings for extraordinary agency business.
1703.209 Notice of meeting in Federal Register.

                      Subpart C_Conduct of Meetings

1703.301 Meeting place.
1703.302 Role of observers.

                Subpart D_Maintenance of Meeting Records

1703.401 Requirements for maintaining records of closed meetings.
1703.402 Availability of records to the public.
1703.403 Requests for records under Freedom of Information and Privacy 
          Acts.
1703.404 Copying and transcription charges.

                     Subpart E_Administrative Review

1703.501 Administrative Review.

                        Subpart F_Judicial Review

1703.601 Judicial review.

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

    Source: 42 FR 13553, Mar. 11, 1977, unless otherwise noted.



                      Subpart A_General Provisions



Sec.  1703.101  Purpose.

    This part sets forth the regulations under which the Commission 
shall engage in public decision-making processes, make public 
announcement of meetings at which a quorum of or all Commission members 
consider and determine official Commission action, and inform the public 
of which meetings they are entitled to observe.



Sec.  1703.102  Definitions.

    In this part:
    (a) Meeting means the deliberations of a majority of the Commission 
members who have been appointed by the President and confirmed by the 
Senate where such deliberations determine or result in the joint conduct 
of official Commission business.
    (b) Member means one of the Commissioners of the National Commission 
on Libraries and Information Science (NCLIS) who is appointed to that 
position by the President with the advice and consent of the Senate.



Sec.  1703.103  Applicability and scope.

    This part applies to deliberations of a majority of the Commission 
members who have been appointed by the President and confirmed by the 
Senate. Excluded from coverage of this part are deliberations of 
interagency committees whose composition includes Commission members and 
deliberations of Commission officials who are not members; individual 
member's consideration of official agency business circulated to the 
members in writing for disposition or notation; and deliberations by the 
agency in determining whether or not to close a portion or portions of a 
meeting or series of meetings as provided in Sec.  1703.202.



Sec.  1703.104  Open meeting policy.

    The public is entitled to the fullest practicable information 
regarding the decision-making processes of the Commission. Commission 
meetings involving deliberations which determine or result in the joint 
conduct or disposition of official Commission business

[[Page 534]]

are presumptively open to the public. It is the intent of these 
regulations to open such meetings to public observation while protecting 
individuals' rights and the Commission's ability to carry out its 
responsibilities. Meetings or portions of meetings may be closed to 
public observation only if closure can be justified under one of the 
provisions set forth in Sec.  1703.202.



         Subpart B_Procedures Governing Decisions About Meetings



Sec.  1703.201  Decision to hold meeting.

    When Commission members make a decision to hold a meeting, the 
proposed meeting will ordinarily be scheduled for a date no earlier than 
eight days after the decision to allow sufficient time to give 
appropriate public notice. At the time a decision is made to hold a 
meeting, the time, place, and subject matter of the meeting will be 
determined, as well as whether the meeting is to be open or closed to 
the public.



Sec.  1703.202  Provisions under which a meeting may be closed.

    (a) A meeting or portion thereof may be closed to public 
observation, and information pertaining to such meeting may be withheld 
from the public, where the Commission determines that such portion or 
portions of its meeting or 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) Relate solely to the internal personnel rules and practices of 
an agency;
    (3) Disclose matters specifically exempted from disclosure by 
statute (other than section 552 of this title). 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 an agency responsible for the regulation or supervision of 
financial institutions;
    (9) Disclose information the premature disclosure of which would be 
likely to significantly frustrate implementation of a proposed agency 
action, except this subparagraph shall not apply in any instance where 
the agency has already disclosed to the public the content or nature of 
its proposed action, or where the agency 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 agency's issuance of a subpoena, or 
the agency's participation in a civil action or proceeding, an action in 
a foreign court or

[[Page 535]]

international tribunal, or an arbitration, or the initiation, conduct, 
or disposition by the agency of a particular case of formal agency 
adjudication pursuant to the procedures in section 554 of this title or 
otherwise involving a determination on the record after opportunity for 
a hearing.
    (b) The Commission may exercise its authority to open to public 
observation a meeting which could be closed under one of the provisions 
of Sec.  1703.202(a), if it would be in the public interest to do so. 
The Commission will determine whether the discussion comes within one of 
the specific exemptions. If the discussion is determined to be exempt, 
the Commission will consider and determine whether the public interest 
nevertheless requires that the meeting be open.



Sec.  1703.203  Decision to close meeting.

    (a) Commission members may decide before the meeting to close to 
public observation a meeting or portion or portions thereof, or to 
withhold information pertaining to such meeting, only if a majority of 
the members vote on the record to take such action. No proxy votes on 
this action shall be allowed. 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. If a decision is made to 
close a portion or portions of a meeting or a series of meetings, the 
Commission shall prepare a full written explanation of the closure 
action together with a list naming all persons expected to attend the 
meeting and identifying their affiliation.
    (b) For every meeting or portion thereof which Commission members 
have voted to close, the Chairman of NCLIS shall certify that, in his or 
her opinion, the meeting may properly be closed to the public. In 
addition, the Chairman shall state each relevant exemptive provision as 
set forth in Sec.  1703.202(a). A copy of the Chairman's certification, 
together with a statement from the Chairman setting forth the time and 
place of the meeting and listing the persons present, shall be retained 
by the Commission.
    (c) 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.  1703.202 
(a)(5), (6), or (7), the Commission members, upon request of any of the 
Commissioners, shall decide by recorded vote whether to close such 
portion. If a closure decision is made, the Commission shall prepare a 
full written explanation of the closure action together with a list 
naming all persons expected to attend the meeting and identifying their 
affiliation.



Sec.  1703.204  Public availability of recorded vote to close meeting.

    Within one day of any vote taken on a proposal to close a meeting, 
the Commission shall make publicly available a record reflecting the 
vote of each member on the question. In addition, within one day of any 
vote which closes a portion or portions of a meeting to the public, the 
Commission shall make publicly available a full written explanation of 
its closure action together with a list naming all persons expected to 
attend and identifying their affiliation, unless such disclosure would 
reveal the information that the meeting itself was closed to protect.



Sec.  1703.205  Public announcement of meeting.

    (a) Except as provided in Sec. Sec.  1703.207 and 1703.208, the 
Commission shall make a public announcement at least one week before the 
scheduled meeting, to include the following:
    (1) Time, place, and subject matter of the meeting;
    (2) Whether the meeting is to be open or closed; and
    (3) Name and telephone number of agency official who will respond to 
requests for information about the meeting.
    (b) If announcement of the subject matter of a closed meeting would 
reveal the information that the meeting was closed to protect, the 
subject matter shall not be announced.

[[Page 536]]



Sec.  1703.206  Providing information to the public.

    Individuals or organizations interested in obtaining copies of 
information available in accordance with Sec.  1703.204 may request same 
under provisions set forth in Sec. Sec.  1703.402 and 1704.404. 
Individuals or organizations having a special interest in activities of 
the Commission may request the Executive Director to the Commissioners 
to place them on a mailing list for receipt of information available 
under Sec.  1703.205. The Commission shall provide information to 
publications whose readers are likely to have a special interest in the 
work of the Commission.



Sec.  1703.207  Change in meeting plans after public announcement.

    (a) Following public announcement of a meeting, the time or place of 
a meeting may be changed only if the change is announced publicly at the 
earliest practicable time.



Sec.  1703.208  Meetings for extraordinary agency business.

    Where agency business so requires, Commission members may decide by 
majority, recorded vote to schedule a meeting for a date earlier than 
eight days after the decision. Such a decision would obviate the general 
requirement for a public announcement at least one week before the 
scheduled meeting. At the earliest practicable time, however, the 
Commission will announce publicly the time, place, and subject matter of 
the meeting, whether the meeting is to be open or closed, and the name 
and telephone number of an agency official who will respond to requests 
for information about the meeting.



Sec.  1703.209  Notice of meeting in Federal Register.

    Immediately following each public announcement required by this 
subpart, the following information, as applicable, shall be submitted 
for publication in the Federal Register:
    (a) Notice of the time, place, and subject matter of a meeting;
    (b) Whether the meeting is open or closed;
    (c) Any change in one of the preceding; and
    (d) The name and telephone number of an agency official who will 
respond to requests for information about the meeting.



                      Subpart C_Conduct of Meetings



Sec.  1703.301  Meeting place.

    Meetings will be held in meeting rooms designated in the public 
announcement. Whenever the number of observers is greater than can be 
accommodated in the meeting room designated, every reasonable effort 
will be made to provide alternative facilities.



Sec.  1703.302  Role of observers.

    The public may attend open meetings for the sole purpose of 
observation and may not record any of the discussions by means of 
electronic or other devices or cameras unless approved in advance by the 
Executive Committee of the Commission. Observers may not participate in 
meetings unless expressly invited or create distractions to interfere 
with the conduct and disposition of Commission business. Such 
participation or attempted participation shall be cause for removal of 
any person so engaged at the discretion of the presiding member of the 
Commission. When meetings are partially closed, observers will leave the 
meeting room promptly upon request so that discussion, of matters exempt 
under provisions of subpart B of this part, Sec.  1703.202, may take 
place expeditiously.



                Subpart D_Maintenance of Meeting Records



Sec.  1703.401  Requirements for maintaining records of closed meetings.

    (a) A record of each meeting or portion thereof which is closed to 
the public must be made and retained for two years or for one year after 
the conclusion of the Commission proceeding involved in the meeting. The 
record of any portion of a meeting closed to the public shall be a 
transcript or electronic recording.
    (b) When minutes are produced, such minutes shall fully and clearly 
describe all matters discussed, and will provide a full and accurate 
summary of any actions taken and the reasons expressed

[[Page 537]]

therefor. The minutes must also reflect the vote of each member on any 
roll call vote taken during the proceedings and identify all documents 
produced at the meeting.
    (c) The following documents produced under provisions of paragraph 
(b) of this section shall be retained by the agency as part of the 
minutes of the meeting:
    (1) Certification by the Chairman that the meeting may properly be 
closed; and
    (2) Statement from the presiding officer of the meeting setting 
forth the date, time and place of the meeting and listing the persons 
present.



Sec.  1703.402  Availability of records to the public.

    (a) The Commission shall make promptly available to the public the 
minutes maintained as a record of a closed meeting, except for such 
information as may be withheld under one of the provisions of Sec.  
1703.202(a) of this report. Copies of such minutes, disclosing the 
identity of each speaker, shall be furnished to any person at the actual 
cost of duplication or transcription.
    (b) The nonexempt part of the minutes shall be in the official 
custody of the Executive Director of the Commission. Appropriate 
facilities will be made available to any persons who make a request to 
review these records.
    (c) Requests for copies of nonexempt parts of minutes, shall be 
directed to the Executive Director of the Commission. Such requests 
shall identify the records being sought and include a statement that 
whatever costs are involved in furnishing the records will be acceptable 
or, alternatively, that costs will be acceptable up to a specified 
amount.



Sec.  1703.403  Requests for records under Freedom of Information 
and Privacy Acts.

    Requests to review or obtain copies of records other than the 
minutes of a meeting will be processed under the Freedom of Information 
Act (5 U.S.C. 552) or, where applicable, the Privacy Act (5 U.S.C. 
552a).



Sec.  1703.404  Copying and transcription charges.

    (a) The Commission will charge fees for furnishing records at the 
rate of ten cents per page for photocopies and at the actual cost of 
transcription. When the anticipated charges exceed $50, a deposit of 20 
percent of the amount anticipated must be made within 30 days. Requested 
information will not be released until the deposit is received. Fees 
shall be paid by check or money order made payable to the National 
Commission on Libraries and Information Science.
    (b) The Executive Director of the Commission has the discretion to 
waive charges whenever release of the copies is determined to be in the 
public interest.



                     Subpart E_Administrative Review



Sec.  1703.501  Administrative Review.

    Any person who believes a Commission action governed by this part to 
be contrary to the provisions of this part may file an objection in 
writing with the Executive Director to the Commissioners. Wherever 
possible, the Executive Director will respond within two working days to 
objections concerning decisions to close meetings or portions thereof. 
Responses to objections concerning matters other than closed meetings 
will be made within ten working days.



                        Subpart F_Judicial Review



Sec.  1703.601  Judicial review.

    Any person may bring an action in a United States District Court to 
challenge or enforce the provisions of this part or the manner of their 
implementation. Such action may be brought prior to or within sixty days 
after the meeting in question, except that if proper public announcement 
of the meeting is not made, the action may be instituted at any time 
within sixty days after such announcement is made. An action may be 
brought where the Commission meeting was or is to be held or in the 
District of Columbia.

[[Page 538]]



PART 1705_PRIVACY REGULATIONS--Table of Contents



Sec.
1705.1 Purpose and scope.
1705.2 Definitions.
1705.3 Procedures for requests pertaining to individual records in the 
          D/AC File.
1705.4 Times, places, and requirements for identification of individuals 
          making requests.
1705.5 Disclosure of requested information to individuals.
1705.6 Request for correction or amendment to the record.
1705.7 Agency review of request for correction or amendment of the 
          record.
1705.8 Appeal of an initial adverse agency determination on correction 
          or amendment of the record.
1705.9 Disclosure of record to a person other than the individual to 
          whom the record pertains.
1705.10 Fees.
1705.11 Penalties.
1705.12 Exemptions.

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

    Source: 43 FR 47195, Oct. 13, 1978, unless otherwise noted.



Sec.  1705.1  Purpose and scope.

    These procedures provide the means by which individuals may 
safeguard their privacy by obtaining access to, and requesting 
amendments or corrections in, information, if any, about these 
individuals which is contained in the White House Conference Delegate/
Alternate Certification File (D/AC File), which is under the control of 
the National Commission on Libraries and Information Science (hereafter, 
the Commission).



Sec.  1705.2  Definitions.

    For the purpose of these procedures:
    (a) The term individual means a citizen of the United States or an 
alien lawfully admitted for permanent residence;
    (b) The term maintain includes maintain, collect, use or 
disseminate;
    (c) The term record means any item or set of items about an 
individual that is maintained by the Commission in either hard copy or 
computerized form, including name, residence and other information 
obtained from the form, ``Certification of State/Territorial Delegates/
Alternates to the White House Conference on Library and Information 
Services.''
    (d) 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.



Sec.  1705.3  Procedures for requests pertaining to individual records 
in the D/AC File.

    (a) An individual who wishes to know whether the D/AC File contains 
a record pertaining to him or her shall submit a written request to that 
effect to the System Manager at the Commission. The System Manager 
shall, within 10 days of receipt of such submission, inform the 
individual whether the D/AC File contains such a record.
    (b) An individual who desires access to any identified record shall 
file a request therefor addressed to the System Manager indicating 
whether such individual intends to appear in person at the Commission's 
offices or whether he or she desires to receive a copy of any identified 
record through the mail.



Sec.  1705.4  Times, places, and requirements for identification 
of individuals making requests.

    (a) An individual who, in accord with Sec.  1705.3(b) indicated that 
he or she would appear personally shall do so at the Commission's 
offices, 1717 K Street NW., Suite 601, Washington, DC, between the hours 
of 8:30 a.m. and 4 p.m. Monday through Friday (legal holidays excluded) 
and present either: (1) The response from the System Manager indicating 
that such a record exists; or
    (2) A copy of the executed certification form, as well as another 
suitable form of identification, such as a valid drivers license or 
equivalent.
    (b) In response to a request for mail delivery, the Commission will 
mail only to the home address appearing in the D/AC File a copy of the 
record for that individual within 10 working days.



Sec.  1705.5  Disclosure of requested information to individuals.

    Upon verification of identity, the System Manager shall disclose to 
the individual: (a) The information contained in the record which 
pertains to that individual; and (b) the accounting

[[Page 539]]

of disclosures of the record, if any, required by 5 U.S.C. 552a(c).



Sec.  1705.6  Request for correction or amendment to the record.

    If a person wishes a change to be made in the record, he or she 
should follow the procedures for making changes which are included in 
the instructions accompanying the certification form by which the 
information was obtained. Copies of these instructions will be mailed to 
any delegate/alternate upon request.



Sec.  1705.7  Agency review of request for correction or amendment 
of the record.

    Within 10 days of the receipt of the request to correct or to amend 
the record, the System Manager will acknowledge in writing such receipt 
and promptly either: (a) Make any correction or amendment of any portion 
thereof which the individual believes is not accurate, relevant, timely, 
or complete and inform the individual of same: or
    (b) Inform the individual of his or her refusal to correct or amend 
the record in accordance with the request, the reason for the refusal, 
and the procedures established by the Commission for the individual to 
request a review of that refusal.



Sec.  1705.8  Appeal of an initial adverse agency determination on correction 
or amendment of the record.

    An individual who disagrees with the refusal of the System Manager 
to correct or to amend his or her record may submit a request for review 
of such refusal to the Chairman of the Commission, 1717 K Street NW., 
Suite 601, Washington, DC 20036. The Chairman will, not later than 30 
days from the date on which the individual requests such review, 
complete such review and make a final determination unless, for good 
cause shown, the Chairman extends such 30-day period. If, after his or 
her review, the Chairman also refuses to correct or to amend the record 
in accordance with the request, the individual may file with the 
Commission a concise statement setting forth the reasons for his or her 
disagreement with the refusal of the Commission and may seek judicial 
review of the Chairman's determination under 5 U.S.C. 552a(g)(1)(A).



Sec.  1705.9  Disclosure of record to a person other than the individual 
to whom the record pertains.

    An individual to whom a record is to be disclosed in person may have 
a person of his or her own choosing accompany the individual when the 
record is disclosed.



Sec.  1705.10  Fees.

    (a) The Commission will not charge an individual for the costs of 
making a search for a record or the costs of reviewing the record. When 
the Commission makes a copy of a record as a necessary part of the 
process of disclosing the record to an individual, the Commission will 
not charge the individual for the cost of making that copy.
    (b) If an individual requests the Commission to furnish him or her 
with a copy of the record (when a copy has not otherwise been made as a 
necessary part of the process of disclosing the record to the 
individual) the Commission will charge a fee of $0.25 per page (maximum 
per page dimension of 8\1/2\ by 13 inches) to the extent that the 
request exceeds $5 in cost to the Commission. Requests not exceeding $5 
in cost to the Commission will be met without cost to the requester.



Sec.  1705.11  Penalties.

    Title 18 U.S.C. 1001, Crimes and Criminal Procedures, makes it a 
criminal offense, subject to a maximum fine of $10,000 or imprisonment 
for not more than 5 years or both to knowingly and willfully make or 
cause to be made any false or fraudulent statements or representations 
in any matter within the jurisdiction of any agency of the United 
States. Section 552a(i)(3) of the Privacy Act (5 U.S.C. 552a(i)(3)), 
makes it a misdemeanor, subject to a maximum fine of $5,000, to 
knowingly and willfully request or obtain any record concerning an 
individual under false pretenses. Section 552a(i) (1) and (2) of the 
Privacy Act (5 U.S.C. 552a(i)(1) and (2)) provide penalties for 
violations by agency employees of the Privacy Act or regulations 
established thereunder.

[[Page 540]]



Sec.  1705.12  Exemptions.

    No Commission records system is exempted from the provisions of 5 
U.S.C. 552a as permitted under certain conditions by 5 U.S.C. 552a (j) 
and (k).



  PART 1706_ENFORCEMENT OF NONDISCRIMINATION ON THE BASIS OF HANDICAP 
  IN PROGRAMS OR ACTIVITIES CONDUCTED BY NATIONAL COMMISSION ON LIBRARIES 
  AND INFORMATION SCIENCE--Table of Contents



Sec.
1706.101 Purpose.
1706.102 Application.
1706.103 Definitions.
1706.104-1706.109 [Reserved]
1706.110 Self-evaluation.
1706.111 Notice.
1706.112-1706.129 [Reserved]
1706.130 General prohibitions against discrimination.
1706.131-1706.139 [Reserved]
1706.140 Employment.
1706.141-1706.148 [Reserved]
1706.149 Program accessibility: Discrimination prohibited.
1706.150 Program accessibility: Existing facilities.
1706.151 Program accessibility: New construction and alterations.
1706.152-1706.159 [Reserved]
1706.160 Communications.
1706.161-1706.169 [Reserved]
1706.170 Compliance procedures.
1706.171-1706.999 [Reserved]

    Authority: 29 U.S.C. 794.

    Source: 51 FR 4578, 4579, Feb. 5, 1986, unless otherwise noted.



Sec.  1706.101  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.  1706.102  Application.

    This part applies to all programs or activities conducted by the 
agency.



Sec.  1706.103  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:
    (l) 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

[[Page 541]]

    (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 subparagraph (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.  1706.140.
    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, 4579, Feb. 5, 1986; 51 FR 7543, Mar. 5, 1986]



Sec. Sec.  1706.104-1706.109  [Reserved]



Sec.  1706.110  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.  1706.111  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

[[Page 542]]

of the protections against discrimination assured them by section 504 
and this regulation.



Sec. Sec.  1706.112-1706.129  [Reserved]



Sec.  1706.130  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.
    (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.



Sec. Sec.  1706.131-1706.139  [Reserved]



Sec.  1706.140  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

[[Page 543]]

Commission in 29 CFR part 1613, shall apply to employment in federally 
conducted programs or activities.



Sec. Sec.  1706.141-1706.148  [Reserved]



Sec.  1706.149  Program accessibility: Discrimination prohibited.

    Except as otherwise provided in Sec.  1706.150, 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.  1706.150  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.  1706.150(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.
    (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--

[[Page 544]]

    (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, 4579, Feb. 5, 1986; 51 FR 7543, Mar. 5, 1986]



Sec.  1706.151  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.



Sec. Sec.  1706.152-1706.159  [Reserved]



Sec.  1706.160  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.  1706.160 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.



Sec. Sec.  1706.161-1706.169  [Reserved]



Sec.  1706.170  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.

[[Page 545]]

    (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 Deputy Director shall be responsible for coordinating 
implementation of this section. Complaints may be sent to Deputy 
Director, National Commission on Libraries and Information Science, 
Suite 3122, GSA-ROB 3, Washington, DC 20024.
    (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.  1706.170(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, 4579, Feb. 5, 1986, as amended at 51 FR 4578, Feb. 5, 1986]



Sec. Sec.  1706.171-1706.999  [Reserved]

                       PARTS 1707	1799 [RESERVED]

[[Page 547]]



          CHAPTER XVIII--HARRY S. TRUMAN SCHOLARSHIP FOUNDATION




  --------------------------------------------------------------------
Part                                                                Page
1800            Privacy Act of 1974.........................         549
1801            Harry S. Truman Scholarship Program.........         550
1802            Public meeting procedures of the board of 
                    trustees................................         557
1803            Nondiscrimination on the basis of handicap..         561
1804-1899

 [Reserved]

[[Page 549]]



PART 1800_PRIVACY ACT OF 1974--Table of Contents



Sec.
1800.1 Purpose and scope.
1800.2 Definitions.
1800.3 Procedures for requests for access to individual records in a 
          record system.
1800.4 Times, places, and requirements for the identification of the 
          individual making a request.
1800.5 Access to requested information to the individual.
1800.6 Request for correction or amendment to the record.
1800.7 Agency review of request for correction or amendment of the 
          record.
1800.8 Appeal of an initial adverse agency determination on correction 
          or amendment of the record.
1800.9 Disclosure of record to a person other than the individual to 
          whom the record pertains.
1800.10 Fees.

    Authority: 5 U.S.C. 552a; Pub. L. 93-579.

    Source: 41 FR 52677, Dec. 1, 1976, unless otherwise noted.



Sec.  1800.1  Purpose and scope.

    The purposes of these regulations are to:
    (a) Establish a procedure by which an individual can determine if 
the Harry S. Truman Scholarship Foundation (hereafter known as the 
Foundation) maintains a system of records which includes a record 
pertaining to the individual; and
    (b) Establish a procedure by which an individual can gain access to 
a record pertaining to him or her for the purpose of review, amendment 
and/or correction.



Sec.  1800.2  Definitions.

    For the purpose of these regulations--
    (a) The term individual means a citizen of the United States or an 
alien lawfully admitted for permanent residence;
    (b) The term maintain includes maintain, collect, use or 
disseminate;
    (c) The term record means any item, collection or grouping of 
information about an individual that is maintained by the Foundation, 
including, but not limited to, his or her employment history, payroll 
information, and financial transactions and that contains his or her 
name, or the identifying number, symbol, or other identifying particular 
assigned to the individual, such as social security number;
    (d) The term system of records means a group of any records under 
the control of the Foundation 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; and
    (e) 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.



Sec.  1800.3  Procedures for requests for access to individual records 
in a record system.

    An individual shall submit a request to the Deputy Executive 
Secretary of the Foundation to determine if a system of records named by 
the individual contains a record pertaining to the individual. The 
individual shall submit a request to the Deputy Executive Secretary of 
the Foundation which states the individual's desire to review his or her 
record.



Sec.  1800.4  Times, places, and requirements for the identification 
of the individual making a request.

    An individual making a request to the Deputy Executive Secretary of 
the Foundation pursuant to Sec.  1800.3 shall present the request at the 
Foundation offices, 712 Jackson Place, NW., Washington, DC 20006, on any 
business day between the hours of 9 a.m. and 5 p.m. The individual 
submitting the request should present himself or herself at the 
Foundation's offices with a form of identification which will permit the 
Foundation to verify that the individual is the same individual as 
contained in the record requested.



Sec.  1800.5  Access to requested information to the individual.

    Upon verification of identity the Foundation shall disclose to the 
individual the information contained in the record which pertains to 
that individual.

[[Page 550]]



Sec.  1800.6  Request for correction or amendment to the record.

    The individual should submit a request to the Deputy Executive 
Secretary of the Foundation which states the individual's desire to 
correct or to amend his or her record. This request is to be made in 
accord with the provisions of Sec.  1800.4.



Sec.  1800.7  Agency review of request for correction or amendment 
of the record.

    Within ten working days of the receipt of the request to correct or 
to amend the record, the Deputy Executive Secretary of the Foundation 
will acknowledge in writing such receipt and promptly either--
    (a) Make any correction or amendment of any portion thereof which 
the individual believes is not accurate, relevant, timely, or complete; 
or
    (b) Inform the individual of his or her refusal to correct or to 
amend the record in accordance with the request, the reason for the 
refusal, and the procedures established by the Foundation for the 
individual to request a review of that refusal.



Sec.  1800.8  Appeal of an initial adverse agency determination on correction 
or amendment of the record.

    An individual who disagrees with the refusal of the Deputy Executive 
Secretary of the Foundation to correct or to amend his or her record may 
submit a request for a review of such refusal to the Executive 
Secretary, Harry S. Truman Scholarship Foundation, 712 Jackson Place, 
NW., Washington, DC 20006. The Executive Secretary will, not later than 
thirty working days from the date on which the individual requests such 
review, complete such review and make a final determination unless, for 
good cause shown, the Executive Secretary extends such thirty day 
period. If, after his or her review, the Executive Secretary also 
refuses to correct or to amend the record in accordance with the 
request, the individual may file with the Foundation a concise statement 
setting forth the reasons for his or her disagreement with the refusal 
of the Foundation and may seek judicial review of the Executive 
Secretary's determination under 5 U.S.C. 552a(g)(1)(A).



Sec.  1800.9  Disclosure of record to a person other than the individual 
to whom the record pertains.

    The Foundation will not disclose a record to any individual other 
than to the individual to whom the record pertains without receiving the 
prior written consent of the individual to whom the record pertains, 
unless the disclosure has been listed as a ``routine use'' in the 
Foundation's notices of its systems of records.



Sec.  1800.10  Fees.

    If an individual requests copies of his or her record, he or she 
shall be charged ten cents per page, excluding the cost of any search 
for review of the record, in advance of receipt of the pages.



PART 1801_HARRY S. TRUMAN SCHOLARSHIP PROGRAM--Table of Contents



                            Subpart A_General

Sec.
1801.1 Annual Truman Scholarship competition.
1801.2 Truman Scholars are selected from qualified applicants from each 
          State.
1801.3 Students eligible for nomination.
1801.4 Definitions.

                          Subpart B_Nominations

1801.10 Nomination by institution of higher education.
1801.11 Annual nomination.
1801.12 Institutions with more than one campus.
1801.13 Two-year institutions.
1801.14 Faculty Representative.
1801.15 Submission of application to the Foundation.
1801.16 Closing date for receipt of nominations.
1801.17 Contents of application.
1801.18 Limitations on nominations.

                        Subpart C_The Competition

1801.20 Selection of finalists.
1801.21 Evaluation criteria.
1801.22 Interview of finalists with panel.
1801.23 Recommendation by panel.
1801.24 Selection of Truman Scholars by the Foundation.

[[Page 551]]

                        Subpart D_Graduate Study

1801.30 Continuation into graduate study.
1801.31 Approval of graduate programs by the Foundation.
1801.32 Eligible institutions and degree programs.

              Subpart E_Payments to finalists and Scholars

1801.40 Travel expenses of finalists.
1801.41 Scholarship stipends.
1801.42 Definition of ``fee''.
1801.43 Allowance for books.
1801.44 Allowance for room and board.
1801.45 Deduction for benefits from other sources.

               Subpart F_Payment Conditions and Procedures

1801.50 Acceptance of the scholarship.
1801.51 Report at the beginning of each term.
1801.52 Payment schedule.
1801.53 Postponement of payment.
1801.54 Annual report.

                    Subpart G_Duration of Scholarship

1801.60 Renewal of scholarship.
1801.61 Termination of scholarship.
1801.62 Recovery of scholarship funds.
1801.63 Scholar Accountability.

    Authority: Pub. L. 93-642, 88 Stat. 2276 (20 U.S.C. 2001-2012).

    Source: 65 FR 81405, Dec. 26, 2000, unless otherwise noted.



                            Subpart A_General



Sec.  1801.1  Annual Truman Scholarship competition.

    Each year, the Harry S. Truman Scholarship Foundation carries out a 
nationwide competition to select students to be Truman Scholars.



Sec.  1801.2  Truman Scholars are selected from qualified applicants 
from each State.

    (a) At least one Truman Scholar is selected each year from each 
State in which there is a resident applicant who meets minimum 
eligibility criteria as established by the Foundation. These minimum 
eligibility criteria are stated in Sec. Sec.  1801.3, 1801.21 and 
1801.23.
    (b) As used in this part, State means each of the States, the 
District of Columbia, the Commonwealth of Puerto Rico, and considered as 
a single entity: Guam, the Virgin Islands, American Samoa, and the 
Commonwealth of the Northern Mariana Islands (The Islands).



Sec.  1801.3  Students eligible for nomination.

    A student is eligible to be nominated for a Truman Scholarship if he 
or she:
    (a) Is a junior-level student pursuing a bachelor's degree as a 
full-time student at an accredited institution of higher education and 
will receive a baccalaureate degree the following academic year; or, is 
a full-time senior level student from the Commonwealth of Puerto Rico or 
from The Islands;
    (b) Has an undergraduate field of study that permits admission to a 
graduate program leading to a career in public service;
    (c) Ranks in the upper quarter of his or her class; and
    (d) Is a U.S. citizen, a U.S. national, or a permanent resident of 
the Commonwealth of the Northern Mariana Islands.



Sec.  1801.4  Definitions.

    As used in this part:
    Academic year means the period of time, typically 8 or 9 months in 
which a full-time student would normally complete two semesters, three 
quarters, or the equivalent.
    Foundation means the Harry S. Truman Scholarship Foundation.
    Full-time student means a student who is carrying a sufficient 
number of credit hours or their equivalent to secure the degree or 
certificate toward which he or she is working, in no more time than the 
length of time normally taken at his or her institution.
    Graduate study means the courses of study beyond the baccalaureate 
level which lead to an advanced degree.
    Institution means an institution of higher education. ``Institution 
of higher education'' has the meaning given in section 1201(a) of the 
Higher Education Act of 1965 (20 U.S.C. 1141 (a)).
    Junior means a student who, following completion of the current 
academic year, has one more year of full-time course work to receive a 
baccalaureate degree.

[[Page 552]]

    President means the principal official responsible for the overall 
direction of the operations of an institution.
    Public service means employment in: government at any level, the 
uniformed services, public interest organizations, non-governmental 
research and/or educational organizations, public and private schools, 
and public service oriented non-profit organizations such as those whose 
primary purposes are to help needy or disadvantaged persons or to 
protect the environment.
    Resident means a person who has legal residence in the State, 
recognized under State law. If a question arises concerning the State of 
residence, the Foundation determines, for the purposes of this program 
of which State the person is a resident, taking into account place of 
registration to vote, family's place of residence, home address listed 
for school registration, and eligibility for ``in-State'' tuition rates 
at public institutions of higher education.
    Scholar means a person who has been selected by the Foundation as a 
Truman Scholar, has accepted the Scholarship and agreed to the 
conditions of the award, and is eligible for Scholarship stipend(s).
    Senior means a student who is in his or her last year of study 
before receiving a baccalaureate degree.
    Term means the period which the institution uses to divide its 
academic year: semester, trimester, or quarter.



                          Subpart B_Nominations



Sec.  1801.10  Nomination by institution of higher education.

    To be considered in the competition a student must be nominated by 
the institution that he or she attends.



Sec.  1801.11  Annual nomination.

    (a) Except as provided in Sec. Sec.  1801.11 (b), 1801.12, and 
1801.24, each institution may nominate up to four students annually. 
Additionally, a four-year institution may nominate up to three currently 
enrolled juniors who completed their first two college years at a two-
year institution. Nominees may have legal residence in the same State as 
the institution or in different States.
    (b) The Foundation may announce each year in its Bulletin of 
Information or on its website (http://www.truman.gov) special 
circumstances under which an institution may nominate additional 
candidates.
    (c) All nominations must be made by the President of the institution 
or the designated Faculty Representative.



Sec.  1801.12  Institutions with more than one campus.

    If an institution has more than one component separately listed in 
the current edition of the Directory of Postsecondary Institutions 
published by the U.S. Department of Education, each component will be 
considered to be a separate institution under this regulation, and each 
may nominate up to four students. However, a component that is organized 
solely for administrative purposes and has no students may not nominate 
a student.



Sec.  1801.13  Two-year institutions.

    If an institution does not offer education beyond the sophomore 
level, the institution may nominate only students who have completed two 
years at that institution and who are currently enrolled as full-time 
juniors at accredited four-year institutions. Faculty Representatives at 
two-year institutions may submit the materials directly to the 
Foundation or they may forward the nomination materials to the Faculty 
Representative of the four-year institution attended by the nominee.



Sec.  1801.14  Faculty Representative.

    (a) Each institution which nominates a student must give the 
Foundation the name, business address, and business telephone number of 
a member of the faculty or administrator who will serve as liaison 
between the institution and the Foundation.
    (b) The Faculty Representative is responsible for a timely 
submission of all nominations and supporting documentation.
    (c) The Foundation delegates the responsibility to the Faculty 
Representative to establish a process to publicize the scholarship, 
recruit candidates, select nominees, and assist nominees.

[[Page 553]]



Sec.  1801.15  Submission of application to the Foundation.

    To nominate a student for the competition, the Faculty 
Representative must submit the completed nomination packet to the 
Foundation as provided in Sec.  1801.16. The Foundation does not accept 
nominations packets directly from students.



Sec.  1801.16  Closing date for receipt of nominations.

    The Foundation announces in its Bulletin of Information and in the 
Federal Register and posts on its website (http://www.truman.gov) the 
date and address at which the Foundation must receive nominations. 
Nominations not received by this date at the address specified will not 
be considered.



Sec.  1801.17  Contents of application.

    (a) The Foundation provides a form that must be used as the 
application.
    (b) Each application must include the following:
    (1) A certification of nomination and eligibility signed by the 
Faculty Representative;
    (2) A completed Truman Scholarship Application signed by the 
nominee;
    (3) A policy proposal written by the nominee;
    (4) A current official college transcript; and
    (5) A letter of nomination from the Faculty Representative and three 
letters of recommendation.



Sec.  1801.18  Limitations on nominations.

    A candidate nominated by an institution and not selected as a Truman 
Scholar may not be renominated the following year.



                        Subpart C_The Competition



Sec.  1801.20  Selection of Finalists.

    The Foundation selects Finalists from the students who are 
nominated.



Sec.  1801.21  Evaluation criteria.

    (a) The Foundation appoints a committee to select finalists from the 
students nominated on the basis of the following criteria:
    (1) Extent and quality of community service and government 
involvement;
    (2) Leadership record;
    (3) Academic performance and writing and analytical skills; and
    (4) Suitability of the nominee's proposed program of study and its 
appropriateness for a leadership career in public service.
    (b) The Foundation selects Finalists solely on the basis of the 
information required under Sec.  1801.17.



Sec.  1801.22  Interview of Finalists with panel.

    The Foundation invites each Finalist to an interview with a regional 
review panel. Panels evaluate Truman Finalists primarily on:
    (a) Leadership potential and communication skills;
    (b) Likelihood of ``making a difference'' in public service; and
    (c) Intellectual strength, analytical abilities, and prospects of 
performing well in graduate school.



Sec.  1801.23  Recommendation by panel.

    (a) Each Panel is asked to recommend to the Board of Trustees the 
name of one candidate from each state in the region to be appointed as a 
Truman Scholar. The Foundation may authorize each regional review panel 
to recommend additional Scholars from the States in its region.
    (b) A panel's recommendations are based on the material required 
under Sec.  1801.17 and, as determined in the interview, the panel's 
assessment of each Finalist in terms of criteria presented in Sec.  
1801.22.
    (c) In the event that a regional review panel determines that none 
of the Finalists from a state meets all the requirements expected of a 
Truman Scholar, it does not provide a recommendation. The Foundation 
will carry over the Scholarship for that state making two Scholarships 
available the following year.



Sec.  1801.24  Selection of Truman Scholars by the Foundation.

    The Foundation names Truman Scholars after receiving recommendations 
from the regional review panels.

[[Page 554]]



                        Subpart D_Graduate Study



Sec.  1801.30  Continuation into graduate study.

    (a) Only Scholars who satisfactorily complete their undergraduate 
education and who comply with Sec.  1801.31 shall be eligible for 
continued Foundation support for an approved program of graduate study.
    (b) The Foundation does not conduct a competition for graduate 
scholarships and does not add new Truman Scholars at the graduate level.



Sec.  1801.31  Approval of graduate programs by the Foundation.

    (a) By December 1, Scholars desiring Foundation support for graduate 
study the following academic year must submit a proposed program of 
graduate study to the Foundation for approval. The graduate program 
proposed for approval may differ from that proposed by the Scholar when 
nominated for a Truman Scholarship. Factors to be used by the Foundation 
in considering approval include being consistent with:
    (1) Field of study initially proposed in the Scholar's Application;
    (2) Graduate school programs given priority in the current Bulletin 
of Information;
    (3) Undergraduate educational program and work experience of the 
Scholar; and
    (4) Preparation specifically for a career in public service.
    (b) Foundation approval in writing of the Scholar's proposal is 
required before financial support is granted for graduate work.
    (c) Scholars must include in their submission to the Foundation a 
statement of interest in a career in public service that specifies in 
detail how their graduate program and their overall educational and work 
experience plans will realistically prepare them for their chosen career 
goal in government or elsewhere in public service.
    (d) After completing his or her undergraduate studies, a Scholar 
each year may request in writing a deferral of support for graduate 
studies. Deferrals must be requested no later than June 15 for the 
succeeding academic year. Scholars failing to request a year's deferral 
and to receive written approval from the Foundation may lose one year of 
funding support for each year for which they fail to request and receive 
deferrals. Total deferrals may not exceed four years unless an extension 
is granted in writing by the Foundation.



Sec.  1801.32  Eligible institutions and degree programs.

    (a) Truman Scholars at the graduate level may use Foundation support 
to study at any accredited college or university in the United States or 
abroad that offers graduate study appropriate and relevant to their 
public service career goals.
    (b) They may enroll in any relevant graduate program for a career in 
public service.
    (c) Foundation support for graduate study is restricted to three 
years of full-time study.



              Subpart E_Payments to Finalists and Scholars



Sec.  1801.40  Travel expenses of finalists.

    The Foundation will provide partial funding for intercity round-trip 
transportation from the finalist's nominating institution to the 
interview site. The Foundation does not reimburse finalists for lodging, 
meals, local transportation, or other expenses. The Foundation announces 
the terms and conditions of support on its website (http://
www.truman.gov) and in the Bulletin of Information.



Sec.  1801.41  Scholarship stipends.

    The Scholarship stipend may be used only for eligible expenses in 
the following categories: tuition, fees, books, and room and board. 
Payments from the Foundation may be received to supplement, but not to 
duplicate, benefits received by the Scholar from the educational 
institution or from other foundations or organizations. The designated 
benefits received from all sources combined may not exceed the costs of 
tuition, fees, books, and room and board as determined by the 
Foundation. The Foundation's Bulletin of Information, current at the 
time of the Scholar's selection, contains additional information about 
the terms and conditions of scholarship support.

[[Page 555]]



Sec.  1801.42  Definition of ``fee''.

    As used in this part, fee means a typical and usual non-refundable 
charge by the institution for a service, a privilege, or the use of 
property which is required for a Scholar's enrollment and registration.



Sec.  1801.43  Allowance for books.

    The cost allowance for a Scholar's books is $1000 per year, or such 
higher amount published on the Foundation's website (http://
www.truman.gov).



Sec.  1801.44  Allowance for room and board.

    The cost allowed for a Scholar's room and board is the amount the 
institution reports to the Foundation as the average cost of room and 
board for the Scholar's institution, given the type of housing the 
Scholar occupies.



Sec.  1801.45  Deduction for benefits from other sources.

    The cost allowed for a Scholar's tuition, fees, books, room and 
board must be reduced to the extent that the cost is paid by another 
organization, or provided for or waived by the Scholar's institution.



               Subpart F_Payment Conditions and Procedures



Sec.  1801.50  Acceptance of the scholarship.

    To receive any payment, a Scholar must sign an acceptance of the 
scholarship and acknowledgement of the conditions of the award and 
submit it to the Foundation.



Sec.  1801.51  Report at the beginning of each term.

    (a) To receive a Scholarship stipend, a Scholar must submit a 
current transcript and Payment Request Form containing the following:
    (1) A statement of the Scholar's costs for tuition, fees, books, 
room and board;
    (2) A certification by an authorized official of the institution 
that the Scholar is a full-time student and is taking a course of study, 
training, or other educational activities to prepare for a career in 
public service; and is not engaged in gainful employment that interferes 
with the Scholar's studies; and
    (3) A certification by an authorized official of the institution of 
whether the Scholar is in academic good standing.
    (b) At the beginning of each academic year, the Scholar must have 
his or her institution submit a certified Educational Expense Form 
containing the following:
    (1) A certification by an authorized official of the institution 
that the Scholar's statement of costs for tuition, fees, books, room and 
board and other expenses required for the academic year is accurate; and
    (2) A certification of the amounts of those costs that are paid or 
waived by the institution or paid by another organization.



Sec.  1801.52  Payment schedule.

    The Foundation will pay the Scholar a portion of the award of the 
Scholarship stipend (as described in the Foundation's Bulletin of 
Information) after each report submitted under Sec.  1801.51.



Sec.  1801.53  Postponement of payment.

    (a) A Scholar may request the Foundation to postpone one or more 
payments because of sickness or other circumstances.
    (b) If the Foundation grants a postponement, it may impose 
conditions as it deems appropriate.



Sec.  1801.54  Annual report.

    (a) Scholars with remaining eligibility for scholarship stipends 
must submit no later than July 15 an annual report to the Foundation.
    (b) The annual report should be in narrative form and cover: courses 
taken and grades earned; courses planned for the coming year if 
Foundation support will be requested; public service and school 
activities; part-time or full-time employment and summer employment or 
internships; and achievements, awards and recognition, publications or 
significant developments.
    (c) Newly selected Scholars are required to submit by the July 15 
following their selection an annual report

[[Page 556]]

updating the Foundation on their activities and accomplishments since 
the time they submitted their applications for the Truman Scholarship.



                    Subpart G_Duration of Scholarship



Sec.  1801.60  Renewal of scholarship.

    It is the intent of the Foundation to provide scholarship awards for 
a period not to exceed a total of four academic years, only in 
accordance with the regulations established by its Board of Trustees, 
and subject to an annual review for compliance with the requirements of 
this part.



Sec.  1801.61  Termination of scholarship.

    (a) The Foundation may suspend or terminate a scholarship under the 
following specific conditions:
    (1) Unsatisfactory academic performance for two terms, failure to 
pursue preparation for a career in public service, or loss of interest 
in a career in public service;
    (2) Failure to meet the criteria in Sec.  1801.3(d), Sec.  
1801.30(a) Sec.  1801.31(a) and (b), or Sec.  1801.51;
    (3) Failure to submit a report or request required by the Foundation 
or providing false, misleading, or materially incomplete information on 
any report, payment request or other submission to the Foundation; or
    (4) Failure to begin use of the graduate portion of the scholarship 
within four years of the date of receipt of a baccalaureate degree 
unless granted an extension in writing by the Foundation.
    (b) Before it terminates a scholarship, the Foundation will notify 
the Scholar of the proposed action and will provide an opportunity to be 
heard with respect to the grounds for termination.



Sec.  1801.62  Recovery of scholarship funds.

    (a) When a Truman Scholarship is terminated for any reason, the 
Scholar must return to the Foundation any stipend funds which have not 
yet been spent or which the Scholar may recover.
    (b) A Scholar who fails for any reason to complete, as a full-time 
student, a school term for which he or she has received a Foundation 
stipend, must return the amount of that stipend to the Foundation. The 
Foundation may waive this requirement upon application by the Scholar 
showing good cause for doing so.



Sec.  1801.63  Scholar Accountability.

    (a) A Scholar selected after January 2005 must be employed in public 
service for three of the seven years following completion of his or her 
Foundation funded graduate education.
    (b) Following completion of Foundation funded graduate education, 
Scholars must submit a report to the Foundation by July 15 of each year. 
This report will include the Scholar's current contact information as 
well as a brief description of his or her employment during the past 
twelve months. This reporting requirement ends when the Foundation 
determines that a Scholar has reported three years of public service 
employment and the Foundation notifies him or her that he or she no 
longer is required to submit reports. Scholars who fail for two 
consecutive years to submit the required report to the Foundation will 
be considered to have failed to complete the three year public service 
requirement of paragraph (a) of this section.
    (c) A Scholar who fails to be employed in public service for three 
out of the first seven years following completion of his or her 
Foundation funded graduate education must repay to the Foundation an 
amount equal to:
    (1) All of the Scholarship stipends received,
    (2) Interest at the rate of 6% per annum from the date of receipt of 
each payment until repayment is made to the Foundation, and
    (3) Reasonable collection fees.
    (d)(1) The repayment obligation of paragraph (c) of this section 
accrues on the first July 15 on which it becomes impossible for a 
Scholar to fulfill the three year public service requirement of 
paragraph (a) of this section. For example, the repayment obligation 
would accrue on July 15 of the sixth year following completion of 
Foundation funded graduate education for a Scholar who has been employed 
in the public service for only one of those six years.

[[Page 557]]

    (2) The Foundation will send to the Scholar's last known address a 
notice that his or her repayment obligation has accrued. The failure, 
however, of the Foundation to send, or the Scholar to receive, such a 
notice does not alter or delay the Scholar's repayment obligation.
    (e) The Foundation may employ whatever remedies are available to it 
to collect any unpaid obligation accruing under this Sec.  1801.63.
    (f) Upon application by the Scholar showing good cause for doing so, 
the Foundation may waive or modify the repayment obligation established 
by paragraph (c) of this section.
    (g) The Foundation will establish a process for appealing any 
disputes concerning the accrual of the repayment obligation imposed by 
paragraph (c) of this section. The Foundation will publish on its Web 
site http://www.truman.gov information about this appeals process and 
other information pertinent to repayment obligations accruing under this 
Sec.  1801.63.

[70 FR 36039, June 22, 2005]



PART 1802_PUBLIC MEETING PROCEDURES OF THE BOARD OF TRUSTEES--Table of Contents



Sec.
1802.1 Purpose and scope.
1802.2 Definitions.
1802.3 Open meetings.
1802.4 Grounds on which meetings may be closed, or information may be 
          withheld.
1802.5 Procedure for announcing meetings.
1802.6 Procedure for closing meetings.
1802.7 Transcripts, recordings, minutes of meetings.

    Authority: 5 U.S.C. 552b(g); 20 U.S.C. 2001-2012.

    Source: 42 FR 14722, Mar. 16, 1977, unless otherwise noted.



Sec.  1802.1  Purpose and scope.

    The Harry S. Truman Scholarship Foundation will provide the public 
with the fullest practical information regarding its decision-making 
processes while protecting the rights of individuals and the 
Foundation's abilities to carry out its responsibilities. Accordingly, 
these procedures apply to meetings of the Board of Trustees, Harry S. 
Truman Scholarship Foundation, including committees of the Board of 
Trustees.



Sec.  1802.2  Definitions.

    As used in this part:
    Board or Board of Trustees means the collegial body that conducts 
the business of the Harry S. Truman Scholarship Foundation as specified 
in section 5(b), Pub. L. 93-642 (20 U.S.C. 2004), consisting of:
    (a) Eight persons appointed by the President, by and with the advice 
and consent of the Senate;
    (b) Two members of the Senate, one from each political party, 
appointed by the President of the Senate;
    (c) Two members of the House of Representatives, one from each 
political party, appointed by the Speaker; and
    (d) The Commissioner of Education or his designee, who serves as an 
ex officio member of the Board.
    Chairman means the presiding officer of the Board.
    Committee means any formally designated subdivision of the Board, 
consisting of at least two Board members, authorized to act on behalf of 
the Board, including the Board's standing committees and any ad hoc 
committees appointed by the Board for special purposes.
    Executive Secretary means the individual appointed by the Board to 
serve as the chief executive officer of the Foundation.
    Meeting means the deliberations of at least the number of individual 
voting members of the Board required to take action on behalf of the 
Board, where such deliberations determine or result in the joint conduct 
or disposition of official business of the Board, but does not include: 
(1) Deliberations to open or close a meeting, to establish the agenda 
for a meeting, or to release or withhold information, required or 
permitted by Sec.  1802.5 or Sec.  1802.6, (2) notation voting or 
similar consideration of matters whether by circulation of material to 
members individually in writing, or polling of members individually by 
telephone or telegram and (3) instances where individual members, 
authorized to conduct business on behalf of the Board or to take action 
on behalf of the Board, meet with members

[[Page 558]]

of the public or staff. Conference telephone calls that involve the 
requisite number of members, and otherwise come within the definition, 
are included.
    Member means a member of the Board of Trustees.
    Staff includes the employees of the Harry S. Truman Scholarship 
Foundation, other than the members of the Board.



Sec.  1802.3  Open meetings.

    (a) Members shall not jointly conduct or dispose of business of the 
Board of Trustees other than in accordance with these procedures. Every 
portion of every meeting of the Board of Trustees or any committees of 
the Board shall be open to public observation subject to the exceptions 
provided in Sec.  1802.4.
    (b) Open meetings will be attended by members of the Board, certain 
staff, and any other individual or group desiring to observe the 
meeting. The public will be invited to observe and listen to the meeting 
but not to participate. The use of cameras and disruptive recording 
devices will not be permitted.



Sec.  1802.4  Grounds on which meetings may be closed, or information 
may be withheld.

    Except in a case where the Board or a committee finds that the 
public interest requires otherwise, the open meeting requirement as set 
forth in the second sentence of Sec.  1802.3(a) shall not apply to any 
portion of a Board or committee meeting, and the informational 
disclosure requirements of Sec. Sec.  1802.5 and 1802.6 shall not apply 
to any information pertaining to such meeting otherwise required by this 
part to be disclosed to the public, where the Board or committee, as 
applicable, properly determines that such portion or portions of its 
meetings or the disclosure of such information is likely to:
    (a) Disclose matters that are: (1) Specifically authorized under 
criteria established by an Executive Order to be kept secret in the 
interests of national defense or foreign policy and (2) in fact properly 
classified pursuant to such Executive Order;
    (b) Relate solely to the internal personnel rules and practices of 
the Harry S. Truman Scholarship Foundation;
    (c) Disclose matters specifically exempted from disclosure by 
statute (other than section 552, Title 5, United States Code), provided 
that such statute: (1) Requires that the matters be withheld from the 
public in such a manner as to leave no discretion on the issue, or (2) 
establishes particular criteria for withholding or refers to particular 
types of matters to be withheld;
    (d) Disclose trade secrets and commercial and financial information 
obtained from a person and privileged or confidential;
    (e) Involve accusing any person of a crime or formally censuring any 
person;
    (f) Disclose information of a personal nature where disclosure would 
constitute a clearly unwarranted invasion of personal privacy;
    (g) 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: (1) Interfere with enforcement proceedings,
    (2) Deprive a person of a right to a fair trial or an impartial 
adjudication,
    (3) Constitute an unwarranted invasion of personal privacy,
    (4) 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,
    (5) Disclose investigative techniques and procedures, or
    (6) Endanger the life or physical safety of law enforcement 
personnel;
    (h) 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;
    (i) Disclose information the premature disclosure of which would be 
likely to significantly frustrate implementation of a proposed agency 
action, except that this paragraph shall not apply in any instance where 
the agency has already disclosed to the public the

[[Page 559]]

content or nature of its proposed action, or where the agency is 
required by law to make such disclosure on its own initiative prior to 
taking final agency action on such proposal; or
    (j) Specifically concern the issuance of a subpoena, or Foundation 
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 Foundation of a particular case of formal 
adjudication pursuant to the procedures in section 554 of title 5, 
United States Code, or otherwise involving a determination on the record 
after opportunity for a hearing.



Sec.  1802.5  Procedure for announcing meetings.

    (a) Except to the extent that such information is exempt from 
disclosure under the provisions of Sec.  1802.4, in the case of each 
Board or committee meeting, the Executive Secretary, acting at the 
direction of the Board, shall publish in the Federal Register, at least 
seven days before the meeting, the following information:
    (1) Time of the meeting;
    (2) Place of the meeting;
    (3) Subject matter of the meeting;
    (4) Whether the meeting or parts thereof are to be open or closed to 
the public; and
    (5) The name and phone number of the person designated by the Board 
or committee to respond to requests for information about the meeting.
    (b) The seven-day period for the public announcement required by 
paragraph (a) of this section may be reduced if a majority of the 
members of the Board or committee, as applicable, determine by a 
recorded vote that Board or committee business requires that such 
expedited meeting be called at an earlier date. The Board or committee 
shall make public announcement of the time, place, and subject matter of 
such meeting, and whether open or closed to the public, at the earliest 
practicable time.
    (c) The time or place of a meeting may be changed following the 
public announcement required by paragraph (a) only if the Executive 
Secretary, acting at the direction of the Board, publicly announces such 
change at the earliest practicable time. Such change need not be voted 
on by the members.
    (d) The subject matter of a meeting, or the determination of the 
Board or committee, as applicable, to open or close a meeting, or 
portion of a meeting, to the public, may be changed following the public 
announcement required by paragraph (a) of this section only if: (1) A 
majority of the entire voting membership of the Board or a majority of 
the entire voting membership of a committee, determines by a recorded 
vote that Board or committee business so requires and that no earlier 
announcement of the change was possible, and
    (2) The Board or committee publicly announces such change and the 
vote of each member upon such change at the earliest practicable time.
    (e) The ``earliest practicable time'' as used in this section, means 
as soon as possible, which should in few, if any, instances be no later 
than commencement of the meeting or portion in question.
    (f) Immediately following each public announcement required by this 
section, notice of the time, place and subject matter of a meeting, 
whether the meeting is open or closed, any change in one of the 
preceding, and the name and phone number of the person designated by the 
Board or committee to respond to requests for information about the 
meeting, shall be submitted for publication in the Federal Register.



Sec.  1802.6  Procedure for closing meetings.

    (a) Action to close a meeting or a portion thereof, pursuant to the 
exemptions set forth in Sec.  1802.4, shall be taken only when a 
majority of the entire voting membership of the Board or a majority of 
the entire voting membership of a committee, as applicable, vote to take 
such action. Any such action shall include a specific finding by the 
Board that an open meeting is not required by the public interest.
    (b) A separate vote of the Board or committee members shall be taken 
with respect to each Board or committee meeting, a portion or portions 
of which are proposed to be closed to the public pursuant to Sec.  
1802.4 or with

[[Page 560]]

respect to any information which is proposed to be withheld under Sec.  
1802.4.
    (c) A single vote of the Board or committee 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 30 days after the initial meeting in such series.
    (d) The vote of each member shall be recorded, and may be by 
notation voting, telephone polling or similar consideration.
    (e) Whenever any person whose interests may be directly affected by 
a portion of a meeting requests that the Board or a committee close such 
portion to the public under any of the exemptions relating to personal 
privacy, criminal accusation, or law enforcement information referred to 
in paragraph (e), (f), or (g) of Sec.  1802.4, the Board or committee, 
as applicable, upon request of any one of its members, shall vote by 
recorded vote whether to close such meeting. Where the Board receives 
such a request prior to a meeting, the Board may ascertain by notation 
voting, or similar consideration, the vote of each member of the Board, 
or committee, as applicable, as to the following:
    (1) Whether the business of the Board or committee permits 
consideration of the request at the next meeting, and delay of the 
matter in issue until the meeting following, or
    (2) Whether the members wish to close the meeting.
    (f) Within one day of any vote taken pursuant to paragraph (a), (b), 
(c) or (e), of this section, the Board or committee shall make publicly 
available a written copy of such vote reflecting the vote of each member 
on the question. If a portion of a meeting is to be closed to the 
public, the Board or committee shall, within one day of the vote taken 
pursuant to paragraph (a), (b), (c), or (e) of this section, make 
publicly available a full written explanation of its action closing the 
portion together with a list of all persons expected to attend the 
meeting and their affiliation. The information required by this 
paragraph shall be disclosed except to the extent it is exempt from 
disclosure under the provisions of Sec.  1802.4.
    (g) For every meeting closed pursuant to Sec.  1802.4, the General 
Counsel of the Harry S. Truman Scholarship Foundation shall certify 
before the meeting may be closed that, in his or her opinion, the 
meeting may be closed to the public and shall state each relevant 
exemptive provision. A copy of such certification, together with a 
statement from the presiding officer of the meeting setting forth the 
time and place of the meeting, and the persons present, shall be 
retained by the Board as part of the transcript, recording or minutes 
required by Sec.  1802.7.



Sec.  1802.7  Transcripts, recordings, minutes of meetings.

    (a) The Board of Trustees shall maintain a complete transcript or 
electronic recording adequate to record fully the proceedings of each 
meeting, or portion of a meeting, closed to the public, except that in 
the case of a meeting closed to the public pursuant to paragraph (j) of 
Sec.  1802.4, the Board shall maintain either such a transcript or 
recording, or a set of minutes.
    (b) Where minutes are maintained they shall fully and clearly 
describe all matters discussed and shall provide a full and accurate 
summary of any actions taken, and the reasons for such actions, 
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.
    (c) The Board shall maintain a complete verbatim copy of the 
transcript, a complete copy of the minutes, or a complete electronic 
recording of each meeting or portion of a meeting, closed to the public, 
for a period of at least two years after such meeting, or until one year 
after the conclusion of any Board proceeding with respect to which the 
meeting or portion was held, whichever occurs later.
    (d) Public availability of records shall be as follows:

[[Page 561]]

    (1) Within ten days of receipt of a request for information 
(excluding Saturdays, Sundays, and legal public holidays), the 
Foundation shall make available to the public, in the offices of the 
Harry S. Truman Scholarship Foundation, 712 Jackson Place NW., 
Washington, DC, the transcript, electronic recording, or minutes of the 
discussion of any item on the agenda, or of any item of the testimony of 
any witness received at the meeting except for such item or items of 
such discussion or testimony as the General Counsel determines to 
contain information which may be withheld under Sec.  1802.4.
    (2) Copies of such transcript, or minutes, or a transcription of 
such recording disclosing the identify of each speaker, shall be 
available at the actual cost of duplication or transcription.
    (3) The determination of the General Counsel to withhold information 
pursuant to paragraph (d)(1) of this section may be appealed to the 
Board. The appeal shall be circulated to individual Board members. The 
Board shall make a determination to withhold or release the requested 
information within twenty days from the date of receipt of a written 
request for review (excluding Saturdays, Sundays, and legal public 
holidays).
    (4) A written request for review shall be deemed received by the 
Board when it has arrived at the offices of the Board in a form that 
describes in reasonable detail the material sought.



PART 1803_NONDISCRIMINATION ON THE BASIS OF HANDICAP--Table of Contents



Sec.
1803.1 Purpose.
1803.2 Application.
1803.3 Definitions.
1803.4 Self-evaluation.
1803.5 Notice.
1803.6 General prohibitions against discrimination.
1803.7 Program accessibility: Existing facilities.
1803.8 Program accessibility: New construction and alterations.
1803.9 Employment.
1803.10 Communications.
1803.11 Compliance procedures.

    Authority: 29 U.S.C. 794.

    Source: 54 FR 4795, Jan. 31, 1989, unless otherwise noted.



Sec.  1803.1  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.



Sec.  1803.2  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 individual(s) with handicaps in the 
United States.



Sec.  1803.3  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 Foundation.
    Complete complaint means a written statement containing: (1) Date 
and nature of the alleged violation of section 504; (2) the 
complainant's name and address; and (3) the signature of the complainant 
or of someone authorized to act 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.
    Executive Secretary means the Executive Secretary of the Harry S. 
Truman Scholarship Foundation.
    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 Harry S. Truman Scholarship Foundation.
    General Counsel means the General Counsel of the Harry S. Truman 
Scholarship Foundation.

[[Page 562]]

    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, 
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 classified 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 subparagraph (1) of 
this definition, but is treated by the Foundation as having such an 
impairment.
    Qualified individual with handicaps means an individual with 
handicaps who meets the essential eligibility requirements for 
participation in, or receipt of benefits from, any Foundation program or 
activity. For purposes of employment, ``qualified individual with 
handicaps'' means ``qualified handicapped person'' as defined in 29 CFR 
1613.702(f), which is made applicable to this part by Sec.  1803.10.
    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; 
the Rehabilitation, Comprehensive Services, and Developmental 
Disabilities Amendments of 1978, Pub. L. 95-602, 92 Stat. 2955; and by 
the Rehabilitation Act amendments of 1986, Pub. L. 99-506, 100 Stat. 
1810. As used in this part, section 504 applies only to programs or 
activities conducted by the Foundation and not to federally assisted 
programs.



Sec.  1803.4  Self-evaluation.

    (a) The Foundation shall, within one year of the effective date of 
this part, evaluate, with the assistance of interested persons, 
including individuals with handicaps or organizations representing 
individuals with handicaps, 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 
modification.
    (b) 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--
    (1) A description of areas examined and any problems identified; and
    (2) A description of any modifications made.



Sec.  1803.5  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 as the

[[Page 563]]

Executive Secretary finds necessary to apprise such persons of the 
protections against discrimination assured them by section 504 and this 
regulation.



Sec.  1803.6  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 subject to this part.
    (b) The Foundation may not, either directly or through arrangements 
with others, on the basis of handicap--
    (1) Discriminate against a qualified individual with handicaps in 
the award or renewal of scholarships, through selection criteria or 
otherwise;
    (2) Deny a qualified individual with handicaps the opportunity to 
participate as a member of boards or panels used to screen scholarship 
applicants;
    (3) Deny a qualified individual with handicaps the opportunity to 
participate as a member of planning or advisory boards; or
    (4) Otherwise subject a qualified individual with handicaps to 
discrimination.
    (c) The Foundation may not, either directly or through arrangements 
with others, utilize criteria or methods of administration the purpose 
or effect of which would--
    (1) Subject qualified individuals with handicaps to discrimination 
on the basis of handicap; or
    (2) Defeat or substantially impair accomplishment of the objectives 
of a program or activity with respect to individuals with handicaps.
    (d) The Foundation shall administer programs and activities in the 
most feasibly integrated setting appropriate to the needs of qualified 
individuals with handicaps.



Sec.  1803.7  Program accessibility: Existing facilities.

    (a) 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 necessarily require the Foundation to make each of its existing 
facilities accessible to and usable by individuals with handicaps, but 
no qualified individual with handicaps shall be denied the benefit of, 
be excluded from participation in, or otherwise be subjected to 
discrimination under any of the Foundation's programs and activities 
because any of the Foundation's facilities are inaccessible to or 
unusable by individuals with handicaps.
    (b) When the Foundation uses facilities leased or otherwise provided 
by the General Services Administration (GSA), it shall request GSA to 
make any structural changes that the Foundation determines are required 
to provide necessary accessibility for individuals with handicaps, and 
shall inform that agency of any complaints regarding accessibility by 
individuals with handicaps.
    (c) The Foundation periodically uses meeting rooms or similar 
facilities made available by non-federal entities. In any instances in 
which such temporarily used facilities are not readily accessible to 
qualified individuals with handicaps, the Foundation shall make 
alternative arrangements so that such qualified individuals with 
handicaps can participate fully in the Foundation's activity.
    (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 administration 
burdens. In those circumstances where Foundation personnel believe that 
the proposed action would fundamentally alter a program or activity or 
would result in undue financial and administrative burdens, the 
Foundation has the burden of proving that compliance with paragraph (a) 
of this section would result in such alteration or burdens. The decision 
that compliance would result in such alteration or burdens must be made 
by the Executive Secretary 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

[[Page 564]]

such burdens, the Foundation shall take other action not resulting 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 programs or activities.



Sec.  1803.8  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.



Sec.  1803.9  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.



Sec.  1803.10  Communications.

    (a) The Foundation shall take appropriate steps to assure that 
interested persons, including persons with impaired vision or hearing, 
can effectively communicate with the Foundation and obtain information 
as to the existence and availability of the Foundation's programs and 
activities.
    (1) The Foundation shall furnish appropriate auxiliary aids where 
necessary to afford an individual with handicaps an equal opportunity to 
participate in the scholarship interview process or other programs or 
activities 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 
or other devices of a personal nature.
    (2) When the Foundation communicates with applicants and 
beneficiaries by telephone, the Foundation shall use, for persons with 
impaired hearing, a telecommunication device for deaf persons or equally 
effective telecommunication device.
    (b) The Foundation shall take appropriate steps to provide 
individuals with handicaps with information regarding their section 504 
rights under the Foundation's programs or activities.
    (c) 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 a program or activity or 
would result in undue financial and administrative burdens, the 
Foundation has the burden of proving that compliance with paragraphs (a) 
and (b) of this section would result in such alteration or burdens. The 
decision that compliance would result in such alteration or burdens must 
be made by the Executive Secretary after considering all Foundation 
resources available for use in the funding and operation of a 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 other action not resulting 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 programs or activities.



Sec.  1803.11  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 Foundation.
    (b) The Foundation shall process complaints alleging violations of 
Sec.  504

[[Page 565]]

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 Executive Secretary.
    (d) The Foundation 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 
Foundation may extend this time period for good cause.
    (e) If the Foundation 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 Foundation shall notify the Architectural and Transportation 
Barriers Compliance Board upon receipt of any complaint alleging that a 
building or facility that is used by the Foundation 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.
    (g) The Foundation shall notify the complainant of the results of 
the investigation within 90 days of the receipt of a complete complaint 
over which it has jurisdiction. Notification must be in a letter, and 
must include--
    (1) Findings of fact and conclusions of law;
    (2) A description of a remedy for each violation discovered; 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 paragraph (f) of this section. The 
Foundation may extend this time for good cause.
    (i) Timely appeals shall be accepted and processed by the General 
Counsel.
    (j) The Foundation shall notify the complainant of the results of 
the appeal within 90 days of the receipt of the request. If the 
Foundation determines that it needs additional information from the 
complainant, it shall have 90 days from the date it receives the 
additional information to make its determination on the appeal.
    (k) The time limits cited in paragraphs (g) and (h) of this section 
may be extended with the permission of the Assistant Attorney General.
    (l) The Foundation may delegate its authority for conducting 
complaint investigations to other federal agencies, but may not delegate 
to another agency the authority for making the final determination.

                       PARTS 1804	1899 [RESERVED]

[[Page 567]]



                  CHAPTER XXI--COMMISSION OF FINE ARTS




  --------------------------------------------------------------------
Part                                                                Page
2100

[Reserved]

2101            Functions and organization..................         569
2102            Meetings and procedures of the Commission...         571
2103            Statements of policy........................         575
2104            Enforcement of nondiscrimination on the 
                    basis of handicap in programs or 
                    activities conducted by the Commission 
                    of Fine Arts............................         575
2105            Requirements for compliance with the Freedom 
                    of Information Act......................         582
2106            Rules for compliance with 5 U.S.C. 552a, the 
                    Privacy Act of 1974.....................         603
2107-2199

 [Reserved]

[[Page 569]]

                          PART 2100 [RESERVED]



PART 2101_FUNCTIONS AND ORGANIZATION--Table of Contents



       Subpart A_Functions and Responsibilities of the Commission

Sec.
2101.1 Statutory and Executive Order authority.
2101.2 Relationships of Commission's functions to responsibilities of 
          other government units.

                     Subpart B_General Organization

2101.10 The Commission.
2101.11 Secretary to the Commission.
2101.12 Georgetown Board of Architectural Consultants.

    Authority: Pub. L. 81-808, 64 Stat. 903; 10 U.S.C. 4594; 36 U.S.C. 
124; 40 U.S.C. 72, 104, 106, 121, 1001; E.O. 1259 of October 25, 1910; 
E.O. 1862 of November 28, 1913; and E.O. 3524 of July 28, 1921.

    Source: 62 FR 4646, Jan. 31, 1997, unless otherwise noted.



       Subpart A_Functions and Responsibilities of the Commission



Sec.  2101.1  Statutory and Executive Order Authority.

    The Commission of Fine Arts (referred to as the ``Commission'') 
functions pursuant to statutes of the United States and Executive Orders 
of Presidents, as follows:
    (a) Public buildings, other structures, and parklands. (1) For 
public buildings to be erected in the District of Columbia by the 
federal government and for other structures to be so erected which 
affect the appearance of the city, the Commission comments and advises 
on the plans and on the merits of the designs before final approval or 
action;
    (2) For statues, fountains and monuments to be erected in the 
District of Columbia under authority of the federal government, the 
Commission advises upon their location in public squares, streets, and 
parks, and the merits of their designs;
    (3) For monuments to be erected at any location pursuant to the 
American Battle Monuments Act, the Commission approves the designs 
before they are accepted by the American Battle Monuments Commission 
(See also Sec.  2101.1 (g));
    (4) For parks within the District of Columbia, when plans of 
importance are under consideration, the Commission advises upon the 
merits of the designs; and
    (5) For the selection by the National Capital Planning Commission of 
lands suitable for development of the National Capital park, parkway, 
and playground system in the District of Columbia, Maryland, and 
Virginia, the Commission provides advice.
    (b) Private buildings bordering certain public areas in Washington, 
D.C. (Shipstead-Luce Act). For buildings to be erected or altered \1\ in 
locations which border the Capitol, the White House, the intermediate 
portion of Pennsylvania Avenue, the Mall Park System, Lafayette Park, 
the Zoological Park, Rock Creek Park or Parkway, or Potomac Park or 
Parkway, or are otherwise within areas defined by the official plats 
prepared pursuant to Sec. 2 of the Shipstead-Luce Act, the Commission 
reviews the plans as they relate to height and appearance, color and 
materials of the exteriors, and makes recommendations to the Government 
of the District of Columbia which, in the judgement of the Commission, 
are necessary to prevent reasonably avoidable impairment of the public 
values represented by the areas along which the buildings border. 
(Shipstead-Luce Act, 46 Stat. 366 as amended (40 U.S.C. 121; D.C. Code 
5-410).)
---------------------------------------------------------------------------

    \1\ Alteration does not include razing (Commissioner of the District 
of Columbia v. Bennenson, D.C. Court of App. 1974, 329 A.2d 437). 
Partial demolition, however, is viewed as an alteration (The Committee 
to Preserve Rhodes Tavern and the Natl. Processional Route v. Oliver T. 
Carr Company, et. al., U.S. Court of App. for D.C. Cir., 1979, 79-1457, 
Dept. Justice Brief for Fed. Appellee).
---------------------------------------------------------------------------

    (c) Georgetown buildings (Old Georgetown Act). For buildings to be 
constructed, altered, reconstructed, or razed within the area of the 
District of Columbia known as ``Old Georgetown'', the Commission reviews 
and reports to the District of Columbia Government on proposed exterior 
architectural features, height, appearance, color, and texture of 
exterior materials as would

[[Page 570]]

be seen from public space; and the Commission makes recommendations to 
such government as to the effect of the plans on the preservation and 
protection of places and areas that have historic interest or that 
manifest exemplary features and types of architecture, including 
recommendations for any changes in plans necessary in the judgement of 
the Commission to preserve the historic value of Old Georgetown, and 
takes any such actions as in the judgement of the Commission are right 
or proper in the circumstances. (Old Georgetown Act, Public Law 81-808, 
64 Stat. 903 (D.C. Code 5-801).)
    (d) United States medals, insignia, and coins. On medals, insignia, 
and coins to be produced by an executive department of the United States 
including the Mint, the Commission advises as to the merits of their 
designs which shall be submitted before the executive officer having 
charge of the same shall approve thereof.
    (e) Heraldic services provided by the Department of the Army. The 
Commission upon request advises the Heraldic Branch of the Army upon the 
merits of proposed designs for medals, insignia, seals, etc. prepared 
under the authority of the Act of August 26, 1957 to furnish heraldic 
services to the other departments and agencies of the government.
    (f) Questions of art with which the Federal government is concerned. 
When required to do so by the President or by Committees of either House 
of Congress, the Commission advises generally on questions of art, and 
whenever questions of such nature are submitted to it by an officer or 
department of the federal government the Commission advises and 
comments.
    (g) Commemorative works. The Commemorative Works Act provides 
standards for placement of commemorative works on certain federal lands 
in the District of Columbia and its environs, and for other purposes; 
and requires site and design approval of all commemorative works by the 
Commission of Fine Arts, National Capital Planning Commission, and (as 
appropriate) the Secretary of Interior or the Administrator of General 
Services. The sponsoring agencies therefore shall submit designs to the 
Commission for review and shall provide such design changes as may be 
required to obtain approval.



Sec.  2101.2  Relationships of Commission's functions to responsibilities 
of other government units.

    (a) Projects involving the Capitol building and the Library of 
Congress. Plans concerning the Capitol building and the buildings of the 
Library of Congress are outside the purview of the Commission except as 
to questions on which the Committees of Congress require the Commission 
to advise.
    (b) Other Federal government projects. Officers and departments of 
the federal government responsible for finally approving or acting upon 
proposed projects within the purview of the Commission's functions as 
described in Sec.  2101.1 (a) are required first to submit plans or 
designs for such projects to the Commission for its advice and comments.
    (c) Projects within the jurisdiction of the District of Columbia 
government. The District of Columbia seeks Commission advice on exterior 
alteration or new construction of public buildings or major public works 
within its boundaries. The District of Columbia government also shall 
seek Commission advice on certain private construction requiring 
building or demolition permits from the D.C. Permit Branch (D.C. Law 5-
422). These include certain actions by the District of Columbia 
government pursuant to either D.C. Law 5-422 or D.C. Law 2-144 within 
areas subject to the Shipstead-Luce or Old Georgetown Acts (Sec.  2101.1 
(b) and (c)) prior to the issuance of a permit. \2\ Alterations of 
buildings, demolition, or new construction at individually designated 
landmarks or within historic districts are further subject to the permit 
requirements of the Historic Landmark and Historic District Protection 
Act of 1978 (D.C. Law 2-144). Upon request, advice will be given on the 
subject of lot subdivisions.
---------------------------------------------------------------------------

    \2\ Provisions of the Shipstead-Luce Act (Sec.  2101.1 (b)) do not 
include full demolition, though partial demolition is viewed as an 
alteration.

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

[[Page 571]]



                     Subpart B_General Organization



Sec.  2101.10  The Commission.

    The Commission is composed of seven members, each of whom is 
appointed by the President and serves for a period of four years or 
until his or her successor is appointed and qualified. The Chairman and 
Vice Chairman are elected by the members. The Commission is assisted by 
a staff as authorized by the Commission.



Sec.  2101.11  Secretary to the Commission.

    Subject to the direction of the Chairman, the Secretary to the 
Commission is responsible for the day-to-day operations of the agency 
and for supervising the staff in its support of the functions of the 
Commission; for preparing the agenda of Commission meetings; for 
organizing presentations before the Commission of plans, designs, or 
questions upon which it is to advise, comment, or respond; for 
interpreting the Commission's conclusions, advice, or recommendations on 
each matter submitted to it; for maintaining a liaison with other 
governmental entities, professionals, and the public; and for 
maintaining the Commission's records. The Assistant Secretary of the 
Commission shall carry out duties delegated to him/her by the Secretary 
and shall act in place of the Secretary during his/her absence or 
disability.



Sec.  2101.12  Georgetown Board of Architectural Consultants.

    To assist the Commission in carrying out the purposes of the Old 
Georgetown Act (Sec.  2101.1 (c)), a committee of three architects 
appointed for a term of three years by the Commission serves as the 
Board of Architectural Consultants without expense to the United States. 
This committee advises the Commission regarding designs and plans 
referred to it. The Chairman is elected by its members.



PART 2102_MEETINGS AND PROCEDURES OF THE COMMISSION--Table of Contents



                      Subpart A_Commission Meetings

Sec.
2102.1 Times and places of meetings.
2102.2 Actions outside of meetings.
2102.3 Public notice of meetings.
2102.4 Public attendance and participation.
2102.5 Records and minutes; public inspection.

         Subpart B_Procedures on Submission of Plans or Designs

2102.10 Timing, scope and content of submissions for proposed projects 
          involving land, buildings or other structures.
2102.11 Scope and content of submission for proposed medals, insignia, 
          coins, seals, and the like.
2102.12 Responses of Commission to submissions.
2102.13 Project eligibility criteria for placement on a Consent 
          Calendar.
2102.14 Consent Calendar and Appendices procedures.

    Authority: 5 U.S.C., App. 1.

    Source: 62 FR 4647, Jan. 31, 1997, unless otherwise noted.



                      Subpart A_Commission Meetings



Sec.  2102.1  Times and places of meetings.

    Regular meetings of the Commission, open to the public, are held 
monthly on the third Thursday of the month, beginning at 10 a.m., at its 
offices in Suite 312, 441 F Street, N.W. Washington, D.C. 20001, except 
that by action of the Commission a regular meeting in any particular 
month may be omitted or it may be held on another day or at a different 
time or place. A special meeting, open to the public, may be held in the 
interval between regular meetings upon call of the Chairman and five 
days' written notice of the time and place mailed to each member who 
does not in writing waive such notice. On all matters of official 
business, the Commission shall conduct its deliberations and reach its 
conclusions at such open meetings except as stated in Sec.  2101.12 
provided, however, the Commission members may receive staff briefings or 
may have informal background discussions among themselves and the staff 
outside of such meetings.



Sec.  2102.2  Actions outside of meetings.

    Between meetings in situations of emergency, the Commission may act 
through a canvass by the Secretary of individual members, provided that 
any action so taken is brought up and ratified at the next meeting. In 
addition,

[[Page 572]]

the Commission members may convene away from the Commission's offices to 
make inspections at the site of a proposed project or at the location of 
a mock-up for the project and may then and there reach its conclusions 
respecting such project which shall be recorded in the minutes of the 
meeting held on the same day or, if none was then held, in the minutes 
of the next meeting.



Sec.  2102.3  Public notice of meetings.

    Notice of each meeting of the Commission shall be published in the 
Federal Register.



Sec.  2102.4  Public attendance and participation.

    Interested persons are permitted to attend meetings of the 
Commission, to file statements with the Commission at or before a 
meeting, and to appear before the Commission when it is in meeting, 
provided that an appearance is germane to the functions and policies of 
the Commission and to the matter or issues then before the Commission, 
and if the presentation or argument is made in a concise manner, within 
reasonable time limits and avoids duplicating information or views 
already before the Commission. A decision of the Chairman as to the 
order of appearances and as to compliance with these regulations by any 
person shall be final unless the Commission determines otherwise.



Sec.  2102.5  Records and minutes; public inspection.

    A detailed record of each meeting shall be made and kept which shall 
contain copies of all written, printed, or graphic materials presented. 
The Secretary shall have prepared minutes of each meeting which shall 
state the time and place it was held and attendance by Commission 
members and staff and which shall contain a complete summary of matters 
discussed and conclusions reached and an explanation of the extent of 
public participation, including names of persons who presented oral or 
written statements; and he shall send a copy to all members of the 
Commission for their approval. Subsequent to such approval, the minutes 
shall be certified by the Secretary. The minutes and any completed 
reports, studies, agenda or other documents made available to, or 
prepared for or by, the Commission shall be available for public 
inspection and, at the requesting party's expense, for copying at the 
offices of the Commission.



         Subpart B_Procedures on Submissions of Plans or Designs



Sec.  2102.10  Timing, scope and content of submissions for proposed projects 
involving land, buildings, or other structures.

    (a) A party proposing a project which is within the purview of the 
Commission's functions under Sec.  2101.1 (a), (b), or (c) should make a 
submission when concept plans for the project are ready but before 
detailed plans and specifications or working drawings are prepared. In 
order to assure that a submission will be considered at the next 
scheduled meeting of the Commission, it should be delivered to the 
Commissions offices not later than ten (10) working days before the 
meeting; if it is a project subject to review first by the Georgetown 
Board, not later than ten (10) working days before the Georgetown Board 
meeting. The Commission will attempt to consider a submission which is 
not made in conformity with this schedule, but it reserves the right to 
postpone consideration until its next subsequent meeting.
    (b)(1) Each submission should state or disclose:
    (i) The nature, location, and justification of the project, 
including any relevant historical information about the building or 
other structure to be altered or razed;
    (ii) The identity of the owner or developer (or for public 
buildings, the governmental unit with authority to approve or act upon 
the plans) and of the architect;
    (iii) The functions, uses, and purpose of the project; and
    (iv) Other information to the extent it is relevant, such as area 
studies, site plans, building and landscape schematics, renderings, 
models, depictions or samples of exterior materials and

[[Page 573]]

components, and photographs of existing conditions to be affected by the 
project.
    (2) Alternative proposals may be included within one submission. The 
information submitted shall be sufficiently complete, detailed, and 
accurate as will enable the Commission to judge the ultimate character, 
siting, height, bulk, and appearance of the project, in its entirety, 
including the grounds within the scope of the project, its setting and 
environs, and its effect upon existing conditions and upon historical 
and prevailing architectural values. Record drawings and photographs 
will be submitted by the applicant for a permanent Commission record of 
the submission.
    (c) If a project consists of a first or intermediate phase of a 
contemplated larger program of construction, similar information about 
the eventual plans should accompany the submission. Even though a 
submission relates only to approval for razing or removal of a building 
or other structure, the project will be regarded as part of phased 
development, and the submission is subject to such requirement.
    (d) If the project involves a statue, fountain or a monument within 
the purview of the Commission under Sec.  2101.1 (a)(2), partial 
submissions should be made as appropriate to permit the Commission to 
advise on each aspect of the project as prescribed by the Commemorative 
Works Act (Pub. L. 99-652, H.R. 4378, 40 U.S.C. 1001).
    (e) The Commission staff will advise owners and architects 
concerning the scope and content of particular submissions. Material 
relevant to the functions and policies of the Commission varies greatly 
depending upon the nature, size, and importance of the project to be 
reviewed by the Commission. Also, it is the policy of the Commission not 
to impose unnecessary burdens or delays on persons who make submissions 
to the Commission. However, the Commission at any meeting may decline to 
reach a conclusion about a proposed project if it deems the submission 
materials inadequate for its purposes, or it may condition its 
conclusions on the submission of further information to it at a later 
meeting or, in its discretion, may delegate final action to the staff.
    (f) The Commission staff, members of the Georgetown Board, 
interested members of the public, or the submitting party may augment 
any submission by additional relevant information made available to the 
Commission before or at the meeting where the submission is considered. 
The staff should also make information available concerning prior 
considerations or conclusions of the Commission regarding the same 
project or earlier versions of it.



Sec.  2102.11  Scope and content of submissions for proposed medals, 
insignia, coins, seals, and the like.

    Each submission of the design for a proposed item which is within 
the Commission's purview under Sec.  2101.1 (d) should identify the 
sponsoring government unit and disclose the uses and purpose of the 
item, the size and forms in which it will be produced, and the materials 
and finishes to be used, including colors if any, along with a sketch, 
model, or prototype.



Sec.  2102.12  Responses of Commission to submissions.

    (a) The Commission before disposing of any project presented to it 
may ask for the proposed plans or designs to be changed in certain 
particulars and resubmitted, or for the opportunity to review plans, 
designs, and specifications in certain particulars at a later stage in 
their development, and to see samples or mock-ups of materials or 
components; and when appropriate in the matter of a statue or other 
object of art, the Commission may ask for the opportunity to see a 
larger or full-scale model. All conclusions, advice, or comments of the 
Commission which lead to further development of plans, designs, and 
specifications or to actual carrying out of the project are made in 
contemplation that such steps will conform in all substantial respects 
with the plans or designs submitted to the Commission, including only 
such changes as the Commission may have recommended; any other changes 
in plans or designs require further submission to the Commission.
    (b) In the case of plans submitted with a permit application subject 
to

[[Page 574]]

the Old Georgetown Act (Sec.  2101.1(c)), if the Commission does not 
respond with a report on such plans within forty-five days after their 
receipt by the Commission, its approval shall be assumed and a permit 
may be issued by the government of the District of Columbia.
    (1) In the case of a concept application submitted for a project 
subject to the Old Georgetown Act (Sec.  2101.1(c)), the Commission's 
approval is valid for two years. At the end of the two years, the 
original owner for the project may submit a new concept application 
requesting to extend the approval for one more year. The Commission, 
however, may decline to extend its approval.
    (2) [Reserved]
    (c) In the case of plans submitted with a permit application subject 
to the Shipstead-Luce Act (Sec.  2101.1(b)), if the Commission does not 
respond with a report on such plans within thirty days after their 
receipt by the Commission, its approval shall be assumed and a permit 
may be issued by the government of the District of Columbia.
    (1) In the case of a concept application for a project subject to 
the Shipstead-Luce Act (Sec.  2101.1(b)), the Commission's approval is 
valid for two years. At the end of the two years, the original owner for 
the project may submit a concept application requesting to extend the 
approval for one more year. The Commission, however, may decline to 
extend its approval.
    (2) [Reserved]
    (d) In the event that any project or item within the Commission's 
purview under 2101.1 has not progressed to a substantial start of 
construction or production within four years following the Commission 
meeting date on which the final design was approved, the Commission's 
approval is suspended. The plans or designs previously approved or 
alternative plans or designs, may thereupon be resubmitted for 
Commission review. The Commission's subsequent approval, if granted, 
shall remain in effect for four years.

[62 FR 4647, Jan. 31, 1997, as amended at 73 FR 29712, May 22, 2008]



Sec.  2102.13  Project eligibility criteria for placement 
on a Consent Calendar.

    With respect to submissions to the Commission for projects that meet 
the following criteria, the Secretary, at his/her discretion and in 
coordination with the Commission's staff, may place these projects on a 
Consent Calendar according to Sec.  2102.14.
    (a) Additions to buildings of less than 25 percent (%) of the 
original structure and no more than 25,000 sq. ft.;
    (b) New construction of less than 25,000 sq. ft.;
    (c) Window replacement projects;
    (d) Cellular or other communications antenna installations or 
replacements;
    (e) New or replacement signs;
    (f) Cleaning, routine maintenance, repairs or replacement-in-kind of 
exterior finish materials;
    (g) Temporary utility or construction structures;
    (h) And does not include new physical perimeter security items.

[70 FR 49194, Aug. 23, 2005]



Sec.  2102.14  Consent Calendar and Appendices procedures.

    (a) The Commission shall review applications scheduled on its 
Meeting Agenda, Consent Calendar, or Appendices (Old Georgetown Act and 
Shipstead-Luce Act). Cases on the Meeting Agenda will be heard by the 
Commission in open session. Cases on the Consent Calendar or Appendices 
will be acted upon based on submitted materials and staff 
recommendations without further public comment.
    (b) The Commission shall release the proposed Meeting Agenda, and 
the Consent Calendar and Appendices with staff recommendation to the 
public not later than five (5) calendar days before the meeting.
    (c) The scheduling of cases on the Meeting Agenda, Consent Calendar, 
and Appendices shall be at the sole discretion of the Commission and 
staff, and nothing shall preclude the Commission from amending or 
changing the scheduling at a public meeting.
    (d) The staff shall prepare a written recommendation for each case 
on the Consent Calendar or Appendices the Commission will review.
    (e) The Commission shall conduct public review of cases in 
accordance with a proposed Agenda released to the public before the 
Commission meeting. The Commission shall dispose of other

[[Page 575]]

cases by adoption of a Consent Calendar and Appendices, as appropriate. 
The Commission may amend the Meeting Agenda, Consent Calendar and 
Appendices at the public meeting as it may deem appropriate.
    (f) An application may be placed on the Consent Calendar if the 
applicant and staff agree that the proposed work has no known objection 
by an affected government agency, neighborhood organization, historic 
preservation organization, or affected person. Any relevant terms or 
modifications agreed upon by the applicant and staff may be included as 
conditions of the approval.
    (g) At the request of any Commission member, the Chairperson may 
remove any case from the Consent Calendar and place it on the Meeting 
Agenda for individual consideration by the Commission at the meeting. A 
request from any other group or person to remove a case from the Consent 
Calendar should be made to the staff in advance of the meeting and shall 
be considered as a preliminary matter at the meeting.
    (h) The Chairperson may also remove any case from a duly noticed 
Meeting Agenda and place it on the Consent Calendar, provided there is 
no objection from the applicant, any Commission member, or any affected 
group or person present and wishing to comment on the case.
    (i) The Commission may approve the Consent Calendar and Appendices 
on a voice vote.

[70 FR 49194, Aug. 23, 2005]



PART 2103_STATEMENTS OF POLICY--Table of Contents



    Authority: Pub. L. 81-808, 64 Stat. 903; 40 U.S.C. 72, 104, 106, and 
121; E.O. 1259 of October 25, 1910; E.O. 1862 of November 28, 1913; E.O. 
3524 of July 28, 1921.



Sec.  2103.1  General approaches to review of plans by the Commission.

    The Commission functions relate to the appearance of proposed 
projects within its purview as specified herein. These functions are to 
serve the purpose of conserving and enhancing the visual assets which 
contribute significantly to the character and quality of Washington as 
the nation's capital and which appropriately reflect the history and 
features of its development over two centuries. Where existing 
conditions detract from the overall appearance of official Washington or 
historic Georgetown--such as conditions caused by temporary, 
deteriorated, or abandoned buildings of little or no historical or 
architectural value, by interrupted developments, or by vacant lots not 
devoted to public use as parks or squares--the Commission will favor 
suitable corrections to these conditions. When changes or additions are 
proposed in other circumstances, the Commission may consider whether the 
public need or value of the project or the private interests to be 
served thereby justify making any change or addition, and it will 
consider whether the project can be accomplished in reasonable harmony 
with the nearby area, with a minimum loss of attractive features of the 
existing building or site, with due deference to the historical and 
architectural values affected, and without creating an anomalous 
disturbing element in the public view of the city.

[62 FR 4649, Jan. 31, 1997]



PART 2104_ENFORCEMENT OF NONDISCRIMINATION ON THE BASIS OF HANDICAP 
IN PROGRAMS OR ACTIVITIES CONDUCTED BY THE COMMISSION OF FINE ARTS--
Table of Contents



Sec.
2104.101 Purpose.
2104.102 Application.
2104.103 Definitions.
2104.104-2104.109 [Reserved]
2104.110 Self-evaluation.
2104.111 Notice.
2104.112-2104.129 [Reserved]
2104.130 General prohibitions against discrimination.
2104.131-2104.139 [Reserved]
2104.140 Employment.
2104.141-2104.148 [Reserved]
2104.149 Program accessibility: Discrimination prohibited.
2104.150 Program accessibility: Existing facilities.
2104.151 Program accessibility: New construction and alterations.
2104.152-2104.159 [Reserved]
2104.160 Communications.
2104.161-2104.169 [Reserved]
2104.170 Compliance procedures.

[[Page 576]]

2104.171-2104.999 [Reserved]

    Authority: 29 U.S.C. 794.

    Source: 51 FR 22895, 22896, June 23, 1986, unless otherwise noted.



Sec.  2104.101  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.  2104.102  Application.

    This part applies to all programs or activities conducted by the 
agency.



Sec.  2104.103  Definition.

    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 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

[[Page 577]]

life activities only as a result of the attitudes of others toward such 
impairment; or
    (iii) Has none of the impairments defined in subparagraph (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.  2104.140.
    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.
    Substantial impairment means a significant loss of the integrity of 
finished materials, design quality, or special character resulting from 
a permanent alteration.



Sec. Sec.  2104.104-2104.109  [Reserved]



Sec.  2104.110  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.  2104.111  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.



Sec. Sec.  2104.112-2104.129  [Reserved]



Sec.  2104.130  General prohibitions against discrimination.

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

[[Page 578]]

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.
    (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.



Sec. Sec.  2104.131-2104.139  [Reserved]



Sec.  2104.140  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

[[Page 579]]

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.



Sec. Sec.  2104.141-2104.148  [Reserved]



Sec.  2104.149  Program accessibility: Discrimination prohibited.

    Except as otherwise provided in Sec.  2104.150, 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.  2104.150  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.  2104.150(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--(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. 4151-4157), 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.  2104.150(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.  2104.150(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;

[[Page 580]]

    (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.  2104.151  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.



Sec. Sec.  2104.152-2104.159  [Reserved]



Sec.  2104.160  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 precribed 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.  2104.160 would 
result in such alteration or burdens.

[[Page 581]]

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.



Sec. Sec.  2104.161-2104.169  [Reserved]



Sec.  2104.170  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 Secretary, Commission of Fine Arts, shall be responsible for 
coordinating implementation of this section. Complaints may be sent to 
Secretary, Commission of Fine Arts, 708 Jackson Place NW., Washington, 
DC 20006.
    (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; 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.  2104.170(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, 22896, June 23, 1986, as amended at 51 FR 22895, June 23, 
1986]

[[Page 582]]



Sec. Sec.  2104.171-2104.999  [Reserved]



PART 2105_REQUIREMENTS FOR COMPLIANCE WITH THE FREEDOM OF INFORMATION ACT--
Table of Contents



                         Subpart A_Introduction

Sec.
2105.1 What should you know up front?
2105.2 What kinds of records are not covered by the regulations in this 
          part?

                     Subpart B_How To Make a Request

2105.3 Where should you send a FOIA request?
2105.4 How should you describe the records you seek?
2105.5 How will fee information affect the processing of your request?
2105.6 What information should you include about your fee category?
2105.7 Can you ask for records to be disclosed in a particular form or 
          format?
2105.8 What if your request seeks records about another person?
2105.9 May you ask for the processing of your request to be expedited?
2105.10 What contact information should your request include?

                      Subpart C_Processing Requests

2105.11 What should you know about how the Agency processes requests?
2105.12 How do consultations and referrals work?

                Subpart D_Timing of Responses to Requests

2105.13 In what order are responses usually made?
2105.14 What is multitrack processing and how does it affect your 
          request?
2105.15 What is the basic time limit for responding to a request?
2105.16 When can the Agency suspend the basic time limit?
2105.17 When may the Agency extend the basic time limit?
2105.18 When will expedited processing be provided and how will it 
          affect your request?

                     Subpart E_Responses to Requests

2105.19 How will the Agency respond to requests?
2105.20 How will the Agency grant requests?
2105.21 When will the Agency deny a request or procedural benefits?
2105.22 How will the Agency deny requests?
2105.23 What if the requested records contain both exempt and nonexempt 
          material?

               Subpart F_Handling Confidential Information

2105.24 May submitters of possibly confidential information designate 
          information as confidential when making submissions?
2105.25 When will the Agency notify a submitter of a request for their 
          possibly confidential information?
2105.26 What information will the Agency include when it notifies a 
          submitter of a request for their possibly confidential 
          information?
2105.27 When will the Agency not notify a submitter of a request for 
          their possibly confidential information?
2105.28 How and when may a submitter object to the disclosure of 
          confidential information?
2105.29 What must a submitter include in a detailed Exemption 4 
          objection statement?
2105.30 How will the Agency consider the submitter's objections?
2105.31 What if the Agency determines it will disclose information over 
          the submitter's objections?
2105.32 Will a submitter be notified of a FOIA lawsuit?
2105.33 Will you receive notification of activities involving the 
          submitter?
2105.34 Can an Agency release information protected by Exemption 4?

                             Subpart G_Fees

2105.35 What general principles govern fees?
2105.36 What are the requester fee categories?
2105.37 How does your requester category affect the fees you are 
          charged?
2105.38 How will fee amounts be determined?
2105.39 What search fees will you have to pay?
2105.40 What duplication fees will you have to pay?
2105.41 What review fees will you have to pay?
2105.42 What fees for other services will you have to pay?
2105.43 When will the Agency waive fees?
2105.44 When may you ask the Agency for a fee waiver?
2105.45 How will the Agency notify you if it denies your fee waiver 
          request?
2105.46 How will the Agency evaluate your fee waiver request?
2105.47 When will you be notified of anticipated fees?
2105.48 When will the Agency require advance payment?
2105.49 What if the Agency needs clarification about fee issues?
2105.50 How will you be billed?

[[Page 583]]

2105.51 How will the Agency collect fees owed?
2105.52 When will the Agency combine or aggregate requests?
2105.53 What if other statutes require the Agency to charge fees?

                    Subpart H_Administrative Appeals

2105.54 When may you file an appeal?
2105.55 How long do you have to file an appeal?
2105.56 How do you file an appeal?
2105.57 Who makes decisions on appeals?
2105.58 How are decisions on appeals issued?
2105.59 When can you expect a decision on your appeal?
2105.60 Can you receive expedited processing of appeals?
2105.61 Must you submit an appeal before seeking judicial review?

                      Subpart I_General Information

2105.62 Where are records made available?
2105.63 What are public liaisons?
2105.64 When will the Agency make records available without a FOIA 
          request?
2105.65 How will FOIA materials be preserved?
2105.66 How will an Agency handle a request for federally-funded 
          research data?
2105.67 What definitions apply to this part?

Appendix A to Part 2105--Fee Schedule

    Authority: 5 U.S.C. 552, as amended by Public Law 110-175, 121 Stat. 
2524 and Pub. L. 114-185, 130 Stat. 538.

    Source: 84 FR 27722, June 14, 2019, unless otherwise noted.



                         Subpart A_Introduction



Sec.  2105.1  What should you know up front?

    (a) This part contains the rules that the Agency follows in 
processing records under the Freedom of Information Act (FOIA), 5 U.S.C. 
552.
    (b) Definitions of terms used in this part are found at Sec.  
2105.67.
    (c) This part should be read in conjunction with the text of the 
FOIA and the OMB Fee Guidelines.
    (d) This part does not entitle any person to any service or to the 
disclosure of any record that is not required under the FOIA.
    (e) You are encouraged to review the Agency's FOIA libraries before 
filing a FOIA request. The material you seek may be immediately 
available electronically at no cost.



Sec.  2105.2  What kinds of records are not covered by the regulations 
in this part?

    In the event that the Agency identifies records that may be subject 
to exclusion from the requirements of the FOIA pursuant to 5 U.S.C. 
552(c), the agency must confer with legal counsel and the Department of 
Justice, Office of Information Policy, to obtain approval to apply the 
exclusion.



                     Subpart B_How To Make a Request



Sec.  2105.3  Where should you send a FOIA request?

    (a) To make a request for Agency records, you must contact the 
Agency directly.
    (b) Address requests to the FOIA Officer found in the Agency 
contacts at https://www.cfa.gov/foia.



Sec.  2105.4  How should you describe the records you seek?

    (a) You must reasonably describe the records sought. A reasonable 
description contains sufficient detail to enable Agency personnel 
familiar with the subject matter of the request to locate the records 
with a reasonable amount of effort.
    (b) You should include as much detail as possible about the specific 
records or types of records that you are seeking. This will assist the 
Agency in identifying the requested records (for example, time frames 
involved or specific personnel who may have the requested records). For 
example, whenever possible, identify:
    (1) The date, title or name, author, recipient, and subject of any 
particular records you seek;
    (2) The office that created the records you seek;
    (3) The timeframe for which you are seeking records; and
    (4) Any other information that will assist the Agency in locating 
the records.
    (c) The Agency's FOIA Officer or Public Liaison can assist you in 
formulating or reformulating a request in an effort to better identify 
the records you seek.

[[Page 584]]

    (d) If the Agency determines that your request does not reasonably 
describe the records sought, the Agency will inform you what additional 
information you need to provide in order to reasonably describe the 
records that you seek so the requested records can be located with a 
reasonable amount of effort. The Agency will also notify you that it 
will not be able to comply with your request unless the additional 
information it has requested is received from you in writing within 20 
workdays after the Agency has requested it and that you may appeal its 
determination. If you receive this type of notification, you may wish to 
discuss it with the Agency's designated FOIA contact or the FOIA Public 
Liaison (see Sec.  2105.63). If the Agency does not receive your written 
response containing the additional information within 20 workdays after 
the Agency has requested it, the Agency will presume that you are no 
longer interested in the records and will close the file on the request.



Sec.  2105.5  How will fee information affect the processing of your request?

    (a) Your request should state that you will pay all fees associated 
with processing the request, that you will pay fees up to a specified 
amount, and/or that you are seeking a fee waiver.
    (b) If the Agency anticipates that the fees for processing the 
request will exceed the amount you have agreed to pay, or if you did not 
agree in writing to pay processing fees or request a fee waiver and the 
Agency anticipates the processing costs will exceed $50 (see Sec.  
2105.35(g)) or will exceed your entitlements (see Sec.  2105.37), the 
Agency will notify you:
    (1) Of the estimated processing fees;
    (2) Of its need for either an advance payment (see Sec.  2105.48) or 
your written assurance that you will pay the anticipated fees (or fees 
up to a specified amount); and
    (3) That it will not be able to fully comply with your request 
unless you provide a fee waiver request and/or the requested written 
assurance or advance payment.
    (c) If the Agency does not receive a written response from you 
within 20 workdays after requesting the information in paragraph (b) of 
this section, it will presume that you are no longer interested in the 
records and will close the file on the request.
    (d) If you are seeking a fee waiver, your request must include a 
justification that addresses and meets the criteria in Sec. Sec.  
2105.43 and 2105.46. Failure to provide sufficient justification will 
result in a denial of the fee waiver request. If you are seeking a fee 
waiver, you may also indicate the amount you are willing to pay if the 
fee waiver is denied. This allows the Agency to process the request for 
records while it considers your fee waiver request.
    (e) If you are required to pay a fee and it is later determined on 
appeal that you were entitled to a full or partial fee waiver, you will 
receive an appropriate refund.



Sec.  2105.6  What information should you include about your fee category?

    (a) A request should indicate your fee category (that is, whether 
you are a commercial-use requester, news media, educational or 
noncommercial scientific institution, or other requester as described in 
Sec. Sec.  2105.36 and 2105.37).
    (b) If you submit a FOIA request on behalf of another person or 
organization (for example, if you are an attorney submitting a request 
on behalf of a client), the Agency will determine the fee category by 
considering the underlying requester's identity and intended use of the 
information.
    (c) If your fee category is unclear, the Agency may ask you for 
additional information (see Sec.  2105.49).



Sec.  2105.7  Can you ask for records to be disclosed in a particular 
form or format?

    (a) Generally, you may choose the form or format of disclosure for 
records requested. The Agency must provide the records in the requested 
form or format if the Agency can readily reproduce the record in that 
form or format.
    (b) The Agency may charge you the direct costs involved in 
converting records to the requested format if the Agency does not 
normally maintain the records in that format (see Sec.  2105.42).

[[Page 585]]



Sec.  2105.8  What if your request seeks records about another person?

    (a) When a request seeks records about another person, you may 
receive greater access by submitting proof that the person either:
    (1) Consents to the release of the records to you (for example, a 
notarized authorization signed by that person); or
    (2) Is deceased (for example, a copy of a death certificate or an 
obituary).
    (b) The Agency can require you to supply additional information if 
necessary to verify that a particular person has consented to disclosure 
or is deceased.



Sec.  2105.9  May you ask for the processing of your request to be expedited?

    You may ask for the processing of your request to be expedited. If 
you are seeking expedited processing, your request must include a 
justification that addresses and meets the criteria in Sec.  2105.18 and 
includes the certification required at Sec.  2105.18(b)(2).



Sec.  2105.10  What contact information should your request include?

    A request should include your name and a way (such as a mailing or 
email address) for the Agency to send responsive records to you and/or 
to request additional information or clarification of your request. You 
may also wish to include a daytime telephone number (or the name and 
telephone number of an appropriate contact).



                      Subpart C_Processing Requests



Sec.  2105.11  What should you know about how the Agency processes requests?

    (a) Except as described in Sec.  2105.12, the Agency is responsible 
for responding to the request and for making a reasonable effort to 
search for responsive records.
    (b) In determining which records are responsive to a request, the 
Agency will include only records in its possession and control on the 
date that it begins its search.
    (c) The Agency will make reasonable efforts to search for the 
requested records. As part of its reasonable efforts, the Agency will 
search paper and/or electronic records (for example, emails), as 
appropriate. The Agency will not search for records in an electronic 
form or format if these efforts would significantly interfere with the 
operation of the Agency's automated information system.
    (d) If the Agency receives a request for records in its possession 
that it did not create or that another Federal agency is substantially 
concerned with, it may undertake consultations and/or referrals as 
described in Sec.  2105.12.



Sec.  2105.12  How do consultations and referrals work?

    (a) Consultations and referrals generally occur outside the Agency.
    (1) Paragraphs (b) through (f) of this section address consultations 
and referrals that occur outside the Agency when the Agency has 
responsive records.
    (2) Paragraph (g) of this section addresses what happens when the 
Agency has no responsive records but believes responsive records may be 
in the possession of a Federal agency outside the Agency.
    (b) If, while responding to a request, the Agency locates records 
that originated with another Federal agency, it usually will refer the 
request and any responsive records to that other agency for a release 
determination and direct response.
    (c) If the Agency refers records to another agency, it will document 
the referral and maintain a copy of the records that it refers and 
notify you of the referral in writing. When the Agency notifies you of 
the referral, it will tell you whether the referral was for part or all 
of your request and provide the name and contact information for the 
other agency. You may treat such a response as a denial of records and 
file an appeal, in accordance with the procedures in Sec.  2105.56.
    (d) The standard referral procedure is not appropriate where 
disclosure of the identity of the Agency to which the referral would be 
made could harm an interest protected by an applicable exemption, such 
as the exemptions that protect personal privacy or national security 
interests. In such instances, in order to avoid harm to an interest 
protected by an applicable exemption, the

[[Page 586]]

Agency that received the request will coordinate with the originating 
agency and seek its views on the disclosability of the record. The 
release determination for the record that is the subject of the 
coordination will then be conveyed to the requester by the Agency that 
originally received the request.
    (e) If the Agency locates records that originated with another 
Federal agency while responding to a request, the Agency will make the 
release determination itself (after consulting with the originating 
agency) when:
    (1) The record is of primary interest to the Agency (for example, a 
record may be of primary interest to the Agency if it was developed or 
prepared according to the Agency's regulations or directives, or in 
response to an Agency request);
    (2) The Agency is in a better position than the originating agency 
to assess whether the record is exempt from disclosure;
    (3) The originating agency is not subject to the FOIA; or
    (4) It is more efficient or practical depending on the 
circumstances.
    (f) On receipt of any request involving classified information, the 
Agency will determine whether the information is currently and properly 
classified in accordance with applicable classification rules. Whenever 
a request involves a record containing information that has been 
classified or may be appropriate for classification by another agency 
under any applicable Executive order concerning the classification of 
records, the receiving agency will refer the responsibility for 
responding to the request regarding that information to the agency that 
classified the information, or that should consider the information for 
classification. Whenever the Agency's record contains information that 
has been derivatively classified (for example, when it contains 
information classified by another agency), the Agency will refer the 
responsibility for responding to that portion of the request to the 
agency that classified the underlying information.
    (g) If the Agency receives a request for records not in its 
possession, but that the Agency believes may be in the possession of a 
Federal agency outside the Agency, the Agency will return the request to 
you, may advise you to submit it directly to the other agency, will 
notify you that the Agency cannot comply with the request, and will 
close the request. If you believe this response was in error, you may 
file an appeal in accordance with the procedures in Sec.  2105.56.



                Subpart D_Timing of Responses to Requests



Sec.  2105.13  In what order are responses usually made?

    The Agency ordinarily will respond to requests according to their 
order of receipt within their processing track.



Sec.  2105.14  What is multitrack processing and how does it affect 
your request?

    (a) Processing tracks are used to distinguish simple requests from 
more complex ones on the basis of the estimated number of workdays 
needed to process the request.
    (b) In determining the number of workdays needed to process the 
request, the Agency considers factors such as the number of pages 
involved in processing the request or the need for consultations.
    (c) The basic processing tracks are designated as follows:
    (1) Simple: Requests in this track will take between one to five 
workdays to process;
    (2) Normal: Requests in this track will take between six to twenty 
workdays to process;
    (3) Complex: Requests in this track will take between twenty-one 
workdays and sixty workdays to process; or
    (4) Voluminous: Requests in this track involve very complex 
processing challenges, which may include a large number of potentially 
responsive records, and will take over sixty workdays to process.
    (d) The Agency also has a specific processing track for requests 
that are granted expedited processing under the standards in Sec.  
2105.18. These requests will be processed as soon as practicable.
    (e) The Agency must advise you of the track into which your request 
falls and, when appropriate, will offer you an opportunity to narrow 
your request

[[Page 587]]

so that it can be placed in a different processing track. If you request 
placement in a particular processing track but the Agency places you in 
a different processing track, the Agency will provide you with an 
explanation of why you were not placed in the processing track you 
requested.
    (f) The use of multitrack processing does not alter the statutory 
deadline for an Agency to determine whether to comply with your FOIA 
request (see Sec.  2105.15).
    (g) You may inquire about the status of your request, including its 
estimated processing completion date, by contacting the FOIA Public 
Liaison, whose contact information may be found at https://www.cfa.gov/
foia.



Sec.  2105.15  What is the basic time limit for responding to a request?

    (a) Ordinarily, the Agency has 20 workdays (including the date of 
receipt) to determine whether to comply with a request, but unusual 
circumstances may allow the Agency to take longer than 20 workdays (see 
Sec.  2105.17).
    (b) A consultation or referral under Sec.  2105.12 does not restart 
the statutory time limit for responding to a request.



Sec.  2105.16  When can the Agency suspend the basic time limit?

    (a) The basic time limit in Sec.  2105.15 may be temporarily 
suspended for the time it takes you to respond to one written 
communication from the Agency reasonably asking for clarifying 
information.
    (b) The basic time limit in Sec.  2105.15 may also repeatedly be 
temporarily suspended for the time it takes you to respond to written 
communications from the Agency that are necessary to clarify issues 
regarding fee assessment (see Sec.  2105.49).



Sec.  2105.17  When may the Agency extend the basic time limit?

    (a) The Agency may extend the basic time limit, if unusual 
circumstances exist, by notifying you in writing of:
    (1) The unusual circumstances involved; and
    (2) The date by which it expects to complete processing the request.
    (b) If the processing time will extend beyond a total of 30 
workdays, the Agency will:
    (1) Give you an opportunity to limit the scope of the request or 
agree to an alternative time period for processing; and
    (2) Make available its FOIA Public Liaison (see Sec.  2105.63) to 
assist in resolving any disputes between you and the Agency, and notify 
you of your right to seek dispute resolution from the Office of 
Government Information Services (OGIS).
    (c) If the Agency extends the time limit under this section and you 
do not receive a response in accordance with Sec.  2105.15(a) in that 
time period, you may consider the request denied and file an appeal in 
accordance with the procedures in Sec.  2105.56.
    (d) Your refusal to reasonably modify the scope of a request or 
arrange an alternative time frame for processing a request after being 
given the opportunity to do so may be considered for litigation purposes 
as a factor when determining whether exceptional circumstances exist.



Sec.  2105.18  When will expedited processing be provided and how will it 
affect your request?

    (a) The Agency will provide expedited processing upon request if you 
demonstrate to the satisfaction of the Agency that there is a compelling 
need for the records. The following circumstances demonstrate a 
compelling need:
    (1) Where failure to expedite the request could reasonably be 
expected to pose an imminent threat to the life or physical safety of an 
individual; or
    (2) Where there is an urgency to inform the public about an actual 
or alleged Federal Government activity and the request is made by a 
person primarily engaged in disseminating information.
    (i) In most situations, a person primarily engaged in disseminating 
information will be a representative of the news media.

[[Page 588]]

    (ii) If you are not a full time member of the news media, to qualify 
for expedited processing here, you must establish that your main 
professional activity or occupation is information dissemination, 
although it need not be your sole occupation.
    (iii) The requested information must be the type of information 
which has particular value that will be lost if not disseminated 
quickly; this ordinarily refers to a breaking news story of general 
public interest.
    (iv) Information of historical interest only or information sought 
for litigation or commercial activities would not qualify, nor would a 
news media deadline unrelated to breaking news.
    (b) If you seek expedited processing, you must submit a statement 
that:
    (1) Explains in detail how your request meets one or both of the 
criteria in paragraph (a) of this section; and
    (2) Certifies that your explanation is true and correct to the best 
of your knowledge and belief.
    (c) You may ask for expedited processing of your request by writing 
to the appropriate FOIA contact in the Agency that maintains the records 
requested any time before the Agency issues its final response to your 
request. When making a request for expedited processing of an 
administrative appeal, submit the request to the appropriate deciding 
official for FOIA appeals.
    (d) The Agency must notify you of its decision to grant or deny 
expedited processing within 10 calendar days of receiving an expedited 
processing request.
    (e) If expedited processing is granted, the request will be given 
priority, placed in the processing track for expedited requests, and be 
processed as soon as practicable.
    (f) If expedited processing is denied, the Agency will:
    (1) Inform you of the basis for the denial, including an explanation 
of why the expedited processing request does not meet the Agency's 
expedited processing criteria under this section; and
    (2) Notify you of the right to appeal the decision on expedited 
processing in accordance with the procedures in subpart H of this part.
    (g) If you appeal the Agency's expedited processing decision, that 
portion of your appeal (if it is properly formatted under Sec.  2105.56) 
will be processed before appeals that do not challenge expedited 
processing decisions.
    (h) If the Agency has not responded to the request for expedited 
processing within 10 calendar days, you may file an appeal (for 
nonresponse in accordance with Sec.  2105.54(a)(8)).



                     Subpart E_Responses to Requests



Sec.  2105.19  How will the Agency respond to requests?

    (a) When the Agency informs you of its decision to comply with a 
request by granting, partially granting, or denying the request, it will 
do so in writing and in accordance with the deadlines in subpart D of 
this part. The Agency's written response will include a statement about 
the services offered by its FOIA Public Liaison. The Agency's written 
response will also include a statement about the services offered by the 
Office of Government Information Services (OGIS).
    (b) If the Agency determines that your request will take longer than 
10 workdays to process, the Agency immediately will send you a written 
acknowledgment that includes the request's individualized tracking 
number and processing track (see Sec.  2105.14(e)). The acknowledgement 
may also include a brief description of the subject of your request.



Sec.  2105.20  How will the Agency grant requests?

    (a) Once the Agency makes a determination to grant a request in full 
or in part, it must notify you in writing.
    (b) The notification will inform you of the availability of its FOIA 
Public Liaison to offer assistance, and of any fees charged under 
subpart G of this part.
    (c) The Agency will release records (or portions of records) to you 
promptly upon payment of any applicable fees (or before then, at its 
discretion).
    (d) If the records (or portions of records) are not included with 
the Agency's notification, the Agency will advise you how, when, and 
where the

[[Page 589]]

records will be released or made available.



Sec.  2105.21  When will the Agency deny a request or procedural benefits?

    (a) The Agency denies a request when it makes a decision that:
    (1) A requested record is exempt, in full or in part;
    (2) The request does not reasonably describe the records sought;
    (3) A requested record does not exist, cannot be located, or is not 
in the Agency's possession and/or control; or
    (4) A requested record is not readily reproducible in the form or 
format you seek.
    (b) The Agency denies a procedural benefit only, and not access to 
the underlying records, when it makes a decision that:
    (1) A fee waiver, or another fee-related issue, will not be granted; 
or
    (2) Expedited processing will not be provided.
    (c) The Agency must consult with legal counsel before it denies a 
fee waiver request or withholds all or part of a requested record.



Sec.  2105.22  How will the Agency deny requests?

    (a) The Agency must notify you in writing of any denial of your 
request.
    (b) The denial notification must include:
    (1) The name and title or position of the person responsible for the 
denial, along with an office phone number or email address;
    (2) A statement of the reasons for the denial;
    (3) A reference to any FOIA exemption applied by the Agency to 
withhold records in full or in part, along with a statement that the 
Agency reasonably foresees that disclosure would harm an interest 
protected by the applied exemption(s) or disclosure is prohibited by 
law;
    (4) An estimate of the volume of any records withheld in full or in 
part (for example, by providing the number of pages or some other 
reasonable form of estimation), unless including an estimate would harm 
an interest protected by an exemption used to withhold the records and 
the Agency explains this harm to you;
    (5) The name and title of legal counsel consulted (if the Agency is 
denying a fee waiver request or withholding all or part of a requested 
record);
    (6) Advisement of the right to seek dispute resolution services from 
the Agency's FOIA Public Liaison and the Office of Government 
Information Services (OIGS); and
    (7) A statement that the denial may be appealed under subpart H of 
this part and a description of the procedures in subpart H of this part.



Sec.  2105.23  What if the requested records contain both exempt 
and nonexempt material?

    If responsive records contain both exempt and nonexempt material, 
the Agency will consult with legal counsel, as discussed in Sec.  
2105.21(c). After consultation, the Agency will partially grant and 
partially deny the request by:
    (a) Segregating and releasing the nonexempt information, unless the 
nonexempt material is so intertwined with the exempt material that 
disclosure of it would leave only meaningless words and phrases;
    (b) Indicating on the released portion of the record the amount of 
information deleted and the FOIA exemption under which the deletion was 
made, unless doing so would harm an interest protected by the FOIA 
exemption used to withhold the information; and
    (c) If technically feasible, indicating the amount of information 
deleted and the FOIA exemption under which the deletion was made at the 
place in the record where the deletion was made.



               Subpart F_Handling Confidential Information



Sec.  2105.24  May submitters of possibly confidential information 
designate information as confidential when making submissions?

    (a) The Agency encourages, but does not require, submitters to 
designate confidential information in good faith (in other words, to 
identify specific information as information the submitter considers 
protected from disclosure under Exemption 4 of the FOIA, found at 5 
U.S.C. 552(b)(4)), at the time

[[Page 590]]

of submission or reasonably soon thereafter.
    (b) The designations discussed in paragraph (a) of this section 
assist the Agency in identifying what information obtained from the 
submitter is possibly confidential and triggers the requirement for 
Agency-provided notifications under Sec.  2105.25(a)(1).



Sec.  2105.25  When will the Agency notify a submitter of a request 
for their possibly confidential information?

    (a) Except as outlined in Sec.  2105.27, an Agency must promptly 
notify a submitter in writing when it receives a FOIA request if:
    (1) The requested information has been designated by the submitter 
as confidential information under Sec.  2105.24(a); or
    (2) The requested information has not been designated as 
confidential information by the submitter under Sec.  2105.24(a), but 
the Agency identifies it as possibly confidential information.
    (b) If a voluminous number of submitters are involved, the Agency 
may publish a notice in a manner reasonably calculated to reach the 
attention of the submitters (for example, in newspapers or newsletters, 
the Agency's website, or the Federal Register) instead of providing a 
written notice to each submitter.



Sec.  2105.26  What information will the Agency include when it notifies 
a submitter of a request for their possibly confidential information?

    A notice to a submitter must include:
    (a) Either a copy of the request, the exact language of the request, 
or (for notices published under Sec.  2 105.25(b)) a general description 
of the request;
    (b) Either a description of the possibly confidential information 
located in response to the request or a copy of the responsive records, 
or portions of records, containing the information;
    (c) A description of the procedures for objecting to the release of 
the possibly confidential information under Sec. Sec.  2105.28 and 
2105.29;
    (d) A time limit for responding to the Agency--no less than 10 
workdays from receipt or publication of the notice (as set forth in 
Sec.  2105.25(b))--to object to the release and to explain the basis for 
the objection;
    (e) Notice that information contained in the submitter's objections 
may itself be subject to disclosure under the FOIA;
    (f) Notice that the Agency, not the submitter, is responsible for 
deciding whether the information will be released or withheld;
    (g) A request for the submitter's views on whether they still 
consider the information to be confidential if the submitter designated 
the material as confidential commercial or financial information 10 or 
more years before the request; and
    (h) Notice that failing to respond within the time frame specified 
under paragraph (d) of this section will create a presumption that the 
submitter has no objection to the disclosure of the information in 
question.



Sec.  2105.27  When will the Agency not notify a submitter of a request 
for their possibly confidential information?

    The notice requirements of Sec.  2105.26 will not apply if:
    (a) The information has been lawfully published or officially made 
available to the public; or
    (b) Disclosure of the information is required by a statute other 
than the FOIA or by a regulation (other than this part) issued in 
accordance with the requirements of Executive Order 12600.



Sec.  2105.28  How and when may a submitter object to the disclosure 
of confidential information?

    (a) If a submitter has any objections to the disclosure of 
confidential information, the submitter should provide a detailed 
written statement to the Agency that specifies all grounds for 
withholding the particular information under any FOIA exemption (see 
Sec.  2105.29 for further discussion of Exemption 4 objection 
statements).
    (b) A submitter who does not respond within the time period 
specified under Sec.  2105.26(d) will be considered to have no objection 
to disclosure of the information. Responses received by the Agency after 
this time period will not be considered by the Agency unless the 
appropriate Agency FOIA contact determines, in his or her sole 
discretion, that good cause exists to accept the late response.

[[Page 591]]



Sec.  2105.29  What must a submitter include in a detailed Exemption 4 
objection statement?

    If a submitter has any objections to disclosure, it should provide 
the Agency a detailed written statement that specifies all grounds for 
withholding the particular information under any exemption of the FOIA. 
In order to rely on Exemption 4 as basis for nondisclosure, the 
submitter must explain why the information constitutes a trade secret or 
commercial or financial information that is confidential.



Sec.  2105.30  How will the Agency consider the submitter's objections?

    (a) The Agency must carefully consider a submitter's objections and 
specific grounds for nondisclosure in deciding whether to disclose the 
requested information.
    (b) The Agency, not the submitter, is responsible for deciding 
whether the information will be released or withheld.



Sec.  2105.31  What if the Agency determines it will disclose information 
over the submitter's objections?

    If the Agency decides to disclose information over the objection of 
a submitter, the Agency must notify the submitter by certified mail or 
other traceable mail, return receipt requested. The notification must be 
sent to the submitter's last known address and must include:
    (a) The specific reasons why the Agency determined that the 
submitter's disclosure objections do not support withholding the 
information;
    (b) Copies of the records or information the Agency intends to 
release; and
    (c) Notice that the Agency intends to release the records or 
information no less than 10 workdays after receipt of the notice by the 
submitter.



Sec.  2105.32  Will a submitter be notified of a FOIA lawsuit?

    If you file a lawsuit seeking to compel the disclosure of 
confidential information, the Agency must promptly notify the submitter.



Sec.  2105.33  Will you receive notification of activities 
involving the submitter?

    If any of the following occur, the Agency will notify you:
    (a) The Agency provides the submitter with notice and an opportunity 
to object to disclosure;
    (b) The Agency notifies the submitter of its intent to disclose the 
requested information; or
    (c) A submitter files a lawsuit to prevent the disclosure of the 
information.



Sec.  2105.34  Can an Agency release information protected by Exemption 4?

    If an Agency determines that the requested information is protected 
from release by Exemption 4 of the FOIA, the Agency has no discretion to 
release the information. Release of information protected from release 
by Exemption 4 is prohibited by the Trade Secrets Act, a criminal 
provision found at 18 U.S.C. 1905.



                             Subpart G_Fees



Sec.  2105.35  What general principles govern fees?

    (a) The Agency will charge for processing requests under the FOIA in 
accordance with this subpart and with the OMB Fee Guidelines.
    (b) The Agency may contact you for additional information to resolve 
fee issues.
    (c) The Agency ordinarily will collect all applicable fees before 
sending copies of records to you.
    (d) You may usually pay fees by check, certified check, or money 
order made payable to the ``Department of Treasury.''
    (e) The Agency should ensure that it conducts searches, review, and 
duplication in the most efficient and the least expensive manner so as 
to minimize costs for both you and the Agency.
    (f) If the Agency does not comply with any of the FOIA's statutory 
time limits:
    (1) Except as provided in paragraph (f)(2) of this section, the 
Agency cannot assess any search fees (or, if you are in the fee category 
of a representative of the news media or an educational and 
noncommercial scientific institution, duplication fees).

[[Page 592]]

    (2)(i) If the Agency has determined that unusual circumstances apply 
(as the term is defined in Sec.  2105.67) and the Agency provided you a 
timely written notice to extend the basic time limit in accordance with 
Sec.  2105.17, the noncompliance is excused for an additional 10 
workdays.
    (ii) If the Agency has determined that unusual circumstances apply 
and more than 5,000 pages are necessary to respond to the request, the 
noncompliance is excused if the Agency has provided you a timely written 
notice in accordance with Sec.  2105.17 and has discussed with you via 
written mail, email, or telephone (or made not less than 3 good-faith 
attempts to do so) how you could effectively limit the scope of the 
request.
    (iii) If a court has determined that exceptional circumstances exist 
(as that term is defined in Sec.  2105.67), the noncompliance is excused 
for the length of time provided by the court order.
    (g) If the fee for processing your request is less than $50, you 
will not be charged unless multiple requests are aggregated under Sec.  
2105.52 to an amount that is $50 or more.
    (h) If you fail to pay any FOIA-related fee within 30 calendar days 
of the date of billing, the processing of any new or ongoing requests 
and/or appeals from you shall ordinarily be suspended.
    (i) If you would like to reformulate your request so it will meet 
your needs at a lower cost, you may wish to seek assistance from the 
Agency's designated FOIA contact or its FOIA Public Liaison (see Sec.  
2105.63).



Sec.  2105.36  What are the requester fee categories?

    (a) There are three categories of requesters for the purposes of 
determining fees:
    (1) Commercial-use;
    (2) Educational and noncommercial scientific institutions and 
representatives of news media; and
    (3) All others.
    (b) If you do not submit sufficient information in your FOIA request 
for the Agency to determine your proper fee category, the Agency may ask 
you to provide additional information (see Sec.  2105.49). If you 
request placement in a particular fee category but the Agency places you 
in a different fee category, the Agency will provide you with an 
explanation of why you were not placed in the fee category you requested 
(for example, if you were placed in the commercial use requester 
category rather than the category you requested, the Agency will 
describe how the records would further your commercial, trade, or profit 
interests).
    (c) See Sec.  2105.67 for the definitions of each of these fee 
categories.



Sec.  2105.37  How does your requester category affect the fees 
you are charged?

    You will be charged as shown in the following table:

                                            Table 1 to Sec.   2105.37
----------------------------------------------------------------------------------------------------------------
          Requester category                 Search fees              Review fees            Duplication fees
----------------------------------------------------------------------------------------------------------------
Commercial use requester.............  Yes....................  Yes....................  Yes.
Educational and noncommercial          No.....................  No.....................  Yes (first 100 pages,
 scientific institutions and                                                              or equivalent volume,
 representative of news media                                                             free).
 requester.
All other requesters.................  Yes (first two hours     No.....................  Yes (first 100 pages,
                                        free).                                            or equivalent volume,
                                                                                          free).
----------------------------------------------------------------------------------------------------------------



Sec.  2105.38  How will fee amounts be determined?

    (a) The Agency will charge the types of fees discussed in this 
subpart unless a waiver of fees is required under Sec.  2105.37 or has 
been granted under Sec.  2105.43.
    (b) Because the types of fees discussed in this subpart already 
account for the overhead costs associated with a given fee type, the 
Agency should not add any additional costs to those charges.

[[Page 593]]



Sec.  2105.39  What search fees will you have to pay?

    (a) The Agency will charge search fees for all requests, subject to 
the restrictions of Sec. Sec.  2105.35(f), 2105.37, and 2105.38(a). The 
Agency may charge you for time spent searching even if it does not 
locate any responsive records or if it determines that the records are 
entirely exempt from disclosure.
    (b) For each quarter hour spent by personnel searching for requested 
records, including electronic searches that do not require new 
programming, the fees will be the average hourly General Schedule (GS) 
base salary, plus the District of Columbia locality payment, plus 16 
percent for benefits, of employees in the following three categories, as 
applicable:
    (1) Clerical--Based on GS-6, Step 5, pay (all employees at GS-7 and 
below are classified as clerical for this purpose);
    (2) Professional--Based on GS-11, Step 7, pay (all employees at GS-8 
through GS-12 are classified as professional for this purpose); and
    (3) Managerial--Based on GS-14, Step 2, pay (all employees at GS-13 
and above are classified as managerial for this purpose).
    (c) You can review the current fee schedule for the categories 
discussed in paragraph (b) of this section at https://www.cfa.gov/foia.
    (d) Some requests may require retrieval of records stored at a 
Federal records center operated by the National Archives and Records 
Administration. For these requests, the Agency will charge additional 
costs in accordance with the Transactional Billing Rate Schedule 
established by the National Archives and Records Administration.



Sec.  2105.40  What duplication fees will you have to pay?

    (a) The Agency will charge duplication fees, subject to the 
restrictions of Sec. Sec.  2105.35(f), 2105.37, and 2105.38(a).
    (b) If photocopies or scans are supplied, the Agency will provide 
one copy per request at the cost determined by the table in appendix A 
to this part.
    (c) For other forms of duplication, the Agency will charge the 
actual costs of producing the copy, including the time spent by 
personnel duplicating the requested records. For each quarter hour spent 
by personnel duplicating the requested records, the fees will be the 
same as those charged for a search under Sec.  2105.39(b).
    (d) If the Agency must scan paper records to accommodate your 
preference to receive records in an electronic format or print 
electronic records to accommodate your preference to receive records in 
a paper format, you will pay both the per page amount noted in appendix 
A to this part and the time spent by personnel scanning or printing the 
requested records. For each quarter hour spent by personnel scanning or 
printing the requested records, the fees will be the same as those 
charged for a search under Sec.  2105.39(b).



Sec.  2105.41  What review fees will you have to pay?

    (a) The Agency will charge review fees if you make a commercial-use 
request, subject to the restrictions of Sec. Sec.  2105.35(f), 2105.37, 
and 2105.38(a).
    (b) The Agency will assess review fees in connection with the 
initial review of the record (the review conducted by the Agency to 
determine whether an exemption applies to a particular record or portion 
of a record).
    (c) The Agency will not charge for reviews at the administrative 
appeal stage of exemptions applied at the initial review stage. However, 
if the appellate authority determines that an exemption no longer 
applies, any costs associated with the Agency's re-review of the records 
to consider the use of other exemptions may be assessed as review fees.
    (d) The Agency will charge review fees at the same rates as those 
charged for a search under Sec.  2105.39(b).
    (e) The Agency can charge review fees even if the record(s) reviewed 
ultimately is not disclosed.



Sec.  2105.42  What fees for other services will you have to pay?

    (a) Although not required to provide special services, if the Agency 
chooses to do so as a matter of administrative discretion, it will 
charge you the direct costs of providing the service.

[[Page 594]]

    (b) Examples of these services include providing multiple copies of 
the same record, converting records that are not already maintained in a 
requested format to the requested format, obtaining research data under 
Sec.  2105.66, sending records by means other than first class mail, and 
conducting a search that requires the creation of a new computer search 
program to locate the requested records.
    (c) The Agency will notify you of these fees before they accrue and 
will obtain your written assurance of payment or an advance payment 
before proceeding (see Sec. Sec.  2105.47 and 2105.48).



Sec.  2105.43  When will the Agency waive fees?

    (a) The Agency will release records responsive to a request without 
charge (in other words, it will give you a full fee waiver) or at a 
reduced charge (in other words, it will give you a partial fee waiver, 
as discussed further in paragraph (b) of this section) if the Agency 
determines, based on all available information, that you have 
demonstrated (by addressing and meeting each of the criteria listed in 
Sec.  2105.46) that disclosing the information is:
    (1) In the public interest because it is likely to contribute 
significantly to public understanding of Government operations or 
activities, and
    (2) Not primarily in your commercial interest.
    (b) A partial fee waiver may be appropriate if some but not all of 
the requested records are likely to contribute significantly to public 
understanding of the operations and activities of the Government.
    (c) When deciding whether to waive or reduce fees, the Agency will 
rely on the fee waiver justification submitted in your request letter. 
If the letter does not include sufficient justification, the Agency will 
deny the fee waiver request. The Agency may, at its discretion, request 
additional information from you (see Sec.  2105.49).
    (d) The burden is on you to justify entitlement to a fee waiver. 
Requests for fee waivers are decided on a case-by-case basis under the 
criteria discussed in paragraph (a) of this section and Sec.  2105.46. 
If you have received a fee waiver in the past, that does not mean you 
are automatically entitled to a fee waiver for every request submitted.
    (e) The Agency must not make value judgments about whether the 
information at issue is ``important'' enough to be made public; it is 
not the Agency's role to attempt to determine the level of public 
interest in requested information.



Sec.  2105.44  When may you ask the Agency for a fee waiver?

    (a) You should request a fee waiver when your request is first 
submitted to the Agency (see Sec.  2105.5).
    (b) You may submit a fee waiver request at a later time if the 
Agency has not yet completed processing your request.



Sec.  2105.45  How will the Agency notify you if it denies your fee 
waiver request?

    If the Agency denies your request for a fee waiver, it will notify 
you, in writing, of the following:
    (a) The basis for the denial, including a full explanation of why 
the fee waiver request does not meet the Agency's fee waiver criteria in 
Sec.  2105.46;
    (b) The name and title or position of each person responsible for 
the denial;
    (c) The name and title of legal counsel consulted;
    (d) Advisement of the right to seek dispute resolution services from 
the Agency's FOIA Public Liaison and the Office of Government 
Information Services (OIGS);
    (e) Your right to appeal the denial under subpart H of this part and 
a description of the requirements set forth therein, within 30 workdays 
from the date of the fee waiver denial letter; and
    (f) Your anticipated fees, in accordance with Sec.  2105.47.



Sec.  2105.46  How will the Agency evaluate your fee waiver request?

    (a) In deciding whether your fee waiver request meets the 
requirements of Sec.  2105.43(a)(1), the Agency will consider the 
criteria listed in paragraphs (a)(1) through (4) of this section.
    (1) How the records concern the operations or activities of the 
Federal Government.
    (2) How disclosure is likely to contribute to public understanding 
of

[[Page 595]]

those operations or activities, including:
    (i) How the contents of the records are meaningfully informative;
    (ii) The logical connection between the content of the records and 
the operations or activities;
    (iii) How disclosure will contribute to the understanding of a 
reasonably broad audience of persons interested in the subject, as 
opposed to your individual understanding;
    (iv) Your identity, vocation, qualifications, and expertise 
regarding the requested information and information that explains how 
you plan to disclose the information in a manner that will be 
informative to the understanding of a reasonably broad audience of 
persons interested in the subject, as opposed to your individual 
understanding; and
    (v) Your ability and intent to disseminate the information to a 
reasonably broad audience of persons interested in the subject (for 
example, how and to whom do you intend to disseminate the information). 
If we have categorized you as a representative of the news media under 
Sec.  2105.36, we will presume you have this ability and intent.
    (3) How disclosure is likely to significantly contribute to the 
understanding of a reasonably broad audience of persons interested in 
the subject, as opposed to your individual understanding, including:
    (i) Whether the information being requested is new;
    (ii) Whether the information would confirm or clarify data that has 
been released previously;
    (iii) How disclosure will increase the level of public understanding 
of the operations or activities of the Agency that existed prior to 
disclosure; and
    (iv) Whether the information is already publicly available. If the 
Government previously has published the information you are seeking or 
it is routinely available to the public in a library, reading room, 
through the internet, or as part of the administrative record for a 
particular issue, it is less likely that there will be a significant 
contribution from release.
    (4) How the public's understanding of the subject in question will 
be enhanced to a significant extent by the disclosure.
    (b) In deciding whether the fee waiver meets the requirements in 
Sec.  2105.43(a)(2), the Agency will consider any commercial interest of 
yours that would be furthered by the requested disclosure.
    (1) You are encouraged to provide explanatory information regarding 
this consideration.
    (2) The Agency will not find that disclosing the requested 
information will be primarily in your commercial interest where the 
public interest is greater than any identified commercial interest in 
disclosure.
    (3) If you do have a commercial interest that would be furthered by 
disclosure, explain how the public interest in disclosure would be 
greater than any commercial interest you or your organization may have 
in the documents.
    (i) Your identity, vocation, and intended use of the requested 
records are all factors to be considered in determining whether 
disclosure would be primarily in your commercial interest.
    (ii) If you are a representative of a news media organization 
seeking information as part of the news gathering process, we will 
presume that the public interest outweighs your commercial interest.
    (iii) If you represent a business/corporation/association or you are 
an attorney representing such an organization, we will presume that your 
commercial interest outweighs the public interest unless you demonstrate 
otherwise.



Sec.  2105.47  When will you be notified of anticipated fees?

    (a) The Agency will notify you under this section unless:
    (1) The anticipated fee is less than $50 (see Sec.  2105.35(g));
    (2) You have been granted a full fee waiver; or
    (3) You have previously agreed to pay all the fees associated with 
the request.
    (b) If none of the exceptions in paragraph (a) of this section 
apply, the Agency will:
    (1) Promptly notify you of the estimated costs for search, review, 
and/or duplication;
    (2) Ask you to provide written assurance within 20 workdays that you 
will

[[Page 596]]

pay all fees or fees up to a designated amount;
    (3) Notify you that it will not be able to comply with your FOIA 
request unless you provide the written assurance requested; and
    (4) Give you an opportunity to reduce the fee by modifying the 
request.
    (c) If the Agency does not receive your written response containing 
the additional information that resolves any fee issues, in accordance 
with paragraphs (b)(2) and/or (4) of this section, within 20 workdays 
after the Agency has requested it, the Agency will presume that you are 
no longer interested in the records and will close the file on the 
request.
    (d) After the Agency begins processing a request, if it finds that 
the actual cost will exceed the amount you previously agreed to pay, the 
Agency will:
    (1) Stop processing the request;
    (2) Promptly notify you of the higher amount and ask you to provide 
written assurance of payment; and
    (3) Notify you that it will not be able to fully comply with your 
FOIA request unless you provide the written assurance requested; and
    (4) Give you an opportunity to reduce the fee by modifying the 
request.
    (e) If you wish to modify your request in an effort to reduce fees, 
the Agency's FOIA Officer or Public Liaison can assist you.



Sec.  2105.48  When will the Agency require advance payment?

    (a) The Agency may require advance payment before starting further 
work when it finds the estimated fee is over $250.
    (1) When the Agency determines or estimates that a total fee to be 
charged under this section will exceed $250.00, it may require that you 
make an advance payment up to the amount of the entire anticipated fee 
before beginning to process the request. The Agency may elect to process 
the request prior to collecting fees when it receives a satisfactory 
assurance of full payment from a requester with a history of prompt 
payment.
    (2) If you have previously failed to pay a properly charged FOIA fee 
within 30 calendar days of the billing date, the Agency may require that 
you pay the full amount due, plus any applicable interest on that prior 
request. The Agency may require that you make an advance payment of the 
full amount of any anticipated fee before it begins to process a new 
request or continues to process a pending request or any pending appeal.
    (b) If the Agency believes that you did not pay a previous FOIA fee 
within 30 calendar days of the date of billing, the Agency will require 
you to either:
    (1) Demonstrate you paid prior fee within 30 calendar days of the 
date of billing; or
    (2) Pay any unpaid amount of the previous fee, plus any applicable 
interest penalties (see Sec.  2105.51), and pay in advance the estimated 
fee for the new request.
    (c) When the Agency notifies you that an advance payment is due 
under paragraph (a) of this section, it will give you an opportunity to 
reduce the fee by modifying the request.
    (d) Your payment of the funds you owe the Agency for work it has 
already completed before records are sent to you is not an advance 
payment under paragraph (a) of this section.
    (e) If the Agency requires advance payment, it will start further 
work only after receiving the advance payment. It will also notify you 
that it will not be able to comply with your FOIA request unless you 
provide the advance payment. Unless you pay the advance payment within 
20 workdays after the date of the Agency's fee letter, the Agency will 
presume that you are no longer interested and will close the file on the 
request.



Sec.  2105.49  What if the Agency needs clarification about fee issues?

    If your FOIA request does not contain sufficient information for the 
Agency to determine your proper fee category or leaves another fee issue 
unclear, the Agency may ask you to provide additional clarification. If 
it does so, the Agency will notify you that it will not be able to 
comply with your FOIA request unless you provide the clarification 
requested.

[[Page 597]]



Sec.  2105.50  How will you be billed?

    If you are required to pay a fee associated with a FOIA request, the 
Agency will send a bill for collection.



Sec.  2105.51  How will the Agency collect fees owed?

    (a) The Agency may charge interest on any unpaid bill starting on 
the 31st day following the billing date.
    (b) The Agency will assess interest charges at the rate provided in 
31 U.S.C. 3717 and interest will accrue from the billing date until the 
Agency receives payment.
    (c) The Agency will follow the provisions of the Debt Collection Act 
of 1982 (Pub. L. 97-365, 96 Stat. 1749), as amended, and its 
administrative procedures, including the use of consumer reporting 
agencies, collection agencies, and offset to collect overdue amounts and 
interest.
    (d) This section does not apply if you are a state, local, or tribal 
government.



Sec.  2105.52  When will the Agency combine or aggregate requests?

    (a) The Agency may aggregate requests and charge accordingly when it 
reasonably believes that you, or a group of requesters acting in concert 
with you, are attempting to avoid fees by dividing a single request into 
a series of requests on a single subject or related subjects.
    (1) The Agency may presume that multiple requests of this type made 
within a 30-day period have been made to avoid fees.
    (2) The Agency may aggregate requests separated by a longer period 
only where there is a reasonable basis for determining that aggregation 
is warranted in view of all the circumstances involved.
    (b) The Agency will not aggregate multiple requests involving 
unrelated matters.



Sec.  2105.53  What if other statutes require the Agency to charge fees?

    (a) The fee schedule in appendix A to this part does not apply to 
fees charged under any statute that specifically requires the Agency to 
set and collect fees for particular types of records.
    (b) If records otherwise responsive to a request are subject to a 
statutorily-based fee schedule, the Agency will inform you whom to 
contact to obtain the records.



                    Subpart H_Administrative Appeals



Sec.  2105.54  When may you file an appeal?

    (a) You may file an appeal when:
    (1) The Agency withholds records, or parts of records;
    (2) The Agency informs you that your request has not adequately 
described the records sought;
    (3) The Agency informs you that it does not possess or cannot locate 
responsive records and you have reason to believe this is incorrect or 
that the search was inadequate;
    (4) The Agency did not address all aspects of the request for 
records;
    (5) You believe there is a procedural deficiency (for example, fees 
are improperly calculated or you have been placed in the wrong fee 
category);
    (6) The Agency denied your request for a fee waiver;
    (7) The Agency did not make a decision within the time limits in 
Sec.  2105.15 or, if applicable, Sec.  2105.16; or
    (8) The Agency denied, or was late in responding to, a request for 
expedited processing filed under the procedures in Sec.  2105.18.
    (b) An appeal under paragraph (a)(8) of this section relates only to 
the request for expedited processing and does not constitute an appeal 
of the underlying request for records. Special procedures apply to 
requests for expedited processing of an appeal (see Sec.  2105.60).
    (c) Before filing an appeal, you may wish to communicate with the 
contact person listed in the FOIA response, the Agency's FOIA Officer, 
and/or the FOIA Public Liaison to see if the issue can be resolved 
informally. However, appeals must be received by the FOIA Appeals 
Officer within the time limits in Sec.  2105.55 or they will not be 
processed.



Sec.  2105.55  How long do you have to file an appeal?

    (a) Appeals covered by Sec.  2105.54(a)(1) through (5) must be 
received by the FOIA Appeals Officer no later than 90

[[Page 598]]

days from the date of the final response.
    (b) Appeals covered by Sec.  2105.54(a)(6) must be received by the 
FOIA Appeals Officer no later than 90 days from the date of the letter 
denying the fee waiver.
    (c) Appeals covered by Sec.  2105.54(a)(7) may be filed any time 
after the time limit for responding to the request has passed.
    (d) Appeals covered by Sec.  2105.54(a)(8) should be filed as soon 
as possible.
    (e) Appeals arriving or delivered after 5 p.m. Eastern Time, Monday 
through Friday, will be deemed received on the next workday.



Sec.  2105.56  How do you file an appeal?

    (a) You must submit the appeal in writing by mail, fax or email to 
the FOIA Appeals Officer (using the address available at https://
www.cfa.gov/foia/). Your failure to send an appeal directly to the FOIA 
Appeals Officer may delay processing.
    (b) The appeal must include:
    (1) Copies of all correspondence between you and the Agency 
concerning the FOIA request, including the request and the Agency's 
response (if there is one); and
    (2) An explanation of why you believe the Agency's response was in 
error.
    (c) The appeal should include your name, mailing address, daytime 
telephone number (or the name and telephone number of an appropriate 
contact), email address, and fax number (if available) in case the 
Agency needs additional information or clarification.
    (d) An appeal concerning a denial of expedited processing or a fee 
waiver denial should also demonstrate fully how the criteria in Sec.  
2105.18 or Sec. Sec.  2105.43 and 2105.46 are met.
    (e) All communications concerning an appeal should be clearly marked 
with the words: ``FREEDOM OF INFORMATION APPEAL.''
    (f) The Agency will reject an appeal that does not attach all 
correspondence required by paragraph (b)(1) of this section, unless the 
FOIA Appeals Officer determines, in his or her sole discretion, that 
good cause exists to accept the defective appeal. The time limits for 
responding to an appeal will not begin to run until the correspondence 
is received.



Sec.  2105.57  Who makes decisions on appeals?

    (a) The FOIA Appeals Officer is the deciding official for FOIA 
appeals.
    (b) When necessary, the appropriate deciding official for FOIA 
appeals will consult other appropriate offices, including legal counsel, 
for denials of records and fee waivers.
    (c) The deciding official for FOIA appeals normally will not make a 
decision on an appeal if the request becomes a matter of FOIA 
litigation.



Sec.  2105.58  How are decisions on appeals issued?

    (a) A decision on an appeal must be made in writing.
    (b) A decision that upholds the Agency's determination in whole or 
in part must contain a statement that identifies the reasons for the 
affirmance, including any FOIA exemptions applied. The decision must 
provide you with notification of the statutory right to file a lawsuit 
and will inform you of the dispute resolution services offered by the 
Office of Government Information Services (OGIS) of the National 
Archives and Records Administration as a non-exclusive alternative to 
litigation. If the Agency's decision is remanded or modified on appeal, 
the Agency will notify you of that determination in writing. The Agency 
will then further process the request in accordance with that appeal 
determination and will respond directly to you.
    (c) Dispute resolution is a voluntary process. If the Agency agrees 
to participate in the dispute resolution services provided by OGIS, it 
will actively engage as a partner to the process in an attempt to 
resolve the dispute.



Sec.  2105.59  When can you expect a decision on your appeal?

    (a) The basic time limit for responding to an appeal is 20 workdays 
after receipt of an appeal meeting the requirements of Sec.  2105.56.
    (b) If the Agency is unable to reach a decision on your appeal 
within the given time limit for response, the appropriate deciding 
official for FOIA appeals will notify you of your statutory

[[Page 599]]

right to seek review in a United States District Court.



Sec.  2105.60  Can you receive expedited processing of appeals?

    (a) To receive expedited processing of an appeal, you must 
demonstrate to the Agency's satisfaction that the appeal meets one of 
the criteria under Sec.  2105.18 and include a statement that the need 
for expedited processing is true and correct to the best of your 
knowledge and belief.
    (b) The appropriate deciding official for FOIA appeals will advise 
you whether the Agency will grant expedited processing within 10 
calendar days of receiving the appeal.
    (c) If the appropriate deciding official for FOIA appeals decides to 
grant expedited processing, he or she will give the appeal priority over 
other pending appeals and process it as soon as practicable.



Sec.  2105.61  Must you submit an appeal before seeking judicial review?

    Before seeking review by a court of the Agency's adverse 
determination, you generally must first submit a timely administrative 
appeal.



                      Subpart I_General Information



Sec.  2105.62  Where are records made available?

    Records that are required by the FOIA to be made proactively 
available for public inspection and copying are accessible on the 
Agency's website. They may also be available at the Agency's office 
location.



Sec.  2105.63  What are public liaisons?

    (a) The Agency has a FOIA Officer or Public Liaison who can assist 
requesters who have concerns about the service they received when 
seeking records or who are seeking assistance under Sec.  2105.3 or 
Sec.  2105.35(i).
    (b) FOIA Public Liaisons report to the Agency's Chief FOIA Officer 
and you can raise concerns to them about the service you have received.
    (c) FOIA Public Liaisons are responsible for assisting in reducing 
delays, increasing transparency and understanding of the status of 
requests, and assisting in resolving disputes.
    (d) A list of the Agency's FOIA Public Liaisons is available at 
https://www.cfa.gov/foia.



Sec.  2105.64  When will the Agency make records available 
without a FOIA request?

    (a) Each Agency must:
    (1) Determine which of its records must be made publicly available 
under the FOIA (for example, certain frequently requested records);
    (2) Identify additional records of interest to the public that are 
appropriate for public disclosure; and
    (3) Post those records in FOIA libraries.
    (b) Because of these proactive disclosures, you are encouraged to 
review the Agency's FOIA libraries before filing a FOIA request. The 
material you seek may be immediately available electronically at no 
cost.



Sec.  2105.65  How will FOIA materials be preserved?

    (a) Each Agency must preserve all correspondence pertaining to the 
requests that it receives under subpart B of this part, as well as 
copies of all requested records, until disposition or destruction is 
authorized by the General Records Schedule 4.2 of the National Archives 
and Records Administration (NARA) or another NARA-approved records 
schedule.
    (b) Materials that are identified as responsive to a FOIA request 
will not be disposed of or destroyed while the request or a related 
appeal or lawsuit is pending. This is true even if they would otherwise 
be authorized for disposition or destruction under the General Records 
Schedule 4.2 of NARA or another NARA-approved records schedule.



Sec.  2105.66  How will an Agency handle a request for federally-funded 
research data?

    (a) If you request research data that were used by the Federal 
Government in developing certain kinds of agency actions, and the 
research data relate to published research findings produced under an 
award, in accordance with OMB Circular A-110:

[[Page 600]]

    (1) If the Agency was the awarding agency, it will request the 
research data from the recipient;
    (2) The recipient must provide the research data within a reasonable 
time; and
    (3) The Agency will review the research data to see if it can be 
released under the FOIA.
    (b) If the Agency obtains the research data solely in response to 
your FOIA request, the Agency may charge you a reasonable fee equaling 
the full incremental cost of obtaining the research data.
    (1) This fee should reflect costs incurred by the Agency, the 
recipient, and applicable subrecipients.
    (2) This fee is in addition to any fees the Agency may assess under 
the FOIA.
    (c) The Agency will forward a copy of the request to the recipient, 
who is responsible for searching for and reviewing the requested 
information in accordance with these FOIA regulations. The recipient 
will forward a copy of any responsive records that are located, along 
with any recommendations concerning the releasability of the data, and 
the total cost incurred in searching for, reviewing, and providing the 
data.
    (d) The Agency will review and consider the recommendations of the 
recipient regarding the releasability of the requested research data. 
However, the Agency, not the recipient, is responsible for deciding 
whether the research data will be released or withheld.



Sec.  2105.67  What definitions apply to this part?

    For the purposes of this part, the following definitions apply:
    Agency means the Commission of Fine Arts.
    Commercial interest means a commercial, trade, or profit interest as 
these terms are commonly understood. Your status as profitmaking or non-
profitmaking is not the deciding factor in determining whether you have 
a commercial interest.
    Commercial use means a use that furthers your commercial, trade or 
profit interests or that of the person on whose behalf the request is 
made.
    Confidential information means trade secrets or commercial or 
financial information (that is privileged or confidential and obtained 
by the Agency from a person) that may be protected from disclosure under 
Exemption 4 of the FOIA.
    Direct costs means those resources that the Agency expends in 
searching for and duplicating (and, in the case of commercial-use 
requests, reviewing) records to respond to a FOIA request. For example, 
direct costs include the salary of the employee performing the 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, such as 
photocopiers and scanners. Direct costs do not include overhead expenses 
such as the costs of space and of heating or lighting a facility.
    Duplication means reproducing a copy of a record or of the 
information contained in it necessary to respond to a FOIA request. 
Copies can take the form of paper, audiovisual materials, or electronic 
records, among others.
    Educational institution means any school that operates a program of 
scholarly research. In order to fall within this category, you must show 
that the request is authorized by and made under the auspices of, a 
qualifying institution and that the records are not sought for a 
commercial use, but rather are sought to further scholarly research.
    Exceptional circumstances means a delay that does not result from a 
predictable workload of requests (unless the Agency demonstrates 
reasonable progress in reducing its backlog of pending requests).
    Exempt means the record in question, or a portion thereof, is not 
subject to disclosure due to one or more of the FOIA's nine statutory 
exemptions, found at 5 U.S.C. 552(b)(1)-(9).
    Exemption means one or more of the FOIA's nine statutory exemptions, 
found at 5 U.S.C. 552(b)(1)-(9).
    Expedited processing means giving a FOIA request priority and 
processing it ahead of other requests pending in the Agency because you 
have shown a compelling need for the records.
    Fee category means one of the three categories, discussed in 
Sec. Sec.  2105.36 and

[[Page 601]]

2105.37, that agencies place you in for the purpose of determining 
whether you will be charged fees for search, review, and duplication.
    FOIA means the Freedom of Information Act, 5 U.S.C. 552, as amended.
    FOIA libraries means a physical or electronic compilation of records 
required to be made available to the public for inspection and copying 
under 5 U.S.C. 552(a)(2). It also includes a physical or electronic 
compilation of records that the Agency, at its discretion, makes 
available to the public for inspection and copying.
    Frequently requested records means records that have been released 
to any person in response to a FOIA request and that have been 
requested, or that the Agency anticipates will be requested, at least 
two more times under the FOIA.
    Multitrack processing means placing simple requests, requiring 
relatively minimal review, in one processing track and more voluminous 
and complex requests in one or more other tracks. Requests in each track 
are ordinarily processed on a first-in/first-out basis.
    Noncommercial scientific institution means an institution that is 
not operated for commerce, trade or profit, and that is operated solely 
for the purpose of conducting scientific research the results of which 
are not intended to promote any particular product or industry. To be in 
this category, you must show that the request is authorized by and is 
made under the auspices of a qualifying institution and that the records 
are not sought for a commercial use but are sought to further scientific 
research.
    OMB Fee Guidelines means the Uniform Freedom of Information Fee 
Schedule and Guidelines published by the Office of Management and Budget 
on March 27, 1987.
    Published means, for the purposes of Sec.  2105.66 only, when:
    (1) Research findings are published in a peer-reviewed scientific or 
technical journal; or
    (2) A Federal agency publicly and officially cites the research 
findings in support of an agency action that has the force and effect of 
law.
    Recipient means, for the purposes of Sec.  2105.66 only, an 
organization receiving financial assistance directly from Federal 
awarding agencies to carry out a project or program. The term includes 
public and private institutions of higher education, public and private 
hospitals, and other quasi-public and private non-profit organizations. 
The term may include commercial organizations, foreign or international 
organizations (such as agencies of the United Nations) which are 
recipients, subrecipients, or contractors or subcontractors of 
recipients or subrecipients at the discretion of the Federal awarding 
agency. The term does not include Government-owned contractor-operated 
facilities or research centers providing continued support for mission-
oriented, large-scale programs that are Government-owned or controlled, 
or are designated as federally-funded research and development centers.
    Record means an agency record that is either created or obtained by 
an agency and is under agency possession and control at the time of the 
FOIA request, or is maintained by an entity under Government contract 
for the purposes of records management.
    Representative of the news media means any person or entity that 
gathers information of potential interest to a segment of the public, 
uses its editorial skills to turn the raw materials into a distinct 
work, and distributes that work to an audience. The term news as used in 
this definition means information that is about current events or that 
would be of current interest to the public. Examples of news media 
entities are newspapers, television, websites, or radio stations 
broadcasting to the public at large, and publishers of periodicals (but 
only if such entities qualify as disseminators of news) who make their 
products available for purchase by or subscription by or free 
distribution to the general public. These examples are not all 
inclusive. As methods of news delivery evolve, alternative 
representatives of news media may come into being. A freelance 
journalist will qualify as a news-media entity if he or she can 
demonstrate a solid basis for expecting publication through that entity,

[[Page 602]]

whether or not the journalist is actually employed by that entity (for 
example, a publication contract would present a solid basis for such an 
expectation).
    Research data means, for the purposes of Sec.  2105.66 only, the 
recorded factual material commonly accepted in the historic and/or 
architectural communities as necessary to validate research findings, 
but not any of the following: Preliminary analyses, drafts of scientific 
papers, plans for future research, peer reviews, or communications with 
colleagues. The term recorded as used in this definition excludes 
physical objects (e.g., laboratory samples). Research data also do not 
include:
    (1) Trade secrets, commercial information, materials necessary to be 
held confidential by a researcher until they are published, or similar 
information which is protected under law; and
    (2) Personnel and medical information and similar information the 
disclosure of which would constitute a clearly unwarranted invasion of 
personal privacy, such as information that could be used to identify a 
particular person in a research study.
    Review means the examination of a record located in response to a 
request to determine whether any portion of it is exempt from 
disclosure. Review time includes processing any record for disclosure, 
such as doing all that is necessary to prepare the record for 
disclosure, including the process of redacting the record and marking 
the appropriate exemptions. Review time also includes time spent both 
obtaining and considering any formal objection to disclosure made by a 
confidential information submitter under subpart G of this part, but it 
excludes time spent resolving general legal or policy issues regarding 
the application of FOIA exemptions.
    Search means the process of looking for and retrieving records 
responsive to a request. Search time includes page-by-page or line-by-
line identification of information within records; and the reasonable 
efforts expended to locate and retrieve electronic records.
    Submitter means any person or entity outside the Federal Government 
from whom the Agency obtains confidential information, directly or 
indirectly. The term includes, but is not limited to individuals, 
corporations, and state, local, tribal, and foreign governments.
    Unusual circumstances means the need to search for and collect 
requested records from field facilities or other establishments that are 
separate from the office processing the request; the need to search for, 
collect, and examine a voluminous amount of separate and distinct 
records which are demanded in a single request; or the need for 
consultation, which shall be conducted with all practicable speed, with 
another agency, or among two or more components of the Agency, having a 
substantial interest in the determination of the request.
    Workday means a regular Federal workday. It excludes Saturdays, 
Sundays, or Federal legal public holidays. Items arriving or delivered 
after 5 p.m. Eastern Time will be deemed received on the next workday.
    You means a person requesting records, or filing an appeal, under 
the FOIA.





               Sec. Appendix A to Part 2105--Fee Schedule

------------------------------------------------------------------------
              Types of records                           Fee
------------------------------------------------------------------------
(1) Physical records:
    Pages no larger than 8.5 x 14 inches,    $.15 per page ($.30 for
     when reproduced by standard office       double-sided copying).
     copying machines or scanned into an
     electronic format.
    Color copies of pages no larger than     $.90 per page.
     8.5 x 11 inches.
    Pages larger than 8.5 x 14 inches......  Direct cost to CFA.
    Color copies of pages no larger than 11  $1.50 per page.
     x 17 inches.
    Photographs and records requiring        Direct cost to CFA.
     special handling (for example, because
     of age, size, or format).
(2) Electronic records:
    Charges for services related to          Direct cost to CFA.
     processing requests for electronic
     records.
(3) Certification:
    Each certificate of verification         $.25.
     attached to authenticate copies of
     records.

[[Page 603]]

 
(4) Postage:
    Charges that exceed the cost of first    Postage or delivery charge.
     class postage, such as express mail or
     overnight delivery.
(5) Other Services:
    Cost of special services or materials,   Direct cost to CFA.
     other than those provided for by this
     fee schedule, when requester is
     notified of such costs in advance and
     agrees to pay them.
------------------------------------------------------------------------

 PART 2106_RULES FOR COMPLIANCE WITH 5 U.S.C. 552a, THE PRIVACY ACT OF 
                                  1974

Sec.
2106.1 Rules for determining if an individual is the subject of a 
          record.
2106.2 Requests for access.
2106.3 Access to the accounting of disclosures from records.
2106.4 Requests for copies of records.
2106.5 Requests to amend records.
2106.6 Request for review.
2106.7 Schedule of fees.

    Authority: Pub. L. 93-579, 88 Stat. 1896 (5 U.S.C. 552a(f)).

    Source: 40 FR 52369, Nov. 10, 1975, unless otherwise noted. 
Redesignated and amended at 51 FR 23056, June 25, 1986.



Sec.  2106.1  Rules for determining if an individual is the subject 
of a record.

    (a) Individuals desiring to know if a specific system of records 
maintained by the Commission of Fine Arts contains a record pertaining 
to them should address their inquiries to the Secretary, Commission of 
Fine Arts, 708 Jackson Place, NW., Washington, DC 20006. The written 
inquiry should contain a specific reference to the system of records 
maintained by CFA listed in the CFA Notices of Systems of Records or it 
should describe the type of record in sufficient detail to reasonably 
identify the system of records. Notice of CFA Systems of Records will be 
made in the Federal Register and copies of the notices will be available 
upon request to the Secretary when so published. A compilation of such 
notices will also be made and published by the Office of the Federal 
Register in accordance with section 5 U.S.C. 552a(f).
    (b) At a minimum, the request should contain sufficient identifying 
information to allow CFA to determine if there is a record pertaining to 
the individual making the request in a particular system of records. In 
instances where identification is insufficient to insure disclosure to 
the individual to whom the information pertains in view of the 
sensitivity of the information, CFA reserves the right to solicit from 
the requester additional identifying information.
    (c) Ordinarily the requester will be informed whether the named 
system of records contains a record pertaining to the requester within 
10 days of the receipt of such a request (excluding Saturdays, Sundays, 
and legal Federal holidays). Such a response will also contain or 
reference the procedures which must be followed by the individual making 
the request in order to gain access to the record.
    (d) Whenever a response cannot be made within 10 days, the Secretary 
will inform the requester of the reasons for the delay and the date by 
which a response may be anticipated.



Sec.  2106.2  Requests for access.

    (a) Requirement for written requests. Individuals desiring to gain 
access to a record pertaining to them in a system of records maintained 
by CFA must submit their request in writing in accordance with the 
procedures set forth in paragraph (b) of this section.
    (b) Procedures. (1) Content of the request. The request for access 
to a record in a system of records shall be addressed to the Secretary, 
at the address cited above; and shall name the system of records or 
contain a description (as concise as possible) of such system of 
records. The request should state that the request is pursuant to the 
Privacy Act of 1974. In the absence of such a statement, if the request 
is for a record pertaining to the requester maintained by CFA in a 
system of records, the request will be presumed to be made under the 
Privacy Act of 1974. The requester should include any other information 
which may assist in the rapid identification of the record

[[Page 604]]

for which access is being requested (e.g., maiden name, dates of 
employment, etc.).
    (2) Requirements for identification will normally be limited to the 
presentation of any standard picture and signature or signature 
identification card, such as driver's license, so that a comparison of 
the signature and the signature on the original request may be made. The 
appearing individual will be read paragraph (3), subsection (i) to title 
5 U.S.C. 552a which specifies the penalty for knowingly or willfully 
requesting or obtaining a record concerning an individual from an agency 
under false pretenses and asked to sign a statement attesting to the 
fact that he or she understands the paragraph and that he or she is, in 
fact, the individual who made the request (or the individual authorized 
to receive the disclosure by the requesting individual). This signature 
will be compared with the other two. If the appearing individual is 
other than the requesting individual, then he or she must also present a 
letter of introduction signed by the requesting individual so that the 
comparison of signature may be made.
    (c) CFA action on request. (1) A request for access will ordinarily 
be answered within 10 days (excluding Saturdays, Sundays, and legal 
Federal holidays), except when the Secretary determines otherwise, in 
which case the requester will be informed of the reason for the delay 
and an anticipated date by which the request will be answered. When the 
request can be answered within 10 days, it shall include the following:
    (i) A statement that there is a record as requested or a statement 
that there is not a record in the system of records maintained by CFA;
    (ii) A statement as to whether access will be granted only by 
providing a copy of the record through the mail; or the address of the 
location and the date and time at which the record may be examined. In 
the event the requester is unable to meet the specified date and time, 
alternate arrangements may be made with the official specified in 
paragraph (b)(1) of this section;
    (iii) A statement, when appropriate, that examination in person will 
be the sole means of granting access only when the Secretary has 
determined that it would not unduly impede the requester's right of 
access;
    (iv) The amount of fees charged, if any (see Sec. Sec.  2106.4 and 
2106.7); and
    (v) The name, title, and telephone number of the CFR official having 
operational control over the record.
    (A) Access by the parent of a minor, or legal guardian. A parent of 
a minor, upon presenting suitable personal identification, may access on 
behalf of the minor any record pertaining to the minor maintained by CFA 
in a system of records. A legal guardian may similarly act on behalf of 
an individual declared to be incompetent due to physical or mental 
incapacity or age by a court of competent jurisdiction, upon the 
presentation of documents authorizing the legal guardian to so act; and 
upon suitable personal identification of the guardian.
    (B) Granting access when accompanied or represented by another 
individual. When an individual requesting access to his or her record in 
a system of records maintained by CFA wishes to be accompanied or 
represented by another individual during the course of the examination 
of the record, the individual making the request shall submit to the 
official having operational control of the record a signed statement 
authorizing that person access to the record.
    (C) Access in response to congressional inquiries. Disclosure may be 
made to a congressional office from the record of an individual in 
response to an inquiry from the congressional office made at the request 
of that individual.
    (vi) Medical records. The records in a system of records which are 
medical records shall be disclosed to the individual in such a manner 
and following such procedures as the Secretary shall direct. When CFA, 
in consultation with a physician, determines that the disclosure of 
medical information could have an adverse effect upon the individual to 
whom it pertains, CFA may transmit such information to a physician named 
by the individual.

[[Page 605]]

    (vii) Exceptions. Nothing in this section shall be construed to 
entitle an individual the right to access to any information compiled in 
reasonable anticipation of a civil action or proceeding.

[40 FR 52369, Nov. 10, 1975, as amended at 41 FR 2385, Jan. 16, 1976]



Sec.  2106.3  Access to the accounting of disclosures from records.

    Rules governing the granting of access to the accounting of 
disclosures are the same as those for granting access to the records 
outlined in Sec.  2106.2 of this part.



Sec.  2106.4  Requests for copies of records.

    Rules governing requests for copies of records are the same as those 
for the granting of access to the records outlined in Sec.  2106.2 of 
this part (see also Sec.  2106.7 for rules regarding fees).



Sec.  2106.5  Requests to amend records.

    (a) Requirements for written requests. Individuals desiring to amend 
a record that pertains to them in a system of records maintained by CFA 
must submit their request in writing in accordance with the procedures 
set forth herein unless the requirement is waived by the official having 
responsibility for the system of records. Records not subject to the 
Privacy Act of 1974 will not be amended in accordance with these 
provisions; however, individuals who believe that such records are 
inaccurate may bring this to the attention of the CFA.
    (b) Procedures. (1)(i) The request to amend a record in a system of 
records shall be addressed to the Secretary. Included in the request 
shall be the name of the system and a brief description of the record 
proposed for amendment. In the event the request to amend the record is 
the result of the individual's having gained access to the record as set 
forth above, copies of previous correspondence between the requester and 
CFA will serve in lieu of a separate description of the record.
    (ii) Individuals desiring assistance in the preparation of a request 
to amend a record should contact the Secretary at the address cited 
above.
    (iii) The exact portion of the record the individual seeks to have 
amended should be clearly indicated. If possible, the proposed 
alternative language should also be set forth, or, at a minimum, the 
facts which the individual believes are not accurate, relevant, timely, 
or complete, should be set forth with such particularity as to permit 
CFA not only to understand the individual's basis for the request, but 
also to make an appropriate amendment to the record.
    (iv) The request must also set forth the reasons why the individual 
believes his record is not accurate, relevant, timely, or complete. In 
order to avoid the retention by CFA of personal information merely to 
permit the verification of records, the burden of persuading CFA to 
amend a record will be upon the individual. The individual must furnish 
sufficient facts to persuade the official in charge of the system of the 
inaccuracy, irrelevancy, timeliness, or incompleteness of the record.
    (2) CFA action on the request. To the extent possible, a decision 
upon a request to amend a record will be made within 10 days (excluding 
Saturdays, Sundays, and legal Federal holidays). In the event that a 
decision cannot be made within this time frame, the individual making 
the request will be informed within the 10 days of the expected date for 
a decision. The decision upon a request for amendment will include the 
following:
    (i) The decision of the Commission of Fine Arts whether to grant in 
full, or deny any part of the request to amend the record;
    (ii) The reasons for the determination for any part of the request 
which is denied;
    (iii) The name and address of the official with whom an appeal of 
the denial may be lodged;
    (iv) The name and address of the official designated to assist, as 
necessary, and upon the request of, the individual making the request in 
preparation of the appeal;
    (v) A description of the review of the appeal within CFA (see Sec.  
2106.6); and
    (vi) A description of any other procedures which may be required of 
the individual in order to process an appeal.

[[Page 606]]



Sec.  2106.6  Request for review.

    (a) Individuals wishing to request a review of the decision by CFA 
with regard to an initial request to amend a record in accordance with 
the provisions of Sec.  2106.5 of this part, should submit the request 
for review in writing and, to the extent possible, include the 
information specified in paragraph (a) of this section. Individuals 
desiring assistance in the preparation of their request for review 
should contact the Secretary at the address provided herein.
    (b) The request for review should contain a brief description of the 
record involved or in lieu thereof, copies of the correspondence from 
CFA in which the request to amend was denied and also the reasons why 
the requester believes that the disputed information should be amended. 
The request for review should make reference to the information 
furnished by the individual in support of his claim and the reasons as 
required by Sec.  2106.5 of this part set forth by CFA in its decision 
denying the amendment. Appeals filed without a complete statement by the 
requester setting forth the reasons for the review will, of course, be 
processed. However, in order to make the appellate process as meaningful 
as possible, the requester's disagreement should be understandably set 
forth. In order to avoid the unnecessary retention of personal 
information, CFA reserves the right to dispose of the material 
concerning the request to amend a record if no request for review in 
accordance with this section is received by CFA within 180 days of the 
mailing by CFA of its decision upon an initial request. A request for 
review received after the 180-day period may, at the discretion of the 
Secretary, be treated as an initial request to amend a record.
    (c) The request for review should be addressed to the Secretary.
    (d) Upon receipt of a request for review, the Secretary will convene 
a review group composed of the Secretary and the Chairman. This group 
will review the basis for the requested review and will develop a 
recommended course of action to the office's Committee on Freedom of 
Information and Privacy (hereinafter referred to as the Committee). If 
at any time additional information is required from the requestee, the 
Secretary is authorized to acquire it or authorize its acquisition from 
the requester.
    (e) The Committee is composed of:
    (1) The Chairman;
    (2) The Secretary;
    (3) The Assistant Secretary;
    (4) The Administrative Assistant.
    (f) The Committee will review the request for review and the 
recommended course of action and will recommend a decision on the 
request for review to the Chairman, who has the final authority 
regarding appeals.
    (g) The Chairman will inform the requester in writing of the 
decision on the request for review within 30 days (excluding Saturdays, 
Sundays, and legal Federal holidays) from the date of receipt by CFA of 
the individual's request for review unless the Chairman extends the 30-
day period for good cause. The extension of and the reasons therefor 
will be sent by CFA to the requester within the initial 30-day period. 
Included in the notice of a decision being reviewed, if the decision 
does not grant in full the request for review, will be a description of 
the steps the individual may take to obtain judicial review of such a 
decision, and a statement that the individual may file a concise 
statement with CFA setting forth the individual's reasons for his 
disagreement with the decision upon the request for review. The 
Secretary has the authority to determine the ``conciseness'' of the 
statement, taking into account the scope of the disagreement and the 
complexity of the issues. Upon the filing of a proper concise statement 
by the individual, any subsequent disclosure of the information in 
dispute will have the information in dispute clearly noted and a copy of 
the concise statement furnished, as well as a concise statement by CFA 
setting forth its reasons for not making the requested changes, if CFA 
chooses to file such a statement. A copy of the individual's statement, 
and, if it chooses, CFA's statement will be sent to any prior 
transferree of the disputed information who is listed on the accounting 
required by 5 U.S.C. 552a(c).

[[Page 607]]



Sec.  2106.7  Schedule of fees.

    No fees will be charged for search, review, or copies of the record.

                       PARTS 2107	2199 [RESERVED]

[[Page 609]]



                CHAPTER XXIII--ARCTIC RESEARCH COMMISSION




  --------------------------------------------------------------------
Part                                                                Page
2300

[Reserved]

2301            Enforcement of nondiscrimination on the 
                    basis of handicap in programs or 
                    activities conducted by the United 
                    States Arctic Research Commission.......         611
2302-2399

 [Reserved]

[[Page 611]]

                          PART 2300 [RESERVED]



PART 2301_ENFORCEMENT OF NONDISCRIMINATION ON THE BASIS OF HANDICAP 
IN PROGRAMS OR ACTIVITIES CONDUCTED BY THE UNITED STATES 
ARCTIC RESEARCH COMMISSION--Table of Contents



Sec.
2301.101 Purpose.
2301.102 Application.
2301.103 Definitions.
2301.104-2301.109 [Reserved]
2301.110 Self-evaluation.
2301.111 Notice.
2301.112-2301.129 [Reserved]
2301.130 General prohibitions against discrimination.
2301.131-2301.139 [Reserved]
2301.140 Employment.
2301.141-2301.148 [Reserved]
2301.149 Program accessibility: Discrimination prohibited.
2301.150 Program accessibility: Existing facilities.
2301.151 Program accessibility: New construction and alterations.
2301.152-2301.159 [Reserved]
2301.160 Communications.
2301.161-2301.169 [Reserved]
2301.170 Compliance procedures.
2301.171-2301.999 [Reserved]

    Authority: 29 U.S.C. 794.

    Source: 58 FR 57698, 57699, Oct. 26, 1993, unless otherwise noted.



Sec.  2301.101  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.  2301.102  Application.

    This part (Sec. Sec.  2301.101-2301.170) applies to all programs or 
activities conducted by the agency, except for programs or activities 
conducted outside the United States that do not involve individuals with 
handicaps in the United States.



Sec.  2301.103  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, 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 (TTD'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.
    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.
    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--

[[Page 612]]

    (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, 
HIV disease (whether symptomatic or asymptomatic), and drug addiction 
and alcoholism.
    (2) Major life activities include 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 individual with handicaps means--
    (1) With respect to preschool, elementary, or secondary education 
services provided by the agency, an individual with handicaps 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, 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;
    (3) 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
    (4) Qualified handicapped person as that term is defined for 
purposes of employment in 29 CFR 1614.203(a)(6), which is made 
applicable to this part by Sec.  2301.140.
    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. As used in 
this part, section 504 applies only to programs or activities conducted 
by Executive agencies and not to federally assisted programs.
    Substantial impairment means a significant loss of the integrity of 
finished materials, design quality, or special character resulting from 
a permanent alteration.



Sec. Sec.  2301.104-2301.109  [Reserved]



Sec.  2301.110  Self-evaluation.

    (a) The agency shall, by November 28, 1994, 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 or 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

[[Page 613]]

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.  2301.111  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 part.



Sec. Sec.  2301.112-2301.129  [Reserved]



Sec.  2301.130  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, 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 according 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;
    (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 may not deny a qualified individual with handicaps 
the opportunity to participate in programs or activities that are no 
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 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 may not, in determining the site or location of a 
facility, 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, may not 
use criteria that subject qualified individuals with handicaps to 
discrimination on the basis of handicap.
    (6) The agency may not administer a licensing or certification 
program in a manner that subjects qualified individuals with handicaps 
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

[[Page 614]]

individuals with handicaps 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 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. Sec.  2301.131-2301.139  [Reserved]



Sec.  2301.140  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 1614, shall apply to employment in federally conducted 
programs or activities.



Sec. Sec.  2301.141-2301.148  [Reserved]



Sec.  2301.149  Program accessibility: Discrimination prohibited.

    Except as otherwise provided in Sec.  2301.150, 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.



Sec.  2301.150  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 individuals with handicaps. This paragraph 
does not--
    (1) Necessarily require the agency to make each of its existing 
facilities accessible to and usable by individuals with handicaps;
    (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.  2301.150(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 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--(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 individuals with handicaps. 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,

[[Page 615]]

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 individuals with handicaps in the most integrated setting 
appropriate.
    (2) Historic preservation programs. In meeting the requirements of 
Sec.  2301.150(a) in historic preservation programs, the agency shall 
give priority to methods that provide physical access to individuals 
with handicaps. In cases where a physical alteration to an historic 
property is not required because of Sec.  2301.150(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 individuals with handicaps 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 January 24, 1994, except 
that where structural changes in facilities are undertaken, such changes 
shall be made by November 26, 1996, 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 May 26, 1994, 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 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 agency'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 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.  2301.151  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 
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.



Sec. Sec.  2301.152-2301.159  [Reserved]



Sec.  2301.160  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 an individual with handicaps 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 
individual with handicaps.
    (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

[[Page 616]]

for deaf persons (TDD's) or equally effective telecommunication systems 
shall be used to communicate with persons with impaired hearing.
    (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.  2301.160 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, individuals with handicaps receive the benefits and 
services of the program or activity.



Sec. Sec.  2301.161-2301.169  [Reserved]



Sec.  2301.170  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 and 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 1614 pursuant to section 501 of the Rehabilitation Act of 1973 (29 
U.S.C. 791).
    (c) The Executive Director shall be responsible for coordinating 
implementation of this section. Complaints may be sent to Executive 
Director, United States Arctic Research Commission, ICC Building, room 
6333, 12th & Constitution Avenue, NW., Washington, DC 20423.
    (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), 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.  2301.170(g). The agency may 
extend this time for good cause.
    (i) Timely appeals shall be accepted and processed by the head of 
the agency.

[[Page 617]]

    (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.

[58 FR 57698, 57699, Oct. 26, 1993]



Sec. Sec.  2301.171-2301.999  [Reserved]

                       PARTS 2302	2399 [RESERVED]

[[Page 619]]



       CHAPTER XXIV--JAMES MADISON MEMORIAL FELLOWSHIP FOUNDATION




  --------------------------------------------------------------------
Part                                                                Page
2400            Fellowship Program requirements.............         621
2490            Enforcement of nondiscrimination on the 
                    basis of handicap in programs or 
                    activities conducted by the James 
                    Madison Memorial Fellowship Foundation..         631
2491-2499

 [Reserved]

[[Page 621]]



PART 2400_FELLOWSHIP PROGRAM REQUIREMENTS--Table of Contents



                            Subpart A_General

Sec.
2400.1 Purposes.
2400.2 Annual competition.
2400.3 Eligibility.
2400.4 Definitions.

                          Subpart B_Application

2400.10 Application.
2400.11 Faculty representatives.

                      Subpart C_Application Process

2400.20 Preparation of application.
2400.21 Contents of application.
2400.22 Application deadline.

                     Subpart D_Selection of Fellows

2400.30 Selection criteria.
2400.31 Selection process.

                        Subpart E_Graduate Study

2400.40 Institutions of graduate study.
2400.41 Degree programs.
2400.42 Approval of Plan of Study.
2400.43 Required courses of graduate study.
2400.44 Commencement of graduate study.
2400.45 Special consideration: Junior Fellows' Plan of study.
2400.46 Special consideration: second master's degrees.
2400.47 Summer Institute's relationship to fellowship.
2400.48 Fellows' participation in the Summer Institute.
2400.49 Contents of the Summer Institute.
2400.50 Allowances and Summer Institute costs.
2400.51 Summer Institute accreditation.

                      Subpart F_Fellowship Stipend

2400.52 Amount of stipend.
2400.53 Duration of stipend.
2400.54 Use of stipend.
2400.55 Certification for stipend.
2400.56 Payment of stipend.
2400.57 Termination of stipend.
2400.58 Repayment of stipend.

                      Subpart G_Special Conditions

2400.59 Other awards.
2400.60 Renewal of award.
2400.61 Postponement of award.
2400.62 Evidence of master's degree.
2400.63 Excluded graduate study.
2400.64 Alterations to Plan of Study.
2400.65 Teaching obligation.
2400.66 Completion of fellowship.

    Authority: 20 U.S.C. 4501 et seq., unless otherwise noted.

    Source: 61 FR 46734, Sept. 5, 1996, unless otherwise noted.



                            Subpart A_General



Sec.  2400.1  Purposes.

    (a) The purposes of the James Madison Memorial Fellowship Program 
are to:
    (1) Provide incentives for master's degree level graduate study of 
the history, principles, and development of the United States 
Constitution by outstanding in-service teachers of American history, 
American government, social studies, and political science in grades 7-
12 and by outstanding college graduates who plan to become teachers of 
the same subjects; and
    (2) Strengthen teaching in the nation's secondary schools about the 
principles, framing, ratification, and subsequent history of the United 
States Constitution.
    (b) The Foundation may from time to time operate its own programs 
and undertake other closely-related activities to fulfill these goals.



Sec.  2400.2  Annual competition.

    To achieve its principal purposes, the Foundation holds an annual 
national competition to select teachers in grades 7-12, college seniors, 
and college graduates to be James Madison Fellows.



Sec.  2400.3  Eligibility.

    Individuals eligible to apply for and hold James Madison Fellowships 
are United States citizens, United States nationals, or permanent 
residents of the Northern Mariana Islands who are:
    (a) Teachers of American history, American government, social 
studies, or political science in grades 7-12 who:
    (1) Are teaching full time during the year in which they apply for a 
fellowship;
    (2) Are under contract, or can provide evidence of being under 
prospective contract, to teach full time as teachers of American 
history, American government, social studies, or political science in 
grades 7-12;
    (3) Have demonstrated records of willingness to devote themselves to

[[Page 622]]

civic responsibilities and to professional and collegial activities 
within their schools and school districts;
    (4) Are highly recommended by their department heads, school heads, 
school district superintendents, or other supervisors;
    (5) Qualify for admission with graduate standing at accredited 
universities of their choice that offer master's degree programs 
allowing at least 12 semester hours or their equivalent of study of the 
origins, principles, and development of the Constitution of the United 
States and of its comparison with the constitutions of other forms of 
government;
    (6) Are able to complete their proposed courses of graduate study 
within five calendar years from the commencement of study under their 
fellowships, normally through part-time study during summers or in 
evening or weekend programs;
    (7) Agree to attend the Foundation's four-week Summer Institute on 
the Constitution, normally during the summer following the commencement 
of study under their fellowships; and
    (8) Sign agreements that, after completing the education for which 
the fellowship is awarded, they will teach American history, American 
government, social studies, or political science full time in secondary 
schools for a period of not less than one year for each full year of 
study for which assistance was received, preferably in the State listed 
as their legal residence at the time of their fellowship award. For the 
purposes of this provision, a full academic year of study is considered 
by the Foundation to be 18 credit hours or 27 quarter hours. Fellows' 
teaching obligations will be figured at full academic years of study; 
and when Fellows have studies for partial academic years, those years 
will be rounded upward to the nearest one-half year to determine 
Fellows' total teaching obligations.
    (b) Those who aspire to become full-time teachers of American 
history, American government, social studies, or political science in 
grades 7-12 who:
    (1) Are matriculated college seniors pursuing their baccalaureate 
degrees full time and will receive those degrees no later than August 
31st of the year of the fellowship competition in which they apply or 
prior recipients of baccalaureate degrees;
    (2) Plan to begin graduate study on a full-time basis;
    (3) Have demonstrated records of willingness to devote themselves to 
civic responsibilities;
    (4) Are highly recommended by faculty members, deans, or other 
persons familiar with their potential for graduate study of American 
history and government and with their serious intention to enter the 
teaching profession as secondary school teachers of American history, 
American government, social studies, or political science in grades 7-
12;
    (5) Qualify for admission with graduate standing at accredited 
universities of their choice that offer master's degree programs that 
allow at least 12 semester hours or their equivalent of study of the 
origins, principles, and development of the Constitution of the United 
States and of its comparison with the constitutions and history of other 
forms of government;
    (6) Are able to complete their proposed courses of graduate study in 
no more than two calendar years from the commencement of study under 
their fellowships, normally through full-time study;
    (7) Agree to attend the Foundation's four-week Summer Institute on 
the Constitution, normally during the summer following the commencement 
of study under their fellowships; and
    (8) Sign an agreement that, after completing the education for which 
the fellowship is awarded, they will teach American history, American 
government, social studies, or political science full time in secondary 
schools for a period of not less than one year for each full academic 
year of study for which assistance was received, preferably in the State 
listed as their legal residence at the time of their fellowship award. 
Fellows' teaching obligations will be figured at full academic years of 
study; and when Fellows have studies for partial academic years, those 
years will be rounded upward to the nearest one-half year to determine 
Fellows' total teaching obligations.

[61 FR 46734, Sept. 5, 1996, as amended at 69 FR 11814, Mar. 12, 2004]

[[Page 623]]



Sec.  2400.4  Definitions.

    As used in this part:
    Academic year means the period of time in which a full-time student 
would normally complete two semesters, two trimesters, three quarters, 
or their equivalent of study.
    Act means the James Madison Memorial Fellowship Act.
    College means an institution of higher education offering only a 
baccalaureate degree or the undergraduate division of a university in 
which a student is pursuing a baccalaureate degree.
    Credit Hour Equivalent means the number of graduate credit hours 
obtained in credits, courses or units during a quarter, a trimester, or 
a semester which are needed to equal a specific number of semester 
graduate credit hours.
    Fee means a typical and usually non-refundable charge levied by an 
institution of higher education for a service, privilege, or use of 
property which is required for a Fellow's enrollment and registration.
    Fellow means a recipient of a fellowship from the Foundation.
    Fellowship means an award, called a James Madison Fellowship, made 
to a person by the Foundation for graduate study.
    Foundation means the James Madison Memorial Fellowship Foundation.
    Full-time study means study for an enrolled student who is carrying 
at least 9 credit hours a semester or its equivalent.
    Graduate study means the courses of study beyond the baccalaureate 
level, which are offered as part of a university's master's degree 
program and which lead to a master's degree.
    Incomplete means a course which the Foundation has paid for but the 
Fellow has received an incomplete grade or the Fellow has not received 
graduate credit for the course.
    Institution of higher education has the meaning given in Section 
1201(a) of the Higher Education Act of 1965 (20 U.S.C. 1141(a)).
    Junior Fellowship means a James Madison Fellowship granted either to 
a college senior or to a college graduate who has received a 
baccalaureate degree and who seeks to become a secondary school teacher 
of American history, American government, social studies, or political 
science for full-time graduate study toward a master's degree whose 
course of study emphasizes the framing, principles, history, and 
interpretation of the United States Constitution.
    Master's degree means the first pre-doctoral graduate degree offered 
by a university beyond the baccalaureate degree, for which the 
baccalaureate degree is a prerequisite.
    Matriculated means formally enrolled in a master's degree program in 
a university.
    Repayment means if the fellowship is relinquished by the fellow or 
is terminated by the Foundation prior to the completion of the Fellow's 
degree, and/or the Fellow fails to fulfill the teaching obligation after 
the graduate degree is awarded, the Fellow must repay to the Foundation 
all Fellowship costs received plus interest at a rate of 6% per annum 
and, if applicable, reasonable collection fees.
    Resident means a person who has legal residence in the state, 
recognized under state law. If a question arises concerning a Fellow's 
state of residence, the Foundation determines, for the purposes of this 
program, of which state the person is a resident, taking into account 
the Fellow's place of registration to vote, his or her parent's place of 
residence, and the Fellow's eligibility for in-state tuition rates at 
public institutions of higher education.
    Satisfactory progress for a Junior Fellow means the completion of 
the number of required courses normally expected of full-time master's 
degree candidates at the university that the Fellow attends, with grades 
acceptable to that university, in not more than two calendar years from 
the commencement of that study. Satisfactory progress for a Senior 
Fellow means the completion each year of a specific number of required 
courses in the Fellow's master's degree program, as agreed upon each 
year with the Foundation and outlined on the Plan of Study form, with 
grades acceptable to the Fellow's university, in not more than five 
calendar years from the commencement of that study.

[[Page 624]]

    Secondary school means grades 7 through 12.
    Senior means a student at the academic level recognized by an 
institution of higher education as being the last year of study before 
receiving the baccalaureate degree.
    Senior Fellowship means a James Madison Fellowship granted to a 
secondary school teacher of American history, American government, 
social studies, or political science for part-time graduate study toward 
a master's degree whose course of study emphasizes the framing, 
principles, history, and interpretation of the United States 
Constitution.
    State means each of the 50 States, the District of Columbia, the 
Commonwealth of Puerto Rico, and, considered as a single entity, Guam, 
the United States Virgin Islands, American Samoa, and the Commonwealth 
of the Northern Mariana Islands.
    Stipend means the amount paid by the Foundation to a Fellow or on 
his or her behalf for the allowable costs of graduate study which have 
been approved under the fellowship.
    Teaching Obligation means that a Fellow, upon receiving a master's 
degree, must teach American history, American government, social 
studies, or political science on a full-time basis to students in 
secondary school for a period of not less than one year for each year 
for which financial assistance was received.
    Term means the period--semester, trimester, or quarter--used by an 
institution of higher education to divide its academic year.
    Termination means the non-voluntary ending of a fellowship by the 
Foundation when the Fellow has not complied with the rules and 
regulations of the fellowship or has not made satisfactory progress in 
his or her program of study.
    University means an institution of higher education that offers 
post-baccalaureate degrees.
    Withdrawal means the voluntary relinquishment or surrender of a 
Fellowship by the Fellow.

[61 FR 46734, Sept. 5, 1996, as amended at 69 FR 11814, Mar. 12, 2004]



                          Subpart B_Application



Sec.  2400.10  Application.

    Eligible applicants for fellowships must apply directly to the 
Foundation.



Sec.  2400.11  Faculty representatives.

    Each college and university that chooses to do so may annually 
appoint or reappoint a faculty representative who will be asked to 
identify and recruit fellowship applicants on campus, publicize the 
annual competition on campus, and otherwise assist eligible candidates 
in preparation for applying. In order to elicit the appointment of 
faculty representatives, the Foundation will each year request the head 
of each college and university campus to appoint or reappoint a faculty 
representative and to provide the Foundation with the name, business 
address, and business telephone number of a member of its faculty 
representative on forms provided for that purpose.



                      Subpart C_Application Process



Sec.  2400.20  Preparation of application.

    Applications, on forms mailed directly by the Foundation to those 
who request applications or downloaded from the Foundation's Web site, 
must be completed by all fellowship candidates in order that they be 
considered for an award.

[69 FR 11814, Mar. 12, 2004]



Sec.  2400.21  Contents of application.

    Applications must include for
    (a) Senior Fellowships:
    (1) Supporting information which affirms an applicant's wish to be 
considered for a fellowship; provides information about his or her 
background, interests, goals, and the school in which he or she teaches; 
and includes a statement about the applicant's educational plans and 
specifies how those plans will enhance his or her career as a secondary 
school teacher of American history, American government, social studies, 
or political science;
    (2) An essay of up to 600 words that explains the importance of the 
study of the Constitution to:
    (i) Young students;

[[Page 625]]

    (ii) The applicant's career aspirations and his or her contributions 
to public service; and
    (iii) Citizenship generally in a constitutional republic;
    (3) The applicant's proposed course of graduate study, including the 
name of the degree to be sought, the required courses to be taken, as 
well as information about the specific degree sought;
    (4) Three evaluations, one from an immediate supervisor, that attest 
to the applicant's strengths and abilities as a teacher in grades 7-12; 
and
    (5) A copy of his or her academic transcript.
    (b) Junior Fellowships:
    (1) Supporting information which affirms an applicant's wish to be 
considered for a fellowship; provides information about the applicant's 
background, interests, goals, and the college which he or she attends or 
attended; and includes a statement about the applicant's educational 
plans and specifies how those plans will lead to a career as a teacher 
of American history, American government, social studies, or political 
science in grades 7-12;
    (2) An essay of up to 600 words that explains the importance of the 
study of the Constitution to:
    (i) Young students;
    (ii) The applicant's career aspirations and his or her contribution 
to public service; and
    (iii) Citizenship generally in a constitutional republic;
    (3) Applicant's proposed course of graduate study, including the 
name of the degree sought, the name of the required courses to be taken, 
and information about the specific degree sought;
    (4) Three evaluations that attest to the applicant's academic 
achievements and to his or her potential to become an outstanding 
secondary school teacher; and
    (5) A copy of his or her academic transcript.



Sec.  2400.22  Application deadline.

    Completed applications must be received by the Foundation no later 
than March 1st of each year preceding the start of the academic year for 
which candidates are applying.



                     Subpart D_Selection of Fellows



Sec.  2400.30  Selection criteria.

    Applicants will be evaluated, on the basis of materials in their 
applications, as follows:
    (a) Demonstrated commitment to teaching American history, American 
government, social studies, or political science at the secondary school 
level;
    (b) Demonstrated intention to pursue a program of graduate study 
that emphasizes the Constitution and to offer classroom instruction in 
that subject;
    (c) Demonstrated record of willingness to devote themselves to civic 
responsibility;
    (d) Outstanding performance or potential of performance as classroom 
teachers;
    (e) Academic achievements and demonstrated capacity for graduate 
study; and
    (f) Proposed courses of graduate study, especially the nature and 
extent of their subject matter components, and their relationship to the 
enhancement of applicants' teaching and professional activities.
    (g) Content of the 600-word essay.

[61 FR 46734, Sept. 5, 1996, as amended at 69 FR 11814, Mar. 12, 2004]



Sec.  2400.31  Selection process.

    (a) An independent Fellow Selection Committee will evaluate all 
valid applications and recommend to the Foundation the most outstanding 
applicants from each state for James Madison Fellowships.
    (b) From among candidates recommended for fellowships by the Fellow 
Selection Committee, the Foundation will name James Madison Fellows. The 
selection procedure will assure that at least one James Madison Fellow, 
junior or senior, is selected from each state in which there are at 
least two legal resident applicants who meet the eligibility 
requirements set forth in Sec.  2400.3 and are judged favorably against 
the selection criteria in Sec.  2400.30.
    (c) The Foundation may name, from among those applicants recommended 
by the Fellow Selection Committee, an alternate or alternates for each 
fellowship. An alternate may, at the Foundation's discretion receive a 
fellowship if

[[Page 626]]

the person named as a James Madison Fellow declines the award or is not 
able to pursue graduate study as contemplated at the time the fellowship 
was accepted. An alternate may be named to replace a Fellow who declines 
or relinquishes an award until, but no later than, March 1st following 
the competition in which the alternate has been selected.
    (d) Funds permitting, the Foundation may also select, from among 
those recommended by the Fellow Selection Committee, Fellows at large.

[61 FR 46734, Sept. 5, 1996, as amended at 69 FR 11814, Mar. 12, 2004]



                        Subpart E_Graduate Study



Sec.  2400.40  Institutions of graduate study.

    Fellowship recipients may attend any accredited university in the 
United States with a master's degree program offering courses or 
training that emphasize the origins, principles, and development of the 
Constitution of the United States and its comparison with the 
constitutions and history of other forms of government.



Sec.  2400.41  Degree programs.

    (a) Fellows may pursue a master's degree in history or political 
science (including government or politics), the degree of Master of Arts 
in Teaching in history or political science (including government or 
politics), or a related master's degree in education that permits a 
concentration in American history, American government, social studies, 
or political science. Graduate degrees under which study is excluded 
from fellowship support are indicated in Sec.  2400.63.
    (b) A master's degree pursued under a James Madison Fellowship may 
entail either one or two years or their equivalent of study, according 
to the requirements of the university at which a Fellow is enrolled.



Sec.  2400.42  Approval of Plan of Study.

    The Foundation must approve each Fellow's Plan of Study. To be 
approved, the plan must:
    (a) On a part-time or full-time basis lead to a master's degree in 
history or political science, the degree of Master of Arts in Teaching 
in history or political science, or a related master's degree in 
education that permits a concentration in American history, American 
government, social studies, or political science;
    (b) Include courses, graduate seminars, or opportunities for 
independent study in topics directly related to the framing and history 
of the Constitution of the United States;
    (c) Be pursued at a university that assures a willingness to accept 
up to 6 semester hours of accredited transfer credits from another 
graduate institution for a Fellow's satisfactory completion of the 
Foundation's Summer Institute on the Constitution. For the Foundation's 
purposes, these 6 semester hours may be included in the required minimum 
of 12 semester hours or their equivalent of study of the United States 
Constitution; and
    (d) Be pursued at a university that encourages the Fellow to enhance 
his or her capacities as a teacher of American history, American 
government, social studies, or political science and to continue his or 
her career as a secondary school teacher. The Foundation reserves the 
right to refuse to approve a Fellow's Plan of Study at a university that 
will not accept on transfer the 6 credits for the Institute.

[61 FR 46734, Sept. 5, 1996, as amended at 69 FR 11814, Mar. 12, 2004]



Sec.  2400.43  Required courses of graduate study.

    (a) To be acceptable to the Foundation, those courses related to the 
Constitution referred to in Sec.  2400.43(b) must amount to at least 12 
semester or 18 quarter hours or their credit hour equivalent of study of 
topics directly related to the United States Constitution. More than 12 
semester hours or their credit hour equivalent of such study is strongly 
encouraged.
    (b) The courses that fulfill the required minimum of 12 semester 
hours or their credit hour equivalent of study of the United States 
Constitution must cover one or more of the following subject areas:
    (1) The history of colonial America leading up to the framing of the 
Constitution;

[[Page 627]]

    (2) The Constitution itself, its framing, the history and principles 
upon which it is based, its ratification, the Federalist Papers, Anti-
Federalist writings, and the Bill of Rights;
    (3) The historical development of political theory, constitutional 
law, and civil liberties as related to the Constitution;
    (4) Interpretations of the Constitution by the Supreme Court and 
other branches of the federal government;
    (5) Debates about the Constitution in other forums and about the 
effects of constitutional norms and decisions upon American society and 
culture; and
    (6) Any other subject clearly related to the framing, history, and 
principles of the Constitution.
    (c) If a master's degree program in which a Fellow is enrolled 
requires a master's thesis in place of a course or courses, the Fellow 
will have the option of writing the thesis based on the degree 
requirements. The preparation of a master's thesis should not add 
additional required credits to the minimum number of credits required 
for the master's degree. If a Fellow must write a thesis, the topic of 
the thesis must relate to subjects concerning the framing, principles, 
or history of the United States Constitution. If the Fellow can choose 
between two degree tracks, a thesis track or a non-thesis track, the 
Foundation in general, requires the non-thesis track.

[61 FR 46734, Sept. 5, 1996, as amended at 69 FR 11814, Mar. 12, 2004]



Sec.  2400.44  Commencement of graduate study.

    (a) Fellows may commence study under their fellowships as early as 
the summer following the announcement of their award. Fellows are 
normally expected to commence study under their fellowships in the fall 
term of the academic year following the date on which their award is 
announced. However, as indicated in Sec.  2400.61, they may seek to 
postpone the commencement of fellowship study for up to one year under 
extenuating circumstances.
    (b) In determining the two- and five-year fellowship periods of 
Junior and Senior Fellows respectively, the Foundation will consider the 
commencement of the fellowship period to be the date on which each 
Fellow commences study under a fellowship.

[61 FR 46734, Sept. 5, 1996, as amended at 69 FR 11814, Mar. 12, 2004]



Sec.  2400.45  Special consideration: Junior Fellows' Plan of Study.

    Applicants for Junior Fellowships who seek or hold baccalaureate 
degrees in education are strongly encouraged to pursue master's degrees 
in history or political science. Those applicants who hold undergraduate 
degrees in history, political science, government, or any other subjects 
may take some teaching methods and related courses, although the 
Foundation will not pay for them unless they are required for the degree 
for which the Fellow is matriculated. The Foundation will review each 
proposed Plan of Study for an appropriate balance of subject matter and 
other courses based on the Fellow's goals, background, and degree 
requirements.



Sec.  2400.46  Special consideration: second master's degree.

    The Foundation may award Senior Fellowships to applicants who are 
seeking their second master's degrees providing that the applicants' 
first master's degree was obtained at least three years prior to the 
year in which the applicants would normally commence study under a 
fellowship. In evaluating applications from individuals intending to 
pursue a second master's degree, the Fellow Selection Committee will 
favor those applicants who are planning to become American history, 
American government, social studies, or political science teachers after 
having taught another subject and applicants whose initial master's 
degree was in a subject different from that sought under the second 
master's degree.

[61 FR 46734, Sept. 5, 1996, as amended at 69 FR 11814, Mar. 12, 2004]



Sec.  2400.47  Summer Institute's relationship to fellowship.

    Each year, the Foundation normally offers during July a four-week 
graduate-level Institute on the principles, framing, ratification, and 
implementation of the United States Constitution

[[Page 628]]

at an accredited university in the Washington, DC, area. The Institute 
is an integral part of each fellowship.

[69 FR 11815, Mar. 12, 2004]



Sec.  2400.48  Fellows' participation in the Summer Institute.

    Each fellow is required as part of his or her fellowship to attend 
the Institute (if it is offered), normally during the summer following 
the Fellow's commencement of graduate study under a fellowship.

[69 FR 11815, Mar. 12, 2004]



Sec.  2400.49  Contents of the Summer Institute.

    The principal element of the Institute is a graduate history course, 
``Foundations of American Constitutionalism.'' Other components of the 
Institute include study visits to sites associated with the lives and 
careers of members of the founding generation.



Sec.  2400.50  Allowances and Summer Institute costs.

    At the Foundation's discretion, Fellows may be paid an allowance to 
help offset income foregone by their required attendance. The Foundation 
also funds the costs of the Institute and Fellows' round-trip 
transportation to and from the Institute site. The costs of tuition, 
required fees, books, room, and board entailed by the Institute will be 
paid for by the Foundation directly but may be offset against fellowship 
award limits if the credits earned for the Institute are included within 
the Fellows' degree requirements.

[61 FR 46734, Sept. 5, 1996, as amended at 69 FR 11815, Mar. 12, 2004]



Sec.  2400.51  Summer Institute accreditation.

    The Institute is accredited for six graduate semester credits by the 
university at which it is held. It is expected that the universities at 
which Fellows are pursuing their graduate study will, upon Fellows' 
satisfactory completion of the Institute, accept these credits or their 
credit-hour equivalent upon transfer from the university at which the 
Institute is held in fulfillment of the minimum number of credits 
required for Fellows' graduate degrees. Satisfactory completion of the 
Institute will fulfill 6 of the Foundation's 12 semester credits 
required in graduate study of the history and development of the 
Constitution. Fellows, with the Foundation's assistance, are strongly 
encouraged to make good faith efforts to have their universities 
incorporate the Institute into their Plan of Study and accept the 6 
Institute credits toward the minimum number of credits required for 
their master's degrees.



                      Subpart F_Fellowship Stipend



Sec.  2400.52  Amount of stipend.

    Junior and Senior Fellowships carry a stipend of up to a maximum of 
$24,000 pro-rated over the period of Fellows' graduate study. In no case 
shall the stipend for a fellowship exceed $12,000 per academic year. 
Within this limit, stipends will be pro-rated over the period of 
Fellows' graduate study as follows: a maximum of $6,000 per academic 
semester or trimester of full-time study, and a maximum of $4,000 per 
academic quarter of full-time study. Stipends for part-time study will 
be pro rata shares of those allowable for full-time study.



Sec.  2400.53  Duration of stipend.

    Stipends for Junior Fellowships may be payable over a period up to 2 
calendar years of full-time graduate study, and those for Senior 
Fellowships may be payable over a period of not more than 5 calendar 
years of part-time graduate study, beginning with the dates under which 
Fellows commence their graduate study under their fellowships. However, 
the duration of stipend payments will be subject to the maximum payment 
limits, the length of award time limits, and the completion of the 
minimum degree requirements, whichever occurs first. A waiver of the 
time limit may be given for full-time students who require more than 36 
credit hours or 54 quarter hours to complete their approved degree.

[61 FR 46734, Sept. 5, 1996, as amended at 69 FR 11815, Mar. 12, 2004]

[[Page 629]]



Sec.  2400.54  Use of stipend.

    Stipends shall be used only to pay the costs of tuition, required 
fees, books, room, and board associated with graduate study under a 
fellowship. The costs allowed for a Fellow's room and board will be the 
amount the Fellow's university reports to the Foundation as the cost of 
room and board for a graduate student if that student were to share a 
room at the student's university. If no shared graduate housing exists, 
then costs for regular shared student housing will be used. If no campus 
housing exists, the equivalent room and board costs at neighboring 
universities will be used. Stipends for room, board, and books will be 
pro-rated for Fellows enrolled in study less than full time. The 
Foundation will not reimburse Fellows for any portion of their master's 
degree study, that Fellows may have completed prior to the commencement 
of their fellowships. Nor will the Foundation reimburse Fellows for any 
credits acquired above the minimum number of credits required for the 
degree. If a Fellow has already taken and paid for courses that can be 
credited toward the Fellow's graduate degree under a fellowship, those 
must be credited to the degree; the remaining required courses will be 
paid for by the Foundation.



Sec.  2400.55  Certification for stipend.

    In order to receive a fellowship stipend, a Fellow must submit the 
following nine items in writing:
    (a) An acceptance of the terms and conditions of the fellowship 
including a completed certificate of compliance form;
    (b) Evidence of admission to an approved graduate program;
    (c) Certified copies of undergraduate and, if any, graduate 
transcripts;
    (d) A certified payment request form indicating the estimated costs 
for tuition, required fees, books, room, and board;
    (e) a photo copy of the university's bulletin of cost information;
    (f) The amount and nature of income from any other grants or awards;
    (g) information about the Fellow's degree requirements, including 
the number of required credits to fulfill the degree;
    (h) a statement of the university's willingness to accept the 
transfer of 6 credits toward the Fellow's degree requirements for the 
Fellow's satisfactory completion of the Summer Institute (see Sec.  
2400.51); and
    (i) A full Plan of Study over the duration of the fellowship, 
including information on the contents of required constitutional 
courses. Senior Fellows must provide evidence of their continued full-
time employment as teachers in grades 7-12.

[61 FR 46734, Sept. 5, 1996, as amended at 69 FR 11815, Mar. 12, 2004]



Sec.  2400.56  Payment of stipend.

    Payment for tuition, required fees, books, room, and board subject 
to the limitations in Sec. Sec.  2400.52 through 2400.55 and Sec. Sec.  
2400.59 through 2400.60 will be paid via Electronic Funds Transfer to 
each Fellow at the beginning of each term of enrollment and upon the 
Fellow's submission of a completed Payment Request Form which includes 
the current University bulletin of cost information.

[69 FR 11815, Mar. 12, 2004]



Sec.  2400.57  Termination of stipend.

    (a) The Foundation may suspend or terminate the payment of a stipend 
if a Fellow fails to meet the criteria set forth in Sec.  2400.40 
through Sec.  2400.44 and Sec.  2400.60, except as provided for in Sec.  
2400.61. Before it suspends or terminates a fellowship under these 
circumstances, the Foundation will give notice to the Fellow, as well as 
the opportunity to be heard with respect to the grounds for suspension 
or termination.
    (b) The Foundation will normally suspend the payment of a stipend if 
a Fellow has more than one grade of ``Incomplete'' in courses for which 
the Foundation has made payment to the Fellow.



Sec.  2400.58  Repayment of stipend.

    (a) If a Fellow fails to secure a master's degree, fails to teach 
American history, American government, social studies, or political 
science on a full-time basis in a secondary school for at least one 
school year for each academic year for which assistance was provided

[[Page 630]]

under a fellowship, fails to secure at least 12 semester hours or their 
credit hour equivalent for study of the Constitution as indicated in 
Sec.  2400.43(b), or fails to attend the Foundation's Summer Institute 
on the Constitution, the Fellow must repay all of the fellowship costs 
received plus interest at the rate of 6% per annum or as otherwise 
authorized and, if applicable, reasonable collection fees, as prescribed 
in Section 807 of the Act (20 U.S.C. 4506(b)).
    (b) If a Fellow withdraws from the fellowship or has a fellowship 
terminated by the Foundation, the Fellow must repay all fellowship funds 
which have been remitted to the Fellow or on his or her behalf under a 
fellowship.

[61 FR 46734, Sept. 5, 1996, as amended at 69 FR 11815, Mar. 12, 2004]



                      Subpart G_Special Conditions



Sec.  2400.59  Other awards.

    Fellows may accept grants from other foundations, institutions, 
corporations, or government agencies to support their graduate study or 
to replace any income foregone for study. However, the stipend paid by 
the Foundation for allowable costs indicated in Sec.  2400.52 will be 
reduced to the extent these costs are paid from other sources, and in no 
case will fellowship funds be paid to Fellows to provide support in 
excess of their actual total costs of tuition, required fees, books, 
room, and board. The Foundation may also reduce a Fellow's stipend if 
the Fellow is remunerated for the costs of tuition under a research or 
teaching assistantship or a work-study program. In such a case, the 
Foundation will require information from a Fellow's university about the 
intended use of assistantship or work-study support before remitting 
fellowship payments.



Sec.  2400.60  Renewal of award.

    (a) Provided that Fellows have submitted all required documentation 
and are making satisfactory academic progress, it is the intent of the 
Foundation to renew Junior Fellowship awards annually for a period not 
to exceed two calendar years or the completion of their graduate 
degrees, whichever comes first, and Senior Fellowships for a period not 
to exceed 5 calendar years (except when those periods have been altered 
because of changes in Fellows' Plan of Study as provided for in Sec.  
2400.64), or until a Fellow has completed all requirements for a 
master's degree, whichever comes first. In no case, however, will the 
Foundation continue payments under a fellowship to a Fellow who has 
reached the maximum payments under a fellowship as indicated in Sec.  
2400.52, or completed the minimum number of credits required for the 
degree. Although Fellows are not discouraged in taking courses in 
addition to those required for the degree or required to maintain full-
time status, the Foundation will not in such cases pay for those 
additional courses.
    (b) Fellowship renewal will be subject to an annual review by the 
Foundation and certification by an authorized official of the university 
at which a Fellow is registered that the Fellow is making satisfactory 
progress toward the degree and is in good academic standing according to 
the standards of each university.
    (c) As a condition of renewal of awards, each Fellow must submit an 
annual activity report to the Foundation by July 15th. That report must 
indicate, through submission of a copy of the Fellow's most recent 
transcript, courses taken and grades achieved; courses planned for the 
coming year; changes in academic or professional plans or situations; 
any awards, recognitions, or special achievements in the Fellow's 
academic study or school employment; and such other information as may 
relate to the fellowship and its holder.

[61 FR 46734, Sept. 5, 1996, as amended at 69 FR 11815, Mar. 12, 2004]



Sec.  2400.61  Postponement of award.

    Upon application to the Foundation, a Fellow may seek postponement 
of his or her fellowship because of ill health or other mitigating 
circumstances, such as military duty, temporary disability, necessary 
care of an immediate family member, or unemployment as a teacher. 
Substantiation of the reasons for the requested postponement of study 
will be required. All postponements are given at the Foundation's

[[Page 631]]

discretion and will normally not extend for more than one year.

[61 FR 46734, Sept. 5, 1996, as amended at 69 FR 11815, Mar. 12, 2004]



Sec.  2400.62  Evidence of master's degree.

    At the conclusion of graduate studies, each Fellow must provide a 
certified transcript which indicates that he or she has secured an 
approved master's degree as set forth in the Fellow's original Plan of 
Study or approved modifications thereto.



Sec.  2400.63  Excluded graduate study.

    James Madison Fellowships do not provide support for study toward 
doctoral degrees, for the degree of master of arts in public affairs or 
public administration. The Foundation may at its discretion, upon 
request of the Fellow, provide tuition only assistance toward teacher 
certification.

[69 FR 11815, Mar. 12, 2004]



Sec.  2400.64  Alterations to Plan of Study.

    Although Junior Fellows are expected to pursue full-time study and 
Senior Fellows to pursue part-time study, the Foundation may permit 
Junior Fellows with an established need (such as the need to accept a 
teaching position) to study part time and Senior Fellows with 
established need (such as great distance between the Fellow's residence 
and the nearest university, thus necessitating a full-time leave of 
absence from employment in order to study) to study full time.



Sec.  2400.65  Teaching obligation.

    Upon receiving a Master's degree, each Fellow must teach American 
history, American government, social studies, or political science on a 
full-time basis to students in secondary school for a period of not less 
than one year for each academic year for which financial assistance was 
received. Each Fellow will be required to provide the Foundation with an 
annual certification from an official of the secondary school where the 
Fellow is employed indicating the teaching activities of the Fellow 
during the past year. This same certification will be required each year 
until the Fellow's teaching obligation is completed. Any teaching done 
by the Fellow prior to or during graduate studies does not count towards 
meeting this teaching obligation.



Sec.  2400.66  Completion of fellowship.

    A Fellow will be deemed to have satisfied all terms of a fellowship 
and all obligations under it when the Fellow has completed no fewer than 
12 graduate semester hours or the equivalent of study of the 
Constitution, formally secured the masters degree, attended the 
Foundation's Summer Institute on the Constitution, completed teaching 
for the number of years and fractions thereof required as a condition of 
accepting Foundation support for study, and submitted all required 
reports.



PART 2490_ENFORCEMENT OF NONDISCRIMINATION ON THE BASIS OF HANDICAP 
IN PROGRAMS OR ACTIVITIES CONDUCTED BY THE JAMES MADISON MEMORIAL 
FELLOWSHIP FOUNDATION--Table of Contents



Sec.
2490.101 Purpose.
2490.102 Application.
2490.103 Definitions.
2490.104-2490.109 [Reserved]
2490.110 Self-evaluation.
2490.111 Notice.
2490.112-2490.129 [Reserved]
2490.130 General prohibitions against discrimination.
2490.131-2490.139 [Reserved]
2490.140 Employment.
2490.141-2490.148 [Reserved]
2490.149 Program accessibility: Discrimination prohibited.
2490.150 Program accessibility: Existing facilities.
2490.151 Program accessibility: New construction and alterations.
2490.152-2490.159 [Reserved]
2490.160 Communications.
2490.161-2490.169 [Reserved]
2490.170 Compliance procedures.
2490.171-2490.999 [Reserved]

    Authority: 29 U.S.C. 794.

    Source: 58 FR 57699, Oct. 26, 1993, unless otherwise noted.



Sec.  2490.101  Purpose.

    The purpose of this part is to effectuate section 119 of the 
Rehabilitation,

[[Page 632]]

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.  2490.102  Application.

    This part (Sec. Sec.  2490.101-2490.170) applies to all programs or 
activities conducted by the agency, except for programs or activities 
conducted outside the United States that do not involve individuals with 
handicaps in the United States.



Sec.  2490.103  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, 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 (TTD'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.
    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.
    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, 
HIV disease (whether symptomatic or asymptomatic), and drug addiction 
and alcoholism.
    (2) Major life activities include 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 633]]

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 individual with handicaps means--
    (1) With respect to preschool, elementary, or secondary education 
services provided by the agency, an individual with handicaps 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, 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;
    (3) 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
    (4) Qualified handicapped person as that term is defined for 
purposes of employment in 29 CFR 1614.203(a)(6), which is made 
applicable to this part by Sec.  2490.140.
    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. As used in 
this part, section 504 applies only to programs or activities conducted 
by Executive agencies and not to federally assisted programs.
    Substantial impairment means a significant loss of the integrity of 
finished materials, design quality, or special character resulting from 
a permanent alteration.



Sec. Sec.  2490.104-2490.109  [Reserved]



Sec.  2490.110  Self-evaluation.

    (a) The agency shall, by November 28, 1994, 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 or 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 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.  2490.111  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 part.



Sec. Sec.  2490.112-2490.129  [Reserved]



Sec.  2490.130  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, may 
not, directly or through contractual, licensing, or other arrangements, 
on the basis of handicap--

[[Page 634]]

    (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 according 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;
    (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 may not deny a qualified individual with handicaps 
the opportunity to participate in programs or activities that are no 
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 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 may not, in determining the site or location of a 
facility, 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, may not 
use criteria that subject qualified individuals with handicaps to 
discrimination on the basis of handicap.
    (6) The agency may not administer a licensing or certification 
program in a manner that subjects qualified individuals with handicaps 
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 individuals with handicaps 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 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. Sec.  2490.131-2490.139  [Reserved]



Sec.  2490.140  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 1614, shall apply to employment in federally conducted 
programs or activities.

[[Page 635]]



Sec. Sec.  2490.141-2490.148  [Reserved]



Sec.  2490.149  Program accessibility: Discrimination prohibited.

    Except as otherwise provided in Sec.  2490.150, 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.



Sec.  2490.150  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 individuals with handicaps. This paragraph 
does not--
    (1) Necessarily require the agency to make each of its existing 
facilities accessible to and usable by individuals with handicaps;
    (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.  2490.150(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 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--(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 individuals with handicaps. 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. 4151-4157), 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 
individuals with handicaps in the most integrated setting appropriate.
    (2) Historic preservation programs. In meeting the requirements of 
Sec.  2490.150(a) in historic preservation programs, the agency shall 
give priority to methods that provide physical access to individuals 
with handicaps. In cases where a physical alteration to an historic 
property is not required because of Sec.  2490.150(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 individuals with handicaps into or 
through portions of historic properties that cannot otherwise be made 
accessible; or
    (iii) Adopting other innovative methods.

[[Page 636]]

    (c) Time period for compliance. The agency shall comply with the 
obligations established under this section by January 24, 1994, except 
that where structural changes in facilities are undertaken, such changes 
shall be made by November 26, 1996, 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 May 26, 1994, 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 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 agency'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 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.  2490.151  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 
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.



Sec. Sec.  2490.152-2490.159  [Reserved]



Sec.  2490.160  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 an individual with handicaps 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 
individual with handicaps.
    (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 to communicate 
with persons with impaired hearing.
    (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.  2490.160 would 
result in such alteration or burdens.

[[Page 637]]

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, individuals with handicaps 
receive the benefits and services of the program or activity.



Sec. Sec.  2490.161-2490.169  [Reserved]



Sec.  2490.170  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 and 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 1614 pursuant to section 501 of the Rehabilitation Act of 1973 (29 
U.S.C. 791).
    (c) The Director of Administration and Finance shall be responsible 
for coordinating implementation of this section. Complaints may be sent 
to James Madison Memorial Fellowship Foundation, 2000 K Street, NW., 
suite 303, Washington, DC 20006.
    (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), 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.  2490.170(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.

[58 FR 57699, Oct. 26, 1993]



Sec. Sec.  2490.171-2490.999  [Reserved]

                       PARTS 2491	2499 [RESERVED]

[[Page 639]]



       CHAPTER XXV--CORPORATION FOR NATIONAL AND COMMUNITY SERVICE




  --------------------------------------------------------------------
Part                                                                Page
2500            Agency operating name and logos.............         641
2501-2504

 [Reserved]

2505            Rules implementing the Government in the 
                    Sunshine Act............................         642
2506            Collection of debts.........................         645
2507            Procedures for disclosure of records under 
                    the Freedom of Information Act..........         660
2508            Implementation of the Privacy Act of 1974...         670
2509            Administrative practice and procedures......         680
2510            Overall purposes and definitions............         683
2513

[Reserved]

2515            Service-learning program purposes...........         688
2516            School-based service-learning programs......         688
2517            Community-based service-learning programs...         697
2518            Service-learning clearinghouse..............         700
2519            Higher education innovative programs for 
                    community service.......................         701
2520            General provisions: Americorps Subtitle C 
                    programs................................         705
2521            Eligible Americorps Subtitle C program 
                    applicants and types of grants available 
                    for award...............................         708
2522            Americorps participants, programs, and 
                    applicants..............................         714
2523            Agreements with other Federal agencies for 
                    the provision of Americorps program 
                    assistance..............................         739
2524            Americorps technical assistance and other 
                    special grants..........................         741
2525            National Service Trust: Purpose and 
                    definitions.............................         743
2526            Eligibility for an education award..........         744
2527            Determining the amount of an education award         749
2528            Using an education award....................         749
2529            Payment of accrued interest.................         752
2530            Transfer of education awards................         753
2531            Purposes and availability of grants for 
                    investment for quality and innovation 
                    activities..............................         756
2532            Innovative and special demonstration 
                    programs................................         756

[[Page 640]]

2533            Technical assistance, training, and other 
                    service infrastructure-building 
                    activities..............................         758
2534            Special activities..........................         760
2540            General administrative provisions...........         760
2541

[Reserved]

2543

[Reserved]

2544            Solicitation and acceptance of donations....         771
2550            Requirements and general provisions for 
                    State commissions and alternative 
                    administrative entities.................         774
2551            Senior Companion Program....................         782
2552            Foster Grandparent Program..................         795
2553            The Retired and Senior Volunteer Program....         808
2554            Program Fraud Civil Remedies Act regulations         819
2555            Nondiscrimination on the basis of sex in 
                    education programs or activities 
                    receiving Federal financial assistance..         834
2556            Volunteers in service to America............         851
2557-2599

 [Reserved]

[[Page 641]]



PART 2500_AGENCY OPERATING NAME AND LOGOS--Table of Contents



Sec.
2500.1 Agency Operating Name
2500.2 Description of Logos
2500.3 Retirement of Logos
2500.4 Authority to affix logos

    Authority: 42 U.S.C. 12651c (c); 12653 (a) and (f).

    Source: 85 FR 65240, Oct. 15, 2020, unless otherwise noted.



Sec.  2500.1  Agency Operating Name.

    (a) The Corporation for National and Community Service adopts 
AmeriCorps as its official agency operating name.
    (b) Use of AmeriCorps as the agency operating name incorporates the 
Corporation for National and Community Service by reference.



Sec.  2500.2  Description of Logos.

    (a) The AmeriCorps Logo (Logo) is the key element in agency 
identification. It provides a visual representation of the agency's role 
to unite America by bringing people together to serve communities. It is 
symbolic of the way AmeriCorps members and volunteers lift and improve 
communities through service and volunteering. This Logo is the visual 
link which connects the graphic communications of all Agency programs.
    (b) The Logo is described as follows: The logo is an image of a 
solid circle containing an A where one pillar is a solid block line and 
the other is represented by a flag pole with the flag in motion, 
appearing to fly from the left to the right and forming the A as the 
flag intersects with the other pillar. AmeriCorps appears in bold to the 
right of the mark.
[GRAPHIC] [TIFF OMITTED] TR15OC20.002

    (c) The AmeriCorps Seniors Logo (Seniors Logo) identifies the 
highlighted AmeriCorps Seniors programs and represents the agency's 
commitment to programs and volunteer opportunities for the older 
American population.
    (d) The AmeriCorps Seniors Logo is described as follows: The word 
Seniors appears beneath AmeriCorps to the right of the circle containing 
the A.
[GRAPHIC] [TIFF OMITTED] TR15OC20.003



Sec.  2500.3  Retirement of Logos.

    The agency officially retires the day-to-day use of all pre-existing 
logos, emblems, and other insignia, except the Days of Service logos, 
but does not relinquish the legal rights to these logos.

[[Page 642]]



Sec.  2500.4  Authority to affix logos.

    Restrictions on the use of AmeriCorps logos are found in 45 CFR 
2540.500 through 2540.560.

                       PARTS 2501	2504 [RESERVED]



PART 2505_RULES IMPLEMENTING THE GOVERNMENT IN THE SUNSHINE ACT--
Table of Contents



Sec.
2505.1 Applicability.
2505.2 Definitions.
2505.3 To what extent are meetings of the Board open to the public?
2505.4 On what grounds may the Board close a meeting or withhold 
          information?
2505.5 What are the procedures for closing a meeting, withholding 
          information, and responding to requests by affected persons to 
          close a meeting?
2505.6 What are the procedures for making a public announcement of a 
          meeting?
2505.7 What are the procedures for changing the time or place of a 
          meeting following the public announcement?

    Authority: 5 U.S.C. 552b; 42 U.S.C. 12651c(c).

    Source: 64 FR 66403, Nov. 26, 1999, unless otherwise noted.



Sec.  2505.1  Applicability.

    (a) This part implements the provisions of section 3(a) of the 
Government in the Sunshine Act (5 U.S.C. 552b). These procedures apply 
to meetings of the Corporation's Board of Directors, or to any 
subdivision of the Board that is authorized to act on its behalf. The 
Board of Directors may waive the provisions of this part to the extent 
authorized by law.
    (b) Nothing in this part expands or limits the present rights of any 
person under the Freedom of Information Act (5 U.S.C. 552), except that 
the exemptions set forth in Sec.  2505.4 shall govern in the case of any 
request made pursuant to the Freedom of Information Act to copy or 
inspect the transcript, recording, or minutes described in Sec.  2505.5.
    (c) Nothing is this part authorizes the Corporation to withhold from 
any individual any record, including transcripts, recordings, or minutes 
required by this part, which is otherwise accessible to such individual 
under the Privacy Act (5 U.S.C. 552a).



Sec.  2505.2  Definitions.

    As used in this part:
    (a) Board means the Board of Directors established pursuant to 42 
U.S.C. 12651a, or any subdivision of the Board that is authorized to act 
on its behalf.
    (b) Chairperson means the Member elected by the Board to serve as 
Chairperson.
    (c) General Counsel means the Corporation's principal legal officer 
or other attorney acting at the designation of the Corporation's 
principal legal officer.
    (d) Corporation means the Corporation for National and Community 
Service established pursuant to 42 U.S.C. 12651.
    (e) Meeting means the deliberations of at least a quorum of the 
Corporation's Board of Directors where such deliberations determine or 
result in the joint conduct or disposition of official Corporation 
business. A meeting may be conducted under this part through telephone 
or similar communications equipment by means of which all participants 
may communicate with each other. The term meeting includes a portion 
thereof. The term meeting does not include:
    (1) Notation voting or similar consideration of business, whether by 
circulation of material to the Members individually in writing or by a 
polling of the members individually by telephone.
    (2) Action by a quorum of the Board to--
    (i) Open or to close a meeting or to release or to withhold 
information pursuant to Sec.  2505.5;
    (ii) Set an agenda for a proposed meeting;
    (iii) Call a meeting on less than seven days' notice as permitted by 
Sec.  2505.6(b); or
    (iv) Change the subject-matter or the determinations to open or to 
close a publicly announced meeting under Sec.  2505.7(b).
    (3) A gathering for the purpose of receiving briefings from the 
Corporation's staff or expert consultants, provided that Members of the 
Board do not engage in deliberations at such sessions that determine or 
result in the joint conduct or disposition of official Corporation 
business on such matters.

[[Page 643]]

    (4) A gathering for the purpose of engaging in preliminary 
discussions or exchanges of views that do not effectively predetermine 
official Corporation action on a particular matter.
    (f) Member means a current member of the Corporation's Board of 
Directors.
    (g) Presiding Officer means the Chairperson or, in the absence of 
the Chairperson, the Vice Chairperson of the Board of Directors or other 
member authorized to act in this capacity by the Board.
    (h) Quorum means the number of Members authorized to conduct 
Corporation business pursuant to the Board's bylaws.



Sec.  2505.3  To what extent are meetings of the Board open to the public?

    The Board shall conduct meetings, as defined in Sec.  2505.2, in 
accordance with this part. Except as provided in Sec.  2505.4, the 
Board's meetings shall be open to the public. The public is invited to 
attend all meetings of the Board that are open to the public but may not 
participate in the Board's deliberations at such meetings or record any 
meeting by means of electronic, photographic, or other device.



Sec.  2505.4  On what grounds may the Board close a meeting 
or withhold information?

    The Board may close a meeting or withhold information that otherwise 
would be required to be disclosed under Sec. Sec.  2505.5, 2505.6 and 
2505.7 if it properly determines that an open meeting or disclosure is 
likely to--
    (a) Disclose matters that are--
    (1) Specifically authorized under criteria established by an 
Executive order to be kept secret in the interests of national defense 
or foreign policy; and
    (2) In fact properly classified pursuant to such Executive order;
    (b) Relate solely to the internal personnel rules and practices of 
the Corporation;
    (c) Disclose matters specifically exempted from disclosure by 
statute (other than 5 U.S.C. 552), provided that such statute--
    (1) Requires that the matters be withheld from the public in such a 
manner as to leave no discretion on the issue; or
    (2) Establishes particular criteria for withholding or refers to 
particular types of matters to be withheld;
    (d) Disclose trade secrets and commercial or financial information 
obtained from a person and privileged or confidential;
    (e) Involve accusing any person of a crime, or formally censuring 
any person;
    (f) Disclose information of a personal nature where disclosure would 
constitute a clearly unwarranted invasion of personal privacy;
    (g) 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--
    (1) Interfere with enforcement proceedings;
    (2) Deprive a person of a right to a fair trial or an impartial 
adjudication;
    (3) Constitute an unwarranted invasion of personal privacy;
    (4) 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;
    (5) Disclose investigative techniques and procedures; or
    (6) Endanger the life or physical safety of law enforcement 
personnel;
    (h) 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 
institution;
    (i) Disclose information the premature disclosure of which would be 
likely to significantly frustrate implementation of a proposed action of 
the Corporation, except that this provision shall not apply in any 
instance where the Corporation has already disclosed to the public the 
content or nature of its proposed action, or where the Corporation is 
required by law to make such disclosure on its own initiative prior to 
taking final action; or

[[Page 644]]

    (j) Specifically concerning the Corporation's issuance of a subpoena 
or the Corporation'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 Corporation of a 
particular case of formal adjudication pursuant to the procedures in 5 
U.S.C. 554 or otherwise involving a determination on the record after 
opportunity for a hearing.



Sec.  2505.5  What are the procedures for closing a meeting, 
withholding information, and responding to requests by affected persons 
to close a meeting?

    (a) The Board may vote to close a meeting or withhold information 
pertaining to a meeting. Such action may be taken only when a majority 
of the entire membership of the Board votes to take such action. A 
separate vote shall be taken with respect to each action under Sec.  
2505.4. The Board may act by taking a single vote with respect to a 
series of meetings which are proposed to be closed to the public, or 
with respect to any information concerning a series of meetings, so long 
as each meeting in the series involves the same particular matters and 
is scheduled to be held no more than thirty days after the initial 
meeting in the series. Each Member's vote under this paragraph shall be 
recorded and no proxies shall be allowed.
    (b) If your interests may be directly affected if a meeting is open 
you may request that the Board close the meeting on one of the grounds 
referred to in Sec.  2505.4(e), (f), or (g). You should submit your 
request to the Corporation for National and Community Service, Office of 
the General Counsel, 250 E Street SW., Washington, DC 20525. The Board 
shall, upon the request of any one of its members, determine by recorded 
vote whether to grant your request.
    (c) Within one working day of any vote taken pursuant to this 
section, the Board shall make publicly available a written copy of such 
vote reflecting the vote of each Member on the question. If a meeting is 
to be closed to the public, the Board shall, within one working day, 
make available a full written explanation of its action closing the 
meeting and a list of all persons expected to attend the meeting and 
their affiliation.
    (d) For each closed meeting, the General Counsel shall publicly 
certify that, in his or her opinion, the meeting may be closed to the 
public and shall state each relevant exemption relied upon. A copy of 
the certification shall be available for public inspection.
    (e) For each closed meeting, the Board shall issue a statement 
setting forth the time, place, and persons present. A copy of such 
statement shall be available for public inspection.
    (f)(1) For each closed meeting, with the exception of a meeting 
closed pursuant to Sec.  2505.4(h) or (j), the Board shall maintain a 
complete transcript or electronic recording adequate to record fully the 
proceedings of each meeting.
    (2) For meetings that are closed pursuant to Sec.  2505.4(h) or (j), 
the Board may maintain a set of minutes in lieu of a transcript or 
recording. 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 vote. All documents 
considered in connection with any action shall be identified in such 
minutes.
    (3) The Corporation shall make promptly available to the public, in 
a place easily accessible to the public, the transcript, electronic 
recording, or minutes of the discussion of any item on the agenda, or of 
any item of the testimony of any witness received at the meeting, except 
for such item or items of such discussion or testimony as the 
Corporation determines to contain information which may be properly 
withheld. 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. The Corporation shall maintain the transcript, recording, 
or minutes for each closed meeting for at least two years or at least 
one year after the conclusion of any Corporation business acted upon at 
the meeting, whichever occurs later.

[64 FR 66403, Nov. 26, 1999, as amended at 81 FR 12600, Mar. 10, 2016]

[[Page 645]]



Sec.  2505.6  What are the procedures for making a public announcement 
of a meeting?

    (a) For each meeting, the Board shall make a public announcement, at 
least one week before the meeting, of--
    (1) The meeting's time and place;
    (2) The matters to be considered;
    (3) Whether the meeting is to be open or closed; and
    (4) The name and business telephone number of the official 
designated by the Board to respond to requests for information about the 
meeting.
    (b) The one week advance notice required by paragraph (a) of this 
section may be reduced only if--
    (1) The Board determines by recorded vote that Board business 
requires that the meeting be scheduled in less than seven days; and
    (2) The public announcement required by paragraph (a) of this 
section is made at the earliest practicable time and posted on the 
Corporation's home page.
    (c) Immediately following a public announcement required by 
paragraph (a) of this section, the Corporation will submit for 
publication in the Federal Register a notice of the time, place, and 
subject matter of the meeting, whether the meeting is open or closed, 
any change in one of the preceding, and the name and phone number of the 
official designated by the agency to respond to requests for information 
about the meeting.



Sec.  2505.7  What are the procedures for changing the time or place 
of a meeting following the public announcement?

    (a) After there has been a public announcement of a meeting, the 
time or place of the meeting may be changed only if the Board publicly 
announces the change at the earliest practicable time. Such a change 
need not be determined by recorded vote.
    (b) After there has been a public announcement of a meeting, the 
subject-matter of the meeting, or the determination of the Board to open 
or to close a meeting may be changed only when--
    (1) The Board determines, by recorded vote, that Board 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 at the earliest practicable time.
    (c) The deletion of any subject-matter previously announced for a 
meeting is not a change requiring the approval of the Board under 
paragraph (b) of this section.



PART 2506_COLLECTION OF DEBTS--Table of Contents



                         Subpart A_Introduction

Sec.
2506.1 Why is the Corporation issuing these regulations?
2506.2 Under what authority does the Corporation issue these 
          regulations?
2506.3 What definitions apply to the regulations in this part?
2506.4 What types of debts are excluded from these regulations?
2506.5 If a debt is not excluded from these regulations, may it be 
          compromised, suspended, terminated, or waived?
2506.6 What is a claim or debt?
2506.7 Why does the Corporation have to collect debts?
2506.8 What action might the Corporation take to collect debts?
2506.9 What rights do I have as a debtor?

                      Subpart B_General Provisions

2506.10 Will the Corporation use its cross-servicing agreement with 
          Treasury to collect its debts?
2506.11 Will the Corporation refer debts to the Department of Justice?
2506.12 Will the Corporation provide information to credit reporting 
          agencies?
2506.13 How will the Corporation contract for private collection 
          services?
2506.14 What should I expect to receive from the Corporation if I owe a 
          debt to the Corporation?
2506.15 What will the notice tell me regarding collection actions that 
          might be taken if the debt is not paid within 60 days of the 
          notice, or arrangements to pay the debt are not made within 60 
          days of the notice?
2506.16 What will the notice tell me about my opportunity for review of 
          my debt?
2506.17 What must I do to obtain a review of my debt, and how will the 
          review process work?
2506.18 What interest, penalty charges, and administrative costs will I 
          have to pay on a debt owed to the Corporation?
2506.19 How can I resolve my debt through voluntary repayment?

[[Page 646]]

2506.20 What is the extent of the Chief Executive Officer's authority to 
          compromise debts owed to the Corporation, or to suspend or 
          terminate collection action on such debts?
2506.21 May the Corporation's failure to comply with these regulations 
          be used as a defense to a debt?

                         Subpart C_Salary Offset

2506.30 What debts are included or excluded from coverage of these 
          regulations on salary offset?
2506.31 May I ask the Corporation to waive an overpayment that otherwise 
          would be collected by offsetting my salary as a Federal 
          employee?
2506.32 What are the Corporation's procedures for salary offset?
2506.33 How will the Corporation coordinate salary offsets with other 
          agencies?
2506.34 Under what conditions will the Corporation make a refund of 
          amounts collected by salary offset?
2506.35 Will the collection of a debt by salary offset act as a waiver 
          of my rights to dispute the claimed debt?

                       Subpart D_Tax Refund Offset

2506.40 Which debts can the Corporation refer to Treasury for collection 
          by offsetting tax refunds?
2506.41 What are the Corporation's procedures for collecting debts by 
          tax refund offset?

                     Subpart E_Administrative Offset

2506.50 Under what circumstances will the Corporation collect amounts 
          that I owe to the Corporation (or some other Federal agency) 
          by offsetting the debt against payments that the Corporation 
          (or some other Federal agency) owes me?
2506.51 How will the Corporation request that my debt to the Corporation 
          be collected by offset against some payment that another 
          Federal agency owes me?
2506.52 What procedures will the Corporation use to collect amounts I 
          owe to a Federal agency by offsetting a payment that the 
          Corporation would otherwise make to me?
2506.53 When may the Corporation make an offset in an expedited manner?
2506.54 Can a judgment I have obtained against the United States be used 
          to satisfy a debt that I owe to the Corporation?

                Subpart F_Administrative Wage Garnishment

2506.55 How will the Corporation collect debts through Administrative 
          Wage Garnishment?

    Authority: 5 U.S.C. 5514; 31 U.S.C. 3701-3720A, 3720D; 44 U.S.C. 
2104(a).

    Source: 68 FR 16438, Apr. 4, 2003, unless otherwise noted.



                         Subpart A_Introduction



Sec.  2506.1  Why is the Corporation issuing these regulations?

    (a) The Corporation is issuing these regulations to inform the 
public of procedures that may be used by the Corporation for the 
collection of debt.
    (b) These regulations provide that the Corporation will attempt to 
collect debts owed to it or other Government agencies either directly, 
or by other means including salary offsets, administrative offsets, tax 
refund offsets, or administrative wage garnishment.
    (c) These regulations also provide that the Corporation has entered 
into a cross-servicing agreement with the U.S. Department of the 
Treasury (Treasury) under which the Treasury will take authorized action 
to collect amounts owed to the Corporation.



Sec.  2506.2  Under what authority does the Corporation issue 
these regulations?

    (a) The Corporation is issuing the regulations in this part under 
the authority of 31 U.S.C. chapter 37, 3701-3720A and 3720D. These 
sections implement the requirements of the Federal Claims Collection Act 
of 1966, as amended by the Debt Collection Act of 1982 and the Debt 
Collection Improvement Act of 1996.
    (b) The Corporation is also issuing the regulations in this part to 
conform to the Federal Claims Collection Standards (FCCS), which 
prescribe standards for handling the Federal Government's claims for 
money or property. The FCCS are issued by the Department of Justice 
(DOJ) and the Treasury at 31 CFR chapter IX, parts 900-904. The 
Corporation adopts those standards without change. The regulations in 
this part supplement the FCCS by prescribing procedures necessary and 
appropriate for the Corporation's operations.
    (c) The Corporation is also issuing the regulations in this part to 
conform to the standards for handling Administrative Wage Garnishment 
processing

[[Page 647]]

by the Federal Government. The standards are issued by the Treasury at 
31 CFR 285.11. The Corporation adopts those standards without change. 
The regulations in this part supplement the standards by prescribing 
procedures necessary and appropriate for the Corporation's operations.
    (d) The Corporation is further issuing the regulations in this part 
under the authority of 5 U.S.C. 5514, and the salary offset regulations 
published by the Office of Personnel and Management at 5 CFR part 550, 
subpart K.
    (e) All of these debt collection regulations are issued under the 
Corporation's authority under 42 U.S.C. 12651c(c).



Sec.  2506.3  What definitions apply to the regulations in this part?

    As used in this part:
    Administrative offset means withholding funds payable by the United 
States (including funds payable by the United States on behalf of a 
State government) to, or held by the United States for, a person to 
satisfy a debt.
    Administrative wage garnishment means a process whereby a Federal 
agency may, without first obtaining a court order, order an employer to 
withhold up to 15 percent of your disposable pay for payment to the 
Federal agency to satisfy a delinquent non-tax debt.
    Agency means a department, agency, court, court administrative 
office, or instrumentality in the executive, judicial, or legislative 
branch of government, including a government corporation.
    Certification means a written statement received by a paying agency 
or disbursing official from a creditor agency that requests the paying 
agency or disbursing official to offset the salary of an employee and 
specifies that required procedural protections have been afforded the 
employee.
    Chief Executive Officer means the Chief Executive Officer of the 
Corporation, or his or her designee.
    Claim (see definition of Debt in this section).
    Compromise means the settlement of a debt for less than the full 
amount owed.
    Corporation means the Corporation for National and Community 
Service.
    Creditor agency means the agency to which the debt is owed, 
including a debt collection center when acting on behalf of the creditor 
agency.
    Cross-servicing agreement is a letter of agreement entered into 
between the Corporation and the Financial Management Service (FMS) of 
the Treasury in which the Corporation has authorized FMS to take all 
appropriate actions to enforce collection of debts or groups of debts 
referred to FMS by the Corporation. These debt collection services are 
provided by FMS on behalf of the Corporation in accordance with all 
statutory and regulatory requirements.
    Day means calendar day. To count days, include the last day of the 
period unless it is a Saturday, a Sunday, or a Federal legal holiday.
    Debt and claim are deemed synonymous and interchangeable. These 
terms mean an amount of money, funds, or property that has been 
determined by an agency official to be due the United States from any 
person, organization, or entity except another Federal agency. For the 
purpose of administrative offset under 31 U.S.C. 3716 and subpart E of 
these regulations, the terms, ``debt'' and ``claim'' also include money, 
funds or property owed by a person to a State (including past-due 
support being enforced by a State); the District of Columbia; American 
Samoa; Guam; the United States Virgin Islands; the Commonwealth of the 
Northern Mariana Islands; or the Commonwealth of Puerto Rico.
    Debt collection center means the Treasury or any other agency or 
division designated by the Secretary of the Treasury with authority to 
collect debts on behalf of creditor agencies.
    Debtor means a person, organization, or entity, except another 
Federal agency, who owes a debt. Use of the terms ``I,'' ``you,'' 
``me,'' and similar references to the reader of the regulations in this 
part are meant to apply to debtors as defined in this paragraph.
    Delinquent debt means a debt that has not been paid by the date 
specified in the Corporation's initial written demand for payment or 
applicable agreement or instrument (including a post-delinquency payment 
agreement), unless other satisfactory payment arrangements have been 
made.

[[Page 648]]

    Disposable pay means the part of an employee's pay that remains 
after deductions that are required to be withheld by law have been made.
    Employee means a current employee of an agency, including a current 
member of the Armed Forces or Reserve of the Armed Forces of the United 
States.
    Federal Claims Collection Standards (FCCS) means the standards 
currently published by DOJ and the Treasury at 31 CFR parts 900-904.
    Paying agency means any agency that is making payments of any kind 
to a debtor. In some cases, the Corporation may be both the creditor 
agency and the paying agency.
    Payroll office means the office that is primarily responsible for 
payroll records and the coordination of pay matters with the appropriate 
personnel office.
    Person includes a natural person or persons, profit or non-profit 
corporation, partnership, association, trust, estate, consortium, state 
or local government, or other entity that is capable of owing a debt to 
the United States; however, agencies of the United States are excluded.
    Private collection contractor means a private debt collector under 
contract with an agency to collect a non-tax debt owed to the United 
States.
    Salary offset means a payroll procedure to collect a debt under 5 
U.S.C. 5514 and 31 U.S.C. 3716 by deduction(s) at one or more officially 
established pay intervals from the current pay account of an employee, 
without his or her consent.
    Tax refund offset means the reduction of a tax refund by the amount 
of a past-due legally enforceable debt owed to the Corporation or any 
other Federal agency.
    Waiver means the cancellation, remission, forgiveness, or non-
recovery of a debt.
    Withholding order means any order for withholding or garnishment of 
pay issued by an agency, or judicial or administrative body.



Sec.  2506.4  What types of debts are excluded from these regulations?

    The following types of debts are excluded:
    (a) Debts or claims arising under the Internal Revenue Code (26 
U.S.C. 1 et seq.) or the tariff laws of the United States, or the Social 
Security Act (42 U.S.C. 301 et seq.); except as provided under sections 
204(f) and 1631 (42 U.S.C. 404(f) and 1383(b)(4)(A)).
    (b) Any case to which the Contract Disputes Act (41 U.S.C. 601 et 
seq.) applies;
    (c) Any case where collection of a debt is explicitly provided for 
or provided by another statute, e.g., travel advances under 5 U.S.C. 
5705 and employee training expenses under 5 U.S.C. 4108, or, as provided 
for by title 11 of the United States Code, when the claims involve 
bankruptcy;
    (d) Any debt based in whole or in part on conduct in violation of 
the antitrust laws or involving fraud, the presentation of a false 
claim, or misrepresentation on the part of the debtor or any party 
having an interest in the claim, as described in the FCCS, unless DOJ 
authorizes the Corporation to handle the collection;
    (e) Claims between Federal agencies;
    (f) Unless otherwise provided by law, administrative offset of 
payments under the authority of 31 U.S.C. 3716 to collect a debt may not 
be initiated more than 10 years after the Government's right to collect 
the debt first accrued. (Exception: The 10-year limit does not apply if 
facts material to the Federal Government's right to collect the debt 
were not known and could not reasonably have been known by the official 
or officials of the Government who were charged with the responsibility 
to discover and collect such debts.) The 10-year limitation also does 
not apply to debts reduced to a judgment; and
    (g) Unless otherwise stated, debts which have been transferred to 
the Treasury or referred to the DOJ will be collected in accordance with 
the procedures of those agencies.



Sec.  2506.5  If a debt is not excluded from these regulations, 
may it be compromised, suspended, terminated, or waived?

    Nothing in this part precludes:
    (a) The compromise, suspension, or termination of collection 
actions, where appropriate under the FCCS, or

[[Page 649]]

the use of alternative dispute resolution methods if they are consistent 
with applicable law and regulations.
    (b) An employee from requesting waiver of an erroneous payment under 
5 U.S.C. 5584, 10 U.S.C. 2774, or 32 U.S.C. 716; or any debtor from 
questioning the amount or validity of a debt, in the manner set forth in 
this part.



Sec.  2506.6  What is a claim or debt?

    A claim or debt is an amount of money, funds, or property that has 
been determined by an agency official to be due the United States from 
any person, organization, or entity except another Federal agency (see 
Sec.  2506.3).



Sec.  2506.7  Why does the Corporation have to collect debts?

    Federal agencies are required to try to collect claims or debts of 
the Federal Government for money, funds, or property arising out of the 
agency's activities.



Sec.  2506.8  What action might the Corporation take to collect debts?

    (a) There are a number of actions that the Corporation is permitted 
to take when attempting to collect debts. These actions include:
    (1) Salary, tax refund or administrative offset, or administrative 
wage garnishment (see subparts C, D, E, and F of this part 
respectively); or
    (2) Using the services of private collection contractors.
    (b) In certain instances, usually after collection efforts have 
proven unsuccessful, the Corporation transfers debts to the Treasury for 
collection or refers them to the DOJ for litigation (see Sec. Sec.  
2506.10 and 2506.11).



Sec.  2506.9  What rights do I have as a debtor?

    As a debtor you have several basic rights. You have a right to:
    (a) Notice as set forth in these regulations (see Sec.  2506.14);
    (b) Inspect the records that the Corporation has used to determine 
that you owe a debt (see Sec.  2506.14);
    (c) Request review of the debt and possible payment options (see 
Sec.  2506.17);
    (d) Propose a voluntary repayment agreement (see Sec.  2506.19); 
and/or
    (e) Question if the debt is excluded from these regulations (see 
Sec.  2506.5(b)).



                      Subpart B_General Provisions



Sec.  2506.10  Will the Corporation use its cross-servicing agreement 
with Treasury to collect its debts?

    (a) The Corporation entered into a cross-servicing agreement on 
March 26, 1999, with Treasury Financial Management Services (FMS) that 
authorizes the Treasury to take the collection actions described in this 
part on behalf of the Corporation (see Sec.  2506.3). The Corporation 
will refer debts or groups of debts to FMS for collection action. The 
debt collection procedures that the Treasury FMS uses are based on 31 
U.S.C. chapter 37 and this part.
    (b) The Corporation must transfer to the Treasury any debt that has 
been delinquent for a period of 180 days or more, so that the Secretary 
of the Treasury may take appropriate action to collect the debt or 
terminate collection action. This is pursuant to Sec.  901.3 of the 
FCCS.
    (c) Paragraph (b) of this section will not apply to any debt or 
claim that:
    (1) Is in litigation or foreclosure;
    (2) Will be disposed of under an approved asset sales program;
    (3) Has been referred to a private collection contractor for 
collection for a period of time acceptable to the Secretary of the 
Treasury;
    (4) Is at a debt collection center for a period of time acceptable 
to the Secretary of the Treasury;
    (5) Will be collected under internal offset procedures within 3 
years after the date the debt or claim is first delinquent; or
    (6) Is exempt from this requirement based on a determination by the 
Secretary of the Treasury.



Sec.  2506.11  Will the Corporation refer debts to the Department of Justice?

    The Corporation will refer to DOJ for litigation debts on which 
aggressive collection actions have been taken, but which could not be 
collected, compromised, suspended, or terminated. Referrals will be made 
as early as possible, consistent with aggressive Corporation collection 
action, and within

[[Page 650]]

the period for bringing a timely suit against the debtor.



Sec.  2506.12  Will the Corporation provide information to 
credit reporting agencies?

    (a) The Corporation will report certain delinquent debts to 
appropriate consumer credit reporting agencies by providing the 
following information:
    (1) A statement that the debt is valid and overdue;
    (2) The name, address, taxpayer identification number, and any other 
information necessary to establish the identity of the debtor;
    (3) The amount, status, and history of the debt; and
    (4) The program or pertinent activity under which the debt arose.
    (b) Before disclosing debt information to a credit reporting agency, 
the Corporation:
    (1) Takes reasonable action to locate the debtor if a current 
address is not available;
    (2) Provides the notice required under Sec.  2506.14(a) if a current 
address is available; and
    (3) Obtains satisfactory assurances from the credit reporting agency 
that it complies with the Fair Credit Reporting Act (15 U.S.C. 1681 et 
seq.) and other Federal laws governing the provision of credit 
information.
    (c) At the time debt information is submitted to a credit reporting 
agency, the Corporation provides a written statement to the reporting 
agency that all required actions have been taken. In addition, the 
Corporation thereafter ensures that the credit reporting agency is 
promptly informed of any substantive change in the conditions or amount 
of the debt, and promptly verifies or corrects information relevant to 
the debt.
    (d) If a debtor disputes the validity of the debt, the credit 
reporting agency refers the matter to the appropriate Corporation 
official. The credit reporting agency excludes the debt from its reports 
until the Corporation certifies in writing that the debt is valid.
    (e) The Corporation may disclose to a commercial credit bureau 
information concerning a commercial debt, including the following:
    (1) Information necessary to establish the name, address, and 
employer identification number of the commercial debtor;
    (2) The amount, status, and history of the debt; and
    (3) The program or pertinent activity under which the debt arose.



Sec.  2506.13  How will the Corporation contract for 
private collection services?

    The Corporation uses the services of a private collection contractor 
when it determines that such use is in the Corporation's best interest. 
When the Corporation determines that there is a need to contract for 
private collection services, the Corporation:
    (a) Retains sole authority to:
    (1) Resolve any dispute with the debtor regarding the validity of 
the debt;
    (2) Compromise the debt;
    (3) Suspend or terminate collection action;
    (4) Refer the debt to the DOJ for litigation; and
    (5) Take any other action under this part;
    (b) Requires the contractor to comply with the:
    (1) Privacy Act of 1974, as amended, to the extent specified in 5 
U.S.C. 552a(m);
    (2) Fair Debt Collection Practices Act (15 U.S.C. 1692-1692o); and
    (3) Other applicable Federal and State laws pertaining to debt 
collection practices and applicable regulations of the Corporation in 
this part;
    (c) Requires the contractor to account accurately and fully for all 
amounts collected; and
    (d) Requires the contractor to provide to the Corporation, upon 
request, all data and reports contained in its files related to its 
collection actions on a debt.



Sec.  2506.14  What should I expect to receive from the Corporation 
if I owe a debt to the Corporation?

    (a) The Corporation will send you a written notice when we determine 
that you owe a debt to the Corporation. The notice will be hand-
delivered or sent to you at the most current address known to the 
Corporation. The notice will inform you of the following:

[[Page 651]]

    (1) The amount, nature, and basis of the debt;
    (2) That a designated Corporation official has reviewed the debt and 
determined that it is valid;
    (3) That payment of the debt is due as of the date of the notice, 
and that the debt will be considered delinquent if you do not pay it 
within 30 days of the date of the notice;
    (4) The Corporation's policy concerning interest, penalty charges, 
and administrative costs (see Sec.  2506.18), including a statement that 
such assessments must be made against you unless excused in accordance 
with the FCCS and this part;
    (5) That you have the right to inspect and copy disclosable 
Corporation records pertaining to your debt, or to receive copies of 
those records if personal inspection is impractical;
    (6) That you have the opportunity to enter into an agreement, in 
writing and signed by both you and the designated Corporation official, 
for voluntary repayment of the debt (see Sec.  2506.19);
    (7) The address, telephone number, and name of the Corporation 
official available to discuss the debt;
    (8) Possible collection actions that might be taken if the debt is 
not paid within 60 days of the notice, or arrangements to pay the debt 
are not made within 60 days of the notice (see Sec.  2506.15 for a 
fuller description of possible actions);
    (9) That the Corporation may suspend or revoke any licenses, 
permits, or other privileges for failure to pay a debt; and
    (10) Information on your opportunity to obtain a review concerning 
the existence or amount of the debt, or the proposed schedule for offset 
of Federal employee salary payments (see Sec.  2506.16).
    (b) The Corporation will respond promptly to communications from 
you.
    (c) Exception to entitlement to notice, hearing, written responses, 
and final decisions. With respect to the regulations covering internal 
salary offset collections (see Sec.  2506.32), the Corporation excepts 
from the provisions of paragraph (a) of this section--
    (1) Any adjustment to pay arising out of an employee's election 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 4 pay periods or less;
    (2) A routine intra-agency adjustment of pay that is made to correct 
an overpayment of pay attributable to clerical or administrative errors 
or delays in processing pay documents, if the overpayment occurred 
within the 4 pay periods preceding the adjustment and, at the time of 
such adjustment, or as soon thereafter as practical, the individual is 
provided written notice of the nature and the amount of the adjustment 
and point of contact for contesting such adjustment; or
    (3) Any adjustment to collect a debt amounting to $50 or less, if, 
at the time of such adjustment, or as soon thereafter as practical, the 
individual is provided written notice of the nature and the amount of 
the adjustment and a point of contact for contesting such adjustment.



Sec.  2506.15  What will the notice tell me regarding collection actions 
that might be taken if the debt is not paid within 60 days of the notice, 
or arrangements to pay the debt are not made within 60 days of the notice?

    The notice provided under Sec.  2506.14 will advise you that, within 
60 days of the date of the notice, your debt (including any interest, 
penalty charges, and administrative costs) must be paid or you must 
enter into a voluntary repayment agreement. If you do not pay the debt 
or enter into the agreement within that deadline, the Corporation may 
enforce collection of the debt by any or all of the following methods:
    (a) By transferring the debt to the Treasury for collection, 
including under a cross-servicing agreement with the Treasury (see Sec.  
2506.10);
    (b) By referral to a credit reporting agency (see Sec.  2506.12), 
private collection contractor (see Sec.  2506.13), or the DOJ (see Sec.  
2506.11);
    (c) If you are a Corporation employee, by deducting money from your 
disposable pay account until the debt (and all accumulated interest, 
penalty charges, and administrative costs) is paid in full (see subpart 
C of this part). The Corporation will specify the

[[Page 652]]

amount, frequency, approximate beginning date, and duration of the 
deduction. 5 U.S.C. 5514 and 31 U.S.C. 3716 govern such proceedings;
    (d) If you are an employee of a Federal agency other than the 
Corporation, by initiating certification procedures to implement a 
salary offset by that Federal agency (see subpart C of this part). 5 
U.S.C. 5514 governs such proceedings;
    (e) By referring the debt to the Treasury for offset against any 
refund of overpayment of tax (see subpart D of this part);
    (f) By administrative offset (see subpart E of this part);
    (g) By administrative wage garnishment (see subpart F of this part); 
or
    (h) By liquidation of security or collateral. The Corporation has 
the right to hold security or collateral, liquidate it, and apply the 
proceeds to your debt through the exercise of a power of sale in the 
security instrument or a foreclosure. The Corporation will not follow 
the procedures in this paragraph (h) if the cost of disposing of the 
collateral will be disproportionate to its value.



Sec.  2506.16  What will the notice tell me about my opportunity for review 
of my debt?

    The notice provided by the Corporation under Sec. Sec.  2506.14 and 
2506.15 will also advise you of the opportunity to obtain a review 
within the Corporation concerning the existence or amount of the debt or 
the proposed schedule for offset of Federal employee salary payments. 
The notice will also advise you of the following:
    (a) The name, address, and telephone number of a Corporation 
official whom you may contact concerning procedures for requesting a 
review;
    (b) The method and time period for requesting a review;
    (c) That the filing of a request for a review on or before the 60th 
day following the date of the notice will stay the commencement of 
collection proceedings;
    (d) The name and address of the Corporation official to whom you 
should send the request for a review;
    (e) That a final decision on the review (if one is requested) will 
be issued in writing at the earliest practical date, but not later than 
60 days after the receipt of the request for a review, unless you 
request, and the review official grants, a delay in the proceedings;
    (f) That any knowingly false or frivolous statements, 
representations, or evidence may subject you to:
    (1) Disciplinary procedures appropriate under 5 U.S.C. chapter 75, 5 
CFR part 752, or any other applicable statute or regulations;
    (2) Penalties under the False Claims Act (31 U.S.C. 3729-3733) or 
any other applicable statutory authority; and
    (3) Criminal penalties under 18 U.S.C. 286, 287, 1001, and 1002, or 
any other applicable statutory authority;
    (g) Any other rights available to you to dispute the validity of the 
debt or to have recovery of the debt waived, or remedies available to 
you under statutes or regulations governing the program for which the 
collection is being made; and
    (h) That unless there are applicable contractual or statutory 
provisions to the contrary, amounts paid on or deducted for the debt 
that are later waived or found not owed will be promptly refunded to 
you.



Sec.  2506.17  What must I do to obtain a review of my debt, 
and how will the review process work?

    (a) Request for review. (1) You have the right to request a review 
by the Corporation of the existence or the amount of your debt, the 
proposed schedule for offset of Federal employee salary payments, or 
whether the debt is past due or legally enforceable. If you want a 
review, you must send a written request to the Corporation official 
designated in the notice (see Sec.  2506.16(d)).
    (2) You must sign your request for review and fully identify and 
explain with reasonable specificity all the facts, evidence, and 
witnesses that support your position. Your request for review should be 
accompanied by available evidence to support your contentions.
    (3) Your request for review must be received by the designated 
officer or employee of the Corporation on or before the 60th calendar 
day following the date of the notice. Timely filing

[[Page 653]]

will stay the commencement of collection procedures. The Corporation may 
consider requests filed after the 60-day period provided for in this 
section if you:
    (i) Can show that the delay was the result of circumstances beyond 
your control; or
    (ii) Did not receive notice of the filing deadline (unless you had 
actual notice of the filing deadline).
    (b) Inspection of the Corporation records related to the debt. (1) 
If you want to inspect or copy the Corporation records related to the 
debt (see Sec.  2506.14(a)(5)), you must send a letter to the 
Corporation official designated in the notice. Your letter must be 
received within 30 days of the date of the notice.
    (2) In response to the timely request described in paragraph (b)(1) 
of this section, the designated Corporation official will notify you of 
the location and time when you may inspect and copy records related to 
the debt.
    (3) If personal inspection of the Corporation records related to the 
debt is impractical, reasonable arrangements will be made to send you 
copies of those records.
    (c) Review official. (1) When required by Federal law or regulation, 
such as in a salary offset situation, the Corporation will request an 
administrative law judge, or hearing official from another agency who is 
not under the supervision or control of the Chief Executive Officer, to 
conduct the review. In these cases, the hearing official will, following 
the review, submit the review decision to the Chief Executive Officer 
for the issuance of the Corporation's final decision (see paragraph (f) 
of this section for content of the review decision).
    (2) When Federal law or regulation does not require the Corporation 
to have the review conducted by an administrative law judge, or by a 
hearing official from another agency who is not under the supervision or 
control of the Chief Executive Officer, the Corporation has the right to 
appoint a hearing official to conduct the review. In these cases, the 
hearing official will, following the review, submit the review decision 
to the Chief Executive Officer for the issuance of the Corporation's 
final decision (see paragraph (f) of this section for the content of the 
review decision).
    (d) Review procedure. If you request a review, the review official 
will notify you of the form of the review to be provided. The review 
official will determine whether an oral hearing is required, or if a 
review of the written record is sufficient, in accordance with the FCCS. 
Although you may request an oral hearing, such a hearing is required 
only when a review of the documentary evidence cannot determine the 
question of indebtedness, such as when the validity of the debt turns on 
an issue of credibility or truthfulness. In either case, the review 
official will conduct the review in accordance with the FCCS. If the 
review will include an oral hearing, the notice sent to you by the 
review official will set forth the date, time, and location of the 
hearing.
    (e) Date of decision. (1) The review official will issue a written 
decision, based upon either the written record or documentary evidence 
and information developed at an oral hearing. This decision will be 
issued as soon as practical, but not later than 60 days after the date 
on which the Corporation received your request for a review, unless you 
request, and the review official grants, a delay in the proceedings.
    (2) If the Corporation is unable to issue a decision within 60 days 
after the receipt of the request for a hearing:
    (i) The Corporation may not issue a withholding order or take other 
action until the review (in whatever form) is held and a decision is 
rendered; and
    (ii) If the Corporation previously issued a withholding order to the 
debtor's employer, the Corporation must suspend the withholding order 
beginning on the 61st day after the receipt of the review request and 
continuing until a review (in whatever form) is held and a decision is 
rendered.
    (f) Content of review decision. The review official will prepare a 
written decision that includes:
    (1) A statement of the facts presented to support the origin, 
nature, and amount of the debt;
    (2) The review official's findings, analysis, and conclusions; and
    (3) The terms of any repayment schedule, if applicable.

[[Page 654]]

    (g) Interest, penalty charge, and administrative cost accrual during 
review period. Interest, penalty charges, and administrative costs 
authorized by law will continue to accrue during the review period.



Sec.  2506.18  What interest, penalty charges, and administrative costs 
will I have to pay on a debt owed to the Corporation?

    (a) Interest. (1) The Corporation will assess interest on all 
delinquent debts unless prohibited by statute, regulation, or contract.
    (2) Interest begins to accrue on all debts from the date that the 
debt becomes delinquent. The Corporation will not recover interest if 
you pay the debt within 30 days of the date on which interest begins to 
accrue. The Corporation will assess interest at the rate established 
annually by the Secretary of the Treasury under 31 U.S.C. 3717, unless a 
different rate is either necessary to protect the interests of the 
Corporation or established by a contract, repayment agreement, or 
statute. The Corporation will notify you of the basis for its finding 
when a different rate is necessary to protect the interests of the 
Corporation.
    (3) The Chief Executive Officer may extend the 30-day period for 
payment without interest when he or she determines that such action is 
in the best interest of the Corporation. A decision to extend or not to 
extend the payment period is final and is not subject to further review.
    (b) Penalty. The Corporation will assess a penalty charge of 6 
percent a year on any portion of a debt that is delinquent for more than 
90 days.
    (c) Administrative costs. The Corporation will assess charges to 
cover administrative costs incurred as a result of your failure to pay a 
debt before it becomes delinquent. Administrative costs include the 
additional costs incurred in processing and handling the debt because it 
became delinquent, such as costs incurred in obtaining a credit report 
or in using a private collection contractor, or service fees charged by 
a Federal agency for collection activities undertaken on behalf of the 
Corporation.
    (d) Allocation of payments. A partial or installment payment by a 
debtor will be applied first to outstanding penalty assessments, second 
to administrative costs, third to accrued interest, and fourth to the 
outstanding debt principal.
    (e) Additional authority. The Corporation may assess interest, 
penalty charges, and administrative costs on debts that are not subject 
to 31 U.S.C. 3717 to the extent authorized under common law or other 
applicable statutory authority.
    (f) Waiver. (1) The Chief Executive Officer may (without regard to 
the amount of the debt) waive collection of all or part of accrued 
interest, penalty charges, or administrative costs, if he or she 
determines that collection of these charges would be against equity and 
good conscience or not in the best interest of the Corporation.
    (2) A decision to waive interest, penalty charges, or administrative 
costs may be made at any time before a debt is paid. However, and unless 
otherwise stated in these regulations, where these charges have been 
collected before the waiver decision, they will not be refunded. The 
Chief Executive Officer's decision to waive or not waive collection of 
these charges is final and is not subject to further review.



Sec.  2506.19  How can I resolve my debt through voluntary repayment?

    (a) In response to a notice of debt, you may propose to the 
Corporation that you be allowed to repay the debt through a voluntary 
repayment agreement in lieu of the Corporation taking other collection 
actions under this part.
    (b) Your request to enter into a voluntary repayment agreement must:
    (1) Be in writing;
    (2) Admit the existence of the debt; and
    (3) Either propose payment of the debt (together with interest, 
penalty charges, and administrative costs) in a lump sum, or set forth a 
proposed repayment schedule.
    (c) The Corporation will collect debts in one lump sum whenever 
feasible. However, if you are unable to pay your debt in one lump sum, 
the Corporation

[[Page 655]]

may accept payment in regular installments that bear a reasonable 
relationship to the size of the debt and your ability to pay. If 
possible, the installment payments should be sufficient in size and 
frequency to liquidate the debt in three years or less.
    (d) The Corporation will consider a request to enter into a 
voluntary repayment agreement in accordance with the FCCS. The Chief 
Executive Officer may request additional information from you, including 
financial statements if you request to make payments in installments, in 
order to determine whether to accept a voluntary repayment agreement. It 
is within the Chief Executive Officer's discretion to accept a repayment 
agreement instead of proceeding with other collection actions under this 
part, and to set the necessary terms of any voluntary repayment 
agreement. No repayment agreement will be binding on the Corporation 
unless it is in writing and signed by both you and the Chief Executive 
Officer. At the Corporation's option, you may be required to provide 
security as part of the agreement to make payments in installments. 
Notwithstanding the provisions of this section, 31 U.S.C. 3711 will 
govern any reduction or compromise of a debt.



Sec.  2506.20  What is the extent of the Chief Executive Officer's authority 
to compromise debts owed to the Corporation, or to suspend or terminate 
collection action on such debts?

    (a) The Chief Executive Officer may compromise, suspend, or 
terminate collection action on those debts owed to the Corporation that 
do not exceed $100,000 excluding interest, in conformity with the 
Federal Claims Collection Act of 1966, as amended. The Corporation will 
follow the policies in Sec.  902.2 of the FCCS.
    (b) The uncollected portion of a debt owed to the Corporation that 
is not recovered as the result of a compromise will be reported to the 
Internal Revenue Service (IRS) as income to the debtor in accordance 
with IRS procedures if this uncollected amount is at least $600.00.



Sec.  2506.21  May the Corporation's failure to comply with these regulations 
be used as a defense to a debt?

    No, the failure of the Corporation to comply with any standard in 
the FCCS or these regulations will not be available to any debtor as a 
defense.



                         Subpart C_Salary Offset



Sec.  2506.30  What debts are included or excluded from coverage 
of these regulations on salary offset?

    (a) The regulations in this subpart provide the Corporation 
procedures for the collection by salary offset of a Federal employee's 
pay to satisfy certain debts owed to the Corporation or to other Federal 
agencies.
    (b) The regulations in this subpart do not apply to any case where 
collection of a debt by salary offset is explicitly provided for or 
prohibited by another statute.
    (c) Nothing in the regulations in this subpart precludes the 
compromise, suspension, or termination of collection actions under the 
Federal Claims Collection Act of 1966, as amended, or the FCCS.
    (d) A levy imposed under the Internal Revenue Code takes precedence 
over a salary offset under this subpart, as provided in 5 U.S.C. 
5514(d).



Sec.  2506.31  May I ask the Corporation to waive an overpayment that 
otherwise would be collected by offsetting my salary as a Federal employee?

    Yes, the regulations in this subpart do not preclude you from 
requesting waiver of an overpayment under 5 U.S.C. 5584 or 8346(b), 10 
U.S.C. 2774, 32 U.S.C. 716, or other statutory provisions pertaining to 
the particular debts being collected.



Sec.  2506.32  What are the Corporation's procedures for salary offset?

    (a) The Corporation will coordinate salary deductions under this 
subpart as appropriate.
    (b) If you are a Corporation employee who owes a debt to the 
Corporation, the Corporation's payroll office in Human Resources will 
determine the amount of your disposable pay and will implement the 
salary offset.

[[Page 656]]

    (c) Deductions will begin within three official pay periods 
following receipt by the Corporation's payroll office of certification 
of debt from the creditor agency.
    (d) The Notice provisions of these regulations do not apply to 
certain debts arising under this section (see Sec.  2506.14(c)).
    (e) Types of collection. (1) Lump-sum offset. If the amount of the 
debt is equal to or less than 15 percent of disposable pay, the debt 
generally will be collected through one lump-sum offset.
    (2) Installment deductions. Installment deductions will be made over 
a period not greater than the anticipated period of employment. The size 
and frequency of installment deductions will bear a reasonable relation 
to the size of the debt and your ability to pay. However, the amount 
deducted from any period will not exceed 15 percent of the disposable 
pay from which the deduction is made unless you have agreed in writing 
to the deduction of a greater amount. If possible, installment payments 
will be sufficient in size and frequency to liquidate the debt in three 
years or less.
    (3) Deductions from final check. A deduction exceeding the 15 
percent of disposable pay limitation may be made from any final salary 
payment under 31 U.S.C. 3716 and the FCCS in order to liquidate the 
debt, whether the employee is being separated voluntarily or 
involuntarily.
    (4) Deductions from other sources. If an employee subject to salary 
offset is separated from the Corporation and the balance of the debt 
cannot be liquidated by offset of the final salary check, the 
Corporation may offset later payments of any kind against the balance of 
the debt, as allowed by 31 U.S.C. 3716 and the FCCS.
    (f) Multiple debts. In instances where two or more creditor agencies 
are seeking salary offsets, or where two or more debts are owed to a 
single creditor agency, the Corporation's payroll office may, at its 
discretion, determine whether one or more debts should be offset 
simultaneously within the 15 percent limitation.



Sec.  2506.33  How will the Corporation coordinate salary offsets 
with other agencies?

    (a) Responsibilities of the Corporation as the creditor agency (i.e. 
when the debtor owes a debt to the Corporation and is an employee of 
another agency). Upon completion of the procedures established in this 
subpart and pursuant to 5 U.S.C. 5514 and 31 U.S.C. 3716, the 
Corporation must submit a claim to a paying agency or disbursing 
official.
    (1) In its claim, the Corporation must certify, in writing, the 
following:
    (i) That the employee owes the debt;
    (ii) The amount and basis of the debt;
    (iii) The date the Corporation's right to collect the debt first 
accrued;
    (iv) That the Corporation's regulations in this subpart have been 
approved by OPM under 5 CFR part 550, subpart K; and
    (v) That the Corporation has met the certification requirements of 
the paying agency.
    (2) If the collection must be made in installments, the 
Corporation's claim will also advise the paying agency of the amount or 
percentage of disposable pay to be collected in each installment. The 
Corporation may also advise the paying agency of the number of 
installments to be collected and the date of the first installment, if 
that date is other than the next officially established pay period.
    (3) The Corporation will also include in its claim:
    (i) The employee's written consent to the salary offset;
    (ii) The employee's signed statement acknowledging receipt of the 
procedures required by 5 U.S.C. 5514; or
    (iii) Information regarding the completion of procedures required by 
5 U.S.C. 5514, including the actions taken and the dates of those 
actions.
    (4) If the employee is in the process of separating and has not 
received a final salary check or other final payment(s) from the paying 
agency, the Corporation must submit its claim to the paying agency or 
disbursing official for collection under 31 U.S.C. 3716. The paying 
agency will (under its regulations adopted under 5 U.S.C. 5514 and 5 CFR 
part 550, subpart K), certify the total amount of its collection on the 
debt and notify the employee and the

[[Page 657]]

Corporation. If the paying agency's collection does not fully satisfy 
the debt, and the paying agency is aware that the debtor is entitled to 
payments from the Civil Service Retirement and Disability Fund or other 
similar payments that may be due the debtor employee from other Federal 
government sources, then (under its regulations adopted under 5 U.S.C. 
5514 and 5 CFR part 550, subpart K), the paying agency will provide 
written notice of the outstanding debt to the agency responsible for 
making the other payments to the debtor employee. The written notice 
will state that the employee owes a debt, the amount of the debt, and 
that the provisions of this section have been fully complied with. 
However, the Corporation must submit a properly certified claim under 
this paragraph (a)(4) to the agency responsible for making the other 
payments before the collection can be made.
    (5) If the employee is already separated and all payments due from 
his or her former paying agency have been paid, the Corporation may 
request, unless otherwise prohibited, that money due and payable to the 
employee from the Civil Service Retirement and Disability Fund or other 
similar funds be administratively offset to collect the debt.
    (6) Employee transfer. When an employee transfers from one paying 
agency to another paying agency, the Corporation will not repeat the due 
process procedures described in 5 U.S.C. 5514 and this subpart to resume 
the collection. The Corporation will submit a properly certified claim 
to the new paying agency and will subsequently review the debt to ensure 
that the collection is resumed by the new paying agency.
    (b) Responsibilities of the Corporation as the paying agency (i.e., 
when the debtor owes a debt to another agency and is an employee of the 
Corporation). (1) Complete claim. When the Corporation receives a 
certified claim from a creditor agency (under the creditor agency's 
regulations adopted under 5 U.S.C. 5514 and 5 CFR part 550, subpart K), 
deductions should be scheduled to begin within three officially 
established pay intervals. Before deductions can begin, the Corporation 
sends the employee a written notice containing:
    (i) A statement that the Corporation has received a certified claim 
from the creditor agency;
    (ii) The amount of the debt;
    (iii) The date salary offset deductions will begin; and
    (iv) The amount of such deductions.
    (2) Incomplete claim. When the Corporation receives an incomplete 
certification of debt from a creditor agency, the Corporation will 
return the claim with a notice that the creditor agency must:
    (i) Comply with the procedures required under 5 U.S.C. 5514 and 5 
CFR part 550, subpart K, and
    (ii) Properly certify a claim to the Corporation before the 
Corporation will take action to collect from the employee's current pay 
account.
    (3) The Corporation is not authorized to review the merits of the 
creditor agency's determination with respect to the amount or validity 
of the debt certified by the creditor agency.
    (4) Employees who transfer from the Corporation to another paying 
agency. If, after the creditor agency has submitted the claim to the 
Corporation, the employee transfers from the Corporation to a different 
paying agency before the debt is collected in full, the Corporation will 
certify the total amount collected on the debt and notify the employee 
and the creditor agency in writing. The notification to the creditor 
agency will include information on the employee's transfer.



Sec.  2506.34  Under what conditions will the Corporation make a refund 
of amounts collected by salary offset?

    (a) If the Corporation is the creditor agency, it will promptly 
refund any amount deducted under the authority of 5 U.S.C. 5514, when:
    (1) The debt is waived or all or part of the funds deducted are 
otherwise found not to be owed (unless expressly prohibited by statute 
or regulation); or
    (2) An administrative or judicial order directs the Corporation to 
make a refund.
    (b) Unless required or permitted by law or contract, refunds under 
this section will not bear interest.

[[Page 658]]



Sec.  2506.35  Will the collection of a debt by salary offset act as a waiver 
of my rights to dispute the claimed debt?

    No, your involuntary payment of all or any portion of a debt under 
this subpart will not be construed as a waiver of any rights that you 
may have under 5 U.S.C. 5514 or other provisions of a law or written 
contract, unless there are statutory or contractual provisions to the 
contrary.



                       Subpart D_Tax Refund Offset



Sec.  2506.40  Which debts can the Corporation refer to Treasury 
for collection by offsetting tax refunds?

    (a) The regulations in this subpart implement 31 U.S.C. 3720A, which 
authorizes the Treasury to reduce a tax refund by the amount of a past-
due, legally enforceable debt owed to a Federal agency.
    (b) For purposes of this section, a past-due, legally enforceable 
debt referable to the Treasury for tax refund offset is a debt that is 
owed to the Corporation and:
    (1) Is at least $25.00;
    (2) Except in the case of a judgment debt, has been delinquent for 
at least three months and will not have been delinquent more than 10 
years at the time the offset is made;
    (3) With respect to which the Corporation has:
    (i) Given the debtor at least 60 days to present evidence that all 
or part of the debt is not past due or legally enforceable;
    (ii) Considered evidence presented by the debtor; and
    (iii) Determined that an amount of the debt is past due and legally 
enforceable;
    (4) With respect to which the Corporation has notified or has made a 
reasonable attempt to notify the debtor that:
    (i) The debt is past due, and
    (ii) Unless repaid within 60 days of the date of the notice, the 
debt may be referred to the Treasury for offset against any refund of 
overpayment of tax; and
    (5) All other requirements of 31 U.S.C. 3720A and the Treasury 
regulations relating to the eligibility of a debt for tax return offset 
(31 CFR 285.2) have been satisfied.



Sec.  2506.41  What are the Corporation's procedures for collecting debts 
by tax refund offset?

    (a) The Corporation's Accounting and Financial Management Services 
Division will be the point of contact with the Treasury for 
administrative matters regarding the offset program.
    (b) The Corporation will ensure that the procedures prescribed by 
the Treasury are followed in developing information about past-due debts 
and submitting the debts to the Treasury.
    (c) The Corporation will submit to the Treasury a notification of a 
taxpayer's liability for past-due legally enforceable debt. This 
notification will contain the following:
    (1) The name and taxpayer identification number of the debtor;
    (2) The amount of the past-due and legally enforceable debt;
    (3) The date on which the original debt became past due;
    (4) A statement certifying that, with respect to each debt reported, 
all of the requirements of Sec.  2506.40(b) have been satisfied; and
    (5) Any other information as prescribed by Treasury.
    (d) For purposes of this section, notice that collection of the debt 
is stayed by a bankruptcy proceeding involving the debtor will bar 
referral of the debt to the Treasury.
    (e) The Corporation will promptly notify the Treasury to correct 
data when the Corporation:
    (1) Determines that an error has been made with respect to a debt 
that has been referred;
    (2) Receives or credits a payment on the debt; or
    (3) Receives notice that the person owing the debt has filed for 
bankruptcy under title 11 of the United States Code and the automatic 
stay is in effect or has been adjudicated bankrupt and the debt has been 
discharged.
    (f) When advising debtors of the Corporation's intent to refer a 
debt to the Treasury for offset, the Corporation will also advise 
debtors of remedial actions (see Sec. Sec.  2506.9 and 2506.14 through 
2506.16 of this part) available to defer

[[Page 659]]

the offset or prevent it from taking place.



                     Subpart E_Administrative Offset



Sec.  2506.50  Under what circumstances will the Corporation collect amounts 
that I owe to the Corporation (or some other Federal agency) by offsetting 
the debt against payments that the Corporation (or some other Federal agency) 
owes me?

    (a) The regulations in this subpart apply to the collection of any 
debts you owe to the Corporation, or to any request from another Federal 
agency that the Corporation collect a debt you owe by offsetting your 
debt against a payment the Corporation owes you. Administrative offset 
is authorized under section 5 of the Federal Claims Collection Act of 
1966, as amended (31 U.S.C. 3716). The Corporation will carry out 
administrative offset in accordance with the provisions of the Federal 
Claims Collection Standards. The regulations in this subpart are 
intended only to supplement the provisions of the FCCS.
    (b) The Chief Executive Officer, after attempting to collect a debt 
you owe to the Corporation under section 3(a) of the Federal Claims 
Collection Act of 1966, as amended (31 U.S.C. 3711(a)), may collect the 
debt by administrative offset only after giving you:
    (1) Written notice of the type and amount of the debt, the intention 
of the Chief Executive Officer to collect the debt by administrative 
offset, and an explanation of the rights of the debtor;
    (2) An opportunity to inspect and copy the records of the 
Corporation related to the debt;
    (3) An opportunity for a review within the Corporation of the 
decision of the Corporation related to the debt; and
    (4) An opportunity to make a written agreement with the Chief 
Executive Officer to repay the amount of the debt.
    (c) No collection by administrative offset will be made on any debt 
that has been outstanding for more than 10 years, unless facts material 
to the Corporation's or the requesting Federal agency's right to collect 
the debt were not known, and reasonably could not have been known, by 
the official or officials responsible for discovering and collecting the 
debt.
    (d) The regulations in this subpart do not apply to:
    (1) A case in which administrative offset of the type of debt 
involved is explicitly prohibited by statute; or
    (2) Debts owed to the Corporation by Federal agencies.



Sec.  2506.51  How will the Corporation request that my debt 
to the Corporation be collected by offset against some payment that another 
Federal agency owes me?

    The Chief Executive Officer may request that funds due and payable 
to you by another Federal agency instead be paid to the Corporation to 
satisfy a debt you owe to the Corporation. The Corporation will refer 
debts to the Treasury for centralized administrative offset in 
accordance with the FCCS and the procedures established by the Treasury. 
Where centralized offset is not available or appropriate, the 
Corporation may request offset directly from the Federal agency that is 
holding funds for you. In requesting administrative offset, the 
Corporation will certify in writing to the Federal agency that is 
holding funds for you:
    (a) That you owe the debt;
    (b) The amount and basis of the debt; and
    (c) That the Corporation has complied with the requirements of 31 
U.S.C. 3716, its own administrative offset regulations in this subpart, 
the applicable administrative offset regulations of the agency holding 
the funds, and the applicable provisions of the FCCS with respect to 
providing you with due process.



Sec.  2506.52  What procedures will the Corporation use to collect amounts 
I owe to a Federal agency by offsetting a payment that the Corporation 
would otherwise make to me?

    (a) Any Federal agency may request that the Corporation 
administratively offset funds due and payable to you in order to collect 
a debt you owe to that agency. The Corporation will initiate the 
requested offset only upon:
    (1) Receipt of written certification from the creditor agency 
stating:
    (i) That you owe the debt;

[[Page 660]]

    (ii) The amount and basis of the debt;
    (iii) That the agency has prescribed regulations for the exercise of 
administrative offset; and
    (iv) That the agency has complied with its own administrative offset 
regulations and with the applicable provisions of the FCCS, including 
providing you with any required hearing or review; and
    (2) A determination by the Chief Executive Officer that offsetting 
funds payable to you by the Corporation in order to collect a debt owed 
by you would be in the best interest of the United States as determined 
by the facts and circumstances of the particular case, and that such an 
offset would not otherwise be contrary to law.
    (b) Multiple debts. In instances where two or more creditor agencies 
are seeking administrative offsets, or where two or more debts are owed 
to a single creditor agency, the Corporation may, in its discretion, 
allocate the amount it owes to you to the creditor agencies in 
accordance with the best interest of the United States as determined by 
the facts and circumstances of the particular case, paying special 
attention to applicable statutes of limitations.



Sec.  2506.53  When may the Corporation make an offset in an expedited manner?

    The Corporation may effect an administrative offset against a 
payment to be made to you before completion of the procedures required 
by Sec. Sec.  2506.51 and 2506.52 if failure to take the offset would 
substantially jeopardize the Corporation's ability to collect the debt 
and the time before the payment is to be made does not reasonably permit 
the completion of those procedures. An expedited offset will be followed 
promptly by the completion of those procedures. Amounts recovered by 
offset, but later found not to be owed to the United States, will be 
promptly refunded.



Sec.  2506.54  Can a judgment I have obtained against the United States 
be used to satisfy a debt that I owe to the Corporation?

    Yes. Collection by offset against a judgment obtained by a debtor 
against the United States will be accomplished in accordance with 31 
U.S.C. 3728 and 31 U.S.C. 3716.



                Subpart F_Administrative Wage Garnishment



Sec.  2506.55  How will the Corporation collect debts through 
Administrative Wage Garnishment?

    The Corporation will collect debts through Administrative Wage 
Garnishment in accordance with the Administrative Wage Garnishment 
regulations issued by the Treasury. The Corporation adopts, for purposes 
of this subpart, the Treasury's Administrative Wage Garnishment 
regulations in 31 CFR 285.11. This procedure allows the Corporation to 
garnish the disposable pay of a debtor without first obtaining a court 
order.



PART 2507_PROCEDURES FOR DISCLOSURE OF RECORDS UNDER THE FREEDOM 
OF INFORMATION ACT--Table of Contents



Sec.
2507.1 Definitions.
2507.2 What is the purpose of this part?
2507.3 What types of records are available for disclosure to the public?
2507.4 How are requests for records made?
2507.5 How does the Corporation process requests for records?
2507.6 Under what circumstances may the Corporation extend the time 
          limits for an initial response?
2507.7 How does one appeal the Corporation's denial of access to 
          records?
2507.8 How are fees determined?
2507.9 What records will be denied disclosure under this part?
2507.10 What records are specifically exempt from disclosure?
2507.11 What are the procedures for the release of commercial business 
          information?
2507.12 Authority.

Appendix A to Part 2507--Freedom of Information Act Request Letter 
          (Sample)
Appendix B to Part 2507--Freedom of Information Act Appeal for Release 
          of Information (Sample)

    Authority: 42 U.S.C. 12501 et seq.

    Source: 63 FR 26489, May 13, 1998, unless otherwise noted.

[[Page 661]]



Sec.  2507.1  Definitions.

    As used in this part, the following definitions shall apply:
    (a) Act means section 552 of Title 5, United States Code, sometimes 
referred to as the ``Freedom of Information Act'', and Pub. L. 104-231, 
110 Stat. 3048, sometimes referred to as the ``Electronic Freedom of 
Information Act Amendments of 1996.''
    (b) Agency means any executive department, military department, 
government corporation, or other establishment in the executive branch 
of the Federal Government, or any independent regulatory agency. Thus, 
the Corporation is a Federal agency.
    (c) Commercial use request means a request from, or on behalf of, a 
person 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. The use to which the requester will 
put the records sought will be considered in determining whether the 
request is a commercial use request.
    (d) Corporation means the Corporation for National and Community 
Service.
    (e) Educational institution means a pre-school, elementary or 
secondary school, institution of undergraduate or graduate higher 
education, or institution of professional or vocational education, which 
operates a program of scholarly research.
    (f) Electronic data means records and information (including e-mail) 
which are created, stored, and retrievable by electronic means.
    (g) Freedom of Information Act Officer (FOIA Officer) means the 
Corporation official who has been delegated the authority to make the 
initial determination on whether to release or withhold records, and to 
assess, waive, or reduce fees in response to FOIA requests.
    (h) Non-commercial scientific institution means an institution that 
is not operated substantially for purposes of furthering its own or 
someone else's business trade, or profit interests, and that is operated 
for purposes of conducting scientific research whose results are not 
intended to promote any particular product or industry.
    (i) Public interest means the interest in obtaining official 
information that sheds light on an agency's performance of its statutory 
duties because the information falls within the statutory purpose of the 
FOIA to inform citizens about what their government is doing.
    (j) Record includes books, brochures, electronic mail messages, 
punch cards, magnetic tapes, cards, discs, paper tapes, audio or video 
recordings, maps, pamphlets, photographs, slides, microfilm, and motion 
pictures, or other documentary materials, regardless of physical form or 
characteristics, made or received by the Corporation pursuant to Federal 
law or in connection with the transaction of public business and 
preserved by the Corporation as evidence of the organization, functions, 
policies, decisions, procedures, operations, programs, or other 
activities. Record does not include objects or articles such as tangible 
exhibits, models, equipment, or processing materials; or formulas, 
designs, drawings, or other items of valuable property. Record does not 
include books, magazines, pamphlets or other materials acquired solely 
for reference purposes. Record does not include personal records of an 
individual not subject to agency creation or retention requirements, 
created and maintained primarily for the convenience of an agency 
employee, and not distributed to other agency employees for their 
official use. Record does not include information stored within a 
computer for which there is no existing computer program for retrieval 
of the requested information. A record must exist and be in the 
possession and control of the Corporation at the time of the request to 
be considered subject to this part and the FOIA. There is no obligation 
to create, compile, or obtain a record to satisfy a FOIA request. See 
Sec.  2507.5(d) with respect to creating a record in the electronic 
environment.
    (k) Representative of the news media means a person who is actively 
gathering information for an entity organized to publish, broadcast or 
otherwise disseminate news to the public. News media entities include 
television and radio broadcasters, publishers of periodicals who 
distribute their products to the general public or who make their 
products available for purchase or

[[Page 662]]

subscription by the general public, and entities that may disseminate 
news through other media (e.g., electronic dissemination of text). 
Freelance journalists will be treated as representatives of a new media 
entity if they can show a likelihood of publication through such an 
entity. A publication contract would be the clearest proof, but the 
Corporation may also look to the past publication record of a requester 
in making this determination.
    (l) FOIA request means a written request for Corporation records, 
made by any person, including a member of the public (U.S. or foreign 
citizen), an organization, or a business, but not including a Federal 
agency, an order from a court, or a fugitive from the law, that either 
explicitly or implicitly involves the FOIA, or this part. Written 
requests may be received by postal service or by facsimile.
    (m) Review means the process of examining records located in 
response to a request to determine whether any record or portion of a 
record is permitted to be withheld. It also includes processing records 
for disclosure (i.e., excising portions not subject to disclosure under 
the Act and otherwise preparing them for release). Review does not 
include time spent resolving legal or policy issues regarding the 
application of exemptions under the Act.
    (n) Search means looking for records or portions of records 
responsive to a request. It includes reading and interpreting a request, 
and also page-by-page and line-by-line examination to identify 
responsive portions of a document. However, it does not include line-by-
line examination where merely duplicating the entire page would be a 
less expensive and quicker way to comply with the request.



Sec.  2507.2  What is the purpose of this part?

    The purpose of this part is to prescribe rules for the inspection 
and release of records of the Corporation for National and Community 
Service pursuant to the Freedom of Information Act (``FOIA''), 5 U.S.C. 
552, as amended. Information customarily furnished to the public in the 
regular course of the Corporation's official business, whether hard copy 
or electronic records which are available to the public through an 
established distribution system, or through the Federal Register, the 
National Technical Information Service, or the Internet, may continue to 
be furnished without processing under the provisions of the FOIA or 
complying with this part.



Sec.  2507.3  What types of records are available for disclosure to the public?

    (a)(1) The Corporation will make available to any member of the 
public who requests them, the following Corporation records:
    (i) All publications and other documents provided by the Corporation 
to the public in the normal course of agency business will continue to 
be made available upon request to the Corporation;
    (ii) Final opinions, including concurring and dissenting opinions, 
as well as orders, made in the adjudication of administrative cases;
    (iii) Statements of policy and interpretation adopted by the agency 
and not published in the Federal Register;
    (iv) Administrative staff manuals and instructions to the staff that 
affect a member of the public; and
    (v) Copies of all records, regardless of form or format, which, 
because of the nature of their subject matter, the agency determines 
have become or are likely to become the subject of subsequent requests 
for substantially the same records.
    (2) Copies of a current index of the materials in paragraphs 
(a)(1)(i) through (v) of this section that are maintained by the 
Corporation, or any portion thereof, will be furnished or made available 
for inspection upon request.
    (b) To the extent necessary to prevent a clearly unwarranted 
invasion of personal privacy, the Corporation may delete identifying 
details from materials furnished under this part.
    (c) Brochures, leaflets, and other similar published materials shall 
be furnished to the public on request to the extent they are available. 
Copies of any such materials which are out of print shall be furnished 
to the public at

[[Page 663]]

the cost of duplication, provided, however, that, in the event no copy 
exists, the Corporation shall not be responsible for reprinting the 
document.
    (d) All records of the Corporation which are requested by a member 
of the public in accordance with the procedures established in this part 
shall be duplicated for the requester, except to the extent that the 
Corporation determines that such records are exempt from disclosure 
under the Act.
    (e) The Corporation will not be required to create new records, 
compile lists of selected items from its files, or provide a requester 
with statistical or other data (unless such data has been compiled 
previously and is available in the form of a record.)
    (f) These records will be made available for public inspection and 
copying in the Corporation's reading room located at the Corporation for 
National and Community Service, 250 E Street SW., Washington, DC 20525, 
during the hours of 9:30 a.m. to 4:00 p.m., Monday through Friday, 
except on official holidays.
    (g) Corporation records will be made available to the public unless 
it is determined that such records should be withheld from disclosure 
under subsection 552(b) of the Act and or in accordance with this part.

[63 FR 26489, May 13, 1998, as amended at 81 FR 12600, Mar. 10, 2016]



Sec.  2507.4  How are requests for records made?

    (a) How made and addressed. (1) Requests for Corporation records 
under the Act must be made in writing, and can be mailed, hand-
delivered, or received by facsimile, to the FOIA Officer, Corporation 
for National and Community Service, 250 E Street SW., Washington, DC 
20525. (See Appendix A for an example of a FOIA request.) All such 
requests, and the envelopes in which they are sent, must be plainly 
marked ``FOIA Request''. Hand-delivered requests will be received 
between 9 a.m. and 4 p.m., Monday through Friday, except on official 
holidays. Although the Corporation maintains offices throughout the 
continental United States, all FOIA requests must be submitted to the 
Corporation's Headquarters office in Washington, DC.
    (2) Corporation records that are available in the Corporation's 
reading room will also be made available for public access through the 
Corporation's ``electronic reading room'' internet site. The following 
address is the Corporation's Internet Web site: http://
www.nationalservice.gov.
    (b) Request must adequately describe the records sought. A request 
must describe the records sought in sufficient detail to enable 
Corporation personnel to locate the records with reasonable effort, and 
without unreasonable burden to or disruption of Corporation operations. 
Among the kinds of identifying information which a requester may provide 
are the following:
    (1) The name of the specific program within the Corporation which 
may have produced or may have custody of the record (e.g., 
AmeriCorps*State/National Direct, AmeriCorps*NCCC (National Civilian 
Community Corps), AmeriCorps*VISTA (Volunteers In Service To America), 
Learn and Serve America, National Senior Service Corps (NSSC), Retired 
and Senior Volunteer Program (RSVP), Foster Grandparent Program (FGP), 
Senior Companion Program (SCP), and HUD Hope VI);
    (2) The specific event or action, if any, to which the record 
pertains;
    (3) The date of the record, or an approximate time period to which 
it refers or relates;
    (4) The type of record (e.g. contract, grant or report);
    (5) The name(s) of Corporation personnel who may have prepared or 
been referenced in the record; and
    (6) Citation to newspapers or other publications which refer to the 
record.
    (c) Agreement to pay fees. The filing of a request under this 
section shall be deemed to constitute an agreement by the requester to 
pay all applicable fees, up to $25.00, unless a waiver of fees is sought 
in the request letter. When filing a request, a requester may agree to 
pay a greater amount, if applicable. (See Sec.  2507.8 for further 
information on fees.)

[63 FR 26489, May 13, 1998, as amended at 81 FR 12600, Mar. 10, 2016]

[[Page 664]]



Sec.  2507.5  How does the Corporation process requests for records?

    (a) Initial processing. Upon receipt of a request for agency 
records, the FOIA Officer will make an initial determination as to 
whether the requester has reasonably described the records being sought 
with sufficient specificity to determine which Corporation office may 
have possession of the requested records. The office head or his or her 
designees shall determine whether the description of the record(s) 
requested is sufficient to permit a determination as to existence, 
identification, and location. It is the responsibility of the FOIA 
Officer to provide guidance and assistance to the Corporation staff 
regarding all FOIA policies and procedures. All requests for records 
under the control and jurisdiction of the Office of the Inspector 
General will be forwarded to the Inspector General, through the FOIA 
Officer, for the Corporation's initial determination and reply to the 
requester.
    (b) Insufficiently identified records. On making a determination 
that the description contained in the request does not reasonably 
describe the records being sought, the FOIA Officer shall promptly 
advise the requester in writing or by telephone if possible. The FOIA 
Officer shall provide the requester with appropriate assistance to help 
the requester provide any additional information which would better 
identify the record. The requester may submit an amended request 
providing the necessary additional identifying information. Receipt of 
an amended request shall start a new 20 day period in which the 
Corporation will respond to the request.
    (c) Furnishing records. The Corporation is required to furnish only 
copies of what it has or can retrieve. It is not compelled to create new 
records or do statistical computations. For example, the Corporation is 
not required to write a new program so that a computer will print 
information in a special format. However, if the requested information 
is maintained in computerized form, and it is possible, without 
inconvenience or unreasonable burden, to produce the information on 
paper, the Corporation will do this if this is the only feasible way to 
respond to a request. The Corporation is not required to perform any 
research for the requester. The Corporation reserves the right to make a 
decision to conserve government resources and at the same time supply 
the records requested by consolidating information from various records 
rather than duplicating all of them. For example, if it requires less 
time and expense to provide a computer record as a paper printout rather 
than in an electronic medium, the Corporation will provide the printout. 
The Corporation is only required to furnish one copy of a record.
    (d) Format of the disclosure of a record. The requester, not the 
Corporation, will be entitled to choose the form of disclosure when 
multiple forms of a record already exist. Any further request for a 
record to be disclosed in a new form or format will have to be 
considered by the Corporation, on a case-by-case basis, to determine 
whether the records are ``readily reproducible'' in that form or format 
with ``reasonable efforts'' on the part of the Corporation. The 
Corporation shall make reasonable efforts to maintain its records in 
forms or formats that are reproducible for purposes of replying to a 
FOIA request.
    (e) Release of record. Upon receipt of a request specifically 
identifying existing Corporation records, the Corporation shall, within 
20 days (excepting Saturdays, Sundays, and legal public holidays), 
either grant or deny the request in whole or in part, as provided in 
this section. Any notice of denial in whole or in part shall require the 
FOIA Officer to inform the requester of his/her right to appeal the 
denial, in accordance with the procedures set forth in Sec.  2507.7. If 
the FOIA Officer determines that a request describes a requested record 
sufficiently to permit its identification, he/she shall make it 
available unless he/she determines, as appropriate, to withhold the 
record as being exempt from mandatory disclosure under the Act.
    (f) Form and content of notice granting a request. The Corporation 
shall provide written notice of a determination to grant access within 
20 days (excepting Saturdays, Sundays, and legal public holidays) of 
receipt of the request. This will be done either by providing a copy

[[Page 665]]

of the record to the requester or by making the record available for 
inspection at a reasonable time and place. If the record cannot be 
provided at the time of the initial response, the Corporation shall make 
such records available promptly. Records disclosed in part shall be 
marked or annotated to show both the amount and the location of the 
information deleted wherever practicable.
    (g) Form and content of notice denying request. The Corporation 
shall notify the requester in writing of the denial of access within 20 
days (excepting Saturdays, Sundays, and legal public holidays) of 
receipt of the request. Such notice shall include:
    (1) The name and title or position of the person responsible for the 
denial;
    (2) A brief statement of the reason(s) for denial, including the 
specific exemption(s) under the Act on which the Corporation has relied 
in denying each document that was requested;
    (3) A statement that the denial may be appealed under Sec.  2507.7, 
and a description of the requirements of that Sec.  2507.7;
    (4) An estimate of the volume of records or information withheld, in 
number of pages or in some other reasonable form of estimation. This 
estimate does not need to be provided if the volume is otherwise 
indicated through deletions on records disclosed in part, or if 
providing an estimate would harm an interest protected by an applicable 
exemption.



Sec.  2507.6  Under what circumstances may the Corporation extend 
the time limits for an initial response?

    The time limits specified for the Corporation's initial response in 
Sec.  2507.5, and for its determination on an appeal in Sec.  2507.7, 
may be extended by the Corporation upon written notice to the requester 
which sets forth the reasons for such extension and the date upon which 
the Corporation will respond to the request. Such extension may be 
applied at either the initial response stage or the appeal stage, or 
both, provided the aggregate of such extensions shall not exceed ten 
working days. Circumstances justifying an extension under this section 
may include the following:
    (a) Time necessary to search for and collect requested records from 
field offices of the Corporation;
    (b) Time necessary to locate, collect and review voluminous records; 
or
    (c) Time necessary for consultation with another agency having an 
interest in the request; or among two or more offices of the Corporation 
which have an interest in the request; or with a submitter of business 
information having an interest in the request.



Sec.  2507.7  How does one appeal the Corporation's denial 
of access to records?

    (a) Right of appeal. A requester has the right to appeal a partial 
or full denial of an FOIA request. The appeal must be put in writing and 
sent to the reviewing official identified in the denial letter. The 
requester must send the appeal within 60 days of the letter denying the 
appeal.
    (b) Contents of appeal. The written appeal may include as much or as 
little information as the requester wishes for the basis of the appeal.
    (c) Review process. The Chief Operating Officer (COO) is the 
designated official to act on all FOIA appeals. The COO's determination 
of an appeal constitutes the Corporation's final action. If the appeal 
is granted, in whole or in part, the records will be made available for 
inspection or sent to the requester, promptly, unless a reasonable delay 
is justified. If the appeal is denied, in whole or in part, the COO will 
state the reasons for the decision in writing, providing notice of the 
right to judicial review. A decision will be made on the appeal within 
20 days (excepting Saturdays, Sundays, and legal public holidays), from 
the date the appeal was received by the COO.
    (d) When appeal is required. If a requester wishes to seek review by 
a court of an unfavorable determination, an appeal must first be 
submitted under this section.



Sec.  2507.8  How are fees determined?

    (a) Policy. It is the policy of the Corporation to provide the 
widest possible access to releasable Corporation records at the least 
possible cost. The purpose of the request is relevant to the fees 
charged.

[[Page 666]]

    (b) Types of request. Fees will be determined by category of 
requests as follows:
    (1) Commercial use requests. When a request for records is made for 
commercial use, charges will be assessed to cover the costs of searching 
for, reviewing for release, and reproducing the records sought.
    (2) Requests for educational and non-commercial scientific 
institutions. When a request for records is made by an educational or 
non-commercial scientific institution in furtherance of scholarly or 
scientific research, respectively, charges may be assessed to cover the 
cost of reproduction alone, excluding charges for reproduction of the 
first 100 pages. Whenever the total fee calculated is $18.00 or less, no 
fee shall be charged.
    (3) Requests from representatives of the news media. When a request 
for records is made by a representative of the news media for the 
purpose of news dissemination, charges may be assessed to cover the cost 
of reproduction alone, excluding the charges for reproduction of the 
first 100 pages. Whenever the total fee calculated is $18.00 or less, no 
fee shall be charged.
    (4) Other requests. When other requests for records are made which 
do not fit the three preceding categories, charges will be assessed to 
cover the costs of searching for and reproducing the records sought, 
excluding charges for the first two hours of search time and for 
reproduction of the first 100 pages. (However, requests from individuals 
for records about themselves contained in the Agency's systems of 
records will be treated under the fee provisions of the Privacy Act of 
1974 (5 U.S.C. 552a) which permit the assessment of fees for 
reproduction costs only, regardless of the requester's characterization 
of the request.) Whenever the total fee calculated is $18.00 or less, no 
fee shall be charged to the requester.
    (c) Direct costs. Fees assessed shall provide only for recovery of 
the Corporation's direct costs of search, review, and reproduction. 
Review costs shall include only the direct costs incurred during the 
initial examination of a record for the purposes of determining whether 
a record must be disclosed under this part and whether any portion of a 
record is exempt from disclosure under this part. Review costs shall not 
include any costs incurred in resolving legal or policy issues raised in 
the course of processing a request or an appeal under this part.
    (d) Charging of fees. The following charges may be assessed for 
copies of records provided to a requester:
    (1) Copies made by photostat shall be charged at the rate of $0.10 
per page.
    (2) Searches for requested records performed by clerical/
administrative personnel shall be charged at the rate of $4.00 per 
quarter hour.
    (3) Where a search for requested records cannot be performed by 
clerical administrative personnel (for example, where the tasks of 
identifying and compiling records responsive to a request must be 
performed by a skilled technician or professional), such search shall be 
charged at the rate of $7.00 per quarter hour.
    (4) Where the time of managerial personnel is required, the fee 
shall be $10.25 for each quarter hour of time spent by such managerial 
personnel.
    (5) Computer searches for requested records shall be charged at a 
rate commensurate with the combined cost of computer operation and 
operator's salary attributable to the search.
    (6) Charges for non-release. Charges may be assessed for search and 
review time, even if the Corporation fails to locate records responsive 
to a request or if records located are determined to be exempt from 
disclosure.
    (e) Consent to pay fees. In the event that a request for records 
does not state that the requester will pay all reasonable costs, or 
costs up to a specified dollar amount, and the FOIA Officer determines 
that the anticipated assessable costs for search, review and 
reproduction of requested records will exceed $25.00, or will exceed the 
limit specified in the request, the requester shall be promptly notified 
in writing. Such notification shall state the anticipated assessable 
costs of search, review and reproduction of records requested. The 
requester shall be afforded an opportunity to amend the request to 
narrow the scope of the request, or, alternatively, may agree to

[[Page 667]]

be responsible for paying the anticipated costs. Such a request shall be 
deemed to have been received by the Corporation upon the date of receipt 
of the amended request.
    (f) Advance payment. (1) Advance payment of assessable fees are not 
required from a requester unless:
    (i) The Corporation estimates or determines that assessable charges 
are likely to exceed $250.00, and the requester has no history of 
payment of FOIA fees. (Where the requester has a history of prompt 
payment of fees, the Corporation shall notify the requester of the 
likely cost and obtain written assurance of full payment.)
    (ii) A requester has previously failed to pay a FOIA fee charged in 
a timely fashion (i.e., within 30 days of the date of the billing).
    (2) When the Corporation acts under paragraphs (f)(1)(i) or (ii) of 
this section, the administrative time limits prescribed in Sec.  
2507.5(a) and (b) will begin to run only after the Corporation has 
received fee payments or assurances.
    (g) Interest on non-payment. Interest charges on an unpaid bill may 
be assessed starting on the 31st day following the day on which the 
billing was sent. Interest will be assessed at the rate prescribed in 31 
U.S.C. 3717 and will accrue from the date of the billing. The 
Corporation may use the authorization of the Debt Collection Act of 1982 
(Pub. L. 97-365, 96 Stat. 1749), as amended, and its administrative 
procedures, including disclosure to consumer reporting agencies and the 
use of collection agencies, to encourage payment of delinquent fees.
    (h) Aggregating requests. Where the Corporation reasonably believes 
that a requester or a group of requesters acting together is attempting 
to divide a request into a series of requests for the purpose of 
avoiding fees, the Corporation may aggregate those requests and charge 
accordingly. The Corporation may presume that multiple requests of this 
type made within a 30-day period have been made in order to avoid fees. 
Where requests are separated by a longer period, the Corporation will 
aggregate them only where there exists a solid basis for determining 
that aggregation is warranted under the circumstances involved. Multiple 
requests involving unrelated matters will not be aggregated.
    (i) Making payment. Payment of fees shall be forwarded to the FOIA 
Officer by check or money order payable to ``Corporation for National 
and Community Service''. A receipt for any fees paid will be provided 
upon written request.
    (j) Fee processing. No fee shall be charged if the administrative 
costs of collection and processing of such fees are equal to or do not 
exceed the amount of the fee.
    (k) Waiver or reduction of fees. A requester may, in the original 
request, or subsequently, apply for a waiver or reduction of document 
search, review and reproduction fees. Such application shall be in 
writing, and shall set forth in detail the reason(s) a fee waiver or 
reduction should be granted. The amount of any reduction requested shall 
be specified in the request. Upon receipt of such a request, the FOIA 
Officer will determine whether a fee waiver or reduction should be 
granted.
    (1) A waiver or reduction of fees shall be granted only if release 
of the requested information to the requester is in the public interest 
because it is likely to contribute significantly to public understanding 
of the operations or activities of the Corporation, and it is not 
primarily in the commercial interest of the requester. The Corporation 
shall consider the following factors in determining whether a waiver or 
reduction of fees will be granted:
    (i) Does the requested information concern the operations or 
activities of the Corporation?
    (ii) If so, will disclosure of the information be likely to 
contribute to public understanding of the Corporation's operations and 
activities?
    (iii) If so, would such a contribution be significant?
    (iv) Does the requester have a commercial interest that would be 
furthered by disclosure of the information?
    (v) If so, is the magnitude of the identified commercial interest of 
the requester sufficiently large, in comparison with the public interest 
in disclosure, that disclosure is primarily in the commercial interest 
of the requester?

[[Page 668]]

    (2) In applying the criteria in paragraph (k)(1) of this section, 
the Corporation will weigh the requester's commercial interest against 
any public interest in disclosure. Where there is a public interest in 
disclosure, and that interest can fairly be regarded as being of greater 
magnitude than the requester's commercial interest, a fee waiver or 
reduction may be granted.
    (3) When a fee waiver application has been included in a request for 
records, the request shall not be considered officially received until a 
determination is made regarding the fee waiver application. Such 
determination shall be made within five working days from the date any 
such request is received in writing by the Corporation.



Sec.  2507.9  What records will be denied disclosure under this part?

    Since the policy of the Corporation is to make the maximum amount of 
information available to the public consistent with its other 
responsibilities, written requests for a Corporation record made under 
the provisions of the FOIA may be denied when:
    (a) The record is subject to one or more of the exemptions of the 
FOIA.
    (b) The record has not been described clearly enough to enable the 
Corporation staff to locate it within a reasonable amount of effort by 
an employee familiar with the files.
    (c) The requestor has failed to comply with the procedural 
requirements, including the agreement to pay any required fee.
    (d) For other reasons as required by law, rule, regulation or 
policy.



Sec.  2507.10  What records are specifically exempt from disclosure?

    Any reasonably segregable portion of a record shall be provided to 
any person requesting such record after deletion of portions which are 
exempt under this section. The following categories are examples of 
records maintained by the Corporation which, under the provision of 5 
U.S.C. 552(b), are exempted from disclosure:
    (a) Records required to be withheld under criteria established by an 
Executive Order in the interest of national defense and policy and which 
are in fact properly classified pursuant to any such Executive Order. 
Included in this category are records required by Executive Order No. 
12958 (3 CFR, 1995 Comp., p. 333), as amended, to be classified in the 
interest of national defense or foreign policy.
    (b) Records related solely to internal personnel rules and 
practices. Included in this category are internal rules and regulations 
relating to personnel management operations which cannot be disclosed to 
the public without substantial prejudice to the effective performance of 
significant functions of the Corporation.
    (c) Records specifically exempted from disclosure by statute.
    (d) Information of a commercial or financial nature including trade 
secrets given in confidence. Included in this category are records 
containing commercial or financial information obtained from any person 
and customarily regarded as privileged and confidential by the person 
from whom they were obtained.
    (e) Interagency or intra-agency memoranda or letters which would not 
be available by law to a party other than a party in litigation with the 
Corporation. Included in this category are memoranda, letters, inter-
agency and intra-agency communications and internal drafts, opinions and 
interpretations prepared by staff or consultants and records meant to be 
used as part of deliberations by staff, or ordinarily used in arriving 
at policy determinations and decisions.
    (f) Personnel, medical and similar files. Included in this category 
are personnel and medical information files of staff, individual 
national service applicants and participants, lists of names and home 
addresses, and other files or material containing private or personal 
information, the public disclosure of which would amount to a clearly 
unwarranted invasion of the privacy of any person to whom the 
information pertains.
    (g) Investigatory files. Included in this category are files 
compiled for the enforcement of all laws, or prepared in connection with 
government litigation and adjudicative proceedings, provided however, 
that such records shall be made available to the extent that their 
production will not:

[[Page 669]]

    (1) Interfere with enforcement proceedings;
    (2) Deprive a person of a right to a fair trial or an impartial 
adjudication;
    (3) Constitute an unwarranted invasion of personal privacy;
    (4) 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 
security intelligence investigation, confidential information furnished 
by confidential source;
    (5) Disclose investigative techniques and procedures; or
    (6) Endanger the life or physical safety of law enforcement 
personnel.



Sec.  2507.11  What are the procedures for the release of commercial 
business information?

    (a) Notification of business submitter. The Corporation shall 
promptly notify a business submitter of any request for Corporation 
records containing business information. The notice shall either 
specifically describe the nature of the business information requested 
or provide copies of the records, or portions thereof containing the 
business information.
    (b) Business submitter reply. The Corporation shall afford a 
business submitter 10 working days to object to disclosure, and to 
provide the Corporation with a written statement specifying the grounds 
and arguments why the information should be withheld under Exemption 
(b)(4) of the Act.
    (c) Considering and balancing respective interests. (1) The 
Corporation shall carefully consider and balance the business 
submitter's objections and specific grounds for nondisclosure against 
such factors as:
    (i) The general custom or usage in the occupation or business to 
which the information relates that it be held confidential; and
    (ii) The number and situation of the individuals who have access to 
such information; and
    (iii) The type and degree of risk of financial injury to be expected 
if disclosure occurs; and
    (iv) The length of time such information should be regarded as 
retaining the characteristics noted in paragraphs (c)(1)(i) through 
(iii) of this section in determining whether to release the requested 
business information.
    (2)(i) Whenever the Corporation decides to disclose business 
information over the objection of a business submitter, the Corporation 
shall forward to the business submitter a written notice of such 
decision, which shall include:
    (A) The name, and title or position, of the person responsible for 
denying the submitter's objection;
    (B) A statement of the reasons why the business submitter's 
objection was not sustained;
    (C) A description of the business information to be disclosed; and
    (D) A specific disclosure date.
    (ii) The notice of intent to disclose business information shall be 
mailed by the Corporation not less than six working days prior to the 
date upon which disclosure will occur, with a copy of such notice to the 
requester.
    (d) When notice to business submitter is not required. The notice to 
business submitter shall not apply if:
    (1) The Corporation determines that the information shall not be 
disclosed;
    (2) The information has previously been published or otherwise 
lawfully been made available to the public; or
    (3) Disclosure of the information is required by law (other than 5 
U.S.C. 552).
    (e) Notice of suit for release. Whenever a requester brings suit to 
compel disclosure of business information, the Corporation shall 
promptly notify the business submitter.



Sec.  2507.12  Authority.

    The Corporation receives authority to change its governing 
regulations from the National and Community Service Act of 1990, as 
amended (42 U.S.C. 12501 et seq.).



Sec. Appendix A to Part 2507--Freedom of Information Act Request Letter 
                                (Sample)

Freedom of Information Act Officer______________________________________
Name of Agency__________________________________________________________
Address of Agency_______________________________________________________
City, State, Zip Code___________________________________________________

Re: Freedom of Information Act Request.


[[Page 670]]


    Dear____: This is a request under the Freedom of Information Act.
    I request that a copy of the following documents [or documents 
containing the following information] be provided to me: [identify the 
documents or information as specifically as possible].
[Sample requester descriptions]

    --A representative of the news media affiliated with the ____ 
newspaper (magazine, television station, etc.) and this request is made 
as part of news gathering and not for commercial use.
    --Affiliated with an educational or non-commercial scientific 
institution, and this request is not for commercial use.
    --An individual seeking information for personal use and not for 
commercial use.
    --Affiliated with a private corporation and am seeking information 
for use in the company's business.
    [Optional] I am willing to pay fees for this request up to a maximum 
of $____. If you estimate that the fees will exceed this limit, please 
inform me first.
    [Optional] I request a waiver of all fees for this request. 
Disclosure of the requested information to me is in the public interest 
because it is likely to contribute significantly to public understanding 
of the operations or activities of government and is not primarily in my 
commercial interest. [Include a specific explanation.]
    In order to help you determine my status to assess fees, you should 
know that I am (insert a suitable description of the requester and the 
purpose of the request).
    Thank you for your consideration of this request.

 Sincerely,

Name____________________________________________________________________
Address_________________________________________________________________
City, State, Zip Code___________________________________________________
Telephone Number [Optional]_____________________________________________



  Sec. Appendix B to Part 2507--Freedom of Information Act Appeal for 
                     Release of Information (Sample)

Appeal Officer__________________________________________________________
Name of Agency__________________________________________________________
Address of Agency_______________________________________________________
City, State, Zip Code___________________________________________________

Re: Freedom of Information Act Appeal.

    Dear____: This is an appeal under the Freedom of Information Act.
    On (date), I requested documents under the Freedom of Information 
Act. My request was assigned the following identification number ____. 
On (date), I received a response to my request in a letter signed by 
(name of official). I appeal the denial of my request.
    [Optional] The documents that were withheld must be disclosed under 
the FOIA because * * *.
    [Optional] Respond for waiver of fees. I appeal the decision to deny 
my request for a waiver of fees. I believe that I am entitled to a 
waiver of fees. Disclosure of the documents I requested is in the public 
interest because the information is likely to contribute significantly 
to public understanding of the operation or activities of government and 
is not primarily in my commercial interest. (Provide details)
    [Optional] I appeal the decision to require me to pay review costs 
for this request. I am not seeking the documents for a commercial use. 
(Provide details)
    (Optional] I appeal the decision to require me to pay search charges 
for this request. I am a reporter seeking information as part of news 
gathering and not for commercial use.
    Thank you for your consideration of this appeal.

 Sincerely,
Name____________________________________________________________________
Address_________________________________________________________________
City, State, Zip Code___________________________________________________
Telephone Number [Optional]_____________________________________________



PART 2508_IMPLEMENTATION OF THE PRIVACY ACT OF 1974--Table of Contents



Sec.
2508.1 Definitions.
2508.2 What is the purpose of this part?
2508.3 What is the Corporation's Privacy Act policy?
2508.4 When can Corporation records be disclosed?
2508.5 When does the Corporation publish its notice of its system of 
          records?
2508.6 When will the Corporation publish a notice for new routine uses 
          of information in its system of records?
2508.7 To whom does the Corporation provide reports to regarding changes 
          in its system of records?
2508.8 Who is responsible for establishing the Corporation's rules of 
          conduct for Privacy Act compliance?
2508.9 What officials are responsible for the security, management and 
          control of Corporation record keeping systems?
2508.10 Who has the responsibility for maintaining adequate technical, 
          physical, and security safeguards to prevent unauthorized 
          disclosure or destruction of manual and automatic record 
          systems?
2508.11 How shall offices maintaining a system of records be accountable 
          for those records to prevent unauthorized disclosure of 
          information?
2508.12 What are the contents of the systems of records that are to be 
          maintained by the Corporation?
2508.13 What are the procedures for acquiring access to Corporation 
          records by an individual about whom a record is maintained?

[[Page 671]]

2508.14 What are the identification requirements for individuals who 
          request access to records?
2508.15 What are the procedures for requesting inspection of, amendment 
          or correction to, or appeal of an individual's records 
          maintained by the Corporation other than that individual's 
          official personnel file?
2508.16 What are the procedures for filing an appeal for refusal to 
          amend or correct records?
2508.17 When shall fees be charged and at what rate?
2508.18 What are the penalties for obtaining a record under false 
          pretenses?
2508.19 What Privacy Act exemptions or control of systems of records are 
          exempt from disclosure?
2508.20 What are the restrictions regarding the release of mailing 
          lists?

    Authority: 5 U.S.C. 552a; 42 U.S.C. 12501 et seq.; 42 U.S.C. 4950 et 
seq.

    Source: 64 FR 19294, Apr. 20, 1999, unless otherwise noted.



Sec.  2508.1  Definitions.

    (a) Amend means to make a correction to, or expunge any portion of, 
a record about an individual which that individual believes is not 
accurate, relevant, timely, or complete.
    (b) Appeal Officer means the individual delegated the responsibility 
to act on all appeals filed under the Privacy Act.
    (c) Chief Executive Officer means the Head of the Corporation.
    (d) Corporation means the Corporation for National and Community 
Service.
    (e) Individual means any citizen of the United States or an alien 
lawfully admitted for permanent residence.
    (f) Maintain means to collect, use, store, disseminate or any 
combination of these recordkeeping functions; exercise of control over 
and therefore, responsibility and accountability for, systems of 
records.
    (g) Personnel record means any information about an individual that 
is maintained in a system of records by the Corporation that is needed 
for personnel management or processes such as staffing, employment 
development, retirement, grievances, and appeals.
    (h) Privacy Act Officer means the individual delegated the authority 
to allow access to, the release of, or the withholding of records 
pursuant to an official Privacy Act request. The Privacy Act Officer is 
further delegated the authority to make the initial determination on all 
requests to amend records.
    (i) Record means any document or other information about an 
individual maintained by the agency whether collected or grouped, and 
including, but not limited to, information regarding education, 
financial transactions, medical history, criminal or employment history, 
or any other personal information that contains the name or other 
personal identification number, symbol, etc. assigned to such 
individual.
    (j) 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.
    (k) System of records means a group of any records under the 
maintenance and control of the Corporation from which information is 
retrieved by use of the name of an individual or by some personal 
identifier of the individual.



Sec.  2508.2  What is the purpose of this part?

    The purpose of this part is to set forth the basic policies of the 
Corporation governing the maintenance of its system of records which 
contains personal information concerning its employees as defined in the 
Privacy Act (5 U.S.C. 552a). Records included in this part are those 
described in aforesaid act and maintained by the Corporation and/or any 
component thereof.



Sec.  2508.3  What is the Corporation's Privacy Act policy?

    It is the policy of the Corporation to protect, preserve, and defend 
the right of privacy of any individual about whom the Corporation 
maintains personal information in any system of records and to provide 
appropriate and complete access to such records including adequate 
opportunity to correct any errors in said records. Further, it is the 
policy of the Corporation to maintain its records in such a manner that 
the information contained therein is, and remains material and relevant 
to the purposes for which it is received in order to maintain its 
records with fairness to the individuals who are the subjects of such 
records.

[[Page 672]]



Sec.  2508.4  When can Corporation records be disclosed?

    (a)(1) The Corporation will not disclose any record that is 
contained in its system of records by any means of communication to any 
person, or to another agency, except pursuant to a written request by, 
or with the prior written consent of the individual to whom the record 
pertains, unless disclosure of the record would be:
    (i) To employees of the Corporation who maintain the record and who 
have a need for the record in the performance of their official duties;
    (ii) When required under the provisions of the Freedom of 
Information Act (5 U.S.C. 552);
    (iii) For routine uses as appropriately published in the annual 
notice of the Federal Register;
    (iv) To the Bureau of the Census for purposes of planning or 
carrying out a census or survey or related activity pursuant to the 
provisions of title 13;
    (v) To a recipient who has provided the Corporation with advance 
adequate written 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;
    (vi) To the National Archives and Records Administration 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 by the Archivist of the United States or the designee 
of the Archivist to determine whether the record has such value;
    (vii) To another agency or to an instrumentality of any governmental 
jurisdiction within or under the control of the United States for civil 
or criminal law enforcement activity if the activity is authorized by 
law, and if the head of the agency or instrumentality has made a written 
request to the Corporation for such records specifying the particular 
portion desired and the law enforcement activity for which the record is 
sought. Such a record may also be disclosed by the Corporation to the 
law enforcement agency on its own initiative in situations in which 
criminal conduct is suspected provided that such disclosure has been 
established as a routine use or in situations in which the misconduct is 
directly related to the purpose for which the record is maintained;
    (viii) To a person pursuant to a showing of compelling circumstances 
affecting the health or safety of any individual if, upon such 
disclosure, notification is transmitted to the last known address of 
such individual;
    (ix) 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;
    (x) To the Comptroller General or any of his or her authorized 
representatives, in the course of the performance of official duties in 
the General Accounting Office;
    (xi) Pursuant to an order of a court of competent jurisdiction 
served upon the Corporation pursuant to 45 CFR 1201.3, and provided that 
if any such record is disclosed under such compulsory legal process and 
subsequently made public by the court which issued it, the Corporation 
must make a reasonable effort to notify the individual to whom the 
record pertains of such disclosure;
    (xii) To a contractor, expert, or consultant of the Corporation (or 
an office within the Corporation) when the purpose of the release to 
perform a survey, audit, or other review of the Corporation's procedures 
and operations; and
    (xiii) To a consumer reporting agency in accordance with section 
3711(f) of title 31.



Sec.  2508.5  When does the Corporation publish its notice 
of its system of records?

    The Corporation shall publish annually a notice of its system of 
records maintained by it as defined herein in the format prescribed by 
the General Services Administration in the Federal Register; provided, 
however, that such publication shall not be made for those systems of 
records maintained by other agencies while in the temporary custody of 
the Corporation.

[[Page 673]]



Sec.  2508.6  When will the Corporation publish a notice for new routine 
uses of information in its system of records?

    At least 30 days prior to publication of information under the 
preceding section, the Corporation shall publish in the Federal Register 
a notice of its intention to establish any new routine use of any system 
of records maintained by it with an opportunity for public comments on 
such use. Such notice shall contain the following:
    (a) The name of the system of records for which the routine use is 
to be established.
    (b) The authority for the system.
    (c) The purpose for which the record is to be maintained.
    (d) The proposed routine use(s).
    (e) The purpose of the routine use(s).
    (f) The categories of recipients of such use. In the event of any 
request for an addition to the routine uses of the systems which the 
Corporation maintains, such request may be sent to the following office: 
Office of the General Counsel, Corporation for National and Community 
Service, 250 E Street SW., Washington, DC 20525.

[64 FR 19294, Apr. 20, 1999, as amended at 81 FR 12600, Mar. 10, 2016]



Sec.  2508.7  To whom does the Corporation provide reports regarding 
changes in its system of records?

    The Corporation shall provide to the Committee on Government 
Operations of the House of Representatives, the Committee on 
Governmental Affairs of the Senate, and the Office of Management and 
Budget, advance notice of any proposal to establish or alter any system 
of records as defined herein. This report will be submitted in 
accordance with guidelines provided by the Office of Management and 
Budget.



Sec.  2508.8  Who is responsible for establishing the Corporation's 
rules of conduct for Privacy Act compliance?

    (a) The Chief Executive Officer shall ensure that all persons 
involved in the design, development, operation or maintenance of any 
system of records as defined herein are informed of all requirements 
necessary to protect the privacy of individuals who are the subject of 
such records. All employees shall be informed of all implications of the 
Act in this area including the civil remedies provided under 5 U.S.C. 
552a(g)(1) and the fact that the Corporation may be subject to civil 
remedies for failure to comply with the provisions of the Privacy Act 
and this regulation.
    (b) The Chief Executive Officer shall also ensure that all personnel 
having access to records receive adequate training in the protection of 
the security of personal records, and that adequate and proper storage 
is provided for all such records with sufficient security to assure the 
privacy of such records.



Sec.  2508.9  What officials are responsible for the security, management 
and control of Corporation record keeping systems?

    (a) The Director of Administration and Management Services shall 
have overall control and supervision of the security of all systems of 
records and shall be responsible for monitoring the security standards 
set forth in this regulation.
    (b) A designated official (System Manager) shall be named who shall 
have management responsibility for each record system maintained by the 
Corporation and who shall be responsible for providing protection and 
accountability for such records at all times and for insuring that such 
records are secured in appropriate containers whenever not in use or in 
the direct control of authorized personnel.



Sec.  2508.10  Who has the responsibility for maintaining adequate technical, 
physical, and security safeguards to prevent unauthorized disclosure 
or destruction of manual and automatic record systems?

    The Chief Executive Officer has the responsibility of maintaining 
adequate technical, physical, and security safeguards to prevent 
unauthorized disclosure or destruction of manual and automatic record 
systems. These security safeguards shall apply to all systems in which 
identifiable personal data are processed or maintained, including all 
reports and outputs from such systems that contain identifiable personal 
information. Such safeguards

[[Page 674]]

must be sufficient to prevent negligent, accidental, or unintentional 
disclosure, modification or destruction of any personal records or data, 
and must furthermore minimize, to the extent practicable, the risk that 
skilled technicians or knowledgeable persons could improperly obtain 
access to modify or destroy such records or data and shall further 
insure against such casual entry by unskilled persons without official 
reasons for access to such records or data.
    (a) Manual systems. (1) Records contained in a system of records as 
defined herein may be used, held or stored only where facilities are 
adequate to prevent unauthorized access by persons within or outside the 
Corporation.
    (2) All records, when not under the personal control of the 
employees authorized to use the records, must be stored in a locked 
metal filing cabinet. Some systems of records are not of such 
confidential nature that their disclosure would constitute a harm to an 
individual who is the subject of such record. However, records in this 
category shall also be maintained in locked metal filing cabinets or 
maintained in a secured room with a locking door.
    (3) Access to and use of a system of records shall be permitted only 
to persons whose duties require such access within the Corporation, for 
routine uses as defined in Sec.  2508.4 as to any given system, or for 
such other uses as may be provided herein.
    (4) Other than for access within the Corporation to persons needing 
such records in the performance of their official duties or routine uses 
as defined in Sec.  2508.4, or such other uses as provided herein, 
access to records within a system of records shall be permitted only to 
the individual to whom the record pertains or upon his or her written 
request to the Director, Administration and Management Services.
    (5) Access to areas where a system of records is stored will be 
limited to those persons whose duties require work in such areas. There 
shall be an accounting of the removal of any records from such storage 
areas utilizing a written log, as directed by the Director, 
Administration and Management Services. The written log shall be 
maintained at all times.
    (6) The Corporation shall ensure that all persons whose duties 
require access to and use of records contained in a system of records 
are adequately trained to protect the security and privacy of such 
records.
    (7) The disposal and destruction of records within a system of 
records shall be in accordance with rules promulgated by the General 
Services Administration.
    (b) Automated systems. (1) Identifiable personal information may be 
processed, stored or maintained by automated data systems only where 
facilities or conditions are adequate to prevent unauthorized access to 
such systems in any form. Whenever such data, whether contained in punch 
cards, magnetic tapes or discs, are not under the personal control of an 
authorized person, such information must be stored in a locked or 
secured room, or in such other facility having greater safeguards than 
those provided for herein.
    (2) Access to and use of identifiable personal data associated with 
automated data systems shall be limited to those persons whose duties 
require such access. Proper control of personal data in any form 
associated with automated data systems shall be maintained at all times, 
including maintenance of accountability records showing disposition of 
input and output documents.
    (3) All persons whose duties require access to processing and 
maintenance of identifiable personal data and automated systems shall be 
adequately trained in the security and privacy of personal data.
    (4) The disposal and disposition of identifiable personal data and 
automated systems shall be done by shredding, burning or in the case of 
tapes or discs, degaussing, in accordance with any regulations now or 
hereafter proposed by the General Services Administration or other 
appropriate authority.



Sec.  2508.11  How shall offices maintaining a system of records 
be accountable for those records to prevent unauthorized disclosure 
of information?

    (a) Each office maintaining a system of records shall account for 
all records

[[Page 675]]

within such system by maintaining a written log in the form prescribed 
by the Director, Administration and Management Services, containing the 
following information:
    (1) The date, nature, and purpose of each disclosure of a record to 
any person or to another agency. Disclosures made to employees of the 
Corporation in the normal course of their duties, or pursuant to the 
provisions of the Freedom of Information Act, need not be accounted for.
    (2) Such accounting shall contain the name and address of the person 
or agency to whom the disclosure was made.
    (3) The accounting shall be maintained in accordance with a system 
of records approved by the Director, Administration and Management 
Services, as sufficient for the purpose but in any event sufficient to 
permit the construction of a listing of all disclosures at appropriate 
periodic intervals.
    (4) The accounting shall reference any justification or basis upon 
which any release was made including any written documentation required 
when records are released for statistical or law enforcement purposes 
under the provisions of subsection (b) of the Privacy Act of 1974 (5 
U.S.C. 552a).
    (5) For the purpose of this part, the system of accounting for 
disclosures is not a system of records under the definitions hereof, and 
need not be maintained within a system of records.
    (6) Any subject individual may request access to an accounting of 
disclosures of a record. The subject individual shall make a request for 
access to an accounting in accordance with Sec.  2508.13. An individual 
will be granted access to an accounting of the disclosures of a record 
in accordance with the procedures of this subpart which govern access to 
the related record. Access to an accounting of a disclosure of a record 
made under Sec.  2508.13 may be granted at the discretion of the 
Director, Administration and Management Services.



Sec.  2508.12  What are the contents of the systems of record that are to be 
maintained by the Corporation?

    (a) The Corporation shall maintain all records that are used in 
making determinations about any individual with such accuracy, 
relevance, timeliness, and completeness as is reasonably necessary to 
assure fairness to the individual in the determination;
    (b) In situations in which the information may result in adverse 
determinations about such individual's rights, benefits and privileges 
under any Federal program, all information placed in a system of records 
shall, to the greatest extent practicable, be collected from the 
individual to whom the record pertains.
    (c) Each form or other document that an individual is expected to 
complete in order to provide information for any system of records shall 
have appended thereto, or in the body of the document:
    (1) An indication of the authority authorizing the solicitation of 
the information and whether the provision of the information is 
mandatory or voluntary.
    (2) The purpose or purposes for which the information is intended to 
be used.
    (3) Routine uses which may be made of the information and published 
pursuant to Sec.  2508.6.
    (4) The effect on the individual, if any, of not providing all or 
part of the required or requested information.
    (d) Records maintained in any system of records used by the 
Corporation to make any determination about any individual shall be 
maintained with such accuracy, relevancy, timeliness, and completeness 
as is reasonably necessary to assure fairness to the individual in the 
making of any determination about such individual, provided, however, 
that the Corporation shall not be required to update or keep current 
retired records.
    (e) Before disseminating any record about any individual to any 
person other than an employee in the Corporation, unless the 
dissemination is made pursuant to the provisions of the Freedom of 
Information Act (5 U.S.C. 552), the Corporation shall make reasonable 
efforts to ensure that such records are, or were at the time they were 
collected, accurate, complete, timely and relevant for Corporation 
purposes.
    (f) Under no circumstances shall the Corporation maintain any record 
about

[[Page 676]]

any individual with respect to or describing how such individual 
exercises rights guaranteed by the First Amendment of the Constitution 
of the United States, unless expressly authorized by statute or by the 
individual about whom the record is maintained, or unless pertinent to 
and within the scope of an authorized law enforcement activity.
    (g) In the event any record is disclosed as a result of the order of 
a court of appropriate jurisdiction, the Corporation shall make 
reasonable efforts to notify the individual whose record was so 
disclosed after the process becomes a matter of public record.



Sec.  2508.13  What are the procedures for acquiring access to 
Corporation records by an individual about whom a record is maintained?

    (a) Any request for access to records from any individual about whom 
a record is maintained will be addressed to the Corporation for National 
and Community Service, Office of the General Counsel, Attn: Privacy Act 
Officer, 250 E Street SW., Washington, DC 20525, or delivered in person 
during regular business hours, whereupon access to his or her record, or 
to any information contained therein, if determined to be releasable, 
shall be provided.
    (b) If the request is made in person, such individual may, upon his 
or her request, be accompanied by a person of his or her choosing to 
review the record and shall be provided an opportunity to have a copy 
made of any record about such individual.
    (c) A record may be disclosed to a representative chosen by the 
individual as to whom a record is maintained upon the proper written 
consent of such individual.
    (d) A request made in person will be promptly complied with if the 
records sought are in the immediate custody of the Corporation. Mailed 
requests or personal requests for documents in storage or otherwise not 
immediately available, will be acknowledged within 10 working days, and 
the information requested will be promptly provided thereafter.
    (e) With regard to any request for disclosure of a record, the 
following procedures shall apply:
    (1) Medical or psychological records shall be disclosed to an 
individual unless, in the judgment of the Corporation, access to such 
records might have an adverse effect upon such individual. When such 
determination has been made, the Corporation may require that the 
information be disclosed only to a physician chosen by the requesting 
individual. Such physician shall have full authority to disclose all or 
any portion of such record to the requesting individual in the exercise 
of his or her professional judgment.
    (2) Test material and copies of certificates or other lists of 
eligibles or any other listing, the disclosure of which would violate 
the privacy of any other individual, or be otherwise exempted by the 
provisions of the Privacy Act, shall be removed from the record before 
disclosure to any individual to whom the record pertains.

[64 FR 19294, Apr. 20, 1999, as amended at 81 FR 12600, Mar. 10, 2016]



Sec.  2508.14  What are the identification requirements for individuals 
who request access to records?

    The Corporation shall require reasonable identification of all 
individuals who request access to records to ensure that records are 
disclosed to the proper person.
    (a) In the event an individual requests disclosure in person, such 
individual shall be required to show an identification card such as a 
drivers license, etc., containing a photo and a sample signature of such 
individual. Such individual may also be required to sign a statement 
under oath as to his or her identity, acknowledging that he or she is 
aware of the penalties for improper disclosure under the provisions of 
the Privacy Act.
    (b) In the event that disclosure is requested by mail, the 
Corporation may request such information as may be necessary to 
reasonably ensure that the individual making such request is properly 
identified. In certain cases, the Corporation may require that a mail 
request be notarized with an indication that the notary received an 
acknowledgment of identity from the individual making such request.
    (c) In the event an individual is unable to provide suitable 
documentation

[[Page 677]]

or identification, the Corporation may require a signed notarized 
statement asserting the identity of the individual and stipulating that 
the individual understands that knowingly or willfully seeking or 
obtaining access to records about another person under false pretenses 
is punishable by a fine of up to $5,000.
    (d) In the event a requestor wishes to be accompanied by another 
person while reviewing his or her records, the Corporation may require a 
written statement authorizing discussion of his or her records in the 
presence of the accompanying representative or other persons.



Sec.  2508.15  What are the procedures for requesting inspection of, 
amendment or correction to, or appeal of an individual's records maintained 
by the Corporation other than that individual's official personnel file?

    (a) A request for inspection of any record shall be made to the 
Director, Administration and Management Services. Such request may be 
made by mail or in person provided, however, that requests made in 
person may be required to be made upon a form provided by the Director 
of Administration and Management Services who shall keep a current list 
of all systems of records maintained by the Corporation and published in 
accordance with the provisions of this regulation. However, the request 
need not be in writing if the individual makes his or her request in 
person. The requesting individual may request that the Corporation 
compile all records pertaining to such individual at any named Service 
Center/State Office, AmeriCorps*NCCC Campus, or at Corporation 
Headquarters in Washington, DC, for the individual's inspection and/or 
copying. In the event an individual makes such request for a compilation 
of all records pertaining to him or her in various locations, 
appropriate time for such compilation shall be provided as may be 
necessary to promptly comply with such requests.
    (b) Any such requests should contain, at a minimum, identifying 
information needed to locate any given record and a brief description of 
the item or items of information required in the event the individual 
wishes to see less than all records maintained about him or her.
    (1) In the event an individual, after examination of his or her 
record, desires to request an amendment or correction of such records, 
the request must be submitted in writing and addressed to the 
Corporation for National and Community Service, Office of the General 
Counsel, Attn: Privacy Act Officer, 250 E Street SW., Washington, DC 
20525. In his or her written request, the individual shall specify:
    (i) The system of records from which the record is retrieved;
    (ii) The particular record that he or she is seeking to amend or 
correct;
    (iii) Whether he or she is seeking an addition to or a deletion or 
substitution of the record; and,
    (iv) His or her reasons for requesting amendment or correction of 
the record.
    (2) A request for amendment or correction of a record will be 
acknowledged within 10 working days of its receipt unless the request 
can be processed and the individual informed of the Privacy Act 
Officer's decision on the request within that 10 day period.
    (3) If the Privacy Act Officer agrees that the record is not 
accurate, timely, or complete, based on a preponderance of the evidence, 
the record will be corrected or amended. The record will be deleted 
without regard to its accuracy, if the record is not relevant or 
necessary to accomplish the Corporation's function for which the record 
was provided or is maintained. In either case, the individual will be 
informed in writing of the amendment, correction, or deletion and, if 
accounting was made of prior disclosures of the record, all previous 
recipients of the record will be informed of the corrective action 
taken.
    (4) If the Privacy Act Officer does not agree that the record should 
be amended or corrected, the individual will be informed in writing of 
the refusal to amend or correct the record. He or she will also be 
informed that he or she may appeal the refusal to amend or correct his 
or her record in accordance with Sec.  2508.17.
    (5) Requests to amend or correct a record governed by the regulation 
of another government agency will be forwarded to such government agency 
for

[[Page 678]]

processing and the individual will be informed in writing of the 
referral.
    (c) In the event an individual disagrees with the Privacy Act 
Officer's initial determination, he or she may appeal such determination 
to the Appeal Officer in accordance with Sec.  2508.17. Such request for 
review must be made within 30 days after receipt by the requestor of the 
initial refusal to amend.

[64 FR 19294, Apr. 20, 1999, as amended at 81 FR 12601, Mar. 10, 2016]



Sec.  2508.16  What are the procedures for filing an appeal for refusal 
to amend or correct records?

    (a) In the event an individual desires to appeal any refusal to 
correct or amend records, he or she may do so by addressing, in writing, 
such appeal to the Corporation for National and Community Service, 
Office of the Chief Operating Officer, Attn: Appeal Officer, 250 E 
Street SW., Washington, DC 20525. Although there is no time limit for 
such appeals, the Corporation shall be under no obligation to maintain 
copies of original requests or responses thereto beyond 180 days from 
the date of the original request.
    (b) An appeal will be completed within 30 working days from its 
receipt by the Appeal Officer; except that, the appeal authority may, 
for good cause, extend this period for an additional 30 days. Should the 
appeal period be extended, the individual appealing the original refusal 
will be informed in writing of the extension and the circumstances of 
the delay. The individual's request for access to or to amend or correct 
the record, the Privacy Act Officer's refusal to amend or correct the 
record, and any other pertinent material relating to the appeal will be 
reviewed. No hearing will be held.
    (c) If the Appeal Officer determines that the record that is the 
subject of the appeal should be amended or corrected, the record will be 
amended or corrected and the individual will be informed in writing of 
the amendment or correction. Where an accounting was made of prior 
disclosures of the record, all previous recipients of the record will be 
informed of the corrective action taken.
    (d) If the appeal is denied, the subject individual will be informed 
in writing:
    (1) Of the denial and reasons for the denial;
    (2) That he or she has a right to seek judicial review of the 
denial; and
    (3) That he or she may submit to the Appeal Officer a concise 
statement of disagreement to be associated with the disputed record and 
disclosed whenever the record is disclosed.
    (e) Whenever an individual submits a statement of disagreement to 
the Appeal Officer in accordance with paragraph (d)(3) of this section, 
the record will be annotated to indicate that it is disputed. In any 
subsequent disclosure, a copy of the subject individual's statement of 
disagreement will be disclosed with the record. If the appeal authority 
deems it appropriate, a concise statement of the Appeal Officer's 
reasons for denying the individual's appeal may also be disclosed with 
the record. While the individual will have access to this statement of 
reasons, such statement will not be subject to correction or amendment. 
Where an accounting was made of prior disclosures of the record, all 
previous recipients of the record will be provided a copy of the 
individual's statement of disagreement, as well as the statement, if 
any, of the Appeal Officer's reasons for denying the individual's 
appeal.

[64 FR 19294, Apr. 20, 1999, as amended at 81 FR 12601, Mar. 10, 2016]



Sec.  2508.17  When shall fees be charged and at what rate?

    (a) No fees shall be charged for search time or for any other time 
expended by the Corporation to review or produce a record except where 
an individual requests that a copy be made of the record to which he or 
she is granted access. Where a copy of the record must be made in order 
to provide access to the record (e.g., computer printout where no screen 
reading is available), the copy will be made available to the individual 
without cost.
    (b) The applicable fee schedule is as follows:
    (1) Each copy of each page, up to 8\1/2\ x 14, 
made by photocopy or similar process is $0.10 per page.
    (2) Each copy of each microform frame printed on paper is $0.25.

[[Page 679]]

    (3) Each aperture card is $0.25.
    (4) Each 105-mm fiche is $0.25.
    (5) Each 100[foot] foot role of 35-mm microfilm is $7.00.
    (6) Each 100[foot] foot role of 16-mm microfilm is $6.00.
    (7) Each page of computer printout without regard to the number of 
carbon copies concurrently printed is $0.20.
    (8) Copying records not susceptible to photocopying (e.g., punch 
cards or magnetic tapes), at actual cost to be determined on a case-by-
case basis.
    (9) Other copying forms (e.g., typing or printing) will be charged 
at direct costs, including personnel and equipment costs.
    (c) All copying fees shall be paid by the individual before the 
copying will be undertaken. Payments shall be made by check or money 
order payable to the ``Corporation for National and Community Service,'' 
and provided to the Privacy Act Officer processing the request.
    (d) A copying fee shall not be charged or collected, or 
alternatively, it may be reduced, when it is determined by the Privacy 
Act Officer, based on a petition, that the petitioning individual is 
indigent and that the Corporation's resources permit a waiver of all or 
part of the fee. An individual is deemed to be indigent when he or she 
is without income or lacks the resources sufficient to pay the fees.
    (e) Special and additional services provided at the request of the 
individual, such as certification or authentication, postal insurance 
and special mailing arrangement costs, will be charged to the 
individual.
    (f) A copying fee totaling $5.00 or less shall be waived, but the 
copying fees for contemporaneous requests by the same individual shall 
be aggregated to determine the total fee.



Sec.  2508.18  What are the penalties for obtaining a record 
under false pretenses?

    The Privacy Act provides, in pertinent part that:
    (a) Any person who knowingly and willfully requests to obtain any 
record concerning an individual from the Corporation under false 
pretenses shall be guilty of a misdemeanor and fined not more than 
$5,000 (5 U.S.C. 552a(I)(3)).
    (b) A person who falsely or fraudulently attempts to obtain records 
under the Privacy Act also may be subject to prosecution under such 
other criminal statutes as 18 U.S.C. 494, 495 and 1001.



Sec.  2508.19  What Privacy Act exemptions or control of systems of records 
are exempt from disclosure?

    (a) Certain systems of records that are maintained by the 
Corporation are exempted from provisions of the Privacy Act in 
accordance with exemptions (j) and (k) of 5 U.S.C. 552a.
    (1) Exemption of Inspector General system of records. Pursuant to, 
and limited by 5 U.S.C. 552a(j)(2), the system of records maintained by 
the Office of the Inspector General that contains the Investigative 
Files shall be exempted from the provisions of 5 U.S.C. 552a, except 
subsections (b), (c)(1) and (2), (e)(4)(A) through (F), (e)(6)(7), (9), 
(10), and (11), and (I), and 45 CFR 2508.11, 2508.12, 2508.13, 2508.14, 
2508.15, 2508.16, and 2508.17, insofar as the system contains 
information pertaining to criminal law enforcement investigations.
    (2) Pursuant to, and limited by 5 U.S.C. 552a(k)(2), the system of 
records maintained by the Office of the Inspector General that contains 
the Investigative Files shall be exempted from 5 U.S.C. 552a(c)(3), (d), 
(e)(1), (e)(4) (G), (H), and (I), and (f), and 45 CFR 2508.11, 2508.12, 
2508.13, 2508.14, 2508.15, 2508.16, and 2508.17, insofar as the system 
contains investigatory materials compiled for law enforcement purposes.
    (b) Exemptions to the General Counsel system of records. Pursuant 
to, and limited by 5 U.S.C. 552a(d)(5), the system of records maintained 
by the Office of the General Counsel that contains the Legal Office 
Litigation/Correspondence Files shall be exempted from the provisions of 
5 U.S.C. 552a(d)(5), and 45 CFR 2508.4, insofar as the system contains 
information compiled in reasonable anticipation of a civil action or 
proceeding.

[[Page 680]]



Sec.  2508.20  What are the restrictions regarding the release 
of mailing lists?

    An individual's name and address may not be sold or rented by the 
Corporation unless such action is specifically authorized by law. This 
section does not require the withholding of names and addresses 
otherwise permitted to be made public.



PART 2509_ADMINISTRATIVE PRACTICE AND PROCEDURES--Table of Contents



                      Subpart A_Guidance Documents

Sec.
2509.10 What does this subpart cover?
2509.12 What should I do if a guidance document is covered by this 
          subpart?
2509.14 What is the purpose of the review and clearance procedure?
2509.16 How will CNCS make guidance documents available to the public?
2509.18 What procedures apply to guidance documents identified as 
          ``significant''?
2509.20 What is a ``significant'' guidance document?
2509.22 When will guidance be published for public notice-and-comment?
2509.24 How may the public submit a petition to CNCS for the withdrawal 
          or modification of a guidance document?
2509.26 What is the effect of rescinded guidance documents?
2509.28 How will significant guidance be issued when there are exigent 
          circumstances?
2509.30 No judicial review or enforceable rights.

Subpart B [Reserved]

    Authority: 42 U.S.C. 12651c(c); E.O. 13891, 84 FR 55235.

    Source: 85 FR 44475, July 23, 2020, unless otherwise noted.



                      Subpart A_Guidance Documents



Sec.  2509.10  What does this subpart cover?

    (a) This subpart sets forth the Corporation for National and 
Community Service's (CNCS's) procedures for issuing guidance documents. 
It applies to all CNCS employees and contractors involved in issuing 
CNCS guidance documents on or after April 28, 2020.
    (b) For the purposes of this subpart, ``guidance document'' means 
any statement of general applicability, intended to have future effect 
on the behavior of regulated parties, that sets forth a policy on a 
statute, regulatory, or technical issue, or an interpretation of a 
statute or regulation, but does not include:
    (1) Legislative rules promulgated under 5 U.S.C. 553 (or similar 
statutory provisions), or exempt from rulemaking requirements under 5 
U.S.C. 553(a);
    (2) Rules of agency organization, procedure, or practice;
    (3) Decisions of agency adjudications under 5 U.S.C. 554 or similar 
statutory provisions;
    (4) Internal executive branch legal advice or legal advisory 
opinions addressed to executive branch officials;
    (5) Agency statements of specific applicability, including advisory 
or legal opinions directed to particular parties about circumstance-
specific questions, notices regarding particular locations or 
facilities, and correspondence with individual persons or entities, 
except documents directed to a particular party and designed to guide 
the conduct of the broader regulated public;
    (6) Legal briefs, other court filings, or positions taken in 
litigation or enforcement actions;
    (7) Agency statements that do not set forth for the first time a new 
regulatory policy on a statutory, regulatory, or technical issue or an 
interpretation of a statute or regulation, including speeches and 
individual presentations, editorials, media interviews, press materials, 
or congressional testimony;
    (8) Grant solicitations and awards;
    (9) Contract solicitations and awards; or
    (10) Purely internal agency policies or guidance directed solely to 
CNCS employees or contractors or to other Federal agencies that are not 
intended to have substantial future effect on the behavior of regulated 
parties.



Sec.  2509.12  What should I do if a guidance document is covered 
by this subpart?

    (a) All CNCS guidance documents require review and clearance in 
accordance with this subpart.
    (b) Guidance proposed by CNCS must be reviewed by the Office of 
General

[[Page 681]]

Counsel (OGC) and cleared by the General Counsel or his/her designee.
    (c) Additional reviews by other CNCS officials are also conducted as 
described in CNCS Policy 100--Preparing Policies and Procedures and 
Policy 103--Clearing Controlled Correspondence and Other Documents with 
the Board, Chief Executive Officer, and Chief of Staff, or subsequent 
updates or revisions to those policies.



Sec.  2509.14  What is the purpose of the review and clearance procedure?

    CNCS's guidance issuance process shall ensure that each proposed 
guidance document satisfies the following requirements:
    (a) The guidance document complies with all relevant statutes and 
regulations (including any statutory deadlines for Agency action);
    (b) The guidance document identifies or includes:
    (1) The term ``guidance'' or its functional equivalent;
    (2) The issuing CNCS responsible office name;
    (3) A unique identifier, including, at a minimum, the date of 
issuance and title of the document and its regulatory identification 
number (RIN), if applicable;
    (4) The activity or entities to which the guidance applies;
    (5) Citations to applicable statutes and regulations;
    (6) A statement noting whether the guidance is intended to revise or 
replace any previously issued guidance and, if so, sufficient 
information to identify the previously issued guidance; and
    (7) A short summary of the subject matter covered in the guidance 
document at the top of the document;
    (c) The guidance document avoids using mandatory language, such as 
``shall,'' ``must,'' ``required,'' or ``requirement,'' unless the 
language is describing an established statutory or regulatory 
requirement or is addressed to CNCS employees and will not foreclose 
CNCS's consideration of positions advanced by affected private parties;
    (d) The guidance document is written in plain and understandable 
English; and
    (e) All guidance documents should include the following disclaimer 
prominently in each guidance document: ``The contents of this document 
do not have the force and effect of law and are not meant to bind the 
public in any way. This document is intended only to provide clarity to 
the public regarding existing requirements under the law or agency 
policies.'' When CNCS's guidance document is binding because binding 
guidance is authorized by law or because the guidance is incorporated 
into a contract, CNCS will modify the disclaimer above to reflect either 
of those facts.



Sec.  2509.16  How will CNCS make guidance documents available to the public?

    CNCS shall:
    (a) Ensure all effective guidance documents, identified by a unique 
identifier which includes, at a minimum, the document's title and date 
of issuance or revision and its RIN, if applicable, are on its website 
in a single, searchable, indexed database, and available to the public 
in accordance with Sec.  2905.16;
    (b) Note on its website that guidance documents lack the force and 
effect of law, except as authorized by law or as incorporated into a 
contract; and
    (c) Publish on its website where the public can comment 
electronically on any guidance documents that are subject to the notice-
and-comment procedures described in Sec.  2509.22 and to submit requests 
electronically for issuance, reconsideration, modification, or 
rescission of guidance documents.
    (d) Guidance documents that do not appear on the Agency's single, 
searchable, indexed database are rescinded.



Sec.  2509.18  What procedures apply to guidance documents 
identified as ``significant''?

    (a) OGC review of proposed guidance documents will include a 
preliminary determination as to whether the proposed guidance document 
is significant within the meaning of Sec.  2509.20. Unless exempt, each 
proposed guidance document determined to be significant

[[Page 682]]

must be approved by the Chief Executive Officer before issuance. In such 
instances, CNCS will:
    (1) Obtain a RIN to report what CNCS is planning to issue;
    (2) Coordinate the guidance document with the Office of Management 
and Budget's (OMB's) Office of Information and Regulatory Affairs (OIRA) 
for the interagency review, final significance determination, and 
clearance; and
    (3) Coordinate internal review and clearance of the guidance 
document before submitting it to the Chief Executive Officer for 
approval, consistent with CNCS Policy 103.
    (b) If the guidance document is determined to be significant under 
Sec.  2509.20, CNCS may proceed with publication in the Federal 
Register. For each significant guidance document, the originating CNCS 
office should include a statement in the clearance memorandum indicating 
that the guidance document has been reviewed and cleared in accordance 
with this section.



Sec.  2509.20  What is a ``significant'' guidance document?

    (a) The term ``significant guidance document'' means a guidance 
document that will be disseminated to regulated entities or the general 
public and that may reasonably be anticipated:
    (1) To lead to an annual effect on the economy of $100 million or 
more or adversely affect in a material way the U.S. economy, a sector of 
the U.S. economy, productivity, competition, jobs, the environment, 
public health or safety, or state, local, or tribal governments or 
communities;
    (2) To create serious inconsistency or otherwise interfere with an 
action taken or planned by another Federal agency;
    (3) To alter materially the budgetary impact of entitlements, 
grants, user fees, or loan programs or the rights and obligations of 
recipients thereof; or
    (4) To raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
E.O. 12866, as further amended.
    (b) The term ``significant guidance document'' does not include the 
categories of documents excluded by Sec.  2509.12 or any other category 
of guidance documents exempted in writing by CNCS in consultation with 
OIRA.
    (c) Significant and economically significant guidance documents must 
be reviewed by OIRA under E.O. 12866 before issuance and must 
demonstrate compliance with the applicable requirements for regulations 
or rules, including significant regulatory actions, set forth in E.O. 
12866, E.O. 13563, E.O. 13609, E.O. 13771, and E.O. 13777.



Sec.  2509.22  When will guidance be published for public notice-and-comment?

    (a) Except as provided in paragraph (b) of this section, all 
proposed CNCS guidance documents determined to be significant within the 
meaning of Sec.  2509.20 are subject to public notice-and-comment. CNCS 
shall publish notification in the Federal Register of the proposed 
significant guidance document and invite public comments for a minimum 
of 30 days, then publish a response to major concerns raised in the 
comments when the final guidance document is published.
    (b) The requirements of paragraph (a) of this section will not apply 
to any significant guidance document for which CNCS finds, in 
consultation with OIRA, good cause that notice-and-comment procedures 
are impracticable, unnecessary, or contrary to the public interest (and 
incorporates the finding of good cause and a brief statement of reasons 
in the guidance issued).
    (c) CNCS and OIRA may establish an agreement on presumptively 
exempted categories of guidance; such documents will be presumptively 
exempt from the requirements of paragraph (a) of this section.



Sec.  2509.24  How may the public submit a petition to CNCS for the withdrawal 
or modification of a guidance document?

    (a) Interested parties may submit petitions to CNCS requesting 
withdrawal or modification of any effective guidance document by sending 
an email to [email protected] or by sending the request to Corporation 
for National and Community Service ATT: Associate Director of Policy, 
250 E Street SW, Washington, DC 20525.

[[Page 683]]

    (b) Interested parties should include the guidance document's title 
and a summary justification describing why the document should be 
withdrawn, how it should be modified, or the nature of the concern with 
the guidance.
    (c) The responsible CNCS department, in consultation with OGC, will 
review the petition, determine if withdrawal or modification is 
necessary or the best way to resolve the concern, and respond to the 
petitioner no later than 90 days after receipt of the request.



Sec.  2509.26  What is the effect of rescinded guidance documents?

    CNCS may not cite, use, or rely on rescinded guidance documents, 
except to establish historical facts.



Sec.  2509.28  How will significant guidance be issued when there are 
exigent circumstances?

    Under exigent circumstances, such as safety, health, or when 
statutory deadlines or court order or other compelling cause require 
CNCS to act more quickly than normal review procedures allow, CNCS will 
notify OIRA as soon as possible and, to the extent practicable, comply 
with the requirements of this subpart at the earliest opportunity.



Sec.  2509.30  No judicial review or enforceable rights.

    This subpart is intended to improve the internal management of CNCS. 
As such, it is for the use of CNCS employees only and is not intended 
to, and does not create any right or benefit, substantive or procedural, 
enforceable by law or in equity by any party against the United States, 
its agencies or other entities, its officers or employees, or any other 
person.

Subpart B [Reserved]



PART 2510_OVERALL PURPOSES AND DEFINITIONS--Table of Contents



Sec.
2510.10 What are the purposes of the programs and activities of the 
          Corporation for National and Community Service?
2510.20 Definitions.

    Authority: 42 U.S.C. 12511.



Sec.  2510.10  What are the purposes of the programs and activities 
of the Corporation for National and Community Service?

    The National and Community Service Trust Act of 1993 established the 
Corporation for National and Community Service (the Corporation). The 
Corporation's mission is to engage Americans of all ages and backgrounds 
in community-based service. This service will address the Nations 
educational, public safety, human, and environmental needs to achieve 
direct and demonstrable results. In doing so, the Corporation will 
foster civic responsibility, strengthen the ties that bind us together 
as a people, and provide educational opportunity for those who make a 
substantial commitment to service. The Corporation will undertake 
activities and provide assistance to States and other eligible entities 
to support national and community service programs and to achieve other 
purposes consistent with its mission.

[59 FR 13783, Mar. 23, 1994]



Sec.  2510.20  Definitions.

    The following definitions apply to terms used in 45 CFR parts 2510 
through 2550:
    Act. The term Act means the National and Community Service Act of 
1990, as amended (42 U.S.C. 12501 et seq.).
    Administrative costs. The term administrative costs means general or 
centralized expenses of overall administration of an organization that 
receives assistance under the Act and does not include program costs.
    (1) For organizations that have an established indirect cost rate 
for Federal awards, administrative costs mean those costs that are 
included in the organization's indirect cost rate. Such costs are 
generally identified with the organization's overall operation and are 
further described in 2 CFR part 200.
    (2) For organizations that do not have an established indirect cost 
rate for Federal awards, administrative costs include:
    (i) Costs for financial, accounting, auditing, contracting, or 
general legal services except in unusual cases when they are 
specifically approved in writing by the Corporation as program costs.

[[Page 684]]

    (ii) Costs for internal evaluation, including overall organizational 
management improvement costs (except for independent evaluations and 
internal evaluations of a program or project).
    (iii) Costs for general liability insurance that protects the 
organization(s) responsible for operating a program or project, other 
than insurance costs solely attributable to a program or project.
    Adult Volunteer. (1) The term adult volunteer means an individual, 
such as an older adult, an individual with disability, a parent, or an 
employee of a business of public or private nonprofit organization, 
who--
    (i) Works without financial remuneration in an educational 
institution to assist students of out-of-school youth; and
    (2) Is beyond the age of compulsory school attendance in the State 
in which the educational institution is located.
    AmeriCorps. The term AmeriCorps means the combination of all 
AmeriCorps programs and participants.
    AmeriCorps educational award. The term AmeriCorps educational award 
means a national service educational award described in section 147 of 
the Act.
    AmeriCorps participant. The term AmeriCorps participant means any 
individual who is serving in--
    (1) An AmeriCorps program;
    (2) An approved AmeriCorps position; or
    (3) Both.
    AmeriCorps program. The term AmeriCorps program means--
    (1) Any program that receives approved AmeriCorps positions;
    (2) Any program that receives Corporation funds under section 121 of 
the Act; or
    (3) Both.
    Approved AmeriCorps position. The term approved AmeriCorps position 
means an AmeriCorps position for which the Corporation has approved the 
provision of an AmeriCorps educational award as one of the benefits to 
be provided for successful service in the position.
    Approved Silver Scholar position. The term approved Silver Scholar 
position means a Silver Scholar position for which the Corporation has 
approved a Silver Scholar education award.
    Approved Summer of Service position. The term approved Summer of 
Service position means a Summer of Service position for which the 
Corporation has approved a Summer of Service education award.
    Carry out. The term carry out, when used in connection with an 
AmeriCorps program described in section 122 of the Act, means the 
planning, establishment, operation, expansion, or replication of the 
program.
    Chief Executive Officer. The term Chief Executive Officer, except 
when used to refer to the chief executive officer of a State, means the 
Chief Executive Officer of the Corporation appointed under section 193 
of the Act.
    Children. The term children means individuals 17 years of age and 
younger.
    Community-based agency. The term community-based agency means a 
private nonprofit organization (including a church or other religious 
entity) that--
    (1) Is representative of a community or a significant segment of a 
community; and
    (2) Is engaged in meeting educational, public safety, human, or 
environmental community needs.
    Community-based entity. The term community-based entity means a 
public or private nonprofit organization that--
    (1) Has experience with meeting unmet human, educational, 
environmental, or public safety needs; and
    (2) Meets other such criteria as the Chief Executive Officer may 
establish.
    Corporation. The term Corporation means the Corporation for National 
and Community Service established under section 191 of the Act.
    Economically disadvantaged. The term economically disadvantaged, 
with respect to an individual, has the same meaning as such term as 
defined in the Job Training Partnership Act (29 U.S.C. 1503(8)).
    Elementary school. The term elementary school has the same meaning 
given the term in section 1471(8) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 2891(8)).

[[Page 685]]

    Empowerment zone. The term empowerment zone means an area designated 
as an empowerment zone by the Secretary of the Department of Housing and 
Urban Development or the Secretary of the Department of Agriculture.
    Grantmaking entity. (1) For school-based programs, the term 
grantmaking entity means a public or private nonprofit organization 
experienced in service-learning that--
    (i) Submits an application to make grants for school-based service-
learning programs in two or more States; and
    (ii) Was in existence at least one year before the date on which the 
organization submitted the application.
    (2) For community-based programs, the term grantmaking entity means 
a qualified organization that--
    (i) Submits an application to make grants to qualified organizations 
to implement, operate, expand, or replicate community-based service 
programs that provide for educational, public safety, human, or 
environmental service by school-age youth in two or more States; and
    (ii) Was in existence at least one year before the date on which the 
organization submitted the application.
    Higher Education partnerships. The term higher education partnership 
means one or more public or private nonprofit organizations, or public 
agencies, including States, and one or more institutions of higher 
education that have entered into a written agreement specifying the 
responsibilities of each partner.
    Indian. The term Indian means a person who is a member of an Indian 
tribe, or is a ``Native'', as defined in section 3(b) of the Alaska 
Native Claims Settlement Act (43 U.S.C. 1602(b)).
    Indian lands. The term Indian lands means any real property owned by 
an Indian tribe, any real property held in trust by the United States 
for an Indian or Indian tribe, and any real property held by an Indian 
or Indian tribe that is subject to restrictions on alienation imposed by 
the United States.
    Indian tribe. The term Indian tribe means--
    (1) An Indian tribe, band, nation, or other organized group or 
community that is recognized as eligible for the special programs and 
services provided by the United States under Federal law to Indians 
because of their status as Indians, including--
    (i) Any Native village, as defined in section 3(c) of the Alaska 
Native Claims Settlement Act (43 U.S.C. 1602(c)), whether organized 
traditionally or pursuant to the Act of June 18, 1934 (commonly known as 
the ``Indian Reorganization Act'', 25 U.S.C. 461 et seq.); and
    (ii) Any Regional Corporation or Village Corporation, as defined in 
subsection (g) or (j), respectively, of section 3 of the Alaska Native 
Claims Settlement Act (43 U.S.C. 1602 (g) or (j)); and
    (2) Any tribal organization controlled, sanctioned, or chartered by 
an entity described in paragraph (1) of this definition.
    Individual with a disability. Except as provided in section 175(a) 
of the Act, the term individual with a disability has the meaning given 
the term in section 7(8)(B) of the Rehabilitation Act of 1973 (29 U.S.C. 
706(8)(B)), which includes individuals with cognitive and other mental 
impairments, as well as individuals with physical impairments, who meet 
the criteria in that definition.
    Infrastructure-building activities. The term infrastructure-building 
activities refers to activities that increase the capacity of 
organizations, programs and individuals to provide high quality service 
to communities.
    Institution of higher education. The term institution of higher 
education has the same meaning given the term in section 101 of the 
Higher Education Act of 1965 (20 U.S.C. 1001).
    Local educational agency (LEA). The term local educational agency 
has the same meaning given the term in section 1471(12) of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 2891(12)).
    Local partnership. The term local partnership means a partnership, 
as defined in Sec.  2510.20 of this chapter, that meets the eligibility 
requirements to apply for subgrants under Sec.  2516.110 or Sec.  
2517.110 of this chapter.

[[Page 686]]

    National nonprofit. The term national nonprofit means any nonprofit 
organization whose mission, membership, activities, or constituencies 
are national in scope.
    National service laws. The term national service laws means the Act 
and the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4950 et seq.).
    Objective. The term objective means a desired accomplishment of a 
program.
    Out-of-school youth. The term out-of-school youth means an 
individual who--
    (1) Has not attained the age of 27;
    (2) Has not completed college or its equivalent; and
    (3) Is not enrolled in an elementary or secondary school or 
institution of higher education.
    Participant. (1) The term participant means an individual enrolled 
in a program that receives assistance under the Act.
    (2) A participant may not be considered to be an employee of the 
program in which the participant is enrolled.
    (3) A participant may also be referred to by the term member.
    Partnership. The term partnership means two or more entities that 
have entered into a written agreement specifying the partnership's goals 
and activities as well as the responsibilities, goals, and activities of 
each partner.
    Partnership program. The term partnership program means a program 
through which an adult volunteer, a public or private nonprofit 
organization, an institution of higher education, or a business assists 
a local educational agency.
    Program. The term program, unless the context otherwise requires, 
and except when used as part of the term academic program, means a 
program described in the National and Community Service Act of 1990, as 
amended (42 U.S.C. 12501 et seq.), in section 112(a) (other than a 
program referred to in paragraph (3)(B) of that section), 118A, or 
118(b)(1), or subsection (a), (b), or (c) of section 122, or in 
paragraph (1) or (2) of section 152(b), section 198B, 198C, 198H, or 
198K, or an activity that could be funded under section 179A, 198, 198O, 
198P, or 199N.
    Program costs. The term program costs means expenses directly 
related to a program or project, including their operations and 
objectives. Program costs include, but are not limited to:
    (1) Costs attributable to participants, including: living 
allowances, insurance payments, and expenses for training and travel.
    (2) Costs (including salary, benefits, training, travel) 
attributable to staff who recruit, train, place, support, coordinate, or 
supervise participants, or who develop materials used in such 
activities.
    (3) Costs for independent evaluations and internal evaluations to 
the extent that the evaluations cover only the funded program or 
project.
    (4) Costs, excluding those already covered in an organization's 
indirect cost rate, attributable to staff that work in a direct program 
or project support, operational, or oversight capacity, including, but 
not limited to: support staff whose functions directly support program 
or project activities; staff who coordinate and facilitate single or 
multi-site program and project activities; and staff who review, 
disseminate and implement Corporation guidance and policies directly 
relating to a program or project.
    (5) Space, facility, and communications costs for program or project 
operations and other costs that primarily support program or project 
operations, excluding those costs that are already covered by an 
organization's indirect cost rate.
    (6) Other allowable costs, excluding those costs that are already 
covered by an organization's indirect cost rate, specifically approved 
by the Corporation as directly attributable to a program or project.
    Program sponsor. The term program sponsor means an entity 
responsible for recruiting, selecting, and training participants, 
providing them benefits and support services, engaging them in regular 
group activities, and placing them in projects.
    Project. The term project means an activity, or a set of activities, 
carried out through a program that receives assistance under the Act, 
that results in a specific identifiable service or improvement that 
otherwise would not be done with existing funds, and that does not

[[Page 687]]

duplicate the routine services or functions of the employer to whom 
participants are assigned.
    Project sponsor. The term project sponsor means an organization, or 
other entity, that has been selected to provide a placement for a 
participant.
    Qualified individual with a disability. The term qualified 
individual with a disability has the meaning given the term in section 
101(8) of the Americans with Disabilities Act of 1990 (42 U.S.C. 
12111(8)).
    Qualified organization. The term qualified organization means a 
public or private nonprofit organization, other than a grantmaking 
entity, that--
    (1) Has experience in working with school-age youth; and
    (2) Was in existence at least one year before the date on which the 
organization submitted an application for a service-learning program.
    Recognized equivalent of a high-school diploma. The term recognized 
equivalent of a high-school diploma means:
    (1) A General Education Development Certificate (GED);
    (2) A State certificate received by a student after the student has 
passed a State-authorized examination that the State recognizes as the 
equivalent of a high-school diploma;
    (3) An academic transcript of a student who has successfully 
completed at least a two-year program that is acceptable for full credit 
toward a bachelor's degree; or
    (4) For a person who is seeking enrollment in an educational program 
that leads to at least an associate degree or its equivalent and who has 
not completed high-school but who excelled academically in high-school, 
documentation that the student excelled academically in high-school and 
has met the formalized, written policies of the institution for 
admitting such students.
    Recurring access. The term recurring access means the ability on 
more than one occasion to approach, observe, or communicate with, an 
individual, through physical proximity or other means, including but not 
limited to, electronic or telephonic communication.
    School-age youth. The term school-age youth means--
    (1) Individuals between the ages of 5 and 17, inclusive; and
    (2) Children with disabilities, as defined in section 602(a)(1) of 
the Individuals with Disabilities Education Act (20 U.S.C. 1401(a)(1)), 
who receive services under part B of that Act.
    Secondary school. The term secondary school has the same meaning 
given the term in section 1471(21) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 2891(21)).
    Service-learning. The term service-learning means a method under 
which students or participants learn and develop through active 
participation in thoughtfully organized service that--
    (1) Is conducted in and meets the needs of a community;
    (2) Is coordinated with an elementary school, secondary school, 
institution of higher education, or community service program, and with 
the community;
    (3) Helps foster civic responsibility;
    (4) Is integrated into and enhances the academic curriculum of the 
students or the educational components of the community service program 
in which the participants are enrolled; and
    (5) Includes structured time for the students and participants to 
reflect on the service experience.
    Service-learning coordinator. The term service-learning coordinator 
means an individual trained in service-learning who identifies community 
partners for LEAs; assists in designing and implementing local 
partnerships service-learning programs; provides technical assistance 
and information to, and facilitates the training of, teachers; and 
provides other services for an LEA.
    State. The term State means each of the several States, the District 
of Columbia, the Commonwealth of Puerto Rico, the United States Virgin 
Islands, Guam, American Samoa, and the Commonwealth of the Northern 
Mariana Islands. The term also includes Palau, until the Compact of Free 
Association is ratified.
    State Commission. The term State Commission means a State Commission 
on National and Community Service maintained by a State pursuant to 
section 178 of the Act. Except when used in section 178, the term 
includes an alternative administrative entity for a

[[Page 688]]

State approved by the Corporation under that section to act in lieu of a 
State Commission.
    State educational agency (SEA). The term State educational agency 
has the same meaning given that term in section 1471(23) of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 2891(23)).
    Student. The term student means an individual who is enrolled in an 
elementary or secondary school or institution of higher education on a 
full-time or part-time basis.
    Subdivision of a State. The term subdivision of a State means an 
governmental unit within a State other than a unit with Statewide 
responsibilities.
    Subtitle C program. The term subtitle C program means an AmeriCorps 
program authorized and funded under subtitle C of the National and 
Community Service Act of 1990, as amended. (NCSA) (42 U.S.C. 12501 et 
seq.) It does not include demonstration programs, or other AmeriCorps 
programs, funded under subtitle H of the NCSA.
    Target community. The term target community means the geographic 
community in which an AmeriCorps grant applicant intends to provide 
service to address an identified unmet human, educational, 
environmental, or public safety (including disaster-preparedness and 
response) need.
    U.S. Territory. The term U.S. Territory means the Virgin Islands, 
Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, 
and Palau, until the Compact of Free Association with Palau is ratified.

[59 FR 13783, Mar. 23, 1994, as amended at 63 FR 18137, Apr. 14, 1998; 
67 FR 45359, July 9, 2002; 70 FR 39596, July 8, 2005; 72 FR 48581, Aug. 
24, 2007; 73 FR 53759, Sept. 17, 2008; 74 FR 46502, Sept. 10, 2009; 75 
FR 51409, Aug. 20, 2010; 77 FR 60931, Oct. 5, 2012; 79 FR 76077, Dec. 
19, 2014]

                          PART 2513 [RESERVED]



PART 2515_SERVICE-LEARNING PROGRAM PURPOSES--Table of Contents



    Authority: 42 U.S.C. 12501 et seq.



Sec.  2515.10  What are the service-learning programs of the Corporation 
for National and Community Service?

    (a) There are three service-learning programs: (1) School-based 
programs, described in part 2516 of this chapter.
    (2) Community-based programs, described in part 2517 of this 
chapter.
    (3) Higher education programs, described in part 2519 of this 
chapter.
    (b) Each program gives participants the opportunity to learn and 
develop their own capabilities through service-learning, while 
addressing needs in the community.

[59 FR 13786, Mar. 23, 1994]



PART 2516_SCHOOL-BASED SERVICE-LEARNING PROGRAMS--Table of Contents



                     Subpart A_Eligibility To Apply

Sec.
2516.100 What is the purpose of school-based service-learning programs?
2516.110 Who may apply for a direct grant from the Corporation?
2516.120 Who may apply for funding a subgrant?

                      Subpart B_Use of Grant Funds

2516.200 How may grant funds be used?

                  Subpart C_Eligibility To Participate

2516.300 Who may participate in a school-based service-learning program?
2516.310 May private school students participate?
2516.320 Is a participant eligible to receive an AmeriCorps educational 
          award?

                     Subpart D_Application Contents

2516.400 What must a State or Indian tribe include in an application for 
          a grant?
2516.410 What must a community-based entity include in an application 
          for a grant?
2516.420 What must an LEA, local partnership, qualified organization or 
          other eligible entity include in an application for a 
          subgrant?

                      Subpart E_Application Review

2516.500 How does the Corporation review the merits of an application?
2516.510 What happens if the Corporation rejects a State's application 
          for an allotment grant?

[[Page 689]]

2516.520 How does a State, Indian tribe, or community-based entity 
          review the merits of an application?

                     Subpart F_Distribution of Funds

2516.600 How are funds for school-based service-learning programs 
          distributed?

                     Subpart G_Funding Requirements

2516.700 What matching funds are required?
2516.710 What are the limits on the use of funds?
2516.720 What is the length of each type of grant?
2516.730 May an applicant submit more than one application to the 
          Corporation for the same project at the same time?

                    Subpart H_Evaluation Requirements

2516.800 What are the purposes of an evaluation?
2516.810 What types of evaluations are grantees and subgrantees required 
          to perform?
2516.820 What types of internal evaluation activities are required of 
          programs?
2516.830 What types of activities are required of Corporation grantees 
          to evaluate the effectiveness of their subgrantees?
2516.840 By what standards will the Corporation evaluate individual 
          Learn and Serve America programs?
2516.850 What will the Corporation do to evaluate the overall success of 
          the service-learning program?
2516.860 Will information on individual participants be kept 
          confidential?

    Authority: 42 U.S.C. 12521-12529; 42 U.S.C. 12645g.

    Source: 59 FR 13786, Mar. 23, 1994, unless otherwise noted.



                     Subpart A_Eligibility To Apply

    Source: 74 FR 46502, Sept. 10, 2009, unless otherwise noted.



Sec.  2516.100  What is the purpose of school-based service-learning programs?

    The purpose of school-based service-learning programs is to promote 
service-learning as a strategy to support high-quality service-learning 
projects that engage students in meeting community needs with 
demonstrable results, while enhancing students' academic and civic 
learning; and support efforts to build institutional capacity, including 
the training of educators, and to strengthen the service infrastructure 
to expand service opportunities.



Sec.  2516.110  Who may apply for a direct grant from the Corporation?

    (a) The following entities may apply for a direct grant from the 
Corporation:
    (1) A State, through a State educational agency (SEA). For purposes 
of this part ``State'' means one of the 50 States, the District of 
Columbia, the Commonwealth of Puerto Rico, and, except for the purpose 
of Sec.  2516.600(b), U.S. Territories; ``SEA'' means a ``State 
educational agency'' as defined in Sec.  2510.20 of this chapter or an 
SEA-designated statewide entity (which may be a community-based entity) 
with demonstrated experience in supporting or implementing service-
learning programs.
    (2) An Indian Tribe.
    (3) For activities in a nonparticipating State or Indian Tribe, a 
community-based entity as defined in Sec.  2510.20.
    (b) The types of grants for which each entity is eligible are 
described in Sec.  2516.200.



Sec.  2516.120  Who may apply for funding a subgrant?

    Entities that may apply for a subgrant from a State, Indian Tribe, 
or community-based entity are:
    (a) A qualified organization, Indian Tribe, Territory, local 
educational agency, for-profit business, private elementary school or 
secondary school, or institution of higher education for a grant from a 
State for planning and building the capacity of school-based service-
learning programs.
    (b) A local partnership, for a grant from a State to implement, 
operate, or expand a school-based service learning program.
    (1) The local partnership must include an LEA and one or more 
community partners. The local partnership may include a private for-
profit business, or private elementary or secondary school, or an Indian 
Tribe (except that an Indian Tribe distributing funds to a project under 
this paragraph is not eligible to be part of the partnership operating 
that project).

[[Page 690]]

    (2) The community partners must include a public or private 
nonprofit organization that has demonstrated expertise in the provision 
of services to meet educational, public safety, human, or environmental 
needs; will make projects available for participants, who must be 
students; and was in existence at least one year before the date on 
which the organization submitted an application under this part.
    (c) An LEA or Indian Tribe for planning school-based service-
learning programs involving paying, recruiting, and supporting service-
learning coordinators.
    (d) An LEA, local partnership, or public or private nonprofit 
organization for a grant from a State to implement, operate, or expand 
an adult volunteer program. The local partnership must include an LEA 
and one or more public or private nonprofit organizations, other 
educational agencies, or an Indian Tribe (except that an Indian Tribe 
distributing funds under this paragraph is not eligible to be a 
recipient of those funds) that coordinate and operate projects for 
participants who must be students.
    (e) An eligible entity for a grant from a State or Indian Tribe to 
carry out civic engagement activities.



                      Subpart B_Use of Grant Funds



Sec.  2516.200  How may grant funds be used?

    Funds under a school-based service learning grant may be used for 
the purposes described in this section.
    (a) Planning and capacity-building. (1) A State, Indian Tribe, or 
community-based entity may use funds to pay for planning and building 
its capacity to implement school-based service-learning programs. These 
entities may use funds either directly or through subgrants or contracts 
with qualified organizations.
    (2) Authorized activities include the following:
    (i) Providing training for teachers, supervisors, personnel from 
community-based agencies (particularly with regard to the utilization of 
participants) and trainers, conducted by qualified individuals or 
organizations experienced in service-learning.
    (ii) Developing service-learning curricula, consistent with State or 
local academic content standards, to be integrated into academic 
programs, including the age-appropriate learning components for students 
to analyze and apply their service experiences.
    (iii) Forming local partnerships described in Sec.  2516.120 to 
develop school-based service-learning programs in accordance with this 
part.
    (iv) Devising appropriate methods for research and evaluation of the 
educational value of service-learning and the effect of service-learning 
activities on communities.
    (v) Establishing effective outreach and dissemination of information 
to ensure the broadest possible involvement of community-based agencies 
with demonstrated effectiveness in working with school-age youth in 
their communities.
    (vi) Establishing effective outreach and dissemination of 
information to ensure the broadest possible participation of schools 
throughout the State, Territory or serving the Indian Tribe involved, 
with particular attention to schools not making adequate yearly progress 
for two or more consecutive years under section 1111 of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.).
    (b) Implementing, operating, and expanding school-based programs. 
(1) A State, Indian Tribe or community-based entity may use funds to 
make subgrants to local partnerships described in Sec.  2516.120(b) to 
implement, operate, or expand school-based service-learning programs.
    (2) If a State does not submit an application that meets the 
requirements for an allotment grant under Sec.  2516.400, the 
Corporation may use the allotment to fund applications from community-
based entities for programs in that State.
    (3) Authorized activities include paying the costs of the 
recruitment, training, supervision, placement, salaries and benefits of 
service-learning coordinators.
    (c) Planning programs. (1) A State may use funds to make subgrants 
to

[[Page 691]]

LEAs for planning school-based service-learning programs.
    (2) If a State does not submit an application that meets the 
requirements for an allotment grant under Sec.  2516.400, the 
Corporation may use the allotment to fund applications from community-
based entities for planning programs in that State.
    (3) Authorized activities include paying the costs of--
    (i) The salaries and benefits of service-learning coordinators as 
defined in Sec.  2510.20 of this chapter; and
    (ii) The recruitment, training, supervision, and placement of 
service-learning coordinators who may be, but are not required to be, 
participants in an AmeriCorps program described in parts 2520 through 
2524 of this chapter, or who receive AmeriCorps education awards, or who 
may be participants in a project under section 201 of the Domestic 
Volunteer Service Act of 1973 (42 U.S.C. 5001), or who may participate 
in a Youthbuild program under section 173A of the Workforce Investment 
Act of 1998 (29 U.S.C. 2918a).
    (d) Adult volunteer programs. (1) A State, Indian Tribe, or 
community-based entity may use funds to make subgrants to local 
partnerships described in Sec.  2516.120(c) to implement, operate, or 
expand school-based programs involving adult volunteers to utilize 
service-learning to improve the education of students.
    (2) If a State does not submit an application that meets the 
requirements for an allotment grant under Sec.  2516.400, the 
Corporation may use the allotment to fund applications from those local 
partnerships for adult volunteer programs in that State.
    (e) Planning by Indian Tribes and U.S. Territories. If the 
Corporation makes a grant to an Indian Tribe or a U.S. Territory to plan 
school-based service-learning programs, the grantee may use the funds 
for that purpose.
    (f) Civic engagement programs. A State, Indian Tribe, Territory or 
qualified organization may use funds to support service-learning civic 
engagement programs that promote a better understanding of:
    (1) The principles of the Constitution, the heroes of United States 
history (including military history), and the meaning of the Pledge of 
Allegiance;
    (2) How the Nation's government functions; and
    (3) The importance of service in the Nation's character.

[74 FR 46503, Sept. 10, 2009]



                  Subpart C_Eligibility To Participate



Sec.  2516.300  Who may participate in a school-based service-learning program?

    Students who are enrolled in elementary or secondary schools on a 
full-time or part-time basis may participate in school-based programs.



Sec.  2516.310  May private school students participate?

    (a) Yes. To the extent consistent with the number of students in the 
State or Indian tribe or in the school district of the LEA involved who 
are enrolled in private nonprofit elementary or secondary schools, the 
State, Indian tribe, or LEA must (after consultation with appropriate 
private school representatives) make provision--
    (1) For the inclusion of services and arrangements for the benefit 
of those students so as to allow for the equitable participation of the 
students in the programs under this part; and
    (2) For the training of the teachers of those students so as to 
allow for the equitable participation of those teachers in the programs 
under this part.
    (b) If a State, Indian tribe, or LEA is prohibited by law from 
providing for the participation of students or teachers from private 
nonprofit schools as required by paragraph (a) of this section, or if 
the Corporation determines that a State, Indian tribe, or LEA 
substantially fails or is unwilling to provide for their participation 
on an equitable basis, the Corporation will waive those requirements and 
arrange for the provision of services to the students and teachers.

[59 FR 13786, Mar. 23, 1994, as amended at 74 FR 46504, Sept. 10, 2009]

[[Page 692]]



Sec.  2516.320  Is a participant eligible to receive an AmeriCorps 
educational award?

    No. However, service-learning coordinators who are approved 
AmeriCorps positions are eligible for AmeriCorps educational awards.



                     Subpart D_Application Contents



Sec.  2516.400  What must a State or Indian tribe include in an application 
for a grant?

    In order to apply for a grant from the Corporation under this part, 
a State (SEA) or Indian tribe must submit the following: (a) A three-
year strategic plan for promoting service-learning through programs 
under this part, or a revision of a previously approved three-year 
strategic plan. The application of a SEA must include a description of 
how the SEA will coordinate its service-learning plan with the State 
Plan under Sec.  2550.80(a) of this chapter and with other federally-
assisted activities.
    (b) A proposal containing the specific program, budget, and other 
information specified by the Corporation in the grant application 
package.
    (c) Assurances that the applicant will--
    (1) Keep such records and provide such information to the 
Corporation with respect to the programs as may be required for fiscal 
audits and program evaluation; and
    (2) Comply with the criminal history check requirements for all 
grant-funded staff employed after October 1, 2009, in accordance with 45 
CFR 2540.200-207, as well as the nonduplication, nondisplacement, and 
grievance procedure requirements of Part 2540.

[59 FR 13786, Mar. 23, 1994, as amended at 73 FR 53759, Sept. 17, 2008; 
74 FR 46504, Sept. 10, 2009]



Sec.  2516.410  What must a community-based entity include in an application 
for a grant?

    In order to apply to the Corporation for a grant, a community-based 
entity must submit the following:
    (a) A detailed description of the proposed program goals and 
activities. The application of a community-based entity must include--
    (1) A description of how the applicant will coordinate its 
activities with the State Plan under Sec.  2513 of this chapter, 
including a description of plans to meet and consult with the State 
Commission, if possible, and to provide a copy of the program 
application to the State Commission and with other Federally-assisted 
activities.
    (b) The specific program, budget, and other information specified by 
the Corporation in the grant application package.
    (c) Assurances that the applicant will--
    (1) Keep such records and provide such information to the 
Corporation with respect to the program as may be required for fiscal 
audits and program evaluations;
    (2) Prior to the placement of a participant, consult with the 
appropriate local labor organization, if any, representing employees in 
the area who are engaged in the same or similar work as that proposed to 
be carried out by the program, to prevent the displacement and protect 
the rights of those employees;
    (3) Develop an age-appropriate learning component for participants 
in the program that includes a chance for participants to analyze and 
apply their service experiences; and
    (4) Comply with the criminal history check requirements for all 
grant-funded staff employed after October 1, 2009, in accordance with 45 
CFR 2540.200-207, as well as the nonduplication, nondisplacement, and 
grievance procedure requirements of Part 2540.

[74 FR 46504, Sept. 10, 2009]



Sec.  2516.420  What must an LEA, local partnership, qualified organization 
or other eligible entity include in an application for a subgrant?

    In order to apply for a subgrant from a State, Indian Tribe, or 
community-based entity under this part, an applicant must include the 
information required by the Corporation grantee.

[74 FR 46504, Sept. 10, 2009]

[[Page 693]]



                      Subpart E_Application Review



Sec.  2516.500  How does the Corporation review the merits of an application?

    (a) In reviewing the merits of an application submitted to the 
Corporation under this part, the Corporation evaluates the quality, 
innovation, replicability, and sustainability of the proposal on the 
basis of the following criteria: (1) Quality, as indicated by the extent 
to which--
    (i) The program will provide productive meaningful, educational 
experiences that incorporate service-learning methods;
    (ii) The program will meet community needs and involve individuals 
from diverse backgrounds (including economically disadvantaged youth) 
who will serve together to explore the root causes of community 
problems;
    (iii) The principal leaders of the program will be well qualified 
for their responsibilities;
    (iv) The program has sound plans and processes for training, 
technical assistance, supervision, quality control, evaluation, 
administration, and other key activities; and
    (v) The program will advance knowledge about how to do effective and 
innovative community service and service-learning and enhance the 
broader elementary and secondary education field.
    (2) Replicability, as indicated by the extent to which the program 
will assist others in learning from experience and replicating the 
approach of the program.
    (3) Sustainability, as indicated by the extent to which--
    (i) An SEA, Indian tribe or community-based entity applicant 
demonstrates the ability and willingness to coordinate its activities 
with the State Plan under Sec.  2550.80(a) of this chapter and with 
other federally assisted activities;
    (ii) The program will foster collaborative efforts among local 
educational agencies, local government agencies, community based 
agencies, businesses, and State agencies;
    (iii) The program will enjoy strong, broad-based community support; 
and
    (iv) There is evidence that financial resources will be available to 
continue the program after the expiration of the grant.
    (b) The Corporation also gives priority to proposals that--
    (1) Involve participants in the design and operation of the program;
    (2) Reflect the greatest need for assistance, such as programs 
targeting low-income areas or serving economically disadvantaged youth:
    (3) Involve students from public and private schools serving 
together;
    (4) Involve students of different ages, races, genders, ethnicities, 
abilities and disabilities, or economic backgrounds, serving together;
    (5) Are integrated into the academic program of the participants;
    (6) Best represent the potential of service-learning as a vehicle 
for education reform and school-to-work transition;
    (7) Develop civic responsibility and leadership skills and qualities 
in participants;
    (8) Demonstrate the ability to achieve the goals of this part on the 
basis of the proposal's quality, innovation, replicability, and 
sustainability; or
    (9) Address any other priority established by the Corporation for a 
particular period.
    (c) In reviewing applications submitted by Indian tribes and U.S. 
Territories, the Corporation--
    (1) May decide to approve only planning of school-based service-
learning programs; and
    (2) Will set the amounts of grants in accordance with the respective 
needs of applicants.

[59 FR 13786, Mar. 23, 1994, as amended at 73 FR 53759, Sept. 17, 2008; 
74 FR 46504, Sept. 10, 2009]



Sec.  2516.510  What happens if the Corporation rejects a State's application 
for an allotment grant?

    If the Corporation rejects a State's application for an allotment 
grant under Sec.  2516.600(b)(2), the Corporation will--
    (a) Promptly notify the State of the reasons for the rejection;
    (b) Provide the State with a reasonable opportunity to revise and 
resubmit the application;

[[Page 694]]

    (c) Provide technical assistance, if necessary; and
    (d) Promptly reconsider the resubmitted application and make a 
decision.



Sec.  2516.520  How does a State, Indian tribe, or community-based entity 
review the merits of an application?

    In reviewing the merits of an application for a subgrant under this 
part, a Corporation grantee must use the criteria and priorities in 
Sec.  2516.500.

[59 FR 13786, Mar. 23, 1994, as amended at 74 FR 46504, Sept. 10, 2009]



                     Subpart F_Distribution of Funds



Sec.  2516.600  How are funds for school-based service-learning 
programs distributed?

    (a) Of the amounts appropriated to carry out this part for any 
fiscal year, the Corporation will reserve not less than two percent and 
not more than three percent for grants to Indian Tribes and U.S. 
Territories to be allotted in accordance with their respective needs.
    (b) The Corporation will use the remainder of the funds appropriated 
as follows:
    (1) Allotments to States.
    (i) From 50 percent of the remainder, the Corporation will allot to 
each State an amount that bears the same ratio to 50 percent of the 
remainder as the number of school-age youth in the State bears to the 
total number of school-age youth of all States.
    (ii) From 50 percent of the remainder, the Corporation will allot to 
each State an amount that bears the same ratio to 50 percent of the 
remainder as the allocation to the State for the previous fiscal year 
under Chapter 1 of Title I of the Elementary and Secondary Education Act 
of 1965 (20 U.S.C. 6301 et seq.) bears to the allocations to all States.
    (iii) Notwithstanding other provisions of paragraph (b)(1) of this 
section, for any fiscal year for which amounts appropriated for Part I 
of Subtitle B of Title I of the National and Community Service Act of 
1990 (42 U.S.C. 12521 et seq.) exceed $50,000,000, the minimum allotment 
to each State under this paragraph (b)(1) will be $75,000.
    (2) For the purpose of paragraph (b) of this section, ``State'' 
means one of the 50 States, the District of Columbia, and the 
Commonwealth of Puerto Rico.
    (c) If a State or Indian Tribe does not submit an application that 
meets the requirements for approval under this part, the Corporation 
(after making any grants to community-based entities for activities in 
nonparticipating States) may use its allotment for States and Indian 
Tribes with approved applications, as the Corporation determines 
appropriate.

[74 FR 46504, Sept. 10, 2009]



                     Subpart G_Funding Requirements



Sec.  2516.700  What matching funds are required?

    (a) The Corporation share of the cost of carrying out a program 
funded under this part may not exceed--
    (1) Eighty percent of the total cost for the first year for which 
the program receives assistance;
    (2) Sixty-five percent of the total cost for the second year; and
    (3) Fifty percent of the total cost for the third year and any 
subsequent year.
    (b) In providing for the remaining share of the cost of carrying out 
a program, each recipient of assistance must provide for that share 
through a payment in cash or in-kind, fairly evaluated, including 
facilities, equipment, or services, and may provide for that share 
through State sources, local sources, or Federal sources (other than 
funds made available under the national service laws or title I of the 
Elementary and Secondary Act of 1965 (20 U.S.C. 6311 et seq.)).
    (c) The Corporation may waive the requirements of paragraph (b) of 
this section in whole or in part with respect to any program in any 
fiscal year if the Corporation determines that the waiver would be 
equitable due to a lack of available financial resources at the local 
level.

[74 FR 46504, Sept. 10, 2009]



Sec.  2516.710  What are the limits on the use of funds?

    The following limits apply to funds available under this part:

[[Page 695]]

    (a)(1) Not more than six percent of the grant funds provided under 
this part for any fiscal year may be used to pay for administrative 
costs, as defined in Sec.  2510.20 of this chapter.
    (2) The distribution of administrative costs between the grant and 
any subgrant is subject to the approval of the Corporation.
    (3) In applying the limitation on administrative costs, the 
Corporation may approve one of the following methods in the award 
document:
    (i) Limit the amount or rate of indirect costs that may be paid with 
Corporation funds under a grant or subgrant to six percent of total 
Corporation funds expended, provided that--
    (A) Organizations that have an established indirect cost rate for 
Federal awards will be limited to this method; and
    (B) Unreimbursed indirect costs may be applied to meeting 
operational matching requirements under the Corporation's award;
    (ii) Specify that a fixed rate of six percent or less (not subject 
to supporting cost documentation) of total Corporation funds expended 
may be used to pay for administrative costs, provided that the fixed 
rate is in conjunction with an overall 15 percent administrative cost 
factor to be used for organizations that do not have established 
indirect cost rates; or
    (iii) Use such other method that the Corporation determines in 
writing is consistent with OMB guidance and other applicable 
requirements, helps minimize the burden on grantees or subgrantees, and 
is beneficial to grantees or subgrantees and the Federal Government.
    (b) Funds made available under this part may not be used to pay any 
stipend, allowance, or other financial support to any participant in a 
service-learning program under this part except reimbursement for 
transportation, meals, and other reasonable out-of-pocket expenses 
directly related to participation in a program assisted under this part.

[74 FR 46505, Sept. 10, 2009]



Sec.  2516.720  What is the length of each type of grant?

    (a) One year is the maximum length of--
    (1) A planning grant under Sec.  2516.200 (a), (c) or (e); and
    (2) A grant to a local partnership for activities in a 
nonparticipating State under Sec.  2516.200 (b)(2) and (d)(2).
    (b) All other grants are for a period of up to three years, subject 
to satisfactory performance and annual appropriations.



Sec.  2516.730  May an applicant submit more than one application 
to the Corporation for the same project at the same time?

    No. The Corporation will reject an application for a project if an 
application for funding or educational awards for the same project is 
already pending before the Corporation.



                    Subpart H_Evaluation Requirements



Sec.  2516.800  What are the purposes of an evaluation?

    Every evaluation effort should serve to improve program quality, 
examine benefits of service, or fulfill legislative requirements.



Sec.  2516.810  What types of evaluations are grantees and subgrantees 
required to perform?

    All grantees and subgrantees are required to perform internal 
evaluations which are ongoing efforts to assess performance and improve 
quality. Grantees and subgrantees may, but are not required to, arrange 
for independent evaluations which are assessments of program 
effectiveness by individuals who are not directly involved in the 
administration of the program. The cost of independent evaluations is 
allowable.



Sec.  2516.820  What types of internal evaluation activities 
are required of programs?

    Programs are required to: (a) Continuously assess management 
effectiveness, the quality of services provided, and the satisfaction of 
both participants and service recipients. Internal evaluations should 
seek frequent

[[Page 696]]

feedback and provide for quick correction of weakness. The Corporation 
encourages programs to use internal evaluation methods, such as 
community advisory councils, participant advisory councils, peer 
reviews, quality control inspections, and service recipient and 
participant surveys.
    (b) Track progress toward pre-established objectives. Objectives 
must be established by programs and approved by the Corporation. 
Programs must submit to the Corporation (or the Corporation grantee as 
applicable) periodic performance reports.
    (c) Collect and submit to the Corporation (through the Corporation 
grantee as applicable) the following data: (1) The total number of 
participants in each program and basic demographic characteristics of 
the participants including sex, age, economic background, education 
level, ethnic group, disability classification, and geographic region.
    (2) Other information as required by the Corporation.
    (d) Cooperate fully with all Corporation evaluation activities.



Sec.  2516.830  What types of activities are required of Corporation grantees 
to evaluate the effectiveness of their subgrantees?

    A Corporation grantee that makes subgrants must do the following: 
(a) Ensure that subgrantees comply with the requirements of Sec.  
2516.840.
    (b) Track program performance in terms of progress toward pre-
established objectives; ensure that corrective action is taken when 
necessary; and submit to the Corporation periodic performance reports.
    (c) Collect from programs and submit to the Corporation the 
descriptive information required in Sec.  2516.820(c)(1).
    (d) Cooperate fully with all Corporation evaluation activities.



Sec.  2516.840  By what standards will the Corporation evaluate individual 
Learn and Serve America programs?

    The Corporation will evaluate programs based on the following: (a) 
The extent to which the program meets the objectives established and 
agreed to by the grantee and the Corporation before the grant award.
    (b) The extent to which the program is cost-effective.
    (c) Other criteria as determined and published by the Corporation.



Sec.  2516.850  What will the Corporation do to evaluate the overall success 
of the service-learning program?

    (a) The Corporation will conduct independent evaluations. These 
evaluations will consider the opinions of participants and members of 
the communities where services are delivered. If appropriate, these 
evaluations will compare participants with individuals who have not 
participated in service-learning programs. These evaluations will--
    (1) Study the extent to which service-learning programs as a whole 
affect the involved communities;
    (2) Determine the extent to which service-learning programs as a 
whole increase academic learning of participants, enhance civic 
education, and foster continued community involvement; and
    (3) Determine the effectiveness of different program models.
    (b) The Corporation will also determine by June 30, 1995, whether 
outcomes of service-learning programs are defined and measured 
appropriately, and the implications of the results from such a study for 
authorized funding levels.



Sec.  2516.860  Will information on individual participants 
be kept confidential?

    (a) Yes. The Corporation will maintain the confidentiality of 
information regarding individual participants that is acquired for the 
purpose of the evaluations described in Sec.  2516.840. The Corporation 
will disclose individual participant information only with the prior 
written consent of the participant. However, the Corporation may 
disclose aggregate participant information.
    (b) Grantees and subgrantees under this part must comply with the 
provisions of paragraph (a) of this section.

[[Page 697]]



PART 2517_COMMUNITY-BASED SERVICE-LEARNING PROGRAMS--Table of Contents



                     Subpart A_Eligibility To Apply

Sec.
2517.100 Who may apply for a direct grant from the Corporation?
2517.110 Who may apply for a subgrant from a Corporation grantee?

                      Subpart B_Use of Grant Funds

2517.200 How may grant funds be used?

                  Subpart C_Eligibility To Participate

2517.300 Who may participate in a community-based service-learning 
          program?

                     Subpart D_Application Contents

2517.400 What must a State Commission or grantmaking entity include in 
          an application for a grant?
2517.410 What must a qualified organization include in an application 
          for a grant or a subgrant?

                      Subpart E_Application Review

2517.500 How is an application reviewed?

                     Subpart F_Distribution of Funds

2517.600 How are funds for community-based service-learning programs 
          distributed?

                     Subpart G_Funding Requirements

2517.700 Are matching funds required?
2517.710 Are there limits on the use of funds?
2517.720 What is the length of a grant?
2517.730 May an applicant submit more than one application to the 
          Corporation for the same project at the same time?

                    Subpart H_Evaluation Requirements

2517.800 What are the evaluation requirements for community-based 
          programs?

    Authority: 42 U.S.C. 12541-12547.

    Source: 59 FR 13790, Mar. 23, 1994, unless otherwise noted.



                     Subpart A_Eligibility To Apply



Sec.  2517.100  Who may apply for a direct grant from the Corporation?

    (a) The following entities may apply for a direct grant from the 
Corporation: (1) A State Commission established under part 2550 of this 
chapter.
    (2) A grantmaking entity as defined in Sec.  2510.20 of this 
chapter.
    (3) A qualified organization as defined in Sec.  2515.20 of this 
chapter.
    (b) The types of grants for which each entity is eligible are 
described in Sec.  2517.200.



Sec.  2517.110  Who may apply for a subgrant from a Corporation grantee?

    Entities that may apply for a subgrant from a State Commission or 
grantmaking entity are qualified organizations that have entered into a 
local partnership with one or more--
    (a) Local educational agencies (LEAs);
    (b) Other qualified organizations; or
    (c) Both.



                      Subpart B_Use of Grant Funds



Sec.  2517.200  How may grant funds be used?

    Funds under a community-based Learn and Serve grant may be used for 
the purposes described in this section.
    (a) A State Commission or grantmaking entity may use funds--
    (1) To make subgrants to qualified organizations described in Sec.  
2517.110 to implement, operate, expand, or replicate a community-based 
service program that provides direct and demonstrable educational, 
public safety, human, or environmental service by participants, who must 
be school-age youth; and
    (2) To provide training and technical assistance to qualified 
organizations.
    (b)(1) A qualified organization may use funds under a direct grant 
or a subgrant to implement, operate, expand, or replicate a community-
based service program.
    (2) If a qualified organization receives a direct grant, its program 
must be carried out at multiple sites or be particularly innovative.

[[Page 698]]



                  Subpart C_Eligibility To Participate



Sec.  2517.300  Who may participate in a community-based 
service-learning program?

    School-age youth as defined in Sec.  2510.20 of this chapter may 
participate in a community-based program.



                     Subpart D_Application Contents



Sec.  2517.400  What must a State Commission or grantmaking entity include 
in an application for a grant?

    (a) In order to apply for a grant from the Corporation under this 
part, a State Commission or a grantmaking entity must submit the 
following: (1) A three-year plan for promoting service-learning through 
programs under this part. The plan must describe the types of community-
based program models proposed to be carried out during the first year.
    (2) A proposal containing the specific program, budget, and other 
information specified by the Corporation in the grant application 
package.
    (3) A description of how the applicant will coordinate its 
activities with the State Plan under Sec.  2550.80(a) of this chapter 
and with other federally-assisted activities, including a description of 
plans to meet and consult with the State Commission, if possible, and to 
provide a copy of the program application to the State Commission.
    (4) Assurances that the applicant will--
    (i) Keep such records and provide such information to the 
Corporation with respect to the programs as may be required for fiscal 
audits and program evaluation;
    (ii) Comply with the nonduplication, nondisplacement, and grievance 
procedure requirements of part 2540 of this chapter; and
    (iii) Ensure that, prior to placing a participant in a program, the 
entity carrying out the program will consult with the appropriate local 
labor organization, if any, representing employees in the area in which 
the program will be carried out that are engaged in the same or similar 
work as the work proposed to be carried out by the program, to prevent 
the displacement of those employees.
    (b) In addition, a grantmaking entity must submit information 
demonstrating that the entity will make grants for a program--
    (1) To carry out activities in two or more States, under 
circumstances in which those activities can be carried out more 
efficiently through one program than through two or more programs; and
    (2) To carry out the same activities, such as training activities or 
activities related to exchanging information on service experiences, 
through each of the projects assisted through the program.

[59 FR 13790, Mar. 23, 1994, as amended at 73 FR 53759, Sept. 17, 2008]



Sec.  2517.410  What must a qualified organization include in an application 
for a grant or a subgrant?

    (a) In order to apply to the Corporation for a direct grant, a 
qualified organization must submit the following: (1) A plan describing 
the goals and activities of the proposed program;
    (2) A proposal containing the specific program, budget, and other 
information specified by the Corporation in the grant application 
package; and
    (3) Assurances that the applicant will--
    (i) Keep such records and provide such information to the 
Corporation with respect to the program as may be required for fiscal 
audits and program evaluation;
    (ii) Comply with the nonduplication, nondisplacement, and grievance 
procedure requirements of part 2540 of this chapter; and
    (iii) Prior to placing a participant in the program, consult with 
the appropriate local labor organization, if any, representing employees 
in the area in which the program will be carried out who are engaged in 
the same or similar work as the work proposed to be carried out by the 
program, to prevent the displacement of those employees.
    (b) In order to apply to a State Commission or a grantmaking entity 
for a subgrant, a qualified organization must submit the following: (1) 
A plan describing the goals and activities of the proposed program; and

[[Page 699]]

    (2) Such specific program, budget, and other information as the 
Commission or entity reasonably requires.



                      Subpart E_Application Review



Sec.  2517.500  How is an application reviewed?

    In reviewing an application for a grant or a subgrant, the 
Corporation, a State Commission, or a grantmaking entity will apply the 
following criteria: (a) The quality of the program proposed.
    (b) The innovation of, and feasibility of replicating, the program.
    (c) The sustainability of the program, based on--
    (1) Strong and broad-based community support;
    (2) Multiple funding sources or private funding; and
    (3) Coordination with the State Plan under Sec.  2550.80(a) of this 
chapter and other federally-assisted activities.
    (d) The quality of the leadership of the program, past performance 
of the program, and the extent to which the program builds on existing 
programs.
    (e) The applicant's efforts--
    (1) To recruit participants from among residents of the communities 
in which projects would be conducted;
    (2) To ensure that the projects are open to participants of 
different ages, races, genders, ethnicities, abilities and disabilities, 
and economic backgrounds; and
    (3) To involve participants and community residents in the design, 
leadership, and operation of the program.
    (f) The extent to which projects would be located in areas that 
are--
    (1) Empowerment zones, redevelopment areas, or other areas with high 
concentrations of low-income people; or
    (2) Environmentally distressed.

[59 FR 13790, Mar. 23, 1994, as amended at 73 FR 53759, Sept. 17, 2008]



                     Subpart F_Distribution of Funds



Sec.  2517.600  How are funds for community-based service-learning 
programs distributed?

    All funds are distributed by the Corporation through competitive 
grants.



                     Subpart G_Funding Requirements



Sec.  2517.700  Are matching funds required?

    (a) Yes. The Corporation share of the cost of carrying out a program 
funded under this part may not exceed--
    (1) Ninety percent of the total cost for the first year for which 
the program receives assistance;
    (2) Eighty percent of the total cost for the second year;
    (3) Seventy percent of the total cost for the third year; and
    (4) Fifty percent of the total cost for the fourth year and any 
subsequent year.
    (b) In providing for the remaining share of the cost of carrying out 
a program, each recipient of assistance must provide for that share 
through a payment in cash or in kind, fairly evaluated, including 
facilities, equipment, or services, and may provide for that share 
through State sources, local sources, or Federal sources (other than 
funds made available under the national service laws).
    (c) However, the Corporation may waive the requirements of paragraph 
(b) of this section in whole or in part with respect to any program in 
any fiscal year if the Corporation determines that the waiver would be 
equitable due to lack of available financial resources at the local 
level.



Sec.  2517.710  Are there limits on the use of funds?

    Yes. The following limits apply to funds available under this part:
    (a)(1) Not more than five percent of the grant funds provided under 
this part for any fiscal year may be used to pay for administrative 
costs, as defined in Sec.  2510.20 of this chapter.
    (2) The distribution of administrative costs between the grant and 
any subgrant will be subject to the approval of the Corporation.
    (3) In applying the limitation on administrative costs the 
Corporation will approve one of the following methods in the award 
document:
    (i) Limit the amount or rate of indirect costs that may be paid with 
Corporation funds under a grant or

[[Page 700]]

subgrant to five percent of total Corporation funds expended, provided 
that--
    (A) Organizations that have an established indirect cost rate for 
Federal awards will be limited to this method; and
    (B) Unreimbursed indirect costs may be applied to meeting 
operational matching requirements under the Corporation's award;
    (ii) Specify that a fixed rate of five percent or less (not subject 
to supporting cost documentation) of total Corporation funds expended 
may be used to pay for administrative costs, provided that the fixed 
rate is in conjunction with an overall 15 percent administrative cost 
factor to be used for organizations that do not have established 
indirect cost rates; or
    (iii) Utilize such other method that the Corporation determines in 
writing is consistent with OMB guidance and other applicable 
requirements, helps minimize the burden on grantees or subgrantees, and 
is beneficial to grantees or subgrantees and the Federal Government.
    (b)(1) An SEA or Indian tribe must spend between ten and 15 percent 
of the grant to build capacity through training, technical assistance, 
curriculum development, and coordination activities.
    (2) The Corporation may waive this requirement in order to permit an 
SEA or a tribe to use between ten percent and 20 percent of the grant 
funds to build capacity. To be eligible to receive the waiver, the SEA 
or tribe must submit an application to the Corporation.
    (c) Funds made available under this part may not be used to pay any 
stipend, allowance, or other financial support to any participant in a 
service-learning program under this part except reimbursement for 
transportation, meals, and other reasonable out-of-pocket expenses 
directly related to participation in a program assisted under this part.

[63 FR 18137, Apr. 14, 1998]



Sec.  2517.720  What is the length of a grant?

    A grant under this part is for a period of up to three years, 
subject to satisfactory performance and annual appropriations.



Sec.  2517.730  May an applicant submit more than one application 
to the Corporation for the same project at the same time?

    No. The Corporation will reject an application for a project if an 
application for funding or educational awards for the same project is 
already pending before the Corporation.



                    Subpart H_Evaluation Requirements



Sec.  2517.800  What are the evaluation requirements for 
community-based programs?

    The evaluation requirements for recipients of grants and subgrants 
under part 2516 of this chapter, relating to school-based service-
learning programs, apply to recipients under this part.



PART 2518_SERVICE-LEARNING CLEARINGHOUSE--Table of Contents



Sec.
2518.100 What is the purpose of a Service-Learning Clearinghouse?
2518.110 What are the functions of a Service-Learning Clearinghouse?

    Authority: 42 U.S.C. 12653o.



Sec.  2518.100  What is the purpose of a Service-Learning Clearinghouse?

    The Corporation will provide financial assistance, from funds 
appropriated to carry out the activities listed under parts 2531 through 
2534 of this chapter, to public or private nonprofit organizations that 
have extensive experience with service-learning, including use of adult 
volunteers to foster service-learning, to establish a clearinghouse, 
which will carry out activities, either directly or by arrangement with 
another such organization, with respect to information about service-
learning.

[59 FR 13792, Mar. 23, 1994, as amended at 75 FR 51409, Aug. 20, 2010]



Sec.  2518.110  What are the functions of a Service-Learning Clearinghouse?

    An organization that receives assistance from funds appropriated to 
carry

[[Page 701]]

out the activities listed under parts 2531 through 2534 of this chapter 
may--
    (a) Assist entities carrying out State or local service-learning 
programs with needs assessments and planning;
    (b) Conduct research and evaluations concerning service-learning;
    (c)(1) Provide leadership development and training to State and 
local service-learning program administrators, supervisors, project 
sponsors, and participants; and
    (2) Provide training to persons who can provide the leadership 
development and training described in paragraph (c)(1) of this section;
    (d) Facilitate communication among entities carrying out service-
learning programs and participants in such programs;
    (e) Provide information, curriculum materials, and technical 
assistance relating to planning and operation of service-learning 
programs, to States and local entities eligible to receive financial 
assistance under this title;
    (f) Provide information regarding methods to make service-learning 
programs accessible to individuals with disabilities;
    (g)(1) Gather and disseminate information on successful service-
learning programs, components of such successful programs, innovative 
youth skills curricula related to service-learning, and service-learning 
projects; and
    (2) Coordinate the activities of the Clearinghouse with appropriate 
entities to avoid duplication of effort;
    (h) Make recommendations to State and local entities on quality 
controls to improve the quality of service-learning programs;
    (i) Assist organizations in recruiting, screening, and placing 
service-learning coordinators; and
    (j) Carry out such other activities as the Chief Executive Officer 
determines to be appropriate.

[59 FR 13792, Mar. 23, 1994, as amended at 75 FR 51409, Aug. 20, 2010]



PART 2519_HIGHER EDUCATION INNOVATIVE PROGRAMS FOR COMMUNITY SERVICE--
Table of Contents



               Subpart A_Purpose and Eligibility To Apply

Sec.
2519.100 What is the purpose of the Higher Education programs?
2519.110 Who may apply for a grant?
2519.120 What is the Federal Work-Study requirement?

                      Subpart B_Use of Grant Funds

2519.200 How may grant funds be used?

             Subpart C_Participant Eligibility and Benefits

2519.300 Who may participate in a Higher Education program?
2519.310 Is a participant eligible to receive an AmeriCorps educational 
          award?
2519.320 May a program provide a stipend to a participant?

                     Subpart D_Application Contents

2519.400 What must an applicant include in an application for a grant?

                      Subpart E_Application Review

2519.500 How does the Corporation review an application?

                     Subpart F_Distribution of Funds

2519.600 How are funds for Higher Education programs distributed?

                     Subpart G_Funding Requirements

2519.700 Are matching funds required?
2519.710 Are there limits on the use of funds?
2519.720 What is the length of a grant?
2519.730 May an applicant submit more than one application to the 
          Corporation for the same project at the same time?

                    Subpart H_Evaluation Requirements

2519.800 What are the evaluation requirements for Higher Education 
          programs?

    Authority: 42 U.S.C. 12561; 42 U.S.C. 12645g.

    Source: 59 FR 13792, Mar. 23, 1994, unless otherwise noted.

[[Page 702]]



               Subpart A_Purpose and Eligibility To Apply



Sec.  2519.100  What is the purpose of the Higher Education programs?

    The purpose of the higher education innovative programs for 
community service is to expand participation in community service by 
supporting high-quality, sustainable community service programs carried 
out through institutions of higher education, acting as civic 
institutions helping to meet the educational, public safety, human, and 
environmental needs of the communities in which the programs operate.



Sec.  2519.110  Who may apply for a grant?

    The following entities may apply for a grant from the Corporation: 
(a) An institution of higher education.
    (b) A consortium of institutions of higher education.
    (c) A higher education partnership, as defined in Sec.  2510.20 of 
this chapter.



Sec.  2519.120  What is the Federal Work-Study requirement?

    To be eligible for assistance under this part, an institution of 
higher education must demonstrate that it meets the minimum requirements 
under section 443(b)(2)(A) of the Higher Education Act of 1965 (42 
U.S.C. 2753(b)(2)(A)) relating to the participation of students employed 
under part C of title IV of the Higher Education Act of 1965 (42 U.S.C. 
2751 et seq.) (relating to Federal Work-Study programs) in community 
service activities, or has received a waiver of those requirements from 
the Secretary of Education.

[74 FR 46505, Sept. 10, 2009]



                      Subpart B_Use of Grant Funds



Sec.  2519.200  How may grant funds be used?

    Funds under a higher education program grant may be used for the 
following activities: (a) Enabling an institution of higher education, a 
higher education partnership or a consortium to create or expand an 
organized community service program that--
    (1) Engenders a sense of social responsibility and commitment to the 
community in which the institution is located; and
    (2) Provides projects for the participants described in Sec.  
2519.300.
    (b) Supporting student-initiated and student-designed community 
service projects.
    (c) Strengthening the leadership and instructional capacity of 
teachers at the elementary, secondary, and postsecondary levels with 
respect to service-learning by--
    (1) Including service-learning as a key component of the preservice 
teacher education of the institution; and
    (2) Encouraging the faculty of the institution to use service-
learning methods throughout the curriculum.
    (d) Facilitating the integration of community service carried out 
under the grant into academic curricula, including integration of 
clinical programs into the curriculum for students in professional 
schools, so that students may obtain credit for their community service 
projects.
    (e) Supplementing the funds available to carry out work-study 
programs under part C of title IV of the Higher Education Act of 1965 
(42 U.S.C. 2751 et seq.) to support service-learning and community 
service.
    (f) Strengthening the service infrastructure within institutions of 
higher education in the United States that supports service-learning and 
community service.
    (g) Providing for the training of teachers, prospective teachers, 
related education personnel, and community leaders in the skills 
necessary to develop, supervise, and organize service-learning.



             Subpart C_Participant Eligibility and Benefits



Sec.  2519.300  Who may participate in a Higher Education program?

    Students, faculty, administration and staff of an institution, as 
well as residents of the community may participate. For the purpose of 
this part, the term ``student'' means an individual who is enrolled in 
an institution of higher education on a full-time or part-time basis.

[[Page 703]]



Sec.  2519.310  Is a participant eligible to receive an AmeriCorps 
educational award?

    In general, no. However, certain positions in programs funded under 
this part may qualify as approved AmeriCorps positions. The Corporation 
will establish eligibility requirements for these positions as a part of 
the application package.



Sec.  2519.320  May a program provide a stipend to a participant?

    (a) A program may provide a stipend for service activities for a 
participant who is a student if the provision of stipends in reasonable 
in the context of a program's design and objectives.
    (1) A program may not provide a stipend to a student who is 
receiving academic credit for service activities unless the service 
activities require a substantial time commitment beyond that expected 
for the credit earned.
    (2) A participant who is earning money for service activities under 
the work-study program described in Sec.  2519.200(e) may not receive an 
additional stipend from funds under this part.
    (b) Consistent with the AmeriCorps program requirements in Sec.  
2522.100 of this chapter, a program with participants serving in 
approved full-time AmeriCorps positions must ensure the provision of a 
living allowance and, if necessary, health care and child care to those 
participants. A program may, but is not required to, provide a prorated 
living allowance to individuals participating in approved AmeriCorps 
positions on a part-time basis, consistent with the AmeriCorps program 
requirements in Sec.  2522.240 of this chapter.



                     Subpart D_Application Contents



Sec.  2519.400  What must an applicant include in an application for a grant?

    In order to apply to the Corporation for a grant, an applicant must 
submit the following: (a) A plan describing the goals and activities of 
the proposed program.
    (b) The specific program, budget, and other information and 
assurances specified by the Corporation in the grant application 
package.
    (c) Assurances that the applicant will--
    (1) Keep such records and provide such information to the 
Corporation with respect to the program as may be required for fiscal 
audits and program evaluation;
    (2) Comply with the criminal history check requirements for all 
grant-funded staff employed after October 1, 2009, in accordance with 45 
CFR 2540.200-207, as well as the nonduplication, nondisplacement, and 
grievance procedure requirements of Part 2540.
    (3) Prior to the placement of a participant in the program, consult 
with the appropriate local labor organization, if any, representing 
employees in the area who are engaged in the same or similar work as the 
work proposed to be carried out by the program, to prevent the 
displacement and protect the rights of those employees; and
    (4) Comply with any other assurances that the Corporation deems 
necessary.

[59 FR 13792, Mar. 23, 1994, as amended at 74 FR 46505, Sept. 10, 2009]



                      Subpart E_Application Review



Sec.  2519.500  How does the Corporation review an application?

    (a) The Corporation will review an application submitted under this 
part on the basis of the quality, innovation, replicability, and 
sustainability of the proposed program and such other criteria as the 
Corporation establishes in an application package.
    (b) In addition, in reviewing applications submitted under this 
part, the Corporation will take into consideration whether proposed 
programs--
    (1) Demonstrate the commitment of the institution of higher 
education, other than by demonstrating the commitment of its students, 
to supporting the community service projects carried out under the 
program;
    (2) Specify how the institution will promote faculty, 
administration, and staff participation in the community service 
projects;
    (3) Specify the manner in which the institution will provide service 
to the community through organized programs, including, where 
appropriate, clinical programs for students in professional schools and 
colleges;

[[Page 704]]

    (4) Describe any higher education partnership that will participate 
in the community service projects, such as a higher education 
partnership comprised of the institution, a student organization, a 
community-based agency, a local government agency, or a nonprofit entity 
that serves or involves school-age youth, older adults, low-income 
communities, a department of the institution, or a group of faculty 
comprised of different departments, schools, or colleges at the 
institution;
    (5) Demonstrate community involvement in the development of the 
proposal and the extent to which the proposal will contribute to the 
goals of the involved community members;
    (6) Demonstrate a commitment to perform community service projects 
in underserved urban and rural communities;
    (7) Describe research on effective strategies and methods to improve 
service utilized in the design of the projects;
    (8) Specify that the institution will use funds under this part to 
strengthen the infrastructure in institutions of higher education;
    (9) With respect to projects involving delivery of service, specify 
projects that involve leadership development of school-age youth; or
    (10) Describe the needs that the proposed projects are designed to 
address, such as housing, economic development, infrastructure, health 
care, job training, education, crime prevention, urban planning, 
transportation, information technology, or child welfare.
    (c) In addition, the Corporation may designate additional review 
criteria in an application notice that will be used in selecting 
programs.

[74 FR 46505, Sept. 10, 2009]



                     Subpart F_Distribution of Funds



Sec.  2519.600  How are funds for Higher Education programs distributed?

    All funds under this part are distributed by the Corporation through 
grants or by contract.



                     Subpart G_Funding Requirements



Sec.  2519.700  Are matching funds required?

    (a) Yes. The Corporation share of the cost of carrying out a program 
funded under this part may not exceed 50 percent.
    (b) In providing for the remaining share of the cost of carrying out 
a program, each recipient of assistance must provide for that share 
through a payment in cash or in-kind, fairly evaluated, including 
facilities, equipment, or services, and may provide for that share 
through State sources, local sources (including private funds or donated 
services) or Federal sources (other than funds made available under the 
national service laws).
    (c) However, the Corporation may waive the requirements of paragraph 
(b) of this section in whole or in part with respect to any program in 
any fiscal year if the Corporation determines that the waiver would be 
equitable due to lack of available financial resources at the local 
level.

[59 FR 13792, Mar. 23, 1994, as amended at 74 FR 46506, Sept. 10, 2009]



Sec.  2519.710  Are there limits on the use of funds?

    Yes. The following limits apply to funds available under this part:
    (a)(1) Not more than six percent of the grant funds provided under 
this part for any fiscal year may be used to pay for administrative 
costs, as defined in Sec.  2510.20 of this chapter.
    (2) The distribution of administrative costs between the grant and 
any subgrant will be subject to the approval of the Corporation.
    (3) In applying the limitation on administrative costs the 
Corporation will approve one of the following methods in the award 
document:
    (i) Limit the amount or rate of indirect costs that may be paid with 
Corporation funds under a grant or subgrant to six percent of total 
Corporation funds expended, provided that--
    (A) Organizations that have an established indirect cost rate for 
Federal awards will be limited to this method; and

[[Page 705]]

    (B) Unreimbursed indirect costs may be applied to meeting 
operational matching requirements under the Corporation's award;
    (ii) Specify that a fixed rate of six percent or less (not subject 
to supporting cost documentation) of total Corporation funds expended 
may be used to pay for administrative costs, provided that the fixed 
rate is in conjunction with an overall 15 percent administrative cost 
factor to be used for organizations that do not have established 
indirect cost rates; or
    (iii) Utilize such other method that the Corporation determines in 
writing is consistent with OMB guidance and other applicable 
requirements, helps minimize the burden on grantees or subgrantees, and 
is beneficial to grantees or subgrantees and the Federal Government.

[63 FR 18138, Apr. 14, 1998, as amended at 74 FR 46506, Sept. 10, 2009]



Sec.  2519.720  What is the length of a grant?

    A grant under this part is for a period of up to three years, 
subject to satisfactory performance and annual appropriations.



Sec.  2519.730  May an applicant submit more than one application 
to the Corporation for the same project at the same time?

    No. The Corporation will reject an application for a project if an 
application for funding or educational awards for the same project is 
already pending before the Corporation.



                    Subpart H_Evaluation Requirements



Sec.  2519.800  What are the evaluation requirements 
for Higher Education programs?

    The monitoring and evaluation requirements for recipients of grants 
and subgrants under part 2516 of this chapter, relating to school-based 
service-learning programs, apply to recipients under this part.



PART 2520_GENERAL PROVISIONS: AMERICORPS SUBTITLE C PROGRAMS--Table of Contents



Sec.
2520.5 What definitions apply to this part?
2520.10 What is the purpose of the AmeriCorps subtitle C program 
          described in parts 2520 through 2524 of this chapter?
2520.20 What service activities may I support with my grant?
2520.25 What direct service activities may AmeriCorps members perform?
2520.30 What capacity-building activities may AmeriCorps member perform?
2520.35 Must my program recruit or support volunteers?
2520.40 Under what circumstances may AmeriCorps members in my program 
          raise resources?
2520.45 How much time may an AmeriCorps member spend fundraising?
2520.50 How much time may AmeriCorps members in my program spend in 
          education and training activities?
2520.55 When may my organization collect fees for services provided by 
          AmeriCorps members?
2520.60 What government-wide requirements apply to staff fundraising 
          under my AmeriCorps grant?
2520.65 What activities are prohibited in AmeriCorps subtitle C 
          programs?

    Authority: 42 U.S.C. 12571-12595.

    Source: 59 FR 13794, Mar. 23, 1994, unless otherwise noted.



Sec.  2520.5  What definitions apply to this part?

    You. For this part, you refers to the grantee or an organization 
operating an AmeriCorps program.

[70 FR 39596, July 8, 2005]



Sec.  2520.10  What is the purpose of the AmeriCorps subtitle C program 
described in parts 2520 through 2524 of this chapter?

    The purpose of the AmeriCorps subtitle C program is to provide 
financial assistance under subtitle C of the National and Community 
Service Act to support AmeriCorps programs that address educational, 
public safety, human, or environmental needs through national and 
community service, and to provide AmeriCorps education awards to 
participants in such programs.

[67 FR 45359, July 9, 2002]

[[Page 706]]



Sec.  2520.20  What service activities may I support with my grant?

    (a) Your grant must initiate, improve, or expand the ability of an 
organization and community to provide services to address local unmet 
environmental, educational, public safety (including disaster 
preparedness and response), or other human needs.
    (b) You may use your grant to support AmeriCorps members:
    (1) Performing direct service activities that meet local needs.
    (2) Performing capacity-building activities that improve the 
organizational and financial capability of nonprofit organizations and 
communities to meet local needs by achieving greater organizational 
efficiency and effectiveness, greater impact and quality of impact, 
stronger likelihood of successful replicability, or expanded scale.

[70 FR 39596, July 8, 2005]



Sec.  2520.25  What direct service activities may AmeriCorps members perform?

    (a) The AmeriCorps members you support under your grant may perform 
direct service activities that will advance the goals of your program, 
that will result in a specific identifiable service or improvement that 
otherwise would not be provided, and that are included in, or consistent 
with, your Corporation-approved grant application.
    (b) Your members' direct service activities must address local 
environmental, educational, public safety (including disaster 
preparedness and response), or other human needs.
    (c) Direct service activities generally refer to activities that 
provide a direct, measurable benefit to an individual, a group, or a 
community.
    (d) Examples of the types of direct service activities AmeriCorps 
members may perform include, but are not limited to, the following:
    (1) Tutoring children in reading;
    (2) Helping to run an after-school program;
    (3) Engaging in community clean-up projects;
    (4) Providing health information to a vulnerable population;
    (5) Teaching as part of a professional corps;
    (6) Providing relief services to a community affected by a disaster; 
and
    (7) Conducting a neighborhood watch program as part of a public 
safety effort.

[70 FR 39597, July 8, 2005]



Sec.  2520.30  What capacity-building activities may 
AmeriCorps members perform?

    Capacity-building activities that AmeriCorps members perform should 
enhance the mission, strategy, skills, and culture, as well as systems, 
infrastructure, and human resources of an organization that is meeting 
unmet community needs. Capacity-building activities help an organization 
gain greater independence and sustainability.
    (a) The AmeriCorps members you support under your grant may perform 
capacity-building activities that advance your program's goals and that 
are included in, or consistent with, your Corporation-approved grant 
application.
    (b) Examples of capacity-building activities your members may 
perform include, but are not limited to, the following:
    (1) Strengthening volunteer management and recruitment, including:
    (i) Enlisting, training, or coordinating volunteers;
    (ii) Helping an organization develop an effective volunteer 
management system;
    (iii) Organizing service days and other events in the community to 
increase citizen engagement;
    (iv) Promoting retention of volunteers by planning recognition 
events or providing ongoing support and follow-up to ensure that 
volunteers have a high-quality experience; and
    (v) Assisting an organization in reaching out to individuals and 
communities of different backgrounds when encouraging volunteering to 
ensure that a breadth of experiences and expertise is represented in 
service activities.
    (2) Conducting outreach and securing resources in support of service 
activities that meet specific needs in the community;
    (3) Helping build the infrastructure of the sponsoring organization, 
including:
    (i) Conducting research, mapping community assets, or gathering 
other

[[Page 707]]

information that will strengthen the sponsoring organization's ability 
to meet community needs;
    (ii) Developing new programs or services in a sponsoring 
organization seeking to expand;
    (iii) Developing organizational systems to improve efficiency and 
effectiveness;
    (iv) Automating organizational operations to improve efficiency and 
effectiveness;
    (v) Initiating or expanding revenue-generating operations directly 
in support of service activities; and
    (vi) Supporting staff and board education.
    (4) Developing collaborative relationships with other organizations 
working to achieve similar goals in the community, such as:
    (i) Community organizations, including faith-based organizations;
    (ii) Foundations;
    (iii) Local government agencies;
    (iv) Institutions of higher education; and
    (v) Local education agencies or organizations.

[70 FR 39597, July 8, 2005]



Sec.  2520.35  Must my program recruit or support volunteers?

    (a) Unless the Corporation or the State commission, as appropriate, 
approves otherwise, some component of your program that is supported 
through the grant awarded by the Corporation must involve recruiting or 
supporting volunteers.
    (b) If you demonstrate that requiring your program to recruit or 
support volunteers would constitute a fundamental alteration to your 
program structure, the Corporation (or the State commission for formula 
programs) may waive the requirement in response to your written request 
for such a waiver in the grant application.

[70 FR 39597, July 8, 2005]



Sec.  2520.40  Under what circumstances may AmeriCorps members 
in my program raise resources?

    (a) AmeriCorps members may raise resources directly in support of 
your program's service activities.
    (b) Examples of fundraising activities AmeriCorps members may 
perform include, but are not limited to, the following:
    (1) Seeking donations of books from companies and individuals for a 
program in which volunteers teach children to read;
    (2) Writing a grant proposal to a foundation to secure resources to 
support the training of volunteers;
    (3) Securing supplies and equipment from the community to enable 
volunteers to help build houses for low-income individuals;
    (4) Securing financial resources from the community to assist in 
launching or expanding a program that provides social services to the 
members of the community and is delivered, in whole or in part, through 
the members of a community-based organization;
    (5) Seeking donations from alumni of the program for specific 
service projects being performed by current members.
    (c) AmeriCorps members may not:
    (1) Raise funds for living allowances or for an organization's 
general (as opposed to project) operating expenses or endowment;
    (2) Write a grant application to the Corporation or to any other 
Federal agency.

[70 FR 39597, July 8, 2005]



Sec.  2520.45  How much time may an AmeriCorps member spend fundraising?

    An AmeriCorps member may spend no more than ten percent of his or 
her originally agreed-upon term of service, as reflected in the member 
enrollment in the National Service Trust, performing fundraising 
activities, as described in Sec.  2520.40.

[70 FR 39597, July 8, 2005]



Sec.  2520.50  How much time may AmeriCorps members in my program spend 
in education and training activities?

    (a) No more than 20 percent of the aggregate of all AmeriCorps 
member service hours in your program, as reflected in the member 
enrollments in the National Service Trust, may be spent in education and 
training activities.
    (b) Capacity-building activities and direct service activities do 
not count

[[Page 708]]

towards the 20 percent cap on education and training activities.

[70 FR 39597, July 8, 2005]



Sec.  2520.55  When may my organization collect fees for services 
provided by AmeriCorps members?

    You may, where appropriate, collect fees for direct services 
provided by AmeriCorps members if:
    (a) The service activities conducted by the members are allowable, 
as defined in this part, and do not violate the non-displacement 
provisions in Sec.  2540.100 of these regulations; and
    (b) You use any fees collected to finance your non-Corporation 
share, or as otherwise authorized by the Corporation.

[70 FR 39597, July 8, 2005]



Sec.  2520.60  What government-wide requirements apply to staff fundraising 
under my AmeriCorps grant?

    You must follow OMB Guidance published at 2 CFR part 200 and 
Corporation implementing regulations at 2 CFR Chapter XXII. In 
particular, see 2 CFR 200.442--Fundraising and Investment Management 
Costs.

[79 FR 76077, Dec. 19, 2014]



Sec.  2520.65  What activities are prohibited in AmeriCorps 
subtitle C programs?

    (a) While charging time to the AmeriCorps program, accumulating 
service or training hours, or otherwise performing activities supported 
by the AmeriCorps program or the Corporation, staff and members may not 
engage in the following activities:
    (1) Attempting to influence legislation;
    (2) Organizing or engaging in protests, petitions, boycotts, or 
strikes;
    (3) Assisting, promoting, or deterring union organizing;
    (4) Impairing existing contracts for services or collective 
bargaining agreements;
    (5) Engaging in partisan political activities, or other activities 
designed to influence the outcome of an election to any public office;
    (6) Participating in, or endorsing, events or activities that are 
likely to include advocacy for or against political parties, political 
platforms, political candidates, proposed legislation, or elected 
officials;
    (7) Engaging in religious instruction, conducting worship services, 
providing instruction as part of a program that includes mandatory 
religious instruction or worship, constructing or operating facilities 
devoted to religious instruction or worship, maintaining facilities 
primarily or inherently devoted to religious instruction or worship, or 
engaging in any form of religious proselytization;
    (8) Providing a direct benefit to--
    (i) A business organized for profit;
    (ii) A labor union;
    (iii) A partisan political organization;
    (iv) A nonprofit organization that fails to comply with the 
restrictions contained in section 501(c)(3) of the Internal Revenue Code 
of 1986 except that nothing in this section shall be construed to 
prevent participants from engaging in advocacy activities undertaken at 
their own initiative;
    (v) An organization engaged in the religious activities described in 
paragraph (g) of this section, unless Corporation assistance is not used 
to support those religious activities; and
    (9) Conducting a voter registration drive or using Corporation funds 
to conduct a voter registration drive;
    (10) Providing abortion services or referrals for receipt of such 
services; and
    (11) Such other activities as the Corporation may prohibit.
    (b) Individuals may exercise their rights as private citizens and 
may participate in the activities listed above on their initiative, on 
non-AmeriCorps time, and using non-Corporation funds. Individuals should 
not wear the AmeriCorps logo while doing so.

[67 FR 45359, July 9, 2002. Redesignated at 70 FR 39597, July 8, 2005; 
73 FR 53759, Sept. 17, 2008; 74 FR 46506, Sept. 10, 2009]



PART 2521_ELIGIBLE AMERICORPS SUBTITLE C PROGRAM APPLICANTS 
AND TYPES OF GRANTS AVAILABLE FOR AWARD--Table of Contents



Sec.
2521.5 What definitions apply to this part?

[[Page 709]]

2521.10 Who may apply to receive an AmeriCorps subtitle C grant?
2521.20 What types of AmeriCorps subtitle C program grants are available 
          for award?
2521.30 How will AmeriCorps subtitle C program grants be awarded?

                      Program Matching Requirements

2521.35 Who must comply with matching requirements?
2521.40 What are the matching requirements?
2521.45 What are the limitations on the Federal government's share of 
          program costs?
2521.50 If I am an Indian Tribe, to what extent may I use tribal funds 
          toward my share of costs?
2521.60 To what extent must my share of program costs increase over 
          time?
2521.70 To what extent may the Corporation waive the matching 
          requirements in Sec. Sec.  2521.45 and 2521.60 of this part?
2521.80 What matching level applies if my program was funded in the past 
          but has not recently received an AmeriCorps grant?
2521.90 If I am a new or replacement legal applicant for an existing 
          program, what will my matching requirements be?
2521.95 To what extent may I use grant funds for administrative costs?

    Authority: 42 U.S.C. 12571-12595.

    Source: 59 FR 13794, Mar. 23, 1994, unless otherwise noted.



Sec.  2521.5  What definitions apply to this part?

    You. For this part, you refers to the grantee, unless otherwise 
noted.

[70 FR 39598, July 8, 2005]



Sec.  2521.10  Who may apply to receive an AmeriCorps subtitle C grant?

    (a) States (including Territories), subdivisions of States, Indian 
tribes, public or private nonprofit organizations (including religious 
organizations and labor organizations), and institutions of higher 
education are eligible to apply for AmeriCorps subtitle C grants. 
However, the fifty States, the District of Columbia and Puerto Rico must 
first receive Corporation authorization for the use of a State 
Commission or alternative administrative or transitional entity pursuant 
to part 2550 of this chapter in order to be eligible.
    (b) The Corporation may also enter into contracts or cooperative 
agreements for AmeriCorps assistance with Federal agencies that are 
Executive Branch agencies or departments. Bureaus, divisions, and local 
and regional offices of such departments and agencies may only receive 
assistance pursuant to a contract or agreement with the central 
department or agency. The requirements relating to Federal agencies are 
described in part 2523 of this chapter.

[59 FR 13794, Mar. 23, 1994, as amended at 67 FR 45360, July 9, 2002]



Sec.  2521.20  What types of AmeriCorps subtitle C program grants 
are available for award?

    The Corporation may make the following types of grants to eligible 
applicants. The requirements of this section will also apply to any 
State or other applicant receiving assistance under this part that 
proposes to conduct a grant program using the assistance to support 
other national or community service programs.
    (a) Planning grants--(1) Purpose. The purpose of a planning grant is 
to assist an applicant in completing the planning necessary to implement 
a sound concept that has already been developed.
    (2) Eligibility. (i) States may apply directly to the Corporation 
for planning grants.
    (ii) Subdivisions of States, Indian Tribes, public or private 
nonprofit organizations (including religious organizations and labor 
organizations), and institutions of higher education may apply either to 
a State or directly to the Corporation for planning grants.
    (3) Duration. A planning grant will be negotiated for a term not to 
exceed one year.
    (b) Operational grants--(1) Purpose. The purpose of an operational 
grant is to fund an organization that is ready to establish, operate, or 
expand an AmeriCorps program. An operational grant may include 
AmeriCorps educational awards. An operational grant may also include a 
short planning period of up to six months, if necessary, to implement a 
program.
    (2) Eligibility. (i) States may apply directly to the Corporation 
for operational grants.

[[Page 710]]

    (ii) Subdivisions of States, Indian Tribes, public or private 
nonprofit organizations (including religious organizations and labor 
organizations), and institutions of higher education may apply either to 
a State or directly to the Corporation for operational grants. The 
Corporation may limit the categories of applicants eligible to apply 
directly to the Corporation for assistance under this section consistent 
with its National priorities.
    (3) Duration. An operational grant will be negotiated for a term not 
to exceed three years. Within a three-year term, renewal funding will be 
contingent upon periodic assessment of program quality, progress to 
date, and availability of Congressional appropriations.
    (c) Replication Grants. The Corporation may provide assistance for 
the replication of an existing national service program to another 
geographical location.
    (d) Training, technical assistance and other special grants--(1) 
Purpose. The purpose of these grants is to ensure broad access to 
AmeriCorps programs for all Americans, including those with 
disabilities; support disaster relief efforts; assist efforts to secure 
private support for programs through challenge grants; and ensure 
program quality by supporting technical assistance and training 
programs.
    (2) Eligibility. Eligibility varies and is detailed under 45 CFR 
part 2524, ``Technical Assistance and Other Special Grants.''
    (3) Duration. Grants will be negotiated for a renewable term of up 
to three years.

[59 FR 13794, Mar. 23, 1994, as amended at 67 FR 45360, July 9, 2002]



Sec.  2521.30  How will AmeriCorps subtitle C program grants be awarded?

    In any fiscal year, the Corporation will award AmeriCorps subtitle C 
program grants as follows:
    (a) Grants to State Applicants. (1) For the purposes of this 
section, the term ``State'' means the fifty States, Puerto Rico, and the 
District of Columbia.
    (2) One-third of the funds available under this part and a 
corresponding allotment of AmeriCorps educational awards, as specified 
by the Corporation, will be distributed according to a population-based 
formula to the 50 States, Puerto Rico and the District of Columbia if 
they have applications approved by the Corporation.
    (3) At least one-third of funds available under this part and an 
appropriate number of AmeriCorps awards, as determined by the 
Corporation, will be awarded to States on a competitive basis. In order 
to receive these funds, a State must receive funds under paragraphs 
(a)(2) or (b)(1) of this section in the same fiscal year.
    (4) In making subgrants with funds awarded by formula or competition 
under paragraphs (a)(2) or (3) of this section, a State must ensure that 
a minimum of 50 percent of funds going to States will be used for 
programs that operate in the areas of need or on Federal or other public 
lands, and that place a priority on recruiting participants who are 
residents in high need areas, or on Federal or other public lands. The 
Corporation may waive this requirement for an individual State if at 
least 50 percent of the total amount of assistance to all States will be 
used for such programs.
    (b) Grants to Applicants other than States. (1) One percent of 
available funds will be distributed to the U.S. Territories \1\ that 
have applications approved by the Corporation according to a population-
based formula. \2\
---------------------------------------------------------------------------

    \1\ The United States Virgin Islands, Guam, American Samoa, and the 
Commonwealth of the Northern Mariana Islands.
    \2\ The amount allotted as a grant to each such territory or 
possession is equal to the ratio of each such Territory's population to 
the population of all such territories multiplied by the amount of the 
one percent set-aside.
---------------------------------------------------------------------------

    (2) One percent of available funds will be reserved for distribution 
to Indian tribes on a competitive basis.
    (3) The Corporation will use any funds available under this part 
remaining after the award of the grants described in paragraphs (a) and 
(b)(1) and (2) of this section to make direct competitive grants to 
subdivisions of States, Indian tribes, public or private nonprofit 
organizations (including religious organizations and labor 
organizations), institutions of higher education, and Federal agencies. 
No more than

[[Page 711]]

one-third of the these remaining funds may be awarded to Federal 
agencies.
    (c) Allocation of AmeriCorps educational awards only. The 
Corporation will determine on an annual basis the appropriate number of 
educational awards to make available for eligible applicants who have 
not applied for program assistance.
    (d) Effect of States' or Territories' failure to apply. If a State 
or U.S. Territory does not apply for or fails to give adequate notice of 
its intent to apply for a formula-based grant as announced by the 
Corporation and published in applications and the Notice of Funds 
Availability, the Corporation will use the amount of that State's 
allotment to make grants to eligible entities to carry out AmeriCorps 
programs in that State or Territory. Any funds remaining from that 
State's allotment after making such grants will be reallocated to the 
States, Territories, and Indian tribes with approved AmeriCorps 
applications at the Corporation's discretion.
    (e) Effect of rejection of State application. If a State's 
application for a formula-based grant is ultimately rejected by the 
Corporation pursuant to Sec.  2522.320 of this chapter, the State's 
allotment will be available for redistribution by the Corporation to the 
States, Territories, and Indian Tribes with approved AmeriCorps 
applications as the Corporation deems appropriate.
    (f) The Corporation will make grants for training, technical 
assistance and other special programs described in part 2524 of this 
chapter at the Corporation's discretion.

[59 FR 13794, Mar. 23, 1994, as amended at 63 FR 18138, Apr. 14, 1998; 
67 FR 45360, July 9, 2002; 70 FR 39598, July 8, 2005; 73 FR 53759, Sept. 
17, 2008]

                      Program Matching Requirements



Sec.  2521.35  Who must comply with matching requirements?

    (a) The matching requirements described in Sec. Sec.  2521.40 
through 2521.95 apply to you if you are a subgrantee of a State 
commission or a direct program grantee of the Corporation. These 
requirements do not apply to Education Award Programs.
    (b) If you are a State commission, you must ensure that your 
grantees meet the match requirements established in this part, and you 
are also responsible for meeting an aggregate overall match based on 
your grantees' individual match requirements.

[70 FR 39598, July 8, 2005; 70 FR 48882, Aug. 22, 2005]



Sec.  2521.40  What are the matching requirements?

    If you are subject to matching requirements under Sec.  2521.35, you 
must adhere to the following:
    (a) Basic match: At a minimum, you must meet the basic match 
requirements as articulated in Sec.  2521.45.
    (b) Regulatory match: In addition to the basic requirements under 
paragraph (a) of this section, you must provide an overall level of 
matching funds according to the schedule in Sec.  2521.60(a), or Sec.  
2521.60(b) if applicable.
    (c) Budgeted match: To the extent that the match in your approved 
budget exceeds your required match levels under paragraph (a) or (b) of 
this section, any failure to provide the amount above your regulatory 
match but below your budgeted match will be considered as a measure of 
past performance in subsequent grant competitions.

[70 FR 39598, July 8, 2005]



Sec.  2521.45  What are the limitations on the Federal government's share 
of program costs?

    The limitations on the Federal government's share are different--in 
type and amount--for member support costs and program operating costs.
    (a) Member support: The Federal share, including Corporation and 
other Federal funds, of member support costs, which include the living 
allowance required under Sec.  2522.240(b)(1), FICA, unemployment 
insurance (if required under State law), worker's compensation (if 
required under State law), is limited as follows:
    (1) The Federal share of the living allowance may not exceed 85 
percent of the minimum living allowance required under Sec.  
2522.240(b)(1), and 85 percent of other member support costs.
    (2) If you are a professional corps described in Sec.  
2522.240(b)(2)(i), you may not use Corporation funds for the living 
allowance.

[[Page 712]]

    (3) Your share of member support costs must be non-Federal cash.
    (4) The Corporation's share of health care costs may not exceed 85 
percent.
    (b) Program operating costs: The Corporation share of program 
operating costs may not exceed 67 percent. These costs include 
expenditures (other than member support costs described in paragraph (a) 
of this section) such as staff, operating expenses, internal evaluation, 
and administration costs.
    (1) You may provide your share of program operating costs with cash, 
including other Federal funds (as long as the other Federal agency 
permits its funds to be used as match), or third party in-kind 
contributions.
    (2) Contributions, including third party in-kind must:
    (i) Be verifiable from your records;
    (ii) Not be included as contributions for any other Federally 
assisted program;
    (iii) Be necessary and reasonable for the proper and efficient 
accomplishment of your program's objectives; and
    (iv) Be allowable under applicable OMB cost principles.
    (3) You may not include the value of direct community service 
performed by volunteers, but you may include the value of services 
contributed by volunteers to your organizations for organizational 
functions such as accounting, audit, and training of staff and 
AmeriCorps programs.

[70 FR 39598, July 8, 2005]



Sec.  2521.50  If I am an Indian Tribe, to what extent may I use tribal funds 
towards my share of costs?

    If you are an Indian Tribe that receives tribal funds through Public 
Law 93-638 (the Indian Self-Determination and Education Assistance Act), 
those funds are considered non-Federal and you may use them towards your 
share of costs, including member support costs.

[70 FR 39598, July 8, 2005]



Sec.  2521.60  To what extent must my share of program costs 
increase over time?

    Except as provided in paragraph (b) of this section, if your program 
continues to receive funding after an initial three-year grant period, 
you must continue to meet the minimum requirements in Sec.  2541.45 of 
this part. In addition, your required share of program costs, including 
member support and operating costs, will incrementally increase to a 50 
percent overall share by the tenth year and any year thereafter that you 
receive a grant, without a break in funding of five years or more. A 50 
percent overall match means that you will be required to match $1 for 
every $1 you receive from the Corporation.
    (a) Minimum Organization Share: (1) Subject to the requirements of 
Sec.  2521.45 of this part, and except as provided in paragraph (b) of 
this section, your overall share of program costs will increase as of 
the fourth consecutive year that you receive a grant, according to the 
following timetable:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                              Year 1     Year 2     Year 3     Year 4     Year 5     Year 6     Year 7     Year 8     Year 9    Year 10
                                            (percent)  (percent)  (percent)  (percent)  (percent)  (percent)  (percent)  (percent)  (percent)  (percent)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Minimum member support....................        15         15         15         15         15         15         15         15         15         15
Minimum operating costs...................        33         33         33         33         33         33         33         33         33         33
Minimum overall share.....................       N/A        N/A        N/A         26         30         34         38         42         46         50
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (2) A grantee must have contributed matching resources by the end of 
a grant period in an amount equal to the combined total of the minimum 
overall annual match for each year of the grant period, according to the 
table in paragraph (a)(1) of this section.
    (3) A State commission may meet its match based on the aggregate of 
its grantees' individual match requirements.
    (b) Alternative match requirements: If your program is unable to 
meet the match requirements as required in

[[Page 713]]

paragraph (a) of this section, and is located in a rural or a severely 
economically distressed community, you may apply to the Corporation for 
a waiver that would require you to increase the overall amount of your 
share of program costs beginning in the seventh consecutive year that 
you receive a grant, according to the following table:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                              Year 1     Year 2     Year 3     Year 4     Year 5     Year 6     Year 7     Year 8     Year 9    Year 10
                                            (percent)  (percent)  (percent)  (percent)  (percent)  (percent)  (percent)  (percent)  (percent)  (percent)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Minimum member support....................        15         15         15         15         15         15         15         15         15         15
Minimum operating costs...................        33         33         33         33         33         33         33         33         33         33
Minimum overall share.....................       N/A        N/A        N/A        N/A        N/A        N/A         29         31         33         35
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (c) Determining Program Location. (1) The Corporation will determine 
whether your program is located in a rural county by considering the 
U.S. Department of Agriculture's Beale Codes.
    (2) The Corporation will determine whether your program is located 
in a severely economically distressed county by considering unemployment 
rates, per capita income, and poverty rates.
    (3) Unless the Corporation approves otherwise, as provided in 
paragraph (c)(4) of this section, the Corporation will determine the 
location of your program based on the legal applicant's address.
    (4) If you believe that the legal applicant's address is not the 
appropriate way to consider the location of your program, you may 
request the waiver described in paragraph (b) of this section and 
provide the relevant facts about your program location to support your 
request.
    (d) Schedule for current program grants: If you have completed at 
least one three-year grant cycle on the date this regulation takes 
effect, you will be required to provide your share of costs beginning at 
the year three level, according to the table in paragraph (a) of this 
section, in the first program year in your grant following the 
regulation's effective date, and increasing each year thereafter as 
reflected in the table.
    (e) Flexibility in how you provide your share: As long as you meet 
the basic match requirements in Sec.  2521.45, you may use cash or in-
kind contributions to reach the overall share level. For example, if 
your organization finds it easier to raise member support match, you may 
choose to meet the required overall match by raising only more member 
support match, and leave operational match at the basic level, as long 
as you provide the required overall match.
    (f) Reporting excess resources. (1) The Corporation encourages you 
to obtain support over-and-above the matching fund requirements. 
Reporting these resources may make your application more likely to be 
selected for funding, based on the selection criteria in Sec. Sec.  
2522.430 and 2522.435 of these regulations.
    (2) You must comply with Sec.  2543.23 of this title and applicable 
OMB circulars in documenting cash and in-kind contributions and excess 
resources.

[70 FR 39598, July 8, 2005]



Sec.  2521.70  To what extent may the Corporation waive the matching 
requirements in Sec. Sec.  2521.45 and 2521.60 of this part?

    (a) The Corporation may waive, in whole or in part, the requirements 
of Sec. Sec.  2521.45 and 2521.60 of this part if the Corporation 
determines that a waiver would be equitable because of a lack of 
available financial resources at the local level.
    (b) If you are requesting a waiver, you must demonstrate:
    (1) The lack of resources at the local level;
    (2) That the lack of resources in your local community is unique or 
unusual;
    (3) The efforts you have made to raise matching resources; and
    (4) The amount of matching resources you have raised or reasonably 
expect to raise.
    (c) You must provide with your waiver request:

[[Page 714]]

    (1) A request for the specific amount of match you are requesting 
that the Corporation waive; and
    (2) A budget and budget narrative that reflects the requested level 
in matching resources.

[70 FR 39598, July 8, 2005]



Sec.  2521.80  What matching level applies if my program was funded 
in the past but has not recently received an AmeriCorps grant?

    (a) If you have not been a direct recipient of an AmeriCorps 
operational grant from the Corporation or a State commission for five 
years or more, as determined by the end date of your most recent grant 
period, you may begin matching at the year one level, as reflected in 
the timetable in Sec.  2521.60(a) of this part, upon receiving your new 
grant award.
    (b) If you have not been a direct recipient of an AmeriCorps 
operational grant from the Corporation or a State commission for fewer 
than five years, you must begin matching at the same level you were 
matching at the end of your most recent grant period.

[70 FR 39598, July 8, 2005]



Sec.  2521.90  If I am a new or replacement legal applicant 
for an existing program, what will my matching requirements be?

    If your organization is a new or replacement legal applicant for an 
existing program, you must provide matching resources at the level the 
previous legal applicant had reached at the time you took over the 
program.

[70 FR 39598, July 8, 2005]



Sec.  2521.95  To what extent may I use grant funds for administrative costs?

    (a) Not more than five percent of the grant funds provided under 
this part for any fiscal year may be used to pay for administrative 
costs, as defined in Sec.  2510.20 of this chapter.
    (b) The distribution of administrative costs between the grant and 
any subgrant will be subject to the approval of the Corporation.
    (c) In applying the limitation on administrative costs the 
Corporation will approve one of the following methods in the award 
document:
    (1) Limit the amount or rate of indirect costs that may be paid with 
Corporation funds under a grant or subgrant to five percent of total 
Corporation funds expended, provided that--
    (i) Organizations that have an established indirect cost rate for 
Federal awards will be limited to this method; and
    (ii) Unreimbursed indirect costs may be applied to meeting 
operational matching requirements under the Corporation's award;
    (2) Specify that a fixed rate of five percent or less (not subject 
to supporting cost documentation) of total Corporation funds expended 
may be used to pay for administrative costs, provided that the fixed 
rate is in conjunction with an overall 15 percent administrative cost 
factor to be used for organizations that do not have established 
indirect cost rates; or
    (3) Utilize such other method that the Corporation determines in 
writing is consistent with OMB guidance and other applicable 
requirements, helps minimize the burden on grantees or subgrantees, and 
is beneficial to grantees or subgrantees and the Federal Government.

[70 FR 39598, July 8, 2005]



PART 2522_AMERICORPS PARTICIPANTS, PROGRAMS, AND APPLICANTS--Table of Contents



            Subpart A_Minimum Requirements and Program Types

Sec.
2522.10 What definitions apply to this part?
2522.100 What are the minimum requirements that AmeriCorps subtitle C 
          grantees must meet?
2522.110 What types of programs are eligible to compete for AmeriCorps 
          grants?

      Subpart B_Participant Eligibility, Requirements, and Benefits

2522.200 What are the eligibility requirements for an AmeriCorps 
          participant?
2522.205 To whom must I apply eligibility criteria relating to criminal 
          history?
2522.206 [Reserved]
2522.207 How do I determine an individual's eligibility to serve in a 
          covered position?

[[Page 715]]

2522.210 How are AmeriCorps participants recruited and selected?
2522.220 What are the required terms of service for AmeriCorps 
          participants?
2522.230 Under what circumstances may an AmeriCorps participant be 
          released from completing a term of service, and what are the 
          consequences?
2522.235 Is there a limit on the number of terms an individual may serve 
          in an AmeriCorps State and National program?
2522.240 What financial benefits do AmeriCorps participants serving in 
          approved AmeriCorps positions receive?
2522.245 How are living allowances disbursed?
2522.250 What other benefits do AmeriCorps participants serving in 
          approved AmeriCorps positions receive?

                   Subpart C_Application Requirements

2522.300 What are the application requirements for AmeriCorps program 
          grants?
2522.310 What are the application requirements for AmeriCorps 
          educational awards only?
2522.320 [Reserved]
2522.330 [Reserved]
2522.340 How will I know if two projects are the same?

               Subpart D_Selection of AmeriCorps Programs

2522.400 What process does the Corporation use to select new grantees?
2522.410 What is the role of the Corporation's Board of Directors in the 
          selection process?
2522.415 How does the grant selection process work?
2522.420 What basic criteria does the Corporation use in making funding 
          decisions?
2522.425 [Reserved]
2522.430 [Reserved]
2522.435 [Reserved]
2522.440 What weight does the Corporation give to each category of the 
          basic criteria?
2522.445 [Reserved]
2522.448 [Reserved]
2522.450 What types of programs or program models may receive special 
          consideration in the selection process?
2522.455 How do I find out about additional priorities governing the 
          selection process?
2522.460 To what extent may the Corporation or a State commission 
          consider priorities other than those stated in these 
          regulations or the Notice of Funding Availability?
2522.465 What information must a State commission submit on the relative 
          strengths of applicants for State competitive funding?
2522.470 What other factors or information may the Corporation consider 
          in making final funding decisions?
2522.475 To what extent must I use the Corporation's selection criteria 
          and priorities when selecting formula programs or operating 
          sites?
2522.480 Can a State's application for formula funds be rejected?
2522.485 How do I calculate my program's budgeted Corporation cost per 
          member service year (MSY)?

                    Subpart E_Evaluation Requirements

2522.500 What is the purpose of this subpart?
2522.510 To whom does this subpart apply?
2522.520 What special terms are used in this subpart?
2522.530 May I use the Corporation's program grant funds for performance 
          measurement and evaluation?
2522.540 Do the costs of performance measurement or evaluation count 
          towards the statutory cap on administrative costs?

            Performance Measures: Requirements and Procedures

2522.550 What basic requirements must I follow in measuring performance 
          under my grant?
2522.560 What are performance measures and performance measurement?
2522.570 What information on performance measures must my grant 
          application include?
2522.580 What performance measures am I required to submit to the 
          Corporation?
2522.590 Who develops my performance measures?
2522.600 Who approves my performance measures?
2522.610 What is the difference in performance measurements requirements 
          for competitive and formula programs?
2522.620 How do I report my performance measures to the Corporation?
2522.630 What must I do if I am not able to meet my performance 
          measures?
2522.640 Under what circumstances may I change my performance measures?
2522.650 What happens if I fail to meet the performance measures 
          included in my grant?

            Evaluating Programs: Requirements and Procedures

2522.700 How does evaluation differ from performance measurement?
2522.710 What are my evaluation requirements?
2522.720 How many years must my evaluation cover?
2522.730 How and when do I submit my evaluation to the Corporation?

[[Page 716]]

2522.740 How will the Corporation use my evaluation?
2522.800 How will the Corporation evaluate individual AmeriCorps 
          programs?
2522.810 What will the Corporation do to evaluate the overall success of 
          the AmeriCorps programs?
2522.820 Will information on individual participants be kept 
          confidential?

         Subpart F_Program Management Requirements for Grantees

2522.900 What definitions apply to this subpart?
2522.910 What basic qualifications must an AmeriCorps member have to 
          serve as a tutor?
2522.920 Are there any exceptions to the qualifications requirements?
2522.930 [Reserved]
2522.940 What are the requirements for a program in which AmeriCorps 
          members serve as tutors?
2522.950 What requirements and qualifications apply if my program 
          focuses on supplemental academic support activities other than 
          tutoring?

    Authority: 42 U.S.C. 12571-12595; 12651b-12651d; E.O. 13331, 69 FR 
9911, Sec. 1612, Pub. L. 111-13.

    Source: 59 FR 13796, Mar. 23, 1994, unless otherwise noted.



            Subpart A_Minimum Requirements and Program Types



Sec.  2522.10  What definitions apply to this part?

    You. For this part, you refers to the grantee, unless otherwise 
noted.

[70 FR 39600, July 8, 2005]



Sec.  2522.100  What are the minimum requirements that every 
AmeriCorps program, regardless of type, must meet?

    Although a wide range of programs may be eligible to apply for and 
receive support from the Corporation, all AmeriCorps subtitle C programs 
must meet certain minimum program requirements. These requirements apply 
regardless of whether a program is supported directly by the Corporation 
or through a subgrant. All AmeriCorps programs must:
    (a) Address educational, public safety, human, or environmental 
needs, and provide a direct and demonstrable benefit that is valued by 
the community in which the service is performed;
    (b) Perform projects that are designed, implemented, and evaluated 
with extensive and broad-based local input, including consultation with 
representatives from the community served, participants (or potential 
participants) in the program, community-based agencies with a 
demonstrated record of experience in providing services, and local labor 
organizations representing employees of project sponsors (if such 
entities exist in the area to be served by the program);
    (c) Obtain, in the case of a program that also proposes to serve as 
the project sponsor, the written concurrence of any local labor 
organization representing employees of the project sponsor who are 
engaged in the same or substantially similar work as that proposed to be 
carried out by the AmeriCorps participant;
    (d) Establish and provide outcome objectives, including a strategy 
for achieving these objectives, upon which self-assessment and 
Corporation-assessment of progress can rest. Such assessment will be 
used to help determine the extent to which the program has had a 
positive impact: (1) On communities and persons served by the projects 
performed by the program;
    (2) On participants who take part in the projects; and
    (3) In such other areas as the program or Corporation may specify;
    (e) Strengthen communities and encourage mutual respect and 
cooperation among citizens of different races, ethnicities, 
socioeconomic backgrounds, educational levels, both men and women and 
individuals with disabilities;
    (f) Agree to seek actively to include participants and staff from 
the communities in which projects are conducted, and agree to seek 
program staff and participants of different races and ethnicities, 
socioeconomic backgrounds, educational levels, and genders as well as 
individuals with disabilities unless a program design requires 
emphasizing the recruitment of staff and participants who share a 
specific characteristic or background. In no case may a program violate 
the nondiscrimination, nonduplication and nondisplacement rules 
governing participant selection described in part 2540

[[Page 717]]

of this chapter. In addition, programs are encouraged to establish, if 
consistent with the purposes of the program, an intergenerational 
component that combines students, out-of-school youths, and older adults 
as participants;
    (g)(1) Determine the projects in which participants will serve and 
establish minimum qualifications that individuals must meet to be 
eligible to participate in the program; these qualifications may vary 
based on the specific tasks to be performed by participants. Regardless 
of the educational level or background of participants sought, programs 
are encouraged to select individuals who posses leadership potential and 
a commitment to the goals of the AmeriCorps program. In any case, 
programs must select participants in a non-partisan, non-political, non-
discriminatory manner, ensuring fair access to participation. In 
addition, programs are required to ensure that they do not displace any 
existing paid employees as provided in part 2540 of this chapter;
    (2) In addition, all programs are required to comply with any pre-
service orientation or training period requirements established by the 
Corporation to assist in the selection of motivated participants. 
Finally, all programs must agree to select a percentage (to be 
determined by the Corporation) of the participants for the program from 
among prospective participants recruited by the Corporation or State 
Commissions under part 2533 of this chapter. The Corporation may also 
specify a minimum percentage of participants to be selected from the 
national leadership pool established under Sec.  2522.210(c). The 
Corporation may vary either percentage for different types of AmeriCorps 
programs;
    (h) Provide reasonable accommodation, including auxiliary aids and 
services (as defined in section 3(1) of the Americans with Disabilities 
Act of 1990 (42 U.S.C. 12102(1)) based on the individualized need of a 
participant who is a qualified individual with a disability (as defined 
in section 101(8) of such Act (42 U.S.C. 12111(8)). For the purpose of 
complying with this provision, AmeriCorps programs may apply for 
additional financial assistance from the Corporation pursuant to Sec.  
2524.40 of this chapter;
    (i) Use service experiences to help participants achieve the skills 
and education needed for productive, active citizenship, including the 
provision, if appropriate, of structured opportunities for participants 
to reflect on their service experiences. In addition, all programs must 
encourage every participant who is eligible to vote to register prior to 
completing a term of service;
    (j) Provide participants in the program with the training, skills, 
and knowledge necessary to perform the tasks required in their 
respective projects, including, if appropriate, specific training in a 
particular field and background information on the community, including 
why the service projects are needed;
    (k) Provide support services--
    (1) To participants who are completing a term of service and making 
the transition to other educational and career opportunities; and
    (2) To those participants who are school dropouts in order to assist 
them in earning the equivalent of a high school diploma;
    (l) Ensure that participants serving in approved AmeriCorps 
positions receive the living allowance and other benefits described in 
Sec. Sec.  2522.240 through 2522.250 of this chapter;
    (m) Describe the manner in which the AmeriCorps educational awards 
will be apportioned among individuals serving in the program. If a 
program proposes to provide such benefits to less than 100 percent of 
the participants in the program, the program must provide a compelling 
rationale for determining which participants will receive the benefits 
and which participants will not. AmeriCorps programs are strongly 
encouraged to offer alternative post-service benefits to participants 
who will not receive AmeriCorps educational awards, however AmeriCorps 
grant funds may not be used to provide such benefits;
    (n) Agree to identify the program, through the use of logos, common 
application materials, and other means (to be specified by the 
Corporation), as part of a larger national effort and to participate in 
other activities such as common opening ceremonies (including

[[Page 718]]

the administration of a national oath or affirmation), service days, and 
conferences designed to promote a national identity for all AmeriCorps 
programs and participants, including those participants not receiving 
AmeriCorps educational awards. This provision does not preclude an 
AmeriCorps program from continuing to use its own name as the primary 
identification, or from using its name, logo, or other identifying 
materials on uniforms or other items;
    (o) Agree to begin terms of service at such times as the Corporation 
may reasonably require and to comply with any restrictions the 
Corporation may establish as to when the program may take to fill an 
approved AmeriCorps position left vacant due to attrition;
    (p) Comply with all evaluation procedures specified by the 
Corporation, as explained in Sec. Sec.  2522.500 through 2522.560;
    (q) In the case of a program receiving funding directly from the 
Corporation, meet and consult with the State Commission for the State in 
which the program operates, if possible, and submit a copy of the 
program application to the State Commission; and
    (r) Address any other requirements as specified by the Corporation.

[59 FR 13796, Mar. 23, 1994, as amended at 67 FR 45360, July 9, 2002; 75 
FR 51410, Aug. 20, 2010]



Sec.  2522.110  What types of programs are eligible to compete 
for AmeriCorps grants?

    Types of programs eligible to compete for AmeriCorps grants include 
the following: (a) Specialized skills programs. (1) A service program 
that is targeted to address specific educational, public safety, human, 
or environmental needs and that--
    (i) Recruits individuals with special skills or provides specialized 
pre-service training to enable participants to be placed individually or 
in teams in positions in which the participants can meet such needs; and
    (ii) If consistent with the purposes of the program, brings 
participants together for additional training and other activities 
designed to foster civic responsibility, increase the skills of 
participants, and improve the quality of the service provided.
    (2) A preprofessional training program in which students enrolled in 
an institution of higher education--
    (i) Receive training in specified fields, which may include classes 
containing service-learning;
    (ii) Perform service related to such training outside the classroom 
during the school term and during summer or other vacation periods; and
    (iii) Agree to provide service upon graduation to meet educational, 
public safety, human, or environmental needs related to such training.
    (3) A professional corps program that recruits and places qualified 
participants in positions--
    (i) As teachers, nurses and other health care providers, police 
officers, early childhood development staff, engineers, or other 
professionals providing service to meet educational, public safety, 
human, or environmental needs in communities with an inadequate number 
of such professionals;
    (ii) That may include a salary in excess of the maximum living 
allowance authorized in Sec.  2522.240(b)(2); and
    (iii) That are sponsored by public or private nonprofit employers 
who agree to pay 100 percent of the salaries and benefits (other than 
any AmeriCorps educational award from the National Service Trust) of the 
participants.
    (b) Specialized service programs. (1) A community service program 
designed to meet the needs of rural communities, using teams or 
individual placements to address the development needs of rural 
communities and to combat rural poverty, including health care, 
education, and job training.
    (2) A program that seeks to eliminate hunger in communities and 
rural areas through service in projects--
    (i) Involving food banks, food pantries, and nonprofit organizations 
that provide food during emergencies;
    (ii) Involving the gleaning of prepared and unprepared food that 
would otherwise be discarded as unusable so that the usable portion of 
such food may be donated to food banks, food pantries, and other 
nonprofit organizations;
    (iii) Seeking to address the long-term causes of hunger through 
education and the delivery of appropriate services; or

[[Page 719]]

    (iv) Providing training in basic health, nutrition, and life skills 
necessary to alleviate hunger in communities and rural areas.
    (3) A program in which economically disadvantaged individuals who 
are between the ages of 16 and 24 years of age, inclusive, are provided 
with opportunities to perform service that, while enabling such 
individuals to obtain the education and employment skills necessary to 
achieve economic self-sufficiency, will help their communities meet--
    (i) The housing needs of low-income families and the homeless; and
    (ii) The need for community facilities in low-income areas.
    (c) Community-development programs. (1) A community corps program 
that meets educational, public safety, human, or environmental needs and 
promotes greater community unity through the use of organized teams of 
participants of varied social and economic backgrounds, skill levels, 
physical and developmental capabilities, ages, ethnic backgrounds, or 
genders.
    (2) A program that is administered by a combination of nonprofit 
organizations located in a low-income area, provides a broad range of 
services to residents of such an area, is governed by a board composed 
in significant part of low-income individuals, and is intended to 
provide opportunities for individuals or teams of individuals to engage 
in community projects in such an area that meet unaddressed community 
and individual needs, including projects that would--
    (i) Meet the needs of low-income children and youth aged 18 and 
younger, such as providing after-school `safe-places', including 
schools, with opportunities for learning and recreation; or
    (ii) Be directed to other important unaddressed needs in such an 
area.
    (d) Programs that expand service program capacity. (1) A program 
that provides specialized training to individuals in service-learning 
and places the individuals after such training in positions, including 
positions as service-learning coordinators, to facilitate service-
learning in programs eligible for funding under Serve-America.
    (2) An AmeriCorps entrepreneur program that identifies, recruits, 
and trains gifted young adults of all backgrounds and assists them in 
designing solutions to community problems.
    (e) Campus-based programs. A campus-based program that is designed 
to provide substantial service in a community during the school term and 
during summer or other vacation periods through the use of--
    (1) Students who are attending an institution of higher education, 
including students participating in a work-study program assisted under 
part C of title IV of the Higher Education Act of 1965 (42 U.S.C. 2751 
et seq.);
    (2) Teams composed of such students; or
    (3) Teams composed of a combination of such students and community 
residents.
    (f) Intergenerational programs. An intergenerational program that 
combines students, out-of-school youths, and older adults as 
participants to provide needed community services, including an 
intergenerational component for other AmeriCorps programs described in 
this subsection.
    (g) Youth development programs. A full-time, year-round youth corps 
program or full-time summer youth corps program, such as a conservation 
corps or youth service corps (including youth corps programs under 
subtitle I, the Public Lands Corps established under the Public Lands 
Corps Act of 1993, the Urban Youth Corps established under section 106 
of the National and Community Service Trust Act of 1993, and other 
conservation corps or youth service corps that perform service on 
Federal or other public lands or on Indian lands or Hawaiian home 
lands), that:
    (1) Undertakes meaningful service projects with visible public 
benefits, including natural resource, urban renovation, or human 
services projects;
    (2) Includes as participants youths and young adults between the 
ages of 16 and 25, inclusive, including out-of-school youths and other 
disadvantaged youths (such as youths with limited basic skills, youths 
in foster care who are becoming too old for foster care, youths of 
limited English proficiency, homeless youths, and youths who are 
individuals with disabilities) who are between those ages; and

[[Page 720]]

    (3) Provides those participants who are youths and young adults 
with--
    (i) Crew-based, highly structured, and adult-supervised work 
experience, life skills, education, career guidance and counseling, 
employment training, and support services; and
    (ii) The opportunity to develop citizenship values and skills 
through service to their community and the United States.
    (h) Individualized placement programs. An individualized placement 
program that includes regular group activities, such as leadership 
training and special service projects.
    (i) Other programs. Such other AmeriCorps programs addressing 
educational, public safety, human, or environmental needs as the 
Corporation may designate in the application.



      Subpart B_Participant Eligibility, Requirements, and Benefits



Sec.  2522.200  What are the eligibility requirements 
for an AmeriCorps participant?

    (a) Eligibility. An AmeriCorps participant must--
    (1)(i) Be at least 17 years of age at the commencement of service; 
or
    (ii) Be an out-of-school youth 16 years of age at the commencement 
of service participating in a program described in Sec.  2522.110(b)(3) 
or (g);
    (2)(i) Have a high school diploma or its equivalent; or
    (ii) Not have dropped out of elementary or secondary school to 
enroll as an AmeriCorps participant and must agree to obtain a high 
school diploma or its equivalent prior to using the education award; or
    (iii) Obtain a waiver from the Corporation of the requirements in 
paragraphs (a)(2)(i) and (a)(2)(ii) of this section based on an 
independent evaluation secured by the program demonstrating that the 
individual is not capable of obtaining a high school diploma or its 
equivalent; or
    (iv) Be enrolled in an institution of higher education on an ability 
to benefit basis and be considered eligible for funds under section 484 
of the Higher Education Act of 1965 (20 U.S.C. 1091);
    (3) Be a citizen, national, or lawful permanent resident alien of 
the United States;
    (4) Satisfy the National Service Criminal History Check eligibility 
criteria pursuant to 45 CFR 2540.202.
    (b) Written declaration regarding high school diploma sufficient for 
enrollment. For purposes of enrollment, if an individual provides a 
written declaration under penalty of law that he or she meets the 
requirements in paragraph (a) of this section relating to high school 
education, a program need not obtain additional documentation of that 
fact.
    (c) Primary documentation of status as a U.S. citizen or national. 
The following are acceptable forms of certifying status as a U.S. 
citizen or national:
    (1) A birth certificate showing that the individual was born in one 
of the 50 states, the District of Columbia, Puerto Rico, Guam, the U.S. 
Virgin Islands, American Samoa, or the Northern Mariana Islands;
    (2) A United States passport;
    (3) A report of birth abroad of a U.S. Citizen (FS-240) issued by 
the State Department;
    (4) A certificate of birth-foreign service (FS 545) issued by the 
State Department;
    (5) A certification of report of birth (DS-1350) issued by the State 
Department;
    (6) A certificate of naturalization (Form N-550 or N-570) issued by 
the Immigration and Naturalization Service; or
    (7) A certificate of citizenship (Form N-560 or N-561) issued by the 
Immigration and Naturalization Service.
    (d) Primary documentation of status as a lawful permanent resident 
alien of the United States. The following are acceptable forms of 
certifying status as a lawful permanent resident alien of the United 
States:
    (1) Permanent Resident Card, INS Form I-551;
    (2) Alien Registration Receipt Card, INS Form I-551;
    (3) A passport indicating that the INS has approved it as temporary 
evidence of lawful admission for permanent residence; or

[[Page 721]]

    (4) A Departure Record (INS Form I-94) indicating that the INS has 
approved it as temporary evidence of lawful admission for permanent 
residence.
    (e) Secondary documentation of citizenship or immigration status. If 
primary documentation is not available, the program must obtain written 
approval from the Corporation that other documentation is sufficient to 
demonstrate the individual's status as a U.S. citizen, U.S. national, or 
lawful permanent resident alien.

[64 FR 37413, July 12, 1999, as amended at 67 FR 45360, July 9, 2002; 77 
FR 60931, Oct. 5, 2012]



Sec.  2522.205  To whom must I apply eligibility criteria relating to 
criminal history?

    You must apply eligibility criteria relating to criminal history to 
individuals specified in 45 CFR 2540.201.

[86 FR 11146, Feb. 24, 2021]



Sec.  2522.206  [Reserved]



Sec.  2522.207  How do I determine an individual's eligibility to serve 
in a covered position?

    To determine an individual's eligibility to serve in a covered 
position, you must follow the procedures in part 2540 of this chapter.

[77 FR 60932, Oct. 5, 2012]



Sec.  2522.210  How are AmeriCorps participants recruited and selected?

    (a) Local recruitment and selection. In general, AmeriCorps 
participants will be selected locally by an approved AmeriCorps program, 
and the selection criteria will vary widely among the different 
programs. Nevertheless, AmeriCorps programs must select their 
participants in a fair and non-discriminatory manner which complies with 
part 2540 of this chapter. In selecting participants, programs must also 
comply with the recruitment and selection requirements specified in this 
section.
    (b)(1) National and State recruitment and selection. The Corporation 
and each State Commission will establish a system to recruit individuals 
who desire to perform national service and to assist the placement of 
these individuals in approved AmeriCorps positions, which may include 
positions available under titles I and II of the Domestic Volunteer 
Service Act of 1973 (42 U.S.C. 4951 et seq.). The national and state 
recruitment and placement system will be designed and operated according 
to Corporation guidelines.
    (2) Dissemination of information. The Corporation and State 
Commissions will disseminate information regarding available approved 
AmeriCorps positions through cooperation with secondary schools, 
institutions of higher education, employment service offices, community-
based organizations, State vocational rehabilitation agencies within the 
meaning of the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) and 
other State agencies that primarily serve qualified individuals with 
disabilities, and other appropriate entities, particularly those 
organizations that provide outreach to disadvantaged youths and youths 
who are qualified individuals with disabilities.
    (c) National leadership pool--(1) Selection and training. From among 
individuals recruited under paragraph (b) of this section or nominated 
by service programs, the Corporation may select individuals with 
significant leadership potential, as determined by the Corporation, to 
receive special training to enhance their leadership ability. The 
leadership training will be provided by the Corporation directly or 
through a grant, contract, or cooperative agreement as the Corporation 
determines.
    (2) Emphasis on certain individuals. In selecting individuals to 
receive leadership training under this provision, the Corporation will 
make special efforts to select individuals who have served--
    (i) In the Peace Corps;
    (ii) As VISTA volunteers;
    (iii) As participants in AmeriCorps programs receiving assistance 
under parts 2520 through 2524 of this chapter;
    (iv) As participants in National Service Demonstration programs that 
received assistance from the Commission on National and Community 
Service; or
    (v) As members of the Armed Forces of the United States and who were 
honorably discharged from such service.
    (3) Assignment. At the request of a program that receives 
assistance, the Corporation may assign an individual who receives 
leadership training under

[[Page 722]]

paragraph (c)(1) of this section to work with the program in a 
leadership position and carry out assignments not otherwise performed by 
regular participants. An individual assigned to a program will be 
considered to be a participant of the program.



Sec.  2522.220  What are the required terms of service 
for AmeriCorps participants?

    (a) Term of Service. A term of service may be defined as:
    (1) Full-time service. 1,700 hours of service during a period of not 
more than one year.
    (2) Part-time service. 900 hours of service during a period of not 
more than two years.
    (3) Reduced part-time term of service. The Corporation may reduce 
the number of hours required to be served in order to receive an 
educational award for certain part-time participants serving in approved 
AmeriCorps positions. In such cases, the educational award will be 
reduced in direct proportion to the reduction in required hours of 
service. These reductions may be made for summer programs, for 
categories of participants in certain approved AmeriCorps programs and 
on a case-by-case, individual basis as determined by the Corporation.
    (4) Summer programs. A summer program, in which less than 1700 hours 
of service are performed, are part-time programs.
    (b) Eligibility for subsequent term. A participant will only be 
eligible to serve a subsequent term of service if that individual has 
received a satisfactory performance review for any previous term of 
service in an approved AmeriCorps position, in accordance with the 
requirements of paragraph (d) of this section and Sec.  2526.15. Mere 
eligibility for a second or further term of service in no way guarantees 
a participant selection or placement.
    (c) Participant evaluation. For the purposes of determining a 
participant's eligibility for an educational award as described in Sec.  
2522.240(a) and eligibility to serve a second or additional term of 
service as described in paragraph (c) of this section, each AmeriCorps 
grantee is responsible for conducting a mid-term and end-of-term 
evaluation. A mid-term evaluation is not required for a participant who 
is released early from a term of service or in other circumstances as 
approved by the Corporation. The end-of-term evaluation should consist 
of:
    (1) A determination of whether the participant:
    (i) Successfully completed the required term of service described in 
paragraph (a) of this section, making the participant eligible for an 
educational award as described in Sec.  2522.240(a);
    (ii) Was released from service for compelling personal 
circumstances, making the participant eligible for a pro-rated 
educational award as described in Sec.  2522.230(a)(2); or
    (iii) Was released from service for cause, making the participant 
ineligible to receive an educational award for that term of service as 
described in Sec.  2522.230(b)(3); and
    (2) A participant performance and conduct review to determine 
whether the participant's service was satisfactory, which will assess 
whether the participant:
    (i) Has satisfactorily completed assignments, tasks, or projects, 
or, for those participants released from service early, whether the 
participant made a satisfactory effort to complete those assignments, 
tasks, or projects that the participant could reasonably have addressed 
in the time the participant served; and
    (ii) Has met any other criteria which had been clearly communicated 
both orally and in writing at the beginning of the term of service.
    (d) Limitation. The Corporation may set a minimum or maximum 
percentage of hours of a full-time, part-time, or reduced term of 
service described in paragraphs (a)(1),(a)(2), and (a)(3) of this 
section that a participant may engage in training, education, or other 
similar approved activities
    (e) Grievance procedure. Any AmeriCorps participant wishing to 
contest a program's ruling of unsatisfactory performance may file a 
grievance according to the procedures set forth in part 2540 of this 
chapter. If that grievance procedure or subsequent binding arbitration 
procedure finds that the participant did in fact satisfactorily

[[Page 723]]

complete a term of service, then that individual will be eligible to 
receive an educational award and/or be eligible to serve a second term 
of service.
    (f) Extension of term for disaster purposes. If approved by the 
Corporation, a program may permit an AmeriCorps participant performing 
service directly related to disaster relief efforts to continue in a 
term of service for a period of up to 90 days beyond the period 
otherwise specified. A period of service performed by an AmeriCorps 
participant in an originally agreed-upon term of service and service 
performed under this paragraph shall constitute a single term of service 
for the purposes of Sec.  2526.50(a) of this chapter.

[59 FR 13796, Mar. 23, 1994, as amended at 73 FR 53759, Sept. 17, 2008; 
74 FR 46506, Sept. 10, 2009; 75 FR 51410, Aug. 20, 2010]



Sec.  2522.230  Under what circumstances may an AmeriCorps participant 
be released from completing a term of service, and what are the consequences?

    An AmeriCorps program may release a participant from completing a 
term of service for compelling personal circumstances, as determined by 
the program, or for cause.
    (a) Release for compelling personal circumstances.
    (1) An AmeriCorps program may release a participant upon a 
determination by the program, consistent with the criteria listed in 
paragraphs (a)(6) and (a)(7) of this section, that the participant is 
unable to complete the term of service because of compelling personal 
circumstances, if the participant has otherwise performed satisfactorily 
and has completed at least fifteen percent of the agreed term of 
service.
    (2) A participant who is released for compelling personal 
circumstances and who completes at least 15 percent of the required term 
of service is eligible for a pro-rated education award.
    (3) The program must document the basis for any determination that 
compelling personal circumstances prevent a participant from completing 
a term of service.
    (4) Compelling personal circumstances include:
    (i) Those that are beyond the participant's control, such as, but 
not limited to:
    (A) A participant's disability or serious illness;
    (B) Disability, serious illness, or death of a participant's family 
member if this makes completing a term unreasonably difficult or 
impossible; or
    (C) Conditions attributable to the program or otherwise 
unforeseeable and beyond the participant's control, such as a natural 
disaster, a strike, relocation of a spouse, or the nonrenewal or 
premature closing of a project or program, that make completing a term 
unreasonably difficult or impossible;
    (ii) Those that the Corporation, has for public policy reasons, 
determined as such, including:
    (A) Military service obligations;
    (B) Acceptance by a participant of an opportunity to make the 
transition from welfare to work; or
    (C) Acceptance of an employment opportunity by a participant serving 
in a program that includes in its approved objectives the promotion of 
employment among its participants.
    (5) Compelling personal circumstances do not include leaving a 
program:
    (i) To enroll in school;
    (ii) To obtain employment, other than in moving from welfare to work 
or in leaving a program that includes in its approved objectives the 
promotion of employment among its participants; or
    (iii) Because of dissatisfaction with the program.
    (6) As an alternative to releasing a participant, an 
AmeriCorps*State/National program may, after determining that compelling 
personal circumstances exist, suspend the participant's term of service 
for up to two years (or longer if approved by the Corporation based on 
extenuating circumstances) to allow the participant to complete service 
with the same or similar AmeriCorps program at a later time.
    (b) Release for cause. (1) A release for cause encompasses any 
circumstances other than compelling personal circumstances that warrant 
an individual's release from completing a term of service.

[[Page 724]]

    (2) AmeriCorps programs must release for cause any participant who 
is convicted of a felony or the sale or distribution of a controlled 
substance during a term of service.
    (3) A participant who is released for cause may not receive any 
portion of the AmeriCorps education award or any other payment from the 
National Service Trust.
    (4) An individual who is released for cause must disclose that fact 
in any subsequent applications to participate in an AmeriCorps program. 
Failure to do so disqualifies the individual for an education award, 
regardless of whether the individual completes a term of service.
    (5) An AmeriCorps*State/National participant released for cause may 
contest the program's decision by filing a grievance. Pending the 
resolution of a grievance procedure filed by an individual to contest a 
determination by a program to release the individual for cause, the 
individual's service is considered to be suspended. For this type of 
grievance, a program may not--while the grievance is pending or as part 
of its resolution--provide a participant with federally-funded benefits 
(including payments from the National Service Trust) beyond those 
attributable to service actually performed, without the program 
receiving written approval from the Corporation.
    (6) An individual's eligibility for a subsequent term of service in 
AmeriCorps will not be affected by release for cause from a prior term 
of service so long as the individual received a satisfactory end-of-term 
performance review as described in Sec.  2522.220(c)(2) for the period 
served in the prior term.
    (7) Except as provided in paragraph (e) of this section, a term of 
service from which an individual is released for cause counts as one of 
the terms of service described in Sec.  2522.235 for which an individual 
may receive the benefits described in Sec. Sec.  2522.240 through 
2522.250.
    (c) Suspended service. (1) A program must suspend the service of an 
individual who faces an official charge of a violent felony (e.g., rape, 
homicide) or sale or distribution of a controlled substance.
    (2) A program must suspend the service of an individual who is 
convicted of possession of a controlled substance.
    (3) An individual may not receive a living allowance or other 
benefits, and may not accrue service hours, during a period of 
suspension under this provision.
    (d) Reinstatement. (1) A program may reinstate an individual whose 
service was suspended under paragraph (c)(1) of this section if the 
individual is found not guilty or if the charge is dismissed.
    (2) A program may reinstate an individual whose service was 
suspended under paragraph (c)(2) of this section only if the individual 
demonstrates the following:
    (i) For an individual who has been convicted of a first offense of 
the possession of a controlled substance, the individual must have 
enrolled in a drug rehabilitation program;
    (ii) For an individual who has been convicted for more than one 
offense of the possession of a controlled substance, the individual must 
have successfully completed a drug rehabilitation program.
    (e) Release prior to serving 15 percent of a term of service. If a 
participant is released for reasons other than misconduct prior to 
completing 15 percent of a term of service, the term will not be 
considered one of the terms of service described in Sec.  2522.220(b) 
for which an individual may receive the benefits described in Sec. Sec.  
2522.240 through 2522.250.

[64 FR 37413, July 12, 1999, as amended at 73 FR 53759, Sept. 17, 2008; 
74 FR 46506, Sept. 10, 2009; 75 FR 51410, Aug. 20, 2010]



Sec.  2522.235  Is there a limit on the number of terms an individual 
may serve in an AmeriCorps State and National program?

    (a) General limitation. An individual may receive the benefits 
described in Sec.  2522.240 through Sec.  2522.250 for no more than four 
terms of service in an AmeriCorps State and National program, regardless 
of whether those terms were served on a full-, part-, or reduced part-
time basis, consistent with the limitations in Sec.  2526.50.
    (b) Early release. Except as provided in paragraph (c) of this 
section, a term of service from which an individual is

[[Page 725]]

released for compelling personal circumstances or for cause counts as 
one of the terms of service for which an individual may receive the 
benefits described in Sec.  2522.240 through Sec.  2522.250.
    (c) Release prior to serving fifteen percent of a term. If a person 
is released for reasons other than misconduct prior to completing 
fifteen percent of a term of service, the term will not be considered 
one of the terms of service for which an individual may receive the 
benefits described in Sec. Sec.  2522.240 through 2522.250.

[75 FR 51410, Aug. 20, 2010]



Sec.  2522.240  What financial benefits do AmeriCorps participants 
serving in approved AmeriCorps positions receive?

    (a) AmeriCorps education awards. An individual serving in an 
approved AmeriCorps State and National position may receive an education 
award from the National Service Trust upon successful completion of each 
of no more than four terms of service as defined in Sec.  2522.220, 
consistent with the limitations in Sec.  2526.50.
    (b) Living allowances--(1)Amount. Subject to the provisions of this 
part, any individual who participates on a full-time basis in an 
AmeriCorps program carried out using assistance provided pursuant to 
Sec.  2521.30 of this chapter, including an AmeriCorps program that 
receives educational awards only pursuant to Sec.  2521.30(c) of this 
chapter, will receive a living allowance in an amount equal to or 
greater than the average annual subsistence allowance provided to VISTA 
volunteers under Sec.  105 of the Domestic Volunteer Service Act of 1973 
(42 U.S.C. 4955). This requirement will not apply to any program that 
was in existence prior to September 21, 1993 (the date of the enactment 
of the National and Community Service Trust Act of 1993).
    (2) Maximum living allowance. With the exception of a professional 
corps described in Sec.  2522.110(a)(3), the AmeriCorps living 
allowances may not exceed 200 percent of the average annual subsistence 
allowance provided to VISTA volunteers under section 105 of the Domestic 
Volunteer Service Act of 1973 (42 U.S.C. 4955). A professional corps 
AmeriCorps program may provide a stipend in excess of the maximum, 
subject to the following conditions: (i) Corporation assistance may not 
be used to pay for any portion of the allowance; and
    (ii) The program must be operated directly by the applicant, 
selected on a competitive basis by submitting an application to the 
Corporation, and may not be included in a State's application for 
AmeriCorps program funds distributed by formula under Sec.  
2521.30(a)(2) of this chapter.
    (3) Living allowances for part-time participants. Programs may, but 
are not required to, provide living allowances to individuals 
participating on a part-time basis (or a reduced term of part-time 
service authorized under Sec.  2522.220(a)(3). Such living allowances 
should be prorated to the living allowance authorized in paragraph 
(b)(1) of this section and will comply with such restrictions therein.
    (4) Waiver or reduction of living allowance for programs. The 
Corporation may, at its discretion, waive or reduce the living allowance 
requirements if a program can demonstrate to the satisfaction of the 
Corporation that such requirements are inconsistent with the objectives 
of the program, and that participants will be able to meet the necessary 
and reasonable costs of living (including food, housing, and 
transportation) in the area in which the program is located.
    (5) Waiver or reduction of living allowance by participants. A 
participant may waive all or part of the receipt of a living allowance. 
The participant may revoke this waiver at any time during the 
participant's term of service. If the participant revokes the living 
allowance waiver, the participant may begin receiving his or her living 
allowance prospective from the date of the revocation; a participant may 
not receive any portion of the living allowance that may have accrued 
during the waiver period.
    (6) Limitation on Federal share. The Federal share, including 
Corporation and other Federal funds, of the total amount provided to an 
AmeriCorps participant for a living allowance is limited as follows:
    (i) In no case may the Federal share exceed 85% of the minimum 
required

[[Page 726]]

living allowance enumerated in paragraph (b)(1) of this section.
    (ii) For professional corps described in paragraph (b)(2)(i) of this 
section, Corporation and other Federal funds may be used to pay for no 
portion of the living allowance.
    (iii) If the minimum living allowance requirements has been waived 
or reduced pursuant to paragraph (b)(4) of this section and the amount 
of the living allowance provided to a participant has been reduced 
correspondingly--
    (A) In general, the Federal share may not exceed 85% of the reduced 
living allowance; however,
    (B) If a participant is serving in a program that provides room or 
board, the Corporation will consider on a case-by-case basis allowing 
the portion of that living allowance that may be paid using Corporation 
and other Federal funds to be between 85% and 100%.
    (c) Financial benefits for participants during an extended term of 
service for disaster purposes. An AmeriCorps participant performing 
extended service under Sec.  2522.220(f) may continue to receive a 
living allowance under paragraph (b) and other benefits under Sec.  
2522.250, but may not receive an additional AmeriCorps educational award 
under paragraph (a).

[59 FR 13796, Mar. 23, 1994, as amended at 71 FR 10611, Mar. 2, 2006; 73 
FR 53760, Sept. 17, 2008; 74 FR 46506, Sept. 10, 2009; 75 FR 51410, Aug. 
20, 2010]



Sec.  2522.245  How are living allowances disbursed?

    A living allowance is not a wage and programs may not pay living 
allowances on an hourly basis. Programs must distribute the living 
allowance at regular intervals and in regular increments, and may 
increase living allowance payments only on the basis of increased living 
expenses such as food, housing, or transportation. Living allowance 
payments may only be made to a participant during the participant's term 
of service and must cease when the participant concludes the term of 
service. Programs may not provide a lump sum payment to a participant 
who completes the originally agreed-upon term of service in a shorter 
period of time.

[73 FR 53760, Sept. 17, 2008]



Sec.  2522.250  What other benefits do AmeriCorps participants serving in 
approved AmeriCorps positions receive?

    (a) Child Care. Grantees must provide child care through an eligible 
provider or a child care allowance in an amount determined by the 
Corporation to those full-time participants who need child care in order 
to participate.
    (1) Need. A participant is considered to need child care in order to 
participate in the program if he or she:
    (i) Is the parent or legal guardian of, or is acting in loco 
parentis for, a child under 13 who resides with the participant;
    (ii) Has a family income that does not exceed 75 percent of the 
State's median income for a family of the same size;
    (iii) At the time of acceptance into the program, is not currently 
receiving child care assistance from another source, including a parent 
or guardian, which would continue to be provided while the participant 
serves in the program; and
    (iv) Certifies that he or she needs child care in order to 
participate in the program.
    (2) Provider eligibility. Eligible child care providers are those 
who are eligible child care providers as defined in the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858n(5)).
    (3) Child care allowance. The amount of the child-care allowance may 
not exceed the applicable payment rate to an eligible provider 
established by the State for child care funded under the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858c(4)(A)).
    (4) Corporation share. The Corporation will pay 100 percent of the 
child care allowance, or, if the program provides child care through an 
eligible provider, the actual cost of the care or the amount of the 
allowance, whichever is less.
    (b) Health care. (1) Grantees must provide to all eligible 
participants who meet the requirements of paragraph (b)(2) of this 
section health care coverage that--
    (i) Provides the minimum benefits determined by the Corporation;

[[Page 727]]

    (ii) Provides the alternative minimum benefits determined by the 
Corporation; or
    (iii) Does not provide all of either the minimum or the alternative 
minimum benefits but that has a fair market value equal to or greater 
than the fair market value of a policy that provides the minimum 
benefits.
    (2) Participant eligibility. A full-time participant is eligible for 
health care benefits if he or she is not otherwise covered by a health 
benefits package providing minimum benefits established by the 
Corporation at the time he or she is accepted into a program. If, as a 
result of participation, or if, during the term of service, a 
participant demonstrates loss of coverage through no deliberate act of 
his or her own, such as parental or spousal job loss or disqualification 
from Medicaid, the participant will be eligible for health care 
benefits.
    (3) Corporation share. (i) Except as provided in paragraph 
(b)(3)(ii) of this section, the Corporation's share of the cost of 
health coverage may not exceed 85 percent.
    (ii) The Corporation will pay no share of the cost of a policy that 
does not provide the minimum or alternative minimum benefits described 
in paragraphs (b)(1)(i) and (b)(1)(ii) of this section.

[59 FR 13796, Mar. 23, 1994, as amended at 70 FR 39600, July 8, 2005]



                   Subpart C_Application Requirements



Sec.  2522.300  What are the application requirements for AmeriCorps 
program grants?

    All eligible applicants seeking AmeriCorps program grants must--
    (a) Provide a description of the specific program(s) being proposed, 
including the type of program and of how it meets the minimum program 
requirements described in Sec.  2522.100; and
    (b) Comply with any additional requirements as specified by the 
Corporation in the application package.



Sec.  2522.310  What are the application requirements for AmeriCorps 
educational awards only?

    (a) Eligible applicants may apply for AmeriCorps educational awards 
only for one of the following eligible service positions: (1) A position 
for a participant in an AmeriCorps program that:
    (i) Is carried out by an entity eligible to receive support under 
part 2521 of this chapter;
    (ii) Would be eligible to receive assistance under this part, based 
on criteria established by the Corporation, but has not applied for such 
assistance;
    (2) A position facilitating service-learning in a program described 
in parts 2515 through 2519 of this chapter;
    (3) A position involving service as a crew leader in a youth corps 
program or a similar position supporting an AmeriCorps program; and
    (4) Such other AmeriCorps positions as the Corporation considers to 
be appropriate.
    (b) Because programs applying only for AmeriCorps educational awards 
must, by definition, meet the same basic requirements as other approved 
AmeriCorps programs, applicants must comply with the same application 
requirements specified in Sec.  2522.300.



Sec.  2522.320  [Reserved]



Sec.  2522.330  [Reserved]



Sec.  2522.340  How will I know if two projects are the same?

    The Corporation will consider two projects to be the same if the 
Corporation cannot identify a meaningful difference between the two 
projects based on a comparison of the following characteristics, among 
others:
    (a) The objectives and priorities of the projects;
    (b) The nature of the services provided;
    (c) The program staff, participants, and volunteers involved;
    (d) The geographic locations in which the services are provided;
    (e) The populations served; and
    (f) The proposed community partnerships.

[73 FR 53760, Sept. 17, 2008]

[[Page 728]]



               Subpart D_Selection of AmeriCorps Programs



Sec.  2522.400  What process does the Corporation use to select new grantees?

    The Corporation uses a multi-stage process, which may include review 
by panels of experts, Corporation staff review, and approval by the 
Chief Executive Officer or the Board of Directors, or their designee.

[70 FR 39600, July 8, 2005]



Sec.  2522.410  What is the role of the Corporation's Board of Directors 
in the selection process?

    The Board of Directors has general authority to determine the 
selection process, including priorities and selection criteria, and has 
authority to make grant decisions. The Board may delegate these 
functions to the Chief Executive Officer.

[70 FR 39600, July 8, 2005]



Sec.  2522.415  How does the grant selection process work?

    The selection process includes:
    (a) Determining whether your proposal complies with the application 
requirements, such as deadlines and eligibility requirements;
    (b) Applying the basic selection criteria to assess the quality of 
your proposal;
    (c) Applying any applicable priorities or preferences, as stated in 
these regulations and in the applicable Notice of Funding Availability; 
and
    (d) Ensuring innovation and geographic, demographic, and 
programmatic diversity across the Corporation's national AmeriCorps 
portfolio.

[70 FR 39600, July 8, 2005]



Sec.  2522.420  What basic criteria does the Corporation use 
in making funding decisions?

    In evaluating your application for funding, the Corporation will 
assess:
    (a) Your program design;
    (b) Your organizational capability; and
    (c) Your program's cost-effectiveness and budget adequacy.

[70 FR 39600, July 8, 2005]



Sec.  2522.425  [Reserved]



Sec.  2522.430  [Reserved]



Sec.  2522.435  [Reserved]



Sec.  2522.440  What weight does the Corporation give to each category 
of the basic criteria?

    In evaluating applications, the Corporation assigns the following 
weights for each category:

------------------------------------------------------------------------
                          Category                            Percentage
------------------------------------------------------------------------
Program design.............................................           50
Organizational capability..................................           25
Cost-effectiveness and budget adequacy.....................           25
------------------------------------------------------------------------


[70 FR 39600, July 8, 2005]



Sec.  2522.445  [Reserved]



Sec.  2522.448  [Reserved]



Sec.  2522.450  What types of programs or program models may receive 
special consideration in the selection process?

    Following the scoring of proposals under Sec.  2522.440 of this 
part, the Corporation will seek to ensure that its portfolio of approved 
programs includes a meaningful representation of proposals that address 
one or more of the following priorities:
    (a) Program models: (1) Programs operated by community 
organizations, including faith-based organizations, or programs that 
support the efforts of community organizations, including faith-based 
organizations, to solve local problems;
    (2) Lower-cost professional corps programs, as defined in paragraph 
(a)(3) of Sec.  2522.110 of this chapter.
    (b) Program activities: (1) Programs that serve or involve children 
and youth, including mentoring of disadvantaged youth and children of 
prisoners;
    (2) Programs that address educational needs, including those that 
carry out literacy and tutoring activities generally, and those that 
focus on reading for children in the third grade or younger;
    (3) Programs that focus on homeland security activities that support 
and promote public safety, public health, and preparedness for any 
emergency, natural or man-made (this includes

[[Page 729]]

programs that help to plan, equip, train, and practice the response 
capabilities of many different response units ready to mobilize without 
warning for any emergency);
    (4) Programs that address issues relating to the environment;
    (5) Programs that support independent living for seniors or 
individuals with disabilities;
    (6) Programs that increase service and service-learning on higher 
education campuses in partnership with their surrounding communities;
    (7) Programs that foster opportunities for Americans born in the 
post-World War II baby boom to serve and volunteer in their communities; 
and
    (8) Programs that involve community-development by finding and using 
local resources, and the capacities, skills, and assets of lower-income 
people and their community, to rejuvenate their local economy, 
strengthen public and private investments in the community, and help 
rebuild civil society.
    (c) Programs supporting distressed communities: Programs or projects 
that will be conducted in:
    (1) A community designated as an empowerment zone or redevelopment 
area, targeted for special economic incentives, or otherwise 
identifiable as having high concentrations of low-income people;
    (2) An area that is environmentally distressed, as demonstrated by 
Federal and State data;
    (3) An area adversely affected by Federal actions related to 
managing Federal lands that result in significant regional job losses 
and economic dislocation;
    (4) An area adversely affected by reductions in defense spending or 
the closure or realignment of military installation;
    (5) An area that has an unemployment rate greater than the national 
average unemployment for the most recent 12 months for which State or 
Federal data are available;
    (6) A rural community, as demonstrated by Federal and State data; or
    (7) A severely economically distressed community, as demonstrated by 
Federal and State data.
    (d) Other programs: Programs that meet any additional priorities as 
the Corporation determines and disseminates in advance of the selection 
process.

[70 FR 39600, July 8, 2005]



Sec.  2522.455  How do I find out about additional priorities 
governing the selection process?

    The Corporation posts discretionary funding opportunities addressing 
the Corporation's selection preferences and additional requirements on 
our website at www.nationalservice.gov and at www.grants.gov in advance 
of grant competitions

[70 FR 39600, July 8, 2005]



Sec.  2522.460  To what extent may the Corporation or a State commission 
consider priorities other than those stated in these regulations 
or the Notice of Funding Availability?

    (a) The Corporation may give special consideration to a national 
service program submitted by a State commission that does not meet one 
of the Corporation's priorities if the State commission adequately 
explains why the State is not able to carry out a program that meets one 
of the Corporation's priorities, and why the program meets one of the 
State's priorities.
    (b) A State may apply priorities different than those of the 
Corporation in selecting its formula programs.

[70 FR 39600, July 8, 2005]



Sec.  2522.465  What information must a State commission submit 
on the relative strengths of applicants for State competitive funding?

    (a) If you are a State commission applying for State competitive 
funding, you must prioritize the proposals you submit in rank order 
based on their relative quality and according to the following table:

------------------------------------------------------------------------
    If you submit this number of state         Then you must rank this
 competitive proposals to the corporation        number of proposals
------------------------------------------------------------------------
1 to 12...................................  At least top 5.
13 to 24..................................  At least top 10.
25 or more................................  At least top 15.
------------------------------------------------------------------------

    (b) While the rankings you provide will not be determinative in the 
grant selection process, and the Corporation

[[Page 730]]

will not be bound by them, we will consider them in our selection 
process.

[70 FR 39600, July 8, 2005]



Sec.  2522.470  What other factors or information may the Corporation consider 
in making final funding decisions?

    (a) The Corporation will seek to ensure that our portfolio of 
AmeriCorps programs is programmatically, demographically, and 
geographically diverse and includes innovative programs, and projects in 
rural, high poverty, and economically distressed areas.
    (b) In applying the selection criteria under Sec. Sec.  2522.420 
through 2522.435, the Corporation may, with respect to a particular 
proposal, also consider one or more of the following for purposes of 
clarifying or verifying information in a proposal, including conducting 
due diligence to ensure an applicant's ability to manage Federal funds:
    (1) For an applicant that has previously received a Corporation 
grant, any information or records the applicant submitted to the 
Corporation, or that the Corporation has in its system of records, in 
connection with its previous grant (e.g. progress reports, site visit 
reports, financial status reports, audits, HHS Account Payment Data 
Reports, Federal Cash Transaction Reports, timeliness of past reporting, 
etc.);
    (2) Program evaluations;
    (3) Member-related information from the Corporation's systems;
    (4) Other Corporation internal information, including information 
from the Office of Inspector General, administrative standards for State 
commissions, and reports on program training and technical assistance;
    (5) IRS Tax Form 990;
    (6) An applicant organization's annual report;
    (7) Information relating to the applicant's financial management 
from Corporation records;
    (8) Member satisfaction indicators;
    (9) Publicly available information including:
    (i) Socio-economic and demographic data, such as poverty rate, 
unemployment rate, labor force participation, and median household 
income;
    (ii) Information on where an applicant and its activities fall on 
the U.S. Department of Agriculture's urban-rural continuum (Beale 
codes);
    (iii) Information on the nonprofit and philanthropic community, such 
as charitable giving per capita;
    (iv) Information from an applicant organization's website; and
    (v) U.S. Department of Education data on Federal Work Study and 
Community Service; and
    (10) Other information, following notice in the relevant Notice of 
Funding Availability, of the specific information and the Corporation's 
intention to be able to consider that information in the review process.
    (c) Before approving a program grant to a State commission, the 
Corporation will consider a State commission's capacity to manage and 
monitor grants.

[70 FR 39600, July 8, 2005]



Sec.  2522.475  To what extent must I use the Corporation's selection criteria 
and priorities when selecting formula programs or operating sites?

    You must ensure that the selection criteria you use include the 
following criteria:
    (a) The quality of the national service program proposed to be 
carried out directly by the applicant or supported by a grant from the 
applicant.
    (b) The innovative aspects of the national service program, and the 
feasibility of replicating the program.
    (c) The sustainability of the national service program.
    (d) The quality of the leadership of the national service program, 
the past performance of the program, and the extent to which the program 
builds on existing programs.
    (e) The extent to which participants of the national service program 
are recruited from among residents of the communities in which projects 
are to be conducted, and the extent to which participants and community 
residents are involved in the design, leadership, and operation of the 
program.
    (f) The extent to which projects would be conducted in one of the 
areas listed in Sec.  2522.450(c)(1) through (5) of this subpart.
    (g) In the case of applicants other than States, the extent to which 
the

[[Page 731]]

application is consistent with the application of the State in which the 
projects would be conducted.
    (h) Such other criteria as the Corporation considers to be 
appropriate, following appropriate notice.

[70 FR 39600, July 8, 2005]



Sec.  2522.480  Can a State's application for formula funds be rejected?

    Yes. Formula funds are not an entitlement.
    (a) Notification. If the Corporation rejects an application 
submitted by a State Commission under part 2550 of this chapter for 
funds described in Sec.  2521.30 of this chapter, the Corporation will 
promptly notify the State Commission of the reasons for the rejection of 
the application.
    (b) Revision. The Corporation will provide a State Commission 
notified under paragraph (a) of this section with a reasonable 
opportunity to revise and resubmit the application. At the request of 
the State Commission, the Corporation will provide technical assistance 
to the State Commission as part of the resubmission process. The 
Corporation will promptly reconsider an application resubmitted under 
this paragraph.
    (c) Redistribution. The amount of any State's allotment under Sec.  
2521.30(a) of this chapter for a fiscal year that the Corporation 
determines will not be provided for that fiscal year will be available 
for redistribution by the Corporation to the States, Territories and 
Indian Tribes with approved AmeriCorps applications as the Corporation 
deems appropriate.

[59 FR 13796, Mar. 23, 1994. Redesignated at 70 FR 39600, July 8, 2005]



Sec.  2522.485  How do I calculate my program's budgeted Corporation cost 
per member service year (MSY)?

    If you are an AmeriCorps national and community service program, you 
calculate your Corporation cost per MSY by dividing the Corporation's 
share of budgeted grant costs by the number of member service years you 
are awarded in your grant. You do not include child-care or the cost of 
the education award a member may earn through serving with your program.

[70 FR 39603, July 8, 2005]



                    Subpart E_Evaluation Requirements



Sec.  2522.500  What is the purpose of this subpart?

    (a) This subpart sets forth the minimum performance measures and 
evaluation requirements that you as a Corporation applicant or grantee 
must follow.
    (b) The performance measures that you, as an applicant, propose when 
you apply will be considered in the review process and may affect 
whether the Corporation selects you to receive a grant. Your performance 
related to your approved measures will influence whether you continue to 
receive funding.
    (c) Performance measures and evaluations are designed to strengthen 
your AmeriCorps program and foster continuous improvement, and help 
identify best practices and models that merit replication, as well as 
programmatic weaknesses that need attention.

[70 FR 39603, July 8, 2005]



Sec.  2522.510  To whom does this subpart apply?

    This subpart applies to you if you are a Corporation grantee 
administering an AmeriCorps grant, including an Education Award Program 
grant, or if you are applying to receive AmeriCorps funding from the 
Corporation.

[70 FR 39603, July 8, 2005]



Sec.  2522.520  What special terms are used in this subpart?

    The following definitions apply to terms used in this subpart of the 
regulations:
    (a) Approved application means the application approved by the 
Corporation or, for formula programs, by a State commission.
    (b) Community beneficiaries refers to persons who receive services 
or benefits from a program, but not to AmeriCorps members or to staff of 
the organization operating the program.

[[Page 732]]

    (c) Outputs are the amount or units of service that members or 
volunteers have completed, or the number of community beneficiaries the 
program has served. Outputs do not provide information on benefits or 
other changes in communities or in the lives of members or community 
beneficiaries. Examples of outputs could include the number of people a 
program tutors, counsels, houses, or feeds.
    (d) Intermediate-outcomes specify a change that has occurred in 
communities or in the lives of community beneficiaries or members, but 
is not necessarily a lasting benefit for them. They are observable and 
measurable indications of whether or not a program is making progress 
and are logically connected to end outcomes. An example would be the 
number and percentage of students who report reading more books as a 
result of their participation in a tutoring program.
    (e) Internal evaluation means an evaluation that a grantee performs 
in-house without the use of an independent external evaluator.
    (f) End-outcomes specify a change that has occurred in communities 
or in the lives of community beneficiaries or members that is 
significant and lasting. These are actual benefits or changes for 
participants during or after a program. For example, in a tutoring 
program, the end outcome could be the percent and number of students who 
have improved their reading scores to grade-level, or other specific 
measures of academic achievement.
    (g) Grantee includes subgrantees, programs, and projects.
    (h) National performance measures are performance measures that the 
Corporation develops.
    (i) You refers to a grantee or applicant organization.

[70 FR 39603, July 8, 2005; 70 FR 48882, Aug. 22, 2005]



Sec.  2522.530  May I use the Corporation's program grant funds 
for performance measurement and evaluation?

    If performance measurement and evaluation costs were approved as 
part of your grant, you may use your program grant funds to support 
them, consistent with the level of approved costs for such activities in 
your grant award.

[70 FR 39603, July 8, 2005]



Sec.  2522.540  Do the costs of performance measurement or evaluation count 
towards the statutory cap on administrative costs?

    No, the costs of performance measurement and evaluation do not count 
towards the statutory five percent cap on administrative costs in the 
grant, as provided in Sec.  2540.110 of this chapter.

[70 FR 39603, July 8, 2005]

            Performance Measures: Requirements and Procedures



Sec.  2522.550  What basic requirements must I follow in measuring 
performance under my grant?

    All grantees must establish, track, and assess performance measures 
for their programs. As a grantee, you must ensure that any program under 
your oversight fulfills performance measure and evaluation requirements. 
In addition, you must:
    (a) Establish ambitious performance measures in consultation with 
the Corporation, or the State commission, as appropriate, following 
Sec. Sec.  2422.560 through 2422.660 of this subpart;
    (b) Ensure that any program under your oversight collects and 
organizes performance data on an ongoing basis, at least annually;
    (c) Ensure that any program under your oversight tracks progress 
toward meeting your performance measures;
    (d) Ensure that any program under your oversight corrects 
performance deficiencies promptly; and
    (e) Accurately and fairly present the results in reports to the 
Corporation.

[70 FR 39603, July 8, 2005]



Sec.  2522.560  What are performance measures and performance measurement?

    (a) Performance measures are measurable indicators of a program's 
performance as it relates to member service activities.
    (b) Performance measurement is the process of regularly measuring 
the services provided by your program and

[[Page 733]]

the effect your program has in communities or in the lives of members or 
community beneficiaries.
    (c) The main purpose of performance measurement is to strengthen 
your AmeriCorps program and foster continuous improvement and to 
identify best practices and models that merit replication. Performance 
measurement will also help identify programmatic weaknesses that need 
attention.

[70 FR 39603, July 8, 2005]



Sec.  2522.570  What information on performance measures must 
my grant application include?

    You must submit all of the following as part of your application for 
each program:
    (a) Proposed performance measures, as described in Sec.  2522.580 
and Sec.  2522.590 of this part.
    (b) Estimated performance data for the program years for which you 
submit your application; and
    (c) Actual performance data, where available, as follows:
    (i) For continuation programs, performance data over the course of 
the grant to date; and
    (ii) For recompeting programs, performance data for the preceding 
three-year grant cycle.

[70 FR 39603, July 8, 2005]



Sec.  2522.580  What performance measures am I required to submit 
to the Corporation?

    (a) When applying for funds, you must submit, at a minimum, the 
following performance measures:
    (1) One set of aligned performance measures (one output, one 
intermediate-outcome, and one end-outcome) that capture the results of 
your program's primary activity, or area of significant activity for 
programs whose design precludes identifying a primary activity; and
    (2) Any national performance measures the Corporation may require, 
as specified in paragraph (b) of Sec.  2522.590.
    (b) For example, a tutoring program might use the following aligned 
performance measures:
    (1) Output: Number of students that participated in a tutoring 
program;
    (2) Intermediate-Outcome: Percent of students reading more books; 
and
    (3) End-Outcome: Number and percent of students who have improved 
their reading score to grade level.
    (c) The Corporation encourages you to exceed the minimum 
requirements expressed in this section and expects, in second and 
subsequent grant cycles, that you will more fully develop your 
performance measures, including establishing multiple performance 
indicators, and improving and refining those you used in the past. Any 
performance measures you submit beyond what is required in paragraph 
(a)(1) of this section may or may not be aligned sets of measures.

[70 FR 39603, July 8, 2005]



Sec.  2522.590  Who develops my performance measures?

    (a) You are responsible for developing your program-specific 
performance measures through your own internal process.
    (b) In addition, the Corporation may, in consultation with grantees, 
establish performance measures that will apply to all Corporation-
sponsored programs, which you will be responsible for collecting and 
meeting.

[70 FR 39603, July 8, 2005]



Sec.  2522.600  Who approves my performance measures?

    (a) The Corporation will review and approve performance measures, as 
part of the grant application review process, for all non-formula 
programs. If the Corporation selects your application for funding, the 
Corporation will approve your performance measures as part of your grant 
award.
    (b) If you are a program submitting an application under the State 
formula category, the applicable State commission is responsible for 
reviewing and approving your performance measures. The Corporation will 
not separately approve these measures.

[70 FR 39603, July 8, 2005]



Sec.  2522.610  What is the difference in performance measurements 
requirements for competitive and formula programs?

    (a) Except as provided in paragraph (b) of this section, State 
commissions

[[Page 734]]

are responsible for making the final determination of performance 
measures for State formula programs, while the Corporation makes the 
final determination for all other programs.
    (b) The Corporation may, through the State commission, require that 
formula programs meet certain national performance measures above and 
beyond what the State commission has individually negotiated with its 
formula grantees.
    (c) While State commissions must hold their sub-grantees responsible 
for their performance measures, a State commission, as a grantee, is 
responsible to the Corporation for its formula programs' performance 
measures.

[70 FR 39603, July 8, 2005]



Sec.  2522.620  How do I report my performance measures to the Corporation?

    The Corporation sets specific reporting requirements, including 
frequency and deadlines, for performance measures in the grant award.
    (a) In general, you are required to report on the actual results 
that occurred when implementing the grant and to regularly measure your 
program's performance.
    (b) Your report must include the results on the performance measures 
approved as part of your grant award.
    (c) At a minimum you are required to report on outputs at the end of 
year one and outputs and intermediate outcomes at the end of years two 
and three. We encourage you to exceed these minimum requirements.

[70 FR 39603, July 8, 2005, as amended at 73 FR 53760, Sept. 17, 2008]



Sec.  2522.630  What must I do if I am not able to meet 
my performance measures?

    If you are not on track to meet your performance measures, you must 
develop and submit to the Corporation, or the State commission for 
formula programs, a corrective action plan, consistent with paragraph 
(a) of this section, or submit a request to the Corporation, or the 
State commission for formula programs, consistent with paragraph (b) of 
this section, to amend your requirements under the circumstances 
described in Sec.  2522.640 of this subpart.
    (a) Your corrective action plan must be in writing and include all 
of the following:
    (1) The factors impacting your performance goals;
    (2) The strategy you are using and corrective action you are taking 
to get back on track toward your established performance measures; and
    (3) The timeframe in which you plan to achieve getting back on track 
with your performance measures.
    (b) A request to amend your performance measures must include all of 
the following:
    (1) Why you are not on track to meet your performance requirements;
    (2) How you have been tracking performance measures;
    (3) Evidence of the corrective action you have taken;
    (4) Any new proposed performance measures or targets; and
    (5) Your plan to ensure that you meet any new measures.
    (c) You must submit your plan under paragraph (a) of this section, 
or your request under paragraph (b) of this section, within 30 days of 
determining that you are not on track to meeting your performance 
measures.
    (d) If you are a formula program, the State commission that approves 
the plan under paragraph (a) of this section or the request to amend 
your performance measures under paragraph (b) of this section, must 
forward an information copy to the Corporation's AmeriCorps program 
office within 15 days of approving the plan or the request.

[70 FR 39603, July 8, 2005]



Sec.  2522.640  Under what circumstances may I change 
my performance measures?

    (a) You may change your performance measures only if the Corporation 
or, for formula programs, the State commission, approves your request to 
do so based on your need to:
    (1) Adjust your performance measure or target based on experience so 
that your program's goals are more realistic and manageable;

[[Page 735]]

    (2) Replace a measure related to one issue area with one related to 
a different issue area that is more aligned with your program service 
activity. For example, you may need to replace an objective related to 
health with one related to the environment;
    (3) Redefine the service that individuals perform under the grant. 
For example, you may need to define your service as tutoring adults in 
English, as opposed to operating an after-school program for third-
graders;
    (4) Eliminate an activity because you have been unable to secure 
necessary matching funding; or
    (5) Replace one measure with another. For example, you may decide 
that you want to replace one measure of literacy tutoring (increased 
attendance at school) with another (percentage of students who are 
promoted to the next grade level).
    (b) [Reserved]

[70 FR 39603, July 8, 2005]



Sec.  2522.650  What happens if I fail to meet the performance measures 
included in my grant?

    (a) If you are significantly under-performing based on the 
performance measures approved in your grant, or fail to collect 
appropriate data to allow performance measurement, the Corporation, or 
the State commission for formula grantees, may specify a period of 
correction, after consulting with you. As a grantee, you must report 
results at the end of the period of correction. At that point, if you 
continue to under-perform, or fail to collect appropriate data to allow 
performance measurement, the Corporation may take one or more of the 
following actions:
    (1) Reduce the amount of your grant;
    (2) Suspend or terminate your grant;
    (3) Use this information to assess any application from your 
organization for a new AmeriCorps grant or a new grant under another 
program administered by the Corporation;
    (4) Amend the terms of any Corporation grants to your organization; 
or
    (5) Take other actions that the Corporation deems appropriate.
    (b) If you are a State commission whose formula program(s) is 
significantly under-performing or failing to collect appropriate data to 
allow performance measurement, we encourage you to take action as 
delineated in paragraph (a) of this section.

[70 FR 39603, July 8, 2005]

            Evaluating Programs: Requirements and Procedures



Sec.  2522.700  How does evaluation differ from performance measurement?

    (a) Evaluation is a more in-depth, rigorous effort to measure the 
impact of programs. While performance measurement and evaluation both 
include systematic data collection and measurement of progress, 
evaluation uses scientifically-based research methods to assess the 
effectiveness of programs by comparing the observed program outcomes 
with what would have happened in the absence of the program. Unlike 
performance measures, evaluations estimate the impacts of programs by 
comparing the outcomes for individuals receiving a service or 
participating in a program to the outcomes for similar individuals not 
receiving a service or not participating in a program. For example, an 
evaluation of a literacy program may compare the reading ability of 
students in a program over time to a similar group of students not 
participating in a program.
    (b) Performance measurement is the process of systematically and 
regularly collecting and monitoring data related to the direction of 
observed changes in communities, participants (members), or end 
beneficiaries receiving your program's services. It is intended to 
provide an indication of your program's operations and performance. In 
contrast to evaluation, it is not intended to establish a causal 
relationship between your program and a desired (or undesired) program 
outcome. For example, a performance measure for a literacy program may 
include the percentage of students receiving services from your program 
who increase their reading ability from ``below grade level'' to ``at or 
above grade level''. This measure indicates something good is happening 
to your program's service beneficiaries, but it does not indicate that 
the change can be wholly attributed to your program's services.

[70 FR 39603, July 8, 2005]

[[Page 736]]



Sec.  2522.710  What are my evaluation requirements?

    (a) If you are a State commission, you must establish and enforce 
evaluation requirements for your State formula subgrantees, as you deem 
appropriate.
    (b) If you are a State competitive or direct Corporation AmeriCorps 
grantee (other than an Education Award Program grantee), and your 
average annual Corporation program grant is $500,000 or more, you must 
arrange for an independent evaluation of your program, and you must 
submit the evaluation with any application to the Corporation for 
competitive funds as required in Sec.  2522.730 of this subpart.
    (c) If you are a State competitive or direct Corporation AmeriCorps 
grantee whose average annual Corporation program grant is less than 
$500,000, or an Education Award Program grantee, you must conduct an 
internal evaluation of your program, and you must submit the evaluation 
with any application to the Corporation for competitive funds as 
required in Sec.  2522.730 of this subpart.
    (d) The Corporation may, in its discretion, supersede these 
requirements with an alternative evaluation approach, including one 
conducted by the Corporation at the national level.
    (e) Grantees must cooperate fully with all Corporation evaluation 
activities.

[70 FR 39603, July 8, 2005]



Sec.  2522.720  How many years must my evaluation cover?

    (a) If you are a State formula grantee, you must conduct an 
evaluation, as your State commission requires.
    (b) If you are a State competitive or direct Corporation grantee, 
your evaluation must cover a minimum of one year but may cover longer 
periods.

[70 FR 39603, July 8, 2005]



Sec.  2522.730  How and when do I submit my evaluation to the Corporation?

    (a) If you are an existing grantee recompeting for AmeriCorps funds 
for the first time, you must submit a summary of your evaluation efforts 
or plan to date, and a copy of any evaluation that has been completed, 
as part of your application for funding.
    (b) If you again compete for AmeriCorps funding after a second 
three-year grant cycle, you must submit the completed evaluation with 
your application for funding.

[70 FR 39603, July 8, 2005]



Sec.  2522.740  How will the Corporation use my evaluation?

    The Corporation will consider the evaluation you submit with your 
application as follows:
    (a) If you do not include with your application for AmeriCorps 
funding a summary of the evaluation, or the evaluation itself, as 
applicable, under Sec.  2522.730, the Corporation reserves the right to 
not consider your application.
    (b) If you do submit an evaluation with your application, the 
Corporation will consider the results of your evaluation in assessing 
the quality and outcomes of your program.

[70 FR 39603, July 8, 2005]



Sec.  2522.800  How will the Corporation evaluate individual 
AmeriCorps programs?

    The Corporation will evaluate programs based on the following: (a) 
The extent to which the program meets the objectives established and 
agreed to by the grantee and the Corporation before the grant award;
    (b) The extent to which the program is cost-effective; and
    (c) The effectiveness of the program in meeting the following 
legislative objectives: (1) Providing direct and demonstrable services 
and projects that benefit the community by addressing educational, 
public safety, human, or environmental needs;
    (2) Recruiting and enrolling diverse participants consistent with 
the requirements of part 2540 of this chapter, based on economic 
background, race, ethnicity, age, gender, marital status, education 
levels, and disability;
    (3) Promoting the educational achievement of each participant based 
on earning a high school diploma or its equivalent and future enrollment 
in and completion of increasingly higher levels of education;

[[Page 737]]

    (4) Encouraging each participant to engage in public and community 
service after completion of the program based on career choices and 
participation in other service programs;
    (5) Promoting an ethic of active and productive citizenship among 
participants;
    (6) Supplying additional volunteer assistance to community agencies 
without providing more volunteers than can be effectively utilized;
    (7) Providing services and activities that could not otherwise be 
performed by employed workers and that will not supplant the hiring of, 
or result in the displacement of, employed workers; and
    (8) Other criteria determined and published by the Corporation.

[59 FR 13796, Mar. 23, 1994. Redesignated at 70 FR 39603, July 8, 2005]



Sec.  2522.810  What will the Corporation do to evaluate the overall success 
of the AmeriCorps programs?

    (a) The Corporation will conduct independent evaluations of 
programs, including in-depth studies of selected programs. These 
evaluations will consider the opinions of participants and members of 
the community where services are delivered. Where appropriate these 
studies will compare participants with individuals who have not 
participated in service programs. These evaluations will: (1) Study the 
extent to which the national service impacts involved communities;
    (2) Study the extent to which national service increases positive 
attitudes among participants regarding the responsibilities of citizens 
and their role in solving community problems;
    (3) Study the extent to which national service enables participants 
to afford post-secondary education with fewer student loans;
    (4) Determine the costs and effectiveness of different program 
models in meeting program objectives including full- and part-time 
programs, programs involving different types of national service, 
programs using different recruitment methods, programs offering 
alternative non-federally funded vouchers or post-service benefits, and 
programs utilizing individual placements and teams;
    (5) Determine the impact of programs in each State on the ability of 
VISTA and National Senior Volunteer Corps, each regular and reserve 
component of the Armed Forces, and the Peace Corps to recruit 
individuals residing in that State; and
    (6) Determine the levels of living allowances paid in all AmeriCorps 
programs and American Conservation and Youth Corps, individually, by 
State, and by region and determine the effects that such living 
allowances have had on the ability of individuals to participate in such 
programs.
    (b) The Corporation will also determine by June 30, 1995: (1) 
Whether the State and national priorities designed to meet educational, 
public safety, human, or environmental needs are being addressed;
    (2) Whether the outcomes of both stipended and nonstipended service 
programs are defined and measured appropriately;
    (3) Whether stipended service programs, and service programs 
providing educational benefits in return for service, should focus on 
economically disadvantaged individuals or at risk youth, or whether such 
programs should include a mix of individuals, including individuals from 
middle and upper income families;
    (4) The role and importance of stipends and educational benefits in 
achieving desired outcomes in the service programs;
    (5) The income distribution of AmeriCorps participants, to determine 
the level of participation of economically disadvantaged individuals. 
The total income of participants will be determined as of the date the 
participant was first selected to participate in a program and will 
include family total income unless the evaluating entity determines that 
the participant was independent at the time of selection. Definitions 
for ``independent'' and ``total income'' are those used in section 
480(a) of the Higher Education Act of 1965;
    (6) The amount of assistance provided under the AmeriCorps programs 
that has been expended for projects conducted in areas classified as 
empowerment zones (or redevelopment areas), in areas that are targeted 
for special

[[Page 738]]

economic incentives or are otherwise identifiable as having high 
concentrations of low-income people, in areas that are environmentally 
distressed or adversely affected by Federal actions related to the 
management of Federal lands, in areas that are adversely affected by 
reductions in defense spending, or in areas that have an unemployment 
rate greater than the national average unemployment rate for the most 
recent 12 months for which satisfactory data are available; and
    (7) The implications of the results of these studies as appropriate 
for authorized funding levels.

[59 FR 13796, Mar. 23, 1994. Redesignated at 70 FR 39603, July 8, 2005]



Sec.  2522.820  Will information on individual participants 
be kept confidential?

    (a) Yes. The Corporation will maintain the confidentiality of 
information regarding individual participants that is acquired for the 
purpose of the evaluations described in Sec.  2522.540. The Corporation 
will disclose individual participant information only with the prior 
written consent of the participant. However, the Corporation may 
disclose aggregate participant information.
    (b) Grantees and subgrantees that receive assistance under this 
chapter must comply with the provisions of paragraph (a) of this 
section.

[59 FR 13796, Mar. 23, 1994. Redesignated at 70 FR 39603, July 8, 2005]



         Subpart F_Program Management Requirements for Grantees

    Source: 70 FR 39606, July 8, 2005, unless otherwise noted.



Sec.  2522.900  What definitions apply to this subpart?

    Tutor is defined as someone whose primary goal is to increase 
academic achievement in reading or other core subjects through planned, 
consistent, one-to-one or small-group sessions and activities that build 
on the academic strengths of students in kindergarten through 12th 
grade, and target their academic needs. A tutor does not include someone 
engaged in other academic support activities, such as mentoring and 
after-school program support, whose primary goal is something other than 
increasing academic achievement. For example, providing a safe place for 
children is not tutoring, even if some of the program activities focus 
on homework help.



Sec.  2522.910  What basic qualifications must an AmeriCorps member have 
to serve as a tutor?

------------------------------------------------------------------------
                                           Then the tutor must meet the
            If the tutor is:                following qualifications:
------------------------------------------------------------------------
(a) Is considered to be an employee of   Paraprofessional qualifications
 the Local Education Agency or school,    under No Child Left Behind
 as determined by State law.              Act, as required in 34 CFR
                                          200.58
(b) Is not considered to be an employee  (1) High School diploma or its
 of the Local Education Agency or         equivalent, or a higher
 school, as determined by State law.      degree; and
                                         (2) Successful completion of
                                          pre- and in-service
                                          specialized training, as
                                          required in Sec.   2522.940 of
                                          this subpart.
------------------------------------------------------------------------


[59 FR 13796, Mar. 23, 1994, as amended at 74 FR 46506, Sept. 10, 2009]



Sec.  2522.920  Are there any exceptions to the qualifications requirements?

    The qualifications requirements in Sec.  2522.910 of this subpart do 
not apply to a member who is a K-12 student tutoring younger children in 
the school or after school as part of a structured, school-managed 
cross-grade tutoring program.



Sec.  2522.930  [Reserved]



Sec.  2522.940  What are the requirements for a program in which 
AmeriCorps members serve as tutors?

    A program in which members engage in tutoring for children must:
    (a) Articulate appropriate criteria for selecting and qualifying 
tutors, including the requirements in Sec.  2522.910 of this subpart, 
and certify that selected

[[Page 739]]

tutors meet the requirements in Sec.  2522.910.
    (b) Identify the strategies or tools it will use to assess student 
progress and measure student outcomes;
    (c) Certify that the tutoring curriculum and pre-service and in-
service training content are high-quality and research-based, consistent 
with the instructional program of the local educational agency and with 
State academic content standards.
    (d) Include appropriate member supervision by individuals with 
expertise in tutoring; and
    (e) Provide specialized high-quality and research-based, member pre-
service and in-service training consistent with the activities the 
member will perform.

[70 FR 39606, July 8, 2005, as amended at 74 FR 46506, Sept. 10, 2009]



Sec.  2522.950  What requirements and qualifications apply if my program 
focuses on supplemental academic support activities other than tutoring?

    (a) If your program does not involve tutoring as defined in Sec.  
2522.900 of this subpart, the Corporation will not impose the 
requirements in Sec.  2522.910 through Sec.  2522.940 of this subpart on 
your program.
    (b) At a minimum, you must articulate in your application how you 
will recruit, train, and supervise members to ensure that they have the 
qualifications and skills necessary to provide the service activities in 
which they will be engaged.



PART 2523_AGREEMENTS WITH OTHER FEDERAL AGENCIES FOR THE PROVISION 
OF AMERICORPS PROGRAM ASSISTANCE--Table of Contents



Sec.
2523.10 Are Federal agencies eligible to apply for AmeriCorps program 
          funds?
2523.20 Which Federal agencies may apply for such funds?
2523.30 Must Federal agencies meet the requirements imposed on grantees 
          under parts 2521 and 2522 of this chapter?
2523.40 For what purposes should Federal agencies use AmeriCorps program 
          funds?
2523.50 What types of grants are Federal agencies eligible to receive?
2523.60 May Federal agencies enter into partnerships or participate in 
          consortia?
2523.70 Will the Corporation give special consideration to Federal 
          agency applications that address certain needs?
2523.80 Are there restrictions on the use of Corporation funds?
2523.90 Is there a matching requirement for Federal agencies?
2523.100 Are participants in programs operated by Federal agencies 
          Federal employees?
2523.110 Can Federal agencies submit multiple applications?
2523.120 Must Federal agencies consult with State Commissions?

    Authority: 42 U.S.C. 12571-12595.

    Source: 59 FR 13804, Mar. 23, 1994, unless otherwise noted.



Sec.  2523.10  Are Federal agencies eligible to apply 
for AmeriCorps program funds?

    Yes. Federal agencies may apply for and receive AmeriCorps funds 
under parts 2521 and 2522 of this chapter, and they are eligible to 
receive up to one-third of the funds available for competitive 
distribution under Sec.  2521.30(b)(3) of this chapter. The Corporation 
may enter into a grant, contract or cooperative agreement with another 
Federal agency to support an AmeriCorps program carried out by the 
agency. The Corporation may transfer funds available to it to other 
Federal agencies.



Sec.  2523.20  Which Federal agencies may apply for such funds?

    The Corporation will consider applications only from Executive 
Branch agencies or departments. Bureaus, divisions, and local and 
regional offices of such departments and agencies can only apply through 
the central department or agency; however, it is possible for the 
department or agency to submit an application proposing more than one 
program.



Sec.  2523.30  Must Federal agencies meet the requirements imposed on grantees 
under parts 2521 and 2522 of this chapter?

    Yes, except as provided in Sec.  2523.90. Federal agency programs 
must meet the same requirements and serve the same purposes as all other 
applicants seeking support under part 2522 of this chapter.

[[Page 740]]



Sec.  2523.40  For what purposes should Federal agencies use 
AmeriCorps program funds?

    AmeriCorps funds should enable Federal agencies to establish 
programs that leverage agencies' existing resources and grant-making 
powers toward the goal of integrating service more fully into agencies' 
programs and activities. Agencies should plan to ultimately support new 
service initiatives out of their own budgets and appropriations.



Sec.  2523.50  What types of funds are Federal agencies eligible to receive?

    Federal agencies may apply for planning and operating funds subject 
to the terms established by the Corporation in Sec.  2521.20 of this 
chapter, except that operating grants will be awarded with the 
expectation that the Federal agencies will support the proposed programs 
from their own budgets once the Corporation grant(s) expire.



Sec.  2523.60  May Federal agencies enter into partnerships or participate 
in consortia?

    Yes. Such partnerships or consortia may consist of other Federal 
agencies, Indian Tribes, subdivisions of States, community based 
organizations, institutions of higher education, or other non-profit 
organizations. Partnerships and consortia must be approved by the 
Corporation.



Sec.  2523.70  Will the Corporation give special consideration 
to Federal agency applications that address certain needs?

    Yes. The Corporation will give special consideration to those 
applications that address the national priorities established by the 
Corporation. The Corporation may also give special consideration to 
those applications that demonstrate the agency's intent to leverage its 
own funds through a Corporation-approved partnership or consortium, by 
raising other funds from Federal or non-Federal sources, by giving 
grantees incentives to build service opportunities into their programs, 
by committing appropriate in-kind resources, or by other means.



Sec.  2523.80  Are there restrictions on the use of Corporation funds?

    Yes. The supplantation and nondisplacement provisions specified in 
part 2540 of this chapter apply to the Federal AmeriCorps programs 
supported with such assistance.



Sec.  2523.90  Is there a matching requirement for Federal agencies?

    No. A Federal agency is not required to match funds in programs that 
receive support under this chapter. However, Federal agency subgrantees 
are required to match funds in accordance with the requirements of Sec.  
2521.30(g) and Sec.  2522.240(b)(6) of this chapter.

[59 FR 13804, Mar. 23, 1994, as amended at 73 FR 53760, Sept. 17, 2008]



Sec.  2523.100  Are participants in programs operated by Federal agencies 
Federal employees?

    No. Participants in these programs have the same employee status as 
participants in other approved AmeriCorps programs, and are not 
considered Federal employees, except for the purposes of the Family and 
Medical Leave Act as specified in Sec.  2540.220(b) of this chapter.



Sec.  2523.110  Can Federal agencies submit multiple applications?

    No. The Corporation will only consider one application from a 
Federal agency for each AmeriCorps competition. The application may 
propose more than one program, however, and the Corporation may choose 
to fund any or all of those programs.



Sec.  2523.120  Must Federal agencies consult with State Commissions?

    Yes. Federal agencies must provide a description of the manner in 
which the proposed AmeriCorps program(s) is coordinated with the 
application of the State in which the projects will be conducted. 
Agencies must also describe proposed efforts to coordinate AmeriCorps 
activities with State Commissions and other funded AmeriCorps programs 
within the State in order to build upon existing programs and not 
duplicate efforts.

[[Page 741]]



PART 2524_AMERICORPS TECHNICAL ASSISTANCE AND OTHER SPECIAL GRANTS--
Table of Contents



Sec.
2524.10 For what purposes will technical assistance and training funds 
          be made available?
2524.20 What are the guidelines for program development assistance and 
          training grants?
2524.30 What are the guidelines for challenge grants?
2524.40 What are the guidelines for grants to involve persons with 
          disabilities?
2524.50 What are the guidelines for assistance with disaster relief?

    Authority: 42 U.S.C. 12571-12595.

    Source: 59 FR 13805, Mar. 23, 1994, unless otherwise noted.



Sec.  2524.10  For what purposes will technical assistance and training funds 
be made available?

    (a) To the extent appropriate and necessary, the Corporation may 
make technical assistance available to States, Indian tribes, labor 
organizations, religious organizations, organizations operated by young 
adults, organizations serving economically disadvantaged individuals, 
and other entities eligible to apply for assistance under parts 2521 and 
2522 of this chapter that desire--
    (1) To develop AmeriCorps programs; or
    (2) To apply for assistance under parts 2521 and 2522 of this 
chapter or under a grant program conducted using such assistance.
    (b) In addition, the Corporation may provide program development 
assistance and conduct, directly or by grant or contract, appropriate 
training programs regarding AmeriCorps in order to--
    (1) Improve the ability of AmeriCorps programs assisted under parts 
2521 and 2522 of this chapter to meet educational, public safety, human, 
or environmental needs in communities--
    (i) Where services are needed most; and
    (ii) Where programs do not exist, or are too limited to meet 
community needs, as of the date on which the Corporation makes the grant 
or enters into the contract;
    (2) Promote leadership development in such programs;
    (3) Improve the instructional and programmatic quality of such 
programs to build an ethic of civic responsibility;
    (4) Develop the management and budgetary skills of program 
operators;
    (5) Provide for or improve the training provided to the participants 
in such programs;
    (6) Encourage AmeriCorps programs to adhere to risk management 
procedures, including the training of participants in appropriate risk 
management practices; and
    (7) Assist in such other manner as the Corporation may specify.

[59 FR 13805, Mar. 23, 1994, as amended at 67 FR 45360, July 9, 2002]



Sec.  2524.20  What are the guidelines for program development assistance 
and training grants?

    (a) Eligibility. States, Federal agencies, Indian tribes, public or 
private nonprofit agencies, institutions of higher education, for-profit 
businesses, and individuals may apply for assistance under this section.
    (b) Duration. A grant made under this section will be for a term of 
up to one year and is renewable.
    (c) Application requirements. Eligible applicants must comply with 
the requirements specified in the Corporation's application package.



Sec.  2524.30  What are the guidelines for challenge grants?

    (a) Purpose. The purpose of these grants is to challenge high 
quality AmeriCorps programs to diversify their funding base by matching 
private dollars they have raised with Corporation support. The 
Corporation will provide not more than $1 for each $1 raised in cash by 
the program from private sources in excess of amounts otherwise required 
to be provided by the program to satisfy the matching funds requirements 
specified under Sec.  2521.30(g) of this chapter.
    (b) Eligibility. Only Corporation grantees that meet all of the 
following eligibility criteria may apply for challenge grants: (1) They 
are funded under parts 2520 through 2523 of this chapter.

[[Page 742]]

    (2) They are high quality programs with demonstrated experience in 
establishing and implementing projects that provide benefits to 
participants and communities.
    (3) They have operated with Corporation funds for at least six 
months.
    (4) They have secured the minimum matching funds required by 
Sec. Sec.  2521.30(g), 2522.240(b)(6), 2522.250(a)(4), and 
2522.250(b)(2) of this chapter.
    (c) Allowable program activities. Challenge grants are intended to 
provide special opportunities for national and community service 
programs to enroll additional participants or undertake other activities 
specified by the Corporation.
    (d) Application procedures. Eligible applicants must comply with the 
requirements specified in the Corporation's application materials.
    (e) Limitation on use of the funds. Each year the Corporation will 
establish a maximum award that a program may receive as a challenge 
grant.
    (f) Allocation of funds. The Corporation will determine annually how 
much funding will be allocated to challenge grants from funds 
appropriated for AmeriCorps programs.

[59 FR 13805, Mar. 23, 1994, as amended at 73 FR 53760, Sept. 17, 2008]



Sec.  2524.40  What are the guidelines for grants to involve persons 
with disabilities?

    (a) Purpose. There are two general purposes for these grants: (1) To 
assist AmeriCorps grantees in placing applicants who require reasonable 
accommodation (as defined in section 101(9) of the Americans With 
Disabilities Act of 1990, 42 U.S.C. 12111(9)) or auxiliary aids and 
services (as defined in section 3(1) of such Act, 42 U.S.C. 12102(1)) in 
an AmeriCorps program; and
    (2) To conduct outreach activities to individuals with disabilities 
to recruit them for participation in AmeriCorps programs.
    (b) Eligibility--(1) Placement, accommodation, and auxiliary 
services. Eligibility for assistance under this part is limited to 
AmeriCorps programs that: (i) Receive competitive funding from the 
Corporation under Sec.  2521.30(a)(3) or 2521.30(b)(3) of this chapter; 
and
    (ii) Demonstrate that the program has received a substantial number 
of applications for placement from persons who are individuals with a 
disability and who require a reasonable accommodation (as defined in 
section 101(9) of the Americans with Disabilities Act of 1990), or 
auxiliary aids and services (as defined in section 3(1) of such Act) in 
order to perform national service; and
    (iii) Demonstrate that additional funding would assist the program 
in placing a substantial number of such individuals with a disability as 
participants in projects carried out through the program.
    (2) Outreach. Corporation grantees and any public or private 
nonprofit organization may apply for funds to conduct outreach to 
individuals with disabilities to recruit them for participation in 
AmeriCorps programs. Outreach funds can also be used by any organization 
to assist AmeriCorps programs in adapting their programs to encourage 
greater participation by individuals with disabilities.
    (c) Application procedures. Eligible applicants must comply with the 
requirements specified in the Corporation's application materials.



Sec.  2524.50  What are the guidelines for assistance with disaster relief?

    (a) Purpose. Disaster relief funds are intended to provide emergency 
assistance not otherwise available to enable national and community 
service programs to respond quickly and effectively to a Presidentially-
declared disaster.
    (b) Eligibility. Any AmeriCorps program (including youth corps, the 
National Civilian Community Corps, VISTA, and other programs authorized 
under the Domestic Volunteer Services Act) or grant making entity (such 
as a State or Federal agency) that is supported by the Corporation may 
apply for disaster relief grants.
    (c) Application process. Eligible applicants must comply with the 
requirements specified in the Corporation's application materials.
    (d) Waivers. In appropriate cases, due to the limited nature of 
disaster activities, the Corporation may waive specific program 
requirements such as

[[Page 743]]

matching requirements and the provision of AmeriCorps educational awards 
for participants supported with disaster relief funds.



PART 2525_NATIONAL SERVICE TRUST: PURPOSE AND DEFINITIONS--Table of Contents



Sec.
2525.10 What is the National Service Trust?
2525.20 Definitions.

    Authority: 42 U.S.C. 12601-12606.

    Source: 59 FR 30710, June 15, 1994, unless otherwise noted.



Sec.  2525.10  What is the National Service Trust?

    The National Service Trust is an account in the Treasury of the 
United States from which the Corporation makes payments of education 
awards, pays interest that accrues on qualified student loans for 
AmeriCorps participants during terms of service in approved national 
service positions, and makes other payments authorized by Congress.

[64 FR 37414, July 12, 1999]



Sec.  2525.20  Definitions.

    In addition to the definitions in Sec.  2510.20 of this chapter, the 
following definitions apply to terms used in parts 2525 through 2529 of 
this chapter:
    AmeriCorps education award. For the purposes of this section, the 
term AmeriCorps education award means the financial assistance available 
under parts 2526 through 2528 of this chapter for which an individual in 
an approved AmeriCorps position may be eligible.
    Cost of attendance. The term cost of attendance has the same meaning 
as in title IV of the Higher Education Act of 1965, as amended (20 
U.S.C. 1070 et. seq.).
    Current educational expenses. The term current educational expenses 
means the cost of attendance, or other costs attributable to an 
educational course offered by an institution of higher education that 
has in effect a program participation agreement under Title IV of the 
Higher Education Act, for a period of enrollment that begins after an 
individual enrolls in an approved national service position.
    Economically disadvantaged youth. For the purposes of this section, 
the phrase economically disadvantaged youth means a child who is 
eligible for a free lunch or breakfast under the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1758(b)).
    Education award. For the purposes of this section, the term 
education award refers to the financial assistance available under parts 
2526 through 2528 of this chapter, including AmeriCorps education 
awards, Silver Scholar education awards, and Summer of Service education 
awards.
    Educational expenses at a Title IV institution of higher education. 
The term educational expenses means--
    (1) Cost of attendance as determined by the institution; or
    (2) Other costs at a title IV institution of higher education 
attributable to a non-title IV educational course as follows:
    (i) Tuition and fees normally assessed a student for a course or 
program of study by the institution, including costs for rental or 
purchase of any books or supplies required of all students in the same 
course of study;
    (ii) For a student engaged in a course of study by correspondence, 
only tuition and fees and, if required, books, and supplies;
    (iii) For a student with a disability, an allowance (as determined 
by the institution) for those expenses related to the student's 
disability, including special services, personal assistance, 
transportation, equipment, and supplies that are reasonably incurred and 
not provided for by other assisting agencies; and
    (iv) For a student engaged in a work experience under a cooperative 
education program or course, an allowance for reasonable costs 
associated with such employment (as determined by the institution).
    G.I. Bill approved program. For the purposes of this section, a G.I. 
Bill Approved Program is an educational institution or training 
establishment approved for educational benefits under the Montgomery 
G.I. Bill (38 U.S.C. 3670 et seq.) for offering programs of education, 
apprenticeship, or on-job

[[Page 744]]

training for which educational assistance may be provided by the 
Secretary for Veterans Affairs.
    Holder. The term holder means--
    (1) The original lender; or
    (2) Any other entity to whom a loan is subsequently sold, 
transferred, or assigned if such entity acquires a legally enforceable 
right to receive payments from the borrower.
    Institution of higher education. For the purposes of parts 2525 
through 2529 of this chapter, the term institution of higher education 
has the same meaning given the term in section 481(a) of the Higher 
Education Act of 1965, as amended (20 U.S.C. 1088(a)).
    Period of enrollment. Period of enrollment means the period that the 
title IV institution has established for which institutional charges are 
generally assessed (i.e., length of the student's course, program, or 
academic year.)
    Qualified student loan. The term qualified student loan means any 
loan made, insured, or guaranteed pursuant to title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1070 et seq.), other than a loan to a 
parent of a student pursuant to section 428B of such Act (20 U.S.C. 
1078-2), any loan made pursuant to title VII or VIII of the Public 
Service Health Act (42 U.S.C. 292a et seq.), or any other loan 
designated as such by Congress. This includes, but is not necessarily 
limited to, the following:
    (1) Federal Family Education Loans. (i) Subsidized and Unsubsidized 
Stafford Loans.
    (ii) Supplemental Loans to Students (SLS).
    (iii) Federal Consolidation Loans.
    (iv) Guaranteed Student Loans (predecessor to Stafford Loans).
    (v) Federally Insured Student Loans (FISL).
    (2) William D. Ford Federal Direct Loans. (i) Direct Subsidized and 
Unsubsidized Stafford Loans.
    (ii) Direct Subsidized and Unsubsidized Ford Loans.
    (iii) Direct Consolidation Loans.
    (3) Federal Perkins Loans. (i) National Direct Student Loans.
    (ii) National Defense Student Loans.
    (4) Public Health Service Act Loans. (i) Health Education Assistance 
Loans (HEAL).
    (ii) Health Professions Student Loans (HPSL).
    (iii) Loans for Disadvantaged Students (LDS).
    (iv) Nursing Student Loans (NSL).
    (v) Primary Care Loans (PCL).
    Silver Scholar education award. For the purposes of this section, 
the term Silver Scholar education award means the financial assistance 
available under parts 2526 through 2528 of this chapter for which an 
individual in an approved Silver Scholar position may be eligible.
    Summer of Service education award. For the purposes this section, 
the term Summer of Service education award means the financial 
assistance available under parts 2526 through 2528 of this chapter for 
which an individual in an approved Summer of Service position may be 
eligible.
    Term of service. The term term of service means--
    (1) For an individual serving in an approved AmeriCorps position, 
one of the terms of service specified in Sec.  2522.220 of this chapter;
    (2) For an individual serving in an approved Silver Scholar 
position, not less than 350 hours during a one-year period; and
    (3) For an individual serving in an approved Summer of Service 
position, not less than 100 hours during the summer months of a single 
year.

[59 FR 30711, June 15, 1994, as amended at 64 FR 37414, July 12, 1999; 
65 FR 77821, Dec. 13, 2000; 67 FR 45360, July 9, 2002; 75 FR 51410, Aug. 
20, 2010]



PART 2526_ELIGIBILITY FOR AN EDUCATION AWARD--Table of Contents



Sec.
2526.10 Who is eligible to receive an education award from the National 
          Service Trust?
2526.15 Upon what basis may an organization responsible for the 
          supervision of a national service participant certify that the 
          individual successfully completed a term of service?
2526.20 Is an AmeriCorps participant who does not complete an 
          originally-approved term of service eligible to receive a pro-
          rated education award?

[[Page 745]]

2526.25 Is a participant in an approved Summer of Service position or 
          approved Silver Scholar position who does not complete an 
          approved term of service eligible to receive a pro-rated 
          education award?
2526.30 How do convictions for the possession or sale of controlled 
          substances affect an education award recipient's ability to 
          use that award?
2526.40 What is the time period during which an individual may use an 
          education award?
2526.50 Is there a limit on the total amount of education awards an 
          individual may receive?
2526.55 What is the impact of the aggregate value of education awards 
          received on an individual's ability to serve in subsequent 
          terms of service?
2526.60 May an individual receive an education award and related 
          interest benefits from the National Service Trust as well as 
          other loan cancellation benefits for the same service?
2526.70 What are the effects of an erroneous certification of successful 
          completion of a term of service?

    Authority: 42 U.S.C. 12601-12604, 12606.

    Source: 59 FR 30711, June 15, 1994, unless otherwise noted.



Sec.  2526.10  Who is eligible to receive an education award from 
the National Service Trust?

    (a) General. An individual is eligible to receive an education award 
from the National Service Trust if the organization responsible for the 
individual's supervision in a national service program certifies that 
the individual--
    (1) Met the applicable eligibility requirements for the approved 
AmeriCorps position, approved Silver Scholar position, or approved 
Summer of Service position, as appropriate, in which the individual 
served;
    (2)(i) For an AmeriCorps education award, successfully completed the 
required term of service in the approved national service position;
    (ii) For a partial AmeriCorps education award, completed at least 15 
percent of the originally-approved term of service, and performed 
satisfactorily prior to being granted a release for compelling personal 
circumstances consistent with Sec.  2522.230(a);
    (iii) For a Summer of Service education award, successfully 
completed the required term of service in a Summer of Service position; 
or
    (iv) For a Silver Scholar education award, successfully completed 
the required term of service in a Silver Scholar position; and
    (3) Is a citizen, national, or lawful permanent resident alien of 
the United States.
    (b) High school diploma or equivalent. To use an education award, an 
individual must--
    (1) Have received a high school diploma or its equivalent; or
    (2) Be enrolled at an institution of higher education on the basis 
of meeting the standard described in paragraph (1) or (2) of subsection 
(a) of section 484 of the Higher Education Act of 1965 (20 U.S.C. 1091) 
and meet the requirements of subsection of section 484; or
    (3) Have received a waiver described in Sec.  2522.200(b) of this 
chapter.
    (c) Written declaration regarding high school diploma sufficient for 
disbursement. For purposes of disbursing an education award, if an 
individual provides a written declaration under penalty of law that he 
or she meets the requirements in paragraph (b) of this section relating 
to high school education, no additional documentation is needed.
    (d) Prohibition on duplicate benefits. An individual who receives a 
post-service benefit in lieu of an education award may not receive an 
education award for the same term of service.
    (e) Penalties for false information. Any individual who makes a 
materially false statement or representation in connection with the 
approval or disbursement of an education award or other payment from the 
National Service Trust may be liable for the recovery of funds and 
subject to civil and criminal sanctions.

[64 FR 37414, July 12, 1999, as amended at 67 FR 45361, July 9, 2002; 75 
FR 51411, Aug. 20, 2010]



Sec.  2526.15  Upon what basis may an organization responsible 
for the supervision of a national service participant certify that 
the individual successfully completed a term of service?

    (a) An organization responsible for the supervision of an individual 
serving in an AmeriCorps State and National position must determine 
whether an

[[Page 746]]

individual successfully completed a term of service based upon an end-
of-term evaluation conducted pursuant to Sec.  2522.220(d).
    (b) An organization responsible for the supervision of an individual 
serving in a program other than AmeriCorps State and National must 
determine whether an individual successfully completed a term of service 
based upon an end-of-term evaluation that examines whether the 
individual satisfies all of the following conditions:
    (1) Completed the required number of service hours for the term of 
service;
    (2) Satisfactorily performed on assignments, tasks, or projects; and
    (3) Met any performance criteria as determined by the program and 
communicated to the member.
    (c) A certification by the organization responsible for the 
supervision of an individual that the individual did or did not 
successfully complete a term of service will be deemed to incorporate an 
end-of-term evaluation.

[75 FR 51411, Aug. 20, 2010]



Sec.  2526.20  Is an AmeriCorps participant who does not complete 
an originally-approved term of service eligible to receive a pro-rated 
education award?

    (a) Compelling personal circumstances. A participant in an approved 
AmeriCorps position who is released prior to completing an approved term 
of service for compelling personal circumstances in accordance with 
Sec.  2522.230(a) is eligible for a pro-rated education award if the 
participant--
    (1) Performed satisfactorily prior to being granted a release for 
compelling personal circumstances; and
    (2) Completed at least 15 percent of the originally-approved term of 
service.
    (b) Release for cause. A participant who is released prior to 
completing an originally-approved term of service for cause is not 
eligible for any portion of an education award.

[64 FR 37415, July 12, 1999, as amended at 75 FR 51411, Aug. 20, 2010]



Sec.  2526.25  Is a participant in an approved Summer of Service position 
or approved Silver Scholar position who does not complete an approved 
term of service eligible to receive a pro-rated education award?

    No. An individual released for any reason prior to completing an 
approved term of service in a Silver Scholar or Summer of Service 
position is not eligible to receive a pro-rated award.

[75 FR 51411, Aug. 20, 2010]



Sec.  2526.30  How do convictions for the possession or sale 
of controlled substances affect an education award recipient's ability 
to use that award?

    (a) Except as provided in paragraph (b) of this section, a recipient 
of an education award who is convicted under pertinent Federal or State 
law of the possession or sale of a controlled substance is not eligible 
to use his or her education award from the date of the conviction until 
the end of a specified time period, which is determined based on the 
type of conviction as follows:
    (1) For conviction of the possession of a controlled substance, the 
ineligibility periods are--
    (i) One year for a first conviction;
    (ii) Two years for a second conviction; and
    (iii) For a third or subsequent conviction, indefinitely, as 
determined by the Corporation according to the following factors--
    (A) Type of controlled substance;
    (B) Amount of controlled substance;
    (C) Whether firearms or other dangerous weapons were involved in the 
offense;
    (D) Nature and extent of any other criminal record;
    (E) Nature and extent of any involvement in trafficking of 
controlled substances;
    (F) Length of time between offenses;
    (G) Employment history;
    (H) Service to the community;
    (I) Recommendations from community members and local officials, 
including experts in substance abuse and treatment; and
    (J) Any other relevant aggravating or ameliorating circumstances.

[[Page 747]]

    (2) For conviction of the sale of a controlled substance, the 
ineligibility periods are--
    (i) Two years for a first conviction; and
    (ii) Two years plus such additional time as the Corporation 
determines as appropriate for second and subsequent convictions, based 
on the factors set forth in paragraphs (a)(1)(iii)(A) through (J) of 
this section.
    (b)(1) If the Corporation determines that an individual who has had 
his or her eligibility to use the education award suspended pursuant to 
paragraph (a) of this section has successfully completed a legitimate 
drug rehabilitation program, or in the case of a first conviction that 
the individual has enrolled in a legitimate drug rehabilitation program, 
the individual's eligibility to use the education award will be 
restored.
    (2) In order for the Corporation to determine that the requirements 
of paragraph (b)(1) of this section have been met--
    (i) The drug rehabilitation program must be recognized as legitimate 
by appropriate Federal, State or local authorities; and
    (ii) The individual's enrollment in or successful completion of the 
legitimate drug rehabilitation program must be certified by an 
appropriate official of that program.

[59 FR 30711, June 15, 1994. Redesignated at 64 FR 37415, July 12, 1999]



Sec.  2526.40  What is the time period during which an individual may use 
an education award?

    (a) General requirement. Unless the Corporation approves an 
extension in accordance with the requirements of paragraph (b) of this 
section--
    (1) An individual may use an AmeriCorps education award or a Silver 
Scholar education award within seven years of the date on which the 
individual successfully completed a term of service in an approved 
AmeriCorps or Silver Scholar position;
    (2) An individual may use a Summer of Service education award within 
ten years of the date on which the individual successfully completed a 
term of service in an approved Summer of Service position;
    (3) A designated individual who receives a transferred education 
award in accordance with Sec.  2530.10 may use the transferred education 
award within ten years of the date on which the individual who 
transferred the award successfully completed the term of service in an 
approved AmeriCorps or Silver Scholar position that is the basis of the 
award.
    (b) Extensions. In order to receive an extension of the period of 
availability specified in paragraph (a) of this section for using an 
education award, an individual must apply to the Corporation for an 
extension prior to the end of that time period. The Corporation may 
grant an application for an extension under the following circumstances:
    (1) If the Corporation determines that an individual was performing 
another term of service in an approved AmeriCorps, Summer of Service, or 
Silver Scholar position during the original period of availability, the 
Corporation may grant an extension for a time period that is equivalent 
to the time period during which the individual was performing the other 
term of service.
    (2) If the Corporation determines that an individual was unavoidably 
prevented from using the education award during the original period of 
availability, the Corporation may grant an extension for a period of 
time that the Corporation deems appropriate. An individual who is 
ineligible to use an education award as a result of the individual's 
conviction of the possession or sale of a controlled substance is not 
considered to be unavoidably prevented from using the education award 
for the purposes of this paragraph. In the case of a transferred award, 
an individual who is unable to use an education award as a result of 
being too young to enroll in an institution of higher education or other 
training establishment is not considered to be unavoidably prevented 
from using the education award.

[75 FR 51411, Aug. 20, 2010]

[[Page 748]]



Sec.  2526.50  Is there a limit on the total amount of education awards 
an individual may receive?

    (a) General Limitation. No individual may receive more than an 
amount equal to the aggregate value of two full-time education awards.
    (b) Calculation of the value of an education award. For the purposes 
of this section, the value of an education award is equal to the actual 
amount of the education award received divided by the amount of a full-
time education award in the year the AmeriCorps or Silver Scholar 
position to which the award is attributed was approved. Each award 
received will be considered to have a value between 0 and 1. Although 
the amount of a full-time award as defined in Sec.  2527.10(a) may 
change, the value of a full-time award will always be equal to 1.
    (c) Calculation of aggregate value of awards received. The aggregate 
value of awards received is equal to the sum of:
    (1) The value of each education award received as a result of 
successful completion of an approved AmeriCorps position;
    (2) The value of each partial education award received as a result 
of release from an approved AmeriCorps position for compelling personal 
circumstances;
    (3) The value of each education award received as a result of 
successful completion of a term of service in an approved Silver Scholar 
position; and
    (4) The value of any amount received as a transferred education 
award, except as provided in Sec.  2530.60(c).
    (d) Determination of Receipt of Award. For purposes of determining 
the aggregate value of education awards, an award is considered to be 
received at the time it becomes available for an individual's use.

[75 FR 51411, Aug. 20, 2010]



Sec.  2526.55  What is the impact of the aggregate value of education awards 
received on an individual's ability to serve in subsequent terms of service?

    The aggregate value of education awards an individual has received 
will not impact an individual's ability to serve in a subsequent term of 
service, but will impact the amount of the education award the 
individual may receive upon successful completion of that term of 
service. If the award amount offered for the term of service has a value 
that, when added to the aggregate value of awards previously received, 
would exceed 2, upon successful completion of the term of service, the 
individual will only receive that portion of the award having a value 
for which the individual is eligible pursuant to Sec.  2527.10(g).

[75 FR 51412, Aug. 20, 2010]



Sec.  2526.60  May an individual receive an education award and related 
interest benefits from the National Service Trust as well as other loan 
cancellation benefits for the same service?

    An individual may not receive an education award and related 
interest benefits from the National Service Trust for a term of service 
and have that same service credited toward repayment, discharge, or 
cancellation of other student loans, except an individual may credit the 
service toward the Public Service Loan Forgiveness Program, as provided 
under 34 CFR Sec.  685.219.

[75 FR 51412, Aug. 20, 2010]



Sec.  2526.70  What are the effects of an erroneous certification 
of successful completion of a term of service?

    (a) If the Corporation determines that the certification made by a 
national service program under Sec.  2526.10(a)(2)(i), (2)(iii), or 
(2)(iv) is erroneous, the Corporation shall assess against the national 
service program a charge for the amount of any associated payment or 
potential payment from the National Service Trust, taking into 
consideration the full facts and circumstances surrounding the erroneous 
or incorrect certification.
    (b) Nothing in this section shall prohibit the Corporation from 
taking any action authorized by law based upon any certification that is 
knowingly made in a false, materially misleading, or fraudulent manner.

[75 FR 51412, Aug. 20, 2010]

[[Page 749]]



PART 2527_DETERMINING THE AMOUNT OF AN EDUCATION AWARD--Table of Contents



    Authority: 42 U.S.C. 12601-12606.

    Source: 64 FR 37415, July 12, 1999, unless otherwise noted.



Sec.  2527.10  What is the amount of an education award?

    (a) Full-time term of service. Except as provided in paragraph (g) 
of this section, the education award for a full-time term of service in 
an approved AmeriCorps position of at least 1,700 hours will be equal to 
the maximum amount of a Federal Pell Grant under Section 401 of the 
Higher Education Act of 1965 (20 U.S.C. 1070a) that a student eligible 
for such grant may receive in the aggregate for the award year in which 
the term of service is approved by the Corporation.
    (b) Part-time term of service. Except as provided in paragraph (g), 
the education award for a part-time term of service in an approved 
AmeriCorps position of at least 900 hours is equal to one half of the 
amount of an education award amount for a full-time term of service 
described in paragraph (a) of this section.
    (c) Reduced part-time term of service. Except as provided in 
paragraph (g), the education award for a reduced part-time term of 
service in an approved AmeriCorps position of fewer than 900 hours is:
    (1) An amount equal to the product of:
    (i) The number of hours of service required to complete the reduced 
part-time term of service divided by 900; and
    (ii) The amount of the education award for a part-time term of 
service described in paragraph (b) of this section; or
    (2) An amount as determined otherwise by the Corporation.
    (d) Release for compelling personal circumstances. The education 
award for an individual who is released from completing an originally-
approved term of service for compelling personal circumstances is equal 
to the product of--
    (1) The number of hours completed divided by the number of hours in 
the originally-approved term of service; and
    (2) The amount of the education award for the originally-approved 
term of service.
    (e) Summer of Service Education Award. (1) In general. The education 
award for a term of service in an approved Summer of Service position 
for at least 100 hours is $500.
    (2) Exception. The Corporation may authorize a Summer of Service 
education award of $750 if the participant is economically 
disadvantaged, as verified by the organization or school operating the 
Summer of Service program.
    (f) Silver Scholar Education Award. Except as provided in paragraph 
(g) of this section, the education award for a term of service in an 
approved Silver Scholar position for at least 350 hours is $1,000.
    (g) Calculating discounted education award amount. To ensure that an 
individual receives no more than the aggregate value of two awards, as 
determined pursuant to Sec.  2526.50, the discounted amount an 
individual is eligible to receive is determined by the following 
formula:

(2-aggregate value of awards the individual has received) x (amount of a 
full-time education award in the year the position is approved)

[64 FR 37415, July 12, 1999, as amended at 75 FR 51412, Aug. 20, 2010]



PART 2528_USING AN EDUCATION AWARD--Table of Contents



Sec.
2528.10 For what purposes may an education award be used?
2528.20 What steps are necessary to use an education award to repay a 
          qualified student loan?
2528.30 What steps are necessary to use an education award to pay all or 
          part of the current educational expenses at an institution of 
          higher education?
2528.40 Is there a limit on the amount of an individual's education 
          award that the Corporation will disburse to an institution of 
          higher education for a given period of enrollment?
2528.50 What happens if an individual withdraws or fails to complete the 
          period of enrollment in an institution of higher education for 
          which the Corporation has

[[Page 750]]

          disbursed all or part of that individual's education award?
2528.60 Who may use the education award to pay expenses incurred in 
          enrolling in a G.I. Bill approved program?
2528.70 What steps are necessary to use an education award to pay 
          expenses incurred in enrolling in a G.I. Bill approved 
          program?
2528.80 What happens if an individual for whom the Corporation has 
          disbursed education award funds withdraws or fails to complete 
          the period of enrollment in a G.I. Bill approved program?

    Authority: 42 U.S.C. 12601-12606.

    Source: 64 FR 37415, July 12, 1999, unless otherwise noted.



Sec.  2528.10  For what purposes may an education award be used?

    (a) Authorized uses. An education award may be used--
    (1) To repay qualified student loans in accordance with Sec.  
2528.20;
    (2) To pay all or part of the current educational expenses at an 
institution of higher education in accordance with Sec. Sec.  2528.30 
through 2528.50;
    (3) To pay expenses incurred in enrolling in a G.I. Bill approved 
program, in accordance with Sec. Sec.  2528.60-80.
    (b) Multiple uses. An education award is divisible and may be 
applied to any combination of loans, costs, or expenses described in 
paragraph (a) of this section.

[64 FR 37415, July 12, 1999, as amended at 67 FR 45361, July 9, 2002; 75 
FR 51412, Aug. 20, 2010]



Sec.  2528.20  What steps are necessary to use an education award to repay 
a qualified student loan?

    (a) Required information. Before disbursing an amount from an 
education award to repay a qualified student loan, the Corporation must 
receive--
    (1) An individual's written authorization and request for a specific 
payment amount;
    (2) Identifying and other information from the holder of the loan as 
requested by the Corporation and necessary to ensure compliance with 
this part.
    (b) Payment. When the Corporation receives the information required 
under paragraph (a) of this section, the Corporation will pay the holder 
of the loan and notify the individual of the payment.
    (c) Aggregate payments. The Corporation may establish procedures to 
aggregate payments to holders of loans for more than a single 
individual.



Sec.  2528.30  What steps are necessary to use an education award to pay 
all or part of the current educational expenses at an institution 
of higher education?

    (a) Required information. Before disbursing an amount from an 
education award to pay all or part of the current educational expenses 
at an institution of higher education, the Corporation must receive--
    (1) An individual's written authorization and request for a specific 
payment amount;
    (2) Information from the institution of higher education as 
requested by the Corporation, including verification that--
    (i) It has in effect a program participation agreement under section 
487 of the Higher Education Act of 1965 (20 U.S.C. 1094);
    (ii) Its eligibility to participate in any of the programs under 
title IV of the Higher Education Act of 1965 has not been limited, 
suspended, or terminated;
    (iii) If an individual who has used an education award withdraws or 
otherwise fails to complete the period of enrollment for which the 
education award was provided, the institution of higher education will 
ensure an appropriate refund to the Corporation of the unused portion of 
the education award under its own published refund policy, or if it does 
not have one, provide a pro-rata refund to the Corporation of the unused 
portion of the education award;
    (iv) Individuals using education awards to pay for the current 
educational expenses at that institution do not comprise more than 15 
percent of the institution's total student population;
    (v) The amount requested will be used to pay all or part of the 
individual's cost of attendance or other educational expenses 
attributable to a course offered by the institution;
    (vi) The amount requested does not exceed the difference between:

[[Page 751]]

    (A) The individual's cost of attendance and other educational 
expenses; and
    (B) The individual's estimated student financial assistance for that 
period under part A of title IV of the Higher Education Act (20 U.S.C. 
1070 et seq.).
    (b) Payment. When the Corporation receives the information required 
under paragraph (a) of this section, the Corporation will pay the 
institution and notify the individual of the payment.
    (c) Installment payments. The Corporation will disburse the 
education award to the institution of higher education in at least two 
separate installments, none of which exceeds 50 percent of the total 
amount. The interval between installments may not be less than one-half 
of the period of enrollment, except as necessary to permit the second 
installment to be paid at the beginning of the second semester, quarter, 
or other division of a period of enrollment.

[64 FR 37415, July 12, 1999, as amended at 67 FR 45361, July 9, 2002; 75 
FR 51413, Aug. 20, 2010]



Sec.  2528.40  Is there a limit on the amount of an individual's 
education award that the Corporation will disburse to an institution 
of higher education for a given period of enrollment?

    Yes. The Corporation's disbursement from an individual's education 
award for any period of enrollment may not exceed the difference 
between--
    (a) The individual's cost of attendance and other educational 
expenses, determined by the institution of higher education in 
accordance with section 472 of the Higher Education Act of 1965 (20 
U.S.C. 1987ll); and
    (b) The individual's estimated financial assistance for that period 
under part A of title IV of the Higher Education Act.

[64 FR 37415, July 12, 1999, as amended at 75 FR 51413, Aug. 20, 2010]



Sec.  2528.50  What happens if an individual withdraws or fails to complete 
the period of enrollment in an institution of higher education for which the 
Corporation has disbursed all or part of that individual's education award?

    (a)(1) If an individual for whom the Corporation has disbursed 
education award funds withdraws or otherwise fails to complete a period 
of enrollment, an institution of higher education that receives a 
disbursement of education award funds from the Corporation must provide 
a refund to the Corporation in an amount determined under that 
institution's published refund requirements.
    (2) If an institution for higher education does not have a published 
refund policy, the institution must provide a pro-rata refund to the 
Corporation of the unused portion of the education award.
    (b) The Corporation will credit any refund received for an 
individual under paragraph (a) of this section to the individual's 
education award allocation in the National Service Trust.

[64 FR 37415, July 12, 1999, as amended at 67 FR 45361, July 9, 2002]



Sec.  2528.60  Who may use the education award to pay expenses incurred 
in enrolling in a G.I. Bill approved program?

    To use the education award to pay expenses for this purpose, you 
must have received an education award for successfully completing a term 
in an approved AmeriCorps position, approved Summer of Service position, 
or approved Silver Scholar position, in which you enrolled on or after 
October 1, 2009.

[75 FR 51413, Aug. 20, 2010]



Sec.  2528.70  What steps are necessary to use an education award to pay 
expenses incurred in enrolling in a G.I. Bill approved program?

    (a) Required Information. Before disbursing an amount from an 
education award for this purpose, the Corporation must receive--
    (1) An individual's written authorization and request for a specific 
payment amount;

[[Page 752]]

    (2) Verification from the individual that the individual meets the 
criteria in Sec.  2528.60; and
    (3) Information from the educational institution or training 
establishment as requested by the Corporation, including verification 
that--
    (i) The amount requested will be used to pay all or part of the 
individual's expenses attributable to a course, program of education, 
apprenticeship, or job training offered by the institution or 
establishment;
    (ii) The course(s) or program(s) for which the individual is 
requesting to use the education award has been and is currently approved 
by the State approving agency for the State where the institution or 
establishment is located, or by the Secretary of Veterans Affairs; and
    (iii) If an individual who has used an education award withdraws or 
otherwise fails to complete the period of enrollment for which the 
education award was provided, the institution or establishment will 
ensure a pro-rata refund to the Corporation of the unused portion of the 
education award.
    (b) Payment. When the Corporation receives the information required 
under paragraph (a) of this section, the Corporation will pay the 
institution or establishment and notify the individual of the payment.

[75 FR 51413, Aug. 20, 2010]



Sec.  2528.80  What happens if an individual for whom the Corporation 
has disbursed education award funds withdraws or fails to complete 
the period of enrollment in a G.I. Bill approved program?

    (a) If an individual for whom the Corporation has disbursed 
education award funds withdraws or otherwise fails to complete a period 
of enrollment, the approved educational institution or training 
establishment that receives a disbursement of education award funds from 
the Corporation must provide a pro-rata refund to the Corporation of the 
unused portion of the education award.
    (b) The Corporation will credit any refund received for an 
individual under paragraph (a) of this section to the individual's 
education award allocation in the National Service Trust.

[75 FR 51413, Aug. 20, 2010]



PART 2529_PAYMENT OF ACCRUED INTEREST--Table of Contents



Sec.
2529.10 Under what circumstances will the Corporation pay interest that 
          accrues on qualified student loans during an individual's term 
          of service in an approved AmeriCorps position or approved 
          Silver Scholar position?
2529.20 What steps are necessary to obtain forbearance in the repayment 
          of a qualified student loan during an individual's term of 
          service in an approved AmeriCorps position?
2529.30 What steps are necessary for using funds in the National Service 
          Trust to pay interest that has accrued on a qualified student 
          loan during a term of service for which the individual has 
          obtained forbearance?

    Authority: 42 U.S.C. 12601-12606.

    Source: 64 FR 37417, July 12, 1999, unless otherwise noted.



Sec.  2529.10  Under what circumstances will the Corporation pay interest 
that accrues on qualified student loans during an individual's term of service 
in an approved AmeriCorps position or approved Silver Scholar position?

    (a) Eligibility. The Corporation will pay interest that accrues on 
an individual's qualified student loan, subject to the limitation on 
amount in paragraph (b) of this section, if--
    (1) The individual successfully completes a term of service in an 
approved AmeriCorps position or approved Silver Scholar position; and
    (2) The holder of the loan approves the individual's request for 
forbearance during the term of service.
    (b) Amount. The percentage of accrued interest that the Corporation 
will pay is the lesser of--
    (1) The product of--
    (i) The number of hours of service completed divided by the number 
of days for which forbearance was granted; and
    (ii) 365 divided by 17; and (2) 100.
    (c) Supplemental to education award. A payment of accrued interest 
under this part is supplemental to an education

[[Page 753]]

award received by an individual under parts 2526 through 2528 of this 
chapter.
    (d) Limitation. The Corporation is not responsible for the repayment 
of any accrued interest in excess of the amount determined in accordance 
with paragraph (b) of this section.
    (e) Suspended service. The Corporation will not pay any interest 
expenses that accrue on an individual's qualified student loan during a 
period of suspended service.

[64 FR 37417, July 12, 1999, as amended at 75 FR 51413, Aug. 20, 2010]



Sec.  2529.20  What steps are necessary to obtain forbearance in the repayment 
of a qualified student loan during an individual's term of service 
in an approved AmeriCorps position?

    (a) An individual seeking forbearance must submit a request to the 
holder of the loan.
    (b) If, before approving a request for forbearance, the holder of 
the loan requires verification that the individual is serving in an 
approved AmeriCorps position, the Corporation will provide verification 
upon a request from the individual or the holder of the loan.



Sec.  2529.30  What steps are necessary for using funds in 
the National Service Trust to pay interest that has accrued on a qualified 
student loan during a term of service for which an individual 
has obtained forbearance?

    (a) The Corporation will make payments from the National Service 
Trust for interest that has accrued on a qualified student loan during a 
term of service which the individual has successfully completed and for 
which an individual has obtained forbearance, after the following:
    (1) The program verifies that the individual has successfully 
completed the term of service and the dates upon which the term of 
service began and ended;
    (2) The holder of the loan verifies the amount of interest that has 
accrued during the term of service.
    (b) When the Corporation receives all necessary information from the 
program and the holder of the loan, the Corporation will pay the holder 
of the loan and notify the individual of the payment.



PART 2530_TRANSFER OF EDUCATION AWARDS--Table of Contents



Sec.
2530.10 Under what circumstances may an individual transfer an education 
          award?
2530.20 For what purposes may a transferred award be used?
2530.30 What steps are necessary to transfer an education award?
2530.40 Is there a limit on the number of individuals one may designate 
          to receive a transferred award?
2530.50 Is there a limit on the amount of transferred awards a 
          designated individual may receive?
2530.60 What is the impact of transferring or receiving a transferred 
          education award on an individual's eligibility to receive 
          additional education awards?
2530.70 Is a designated individual required to accept a transferred 
          education award?
2530.80 Under what circumstances is a transfer revocable?
2530.85 What steps are necessary to revoke a transfer?
2530.90 Is a designated individual eligible for the payment of accrued 
          interest under Part 2529?

    Authority: 42 U.S.C. 12601-12606.

    Source: 75 FR 51413, Aug. 20, 2010, unless otherwise noted.



Sec.  2530.10  Under what circumstances may an individual transfer 
an education award?

    An individual may transfer an education award if--
    (a) The individual enrolled in an approved AmeriCorps State and 
National position or approved Silver Scholar position on or after 
October 1, 2009;
    (b) The individual was age 55 or older on the day the individual 
commenced the term of service in an approved AmeriCorps State and 
National position or in approved Silver Scholar position;
    (c) The individual successfully completed a term of service in an 
approved AmeriCorps State and National position or an approved Silver 
Scholar position;
    (d) The award the individual is requesting to transfer has not 
expired, consistent with the period of availability set forth in Sec.  
2526.40(a);

[[Page 754]]

    (e) The individual designated to receive the transferred award is 
the transferring individual's child, grandchild, or foster child; and
    (f) The individual designated to receive the transferred award is a 
citizen, national, or lawful permanent resident alien of the United 
States.



Sec.  2530.20  For what purposes may a transferred award be used?

    A transferred award may be used by a designated individual to repay 
qualified student loans or to pay current educational expenses at an 
institution of higher education, as described in Sec.  2528.10.



Sec.  2530.30  What steps are necessary to transfer an education award?

    (a) Request for Transfer. Before transferring an award to a 
designated individual, the Corporation must receive a request from the 
transferring individual, including--
    (1) The individual's written authorization to transfer the award, 
the year in which the award was earned, and the specific amount of the 
award to be transferred;
    (2) Identifying information for the individual designated to receive 
the transferred award;
    (3) A certification that the transferring individual meets the 
requirements of paragraphs (a) through (c) of Sec.  2530.10; and
    (4) A certification that the designated individual is the child, 
grandchild, or foster child of the transferring individual.
    (b) Notification to Designated Individual. Upon receipt of a request 
including all required information listed in paragraph (a) of this 
section, the Corporation will contact the designated individual to 
notify the individual of the proposed transfer, confirm the individual's 
identity, and give the individual the opportunity to accept or reject 
the transferred award.
    (c) Acceptance by Designated Individual. To accept an award, a 
designated individual must certify that the designated individual is the 
child, grandchild, or foster child of the transferring individual and 
that the designated individual is a citizen, national, or lawful 
permanent resident alien of the United States. Upon receipt of the 
designated individual's acceptance, the Corporation will create or 
permit the creation of an account in the National Service Trust for the 
designated individual, if an account does not already exist, and the 
accepted amount will be deducted from the transferring individual's 
account and credited to the designated individual's account.
    (d) Timing of transfer. The Corporation must receive the request 
from the transferring individual prior to the date the award expires.



Sec.  2530.40  Is there a limit on the number of individuals one 
may designate to receive a transferred award?

    (a) General Limitation. For each award an individual earns as a 
result of successfully completing a single term of service, an 
individual may transfer all or part of the award to a single designated 
individual. An individual may not transfer a single award attributable 
to successful completion of a single term of service to more than one 
designated individual.
    (b) Re-transfer. If a designated individual rejects a transferred 
award in full, or the Corporation otherwise determines that a transfer 
was revoked for good cause in accordance with Sec.  2530.80(c), the 
transferring individual may designate another individual to receive the 
transferred award.



Sec.  2530.50  Is there a limit on the amount of transferred awards 
a designated individual may receive?

    Consistent with Sec.  2526.50, no individual may receive more than 
an amount equal to the value of two full-time education awards. If the 
sum of the value of the requested transfer plus the aggregate value of 
education awards a designated individual has previously received would 
exceed the aggregate value of two full-time education awards, as 
determined pursuant to Sec.  2526.50(b), the designated individual will 
be deemed to have rejected that portion of the award that would result 
in the excess. If a designated individual has already received the 
aggregate value of two full-time education awards, the individual may 
not receive a transferred education award, and the

[[Page 755]]

designated individual will be deemed to have rejected the award in full.



Sec.  2530.60  What is the impact of transferring or receiving a transferred 
education award on an individual's eligibility to receive additional 
education awards?

    (a) Impact on Transferring Individual. Pursuant to Sec.  2526.50, an 
award is considered to be received at the time it becomes available for 
an individual's use. Transferring all or part of an award does not 
reduce the aggregate value of education awards the transferring 
individual is considered to have received.
    (b) Impact on Designated Individual. For the purposes of determining 
the value of the transferred education award under Sec.  2526.50, a 
designated individual will be considered to have received a value equal 
to the amount accepted divided by the amount of a full-time award in the 
year the transferring individual's position was approved.
    (c) Result of revocation on award value. If the transferring 
individual revokes, in whole or in part, a transfer, the value of the 
education award considered to have been received by the designated 
individual for purposes of Sec.  2526.50 will be reduced accordingly.



Sec.  2530.70  Is a designated individual required to accept a transferred 
education award?

    (a) General Rule. A designated individual is not required to accept 
a transferred education award, and may reject an award in whole or in 
part.
    (b) Result of rejection in full. If the designated individual 
rejects a transferred award in whole, the amount is credited to the 
transferring individual's account in the National Service Trust, and may 
be transferred to another individual, or may be used by the transferring 
individual for any of the purposes listed in Sec.  2528.10, consistent 
with the original time period of availability set forth in Sec.  
2526.40(a).
    (c) Result of rejection in part. If the designated individual 
rejects a transferred award in part, the rejected portion is credited to 
the transferring individual's account in the National Service Trust, and 
may be used by the transferring individual's for any of the purposes 
listed in Sec.  2528.10, consistent with the original time period of 
availability set forth in Sec.  2526.40(a). An individual may not re-
transfer the rejected portion of the award to another individual.



Sec.  2530.80  Under what circumstances is a transfer revocable?

    (a) Revocation. An individual may revoke a transfer at any time and 
for any reason prior to the award's use by the designated individual.
    (b) Use of Award. Upon revocation, the amount revoked will be 
deducted from the designated individual's account and credited to the 
transferring individual's account. The transferring individual may use 
the revoked transferred education award for any of the purposes 
described in Sec.  2528.10, consistent with the original time period of 
availability set forth in Sec.  2526.40(a).
    (c) Re-transfer. Generally, an individual may not re-transfer an 
award to another individual after revoking the same award from the 
original designated individual. The Corporation may approve re-transfer 
of an award for good cause, including cases in which the original 
designated individual was unavoidably prevented from using the award, as 
demonstrated by the individual transferring the award.



Sec.  2530.85  What steps are necessary to revoke a transfer?

    (a) Request for revocation. Before revoking a transfer, the 
transferring individual must submit a request to the Corporation that 
includes --
    (1) The individual's written authorization to revoke the award;
    (2) The year in which the award was earned;
    (3) The specific amount to be revoked; and
    (4) The identity of the designated individual.
    (b) Credit to transferring individual. Upon receipt of a request 
including all required information listed in paragraph (a) of this 
section, the Corporation will deduct the amount specified in the 
transferring individual's request from the designated individual's 
account and credit the amount to the account of the transferring 
individual, except as provided in paragraph (c) of

[[Page 756]]

this section. The Corporation will notify the transferring individual of 
the amount revoked.
    (c) Used awards. A revocation may only apply to that portion of the 
transferred award that has not been used by the designated individual. 
If the designated individual has used the entire transferred amount 
prior to the date the Corporation receives the revocation request, no 
amount will be returned to the transferring individual. An amount is 
considered to be used when it is disbursed from the National Service 
Trust, not when a request is received to use an award.
    (d) Notification to designated individual. The Corporation will 
notify the designated individual of the amount being revoked as of the 
date of the Corporation's receipt of the revocation request.
    (e) Timing of revocation. The Corporation must receive the request 
to revoke the transfer from the transferring individual prior to the 
award's expiration ten years from the date the award was originally 
earned.



Sec.  2530.90  Is a designated individual eligible for the payment 
of accrued interest under Part 2529?

    No, an individual must have successfully completed a term of service 
in an approved AmeriCorps position or Silver Scholar position to be 
eligible for the payment of accrued interest under Part 2529.



PART 2531_PURPOSES AND AVAILABILITY OF GRANTS FOR INVESTMENT FOR QUALITY 
AND INNOVATION ACTIVITIES--Table of Contents



Sec.
2531.10 What are the purposes of the Investment for Quality and 
          Innovation activities?
2531.20 Funding priorities.

    Authority: 42 U.S.C. 12501 et seq.



Sec.  2531.10  What are the purposes of the Investment for Quality 
and Innovation activities?

    Investment for Quality and Innovation activities are designed to 
develop service infrastructure and improve the overall quality of 
national and community service efforts. Specifically, the Corporation 
will support innovative and model programs that otherwise may not be 
eligible for funding; and support other activities, such as training and 
technical assistance, summer programs, leadership training, research, 
promotion and recruitment, and special fellowships and awards. The 
Corporation may conduct these activities either directly or through 
grants to or contracts with qualified organizations.

[59 FR 13806, Mar. 23, 1994. Redesignated at 75 FR 51413, Aug. 20, 
2010.]



Sec.  2531.20  Funding priorities.

    The Corporation may choose to set priorities (and to periodically 
revise such priorities) that limit the types of innovative and model 
programs and support activities it will undertake or fund in a given 
fiscal year. In setting these priorities, the Corporation will seek to 
concentrate funds on those activities that will be most effective and 
efficient in fulfilling the purposes of this part.

[59 FR 13806, Mar. 23, 1994]



PART 2532_INNOVATIVE AND SPECIAL DEMONSTRATION PROGRAMS--Table of Contents



Sec.
2532.10 Military Installation Conversion Demonstration programs.
2532.20 Special Demonstration Project for the Yukon-Kuskokwim Delta of 
          Alaska.
2532.30 Other innovative and model programs.

    Authority: 42 U.S.C. 12501 et seq.

    Source: 59 FR 13806, Mar. 23, 1994, unless otherwise noted. 
Redesignated at 75 FR 51413, Aug. 20, 2010



Sec.  2532.10  Military Installation Conversion Demonstration programs.

    (a) Purposes. The purposes of this section are to: (1) Provide 
direct and demonstrable service opportunities for economically 
disadvantaged youth;
    (2) Fully utilize military installations affected by closures or 
realignments;
    (3) Encourage communities affected by such closures or realignments 
to convert the installations to community use; and

[[Page 757]]

    (4) Foster a sense of community pride in the youth in the community.
    (b) Definitions. As used in this section: (1) Affected military 
installation. The term affected military installation means a military 
installation described in section 325(e)(1) of the Job Training 
Partnership Act (29 U.S.C. 1662d(e)(1)).
    (2) Community. The term community includes a county.
    (3) Convert to community use. The term convert to community use, 
used with respect to an affected military installation, includes--
    (i) Conversion of the installation or a part of the installation 
to--
    (A) A park;
    (B) A community center;
    (C) A recreational facility; or
    (D) A facility for a Head Start program under the Head Start Act (42 
U.S.C. 9831 et seq.); and
    (ii) Carrying out, at the installation, a construction or economic 
development project that is of substantial benefit, as determined by the 
Chief Executive Officer, to--
    (A) The community in which the installation is located; or
    (B) A community located within 50 miles of the installation or such 
further distance as the Chief Executive Officer may deem appropriate on 
a case-by-case basis.
    (4) Demonstration program. The term demonstration program means a 
program described in paragraph (c) of this section.
    (c) Demonstration programs--(1) Grants--The Corporation may make 
grants to communities and community-based agencies to pay for the 
Federal share of establishing and carrying out military installation 
conversion demonstration programs, to assist in converting to community 
use affected military installations located--
    (i) Within the community; or
    (ii) Within 50 miles of the community.
    (2) Duration. In carrying out such a demonstration program, the 
community or community-based agency may carry out--
    (i) A program of not less than 6 months in duration; or
    (ii) A full-time summer program.
    (d) Use of Funds--(1) Stipend. A community or community-based agency 
that receives a grant under paragraph (c) of this section to establish 
and carry out a project through a demonstration program may use the 
funds made available through such grant to pay for a portion of a 
stipend for the participants in the project.
    (2) Limitation on amount of stipend. The amount of the stipend 
provided to a participant under paragraph (d)(1) of this section that 
may be paid using assistance provided under this section and using any 
other Federal funds may not exceed the lesser of--
    (i) 85 percent of the total average annual subsistence allowance 
provided to VISTA volunteers under section 105 of the Domestic Volunteer 
Service Act of 1973 (42 U.S.C. 4955); and
    (ii) 85 percent of the stipend established by the demonstration 
program involved.
    (e) Participants--(1) Eligibility. A person will be eligible to be 
selected as a participant in a project carried out through a 
demonstration program if the person is--
    (i) Economically disadvantaged and between the ages of 16 and 24, 
inclusive;
    (ii) In the case of a full-time summer program, economically 
disadvantaged and between the ages of 14 and 24; or
    (iii) An eligible youth as described in section 423 of the Job 
Training Partnership Act (29 U.S.C. 1693).
    (2) Participation. Persons desiring to participate in such a project 
must enter into an agreement with the sponsor of the project to 
participate--
    (i) On a full-time or a part-time basis; and
    (ii) For the duration referred to in paragraph (f)(2)(iii) of this 
section.
    (f) Application--(1) In general. To be eligible to receive a grant 
under paragraph (c) of this section, a community or community-based 
agency must submit an application to the Chief Executive Officer at such 
time, in such manner, and containing such information as the Chief 
Executive Officer may require.
    (2) Contents. At a minimum, such application must contain--
    (i) A description of the demonstration program proposed to be 
conducted by the applicant;

[[Page 758]]

    (ii) A proposal for carrying out the program that describes the 
manner in which the applicant will--
    (A) Provide preservice and inservice training, for supervisors and 
participants, that will be conducted by qualified individuals or 
qualified organizations;
    (B) Conduct an appropriate evaluation of the program; and
    (C) Provide for appropriate community involvement in the program;
    (iii) Information indicating the duration of the program; and
    (iv) An assurance that the applicant will comply with the 
nonduplication, nondisplacement and grievance procedure provisions of 
part 2540 of this chapter.
    (g) Limitation on Grant. In making a grant under paragraph (c) of 
this section with respect to a demonstration program to assist in 
converting an affected military installation, the Corporation will not 
make a grant for more than 25 percent of the total cost of the 
conversion.



Sec.  2532.20  Special Demonstration Project for the Yukon-Kuskokwim 
Delta of Alaska.

    (a) Special Demonstration Project for the Yukon-Kuskokwim Delta of 
Alaska. The President may award grants to, and enter into contracts 
with, organizations to carry out programs that address significant human 
needs in the Yukon-Kuskokwim delta region of Alaska.
    (b) Application--(1) General requirements. To be eligible to receive 
a grant or enter into a contract under paragraph (a) of this section 
with respect to a program, an organization must submit an application to 
the President at such time, in such manner, and containing such 
information as required.
    (2) Contents. The application submitted by the organization must, at 
a minimum--
    (i) Include information describing the manner in which the program 
will utilize VISTA volunteers, individuals who have served in the Peace 
Corps, and other qualified persons, in partnership with the local 
nonprofit organizations known as the Yukon-Kuskokwim Health Corporation 
and the Alaska Village Council Presidents;
    (ii) Take into consideration--
    (A) The primarily noncash economy of the region; and
    (B) The needs and desires of residents of the local communities in 
the region; and
    (iii) Include specific strategies, developed in cooperation with the 
Yupi'k speaking population that resides in such communities, for 
comprehensive and intensive community development for communities in the 
Yukon-Kuskokwim delta region.



Sec.  2532.30  Other innovative and model programs.

    (a) The Corporation may support other innovative and model programs 
such as the following: (1) Programs, including programs for rural youth, 
described in parts 2515 through 2524 of this chapter;
    (2) Employer-based retiree programs;
    (3) Intergenerational programs;
    (4) Programs involving individuals with disabilities providing 
service;
    (5) Programs sponsored by Governors; and
    (6) Summer programs carried out between May 1 and October 1 (which 
may also contain a year-round component).
    (b) The Corporation will support innovative service-learning 
programs.

[59 FR 13806, Mar. 23, 1994, as amended at 69 FR 6181, Feb. 10, 2004]



PART 2533_TECHNICAL ASSISTANCE, TRAINING, AND OTHER SERVICE 
INFRASTRUCTURE-BUILDING ACTIVITIES--Table of Contents



    Authority: 42 U.S.C. 12657.



Sec.  2533.10  Eligible activities.

    The Corporation may support--either directly or through a grant, 
contract or agreement--any activity designed to meet the purposes 
described in part 2531 of this chapter. These activities include, but 
are not limited to, the following: (a) Community-based agencies. The 
Corporation may provide training and technical assistance and other 
assistance to project sponsors and other community-based agencies that 
provide volunteer placements in order to improve the ability of such 
agencies to use participants and other volunteers

[[Page 759]]

in a manner that results in high-quality service and a positive service 
experience for the participants and volunteers.
    (b) Improve ability to apply for assistance. The Corporation will 
provide training and technical assistance, where necessary, to 
individuals, programs, local labor organizations, State educational 
agencies, State Commissions, local educational agencies, local 
governments, community-based agencies, and other entities to enable them 
to apply for funding under one of the national service laws, to conduct 
high-quality programs, to evaluate such programs, and for other 
purposes.
    (c) Conferences and materials. The Corporation may organize and hold 
conferences, and prepare and publish materials, to disseminate 
information and promote the sharing of information among programs for 
the purpose of improving the quality of programs and projects.
    (d) Peace Corps and VISTA training. The Corporation may provide 
training assistance to selected individuals who volunteer to serve in 
the Peace Corps or a program authorized under title I of the Domestic 
Volunteer Service Act of 1973 (42 U.S.C. 4951 et seq.). The training 
will be provided as part of the course of study of the individual at an 
institution of higher education, involve service-learning, and cover 
appropriate skills that the individual will use in the Peace Corps or 
VISTA.
    (e) Promotion and recruitment. The Corporation may conduct a 
campaign to solicit funds for the National Service Trust and other 
programs and activities authorized under the national service laws and 
to promote and recruit participants for programs that receive assistance 
under the national service laws.
    (f) Training. The Corporation may support national and regional 
participant and supervisor training, including leadership training and 
training in specific types of service and in building the ethic of civic 
responsibility.
    (g) Research. The Corporation may support research on national 
service, including service-learning.
    (h) Intergenerational support. The Corporation may assist programs 
in developing a service component that combines students, out-of-school 
youths, and older adults as participants to provide needed community 
services.
    (i) Planning coordination. The Corporation may coordinate community-
wide planning among programs and projects.
    (j) Youth leadership. The Corporation may support activities to 
enhance the ability of youth and young adults to play leadership roles 
in national service.
    (k) National program identity. The Corporation may support the 
development and dissemination of materials, including training 
materials, and arrange for uniforms and insignia, designed to promote 
unity and shared features among programs that receive assistance under 
the national service laws.
    (l) Service-learning. The Corporation will support innovative 
programs and activities that promote service-learning.
    (m) National youth service day--(1) Designation. April 19, 1994, and 
April 18, 1995 are each designated as ``National Youth Service Day''. 
The President is authorized and directed to issue a proclamation calling 
on the people of the United States to observe the day with appropriate 
ceremonies and activities.
    (2) Federal activities. In order to observe National Youth Service 
Day at the Federal level, the Corporation may organize and carry out 
appropriate ceremonies and activities.
    (3) Activities. The Corporation may make grants to public or private 
nonprofit organizations with demonstrated ability to carry out 
appropriate activities, in order to support such activities on National 
Youth Service Day.
    (n) Clearinghouses--(1) Authority. The Corporation may establish 
clearinghouses, either directly or through a grant or contract. Any 
service-learning clearinghouse to be established pursuant to part 2518 
of this chapter is eligible to apply for a grant under this section. In 
addition, public or private nonprofit organizations are eligible to 
apply for clearinghouse grants.
    (2) Function. A Clearinghouse may perform the following activities: 
(i) Assist entities carrying out State or local community service 
programs with needs assessments and planning;

[[Page 760]]

    (ii) Conduct research and evaluations concerning community service;
    (iii) Provide leadership development and training to State and local 
community service program administrators, supervisors, and participants; 
and provide training to persons who can provide such leadership 
development and training;
    (iv) Facilitate communication among entities carrying out community 
service programs and participants;
    (v) Provide information, curriculum materials, and technical 
assistance relating to planning and operation of community service 
programs, to States and local entities eligible to receive funds under 
this chapter;
    (vi) Gather and disseminate information on successful community 
service programs, components of such successful programs, innovative 
youth skills curriculum, and community service projects;
    (vii) Coordinate the activities of the clearinghouse with 
appropriate entities to avoid duplication of effort;
    (viii) Make recommendations to State and local entities on quality 
controls to improve the delivery of community service programs and on 
changes in the programs under this chapter; and
    (ix) Carry out such other activities as the Chief Executive Officer 
determines to be appropriate.
    (o) Assistance for Head Start. The Corporation may make grants to, 
and enter into contracts and cooperative agreements with, public or 
nonprofit private agencies and organizations that receive grants or 
contracts under the Foster Grandparent Program (part B of title II of 
the Domestic Volunteer Service Act of 1973 (29 U.S.C. 5011 et seq.)), 
for projects of the type described in section 211(a) of such Act (29 
U.S.C. 5011) operating under memoranda of agreement with the ACTION 
Agency, for the purpose of increasing the number of low-income 
individuals who provide services under such program to children who 
participate in Head Start programs under the Head Start Act (42 U.S.C. 
9831 et seq.).
    (p) Other assistance. The Corporation may support other activities 
that are consistent with the purposes described in part 2531 of this 
chapter.

[59 FR 13807, Mar. 23, 1994. Redesignated and amended at 75 FR 51413 and 
51415, Aug. 20, 2010]



PART 2534_SPECIAL ACTIVITIES--Table of Contents



Sec.
2534.10 National service fellowships.
2534.20 Presidential awards for service.

    Authority: 42 U.S.C. 12501 et seq.



Sec.  2534.10  National service fellowships.

    The Corporation may award national service fellowships on a 
competitive basis.

[69 FR 6181, Feb. 10, 2004. Redesignated at 75 FR 54789, Sept. 9, 2010]



Sec.  2534.20  Presidential awards for service.

    The President, acting through the Corporation, may make Presidential 
awards for service to individuals providing significant service, and to 
outstanding programs. Information about recipients of such awards will 
be widely disseminated. The President may provide such awards to any 
deserving individual or program, regardless of whether the individual is 
serving in a program authorized by this chapter or whether the program 
is itself authorized by this chapter. In no instance, however, may the 
award be a cash award.

[59 FR 13808, Mar. 23, 1994. Redesignated at 75 FR 54789, Sept. 9, 2010]



PART 2540_GENERAL ADMINISTRATIVE PROVISIONS--Table of Contents



     Subpart A_Requirements Concerning the Distribution and Use of 
                         Corporation Assistance

Sec.
2540.100 What restrictions govern the use of Corporation assistance?
2540.110 Limitation on use of Corporation funds for administrative 
          costs.

Subpart B_Requirements Directly Affecting the Selection and Treatment of 
                              Participants

2540.200 Which entities are required to comply with the National Service 
          Criminal

[[Page 761]]

          History Check requirements in this subpart?
2540.201 Which individuals require a National Service Criminal History 
          Check?
2540.202 What eligibility criteria apply to an individual for whom a 
          National Service Criminal History Check is required?
2540.203 May a grant recipient or subrecipient or service site establish 
          and apply suitability criteria for individuals to work or 
          serve in a position specified in this subpart?
2540.204 What are the components of a National Service Criminal History 
          Check?
2540.205 By when must the National Service Criminal History Check be 
          completed?
2540.206 What procedural steps are required, in addition to conducting 
          the National Service Criminal History Check described in this 
          subpart?
2540.207 Waiver.
2540.208 Under what circumstances may participants be engaged?
2540.210 What provisions exist to ensure that Corporation-supported 
          programs do not discriminate in the selection of participants 
          and staff?
2540.215 What should a program participant, staff members, or 
          beneficiary do if the individual believes he or she has been 
          subject to illegal discrimination?
2540.220 Under what circumstances and subject to what conditions are 
          participants in Corporation-assisted projects eligible for 
          family and medical leave?
2540.230 What grievance procedures must recipients of Corporation 
          assistance establish?

  Subpart C_Other Requirements for Recipients of Corporation Assistance

2540.300 What must be included in annual State reports to the 
          Corporation?
2540.310 Must programs that receive Corporation assistance establish 
          standards of conduct?
2540.320 How are participant benefits treated?
2540.330 Parental involvement required

     Subpart D_Suspension and Termination of Corporation Assistance

2540.400 Under what circumstances will the Corporation suspend or 
          terminate a grant or contract?

       Subpart E_Restrictions on Use of National Service Insignia

2540.500 What definition applies to this subpart?
2540.510 What are the restrictions on using national service insignia?
2540.520 What are the consequences for unauthorized use of the 
          Corporation's national service insignia?
2540.530 Are there instances where an insignia may be used without 
          getting the approval of the Corporation?
2540.540 Who has authority to approve use of national service insignia?
2540.550 Is there an expiration date on approvals for use of national 
          service insignia?
2540.560 How do I renew authority to use a national service insignia?

                Subpart F_False or Misleading Statements

2540.600 What definitions apply to this subpart?
2540.610 What are the consequences of making a false or misleading 
          statement?
2540.620 What are my rights if the Corporation determines that I have 
          made a false or misleading statement?
2540.630 What information must I provide to contest a proposed action?
2540.640 When will the reviewing official make a decision on the 
          proposed action?
2540.650 How may I contest a reviewing official's decision to uphold the 
          proposed action?
2540.660 If the final decision determines that I received a financial 
          benefit improperly, will I be required to repay that benefit?
2540.670 Will my qualification to participate or eligibility for 
          benefits be suspended during the review process?

    Authority: E.O. 13331, 69 FR 9911; 18 U.S.C. 506, 701, 1017; 42 
U.S.C. 12653, 12631-12637, 12645g; 42 U.S.C. 5065.

    Source: 59 FR 13808, Mar. 23, 1994, unless otherwise noted.



     Subpart A_Requirements Concerning the Distribution and Use of 
                         Corporation Assistance



Sec.  2540.100  What restrictions govern the use of Corporation assistance?

    (a) Supplantation. Corporation assistance may not be used to replace 
State and local public funds that had been used to support programs of 
the type eligible to receive Corporation support. For any given program, 
this condition will be satisfied if the aggregate non-Federal public 
expenditure for that program in the fiscal year that support is to be 
provided is not less than the previous fiscal year.
    (b) Religious use. Corporation assistance may not be used to provide 
religious instruction, conduct worship

[[Page 762]]

services, or engage in any form of proselytization.
    (c) Political activity. Corporation assistance may not be used by 
program participants or staff to assist, promote, or deter union 
organizing; or finance, directly or indirectly, any activity designed to 
influence the outcome of a Federal, State or local election to public 
office.
    (d) Contracts or collective bargaining agreements. Corporation 
assistance may not be used to impair existing contracts for services or 
collective bargaining agreements.
    (e) Nonduplication. Corporation assistance may not be used to 
duplicate an activity that is already available in the locality of a 
program. And, unless the requirements of paragraph (f) of this section 
are met, Corporation assistance will not be provided to a private 
nonprofit entity to conduct activities that are the same or 
substantially equivalent to activities provided by a State or local 
government agency in which such entity resides.
    (f) Nondisplacement. (1) An employer may not displace an employee or 
position, including partial displacement such as reduction in hours, 
wages, or employment benefits, as a result of the use by such employer 
of a participant in a program receiving Corporation assistance.
    (2) An organization may not displace a volunteer by using a 
participant in a program receiving Corporation assistance.
    (3) A service opportunity will not be created under this chapter 
that will infringe in any manner on the promotional opportunity of an 
employed individual.
    (4) A participant in a program receiving Corporation assistance may 
not perform any services or duties or engage in activities that would 
otherwise be performed by an employee as part of the assigned duties of 
such employee.
    (5) A participant in any program receiving assistance under this 
chapter may not perform any services or duties, or engage in activities, 
that--
    (i) Will supplant the hiring of employed workers; or
    (ii) Are services, duties, or activities with respect to which an 
individual has recall rights pursuant to a collective bargaining 
agreement or applicable personnel procedures.
    (6) A participant in any program receiving assistance under this 
chapter may not perform services or duties that have been performed by 
or were assigned to any--
    (i) Presently employed worker;
    (ii) Employee who recently resigned or was discharged;
    (iii) Employee who is subject to a reduction in force or who has 
recall rights pursuant to a collective bargaining agreement or 
applicable personnel procedures;
    (iv) Employee who is on leave (terminal, temporary, vacation, 
emergency, or sick); or
    (v) Employee who is on strike or who is being locked out.

[59 FR 13808, Mar. 23, 1994, as amended at 70 FR 39607, July 8, 2005]



Sec.  2540.110  Limitation on use of Corporation funds 
for administrative costs.

    (a)(1) Not more than five percent of the grant funds provided under 
45 CFR 2516, 2517, 2519, and 2521 for any fiscal year may be used to pay 
for administrative costs, as defined in Sec.  2510.20 of this chapter.
    (2) The distribution of administrative costs between the grant and 
any subgrant will be subject to the approval of the Corporation.
    (3) In applying the limitation on administrative costs the 
Corporation will approve one of the following methods in the award 
document:
    (i) Limit the amount or rate of indirect costs that may be paid with 
Corporation funds under a grant or subgrant to five percent of total 
Corporation funds expended, provided that--
    (A) Organizations that have an established indirect cost rate for 
Federal awards will be limited to this method; and
    (B) Unreimbursed indirect costs may be applied to meeting 
operational matching requirements under the Corporation's award;
    (ii) Specify that a fixed rate of five percent or less (not subject 
to supporting cost documentation) of total Corporation funds expended 
may be used to pay for administrative costs,

[[Page 763]]

provided that the fixed rate is in conjunction with an overall 15 
percent administrative cost factor to be used for organizations that do 
not have established indirect cost rates; or
    (iii) Utilize such other method that the Corporation determines in 
writing is consistent with OMB guidance and other applicable 
requirements, helps minimize the burden on grantees or subgrantees, and 
is beneficial to grantees or subgrantees and the Federal Government.
    (b) Costs attributable to administrative functions as well as 
program functions should be prorated between administrative costs and 
program costs.

[63 FR 18138, Apr. 14, 1998]



Subpart B_Requirements Directly Affecting the Selection and Treatment of 
                              Participants



Sec.  2540.200  Which entities are required to comply with the National 
Service Criminal History Check requirements in this subpart?

    The National Service Criminal History Check is a requirement for 
entities that are recipients or subrecipients of the following grants:
    (a) Operational grants provided by AmeriCorps State and National;
    (b) Foster Grandparent Program Grants;
    (c) Retired and Senior Volunteer Program Grants;
    (d) Senior Companion Program Grants;
    (e) Senior Demonstration Program Grants that receive funding from 
CNCS;
    (f) Martin Luther King, Jr. Day of Service Grants;
    (g) September 11th Day of Service Grants;
    (h) Social Innovation Fund Grants;
    (i) Volunteer Generation Fund Grants;
    (j) AmeriCorps VISTA Program Grants;
    (k) AmeriCorps VISTA Support Grants.

[86 FR 11146, Feb. 24, 2021]



Sec.  2540.201  Which individuals require a National Service 
Criminal History Check?

    (a) A National Service Criminal History Check must be conducted for 
individuals in covered positions. Individuals in covered positions are 
individuals selected, under a CNCS grant specified in 2540.200, by the 
recipient, subrecipient, or service site to work or serve in a position 
under a CNCS grant specified in Sec.  2540.200:
    (1) As an AmeriCorps State and National member, as described in 42 
U.S.C. 12511(30)(A)(i);
    (2) As a Foster Grandparent who receives a stipend;
    (3) As a Senior Companion who receives a stipend; or
    (4) In a position in which they will receive a salary, directly or 
reflected as match, under a cost reimbursement grant.
    (b) A National Service Criminal History Check is not required for 
those individuals listed in paragraph (a) of this section who are under 
the age of 18 on the first day of work or service in a covered position.
    (c) A National Service Criminal History Check is not required for 
individuals whose activity is entirely included in the grant recipient's 
indirect cost rate.

[86 FR 11147, Feb. 24, 2021]



Sec.  2540.202  What eligibility criteria apply to an individual 
for whom a National Service Criminal History Check is required?

    An individual shall be ineligible to work or serve in a position 
specified in Sec.  2540.201(a) if the individual--
    (a) Refuses to consent to a criminal history check described in 
Sec.  2540.204;
    (b) Makes a false statement in connection with a criminal history 
check described in Sec.  2540.204;
    (c) Is registered, or is required to be registered, on a state sex 
offender registry or the National Sex Offender Registry; or
    (d) Has been convicted of murder, as defined in 18 U.S.C. 1111.

[86 FR 11147, Feb. 24, 2021]

[[Page 764]]



Sec.  2540.203  May a grant recipient or subrecipient or service site 
establish and apply suitability criteria for individuals to work 
or serve in a position specified in this subpart?

    Grant recipients and subrecipients, or service sites, may establish 
suitability criteria, consistent with state and Federal Civil Rights and 
nondiscrimination laws, for individuals working or serving in a position 
specified in Sec.  2540.201(a). While members may be eligible to work or 
serve in a position specified in Sec.  2540.201(a) based on the 
eligibility requirements of Sec.  2540.202, a grant recipient, 
subrecipient, or service site may determine that an individual is not 
suitable to work or serve in such a position based on criteria that the 
grant recipient or subrecipient or service site establishes.

[86 FR 11147, Feb. 24, 2021]



Sec.  2540.204  What are the components of a National Service 
Criminal History Check?

    (a) Unless CNCS approves a waiver under Sec.  2540.207, for each 
individual in a position specified in Sec.  2540.201, grantees or 
subgrantees must, obtain:
    (1) A nationwide check of the National Sex Offender Public website 
through NSOPW.gov;
    (2) A check of the State criminal history record repository or 
agency-designated alternative for the individual's State of residence 
and State of service; and
    (3) A fingerprint-based check of the FBI criminal history record 
database through the State criminal history record repository or agency-
approved vendor.
    (b) One way for grant recipients or subrecipients to obtain and 
document the required components of the National Service History Check 
is through the use of agency-approved vendors.

[86 FR 11147, Feb. 24, 2021]



Sec.  2540.205  By when must the National Service Criminal History Check 
be completed?

    (a) The National Service Criminal History Check must be conducted, 
reviewed, and an eligibility determination made by the grant recipient 
or subrecipient based on the results of the National Service Criminal 
History Check before a person begins to work or serve in a position 
specified in Sec.  2540.201(a).
    (b) If a person serves consecutive terms of service or employment 
with the same organization in a position specified in Sec.  2540.201(a) 
and does not have a break in service or employment longer than 180 days, 
then no additional National Service Criminal History Check is required, 
as long as the original check complied with the requirements of Sec.  
2540.204. If a National Service Criminal History Check was not conducted 
on a person because they were under the age of 18 at the time they began 
their prior term(s) of service or employment in a covered position, 
pursuant to Sec.  2540.201(b), a National Service Criminal History check 
must be conducted prior to the individual beginning a subsequent term of 
work or service for which the person is 18 years of age or older at the 
start of work or service.
    (c) Persons working or serving in positions specified in Sec.  
2540.201(a) prior to May 1, 2021, who continue working or serving in a 
position specified in Sec.  2540.201(a) on or after November 1, 2021, 
must have a National Service Criminal History Check conducted, reviewed, 
and an eligibility determination made by the grant recipient or 
subrecipient based on the results of the National Service Criminal 
History Check completed in accordance with this part. For these people, 
the National Service Criminal History Check must be completed no later 
than November 1, 2021.

[86 FR 11147, Feb. 24, 2021]



Sec.  2540.206  What procedural steps are required, in addition to 
conducting the National Service Criminal History Check described 
in this subpart?

    (a) In addition to conducting the National Service Criminal History 
Check described in Sec.  2540.204, grant recipients or subrecipients 
must:
    (1) Obtain a person's consent before conducting the state and FBI 
components of the National Service Criminal History Check;

[[Page 765]]

    (2) Provide notice that selection for work or service for a position 
specified in Sec.  2540.201(a) is contingent upon the organization's 
review of the National Service Criminal History Check component results;
    (3) Provide a reasonable opportunity for the person to review and 
challenge the factual accuracy of a result before action is taken to 
exclude the person from the position;
    (4) Take reasonable steps to protect the confidentiality of any 
information relating to the criminal history check, consistent with 
authorization provided by the applicant;
    (5) Maintain documentation of the National Service Criminal History 
Check as grant records; and
    (6) Pay for the cost of the NSCHC. Unless specifically approved by 
CNCS under Sec.  2540.207, the person who is serving or working in the 
covered position may not be charged for the cost of any component of a 
National Service Criminal History Check.
    (b) CNCS-approved vendors may facilitate obtaining and documenting 
the requirements in paragraphs (a)(1) through (5) of this section.

[86 FR 11147, Feb. 24, 2021]



Sec.  2540.207  Waiver.

    CNCS may waive provisions of Sec. Sec.  2540.200 through.2540.206 
for good cause, or for any other lawful basis. To request a waiver, 
submit a written request to NSCHC Waiver Requests, 250 E Street SW, 
Washington DC 20525, or send your request to [email protected].

[86 FR 11148, Feb. 24, 2021]



Sec.  2540.208  Under what circumstances may participants be engaged?

    A State may not engage a participant to serve in any program that 
receives Corporation assistance unless and until amounts have been 
appropriated under section 501 of the Act (42 U.S.C. 12681) for the 
provision of AmeriCorps educational awards and for the payment of other 
necessary expenses and costs associated with such participant.

[59 FR 13808, Mar. 23, 1994. Redesignated at 72 FR 48582, Aug. 24, 2007]



Sec.  2540.210  What provisions exist to ensure that Corporation-supported 
programs do not discriminate in the selection of participants and staff?

    (a) An individual with responsibility for the operation of a project 
that receives Corporation assistance must not discriminate against a 
participant in, or member of the staff of, such project on the basis of 
race, color, national origin, sex, age, or political affiliation of such 
participant or member, or on the basis of disability, if the participant 
or member is a qualified individual with a disability.
    (b) Any Corporation assistance constitutes Federal financial 
assistance for purposes of title VI of the Civil Rights Act of 1964 (42 
U.S.C. 2000d et seq.), title IX of the Education Amendments of 1972 (20 
U.S.C. 1681 et seq.), section 504 of the Rehabilitation Act of 1973 (29 
U.S.C. 794), and the Age Discrimination Act of 1975 (42 U.S.C. 6101 et 
seq.), and constitutes Federal financial assistance to an education 
program or activity for purposes of the Education Amendments of 1972 (20 
U.S.C. 1681 et seq.).
    (c) An individual with responsibility for the operation of a project 
that receives Corporation assistance may not discriminate on the basis 
of religion against a participant in such project or a member of the 
staff of such project who is paid with Corporation funds. This provision 
does not apply to the employment (with Corporation assistance) of any 
staff member of a Corporation-supported project who was employed with 
the organization operating the project on the date the Corporation grant 
was awarded.
    (d) Grantees must notify all program participants, staff, 
applicants, and beneficiaries of:
    (1) Their rights under applicable federal nondiscrimination laws, 
including relevant provisions of the national service legislation and 
implementing regulations; and
    (2) The procedure for filing a discrimination complaint with the 
Corporation's Office of Civil Rights and Inclusiveness.

[59 FR 13808, Mar. 23, 1994, as amended at 73 FR 53760, Sept. 17, 2008]

[[Page 766]]



Sec.  2540.215  What should a program participant, staff members, 
or beneficiary do if the individual believes he or she has been subject 
to illegal discrimination?

    A program participant, staff member, or beneficiary who believes 
that he or she has been subject to illegal discrimination should contact 
the Corporation's Office of Civil Rights and Inclusiveness, which offers 
an impartial discrimination complaint resolution process. Participation 
in a discrimination complaint resolution process is protected activity; 
a grantee is prohibited from retaliating against an individual for 
making a complaint or participating in any manner in an investigation, 
proceeding, or hearing.

[73 FR 53760, Sept. 17, 2008]



Sec.  2540.220  Under what circumstances and subject to what conditions 
are participants in Corporation-assisted programs eligible for family 
and medical leave?

    (a) Participants in State, local, or private nonprofits programs. A 
participant in a State, local, or private nonprofit program receiving 
support from the Corporation is considered an eligible employee of the 
program's project sponsor under the Family and Medical Leave Act of 1993 
(29 CFR part 825) if--
    (1) The participant has served for at least 12 months and 1,250 
hours during the year preceding the start of the leave; and
    (2) The program's project sponsors engages in commerce or any 
industry or activity affecting commerce, and employs at least 50 
employees for each working day during 20 or more calendar workweeks in 
the current or preceding calendar year.
    (b) Participants in Federal programs. Participants in Federal 
programs operated by the Corporation or by another Federal agency will 
be considered Federal employees for the purposes of the Family and 
Medical Leave Act if the participants have completed 12 months of 
service and the project sponsor is an employing agency as defined in 5 
U.S.C 6381 et seq.; such participants therefore will be eligible for the 
same family and medical leave benefits afforded to such Federal 
employees.
    (c) General terms and conditions. Participants that qualify as 
eligible employees under paragraphs (a) or (b) of this section are 
entitled to take up to 12 weeks of unpaid leave during a 12 month period 
for any of the following reasons (in the cases of both paragraphs (c)(1) 
and (2) of this section the entitlement to leave expires 12 months after 
the birth or placement of such child): (1) The birth of a child to a 
participant;
    (2) The placement of a child with a participant for adoption or 
foster care;
    (3) The serious illness of a participant's spouse, child or parent; 
or
    (4) A participant's serious health condition that makes that 
participant unable to perform his or her essential service duties (a 
serious health condition is an illness or condition that requires either 
inpatient care or continuing treatment by a health care provider).
    (d) Intermittent leave or reduced service. The program, serving as 
the project sponsor, may allow a participant to take intermittent leave 
or reduce his or her service hours due to the birth of or placement of a 
child for adoption or foster care. The participant may also take leave 
to care for a seriously ill immediate family member or may take leave 
due to his or her own serious illness whenever it is medically 
necessary.
    (e) Alternate placement. If a participant requests intermittent 
leave or a reduced service hours due to a serious illness or a family 
member's sickness, and the need for leave is foreseeable based on 
planned medical treatment, the program, or project sponsor may 
temporarily transfer the participant to an alternative service position 
if the participant: (1) Is qualified for the position; and
    (2) Receives the same benefits such as stipend or living allowance 
and the position better accommodates the participants recurring periods 
of leave.
    (f) Certification of cause. A program, or project sponsor may 
require that the participant support a leave request with a 
certification from the health care provider of the participant or the 
participant's family member. If a program sponsor requests a 
certification,

[[Page 767]]

the participant must provide it in a timely manner.
    (g) Continuance of coverage. (1) If a State, local or private 
program provides for health insurance for the full-time participant, the 
sponsor must continue to provide comparable health coverage at the same 
level and conditions that coverage would have been provided for the 
duration of the participant's leave.
    (2) If the Federal program provides health insurance coverage for 
the full-time participant, the sponsor must also continue to provide the 
same health care coverage for the duration of the participant's leave.
    (h) Failure to return. If the participant fails to return to the 
program at the end of leave for any reason other than continuation, 
recurrence or onset of a serious health condition or other circumstances 
beyond his or her control, the program may recover the premium that he 
or she paid during any period of unpaid leave.
    (i) Applicability to term of service. Any absence, due to family and 
medical leave, will not be counted towards the participant's term of 
service.



Sec.  2540.230  What grievance procedures must recipients 
of Corporation assistance establish?

    State and local applicants that receive assistance from the 
Corporation must establish and maintain a procedure for the filing and 
adjudication of grievances from participants, labor organizations, and 
other interested individuals concerning programs that receive assistance 
from the Corporation. A grievance procedure may include dispute 
resolution programs such as mediation, facilitation, assisted 
negotiation and neutral evaluation. If the grievance alleges fraud or 
criminal activity, it must immediately be brought to the attention of 
the Corporation's inspector general.
    (a) Alternative dispute resolution. (1) The aggrieved party may seek 
resolution through alternative means of dispute resolution such as 
mediation or facilitation. Dispute resolution proceedings must be 
initiated within 45 calendar days from the date of the alleged 
occurrence. At the initial session of the dispute resolution 
proceedings, the party must be advised in writing of his or her right to 
file a grievance and right to arbitration. If the matter is resolved, 
and a written agreement is reached, the party will agree to forego 
filing a grievance in the matter under consideration.
    (2) If mediation, facilitation, or other dispute resolution 
processes are selected, the process must be aided by a neutral party 
who, with respect to an issue in controversy, functions specifically to 
aid the parties in resolving the matter through a mutually achieved and 
acceptable written agreement. The neutral party may not compel a 
resolution. Proceedings before the neutral party must be informal, and 
the rules of evidence will not apply. With the exception of a written 
and agreed upon dispute resolution agreement, the proceeding must be 
confidential.
    (b) Grievance procedure for unresolved complaints. If the matter is 
not resolved within 30 calendar days from the date the informal dispute 
resolution process began, the neutral party must again inform the 
aggrieving party of his or her right to file a formal grievance. In the 
event an aggrieving party files a grievance, the neutral may not 
participate in the formal complaint process. In addition, no 
communication or proceedings of the informal dispute resolution process 
may be referred to or introduced into evidence at the grievance and 
arbitration hearing. Any decision by the neutral party is advisory and 
is not binding unless both parties agree.
    (c) Time limitations. Except for a grievance that alleges fraud or 
criminal activity, a grievance must be made no later than one year after 
the date of the alleged occurrence. If a hearing is held on a grievance, 
it must be conducted no later than 30 calendar days after the filing of 
such grievance. A decision on any such grievance must be made no later 
than 60 calendar days after the filing of the grievance.
    (d) Arbitration--(1) Arbitrator--(i) Joint selection by parties. If 
there is an adverse decision against the party who filed the grievance, 
or 60 calendar days after the filing of a grievance no decision has been 
reached, the filing party may submit the grievance to binding

[[Page 768]]

arbitration before a qualified arbitrator who is jointly selected and 
independent of the interested parties.
    (ii) Appointment by Corporation. If the parties cannot agree on an 
arbitrator within 15 calendar days after receiving a request from one of 
the grievance parties, the Corporations Chief Executive Officer will 
appoint an arbitrator from a list of qualified arbitrators.
    (2) Time Limits--(i) Proceedings. An arbitration proceeding must be 
held no later than 45 calendar days after the request for arbitration, 
or, if the arbitrator is appointed by the Chief Executive Officer, the 
proceeding must occur no later than 30 calendar days after the 
arbitrator's appointment.
    (ii) Decision. A decision must be made by the arbitrator no later 
than 30 calendar days after the date the arbitration proceeding begins.
    (3) The cost. The cost of the arbitration proceeding must be divided 
evenly between the parties to the arbitration. If, however, a 
participant, labor organization, or other interested individual prevails 
under a binding arbitration proceeding, the State or local applicant 
that is a party to the grievance must pay the total cost of the 
proceeding and the attorney's fees of the prevailing party.
    (e) Suspension of placement. If a grievance is filed regarding a 
proposed placement of a participant in a program that receives 
assistance under this chapter, such placement must not be made unless 
the placement is consistent with the resolution of the grievance.
    (f) Remedies. Remedies for a grievance filed under a procedure 
established by a recipient of Corporation assistance may include--
    (1) Prohibition of a placement of a participant; and
    (2) In grievance cases where there is a violation of nonduplication 
or nondisplacement requirements and the employer of the displaced 
employee is the recipient of Corporation assistance--
    (i) Reinstatement of the employee to the position he or she held 
prior to the displacement;
    (ii) Payment of lost wages and benefits;
    (iii) Re-establishment of other relevant terms, conditions and 
privileges of employment; and
    (iv) Any other equitable relief that is necessary to correct any 
violation of the nonduplication or nondisplacement requirements or to 
make the displaced employee whole.
    (g) Suspension or termination of assistance. The Corporation may 
suspend or terminate payments for assistance under this chapter.
    (h) Effect of noncompliance with arbitration. A suit to enforce 
arbitration awards may be brought in any Federal district court having 
jurisdiction over the parties without regard to the amount in 
controversy or the parties' citizenship.



  Subpart C_Other Requirements for Recipients of Corporation Assistance



Sec.  2540.300  What must be included in annual State reports 
to the Corporation?

    (a) In general. Each State receiving assistance under this title 
must prepare and submit, to the Corporation, an annual report concerning 
the use of assistance provided under this chapter and the status of the 
national and community service programs in the State that receive 
assistance under this chapter. A State's annual report must include 
information that demonstrates the State's compliance with the 
requirements of this chapter.
    (b) Local grantees. Each State may require local grantees that 
receive assistance under this chapter to supply such information to the 
State as is necessary to enable the State to complete the report 
required under paragraph (a) of this section, including a comparison of 
actual accomplishments with the goals established for the program, the 
number of participants in the program, the number of service hours 
generated, and the existence of any problems, delays or adverse 
conditions that have affected or will affect the attainment of program 
goals.
    (c) Availability of report. Reports submitted under paragraph (a) of 
this section must be made available to the public on request.

[[Page 769]]



Sec.  2540.310  Must programs that receive Corporation assistance 
establish standards of conduct?

    Yes. Programs that receive assistance under this title must 
establish and stringently enforce standards of conduct at the program 
site to promote proper moral and disciplinary conditions.



Sec.  2540.320  How are participant benefits treated?

    Section 142(b) of the Job Training Partnership Act (29 U.S.C. 
1552(b)) shall apply to the programs conducted under this chapter as if 
such programs were conducted under the Job Training Partnership Act (29 
U.S.C. 1501 et seq.).



Sec.  2540.330  Parental involvement required

    (a) Consultation Requirement. Programs that receive assistance under 
the national service laws shall consult with the parents or legal 
guardians of children in developing and operating programs that include 
and serve children.
    (b) Parental Permission. Programs that receive assistance under the 
national service laws must, before transporting minor children, provide 
the children's parents or legal guardians with the reason for the 
transportation and obtain the parent's or legal guardian's permission 
for such transportation, consistent with State law.

[74 FR 46507, Sept. 10, 2009]



     Subpart D_Suspension and Termination of Corporation Assistance



Sec.  2540.400  Under what circumstances will the Corporation suspend 
or terminate a grant or contract?

    (a) Suspension of a grant or contract. In emergency situations, the 
Corporation may suspend a grant or contract for not more than calendar 
30 days. Examples of such situations may include, but are not limited 
to: (1) Serious risk to persons or property;
    (2) Violations of Federal, State or local criminal statutes; and
    (3) Material violation(s) of the grant or contract that are 
sufficiently serious that they outweigh the general policy in favor of 
advance notice and opportunity to show cause.
    (b) Termination of a grant or contract. The Corporation may 
terminate or revoke assistance for failure to comply with applicable 
terms and conditions of this chapter. However, the Corporation must 
provide the recipient reasonable notice and opportunity for a full and 
fair hearing, subject to the following conditions: (1) The Corporation 
will notify a recipient of assistance by letter or telegram that the 
Corporation intends to terminate or revoke assistance, either in whole 
or in part, unless the recipient shows good cause why such assistance 
should not be terminated or revoked. In this communication, the grounds 
and the effective date for the proposed termination or revocation will 
be described. The recipient will be given at least 7 calendar days to 
submit written material in opposition to the proposed action.
    (2) The recipient may request a hearing on a proposed termination or 
revocation. Providing five days notice to the recipient, the Corporation 
may authorize the conduct of a hearing or other meetings at a location 
convenient to the recipient to consider the proposed suspension or 
termination. A transcript or recording must be made of a hearing 
conducted under this section and be available for inspection by any 
individual.



       Subpart E_Restrictions on Use of National Service Insignia

    Source: 73 FR 53761, Sept. 17, 2008, unless otherwise noted.



Sec.  2540.500  What definition applies to this subpart?

    National Service Insignia. For this subpart, national service 
insignia means the former and current seal, logos, names, or symbols of 
the Corporation's programs, products, or services, including those for 
AmeriCorps, VISTA, Learn and Serve America, Senior Corps, Foster 
Grandparents, the Senior Companion Program, the Retired and Senior 
Volunteer Program, the National Civilian Community Corps, and any other 
program or project that the Corporation administers.

[[Page 770]]



Sec.  2540.510  What are the restrictions on using national service insignia?

    The national service insignia are owned by the Corporation and only 
may be used as authorized. The national service insignia may not be used 
by non-federal entities for fundraising purposes or in a manner that 
suggests Corporation endorsement.



Sec.  2540.520  What are the consequences for unauthorized use 
of the Corporation's national service insignia?

    Any person who uses the national service insignia without 
authorization may be subject to legal action for trademark infringement, 
enjoined from continued use, and, for certain types of unauthorized 
uses, other civil or criminal penalties may apply.



Sec.  2540.530  Are there instances where an insignia may be used 
without getting the approval of the Corporation?

    All uses of the national service insignia require the written 
approval of the Corporation.



Sec.  2540.540  Who has authority to approve use of national service insignia?

    Approval for limited uses may be provided through the terms of a 
written grant or other agreement. All other uses must be approved in 
writing by the director of the Corporation's Office of Public Affairs, 
or his or her designee.



Sec.  2540.550  Is there an expiration date on approvals for use 
of national service insignia?

    The approval to use a national service insignia will expire as 
determined in writing by the director of the Office of Public Affairs, 
or his or her designee. However, the authority to use an insignia may be 
revoked at any time if the Corporation determines that the use involved 
is injurious to the image of the Corporation or if there is a failure to 
comply with the terms and conditions of the authorization.



Sec.  2540.560  How do I renew authority to use a national service insignia?

    Requests for renewed authority to use an insignia must follow the 
procedures for initial approval as set out in Sec.  2540.540.



                Subpart F_False or Misleading Statements

    Source: 73 FR 53761, Sept. 17, 2008, unless otherwise noted.



Sec.  2540.600  What definitions apply to this subpart?

    You. For this subpart, you refers to a participant in a national 
service program.



Sec.  2540.610  What are the consequences of making a false 
or misleading statement?

    If it is determined that you made a false or misleading statement in 
connection with your eligibility for a benefit from, or qualification to 
participate in, a Corporation-funded program, it may result in the 
revocation of the qualification or forfeiture of the benefit. Revocation 
and forfeiture under this part are in addition to any other remedy 
available to the Federal Government under the law against persons who 
make false or misleading statements in connection with a Federally-
funded program.



Sec.  2540.620  What are my rights if the Corporation determines 
that I have made a false or misleading statement?

    If the Corporation determines that you have made a false or 
misleading statement in connection with your eligibility for a benefit 
from, or qualification to participate in, a Corporation-funded program, 
you will be hand delivered a written notice, or sent a written notice to 
your last known street address or e-mail address or that of your 
identified counsel at least 15 days before any proposed action is taken. 
The notice will include the facts surrounding the determination and the 
action the Corporation proposes to take. The notice will also identify 
the reviewing official in your case and provide other pertinent 
information. You will be allowed to show good cause as to why 
forfeiture, revocation, the denial of a benefit, or other action should 
not be implemented. You will be given

[[Page 771]]

10 calendar days to submit written materials in opposition to the 
proposed action.



Sec.  2540.630  What information must I provide to contest a proposed action?

    Your written response must include specific facts that contradict 
the statements made in the notice of proposed action. A general 
statement of denial is insufficient to raise a dispute over the facts 
material to the proposed action. Your response should also include 
copies of any documents that support your argument.



Sec.  2540.640  When will the reviewing official make a decision on 
the proposed action?

    The reviewing official will issue a decision within 45 days of 
receipt of your response.



Sec.  2540.650  How may I contest a reviewing official's decision to uphold 
the proposed action?

    If the Corporation's reviewing official concludes that the proposed 
action, in full or in part, should still be implemented, you will have 
an opportunity to request an additional proceeding. A Corporation 
program director or designee will conduct a review of the complete 
record, including such additional relevant documents you submit. If 
deemed appropriate, such as where there are material facts in genuine 
dispute, the program director or designee may conduct a telephonic or in 
person meeting. If a meeting is conducted, it will be recorded and you 
will be provided a copy of the recording. The program director or 
designee will issue a decision within 30 days of the conclusion of the 
review of the record or meeting. The decision of the program director or 
designee is final and cannot be appealed further within the agency.



Sec.  2540.660  If the final decision determines that I received 
a financial benefit improperly, will I be required to repay that benefit?

    If it is determined that you received a financial benefit 
improperly, you may be required to reimburse the program for that 
benefit.



Sec.  2540.670  Will my qualification to participate or eligibility 
for benefits be suspended during the review process?

    If the reviewing official determines that, based on the information 
available, there is a reasonable likelihood that you will be determined 
disqualified or ineligible, your qualification or eligibility may be 
suspended, pending issuance of a final decision, to protect the public 
interest.

                       PARTS 2541	2543 [RESERVED]



PART 2544_SOLICITATION AND ACCEPTANCE OF DONATIONS--Table of Contents



Sec.
2544.100 What is the purpose of this part?
2544.105 What is the legal authority for soliciting and accepting 
          donations to the Corporation?
2544.110 What definitions apply to terms used in this part?
2544.115 Who may offer a donation?
2544.120 What personal services from a volunteer may be solicited and 
          accepted?
2544.125 Who has the authority to solicit and accept or reject a 
          donation?
2544.130 How will the Corporation determine whether to solicit or accept 
          a donation?
2544.135 How should an offer of a donation be made?
2544.140 How will the Corporation accept or reject an offer?
2544.145 What will be done with property that is not accepted?
2544.150 How will accepted donations be recorded and used?

    Authority: 42 U.S.C. 12501 et seq.

    Source: 60 FR 28355, May 31, 1995, unless otherwise noted.



Sec.  2544.100  What is the purpose of this part?

    This part establishes rules to ensure that the solicitation, 
acceptance, holding, administration, and use of property and services 
donated to the Corporation:
    (a) Will not reflect unfavorably upon the ability of the Corporation 
or its officers and employees, to carry out their official duties and 
responsibilities in a fair and objective manner; and
    (b) Will not compromise the integrity of the Corporation's programs 
or its officers and employees involved in such programs.

[[Page 772]]



Sec.  2544.105  What is the legal authority for soliciting 
and accepting donations to the Corporation?

    Section 196(a) of the National and Community Service Act of 1990, as 
amended (42 U.S.C. 12651g(a)).



Sec.  2544.110  What definitions apply to terms used in this part?

    (a) Donation means a transfer of money, property, or services to or 
for the use of the Corporation by gift, devise, bequest, or other means.
    (b) Solicitation means a request for a donation.
    (c) Volunteer means an individual who donates his/her personal 
service to the Corporation to assist the Corporation in carrying out its 
duties under the national service laws, but who is not a participant in 
a program funded or sponsored by the Corporation under the National and 
Community Service Act of 1990, as amended. Such individual is not 
subject to provisions of law related to Federal employment, including 
those relating to hours of work, rates of compensation, leave, 
unemployment compensation and Federal employee benefits, except that--
    (1) Volunteers will be considered Federal employees for the purpose 
of the tort claims provisions of 28 U.S.C. chapter 171;
    (2) Volunteers will be considered Federal employees for the purposes 
of 5 U.S.C. chapter 81, subchapter I, relating to compensation to 
Federal employees for work injuries; and
    (3) Volunteers will be considered special Government employees for 
the purpose of ethics and public integrity under the provisions of 18 
U.S.C. chapter 11, part I, and 5 CFR chapter XVI, subchapter B.
    (d) Inherently governmental function means any activity that is so 
intimately related to the public interest as to mandate performance by 
an officer or employee of the Federal Government, including an activity 
that requires either the exercise of discretion in applying the 
authority of the Government or the use of value judgment in making a 
decision for the Government.



Sec.  2544.115  Who may offer a donation?

    Anyone, including an individual, group of individuals, organization, 
corporation, or association may offer a donation to the Corporation.



Sec.  2544.120  What personal services from a volunteer may be solicited 
and accepted?

    A donation in the form of personal services from a volunteer may be 
solicited and accepted to assist the Corporation in carrying out its 
duties. However, volunteers may not perform an inherently governmental 
function.



Sec.  2544.125  Who has the authority to solicit and accept 
or reject a donation?

    The Chief Executive Officer (CEO) of the Corporation has the 
authority to solicit, accept, or reject a donation offered to the 
Corporation and to make the determinations described in Sec.  2544.130 
(c) and (d). The CEO may delegate this authority in writing to other 
officials of the Corporation.



Sec.  2544.130  How will the Corporation determine whether to solicit 
or accept a donation?

    (a) The Corporation will solicit and accept a donation only for the 
purpose of furthering the mission and goals of the Corporation.
    (b) In order to be accepted, the donation must be economically 
advantageous to the Corporation, considering foreseeable expenditures 
for matters such as storage, transportation, maintenance, and 
distribution.
    (c) An official or employee of the Corporation will not solicit or 
accept a donation if the solicitation or acceptance would present a real 
or apparent conflict of interest. An apparent conflict of interest is 
presented if the solicitation or acceptance would raise a question in 
the mind of a reasonable person, with knowledge of the relevant facts, 
about the integrity of the Corporation's programs or operations.
    (d) The Corporation will determine whether a conflict of interest 
exists by considering any business relationship, financial interest, 
litigation, or other

[[Page 773]]

factors that may indicate such a conflict. Donations of property or 
voluntary services may not be solicited or accepted from a source which:
    (1) Is a party to a grant or contract with the Corporation or is 
seeking to do business with the Corporation;
    (2) Has pecuniary interests that may be substantially affected by 
performance or nonperformance of the Corporation; or
    (3) Is an organization a majority of whose members are described in 
paragraphs (d)(1) and (2) of this section.
    (e) Any solicitation or offer of a donation that raises a question 
or concern of a potential, real, or apparent conflict of interest will 
be forwarded to the Corporation's Designated Ethics Official for an 
opinion.



Sec.  2544.135  How should an offer of a donation be made?

    (a) In general, an offer of donation should be made by providing a 
letter of tender that offers a donation. The letter should be directed 
to an official authorized to accept donations, describe the property or 
service offered, and specify any purpose for, or condition on, the use 
of the donation.
    (b) If an offer is made orally, the Corporation will send a letter 
of acknowledgment to the offeror. If the donor is anonymous, the 
Corporation will prepare a memorandum to the file acknowledging receipt 
of a tendered donation and describing the donation including any special 
terms or conditions.
    (c) Only those employees or officials with expressed notice of 
authority may accept donations on behalf of the Corporation. If an offer 
is directed to an unauthorized employee or official of the Corporation, 
that person must immediately forward the offer to an appropriate 
official for disposition.



Sec.  2544.140  How will the Corporation accept or reject an offer?

    (a) In general, the Corporation will respond to an offer of a 
donation in writing and include in the response:
    (1) An acknowledgment of receipt of the offer;
    (2) A brief description of the offer and any purpose or condition 
that the offeror specified for the use of the donation;
    (3) A statement either accepting or rejecting the donation; and
    (4) A statement informing the donor that any acceptance of services 
or property can not be used in any manner, directly or indirectly, that 
endorses the donor's products or services or appears to benefit the 
financial interests or business goals of the donor.
    (b) If a purpose or condition for the use of the donation specified 
by the offeror can not be accommodated, the Corporation may request the 
offeror to modify the terms of the donation.



Sec.  2544.145  What will be done with property that is not accepted?

    In general, property offered to the Corporation but not accepted 
will be returned to the offeror. If the offeror is unknown or the 
donation would spoil if returned, the property will either be disposed 
of in accordance with Federal Property Management regulations (41 CFR 
chapter 101) or given to local charities determined by the Corporation.



Sec.  2544.150  How will accepted donations be recorded and used?

    (a) All accepted donations of money and other property will be 
reported to the Chief Financial Officer (CFO) of the Corporation for 
recording and appropriate disposition.
    (b) All donations of personal services of a volunteer will be 
reported to the CFO and to the Personnel Division of the Corporation for 
processing and documentation.
    (c) Donations not designated for a particular purpose will be used 
for an authorized purpose described in Sec.  2544.125.
    (d) Property will be used as nearly as possible in accordance with 
the terms of the donation. If no terms are specified, or the property 
can no longer be used for its original purpose, the property will be 
converted to another authorized use or sold in accordance with Federal 
regulations. The proceeds of the sale will be used for an authorized 
purpose described in Sec.  2544.125.

[[Page 774]]



PART 2550_REQUIREMENTS AND GENERAL PROVISIONS FOR STATE COMMISSIONS 
AND ALTERNATIVE ADMINISTRATIVE ENTITIES--Table of Contents



Sec.
2550.10 What is the purpose of this part?
2550.20 Definitions.
2550.30 How does a State decide whether to establish a State commission 
          or an alternative administrative entity?
2550.40 How does a State get Corporation authorization and approval for 
          the entity it has chosen?
2550.50 What are the composition requirements and other requirements, 
          restrictions or guidelines for State Commissions?
2550.60 From which of the State Commission requirements is an 
          Alternative Administrative Entity exempt?
2550.70 [Reserved]
2550.80 What are the duties of the State entities?
2550.85 How will the State Plan be assessed?
2550.90 Are there any restrictions on the activities of the members of 
          State Commissions or Alternative Administrative Entities?
2550.100 Do State entities or their members incur any risk of liability?
2550.110 What grants will be available from the Corporation to assist in 
          establishing and operating a State Commission, Alternative 
          Administrative Entity, or Transitional Entity?

    Authority: 42 U.S.C. 12638.

    Source: 58 FR 60981, Nov. 18, 1993, unless otherwise noted.



Sec.  2550.10  What is the purpose of this part?

    (a) The Corporation for National and Community Service (the 
Corporation) seeks to meet the Nation's pressing human, educational, 
environmental and public safety needs through service and to 
reinvigorate the ethic of civic responsibility across the Nation. If the 
Corporation is to meet these goals, it is critical for each of the 
States to be actively involved.
    (b) To be eligible to apply for program funding, or approved 
national service positions, each State must establish a State commission 
on national and community service to administer the State program grant 
making process and to develop a State plan. The Corporation may, in some 
instances, approve an alternative administrative entity (AAE).
    (c) The Corporation will distribute grants of between $125,000 and 
$750,000 to States to cover the Federal share of operating the State 
commissions or AAEs.
    (d) The purpose of this part is to provide States with the basic 
information essential to participate in the subtitle C programs. Of 
equal importance, this part gives an explanation of the preliminary 
steps States must take in order to receive money from the Corporation. 
This part also offers guidance on which of the two State entities States 
should seek to establish, and it explains the composition requirements, 
duties, responsibilities, restrictions, and other relevant information 
for State commissions and AAEs.

[58 FR 60981, Nov. 18, 1993, as amended at 67 FR 45362, July 9, 2002; 70 
FR 39607, July 8, 2005]



Sec.  2550.20  Definitions.

    (a) AAE. Alternative Administrative Entity.
    (b) Administrative costs. As used in this part, those costs incurred 
by a State in the establishing and operating a State entity; the 
specific administrative costs for which a Corporation administrative 
grant may be used as defined in the Uniform Administrative Requirements 
for Grants and Agreements to State and Local Governments.
    (c) Alternative Administrative Entity (AAE). A State entity approved 
by the Corporation to perform the duties of a State Commission, 
including developing a three-year comprehensive national service plan, 
preparing applications to the Corporation for funding and approved 
national service positions, and administering service program grants; in 
general, an AAE must meet the same composition and other requirements as 
a State Commission, but may receive waivers from the Corporation to 
accommodate State laws that prohibit inquiring as to the political 
affiliation of members, to have more than 25 voting members (the maximum 
for a State Commission), and/or to select members in a manner other than 
selection by the chief executive officer of the State.

[[Page 775]]

    (d) Approved National Service Position. A national service program 
position for which the Corporation has approved the provision of a 
national service educational award as one of the benefits to be provided 
for successful completion of a term of service.
    (e) Corporation. As used in this part, the Corporation for National 
and Community Service established pursuant to the National and Community 
Service Trust Act of 1993 (42 U.S.C. 12651).
    (f) Corporation representative. Each of the individuals employed by 
the Corporation for National and Community Service to assist the States 
in carrying out national and community service activities; the 
Corporation representative must be included as a member of the State 
Commission or AAE.
    (g) Indian tribe. (1) An Indian tribe, band, nation, or other 
organized group or community, including--
    (i) Any Native village, as defined in section 3(c) of the Alaska 
Native Claims Settlement Act (43 U.S.C. 1602(c)), whether organized 
traditionally or pursuant to the Act of June 18, 1934 (commonly known as 
the ``Indian Reorganization Act''; 48 Stat. 984, chapter 576; 25 U.S.C. 
461 et seq.); and
    (ii) Any Regional Corporation or Village Corporation as defined in 
the Alaska Native Claims Settlement Act (43 U.S.C. 1602 (g) or (j)), 
that is recognized as eligible for the special programs and services 
provided by the United States under Federal law to Indians because of 
their status as Indians; and
    (2) Any tribal organization controlled, sanctioned, or chartered by 
an entity described in paragraph (g)(1) of this section.
    (h) Older adult. An individual 55 years of age or older.
    (i) Service-learning. A method under which students or participants 
learn and develop through active participation in thoughtfully organized 
service that is conducted in and meets the needs of a community and that 
is coordinated with an elementary school, secondary school, institution 
of higher education, or community service program, and with the 
community; service-learning is integrated into and enhances the academic 
curriculum of the students, or the educational components of the 
community service program in which the participants are enrolled, and it 
provides time for the students or participants to reflect on the service 
experience.
    (j) Service learning programs. The totality of the service learning 
programs receiving assistance from the Corporation under subtitle B of 
the Act, either directly or through a grant-making entity; this includes 
school-based, community-based, and higher education-based service-
learning programs.
    (k) State. As used in this part, the term State refers to each of 
the 50 States, the District of Columbia, the Commonwealth of Puerto 
Rico, the United States Virgin Islands, Guam, American Samoa, and the 
Commonwealth of the Northern Mariana Islands.
    (l) State Commission. A bipartisan or nonpartisan State entity, 
approved by the Corporation, consisting of 15-25 members (appointed by 
the chief executive officer of the State), that is responsible for 
developing a comprehensive national service plan, assembling 
applications for funding and approved national service positions, and 
administering national and community service programs in the State.
    (m) State Educational Agency. The same meaning given to such term in 
section 1471(23) of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 2891(23)).
    (n) State entity. A State Commission, AAE, or Transitional Entity 
that has been authorized by the Corporation to perform the duties of a 
State Commission.

[58 FR 60981, Nov. 18, 1993, as amended at 67 FR 45362, July 9, 2002; 70 
FR 39607, July 8, 2005]



Sec.  2550.30  How does a State decide whether to establish a State commission 
or an alternative administrative entity?

    (a) Although each State's chief executive officer has the authority 
to select an administrative option, the Corporation strongly encourages 
States to establish State Commissions which meet the requirements in 
this part as quickly as possible. The requirements for State Commissions 
were established to try to create informed and effective entities.

[[Page 776]]

    (b) The Corporation recognizes that some States, for legal or other 
legitimate reasons, may not be able to meet all of the requirements of 
the State Commissions. The AAE is essentially the same as a State 
Commission; however, it may be exempt from some of the State Commission 
requirements. A State that cannot meet one of the waivable requirements 
of the State Commission (as explained in Sec.  2550.60), and which can 
demonstrate this to the Corporation, should seek to establish an AAE.
    (c) Regardless of which entity a State employs, each State is 
required to solicit broad-based, local input in an open, inclusive, non-
political planning process.

[58 FR 60981, Nov. 18, 1993, as amended at 70 FR 39607, July 8, 2005]



Sec.  2550.40  How does a State obtain Corporation authorization 
and approval for the entity it has chosen?

    (a) To receive approval of a State Commission or AAE, a State must 
formally establish an entity that meets the corresponding composition, 
membership, authority, and duty requirements of this part. (For the AAE, 
a State must demonstrate why it is impossible or unreasonable to 
estalbish a State Commission; an approved AAE, however, has the same 
rights and responsibilities as a State Commission.) Once the entity is 
established, the State must provide written notice--in a format to be 
prescribed by the Corporation--to the chief executive officer of the 
Corporation of the composition, membership, and authorities of the State 
Commission or AAE and explain how the entity will perform its duties and 
functions. Further, the State must agree to, first, request approval 
from the Corporation for any subsequent changes in the composition or 
duties of a State Commission or AAE the State may wish to make, and, 
second, to comply with any future changes in Corporation requirements 
with regard to the composition or duties of a State Commission or AAE. 
If a State meets the applicable requirements, the Corporation will 
approve the State Commission or AAE.
    (b) If the Corporation rejects a State application for approval of a 
State Commission or AAE because that application does not meet one or 
more of the requirements of Sec. Sec.  2250.50 or 2550.60, it will 
notify the State of the reasons for rejection and offer assistance to 
make any necessary changes. The Corporation will reconsider revised 
applications within 14 working days of resubmission.

[58 FR 60981, Nov. 18, 1993, as amended at 70 FR 39607, July 8, 2005]



Sec.  2550.50  What are the composition requirements and other requirements, 
restrictions or guidelines for State Commissions?

    The following provisions apply to both State Commissions and AAEs, 
except that AAEs may obtain waivers from certain provisions as explained 
in Sec.  2550.60.
    (a) Size of the State Commission and terms of State Commission 
members. The chief executive officer of a State must appoint 15-25 
voting members to the State Commission (in addition to any non-voting 
members he or she may appoint). Voting members of a State Commission 
must be appointed to renewable three-year terms, except that initially a 
chief executive officer must appoint a third of the members to one-year 
terms and another third of the members to two-year terms.
    (b) Required voting members on a State Commission. A member may 
represent none, one, or more than one category, but each of the 
following categories must be represented:
    (1) A representative of a community-based agency or organization in 
the State;
    (2) The head of the State education agency or his or her designee;
    (3) A representative of local government in the State;
    (4) A representative of local labor organizations in the State;
    (5) A representative of business;
    (6) An individual between the ages of 16 and 25, inclusive, who is a 
participant or supervisor of a service program for school-age youth, or 
of a campus-based or national service program;
    (7) A representative of a national service program;

[[Page 777]]

    (8) An individual with expertise in the educational, training, and 
development needs of youth, particularly disadvantaged youth;
    (9) An individual with experience in promoting the involvement of 
older adults (age 55 and older) in service and volunteerism; and
    (10) A representative of the volunteer sector.
    (c) Appointment of other voting members of a State Commission. Any 
remaining voting members of a State Commission are appointed at the 
discretion of the chief executive officer of the State; however, 
although this list should not be construed as exhaustive, the 
Corporation suggests the following types of individuals:
    (1) Educators, including representatives from institutions of higher 
education and local education agencies;
    (2) Experts in the delivery of human, educational, environmental, or 
public safety services to communities and persons;
    (3) Representatives of Indian tribes;
    (4) Out-of-school or at-risk youth; and
    (5) Representatives of programs that are administered or receive 
assistance under the Domestic Volunteer Service Act of 1973, as amended 
(DVSA) (42 U.S.C. 4950 et seq.).
    (d) Appointment of ex officio, non-voting members of a State 
Commission. The chief executive officer of a State may appoint as ex 
officio, non-voting members of the State Commission officers or 
employees of State agencies operating community service, youth service, 
education, social service, senior service, or job training programs.
    (e) Other composition requirements. To the extent practicable, the 
chief executive officer of a State shall ensure that the membership for 
the State commission is diverse with respect to race, ethnicity, age, 
gender, and disability characteristics. Not more than 50 percent plus 
one of the voting members of a State commission may be from the same 
political party. In addition, the number of voting members of a State 
commission who are officers or employees of the State may not exceed 25% 
of the total membership of that State commission.
    (f) Selection of Chairperson. The chairperson is elected by the 
voting members of a State Commission. To be eligible to serve as 
chairperson, an individual must be an appointed, voting member of a 
State Commission.
    (g) Vacancies. If a vacancy occurs on a State Commission, a new 
member must be appointed by the chief executive officer of the State to 
serve for the remainder of the term for which the predecessor of such 
member was appointed. The vacancy will not affect the power of the 
remaining members to execute the duties of the Commission.
    (h) Compensation of State Commission members. A member of a State 
Commission may not receive compensation for his or her services, but may 
be reimbursed (at the discretion of the State) for travel and daily 
expenses in the same manner as employees intermittently serving the 
State.
    (i) The role of the Corporation representative. The Corporation will 
designate one of its employees to serve as a representative to each 
State or group of States. This individual must be included as an ex 
officio non-voting member on the State Commission. In general, the 
Corporation representative will be responsible for assisting States in 
carrying out national service activities.

[58 FR 60981, Nov. 18, 1993, as amended at 73 FR 53762, Sept. 17, 2008; 
74 FR 46507, Sept. 10, 2009; 74 FR 48866, Sept. 25, 2009]



Sec.  2550.60  From which of the State Commission requirements is 
an Alternative Administrative Entity exempt?

    (a) An AAE is not automatically exempt from any of the requirements 
that govern State Commissions. However, there are three specific State 
Commission requirements which the Corporation may waive if a State can 
demonstrate that one or more of them is impossible or unreasonable to 
meet. If the Corporation waives a State Commission requirement for a 
State entity, that State entity is, de facto, an AAE. The three criteria 
which may be waived for an AAE are as follows:
    (1) The requirement that a State's chief executive officer appoint 
the members of a State Commission. If a State can offer a compelling 
reason why some or all of

[[Page 778]]

the State Commission members should be appointed by the State 
legislature or by some other appropriate means, the Corporation may 
grant a waiver.
    (2) The requirement that a State Commission have 15-25 members. If a 
State compellingly demonstrates why its commission should have a larger 
number of members, the Corporation may grant a waiver.
    (3) The requirement that not more than 50% plus one of the State 
Commission's voting members be from the same political party. This 
requirement was established to prevent State Commissions from being 
politically motivated or controlled; however, in some States it is 
illegal to require prospective members to provide information about 
political party affiliation. For this or another compelling reason, the 
Corporation may grant a waiver.
    (b) Again, any time the Corporation grants one or more of these 
waivers for a State entity, that entity becomes an AAE; in all other 
respects an AAE is the same as a State Commission, having the same 
requirements, rights, duties and responsibilities.



Sec.  2550.70  [Reserved]



Sec.  2550.80  What are the duties of the State entities?

    Both State commissions and AAEs have the same duties. This section 
lists the duties that apply to both State commissions and AAEs--
collectively referred to as State entities. Functions described in 
paragraphs (e) through (j) of this section are non-policymaking and may 
be delegated to another State agency or nonprofit organization. The 
duties are as follows:
    (a) Development of a three-year, comprehensive national and 
community service plan and establishment of State priorities. The State 
entity must develop and annually update a Statewide plan for national 
service covering a three-year period, the beginning of which may be set 
by the State, that is consistent with the Corporation's broad goals of 
meeting human, educational, environmental, and public safety needs and 
meets the following minimum requirements:
    (1) The plan must be developed through an open and public process 
(such as through regional forums or hearings) that provides for the 
maximum participation and input from a broad cross-section of 
individuals and organizations, including national service programs 
within the State, community-based agencies, organizations with a 
demonstrated record of providing educational, public safety, human, or 
environmental services, residents of the State, including youth and 
other prospective participants, State Educational Agencies, traditional 
service organizations, labor unions, and other interested members of the 
public.
    (2) The plan must ensure outreach to diverse, broad-based community 
organizations that serve underrepresented populations by creating State 
networks and registries or by utilizing existing ones.
    (3) The plan must set forth the State's goals, priorities, and 
strategies for promoting national and community service and 
strengthening its service infrastructure, including how Corporation-
funded programs fit into the plan.
    (4) The plan may contain such other information as the State 
commission considers appropriate and must contain such other information 
as the Corporation may require.
    (5) The plan must ensure outreach to, and coordination with, 
municipalities and county governments regarding the national service 
laws.
    (6) The plan must provide for effective coordination of funding 
applications submitted by the State and other organizations within the 
State under the national service laws.
    (7) The plan must include measurable goals and outcomes for national 
service programs funded through the State consistent with the 
performance levels for national service programs.
    (8) The plan is subject to approval by the chief executive officer 
of the State.
    (9) The plan must be submitted, in its entirety, in summary, or in 
part, to the Corporation upon request.
    (b) Selection of subtitle C programs and preparation of application 
to the Corporation. Each State must:
    (1) Prepare an application to the Corporation to receive funding or 
education awards for national service programs operating in and selected 
by the State.

[[Page 779]]

    (2) Administer a competitive process to select national service 
programs for funding. The State is not required to select programs for 
funding prior to submission of the application described in paragraph 
(b)(1) of this section.
    (c) Preparation of Service Learning applications. (1) The State 
entity is required to assist the State education agency in preparing the 
application for subtitle B school-based service learning programs.
    (2) The State entity may apply to the Corporation to receive funding 
for community-based subtitle programs after coordination with the State 
Educational Agency.
    (d) Administration of the grants program. After subtitle C and 
community-based subtitle B funds are awarded, States entities will be 
responsible for administering the grants and overseeing and monitoring 
the performance and progress of funded programs.
    (e) Evaluation and monitoring. State entities, in concert with the 
Corporation, shall be responsible for implementing comprehensive, non-
duplicative evaluation and monitoring systems.
    (f) Technical assistance. The State entity will be responsible for 
providing technical assistance to local nonprofit organizations and 
other entities in planning programs, applying for funds, and in 
implementing and operating high quality programs. States should 
encourage proposals from underserved communities.
    (g) Program development assistance and training. The State entity 
must assist in the development of subtitle C programs; such development 
might include staff training, curriculum materials, and other relevant 
materials and activities. A description of such proposed assistance must 
be included in the State comprehensive plan referred to in paragraph (a) 
of this section. A State may apply for additional subtitle C programs 
training and technical assistance funds to perform these functions. The 
Corporation will issue notices of availability of funds with respect to 
training and technical assistance.
    (h) Recruitment and placement. The State entity, as well as the 
Corporation, will develop mechanisms for recruitment and placement of 
people interested in participating in national service programs.
    (i) Benefits. The State entity shall assist in the provision of 
health and child care benefits to subtitle C program participants, as 
will be specified in the regulations implementing the subtitle C 
programs.
    (j) Activity ineligible for assistance. A State commission or AAE 
may not directly carry out any national service program that receives 
financial assistance under section 121 of the NCSA or title II of the 
DVSA.
    (k) Make recommendations to the Corporation with respect to 
priorities within the State for programs receiving assistance under 
DVSA.
    (l) Coordination--(1) Coordination with other State agencies. A 
State entity must coordinate its activities with the activities of other 
State agencies that administer Federal financial assistance programs 
under the Community Services Block Grant Act (42 U.S.C. 9901 et seq.) or 
other appropriate Federal financial assistance programs.
    (2) Coordination with volunteer service programs. In general, the 
State entity shall coordinate its functions (including recruitment, 
public awareness, and training activities) with such functions of any 
division of ACTION, or the Corporation, that carries out volunteer 
service programs in the State. Specifically, the State entity may enter 
into an agreement with a division of ACTION or the Corporation to carry 
out its functions jointly, to perform its functions itself, or to assign 
responsibility for its functions to ACTION or the Corporation.
    (3) In carrying out the activities under paragraphs (l)(1) and (2) 
of this section, the parties involved must exchange information about 
the programs carried out in the State by the State entity, a division of 
ACTION or the Corporation, as well as information about opportunities to 
coordinate activities.
    (m) Supplemental State Service Plan for Adults Age 55 or Older. To 
be eligible to receive a grant or allotment under subtitles B or C of 
title I of the National and Community Service Act (42 U.S.C.

[[Page 780]]

12501 et seq.), or to receive a distribution of approved national 
service positions under subtitle C of title I of that Act, a State must 
work with appropriate State agencies and private entities to develop a 
comprehensive State service plan for service by adults age 55 or older. 
This plan must:
    (1) Include the following elements:
    (i) Recommendations for policies to increase service for adults age 
55 or older, including how to best use such adults as sources of social 
capital, and how to utilize their skills and experience to address 
community needs;
    (ii) Recommendations to the State agency on aging (as defined in 
section 102 of the Older Americans Act of 1965, 42 U.S.C. 3002) on a 
marketing outreach plan to businesses and outreach to nonprofit 
organizations, the State educational agency, institutions of higher 
education, and other State agencies;
    (iii) Recommendations for civic engagement and multigenerational 
activities, including early childhood education and care, family 
literacy, and other after school programs, respite services for adults 
age 55 or older and caregivers, and transitions for older adults age 55 
or older to purposeful work in their post-career lives;
    (2) Incorporate the current knowledge base regarding--
    (i) The economic impact of the roles of workers age 55 or older in 
the economy;
    (ii) The social impact of the roles of such workers in the 
community;
    (iii) The health and social benefits of active engagement for adults 
age 55 or older; and
    (3) Be made available to the public and transmitted to the 
Corporation.

[58 FR 60981, Nov. 18, 1993, as amended at 70 FR 39607, July 8, 2005; 73 
FR 53762, Sept. 17, 2008; 74 FR 46507, Sept. 10, 2009; 74 FR 48866, 
Sept. 25, 2009; 75 FR 51415, Aug. 20, 2010]



Sec.  2550.85  How will the State Plan be assessed?

    The Corporation will assess the quality of your State Plan as 
evidenced by:
    (a) The development and quality of realistic goals and objectives 
for moving service ahead in the State;
    (b) The extent to which proposed strategies can reasonably be 
expected to accomplish stated goals; and
    (c) The extent of input in the development of the State plan from a 
broad cross-section of individuals and organizations as required by 
Sec.  2550.80(a)(1).

[73 FR 53762, Sept. 17, 2008]



Sec.  2550.90  Are there any restrictions on the activities of the members 
of State Commissions or Alternative Administrative Entities?

    To avoid a conflict of interest (or the appearance of a conflict of 
interest) regarding the provision of assistance or approved national 
service positions, members of a State Commission or AAE must adhere to 
the following provisions:
    (a) General restriction. Members of State Commissions and AAEs are 
restricted in several ways from the grant approval and administration 
process for any grant application submitted by an organization for which 
they are currently, or were within one year of the submission of the 
application, officers, directors, trustees, full-time volunteers or 
employees. The restrictions for such individuals are as follows:
    (1) They cannot assist the applying organization in preparing the 
grant application;
    (2) They must recuse themselves from the discussions or decisions 
regarding the grant application and any other grant applications 
submitted to the Commission or AAE under the same program (e.g., 
subtitle B programs or subtitle C programs); and
    (3) They cannot participate in the oversight, evaluation, 
continuation, suspension or termination of the grant award.
    (b) Exception to achieve a quorum. If this general restriction 
creates a situation in which a Commission or AAE does not have enough 
eligible voting members to achieve a quorum, the Commission or AAE may 
involve some normally-excluded members subject to the following 
conditions:
    (1) A Commission or AAE may randomly and in a non-discretionary 
manner select the number of refused members necessary to achieve a 
quorum;
    (2) Notwithstanding paragraph (b)(1) of this section, no Commission 
or AAE

[[Page 781]]

member may, under any circumstances, participate in any discussions or 
decisions regarding a grant application submitted by an organization 
with which he or she is or was affiliated according to the definitions 
in paragraph (a) of this section; and
    (3) If recused members are included so as to achieve quorum, the 
State Commission or AAE must document the event and report to the 
Corporation within 30 days of the vote.
    (c) Rule of construction. Paragraph (a) of this section shall not be 
construed to limit the authority of any voting member of the State 
Commission or AAE to participate in--
    (1) Discussion of, and hearings and forums on, the general duties, 
policies and operations of the Commission or AAE, or general program 
administration; or
    (2) Similar general matters relating to the Commission or AAE.



Sec.  2550.100  Do State entities or their members incur any risk of liability?

    (a) State liability. Except as provided in paragraph (b) of this 
section, a State must agree to assume liability with respect to any 
claim arising out of or resulting from any act or omission by a member 
of the State Commission or AAE, within the scope of the service of that 
member.
    (b) Individual liability. A member of the State Commission or AAE 
shall have no personal liability with respect to any claim arising out 
of or resulting from any act or omission by that member, within the 
scope of the service of that member. This does not, however, limit 
personal liability for criminal acts or omissions, willful or malicious 
misconduct, acts or omissions for private gain, or any other act or 
omission outside the scope of the service of that member. Similarly, 
this part does not limit or alter in any way any other immunities that 
are available under applicable law for State officials and employees not 
described in this section; nor does this part affect any other right or 
remedy against the State or any person other than a member of a State 
Commission or AAE.



Sec.  2550.110  What grants will be available from the Corporation to assist 
in establishing and operating a State Commission, Alternative Administrative 
Entity, or Transitional Entity?

    (a) Administrative Grants. The Corporation may make administrative 
grants to States in an amount no less than $250,000 and up to $1 million 
for the purpose of establishing or operating a State Commission or AAE; 
these grants will be available to States which have Corporation-approved 
Transitional Entities only if those States commit to establishing a 
Corporation-approved State Commission or AAE prior to the expiration of 
the transitional period.
    (b) Limitation on Federal share. Except as provided in paragraph (c) 
of this section, the amount of a grant that may be provided to a State 
under this subsection, together with other Federal funds available to 
establish or operate the State Commission or AAE, may not exceed 50 
percent of the total cost to establish or operate the State Commission 
or AAE.
    (c) Alternative Match Schedule. The Corporation may permit a State 
that demonstrates hardship or a new State Commission to meet alternative 
matching requirements for such a grant as follows:

------------------------------------------------------------------------
              Grant amount                      Match requirement
------------------------------------------------------------------------
(1) First $100,000.....................  No match requirement.
(2) Amounts above $100,000 but less      $1 of non-Federal funds for
 than $250,000.                           every $2 provided by the
                                          Corporation in excess of
                                          $100,000.
(3) Amounts greater than $250,000......  $1 of non-Federal funds for
                                          every $1 provided by the
                                          Corporation in excess of
                                          $250,000.
------------------------------------------------------------------------


[[Page 782]]


[74 FR 46508, Sept. 10, 2009]



PART 2551_SENIOR COMPANION PROGRAM--Table of Contents



                            Subpart A_General

Sec.
2551.11 What is the Senior Companion Program?
2551.12 Definitions.

         Subpart B_Eligibility and Responsibilities of a Sponsor

2551.21 Who is eligible to serve as a sponsor?
2551.22 What are the responsibilities of a sponsor?
2551.23 What are a sponsor's project responsibilities?
2551.24 What are a sponsor's responsibilities for securing community 
          participation?
2551.25 What are a sponsor's administrative responsibilities?
2551.26-2551.33 [Reserved]

     Subpart C_Suspension and Termination of Corporation Assistance

2551.34 What are the rules on suspension, termination, and denial of 
          refunding of grants?

 Subpart D_Senior Companion Eligibility, Status, and Cost Reimbursements

2551.41 Who is eligible to be a Senior Companion?
2551.42 What types of criminal convictions or other adjudications 
          disqualify an individual from serving as a Senior Companion or 
          as a Senior Companion grant-funded employee?
2551.43 What income guidelines govern eligibility to serve as a 
          stipended Senior Companion?
2551.44 What is considered income for determining volunteer eligibility?
2551.45 Is a Senior Companion a federal employee, an employee of the 
          sponsor or of the volunteer station?
2551.46 What cost reimbursements and benefits do sponsors provide to 
          Senior Companions?
2551.47 May the cost reimbursements and benefits of a Senior Companion 
          be subject to any tax or charge, be treated as wages or 
          compensation, or affect eligibility to receive assistance from 
          other programs?

               Subpart E_Senior Companion Terms of Service

2551.51 What are the terms of service of a Senior Companion?
2551.52 What factors are considered in determining a Senior Companion's 
          service schedule?
2551.53 Under what circumstances may a Senior Companion be removed from 
          service?

            Subpart F_Responsibilities of a Volunteer Station

2551.61 May a sponsor serve as a volunteer station?
2551.62 What are the responsibilities of a volunteer station?

          Subpart G_Senior Companion Placements and Assignments

2551.71 What requirements govern the assignment of Senior Companions?
2551.72 Is a written volunteer assignment plan required for each Senior 
          Companion?
2551.73 May a Senior Companion serve as a volunteer leader?

                        Subpart H_Clients Served

2551.81 What type of clients are eligible to be served?

              Subpart I_Application and Fiscal Requirements

2551.91 What is the process for application and award of a grant?
2551.92 What are project funding requirements?
2551.93 What are a sponsor's legal requirements in managing grants?

                Subpart J_Non-Stipended Senior Companions

2551.101 What rule governs the recruitment and enrollment of persons who 
          do not meet the income eligibility guidelines to serve as 
          Senior Companions?
2551.102 What are the conditions of service of non-stipended Senior 
          Companions?
2551.103 Must a sponsor be required to enroll non-stipended Senior 
          Companions?
2551.104 [Reserved]

           Subpart K_Non-CNCS Funded Senior Companion Projects

2551.111 Under what conditions may an agency or organization sponsor a 
          Senior Companion project without CNCS funding?
2551.112 What are the resources and benefits to which a non-CNCS funded 
          project is entitled?
2551.113 What financial obligation does CNCS incur for non-CNCS funded 
          projects?

[[Page 783]]

2551.114 What happens if a non-CNCS funded sponsor does not comply with 
          the NGA?

             Subpart L_Restrictions and Legal Representation

2551.121 What legal limitations apply to the operation of the Senior 
          Companion Program and to the expenditure of grant funds?
2551.122 What legal coverage does CNCS make available to Senior 
          Companions?

    Authority: 42 U.S.C. 4950 et seq.; 42 U.S.C. 12651b-12651d; E.O. 
13331, 69 FR 9911.

    Source: 64 FR 14115, Mar. 24, 1999, unless otherwise noted.



                            Subpart A_General



Sec.  2551.11  What is the Senior Companion Program?

    The Senior Companion Program provides grants to qualified agencies 
and organizations for the dual purpose of engaging persons 55 and older, 
particularly those with limited incomes, in volunteer service to meet 
critical community needs; and to provide a high quality experience that 
will enrich the lives of the volunteers. Program funds are used to 
support Senior Companions in providing supportive, individualized 
services to help older adults with special needs maintain their dignity 
and independence.

[74 FR 46508, Sept. 10, 2009]



Sec.  2551.12  Definitions.

    Act. The Domestic Volunteer Service Act of 1973, as amended, Pub. L. 
93-113, Oct. 1, 1973, 87 Stat. 396, 42 U.S.C. 4950 et seq.
    Adequate staffing level. The number of project staff or full time 
equivalent needed by a sponsor to manage the National Senior Service 
Corps (NSSC) project operations considering such factors as: Number of 
budgeted Volunteer Service Years (VSYs), number of volunteer stations, 
and the size of the service area.
    Adult with special needs. Any individual over 21 years of age who 
has one or more physical, emotional, or mental health limitations and is 
in need of assistance to achieve and maintain their highest level of 
independent living.
    Annual income. Total cash and in-kind receipts from all sources over 
the preceding 12 months including: the applicant or enrollee's income 
and, the applicant or enrollee's spouse's income, if the spouse lives in 
the same residence. The value of shelter, food, and clothing, shall be 
counted if provided at no cost by persons related to the applicant/
enrollee, or spouse.
    Chief Executive Officer. The Chief Executive Officer of CNCS 
appointed under the National and Community Service Act of 1990, as 
amended, (NCSA), 42 U.S.C. 12501 et seq.
    CNCS. The Corporation for National and Community Service established 
under the NCSA, as amended, 42 U.S.C. 12501 et seq.
    Cost reimbursements. Reimbursements budgeted as Volunteer Expenses 
and provided to volunteers, including stipends to cover incidental 
costs, transportation, meals, recognition, supplemental accident, 
personal liability and excess automobile liability insurance and other 
expenses as negotiated in the Memorandum of Understanding.
    In-home. The non-institutional assignment of a Senior Companion in a 
private residence.
    Letter of Agreement. A written agreement between a volunteer station 
or sponsor, and person(s) served or the person legally responsible for 
that person. It authorizes the assignment of an SCP volunteer in the 
home of a client, defines SCP volunteer activities, and specifies 
supervision arrangements.
    Memorandum of Understanding. A written statement prepared and signed 
by the Senior Companion project sponsor and the volunteer station that 
identifies project requirements, working relationships and mutual 
responsibilities.
    National Senior Service Corps (NSSC). The collective name for the 
Senior Companion Program (SCP), the Foster Grandparent Program (FGP), 
the Retired and Senior Volunteer Program (RSVP), and Demonstration 
Programs, all of which are established under Parts A, B, C, and E, Title 
II of the Act. NSSC is also referred to as the ``Senior Corps''.
    Non-CNCS support (excess). The amount of non-CNCS cash and in-kind 
contributions generated by a sponsor in excess of the required 
percentage.

[[Page 784]]

    Non-CNCS support (match). The percentage share of non-CNCS cash and 
in-kind contributions required to be raised by the sponsor in support of 
the grant.
    Performance measures. Indicators that help determine the impact of 
an SCP project on the community and clients served, including the 
volunteers.
    Project. The locally planned SCP activity or set of activities in a 
service area as approved by CNCS and implemented by the sponsor.
    Proprietary Health Care Organizations. Private, for-profit health 
care organization that serves one or more vulnerable populations.
    Service area. The geographically defined area(s) in which Senior 
Companions are enrolled and placed on assignments.
    Service schedule. A written delineation of the days and times a 
Senior Companion serves each week.
    Sponsor. A public agency, including Indian tribes as defined in 
section 421(5) of the Act, and private, non-profit organizations, both 
secular and faith-based, in the United States that have authority to 
accept and the capability to administer a Senior Companion project.
    Stipend. A payment to Senior Companions to enable them to serve 
without cost to themselves. The amount of the stipend is set by CNCS in 
accordance with federal law.
    United States and Territories. Each of the several States, the 
District of Columbia, the U.S. Virgin Islands, the Commonwealth of 
Puerto Rico, Guam and American Samoa, the Commonwealth of the Northern 
Mariana Islands, and the Trust Territories of the Pacific Islands.
    Volunteer assignment plan. A written description of a Senior 
Companion's assignment with a client. The plan identifies specific 
outcomes for the client served and the activities of the Senior 
Companion.
    Volunteer station. A public agency; a private, non-profit 
organization, secular or faith-based; or a proprietary health care 
organization. A volunteer station must accept responsibility for the 
assignment and supervision of Senior Companions in health, education, 
social service or related settings such as multi-purpose centers, home 
health care agencies, or similar establishments. Each volunteer station 
must be licensed or otherwise certified, when required, by the 
appropriate state or local government. Private homes are not volunteer 
stations.

[64 FR 14115, Mar. 24, 1999, as amended at 69 FR 60094, Oct. 7, 2004; 83 
FR 64644, Dec. 17, 2018]



         Subpart B_Eligibility and Responsibilities of a Sponsor



Sec.  2551.21  Who is eligible to serve as a sponsor?

    CNCS awards grants to public agencies, including Indian tribes as 
defined in section 421(5) of the Act, and private, non-profit 
organizations, both secular and faith-based, in the United States that 
have authority to accept and the capability to administer a Senior 
Companion project.

[83 FR 64644, Dec. 17, 2018]



Sec.  2551.22  What are the responsibilities of a sponsor?

    A sponsor is responsible for fulfilling all project management 
requirements necessary to accomplish the purposes of the Senior 
Companion Program as specified in the Act. A sponsor shall not delegate 
or contract these overall management responsibilities to another entity. 
CNCS retains the right to determine what types of management 
responsibilities may or may not be contracted.

[83 FR 64645, Dec. 17, 2018]



Sec.  2551.23  What are a sponsor's project responsibilities?

    A sponsor shall:
    (a) Focus Senior Companion resources within the project's service 
area, on critical problems affecting the frail elderly and other adults 
with special needs.
    (b) In collaboration with other community organizations or by using 
existing assessments, assess the needs of the community or service area, 
and develop strategies to respond to identified needs using Senior 
Companions.
    (c) Develop and manage one or more volunteer stations by:

[[Page 785]]

    (1) Ensuring that a volunteer station is a public or non-profit 
private organization, whether secular or faith-based, or an eligible 
proprietary health care agency, capable of serving as a volunteer 
station for the placement of Senior Companions;
    (2) Ensuring that the placement of Senior Companions is governed by 
a Memorandum of Understanding:
    (i) That is negotiated prior to placement;
    (ii) That specifies the mutual responsibilities of the station and 
sponsor;
    (iii) That is renegotiated at least every three years;
    (iv) That states the station will not discriminate against SCP 
volunteers, service beneficiaries, or in the operation of its program on 
the basis of race, color, national origin including individuals with 
limited English proficiency, gender, age, religion, sexual orientation, 
disability, gender identity or expression, political affiliation, 
marital or parental status, or military service; and
    (3) Reviewing volunteer placements regularly to ensure that clients 
are eligible to be served.
    (d) Develop service opportunities that consider the skills and 
experiences of the Senior Companion.
    (e) Consider the demographic make-up of the project service area in 
the enrollment of Senior Companions, taking special efforts to recruit 
eligible individuals from minority groups, persons with disabilities, 
and under-represented groups.
    (f) Provide Senior Companions with assignments that show direct and 
demonstrable benefits to the adults and the community served, the Senior 
Companions, and the volunteer station; with required cost reimbursements 
specified in Sec.  2551.46; with 20 hours of pre-service orientation and 
at least 24 hours annually of in-service training.
    (g) Encourage the most efficient and effective use of Senior 
Companions by coordinating project services and activities with related 
national, state and local programs, including other CNCS programs.
    (h) Conduct an annual appraisal of volunteers' performance and 
annual review of their income eligibility.
    (i) Establish written service policies for Senior Companions that 
include but are not limited to:
    (1) Annual and sick leave.
    (2) Holidays.
    (3) Service schedules.
    (4) Termination and appeal procedures.
    (5) Meal and transportation reimbursements.
    (j) Conduct National Service Criminal History Checks in accordance 
with the requirements in 45 CFR 2540.200 through 2540.207.
    (k) Provide Senior Companion volunteers with cost reimbursements 
specified in this section.
    (l) Make every effort to meet such performance measures as 
established in the approved grant application.

[64 FR 14115, Mar. 24, 1999, as amended at 67 FR 60998, Sept. 27, 2002; 
69 FR 60095, Oct. 7, 2004; 74 FR 46508, Sept. 10, 2009; 77 FR 60933, 
Oct. 5, 2012; 83 FR 64645, Dec. 17, 2018]



Sec.  2551.24  What are a sponsor's responsibilities for securing 
community participation?

    (a) A sponsor shall secure community participation in local project 
operation by establishing an Advisory Council or a similar 
organizational structure with a membership that includes people:
    (1) Knowledgeable of human and social needs of the community;
    (2) With an interest in the field of community service and 
volunteerism;
    (3) Capable of helping the sponsor satisfy its administrative and 
program responsibilities including fund-raising, publicity, and meeting 
or exceeding performance measures;
    (4) With an interest in, and knowledge of, the range of abilities of 
older adults; and
    (5) Of a diverse composition that reflects the demographics of the 
service area.
    (b) The sponsor determines how such participation shall be secured, 
consistent with the provisions of paragraphs (a)(1) through (a)(5) of 
this section.

[64 FR 14115, Mar. 24, 1999, as amended at 83 FR 64645, Dec. 17, 2018]



Sec.  2551.25  What are a sponsor's administrative responsibilities?

    A sponsor shall:

[[Page 786]]

    (a) Assume full responsibility for securing maximum and continuing 
community financial and in-kind support to operate the project 
successfully.
    (b) Provide levels of staffing and resources appropriate to 
accomplish the purposes of the project and carry out its project 
management responsibilities.
    (c) Employ a full-time project director to accomplish project 
objectives and manage the functions and activities delegate to project 
staff for Senior Corps project(s) within its control. The project 
director may participate in activities to coordinate project resources 
with those of related local agencies, boards or organizations. A full-
time project director shall not serve concurrently in another capacity, 
paid or unpaid, during established working hours. A sponsor may 
negotiate the employment of a part-time project director with CNCS when 
the sponsor can demonstrate that such an arrangement will not adversely 
affect the size, scope, or quality of project operations.
    (d) Consider all project staff as sponsor employees subject to its 
personnel policies and procedures.
    (e) Compensate project staff at a level that is comparable to 
similar staff positions in the sponsor organization and/or project 
service area, as is practicable.
    (f) Establish risk management policies and procedures covering 
Senior Companion project activities. This includes provision of 
appropriate insurance coverage for Senior Companions, which includes; 
accident insurance, personal liability insurance, and excess automobile 
liability insurance.
    (g) Establish record keeping and reporting systems in compliance 
with CNCS requirements that ensure quality of program and fiscal 
operations, facilitate timely and accurate submission of required 
reports and cooperate with CNCS evaluation and data collection efforts.
    (h) Comply with, and ensure that all volunteer stations comply with, 
all applicable civil rights laws and regulations, including non-
discrimination based on disability.

[64 FR 14115, Mar. 24, 1999, as amended at 83 FR 64645, Dec. 17, 2018]



Sec.  2551.26-2551.33  [Reserved]



     Subpart C_Suspension and Termination of Corporation Assistance



Sec.  2551.34  What are the rules on suspension, termination, 
and denial of refunding of grants?

    (a) The Chief Executive Officer or designee is authorized to suspend 
further payments or to terminate payments under any grant providing 
assistance under the Act whenever he/she determines there is a material 
failure to comply with applicable terms and conditions of the grant. The 
Chief Executive Officer shall prescribe procedures to insure that:
    (1) Assistance under the Act shall not be suspended for failure to 
comply with applicable terms and conditions, except in emergency 
situations for thirty days;
    (2) An application for refunding under the Act may not be denied 
unless the recipient has been given:
    (i) Notice at least 75 days before the denial of such application of 
the possibility of such denial and the grounds for any such denial; and
    (ii) Opportunity to show cause why such action should not be taken;
    (3) In any case where an application for refunding is denied for 
failure to comply with the terms and conditions of the grant, the 
recipient shall be afforded an opportunity for an informal hearing 
before an impartial hearing officer, who has been agreed to by the 
recipient and CNCS; and
    (4) Assistance under the Act shall not be terminated for failure to 
comply with applicable terms and conditions unless the recipient has 
been afforded reasonable notice and opportunity for a full and fair 
hearing.
    (b) Hearings or other meetings as may be necessary to fulfill the 
requirements of this section should, to the extent practicable, be held 
in locations convenient to the recipient agency.
    (c) The procedures for suspension, termination, and denial of 
refunding, that apply to the Senior Companion

[[Page 787]]

Program are specified in 45 CFR Part 1206.

[64 FR 14115, Mar. 24, 1999. Redesignated at 72 FR 48583, Aug. 24, 2007; 
83 FR 64645, Dec. 17, 2018]



 Subpart D_Senior Companion Eligibility, Status, and Cost Reimbursements



Sec.  2551.41  Who is eligible to be a Senior Companion?

    (a) To be a Senior Companion, an individual must:
    (1) Be 55 years of age or older; and
    (2) In order to receive a stipend, have an income that is within the 
income eligibility guidelines specified in this subpart D.
    (b) Eligibility to serve as a Senior Companion shall not be 
restricted on the basis of formal education, experience, race, color, 
national origin including limited English proficiency, gender, age, 
religion, sexual orientation, disability, gender identity or expression, 
political affiliation, marital or parental status, or military service.

[64 FR 14115, Mar. 24, 1999, as amended at 74 FR 46508, Sept. 10, 2009; 
83 FR 64645, Dec. 17, 2018]



Sec.  2551.42  What types of criminal convictions or other adjudications 
disqualify an individual from serving as a Senior Companion 
or as a Senior Companion grant-funded employee?

    Any individual who is registered, or who is required to be 
registered, on a State sex offender registry, or who has been convicted 
of murder, as defined under Federal law in section 1111 of title 18, 
United States Code, is deemed unsuitable for, and may not serve in, a 
position as a Senior Companion or as a Senior Companion grant-funded 
employee.

[74 FR 46508, Sept. 10, 2009]



Sec.  2551.43  What income guidelines govern eligibility to serve as 
a stipended Senior Companion?

    (a) To receive a stipend, a Senior Companion may not have an annual 
income from all sources, after deducting allowable medical expenses, 
which exceeds the program's income eligibility guideline for the State 
in which he or she resides. The income eligibility guideline for each 
State is 200 percent of the poverty line, as set forth in 42 U.S.C. 9902 
(2).
    (b) For applicants to become stipended Senior Companions, annual 
income is projected for the following 12 months, based on income at the 
time of application. For serving stipended Senior Companions, annual 
income is counted for the past 12 months. Annual income includes the 
applicant or enrollee's income and that of his/her spouse, if the spouse 
lives in the same residence.
    (c) Allowable medical expenses are annual out-of-pocket medical 
expenses for health insurance premiums, health care services, and 
medications provided to the applicant, enrollee, or spouse which were 
not and will not be paid by Medicare, Medicaid, other insurance, or 
other third party payor, and which do not exceed 50 percent of the 
applicable income guideline.
    (d) Applicants whose income is not more than 100 percent of the 
poverty line shall be given special consideration for enrollment.
    (e) Once enrolled, a Senior Companion shall remain eligible to serve 
and to receive a stipend so long as his or her income, does not exceed 
the applicable income eligibility guideline by 20 percent.

[64 FR 14115, Mar. 24, 1999, as amended at 67 FR 60998, Sept. 27, 2002; 
69 FR 20830, Apr. 19, 2004; Redesignated at 72 FR 48584, Aug. 24, 2007; 
74 FR 46508, Sept. 10, 2009; 83 FR 64646, Dec. 17, 2018]



Sec.  2551.44  What is considered income for determining volunteer eligibility?

    (a) For determining eligibility, ``income'' refers to total cash or 
in-kind receipts before taxes from all sources including:
    (1) Money, wages, and salaries before any deduction;
    (2) Receipts from self-employment or from a farm or business after 
deductions for business or farm expenses;
    (3) Social Security, Unemployment or Workers Compensation, strike 
benefits, training stipends, alimony, and military family allotments, or 
other regular support from an absent family

[[Page 788]]

member or someone not living in the household;
    (4) Government employee pensions, private pensions, regular 
insurance or annuity payments, and 401(k) or other retirement savings 
plans;
    (5) Income from dividends, interest, net rents, royalties, or income 
from estates and trusts.
    (b) For eligibility purposes, income does not refer to the following 
money receipts:
    (1) Any assets drawn down as withdrawals from a bank, sale of 
property, house or car, tax refunds, gifts, one-time insurance payments 
or compensation from injury;
    (2) Non-cash income, such as the bonus value of food and fuel 
produced and consumed on farms and the imputed value of rent from owner-
occupied farm or non-farm housing;
    (3) Regular payments for public assistance, including Supplemental 
Nutrition Assistance Program (SNAP);
    (4) Social Security Disability or any type of disability payment; 
and
    (5) Food or rent received in lieu of wages.

[64 FR 14115, Mar. 24, 1999. Redesignated at 72 FR 48584, Aug. 24, 2007; 
83 FR 64646, Dec. 17, 2018]



Sec.  2551.45  Is a Senior Companion a federal employee, an employee 
of the sponsor or of the volunteer station?

    Senior Companions are volunteers, and are not employees of the 
sponsor, the volunteer station, CNCS, or the Federal Government.

[83 FR 64646, Dec. 17, 2018]



Sec.  2551.46  What cost reimbursements are provided to Senior Companions?

    Cost reimbursements and benefits provided by sponsors include:
    (a) Stipend. The stipend is paid for the time Senior Companions 
spend with their assigned clients, for earned leave, and for attendance 
at official project events.
    (b) Insurance. Insurance is made available to Senior Companions with 
the CNCS specified minimum levels of insurance as follows:
    (1) Accident insurance. Accident insurance covers Senior Companions 
for personal injury during travel between their homes and places of 
assignment, during their service, during meal periods while serving as a 
Senior Companion, and while attending project-sponsored activities. 
Protection shall be provided against claims in excess of any benefits or 
services for medical care or treatment available to the Senior Companion 
from other sources.
    (2) Personal liability insurance. Protection is provided against 
claims in excess of protection provided by other insurance. Such 
protection does not include professional liability coverage.
    (3) Excess automobile liability insurance. (i) For Senior Companions 
who drive in connection with their service, protection is provided 
against claims in excess of the greater of either:
    (A) Liability insurance Senior Companions carry on their own 
automobiles; or
    (B) The limits of applicable state financial responsibility law, or 
in its absence, levels of protection that CNCS determines, and that the 
sponsor must provide, for each person, and each accident, and for 
property damage.
    (ii) Senior Companions who drive their personal vehicles to, or on, 
assignments or project-related activities, shall maintain personal 
automobile liability insurance equal to or exceeding the levels 
established by CNCS.
    (c) Transportation. Senior Companions shall receive assistance with 
the cost of transportation to and from, assignments and official project 
activities, including orientation, training, and recognition events.
    (d) Meals. Senior Companions may be provided assistance with the 
cost of meals taken while on assignment, within limits of the project's 
available resources.
    (e) Recognition. Senior Companion volunteers shall be provided 
recognition for their service.
    (f) Physical examination. Senior Companions may be provided a 
physical examination or assistance with the cost of a physical 
examination prior to assignment and annually thereafter.
    (g) Other volunteer expenses. Senior Companions may also be 
reimbursed for allowable out-of-pocket expenses

[[Page 789]]

incurred while performing their assignments.

[64 FR 14115, Mar. 24, 1999, as amended at 67 FR 60998, Sept. 27, 2002; 
69 FR 20830, Apr. 19, 2004. Redesignated at 72 FR 48584, Aug. 24, 2007; 
83 FR 64646, Dec. 17, 2018]



Sec.  2551.47  May the cost reimbursements and benefits of a Senior Companion 
be subject to any tax or charge, be treated as wages or compensation, 
or affect eligibility to receive assistance from other programs?

    No. Senior Companion's cost reimbursements and benefits are not 
subject to any tax or charge or treated as wages or compensation for the 
purposes of unemployment insurance, worker's compensation, temporary 
disability, retirement, public assistance, or similar benefit payments 
or minimum wage laws. Cost reimbursements and benefits are not subject 
to garnishment and do not reduce or eliminate the level of, or 
eligibility for, assistance or services a Senior Companion may be 
receiving under any governmental program.

[83 FR 64646, Dec. 17, 2018]



               Subpart E_Senior Companion Terms of Service



Sec.  2551.51  What are the terms of service of a Senior Companion?

    A Senior Companion shall serve a minimum of 260 hours annually, or a 
minimum of 5 hours per week. A Senior Companion may serve a maximum of 
2080 hours annually, or a maximum of 40 hours per week. Within these 
limitations, a sponsor may set service policies consistent with local 
needs.

[83 FR 64646, Dec. 17, 2018]



Sec.  2551.52  What factors are considered in determining a Senior Companion's 
service schedule?

    (a) Travel time between the Senior Companion's home and place of 
assignment is not part of the service schedule and is not stipended.
    (b) Travel time between individual assignments is a part of the 
service schedule and is stipended.
    (c) Meal time may be part of the service schedule and is stipended.

[64 FR 14115, Mar. 24, 1999, as amended at 83 FR 64646, Dec. 17, 2018]



Sec.  2551.53  Under what circumstances may a Senior Companion 
be removed from service?

    (a) A sponsor may remove a Senior Companion from service for cause. 
Grounds for removal include, but are not limited to: Extensive and 
unauthorized absences; misconduct; failure to perform assignments or 
failure to accept supervision. A Senior Companion may also be removed 
from stipended service for having income in excess of the eligibility 
level. A Senior Companion shall be removed immediately if ineligible to 
serve based on criminal history check results.
    (b) The sponsor shall establish appropriate policies on removal from 
service, as well as procedures for appeal.

[83 FR 64647, Dec. 17, 2018]



            Subpart F_Responsibilities of a Volunteer Station



Sec.  2551.61  May a sponsor serve as a volunteer station?

    Yes. A sponsor may serve as a volunteer station, if the activities 
are part of a work plan in the approved project application.

[83 FR 64647, Dec. 17, 2018]



Sec.  2551.62  What are the responsibilities of a volunteer station?

    A volunteer station shall undertake the following responsibilities 
in support of Senior Companion volunteers:
    (a) Develop volunteer assignments that meet the requirements 
specified in Sec. Sec.  2551.71 through 2551.72, and regularly assess 
those assignments for continued appropriateness.
    (b) Select eligible clients for assigned volunteers.
    (c) Develop a written volunteer assignment plan for each Senior 
Companion that identifies their roles and activities, each client 
served, and expected outcomes.
    (d) Keep a Letter of Agreement for each client who receives in-home 
service.

[[Page 790]]

    (e) Provide Senior Companions serving the station with:
    (1) Orientation to the station and any in-service training necessary 
to enhance performance of assignments; and
    (2) Resources required for performance of assignments, including 
reasonable accommodation, as needed, to enable Senior Companions with 
disabilities to perform the essential functions of their service.
    (f) Designate a staff member to oversee fulfillment of station 
responsibilities and supervision of Senior Companions while on 
assignment.
    (g) Keep records and prepare reports required by the sponsor.
    (h) Provide for the safety of Senior Companions assigned to it.
    (i) Comply with all applicable civil rights laws and regulations, 
including providing Senior Companions with disabilities reasonable 
accommodation, to perform the essential functions of their service.
    (j) Undertake such other responsibilities as may be necessary for 
the successful performance of Senior Companions in their assignments or 
as agreed to in the Memorandum of Understanding.

[64 FR 14115, Mar. 24, 1999, as amended at 83 FR 64647, Dec. 17, 2018]



          Subpart G_Senior Companion Placements and Assignments



Sec.  2551.71  What requirements govern the assignment of Senior Companions?

    (a) Senior Companion assignments shall provide for Senior Companions 
to give direct services to one or more eligible adults that:
    (1) Result in person-to-person supportive relationships with each 
client served.
    (2) Support the achievement and maintenance of the highest level of 
independent living for their clients.
    (3) Are meaningful to the Senior Companion.
    (4) Are supported by appropriate orientation, training, and 
supervision.
    (b) Senior Companions shall not provide services such as those 
performed by medical personnel, services to large numbers of clients, 
custodial services, administrative support services, or other services 
that would detract from their assignment.

[67 FR 60999, Sept. 27, 2002, as amended at 83 FR 64647, Dec. 17, 2018]



Sec.  2551.72  Is a written volunteer assignment plan required 
for each Senior Companion?

    (a) All Senior Companions performing direct services to individual 
clients in home settings and individual clients in community-based 
settings, shall receive a written volunteer assignment plan developed by 
the volunteer station that:
    (1) Is approved by the sponsor and accepted by the Senior Companion;
    (2) Identifies the client(s) to be served;
    (3) Identifies the role and activities of the Senior Companion and 
expected outcomes for the client(s);
    (4) Addresses the period of time each client is expected to receive 
such services; and
    (5) Is used to review the impact of the assignment on the client(s).
    (b) [Reserved]

[67 FR 60999, Sept. 27, 2002, as amended at 83 FR 64647, Dec. 17, 2018]



Sec.  2551.73  May a Senior Companion serve as a volunteer leader?

    Yes. Senior Companions--who on the basis of experience as 
volunteers, special skills, and demonstrated leadership abilities--may 
spend time, in addition to their regular assignment, to assist newer 
Senior Companion volunteers in performing their assignments and in 
coordinating activities of such volunteers.
    (a) All Senior Companions serving as volunteer leaders shall receive 
a written volunteer assignment plan developed by the volunteer station 
that:
    (1) Is approved by the sponsor and accepted by the Senior Companion;
    (2) Identifies the role and activities of the Senior Companion and 
expected outcomes;
    (3) Addresses the period of time of service; and
    (4) Is used to review the status of the Senior Companion's services 
identified in the assignment plan, as well as the impact of those 
services.
    (b)While serving in the capacity of a volunteer leader, a Senior 
Companion

[[Page 791]]

may be paid a stipend (at the same rate as the established Senior 
Companion stipend) for his or her additional hours served as a volunteer 
leader.
    (c) Senior Companion leaders, through recognition, may receive an 
additional monetary incentive.

[83 FR 64647, Dec. 17, 2018]



                        Subpart H_Clients Served



Sec.  2551.81  What type of clients are eligible to be served?

    Senior Companions serve only adults, primarily older adults, who 
have one or more physical, emotional, or mental health limitations and 
are in need of assistance to achieve and maintain their highest level of 
independent living.



              Subpart I_Application and Fiscal Requirements



Sec.  2551.91  What is the process for application and award of a grant?

    (a) How and when may an eligible organization apply for a grant? (1) 
An eligible organization may file an application in response to CNCS' 
published request, such as a Notice of Funding Opportunity or a Notice 
of Funding Availability. Applicants are not assured of selection or 
approval and may have to compete with other applicants.
    (2) The applicant shall comply with the provisions of Executive 
Order 12372, ``Intergovernmental Review of Federal Programs,'' (3 CFR, 
1982 Comp., p. 197) in 45 CFR part 1233 and any other applicable 
requirements.
    (b) Who reviews the merits of an application and how is a grant 
awarded? (1) CNCS reviews and determines the merit of an application by 
its responsiveness to published guidelines and to the overall purposes 
and objectives of the program. When funds are available, CNCS awards a 
grant in writing to each applicant whose grant proposal provides the 
best potential for serving the purpose of the program.
    (2) The award will be documented by the Notice of Grant Award (NGA). 
CNCS and the sponsoring organization are the parties to the NGA. The NGA 
will document the sponsor's commitment to fulfill specific programmatic 
objectives and financial obligations. It will document the extent of 
CNCS' obligation to provide financial support to the sponsor.
    (c) What happens if CNCS rejects an application? CNCS will notify 
the applicant if the applicant is not approved for funding, along with 
an explanation of CNCS' decision.
    (d) For what period of time does CNCS award a grant? CNCS awards a 
Senior Companion grant for a specified period that is usually three 
years in duration.

[83 FR 64647, Dec. 17, 2018]



Sec.  2551.92  What are project funding requirements?

    (a) Is non-CNCS support required? A CNCS grant may be awarded to 
fund up to 90 percent of the cost of development and operation of a 
Senior Companion project. The sponsor is required to contribute at least 
10 percent of the total project cost from non-Federal sources or 
authorized Federal sources.
    (b) Under what circumstances does CNCS allow less than the 10 
percent non-CNCS support? CNCS may allow exceptions to the 10 percent 
local support requirement in cases of demonstrated need such as:
    (1) Initial difficulties in the development of local funding sources 
during the first three years of operations; or
    (2) An economic downturn, the occurrence of a natural disaster, or 
similar events in the service area that severely restrict or reduce 
sources of local funding support; or
    (3) The unexpected discontinuation of local support from one or more 
sources that a project has relied on for a period of years.
    (c) May CNCS restrict how a sponsor uses locally generated 
contributions in excess of the 10 percent non-CNCS support required? 
Whenever locally generated contributions to Senior Companion projects 
are in excess of the minimum 10 percent non-CNCS support required, CNCS 
may not restrict the manner in which such contributions are expended 
provided such expenditures are consistent with the provisions of the 
Act.
    (d) Are program expenditures subject to audit? All expenditures by 
the grantee

[[Page 792]]

of Federal and non-Federal funds, including expenditures from excess 
locally generated contributions in support of the grant, are subject to 
audit by CNCS, its Inspector General, or their authorized agents.
    (e) May a sponsor pay stipends at rates different than those 
established by CNCS? No, a sponsor shall pay stipends at rates 
established by CNCS.

[64 FR 14115, Mar. 24, 1999, as amended at 75 FR 51415, Aug. 20, 2010; 
83 FR 64647, Dec. 17, 2018]



Sec.  2551.93  What are a sponsor's legal requirements in managing grants?

    What rules govern a sponsor's management of grants?
    (a) A sponsor shall manage a grant in accordance with:
    (1) The Act;
    (2) Regulations in this part;
    (3) 2 CFR part 200 and 2 CFR part 2205;
    (4) All applicable CNCS policies; and
    (5) All other applicable CNCS requirements.
    (b) Project support provided under a CNCS grant shall be furnished 
at the lowest possible cost consistent with the effective operation of 
the project.
    (c) Volunteer expense items, including transportation, meals, 
recognition activities and items purchased at the volunteers' own 
expense and which are not reimbursed, are not allowable as contributions 
to the non-Federal share of the budget.
    (d) Costs to bring a sponsor into basic compliance with 
accessibility requirements for individuals with disabilities are not 
allowable costs.
    (e) Payments to settle discrimination complaints, either through a 
settlement agreement or formal adjudication, are not allowable costs.
    (f) Written CNCS approval is required for the following changes in 
the approved grant:
    (1) Reduction in budgeted volunteer service years.
    (2) Change in the service area.

[79 FR 76077, Dec. 19, 2014, as amended at 83 FR 64648, Dec. 17, 2018]



                Subpart J_Non-Stipended Senior Companions



Sec.  2551.101  What rule governs the recruitment and enrollment of persons 
who do not meet the income eligibility guidelines to serve 
as Senior Companions?

    Over-income persons as described in Sec.  2551.43, age 55 or over, 
may be enrolled in SCP project as non-stipended volunteers.

[83 FR 64648, Dec. 17, 2018]



Sec.  2551.102  What are the conditions of service of non-stipended 
Senior Companions?

    Non-stipended Senior Companions serve under the following 
conditions:
    (a) They must not displace or prevent eligible low-income 
individuals from becoming Senior Companions.
    (b) No special privilege or status is granted or created among 
Senior Companions, whether stipended or non-stipended, and equal 
treatment is required.
    (c) Training, supervision, and other support services and cost 
reimbursements, other than the stipend, are available equally to all 
Senior Companions.
    (d) All regulations and requirements applicable to the program apply 
to Senior Companions.
    (e) Non-stipended Senior Companions may contribute the costs they 
incur in connection with their participation in the program. An SCP 
project may not count such contributions as part of the required non-
CNCS support (match) for the grant.

[64 FR 14115, Mar. 24, 1999, as amended at 83 FR 64648, Dec. 17, 2018]



Sec.  2551.103  Must a sponsor be required to enroll non-stipended 
Senior Companions?

    No. Enrollment of non-stipended Senior Companions is not a condition 
for a sponsor to receive a new or continuation grant.

[83 FR 64648, Dec. 17, 2018]

[[Page 793]]



Sec.  2551.104  [Reserved]



           Subpart K_Non-CNCS Funded Senior Companion Projects



Sec.  2551.111  Under what conditions may an agency or organization sponsor 
a Senior Companion project without CNCS funding?

    An eligible agency or organization who wishes to sponsor a Senior 
Companion project without CNCS funding must make an application through 
the designated grants management system which is approved by CNCS and 
documented through the Notice of Grant Agreement (NGA).

[83 FR 64648, Dec. 17, 2018]



Sec.  2551.112  What are the resources and benefits to which 
a non-CNCS funded project is entitled?

    The Notice of Grant Award entitles the sponsor of a Non-CNCS funded 
project to:
    (a) All technical assistance and materials provided to CNCS funded 
Senior Companion projects; and
    (b) The application of the provisions of 42 U.S.C. 5044 and 5058.

[64 FR 14115, Mar. 24, 1999, as amended at 83 FR 64648, Dec. 17, 2018]



Sec.  2551.113  What financial obligation does CNCS incur 
for non-CNCS funded projects?

    Issuance of an NGA to a sponsor of a non-CNCS funded project does 
not create a financial obligation on the part of CNCS for any costs 
associated with the project.

[83 FR 64648, Dec. 17, 2018]



Sec.  2551.114  What happens if a non-CNCS funded sponsor does not 
comply with the NGA?

    A non-CNCS funded project sponsor's noncompliance with the NGA may 
result in suspension or termination CNCS' agreement and all benefits 
specified in Sec.  2551.112.

[83 FR 64648, Dec. 17, 2018]



             Subpart L_Restrictions and Legal Representation



Sec.  2551.121  What legal limitations apply to the operation of 
the Senior Companion Program and to the expenditure of grant funds?

    (a) Political activities. (1) No part of any grant shall be used to 
finance, directly or indirectly, any activity to influence the outcome 
of any election to public office, or any voter registration activity.
    (2) No project shall be conducted in a manner involving the use of 
funds, the provision of services, or the employment or assignment of 
personnel in a matter supporting or resulting in the identification of 
such project with:
    (i) Any partisan or nonpartisan political activity associated with a 
candidate, or contending faction or group, in an election; or
    (ii) Any activity to provide voters or prospective voters with 
transportation to the polls or similar assistance in connection with any 
such election; or
    (iii) Any voter registration activity, except that voter 
registration applications and nonpartisan voter registration information 
may be made available to the public at the premises of the sponsor. But 
in making registration applications and nonpartisan voter registration 
information available, employees of the sponsor shall not express 
preferences or seek to influence decisions concerning any candidate, 
political party, election issue, or voting decision.
    (3) The sponsor shall not use grant funds in any activity for the 
purpose of influencing the passage or defeat of legislation or proposals 
by initiative petition, except:
    (i) In any case in which a legislative body, a committee of a 
legislative body, or a member of a legislative body requests any 
volunteer in, or employee of such a program to draft, review or testify 
regarding measures or to make representation to such legislative body, 
committee or member; or
    (ii) In connection with an authorization or appropriations measure 
directly affecting the operation of the Senior Companion Program.

[[Page 794]]

    (b) Non-displacement of employed workers. A Senior Companion shall 
not perform any service or duty or engage in any activity which would 
otherwise be performed by an employed worker or which would supplant the 
hiring of or result in the displacement of employed workers, or impair 
existing contracts for service.
    (c) Compensation for service. (1) An agency or organization to which 
NSSC volunteers are assigned or which operates or supervises any NSSC 
program shall not request or receive any compensation from NSSC 
volunteers or from beneficiaries for services of NSSC volunteers.
    (2) This section does not prohibit a sponsor from soliciting and 
accepting voluntary contributions from the community at large to meet 
its local support obligations under the grant or from entering into 
agreements with parties other than beneficiaries to support additional 
volunteers beyond those supported by CNCS.
    (3) A Senior Companion volunteer station may contribute to the 
financial support of the Senior Companion Program. However, this support 
shall not be a required precondition for a potential station to obtain 
Senior Companion service.
    (4) If a volunteer station agrees to provide funds to support 
additional Senior Companions or pay for other Senior Companion support 
costs, the agreement shall be stated in a written Memorandum of 
Understanding. The sponsor shall withdraw services if the station's 
inability to provide monetary or in-kind support to the project under 
the Memorandum of Understanding diminishes or jeopardizes the project's 
financial capabilities to fulfill its obligations.
    (5) Under no circumstances shall a Senior Companion receive a fee 
for service from service recipients, their legal guardian, members of 
their family, or friends.
    (d) Labor and anti-labor activity. The sponsor shall not use grant 
funds directly or indirectly to finance labor or anti-labor organization 
or related activity.
    (e) Fair labor standards. A sponsor that employs laborers and 
mechanics for construction, alteration, or repair of facilities shall 
pay wages at prevailing rates as determined by the Secretary of Labor in 
accordance with the Davis-Bacon Act, as amended, 40 U.S.C. 276a.
    (f) Nondiscrimination. A sponsor or sponsor employee shall not 
discriminate against a Senior Companion on the basis of race, color, 
national origin, sex, age, religion, or political affiliation, or on the 
basis of disability, if the Senior Companion with a disability is 
qualified to serve.
    (g) Religious activities. (1) A Senior Companion or a member of the 
project staff funded by CNCS shall not give religious instruction, 
conduct worship services, or engage in any form of proselytization as 
part of his/her duties.
    (2) A sponsor or volunteer station may retain its independence and 
may continue to carry out its mission, including the definition, 
development, practice, and expression of its religious beliefs, provided 
that it does not use CNCS funds to support any inherently religious 
activities, such as worship, religious instruction, or proselytization, 
as part of the programs or services funded. If an organization conducts 
such activities, the activities must be offered separately, in time or 
location, from the programs or services funded under this part.
    (h) Nepotism. Persons selected for project staff positions shall not 
be related by blood or marriage to other project staff, sponsor staff or 
officers, or members of the sponsor Board of Directors, unless there is 
written concurrence from the Advisory Council or community group 
established by the sponsor under subpart B of this part, and with 
notification to CNCS.

[64 FR 14115, Mar. 24, 1999, as amended at 69 FR 60095, Oct. 7, 2004; 83 
FR 64648, Dec. 17, 2018]



Sec.  2551.122  What legal coverage does CNCS make available 
to Senior Companions?

    It is within CNCS's discretion to determine if Counsel is employed 
and counsel fees, court costs, bail and other expenses incidental to the 
defense of a SCP volunteer are paid in a criminal, civil or 
administrative proceeding, when such a proceeding arises directly out of 
performance of the volunteer's

[[Page 795]]

activities. The circumstances under which CNCS may pay such expenses are 
specified in 45 CFR part 1220.

[83 FR 64649, Dec. 17, 2018]




PART 2552_FOSTER GRANDPARENT PROGRAM--Table of Contents



                            Subpart A_General

Sec.
2552.11 What is the Foster Grandparent Program?
2552.12 Definitions.

         Subpart B_Eligibility and Responsibilities of a Sponsor

2552.21 Who is eligible to serve as a sponsor?
2552.22 What are the responsibilities of a sponsor?
2552.23 What are a sponsor's project responsibilities?
2552.24 What are a sponsor's responsibilities for securing community 
          participation?
2552.25 What are a sponsor's administrative responsibilities?
2552.26-2552.33 [Reserved]

     Subpart C_Suspension and Termination of Corporation Assistance

2552.34 What are the rules on suspension, termination, and denial of 
          refunding of grants? (eff. until 11-22-07)

 Subpart D_Foster Grandparent Eligibility, Status, Cost Reimbursements 
                              and Benefits

2552.41 Who is eligible to be a Foster Grandparent?
2552.42 What types of criminal convictions or other adjudications 
          disqualify an individual from serving as a Foster Grandparent 
          or as a Foster Grandparent grant-funded employee?
2552.43 What income guidelines govern eligibility to serve as a 
          stipended Foster Grandparent?
2552.44 What is considered income for determining volunteer eligibility?
2552.45 Is a Foster Grandparent a federal employee, an employee of the 
          sponsor or of the volunteer station?
2552.46 What cost reimbursements and benefits do sponsors provide to 
          Foster Grandparents?
2552.47 May the cost reimbursements and benefits received by a Foster 
          Grandparent be subject to any tax or charge, be treated as 
          wages or compensation, or affect eligibility to receive 
          assistance from other programs?

              Subpart E_Foster Grandparent Terms of Service

2552.51 What are the terms of service of a Foster Grandparent?
2552.52 What factors are considered in determining a Foster 
          Grandparent's service schedule?
2552.53 Under what circumstances may a Foster Grandparent be removed 
          from service?

            Subpart F_Responsibilities of a Volunteer Station

2552.61 May a sponsor serve as a volunteer station?
2552.62 What are the responsibilities of a volunteer station?

         Subpart G_Foster Grandparent Placements and Assignments

2552.71 What requirements govern the assignment of Foster Grandparents?
2552.72 Is a written volunteer assignment plan required for each Foster 
          Grandparent?

                   Subpart H_Children and Youth Served

2552.81 Who is eligible to be served?
2552.82 Under what circumstances may a Foster Grandparent continue to 
          serve an individual beyond his or her 21st birthday?

              Subpart I_Application and Fiscal Requirements

2552.91 What is the process for application and award of a grant?
2552.92 What are project funding requirements?
2552.93 What are a sponsor's legal requirements in managing grants?

               Subpart J_Non-Stipended Foster Grandparents

2552.101 What rule governs the recruitment and enrollment of persons who 
          do not meet the income eligibility guidelines to serve as 
          Foster Grandparents?
2552.102 What are the conditions of service of non-stipended Foster 
          Grandparents?
2552.103 Must a sponsor be required to enroll non-stipended Foster 
          Grandparents?
2552.104 [Reserved]

          Subpart K_Non-CNCS Funded Foster Grandparent Projects

2552.111 Under what conditions may an agency or organization sponsor a 
          Foster Grandparent project without CNCS funding?

[[Page 796]]

2552.112 What are the resources and benefits to which a non-CNCS funded 
          project is entitled?
2552.113 What financial obligation does CNCS incur for non-CNCS funded 
          projects?
2552.114 What happens if a non-CNCS funded sponsor does not comply with 
          the NGA?

             Subpart L_Restrictions and Legal Representation

2552.121 What legal limitations apply to the operation of the Foster 
          Grandparent Program and to the expenditure of grant funds?
2552.122 What legal coverage does CNCS make available to Foster 
          Grandparents?

    Authority: 42 U.S.C. 4950 et seq.; 42 U.S.C. 12651b-12651d; E.O. 
13331, 69 FR 9911.

    Source: 64 FR 14126, Mar. 24, 1999, unless otherwise noted.



                            Subpart A_General



Sec.  2552.11  What is the Foster Grandparent Program?

    The Foster Grandparent Program provides grants to qualified agencies 
and organizations for the dual purpose of engaging persons 55 and older, 
particularly those with limited incomes, in volunteer service to meet 
critical community needs; and to provide a high quality experience that 
will enrich the lives of the volunteers. Program funds are used to 
support Foster Grandparents in providing supportive, person to person 
service to children with special and or exceptional needs, or in 
circumstances that limit their academic, social or emotional 
development.

[83 FR 64649, Dec. 17, 2018]



Sec.  2552.12  Definitions.

    Act. The Domestic Volunteer Service Act of 1973, as amended, Pub. L. 
93-113, Oct. 1, 1973, 87 Stat. 396, 42 U.S.C. 4950 et seq.
    Adequate staffing level. The number of project staff or full time 
equivalent needed by a sponsor to manage the National Senior Service 
Corps (NSSC) project operations considering such factors as: Number of 
budgeted Volunteer Service Years (VSYs), number of volunteer stations, 
and the size of the service area.
    Annual income. Total cash and in-kind receipts from all sources over 
the preceding 12 months including: the applicant or enrollee's income 
and, the applicant or enrollee's spouse's income, if the spouse lives in 
the same residence. The value of shelter, food, and clothing, shall be 
counted if provided at no cost by persons related to the applicant/
enrollee, or spouse.
    Chief Executive Officer. The Chief Executive Officer of CNCS 
appointed under the National and Community Service Act of 1990, as 
amended, (NCSA), 42 U.S.C. 12501 et seq.
    Child. Any individual who is less than 21 years of age.
    Children having exceptional needs. Children who have a developmental 
disability, such as those who have autism, intellectual disability, 
cerebral palsy or epilepsy, a visual impairment, speech impairment, 
hearing impairment, or orthopedic impairment, an emotional or behavioral 
disorder, a language disorder, a specific learning disability, multiple 
disabilities, other significant health impairments, or have literacy, 
math or other educational assistance needs. Before a Foster Grandparent 
is assigned to the child, existence of a child's exceptional need shall 
be verified by an appropriate professional, such as a physician, 
psychiatrist, psychologist, including school psychologists, registered 
nurse or licensed practical nurse, speech therapist, licensed clinical 
social worker, or educator.
    Children with special needs. Children who are abused or neglected; 
in need of foster care; adjudicated youth; homeless youths; teen-age 
parents; and children in need of protective intervention in their homes. 
Existence of a child's special need shall be verified by an appropriate 
professional before a Foster Grandparent is assigned to the child.
    CNCS. The Corporation for National and Community Service established 
under the NCSA, as amended, 42 U.S.C. 12501 et seq.
    Cost reimbursements. Reimbursements budgeted as Volunteer Expenses 
and provided to volunteers, including stipends to cover incidental 
costs, transportation, meals, recognition, supplemental accident, 
personal liability and excess automobile liability insurance,

[[Page 797]]

and other expenses as negotiated in the Memorandum of Understanding.
    In-home. The non-institutional assignment of a Foster Grandparent in 
a private residence or a foster home.
    Letter of Agreement. A written agreement between a volunteer station 
or sponsor, and person(s) served or the person legally responsible for 
that person. It authorizes the assignment of an FGP volunteer in the 
home of a client, defines FGP volunteer activities, and specifies 
supervision arrangements.
    Memorandum of Understanding. A written statement prepared and signed 
by the Foster Grandparent project sponsor and the volunteer station that 
identifies project requirements, working relationships and mutual 
responsibilities.
    National Senior Service Corps (NSSC). The collective name for the 
Senior Companion Program (SCP), the Foster Grandparent Program (FGP), 
the Retired and Senior Volunteer Program (RSVP), and Demonstration 
Programs, all of which are established under Parts A, B, C, and E, Title 
II of the Act. NSSC is also referred to as the ``Senior Corps''.
    Non-CNCS support (excess). The amount of non-Federal cash and in-
kind contributions generated by a sponsor in excess of the required 
percentage.
    Non-CNCS support (match). The percentage share of non-CNCS cash and 
in-kind contributions required to be raised by the sponsor in support of 
the grant.
    Non-Corporation support (excess). The amount of non-Federal cash and 
in-kind contributions generated by a sponsor in excess of the required 
percentage.
    Parent. A natural parent or a person acting in place of a natural 
parent, such as a guardian, a child's natural grandparent, or a step-
parent with whom the child lives. The term also includes otherwise 
unrelated individuals who are legally responsible for a child's welfare.
    Performance measures. Indicators that help determine the impact of 
an FGP project on the community and clients served, including the 
volunteers.
    Project. The locally planned FGP activity or set of activities in a 
service area as approved by CNCS and implemented by the sponsor.
    Proprietary Health Care Organizations. Private, for-profit health 
care organization that serves one or more vulnerable populations.
    Service area. The geographically defined area(s) in which Foster 
Grandparents are enrolled and placed on assignments.
    Service schedule. A written delineation of the days and times a 
Foster Grandparent serves each week.
    Sponsor. A public agency, including Indian tribes as defined in 
section 421(5) of the Act, and private, non-profit organizations, both 
secular and faith-based, in the United States that have authority to 
accept and the capability to administer a Foster Grandparent project.
    Stipend. A payment to Foster Grandparents to enable them to serve 
without cost to themselves. The amount of the stipend is set by CNCS in 
accordance with federal law.
    United States and Territories. Each of the several States, the 
District of Columbia, the U.S. Virgin Islands, the Commonwealth of 
Puerto Rico, Guam and American Samoa, the Commonwealth of the Northern 
Mariana Islands, and the Trust Territories of the Pacific Islands.
    Volunteer assignment plan. A written description of a Foster 
Grandparent's assignment with a child. The plan identifies specific 
outcomes for the child served and the activities of the Foster 
Grandparent.
    Volunteer station. A public agency; a private, non-profit 
organization, secular or faith-based; or a proprietary health care 
organization. A volunteer station must accept responsibility for the 
assignment and supervision of Foster Grandparents in health, education, 
social service or related settings such as multi-purpose centers, home 
health care agencies, or similar establishments. Each volunteer station 
must be licensed or otherwise certified, when required, by the 
appropriate state or local government. Private homes are not volunteer 
stations.

[64 FR 14126, Mar. 24, 1999, as amended at 69 FR 60095, Oct. 7, 2004; 83 
FR 64649, Dec. 17, 2018]

[[Page 798]]



         Subpart B_Eligibility and Responsibilities of a Sponsor



Sec.  2552.21  Who is eligible to serve as a sponsor?

    CNCS awards grants to public agencies, including Indian tribes as 
defined in section 421(5) of the Act, and private, non-profit 
organizations, both secular and faith-based, in the United States that 
have authority to accept and the capability to administer a Foster 
Grandparent project.

[83 FR 64650, Dec. 17, 2018]



Sec.  2552.22  What are the responsibilities of a sponsor?

    A sponsor is responsible for fulfilling all project management 
requirements necessary to accomplish the purposes of the Foster 
Grandparent Program as specified in the Act. A sponsor shall not 
delegate or contract these overall management responsibilities to 
another entity. CNCS retains the right to determine what types of 
management responsibilities may or may not be contracted.

[83 FR 64650, Dec. 17, 2018]



Sec.  2552.23  What are a sponsor's project responsibilities?

    A sponsor shall:
    (a) Focus Foster Grandparent resources, within the project's service 
area, on providing supportive services and companionship to children 
with special and exceptional needs, or in circumstances that limit their 
academic, social or emotional development.
    (b) In collaboration with other community organizations or by using 
existing assessments, assess the needs of the community or service area, 
and develop strategies to respond to identified needs using Foster 
Grandparents.
    (c) Develop and manage one or more volunteer stations by:
    (1) Ensuring that a volunteer station is a public or non-profit 
private organization, whether secular or faith-based, or an eligible 
proprietary health care agency, capable of serving as a volunteer 
station for the placement of Foster Grandparents;
    (2) Ensuring that the placement of Foster Grandparents will be 
governed by a Memorandum of Understanding:
    (i) That is negotiated prior to placement;
    (ii) That specifies the mutual responsibilities of the station and 
sponsor;
    (iii) That is renegotiated at least every three years;
    (iv) That states the station will not discriminate against FGP 
volunteers, service beneficiaries, or in the operation of its program on 
the basis of race, color, national origin including individuals with 
limited English proficiency, gender, age, religion, sexual orientation, 
disability, gender identity or expression, political affiliation, 
marital or parental status, or military service; and
    (3) Reviewing volunteer placements regularly to ensure that clients 
are eligible to be served.
    (d) Develop Foster Grandparent service opportunities to support 
locally-identified needs of eligible children in a way that considers 
the skills and experiences of Foster Grandparents.
    (e) Consider the demographic make-up of the project service area in 
the enrollment of Foster Grandparents, taking special efforts to recruit 
eligible individuals from minority groups, persons with disabilities, 
and under-represented groups.
    (f) Provide Foster Grandparents with assignments that show direct 
and demonstrable benefits to the children and the community served, the 
Foster Grandparents, and the volunteer station; with required cost 
reimbursements specified in Sec.  2552.46; with 20 hours of pre-service 
orientation and at least 24 hours annually of in-service training.
    (g) Encourage the most efficient and effective use of Foster 
Grandparents by coordinating project services and activities with 
related national, state and local programs, including other CNCS 
programs.
    (h) Conduct an annual appraisal of volunteers' performance and 
annual review of their income eligibility.
    (i) Establish written service policies for Foster Grandparents that 
include but are not limited to:
    (1) Annual and sick leave.
    (2) Holidays.
    (3) Service schedules.
    (4) Termination and appeal procedures.

[[Page 799]]

    (5) Meal and transportation reimbursements.
    (j) Conduct National Service Criminal History Checks in accordance 
with the requirements in 45 CFR 2540.200 through 2540.207.
    (k) Provide Foster Grandparent volunteers with cost reimbursements 
specified in this section.
    (l) Make every effort to meet such performance measures as 
established in the approved grant application.

[64 FR 14126, Mar. 24, 1999, as amended at 67 FR 61000, Sept. 27, 2002; 
69 FR 60095, Oct. 7, 2004; 74 FR 46508, Sept. 10, 2009; 77 FR 60934, 
Oct. 5, 2012; 83 FR 64650, Dec. 17, 2018]



Sec.  2552.24  What are a sponsor's responsibilities for securing 
community participation?

    (a) A sponsor shall secure community participation in local project 
operation by establishing an Advisory Council or a similar 
organizational structure with a membership that includes people:
    (1) Knowledgeable of human and social needs of the community;
    (2) With an interest in the field of community service and 
volunteerism;
    (3) Capable of helping the sponsor satisfy its administrative and 
program responsibilities including fund-raising, publicity and meeting 
or exceeding performance measures;
    (4) With an interest in, and knowledge of, the range of abilities of 
older adults; and
    (5) Of a diverse composition that reflects the demographics of the 
service area.
    (b) The sponsor determines how such participation shall be secured 
consistent with the provisions of paragraphs (a)(1) through (a)(5) of 
this section.

[64 FR 14126, Mar. 24, 1999, as amended at 83 FR 64650, Dec. 17, 2018]



Sec.  2552.25  What are a sponsor's administrative responsibilities?

    A sponsor shall:
    (a) Assume full responsibility for securing maximum and continuing 
community financial and in-kind support to operate the project 
successfully.
    (b) Provide levels of staffing and resources appropriate to 
accomplish the purposes of the project and carry out its project 
management responsibilities.
    (c) Employ a full-time project director to accomplish project 
objectives and manage the functions and activities delegate to project 
staff for Senior Corps project(s) within its control. The project 
director may participate in activities to coordinate project resources 
with those of related local agencies, boards or organizations. A full-
time project director shall not serve concurrently in another capacity, 
paid or unpaid, during established working hours. A sponsor may 
negotiate the employment of a part-time project director with CNCS when 
the sponsor can demonstrate that such an arrangement will not adversely 
affect the size, scope or quality of project operations.
    (d) Consider all project staff as sponsor employees subject to its 
personnel policies and procedures.
    (e) Compensate project staff at a level that is comparable to 
similar staff positions in the sponsor organization and/or project 
service area, as is practicable.
    (f) Establish risk management policies and procedures covering 
Foster Grandparent project activities. This includes provision of 
appropriate insurance coverage for Foster Grandparents, which includes; 
accident insurance, personal liability insurance, and excess automobile 
liability insurance.
    (g) Establish record keeping and reporting systems in compliance 
with CNCS requirements that ensure quality of program and fiscal 
operations, facilitate timely and accurate submission of required 
reports and cooperate with CNCS evaluation and data collection efforts.
    (h) Comply with, and ensure that all volunteer stations comply with, 
all applicable civil rights laws and regulations, including non-
discrimination based on disability.

[64 FR 14126, Mar. 24, 1999, as amended at 83 FR 64650, Dec. 17, 2018]

[[Page 800]]



Sec.  2552.26-2552.33  [Reserved]



     Subpart C_Suspension and Termination of Corporation Assistance



Sec.  2552.34  What are the rules on suspension, termination, and denial 
of refunding of grants?

    (a) The Chief Executive Officer or designee is authorized to suspend 
further payments or to terminate payments under any grant providing 
assistance under the Act whenever he/she determines there is a material 
failure to comply with applicable terms and conditions of the grant. The 
Chief Executive Officer shall prescribe procedures to ensure that:
    (1) Assistance under the Act shall not be suspended for failure to 
comply with applicable terms and conditions, except in emergency 
situations for thirty days;
    (2) An application for refunding under the Act may not be denied 
unless the recipient has been given:
    (i) Notice at least 75 days before the denial of such application of 
the possibility of such denial and the grounds for any such denial; and
    (ii) Opportunity to show cause why such action should not be taken;
    (3) In any case where an application for refunding is denied for 
failure to comply with the terms and conditions of the grant, the 
recipient shall be afforded an opportunity for an informal hearing 
before an impartial hearing officer, who has been agreed to by the 
recipient and CNCS; and
    (4) Assistance under the Act shall not be terminated for failure to 
comply with applicable terms and conditions unless the recipient has 
been afforded reasonable notice and opportunity for a full and fair 
hearing.
    (b) Hearings or other meetings as may be necessary to fulfill the 
requirements of this section should, to the extent practicable, be held 
in locations convenient to the grant recipient.
    (c) The procedures for suspension, termination, and denial of 
refunding, that apply to the Foster Grandparent Program are specified in 
45 CFR part 1206.

[64 FR 14126, Mar. 24, 1999. Redesignated at 72 FR 48584, Aug. 24, 2007; 
83 FR 64650, Dec. 17, 2018]



 Subpart D_Foster Grandparent Eligibility, Status, Cost Reimbursements 
                              and Benefits



Sec.  2552.41  Who is eligible to be a Foster Grandparent?

    (a) To be a Foster Grandparent an individual must:
    (1) Be 55 years of age or older; and
    (2) In order to receive a stipend, have an income that is within the 
income eligibility guidelines specified in this subpart.
    (b) Eligibility to serve as a Foster Grandparent shall not be 
restricted on the basis of formal education, experience, race, color, 
national origin including limited English proficiency, gender, age, 
religion, sexual orientation, disability, gender identity or expression, 
political affiliation, marital or parental status, or military service.

[64 FR 14126, Mar. 24, 1999, as amended at 74 FR 46509, Sept. 10, 2009; 
83 FR 64651, Dec. 17, 2018]



Sec.  2552.42  What types of criminal convictions or other adjudications 
disqualify an individual from serving as a Foster Grandparent 
or as a Foster Grandparent grant-funded employee?

    Any individual who is registered, or who is required to be 
registered, on a State sex offender registry, or who has been convicted 
of murder, as defined under Federal law in section 1111 of title 18, 
United States Code, is deemed unsuitable for, and may not serve in, a 
position as a Foster Grandparent or as a Foster Grandparent grant-funded 
employee.

[74 FR 46509, Sept. 10, 2009]



Sec.  2552.43  What income guidelines govern eligibility to serve 
as a stipended Foster Grandparent?

    (a) To receive a stipend, a Foster Grandparent may not have an 
annual income from all sources, after deducting allowable medical 
expenses, which

[[Page 801]]

exceeds the program's income eligibility guideline for the State in 
which he or she resides. The income eligibility guideline for each State 
is 200 percent of the poverty line, as set forth in 42 U.S.C. 9902 (2).
    (b) For applicants to become stipended Foster Grandparents, annual 
income is projected for the following 12 months, based on income at the 
time of application. For serving stipended Foster Grandparents, annual 
income is counted for the past 12 months. Annual income includes the 
applicant or enrollee's income and that of his/her spouse, if the spouse 
lives in the same residence.
    (c) Allowable medical expenses are annual out-of-pocket medical 
expenses for health insurance premiums, health care services, and 
medications provided to the applicant, enrollee, or spouse which were 
not and will not be paid by Medicare, Medicaid, other insurance, or 
other third party pay or, and which do not exceed 50 percent of the 
applicable income guideline.
    (d) Applicants whose income is not more than 100 percent of the 
poverty line shall be given special consideration for enrollment.
    (e) Once enrolled, a Foster Grandparent shall remain eligible to 
serve and to receive a stipend so long as his or her income, does not 
exceed the applicable income eligibility guideline by 20 percent.

[64 FR 14126, Mar. 24, 1999, as amended at 67 FR 61000, Sept. 27, 2002; 
69 FR 19775, Apr. 14, 2004. Redesignated at 72 FR 48585, Aug. 24, 2007; 
74 FR 46509, Sept. 10, 2009; 83 FR 64651, Dec. 17, 2018]



Sec.  2552.44  What is considered income for determining volunteer eligibility?

    (a) For determining eligibility, ``income'' refers to total cash and 
in-kind receipts before taxes from all sources including:
    (1) Money, wages, and salaries before any deduction;
    (2) Receipts from self-employment or from a farm or business after 
deductions for business or farm expenses;
    (3) Social Security, Unemployment or Workers Compensation, strike 
benefits, training stipends, alimony, and military family allotments, or 
other regular support from an absent family member or someone not living 
in the household;
    (4) Government employee pensions, private pensions, regular 
insurance or annuity payments, and 401(k) or other retirement savings 
plans;
    (5) Income from dividends, interest, net rents, royalties, or income 
from estates and trusts.
    (b) For eligibility purposes, income does not refer to the following 
money receipts:
    (1) Any assets drawn down as withdrawals from a bank, sale of 
property, house or car, tax refunds, gifts, one-time insurance payments 
or compensation from injury.
    (2) Non-cash income, such as the bonus value of food and fuel 
produced and consumed on farms and the imputed value of rent from owner-
occupied farm or non-farm housing.
    (3) Regular payments for public assistance including the 
Supplemental Nutrition Assistance Program (SNAP).
    (4) Social Security Disability or any type of disability payment.
    (5) Food or rent received in lieu of wages.

[64 FR 14126, Mar. 24, 1999. Redesignated at 72 FR 48585, Aug. 24, 2007; 
83 FR 64651, Dec. 17, 2018]



Sec.  2552.45  Is a Foster Grandparent a federal employee, an employee 
of the sponsor or of the volunteer station?

    Foster Grandparents are volunteers, and are not employees of the 
sponsor, the volunteer station, CNCS or the Federal Government.

[83 FR 64651, Dec. 17, 2018]



Sec.  2552.46  What cost reimbursements and benefits do sponsors provide 
to Foster Grandparents?

    Cost reimbursements and benefits include:
    (a) Stipend. The stipend is paid for the time Foster Grandparents 
spend with their assigned children, for earned leave, and for attendance 
at official project events.
    (b) Insurance. A Foster Grandparent is provided with the CNCS 
specified minimum levels of insurance as follows:

[[Page 802]]

    (1) Accident insurance. Accident insurance covers Foster 
Grandparents for personal injury during travel between their homes and 
places of assignment, during their service, during meal periods while 
serving as a Foster Grandparent, and while attending project-sponsored 
activities. Protection shall be provided against claims in excess of any 
benefits or services for medical care or treatment available to the 
Foster Grandparent from other sources.
    (2) Personal liability insurance. Protection is provided against 
claims in excess of protection provided by other insurance. Such 
protection does not include professional liability coverage.
    (3) Excess automobile liability insurance. (i) For Foster 
Grandparents who drive in connection with their service, protection is 
provided against claims in excess of the greater of either:
    (A) Liability insurance Foster Grandparents carry on their own 
automobiles; or
    (B) The limits of applicable state financial responsibility law, or 
in its absence, levels of protection to be determined by CNCS for each 
person, each accident, and for property damage.
    (ii) Foster Grandparents who drive their personal vehicles to, or 
on, assignments or project-related activities, shall maintain personal 
automobile liability insurance equal to or exceeding the levels 
established by CNCS.
    (c) Transportation. Foster Grandparents shall receive assistance 
with the cost of transportation to and from, assignments and official 
project activities, including orientation, training, and recognition 
events.
    (d) Meals. Foster Grandparents may be provided assistance with the 
cost of meals taken while on assignment, within limits of the project's 
available resources.
    (e) Recognition. Foster Grandparent volunteers shall be provided 
recognition for their service.
    (f) Physical examination. Foster Grandparents may be provided a 
physical examination or assistance with the cost of a physical 
examination prior to assignment and annually thereafter.
    (g) Other volunteer expenses. Foster Grandparents may also be 
reimbursed for allowable out-of-pocket expenses incurred while 
performing their assignments.

[64 FR 14126, Mar. 24, 1999, as amended at 69 FR 19775, Apr. 14, 2004; 
69 FR 56718, Sept. 22, 2004. Redesignated at 72 FR 48585, Aug. 24, 2007; 
83 FR 64651, Dec. 17, 2018]



Sec.  2552.47  May the cost reimbursements and benefits received 
by a Foster Grandparent be subject to any tax or charge, be treated 
as wages or compensation, or affect eligibility to receive assistance 
from other programs?

    No. Foster Grandparent's cost reimbursements and benefits are not 
subject to any tax or charge or treated as wages or compensation for the 
purposes of unemployment insurance, worker's compensation, temporary 
disability, retirement, public assistance, or similar benefit payments 
or minimum wage laws. Cost reimbursements and benefits are not subject 
to garnishment and do not reduce or eliminate the level of, or 
eligibility for, assistance or services a Foster Grandparent may be 
receiving under any governmental program.

[83 FR 64651, Dec. 17, 2018]



              Subpart E_Foster Grandparent Terms of Service



Sec.  2552.51  What are the terms of service of a Foster Grandparent?

    A Foster Grandparent shall serve a minimum of 260 hours annually, or 
a minimum of 5 hours per week. A Foster Grandparent may serve a maximum 
of 2080 hours annually, or a maximum of 40 hours per week. Within these 
limitations, a sponsor may set service policies consistent with local 
needs.

[83 FR 64652, Dec. 17, 2018]



Sec.  2552.52  What factors are considered in determining 
a Foster Grandparent's service schedule?

    (a) Travel time between the Foster Grandparent's home and place of 
assignment is not part of the service schedule and is not stipended.
    (b) Travel time between individual assignments is a part of the 
service schedule and is stipended.

[[Page 803]]

    (c) Meal time may be part of the service schedule and is stipended.

[64 FR 14126, Mar. 24, 1999, as amended at 83 FR 64652, Dec. 17, 2018]



Sec.  2552.53  Under what circumstances may a Foster Grandparent 
be removed from service?

    (a) A sponsor may remove a Foster Grandparent from service for 
cause. Grounds for removal include, but are not limited to: Extensive 
and unauthorized absences; misconduct; failure to perform assignments or 
failure to accept supervision. A Foster Grandparent may also be removed 
from stipended service for having income in excess of the eligibility 
level. A Foster Grandparent shall be removed immediately if ineligible 
to serve based on criminal history check results.
    (b) The sponsor shall establish appropriate policies on removal from 
service, as well as procedures for appeal.

[83 FR 64652, Dec. 17, 2018]



            Subpart F_Responsibilities of a Volunteer Station



Sec.  2552.61  May a sponsor serve as a volunteer station?

    Yes. A sponsor may serve as a volunteer station, if the activities 
are part of a work plan in the approved project application.

[83 FR 64652, Dec. 17, 2018]



Sec.  2552.62  What are the responsibilities of a volunteer station?

    A volunteer station shall undertake the following responsibilities 
in support of Foster Grandparent volunteers:
    (a) Develop volunteer assignments that meet the requirements 
specified in Sec. Sec.  2552.71 through 2552.72 and regularly assess 
those assignments for continued appropriateness.
    (b) Select eligible children for assigned volunteers.
    (c) Develop a written volunteer assignment plan for each Foster 
Grandparent that identifies their roles and activities, each child 
served, and expected outcomes.
    (d) Keep a Letter of Agreement for each child who receives in-home 
service.
    (e) Provide Foster Grandparents serving the station with:
    (1) Orientation to the station and any in-service training necessary 
to enhance performance of assignments; and
    (2) Resources required for performance of assignments, including 
reasonable accommodation, as needed, to enable Foster Grandparents with 
disabilities to perform the essential functions of their service; and
    (f) Designate a staff member to oversee fulfillment of station 
responsibilities and supervision of Foster Grandparents while on 
assignment.
    (g) Keep records and prepare reports required by the sponsor.
    (h) Provide for the safety of Foster Grandparents assigned to it.
    (i) Comply with all applicable civil rights laws and regulations, 
including providing Foster Grandparents with disabilities reasonable 
accommodation, to perform the essential functions of their service.
    (j) Undertake such other responsibilities as may be necessary for 
the successful performance of Foster Grandparents in their assignments 
or as agreed to in the Memorandum of Understanding.

[64 FR 14126, Mar. 24, 1999, as amended at 83 FR 64652, Dec. 17, 2018]



         Subpart G_Foster Grandparent Placements and Assignments



Sec.  2552.71  What requirements govern the assignment of Foster Grandparents?

    Foster Grandparent assignments shall:
    (a) Provide for Foster Grandparents to give direct services to one 
or more eligible children.
    (b) Result in person-to-person supportive relationships with each 
child served. Foster Grandparent volunteers cannot be assigned to roles 
such as teacher's aides, group leaders or other similar positions that 
would detract from the person-to-person relationship.
    (c) Support the development and growth of each child served.
    (d) Be meaningful to the Foster Grandparent.

[[Page 804]]

    (e) Be supported by appropriate orientation, training and 
supervision.

[64 FR 14126, Mar. 24, 1999, as amended at 83 FR 64652, Dec. 17, 2018]



Sec.  2552.72  Is a written volunteer assignment plan required 
for each Foster Grandparent?

    (a) All Foster Grandparents shall receive a written volunteer 
assignment plan developed by the volunteer station that:
    (1) Is approved by the sponsor and accepted by the Foster 
Grandparent;
    (2) Identifies the individual child(ren) to be served;
    (3) Identifies the role and activities of the Foster Grandparent and 
expected outcomes for the child;
    (4) Addresses the period of time each child should receive such 
services; and
    (5) Is used to review the impact of the assignment on the 
child(ren).
    (b) [Reserved]

[64 FR 14126, Mar. 24, 1999, as amended at 83 FR 64652, Dec. 17, 2018]



                   Subpart H_Children and Youth Served



Sec.  2552.81  Who is eligible to be served?

    Foster Grandparents serve only children and youth with special and 
exceptional needs, or in circumstances that limit their academic, 
social, or emotional development, who are less than 21 years of age.

[74 FR 46509, Sept. 10, 2009, as amended at 83 FR 64652, Dec. 17, 2018]



Sec.  2552.82  Under what circumstances may a Foster Grandparent continue 
to serve an individual beyond his or her 21st birthday?

    (a) Only when a Foster Grandparent has been assigned to, and has 
developed a relationship with an individual with a disability, may that 
assignment continue beyond the individual's 21st birthday, provided 
that:
    (1) Such individual was receiving such services prior to attaining 
the chronological age of 21, and the continuation of service is in the 
best interest of the individual; and
    (2) The sponsor determines that it is in the best interest of both 
the Foster Grandparent and the individual for the assignment to 
continue. Such a determination will be made through mutual agreement by 
all parties involved in the provision of services to the individual 
served.
    (b) In cases where the assigned Foster Grandparent becomes 
unavailable to serve a particular individual, the replacement of that 
Foster Grandparent shall be made through mutual agreement by all parties 
involved.
    (c) The sponsor may terminate service to a child with a disability 
over age 21, if it determines that such service is no longer in the best 
interest of either the Foster Grandparent or the individual served.

[64 FR 14126, Mar. 24, 1999, as amended at 74 FR 46509, Sept. 10, 2009; 
74 FR 48866, Sept. 25, 2009; 83 FR 64652, Dec. 17, 2018]



              Subpart I_Application and Fiscal Requirements



Sec.  2552.91  What is the process for application and award of a grant?

    (a) How and when may an eligible organization apply for a grant? (1) 
An eligible organization may file an application in response to CNCS' 
published request, such as a Notice of Funding Opportunity or a Notice 
of Funding Availability. Applicants are not assured of selection or 
approval and may have to compete with other applicants.
    (2) The applicant shall comply with the provisions of Executive 
Order 12372, ``Intergovernmental Review of Federal Programs,'' (3 CFR, 
1982 Comp., p. 197) in 45 CFR part 1233 and any other applicable 
requirements.
    (b) Who reviews the merits of an application and how is a grant 
awarded? (1) CNCS reviews and determines the merit of an application by 
its responsiveness to published guidelines and to the overall purposes 
and objectives of the program. When funds are available, CNCS awards a 
grant in writing to each applicant whose grant proposal provides the 
best potential for serving the purpose of the program.
    (2) The award will be documented by the Notice of Grant Award (NGA). 
CNCS and the sponsoring organization are the parties to the NGA. The NGA 
will document the sponsor's commitment to fulfill specific programmatic 
objectives and financial obligations. It

[[Page 805]]

will document the extent of CNCS' obligation to provide financial 
support to the sponsor.
    (c) What happens if CNCS rejects an application? CNCS will return an 
application that is not approved for funding to the applicant with an 
explanation of CNCS' decision.
    (d) For what period of time does CNCS award a grant? CNCS awards a 
Foster Grandparent grant for a specified period that is usually three 
years in duration.

[83 FR 64652, Dec. 17, 2018]



Sec.  2552.92  What are project funding requirements?

    (a) Is non-CNCS support required? A CNCS grant may be awarded to 
fund up to 90 percent of the cost of development and operation of a 
Foster Grandparent project. The sponsor is required to contribute at 
least 10 percent of the total project cost from non-Federal sources or 
authorized Federal sources.
    (b) Under what circumstances does CNCS allow less than the 10 
percent non-CNCS support? CNCS may allow exceptions to the 10 percent 
local support requirement in cases of demonstrated need such as:
    (1) Initial difficulties in the development of local funding sources 
during the first three years of operations; or
    (2) An economic downturn, the occurrence of a natural disaster, or 
similar events in the service area that severely restrict or reduce 
sources of local funding support; or
    (3) The unexpected discontinuation of local support from one or more 
sources that a project has relied on for a period of years.
    (c) May CNCS restrict how a sponsor uses locally generated 
contributions in excess of the 10 percent non-CNCS support required? 
Whenever locally generated contributions to Foster Grandparent projects 
are in excess of the minimum 10 percent non-CNCS support required, CNCS 
may not restrict the manner in which such contributions are expended 
provided such expenditures are consistent with the provisions of the 
Act.
    (d) Are program expenditures subject to audit? All expenditures by 
the grantee of Federal and non-Federal funds, including expenditures 
from excess locally generated contributions in support of the grant are 
subject to audit by CNCS, its Inspector General, or their authorized 
agents.
    (e) May a sponsor pay stipends at rates different than those 
established by CNCS? No, a sponsor shall pay stipends at rates 
established by CNCS.

[64 FR 14126, Mar. 24, 1999, as amended at 75 FR 51415, Aug. 20, 2010; 
83 FR 64652, Dec. 17, 2018]



Sec.  2552.93  What are a sponsor's legal requirements in managing grants?

    What rules govern a sponsor's management of grants?
    (a) A sponsor shall manage a grant in accordance with:
    (1) The Act;
    (2) Regulations in this part;
    (3) 2 CFR part 200 and 2 CFR part 2205;
    (4) All applicable CNCS policies; and
    (5) All other applicable CNCS requirements.
    (b) Project support provided under a CNCS grant shall be furnished 
at the lowest possible cost consistent with the effective operation of 
the project.
    (c) Volunteer expense items, including transportation, meals, 
recognition activities and items purchased at the volunteers' own 
expense and which are not reimbursed, are not allowable as contributions 
to the non-Federal share of the budget.
    (d) Costs to bring a sponsor into basic compliance with 
accessibility requirements for individuals with disabilities are not 
allowable costs.
    (e) Payments to settle discrimination complaints, either through a 
settlement agreement or formal adjudication, are not allowable costs.
    (f) Written CNCS approval is required for the following changes in 
the approved grant:
    (1) Reduction in budgeted volunteer service years.
    (2) Change in the service area.

[79 FR 76077, Dec. 19, 2014, as amended at 83 FR 64653, Dec. 17, 2018]

[[Page 806]]



               Subpart J_Non-Stipended Foster Grandparents



Sec.  2552.101  What rule governs the recruitment and enrollment of persons 
who do not meet the income eligibility guidelines to serve 
as Foster Grandparents?

    Over-income persons as described in Sec.  2552.43, age 55 or over, 
may be enrolled in FGP project as non-stipended volunteers.

[83 FR 64653, Dec. 17, 2018]



Sec.  2552.102  What are the conditions of service of non-stipended 
Foster Grandparents?

    Non-stipended Foster Grandparents serve under the following 
conditions:
    (a) They must not displace or prevent eligible low-income 
individuals from becoming Foster Grandparents.
    (b) No special privilege or status is granted or created among 
Foster Grandparents, whether stipended or non-stipended, and equal 
treatment is required.
    (c) Training, supervision, and other support services and cost 
reimbursements, other than the stipend, are available equally to all 
Foster Grandparents.
    (d) All regulations and requirements applicable to the program apply 
to all Foster Grandparents.
    (e) Non-stipended Foster Grandparents may contribute the costs they 
incur in connection with their participation in the program. An FGP 
project may not count such contributions as part of the required non-
CNCS support (match) for the grant.

[64 FR 14126, Mar. 24, 1999, as amended at 83 FR 64653, Dec. 17, 2018]



Sec.  2552.103  Must a sponsor be required to enroll non-stipended 
Foster Grandparents?

    No. Enrollment of non-stipended Foster Grandparents is not a 
condition for a sponsor to receive a new or continuation grant.

[83 FR 64653, Dec. 17, 2018]



Sec.  2552.104  [Reserved]



          Subpart K_Non-CNCS Funded Foster Grandparent Projects



Sec.  2552.111  Under what conditions may an agency or organization sponsor 
a Foster Grandparent project without CNCS funding?

    An eligible agency or organization who wishes to sponsor a Foster 
Grandparent project without CNCS funding must make an application 
through the designated grants management system which is approved by 
CNCS and documented through the Notice of Grant Agreement (NGA).

[83 FR 64653, Dec. 17, 2018]



Sec.  2552.112  What are the resources and benefits to which 
a non-CNCS funded project is entitled?

    The Notice of Grant Award entitles the sponsor of a Non-CNCS funded 
project to:
    (a) All technical assistance and materials provided to CNCS funded 
Foster Grandparent projects; and
    (b) The application of the provisions of 42 U.S.C. 5044 and 5058.

[64 FR 14126, Mar. 24, 1999, as amended at 83 FR 64653, Dec. 17, 2018]



Sec.  2552.113  What financial obligation does CNCS incur 
for non-CNCS funded projects?

    Issuance of an NGA to a sponsor of a non-CNCS funded project does 
not create a financial obligation on the part of CNCS for any costs 
associated with the project.

[83 FR 64653, Dec. 17, 2018]



Sec.  2552.114  What happens if a non-CNCS funded sponsor does not comply 
with the NGA?

    A non-CNCS funded project sponsor's noncompliance with the NGA may 
result in suspension or termination CNCS' agreement and all benefits 
specified in Sec.  2552.112.

[83 FR 64653, Dec. 17, 2018]

[[Page 807]]



             Subpart L_Restrictions and Legal Representation



Sec.  2552.121  What legal limitations apply to the operation of 
the Foster Grandparent Program and to the expenditure of grant funds?

    (a) Political activities. (1) No part of any grant shall be used to 
finance, directly or indirectly, any activity to influence the outcome 
of any election to public office, or any voter registration activity.
    (2) No project shall be conducted in a manner involving the use of 
funds, the provision of services, or the employment or assignment of 
personnel in a matter supporting or resulting in the identification of 
such project with:
    (i) Any partisan or nonpartisan political activity associated with a 
candidate, or contending faction or group, in an election; or
    (ii) Any activity to provide voters or prospective voters with 
transportation to the polls or similar assistance in connection with any 
such election; or
    (iii) Any voter registration activity, except that voter 
registration applications and nonpartisan voter registration information 
may be made available to the public at the premises of the sponsor. But 
in making registration applications and nonpartisan voter registration 
information available, employees of the sponsor shall not express 
preferences or seek to influence decisions concerning any candidate, 
political party, election issue, or voting decision.
    (3) The sponsor shall not use grant funds in any activity for the 
purpose of influencing the passage or defeat of legislation or proposals 
by initiative petition, except:
    (i) In any case in which a legislative body, a committee of a 
legislative body, or a member of a legislative body requests any 
volunteer in, or employee of such a program to draft, review or testify 
regarding measures or to make representation to such legislative body, 
committee or member; or
    (ii) In connection with an authorization or appropriations measure 
directly affecting the operation of the FGP.
    (b) Non-displacement of employed workers. A Foster Grandparent shall 
not perform any service or duty or engage in any activity which would 
otherwise be performed by an employed worker or which would supplant the 
hiring of or result in the displacement of employed workers, or impair 
existing contracts for service.
    (c) Compensation for service. (1) An agency or organization to which 
NSSC volunteers are assigned, or which operates or supervises any NSSC 
program shall not request or receive any compensation from NSSC 
volunteers or from beneficiaries for services of NSSC volunteers.
    (2) This section does not prohibit a sponsor from soliciting and 
accepting voluntary contributions from the community at large to meet 
its local support obligations under the grant or from entering into 
agreements with parties other than beneficiaries to support additional 
volunteers beyond those supported by CNCS.
    (3) A Foster Grandparent volunteer station may contribute to the 
financial support of the FGP. However, this support shall not be a 
required precondition for a potential station to obtain Foster 
Grandparent service.
    (4) If a volunteer station agrees to provide funds to support 
additional Foster Grandparents or pay for other Foster Grandparent 
support costs, the agreement shall be stated in a written Memorandum of 
Understanding. The sponsor shall withdraw services if the station's 
inability to provide monetary or in-kind support to the project under 
the Memorandum of Understanding diminishes or jeopardizes the project's 
financial capabilities to fulfill its obligations.
    (5) Under no circumstances shall a Foster Grandparent receive a fee 
for service from service recipients, their legal guardian, members of 
their family, or friends.
    (d) Labor and anti-labor activity. The sponsor shall not use grant 
funds directly or indirectly to finance labor or anti-labor organization 
or related activity.
    (e) Fair labor standards. A sponsor that employs laborers and 
mechanics for construction, alteration, or repair of facilities shall 
pay wages at prevailing rates as determined by the Secretary of Labor in 
accordance with the

[[Page 808]]

Davis-Bacon Act, as amended, 40 U.S.C. 276a.
    (f) Nondiscrimination. A sponsor or sponsor employee shall not 
discriminate against a Foster Grandparent on the basis of race, color, 
national origin, sex, age, religion, or political affiliation, or on the 
basis of disability, if the Foster Grandparent with a disability is 
qualified to serve.
    (g) Religious activities. (1) A Foster Grandparent or a member of 
the project staff funded by CNCS shall not give religious instruction, 
conduct worship services or engage in any form of proselytization as 
part of his/her duties.
    (2) A sponsor or volunteer station may retain its independence and 
may continue to carry out its mission, including the definition, 
development, practice, and expression of its religious beliefs, provided 
that it does not use CNCS funds to support any inherently religious 
activities, such as worship, religious instruction, or proselytization, 
as part of the programs or services funded. If an organization conducts 
such activities, the activities must be offered separately, in time or 
location, from the programs or services funded under this part.
    (h) Nepotism. Persons selected for project staff positions shall not 
be related by blood or marriage to other project staff, sponsor staff or 
officers, or members of the sponsor Board of Directors, unless there is 
written concurrence from the Advisory Council or community group 
established by the sponsor under subpart B of this part, and with 
notification to CNCS.

[64 FR 14126, Mar. 24, 1999, as amended at 69 FR 60095, Oct. 7, 2004; 83 
FR 64653, Dec. 17, 2018]



Sec.  2552.122  What legal coverage does CNCS make available 
to Foster Grandparents?

    It is within CNCS' discretion to determine if Counsel is employed 
and counsel fees, court costs, bail and other expenses incidental to the 
defense of a FGP volunteer are paid in a criminal, civil or 
administrative proceeding, when such a proceeding arises directly out of 
performance of the volunteer's activities. The circumstances under which 
CNCS may pay such expenses are specified in 45 CFR part 1220.

[83 FR 64654, Dec. 17, 2018]



PART 2553_THE RETIRED AND SENIOR VOLUNTEER PROGRAM--Table of Contents



                            Subpart A_General

Sec.
2553.11 What is the Retired and Senior Volunteer Program?
2553.12 Definitions.

         Subpart B_Eligibility and Responsibilities of a Sponsor

2553.21 Who is eligible to serve as a sponsor?
2553.22 What are the responsibilities of a sponsor?
2553.23 What are a sponsor's project responsibilities?
2553.24 What are a sponsor's responsibilities for securing community 
          participation?
2553.25 What are a sponsor's administrative responsibilities?
2553.26 [Reserved]

        Subpart C_Suspension, Termination and Denial of Refunding

2553.31 What are the rules on suspension, termination and denial of 
          refunding of grants?

  Subpart D_Eligibility, Cost Reimbursements and Volunteer Assignments

2553.41 Who is eligible to be an RSVP volunteer?
2553.42 Is an RSVP volunteer a federal employee, an employee of the 
          sponsor or of the volunteer station?
2553.43 What cost reimbursements and benefits may sponsors provide to 
          RSVP volunteers?
2553.44 May cost reimbursements received by RSVP volunteers be subject 
          to any tax or charge, treated as wages or compensation, or 
          affect eligibility to receive assistance from other programs?

                  Subpart E_Volunteer Terms of Service

2553.51 What are the terms of service of an RSVP volunteer?
2553.52 Under what circumstances may a sponsor remove an RSVP volunteer 
          from service?

            Subpart F_Responsibilities of a Volunteer Station

2553.61 When may a sponsor serve as a volunteer station?

[[Page 809]]

2553.62 What are the responsibilities of a volunteer station?

              Subpart G_Application and Fiscal Requirements

2553.71 What is the process for application and award of a grant?
2553.72 What are project funding requirements?
2553.73 What are a sponsor's legal requirements in managing grants?

                   Subpart H_Non-CNCS Funded Projects

2553.81 Under what conditions may an agency or organization sponsor an 
          RSVP project without CNCS funding?
2553.82 What are the resources and benefits to which a non-CNCS funded 
          project is entitled?
2553.83 What financial obligation does CNCS incur for non-CNCS funded 
          projects?
2553.84 What happens if a non-CNCS funded sponsor does not comply with 
          the NGA?

             Subpart I_Restrictions and Legal Representation

2553.91 What legal limitations apply to the operation of the RSVP 
          volunteer Program and to the expenditure of grant funds?
2553.92 What legal coverage does CNCS make available to RSVP volunteers?

                     Subpart J_Performance Measures

2553.101 What is the purpose of performance measurement?
2553.102 What performance measurement information must be part of an 
          application for funding under RSVP?
2553.103 Who develops the performance measures?
2553.104 What performance measures must be submitted to CNCS and how are 
          these submitted?
2553.105 How are performance measures approved and documented?
2553.106 How does a sponsor report performance measures to CNCS?
2553.107 What must a sponsor do if it cannot meet its performance 
          measures?
2553.108 What happens if a sponsor fails to meet the target performance 
          measures included in the approved grant application?

    Authority: 42 U.S.C. 4950 et seq.

    Source: 64 FR 14135, Mar. 24, 1999, unless otherwise noted.



                            Subpart A_General



Sec.  2553.11  What is the Retired and Senior Volunteer Program?

    The Retired and Senior Volunteer Program (RSVP) provides grants to 
qualified agencies and organizations for the dual purpose of: engaging 
persons 55 and older in volunteer service to meet critical community 
needs; and to provide a high quality experience that will enrich the 
lives of volunteers.



Sec.  2553.12  Definitions.

    Act. The Domestic Volunteer Service Act of 1973, as amended, Pub. L. 
93-113, Oct. 1, 1973, 87 Stat. 396, 42 U.S.C. 4950 et seq.
    Adequate staffing level. The number of project staff or full time 
equivalent needed by a sponsor to manage the National Senior Service 
Corps (NSSC) project operations considering such factors as: Number of 
budgeted volunteers, number of volunteer stations, and the size of the 
service area.
    Assignment. The activities, functions or responsibilities to be 
performed by volunteers identified in a written outline or description.
    Assignment description. The written description of the activities, 
functions or responsibilities to be performed by RSVP volunteers.
    Chief Executive Officer. The Chief Executive Officer of CNCS 
appointed under the National and Community Service Act of 1990, as 
amended, (NCSA), 42 U.S.C. 12501 et seq.
    CNCS. The Corporation for National and Community Service established 
under the NCSA.
    Cost reimbursements. Reimbursements budgeted as Volunteer Expenses 
and provided to volunteers, including stipends to cover incidental 
costs, transportation, meals, recognition, supplemental accident, 
personal liability and excess automobile liability insurance, and other 
expenses as negotiated in the Memorandum of Understanding.
    Letter of Agreement. A written agreement between a volunteer station 
or sponsor, and person(s) served or the person legally responsible for 
that person. It authorizes the assignment of an RSVP volunteer in the 
home of a client, defines RSVP volunteer activities,

[[Page 810]]

and specifies supervision arrangements.
    Memorandum of Understanding. A written statement prepared and signed 
by the RSVP project sponsor and the volunteer station that identifies 
project requirements, working relationships and mutual responsibilities.
    National Senior Service Corps (NSSC). The collective name for the 
Senior Companion Program (SCP), Foster Grandparent Program (FGP), and 
the Retired and Senior Volunteer Program (RSVP), and Demonstration 
Programs, all of which are established under Parts A, B, C, and E, Title 
II of the Act. NSSC is also referred to as the ``Senior Corps.''
    Non-CNCS support (excess). The amount of non-CNCS cash and in-kind 
contributions generated by a sponsor in excess of the required 
percentage.
    Non-CNCS support (match). The percentage share of non-CNCS cash and 
in-kind contributions required to be raised by the sponsor in support of 
the grant.
    Performance measures. Indicators intended to that help determine the 
impact of an RSVP project on the community, including the volunteers.
    Project. The locally planned RSVP activity or set of activities in a 
service area as approved by CNCS and implemented by the sponsor.
    Proprietary Health Care Organizations. Private, for-profit health 
care organization that serves one or more vulnerable populations.
    Service area. The geographically defined area(s) approved in the 
grant application, in which RSVP volunteers are enrolled and placed on 
assignments.
    Sponsor. A public agency, including Indian tribes as defined in 
section 421(5) of the Act, and private, non-profit organizations, both 
secular and faith-based, in the United States that have authority to 
accept and the capability to administer an RSVP project.
    United States and Territories. Each of the several States, the 
District of Columbia, the U.S. Virgin Islands, the Commonwealth of 
Puerto Rico, Guam and American Samoa, the Commonwealth of the Northern 
Mariana Islands, and the Trust Territories of the Pacific Islands.
    Volunteer station. A public agency; a private, non-profit 
organization, secular or faith-based; or a proprietary health care 
organization. A volunteer station must accept responsibility for the 
assignment and supervision of RSVP volunteers in health, education, 
social service or related settings such as multi-purpose centers, home 
health care agencies, or similar establishments. Each volunteer station 
must be licensed or otherwise certified, when required, by the 
appropriate state or local government. Private homes are not volunteer 
stations.

[64 FR 14135, Mar. 24, 1999, as amended at 69 FR 60095, Oct. 7, 2004; 76 
FR 20246, Apr. 12, 2011; 83 FR 64654, Dec. 17, 2018]



         Subpart B_Eligibility and Responsibilities of a Sponsor



Sec.  2553.21  Who is eligible to serve as a sponsor?

    CNCS awards grants to public agencies, including Indian tribes as 
defined in section 421(5) of the Act, and private, non-profit 
organizations, both secular and faith-based, in the United States that 
have authority to accept and the capability to administer an RSVP 
project.

[83 FR 64654, Dec. 17, 2018]



Sec.  2553.22  What are the responsibilities of a sponsor?

    A sponsor is responsible for fulfilling all project management 
requirements necessary to accomplish the purposes of the RSVP project as 
specified in the Act. A sponsor shall not delegate or contract these 
overall management responsibilities to another entity. CNCS retains the 
right to determine what types of management responsibilities may or may 
not be contracted.

[83 FR 64655, Dec. 17, 2018]



Sec.  2553.23  What are a sponsor's project responsibilities?

    A sponsor shall:
    (a) Focus RSVP resources to have a positive impact on critical human 
and social needs within the project service area.
    (b) In collaboration with other community organizations or by using 
existing assessments, assess the needs of the

[[Page 811]]

community or service area, and develop strategies to respond to 
identified needs using RSVP volunteers.
    (c) Develop and manage one or more volunteer stations to provide a 
wide range of placement opportunities that appeal to persons age 55 and 
over by:
    (1) Ensuring that a volunteer station is a public or non-profit 
private organization, whether secular or faith-based, or an eligible 
proprietary health care agency, capable of serving as a volunteer 
station for the placement of RSVP volunteers to meet locally identified 
needs;
    (2) Ensuring the placement of RSVP volunteers is governed by a 
Memorandum of Understanding:
    (i) That is negotiated prior to placement;
    (ii) That specifies the mutual responsibilities of the station and 
sponsor;
    (iii) That is renegotiated at least every three years;
    (iv) That states the station will not discriminate against RSVP 
volunteers, service beneficiaries, or in the operation of its program on 
the basis of race, color, national origin including individuals with 
limited English proficiency, gender, age, religion, sexual orientation, 
disability, gender identity or expression, political affiliation, 
marital or parental status, or military service; and
    (v) That states the station will provide for the safety of the RSVP 
volunteers assigned to the station.
    (d) Consider the demographic make-up of the project service area in 
the enrollment of RSVP volunteers, taking special efforts to recruit 
eligible individuals from minority groups, persons with disabilities and 
under represented groups.
    (e) Encourage the most efficient and effective use of RSVP 
volunteers by coordinating project services and activities with related 
national, state and local programs, including other CNCS programs.
    (f) Provide RSVP volunteers with cost reimbursements specified in 
Sec.  2553.43.
    (g) Make every effort to meet such performance measures as 
established in the approved grant application.

[64 FR 14135, Mar. 24, 1999, as amended at 67 FR 6875, Feb. 14, 2002; 69 
FR 60095, Oct. 7, 2004; 76 FR 20246, Apr. 12, 2011; 83 FR 64655, Dec. 
17, 2018]



Sec.  2553.24  What are a sponsor's responsibilities for securing 
community participation?

    (a) A sponsor shall secure community participation in local project 
operation by establishing an Advisory Council or a similar 
organizational structure with a membership that includes people:
    (1) Knowledgeable about human and social needs of the community;
    (2) With an interest in the field of community service and 
volunteerism;
    (3) Capable of helping the sponsor satisfy its administrative and 
program responsibilities including fund-raising, publicity and meeting 
or exceeding performance measures;
    (4) With an interest in, and knowledge of, the range of abilities of 
older adults; and
    (5) Of a diverse composition that reflects the demographics of the 
service area.
    (b) The sponsor determines how this participation shall be secured, 
consistent with the provisions of paragraphs (a)(1) through (a)(5) of 
this section.

[64 FR 14135, Mar. 24, 1999, as amended at 83 FR 64655, Dec. 17, 2018]



Sec.  2553.25  What are a sponsor's administrative responsibilities?

    A sponsor shall:
    (a) Assume full responsibility for securing maximum and continuing 
community financial and in-kind support to operate the project 
successfully.
    (b) Provide levels of staffing and resources appropriate to 
accomplish the purposes of the project and carry out its project 
management responsibilities.
    (c) Employ a full-time project director to accomplish project 
objectives and manage the functions and activities delegate to project 
staff for Senior Corps project(s) within its control. The project 
director may participate in activities to coordinate project resources 
with those of related local agencies,

[[Page 812]]

boards or organizations. A full-time project director shall not serve 
concurrently in another capacity, paid or unpaid, during established 
working hours. A sponsor may negotiate the employment of a part-time 
project director with CNCS when the sponsor can demonstrate that such an 
arrangement will not adversely affect the size, scope or quality of 
project operations.
    (d) Consider all project staff as sponsor employees subject to its 
personnel policies and procedures.
    (e) Compensate project staff at a level that is comparable to 
similar staff positions in the sponsor organization and/or project 
service area, as is practicable.
    (f) Establish risk management policies and procedures covering RSVP 
project activities. This includes provision of appropriate insurance 
coverage for RSVP volunteers, which includes; accident insurance, 
personal liability insurance, and excess automobile liability insurance.
    (g) Establish record keeping and reporting systems in compliance 
with CNCS requirements that ensure quality of program and fiscal 
operations, facilitate timely and accurate submission of required 
reports and cooperate with CNCS evaluation and data collection efforts.
    (h) Comply with, and ensure that all volunteer stations comply with, 
all applicable civil rights laws and regulations, including non-
discrimination based on disability.
    (i) Conduct National Service Criminal History Checks in accordance 
with the requirements in 45 CFR 2540.200 through 2540.207.

[64 FR 14135, Mar. 24, 1999, as amended at 74 FR 46509, Sept. 10, 2009; 
83 FR 64655, Dec. 17, 2018]



Sec.  2553.26  [Reserved]



        Subpart C_Suspension, Termination and Denial of Refunding



Sec.  2553.31  What are the rules on suspension, termination and denial 
of refunding of grants?

    (a) The Chief Executive Officer or designee is authorized to suspend 
further payments or to terminate payments under any grant providing 
assistance under the Act whenever he or she determines there is a 
material failure to comply with applicable terms and conditions of the 
grant. The Chief Executive Officer shall prescribe procedures to insure 
that:
    (1) Assistance under the Act shall not be suspended for failure to 
comply with applicable terms and conditions, except in emergency 
situations for thirty days;
    (2) An application for refunding under the Act may not be denied 
unless the recipient has been given:
    (i) Notice at least 75 days before the denial of such application of 
the possibility of such denial and the grounds for any such denial; and
    (ii) Opportunity to show cause why such action should not be taken;
    (3) In any case where an application for refunding is denied for 
failure to comply with the terms and conditions of the grant, the 
recipient shall be afforded an opportunity for an informal hearing 
before an impartial hearing officer, who has been agreed to by the 
recipient and CNCS; and
    (4) Assistance under the Act shall not be terminated for failure to 
comply with applicable terms and conditions unless the recipient has 
been afforded reasonable notice and opportunity for a full and fair 
hearing.
    (b) Hearings or other meetings as may be necessary to fulfill the 
requirements of this section should, to the extent practicable, be held 
in locations convenient to the grant recipient.
    (c) The procedures for suspension, termination, and denial of 
refunding, that apply to the RSVP program are specified in 45 CFR part 
1206.

[64 FR 14135, Mar. 24, 1999, as amended at 76 FR 20246, Apr. 12, 2011; 
83 FR 64655, Dec. 17, 2018]



  Subpart D_Eligibility, Cost Reimbursements and Volunteer Assignments



Sec.  2553.41  Who is eligible to be an RSVP volunteer?

    (a) To be an RSVP volunteer, an individual must:
    (1) Be 55 years of age or older;
    (2) Agree to serve without compensation; and

[[Page 813]]

    (3) Reside in or nearby the community served by RSVP.
    (b) Eligibility to serve as an RSVP volunteer shall not be 
restricted on the basis of formal education, experience, race, color, 
national origin including limited English proficiency, gender, age, 
religion, sexual orientation, disability, gender identity or expression, 
political affiliation, marital or parental status, or military service.

[64 FR 14135, Mar. 24, 1999, as amended at 83 FR 64655, Dec. 17, 2018]



Sec.  2553.42  Is an RSVP volunteer a federal employee, an employee 
of the sponsor or of the volunteer station?

    RSVP volunteers are not employees of the sponsor, the volunteer 
station, CNCS or the Federal Government.

[83 FR 64655, Dec. 17, 2018]



Sec.  2553.43  What cost reimbursements and benefits may sponsors provide 
to RSVP volunteers?

    (a) RSVP volunteers may be provided the following cost 
reimbursements within the limits of the project's available resources:
    (1) Transportation. RSVP volunteers may receive assistance with the 
cost of transportation to and from volunteer assignments and official 
project activities, including orientation, training, and recognition 
events.
    (2) Meals. RSVP volunteers may receive assistance with the cost of 
meals taken while on assignment.
    (3) Other volunteer expenses. RSVP volunteers may also be reimbursed 
for allowable out-of-pocket expenses incurred while performing their 
assignments.
    (b) RSVP volunteers must be provided the following cost 
reimbursements:
    (1) Recognition. RSVP volunteers shall be provided recognition for 
their service.
    (2) Insurance. An RSVP volunteer is provided with the CNCS-specified 
minimum levels of insurance as follows:
    (i) Accident insurance. Accident insurance covers RSVP volunteers 
for personal injury during travel between their homes and places of 
assignment, during volunteer service, during meal periods while serving 
as a volunteer, and while attending project sponsored activities. 
Protection shall be provided against claims in excess of any benefits or 
services for medical care or treatment available to the volunteer from 
other sources.
    (ii) Personal liability insurance. Protection is provided against 
claims in excess of protection provided by other insurance. It does not 
include professional liability coverage.
    (iii) Excess automobile insurance. (A) RSVP drivers who drive in 
connection with their service shall be provided protection against 
claims in excess of the greater of either:
    (1) Liability insurance the volunteers carry on their own 
automobiles; or
    (2) The limits of applicable state financial responsibility law, or 
in its absence, levels of protection to be determined by CNCS for each 
person, each accident, and for property damage.
    (B) RSVP volunteers who drive their personal vehicles to or on 
assignments or project-related activities shall maintain personal 
automobile liability insurance equal to or exceeding the levels 
established by CNCS.

[83 FR 64655, Dec. 17, 2018]



Sec.  2553.44  May cost reimbursements received by RSVP volunteers 
be subject to any tax or charge, treated as wages or compensation, 
or affect eligibility to receive assistance from other programs?

    No. An RSVP volunteer's cost reimbursements are not subject to any 
tax or charge, and are not treated as wages or compensation for the 
purposes of unemployment insurance, workers' compensation, temporary 
disability, retirement, public assistance or similar benefit payments or 
minimum wage laws. Cost reimbursements are not subject to garnishment, 
and do not reduce or eliminate the level of, or eligibility for, 
assistance or services that a volunteer may be receiving under any 
governmental program.

[83 FR 64656, Dec. 17, 2018]

[[Page 814]]



                  Subpart E_Volunteer Terms of Service



Sec.  2553.51  What are the terms of service of an RSVP volunteer?

    An RSVP volunteer shall serve on a regular basis, or intensively on 
short-term assignments, consistent with the assignment description.

[83 FR 64656, Dec. 17, 2018]



Sec.  2553.52  Under what circumstances may a sponsor remove 
an RSVP volunteer from service?

    (a) A sponsor may remove an RSVP volunteer from service for cause. 
Grounds for removal include, but are not limited to: Extensive and 
unauthorized absences; misconduct; failure to perform assignments and or 
failure to accept supervision.
    (b) The sponsor shall establish appropriate policies on removal from 
service as well as procedures for appeal.

[83 FR 64656, Dec. 17, 2018]



            Subpart F_Responsibilities of a Volunteer Station



Sec.  2553.61  When may a sponsor serve as a volunteer station?

    The sponsor and RSVP project itself may function as a volunteer 
station or may initiate special volunteer activities provided that CNCS 
agrees these activities are in accord with program objectives and will 
not hinder overall project operations.

[83 FR 64656, Dec. 17, 2018]



Sec.  2553.62  What are the responsibilities of a volunteer station?

    A volunteer station shall undertake the following responsibilities 
in support of RSVP volunteers:
    (a) Develop volunteer assignments that impact critical human and 
social needs, and regularly assess those assignments for continued 
appropriateness;
    (b) Assign staff member responsible for day to day oversight of RSVP 
volunteers within the volunteer station and for assessing the impact of 
volunteers in addressing community needs;
    (c) Keep a Letter of Agreement for each client who receives in-home 
service;
    (d) Keep records and prepare reports as required;
    (e) Comply with all applicable civil rights requirements including 
providing RSVP volunteers with disabilities reasonable accommodation to 
perform the essential functions of their service;
    (f) Provide assigned RSVP volunteers the following support:
    (1) Orientation to station and appropriate in-service training to 
enhance performance of assignments;
    (2) Resources required for performance of assignments including 
reasonable accommodation to RSVP volunteers with disabilities to perform 
the essential functions of their service; and
    (3) Supervision.
    (g) Undertake such other responsibilities as may be necessary to the 
successful performance of RSVP volunteers in their assignments or as 
agreed to in the Memorandum of Understanding.

[64 FR 14135, Mar. 24, 1999, as amended at 83 FR 64656, Dec. 17, 2018]



              Subpart G_Application and Fiscal Requirements



Sec.  2553.71  What is the process for application and award of a grant?

    As funds become available, CNCS solicits application for RSVP grants 
from eligible organizations through a competitive process.
    (a) What are the application requirements for an RSVP grant? An 
applicant must:
    (1) Submit required information determined by CNCS.
    (2) Demonstrate compliance with any applicable requirements 
specified in the Notice of Funding Availability or Notice of Funding 
Opportunity.
    (b) What process does the Corporation use to select new RSVP 
grantees? (1) CNCS reviews and determines the merits of an application 
by its responsiveness to published guidelines and to the overall purpose 
and objectives of the program. In conducting its review during the 
competitive process, CNCS considers the input and opinions of those

[[Page 815]]

serving on a peer review panel, including members with expertise in 
senior service and aging, and may conduct site inspections, as 
appropriate.
    (2) The selection process includes:
    (i) Determining whether an application complies with the application 
requirements, such as deadlines, eligibility, and programmatic 
requirements, including performance measurement requirements;
    (ii) Applying published selection criteria, as stated in the 
applicable Notice of Funding Availability or Notice of Funding 
Opportunity, to assess the quality of the application;
    (iii) Applying any applicable priorities or preferences, as stated 
in the applicable Notice of Funding Availability or Notice of Funding 
Opportunity;
    (iv) Ensuring innovation and geographic, demographic, and 
programmatic diversity across CNCS RSVP grantee portfolio; and
    (v) Identifying the applications that most completely respond to the 
published guidelines and offer the highest probability of successfully 
carrying out the overall purpose and objectives of the program.
    (c) How is a grant awarded? (1) Subject to the availability of 
funds, the award will be documented by a Notice of Grant Award (NGA).
    (2) CNCS and the sponsoring organization are parties to the NGA. The 
NGA will document the sponsor's commitment to fulfill specific 
programmatic objectives and financial obligations. It will document the 
extent of CNCS' obligation to provide assistance to the sponsor.
    (d) What happens if CNCS rejects an application? CNCS will inform an 
applicant when an application is not approved for funding.
    (e) For what period of time does CNCS award a grant? CNCS awards an 
RSVP grant for a specified period that is usually three years in 
duration with an option for a grant renewal of three years, if the 
grantee's performance and compliance with grant terms and conditions are 
satisfactory. CNCS will terminate funding to a grantee when CNCS 
determines that the grant should not be renewed for an additional three 
year period.

[76 FR 20246, Apr. 12, 2011, as amended at 83 FR 64656, Dec. 17, 2018]



Sec.  2553.72  What are project funding requirements?

    (a) Is non-CNCS support required? (1) A CNCS grant may be awarded to 
fund up to 90 percent of the total project cost in the first year, 80 
percent in the second year, and 70 percent in the third and succeeding 
years.
    (2) A sponsor is responsible for identifying non-CNCS funds which 
may include in-kind contributions.
    (b) Under what circumstances does CNCS allow less than the 
percentage identified in paragraph (a) of this section? CNCS may allow 
exceptions to the local support requirement identified in paragraph (a) 
of this section in cases of demonstrated need such as:
    (1) Initial difficulties in the development of local funding sources 
during the first three years of operations; or
    (2) An economic downturn, the occurrence of a natural disaster, or 
similar events in the service area that severely restrict or reduce 
sources of local funding support; or
    (3) The unexpected discontinuation of local support from one or more 
sources that a project has relied on for a period of years.
    (c) May CNCS restrict how a sponsor uses locally generated 
contributions in excess of the non-CNCS support required? Whenever 
locally generated contributions to RSVP projects are in excess of the 
non-CNCS funds required (10 percent of the total cost in the first year, 
20 percent in the second year and 30 percent in the third and succeeding 
years), CNCS may not restrict the manner in which such contributions are 
expended provided such expenditures are consistent with the provisions 
of the Act.
    (d) Are program expenditures subject to audit? All expenditures by 
the grantee of Federal and Non-Federal funds, including expenditures 
from excess locally generated contributions, are subject to audit by 
CNCS, its Inspector General or their authorized agents.

[64 FR 14135, Mar. 24, 1999, as amended at 67 FR 6875, Feb. 14, 2002; 83 
FR 64657, Dec. 17, 2018]

[[Page 816]]



Sec.  2553.73  What are a sponsor's legal requirements in managing grants?

    What rules govern a sponsor's management of grants?
    (a) A sponsor shall manage a grant in accordance with:
    (1) The Act;
    (2) Regulations in this part;
    (3) 2 CFR part 200 and 2 CFR part 2205;
    (4) All applicable CNCS policies; and
    (5) All other applicable CNCS requirements.
    (b) Project support provided under a CNCS grant shall be furnished 
at the lowest possible cost consistent with the effective operation of 
the project.
    (c) Volunteer expense items, including transportation, meals, 
recognition activities and items purchased at the volunteers' own 
expense and which are not reimbursed, are not allowable as contributions 
to the non-Federal share of the budget.
    (d) Costs to bring a sponsor into basic compliance with 
accessibility requirements for individuals with disabilities are not 
allowable costs.
    (e) Payments to settle discrimination complaints, either through a 
settlement agreement or formal adjudication, are not allowable costs.
    (f) Written CNCS approval/concurrence is required for a change in 
the approved service area.

[79 FR 76078, Dec. 19, 2014, as amended at 83 FR 64657, Dec. 17, 2018]



                   Subpart H_Non-CNCS Funded Projects



Sec.  2553.81  Under what conditions may an agency or organization sponsor 
an RSVP project without CNCS funding?

    An eligible agency or organization who wishes to sponsor an RSVP 
project without CNCS funding must make an application through the 
designated grants management system which is approved by CNCS and 
documented through the Notice of Grant Agreement (NGA).

[83 FR 64657, Dec. 17, 2018]



Sec.  2553.82  What are the resources and benefits to which 
a non-CNCS funded project is entitled?

    (a) All technical assistance and materials provided to CNCS funded 
RSVP volunteer projects; and
    (b) The application of the provisions of 42 U.S.C. 5044 and 5058.

[64 FR 14135, Mar. 24, 1999, as amended at 83 FR 64657, Dec. 17, 2018]



Sec.  2553.83  What financial obligation does CNCS incur 
for non-CNCS funded projects?

    Issuance of an NGA to a sponsor of a non-CNCS funded project does 
not create a financial obligation on the part of CNCS for any costs 
associated with the project.

[83 FR 64657, Dec. 17, 2018]



Sec.  2553.84  What happens if a non-CNCS funded sponsor does not comply 
with the NGA?

    A non-CNCS funded project sponsor's noncompliance with the NGA may 
result in suspension or termination CNCS' agreement and all benefits 
specified in Sec.  2553.82.

[83 FR 64657, Dec. 17, 2018]



             Subpart I_Restrictions and Legal Representation



Sec.  2553.91  What legal limitations apply to the operation of the RSVP 
volunteer Program and to the expenditure of grant funds?

    (a) Political activities. (1) No part of any grant shall be used to 
finance, directly or indirectly, any activity to influence the outcome 
of any election to public office, or any voter registration activity.
    (2) No project shall be conducted in a manner involving the use of 
funds, the provision of services, or the employment or assignment of 
personnel in a matter supporting or resulting in the identification of 
such project with:
    (i) Any partisan or nonpartisan political activity associated with a 
candidate, or contending faction or group, in an election; or
    (ii) Any activity to provide voters or prospective voters with 
transportation to the polls or similar assistance in connection with any 
such election; or

[[Page 817]]

    (iii) Any voter registration activity, except that voter 
registration applications and nonpartisan voter registration information 
may be made available to the public at the premises of the sponsor. But 
in making registration applications and nonpartisan voter registration 
information available, employees of the sponsor shall not express 
preferences or seek to influence decisions concerning any candidate, 
political party, election issue, or voting decision.
    (3) The sponsor shall not use grant funds in any activity for the 
purpose of influencing the passage or defeat of legislation or proposals 
by initiative petition, except:
    (i) In any case in which a legislative body, a committee of a 
legislative body, or a member of a legislative body requests any 
volunteer in, or employee of such a program to draft, review or testify 
regarding measures or to make representation to such legislative body, 
committee or member; or
    (ii) In connection with an authorization or appropriations measure 
directly affecting the operation of the RSVP Program.
    (b) Nondisplacement of employed workers. A RSVP volunteer shall not 
perform any service or duty or engage in any activity which would 
otherwise be performed by an employed worker or which would supplant the 
hiring of or result in the displacement of employed workers, or impair 
existing contracts for service.
    (c) Compensation for service. (1) An agency or organization to which 
NSSC volunteers are assigned, or which operates or supervises any NSSC 
program, shall not request or receive any compensation from NSSC 
volunteers or from beneficiaries for services of NSSC volunteers.
    (2) This section does not prohibit a sponsor from soliciting and 
accepting voluntary contributions from the community at large to meet 
its local support obligations under the grant or from entering into 
agreements with parties other than beneficiaries to support additional 
volunteers beyond those supported by CNCS.
    (3) A RSVP volunteer station may contribute to the financial support 
of the RSVP Program. However, this support shall not be a required 
precondition for a potential station to obtain RSVP volunteers.
    (4) If a volunteer station agrees to provide funds to support 
additional volunteers or pay for other volunteer support costs, the 
agreement shall be stated in a written Memorandum of Understanding. The 
sponsor shall withdraw services if the station's inability to provide 
monetary or in-kind support to the project under the Memorandum of 
Understanding diminishes or jeopardizes the project's financial 
capabilities to fulfill its obligations.
    (5) Under no circumstances shall a RSVP volunteer receive a fee for 
service from service recipients, their legal guardian, members of their 
family, or friends.
    (d) Labor and anti-labor activity. The sponsor shall not use grant 
funds directly or indirectly to finance labor or anti-labor organization 
or related activity.
    (e) Fair labor standards. A sponsor that employs laborers and 
mechanics for construction, alteration, or repair of facilities shall 
pay wages at prevailing rates as determined by the Secretary of Labor in 
accordance with the Davis-Bacon Act, as amended, 40 U.S.C. 276a.
    (f) Nondiscrimination. A sponsor or sponsor employee shall not 
discriminate against a RSVP volunteer on the basis of race, color, 
national origin, sex, age, religion, or political affiliation, or on the 
basis of disability, if the volunteer with a disability is qualified to 
serve.
    (g) Religious activities. (1) An RSVP volunteer or a member of the 
project staff funded by CNCS shall not give religious instruction, 
conduct worship services, or engage in any form of proselytization as 
part of his/her duties.
    (2) A sponsor or volunteer station may retain its independence and 
may continue to carry out its mission, including the definition, 
development, practice, and expression of its religious beliefs, provided 
that it does not use CNCS funds to support any inherently religious 
activities, such as worship, religious instruction, or proselytization, 
as part of the programs or services funded. If an organization conducts 
such activities, the activities

[[Page 818]]

must be offered separately, in time or location, from the programs or 
services funded under this part.
    (h) Nepotism. Persons selected for project staff positions shall not 
be related by blood or marriage to other project staff, sponsor staff or 
officers, or members of the sponsor Board of Directors, unless there is 
written concurrence from the Advisory Council or community group 
established by the sponsor under subpart B of this part, and with 
notification to CNCS.

[64 FR 14135, Mar. 24, 1999, as amended at 69 FR 60095, Oct. 7, 2004; 83 
FR 64657, Dec. 17, 2018]



Sec.  2553.92  What legal coverage does CNCS make available to RSVP volunteers?

    It is within CNCS' discretion to determine if Counsel is employed 
and counsel fees, court costs, bail and other expenses incidental to the 
defense of an RSVP volunteer are paid in a criminal, civil or 
administrative proceeding, when such a proceeding arises directly out of 
performance of the volunteer's activities. The circumstances under which 
CNCS may pay such expenses are specified in 45 CFR part 1220.

[83 FR 64657, Dec. 17, 2018]



                    Subpart J_Performance Measurement

    Source: 76 FR 20247, Apr. 12, 2011, unless otherwise noted.



Sec.  2553.101  What is the purpose of performance measurement?

    The purpose of performance measurement is to strengthen the RSVP 
project and foster continuous improvement. Performance measures are used 
to assess how an applicant for a grant approaches the design of 
volunteer activities and how those activities impact community needs.

[83 FR 64657, Dec. 17, 2018]



Sec.  2553.102  What performance measurement information must be part 
of an application for funding under RSVP?

    An application to CNCS for funding under RSVP must contain:
    (a) In a year one renewal application:
    (1) Performance measures.
    (2) Estimated performance data for the project years covered by the 
application.
    (b) In a year two or three continuation application:
    (1) Performance measures.
    (2) Estimated performance data for the project years covered by the 
application.
    (3) Actual performance data, where available, for the preceding 
completed project year.

[83 FR 64658, Dec. 17, 2018]



Sec.  2553.103  Who develops the performance measures?

    (a) CNCS may establish performance measures that will apply to RSVP 
projects, which sponsors will be responsible for meeting.
    (b) An applicant is responsible for choosing its own project 
specific performance measures.

[83 FR 64658, Dec. 17, 2018]



Sec.  2553.104  What performance measures must be submitted to CNCS 
and how are these submitted?

    (a) An applicant for CNCS funds is required to submit any uniform 
performance measure CNCS may establish for all applicants. Requirements, 
including types of performance measures, will be communicated in the 
notice of funding and other related materials.
    (b) CNCS may specify additional requirements related to performance 
measures on an annual basis in program guidance and related materials.
    (c) Applicants for CNCS funds will submit performance measures 
through the grant application. CNCS will provide standard forms.

[83 FR 64658, Dec. 17, 2018]



Sec.  2553.105  How are performance measures approved and documented?

    (a) CNCS reviews and approves performance measures for all 
applicants that apply for funding.
    (b) An applicant must follow CNCS provided guidance and formats when 
submitting performance measures.
    (c) Final performance measures, as negotiated between the applicant 
and

[[Page 819]]

CNCS, will be documented in the approved grant application.

[83 FR 64658, Dec. 17, 2018]



Sec.  2553.106  How does a sponsor report performance measures to CNCS?

    CNCS will set specific reporting requirements, including frequency 
and deadlines, concerning performance measures established in the grant 
award. A sponsor is required to report on the actual results that 
occurred when implementing the grant and to regularly measure the 
project's performance.

[83 FR 64658, Dec. 17, 2018]



Sec.  2553.107  What must a sponsor do if it cannot meet 
its performance measures?

    When a sponsor finds it is not on track to meet its performance 
measures, the sponsor must develop a plan to get back on track or submit 
a request to CNCS to amend its performance measures. CNCS may limit when 
amendments to performance measure can be submitted, as well as limit the 
types of changes a sponsor can make to performance measures. The request 
must include all of the following:
    (a) Why the project is not on track to meet its performance 
requirements;
    (b) How the project has been tracking performance measures;
    (c) Evidence of corrective steps taken;
    (d) Any new proposed performance measures; and
    (e) A plan to ensure that the project will meet the new proposed 
measure(s).

[76 FR 20247, Apr. 12, 2011, as amended at 83 FR 64658, Dec. 17, 2018]



Sec.  2553.108  What happens if a sponsor fails to meet the target 
performance measures included in the approved grant application?

    If a sponsor fails to meet a target performance measure established 
in the approved grant application, CNCS may take one or more of the 
following actions:
    (a) Reduce the amount, suspend, or deny refunding of the grant, in 
accordance with the provisions of Sec.  2553.31;
    (b) Terminate the grant, in accordance with 45 CFR part 1206.

[83 FR 64658, Dec. 17, 2018]



PART 2554_PROGRAM FRAUD CIVIL REMEDIES ACT REGULATIONS--Table of Contents



                        Overview and Definitions

Sec.
2554.1 Overview of regulations.
2554.2 What kind of conduct will result in program fraud enforcement?
2554.3 What is a claim?
2554.4 What is a statement?
2554.5 What is a false claim or statement?
2554.6 What does the phrase ``know or have reason to know'' mean?

              Procedures Leading to Issuance of a Complaint

2554.7 Who investigates program fraud?
2554.8 What happens if program fraud is suspected?
2554.9 Who is the Corporation's authority head?
2554.10 When will the Corporation issue a complaint?
2554.11 What is contained in a complaint?
2554.12 How will the complaint be served?

               Procedures Following Service of a Complaint

2554.13 How does a defendant respond to the complaint?
2554.14 What happens if a defendant fails to file an answer?
2554.15 What happens once an answer is filed?

                           Hearing Provisions

2554.16 What kind of hearing is contemplated?
2554.17 At the hearing, what rights do the parties have?
2554.18 What is the role of the ALJ?
2554.19 Can the reviewing official or ALJ be disqualified?
2554.20 How are issues brought to the attention of the ALJ?
2554.21 How are papers served?
2554.22 How is time computed?
2554.23 What happens during a prehearing conference?
2554.24 What rights are there to review documents?
2554.25 What type of discovery is authorized and how is it conducted?
2554.26 Are there limits on disclosure of documents or discovery?
2554.27 Are witness lists exchanged before the hearing?
2554.28 Can witnesses be subpoenaed?
2554.29 Who pays the costs for a subpoena?
2554.30 Are protective orders available?

[[Page 820]]

2554.31 Where is the hearing held?
2554.32 How will the hearing be conducted and who has the burden of 
          proof?
2554.33 How is evidence presented at the hearing?
2554.34 How is witness testimony presented?
2554.35 Will the hearing proceedings be recorded?
2554.36 Can a party informally discuss the case with the ALJ?
2554.37 Are there sanctions for misconduct?
2554.38 Are post-hearing briefs required?

                          Decisions and Appeals

2554.39 How is the case decided?
2554.40 How are penalty and assessment amounts determined?
2554.41 Can a party request reconsideration of the initial decision?
2554.42 When does the initial decision of the ALJ become final?
2554.43 What are the procedures for appealing the ALJ decision?
2554.44 What happens if an initial decision is appealed?
2554.45 Are there any limitations on the right to appeal to the 
          authority head?
2554.46 How does the authority head dispose of an appeal?
2554.47 What judicial review is available?
2554.48 Can the administrative complaint be settled voluntarily?
2554.49 How are civil penalties and assessments collected?
2554.50 What happens to collections?
2554.51 What if the investigation indicates criminal misconduct?
2554.52 How does the Corporation protect the rights of defendants?

    Authority: Pub. L. 99-509, Secs. 6101-6104, 100 Stat. 1874 (31 
U.S.C. 3801-3812); 42 U.S.C. 12651c-12651d.

    Source: 72 FR 61912, Oct. 20, 2006, unless otherwise noted.

                        Overview and Definitions



Sec.  2554.1  Overview of regulations.

    (a) Statutory basis. This part implements the Program Fraud Civil 
Remedies Act of 1986, 31 U.S.C. 3801-3812 (``the Act''). The Act 
provides the Corporation and other federal agencies with an 
administrative remedy to impose civil penalties and assessments against 
persons making false claims and statements. The Act also provides due 
process protections to all persons who are subject to administrative 
proceedings under this part.
    (b) Possible remedies for program fraud. In addition to any other 
penalties that may be prescribed by law, a person who submits, or causes 
to be submitted, a false claim or a false statement to the Corporation 
is subject to a civil penalty of not more than $11,803 for each 
statement or claim, regardless of whether property, services, or money 
is actually delivered or paid by the Corporation. If the Corporation has 
made any payment, transferred property, or provided services in reliance 
on a false claim, the person submitting it also is subject to an 
assessment of not more than twice the amount of the false claim. This 
assessment is in lieu of damages sustained by the Corporation because of 
the false claim.

[72 FR 61912, Oct. 20, 2006, as amended at 81 FR 40820, June 23, 2016; 
82 FR 1607, Jan. 6, 2017; 83 FR 2075, Jan. 16, 2018; 83 FR 67097, Dec. 
28, 2018; 84 FR 70903, Dec. 26, 2019; 86 FR 13823, Mar. 11, 2021]



Sec.  2554.2  What kind of conduct will result in program fraud enforcement?

    (a) Any person who makes, or causes to be made, a false, fictitious, 
or fraudulent claim or written statement to the Corporation is subject 
to program fraud enforcement. A ``person'' means any individual, 
partnership, corporation, association, or other legal entity.
    (b) If more than one person makes a false claim or statement, each 
person is liable for a civil penalty. If more than one person makes a 
false claim which has induced the Corporation to make payment, an 
assessment is imposed against each person. The liability of each such 
person to pay the assessment is joint and several, that is, each is 
responsible for the entire amount.
    (c) No proof of specific intent to defraud is required to establish 
liability under this part.



Sec.  2554.3  What is a claim?

    (a) Claim means any request, demand, or submission:
    (1) Made to the Corporation for property, services, or money;
    (2) Made to a recipient of property, services, or money from the 
Corporation or to a party to a contract with the Corporation for 
property or services, or for the payment of money. This provision 
applies only when the claim is related to property, services or

[[Page 821]]

money from the Corporation or to a contract with the Corporation; or
    (3) Made to the Corporation which decreases an obligation to pay or 
account for property, services, or money.
    (b) A claim can relate to grants, loans, insurance, or other 
benefits, and includes the Corporation guaranteed loans made by 
participating lenders. A claim is made when it is received by the 
Corporation, an agent, fiscal intermediary, or other entity acting for 
the Corporation, or when it is received by the recipient of property, 
services, or money, or the party to a contract.
    (c) Each voucher, invoice, claim form, or individual request or 
demand for property, services, or money constitutes a separate claim.



Sec.  2554.4  What is a statement?

    A ``statement'' means any written representation, certification, 
affirmation, document, record, or accounting or bookkeeping entry made 
with respect to a claim or with respect to a contract, bid or proposal 
for a contract, grant, loan or other benefit from the Corporation. 
``From the Corporation'' means that the Corporation provides some 
portion of the money or property in connection with the contract, bid, 
grant, loan, or benefit, or is potentially liable to another party for 
some portion of the money or property under such contract, bid, grant, 
loan, or benefit. A statement is made, presented, or submitted to the 
Corporation when it is received by the Corporation or an agent, fiscal 
intermediary, or other entity acting for the Corporation.



Sec.  2554.5  What is a false claim or statement?

    (a) A claim submitted to the Corporation is a ``false'' claim if the 
person making the claim, or causing the claim to be made, knows or has 
reason to know that the claim:
    (1) Is false, fictitious or fraudulent;
    (2) Includes or is supported by a written statement which asserts or 
contains a material fact which is false, fictitious, or fraudulent;
    (3) Includes or is supported by a written statement which is false, 
fictitious or fraudulent because it omits a material fact that the 
person making the statement has a duty to include in the statement; or
    (4) Is for payment for the provision of property or services which 
the person has not provided as claimed.
    (b) A statement submitted to the Corporation is a false statement if 
the person making the statement, or causing the statement to be made, 
knows or has reason to know that the statement:
    (1) Asserts a material fact which is false, fictitious, or 
fraudulent; or
    (2) Is false, fictitious, or fraudulent because it omits a material 
fact that the person making the statement has a duty to include in the 
statement. In addition, the statement must contain or be accompanied by 
an express certification or affirmation of the truthfulness and accuracy 
of the contents of the statement.



Sec.  2554.6  What does the phrase ``know or have reason to know'' mean?

    A person knows or has reason to know (that a claim or statement is 
false) if the person:
    (a) Has actual knowledge that the claim or statement is false, 
fictitious, or fraudulent; or
    (b) Acts in deliberate ignorance of the truth or falsity of the 
claim or statement; or
    (c) Acts in reckless disregard of the truth or falsity of the claim 
or statement.

              Procedures Leading to Issuance of a Complaint



Sec.  2554.7  Who investigates program fraud?

    The Inspector General, or his designee, is the investigating 
official responsible for investigating allegations that a false claim or 
statement has been made. In this regard, the Inspector General has 
authority under the Program Fraud Civil Remedies Act and the Inspector 
General Act of 1978 (5 U.S.C. App. 3), as amended, to issue 
administrative subpoenas for the production of records and documents.



Sec.  2554.8  What happens if program fraud is suspected?

    (a) If the investigating official concludes that an action under 
this Part is

[[Page 822]]

warranted, the investigating official submits a report containing the 
findings and conclusions of the investigation to a reviewing official. 
The reviewing official is the General Counsel or his or her designee. If 
the reviewing official determines that the report provides adequate 
evidence that a person submitted a false claim or statement, the 
reviewing official transmits to the Attorney General written notice of 
an intention to refer the matter for adjudication, with a request for 
approval of such referral. This notice will include the reviewing 
official's statements concerning:
    (1) The reasons for the referral;
    (2) The claims or statements upon which liability would be based;
    (3) The evidence that supports liability;
    (4) An estimate of the amount of money or the value of property, 
services, or other benefits requested or demanded in the false claim or 
statement;
    (5) Any exculpatory or mitigating circumstances that may relate to 
the claims or statements known by the reviewing official or the 
investigating official; and
    (6) A statement that there is a reasonable prospect of collecting an 
appropriate amount of penalties and assessments.
    (b) If at any time, the Attorney General or his or her designee 
requests in writing that this administrative process be stayed, the 
authority head, as identified in Sec.  2554.9 of this Part, must stay 
the process immediately. The authority head may order the process 
resumed only upon receipt of the written authorization of the Attorney 
General.



Sec.  2554.9  Who is the Corporation's authority head?

    The Corporation's ``authority head'' is the Chief Executive Officer 
or his or her designee. For purposes of this Part, the Corporation's 
Chief Financial Officer is designated to act on behalf of the Chief 
Executive Officer.



Sec.  2554.10  When will the Corporation issue a complaint?

    The Corporation will issue a complaint:
    (a) If the Attorney General (or designee) approves the referral of 
the allegations for adjudication; and
    (b) In a case of submission of false claims, if the amount of money 
or the value of property or services demanded or requested in a false 
claim, or a group of related claims submitted at the same time, does not 
exceed $150,000. ``A group of related claims submitted at the same 
time'' includes only those claims arising from the same transaction 
(such as a grant, loan, application, or contract) which are submitted 
together as part of a single request, demand, or submission.



Sec.  2554.11  What is contained in a complaint?

    (a) A complaint is a written statement giving notice to the person 
alleged to be liable under 31 U.S.C. 3802 of the specific allegations 
being referred for adjudication and of the person's right to request a 
hearing with respect to those allegations. The person alleged to have 
made false statements or to have submitted false claims to the 
Corporation is referred to as the ``defendant.''
    (b) The reviewing official may join in a single complaint, false 
claims or statements that are unrelated, or that were not submitted 
simultaneously, regardless of the amount of money or the value of 
property or services demanded or requested.
    (c) The complaint will state that the Corporation seeks to impose 
civil penalties, assessments, or both, against each defendant and will 
include:
    (1) The allegations of liability against each defendant, including 
the statutory basis for liability, identification of the claims or 
statements involved, and the reasons liability allegedly arises from 
such claims or statements;
    (2) The maximum amount of penalties and assessments for which each 
defendant may be held liable;
    (3) A statement that each defendant may request a hearing by filing 
an answer and may be represented by a representative;
    (4) Instructions for filing such an answer;
    (5) A warning that failure to file an answer within 30 days of 
service of the

[[Page 823]]

complaint will result in imposition of the maximum amount of penalties 
and assessments.
    (d) The reviewing official must serve any complaint on the defendant 
and, if a hearing is requested by the defendant, provide a copy to the 
Administrative Law Judge (ALJ) assigned to the case.



Sec.  2554.12  How will the complaint be served?

    (a) The complaint must be served on individual defendants directly, 
a partnership through a general partner, and on corporations or on 
unincorporated associations through an executive officer or a director, 
except that service also may be made on any person authorized by 
appointment or by law to receive process for the defendant.
    (b) The complaint may be served either by:
    (1) Registered or certified mail (return receipt requested) 
addressed to the defendant at his or her residence, usual dwelling 
place, principal office or place of business; or by
    (2) Personal delivery by anyone 18 years of age or older.
    (c) The date of service is the date of personal delivery or, in the 
case of service by registered or certified mail, the date of postmark.
    (d) Proof of service--
    (1) When service is made by registered or certified mail, the return 
postal receipt will serve as proof of service.
    (2) When service is made by personal delivery, an affidavit of the 
individual serving the complaint, or written acknowledgment of receipt 
by the defendant or a representative, will serve as proof of service.
    (e) When served with the complaint, the defendant also should be 
served with a copy of this Part 2554 and 31 U.S.C. 3801-3812.

               Procedures Following Service of a Complaint



Sec.  2554.13  How does a defendant respond to the complaint?

    (a) A defendant may file an answer with the reviewing official 
within 30 days of service of the complaint. An answer will be considered 
a request for an oral hearing.
    (b) In the answer, a defendant--
    (1) Must admit or deny each of the allegations of liability 
contained in the complaint (a failure to deny an allegation is 
considered an admission);
    (2) Must state any defense on which the defendant intends to rely;
    (3) May state any reasons why he or she believes the penalties, 
assessments, or both should be less than the statutory maximum; and
    (4) Must state the name, address, and telephone number of the person 
authorized by the defendant to act as defendant's representative, if 
any.
    (c) If the defendant is unable to file an answer which meets the 
requirements set forth in paragraph (b) of this section, the defendant 
may file with the reviewing official a general answer denying liability, 
requesting a hearing, and requesting an extension of time in which to 
file a complete answer. A general answer must be filed within 30 days of 
service of the complaint.
    (d) If the defendant initially files a general answer requesting an 
extension of time, the reviewing official must promptly file with the 
ALJ the complaint, the general answer, and the request for an extension 
of time.
    (e) For good cause shown, the ALJ may grant the defendant up to 30 
additional days within which to file an answer meeting the requirements 
of paragraph (b) of this section. Such answer must be filed with the ALJ 
and a copy must be served on the reviewing official.



Sec.  2554.14  What happens if a defendant fails to file an answer?

    (a) If a defendant does not file any answer within 30 days after 
service of the complaint, the reviewing official will refer the 
complaint to the ALJ.
    (b) Once the complaint is referred, the ALJ will promptly serve on 
the defendant a notice that an initial decision will be issued.
    (c) The ALJ will assume the facts alleged in the complaint to be 
true and, if such facts establish liability under the statute, the ALJ 
will issue an initial decision imposing the maximum amount of penalties 
and assessments allowed under the statute.
    (d) Except as otherwise provided in this section, when a defendant 
fails to

[[Page 824]]

file a timely answer, the defendant waives any right to further review 
of the penalties and assessments imposed in the initial decision.
    (e) The initial decision becomes final 30 days after it is issued.
    (f) If, at any time before an initial decision becomes final, a 
defendant files a motion with the ALJ asking that the case be reopened 
and describing the extraordinary circumstances that prevented the 
defendant from filing an answer, the initial decision will be stayed 
until the ALJ makes a decision on the motion. The reviewing official may 
respond to the motion.
    (g) If, in his motion to reopen, a defendant demonstrates 
extraordinary circumstances excusing his failure to file a timely 
answer, the ALJ will withdraw the initial decision, and grant the 
defendant an opportunity to answer the complaint.
    (h) A decision by the ALJ to deny a defendant's motion to reopen a 
case is not subject to review or reconsideration.
    (i) The defendant may appeal to the authority head the decision 
denying a motion to reopen by filing a notice of appeal with the 
authority head within 15 days after the ALJ denies the motion. The 
timely filing of a notice of appeal shall stay the initial decision 
until the authority head decides the issue.
    (j) If the defendant files a timely notice of appeal with the 
authority head, the ALJ shall forward the record of the proceeding to 
the authority head.
    (k) The authority head shall decide expeditiously whether 
extraordinary circumstances excuse the defendant's failure to file a 
timely answer based solely on the record before the ALJ.
    (l) If the authority head decides that extraordinary circumstances 
excused the defendant's failure to file a timely answer, the authority 
head shall remand the case to the ALJ with instructions to grant the 
defendant an opportunity to answer.
    (m) If the authority head decides that the defendant's failure to 
file a timely answer is not excused, the authority head shall reinstate 
the initial decision of the ALJ, which shall become final and binding 
upon the parties 30 days after the authority head issues such decision.



Sec.  2554.15  What happens once an answer is filed?

    (a) When the reviewing official receives an answer, he must file 
concurrently, the complaint and the answer with the ALJ, along with a 
designation of a Corporation representative.
    (b) When the ALJ receives the complaint and the answer, the ALJ will 
promptly serve a notice of oral hearing upon the defendant and the 
representative for the Corporation, in the same manner as the complaint, 
service of which is described in Sec.  2554.12. The notice of oral 
hearing must be served within six years of the date on which the claim 
or statement is made.
    (c) The notice must include:
    (1) The tentative time, place and nature of the hearing;
    (2) The legal authority and jurisdiction under which the hearing is 
to be held;
    (3) The matters of fact and law to be asserted;
    (4) A description of the procedures for the conduct of the hearing;
    (5) The name, address, and telephone number of the defendant's 
representative and the representative for the Corporation; and
    (6) Such other matters as the ALJ deems appropriate.
    (d) The six-year statute of limitation may be extended by agreement 
of the parties.

                           Hearing Provisions



Sec.  2554.16  What kind of hearing is contemplated?

    The hearing is a formal proceeding conducted by the ALJ during which 
a defendant will have the opportunity to cross-examine witnesses, 
present testimony, and dispute liability.



Sec.  2554.17  At the hearing, what rights do the parties have?

    (a) The parties to the hearing shall be the defendant and the 
Corporation. Pursuant to 31 U.S.C. 3730(c)(5), a private plaintiff in an 
action under the False Claims Act may participate in the hearing to the 
extent authorized by the provisions of that Act.
    (b) Each party has the right to:

[[Page 825]]

    (1) Be represented by a representative;
    (2) Request a pre-hearing conference and participate in any 
conference held by the ALJ;
    (3) Conduct discovery;
    (4) Agree to stipulations of fact or law which will be made a part 
of the record;
    (5) Present evidence relevant to the issues at the hearing;
    (6) Present and cross-examine witnesses;
    (7) Present arguments at the hearing as permitted by the ALJ; and
    (8) Submit written briefs and proposed findings of fact and 
conclusions of law after the hearing, as permitted by the ALJ.



Sec.  2554.18  What is the role of the ALJ?

    An ALJ retained by the Corporation serves as the presiding officer 
at all hearings.
    (a) The ALJ shall conduct a fair and impartial hearing, avoid delay, 
maintain order, and assure that a record of the proceeding is made.
    (b) The ALJ has the authority to--
    (1) Set and change the date, time, and place of the hearing upon 
reasonable notice to the parties;
    (2) Continue or recess the hearing in whole or in part for a 
reasonable period of time;
    (3) Hold conferences to identify or simplify the issues, or to 
consider other matters that may aid in the expeditious disposition of 
the proceeding;
    (4) Administer oaths and affirmations;
    (5) Issue subpoenas requiring the attendance of witnesses and the 
production of documents at depositions or at hearings;
    (6) Rule on motions and other procedural matters;
    (7) Regulate the scope and timing of discovery;
    (8) Regulate the course of the hearing and the conduct of 
representatives and parties;
    (9) Examine witnesses;
    (10) Receive, rule on, exclude, or limit evidence;
    (11) Upon motion of a party, take official notice of facts;
    (12) Upon motion of a party, decide cases, in whole or in part, by 
summary judgment where there is no disputed issue of material fact;
    (13) Conduct any conference, argument, or hearing on motions in 
person or by telephone; and
    (14) Exercise such other authority as is necessary to carry out the 
responsibilities of the ALJ under this part.
    (c) The ALJ does not have the authority to find Federal statutes or 
regulations invalid.



Sec.  2554.19  Can the reviewing official or ALJ be disqualified?

    (a) A reviewing official or an ALJ may disqualify himself or herself 
at any time.
    (b) Upon motion of any party, the reviewing official or ALJ may be 
disqualified as follows:
    (1) The motion must be supported by an affidavit containing specific 
facts establishing that personal bias or other reason for 
disqualification exists, including the time and circumstances of the 
discovery of such facts;
    (2) The motion must be filed promptly after discovery of the grounds 
for disqualification, or the objection will be deemed waived; and
    (3) The party, or representative of record, must certify in writing 
that the motion is made in good faith.
    (c) Once a motion has been filed to disqualify the reviewing 
official, the ALJ will halt the proceedings until resolving the matter 
of disqualification. If the ALJ determines that the reviewing official 
is disqualified, the ALJ will dismiss the complaint without prejudice. 
If the ALJ disqualifies himself or herself, the case will be promptly 
reassigned to another ALJ.



Sec.  2554.20  How are issues brought to the attention of the ALJ?

    (a) All applications to the ALJ for an order or ruling shall be by 
motion. Motions shall state the relief sought, the authority relied 
upon, and the facts alleged, and shall be filed with the ALJ and served 
on all other parties.
    (b) Except for motions made during a prehearing conference or at the 
hearing, all motions shall be in writing. The ALJ may require that oral 
motions be reduced to writing.
    (c) Within 15 days after a written motion is served, or such other 
time as

[[Page 826]]

may be fixed by the ALJ, any party may file a response to such motion.
    (d) The ALJ may not grant a written motion before the time for 
filing responses thereto has expired, except upon consent of the parties 
or following a hearing on the motion, but may overrule or deny such 
motion without awaiting a response.
    (e) The ALJ shall make a reasonable effort to dispose of all 
outstanding motions prior to the beginning of the hearing.



Sec.  2554.21  How are papers served?

    (a) Form. (1) Documents filed with the ALJ shall include an original 
and two copies.
    (2) Every pleading and paper filed in the proceeding shall contain a 
caption setting forth the title of the action, the case number assigned 
by the ALJ, and a designation of the paper (e.g., motion to quash 
subpoena).
    (3) Every pleading and paper shall be signed by, and shall contain 
the address and telephone number of the party or the person on whose 
behalf the paper was filed, or his or her representative.
    (4) Papers are considered filed when they are mailed. Date of 
mailing may be established by a certificate from the party or its 
representative or by proof that the document was sent by certified or 
registered mail.
    (b) Service. A party filing a document with the ALJ shall at the 
time of filing, serve a copy of such document on every other party. 
Service upon any party of any document other than those required to be 
served as prescribed in Sec.  2554.12 shall be made by delivering a copy 
or by placing a copy of the document in the United States mail, postage 
prepaid and addressed, to the party's last known address. When a party 
is represented by a representative, service shall be made upon such 
representative in lieu of the actual party.
    (c) Proof of service. A certificate of the individual serving the 
document by personal delivery or by mail, setting forth the manner of 
service, shall be proof of service.



Sec.  2554.22  How is time computed?

    (a) In computing any period of time under this part or in an order 
issued thereunder, the time begins with the day following the act, 
event, or default, and includes the last day of the period, unless it is 
a Saturday, Sunday, or legal holiday observed by the Federal government, 
in which event it includes the next business day.
    (b) When the period of time allowed is less than seven days, 
intermediate Saturdays, Sundays, and legal holidays observed by the 
Federal government shall be excluded from the computation.
    (c) Where a document has been served or issued by placing it in the 
mail, an additional five days will be added to the time permitted for 
any response.



Sec.  2554.23  What happens during a prehearing conference?

    (a) The ALJ may schedule prehearing conferences as appropriate.
    (b) Upon the motion of any party, the ALJ shall schedule at least 
one prehearing conference at a reasonable time in advance of the 
hearing.
    (c) The ALJ may use prehearing conferences to discuss the following:
    (1) Simplification of the issues;
    (2) The necessity or desirability of amendments to the pleadings, 
including the need for a more definite statement;
    (3) Stipulations and admissions of fact or as to the contents and 
authenticity of documents;
    (4) Whether the parties can agree to submission of the case on a 
stipulated record;
    (5) Whether a party chooses to waive appearances at an oral hearing 
and to submit only documentary evidence (subject to the objection of 
other parties) and written argument;
    (6) Limitation of the number of witnesses;
    (7) Scheduling dates for the exchange of witness lists and of 
proposed exhibits;
    (8) Discovery;
    (9) The time and place for the hearing; and
    (10) Such other matters as may tend to expedite the fair and just 
disposition of the proceedings.

[[Page 827]]

    (d) The ALJ may issue an order containing all matters agreed upon by 
the parties or ordered by the ALJ at a prehearing conference.



Sec.  2554.24  What rights are there to review documents?

    (a) Upon written request to the reviewing official, the defendant 
may review any relevant and material documents, transcripts, records, 
and other materials that relate to the allegations set out in the 
complaint and upon which the findings and conclusions of the 
investigating official under Sec.  2554.8 are based, unless such 
documents are subject to a privilege under Federal law. Upon payment of 
fees for duplication, the defendant may obtain copies of such documents.
    (b) Upon written request to the reviewing official, the defendant 
also may obtain a copy of all exculpatory information in the possession 
of the reviewing official or investigating official relating to the 
allegations in the complaint, even if it is contained in a document that 
would otherwise be privileged. If the document would otherwise be 
privileged, only that portion containing exculpatory information must be 
disclosed.
    (c) The notice sent to the Attorney General from the reviewing 
official as described in Sec.  2554.8 is not discoverable under any 
circumstances.
    (d) The defendant may file a motion to compel disclosure of the 
documents subject to the provisions of this section. Such a motion may 
only be filed with the ALJ following the filing of an answer pursuant to 
Sec.  2554.13.



Sec.  2554.25  What type of discovery is authorized and how is it conducted?

    (a) The following types of discovery are authorized:
    (1) Requests for production of documents for inspection and copying;
    (2) Requests for admissions of the authenticity of any relevant 
document or of the truth of any relevant fact;
    (3) Written interrogatories; and
    (4) Depositions.
    (b) For the purpose of this section and Sec. Sec.  2554.27 and 
2554.28, the term ``documents'' includes information, documents, 
reports, answers, records, accounts, papers, and other data and 
documentary evidence. Nothing contained herein shall be interpreted to 
require the creation of a document.
    (c) Unless mutually agreed to by the parties, discovery is available 
only as ordered by the ALJ. The ALJ shall regulate the timing of 
discovery.
    (d) Motions for discovery. (1) A party seeking discovery may file a 
motion with the ALJ. Such a motion shall be accompanied by a copy of the 
requested discovery, or in the case of depositions, a summary of the 
scope of the proposed deposition.
    (2) Within ten days of service, a party may file an opposition to 
the motion and/or a motion for protective order as provided in Sec.  
2554.30.
    (3) The ALJ may grant a motion for discovery only if he or she finds 
that the discovery sought--
    (i) Is necessary for the expeditious, fair, and reasonable 
consideration of the issues;
    (ii) Is not unduly costly or burdensome;
    (iii) Will not unduly delay the proceeding; and
    (iv) Does not seek privileged information.
    (4) The burden of showing that discovery should be allowed is on the 
party seeking discovery.
    (5) The ALJ may grant discovery subject to a protective order under 
Sec.  2554.30.
    (e) Depositions. (1) If a motion for deposition is granted, the ALJ 
shall issue a subpoena for the deponent, which may require the deponent 
to produce documents. The subpoena shall specify the time and place at 
which the deposition will be held.
    (2) The party seeking to depose shall serve the subpoena in the 
manner prescribed in Sec.  2554.12.
    (3) The deponent may file with the ALJ a motion to quash the 
subpoena or a motion for a protective order within ten days of service.
    (4) The party seeking to depose shall provide for the taking of a 
verbatim transcript of the deposition, which it shall make available to 
all other parties for inspection and copying.
    (f) Each party shall bear its own costs of discovery.

[[Page 828]]



Sec.  2554.26  Are there limits on disclosure of documents or discovery?

    (a) Upon written request to the reviewing official, the defendant 
may review all non-privileged, relevant and material documents, records 
and other material related to the allegations contained in the 
complaint. After paying the Corporation a reasonable fee for 
duplication, the defendant may obtain a copy of the records described.
    (b) Upon written request to the reviewing official, the defendant 
may obtain a copy of all exculpatory information in the possession of 
the reviewing official or investigating official relating to the 
allegations in the complaint. If the document would otherwise be 
privileged, only the portion of the document containing exculpatory 
information must be disclosed. As used in this section, the term 
``information'' does not include legal materials such as statutes or 
case law obtained through legal research.
    (c) The notice sent to the Attorney General from the reviewing 
official is not discoverable under any circumstances.
    (d) Other discovery is available only as ordered by the ALJ and 
includes only those methods of discovery allowed by Sec.  2554.25.



Sec.  2554.27  Are witness lists exchanged before the hearing?

    (a) At least 15 days before the hearing or at such other time as 
ordered by the ALJ, the parties must exchange witness lists and copies 
of proposed hearing exhibits, including copies of any written statements 
or transcripts of deposition testimony that the party intends to offer 
in lieu of live testimony.
    (b) If a party objects, the ALJ will not admit into evidence the 
testimony of any witness whose name does not appear on the witness list 
or any exhibit not provided to an opposing party unless the ALJ finds 
good cause for the omission or concludes that there is no prejudice to 
the objecting party.
    (c) Unless a party objects within the time set by the ALJ, documents 
exchanged in accordance with this section are deemed to be authentic for 
the purpose of admissibility at the hearing.



Sec.  2554.28  Can witnesses be subpoenaed?

    (a) A party wishing to procure the appearance and testimony of any 
individual at the hearing may request that the ALJ issue a subpoena.
    (b) A subpoena requiring the attendance and testimony of an 
individual may also require the individual to produce documents at the 
hearing.
    (c) A party seeking a subpoena shall file a written request 
therefore not less than 15 days before the date fixed for the hearing 
unless otherwise allowed by the ALJ for good cause shown. Such request 
shall specify any documents to be produced and shall designate the 
witnesses and describe the address and location thereof with sufficient 
particularity to permit such witnesses to be found.
    (d) The subpoena shall specify the time and place at which the 
witness is to appear and any documents the witness is to produce.
    (e) The party seeking the subpoena shall serve it in the manner 
prescribed in Sec.  2554.12. A subpoena on a party or upon an individual 
under the control of a party may be served by first class mail.
    (f) A party or the individual to whom the subpoena is directed may 
file with the ALJ a motion to quash the subpoena within ten days after 
service or on or before the time specified in the subpoena for 
compliance if it is less than ten days after service.



Sec.  2554.29  Who pays the costs for a subpoena?

    The party requesting a subpoena shall pay the cost of the fees and 
mileage of any witness subpoenaed in the amounts that would be payable 
to a witness in a proceeding in United States District Court. A check 
for witness fees and mileage shall accompany the subpoena when served, 
except that when a subpoena is issued on behalf of the authority, a 
check for witness fees and mileage need not accompany the subpoena.



Sec.  2554.30  Are protective orders available?

    (a) A party or a prospective witness or deponent may file a motion 
for a

[[Page 829]]

protective order with respect to discovery sought by an opposing party 
or with respect to the hearing, seeking to limit the availability or 
disclosure of evidence.
    (b) In issuing a protective order, the ALJ may make any order which 
justice requires to protect a party or person from annoyance, 
embarrassment, oppression, or undue burden or expense, including one or 
more of the following:
    (1) That the discovery not be had;
    (2) That the discovery may be had only on specified terms and 
conditions, including a designation of the time or place;
    (3) That the discovery may be had only through a method of discovery 
other than that requested;
    (4) That certain matters not be inquired into, or that the scope of 
discovery be limited to certain matters;
    (5) That discovery be conducted with no one present except persons 
designated by the ALJ;
    (6) That the contents of discovery or evidence be sealed;
    (7) That a deposition after being sealed be opened only by order of 
the ALJ;
    (8) That a trade secret or other confidential research, development, 
commercial information, or facts pertaining to any criminal 
investigation, proceeding, or other administrative investigation not be 
disclosed or be disclosed only in a designated way; or
    (9) That the parties simultaneously file specified documents or 
information enclosed in sealed envelopes to be opened as directed by the 
ALJ.



Sec.  2554.31  Where is the hearing held?

    The ALJ will hold the hearing in any judicial district of the United 
States:
    (a) In which the defendant resides or transacts business; or
    (b) In which the claim or statement on which liability is based was 
made, presented or submitted to the Corporation; or
    (c) As agreed upon by the defendant and the ALJ.



Sec.  2554.32  How will the hearing be conducted and who has 
the burden of proof?

    (a) The ALJ conducts a hearing in order to determine whether a 
defendant is liable for a civil penalty, assessment, or both and, if so, 
the appropriate amount of the civil penalty and/or assessment. The 
hearing will be recorded and transcribed, and the transcript of 
testimony, exhibits admitted at the hearing, and all papers and requests 
filed in the proceeding constitute the record for a decision by the ALJ.
    (b) The Corporation must prove a defendant's liability and any 
aggravating factors by a preponderance of the evidence.
    (c) A defendant must prove any affirmative defenses and any 
mitigating factors by a preponderance of the evidence.
    (d) The hearing will be open to the public unless otherwise ordered 
by the ALJ for good cause shown.



Sec.  2554.33  How is evidence presented at the hearing?

    (a) The ALJ shall determine the admissibility of evidence.
    (b) Except as provided in this part, the ALJ shall not be bound by 
the Federal Rules of Evidence. However, the ALJ may apply the Federal 
Rules of Evidence where appropriate, e.g., to exclude unreliable 
evidence.
    (c) The ALJ shall exclude irrelevant and immaterial evidence.
    (d) Although relevant, evidence may be excluded if its probative 
value is substantially outweighed by the danger of unfair prejudice, 
confusion of the issues, or by considerations of undue delay or needless 
presentation of cumulative evidence.
    (e) Although relevant, evidence may be excluded if it is privileged 
under Federal law.
    (f) Evidence concerning offers of compromise or settlement shall be 
inadmissible to the extent provided in Rule 408 of the Federal Rules of 
Evidence.
    (g) The ALJ shall permit the parties to introduce rebuttal witnesses 
and evidence.



Sec.  2554.34  How is witness testimony presented?

    (a) Except as provided in paragraph (b) of this section, testimony 
at the hearing shall be given orally by witnesses under oath or 
affirmation.

[[Page 830]]

    (b) At the discretion of the ALJ, testimony may be admitted in the 
form of a written statement or deposition. Any such written statement 
must be provided to all other parties along with the last known address 
of such witness, in a manner which allows sufficient time for other 
parties to subpoena such witness for cross-examination at the hearing. 
Prior written statements of witnesses proposed to testify at the hearing 
and deposition transcripts shall be exchanged as provided in Sec.  
2554.27(a).
    (c) The ALJ shall exercise reasonable control over the mode and 
order of interrogating witnesses and presenting evidence so as to:
    (1) Make the interrogation and presentation effective for the 
ascertainment of the truth;
    (2) Avoid needless consumption of time; and
    (3) Protect witnesses from harassment or undue embarrassment.
    (d) The ALJ shall permit the parties to conduct such cross-
examination as may be required for a full and true disclosure of the 
facts.
    (e) At the discretion of the ALJ, a witness may be cross-examined on 
matters relevant to the proceeding without regard to the scope of his or 
her direct examination. To the extent permitted by the ALJ, cross-
examination on matters outside the scope of direct examination shall be 
conducted in the manner of direct examination and may proceed by leading 
questions only if the witness is a hostile witness, an adverse party, or 
a witness identified with an adverse party.
    (f) Upon motion of any party, the ALJ shall order witnesses excluded 
so that they cannot hear the testimony of other witnesses. This rule 
does not authorize exclusion of--
    (1) A party who is an individual;
    (2) In the case of a party that is not an individual, an officer or 
employee of the party appearing for the entity pro se or designated by 
the party's representative; or
    (3) An individual whose presence is shown by a party to be essential 
to the presentation of its case, including an individual employed by the 
Government engaged in assisting the representative for the Government.



Sec.  2554.35  Will the hearing proceedings be recorded?

    The hearing will be recorded and transcribed. Transcripts may be 
obtained following the hearing from the ALJ at a cost not to exceed the 
actual cost of duplication. The transcript of testimony, exhibits and 
other evidence admitted at the hearing, and all papers and requests 
filed in the proceeding constitute the record for the decision by the 
ALJ and the authority head. The record may be inspected and copied (upon 
payment of a reasonable fee) by anyone, unless otherwise ordered by the 
ALJ pursuant to Sec.  2554.30.



Sec.  2554.36  Can a party informally discuss the case with the ALJ?

    No. Such discussions are forbidden as ``ex parte communications'' 
with the ALJ. No party or person (except employees of the ALJ's office) 
shall communicate in any way with the ALJ on any matter at issue in a 
case, unless on notice and opportunity for all parties to participate.
    This does not prohibit a person or party from inquiring about the 
status of a case or asking routine questions concerning administrative 
functions or procedures.



Sec.  2554.37  Are there sanctions for misconduct?

    (a) The ALJ may sanction a person, including any party or 
representative for--
    (1) Failing to comply with an order, rule, or procedure governing 
the proceeding;
    (2) Failing to prosecute or defend an action; or
    (3) Engaging in other misconduct that interferes with the speedy, 
orderly, or fair conduct of the hearing.
    (b) Any such sanction, including but not limited to those listed in 
paragraphs (c), (d), and (e) of this section, shall reasonably relate to 
the severity and nature of the failure or misconduct.
    (c) When a party fails to comply with an order, including an order 
for taking a deposition, the production of evidence within the party's 
control, or a request for admission, the ALJ may--

[[Page 831]]

    (1) Draw an inference in favor of the requesting party with regard 
to the information sought;
    (2) In the case of requests for admission, deem each matter of which 
an admission is requested to be admitted;
    (3) Prohibit the party failing to comply with such order from 
introducing evidence concerning, or otherwise relying upon testimony 
relating to the information sought; and
    (4) Strike any part of the pleadings or other submissions of the 
party failing to comply with such request.
    (d) If a party fails to prosecute or defend an action under this 
part commenced by service of a notice of hearing, the ALJ may dismiss 
the action or may issue an initial decision imposing penalties and 
assessments.
    (e) The ALJ may refuse to consider any motion, request, response, 
brief or other document which is not filed in a timely fashion.



Sec.  2554.38  Are post-hearing briefs required?

    The ALJ may require the parties to file post-hearing briefs. In any 
event, any party may file a post-hearing brief. The ALJ shall fix the 
time for filing such briefs, not to exceed 60 days from the date the 
parties receive the transcript of the hearing or, if applicable, the 
stipulated record. Such briefs may be accompanied by proposed findings 
of fact and conclusions of law. The ALJ may permit the parties to file 
reply briefs.

                          Decisions and Appeals



Sec.  2554.39  How is the case decided?

    (a) The ALJ will issue an initial decision based only on the record. 
It will contain findings of fact, conclusions of law, and the amount of 
any penalties and assessments imposed.
    (b) The ALJ will serve the initial decision on all parties within 90 
days after close of the hearing or expiration of any allowed time for 
submission of post-hearing briefs. If the ALJ fails to meet this 
deadline, he or she shall promptly notify the parties of the reason for 
the delay and set a new deadline.
    (c) The findings of fact must include a finding on each of the 
following issues:
    (1) Whether any one or more of the claims or statements identified 
in the complaint violate this part; and
    (2) If the defendant is liable for penalties or assessments, the 
appropriate amount of any such penalties or assessments, considering any 
mitigating or aggravating factors.
    (d) The initial decision will include a description of the right of 
a defendant found liable for a civil penalty or assessment to file a 
motion for reconsideration with the ALJ or a notice of appeal with the 
authority head.



Sec.  2554.40  How are penalty and assessment amounts determined?

    (a) In determining an appropriate amount of civil penalties and 
assessments, the ALJ and the authority head, upon appeal, should 
evaluate any circumstances that mitigate or aggravate the violation and 
should articulate in their opinions the reasons that support the 
penalties and assessments they impose. Because of the intangible costs 
of fraud, the expense of investigating such conduct, and the need to 
deter others who might be similarly tempted, ordinarily double damages 
and a significant civil penalty should be imposed.
    (b) Although not exhaustive, the following factors are among those 
that may influence that ALJ and the authority head in determining the 
amount of penalties and assessments to impose with respect to the 
misconduct (i.e., the false, fictitious, or fraudulent claims or 
statements) charged in the complaint:
    (1) The number of false, fictitious, or fraudulent claims or 
statements;
    (2) The time period over which such claims or statements were made;
    (3) The degree of the defendant's culpability with respect to the 
misconduct;
    (4) The amount of money or the value of the property, services, or 
benefit falsely claimed;
    (5) The value of the Government's actual loss as a result of the 
misconduct, including foreseeable consequential damages and the costs of 
investigation;

[[Page 832]]

    (6) The relationship of the amount imposed as civil penalties to the 
amount of the Government's loss;
    (7) The potential or actual impact of the misconduct upon national 
defense, public health or safety, or public confidence in the management 
of Government programs and operations, including particularly the impact 
on the intended beneficiaries of such programs;
    (8) Whether the defendant has engaged in a pattern of the same or 
similar misconduct;
    (9) Whether the defendant attempted to conceal the misconduct;
    (10) The degree to which the defendant has involved others in the 
misconduct or in concealing it;
    (11) Where the misconduct of employees or agents is imputed to the 
defendant, the extent to which the defendant's practices fostered or 
attempted to preclude such misconduct;
    (12) Whether the defendant cooperated in or obstructed an 
investigation of the misconduct;
    (13) Whether the defendant assisted in identifying and prosecuting 
other wrongdoers;
    (14) The complexity of the program or transaction, and the degree of 
the defendant's sophistication with respect to it, including the extent 
of the defendant's prior participation in the program or in similar 
transactions;
    (15) Whether the defendant has been found, in any criminal, civil, 
or administrative proceeding to have engaged in similar misconduct or to 
have dealt dishonestly with the Government of the United States or of a 
State, directly or indirectly; and
    (16) The need to deter the defendant and others from engaging in the 
same or similar misconduct.
    (c) Nothing in this section shall be construed to limit the ALJ or 
the authority head from considering any other factors that in any given 
case may mitigate or aggravate the offense for which penalties and 
assessments are imposed.



Sec.  2554.41  Can a party request reconsideration of the initial decision?

    (a) Any party may file a motion for reconsideration of the initial 
decision with the ALJ within 20 days of receipt of the initial decision. 
If the initial decision was served by mail, there is a rebuttable 
presumption that the initial decision was received by the party 5 days 
from the date of mailing.
    (b) A motion for reconsideration must be accompanied by a supporting 
brief and must describe specifically each allegedly erroneous decision.
    (c) Any response to a motion for reconsideration will only be 
allowed if it is requested by the ALJ.
    (d) The ALJ will dispose of a motion for reconsideration by denying 
it or by issuing a revised initial decision.
    (e) If the ALJ issues a revised initial decision upon motion of a 
party, that party may not file another motion for reconsideration.



Sec.  2554.42  When does the initial decision of the ALJ become final?

    (a) The initial decision of the ALJ becomes the final decision of 
the Corporation, and shall be binding on all parties 30 days after it is 
issued, unless any party timely files a motion for reconsideration or 
any defendant adjudged to have submitted a false claim or statement 
timely appeals to the Corporation's authority head, as set forth in 
Sec.  2554.43.
    (b) If the ALJ disposes of a motion for reconsideration by denying 
it or by issuing a revised initial decision, the ALJ's order on the 
motion for reconsideration becomes the final decision of the Corporation 
30 days after the order is issued, unless a defendant adjudged to have 
submitted a false claim or statement timely appeals to the authority 
head, within 30 days of the ALJ's order, as set forth in Sec.  2554.43.



Sec.  2554.43  What are the procedures for appealing the ALJ decision?

    (a) Any defendant who submits a timely answer and is found liable 
for a civil penalty or assessment in an initial decision may appeal the 
decision.
    (b) The defendant may file a notice of appeal with the authority 
head within 30 days following issuance of the initial decision, serving 
a copy of the notice of appeal on all parties and the ALJ. The authority 
head may extend this deadline for up to an additional 30 days if an 
extension request is filed within the initial 30-day period and shows 
good cause.

[[Page 833]]

    (c) The defendant's appeal will not be considered until all timely 
motions for reconsideration have been resolved.
    (d) If a timely motion for reconsideration is denied, a notice of 
appeal may be filed within 30 days following such denial or issuance of 
a revised initial decision, whichever applies.
    (e) A notice of appeal must be supported by a written brief 
specifying why the initial decision should be reversed or modified.
    (f) The Corporation's representative may file a brief in opposition 
to the notice of appeal within 30 days of receiving the defendant's 
notice of appeal and supporting brief.
    (g) If a defendant timely files a notice of appeal, and the time for 
filing motions for reconsideration has expired, the ALJ will forward the 
record of the proceeding to the authority head.



Sec.  2554.44  What happens if an initial decision is appealed?

    (a) An initial decision is stayed automatically pending disposition 
of a motion for reconsideration or of an appeal to the authority head.
    (b) No administrative stay is available following a final decision 
of the authority head.



Sec.  2554.45  Are there any limitations on the right to appeal 
to the authority head?

    (a) A defendant has no right to appear personally, or through a 
representative, before the authority head.
    (b) There is no right to appeal any interlocutory ruling.
    (c) The authority head will not consider any objection or evidence 
that was not raised before the ALJ unless the defendant demonstrates 
that the failure to object was caused by extraordinary circumstances. If 
the appealing defendant demonstrates to the satisfaction of the 
authority head that extraordinary circumstances prevented the 
presentation of evidence at the hearing, and that the additional 
evidence is material, the authority head may remand the matter to the 
ALJ for consideration of the additional evidence.



Sec.  2554.46  How does the authority head dispose of an appeal?

    (a) The authority head may affirm, reduce, reverse, compromise, 
remand, or settle any penalty or assessment imposed by the ALJ in the 
initial decision or reconsideration decision.
    (b) The authority head will promptly serve each party to the appeal 
and the ALJ with a copy of his or her decision. This decision must 
contain a statement describing the right of any person, against whom a 
penalty or assessment has been made, to seek judicial review.



Sec.  2554.47  What judicial review is available?

    31 U.S.C. 3805 authorizes judicial review by the appropriate United 
States District Court of any final Corporation decision imposing 
penalties or assessments, and specifies the procedures for such review. 
To obtain judicial review, a defendant must file a petition with the 
appropriate court in a timely manner.



Sec.  2554.48  Can the administrative complaint be settled voluntarily?

    (a) Parties may make offers of compromise or settlement at any time. 
Any compromise or settlement must be in writing.
    (b) The reviewing official has the exclusive authority to compromise 
or settle the case from the date on which the reviewing official is 
permitted to issue a complaint until the ALJ issues an initial decision.
    (c) The authority head has exclusive authority to compromise or 
settle the case from the date of the ALJ's initial decision until 
initiation of any judicial review or any action to collect the penalties 
and assessments.
    (d) The Attorney General has exclusive authority to compromise or 
settle the case while any judicial review or any action to recover 
penalties and assessments is pending.
    (e) The investigating official may recommend settlement terms to the 
reviewing official, the authority head, or the Attorney General, as 
appropriate. The reviewing official may recommend settlement terms to 
the authority head or the Attorney General, as appropriate.

[[Page 834]]



Sec.  2554.49  How are civil penalties and assessments collected?

    Section 3806 and 3808(b) of title 31, United States Code, authorize 
actions for collection of civil penalties and assessments imposed under 
this Part and specify the procedures for such actions.



Sec.  2554.50  What happens to collections?

    All amounts collected pursuant to this part shall be deposited as 
miscellaneous receipts in the Treasury of the United States, except as 
provided in 31 U.S.C. 3806(g).



Sec.  2554.51  What if the investigation indicates criminal misconduct?

    (a) Any investigating official may:
    (1) Refer allegations of criminal misconduct directly to the 
Department of Justice for prosecution or for suit under the False Claims 
Act or other civil proceeding;
    (2) Defer or postpone a report or referral to the reviewing official 
to avoid interference with a criminal investigation or prosecution; or
    (3) Issue subpoenas under other statutory authority.
    (b) Nothing in this part limits the requirement that the Corporation 
employees report suspected violations of criminal law to the 
Corporation's Office of Inspector General or to the Attorney General.



Sec.  2554.52  How does the Corporation protect the rights of defendants?

    These procedures separate the functions of the investigating 
official, reviewing official, and the ALJ, each of whom report to a 
separate organizational authority in accordance with 31 U.S.C. 3801. 
Except for purposes of settlement, or as a witness or a representative 
in public proceedings, no investigating official, reviewing official, or 
Corporation employee or agent who helps investigate, prepare, or present 
a case may (in such case, or a factually related case) participate in 
the initial decision or the review of the initial decision by the 
authority head. This separation of functions and organization is 
designed to assure the independence and impartiality of each government 
official during every stage of the proceeding. The representative for 
the Corporation may be employed in the offices of either the 
investigating official or the reviewing official.



PART 2555_NONDISCRIMINATION ON THE BASIS OF SEX IN EDUCATION PROGRAMS 
OR ACTIVITIES RECEIVING FEDERAL FINANCIAL ASSISTANCE--Table of Contents



                         Subpart A_Introduction

Sec.
2555.100 Purpose and effective date.
2555.105 Definitions.
2555.110 Remedial and affirmative action and self-evaluation.
2555.115 Assurance required.
2555.120 Transfers of property.
2555.125 Effect of other requirements.
2555.130 Effect of employment opportunities.
2555.135 Designation of responsible employee and adoption of grievance 
          procedures.
2555.140 Dissemination of policy.

                           Subpart B_Coverage

2555.200 Application.
2555.205 Educational institutions and other entities controlled by 
          religious organizations.
2555.210 Military and merchant marine educational institutions.
2555.215 Membership practices of certain organizations.
2555.220 Admission.
2555.225 Educational institutions eligible to submit transition plans.
2555.230 Transition plans.
2555.235 Statutory amendments.

     Subpart C_Discrimination on the Basis of Sex in Admission and 
                         Recruitment Prohibited

2555.300 Admission.
2555.305 Preference in admission.
2555.310 Recruitment.

 Subpart D_Discrimination on the Basis of Sex in Education Programs or 
                          Activities Prohibited

2555.400 Education programs or activities.
2555.405 Housing.
2555.410 Comparable facilities.
2555.415 Access to course offerings.
2555.420 Access to schools operated by LEAs.
2555.425 Counseling and use of appraisal and counseling materials.
2555.430 Financial assistance.
2555.435 Employment assistance to students.

[[Page 835]]

2555.440 Health and insurance benefits and services.
2555.445 Marital or parental status.
2555.450 Athletics.
2555.455 Textbooks and curricular material.

Subpart E_Discrimination on the Basis of Sex in Employment in Education 
                    Programs or Activities Prohibited

2555.500 Employment.
2555.505 Employment criteria.
2555.510 Recruitment.
2555.515 Compensation.
2555.520 Job classification and structure.
2555.525 Fringe benefits.
2555.530 Marital or parental status.
2555.535 Effect of state or local law or other requirements.
2555.540 Advertising.
2555.545 Pre-employment inquiries.
2555.550 Sex as a bona fide occupational qualification.

                          Subpart F_Procedures

2555.600 Notice of covered programs.
2555.605 Enforcement procedures.

    Authority: 20 U.S.C. 1681, 1682, 1683, 1685, 1686, 1687, 1688.

    Source: 65 FR 52865, 52893, Aug. 30, 2000, unless otherwise noted.



                         Subpart A_Introduction



Sec.  2555.100  Purpose and effective date.

    The purpose of these Title IX regulations is to effectuate Title IX 
of the Education Amendments of 1972, as amended (except sections 904 and 
906 of those Amendments) (20 U.S.C. 1681, 1682, 1683, 1685, 1686, 1687, 
1688), which is designed to eliminate (with certain exceptions) 
discrimination on the basis of sex in any education program or activity 
receiving Federal financial assistance, whether or not such program or 
activity is offered or sponsored by an educational institution as 
defined in these Title IX regulations. The effective date of these Title 
IX regulations shall be September 29, 2000.



Sec.  2555.105  Definitions.

    As used in these Title IX regulations, the term:
    Administratively separate unit means a school, department, or 
college of an educational institution (other than a local educational 
agency) admission to which is independent of admission to any other 
component of such institution.
    Admission means selection for part-time, full-time, special, 
associate, transfer, exchange, or any other enrollment, membership, or 
matriculation in or at an education program or activity operated by a 
recipient.
    Applicant means one who submits an application, request, or plan 
required to be approved by an official of the Federal agency that awards 
Federal financial assistance, or by a recipient, as a condition to 
becoming a recipient.
    Designated agency official means ``Director, Equal Opportunity''.
    Educational institution means a local educational agency (LEA) as 
defined by 20 U.S.C. 8801(18), a preschool, a private elementary or 
secondary school, or an applicant or recipient that is an institution of 
graduate higher education, an institution of undergraduate higher 
education, an institution of professional education, or an institution 
of vocational education, as defined in this section.
    Federal financial assistance means any of the following, when 
authorized or extended under a law administered by the Federal agency 
that awards such assistance:
    (1) A grant or loan of Federal financial assistance, including funds 
made available for:
    (i) The acquisition, construction, renovation, restoration, or 
repair of a building or facility or any portion thereof; and
    (ii) Scholarships, loans, grants, wages, or other funds extended to 
any entity for payment to or on behalf of students admitted to that 
entity, or extended directly to such students for payment to that 
entity.
    (2) A grant of Federal real or personal property or any interest 
therein, including surplus property, and the proceeds of the sale or 
transfer of such property, if the Federal share of the fair market value 
of the property is not, upon such sale or transfer, properly accounted 
for to the Federal Government.
    (3) Provision of the services of Federal personnel.
    (4) Sale or lease of Federal property or any interest therein at 
nominal consideration, or at consideration reduced

[[Page 836]]

for the purpose of assisting the recipient or in recognition of public 
interest to be served thereby, or permission to use Federal property or 
any interest therein without consideration.
    (5) Any other contract, agreement, or arrangement that has as one of 
its purposes the provision of assistance to any education program or 
activity, except a contract of insurance or guaranty.
    Institution of graduate higher education means an institution that:
    (1) Offers academic study beyond the bachelor of arts or bachelor of 
science degree, whether or not leading to a certificate of any higher 
degree in the liberal arts and sciences;
    (2) Awards any degree in a professional field beyond the first 
professional degree (regardless of whether the first professional degree 
in such field is awarded by an institution of undergraduate higher 
education or professional education); or
    (3) Awards no degree and offers no further academic study, but 
operates ordinarily for the purpose of facilitating research by persons 
who have received the highest graduate degree in any field of study.
    Institution of professional education means an institution (except 
any institution of undergraduate higher education) that offers a program 
of academic study that leads to a first professional degree in a field 
for which there is a national specialized accrediting agency recognized 
by the Secretary of Education.
    Institution of undergraduate higher education means:
    (1) An institution offering at least two but less than four years of 
college-level study beyond the high school level, leading to a diploma 
or an associate degree, or wholly or principally creditable toward a 
baccalaureate degree; or
    (2) An institution offering academic study leading to a 
baccalaureate degree; or
    (3) An agency or body that certifies credentials or offers degrees, 
but that may or may not offer academic study.
    Institution of vocational education means a school or institution 
(except an institution of professional or graduate or undergraduate 
higher education) that has as its primary purpose preparation of 
students to pursue a technical, skilled, or semiskilled occupation or 
trade, or to pursue study in a technical field, whether or not the 
school or institution offers certificates, diplomas, or degrees and 
whether or not it offers full-time study.
    Recipient means any State or political subdivision thereof, or any 
instrumentality of a State or political subdivision thereof, any public 
or private agency, institution, or organization, or other entity, or any 
person, to whom Federal financial assistance is extended directly or 
through another recipient and that operates an education program or 
activity that receives such assistance, including any subunit, 
successor, assignee, or transferee thereof.
    Student means a person who has gained admission.
    Title IX means Title IX of the Education Amendments of 1972, Public 
Law 92-318, 86 Stat. 235, 373 (codified as amended at 20 U.S.C. 1681-
1688) (except sections 904 and 906 thereof), as amended by section 3 of 
Public Law 93-568, 88 Stat. 1855, by section 412 of the Education 
Amendments of 1976, Public Law 94-482, 90 Stat. 2234, and by Section 3 
of Public Law 100-259, 102 Stat. 28, 28-29 (20 U.S.C. 1681, 1682, 1683, 
1685, 1686, 1687, 1688).
    Title IX regulations means the provisions set forth at Sec. Sec.  
2555.100 through 2555.605.
    Transition plan means a plan subject to the approval of the 
Secretary of Education pursuant to section 901(a)(2) of the Education 
Amendments of 1972, 20 U.S.C. 1681(a)(2), under which an educational 
institution operates in making the transition from being an educational 
institution that admits only students of one sex to being one that 
admits students of both sexes without discrimination.

[65 FR 52865, 52893, Aug. 30, 2000, as amended at 65 FR 52894, Aug. 30, 
2000]



Sec.  2555.110  Remedial and affirmative action and self-evaluation.

    (a) Remedial action. If the designated agency official finds that a 
recipient has discriminated against persons on the basis of sex in an 
education program or activity, such recipient shall

[[Page 837]]

take such remedial action as the designated agency official deems 
necessary to overcome the effects of such discrimination.
    (b) Affirmative action. In the absence of a finding of 
discrimination on the basis of sex in an education program or activity, 
a recipient may take affirmative action consistent with law to overcome 
the effects of conditions that resulted in limited participation therein 
by persons of a particular sex. Nothing in these Title IX regulations 
shall be interpreted to alter any affirmative action obligations that a 
recipient may have under Executive Order 11246, 3 CFR, 1964-1965 Comp., 
p. 339; as amended by Executive Order 11375, 3 CFR, 1966-1970 Comp., p. 
684; as amended by Executive Order 11478, 3 CFR, 1966-1970 Comp., p. 
803; as amended by Executive Order 12086, 3 CFR, 1978 Comp., p. 230; as 
amended by Executive Order 12107, 3 CFR, 1978 Comp., p. 264.
    (c) Self-evaluation. Each recipient education institution shall, 
within one year of September 29, 2000:
    (1) Evaluate, in terms of the requirements of these Title IX 
regulations, its current policies and practices and the effects thereof 
concerning admission of students, treatment of students, and employment 
of both academic and non-academic personnel working in connection with 
the recipient's education program or activity;
    (2) Modify any of these policies and practices that do not or may 
not meet the requirements of these Title IX regulations; and
    (3) Take appropriate remedial steps to eliminate the effects of any 
discrimination that resulted or may have resulted from adherence to 
these policies and practices.
    (d) Availability of self-evaluation and related materials. 
Recipients shall maintain on file for at least three years following 
completion of the evaluation required under paragraph (c) of this 
section, and shall provide to the designated agency official upon 
request, a description of any modifications made pursuant to paragraph 
(c)(2) of this section and of any remedial steps taken pursuant to 
paragraph (c)(3) of this section.



Sec.  2555.115  Assurance required.

    (a) General. Either at the application stage or the award stage, 
Federal agencies must ensure that applications for Federal financial 
assistance or awards of Federal financial assistance contain, be 
accompanied by, or be covered by a specifically identified assurance 
from the applicant or recipient, satisfactory to the designated agency 
official, that each education program or activity operated by the 
applicant or recipient and to which these Title IX regulations apply 
will be operated in compliance with these Title IX regulations. An 
assurance of compliance with these Title IX regulations shall not be 
satisfactory to the designated agency official if the applicant or 
recipient to whom such assurance applies fails to commit itself to take 
whatever remedial action is necessary in accordance with Sec.  
2555.110(a) to eliminate existing discrimination on the basis of sex or 
to eliminate the effects of past discrimination whether occurring prior 
to or subsequent to the submission to the designated agency official of 
such assurance.
    (b) Duration of obligation. (1) In the case of Federal financial 
assistance extended to provide real property or structures thereon, such 
assurance shall 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 to provide an education program or activity.
    (2) In the case of Federal financial assistance extended to provide 
personal property, such assurance shall obligate the recipient for the 
period during which it retains ownership or possession of the property.
    (3) In all other cases such assurance shall obligate the recipient 
for the period during which Federal financial assistance is extended.
    (c) Form. (1) The assurances required by paragraph (a) of this 
section, which may be included as part of a document that addresses 
other assurances or obligations, shall include that the applicant or 
recipient will comply with all applicable Federal statutes relating to 
nondiscrimination. These include but

[[Page 838]]

are not limited to: Title IX of the Education Amendments of 1972, as 
amended (20 U.S.C. 1681-1683, 1685-1688).
    (2) The designated agency official will specify the extent to which 
such assurances will be required of the applicant's or recipient's 
subgrantees, contractors, subcontractors, transferees, or successors in 
interest.



Sec.  2555.120  Transfers of property.

    If a recipient sells or otherwise transfers property financed in 
whole or in part with Federal financial assistance to a transferee that 
operates any education program or activity, and the Federal share of the 
fair market value of the property is not upon such sale or transfer 
properly accounted for to the Federal Government, both the transferor 
and the transferee shall be deemed to be recipients, subject to the 
provisions of Sec. Sec.  2555.205 through 2555.235(a).



Sec.  2555.125  Effect of other requirements.

    (a) Effect of other Federal provisions. The obligations imposed by 
these Title IX regulations are independent of, and do not alter, 
obligations not to discriminate on the basis of sex imposed by Executive 
Order 11246, 3 CFR, 1964-1965 Comp., p. 339; as amended by Executive 
Order 11375, 3 CFR, 1966-1970 Comp., p. 684; as amended by Executive 
Order 11478, 3 CFR, 1966-1970 Comp., p. 803; as amended by Executive 
Order 12087, 3 CFR, 1978 Comp., p. 230; as amended by Executive Order 
12107, 3 CFR, 1978 Comp., p. 264; sections 704 and 855 of the Public 
Health Service Act (42 U.S.C. 295m, 298b-2); Title VII of the Civil 
Rights Act of 1964 (42 U.S.C. 2000e et seq.); the Equal Pay Act of 1963 
(29 U.S.C. 206); and any other Act of Congress or Federal regulation.
    (b) Effect of State or local law or other requirements. The 
obligation to comply with these Title IX regulations is not obviated or 
alleviated by any State or local law or other requirement that would 
render any applicant or student ineligible, or limit the eligibility of 
any applicant or student, on the basis of sex, to practice any 
occupation or profession.
    (c) Effect of rules or regulations of private organizations. The 
obligation to comply with these Title IX regulations is not obviated or 
alleviated by any rule or regulation of any organization, club, athletic 
or other league, or association that would render any applicant or 
student ineligible to participate or limit the eligibility or 
participation of any applicant or student, on the basis of sex, in any 
education program or activity operated by a recipient and that receives 
Federal financial assistance.



Sec.  2555.130  Effect of employment opportunities.

    The obligation to comply with these Title IX regulations is not 
obviated or alleviated because employment opportunities in any 
occupation or profession are or may be more limited for members of one 
sex than for members of the other sex.



Sec.  2555.135  Designation of responsible employee and adoption 
of grievance procedures.

    (a) Designation of responsible employee. Each recipient shall 
designate at least one employee to coordinate its efforts to comply with 
and carry out its responsibilities under these Title IX regulations, 
including any investigation of any complaint communicated to such 
recipient alleging its noncompliance with these Title IX regulations or 
alleging any actions that would be prohibited by these Title IX 
regulations. The recipient shall notify all its students and employees 
of the name, office address, and telephone number of the employee or 
employees appointed pursuant to this paragraph.
    (b) Complaint procedure of recipient. A recipient shall adopt and 
publish grievance procedures providing for prompt and equitable 
resolution of student and employee complaints alleging any action that 
would be prohibited by these Title IX regulations.



Sec.  2555.140  Dissemination of policy.

    (a) Notification of policy. (1) Each recipient shall implement 
specific and continuing steps to notify applicants for admission and 
employment, students and parents of elementary and secondary school 
students, employees, sources of referral of applicants for admission and 
employment, and all

[[Page 839]]

unions or professional organizations holding collective bargaining or 
professional agreements with the recipient, that it does not 
discriminate on the basis of sex in the educational programs or 
activities that it operates, and that it is required by Title IX and 
these Title IX regulations not to discriminate in such a manner. Such 
notification shall contain such information, and be made in such manner, 
as the designated agency official finds necessary to apprise such 
persons of the protections against discrimination assured them by Title 
IX and these Title IX regulations, but shall state at least that the 
requirement not to discriminate in education programs or activities 
extends to employment therein, and to admission thereto unless 
Sec. Sec.  2555.300 through 2555.310 do not apply to the recipient, and 
that inquiries concerning the application of Title IX and these Title IX 
regulations to such recipient may be referred to the employee designated 
pursuant to Sec.  2555.135, or to the designated agency official.
    (2) Each recipient shall make the initial notification required by 
paragraph (a)(1) of this section within 90 days of September 29, 2000 or 
of the date these Title IX regulations first apply to such recipient, 
whichever comes later, which notification shall include publication in:
    (i) Newspapers and magazines operated by such recipient or by 
student, alumnae, or alumni groups for or in connection with such 
recipient; and
    (ii) Memoranda or other written communications distributed to every 
student and employee of such recipient.
    (b) Publications. (1) Each recipient shall prominently include a 
statement of the policy described in paragraph (a) of this section in 
each announcement, bulletin, catalog, or application form that it makes 
available to any person of a type, described in paragraph (a) of this 
section, or which is otherwise used in connection with the recruitment 
of students or employees.
    (2) A recipient shall not use or distribute a publication of the 
type described in paragraph (b)(1) of this section that suggests, by 
text or illustration, that such recipient treats applicants, students, 
or employees differently on the basis of sex except as such treatment is 
permitted by these Title IX regulations.
    (c) Distribution. Each recipient shall distribute without 
discrimination on the basis of sex each publication described in 
paragraph (b)(1) of this section, and shall apprise each of its 
admission and employment recruitment representatives of the policy of 
nondiscrimination described in paragraph (a) of this section, and shall 
require such representatives to adhere to such policy.



                           Subpart B_Coverage



Sec.  2555.200  Application.

    Except as provided in Sec. Sec.  2555.205 through 2555.235(a), these 
Title IX regulations apply to every recipient and to each education 
program or activity operated by such recipient that receives Federal 
financial assistance.



Sec.  2555.205  Educational institutions and other entities controlled 
by religious organizations.

    (a) Exemption. These Title IX regulations do not apply to any 
operation of an educational institution or other entity that is 
controlled by a religious organization to the extent that application of 
these Title IX regulations would not be consistent with the religious 
tenets of such organization.
    (b) Exemption claims. An educational institution or other entity 
that wishes to claim the exemption set forth in paragraph (a) of this 
section shall do so by submitting in writing to the designated agency 
official a statement by the highest-ranking official of the institution, 
identifying the provisions of these Title IX regulations that conflict 
with a specific tenet of the religious organization.



Sec.  2555.210  Military and merchant marine educational institutions.

    These Title IX regulations do not apply to an educational 
institution whose primary purpose is the training of individuals for a 
military service of the United States or for the merchant marine.

[[Page 840]]



Sec.  2555.215  Membership practices of certain organizations.

    (a) Social fraternities and sororities. These Title IX regulations 
do not apply to the membership practices of social fraternities and 
sororities that are exempt from taxation under section 501(a) of the 
Internal Revenue Code of 1954, 26 U.S.C. 501(a), the active membership 
of which consists primarily of students in attendance at institutions of 
higher education.
    (b) YMCA, YWCA, Girl Scouts, Boy Scouts, and Camp Fire Girls. These 
Title IX regulations do not apply to the membership practices of the 
Young Men's Christian Association (YMCA), the Young Women's Christian 
Association (YWCA), the Girl Scouts, the Boy Scouts, and Camp Fire 
Girls.
    (c) Voluntary youth service organizations. These Title IX 
regulations do not apply to the membership practices of a voluntary 
youth service organization that is exempt from taxation under section 
501(a) of the Internal Revenue Code of 1954, 26 U.S.C. 501(a), and the 
membership of which has been traditionally limited to members of one sex 
and principally to persons of less than nineteen years of age.



Sec.  2555.220  Admissions.

    (a) Admissions to educational institutions prior to June 24, 1973, 
are not covered by these Title IX regulations.
    (b) Administratively separate units. For the purposes only of this 
section, Sec. Sec.  2555.225 and 2555.230, and Sec. Sec.  2555.300 
through 2555.310, each administratively separate unit shall be deemed to 
be an educational institution.
    (c) Application of Sec. Sec.  2555.300 through 2555.310. Except as 
provided in paragraphs (d) and (e) of this section, Sec. Sec.  2555.300 
through 2555.310 apply to each recipient. A recipient to which 
Sec. Sec.  2555.300 through 2555.310 apply shall not discriminate on the 
basis of sex in admission or recruitment in violation of Sec. Sec.  
2555.300 through 2555.310.
    (d) Educational institutions. Except as provided in paragraph (e) of 
this section as to recipients that are educational institutions, 
Sec. Sec.  2555.300 through 2555.310 apply only to institutions of 
vocational education, professional education, graduate higher education, 
and public institutions of undergraduate higher education.
    (e) Public institutions of undergraduate higher education. 
Sec. Sec.  2555.300 through 2555.310 do not apply to any public 
institution of undergraduate higher education that traditionally and 
continually from its establishment has had a policy of admitting 
students of only one sex.



Sec.  2555.225  Educational institutions eligible to submit transition plans.

    (a) Application. This section applies to each educational 
institution to which Sec. Sec.  2555.300 through 2555.310 apply that:
    (1) Admitted students of only one sex as regular students as of June 
23, 1972; or
    (2) Admitted students of only one sex as regular students as of June 
23, 1965, but thereafter admitted, as regular students, students of the 
sex not admitted prior to June 23, 1965.
    (b) Provision for transition plans. An educational institution to 
which this section applies shall not discriminate on the basis of sex in 
admission or recruitment in violation of Sec. Sec.  2555.300 through 
2555.310.



Sec.  2555.230  Transition plans.

    (a) Submission of plans. An institution to which Sec.  2555.225 
applies and that is composed of more than one administratively separate 
unit may submit either a single transition plan applicable to all such 
units, or a separate transition plan applicable to each such unit.
    (b) Content of plans. In order to be approved by the Secretary of 
Education, a transition plan shall:
    (1) State the name, address, and Federal Interagency Committee on 
Education Code of the educational institution submitting such plan, the 
administratively separate units to which the plan is applicable, and the 
name, address, and telephone number of the person to whom questions 
concerning the plan may be addressed. The person who submits the plan 
shall be the chief administrator or president of the institution, or 
another individual legally authorized to bind the institution to all 
actions set forth in the plan.
    (2) State whether the educational institution or administratively 
separate

[[Page 841]]

unit admits students of both sexes as regular students and, if so, when 
it began to do so.
    (3) Identify and describe with respect to the educational 
institution or administratively separate unit any obstacles to admitting 
students without discrimination on the basis of sex.
    (4) Describe in detail the steps necessary to eliminate as soon as 
practicable each obstacle so identified and indicate the schedule for 
taking these steps and the individual directly responsible for their 
implementation.
    (5) Include estimates of the number of students, by sex, expected to 
apply for, be admitted to, and enter each class during the period 
covered by the plan.
    (c) Nondiscrimination. No policy or practice of a recipient to which 
Sec.  2555.225 applies shall result in treatment of applicants to or 
students of such recipient in violation of Sec. Sec.  2555.300 through 
2555.310 unless such treatment is necessitated by an obstacle identified 
in paragraph (b)(3) of this section and a schedule for eliminating that 
obstacle has been provided as required by paragraph (b)(4) of this 
section.
    (d) Effects of past exclusion. To overcome the effects of past 
exclusion of students on the basis of sex, each educational institution 
to which Sec.  2555.225 applies shall include in its transition plan, 
and shall implement, specific steps designed to encourage individuals of 
the previously excluded sex to apply for admission to such institution. 
Such steps shall include instituting recruitment programs that emphasize 
the institution's commitment to enrolling students of the sex previously 
excluded.



Sec.  2555.235  Statutory amendments.

    (a) This section, which applies to all provisions of these Title IX 
regulations, addresses statutory amendments to Title IX.
    (b) These Title IX regulations shall not apply to or preclude:
    (1) Any program or activity of the American Legion undertaken in 
connection with the organization or operation of any Boys State 
conference, Boys Nation conference, Girls State conference, or Girls 
Nation conference;
    (2) Any program or activity of a secondary school or educational 
institution specifically for:
    (i) The promotion of any Boys State conference, Boys Nation 
conference, Girls State conference, or Girls Nation conference; or
    (ii) The selection of students to attend any such conference;
    (3) Father-son or mother-daughter activities at an educational 
institution or in an education program or activity, but if such 
activities are provided for students of one sex, opportunities for 
reasonably comparable activities shall be provided to students of the 
other sex;
    (4) Any scholarship or other financial assistance awarded by an 
institution of higher education to an individual because such individual 
has received such award in a single-sex pageant based upon a combination 
of factors related to the individual's personal appearance, poise, and 
talent. The pageant, however, must comply with other nondiscrimination 
provisions of Federal law.
    (c) Program or activity or program means:
    (1) All of the operations of any entity described in paragraphs 
(c)(1)(i) through (iv) of this section, any part of which is extended 
Federal financial assistance:
    (i)(A) A department, agency, special purpose district, or other 
instrumentality of a State or of a local government; or
    (B) The entity of such State or local government that distributes 
such assistance and each such department or agency (and each other State 
or local government entity) to which the assistance is extended, in the 
case of assistance to a State or local government;
    (ii)(A) A college, university, or other postsecondary institution, 
or a public system of higher education; or
    (B) A local educational agency (as defined in section 8801 of title 
20), system of vocational education, or other school system;
    (iii)(A) An entire corporation, partnership, or other private 
organization, or an entire sole proprietorship--

[[Page 842]]

    (1) If assistance is extended to such corporation, partnership, 
private organization, or sole proprietorship as a whole; or
    (2) Which is principally engaged in the business of providing 
education, health care, housing, social services, or parks and 
recreation; or
    (B) The entire plant or other comparable, geographically separate 
facility to which Federal financial assistance is extended, in the case 
of any other corporation, partnership, private organization, or sole 
proprietorship; or
    (iv) Any other entity that is established by two or more of the 
entities described in paragraphs (c)(1)(i), (ii), or (iii) of this 
section.
    (2)(i) Program or activity does not include any operation of an 
entity that is controlled by a religious organization if the application 
of 20 U.S.C. 1681 to such operation would not be consistent with the 
religious tenets of such organization.
    (ii) For example, all of the operations of a college, university, or 
other postsecondary institution, including but not limited to 
traditional educational operations, faculty and student housing, campus 
shuttle bus service, campus restaurants, the bookstore, and other 
commercial activities are part of a ``program or activity'' subject to 
these Title IX regulations if the college, university, or other 
institution receives Federal financial assistance.
    (d)(1) Nothing in these Title IX regulations shall be construed to 
require or prohibit any person, or public or private entity, to provide 
or pay for any benefit or service, including the use of facilities, 
related to an abortion. Medical procedures, benefits, services, and the 
use of facilities, necessary to save the life of a pregnant woman or to 
address complications related to an abortion are not subject to this 
section.
    (2) Nothing in this section shall be construed to permit a penalty 
to be imposed on any person or individual because such person or 
individual is seeking or has received any benefit or service related to 
a legal abortion. Accordingly, subject to paragraph (d)(1) of this 
section, no person shall be excluded from participation in, be denied 
the benefits of, or be subjected to discrimination under any academic, 
extracurricular, research, occupational training, employment, or other 
educational program or activity operated by a recipient that receives 
Federal financial assistance because such individual has sought or 
received, or is seeking, a legal abortion, or any benefit or service 
related to a legal abortion.



     Subpart C_Discrimination on the Basis of Sex in Admission and 
                         Recruitment Prohibited



Sec.  2555.300  Admission.

    (a) General. No person shall, on the basis of sex, be denied 
admission, or be subjected to discrimination in admission, by any 
recipient to which Sec. Sec.  2555.300 through 2555.310 apply, except as 
provided in Sec. Sec.  2555.225 and 2555.230.
    (b) Specific prohibitions. (1) In determining whether a person 
satisfies any policy or criterion for admission, or in making any offer 
of admission, a recipient to which Sec. Sec.  2555.300 through 2555.310 
apply shall not:
    (i) Give preference to one person over another on the basis of sex, 
by ranking applicants separately on such basis, or otherwise;
    (ii) Apply numerical limitations upon the number or proportion of 
persons of either sex who may be admitted; or
    (iii) Otherwise treat one individual differently from another on the 
basis of sex.
    (2) A recipient shall not administer or operate any test or other 
criterion for admission that has a disproportionately adverse effect on 
persons on the basis of sex unless the use of such test or criterion is 
shown to predict validly success in the education program or activity in 
question and alternative tests or criteria that do not have such a 
disproportionately adverse effect are shown to be unavailable.
    (c) Prohibitions relating to marital or parental status. In 
determining whether a person satisfies any policy or criterion for 
admission, or in making any offer of admission, a recipient to which 
Sec. Sec.  2555.300 through 2555.310 apply:
    (1) Shall not apply any rule concerning the actual or potential 
parental, family, or marital status of a student or applicant that 
treats persons differently on the basis of sex;

[[Page 843]]

    (2) Shall not discriminate against or exclude any person on the 
basis of pregnancy, childbirth, termination of pregnancy, or recovery 
therefrom, or establish or follow any rule or practice that so 
discriminates or excludes;
    (3) Subject to Sec.  2555.235(d), shall treat disabilities related 
to pregnancy, childbirth, termination of pregnancy, or recovery 
therefrom in the same manner and under the same policies as any other 
temporary disability or physical condition; and
    (4) Shall not make pre-admission inquiry as to the marital status of 
an applicant for admission, including whether such applicant is ``Miss'' 
or ``Mrs.'' A recipient may make pre-admission inquiry as to the sex of 
an applicant for admission, but only if such inquiry is made equally of 
such applicants of both sexes and if the results of such inquiry are not 
used in connection with discrimination prohibited by these Title IX 
regulations.



Sec.  2555.305  Preference in admission.

    A recipient to which Sec. Sec.  2555.300 through 2555.310 apply 
shall not give preference to applicants for admission, on the basis of 
attendance at any educational institution or other school or entity that 
admits as students only or predominantly members of one sex, if the 
giving of such preference has the effect of discriminating on the basis 
of sex in violation of Sec. Sec.  2555.300 through 2555.310.



Sec.  2555.310  Recruitment.

    (a) Nondiscriminatory recruitment. A recipient to which Sec. Sec.  
2555.300 through 2555.310 apply shall not discriminate on the basis of 
sex in the recruitment and admission of students. A recipient may be 
required to undertake additional recruitment efforts for one sex as 
remedial action pursuant to Sec.  2555.110(a), and may choose to 
undertake such efforts as affirmative action pursuant to Sec.  
2555.110(b).
    (b) Recruitment at certain institutions. A recipient to which 
Sec. Sec.  2555.300 through 2555.310 apply shall not recruit primarily 
or exclusively at educational institutions, schools, or entities that 
admit as students only or predominantly members of one sex, if such 
actions have the effect of discriminating on the basis of sex in 
violation of Sec. Sec.  2555.300 through 2555.310.



 Subpart D_Discrimination on the Basis of Sex in Education Programs or 
                          Activities Prohibited



Sec.  2555.400  Education programs or activities.

    (a) General. Except as provided elsewhere in these Title IX 
regulations, no person shall, on the basis of sex, be excluded from 
participation in, be denied the benefits of, or be subjected to 
discrimination under any academic, extracurricular, research, 
occupational training, or other education program or activity operated 
by a recipient that receives Federal financial assistance. Sections 
2555.400 through 2555.455 do not apply to actions of a recipient in 
connection with admission of its students to an education program or 
activity of a recipient to which Sec. Sec.  2555.300 through 2555.310 do 
not apply, or an entity, not a recipient, to which Sec. Sec.  2555.300 
through 2555.310 would not apply if the entity were a recipient.
    (b) Specific prohibitions. Except as provided in Sec. Sec.  2555.400 
through 2555.455, in providing any aid, benefit, or service to a 
student, a recipient shall not, on the basis of sex:
    (1) Treat one person differently from another in determining whether 
such person satisfies any requirement or condition for the provision of 
such aid, benefit, or service;
    (2) Provide different aid, benefits, or services or provide aid, 
benefits, or services in a different manner;
    (3) Deny any person any such aid, benefit, or service;
    (4) Subject any person to separate or different rules of behavior, 
sanctions, or other treatment;
    (5) Apply any rule concerning the domicile or residence of a student 
or applicant, including eligibility for in-state fees and tuition;
    (6) Aid or perpetuate discrimination against any person by providing 
significant assistance to any agency, organization, or person that 
discriminates on the basis of sex in providing any aid, benefit, or 
service to students or employees;

[[Page 844]]

    (7) Otherwise limit any person in the enjoyment of any right, 
privilege, advantage, or opportunity.
    (c) Assistance administered by a recipient educational institution 
to study at a foreign institution. A recipient educational institution 
may administer or assist in the administration of scholarships, 
fellowships, or other awards established by foreign or domestic wills, 
trusts, or similar legal instruments, or by acts of foreign governments 
and restricted to members of one sex, that are designed to provide 
opportunities to study abroad, and that are awarded to students who are 
already matriculating at or who are graduates of the recipient 
institution; Provided, that a recipient educational institution that 
administers or assists in the administration of such scholarships, 
fellowships, or other awards that are restricted to members of one sex 
provides, or otherwise makes available, reasonable opportunities for 
similar studies for members of the other sex. Such opportunities may be 
derived from either domestic or foreign sources.
    (d) Aids, benefits or services not provided by recipient. (1) This 
paragraph (d) applies to any recipient that requires participation by 
any applicant, student, or employee in any education program or activity 
not operated wholly by such recipient, or that facilitates, permits, or 
considers such participation as part of or equivalent to an education 
program or activity operated by such recipient, including participation 
in educational consortia and cooperative employment and student-teaching 
assignments.
    (2) Such recipient:
    (i) Shall develop and implement a procedure designed to assure 
itself that the operator or sponsor of such other education program or 
activity takes no action affecting any applicant, student, or employee 
of such recipient that these Title IX regulations would prohibit such 
recipient from taking; and
    (ii) Shall not facilitate, require, permit, or consider such 
participation if such action occurs.



Sec.  2555.405  Housing.

    (a) Generally. A recipient shall not, on the basis of sex, apply 
different rules or regulations, impose different fees or requirements, 
or offer different services or benefits related to housing, except as 
provided in this section (including housing provided only to married 
students).
    (b) Housing provided by recipient. (1) A recipient may provide 
separate housing on the basis of sex.
    (2) Housing provided by a recipient to students of one sex, when 
compared to that provided to students of the other sex, shall be as a 
whole:
    (i) Proportionate in quantity to the number of students of that sex 
applying for such housing; and
    (ii) Comparable in quality and cost to the student.
    (c) Other housing. (1) A recipient shall not, on the basis of sex, 
administer different policies or practices concerning occupancy by its 
students of housing other than that provided by such recipient.
    (2)(i) A recipient which, through solicitation, listing, approval of 
housing, or otherwise, assists any agency, organization, or person in 
making housing available to any of its students, shall take such 
reasonable action as may be necessary to assure itself that such housing 
as is provided to students of one sex, when compared to that provided to 
students of the other sex, is as a whole:
    (A) Proportionate in quantity; and
    (B) Comparable in quality and cost to the student.
    (ii) A recipient may render such assistance to any agency, 
organization, or person that provides all or part of such housing to 
students of only one sex.



Sec.  2555.410  Comparable facilities.

    A recipient may provide separate toilet, locker room, and shower 
facilities on the basis of sex, but such facilities provided for 
students of one sex shall be comparable to such facilities provided for 
students of the other sex.



Sec.  2555.415  Access to course offerings.

    (a) A recipient shall not provide any course or otherwise carry out 
any of its education program or activity separately on the basis of sex, 
or require or refuse participation therein by any of its students on 
such basis, including

[[Page 845]]

health, physical education, industrial, business, vocational, technical, 
home economics, music, and adult education courses.
    (b)(1) With respect to classes and activities in physical education 
at the elementary school level, the recipient shall comply fully with 
this section as expeditiously as possible but in no event later than one 
year from September 29, 2000. With respect to physical education classes 
and activities at the secondary and post-secondary levels, the recipient 
shall comply fully with this section as expeditiously as possible but in 
no event later than three years from September 29, 2000.
    (2) This section does not prohibit grouping of students in physical 
education classes and activities by ability as assessed by objective 
standards of individual performance developed and applied without regard 
to sex.
    (3) This section does not prohibit separation of students by sex 
within physical education classes or activities during participation in 
wrestling, boxing, rugby, ice hockey, football, basketball, and other 
sports the purpose or major activity of which involves bodily contact.
    (4) Where use of a single standard of measuring skill or progress in 
a physical education class has an adverse effect on members of one sex, 
the recipient shall use appropriate standards that do not have such 
effect.
    (5) Portions of classes in elementary and secondary schools, or 
portions of education programs or activities, that deal exclusively with 
human sexuality may be conducted in separate sessions for boys and 
girls.
    (6) Recipients may make requirements based on vocal range or quality 
that may result in a chorus or choruses of one or predominantly one sex.



Sec.  2555.420  Access to schools operated by LEAs.

    A recipient that is a local educational agency shall not, on the 
basis of sex, exclude any person from admission to:
    (a) Any institution of vocational education operated by such 
recipient; or
    (b) Any other school or educational unit operated by such recipient, 
unless such recipient otherwise makes available to such person, pursuant 
to the same policies and criteria of admission, courses, services, and 
facilities comparable to each course, service, and facility offered in 
or through such schools.



Sec.  2555.425  Counseling and use of appraisal and counseling materials.

    (a) Counseling. A recipient shall not discriminate against any 
person on the basis of sex in the counseling or guidance of students or 
applicants for admission.
    (b) Use of appraisal and counseling materials. A recipient that uses 
testing or other materials for appraising or counseling students shall 
not use different materials for students on the basis of their sex or 
use materials that permit or require different treatment of students on 
such basis unless such different materials cover the same occupations 
and interest areas and the use of such different materials is shown to 
be essential to eliminate sex bias. Recipients shall develop and use 
internal procedures for ensuring that such materials do not discriminate 
on the basis of sex. Where the use of a counseling test or other 
instrument results in a substantially disproportionate number of members 
of one sex in any particular course of study or classification, the 
recipient shall take such action as is necessary to assure itself that 
such disproportion is not the result of discrimination in the instrument 
or its application.
    (c) Disproportion in classes. Where a recipient finds that a 
particular class contains a substantially disproportionate number of 
individuals of one sex, the recipient shall take such action as is 
necessary to assure itself that such disproportion is not the result of 
discrimination on the basis of sex in counseling or appraisal materials 
or by counselors.



Sec.  2555.430  Financial assistance.

    (a) General. Except as provided in paragraphs (b) and (c) of this 
section, in providing financial assistance to any of its students, a 
recipient shall not:
    (1) On the basis of sex, provide different amounts or types of such 
assistance, limit eligibility for such assistance that is of any 
particular type or

[[Page 846]]

source, apply different criteria, or otherwise discriminate;
    (2) Through solicitation, listing, approval, provision of 
facilities, or other services, assist any foundation, trust, agency, 
organization, or person that provides assistance to any of such 
recipient's students in a manner that discriminates on the basis of sex; 
or
    (3) Apply any rule or assist in application of any rule concerning 
eligibility for such assistance that treats persons of one sex 
differently from persons of the other sex with regard to marital or 
parental status.
    (b) Financial aid established by certain legal instruments. (1) A 
recipient may administer or assist in the administration of 
scholarships, fellowships, or other forms of financial assistance 
established pursuant to domestic or foreign wills, trusts, bequests, or 
similar legal instruments or by acts of a foreign government that 
require that awards be made to members of a particular sex specified 
therein; Provided, that the overall effect of the award of such sex-
restricted scholarships, fellowships, and other forms of financial 
assistance does not discriminate on the basis of sex.
    (2) To ensure nondiscriminatory awards of assistance as required in 
paragraph (b)(1) of this section, recipients shall develop and use 
procedures under which:
    (i) Students are selected for award of financial assistance on the 
basis of nondiscriminatory criteria and not on the basis of availability 
of funds restricted to members of a particular sex;
    (ii) An appropriate sex-restricted scholarship, fellowship, or other 
form of financial assistance is allocated to each student selected under 
paragraph (b)(2)(i) of this section; and
    (iii) No student is denied the award for which he or she was 
selected under paragraph (b)(2)(i) of this section because of the 
absence of a scholarship, fellowship, or other form of financial 
assistance designated for a member of that student's sex.
    (c) Athletic scholarships. (1) To the extent that a recipient awards 
athletic scholarships or grants-in-aid, it must provide reasonable 
opportunities for such awards for members of each sex in proportion to 
the number of students of each sex participating in interscholastic or 
intercollegiate athletics.
    (2) A recipient may provide separate athletic scholarships or 
grants-in-aid for members of each sex as part of separate athletic teams 
for members of each sex to the extent consistent with this paragraph (c) 
and Sec.  2555.450.



Sec.  2555.435  Employment assistance to students.

    (a) Assistance by recipient in making available outside employment. 
A recipient that assists any agency, organization, or person in making 
employment available to any of its students:
    (1) Shall assure itself that such employment is made available 
without discrimination on the basis of sex; and
    (2) Shall not render such services to any agency, organization, or 
person that discriminates on the basis of sex in its employment 
practices.
    (b) Employment of students by recipients. A recipient that employs 
any of its students shall not do so in a manner that violates Sec. Sec.  
2555.500 through 2555.550.



Sec.  2555.440  Health and insurance benefits and services.

    Subject to Sec.  2555.235(d), in providing a medical, hospital, 
accident, or life insurance benefit, service, policy, or plan to any of 
its students, a recipient shall not discriminate on the basis of sex, or 
provide such benefit, service, policy, or plan in a manner that would 
violate Sec. Sec.  2555.500 through 2555.550 if it were provided to 
employees of the recipient. This section shall not prohibit a recipient 
from providing any benefit or service that may be used by a different 
proportion of students of one sex than of the other, including family 
planning services. However, any recipient that provides full coverage 
health service shall provide gynecological care.



Sec.  2555.445  Marital or parental status.

    (a) Status generally. A recipient shall not apply any rule 
concerning a student's actual or potential parental, family, or marital 
status that treats students differently on the basis of sex.
    (b) Pregnancy and related conditions. (1) A recipient shall not 
discriminate against any student, or exclude any student from its 
education program or

[[Page 847]]

activity, including any class or extracurricular activity, on the basis 
of such student's pregnancy, childbirth, false pregnancy, termination of 
pregnancy, or recovery therefrom, unless the student requests 
voluntarily to participate in a separate portion of the program or 
activity of the recipient.
    (2) A recipient may require such a student to obtain the 
certification of a physician that the student is physically and 
emotionally able to continue participation as long as such a 
certification is required of all students for other physical or 
emotional conditions requiring the attention of a physician.
    (3) A recipient that operates a portion of its education program or 
activity separately for pregnant students, admittance to which is 
completely voluntary on the part of the student as provided in paragraph 
(b)(1) of this section, shall ensure that the separate portion is 
comparable to that offered to non-pregnant students.
    (4) Subject to Sec.  2555.235(d), a recipient shall treat pregnancy, 
childbirth, false pregnancy, termination of pregnancy and recovery 
therefrom in the same manner and under the same policies as any other 
temporary disability with respect to any medical or hospital benefit, 
service, plan, or policy that such recipient administers, operates, 
offers, or participates in with respect to students admitted to the 
recipient's educational program or activity.
    (5) In the case of a recipient that does not maintain a leave policy 
for its students, or in the case of a student who does not otherwise 
qualify for leave under such a policy, a recipient shall treat 
pregnancy, childbirth, false pregnancy, termination of pregnancy, and 
recovery therefrom as a justification for a leave of absence for as long 
a period of time as is deemed medically necessary by the student's 
physician, at the conclusion of which the student shall be reinstated to 
the status that she held when the leave began.



Sec.  2555.450  Athletics.

    (a) General. No person shall, on the basis of sex, be excluded from 
participation in, be denied the benefits of, be treated differently from 
another person, or otherwise be discriminated against in any 
interscholastic, intercollegiate, club, or intramural athletics offered 
by a recipient, and no recipient shall provide any such athletics 
separately on such basis.
    (b) Separate teams. Notwithstanding the requirements of paragraph 
(a) of this section, a recipient may operate or sponsor separate teams 
for members of each sex where selection for such teams is based upon 
competitive skill or the activity involved is a contact sport. However, 
where a recipient operates or sponsors a team in a particular sport for 
members of one sex but operates or sponsors no such team for members of 
the other sex, and athletic opportunities for members of that sex have 
previously been limited, members of the excluded sex must be allowed to 
try out for the team offered unless the sport involved is a contact 
sport. For the purposes of these Title IX regulations, contact sports 
include boxing, wrestling, rugby, ice hockey, football, basketball, and 
other sports the purpose or major activity of which involves bodily 
contact.
    (c) Equal opportunity. (1) A recipient that operates or sponsors 
interscholastic, intercollegiate, club, or intramural athletics shall 
provide equal athletic opportunity for members of both sexes. In 
determining whether equal opportunities are available, the designated 
agency official will consider, among other factors:
    (i) Whether the selection of sports and levels of competition 
effectively accommodate the interests and abilities of members of both 
sexes;
    (ii) The provision of equipment and supplies;
    (iii) Scheduling of games and practice time;
    (iv) Travel and per diem allowance;
    (v) Opportunity to receive coaching and academic tutoring;
    (vi) Assignment and compensation of coaches and tutors;
    (vii) Provision of locker rooms, practice, and competitive 
facilities;
    (viii) Provision of medical and training facilities and services;
    (ix) Provision of housing and dining facilities and services;
    (x) Publicity.

[[Page 848]]

    (2) For purposes of paragraph (c)(1) of this section, unequal 
aggregate expenditures for members of each sex or unequal expenditures 
for male and female teams if a recipient operates or sponsors separate 
teams will not constitute noncompliance with this section, but the 
designated agency official may consider the failure to provide necessary 
funds for teams for one sex in assessing equality of opportunity for 
members of each sex.
    (d) Adjustment period. A recipient that operates or sponsors 
interscholastic, intercollegiate, club, or intramural athletics at the 
elementary school level shall comply fully with this section as 
expeditiously as possible but in no event later than one year from 
September 29, 2000. A recipient that operates or sponsors 
interscholastic, intercollegiate, club, or intramural athletics at the 
secondary or postsecondary school level shall comply fully with this 
section as expeditiously as possible but in no event later than three 
years from September 29, 2000.



Sec.  2555.455  Textbooks and curricular material.

    Nothing in these Title IX regulations shall be interpreted as 
requiring or prohibiting or abridging in any way the use of particular 
textbooks or curricular materials.



Subpart E_Discrimination on the Basis of Sex in Employment in Education 
                    Programs or Activities Prohibited



Sec.  2555.500  Employment.

    (a) General. (1) No person shall, on the basis of sex, be excluded 
from participation in, be denied the benefits of, or be subjected to 
discrimination in employment, or recruitment, consideration, or 
selection therefor, whether full-time or part-time, under any education 
program or activity operated by a recipient that receives Federal 
financial assistance.
    (2) A recipient shall make all employment decisions in any education 
program or activity operated by such recipient in a nondiscriminatory 
manner and shall not limit, segregate, or classify applicants or 
employees in any way that could adversely affect any applicant's or 
employee's employment opportunities or status because of sex.
    (3) A recipient shall not enter into any contractual or other 
relationship which directly or indirectly has the effect of subjecting 
employees or students to discrimination prohibited by Sec. Sec.  
2555.500 through 2555.550, including relationships with employment and 
referral agencies, with labor unions, and with organizations providing 
or administering fringe benefits to employees of the recipient.
    (4) A recipient shall not grant preferences to applicants for 
employment on the basis of attendance at any educational institution or 
entity that admits as students only or predominantly members of one sex, 
if the giving of such preferences has the effect of discriminating on 
the basis of sex in violation of these Title IX regulations.
    (b) Application. The provisions of Sec. Sec.  2555.500 through 
2555.550 apply to:
    (1) Recruitment, advertising, and the process of application for 
employment;
    (2) Hiring, upgrading, promotion, consideration for and award of 
tenure, demotion, transfer, layoff, termination, application of nepotism 
policies, right of return from layoff, and rehiring;
    (3) Rates of pay or any other form of compensation, and changes in 
compensation;
    (4) Job assignments, classifications, and structure, including 
position descriptions, lines of progression, and seniority lists;
    (5) The terms of any collective bargaining agreement;
    (6) Granting and return from leaves of absence, leave for pregnancy, 
childbirth, false pregnancy, termination of pregnancy, leave for persons 
of either sex to care for children or dependents, or any other leave;
    (7) Fringe benefits available by virtue of employment, whether or 
not administered by the recipient;
    (8) Selection and financial support for training, including 
apprenticeship, professional meetings, conferences, and other related 
activities, selection for tuition assistance, selection for sabbaticals 
and leaves of absence to pursue training;

[[Page 849]]

    (9) Employer-sponsored activities, including social or recreational 
programs; and
    (10) Any other term, condition, or privilege of employment.



Sec.  2555.505  Employment criteria.

    A recipient shall not administer or operate any test or other 
criterion for any employment opportunity that has a disproportionately 
adverse effect on persons on the basis of sex unless:
    (a) Use of such test or other criterion is shown to predict validly 
successful performance in the position in question; and
    (b) Alternative tests or criteria for such purpose, which do not 
have such disproportionately adverse effect, are shown to be 
unavailable.



Sec.  2555.510  Recruitment.

    (a) Nondiscriminatory recruitment and hiring. A recipient shall not 
discriminate on the basis of sex in the recruitment and hiring of 
employees. Where a recipient has been found to be presently 
discriminating on the basis of sex in the recruitment or hiring of 
employees, or has been found to have so discriminated in the past, the 
recipient shall recruit members of the sex so discriminated against so 
as to overcome the effects of such past or present discrimination.
    (b) Recruitment patterns. A recipient shall not recruit primarily or 
exclusively at entities that furnish as applicants only or predominantly 
members of one sex if such actions have the effect of discriminating on 
the basis of sex in violation of Sec. Sec.  2555.500 through 2555.550.



Sec.  2555.515  Compensation.

    A recipient shall not make or enforce any policy or practice that, 
on the basis of sex:
    (a) Makes distinctions in rates of pay or other compensation;
    (b) Results in the payment of wages to employees of one sex at a 
rate less than that paid to employees of the opposite sex for equal work 
on jobs the performance of which requires equal skill, effort, and 
responsibility, and that are performed under similar working conditions.



Sec.  2555.520  Job classification and structure.

    A recipient shall not:
    (a) Classify a job as being for males or for females;
    (b) Maintain or establish separate lines of progression, seniority 
lists, career ladders, or tenure systems based on sex; or
    (c) Maintain or establish separate lines of progression, seniority 
systems, career ladders, or tenure systems for similar jobs, position 
descriptions, or job requirements that classify persons on the basis of 
sex, unless sex is a bona fide occupational qualification for the 
positions in question as set forth in Sec.  2555.550.



Sec.  2555.525  Fringe benefits.

    (a) ``Fringe benefits'' defined. For purposes of these Title IX 
regulations, fringe benefits means: Any medical, hospital, accident, 
life insurance, or retirement benefit, service, policy or plan, any 
profit-sharing or bonus plan, leave, and any other benefit or service of 
employment not subject to the provision of Sec.  2555.515.
    (b) Prohibitions. A recipient shall not:
    (1) Discriminate on the basis of sex with regard to making fringe 
benefits available to employees or make fringe benefits available to 
spouses, families, or dependents of employees differently upon the basis 
of the employee's sex;
    (2) Administer, operate, offer, or participate in a fringe benefit 
plan that does not provide for equal periodic benefits for members of 
each sex and for equal contributions to the plan by such recipient for 
members of each sex; or
    (3) Administer, operate, offer, or participate in a pension or 
retirement plan that establishes different optional or compulsory 
retirement ages based on sex or that otherwise discriminates in benefits 
on the basis of sex.



Sec.  2555.530  Marital or parental status.

    (a) General. A recipient shall not apply any policy or take any 
employment action:
    (1) Concerning the potential marital, parental, or family status of 
an employee or applicant for employment that treats persons differently 
on the basis of sex; or

[[Page 850]]

    (2) Which is based upon whether an employee or applicant for 
employment is the head of household or principal wage earner in such 
employee's or applicant's family unit.
    (b) Pregnancy. A recipient shall not discriminate against or exclude 
from employment any employee or applicant for employment on the basis of 
pregnancy, childbirth, false pregnancy, termination of pregnancy, or 
recovery therefrom.
    (c) Pregnancy as a temporary disability. Subject to Sec.  
2555.235(d), a recipient shall treat pregnancy, childbirth, false 
pregnancy, termination of pregnancy, recovery therefrom, and any 
temporary disability resulting therefrom as any other temporary 
disability for all job-related purposes, including commencement, 
duration, and extensions of leave, payment of disability income, accrual 
of seniority and any other benefit or service, and reinstatement, and 
under any fringe benefit offered to employees by virtue of employment.
    (d) Pregnancy leave. In the case of a recipient that does not 
maintain a leave policy for its employees, or in the case of an employee 
with insufficient leave or accrued employment time to qualify for leave 
under such a policy, a recipient shall treat pregnancy, childbirth, 
false pregnancy, termination of pregnancy, and recovery therefrom as a 
justification for a leave of absence without pay for a reasonable period 
of time, at the conclusion of which the employee shall be reinstated to 
the status that she held when the leave began or to a comparable 
position, without decrease in rate of compensation or loss of 
promotional opportunities, or any other right or privilege of 
employment.



Sec.  2555.535  Effect of state or local law or other requirements.

    (a) Prohibitory requirements. The obligation to comply with 
Sec. Sec.  2555.500 through 2555.550 is not obviated or alleviated by 
the existence of any State or local law or other requirement that 
imposes prohibitions or limits upon employment of members of one sex 
that are not imposed upon members of the other sex.
    (b) Benefits. A recipient that provides any compensation, service, 
or benefit to members of one sex pursuant to a State or local law or 
other requirement shall provide the same compensation, service, or 
benefit to members of the other sex.



Sec.  2555.540  Advertising.

    A recipient shall not in any advertising related to employment 
indicate preference, limitation, specification, or discrimination based 
on sex unless sex is a bona fide occupational qualification for the 
particular job in question.



Sec.  2555.545  Pre-employment inquiries.

    (a) Marital status. A recipient shall not make pre-employment 
inquiry as to the marital status of an applicant for employment, 
including whether such applicant is ``Miss'' or ``Mrs.''
    (b) Sex. A recipient may make pre-employment inquiry as to the sex 
of an applicant for employment, but only if such inquiry is made equally 
of such applicants of both sexes and if the results of such inquiry are 
not used in connection with discrimination prohibited by these Title IX 
regulations.



Sec.  2555.550  Sex as a bona fide occupational qualification.

    A recipient may take action otherwise prohibited by Sec. Sec.  
2555.500 through 2555.550 provided it is shown that sex is a bona fide 
occupational qualification for that action, such that consideration of 
sex with regard to such action is essential to successful operation of 
the employment function concerned. A recipient shall not take action 
pursuant to this section that is based upon alleged comparative 
employment characteristics or stereotyped characterizations of one or 
the other sex, or upon preference based on sex of the recipient, 
employees, students, or other persons, but nothing contained in this 
section shall prevent a recipient from considering an employee's sex in 
relation to employment in a locker room or toilet facility used only by 
members of one sex.



                          Subpart F_Procedures



Sec.  2555.600  Notice of covered programs.

    Within 60 days of September 29, 2000, each Federal agency that 
awards Federal financial assistance shall publish

[[Page 851]]

in the Federal Register a notice of the programs covered by these Title 
IX regulations. Each such Federal agency shall periodically republish 
the notice of covered programs to reflect changes in covered programs. 
Copies of this notice also shall be made available upon request to the 
Federal agency's office that enforces Title IX.



Sec.  2555.605  Enforcement procedures.

    The investigative, compliance, and enforcement procedural provisions 
of Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d) (``Title 
VI'') are hereby adopted and applied to these Title IX regulations. 
These procedures may be found at 45 CFR 1203.6 through 1203.12.

[65 FR 52894, Aug. 30, 2000]



PART 2556_VOLUNTEERS IN SERVICE TO AMERICA--Table of Contents



                      Subpart A_General Information

Sec.
2556.1 What is the purpose of the VISTA program?
2556.3 Who should read this part?
2556.5 What definitions apply in this part?
2556.7 Are waivers of the regulations in this part allowed?

                        Subpart B_VISTA Sponsors

2556.100 Which entities are eligible to apply to become VISTA sponsors?
2556.105 Which entities are prohibited from being VISTA sponsors?
2556.110 What VISTA assistance is available to a sponsor?
2556.115 Is a VISTA sponsor required to provide a cash or in-kind match?
2556.120 How does a VISTA sponsor ensure the participation of people in 
          the communities to be served?
2556.125 May CNCS deny or reduce VISTA assistance to an existing VISTA 
          project?
2556.130 What is the procedure for denial or reduction of VISTA 
          assistance to an existing VISTA project?
2556.135 What is suspension and when may CNCS suspend a VISTA project?
2556.140 What is termination and when may CNCS terminate a VISTA 
          project?
2556.145 May CNCS pursue other remedies against a VISTA project for a 
          sponsor's material failure to comply with any other 
          requirement not set forth in this subpart?
2556.150 What activities are VISTA members not permitted to perform as 
          part of service?
2556.155 May a sponsor manage a project through a subrecipient?
2556.160 What are the sponsor's requirements for cost share projects?
2556.165 What Fair Labor Standards apply to VISTA sponsors and 
          subrecipients?
2556.170 What nondiscrimination requirements apply to sponsors and 
          subrecipients?
2556.175 What limitations are VISTA sponsors subject to regarding 
          religious activities?

                         Subpart C_VISTA Members

2556.200 Who may apply to serve as a VISTA?
2556.205 What commitments and agreements must an individual make to 
          serve in the VISTA program?
2556.210 Who reviews and approves an application for VISTA service?

       Subpart D_Terms, Protections, and Benefits of VISTA Members

2556.300 Is a VISTA considered a Federal employee and is a VISTA 
          considered an employee of the sponsor?
2556.305 What is the duration and scope of service for a VISTA?
2556.310 What are the lines of supervision or oversight of a VISTA, a 
          VISTA sponsor, and CNCS during a VISTA's term of service?
2556.315 What are terms and conditions for official travel for a VISTA?
2556.320 What benefits may a VISTA receive during VISTA service?
2556.325 May a VISTA be provided coverage for legal defense expenses 
          related to VISTA service?
2556.330 When may a VISTA be provided coverage for legal defense 
          expenses related to criminal proceedings?
2556.335 When may a VISTA be provided coverage for legal defense 
          expenses related to civil or administrative proceedings?
2556.340 What is non-competitive eligibility and who is eligible for it?
2556.345 Who may present a grievance?
2556.350 What matters are considered grievances?
2556.355 May a VISTA have access to records as part of the VISTA 
          grievance procedure?
2556.360 How may a VISTA bring a grievance?
2556.365 May a VISTA appeal a grievance?

               Subpart E_Termination for Cause Procedures

2556.400 What is termination for cause and what are the criteria for 
          termination for cause?

[[Page 852]]

2556.405 Who has sole authority to remove a VISTA from a VISTA project 
          and who has sole authority to terminate a VISTA from a VISTA 
          project or the VISTA program?
2556.410 May a sponsor request that a VISTA be removed from its project?
2556.415 May CNCS remove a VISTA from a project without the sponsor's 
          request for removal?
2556.420 What are termination for cause proceedings?
2556.425 May a VISTA appeal his or her termination for cause?
2556.430 Is a VISTA who is terminated early from the VISTA program for 
          other than cause entitled to appeal under these procedures?

                       Subpart F_Summer Associates

2556.500 How is a position for a summer associate established in a 
          project?
2556.505 How do summer associates differ from other VISTAs?

                         Subpart G_VISTA Leaders

2556.600 How is a position for a leader established in a project, or in 
          multiple projects within a contiguous geographic region?
2556.605 Who is eligible to apply to serve as a leader?
2556.610 What is the application process to apply to become a leader?
2556.615 Who reviews a leader application and who approves or 
          disapproves a leader application?
2556.620 How does a leader differ from other VISTAs?
2556.625 What are terms and conditions of service for a leader?

  Subpart H_Restrictions and Prohibitions on Political Activities and 
                                Lobbying

2556.700 Who is covered by this subpart?
2556.705 What is prohibited political activity?
2556.710 What political activities are VISTAs prohibited from engaging 
          in?
2556.715 What political activities may a VISTA participate in?
2556.720 May VISTAs participate in political organizations?
2556.725 May VISTAs participate in political campaigns?
2556.730 May VISTAs participate in elections?
2556.735 May a VISTA be a candidate for public office?
2556.740 May VISTAs participate in political fundraising activities?
2556.745 Are VISTAs prohibited from soliciting or discouraging the 
          political participation of certain individuals?
2556.750 What restrictions and prohibitions are VISTAs subject to who 
          campaign for a spouse or family member?
2556.755 May VISTAs participate in lawful demonstrations?
2556.760 May a sponsor or subrecipient approve the participation of a 
          VISTA in a demonstration or other political meeting?
2556.765 What disciplinary actions are VISTAs subject to for violating 
          restrictions or prohibitions on political activities?
2556.770 What are the requirements of VISTA sponsors or subrecipients 
          regarding political activities?
2556.775 What prohibitions and restrictions on political activity apply 
          to employees of VISTA sponsors and subrecipients?
2556.780 What prohibitions on lobbying activities apply to VISTA 
          sponsors and subrecipients?



                      Subpart A_General Information

    Authority: 42 U.S.C. 4951-4953; 5 CFR part 734.

    Source: 80 FR 63459, Oct. 20, 2015, unless otherwise noted.



Sec.  2556.1  What is the purpose of the VISTA program?

    (a) The purpose of the VISTA program is to strengthen and supplement 
efforts to eliminate and alleviate poverty and poverty-related problems 
throughout the United States and certain U.S. territories. To effect 
this purpose, the VISTA program encourages and enables individuals from 
all walks of life to join VISTA to perform, on a full-time basis, 
meaningful and constructive service to assist in the solution of poverty 
and poverty-related problems and secure opportunities for self-
advancement of persons afflicted by such problems.
    (b) The VISTA program objectives are to:
    (1) Generate private sector resources;
    (2) Encourage volunteer service at the local level;
    (3) Support efforts by local agencies and community organizations to 
achieve long-term sustainability of projects; and
    (4) Strengthen local agencies and community organizations to carry 
out the purpose of the VISTA program.



Sec.  2556.3  Who should read this part?

    This part may be of interest to:

[[Page 853]]

    (a) Private nonprofit organizations, public nonprofit organizations, 
state government agencies, local government agencies, federal agencies, 
and tribal government agencies who are participating in the VISTA 
program as sponsors, or who are interested in participating in the VISTA 
program as sponsors.
    (b) Individuals 18 and older who are serving as a VISTA, or who are 
interested in serving as a VISTA.



Sec.  2556.5  What definitions apply in this part?

    Act or DVSA means the Domestic Volunteer Service Act of 1973, as 
amended, Public Law 93-113 (42 U.S.C. 4951 et seq.).
    Alternative oath or affirmation means a pledge of VISTA service 
taken by an individual who legally resides within a State, but who is 
not a citizen or national of the United States, upon that individual's 
enrollment into the VISTA program as a VISTA.
    Applicant for VISTA service means an individual who is in the 
process of completing, or has completed, an application for VISTA 
service as prescribed by CNCS, but who has been not been approved by 
CNCS to be a candidate.
    Application for VISTA service means the materials prescribed by CNCS 
to ascertain information on an individual's eligibility and suitability 
for VISTA service.
    Area Manager means a CNCS official who is head of a designated, 
regional set, or cluster of CNCS State Offices, or equivalent CNCS 
official.
    Assistance means VISTAs, leaders, or summer associates. 
``Assistance'' also means technical assistance or training of VISTAs, 
leaders, summer associates, candidates, sponsors, or supervisors that 
are provided from funds appropriated by Congress for the purpose of 
supporting activities under the DVSA. ``Assistance'' also means grant 
funds.
    Candidate, when used in the context of an individual who has applied 
for VISTA service, means an individual whose application for VISTA 
service has been approved by CNCS, but who has not taken an oath, 
alternative oath or affirmation to serve in the VISTA program. 
Candidates may include those who were enrolled in the VISTA program at a 
prior time.
    Cost share means when an entity, such as a VISTA sponsor, reimburses 
CNCS part or all of the expenses associated with the operation of a 
VISTA project, such as the costs for one or more VISTAs, leaders, or 
summer associates placed in a VISTA project.
    CNCS means the Corporation for National and Community Service, 
established pursuant to section 191 of the National and Community 
Service Act of 1990, as amended, 42 U.S.C. 12651. CNCS is also sometimes 
referred to as ``the Corporation.''
    Education award or Segal AmeriCorps Education Award means an end-of-
service monetary benefit from CNCS's National Service Trust that is 
directed to designated educational institutions and is awarded to 
certain qualifying VISTAs who successfully complete an established term 
of VISTA service.
    Enroll, enrolled, or enrollment, when used in the context of VISTA 
service, refers to the status of an individual admitted to serve in the 
VISTA program. The enrollment period commences when the Oath to serve in 
the VISTA program is taken by the candidate and ends upon termination 
from a term of service in the VISTA program. The enrollment period may 
commence on a date earlier than the first day of a service assignment of 
an enrolled VISTA member.
    Full-time, when used in the context of VISTA service means service 
in which a VISTA, leader, or summer associate remains available for 
service without regard to regular working hours.
    Leader, a leader, or a VISTA leader means a VISTA member who is 
enrolled for full-time VISTA service, and who is also subject to the 
terms of subpart G of this part.
    Living allowance or living allowance payment means a monetary 
benefit paid for subsistence purposes to a VISTA member during VISTA 
service.
    Memorandum of Agreement means a written agreement between CNCS and a 
sponsor regarding the terms of the sponsor's involvement and 
responsibilities in the VISTA program.
    Nonpartisan election means:

[[Page 854]]

    (1) An election in which none of the candidates is to be nominated 
or elected as representing a political party any of whose candidates for 
Presidential elector received votes in the last preceding election at 
which Presidential electors were selected; or
    (2) An election involving a question or issue which is not 
specifically identified with a political party, such as a constitutional 
amendment, referendum, approval of a municipal ordinance, or any 
question or issue of a similar character.
    Oath means an avowal to VISTA service, taken in accordance with 5 
U.S.C. 3331, by an individual who is a U.S. citizen or national. The 
taking of the Oath effects an individual's enrollment into the VISTA 
program.
    On-duty or during service time means when a VISTA is either 
performing VISTA service or scheduled to do so.
    Project or VISTA project means a set of VISTA activities operated 
and overseen by, and the responsibility of, a sponsor, and assisted 
under this Part to realize the goals of title I of the DVSA.
    Project applicant or VISTA project applicant means an entity that 
submits an application to CNCS to operate, oversee, and be responsible 
for a VISTA project.
    Project application or VISTA project application means the 
application materials prescribed by CNCS to ascertain information on an 
applying entity's eligibility and suitability to operate, oversee, and 
be responsible for, a VISTA project.
    Project director or VISTA project director means a staff person, of 
legal age, of the sponsor, who has been assigned by the sponsor the 
overall responsibility for the management of the VISTA project.
    Sponsor, VISTA sponsor, or VISTA project sponsor means a public 
agency or private non-profit organization that receives assistance under 
title I of the DVSA, and is responsible for operating and overseeing a 
VISTA project. A public agency may be a federal, state, local or tribal 
government.
    State, when used as a noun, means one of the several states in the 
United States of America, District of Columbia, Virgin Islands, Puerto 
Rico, Guam, American Samoa, and the Commonwealth of the Northern Mariana 
Islands.
    State Program Director means a CNCS official who reports to an Area 
Manager or equivalent CNCS official, and who is the head of a CNCS State 
Office.
    Stipend or end-of-service stipend means an end-of-service lump-sum 
monetary benefit from CNCS that is awarded to certain qualifying VISTAs, 
who successfully complete an established term of VISTA service.
    Subrecipient means a public agency or private non-profit 
organization that enters into an agreement with a VISTA sponsor to 
receive one or more VISTAs, and to carry out a set of activities, 
assisted under this Part, to realize the goals of title I of the DVSA. A 
public agency may be a federal, state, local or tribal government.
    Summer associate means a VISTA member who is enrolled for VISTA 
service, during a period between May 1 and September 15, and who is also 
subject to the terms of subpart H of this part. A summer associate must 
be available to provide continuous full-time service for a period of at 
least eight weeks and a maximum of ten weeks.
    Supervisor or VISTA Supervisor means a staff member, of legal age, 
of the sponsor or a subrecipient, who has been assigned by the sponsor 
or the subrecipient, the responsibility for the day-to-day oversight of 
one or more VISTAs.
    Tribe means any Indian tribe, band, nation, or other organized group 
or community, including any Alaskan native village or regional village 
corporation as defined in or established pursuant to the Alaska Native 
Claims Settlement Act, which is recognized by the United States or the 
State in which it resides as eligible for special programs and services 
provided to Indians because of their status as Indians.
    VISTA member, a VISTA, or the VISTA means an individual enrolled 
full-time for VISTA service in the VISTA program, as authorized under 
title I of the DVSA.
    VISTA program means the Federal government program named Volunteers 
in Service to America and authorized under title I of the Domestic

[[Page 855]]

Volunteer Service Act of 1973, as amended, 42 U.S.C. 4950 et seq.
    VISTA service means VISTA service activities performed by a VISTA 
member while enrolled in the VISTA program.



Sec.  2556.7  Are waivers of the regulations in this part allowed?

    Upon a determination of good cause, the Chief Executive Officer of 
CNCS may, subject to statutory limitations, waive any provisions of this 
part.



                        Subpart B_VISTA Sponsors

    Authority: 42 U.S.C. 4953(a), (f), 4954(b), (e), 4955(b), 4956, 
5043(a)-(c), 5044(a)-(c), (e), 5046, 5052, 5056, and 5057; 42 U.S.C. 
12651b (g)(10); E.O. 13279, 67 FR 77141, 3 CFR, 2002 Comp., p. 2156.



Sec.  2556.100  Which entities are eligible to apply to become VISTA sponsors?

    The following entities are eligible to apply to become VISTA 
sponsors, and thereby undertake projects in the U.S. and certain U.S. 
territories:
    (a) Private nonprofit organization.
    (b) Public nonprofit organization.
    (c) State government or state government agency.
    (d) Local government or local government agency.
    (e) Tribal government or tribal government agency.



Sec.  2556.105  Which entities are prohibited from being VISTA sponsors?

    (a) An entity is prohibited from being a VISTA sponsor or from 
otherwise receiving VISTA assistance if a principal purpose or activity 
of the entity includes any of the following:
    (1) Electoral activities. Any activity designed to influence the 
outcome of elections to any public office, such as actively campaigning 
for or against, or supporting, candidates for public office; raising, 
soliciting, or collecting funds for candidates for public office; or 
preparing, distributing, providing funds for campaign literature for 
candidates, including leaflets, pamphlets, and material designed for the 
print or electronic media.
    (2) Voter registration activities. Any voter registration activity, 
such as providing transportation of individuals to voter registration 
sites; providing assistance to individuals in the process of registering 
to vote, including determinations of eligibility; or disseminating 
official voter registration material.
    (3) Transportation to the polls. Providing voters or prospective 
voters with transportation to the polls or raising, soliciting, or 
collecting funds for such activities.
    (b) Any organization that, subsequent to the receipt of VISTA 
assistance, makes as one of its principal purposes or activities any of 
the activities described in paragraph (a) of this section shall be 
subject to the procedures in Sec. Sec.  2556.125 through 2556.145.



Sec.  2556.110  What VISTA assistance is available to a sponsor?

    (a) A sponsor may be approved for one or more VISTA positions.
    (b) A sponsor, upon review and approval by CNCS to establish a 
leader position or positions, and in accordance with criteria set forth 
at subpart G of this part, may be approved for one or more leader 
positions.
    (c) A sponsor, upon approval by CNCS to establish a summer associate 
position or positions, and in accordance with criteria set forth at 
subpart F of this part, may be approved for one or more summer associate 
positions.
    (d) A sponsor may be eligible to receive certain grant assistance 
under the terms determined and prescribed by CNCS.
    (e) A sponsor may receive training and technical assistance related 
to carrying out purposes of title I of the DVSA.



Sec.  2556.115  Is a VISTA sponsor required to provide a cash or in-kind match?

    (a) A sponsor is not required to provide a cash match for any of the 
assistance listed in Sec.  2556.110.
    (b) A sponsor must provide supervision, work space, service-related 
transportation, and any other materials necessary to operate and 
complete the VISTA project and support the VISTA.

[[Page 856]]



Sec.  2556.120  How does a VISTA sponsor ensure the participation of people 
in the communities to be served?

    (a) To the maximum extent practicable, the people of the communities 
to be served by VISTA members shall participate in planning, developing, 
and implementing programs.
    (b) The sponsor shall articulate in its project application how it 
will engage or continue to engage relevant communities in the 
development and implementation of programs.



Sec.  2556.125  May CNCS deny or reduce VISTA assistance 
to an existing VISTA project?

    (a) CNCS may deny or reduce VISTA assistance where a denial or 
reduction is based on:
    (1) Legislative requirement;
    (2) Availability of funding;
    (3) Failure to comply with applicable term(s) or condition(s) of a 
contract, grant agreement, or an applicable Memorandum of Agreement;
    (4) Ineffective management of CNCS resources;
    (5) Substantial failure to comply with CNCS policy and overall 
objectives under a contract, grant agreement, or applicable Memorandum 
of Agreement; or
    (6) General policy.
    (b) In instances where the basis for denial or reduction of VISTA 
assistance may also be the basis for the suspension or termination of a 
VISTA project under this subpart, CNCS shall not be limited to the use 
of this section to the exclusion of the procedures for suspension or 
termination in this subpart.



Sec.  2556.130  What is the procedure for denial or reduction of VISTA 
assistance to an existing VISTA project?

    (a) CNCS shall notify the sponsor in writing, at least 75 calendar 
days before the anticipated denial or reduction of VISTA assistance, 
that CNCS proposes to deny or reduce VISTA assistance. CNCS's written 
notice shall state the reasons for the decision to deny or reduce 
assistance and shall provide an opportunity period for the sponsor to 
respond to the merits of the proposed decision. CNCS retains sole 
authority to make the final determination whether the VISTA assistance 
at issue shall be denied or reduced, as appropriate.
    (b) Where CNCS's notice of proposed decision is based upon a 
specific charge of the sponsor's failure to comply with the applicable 
term(s) or condition(s) of a contract, grant agreement, or an applicable 
Memorandum of Agreement, the notice shall offer the sponsor an 
opportunity period to respond in writing to the notice, with any 
affidavits or other supporting documentation, and to request an informal 
hearing before a mutually agreed-upon impartial hearing officer. The 
authority of such a hearing officer shall be limited to conducting the 
hearing and offering recommendations to CNCS. Regardless of whether or 
not an informal hearing takes place, CNCS shall retain full authority to 
make the final determination whether the VISTA assistance is denied or 
reduced, as appropriate.
    (c) If the recipient requests an informal hearing, in accordance 
with paragraph (b) of this section, such hearing shall be held at a date 
specified by CNCS and held at a location convenient to the sponsor.
    (d) If CNCS's proposed decision is based on ineffective management 
of resources, or on the substantial failure to comply with CNCS policy 
and overall objectives under a contract, grant agreement, or an 
applicable Memorandum of Agreement, CNCS shall inform the sponsor in the 
notice of proposed decision of the opportunity to show cause why VISTA 
assistance should not be denied or reduced, as appropriate. CNCS shall 
retain full authority to make the final determination whether the VISTA 
assistance at issue shall be denied or reduced, as appropriate.
    (e) The recipient shall be informed of CNCS's final determination on 
whether the VISTA assistance at issue shall be denied or reduced, and 
the basis for the determination.
    (f) The procedure in this section does not apply to a denial or 
reduction of VISTA assistance based on legislative requirements, 
availability of funding, or on general policy.

[[Page 857]]



Sec.  2556.135  What is suspension and when may CNCS suspend a VISTA project?

    (a) Suspension is any action by CNCS temporarily suspending or 
curtailing assistance, in whole or in part, to all or any part of a 
VISTA project, prior to the time that the project term is concluded. 
Suspension does not include the denial or reduction of new or additional 
VISTA assistance.
    (b) In an emergency situation for up to 30 consecutive days, CNCS 
may suspend assistance to a sponsor, in whole or in part, for the 
sponsor's material failure or threatened material failure to comply with 
an applicable term(s) or condition(s) of the DVSA, the regulations in 
this part, VISTA program policy, or an applicable Memorandum of 
Agreement. Such suspension in an emergency situation shall be pursuant 
to notice and opportunity to show cause why assistance should not be 
suspended.
    (c) To initiate suspension proceedings, CNCS shall notify the 
sponsor in writing that CNCS is suspending assistance in whole or in 
part. The written notice shall contain the following:
    (1) The grounds for the suspension and the effective date of the 
commencement of the suspension;
    (2) The sponsor's right to submit written material in response to 
the suspension to show why the VISTA assistance should not be suspended, 
or should be reinstated, as appropriate; and
    (3) The opportunity to adequately correct the deficiency, or 
deficiencies, which led to CNCS's notice of suspension.
    (d) In deciding whether to continue or lift the suspension, as 
appropriate, CNCS shall consider any timely material presented in 
writing, any material presented during the course of any informal 
meeting, as well as any showing that the sponsor has adequately 
corrected the deficiency which led to the initiation of suspension.
    (e) During the period of suspension of a sponsor, no new 
expenditures, if applicable, shall be made by the sponsor's VISTA 
project at issue and no new obligations shall be incurred in connection 
with the VISTA project at issue except as specifically authorized in 
writing by CNCS.
    (f) CNCS may, in its discretion, modify the terms, conditions, and 
nature of the suspension or rescind the suspension action at any time on 
its own initiative or upon a showing that the sponsor has adequately 
corrected the deficiency or deficiencies which led to the suspension and 
that repetition is not foreseeable.



Sec.  2556.140  What is termination and when may CNCS terminate 
a VISTA project?

    (a) Termination means any action by CNCS permanently terminating or 
curtailing assistance to all or any part of a sponsor's VISTA project 
prior to the time that the project term is concluded.
    (b) CNCS may terminate assistance to a sponsor in whole or in part 
for the sponsor's material failure to comply with an applicable term(s) 
or condition(s) of the DVSA, the regulations in this part, VISTA program 
policy, or an applicable Memorandum of Agreement.
    (c) To initiate termination proceedings, CNCS shall notify the 
sponsor in writing that CNCS is proposing to terminate assistance in 
whole or in part. The written notice shall contain the following:
    (1) A description of the VISTA assistance proposed for termination, 
the grounds that warrant such proposed termination, and the proposed 
date of effective termination;
    (2) Instructions regarding the sponsor's opportunity, within 21 
calendar days from the date of issuance of the notice, to respond in 
writing to the merits of the proposed termination and instructions 
regarding the sponsor's right to request a full and fair hearing before 
a mutually agreed-upon impartial hearing officer; and
    (3) Invitation of voluntary action by the sponsor to adequately 
correct the deficiency or deficiencies which led to CNCS's notice of 
proposed termination.
    (d) In deciding whether to effect termination of VISTA assistance, 
CNCS shall consider any relevant, timely material presented in writing; 
any relevant material presented during the course of any full and fair 
hearing; as well as, any showing that the sponsor

[[Page 858]]

has adequately corrected the deficiency which led to the initiation of 
termination proceedings.
    (e) Regardless of whether or not a full and fair hearing takes 
place, CNCS shall retain all authority to make the final determination 
as to whether the termination of VISTA assistance is appropriate.
    (f) The sponsor shall be informed of CNCS's final determination on 
the proposed termination of VISTA assistance, and the basis or bases for 
the determination.
    (g) CNCS may, in its discretion, modify the terms, conditions, and 
nature of a termination action or rescind a termination action at any 
time on its own initiative or upon a showing that the sponsor has 
adequately corrected the deficiency which led to the termination, or the 
initiation of termination proceedings, and that repetition is not 
threatened.



Sec.  2556.145  May CNCS pursue other remedies against a VISTA project 
for a sponsor's material failure to comply with any other requirement 
not set forth in this subpart?

    The procedures established by this subpart shall not preclude CNCS 
from pursuing any other remedies authorized by law.



Sec.  2556.150  What activities are VISTA members not permitted to perform 
as part of service?

    (a) A VISTA may not perform any activities in the project 
application that do not correspond with the purpose of the VISTA 
program, as described in Sec.  2556.1, or that the Director has 
otherwise prohibited.
    (b) A VISTA may not perform services or duties as a VISTA member 
that would otherwise be performed by employed workers or other 
volunteers (not including participants under the DVSA and the National 
and Community Service Act of 1990, as amended).
    (c) A VISTA may not perform any services or duties, or engage in 
activities as a VISTA member, that supplant the hiring of or result in 
the displacement of employed workers or other volunteers (not including 
participants under the DVSA or the National and Community Service Act of 
1990, as amended).
    (d) A VISTA may not perform any services or duties, or engage in 
activities as a VISTA member, which impair existing contracts for 
service.
    (e) The requirements of paragraphs (b) through (d) of this section 
do not apply when the sponsor requires the service in order to avoid or 
relieve suffering threatened by, or resulting from, a disaster, civil 
disturbance, terrorism, or war.
    (f) A sponsor or subrecipient shall not request or receive any 
compensation from a VISTA; from a beneficiary of VISTA project services; 
or any other source for services of a VISTA.



Sec.  2556.155  May a sponsor manage a VISTA project through a subrecipient?

    (a) A sponsor may carry out a VISTA project through one or more 
subrecipients that meet the eligibility criteria of Sec.  2556.100.
    (b) The sponsor must enter into a subrecipient agreement with each 
subrecipient. A subrecipient agreement must have at least the following 
elements:
    (1) A project plan to be implemented by the subrecipient;
    (2) Records to be kept and reports to be submitted;
    (3) Responsibilities of the parties and other program requirements; 
and
    (4) Suspension and termination policies and procedures.
    (c) The sponsor retains the responsibility for compliance with a 
Memorandum of Agreement; the applicable regulations in this Part; and 
all applicable policies, procedures, and guidance issued by CNCS 
regarding the VISTA program.
    (d) A sponsor shall not request or receive any compensation from a 
subrecipient for services performed by a VISTA.
    (e) A sponsor shall not receive payment from, or on behalf of, the 
subrecipient for costs of the VISTA assistance, except in two limited 
circumstances:
    (1) For reasonable and actual costs incurred by the sponsor directly 
related to the subrecipient's participation in a VISTA project; and

[[Page 859]]

    (2) For any cost share related to a VISTA placed with the 
subrecipient in the VISTA project.



Sec.  2556.160  What are the sponsor's requirements for cost share projects?

    (a) A sponsor shall enter into a written agreement for cost share as 
prescribed by CNCS.
    (b) A sponsor shall make timely cost share payments as prescribed by 
CNCS and applicable federal law and regulations.
    (c) In addition to other sources of funds, a sponsor may use funds 
from federal, state, or local government agencies, provided the 
requirements of those agencies and their programs are met.
    (d) Subject to review and approval by CNCS, CNCS may enter into an 
agreement with another entity to receive and utilize funds to make cost 
share payments on behalf of the sponsor.



Sec.  2556.165  What Fair Labor Standards apply to VISTA sponsors 
and subrecipients?

    All sponsors and subrecipients that employ laborers and mechanics 
for construction, alteration, or repair of facilities shall pay wages at 
prevailing rates as determined by the Secretary of Labor in accordance 
with the Davis-Bacon Act, as amended, 40 U.S.C. 276a.



Sec.  2556.170  What nondiscrimination requirements apply to sponsors 
and subrecipients?

    (a) An individual with responsibility for the operation of a project 
that receives CNCS assistance must not discriminate against a 
participant in, or member of the staff of, such project on the basis of 
race, color, national origin, sex, age, or political affiliation of such 
participant or staff member, or on the basis of disability, if the 
participant or staff member is a qualified individual with a disability.
    (b) Any CNCS assistance constitutes Federal financial assistance for 
purposes of title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et 
seq.), title IX of the Education Amendments of 1972 (20 U.S.C. 1681 et 
seq.), section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), 
and the Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.), and 
constitutes Federal financial assistance to an education program or 
activity for purposes of the Education Amendments of 1972 (20 U.S.C. 
1681 et seq.).
    (c) An individual with responsibility for the operation of a project 
that receives CNCS assistance may not discriminate on the basis of 
religion against a participant in such project or a member of the staff 
of such project who is paid with CNCS funds. This provision does not 
apply to the employment (with CNCS assistance) of any staff member of a 
CNCS-supported project who was employed with the organization operating 
the project on the date the CNCS assistance was awarded.
    (d) Sponsors must notify all program participants, staff, 
applicants, and beneficiaries of:
    (1) Their rights under applicable federal nondiscrimination laws, 
including relevant provisions of the national service legislation and 
implementing regulations; and
    (2) The procedure for filing a discrimination complaint. No sponsor 
or subrecipient, or sponsor or subrecipient employee, or individual with 
responsibility for the implementation or operation of a sponsor or a 
subrecipient, shall discriminate against a VISTA on the basis of race, 
color, national origin, gender, age, religion, or political affiliation. 
No sponsor or subrecipient, or sponsor or subrecipient employee, or 
individual with responsibility for the implementation or operation of a 
sponsor or a subrecipient, shall discriminate against a VISTA on the 
basis of disability, if the VISTA is a qualified individual with a 
disability.



Sec.  2556.175  What limitations are VISTA sponsors subject to regarding 
religious activities?

    (a) A VISTA shall not give religious instruction, conduct worship 
services or engage in any form of proselytizing as part of his or her 
duties.
    (b) A sponsor or subrecipient may retain its independence and may 
continue to carry out its mission, including the definition, 
development, practice, and expression of its religious beliefs, provided 
that it does not use any CNCS assistance, including the services of any 
VISTA or VISTA assistance, to

[[Page 860]]

support any inherently religious activities, such as worship, religious 
instruction, or proselytizing, as part of the programs or services 
assisted by the VISTA program. If a VISTA sponsor or subrecipient 
conducts such inherently religious activities, the activities must be 
offered separately, in time or location, from the programs or services 
assisted under this Part by the VISTA program.



                         Subpart C_VISTA Members

    Authority: 42 U.S.C. 4953(b)(3), (f), 4954(a)-(c), 5044(e).



Sec.  2556.200  Who may apply to serve as a VISTA?

    An individual may apply to serve as a VISTA if all the following 
requirements are met:
    (a) The individual is at least eighteen years of age upon taking an 
oath or affirmation, as appropriate, to enter VISTA service. There is no 
upper age limit.
    (b) The individual is a United States citizen or national, or is 
legally residing within a state. For eligibility purposes, a lawful 
permanent resident alien is considered to be an individual who is 
legally residing within a state.



Sec.  2556.205  What commitments and agreements must an individual make 
to serve in the VISTA program?

    (a) To the maximum extent practicable, the individual must make a 
full-time commitment to remain available for service without regard to 
regular working hours, at all times during his or her period of service, 
except for authorized periods of leave.
    (b) To the maximum extent practicable, the individual must make a 
full-time personal commitment to alleviate poverty and poverty-related 
problems, and to live among and at the economic level of the low-income 
people served by the project.
    (c) The individual's service cannot be used to satisfy service 
requirements of parole, probation, or community service prescribed by 
the criminal justice system.
    (d) A VISTA candidate or member agrees to undergo an investigation 
into his or her criminal history or background as a condition of 
enrollment, or continued enrollment, in the VISTA program.



Sec.  2556.210  Who reviews and approves an application for VISTA service?

    CNCS has the final authority to approve or deny VISTA applications 
for VISTA service.



       Subpart D_Terms, Protections, and Benefits of VISTA Members

    Authority: 42 U.S.C. 4954(a), (b), (d), 4955, 5044(e), 5055, and 
5059; 42 U.S.C. 12602(c).



Sec.  2556.300  Is a VISTA considered a Federal employee and is a VISTA 
considered an employee of the sponsor?

    (a) Except for the purposes listed here, a VISTA is not considered 
an employee of the Federal Government. A VISTA is considered a Federal 
employee only for the following purposes:
    (1) Federal Tort Claims Act--28 U.S.C. 1346(b); 28 U.S.C. 2671-2680;
    (2) Federal Employees' Compensation Act--5 U.S.C. chapter 81, 
subchapter 1;
    (3) Hatch Act--5 U.S.C. chapter 73, subchapter III;
    (4) Internal Revenue Service Code--26 U.S.C. 1 et seq.; and
    (5) Title II of the Social Security Act--42 U.S.C. 401 et seq.
    (b) A VISTA is not considered a federal employee for any purposes 
other than those set forth in paragraph (a) of this section.
    (c) A VISTA is not covered by Federal or state unemployment 
compensation related to their enrollment or service in the VISTA 
program. A VISTA's service is not considered employment for purposes of 
eligibility for, or receipt of, federal, state, or any other 
unemployment compensation.
    (d) Monetary allowances, such as living allowances that VISTAs 
receive during VISTA service are not considered wages. Monetary 
allowances, such as living allowances, that VISTAs receive during VISTA 
service are considered income for such purposes as Federal income tax 
and Social Security.
    (e) A VISTA is not, under any circumstances, considered an employee 
of the sponsor or subrecipient to which he

[[Page 861]]

or she is assigned to serve. No VISTA is in an employment relationship 
with the sponsor or subrecipient to which he or she is assigned. The 
sponsor is not authorized to make contributions to any state 
unemployment compensation fund on a VISTA's behalf.



Sec.  2556.305  What is the duration and scope of service for a VISTA?

    (a) To serve as a VISTA, an individual makes a full-time commitment 
for a minimum of one year, without regard to regular working hours.
    (b) A VISTA carries out activities in accordance with the purpose of 
the VISTA program, as described in Sec.  2556.1.
    (c) To the maximum extent practicable, the VISTA shall live among 
and at the economic level of the low-income community served by the 
project, and actively seek opportunities to engage with that low-income 
community without regard to regular work hours.
    (d) A VISTA carries out service activities in conformance with the 
sponsor's approved project application, including any description of a 
VISTA assignment as contained in the project application; and, in 
conformance with the purpose of title I of the DVSA. In any case where 
there is a conflict between the project application and the DVSA, the 
DVSA takes precedence.
    (e) Under no circumstances may an individual be enrolled to serve as 
a VISTA beyond five years.



Sec.  2556.310  What are the lines of supervision or oversight of a VISTA, 
a VISTA sponsor, and CNCS during a VISTA's term of service?

    (a) The VISTA sponsor is responsible for the day-to-day supervision 
and oversight of the VISTA.
    (b) CNCS is responsible for ongoing monitoring and oversight of the 
VISTA sponsor's project where the VISTA is assigned. CNCS is responsible 
for selecting the VISTA, assigning the VISTA to a project, removal of a 
VISTA from a project, and VISTA separation actions such as termination 
from the VISTA program.



Sec.  2556.315  What are terms and conditions for official travel for a VISTA?

    (a) CNCS may provide official travel for a VISTA candidate or a 
VISTA, as appropriate, to attend CNCS-directed activities, such as pre-
service training, placement at the project site, in-service training 
events, and return from the project site to home of record.
    (b) CNCS must approve all official travel of a VISTA candidate or a 
VISTA, including the mode of travel.
    (c) CNCS may provide for official emergency travel for a VISTA in 
case of a natural disaster or the critical illness or death of an 
immediate family member.



Sec.  2556.320  What benefits may a VISTA receive during VISTA service?

    (a) A VISTA receives a living allowance computed on a daily rate. 
Living allowances vary according to the local cost-of-living in the 
project area where the VISTA is assigned.
    (b) Subject to a maximum amount, and at the discretion and upon 
approval of CNCS, a VISTA may receive payment for settling-in expenses, 
as determined by CNCS.
    (c) Subject to a maximum amount, and at the discretion of CNCS, in 
the event of an emergency (such as theft, fire loss, or special clothing 
necessitated by severe climate), a VISTA may receive an emergency 
expense payment in order to resume VISTA service activities, as 
determined and approved by CNCS.
    (d) Subject to a maximum amount, and at the discretion of CNCS, a 
VISTA may receive a baggage allowance for the actual costs of 
transporting personal effects to the project site to which the VISTA is 
assigned to serve, as determined by CNCS.
    (e) To the extent eligible, a VISTA may receive health care through 
a health benefits program provided by CNCS.
    (f) To the extent eligible, a VISTA may receive child care support 
through a child care program provided by CNCS.
    (g) To the extent eligible, a VISTA may elect to receive a Segal 
AmeriCorps Education Award, and upon successful completion of service,

[[Page 862]]

receive that award in an amount prescribed by CNCS, in accordance with 
the applicable provisions of 45 CFR parts 2526, 2527, and 2528.
    (1) A VISTA is eligible to elect to receive a Segal AmeriCorps 
Education Award if he or she is a citizen, national, or lawful permanent 
resident alien of the United States.
    (2) A VISTA who elects a Segal AmeriCorps Education Award is 
eligible to request forbearance of a student loan from his or her loan-
holder. A VISTA who elects a Segal AmeriCorps Education Award may, upon 
successful completion of service, be eligible to receive up to 100 
percent of the interest accrued on a qualified student loan, consistent 
with the applicable provisions of 45 CFR part 2529.
    (3) A VISTA is not eligible to receive more than an amount equal to 
the aggregate value of two full-time Segal AmeriCorps Education Awards 
in his or her lifetime.
    (4) Other than for a summer associate, the amount of a Segal 
AmeriCorps Education Award for the successful completion of a VISTA term 
of service is equal to the maximum amount of a Federal Pell Grant under 
Section 401 of the Higher Education Act of 1965 (20 U.S.C. 1070a) that a 
student eligible for such grant may receive in the aggregate for the 
fiscal year in which the VISTA has enrolled in the VISTA program.
    (h) A VISTA who does not elect to receive a Segal AmeriCorps 
Education Award, upon successful completion of service, receives an end-
of-service stipend in an amount prescribed by CNCS.
    (i) In the event that a VISTA does not successfully complete a full 
term of service, a VISTA shall not receive a pro-rated Segal AmeriCorps 
Education Award or a pro-rated end-of-service stipend, except in cases 
where the appropriate State Program Director determines the VISTA did 
not successfully complete a full term of service because of a 
compelling, personal circumstance. Examples of a compelling, personal 
circumstance are: Serious medical condition or disability of a VISTA 
during VISTA service; critical illness or disability of a VISTA's 
immediate family member (spouse, domestic partner, parent, sibling, 
child, or guardian) if this event makes completing a term of service 
unreasonably difficult; or unusual conditions not attributable to the 
VISTA, such as natural disaster, strike, or premature closing of a 
project, that make completing a term unreasonably difficult or 
infeasible.
    (j) In the event of a VISTA's death during service, his or her 
family or others that he or she named as beneficiary in accordance with 
section 5582 of title 5, United States Code, shall be paid a pro-rated 
end-of-service stipend for the period during which the VISTA served. If 
the VISTA had elected to receive the Segal AmeriCorps Education Award 
for successful completion of a full term of VISTA service, prior to 
payment to the named beneficiary, CNCS shall convert that election to an 
end-of-service stipend and pay the VISTA's family, or others that he or 
she named as beneficiary, a pro-rated end-of-service stipend 
accordingly.



Sec.  2556.325  May a VISTA be provided coverage for legal defense expenses 
related to VISTA service?

    Under certain circumstances, as set forth in Sec. Sec.  2556.330 
through 2556.335, CNCS may pay reasonable legal defense expenses 
incurred in judicial or administrative proceedings for the defense of a 
VISTA serving in the VISTA program. Such covered legal expenses consist 
of counsel fees, court costs, bail, and other expenses incidental to a 
VISTA's legal defense.



Sec.  2556.330  When may a VISTA be provided coverage for legal defense 
expenses related to criminal proceedings?

    (a) For the legal defense of a VISTA member who is charged with a 
criminal offense related to the VISTA member's service, up to and 
including arraignment in Federal, state, and local criminal proceedings, 
CNCS may pay actual and reasonable legal expenses. CNCS is not required 
to pay any expenses for the legal defense of a VISTA member where he or 
she is charged with a criminal offense arising from alleged activity or 
action that is unrelated to that VISTA's service.
    (b) A VISTA member's service is clearly unrelated to a charged 
offense:

[[Page 863]]

    (1) When the activity or action is alleged to have occurred prior to 
the VISTA member's VISTA service.
    (2) When the VISTA member is not at his or her assigned project 
location, such as during periods of approved leave, medical leave, 
emergency leave, or in administrative hold status in the VISTA program.
    (3) When the activity or action is alleged to have occurred at or 
near his or her assigned project, but is clearly not part of, or 
required by, the VISTA member's service assignment.
    (c) For the legal defense, beyond arraignment in Federal, state, and 
local criminal proceedings, of a VISTA member who is charged with a 
criminal offense, CNCS may also pay actual and reasonable legal 
expenses:
    (1) When the charged offense against the VISTA member relates 
exclusively to his or her VISTA assignment or status as a VISTA member;
    (2) When the charge offense against the VISTA member arises from an 
alleged activity or action that is a part of, or required by, the VISTA 
member's VISTA assignment;
    (3) When the VISTA member has not admitted a willful or knowing 
violation of law; or
    (4) When the charged offense against the VISTA member is not a minor 
offense or misdemeanor, such as a minor vehicle violation.
    (d) Notwithstanding paragraphs (a) through (c) of this section, 
there may be situations in which the criminal proceedings at issue arise 
from a matter that also gives rise to a civil claim under the Federal 
Tort Claims Act. In such a situation, the U.S. Department of Justice 
may, on behalf of the United States, agree to defend the VISTA. If the 
U.S. Department of Justice agrees to defend the VISTA member, unless 
there is a conflict between the VISTA member's interest and that of the 
United States, CNCS will not pay for expenses associated with any 
additional legal representation (such as counsel fees for private 
counsel) for the VISTA member.



Sec.  2556.335  When may a VISTA be provided coverage for legal defense 
expenses related to civil or administrative proceedings?

    For the legal defense in Federal, state, and local civil judicial 
and administrative proceedings of a VISTA member, CNCS may also pay 
actual and reasonable legal expenses, where:
    (a) The complaint or charge is against the VISTA, and is directly 
related to his or her VISTA service and not to his or her personal 
activities or obligations;
    (b) The VISTA has not admitted to willfully or knowingly pursuing a 
course of conduct that would result in the plaintiff or complainant 
initiating such a proceeding; and
    (c) The judgment sought involves a monetary award that exceeds 
$1,000.



Sec.  2556.340  What is non-competitive eligibility and who is eligible for it?

    (a) Non-competitive eligibility is a status attained by an 
individual such that the individual is eligible for appointment by a 
Federal agency in the Executive branch, into a civil service position in 
the federal competitive service, in accordance with 5 CFR 315.605.
    (b) An individual who successfully completes at least a year-long 
term of service as a VISTA, and who has not been terminated for cause 
from the VISTA program at any time, retains non-competitive eligibility 
status for one year following the end of the term of service as a VISTA.
    (c) In addition to the retention of the one year of non-competitive 
eligibility status as provided in paragraph (b) of this section, an 
individual's non-competitive eligibility status may extend for two more 
years to a total of three years if the individual is:
    (1) In the military service;
    (2) Studying at a recognized institution of higher learning; or
    (3) In another activity which, in the view of the federal agency 
referenced in paragraph (a) of this section, warrants extension.



Sec.  2556.345  Who may present a grievance?

    (a) Under the VISTA program grievance procedure, a grievance may be

[[Page 864]]

presented by any individual who is currently enrolled as a VISTA in the 
VISTA program or who was enrolled as a VISTA in the VISTA program within 
the past 30 calendar days.
    (b) A VISTA's grievance shall not be construed as reflecting on the 
VISTA's standing, performance, or desirability as a VISTA.
    (c) A VISTA who presents a grievance shall not be subjected to 
restraint, interference, coercion, discrimination, or reprisal because 
of presentation of views.



Sec.  2556.350  What matters are considered grievances?

    (a) Under the VISTA program grievance procedure, grievances are 
matters of concern, brought by a VISTA, that arise out of, and directly 
affect, the VISTA's service situation or that arise out of a violation 
of a policy, practice, or regulation governing the terms or conditions 
of the VISTA's service, such that the violation results in the denial or 
infringement of a right or benefit to the VISTA member.
    (b) Matters not within the definition of a grievance as defined in 
paragraph (a) of this section are not grievable, and therefore, are 
excluded from the VISTA program grievance procedure. Though not 
exhaustive, examples of matters excluded from the VISTA program 
grievance procedure are:
    (1) Those matters related to a sponsor's or project's continuance or 
discontinuance; the number of VISTAs assigned to a VISTA project; the 
increases or decreases in the level of support provided to a VISTA 
project; the suspension or termination of a VISTA project; or the 
selection or retention of VISTA project staff.
    (2) Those matters for which a separate administrative procedure or 
complaint process is provided, such as early termination for cause, 
claims of discrimination during service, and federal worker's 
compensation claims filed for illness or injury sustained in the course 
of carrying out VISTA activities.
    (3) Those matters related to any law, published rule, regulation, 
policy, or procedure.
    (4) Those matters related to housing during a VISTA member's 
service.
    (5) Those matters which are, by law, subject to final administrative 
review outside CNCS.
    (6) Those matters related to actions taken, or not taken, by a VISTA 
sponsor or subrecipient, or CNCS, in compliance with or in order to 
fulfill the terms of a contract, grant, or other agreement related to 
the VISTA program.
    (7) Those matters related to the internal management of CNCS, unless 
such matters are shown to specifically and directly affect the VISTA's 
service situation or terms or conditions of his or her VISTA service.



Sec.  2556.355  May a VISTA have access to records as part of the VISTA 
grievance procedure?

    (a) A VISTA is entitled to review any material in his or her 
official VISTA file and any relevant CNCS records to the extent 
permitted by the Freedom of Information Act and the Privacy Act, 5 
U.S.C. 552, 552a. Examples of materials that may be withheld include 
references obtained under pledge of confidentiality, official VISTA 
files of other VISTAs, and privileged intra-agency documents.
    (b) A VISTA may review relevant materials in the possession of a 
sponsor to the extent such materials are disclosable by the sponsor 
under applicable freedom of information act and privacy laws.



Sec.  2556.360  How may a VISTA bring a grievance?

    (a) Bringing a grievance--Step 1. (1) While currently enrolled in 
the VISTA program, or enrolled in the VISTA program within the past 30 
calendar days, a VISTA may bring a grievance to the sponsor or 
subrecipient where he or she is assigned to serve within 15 calendar 
days that the event giving rise to the grievance occurs, or within 15 
calendar days after becoming aware of the event. If the grievance arises 
out of a continuing condition or practice that individually affects a 
VISTA, while enrolled the VISTA may bring it at any time while he or she 
is affected by a continuing condition or practice.
    (2) A VISTA brings a grievance by presenting it in writing to the 
executive director, or comparable individual,

[[Page 865]]

of the sponsoring organization where the VISTA is assigned, or to the 
sponsor's representative who is designated to receive grievances from a 
VISTA.
    (3) The sponsor shall review and respond in writing to the VISTA's 
grievance, within 10 calendar days of receipt of the written grievance. 
The sponsor may not fail to respond to a complaint raised by a VISTA on 
the basis that it is not an actual grievance, or that it is excluded 
from coverage as a grievance, but may, in the written response, dismiss 
the complaint and refuse to grant the relief requested on either of 
those grounds.
    (4) If the grievance brought by a VISTA involves a matter over which 
the sponsor has no substantial control or if the sponsor's 
representative is the supervisor of the VISTA, the VISTA may pass over 
the procedure set forth in paragraphs (a)(1) through (3) of this 
section, and present the grievance in writing directly to the State 
Program Director, as described in paragraph (b) of this section.
    (b) Bringing a grievance--Step 2. (1) If, after a VISTA brings a 
grievance as set forth in paragraphs (a)(1) and (2) of this section, the 
matter is not resolved, he or she may submit the grievance in writing to 
the appropriate State Program Director. The VISTA must submit the 
grievance to the State Program Director either:
    (i) Within seven calendar days of receipt of the response of the 
sponsor; or,
    (ii) In the event the sponsor has not issued a response to the VISTA 
within 10 calendar days of receipt of the written grievance, within 17 
calendar days.
    (2) If the grievance involves a matter over which either the sponsor 
or subrecipient has no substantial control or if the sponsor's 
representative is the supervisor of the VISTA, as described in paragraph 
(a)(4) of this section, the VISTA may pass over the procedure set forth 
in paragraphs (a)(1) through (3) of this section, and submit the 
grievance in writing directly to the State Program Director. In such a 
case, the VISTA must submit the grievance to the State Program Director 
within 15 calendar days of the event giving rise to the grievance 
occurs, or within 15 calendar days after becoming aware of the event.
    (3) Within ten working days of receipt of the grievance, the State 
Program Director shall respond in writing, regardless of whether or not 
the matter constitutes a grievance as defined under this grievance 
procedure, and/or is timely submitted. In the response, the State 
Program Director may determine that the matter submitted as a grievance 
is not grievable, is not considered a grievance, or fails to meet the 
time limit for response. If the State Program Director makes any such 
determination, he or she may dismiss the complaint, setting forth the 
reason(s) for the dismissal. In such a case, the State Program Director 
need not address the complaint on the merits, nor make a determination 
of the complaint on the merits.



Sec.  2556.365  May a VISTA appeal a grievance?

    (a) The VISTA may appeal in writing to the appropriate Area Manager 
the response of the State Program Director to the grievance, as set 
forth in Sec.  2556.360(b)(3). To be eligible to appeal a grievance 
response to the Area Manager, the VISTA must have exhausted all 
appropriate actions as set forth in Sec.  2556.360.
    (b) A VISTA's grievance appeal must be in writing and contain 
sufficient detail to identify the subject matter of the grievance, 
specify the relief requested, and be signed by the VISTA.
    (c) The VISTA must submit a grievance appeal to the appropriate Area 
Manager no later than 10 calendar days after the State Program Director 
issues his or her response to the grievance.
    (d) Certain matters contained in a grievance appeal may be rejected, 
rather than denied on the merits, by the Area Manager. A grievance 
appeal may be rejected, in whole or in part, for any of the following 
reasons:
    (1) The grievance appeal was not submitted to the appropriate Area 
Manager within the time limit specified in paragraph (c) of this 
section;
    (2) The grievance appeal consists of matters not contained within 
the definition of a grievance, as specified in section Sec.  
2556.350(a);

[[Page 866]]

    (3) The grievance appeal consists of matters excluded from the VISTA 
program grievance procedure, as specified in Sec.  2556.350(b); or
    (4) The grievance appeal contains matters that are moot, or for 
which relief has otherwise been granted.
    (e) Within 14 calendar days of receipt of the grievance, the 
appropriate Area Manager shall decide the grievance appeal on the 
merits, or reject the grievance appeal in whole or in part, or both, as 
appropriate. The Area Manager shall notify the VISTA in writing of the 
decision and specify the grounds for the appeal decision. The appeal 
decision shall include a statement of the basis for the decision and is 
a final decision of CNCS.



               Subpart E_Termination for Cause Procedures

    Authority: 42 U.S.C. 4953(b), (c), (f), and 5044(e).



Sec.  2556.400  What is termination for cause and what are the criteria 
for termination for cause?

    (a) Termination for cause is discharge of a VISTA from the VISTA 
program due to a deficiency, or deficiencies, in conduct or performance.
    (b) CNCS may terminate for cause a VISTA for any of the following 
reasons:
    (1) Conviction of any criminal offense under Federal, State, or 
local statute or ordinance;
    (2) Violation of any provision of the Domestic Service Volunteer Act 
of 1973, as amended, or any CNCS or VISTA program policy, regulation, or 
instruction;
    (3) Failure, refusal, or inability to perform prescribed project 
duties as outlined in the project plan, assignment description, or as 
directed by the sponsor to which the VISTA is assigned;
    (4) Involvement in activities which substantially interfere with the 
VISTA's performance of project duties;
    (5) Intentional false statement, misrepresentation, omission, fraud, 
or deception in seeking to obtain selection as a VISTA in the VISTA 
program;
    (6) Any conduct on the part of the VISTA which substantially 
diminishes his or her effectiveness as a VISTA; or
    (7) Unsatisfactory performance of an assignment.



Sec.  2556.405  Who has sole authority to remove a VISTA from a VISTA project 
and who has sole authority to terminate a VISTA from the VISTA program?

    (a) CNCS has the sole authority to remove a VISTA from a project 
where he or she has been assigned.
    (b) CNCS has the sole authority to terminate for cause, or otherwise 
terminate, a VISTA from the VISTA program.
    (c) Neither the sponsoring organization nor any of its subrecipients 
has the authority to remove a VISTA from a project or to terminate a 
VISTA for cause, or for any other basis, from the VISTA program.



Sec.  2556.410  May a sponsor request that a VISTA be removed from its project?

    (a) The head of a sponsoring organization, or his or her designee, 
may request that CNCS remove a VISTA assigned to its project. Any such 
request must be submitted in writing to the appropriate State Program 
Director and should state the reasons for the request.
    (b) The State Program Director may, at his or her discretion, 
attempt to resolve the situation with the sponsor so that an alternative 
solution other than removal of the VISTA from the project assignment is 
reached.
    (c) When an alternative solution, as referenced in paragraph (b) of 
this section, is not sought, or is not reached within a reasonable time 
period, the State Program Director shall remove the VISTA from the 
project.



Sec.  2556.415  May CNCS remove a VISTA from a project without the sponsor's 
request for removal?

    Of its own accord, CNCS may remove a VISTA from a project assignment 
without the sponsor's request for removal.

[[Page 867]]



Sec.  2556.420  What are termination for cause proceedings?

    (a) Termination for cause proceedings are initiated by the State 
Program Director when CNCS removes a VISTA from a project assignment due 
to an alleged deficiency, or alleged deficiencies, in conduct or 
performance.
    (b) The State Program Director or other CNCS State Office staff, to 
the extent practicable, communicates the matter with the VISTA who is 
removed from a VISTA project and the administrative procedures as set 
forth in paragraphs (c) through (e) of this section.
    (c) The State Program Director shall notify VISTA in writing of 
CNCS's proposal to terminate for cause. The written proposal to 
terminate him or her for cause must give the VISTA the reason(s) for the 
proposed termination, and notify him or her that he or she has 10 
calendar days within which to answer in writing the proposal to 
terminate him or her for cause, and to furnish any accompanying 
statements or written material. The VISTA must submit any answer to the 
appropriate State Program Director identified in the written proposal to 
terminate for cause within the deadline specified in the proposal to 
terminate for cause.
    (d) Within 10 calendar days of the expiration of the VISTA's 
deadline to answer the proposal to terminate for cause, the appropriate 
State Program Director shall issue a written decision regarding the 
proposal to terminate for cause.
    (1) If the decision is to terminate the VISTA for cause, the 
decision shall set forth the reasons for the determination and the 
effective date of termination (which may be on or after the date of the 
decision).
    (2) If the decision is not to terminate the VISTA for cause, the 
decision shall indicate that the proposal to terminate for cause is 
rescinded.
    (e) A VISTA who does not submit a timely answer to the appropriate 
State Program Director, as set forth in paragraph (c) of this section, 
is not entitled to appeal the decision regarding the proposal to 
terminate for cause. In such cases, CNCS may terminate the VISTA for 
cause, on the date identified in the decision, and the termination 
action is final.



Sec.  2556.425  May a VISTA appeal his or her termination for cause?

    (a) Within 10 calendar days of the appropriate State Program 
Director's issuance of the decision to terminate the VISTA for cause, as 
set forth in Sec.  2556.420(d), the VISTA may appeal the decision to the 
appropriate Area Manager. The appeal must be in writing and specify the 
reasons for the VISTA's disagreement with the decision.
    (b) CNCS shall not incur any expenses or travel allowances for the 
VISTA in connection with the preparation or presentation of the appeal.
    (c) The VISTA may have access to records as follows:
    (1) The VISTA may review any material in the VISTA's official CNCS 
file and any relevant CNCS records to the extent permitted by the 
Freedom of Information Act and the Privacy Act, 5 U.S.C. 552, 552a. 
Examples of documents that may be withheld include references obtained 
under pledge of confidentiality, official files of other program 
participants, and privileged intra-agency documents.
    (2) The VISTA may review relevant records in the possession of a 
sponsor to the extent such documents are disclosable by the sponsor 
under applicable freedom of information act and privacy laws.
    (d) Within 14 calendar days of receipt of any appeal by the VISTA, 
the Area Manager or equivalent CNCS official shall issue a written 
appeal determination. The appeal determination shall indicate the 
reasons for such an appeal determination. The appeal determination shall 
be final.



Sec.  2556.430  Is a VISTA who is terminated early from the VISTA program 
for other than cause entitled to appeal under these procedures?

    (a) Only a VISTA whose early termination from the VISTA program is 
for cause, and who has answered the proposal to terminate him or her for 
cause in a timely manner, as set forth in Sec.  2556.420(c), is entitled 
to appeal the early termination action, as referenced in Sec.  2556.425. 
A termination for cause is based on a deficiency, or deficiencies, in 
the performance or conduct of a VISTA.

[[Page 868]]

    (b) The following types of early terminations from the VISTA program 
are not terminations for cause, and are not entitled to appeal under the 
early termination appeal procedure set forth in Sec. Sec.  2556.420 and 
2556.425:
    (1) Resignation from the VISTA program prior to the issuance of a 
decision to terminate for cause, as set forth in Sec.  2556.420(d);
    (2) Early termination from the VISTA program because a VISTA did not 
secure a suitable reassignment to another project; and
    (3) Medical termination from the VISTA program.



                       Subpart F_Summer Associates

    Authority: 42 U.S.C. 4954(d), (e).



Sec.  2556.500  How is a position for a summer associate established 
in a project?

    (a) From time-to-time, the State Program Director invites sponsors 
within the state to apply for one or more positions for individuals to 
serve as summer associates at the sponsor's VISTA project.
    (b) Subject to VISTA assistance availability, CNCS approves the 
establishment of summer associate positions based on the following 
factors:
    (1) The need in the community, as demonstrated by the sponsor, for 
the performance of project activities by a summer associate(s);
    (2) The content and quality of summer associate project plans;
    (3) The capacity of the sponsor to implement the summer associate 
project activities; and
    (4) The sponsor's compliance with all applicable parts of the DVSA, 
VISTA program policy, and the sponsor's Memorandum of Agreement, which 
incorporates their project application.



Sec.  2556.505  How do summer associates differ from other VISTAs?

    Summer associates differ from other VISTAs in the following ways:
    (a) Summer associates are not eligible to receive:
    (1) Health care through a health benefits program provided by CNCS;
    (2) Child care support through a child care program provided by 
CNCS;
    (3) Payment for settling-in expenses; or
    (4) Non-competitive eligibility in accordance with 5 CFR 315.605.
    (b) Absent extraordinary circumstances, summer associates are not 
eligible to receive:
    (1) Payment for travel expenses incurred for travel to or from the 
project site to which the summer associate is assigned; or
    (2) A baggage allowance for the costs of transporting personal 
effects to or from the project site to which the summer associate is 
assigned to serve.
    (c) CNCS may discharge a summer associate due to a deficiency, or 
deficiencies, in conduct or performance. Summer associates are not 
subject to subpart E of this part, or to the grievance procedures 
provided to VISTAs set forth in Sec. Sec.  2556.345 through 2556.365.



                         Subpart G_VISTA Leaders

    Authority: 42 U.S.C. 4954(b).



Sec.  2556.600  How is a position for a leader established in a project, 
or in multiple projects within a contiguous geographic region?

    (a) At its discretion, CNCS may approve the establishment of a 
leader position based on the following factors:
    (1) The need for a leader in a project of a substantial size and 
with multiple VISTAs assigned to serve at that project, or the need for 
leader for multiple projects located within a contiguous geographic 
region.
    (2) The need for a leader to assist with the communication of VISTA 
policies and administrative procedures to VISTAs within a project, or 
throughout the multiple projects within a contiguous geographic region, 
as applicable.
    (3) The need for a leader to assist with the professional 
development of VISTAs within a project, or throughout the multiple 
projects within a contiguous geographic region, as applicable.
    (4) The need for a leader to assist with the recruitment and 
preparation for the arrival of VISTAs within a project, or throughout 
the multiple projects within a contiguous geographic region, as 
applicable.

[[Page 869]]

    (5) The capacity of the VISTA supervisor to support and guide the 
leader.
    (b) A sponsor may request, in its project application, that CNCS 
establish a leader position in its project.



Sec.  2556.605  Who is eligible to apply to serve as a leader?

    An individual is eligible to apply to serve as a leader if he or she 
has successfully completed any of the following:
    (a) At least one year of service as a VISTA;
    (b) At least one full term of service as a full-time AmeriCorps 
State and National member;
    (c) At least one full term of service as a member of the AmeriCorps 
National Civilian Community Corps (NCCC); or
    (d) At least one traditional term of service as a Peace Corps 
Volunteer.



Sec.  2556.610  What is the application process to apply to become a leader?

    (a) Application package. An eligible individual must apply in 
writing to CNCS to become a leader. The sponsor's recommendation and 
related materials, described in paragraph (b) of this section, must be 
included with the individual's application to become a leader.
    (b) Sponsor recommendation. A sponsor where an individual is seeking 
to serve as a leader must recommend in writing to CNCS the individual to 
become a leader. Included with the recommendation must be an evaluation 
of the individual's performance while in previous service, a description 
of specific tasks, responsibilities, qualifications, and other relevant 
information that justifies the placement of the individual in a leader 
position, and if appropriate, the establishment of a leader position.
    (c) Selection. CNCS shall have sole authority to select a leader. 
The criteria for selection shall include consideration of the 
individual's application and the sponsor's recommendation described in 
paragraph (b) of this section.



Sec.  2556.615  Who reviews a leader application and who approves 
or disapproves a leader application?

    CNCS reviews the application package for the leader position, 
considers the recommendation of the sponsor, and approves or disapproves 
the individual to serve as a leader.



Sec.  2556.620  How does a leader differ from other VISTAs?

    The application process to apply to become a leader, as described in 
Sec.  2556.610, is separate and distinct from the application process to 
apply to enroll as a VISTA in the VISTA program:
    (a) A leader may receive a living allowance computed at a higher 
daily rate than other VISTAs, as authorized under section 105(a)(1)(B) 
of the DVSA.
    (b) A leader is subject to all the terms and conditions of service 
described in Sec.  2556.625.



Sec.  2556.625  What are terms and conditions of service for a leader?

    Though not exhaustive, terms and conditions of service as a leader 
include:
    (a) A leader makes a full-time commitment to serve as a leader, 
without regard to regular working hours, for a minimum of one year.
    (b) To the maximum extent practicable, a leader shall live among and 
at the economic level of the low-income community served by the project 
and actively seek opportunities to engage with that low-income 
community.
    (c) A leader aids the communication of VISTA policies and 
administrative procedures to VISTAs.
    (d) A leader assists with the leadership development of VISTAs.
    (e) A leader is a resource in the development and delivery of 
training for VISTAs.
    (f) A leader may assist the sponsor with recruitment and preparation 
for the arrival of VISTAs.
    (g) A leader may advise a supervisor on potential problem areas and 
needs of VISTAs.
    (h) A leader aids VISTAs in the development of effective working 
relationships and understanding of VISTA program concepts.
    (i) A leader may aid the supervisor and sponsor in directing or 
focusing the VISTA project to best address the community's needs.
    (j) A leader may serve as a collector of data for performance 
measures of the project and the VISTAs.

[[Page 870]]

    (k) A leader is prohibited from supervising VISTAs. A leader is also 
prohibited from handling or managing, on behalf of the project, 
personnel-related matters affecting VISTAs. Personnel-related matters 
affecting VISTAs must be managed and handled by the project and in 
coordination with the appropriate CNCS State Office.



  Subpart H_Restrictions and Prohibitions on Political Activities and 
                                Lobbying

    Authority: 42 U.S.C. 4954(a), 5043, and 5055(b).



Sec.  2556.700  Who is covered by this subpart?

    (a) All VISTAs, including leaders and summer associates, are subject 
to this subpart.
    (b) All employees of VISTA sponsors and subrecipients, whose 
salaries or other compensation are paid, in whole or in part, with VISTA 
grant assistance are subject to this subpart.
    (c) All VISTA sponsors and subrecipients are subject to this 
subpart.



Sec.  2556.705  What is prohibited political activity?

    For purposes of the regulations in this subpart, ``prohibited 
political activity'' means an activity directed toward the success or 
failure of a political party, candidate for partisan political office, 
or partisan political group.



Sec.  2556.710  What political activities are VISTAs prohibited 
from engaging in?

    (a) A VISTA may not use his or her official authority or influence 
to interfere with or affect the result of an election.
    (b) A VISTA may not use his or her official authority or influence 
to coerce any individual to participate in political activity.
    (c) A VISTA may not use his or her official VISTA program title 
while participating in prohibited political activity.
    (d) A VISTA may not participate in prohibited political activities 
in the following circumstances:
    (1) While he or she is on duty;
    (2) While he or she is wearing an article of clothing, logo, 
insignia, or other similar item that identifies CNCS, the VISTA program, 
or one of CNCS's other national service programs;
    (3) While he or she is in any room or building occupied in the 
discharge of VISTA duties by an individual employed by the sponsor; and
    (4) While using a vehicle owned or leased by a sponsor or 
subrecipient, or while using a privately-owned vehicle in the discharge 
of VISTA duties.



Sec.  2556.715  What political activities may a VISTA participate in?

    (a) Provided that paragraph (b) of this section is fully adhered to, 
a VISTA may:
    (1) Express his or her opinion privately and publicly on political 
subjects;
    (2) Be politically active in connection with a question which is not 
specifically identified with a political party, such as a constitutional 
amendment, referendum, approval of a municipal ordinance, or any other 
question or issue of similar character;
    (3) Participate in the nonpartisan activities of a civic, community, 
social, labor, or professional organization, or of a similar 
organization; and
    (4) Participate fully in public affairs, except as prohibited by 
other Federal law, in a manner which does not compromise his or her 
efficiency or integrity as a VISTA, or compromise the neutrality, 
efficiency, or integrity of CNCS or the VISTA program.
    (b) A VISTA may participate in political activities set forth in 
paragraph (a) of this section as long as such participation:
    (1) Does not interfere with the performance of, or availability to 
perform, his or her assigned VISTA project duties;
    (2) Does not interfere with his or her provision of service in the 
VISTA program;
    (3) Is not conducted in a manner involving the use of VISTA 
assistance, resources or funds;
    (4) Would not result in the identification of the VISTA as being a 
participant in or otherwise associated with the VISTA program;

[[Page 871]]

    (5) Is not conducted during scheduled VISTA service hours; and
    (6) Does not interfere with the full-time commitment to remain 
available for VISTA service without regard to regular working hours, at 
all times during periods of service, except for authorized periods of 
leave.



Sec.  2556.720  May VISTAs participate in political organizations?

    (a) Provided that paragraph (b) of this section is fully adhered to, 
and in accordance with the prohibitions set forth in Sec.  2556.710, a 
VISTA may:
    (1) Be a member of a political party or other political group and 
participate in its activities;
    (2) Serve as an officer of a political party or other political 
group, a member of a national, State, or local committee of a political 
party, an officer or member of a committee of a political group, or be a 
candidate for any of these positions;
    (3) Attend and participate fully in the business of nominating 
caucuses of political parties;
    (4) Organize or reorganize a political party organization or 
political group;
    (5) Participate in a political convention, rally, or other political 
gathering; and
    (6) Serve as a delegate, alternate, or proxy to a political party 
convention.
    (b) A VISTA may participate in a political organization as long as 
such participation:
    (1) Does not interfere with the performance of, or availability to 
perform, his or her assigned VISTA project duties;
    (2) Does not interfere with the provision of service in the VISTA 
program;
    (3) Is not conducted in a manner involving the use of VISTA 
assistance, resources or funds;
    (4) Would not result in the identification of the VISTA as being a 
participant in or otherwise associated with the VISTA program;
    (5) Is not conducted during scheduled VISTA service hours; and
    (6) Does not interfere with the full-time commitment to remain 
available for VISTA service without regard to regular working hours, at 
all times during periods of service, except for authorized periods of 
leave.



Sec.  2556.725  May VISTAs participate in political campaigns?

    (a) Provided that paragraph (b) of this section is fully adhered to, 
and in accordance with the prohibitions set forth in Sec.  2556.710, a 
VISTA may:
    (1) Display pictures, signs, stickers, badges, or buttons associated 
with political parties, candidates for partisan political office, or 
partisan political groups, as long as these items are displayed in 
accordance with the prohibitions set forth in Sec.  2556.710;
    (2) Initiate or circulate a nominating petition for a candidate for 
partisan political office;
    (3) Canvass for votes in support of or in opposition to a partisan 
political candidate or a candidate for political party office;
    (4) Endorse or oppose a partisan political candidate or a candidate 
for political party office in a political advertisement, broadcast, 
campaign literature, or similar material; and
    (5) Address a convention caucus, rally, or similar gathering of a 
political party or political group in support of or in opposition to a 
partisan political candidate or a candidate for political party office.
    (b) A VISTA may participate in a political campaign as long as such 
participation:
    (1) Does not interfere with the performance of, or availability to 
perform, his or her assigned VISTA project duties;
    (2) Does not interfere with the provision of service in the VISTA 
program;
    (3) Is not conducted in a manner involving the use of VISTA 
assistance, resources or funds;
    (4) Would not result in the identification of the VISTA as being a 
participant in or otherwise associated with the VISTA program;
    (5) Is not conducted during scheduled VISTA service hours; and
    (6) Does not interfere with the full-time commitment to remain 
available for VISTA service without regard to regular working hours, at 
all times during periods of service, except for authorized periods of 
leave.

[[Page 872]]



Sec.  2556.730  May VISTAs participate in elections?

    (a) Provided that paragraph (b) of this section is fully adhered to, 
and in accordance with the prohibitions set forth in Sec.  2556.710, a 
VISTA may:
    (1) Register and vote in any election;
    (2) Act as recorder, watcher, challenger, or similar officer at 
polling places;
    (3) Serve as an election judge or clerk, or in a similar position; 
and
    (4) Drive voters to polling places for a partisan political 
candidate, partisan political group, or political party.
    (5) Participate in voter registration activities.
    (b) A VISTA may participate in elections as long as such 
participation:
    (1) Does not interfere with the performance of, or availability to 
perform, his or her assigned VISTA project duties;
    (2) Does not interfere with the provision of service in the VISTA 
program;
    (3) Is not conducted in a manner involving the use of VISTA 
assistance, resources or funds;
    (4) Would not result in the identification of the VISTA as being a 
participant in or otherwise associated with the VISTA program;
    (5) Is not conducted during scheduled VISTA service hours; and
    (6) Does not interfere with the full-time commitment to remain 
available for VISTA service without regard to regular working hours, at 
all times during periods of service, except for authorized periods of 
leave.



Sec.  2556.735  May a VISTA be a candidate for public office?

    (a) Except as provided in paragraph (c) of this section, no VISTA 
may run for the nomination to, or as a candidate for election to, 
partisan political office.
    (b) In accordance with the prohibitions set forth in Sec.  2556.710, 
a VISTA may participate in elections as long as such participation:
    (1) Does not interfere with the performance of, or availability to 
perform, his or her assigned VISTA project duties;
    (2) Does not interference with the provision of service in the VISTA 
program;
    (3) Is not conducted in a manner involving the use of VISTA 
assistance, resources or funds;
    (4) Would not result in the identification of the VISTA as being a 
participant in or otherwise associated with the VISTA program;
    (5) Is not conducted during scheduled VISTA service hours; and
    (6) Does not interfere with the full-time commitment to remain 
available for VISTA service without regard to regular working hours, at 
all times during periods of service, except for authorized periods of 
leave.
    (c) Provided that paragraphs (a) and (b) of this section are adhered 
to, and in accordance with the prohibitions set forth in Sec.  2556.710, 
a VISTA may:
    (1) Run as an independent candidate in a partisan election in 
designated U.S. municipalities and political subdivisions as set forth 
at 5 CFR part 733; and
    (2) Run as a candidate in a non-partisan election.



Sec.  2556.740  May VISTAs participate in political fundraising activities?

    (a) Provided that paragraphs (b) through (d) of this section are 
fully adhered to, and in accordance with the prohibitions set forth in 
Sec.  2556.710, a VISTA may:
    (1) Make a political contribution to a political party, political 
group, campaign committee of a candidate for public office in a partisan 
election;
    (2) Attend a political fundraiser; and
    (3) Solicit, accept, or receive uncompensated volunteer services for 
a political campaign from any individual.
    (b) A VISTA may participate in fundraising activities as long as 
such participation:
    (1) Does not interfere with the performance of, or availability to 
perform, his or her assigned VISTA project duties;
    (2) Does not interfere with the provision of service in the VISTA 
program;
    (3) Is not conducted in a manner involving the use of VISTA 
assistance, resources or funds;
    (4) Would not result in the identification of the VISTA as being a 
participant in or otherwise associated with the VISTA program;

[[Page 873]]

    (5) Is not conducted during scheduled VISTA service hours; and
    (6) Does not interfere with the full-time commitment to remain 
available for VISTA service without regard to regular working hours, at 
all times during periods of service, except for authorized periods of 
leave.
    (c) A VISTA may not knowingly:
    (1) Personally solicit, accept, or receive a political contribution 
from another individual;
    (2) Personally solicit political contributions in a speech or 
keynote address given at a fundraiser;
    (3) Allow his or her perceived or actual affiliation with the VISTA 
program, or his or her official title as a VISTA, to be used in 
connection with fundraising activities; or
    (4) Solicit, accept, or receive uncompensated individual volunteer 
services from a subordinate, (e.g., a leader may not solicit, accept or 
receive a political contribution from a VISTA).
    (d) Except for VISTAs who reside in municipalities or political 
subdivisions designated under 5 CFR part 733, no VISTA may accept or 
receive a political contribution on behalf of an individual who is a 
candidate for local partisan political office and who represents a 
political party.



Sec.  2556.745  Are VISTAs prohibited from soliciting or discouraging 
the political participation of certain individuals?

    (a) A VISTA may not knowingly solicit or discourage the 
participation in any political activity of any individual who has an 
application for any compensation, grant, contract, ruling, license, 
permit, or certificate pending before CNCS or the VISTA program.
    (b) A VISTA may not knowingly solicit or discourage the 
participation of any political activity of any individual who is the 
subject of, or a participant in, an ongoing audit, investigation, or 
enforcement action being carried out by or through CNCS or the VISTA 
program.



Sec.  2556.750  What restrictions and prohibitions are VISTAs subject 
to who campaign for a spouse or family member?

    A VISTA who is the spouse or family member of either a candidate for 
partisan political office, candidate for political party office, or 
candidate for public office in a nonpartisan election, is subject to the 
same restrictions and prohibitions as other VISTAs, as set forth in 
Sec.  2556.725.



Sec.  2556.755  May VISTAs participate in lawful demonstrations?

    In accordance with the prohibitions set forth in Sec.  2556.710, 
VISTAs may participate in lawful demonstrations, political rallies, and 
other political meetings, so long as such participation is in 
conformance with all of the following:
    (a) Occurs only while on authorized leave or while otherwise off 
duty;
    (b) Does not include attempting to represent, or representing the 
views of VISTAs or the VISTA program on any public issue;
    (c) Could not be reasonably understood by the community as being 
identified with the VISTA program, the project, or other elements of 
VISTA service; and
    (d) Does not interfere with the discharge of VISTA duties.



Sec.  2556.760  May a sponsor and subrecipient approve the participation 
of a VISTA in a demonstration or other political meeting?

    (a) No VISTA sponsor or subrecipient shall approve a VISTA to be 
involved in planning, initiating, participating in, or otherwise aiding 
or assisting in any demonstration or other political meeting.
    (b) If a VISTA sponsor or subrecipient which, subsequent to the 
receipt of any CNCS financial assistance, including the assignment of 
VISTAs, approves the participation of a VISTA in a demonstration or 
other political meeting, shall be subject to procedures related to the 
suspension or termination of such assistance, as provided in subpart B 
of this part, Sec. Sec.  2556.135 through 2556.140.



Sec.  2556.765  What disciplinary actions are VISTAs subject to for violating 
restrictions or prohibitions on political activities?

    Violations by a VISTA of any of the prohibitions or restrictions set 
forth in this subpart may warrant termination

[[Page 874]]

for cause, in accordance with proceedings set forth at Sec. Sec.  
2556.420, 2556.425, and 2556.430.



Sec.  2556.770  What are the requirements of VISTA sponsors and subrecipients 
regarding political activities?

    (a) All sponsors and subrecipients are required to:
    (1) Understand the restrictions and prohibitions on the political 
activities of VISTAs, as set forth in this subpart;
    (2) Provide training to VISTAs on all applicable restrictions and 
prohibitions on political activities, as set forth in this subpart, and 
use training materials that are consistent with these restrictions and 
prohibitions;
    (3) Monitor on a continuing basis the activity of VISTAs for 
compliance with this subpart; and
    (4) Report all violations, or questionable situations, immediately 
to the appropriate CNCS State Office.
    (b) Failure of a sponsor to comply with the requirements of this 
subpart, or a violation of the requirements contained in this subpart by 
the sponsor or subrecipient, sponsor or subrecipient's covered 
employees, agents, or VISTAs, may be deemed to be a material failure to 
comply with terms or conditions of the VISTA program. In such a case, 
the sponsor shall be subject to procedures related to the denial or 
reduction, or suspension or termination, of such assistance, as provided 
in Sec. Sec.  2556.125, 2556.130, and 2556.140.



Sec.  2556.775  What prohibitions and restrictions on political activity 
apply to employees of VISTA sponsors and subrecipients?

    All employees of VISTA sponsors and subrecipients, whose salaries or 
other compensation are paid, in whole or in part, with VISTA funds are 
subject to all applicable prohibitions and restrictions described in 
this subpart in the following circumstances:
    (a) Whenever they are engaged in an activity that is supported by 
CNCS or VISTA funds or assistance; and
    (b) Whenever they identify themselves as acting in their capacity as 
an official of a VISTA project that receives CNCS or VISTA funds or 
assistance, or could reasonably be perceived by others as acting in such 
a capacity.



Sec.  2556.780  What prohibitions on lobbying activities apply to VISTA 
sponsors and subrecipients?

    (a) No VISTA sponsor or subrecipient shall assign a VISTA to perform 
service or engage in activities related to influencing the passage or 
defeat of legislation or proposals by initiative petition.
    (b) No VISTA sponsor or subrecipient shall use any CNCS financial 
assistance, such as VISTA funds or the services of a VISTA, for any 
activity related to influencing the passage or defeat of legislation or 
proposals by initiative petition.

                       PARTS 2557	2599 [RESERVED]

[[Page 875]]



                              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.

  Table of CFR Titles and Chapters
  Alphabetical List of Agencies Appearing in the CFR
  List of CFR Sections Affected

[[Page 877]]



                    Table of CFR Titles and Chapters




                     (Revised as of October 1, 2021)

                      Title 1--General Provisions

         I  Administrative Committee of the Federal Register 
                (Parts 1--49)
        II  Office of the Federal Register (Parts 50--299)
       III  Administrative Conference of the United States (Parts 
                300--399)
        IV  Miscellaneous Agencies (Parts 400--599)
        VI  National Capital Planning Commission (Parts 600--699)

                    Title 2--Grants and Agreements

            Subtitle A--Office of Management and Budget Guidance 
                for Grants and Agreements
         I  Office of Management and Budget Governmentwide 
                Guidance for Grants and Agreements (Parts 2--199)
        II  Office of Management and Budget Guidance (Parts 200--
                299)
            Subtitle B--Federal Agency Regulations for Grants and 
                Agreements
       III  Department of Health and Human Services (Parts 300--
                399)
        IV  Department of Agriculture (Parts 400--499)
        VI  Department of State (Parts 600--699)
       VII  Agency for International Development (Parts 700--799)
      VIII  Department of Veterans Affairs (Parts 800--899)
        IX  Department of Energy (Parts 900--999)
         X  Department of the Treasury (Parts 1000--1099)
        XI  Department of Defense (Parts 1100--1199)
       XII  Department of Transportation (Parts 1200--1299)
      XIII  Department of Commerce (Parts 1300--1399)
       XIV  Department of the Interior (Parts 1400--1499)
        XV  Environmental Protection Agency (Parts 1500--1599)
     XVIII  National Aeronautics and Space Administration (Parts 
                1800--1899)
        XX  United States Nuclear Regulatory Commission (Parts 
                2000--2099)
      XXII  Corporation for National and Community Service (Parts 
                2200--2299)
     XXIII  Social Security Administration (Parts 2300--2399)
      XXIV  Department of Housing and Urban Development (Parts 
                2400--2499)
       XXV  National Science Foundation (Parts 2500--2599)
      XXVI  National Archives and Records Administration (Parts 
                2600--2699)

[[Page 878]]

     XXVII  Small Business Administration (Parts 2700--2799)
    XXVIII  Department of Justice (Parts 2800--2899)
      XXIX  Department of Labor (Parts 2900--2999)
       XXX  Department of Homeland Security (Parts 3000--3099)
      XXXI  Institute of Museum and Library Services (Parts 3100--
                3199)
     XXXII  National Endowment for the Arts (Parts 3200--3299)
    XXXIII  National Endowment for the Humanities (Parts 3300--
                3399)
     XXXIV  Department of Education (Parts 3400--3499)
      XXXV  Export-Import Bank of the United States (Parts 3500--
                3599)
     XXXVI  Office of National Drug Control Policy, Executive 
                Office of the President (Parts 3600--3699)
    XXXVII  Peace Corps (Parts 3700--3799)
     LVIII  Election Assistance Commission (Parts 5800--5899)
       LIX  Gulf Coast Ecosystem Restoration Council (Parts 5900--
                5999)

                        Title 3--The President

         I  Executive Office of the President (Parts 100--199)

                           Title 4--Accounts

         I  Government Accountability Office (Parts 1--199)

                   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  Office of Personnel Management and Office of the 
                Director of National Intelligence (Parts 1400--
                1499)
         V  The International Organizations Employees Loyalty 
                Board (Parts 1500--1599)
        VI  Federal Retirement Thrift Investment Board (Parts 
                1600--1699)
      VIII  Office of Special Counsel (Parts 1800--1899)
        IX  Appalachian Regional Commission (Parts 1900--1999)
        XI  Armed Forces Retirement Home (Parts 2100--2199)
       XIV  Federal Labor Relations Authority, General Counsel of 
                the Federal Labor Relations Authority and Federal 
                Service Impasses Panel (Parts 2400--2499)
       XVI  Office of Government Ethics (Parts 2600--2699)
       XXI  Department of the Treasury (Parts 3100--3199)
      XXII  Federal Deposit Insurance Corporation (Parts 3200--
                3299)
     XXIII  Department of Energy (Parts 3300--3399)
      XXIV  Federal Energy Regulatory Commission (Parts 3400--
                3499)
       XXV  Department of the Interior (Parts 3500--3599)
      XXVI  Department of Defense (Parts 3600--3699)

[[Page 879]]

    XXVIII  Department of Justice (Parts 3800--3899)
      XXIX  Federal Communications Commission (Parts 3900--3999)
       XXX  Farm Credit System Insurance Corporation (Parts 4000--
                4099)
      XXXI  Farm Credit Administration (Parts 4100--4199)
    XXXIII  U.S. International Development Finance Corporation 
                (Parts 4300--4399)
     XXXIV  Securities and Exchange Commission (Parts 4400--4499)
      XXXV  Office of Personnel Management (Parts 4500--4599)
     XXXVI  Department of Homeland Security (Parts 4600--4699)
    XXXVII  Federal Election Commission (Parts 4700--4799)
        XL  Interstate Commerce Commission (Parts 5000--5099)
       XLI  Commodity Futures Trading Commission (Parts 5100--
                5199)
      XLII  Department of Labor (Parts 5200--5299)
     XLIII  National Science Foundation (Parts 5300--5399)
       XLV  Department of Health and Human Services (Parts 5500--
                5599)
      XLVI  Postal Rate Commission (Parts 5600--5699)
     XLVII  Federal Trade Commission (Parts 5700--5799)
    XLVIII  Nuclear Regulatory Commission (Parts 5800--5899)
      XLIX  Federal Labor Relations Authority (Parts 5900--5999)
         L  Department of Transportation (Parts 6000--6099)
       LII  Export-Import Bank of the United States (Parts 6200--
                6299)
      LIII  Department of Education (Parts 6300--6399)
       LIV  Environmental Protection Agency (Parts 6400--6499)
        LV  National Endowment for the Arts (Parts 6500--6599)
       LVI  National Endowment for the Humanities (Parts 6600--
                6699)
      LVII  General Services Administration (Parts 6700--6799)
     LVIII  Board of Governors of the Federal Reserve System 
                (Parts 6800--6899)
       LIX  National Aeronautics and Space Administration (Parts 
                6900--6999)
        LX  United States Postal Service (Parts 7000--7099)
       LXI  National Labor Relations Board (Parts 7100--7199)
      LXII  Equal Employment Opportunity Commission (Parts 7200--
                7299)
     LXIII  Inter-American Foundation (Parts 7300--7399)
      LXIV  Merit Systems Protection Board (Parts 7400--7499)
       LXV  Department of Housing and Urban Development (Parts 
                7500--7599)
      LXVI  National Archives and Records Administration (Parts 
                7600--7699)
     LXVII  Institute of Museum and Library Services (Parts 7700--
                7799)
    LXVIII  Commission on Civil Rights (Parts 7800--7899)
      LXIX  Tennessee Valley Authority (Parts 7900--7999)
       LXX  Court Services and Offender Supervision Agency for the 
                District of Columbia (Parts 8000--8099)
      LXXI  Consumer Product Safety Commission (Parts 8100--8199)
    LXXIII  Department of Agriculture (Parts 8300--8399)

[[Page 880]]

     LXXIV  Federal Mine Safety and Health Review Commission 
                (Parts 8400--8499)
     LXXVI  Federal Retirement Thrift Investment Board (Parts 
                8600--8699)
    LXXVII  Office of Management and Budget (Parts 8700--8799)
      LXXX  Federal Housing Finance Agency (Parts 9000--9099)
   LXXXIII  Special Inspector General for Afghanistan 
                Reconstruction (Parts 9300--9399)
    LXXXIV  Bureau of Consumer Financial Protection (Parts 9400--
                9499)
    LXXXVI  National Credit Union Administration (Parts 9600--
                9699)
     XCVII  Department of Homeland Security Human Resources 
                Management System (Department of Homeland 
                Security--Office of Personnel Management) (Parts 
                9700--9799)
    XCVIII  Council of the Inspectors General on Integrity and 
                Efficiency (Parts 9800--9899)
      XCIX  Military Compensation and Retirement Modernization 
                Commission (Parts 9900--9999)
         C  National Council on Disability (Parts 10000--10049)
        CI  National Mediation Board (Parts 10100--10199)
       CII  U.S. Office of Special Counsel (Parts 10200--10299)

                      Title 6--Domestic Security

         I  Department of Homeland Security, Office of the 
                Secretary (Parts 1--199)
         X  Privacy and Civil Liberties Oversight Board (Parts 
                1000--1099)

                         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 Nutrition 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)
      VIII  Agricultural Marketing Service (Federal Grain 
                Inspection Service, Fair Trade Practices Program), 
                Department of Agriculture (Parts 800--899)

[[Page 881]]

        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  [Reserved]
      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)
        XX  [Reserved]
       XXV  Office of Advocacy and Outreach, Department of 
                Agriculture (Parts 2500--2599)
      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 Policy and New Uses, Department of 
                Agriculture (Parts 2900--2999)
       XXX  Office of the Chief Financial Officer, Department of 
                Agriculture (Parts 3000--3099)
      XXXI  Office of Environmental Quality, Department of 
                Agriculture (Parts 3100--3199)
     XXXII  Office of Procurement and Property Management, 
                Department of Agriculture (Parts 3200--3299)
    XXXIII  Office of Transportation, Department of Agriculture 
                (Parts 3300--3399)
     XXXIV  National Institute of Food and Agriculture (Parts 
                3400--3499)
      XXXV  Rural Housing Service, Department of Agriculture 
                (Parts 3500--3599)
     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)
       XLI  [Reserved]
      XLII  Rural Business-Cooperative Service and Rural Utilities 
                Service, Department of Agriculture (Parts 4200--
                4299)

[[Page 882]]

         L  Rural Business-Cooperative Service, and Rural 
                Utilities Service, Department of Agriculture 
                (Parts 5000--5099)

                    Title 8--Aliens and Nationality

         I  Department of Homeland Security (Parts 1--499)
         V  Executive Office for Immigration Review, Department of 
                Justice (Parts 1000--1399)

                 Title 9--Animals and Animal Products

         I  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 1--199)
        II  Agricultural Marketing Service (Fair Trade Practices 
                Program), Department of Agriculture (Parts 200--
                299)
       III  Food Safety and Inspection Service, Department of 
                Agriculture (Parts 300--599)

                           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)
      XIII  Nuclear Waste Technical Review Board (Parts 1300--
                1399)
      XVII  Defense Nuclear Facilities Safety Board (Parts 1700--
                1799)
     XVIII  Northeast Interstate Low-Level Radioactive Waste 
                Commission (Parts 1800--1899)

                      Title 11--Federal Elections

         I  Federal Election Commission (Parts 1--9099)
        II  Election Assistance Commission (Parts 9400--9499)

                      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  [Reserved]
        VI  Farm Credit Administration (Parts 600--699)
       VII  National Credit Union Administration (Parts 700--799)
      VIII  Federal Financing Bank (Parts 800--899)
        IX  [Reserved]
         X  Bureau of Consumer Financial Protection (Parts 1000--
                1099)

[[Page 883]]

        XI  Federal Financial Institutions Examination Council 
                (Parts 1100--1199)
       XII  Federal Housing Finance Agency (Parts 1200--1299)
      XIII  Financial Stability Oversight Council (Parts 1300--
                1399)
       XIV  Farm Credit System Insurance Corporation (Parts 1400--
                1499)
        XV  Department of the Treasury (Parts 1500--1599)
       XVI  Office of Financial Research, Department of the 
                Treasury (Parts 1600--1699)
      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)

               Title 13--Business Credit and Assistance

         I  Small Business Administration (Parts 1--199)
       III  Economic Development Administration, Department of 
                Commerce (Parts 300--399)
        IV  Emergency Steel Guarantee Loan Board (Parts 400--499)
         V  Emergency Oil and Gas Guaranteed Loan Board (Parts 
                500--599)

                    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--1199)
         V  National Aeronautics and Space Administration (Parts 
                1200--1299)
        VI  Air Transportation System Stabilization (Parts 1300--
                1399)

                 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 Industry and Security, Department of 
                Commerce (Parts 700--799)

[[Page 884]]

      VIII  Bureau of Economic Analysis, Department of Commerce 
                (Parts 800--899)
        IX  National Oceanic and Atmospheric Administration, 
                Department of Commerce (Parts 900--999)
        XI  National Technical Information Service, Department of 
                Commerce (Parts 1100--1199)
      XIII  East-West Foreign Trade Board (Parts 1300--1399)
       XIV  Minority Business Development Agency (Parts 1400--
                1499)
        XV  Office of the Under-Secretary for Economic Affairs, 
                Department of Commerce (Parts 1500--1599)
            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) [Reserved]

                    Title 16--Commercial Practices

         I  Federal Trade Commission (Parts 0--999)
        II  Consumer Product Safety Commission (Parts 1000--1799)

             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  U.S. Customs and Border Protection, Department of 
                Homeland Security; Department of the Treasury 
                (Parts 0--199)
        II  United States International Trade Commission (Parts 
                200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  U.S. Immigration and Customs Enforcement, Department 
                of Homeland Security (Parts 400--599) [Reserved]

[[Page 885]]

                     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  Office of Workers' Compensation Programs, 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 Service, 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)
        II  Agency for International Development (Parts 200--299)
       III  Peace Corps (Parts 300--399)
        IV  International Joint Commission, United States and 
                Canada (Parts 400--499)
         V  United States Agency for Global Media (Parts 500--599)
       VII  U.S. International Development Finance Corporation 
                (Parts 700--799)
        IX  Foreign Service Grievance Board (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  Millennium Challenge Corporation (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)

[[Page 886]]

                          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)
        IV  Office of Housing and Office of Multifamily Housing 
                Assistance Restructuring, Department of Housing 
                and Urban Development (Parts 400--499)
         V  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 500--599)
        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, Section 202 Direct Loan Program, Section 
                202 Supportive Housing for the Elderly Program and 
                Section 811 Supportive Housing for Persons With 
                Disabilities Program) (Parts 800--899)
        IX  Office of Assistant Secretary for Public and Indian 
                Housing, Department of Housing and Urban 
                Development (Parts 900--1699)
         X  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Interstate Land Sales 
                Registration Program) (Parts 1700--1799) 
                [Reserved]
       XII  Office of Inspector General, Department of Housing and 
                Urban Development (Parts 2000--2099)
        XV  Emergency Mortgage Insurance and Loan Programs, 
                Department of Housing and Urban Development (Parts 
                2700--2799) [Reserved]

[[Page 887]]

        XX  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 3200--3899)
      XXIV  Board of Directors of the HOPE for Homeowners Program 
                (Parts 4000--4099) [Reserved]
       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--899)
         V  Bureau of Indian Affairs, Department of the Interior, 
                and Indian Health Service, Department of Health 
                and Human Services (Part 900--999)
        VI  Office of the Assistant Secretary, Indian Affairs, 
                Department of the Interior (Parts 1000--1199)
       VII  Office of the Special Trustee for American Indians, 
                Department of the Interior (Parts 1200--1299)

                      Title 26--Internal Revenue

         I  Internal Revenue Service, Department of the Treasury 
                (Parts 1--End)

           Title 27--Alcohol, Tobacco Products and Firearms

         I  Alcohol and Tobacco Tax and Trade Bureau, Department 
                of the Treasury (Parts 1--399)
        II  Bureau of Alcohol, Tobacco, Firearms, and Explosives, 
                Department of Justice (Parts 400--799)

                   Title 28--Judicial Administration

         I  Department of Justice (Parts 0--299)
       III  Federal Prison Industries, Inc., Department of Justice 
                (Parts 300--399)
         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)
      VIII  Court Services and Offender Supervision Agency for the 
                District of Columbia (Parts 800--899)
        IX  National Crime Prevention and Privacy Compact Council 
                (Parts 900--999)

[[Page 888]]

        XI  Department of Justice and Department of State (Parts 
                1100--1199)

                            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 Standards, 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  Employee Benefits Security 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  Bureau of Safety and Environmental Enforcement, 
                Department of the Interior (Parts 200--299)
        IV  Geological Survey, Department of the Interior (Parts 
                400--499)
         V  Bureau of Ocean Energy Management, Department of the 
                Interior (Parts 500--599)
       VII  Office of Surface Mining Reclamation and Enforcement, 
                Department of the Interior (Parts 700--999)
       XII  Office of Natural Resources Revenue, Department of the 
                Interior (Parts 1200--1299)

                 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

[[Page 889]]

         I  Monetary Offices, Department of the Treasury (Parts 
                51--199)
        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 Investment Security, Department of the 
                Treasury (Parts 800--899)
        IX  Federal Claims Collection Standards (Department of the 
                Treasury--Department of Justice) (Parts 900--999)
         X  Financial Crimes Enforcement Network, Department of 
                the Treasury (Parts 1000--1099)

                      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  Department of Defense, Defense Logistics Agency (Parts 
                1200--1299)
       XVI  Selective Service System (Parts 1600--1699)
      XVII  Office of the Director of National Intelligence (Parts 
                1700--1799)
     XVIII  National Counterintelligence Center (Parts 1800--1899)
       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)

               Title 33--Navigation and Navigable Waters

         I  Coast Guard, Department of Homeland Security (Parts 
                1--199)
        II  Corps of Engineers, Department of the Army, Department 
                of Defense (Parts 200--399)
        IV  Great Lakes St. Lawrence Seaway Development 
                Corporation, Department of Transportation (Parts 
                400--499)

[[Page 890]]

                          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)
       III  Office of Special Education and Rehabilitative 
                Services, Department of Education (Parts 300--399)
        IV  Office of Career, Technical, and Adult Education, 
                Department of Education (Parts 400--499)
         V  Office of Bilingual Education and Minority Languages 
                Affairs, Department of Education (Parts 500--599) 
                [Reserved]
        VI  Office of Postsecondary Education, Department of 
                Education (Parts 600--699)
       VII  Office of Educational Research and Improvement, 
                Department of Education (Parts 700--799) 
                [Reserved]
            Subtitle C--Regulations Relating to Education
        XI  [Reserved]
       XII  National Council on Disability (Parts 1200--1299)

                          Title 35 [Reserved]

             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)
        VI  [Reserved]
       VII  Library of Congress (Parts 700--799)
      VIII  Advisory Council on Historic Preservation (Parts 800--
                899)
        IX  Pennsylvania Avenue Development Corporation (Parts 
                900--999)
         X  Presidio Trust (Parts 1000--1099)
        XI  Architectural and Transportation Barriers Compliance 
                Board (Parts 1100--1199)
       XII  National Archives and Records Administration (Parts 
                1200--1299)
        XV  Oklahoma City National Memorial Trust (Parts 1500--
                1599)
       XVI  Morris K. Udall Scholarship and Excellence in National 
                Environmental Policy Foundation (Parts 1600--1699)

             Title 37--Patents, Trademarks, and Copyrights

         I  United States Patent and Trademark Office, Department 
                of Commerce (Parts 1--199)
        II  U.S. Copyright Office, Library of Congress (Parts 
                200--299)

[[Page 891]]

       III  Copyright Royalty Board, Library of Congress (Parts 
                300--399)
        IV  National Institute of Standards and Technology, 
                Department of Commerce (Parts 400--599)

           Title 38--Pensions, Bonuses, and Veterans' Relief

         I  Department of Veterans Affairs (Parts 0--199)
        II  Armed Forces Retirement Home (Parts 200--299)

                       Title 39--Postal Service

         I  United States Postal Service (Parts 1--999)
       III  Postal Regulatory Commission (Parts 3000--3099)

                  Title 40--Protection of Environment

         I  Environmental Protection Agency (Parts 1--1099)
        IV  Environmental Protection Agency and Department of 
                Justice (Parts 1400--1499)
         V  Council on Environmental Quality (Parts 1500--1599)
        VI  Chemical Safety and Hazard Investigation Board (Parts 
                1600--1699)
       VII  Environmental Protection Agency and Department of 
                Defense; Uniform National Discharge Standards for 
                Vessels of the Armed Forces (Parts 1700--1799)
      VIII  Gulf Coast Ecosystem Restoration Council (Parts 1800--
                1899)
        IX  Federal Permitting Improvement Steering Council (Part 
                1900)

          Title 41--Public Contracts and Property Management

            Subtitle A--Federal Procurement Regulations System 
                [Note]
            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 Service, Department of 
                Labor (Parts 61-1--61-999)
   62--100  [Reserved]
            Subtitle C--Federal Property Management Regulations 
                System
       101  Federal Property Management Regulations (Parts 101-1--
                101-99)
       102  Federal Management Regulation (Parts 102-1--102-299)
  103--104  [Reserved]
       105  General Services Administration (Parts 105-1--105-999)

[[Page 892]]

       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)
  129--200  [Reserved]
            Subtitle D--Other Provisions Relating to Property 
                Management
       201  Federal Acquisition Security Council (Part 201)
            Subtitle E [Reserved]
            Subtitle F--Federal Travel Regulation System
       300  General (Parts 300-1--300-99)
       301  Temporary Duty (TDY) 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 (Part 303-1--303-99)
       304  Payment of Travel Expenses from a Non-Federal Source 
                (Parts 304-1--304-99)

                        Title 42--Public Health

         I  Public Health Service, Department of Health and Human 
                Services (Parts 1--199)
   II--III  [Reserved]
        IV  Centers for Medicare & Medicaid Services, Department 
                of Health and Human Services (Parts 400--699)
         V  Office of Inspector General-Health Care, Department of 
                Health and Human Services (Parts 1000--1099)

                   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 400--999)
        II  Bureau of Land Management, Department of the Interior 
                (Parts 1000--9999)
       III  Utah Reclamation Mitigation and Conservation 
                Commission (Parts 10000--10099)

             Title 44--Emergency Management and Assistance

         I  Federal Emergency Management Agency, Department of 
                Homeland Security (Parts 0--399)
        IV  Department of Commerce and Department of 
                Transportation (Parts 400--499)

[[Page 893]]

                       Title 45--Public Welfare

            Subtitle A--Department of Health and Human Services 
                (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)
        IX  Denali Commission (Parts 900--999)
         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  Corporation for National and Community Service (Parts 
                1200--1299)
      XIII  Administration for Children and Families, 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 of Fine Arts (Parts 2100--2199)
     XXIII  Arctic Research Commission (Parts 2300--2399)
      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 Homeland Security (Parts 
                1--199)
        II  Maritime Administration, Department of Transportation 
                (Parts 200--399)
       III  Coast Guard (Great Lakes Pilotage), Department of 
                Homeland Security (Parts 400--499)
        IV  Federal Maritime Commission (Parts 500--599)

[[Page 894]]

                      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)
        IV  National Telecommunications and Information 
                Administration, Department of Commerce, and 
                National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 400--499)
         V  The First Responder Network Authority (Parts 500--599)

           Title 48--Federal Acquisition Regulations System

         1  Federal Acquisition Regulation (Parts 1--99)
         2  Defense Acquisition Regulations System, 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  Broadcasting Board of Governors (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)
        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)
        30  Department of Homeland Security, Homeland Security 
                Acquisition Regulation (HSAR) (Parts 3000--3099)
        34  Department of Education Acquisition Regulation (Parts 
                3400--3499)

[[Page 895]]

        51  Department of the Army Acquisition Regulations (Parts 
                5100--5199) [Reserved]
        52  Department of the Navy Acquisition Regulations (Parts 
                5200--5299)
        53  Department of the Air Force Federal Acquisition 
                Regulation Supplement (Parts 5300--5399) 
                [Reserved]
        54  Defense Logistics Agency, Department of Defense (Parts 
                5400--5499)
        57  African Development Foundation (Parts 5700--5799)
        61  Civilian Board of Contract Appeals, General Services 
                Administration (Parts 6100--6199)
        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  Pipeline and Hazardous Materials Safety 
                Administration, Department of Transportation 
                (Parts 100--199)
        II  Federal Railroad Administration, Department of 
                Transportation (Parts 200--299)
       III  Federal Motor Carrier Safety Administration, 
                Department of Transportation (Parts 300--399)
        IV  Coast Guard, Department of Homeland Security (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 (Parts 1000--1399)
        XI  Research and Innovative Technology Administration, 
                Department of Transportation (Parts 1400--1499) 
                [Reserved]
       XII  Transportation Security Administration, Department of 
                Homeland Security (Parts 1500--1699)

                   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 Fishing and Related Activities (Parts 
                300--399)

[[Page 896]]

        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)

[[Page 897]]





           Alphabetical List of Agencies Appearing in the CFR




                     (Revised as of October 1, 2021)

                                                  CFR Title, Subtitle or 
                     Agency                               Chapter

Administrative Conference of the United States    1, III
Advisory Council on Historic Preservation         36, VIII
Advocacy and Outreach, Office of                  7, XXV
Afghanistan Reconstruction, Special Inspector     5, LXXXIII
     General for
African Development Foundation                    22, XV
  Federal Acquisition Regulation                  48, 57
Agency for International Development              2, VII; 22, II
  Federal Acquisition Regulation                  48, 7
Agricultural Marketing Service                    7, I, VIII, IX, X, XI; 9, 
                                                  II
Agricultural Research Service                     7, V
Agriculture, Department of                        2, IV; 5, LXXIII
  Advocacy and Outreach, Office of                7, XXV
  Agricultural Marketing Service                  7, I, VIII, IX, X, XI; 9, 
                                                  II
  Agricultural Research Service                   7, V
  Animal and Plant Health Inspection Service      7, III; 9, I
  Chief Financial Officer, Office of              7, XXX
  Commodity Credit Corporation                    7, XIV
  Economic Research Service                       7, XXXVII
  Energy Policy and New Uses, Office of           2, IX; 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
  Food and Nutrition Service                      7, II
  Food Safety and Inspection Service              9, III
  Foreign Agricultural Service                    7, XV
  Forest Service                                  36, II
  Information Resources Management, Office of     7, XXVII
  Inspector General, Office of                    7, XXVI
  National Agricultural Library                   7, XLI
  National Agricultural Statistics Service        7, XXXVI
  National Institute of Food and Agriculture      7, XXXIV
  Natural Resources Conservation Service          7, VI
  Operations, Office of                           7, XXVIII
  Procurement and Property Management, Office of  7, XXXII
  Rural Business-Cooperative Service              7, XVIII, XLII
  Rural Development Administration                7, XLII
  Rural Housing Service                           7, XVIII, XXXV
  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 of                          32, VII
  Federal Acquisition Regulation Supplement       48, 53
Air Transportation Stabilization Board            14, VI
Alcohol and Tobacco Tax and Trade Bureau          27, I
Alcohol, Tobacco, Firearms, and Explosives,       27, II
     Bureau of
AMTRAK                                            49, VII
American Battle Monuments Commission              36, IV
American Indians, Office of the Special Trustee   25, VII
Animal and Plant Health Inspection Service        7, III; 9, I
Appalachian Regional Commission                   5, IX
Architectural and Transportation Barriers         36, XI
   Compliance Board
[[Page 898]]

Arctic Research Commission                        45, XXIII
Armed Forces Retirement Home                      5, XI; 38, II
Army, Department of                               32, V
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 51
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
  Federal Acquisition Regulation                  48, 19
Career, Technical, and Adult Education, Office    34, IV
     of
Census Bureau                                     15, I
Centers for Medicare & Medicaid Services          42, IV
Central Intelligence Agency                       32, XIX
Chemical Safety and Hazard Investigation Board    40, VI
Chief Financial Officer, Office of                7, XXX
Child Support Enforcement, Office of              45, III
Children and Families, Administration for         45, II, III, IV, X, XIII
Civil Rights, Commission on                       5, LXVIII; 45, VII
Civil Rights, Office for                          34, I
Coast Guard                                       33, I; 46, I; 49, IV
Coast Guard (Great Lakes Pilotage)                46, III
Commerce, Department of                           2, XIII; 44, IV; 50, VI
  Census Bureau                                   15, I
  Economic Affairs, Office of the Under-          15, XV
       Secretary for
  Economic Analysis, Bureau of                    15, VIII
  Economic Development Administration             13, III
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 13
  Foreign-Trade Zones Board                       15, IV
  Industry and Security, Bureau of                15, VII
  International Trade Administration              15, III; 19, III
  National Institute of Standards and Technology  15, II; 37, IV
  National Marine Fisheries Service               50, II, IV
  National Oceanic and Atmospheric                15, IX; 50, II, III, IV, 
       Administration                             VI
  National Technical Information Service          15, XI
  National Telecommunications and Information     15, XXIII; 47, III, IV
       Administration
  National Weather Service                        15, IX
  Patent and Trademark Office, United States      37, I
  Secretary of Commerce, Office of                15, Subtitle A
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 Financial Protection Bureau              5, LXXXIV; 12, X
Consumer Product Safety Commission                5, LXXI; 16, II
Copyright Royalty Board                           37, III
Corporation for National and Community Service    2, XXII; 45, XII, XXV
Cost Accounting Standards Board                   48, 99
Council on Environmental Quality                  40, V
Council of the Inspectors General on Integrity    5, XCVIII
     and Efficiency
Court Services and Offender Supervision Agency    5, LXX; 28, VIII
     for the District of Columbia
Customs and Border Protection                     19, I
Defense, Department of                            2, XI; 5, XXVI; 32, 
                                                  Subtitle A; 40, VII
  Advanced Research Projects Agency               32, I
  Air Force Department                            32, VII
  Army Department                                 32, V; 33, II; 36, III; 
                                                  48, 51
  Defense Acquisition Regulations System          48, 2
  Defense Intelligence Agency                     32, I

[[Page 899]]

  Defense Logistics Agency                        32, I, XII; 48, 54
  Engineers, Corps of                             33, II; 36, III
  National Imagery and Mapping Agency             32, I
  Navy, Department of                             32, VI; 48, 52
  Secretary of Defense, Office of                 2, XI; 32, I
Defense Contract Audit Agency                     32, I
Defense Intelligence Agency                       32, I
Defense Logistics Agency                          32, XII; 48, 54
Defense Nuclear Facilities Safety Board           10, XVII
Delaware River Basin Commission                   18, III
Denali Commission                                 45, IX
Disability, National Council on                   5, C; 34, XII
District of Columbia, Court Services and          5, LXX; 28, VIII
     Offender Supervision Agency for the
Drug Enforcement Administration                   21, II
East-West Foreign Trade Board                     15, XIII
Economic Affairs, Office of the Under-Secretary   15, XV
     for
Economic Analysis, Bureau of                      15, VIII
Economic Development Administration               13, III
Economic Research Service                         7, XXXVII
Education, Department of                          2, XXXIV; 5, LIII
  Bilingual Education and Minority Languages      34, V
       Affairs, Office of
  Career, Technical, and Adult Education, Office  34, IV
       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
Educational Research and Improvement, Office of   34, VII
Election Assistance Commission                    2, LVIII; 11, II
Elementary and Secondary Education, Office of     34, II
Emergency Oil and Gas Guaranteed Loan Board       13, V
Emergency Steel Guarantee Loan Board              13, IV
Employee Benefits Security Administration         29, XXV
Employees' Compensation Appeals Board             20, IV
Employees Loyalty Board                           5, V
Employment and Training Administration            20, V
Employment Policy, National Commission for        1, IV
Employment Standards Administration               20, VI
Endangered Species Committee                      50, IV
Energy, Department of                             2, IX; 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
Environmental Protection Agency                   2, XV; 5, LIV; 40, I, IV, 
                                                  VII
  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
  Environmental Quality, Council on               40, V
  Management and Budget, Office of                2, Subtitle A; 5, III, 
                                                  LXXVII; 14, VI; 48, 99
  National Drug Control Policy, Office of         2, XXXVI; 21, III
  National Security Council                       32, XXI; 47, II
  Presidential Documents                          3
  Science and Technology Policy, Office of        32, XXIV; 47, II
  Trade Representative, Office of the United      15, XX
     States
[[Page 900]]

Export-Import Bank of the United States           2, XXXV; 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
Farm Service Agency                               7, VII, XVIII
Federal Acquisition Regulation                    48, 1
Federal Aviation Administration                   14, I
  Commercial Space Transportation                 14, III
Federal Claims Collection Standards               31, IX
Federal Communications Commission                 5, XXIX; 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                       5, XXXVII; 11, I
Federal Emergency Management Agency               44, I
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
Federal Home Loan Mortgage Corporation            1, IV
Federal Housing Enterprise Oversight Office       12, XVII
Federal Housing Finance Agency                    5, LXXX; 12, XII
Federal Labor Relations Authority                 5, XIV, XLIX; 22, XIV
Federal Law Enforcement Training Center           31, VII
Federal Management Regulation                     41, 102
Federal Maritime Commission                       46, IV
Federal Mediation and Conciliation Service        29, XII
Federal Mine Safety and Health Review Commission  5, LXXIV; 29, XXVII
Federal Motor Carrier Safety Administration       49, III
Federal Permitting Improvement Steering Council   40, IX
Federal Prison Industries, Inc.                   28, III
Federal Procurement Policy Office                 48, 99
Federal Property Management Regulations           41, 101
Federal Railroad Administration                   49, II
Federal Register, Administrative Committee of     1, I
Federal Register, Office of                       1, II
Federal Reserve System                            12, II
  Board of Governors                              5, LVIII
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
Financial Crimes Enforcement Network              31, X
Financial Research Office                         12, XVI
Financial Stability Oversight Council             12, XIII
Fine Arts, Commission of                          45, XXI
Fiscal Service                                    31, II
Fish and Wildlife Service, United States          50, I, IV
Food and Drug Administration                      21, I
Food and Nutrition 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 Services Administration                   5, LVII; 41, 105
  Contract Appeals, Board of                      48, 61
  Federal Acquisition Regulation                  48, 5
  Federal Management Regulation                   41, 102

[[Page 901]]

  Federal Property Management Regulations         41, 101
  Federal Travel Regulation System                41, Subtitle F
  General                                         41, 300
  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
  Temporary Duty (TDY) Travel Allowances          41, 301
Geological Survey                                 30, IV
Government Accountability Office                  4, I
Government Ethics, Office of                      5, XVI
Government National Mortgage Association          24, III
Grain Inspection, Packers and Stockyards          7, VIII; 9, II
     Administration
Great Lakes St. Lawrence Seaway Development       33, IV
     Corporation
Gulf Coast Ecosystem Restoration Council          2, LIX; 40, VIII
Harry S. Truman Scholarship Foundation            45, XVIII
Health and Human Services, Department of          2, III; 5, XLV; 45, 
                                                  Subtitle A
  Centers for Medicare & Medicaid Services        42, IV
  Child Support Enforcement, Office of            45, III
  Children and Families, Administration for       45, II, III, IV, X, XIII
  Community Services, Office of                   45, X
  Family Assistance, Office of                    45, II
  Federal Acquisition Regulation                  48, 3
  Food and Drug Administration                    21, I
  Indian Health Service                           25, V
  Inspector General (Health Care), Office of      42, V
  Public Health Service                           42, I
  Refugee Resettlement, Office of                 45, IV
Homeland Security, Department of                  2, XXX; 5, XXXVI; 6, I; 8, 
                                                  I
  Coast Guard                                     33, I; 46, I; 49, IV
  Coast Guard (Great Lakes Pilotage)              46, III
  Customs and Border Protection                   19, I
  Federal Emergency Management Agency             44, I
  Human Resources Management and Labor Relations  5, XCVII
       Systems
  Immigration and Customs Enforcement Bureau      19, IV
  Transportation Security Administration          49, XII
HOPE for Homeowners Program, Board of Directors   24, XXIV
     of
Housing, Office of, and Multifamily Housing       24, IV
     Assistance Restructuring, Office of
Housing and Urban Development, Department of      2, XXIV; 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
  Housing, Office of, and Multifamily Housing     24, IV
       Assistance Restructuring, Office of
  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
Housing, Office of, and Multifamily Housing       24, IV
     Assistance Restructuring, Office of
Immigration and Customs Enforcement Bureau        19, IV
Immigration Review, Executive Office for          8, V
Independent Counsel, Office of                    28, VII
Independent Counsel, Offices of                   28, VI
Indian Affairs, Bureau of                         25, I, V
Indian Affairs, Office of the Assistant           25, VI
   Secretary
[[Page 902]]

Indian Arts and Crafts Board                      25, II
Indian Health Service                             25, V
Industry and Security, Bureau of                  15, VII
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, XV
Institute of Peace, United States                 22, XVII
Inter-American Foundation                         5, LXIII; 22, X
Interior, Department of                           2, XIV
  American Indians, Office of the Special         25, VII
       Trustee
  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
  Indian Arts and Crafts Board                    25, II
  Land Management, Bureau of                      43, II
  National Indian Gaming Commission               25, III
  National Park Service                           36, I
  Natural Resource Revenue, Office of             30, XII
  Ocean Energy Management, Bureau of              30, V
  Reclamation, Bureau of                          43, I
  Safety and Environmental Enforcement, Bureau    30, II
       of
  Secretary of the Interior, Office of            2, XIV; 43, Subtitle A
  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, United States Agency   22, II
     for
  Federal Acquisition Regulation                  48, 7
International Development Cooperation Agency,     22, XII
     United States
International Development Finance Corporation,    5, XXXIII; 22, VII
     U.S.
International Joint Commission, United States     22, IV
     and Canada
International Organizations Employees Loyalty     5, V
     Board
International Trade Administration                15, III; 19, III
International Trade Commission, United States     19, II
Interstate Commerce Commission                    5, XL
Investment Security, Office of                    31, VIII
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 of                            2, XXVIII; 5, XXVIII; 28, 
                                                  I, XI; 40, IV
  Alcohol, Tobacco, Firearms, and Explosives,     27, II
       Bureau of
  Drug Enforcement Administration                 21, II
  Federal Acquisition Regulation                  48, 28
  Federal Claims Collection Standards             31, IX
  Federal Prison Industries, Inc.                 28, III
  Foreign Claims Settlement Commission of the     45, V
       United States
  Immigration Review, Executive Office for        8, V
  Independent Counsel, Offices of                 28, VI
  Prisons, Bureau of                              28, V
  Property Management Regulations                 41, 128
Labor, Department of                              2, XXIX; 5, XLII
  Benefits Review Board                           20, VII
  Employee Benefits Security Administration       29, XXV
  Employees' Compensation Appeals Board           20, IV
  Employment and Training Administration          20, V
  Federal Acquisition Regulation                  48, 29

[[Page 903]]

  Federal Contract Compliance Programs, Office    41, 60
       of
  Federal Procurement Regulations System          41, 50
  Labor-Management Standards, Office of           29, II, IV
  Mine Safety and Health Administration           30, I
  Occupational Safety and Health Administration   29, XVII
  Public Contracts                                41, 50
  Secretary of Labor, Office of                   29, Subtitle A
  Veterans' Employment and Training Service,      41, 61; 20, IX
       Office of the Assistant Secretary for
  Wage and Hour Division                          29, V
  Workers' Compensation Programs, Office of       20, I, VI
Labor-Management Standards, Office of             29, II, IV
Land Management, Bureau of                        43, II
Legal Services Corporation                        45, XVI
Libraries and Information Science, National       45, XVII
     Commission on
Library of Congress                               36, VII
  Copyright Royalty Board                         37, III
  U.S. Copyright Office                           37, II
Management and Budget, Office of                  5, III, LXXVII; 14, VI; 
                                                  48, 99
Marine Mammal Commission                          50, V
Maritime Administration                           46, II
Merit Systems Protection Board                    5, II, LXIV
Micronesian Status Negotiations, Office for       32, XXVII
Military Compensation and Retirement              5, XCIX
     Modernization Commission
Millennium Challenge Corporation                  22, XIII
Mine Safety and Health Administration             30, I
Minority Business Development Agency              15, XIV
Miscellaneous Agencies                            1, IV
Monetary Offices                                  31, I
Morris K. Udall Scholarship and Excellence in     36, XVI
     National Environmental Policy Foundation
Museum and Library Services, Institute of         2, XXXI
National Aeronautics and Space Administration     2, XVIII; 5, LIX; 14, V
  Federal Acquisition Regulation                  48, 18
National Agricultural Library                     7, XLI
National Agricultural Statistics Service          7, XXXVI
National and Community Service, Corporation for   2, XXII; 45, XII, XXV
National Archives and Records Administration      2, XXVI; 5, LXVI; 36, XII
  Information Security Oversight Office           32, XX
National Capital Planning Commission              1, IV, VI
National Counterintelligence Center               32, XVIII
National Credit Union Administration              5, LXXXVI; 12, VII
National Crime Prevention and Privacy Compact     28, IX
     Council
National Drug Control Policy, Office of           2, XXXVI; 21, III
National Endowment for the Arts                   2, XXXII
National Endowment for the Humanities             2, XXXIII
National Foundation on the Arts and the           45, XI
     Humanities
National Geospatial-Intelligence Agency           32, I
National Highway Traffic Safety Administration    23, II, III; 47, VI; 49, V
National Imagery and Mapping Agency               32, I
National Indian Gaming Commission                 25, III
National Institute of Food and Agriculture        7, XXXIV
National Institute of Standards and Technology    15, II; 37, IV
National Intelligence, Office of Director of      5, IV; 32, XVII
National Labor Relations Board                    5, LXI; 29, I
National Marine Fisheries Service                 50, II, IV
National Mediation Board                          5, CI; 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                       2, XXV; 5, XLIII; 45, VI
  Federal Acquisition Regulation                  48, 25
National Security Council                         32, XXI; 47, II

[[Page 904]]

National Technical Information Service            15, XI
National Telecommunications and Information       15, XXIII; 47, III, IV, V
     Administration
National Transportation Safety Board              49, VIII
Natural Resource Revenue, Office of               30, XII
Natural Resources Conservation Service            7, VI
Navajo and Hopi Indian Relocation, Office of      25, IV
Navy, Department of                               32, VI
  Federal Acquisition Regulation                  48, 52
Neighborhood Reinvestment Corporation             24, XXV
Northeast Interstate Low-Level Radioactive Waste  10, XVIII
     Commission
Nuclear Regulatory Commission                     2, XX; 5, XLVIII; 10, I
  Federal Acquisition Regulation                  48, 20
Occupational Safety and Health Administration     29, XVII
Occupational Safety and Health Review Commission  29, XX
Ocean Energy Management, Bureau of                30, V
Oklahoma City National Memorial Trust             36, XV
Operations Office                                 7, XXVIII
Patent and Trademark Office, United States        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                                       2, XXXVII; 22, III
Pennsylvania Avenue Development Corporation       36, IX
Pension Benefit Guaranty Corporation              29, XL
Personnel Management, Office of                   5, I, IV, XXXV; 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
  Human Resources Management and Labor Relations  5, XCVII
       Systems, Department of Homeland Security
Pipeline and Hazardous Materials Safety           49, I
     Administration
Postal Regulatory 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 Documents                            3
Presidio Trust                                    36, X
Prisons, Bureau of                                28, V
Privacy and Civil Liberties Oversight Board       6, X
Procurement and Property Management, Office of    7, XXXII
Public and Indian Housing, Office of Assistant    24, IX
     Secretary for
Public Contracts, Department of Labor             41, 50
Public Health Service                             42, I
Railroad Retirement Board                         20, II
Reclamation, Bureau of                            43, I
Refugee Resettlement, Office of                   45, IV
Relocation Allowances                             41, 302
Research and Innovative Technology                49, XI
     Administration
Rural Business-Cooperative Service                7, XVIII, XLII
Rural Development Administration                  7, XLII
Rural Housing Service                             7, XVIII, XXXV
Rural Utilities Service                           7, XVII, XVIII, XLII
Safety and Environmental Enforcement, Bureau of   30, II
Science and Technology Policy, Office of, and     32, XXIV; 47, II
     National Security Council
Secret Service                                    31, IV
Securities and Exchange Commission                5, XXXIV; 17, II
Selective Service System                          32, XVI
Small Business Administration                     2, XXVII; 13, I
Smithsonian Institution                           36, V
Social Security Administration                    2, XXIII; 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
[[Page 905]]

State, Department of                              2, VI; 22, I; 28, XI
  Federal Acquisition Regulation                  48, 6
Surface Mining Reclamation and Enforcement,       30, VII
     Office of
Surface Transportation Board                      49, X
Susquehanna River Basin Commission                18, VIII
Tennessee Valley Authority                        5, LXIX; 18, XIII
Trade Representative, United States, Office of    15, XX
Transportation, Department of                     2, XII; 5, L
  Commercial Space Transportation                 14, III
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 12
  Federal Aviation Administration                 14, I
  Federal Highway Administration                  23, I, II
  Federal Motor Carrier Safety Administration     49, III
  Federal Railroad Administration                 49, II
  Federal Transit Administration                  49, VI
  Great Lakes St. Lawrence Seaway Development     33, IV
       Corporation
  Maritime Administration                         46, II
  National Highway Traffic Safety Administration  23, II, III; 47, IV; 49, V
  Pipeline and Hazardous Materials Safety         49, I
       Administration
  Secretary of Transportation, Office of          14, II; 49, Subtitle A
  Transportation Statistics Bureau                49, XI
Transportation, Office of                         7, XXXIII
Transportation Security Administration            49, XII
Transportation Statistics Bureau                  49, XI
Travel Allowances, Temporary Duty (TDY)           41, 301
Treasury, Department of the                       2, X; 5, XXI; 12, XV; 17, 
                                                  IV; 31, IX
  Alcohol and Tobacco Tax and Trade Bureau        27, I
  Community Development Financial Institutions    12, XVIII
       Fund
  Comptroller of the Currency                     12, I
  Customs and Border Protection                   19, I
  Engraving and Printing, Bureau of               31, VI
  Federal Acquisition Regulation                  48, 10
  Federal Claims Collection Standards             31, IX
  Federal Law Enforcement Training Center         31, VII
  Financial Crimes Enforcement Network            31, X
  Fiscal Service                                  31, II
  Foreign Assets Control, Office of               31, V
  Internal Revenue Service                        26, I
  Investment Security, Office of                  31, VIII
  Monetary Offices                                31, I
  Secret Service                                  31, IV
  Secretary of the Treasury, Office of            31, Subtitle A
Truman, Harry S. Scholarship Foundation           45, XVIII
United States Agency for Global Media             22, V
United States and Canada, International Joint     22, IV
     Commission
United States and Mexico, International Boundary  22, XI
     and Water Commission, United States Section
U.S. Copyright Office                             37, II
U.S. Office of Special Counsel                    5, CII
Utah Reclamation Mitigation and Conservation      43, III
     Commission
Veterans Affairs, Department of                   2, VIII; 38, I
  Federal Acquisition Regulation                  48, 8
Veterans' Employment and Training Service,        41, 61; 20, IX
     Office of the Assistant Secretary for
Vice President of the United States, Office of    32, XXVIII
Wage and Hour Division                            29, V
Water Resources Council                           18, VI
Workers' Compensation Programs, Office of         20, I, VII
World Agricultural Outlook Board                  7, XXXVIII

[[Page 907]]



List of CFR Sections Affected



All changes in this volume of the Code of Federal Regulations (CFR) that 
were made by documents published in the Federal Register since January 
1, 2016 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, parts and 
subparts as well as sections for revisions.
For changes to this volume of the CFR prior to this listing, consult the 
annual edition of the monthly List of CFR Sections Affected (LSA). The 
LSA is available at www.govinfo.gov. For changes to this volume of the 
CFR prior to 2001, see the ``List of CFR Sections Affected, 1949-1963, 
1964-1972, 1973-1985, and 1986-2000'' published in 11 separate volumes. 
The ``List of CFR Sections Affected 1986-2000'' is available at 
www.govinfo.gov.

                                  2016

45 CFR
                                                                   81 FR
                                                                    Page
Subtitle B
Chapter XII
1201.3 (a) amended.................................................12600
1230.400 (a), (b) and (e) amended; interim.........................40820
1230 Appendix A amended; interim...................................40820
Chapter XIII
Chapter XIII Heading revised; eff. 11-7-16.........................35479
1300--1305 (Subch. B) Revised; eff. 11-7-16........................61412
1301.10 (a), (b) introductory text, (1) and (2) amended; interim 
                                                                    3021
1302.90 (b) compliance date delayed to 9-30-17.....................87843
1304.60 (f) amended; interim........................................3022
1309.21 (e) amended; interim........................................3022
1309.22 (c) amended; interim........................................3022
1309.31 (b) amended; interim........................................3022
1309.32 (b) amended; interim........................................3022
1309.34 Amended; interim............................................3022
1309.43 Amended; interim............................................3022
1309.52 (a) amended; interim........................................3022
1321--1331 (Subchapter C) Heading revised..........................35645
1321.5 (b) revised; (g) removed; interim............................3022
1321.11 (b) amended................................................35645
1321.67 (b)(1) amended; interim.....................................3022
1321.73 Amended; interim............................................3022
1322 Redesignated from Part 1326; authority citation revised.......35645
1322.3 Amended.....................................................35645
1322.19 (d)(5) amended.............................................35645
1323 Redesignated from Part 1328...................................35645
1323.3 Amended.....................................................35646
1323.19 (d)(5) amended.............................................35646
1324 Redesignated from Part 1327...................................35645
    Authority citation revised.....................................35646
1324.1 Amended.....................................................35646
1324.11 (a), (c) introductory text, (e)(1)(i), (2)(ii), (iii), 
        (3)(i), (ii) introductory text, (iv), (4) introductory 
        text and (6)(i) amended....................................35646
1324.13 (b)(1), (2), (c) introductory text and (3) introductory 
        text amended...............................................35646
1324.15 (b), (e), (f), (h), (i)(1)(ii), (k)(1), (4) and (5) 
        amended....................................................35646
1324.19 (b)(3) introductory text, (6) introductory text, (7) 
        introductory text and (8) introductory text amended........35646

1324.19 (b)(5) and (7)(i) correctly amended........................92697
1324.21 (d)(1) amended.............................................35646
1325 Redesignated from Part 1385...................................35645

[[Page 908]]

1325.1 Introductory text amended...................................35647
1325.3 Amended.....................................................35647
1325.6 Amended.....................................................35647
1325.9 (a) introductory text amended...............................35647
1326 Redesignated as Part 1322; redesignated from Part 1386........35645
    Heading revised................................................35647
1326.5 (b) removed; (c) revised; interim............................3022
1326.21 (c) amended................................................35647
1326.26 Amended....................................................35647
1326.93 (e) amended................................................35647
1326.94 (b)(2) introductory text amended...........................35647
1327 Redesignated as Part 1324; redesignated from Part 1387........35645
    Heading revised................................................35647
1328 Redesignated as Part 1323; redesignated from Part 1388........35645
1328.2 (a)(2) and (b) amended......................................35647
1328.3 Introductory text amended...................................35647
1328.5 (b) removed; (c) revised; interim............................3022
    (a), (b)(1) and (c)(3) amended.................................35647
1329 Added.........................................................74694
1330 Added.........................................................29159
1331 Added; interim.................................................5918
    Regulation at 81 FR 5918 confirmed.............................35644
1336.50 (a) amended; interim........................................3022
1336.52 (b) amended; interim........................................3022
1336.77 (a)(1) and (b) amended; interim.............................3022
1351.1 Revised.....................................................93058
1351.10--1351.18 (Subpart B) Heading revised.......................93060
1351.10 Revised....................................................93060
1351.11 Revised....................................................93060
1351.12 Revised....................................................93060
1351.13 Revised....................................................93060
1351.15 Revised....................................................93060
1351.16 Revised....................................................93061
1351.17 Revised....................................................93061
1351.18 Revised....................................................93061
1351.19 Removed....................................................93061
1351.20--1351.27 (Subpart C) Revised...............................93061
1351.30--1351.32 (Subpart D) Added.................................93064
1355.30 (i) revised; interim........................................3022
1355.40 (a) through (e) redesignated as (b) through (f); new (a) 
        added; new (b)(1) amended; new (f) revised.................90569
    Removed; eff. 10-1-19..........................................90569
1355.41 Added......................................................90569
1355.42 Added......................................................90569
1355.43 Added......................................................90569
1355.44 Added......................................................90569
1355.45 Added......................................................90569
1355.46 Added......................................................90569
1355.47 Added......................................................90569
1355.50 Revised....................................................35479
1355.51 Added......................................................35479
1355.52 Revised....................................................35479
1355.53 Revised....................................................35481
1355.54 Revised....................................................35481
1355.55 Revised....................................................35481
1355.56 Revised....................................................35481
1355.57 Revised....................................................35481
1355.58 Added......................................................35482
1355 Appendices A through E removed; eff. 10-1-19..................90584
1356.60 (e) revised................................................35482
1357.30 (d) and (e) introductory text amended; interim..............3023
1357.40 (d)(5)(i) and (ii) introductory text amended; interim.......3023
1370 Revised.......................................................76471
1385--1399 (Subchapter I) Removed..................................35648
1385 Redesignated as Part 1325.....................................35645
1386 Redesignated as Part 1326.....................................35645
1387 Redesignated as Part 1327.....................................35645
1388 Redesignated as Part 1328.....................................35645
Chapter XVI
Chapter XVI Policy statement.......................................15646
1602 Revised................................................75332, 91039
1611 Authority citation revised.....................................6183
1611 Appendix A revised.............................................6183
Chapter XXV
2505.5 (b) amended.................................................12600
2507.3 (f) revised.................................................12600
2507.4 (a)(1) amended; (a)(2) revised..............................12600
2508.6 (f) revised.................................................12600
2508.13 (a) revised................................................12600
2508.15 (b)(1) amended.............................................12601
2508.16 (a) amended................................................12601
2554.1 (b) amended; interim........................................40820

[[Page 909]]

                                  2017

45 CFR
                                                                   82 FR
                                                                    Page
Subtitle B
Chapter XII
1230.400 (a), (b) and (e) amended...................................1607
1230 Appendix A amended.............................................1607
Chapter XIII
1302 Compliance date delayed.......................................45205
Chapter XVI
1600 Authority citation revised; eff. 12-31-17.....................37337
1600.1 Amended; eff. 12-31-17......................................37337
1609 Authority citation revised....................................20446
1609.2 Heading and (a) revised; (b)(1) and (2) amended; (b)(3) 
        added......................................................20446
1609.3 Heading revised.............................................20447
1609.4 Revised.....................................................20447
1609.5 Heading revised.............................................20447
1610 Authority citation revised....................................10283
1610.7 Removed; redesignated from 1610.8; (a)(2) revised...........10283
1610.8 Redesignated as 1610.7; redesignated from 1610.9............10283
1610.9 Redesignated as 1610.8......................................10283
1611 Authority citation revised....................................10442
    Appendix A revised.............................................10442
1627 Revised.......................................................10283
1627.4 Redesignated as 1630.14.....................................10283
1627.5 Redesignated as 1630.15.....................................10283
1627.7 Redesignated as 1630.16.....................................10283
1629 Revised.......................................................37180
1630 Authority citation revised....................................10283
    Revised; eff. 12-31-17.........................................37337
1630.6 Corrected...................................................55053
1630.14 Redesignated from 1627.4...................................10283
1630.15 Redesignated from 1627.5...................................10283
1630.16 Redesignated from 1627.7...................................10283
    Heading revised................................................10285
1631 Added; eff. 12-31-17..........................................37341
1631.3 Corrected...................................................55053
Chapter XXV
2554.1 Amended......................................................1607

                                  2018

45 CFR
                                                                   83 FR
                                                                    Page
Subtitle B
Chapter XII
1230.400 (a), (b), and (e) amended; interim..................2075, 67097
1230 Appendix A amended; interim.............................2075, 67097
Chapter XIII
1302 Policy statement...............................................2743
1302 Compliance notification.......................................48558
1355.40 (a) revised................................................42227
1355.40 Regulation at 81 FR 90569 eff. date further delayed to 10-
        1-20.......................................................42225
1355 Appendixes A through E Regulation at 81 FR 90584 eff. date 
        further delayed to 10-1-20.................................42225
Chapter XVI
1603 Removed.......................................................16786
1603 Added.........................................................17087
1611 Appendix A amended.............................................3086
Chapter XXV
2551.12 (f), (l), (m), (o), (t), and (u) removed; section amended 
                                                                   64644
2551.21 Revised....................................................64644
2551.22 Revised....................................................64645
2551.23 (i) and (j) removed; (k) and (l) redesignated as new (i) 
        and new (j); heading, (a), (b), (c) introductory text, 
        (2)(iv), (f), (g), new (i), and new (j) revised; 
        (c)(2)(iii) amended; new (k) and new (l) added.............64645
2551.24 (a)(2), (3), and (4) revised...............................64645
2551.25 (c) and (e) through (h) revised............................64645
2551.33 Removed....................................................64645
2551.34 (a)(3) and (b) revised.....................................64645
2551.41 (a)(1) amended; (a)(2) and (3) removed; (a)(4) 
        redesignated as new (a)(2); (b) revised....................64645
2551.43 (b) revised................................................64646
2551.44 (a)(1), (3), and (4) revised; (b)(2) amended; (b)(3), (4), 
        and (5) added..............................................64646
2551.45 Revised....................................................64646
2551.46 (f) removed; (g) redesignated as new (f); heading, 
        introductory text, (a), (b) introductory text, (1), (2), 
        (3)(i)(A), (B), (ii), and (c) through new (f) revised; new 
        (g) added..................................................64646
2551.47 Revised....................................................64646
2551.51 Revised....................................................64646

[[Page 910]]

2551.52 (c) revised................................................64646
2551.53 Revised....................................................64647
2551.61 Revised....................................................64647
2551.62 (c), (d), (e)(2), (i), and (j) revised; (e)(1) amended; 
        (e)(3) removed.............................................64647
2551.71 (b) removed; (c) redesignated as new (b)...................64647
2551.72 Heading and (a)(5) revised; (b) and (c) removed............64647
2551.73 Added......................................................64647
2551.91 Revised....................................................64647
2551.92 (e) removed; (f) redesignated as new (e); (a), (b) 
        introductory text, (c), (d), and new (e) revised...........64647
2551.93 Heading, (a)(4), (b), (e), and (f) revised; (a)(3) 
        amended; (a)(5) added......................................64648
2551.101 Revised...................................................64648
2551.102 (e) and (f) removed; (g) redesignated as new (e); (b), 
        (d), and new (e) revised...................................64648
2551.103 Revised...................................................64648
2551.104 Removed...................................................64648
2551.111--2551.114 (Subpart K) Heading revised.....................64648
2551.111 Revised...................................................64648
2551.112 Heading, introductory text, and (a) revised...............64648
2551.113 Revised...................................................64648
2551.114 Revised...................................................64648
2551.121 (c)(2), (g), and (h) revised..............................64648
2551.122 Revised...................................................64649
2552.11 Revised....................................................64649
2552.12 (h), (n), (o), (r), (w), and (x) removed; section amended 
                                                                   64649
2552.21 Revised....................................................64650
2552.22 Revised....................................................64650
2552.23 (i) and (j) removed; (k) and (l) redesignated as new (i) 
        and new (j); new (k) and new (l) added; heading, (a), (b), 
        (c) introductory text, (2)(iv), (f), (g), new (i), and new 
        (j) revised; (c)(2)(iii) amended...........................64650
2552.24 (a)(2), (3), and (4) revised...............................64650
2552.25 (c) and (e) through (h) revised............................64650
2552.33 Removed....................................................64650
2552.34 (a)(3) and (b) revised.....................................64650
2552.41--2552.47 (Subpart D) Heading revised.......................64651
2552.41 (a)(1) amended; (a)(2) and (3) removed; (a)(4) 
        redesignated as new (a)(2); new (a)(2) and (b) revised.....64651
2552.43 (b) revised................................................64651
2552.44 (a)(1), (3), and (4) revised; (b)(3), (4), and (5) added 
                                                                   64651
2552.45 Revised....................................................64651
2552.46 Heading, introductory text, (a), (b) introductory text, 
        (1), (2), (3)(i)(A), (B), (ii), and (c) through (f) 
        revised; (g) added.........................................64651
2552.47 Revised....................................................64651
2552.51 Revised....................................................64652
2552.52 (c) revised................................................64652
2552.53 Revised....................................................64652
2552.61 Revised....................................................64652
2552.62 (c), (d), (e)(2), (i), and (j) revised; (e)(1) amended; 
        (e)(3) removed.............................................64652
2552.71 (a) and (b) revised........................................64652
2552.72 Heading and (a)(5) revised; (b) removed....................64652
2552.81--2552.82 (Subpart H) Heading revised.......................64652
2552.81 Heading revised............................................64652
2552.82 (a) introductory text revised..............................64652
2552.91 Revised....................................................64652
2552.92 (e) removed; (f) redesignated as new (e); (a), (b) 
        introductory text, (c), (d), and new (e) revised...........64652
2552.93 Heading, (a)(4), (b), (e), and (f) revised; (a)(3) 
        amended; (a)(5) added......................................64653
2552.101 Revised...................................................64653
2552.102 (e) and (f) removed; (g) redesignated as new (e); (b), 
        (d), and new (e) revised...................................64653
2552.103 Revised...................................................64653
2552.104 Removed...................................................64653
2552.111--2552.114 (Subpart K) Heading revised.....................64653
2552.111 Revised...................................................64653
2552.112 Heading, introductory text, and (a) revised...............64653
2552.113 Revised...................................................64653
2552.114 Revised...................................................64653
2552.121 (c)(2), (g), and (h) revised..............................64653
2552.122 Revised...................................................64654
2553.12 (e), (j), (k), (n), (q), and (r) removed; section amended 
                                                                   64654
2553.21 Revised....................................................64654

[[Page 911]]

2553.22 Revised....................................................64655
2553.23 (f), (g), and (i) removed; (h) and (j) redesignated as new 
        (f) and new (g); heading, (b), (c) introductory text, 
        (2)(iv), (e), and new (g) revised; (c)(2)(iii) amended; 
        (c)(2)(v) added............................................64655
2553.24 (a)(2), (3), and (4) revised...............................64655
2553.25 (c) and (e) through (i) revised............................64655
2553.26 Removed....................................................64655
2553.31 (a)(3), (b), and (c) revised...............................64655
2553.41 Heading and (b) revised; (a)(2) and (3) amended; (a)(4) 
        removed....................................................64655
2553.42 Revised....................................................64655
2553.43 Revised....................................................64655
2553.44 Revised....................................................64656
2553.51 Revised....................................................64656
2553.52 Revised....................................................64656
2553.61 Revised....................................................64656
2553.62 (b), (c), (e), (f)(2), and (3) revised; (f)(4) and (5) 
        removed....................................................64656
2553.71 Introductory text, (a)(1), (b)(1), (2)(iv), (c)(2), (d), 
        and (e) revised; (f) removed...............................64656
2553.72 (a), (b) introductory text, (c), and (d) revised...........64657
2553.73 Heading, (a)(4), (b), (e), and (f) revised; (a)(3) 
        amended; (a)(5) added......................................64657
2553.81--2553.84 (Subpart H) Heading revised.......................64657
2553.81 Revised....................................................64657
2553.82 Heading and (a) revised....................................64657
2553.83 Revised....................................................64657
2553.84 Revised....................................................64657
2553.91 Heading, (c)(2), (g), and (h) revised......................64657
2553.92 Revised....................................................64657
2553.100 Removed...................................................64657
2553.101 Revised...................................................64657
2553.102 Revised...................................................64658
2553.103 Revised...................................................64658
2553.104 Revised...................................................64658
2553.105 Revised...................................................64658
2553.106 Revised...................................................64658
2553.107 Introductory text revised.................................64658
2553.108 Removed; new section redesignated from 2553.109 and 
        revised....................................................64658
2553.109 Redesignated as 2553.108..................................64658
2554.1 (b) amended; interim..................................2075, 67097

                                  2019

45 CFR
                                                                   84 FR
                                                                    Page
Subtitle B
Chapter XII
1230.400 (a), (b), and (e) amended; interim........................70903
1230 Appendix A amended; interim...................................70903
Chapter XIII
1302.90 (b) compliance date delayed to 9-30-21.....................65012
Chapter XVI
1607 Authority citation revised.....................................1407
1607.2 (c) revised..................................................1407
1607.3 (c) revised..................................................1407
1611 Appendix A amended.............................................1408
Chapter XXI
2105 Revised; interim..............................................15512
2105 Revised.......................................................27722
Chapter XXV
2554.1 (b) amended; interim........................................70903

                                  2020

45 CFR
                                                                   85 FR
                                                                    Page
Subtitle B
Chapter XIII
1302 Policy statement...............................................5332
1304.11 Revised; eff. 10-27-20.....................................53207
1304.11 Regulation at 85 FR 53207 eff. date delayed to 11-9-20.....65733
1304.12 Revised; eff. 10-27-20.....................................53208
1304.12 Regulation at 85 FR 53208 eff. date delayed to 11-9-20.....65733
1304.15 Revised; eff. 10-27-20.....................................53208
1304.15 Regulation at 85 FR 53208 eff. date delayed to 11-9-20.....65733
1304.17 Added; interim.............................................78792
1305.2 Amended; eff. 10-27-20......................................53209
1305.2 Regulation at 85 FR 53209 eff. date delayed to 11-9-20......65733
1324.11 Amended....................................................72911
1324.11 Correction: Regulation at 85 FR 72911 instruction amended 
                                                                   81781
1324.15 Amended....................................................72911
1324.19 Amended....................................................72911
1324.21 (b)(3) amended.............................................72911
1325.4 Amended.....................................................72911
1326 Heading revised...............................................72911

[[Page 912]]

1326.93 Amended....................................................72911
1326.103 Amended...................................................72911
1326.112 Amended...................................................72911
1328.2 Amended.....................................................72911
1328.3 Amended.....................................................72911
1328.5 Amended.....................................................72911
1355.40 Regulation at 81 FR 90569 further delayed until 10-1-22....28410
1355.40 (a) revised................................................28424
1355.41 (c) removed................................................28424
1355.43 (b)(3) revised.............................................28424
1355.44 Revised....................................................28424
1355.45 (b)(2) and (3)(vi) revised; (f) added......................28433
1355.46 (c)(2) amended.............................................28434
1355 Appendices A through E Regulation at 81 FR 90584 further 
        delayed until 10-1-22......................................28410
Chapter XVI
1610 Revised.......................................................63214
1611 Appendix A revised.............................................8191
1630.16 Revised....................................................63216
Chapter XXV
2500 Added.........................................................65240
2509 Added.........................................................44475

                                  2021

  (Regulations published from January 1, 2021, through October 1, 2021)

45 CFR
                                                                   86 FR
                                                                    Page
Subtitle B
Chapter XII
1225 Revised.......................................................30174
1230.400 (a), (b), and (e) amended; interim........................13823
1230 Appendix A amended; interim...................................13823
Chapter XIII
1300 (Subchapter A) Added...........................................5763
1300 (Subchapter A) Regulation at 86 FR 5763 eff. date delayed to 
        3-22-22....................................................15404
1300 (Subchapter A) Correction: Regulation at 86 FR 5763 
        instruction amended........................................15408
Chapter XVI
1611 Appendix A revised.............................................7351
1635 Revised; eff. 1-1-22..........................................27041
Chapter XXV
2522.205 Revised...................................................11146
2540 Authority citation revised....................................11146
2540.200 Revised...................................................11146
2540.201 Revised...................................................11147
2540.202 Revised...................................................11147
2540.203 Revised...................................................11147
2540.204 Revised...................................................11147
2540.205 Revised...................................................11147
2540.206 Revised...................................................11147
2540.207 Revised...................................................11148
2554.1 (b) amended; interim........................................13823


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