[Federal Register Volume 72, Number 104 (Thursday, May 31, 2007)]
[Proposed Rules]
[Pages 30302-30308]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-10505]


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DEPARTMENT OF STATE

22 CFR Part 62

RIN: 1400-AC29
[Public Notice 5819]


Exchange Visitor Program--Sanctions and Terminations

AGENCY: Department of State.

ACTION: Proposed rule with request for comment.

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SUMMARY: The U.S. Department of State (Department) is proposing to 
revise its regulations presently set forth at 22 CFR Part 62, Subpart D 
(Sanctions) and 22 CFR Part 62, Subpart E (Termination and Revocation 
of Programs). The

[[Page 30303]]

revised Sec.  62.50 will retain many, but not all, of the provisions of 
the current regulations, and modifies the reasons for which sanctions 
may be imposed. One difference in the proposed regulation is the 
substitution of a panel of three Review Officers to conduct a ``paper 
review'' in lieu of a trial-type hearing. This streamlined review 
process will continue to provide full procedural due process rights. 
Subpart E, Sec.  62.60 proposes to amend existing regulations to 
provide for program termination in the case of failure to file an 
annual management audit, in program categories requiring such audits. A 
new Sec.  62.62 will provide for termination or denial of redesignation 
for an entire class of designated programs, if the Department 
determines that they compromise the national security of the United 
States, or no longer further the public diplomacy mission of the 
Department.

DATES: The Department will accept comments from the public up to 60 
days from May 31, 2007.

ADDRESSES: You may submit comments, identified by any of the following 
methods:
     Persons with access to the internet may also view this 
notice and provide comments by going to the regulations.gov Web site 
at: http://www.regulations.gov/index.cfm
     Mail (paper, disk, or CD-ROM submissions): U.S. Department 
of State, Office of Exchange Coordination and Designation, SA-44, 301 
4th Street, SW., Room 734, Washington, DC 20547
     E-mail: [email protected]. You must include the RIN 
(1400-AC29) in the subject line of your message.

FOR FURTHER INFORMATION CONTACT: Stanley S. Colvin, Director, Office of 
Exchange Coordination and Designation, U.S. Department of State, SA-44, 
301 4th Street, SW., Room 734, Washington, DC 20547, (202) 203-7415; or 
e-mail at [email protected].

SUPPLEMENTARY INFORMATION: The Department of State is authorized to 
facilitate and direct educational and cultural exchange activities in 
order to develop and promote mutual understanding between the people of 
the United States and other countries of the world, and thus directly 
impact the relationships between the United States and foreign 
governments. Educational and cultural exchange is the cornerstone of 
United States public diplomacy, an integral component of the foreign 
affairs function of the Department. As set forth in the Regulations, 
educational and cultural exchanges assist the Department in furthering 
the foreign policy objectives of the United States. (22 CFR 62.1)
    The Department designates U.S. government, academic, and private 
sector entities to conduct educational and cultural exchange programs 
pursuant to a broad grant of authority provided by the Mutual 
Educational and Cultural Exchange Act of 1961, as amended (Fulbright-
Hays Act), 22 U.S.C. 2451 et seq.; the Immigration and Nationality Act, 
8 U.S.C. Sec.  1101(a)(15)(J); the Foreign Affairs Reform and 
Restructuring Act of 1998, Pub. L. 105-277; as well as other statutory 
enactments, Reorganization Plans and Executive Orders. Under those 
authorities, designated program sponsors facilitate the entry into the 
United States of more than 300,000 exchange participants each year.
    The former United States Information Agency (USIA) and, as of 
October 1, 1999, its successor, the U.S. Department of State, have 
promulgated regulations governing the Exchange Visitor Program. Those 
regulations now appear at 22 CFR Part 62. Regulations governing 
sanctions appear at 22 CFR 62.50, and regulations governing termination 
of a sponsor's designation, at 22 CFR 62.60 through 62.62. The ultimate 
goals of the sanctions regulations are to further the foreign policy 
interests of the United States, including protecting the health, safety 
and welfare of Exchange Visitor Program participants. These regulations 
largely have remained unchanged since 1993, when USIA undertook a major 
regulatory reform of the Exchange Visitor Program.
    The Fulbright-Hays Act is the organic legislation underpinning the 
entire Exchange Visitor Program. Section 101 of that Act sets forth its 
purpose: ``to enable the Government of the United States to increase 
mutual understanding between the people of the United States and the 
people of other countries by means of educational and cultural 
exchange. * * *'' The Act authorizes the President to provide for such 
exchanges if it would strengthen international cooperative relations. 
The language of the Act and its legislative history make it clear that 
the Congress considered international educational and cultural 
exchanges to be a significant part of the public diplomacy efforts of 
the President in connection with Constitutional prerogatives in 
conducting foreign affairs. Thus, exchange visitor programs that do not 
further the public diplomacy goals of the United States should not be 
designated initially, or retain their designation. Accordingly, it is 
imperative that the Department have the power to revoke program 
designations or deny applications for program redesignation when it 
determines that such programs do not serve the country's public 
diplomacy goals.
    The overwhelming majority of designated exchange visitor programs 
have been a credit to this country's public diplomacy efforts. They 
adhere to the Department's regulations and clearly further the goals of 
the Fulbright-Hays Act. Indeed, since 1993, when the Exchange Visitor 
Program regulations were substantially revised, there have been only 
five programs whose designations have been revoked. Several programs 
facing the threat of revocation voluntarily surrendered their 
designation. However, the Department's Office of Exchange Coordination 
and Designation (the Office) has imposed lesser sanctions pursuant to 
current Sec.  62.50 on more than 100 exchange visitor programs since 
1993 for various regulatory violations. The experience of the last 12 
years has demonstrated that the current sanction regulations, 
particularly those governing lesser sanctions, have been useful in 
deterring bad acts and rehabilitating otherwise productive public 
diplomacy programs. Nevertheless, after 12 years of service, the 
sanction regulations need clarification and fine-tuning.
    The proposed regulations slightly modify two of the existing 
reasons for which the Department may sanction a sponsor, by eliminating 
the requirement that violations, or patterns of violations, of Part 62 
be willful or negligent. Sponsors are required to demonstrate thorough 
knowledge of Part 62's requirements, and thus any violation or pattern 
of violation would, arguably, be willful or negligent. Moreover, given 
the critical role the Exchange Visitor Program plays in the 
Department's public diplomacy mission, the Department must have the 
discretion to sanction a sponsor when appropriate, whether or not 
willfulness or negligence is shown.
    In addition, under the proposed regulation the Department may 
sanction a sponsor for two new reasons. The Department may sanction a 
sponsor for conducting its program in such a way as to undermine the 
foreign policy objectives of the United States, or compromise the 
national security interests of the United States.
    The existing provision for ``lesser sanctions'' is incorporated in 
the proposed regulation, with minor modification. As the term implies, 
such sanctions are imposed for less serious violations of 22 CFR Part 
62. The Office will continue to impose lesser sanctions on designated 
program sponsors that the

[[Page 30304]]

Office believes have inherent merit, but which have indulged in 
troublesome practices that threaten their continued designation. Lesser 
sanctions may include up to a 15 percent (15%) initial reduction in the 
authorized number of exchange visitors in the sponsor's program or in 
its geographic area of recruiting or activity, with the imposition of 
subsequent additional reductions in ten percent (10%) increments if 
violations continue. The proposed regulation provides that recipients 
of lesser sanctions will have an opportunity to plead their cases in 
opposition to or mitigation of the sanctions, in a written submission 
to the Office, which may lead to the Office's modification or 
withdrawal of the sanction. The decision of the Office is the final 
agency decision with regard to lesser sanctions.
    The proposed regulation provides for four major sanctions: 
suspension of a program designation, revocation of a program 
designation, denial of an application for program redesignation, and 
suspension or revocation of the appointment of a Responsible or 
Alternate Responsible Officer. The procedures for the major sanctions 
are essentially the same, with the major difference being that the 
Office may impose suspension with immediate effectiveness, and a 
sponsor's initial opposition, submitted to the PDAS, or subsequent 
request for review by the Review Officer panel does not stay the 
effective date of that sanction. In addition, the procedure for 
imposing a suspension, opposition by the sponsor, and decision by the 
PDAS to confirm, modify or withdraw the suspension, are substantially 
expedited. This allows the Department to respond quickly when it 
appears that a sponsor has endangered the health, safety, or welfare of 
an exchange visitor, or damaged the national security interests of the 
United States, and also assures the sponsor of a speedy decision by the 
PDAS.
    The process for reviewing the decision of the PDAS is essentially 
the same for all major sanctions. The PDAS must serve on the sponsor a 
written notice confirming, modifying or withdrawing the sanction, 
setting out the grounds of the decision, specifying the effective date, 
and explaining the procedures for requesting review. A timely request 
by the sponsor for review stays the effective date of the sanction 
except, as noted above, in the case of suspension. Upon receipt of a 
request for review, the Department must constitute a panel of three 
Review Officers, one each designated by the Under Secretary of State 
for Public Diplomacy and Public Affairs, the Assistant Secretary for 
Consular Affairs, and the Legal Adviser. After the panel notifies the 
parties that it has been constituted, the sponsor files a written 
submission setting out its arguments for reversal or modification of 
the sanction, with supporting documentary evidence; the PDAS then files 
a written submission in response. Additional submissions are allowed 
only at the request of the Review Officers. The Review Officers may 
determine, in their discretion, to schedule a short meeting whose 
purpose is limited to clarification of the written submissions. There 
will be no transcript of such meeting, and no one may submit evidence. 
Within 30 days after the meeting, or if none is scheduled, after the 
last written submission, the panel issues a signed, written decision.
    22 CFR 62.50 currently contemplates a trial-type hearing for review 
of sanction decisions by the PDAS. These trial-type procedures are not 
required by any applicable statute. The Department has found them to be 
unwieldy, burdensome and time-consuming, both for itself and for 
sponsors. The sanction process, including a paper review, set out in 
this proposed rule would ensure sponsors of adequate notice, an 
opportunity to be heard, and a reasoned decision made upon a clear, 
manageable record. The Department believes that these provisions 
protect sponsors from the possibility of any sanction that might be 
deemed to be arbitrary, capricious, an abuse of discretion, or 
otherwise not in accordance with law, and thus satisfy the requirements 
of procedural due process.
    The proposed regulation also modifies Subpart E. Current Sec.  
62.60 lists circumstances in which a program designation terminates 
automatically, not as a result of the imposition of a sanction. These 
circumstances currently are: voluntary termination; inactivity for a 
specified period; failure to file annual reports for two consecutive 
years; change of ownership or control; failure to remain in compliance 
with local, state, federal or professional requirements necessary to 
carry out the program activity, including loss of accreditation or 
licensure; and failure to apply for redesignation prior to the 
conclusion of the current designation period. These provisions are 
continued, with minor revisions, in the proposed rule. In addition, 
Sec.  62.60 is amended to include termination of program designation 
for failure to submit a management audit, in any program category 
requiring such an audit. Currently this is a requirement only for 
sponsors of Au Pair programs, but the Department is in the process of 
revising Subpart A to include the requirement of an annual management 
audit for additional categories. Finally, a new Sec.  62.62 is 
proposed, providing for instances in which the Department determines 
that an entire program category compromises the national security of 
the United States, or no longer furthers the public diplomacy mission 
of the Department. Such a determination is inherently within the 
discretion of the Department, and the proposed rule makes this 
explicit. Under the proposed rule, if the Department makes such a 
determination it may either revoke the designations of all programs 
within the affected class, or deny applications for redesignation 
within that class, as current designation periods expire.

Regulatory Analysis

Administrative Procedure Act, Unfunded Mandates Reform Act of 1995, and 
Small Business Regulatory Enforcement Fairness Act of 1996

    The Department has determined that this Proposed Rule involves a 
foreign affairs function of the United States and is consequently 
exempt from the procedures required by 5 U.S.C. 553 pursuant to 5 
U.S.C. 553(a)(1). Nonetheless, because of its importance to the public, 
the Department has elected to solicit comments during a 60-day comment 
period.
    Section 202 of the Unfunded Mandates Reform Act of 1995 (UFMA), 
Public Law 104-4, 109 Stat. 48, 2 U.S.C. 1532, generally requires 
agencies to prepare a statement before proposing any rule that may 
result in an annual expenditure of $100 million or more by State, local 
or tribal governments, or by the private sector. This rule will not 
result in any such expenditure, nor will it significantly or uniquely 
affect small businesses.
    The Proposed Rule has been found not to be a major rule within the 
meaning of the Small Business Regulatory Enforcement Fairness Act of 
1996. It will not have a substantial effect on the States, the 
relationship between the National Government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government. Therefore, it has been determined that the Proposed Rule 
does not have sufficient federalism implications to warrant application 
of the consultation provisions of Executive Orders 12372 and 13132.

Regulatory Flexibility Act/Executive Order 13272: Small Business

    Since this rulemaking is exempt from 5 U.S.C 553, and no other law 
requires

[[Page 30305]]

the Department to give notice of proposed rulemaking, this rulemaking 
also is not subject to the Regulatory Flexibility Act (5 U.S.C. 601 et 
seq.) or Executive Order 13272, section 3(b). [Nonetheless, the 
Department has analyzed the provisions of the Proposed Rule and 
certifies that they will not have a significant economic impact on a 
substantial number of small entities under the criteria of the 
Regulatory Flexibility Act.

Executive Order 12866, as Amended

    The Department does not consider this Proposed Rule to be a 
``significant regulatory action'' under Executive Order 12866, as 
amended, Sec.  3(f), Regulatory Planning and Review. In addition, the 
Department is exempt from Executive Order 12866 except to the extent 
that it is promulgating regulations in conjunction with a domestic 
agency that are significant regulatory actions. The Department has 
nevertheless reviewed the Proposed Rule to ensure its consistency with 
the regulatory philosophy and principles set forth in that Executive 
Order.

Executive Order 12988

    The Department has reviewed this Proposed Rule in light of 
Sec. Sec.  3(a) and 3(b)(2) of Executive Order 12988 to eliminate 
ambiguity, minimize litigation, establish clear legal standards, and 
reduce burden.

Executive Orders 12372 and 13132

    This regulation will not have substantial direct effects on the 
States, on the relationship between the national government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government. Therefore, in accordance with section 6 
of Executive Order 13132, it is determined that this rule does not have 
sufficient federalism implications to require consultations or warrant 
the preparation of a federalism summary impact statement. The 
regulations implementing Executive Order 12372 regarding 
intergovernmental consultation on Federal programs and activities do 
not apply to this regulation.

Paperwork Reduction Act

    This Proposed Rule does not impose any new reporting or 
recordkeeping requirements subject to the Paperwork Reduction Act, 44 
U.S.C. Chapter 35.

List of Subjects in 22 CFR Part 62

    Cultural Exchange Programs.

    Accordingly, 22 CFR part 62 is proposed to be amended as follows:

PART 62--EXCHANGE VISITOR PROGRAM

    1. The Authority citation for part 62 is proposed to be amended as 
follows:

    Authority: 8 U.S.C. 1101(a)(15)(J), 1182, 1184, 1258; 22 U.S.C. 
1431-1442, 2451-2460; Foreign Affairs Reform and Restructuring Act 
of 1998, Pub. L. 105-277, Div. G, 112 Stat. 2681-761 et seq.; 
Reorganization Plan No. 2 of 1977, 3 CFR, 1977 Comp. p. 200; E.O. 
12048 of March 27, 1978; 3 CFR, 1978 Comp. p. 168; the Illegal 
Immigration Reform and Immigrant Responsibility Act (IIRIRA) of 
1996, Pub. L. 104-208, Div. C, 110 Stat. 3009-546, as amended; 
Uniting and Strengthening America by Providing Appropriate Tools 
Required to Intercept and Obstruct Terrorism Act of 2001 (USA 
PATRIOT ACT) (Pub. L. 107-56), Sec. 416, 115 Stat. 354; and the 
Enhanced Border Security and Visa Entry Reform Act of 2002, Pub. L. 
107-173, 116 Stat. 543.

    2. Section 62.50 is revised to read as follows:


Sec.  62.50  Sanctions.

    (a) Reasons for sanctions. The Department of State (Department) may 
impose sanctions against a sponsor upon a finding by its Office of 
Exchange Coordination and Designation (the Office) that the sponsor 
has:
    (1) Violated one or more provisions of this part;
    (2) Evidenced a pattern of failure to comply with one or more 
provisions of this Part;
    (3) Committed an act of omission or commission, which has or could 
have the effect of endangering the health, safety, or welfare of an 
exchange visitor; or
    (4) Otherwise conducted its program in such a way as to undermine 
the foreign policy objectives of the United States, compromise the 
national security interests of the United States, or bring the 
Department or the Exchange Visitor Program into notoriety or disrepute.
    (b) Lesser sanctions. (1) In order to ensure full compliance with 
the regulations in this Part, the Department, in its discretion and 
depending on the nature and seriousness of the violation, may impose 
any or all of the following sanctions (``lesser sanctions'') on a 
sponsor upon a finding that the sponsor engaged in any of the acts or 
omissions set forth in paragraph (a)of this section:
    (i) A written reprimand to the sponsor, with a warning that 
repeated or persistent violations of the regulations in this Part may 
result in suspension or revocation of the sponsor's Exchange Visitor 
Program designation, or other sanctions as set forth herein;
    (ii) A declaration placing the exchange visitor sponsor's program 
on probation, for a period of time determined by the Department in its 
discretion, signifying a pattern of violation of regulations such that 
further violations could lead to suspension or revocation of the 
sponsor's Exchange Visitor Program designation, or other sanctions as 
set forth herein;
    (iii) A corrective action plan designed to cure the sponsor's 
violations; or
    (iv) Up to a 15 percent (15%) reduction in the authorized number of 
exchange visitors in the sponsor's program or in the geographic area of 
its recruitment or activity. If the sponsor continues to violate the 
regulations in this Part, the Department may impose subsequent 
additional reductions, in ten percent (10%) increments, in the 
authorized number of exchange visitors in the sponsor's program or in 
the geographic area of its recruitment or activity.
    (2) Within ten (10) days after service of the written notice to the 
sponsor imposing any of the sanctions set forth in this paragraph, the 
sponsor may submit to the Office a statement in opposition to or 
mitigation of the sanction. Such statement shall not exceed 20 pages in 
length, double-spaced and, if appropriate, may include additional 
documentary material. Sponsors shall include with all documentary 
material an index of the documents and a summary of the relevance of 
each document presented. Upon review and consideration of such 
submission, the Office may, in its discretion, modify, withdraw, or 
confirm such sanction. All materials the sponsor submits shall become a 
part of the sponsor's file with the Office.
    (3) The decision of the Office is the final Department decision 
with regard to lesser sanctions in paragraphs (b)(1)(i) through (iv) of 
this section.
    (c) Suspension. (1) Upon a finding that a sponsor has committed a 
serious act of omission or commission which has or could have the 
effect of endangering the health, safety, or welfare of an exchange 
visitor, or of damaging the national security interests of the United 
States, the Office may serve the sponsor with written notice of its 
decision to suspend the designation of the sponsor's program for a 
period not to exceed 120 days. Such notice shall specify the grounds 
for the sanction and the effective date thereof, advise the sponsor of 
its right to oppose the suspension, and identify the procedures for 
submitting a statement of opposition thereto. Suspension under this 
paragraph need not be preceded by the imposition of any other sanction 
or notice
    (2)(i) Within five (5) days after service of such notice, the 
sponsor may submit

[[Page 30306]]

to the Principal Deputy Assistant Secretary for Educational and 
Cultural Affairs a statement in opposition to the Office's decision. 
Such statement shall not exceed 20 pages in length, double-spaced, and 
if appropriate, may include additional documentary material. Sponsors 
shall include with all documentary material an index of the documents 
and a summary of the relevance of each document presented. The 
submission of a statement in opposition to the Office's decision shall 
not serve to stay the effective date of the suspension.
    (ii) Within five (5) days after receipt of, and upon consideration 
of, such opposition, the Principal Deputy Assistant Secretary shall 
confirm, modify or withdraw the suspension by serving the sponsor with 
a written decision. Such decision shall specify the grounds therefor, 
and advise the sponsor of the procedures for requesting review of the 
decision.
    (iii) All materials the sponsor submits shall become a part of the 
sponsor's file with the Office.
    (3) The procedures for review of the decision of the Principal 
Deputy Assistant Secretary are set forth in paragraphs (d)(3), (d)(4), 
(g) and (h) in this section, except that the submission of a request 
for review shall not serve to stay the suspension.
    (d) Revocation of designation. (1) Upon a finding of any act or 
omission set forth at paragraph (a) of this section, the Office may 
serve a sponsor with not less than 30 days' written notice of its 
intent to revoke the sponsor's Exchange Visitor Program designation. 
Such notice shall specify the grounds for the proposed sanction and its 
effective date, advise the sponsor of its right to oppose the proposed 
sanction, and identify the procedures for submitting a statement of 
opposition thereto. Revocation of designation under this paragraph need 
not be preceded by the imposition of any other sanction or notice.
    (2) (i) Within ten (10) days after service of such written notice 
of intent to revoke designation, the sponsor may submit to the 
Principal Deputy Assistant Secretary for Educational and Cultural 
Affairs a statement in opposition to or mitigation of the proposed 
sanction, which may include a request for a meeting.
    (ii) The submission of such statement shall serve to stay the 
effective date of the proposed sanction pending the decision of the 
Principal Deputy Assistant Secretary.
    (iii) The Principal Deputy Assistant Secretary shall provide a copy 
of the statement in opposition to or mitigation of the proposed 
sanction to the Office. The Office shall submit a statement in 
response, and shall provide the sponsor with a copy thereof.
    (iv) A statement in opposition to or mitigation of the proposed 
sanction, or statement in response thereto, shall not exceed 25 pages 
in length, double-spaced and, if appropriate, may include additional 
documentary material. Any additional documentary material shall include 
an index of the documents and a summary of the relevance of each 
document presented.
    (v) Upon consideration of such statements, the Principal Deputy 
Assistant Secretary shall modify, withdraw, or confirm the proposed 
sanction by serving the sponsor with a written decision. Such decision 
shall specify the grounds therefore, identify its effective date, 
advise the sponsor of its right to request review, and identify the 
procedures for requesting such review.
    (vi) All materials the sponsor submits shall become a part of the 
sponsor's file with the Office.
    (3) Within ten (10) days after service of such written notice of 
the decision of the Principal Deputy Assistant Secretary, the sponsor 
may submit a request for review with the Principal Deputy Assistant 
Secretary. The submission of such request for review shall serve to 
stay the effective date of the decision pending the outcome of the 
review.
    (4) Within ten (10) days after receipt of such request for review, 
the Department shall designate a panel of three Review Officers 
pursuant to paragraphs of this section, and the Principal Deputy 
Assistant Secretary shall forward to them all notices, statements, and 
decisions submitted or provided pursuant to the preceding sections of 
this paragraph. Thereafter, the review shall be conducted pursuant to 
paragraph (h) of this section.
    (e) Denial of application for redesignation. Upon a finding of any 
act or omission set forth at Sec.  62.50(a), the Office may serve a 
sponsor with not less than 30 days' written notice of its intent to 
deny the sponsor's application for redesignation. Such notice shall 
specify the grounds for the proposed sanction and its effective date, 
advise the sponsor of its right to oppose the proposed sanction, and 
identify the procedures for submitting a statement of opposition 
thereto. Denial of redesignation under this paragraph need not be 
preceded by the imposition of any other sanction or notice. The 
procedures for opposing a proposed denial of redesignation are set 
forth in paragraphs (d)(2), (d)(4), (g) and (h) of this section
    (f) Responsible officers. The Office may direct a sponsor to 
suspend or revoke the appointment of a Responsible Officer or Alternate 
Responsible Officer for any of the reasons set forth in Sec.  62.50(a). 
The procedures for suspending or revoking a Responsible Officer or 
Alternate Responsible Officer are set forth at paragraphs (d), (g), and 
(h) of this section.
    (g) Review officers. A panel of three Review Officers shall hear 
sponsors' requests for review pursuant to Sec.  62.50(c), (d), (e), and 
(f). The Under Secretary of State for Public Diplomacy and Public 
Affairs shall designate one senior official from an office reporting to 
him/her, other than the Bureau of Educational and Cultural Affairs, as 
a member of the Panel. The Assistant Secretary of State for Consular 
Affairs and the Legal Adviser shall each designate one senior official 
from their bureaus as members of the panel
    (h) Review. The review Officers may affirm, modify, or reverse the 
sanction imposed by the Principal Deputy Assistant Secretary for 
Educational and Cultural Affairs. The following procedures shall apply 
to the review:
    (1) Upon its designation, the panel of Review Officers shall 
promptly notify the Principal Deputy Assistant Secretary and the 
sponsor in writing of the identity of the Review Officers and the 
address to which all communications with the Review Officers shall be 
directed.
    (2) Within 15 days after service of such notice, the sponsor may 
submit to the Review Officers four (4) copies of a statement 
identifying the grounds on which the sponsor asserts that the decision 
of the Principal Deputy Assistant Secretary should be reversed or 
modified. Any such statement shall not exceed 25 pages in length, 
double-spaced; and any attachments thereto shall not exceed 50 pages. 
Sponsors shall include with all attachments an index of the documents 
and a summary of the relevance of each document presented. The Review 
Officers shall transmit one copy of any such statement to the Principal 
Deputy Assistant Secretary, who shall, within 15 days after receipt of 
such statement, submit four (4) copies of a statement in response. Any 
such statement shall not exceed 25 pages in length, double-spaced; and 
any attachments thereto shall not exceed 50 pages. The Principal Deputy 
Assistant Secretary shall include with all attachments an index of the 
documents and a summary of the relevance of each document presented. 
The Review Officers shall transmit one copy of any such statement to 
the

[[Page 30307]]

sponsor. No other submissions shall be made unless specifically 
authorized by the Review Officers
    (3) If the Review Officers determine, in their sole discretion, 
that a meeting for the purpose of clarification of the written 
submissions should be held, they shall schedule a meeting to be held 
within twenty (20) days after the receipt of the last written 
submission. The meeting shall be limited to no more than two hours. The 
purpose of the meeting shall be limited to the clarification of the 
written submissions. No transcript shall be taken and no evidence, 
either through documents or by witnesses, shall be received. The 
sponsor and the representative of the Principal Deputy Assistant 
Secretary may attend the meeting on their own behalf and may be 
accompanied by counsel.
    (4) Following the conclusion of the meeting, or the submission of 
the last written submission if no meeting is held, the Review Officers 
shall promptly review the submissions of the sponsor and the Principal 
Deputy Assistant Secretary, and shall issue a signed written decision 
within thirty (30) days, stating the basis for their decision. A copy 
of the decision shall be delivered to the Principal Deputy Assistant 
Secretary and the sponsor.
    (5) If the Review Officers decide to affirm or modify the sanction, 
a copy of their decision shall also be delivered to the Department of 
Homeland Security's U.S. Citizenship and Immigration Services (USCIS), 
and to the Bureau of Consular Affairs of the Department of State. The 
Office, at its discretion, may further distribute the decision.
    (6) Unless otherwise indicated, the sanction, if affirmed or 
modified, shall be effective as of the date of the Review Officers' 
written decision, except in the case of suspension of program 
designation, which shall be effective as of the date specified pursuant 
to paragraph (c) of this section.
    (i) Effect of suspension, revocation, or denial of redesignation. A 
sponsor against which an order of suspension, revocation, or denial of 
redesignation has become effective shall not thereafter issue any 
Certificate of Eligibility for Exchange Visitor Status (form DS-2019) 
or advertise, recruit for, or otherwise promote its program. Under no 
circumstances shall the sponsor facilitate the entry of an exchange 
visitor into the United States. An order of suspension, revocation, or 
denial of redesignation shall not in any way diminish or restrict the 
sponsor's legal or financial responsibilities to existing program 
applicants or participants.
    (j) Miscellaneous.
    (1) Computation of time. In computing any period of time prescribed 
or allowed by these regulations, the day of the act or event from which 
the designated period of time begins to run is not included. The last 
day of the period so computed is included unless it is a Saturday, a 
Sunday, or a federal legal holiday, in which event the period runs 
until the end of the next day which is not one of the aforementioned 
days. When the period of time prescribed or allowed is fewer than 11 
days, intermediate Saturdays, Sundays, or federal legal holidays are 
excluded in the computation.
    (2) Service of notice on sponsor. Service of notice on a sponsor 
pursuant to this section may be accomplished through written notice by 
mail, delivery, or facsimile, upon the president, managing director, 
General Counsel, responsible officer, or alternate responsible officer 
of the sponsor.
    3. Subpart E is revised to read as follows:

Subpart E--Termination and Revocation of Programs

Sec.
62.60 Termination of designation.
62.61 Revocation.
62.62 Termination of, or denial of redesignation for, a class of 
designated programs.
62.63 Responsibilites of the sponsor upon termination or revocation.


Sec.  62.60  Termination of designation.

    Designation shall be terminated automatically upon the occurrence 
of any of the circumstances set forth in this section.
    (a) Voluntary termination. A sponsor notifies the Department of its 
intent to terminate its designation voluntarily and withdraws its 
program in SEVIS. The sponsor's designation shall terminate upon 
receipt of such notification. Such sponsor may reapply for program 
designation.
    (b) Inactivity. A sponsor fails to comply with the minimum program 
size or duration requirements, as specified in Sec.  62.8 (a) and (b), 
in any 12-month period. Such sponsor may reapply for program 
designation.
    (c) Failure to file annual reports. A sponsor fails to file annual 
reports for two (2) consecutive years. Such sponsor is eligible to 
reapply for program designation upon the filing of the past due annual 
reports.
    (d) Failure to file an annual management audit. A sponsor fails to 
file an annual management audit, if such audits are required in the 
relevant program category. Such sponsor is eligible to reapply for 
program designation upon the filing of the past due management audit.
    (e) Change in ownership or control. A major change in ownership or 
control occurs. An exchange visitor program designation is not 
assignable or transferable. However, the successor sponsor may apply to 
the Department for redesignation, and it may continue the exchange 
visitor activities while approval of the application for redesignation 
is pending.
    (1) With respect to a for-profit corporation, a major change in 
ownership or control shall be deemed to have occurred when thirty-three 
and one-third percent or more of its stock is sold or otherwise 
transferred within a 12-month period;
    (2) With respect to a not-for-profit corporation, a major change of 
control shall be deemed to have occurred when fifty-one percent or more 
of the board of trustees or other like body, vested with its 
management, is replaced within a 12-month period.
    (f) Non-compliance with other requirements. A sponsor fails to 
remain in compliance with local, state, federal, or professional 
requirements necessary to carry out the activity for which it is 
designated, including loss of accreditation or licensure.
    (g) Failure to apply for redesignation. A sponsor fails to apply 
for redesignation pursuant to the terms and conditions of Sec.  62.7, 
prior to the conclusion of its current designation period. If so 
terminated, the former sponsor may apply for a new designation, but the 
program activity shall be suspended during the pendency of the 
application.


Sec.  62.61  Revocation.

    The Department may terminate a sponsor's program designation by 
revocation for cause as specified in Sec.  62.50. Such sponsor may not 
apply for a new designation for five years following the effective date 
of the revocation.


Sec.  62.62  Termination of, or denial of redesignation for, a class of 
designated programs.

    The Department may, in its sole discretion, determine that a class 
of designated programs compromises the national security of the United 
States, or no longer furthers the public diplomacy mission of the 
Department of State. Upon such a determination, the Office shall:
    (a) Give all sponsors of such programs not less than 30 days' 
written notice of the revocation of Exchange Visitor Program 
designations for such

[[Page 30308]]

programs, specifying therein the grounds and effective date for such 
revocations; or
    (b) Give any sponsor of such programs not less than 30 days' 
written notice of its denial of the sponsor's application for 
redesignation, specifying therein the grounds for such denial and 
effective date of such denial. Revocation of designation or denial of 
redesignation on the above-specified grounds for a class of designated 
programs is the final decision of the Department.


Sec.  62.63  Responsibilities of the sponsor upon termination or 
revocation.

    Upon termination or revocation of its program designation, a 
sponsor must:
    (a) Fulfill its responsibilities to all exchange visitors who are 
in the United States at the time of the termination or revocation; and
    (b) Notify exchange visitors who have not entered the United States 
that the program has been terminated unless a transfer to another 
designated program can be obtained.

    Dated: 23, 2007.
Stanley S. Colvin,
Director, Office of Exchange Coordination and Designation, Bureau of 
Educational and Cultural Affairs, Department of State.
 [FR Doc. E7-10505 Filed 5-30-07; 8:45 am]
BILLING CODE 4710-05-P