[Federal Register Volume 80, Number 133 (Monday, July 13, 2015)]
[Proposed Rules]
[Pages 39977-39985]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-17034]


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DEPARTMENT OF THE TREASURY

31 CFR Part 22

RIN 1505-AC45


Nondiscrimination on the Basis of Race, Color, or National Origin 
in Programs or Activities Receiving Federal Financial Assistance

AGENCY: Department of the Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This proposed regulation provides for the enforcement of Title 
VI of the Civil Rights Act of 1964, as amended (``Title VI'') to the 
end that no person in the United States shall on the grounds of race, 
color, or national origin be denied participation in, be denied the 
benefits of, or be otherwise subjected to discrimination under any 
program or activity that receives federal financial assistance from the 
Department of the Treasury. The promulgation of this proposed 
regulation will provide guidance to the Department's recipients of 
federal financial assistance in complying with the provisions of Title 
VI and will also promote consistent and appropriate enforcement of 
Title VI by the Department's components.

DATES:  Written comments must be received on or before September 11, 
2015.

ADDRESSES: Interested persons are invited to submit comments regarding 
this notice of proposed rulemaking according to the instructions below. 
All submissions must refer to the document title. The Department 
encourages the early submission of comments.
    Electronic Submission of Comments: Interested persons may submit 
comments electronically through the Federal eRulemaking Portal at 
http://www.regulations.gov. Electronic submission of comments allows 
the commenter maximum time to prepare and submit a comment, ensures 
timely receipt, and enables the Department to make them available to 
the public. Comments submitted electronically through the http://www.regulations.gov Web site can be viewed by other commenters and 
interested members of the public. Commenters should follow the 
instructions provided on that site to submit comments electronically.
    Mail: Send comments to Mariam G. Harvey, Director, Office of Civil 
Rights and Diversity, 1500 Pennsylvania Avenue NW., Washington, DC 
20220; facsimile (202) 622-0367.

    Note:  To receive consideration as public comments, comments 
must be submitted through a method specified.

    Public Inspection of Public Comments: All properly submitted 
comments will be available for inspection and downloading at http://www.regulations.gov.
    Additional Instructions: In general comments received, including 
attachments and other supporting materials, are part of the public 
record and are available to the public. Do not submit any information 
in your comment or supporting materials that you consider confidential 
or inappropriate for public disclosure.

FOR FURTHER INFORMATION CONTACT: Mariam G. Harvey, Director, Office of 
Civil Rights and Diversity, Department of the Treasury, (202) 622-0316 
(voice), and (202) 622-7104 (TTY). All responses to this notice should 
be submitted via http://www.regulations.gov or by mail to ensure 
consideration.

SUPPLEMENTARY INFORMATION: 

I. Background

    The purpose of this proposed rule is to provide for the enforcement 
of Title VI of the Civil Rights Act of 1964, as amended (42 U.S.C. 
2000d, et seq.), as it applies to programs or activities receiving 
assistance from the Department of the Treasury. Specifically, the 
statute states that ``[n]o person in the United States shall, on the 
grounds of race, color, or national origin be denied participation in, 
be denied the benefits of, or be otherwise subjected to discrimination 
under any program or activity that receives federal financial 
assistance.'' 42 U.S.C. 2000d. Each federal agency subject to Title VI 
is required to issue regulations implementing Title VI. 28 CFR 42.403. 
The Department of the Treasury will be issuing Title VI regulations for 
the first time. The Department proposes regulations as Title VI of the 
Civil Rights Act of 1964, as amended, 42 U.S.C. 2000d to 2000d-7 
(``Title VI''), requires.

[[Page 39978]]

Title VI prohibits discrimination on the basis of race, color, and 
national origin in all programs or activities that receive federal 
financial assistance. Under Treasury's proposed Title VI implementing 
regulations, Treasury-funded programs are prohibited from taking acts, 
including permitting actions, that discriminate based on the 
statutorily protected classes. These proposed regulations further 
provide for Treasury procedures to ensure compliance, including a 
hearing procedure.

II. Applicable Executive Orders and Regulatory Certifications

Executive Order 12866

    Executive Orders 13563 and 12866 direct agencies to assess costs 
and benefits of available regulatory alternatives and, if regulation is 
necessary, to select regulatory approaches that maximize net benefits 
(including potential economic, environmental, public health and safety 
effects, distributive impacts, and equity). Executive Order 13563 
emphasizes the importance of quantifying both costs and benefits, of 
reducing costs, of harmonizing rules, and of promoting flexibility. 
This proposed rule has been designated a ``significant regulatory 
action'' although not economically significant, under section 3(f) of 
Executive Order 12866. Accordingly, this proposed rule has been 
reviewed by the Office of Management and Budget.

Unfunded Mandates Reform Act of 1995

    The Department certifies that no actions were deemed necessary 
under the Unfunded Mandates Reform Act of 1995. Furthermore, these 
proposed regulations will not result in the expenditure by State, 
local, and tribal governments, in the aggregate, or by the private 
sector, of $100,000,000 or more in any one year, and they will not 
significantly or uniquely affect small governments.

The Regulatory Flexibility Act

    The Department, in accordance with the Regulatory Flexibility Act, 
5 U.S.C. 605(b), has reviewed these Title VI regulations and by 
approving, certifies that these regulations will not have a significant 
economic impact on a substantial number of small entities because all 
of the entities that are subject to these regulations are already 
subject to Title VI, and some entities already are subject to the Title 
VI regulations of other agencies.
    This proposed rule, if adopted, is not a ``major rule,'' nor will 
it have a significant economic impact on a substantial number of small 
entities, in large part because these regulations do not impose any new 
substantive obligations on federal funding recipients. All recipients 
of federal funding have been bound by Title VI's antidiscrimination 
provision since 1964. Individual participants in the recipients' 
programs have thus long had the right to be free from discrimination on 
the basis of race, color, and national origin. This rule merely ensures 
that the Department and its components have regulations implementing 
this statute.

Executive Order 13132

    These Title VI regulations will not have substantial direct effects 
on the states, on the relationship between the national government and 
the States, or on the distribution of power and responsibilities among 
the various levels of government. These Title VI regulations do not 
subject recipients of federal funding to any new substantive 
obligations because all recipients of federal funding have been bound 
by Title VI's antidiscrimination provision since 1964. Moreover, these 
Title VI regulations are required by statute; Congress specifically 
directed federal agencies to adopt implementing regulations when Title 
VI was enacted. Therefore, in accordance with section 6 of Executive 
Order 13132, the Department has determined that this rule does not have 
sufficient federalism implications to warrant the preparation of a 
federalism summary impact statement. No further action is required.

Executive Order 12250

    The Attorney General has reviewed and approved this proposed rule 
pursuant to Executive Order 12250.

Paperwork Reduction Act

    Under the Paperwork Reduction Act (44 U.S.C. chapter 35), an agency 
may not conduct or sponsor and a person is not required to respond to a 
collection of information unless it displays a valid control number 
issued by the Office of Management and Budget (OMB). The information 
collections contained in this proposed rule will be submitted and 
approved by OMB in connection with information collections for the 
applicable programs listed in appendix A to the regulations.
    The information collections contained in this proposed rule are 
found in Sec. Sec.  22.5 (reporting), 22.6 (reporting and 
recordkeeping), 22.7 (reporting), and 22.10 (reporting).
    The OMB control numbers that will be revised include the following:

------------------------------------------------------------------------
                                  Program or
        Bureau/Office              activity          OMB Control Nos.
------------------------------------------------------------------------
Departmental Offices, Office   Community                       1559-0021
 of Domestic Finance, Office    Development
 of Financial Institutions.     Financial
                                Institutions
                                (CDFI) Fund--
                                Financial
                                Component.
Departmental Offices, Office   Community                       1559-0021
 of Domestic Finance, Office    Development
 of Financial Institutions.     Financial
                                Institutions
                                (CDFI) Fund--
                                Technical
                                Assistance
                                Component.
Departmental Offices, Office   Bank Enterprise      1559-0032, 1559-0005
 of Domestic Finance, Office    Award Program.
 of Financial Institutions.
Departmental Offices, Office   Native American                 1559-0021
 of Domestic Finance, Office    Community
 of Financial Institutions.     Development
                                Financial
                                Institutions
                                (CDFI)
                                Assistance
                                Program,
                                Financial
                                Assistance (FA)
                                Awards.
Departmental Offices, Office   Native American                 1559-0021
 of Domestic Finance, Office    Community
 of Financial Institutions.     Development
                                Financial
                                Institutions
                                (CDFI)
                                Assistance
                                (NACA) Program,
                                Technical
                                Assistance
                                Grants.
Departmental Offices, Office   Community                       1559-0043
 of Domestic Finance, Office    Development
 of Financial Institutions.     Financial
                                Institutions
                                Fund, Capital
                                Magnet Fund.
Departmental Offices, Office   State Small                     1505-0227
 of Domestic Finance, Office    Business Credit
 of Small Business, Community   Initiative.
 Development, and Housing
 Policy.
Internal Revenue Service.....  Tax Counseling                  1545-2222
                                for the Elderly
                                Grant Program.
Internal Revenue Service.....  Volunteer Income                1545-2222
                                Tax Assistance
                                Program.
Internal Revenue Service.....  Volunteer Income                1545-2222
                                Tax Assistance
                                Grant Program.
Internal Revenue Service.....  Low Income                      1545-1648
                                Taxpayer Clinic
                                Grant Program.
United States Mint...........  U.S.                                  TBD
                                Commemorative
                                Coin Programs.

[[Page 39979]]

 
Departmental Offices,          Equitable                       1505-0152
 Treasury Executive Office      sharing program
 for Asset Forfeiture.          (transfer of
                                forfeited
                                property to
                                state and local
                                law enforcement
                                agencies).
Departmental Offices, Office   Grants under the                1505-0250
 of the Fiscal Assistant        RESTORE Act's
 Secretary.                     Direct
                                Component and
                                Centers of
                                Excellence
                                program.
------------------------------------------------------------------------

    Comments on the collection of information should be sent to the 
Office of Management and Budget, Attention: Desk Officer for the 
Department of Treasury, Office of Information and Regulatory Affairs, 
Washington, DC 20503, or email to [email protected] with 
copies to the Department of Treasury at the addresses specified in the 
ADDRESSES section. Comments on the information collection should be 
submitted no later than September 11, 2015. Comments are specifically 
requested concerning:
    1. Whether the proposed information collection is necessary for the 
proper performance of agency functions, including whether the 
information will have practical utility;
    2. The accuracy of the estimated burden associated with the 
proposed collection of information, including the validity of the 
methodology and assumptions used (see below);
    3. How to enhance the quality, utility, and clarity of the 
information required to be maintained; and
    4. How to minimize the burden of complying with the proposed 
information collection, including the application of automated 
collection techniques or other forms of information technology.

List of Subjects in 31 CFR Part 22

    Civil rights, Reporting and recordkeeping requirements.

    For the reasons discussed in the preamble, the Department proposes 
to amend 31 CFR by adding part 22 to read as follows:

PART 22--NONDISCRIMINATION ON THE BASIS OF RACE, COLOR, OR NATIONAL 
ORIGIN IN PROGRAMS OR ACTIVITIES RECEIVING FEDERAL FINANCIAL 
ASSISTANCE FROM THE DEPARTMENT OF THE TREASURY

Sec.
22.1 Purpose.
22.2 Application.
22.3 Definitions.
22.4 Discrimination prohibited.
22.5 Assurances required.
22.6 Compliance information.
22.7 Conduct of investigations.
22.8 Procedure for effecting compliance.
22.9 Hearings.
22.10 Decisions and notices.
22.11 Judicial review.
22.12 Effect on other regulations, forms, and instructions.
Appendix A to Part 22--Activities to Which This Part Applies

    Authority:  42 U.S.C. 2000d-2000d-7.


Sec.  22.1  Purpose.

    The purpose of this part is to effectuate the provisions of Title 
VI of the Civil Rights Act of 1964 (Title VI) to the end that no person 
in the United States shall, on the grounds of race, color, or national 
origin, be excluded from participation in, be denied the benefits of, 
or be otherwise subjected to discrimination under any program or 
activity receiving federal financial assistance from the Department of 
the Treasury.


Sec.  22.2   Application.

    (a) This part applies to any program for which federal financial 
assistance is authorized under a law administered by the Department, 
including the types of federal financial assistance listed in Appendix 
A to this part. It also applies to money paid, property transferred, or 
other federal financial assistance extended after the effective date of 
this part pursuant to an application approved before that effective 
date. This part does not apply to:
    (1) Any federal financial assistance by way of insurance or 
guaranty contracts;
    (2) Any assistance to any individual who is the ultimate 
beneficiary; or
    (3) Any employment practice, under any such program, of any 
employer, employment agency, or labor organization, except to the 
extent described in Sec.  22.4(c). The fact that a type of federal 
financial assistance is not listed in Appendix A to this part shall not 
mean, if Title VI is otherwise applicable, that a program is not 
covered. Other types of federal financial assistance under statutes now 
in force or hereinafter enacted may be added to appendix A to this 
part.
    (b) In any program receiving federal financial assistance in the 
form, or for the acquisition, of real property or an interest in real 
property, to the extent that rights to space on, over, or under any 
such property are included as part of the program receiving that 
assistance, the nondiscrimination requirement of this part shall extend 
to any facility located wholly or in part in that space.


Sec.  22.3  Definitions.

    As used in this part:
    Applicant means a person who submits an application, request, or 
plan required to be approved by an official of the Department of the 
Treasury, or designee thereof, or by a primary recipient, as a 
condition to eligibility for federal financial assistance, and 
application means such an application, request, or plan.
    Designated agency official means the Assistant Secretary for 
Management and his or her designee.
    Facility includes all or any part of structures, equipment, or 
other real or personal property or interests therein, and the provision 
of facilities includes the construction, expansion, renovation, 
remodeling, alteration, or acquisition of facilities.
    Federal financial assistance includes:
    (1) Grants and loans of federal funds; (2) The grant or donation of 
federal property and interests in property;
    (3) The detail of federal personnel;
    (4) The sale and lease of, and the permission to use (on other than 
a casual or transient basis), federal property or any interest in such 
property without consideration or at a nominal consideration, or at a 
consideration which is reduced for the purpose of assisting the 
recipient, or in recognition of the public interest to be served by 
such sale or lease to the recipient; and
    (5) Any federal agreement, arrangement, or other contract which has 
as one of its purposes the provision of assistance.
    Primary recipient means any recipient that is authorized or 
required to extend federal financial assistance to another recipient.
    Program or activity and program mean all of the operations of any 
entity described in the following paragraphs (1) through (4) of this 
definition, any part of which is extended federal financial assistance:
    (1)(i) A department, agency, special purpose district, or other 
instrumentality of a State or of a local government; or
    (ii) The entity of such state or local government that distributes 
such assistance and each such department or agency to which the 
assistance is extended, in the case of assistance to a State or local 
government;

[[Page 39980]]

    (2)(i) A college, university, or other postsecondary institution, 
or a public system of higher education; or
    (ii) A local educational agency (as defined in 20 U.S.C. 7801), 
system of vocational education, or other school system;
    (3)(i) An entire corporation, partnership, or other private 
organization, or an entire sole proprietorship--
    (A) If assistance is extended to such corporation, partnership, 
private organization, or sole proprietorship as a whole; or
    (B) Which is principally engaged in the business of providing 
education, health care, housing, social services, or parks and 
recreation; or
    (ii) The entire plant or other comparable, geographically separate 
facility to which federal financial assistance is extended, in the case 
of any other corporation, partnership, private organization or sole 
proprietorship; or
    (4) Any other entity which is established by two or more of the 
entities described in the preceding paragraphs (1), (2), or (3) of this 
definition.
    Recipient may mean any State, territory, possession, the District 
of Columbia, or Puerto Rico, or any political subdivision thereof, or 
instrumentality thereof, any public or private agency, institution, or 
organization, or other entity, or any individual, in any State, 
territory, possession, the District of Columbia, or Puerto Rico, to 
whom federal financial assistance is extended, directly or through 
another recipient, including any successor, assignee, or transferee 
thereof, but such term does not include any ultimate beneficiary.


Sec.  22.4   Discrimination prohibited.

    (a) General. No person in the United States shall, on the grounds 
of race, color, or national origin be excluded from participation in, 
be denied the benefits of, or be otherwise subjected to discrimination 
under, any program to which this part applies.
    (b) Specific discriminatory actions prohibited. (1) A recipient to 
which this part applies may not, directly or through contractual or 
other arrangements, on the grounds of race, color, or national origin:
    (i) Deny a person any service, financial aid, or other benefit 
provided under the program;
    (ii) Provide any service, financial aid, or other benefit to a 
person which is different, or is provided in a different manner, from 
that provided to others under the program;
    (iii) Subject a person to segregation or separate treatment in any 
matter related to his receipt of any service, financial aid, or other 
benefit under the program;
    (iv) Restrict a person in any way in the enjoyment of any advantage 
or privilege enjoyed by others receiving any service, financial aid, or 
other benefit under the program;
    (v) Treat a person differently from others in determining whether 
he satisfies any admission, enrollment, quota, eligibility, membership, 
or other requirement or condition which persons must meet in order to 
be provided any service, financial aid, or other benefit provided under 
the program;
    (vi) Deny a person an opportunity to participate in the program 
through the provision of services or otherwise to afford him an 
opportunity to do so which is different from that afforded others under 
the program (including the opportunity to participate in the program as 
a volunteer or as an employee, but only to the extent set forth in 
paragraph (c) of this section); or
    (vii) Deny a person the opportunity to participate as a member of a 
planning, advisory, or similar body which is an integral part of the 
program.
    (2) A recipient, in determining the types of services, financial 
aid, or other benefits, or facilities which will be provided under any 
such program, or the class of persons to whom, or the situations in 
which, such services, financial aid, other benefits, or facilities will 
be provided under any such program, or the class of persons to be 
afforded an opportunity to participate in any such program, may not, 
directly or through contractual or other arrangements, use criteria or 
methods of administration which have the effect of subjecting persons 
to discrimination because of their race, color, or national origin or 
have the effect of defeating or substantially impairing accomplishment 
of the objectives of the program with respect to individuals of a 
particular race, color, or national origin.
    (3) In determining the site or location of facilities, a recipient 
or applicant may not make selections with the purpose or effect of 
excluding persons from, denying them the benefits of, or subjecting 
them to discrimination under any program to which this regulation 
applies, on the grounds of race, color, or national origin; or with the 
purpose or effect of defeating or substantially impairing the 
accomplishment of the objectives of Title VI or this part.
    (4) As used in this section the services, financial aid, or other 
benefits provided under a program receiving federal financial 
assistance include any service, financial aid, or other benefit 
provided in or through a facility provided with the aid of federal 
financial assistance.
    (5) The enumeration of specific forms of prohibited discrimination 
in this paragraph does not limit the generality of the prohibition in 
paragraph (a) of this section.
    (6) This part does not prohibit the consideration of race, color, 
or national origin if the purpose and effect are to remove or overcome 
the consequences of practices or impediments which have restricted the 
availability of, or participation in, the program or activity receiving 
federal financial assistance, on the grounds of race, color, or 
national origin. Where prior discriminatory practice or usage tends, on 
the grounds of race, color, or national origin to exclude individuals 
from participation in, to deny them the benefits of, or to subject them 
to discrimination under any program or activity to which this part 
applies, the applicant or recipient must take affirmative action to 
remove or overcome the effects of the prior discriminatory practice or 
usage. Even in the absence of prior discriminatory practice or usage, a 
recipient in administering a program or activity to which this part 
applies, may take affirmative action to assure that no person is 
excluded from participation in or denied the benefits of the program or 
activity on the grounds of race, color, or national origin.
    (c) Employment practices. (1) Where a primary objective of the 
federal financial assistance to a program to which this part applies is 
to provide employment, a recipient subject to this part shall not, 
directly or through contractual or other arrangements, subject a person 
to discrimination on the ground of race, color, or national origin in 
its employment practices under such program (including recruitment or 
recruitment advertising, hiring, firing, upgrading, promotion, 
demotion, transfer, layoff, termination, rates of pay or other forms of 
compensation or benefits, selection for training or apprenticeship, and 
use of facilities). Such recipient shall take affirmative action to 
insure that applicants are employed, and employees are treated during 
employment, without regard to their race, color, or national origin. 
The requirements applicable to construction employment under any such 
program shall be those specified in or pursuant to Part III of 
Executive Order 11246 or any Executive Order which supersedes it.
    (2) Where a primary objective of the federal financial assistance 
is not to provide employment, but

[[Page 39981]]

discrimination on the grounds of race, color, or national origin in the 
employment practices of the recipient or other persons subject to the 
regulation tends, on the grounds of race, color, or national origin, to 
exclude individuals from participation in, deny them the benefits of, 
or subject them to discrimination under any program to which this 
regulation applies, the provisions of paragraph (c)(1) of this section 
shall apply to the employment practices of the recipient or other 
persons subject to the regulation, to the extent necessary to assure 
equality of opportunity to, and nondiscriminatory treatment of, 
beneficiaries.


Sec.  22.5   Assurances required.

    (a) General. Either at the application stage or the award stage, 
federal agencies must ensure that applications for federal financial 
assistance or awards of federal financial assistance contain, be 
accompanied by, or be covered by a specifically identified assurance 
from the applicant or recipient, satisfactory to the designated agency 
official, that each program or activity operated by the applicant or 
recipient and to which these Title VI regulations apply will be 
operated in compliance with these Title VI regulations.
    (b) Duration of obligation. (1) In the case where the federal 
financial assistance is to provide or is in the form of personal 
property, or real property or interest therein or structures thereon, 
the assurance shall obligate the recipient, or, in the case of a 
subsequent transfer, the transferee, for the period during which the 
property is used for a purpose for which the federal financial 
assistance is extended or for another purpose involving the provision 
of similar services or benefits, or for as long as the recipient 
retains ownership or possession of the property, whichever is longer. 
In all other cases the assurance shall obligate the recipient for the 
period during which federal financial assistance is extended to the 
program.
    (2) In the case where federal financial assistance is provided in 
the form of a transfer of real property, structures, or improvements 
thereon, or interest therein, from the federal Government, the 
instrument effecting or recording the transfer shall contain a covenant 
running with the land assuring nondiscrimination for the period during 
which the real property is used for a purpose for which the federal 
financial assistance is extended or for another purpose involving the 
provision of similar services or benefits. Where no transfer of 
property or interest therein from the federal government is involved, 
but property is acquired or improved with federal financial assistance, 
the recipient shall agree to include such covenant in any subsequent 
transfer of such property. When the property is obtained from the 
federal government, such covenant may also include a condition coupled 
with a right to be reserved by the Department to revert title to the 
property in the event of a breach of the covenant where, in the 
discretion of the designated agency official, such a condition and 
right of reverter is appropriate to the statute under which the real 
property is obtained and to the nature of the grant and the grantee. In 
such event if a transferee of real property proposes to mortgage or 
otherwise encumber the real property as security for financing 
construction of new, or improvement of existing, facilities on such 
property for the purposes for which the property was transferred, the 
designated agency official may agree, upon request of the transferee 
and if necessary to accomplish such financing, and upon such conditions 
as the designated agency official deems appropriate, to subordinate 
such right of reversion to the lien of such mortgage or other 
encumbrance.
    (c) Continuing federal financial assistance. Every application by a 
State or a State agency for continuing federal financial assistance to 
which this part applies (including the types of federal financial 
assistance listed in appendix A to this part) shall as a condition to 
its approval and the extension of any federal financial assistance 
pursuant to the application:
    (1) Contain, be accompanied by, or be covered by a statement that 
the program is (or, in the case of a new program, will be) conducted in 
compliance with all requirements imposed by or pursuant to this part; 
and
    (2) Provide, be accompanied by, or be covered by provision for such 
methods of administration for the program as are found by the 
designated agency official to give reasonable guarantee that the 
applicant and all recipients of federal financial assistance under such 
program will comply with all requirements imposed by or pursuant to 
this part.
    (d) Assurance from institutions. (1) In the case of any application 
for federal financial assistance to an institution of higher education 
(including assistance for construction, for research, for special 
training projects, for student loans or for any other purpose), the 
assurance required by this section shall extend to admission practices 
and to all other practices relating to the treatment of students.
    (2) The assurance required with respect to an institution of higher 
education, hospital, or any other institution, insofar as the assurance 
relates to the institution's practices with respect to admission or 
other treatment of individuals as students, patients, or clients of the 
institution or to the opportunity to participate in the provision of 
services or other benefits to such individuals, shall be applicable to 
the entire institution.
    (e) Form. (1) The assurances required by paragraph (a) of this 
section, which may be included as part of a document that addresses 
other assurances or obligations, shall include that the applicant or 
recipient will comply with all applicable federal statutes relating to 
nondiscrimination. This includes but is not limited to Title VI of the 
Civil Rights Act of 1964, as amended, 42 U.S.C. 2000d, et seq.
    (2) The designated agency official will specify the extent to which 
such assurances will be required of the applicant's or recipient's 
subgrantees, contractors, subcontractors, transferees, or successors in 
interest. Any such assurance shall include provisions which give the 
United States a right to seek its judicial enforcement.


Sec.  22.6  Compliance information.

    (a) Cooperation and assistance. The designated Agency official 
shall to the fullest extent practicable seek the cooperation of 
recipients in obtaining compliance with this part and shall provide 
assistance and guidance to recipients to help them comply voluntarily 
with this part.
    (b) Compliance reports. Each recipient shall keep such records and 
submit to the designated Agency official timely, complete, and accurate 
compliance reports at such times, and in such form and containing such 
information, as the designated Agency official may determine to be 
necessary to enable the designated Agency official to ascertain whether 
the recipient has complied or is complying with this part. In the case 
in which a primary recipient extends federal financial assistance to 
any other recipient, such other recipient shall also submit such 
compliance reports to the primary recipient as may be necessary to 
enable the primary recipient to carry out its obligations under this 
part. In general recipients should have available for the designated 
Agency official racial and ethnic data showing the extent to which 
members of minority groups are beneficiaries of programs receiving 
federal financial assistance.
    (c) Access to sources of information. Each recipient shall permit 
access by the designated Agency official during

[[Page 39982]]

normal business hours to such of its books, records, accounts, and 
other sources of information, and its facilities as may be pertinent to 
ascertain compliance with this part. Where any information required of 
a recipient is in the exclusive possession of any other agency, 
institution, or person and this agency, institution, or person fails or 
refuses to furnish this information, the recipient shall so certify in 
its report and shall set forth what efforts it has made to obtain the 
information.
    (d) Information to beneficiaries and participants. Each recipient 
shall make available to participants, beneficiaries, and other 
interested persons such information regarding the provisions of this 
part and its applicability to the program for which the recipient 
receives federal financial assistance, and make such information 
available to them in such manner, as the designated Agency official 
finds necessary to apprise such persons of the protections against 
discrimination assured them by Title VI and this part.


Sec.  22.7  Conduct of investigations.

    (a) Periodic compliance reviews. The designated Agency official 
shall from time to time review the practices of recipients to determine 
whether they are complying with this part.
    (b) Complaints. Any person who believes that he or she, or any 
specific class of persons, has been subjected to discrimination 
prohibited by this part may by himself or herself, or by a 
representative, file with the designated Agency official a written 
complaint. A complaint must be filed not later than 180 days after the 
date of the alleged discrimination, unless the time for filing is 
extended by the designated Agency official.
    (c) Investigations. The designated Agency official will make a 
prompt investigation whenever a compliance review, report, complaint, 
or any other information indicates a possible failure to comply with 
this part. The investigation will include, where appropriate, a review 
of the pertinent practices and policies of the recipient, the 
circumstances under which the possible noncompliance with this part 
occurred, and other factors relevant to a determination as to whether 
the recipient has failed to comply with this part.
    (d) Resolution of matters. (1) If an investigation pursuant to 
paragraph (c) of this section indicates a failure to comply with this 
part, the designated Agency official will so inform the recipient and 
the matter will be resolved by informal means whenever possible. If it 
has been determined that the matter cannot be resolved by informal 
means, action will be taken as provided for in Sec.  22.8.
    (2) If an investigation does not warrant action pursuant to 
paragraph (d)(1) of this section the designated Agency official will so 
inform the recipient and the complainant, if any, in writing.
    (e) Intimidatory or retaliatory acts prohibited. No recipient or 
other person shall intimidate, threaten, coerce, or discriminate 
against any individual for the purpose of interfering with any right or 
privilege secured by section 601 of Title VI or this part, or because 
the individual has made a complaint, testified, assisted, or 
participated in any manner in an investigation, proceeding, or hearing 
under this part. The identity of complainants shall be kept 
confidential except to the extent necessary to carry out the purposes 
of this part, including the conduct of any investigation, hearing, or 
judicial proceeding arising thereunder.


Sec.  22.8  Procedure for effecting compliance.

    (a) General. If there appears to be a failure or threatened failure 
to comply with this part, and if the noncompliance or threatened 
noncompliance cannot be corrected by informal means, compliance with 
this part may be effected by the suspension or termination of or 
refusal to grant or to continue federal financial assistance or by any 
other means authorized by law. Such other means may include, but are 
not limited to:
    (1) A referral to the Department of Justice with a recommendation 
that appropriate proceedings be brought to enforce any rights of the 
United States under any law of the United States (including other 
titles of the Civil Rights Act of 1964), or any assurance or other 
contractual undertaking; and
    (2) Any applicable proceeding under State or local law.
    (b) Noncompliance with Sec.  22.5. If an applicant fails or refuses 
to furnish an assurance required under Sec.  22.5 or otherwise fails or 
refuses to comply with a requirement imposed by or pursuant to that 
section, federal financial assistance may be suspended, terminated, or 
refused in accordance with the procedures of paragraph (c) of this 
section. The Agency shall not be required to provide assistance in such 
a case during the pendency of the administrative proceedings under such 
paragraph. However, subject to Sec.  22.12, the Agency shall continue 
assistance during the pendency of such proceedings where such 
assistance is due and payable pursuant to an application approved prior 
to the effective date of this part.
    (c) Termination of or refusal to grant or to continue federal 
financial assistance. (1) No order suspending, terminating, or refusing 
to grant or continue federal financial assistance shall become 
effective until:
    (i) The designated Agency official has advised the applicant or 
recipient of the applicant's or recipient's failure to comply and has 
determined that compliance cannot be secured by voluntary means;
    (ii) There has been an express finding on the record, after 
opportunity for hearing, of a failure by the applicant or recipient to 
comply with a requirement imposed by or pursuant to this part;
    (iii) The action has been approved by the designated Agency 
official pursuant to Sec.  22.10(e); and
    (iv) The expiration of 30 days after the designated Agency official 
has filed with the committee of the House and the committee of the 
Senate having legislative jurisdiction over the program involved, a 
full written report of the circumstances and the grounds for such 
action.
    (2) Any action to suspend or terminate or to refuse to grant or to 
continue federal financial assistance shall be limited to the 
particular political entity, or part thereof, or other applicant or 
recipient as to whom such a finding has been made and shall be limited 
in its effect to the particular program, or part thereof, in which such 
noncompliance has been so found.
    (d) Other means authorized by law. No action to effect compliance 
with Title VI by any other means authorized by law shall be taken by 
the Department of the Treasury until:
    (1) The designated Agency official has determined that compliance 
cannot be secured by voluntary means;
    (2) The recipient or other person has been notified of its failure 
to comply and of the action to be taken to effect compliance; and
    (3) The expiration of at least 10 days from the mailing of such 
notice to the recipient or other person. During this period of at least 
10 days, additional efforts shall be made to persuade the recipient or 
other person to comply with the regulation and to take such corrective 
action as may be appropriate.


Sec.  22.9  Hearings.

    (a) Opportunity for hearing. Whenever an opportunity for a hearing 
is required by Sec.  22.8(c), reasonable notice shall be given by 
registered or certified mail, return receipt requested, to the affected 
applicant or recipient. This notice shall advise the applicant or 
recipient of the

[[Page 39983]]

action proposed to be taken, the specific provision under which the 
proposed action against it is to be taken, and the matters of fact or 
law asserted as the basis for this action, and either:
    (1) Fix a date not less than 20 days after the date of such notice 
within which the applicant or recipient may request of the designated 
agency official that the matter be scheduled for hearing; or
    (2) Advise the applicant or recipient that the matter in question 
has been set for hearing at a stated place and time. The time and place 
so fixed shall be reasonable and shall be subject to change for cause. 
The complainant, if any, shall be advised of the time and place of the 
hearing. An applicant or recipient may waive a hearing and submit 
written information and argument for the record. The failure of an 
applicant or recipient to request a hearing under this paragraph or to 
appear at a hearing for which a date has been set shall be deemed to be 
a waiver of the right to a hearing under section 602 of Title VI and 
Sec.  22.8(c) and consent to the making of a decision on the basis of 
such information as is available.
    (b) Time and place of hearing. Hearings shall be held at the 
offices of the Department of the Treasury component administering the 
program, at a time fixed by the designated Agency official unless the 
designated Agency official determines that the convenience of the 
applicant or recipient or of the Agency requires that another place be 
selected. Hearings shall be held before the designated Agency official, 
or at designated Agency official's discretion, before a hearing 
examiner appointed in accordance with section 3105 of title 5, United 
States Code, or detailed under section 3344 of title 5, United States 
Code.
    (c) Right to counsel. In all proceedings under this section, the 
applicant or recipient and the Agency shall have the right to be 
represented by counsel.
    (d) Procedures, evidence, and record. (1) The hearing, decision, 
and any administrative review thereof shall be conducted in conformity 
with sections 554 through 557 of title 5, United States Code, and in 
accordance with such rules of procedure as are proper (and not 
inconsistent with this section) relating to the conduct of the hearing, 
giving of notices subsequent to those provided for in paragraph (a) of 
this section, taking of testimony, exhibits, arguments and briefs, 
requests for findings, and other related matters. Both the designated 
Agency official and the applicant or recipient shall be entitled to 
introduce all relevant evidence on the issues as stated in the notice 
for hearing or as determined by the officer conducting the hearing at 
the outset of or during the hearing.
    (2) Technical rules of evidence do not apply to hearings conducted 
pursuant to this part, but rules or principles designed to assure 
production of the most credible evidence available and to subject 
testimony to test by cross-examination shall be applied where 
determined reasonably necessary by the officer conducting the hearing. 
The hearing officer may exclude irrelevant, immaterial, or unduly 
repetitious evidence. All documents and other evidence offered or taken 
for the record shall be open to examination by the parties and 
opportunity shall be given to refute facts and arguments advanced on 
either side of the issues. A transcript shall be made of the oral 
evidence except to the extent the substance thereof is stipulated for 
the record. All decisions shall be based upon the hearing record and 
written findings shall be made.
    (e) Consolidated or joint hearings. In cases in which the same or 
related facts are asserted to constitute noncompliance with this part 
with respect to two or more federal statutes, authorities, or other 
means by which federal financial assistance is extended and to which 
this part applies, or noncompliance with this part and the regulations 
of one or more other federal departments or agencies issued under Title 
VI, the designated Agency official may, by agreement with such other 
departments or agencies, where applicable, provide for the conduct of 
consolidated or joint hearings, and for the application to such 
hearings of rules or procedures not inconsistent with this part. Final 
decisions in such cases, insofar as this regulation is concerned, shall 
be made in accordance with Sec.  22.10.


Sec.  22.10  Decisions and notices.

    (a) Procedure on decisions by hearing examiner. If the hearing is 
held by a hearing examiner, the hearing examiner shall either make an 
initial decision, if so authorized, or certify the entire record 
including his recommended findings and proposed decision to the 
designated agency official for a final decision, and a copy of such 
initial decision or certification shall be mailed to the applicant or 
recipient. Where the initial decision is made by the hearing examiner 
the applicant or recipient may, within 30 days after the mailing of 
such notice of initial decision, file with the designated Agency 
official the applicant's or recipient's exceptions to the initial 
decision, with the reasons therefor. In the absence of exceptions, the 
designated Agency official may, on his or her own motion, within 45 
days after the initial decision, serve on the applicant or recipient a 
notice that the designated Agency official will review the decision. 
Upon the filing of such exceptions or of notice of review, the 
designated Agency official shall review the initial decision and issue 
his or her own decision thereon including the reasons therefor. In the 
absence of either exceptions or a notice of review the initial decision 
shall, subject to paragraph (e) of this section, constitute the final 
decision of the designated Agency official.
    (b) Decisions on record or review by the designated Agency 
official. Whenever a record is certified to the designated Agency 
official for decision or he or she reviews the decision of a hearing 
examiner pursuant to paragraph (a) of this section, or whenever the 
designated Agency official conducts the hearing, the applicant or 
recipient shall be given reasonable opportunity to file with the 
designated Agency official briefs or other written statements of its 
contentions, and a written copy of the final decision of the designated 
Agency official shall be sent to the applicant or recipient and to the 
complainant, if any.
    (c) Decisions on record where a hearing is waived. Whenever a 
hearing is waived pursuant to Sec.  22.9, a decision shall be made by 
the designated Agency official on the record and a written copy of such 
decision shall be sent to the applicant or recipient, and to the 
complainant, if any.
    (d) Rulings required. Each decision of a hearing examiner or the 
designated Agency official shall set forth his or her ruling on each 
finding, conclusion, or exception presented, and shall identify the 
requirement or requirements imposed by or pursuant to this part with 
which it is found that the applicant or recipient has failed to comply.
    (e) Approval by designated Agency official. Any final decision by 
an official of the Agency, other than the designated Agency official 
personally, which provides for the suspension or termination of, or the 
refusal to grant or continue federal financial assistance, or the 
imposition of any other sanction available under this part or Title VI, 
shall promptly be transmitted to the designated Agency official 
personally, who may approve such decision, may vacate it, or remit or 
mitigate any sanction imposed.
    (f) Content of orders. The final decision may provide for 
suspension or termination of, or refusal to grant or continue federal 
financial assistance, in whole or in part, to which this regulation 
applies, and may contain

[[Page 39984]]

such terms, conditions, and other provisions as are consistent with and 
will effectuate the purposes of Title VI and this part, including 
provisions designed to assure that no federal financial assistance to 
which this regulation applies will thereafter be extended to the 
applicant or recipient determined by such decision to be in default in 
its performance of an assurance given by it pursuant to this part, or 
to have otherwise failed to comply with this part, unless and until it 
corrects its noncompliance and satisfies the designated Agency official 
that it will fully comply with this part.
    (g) Post termination proceedings. (1) An applicant or recipient 
adversely affected by an order issued under paragraph (f) of this 
section shall be restored to full eligibility to receive federal 
financial assistance if it satisfies the terms and conditions of that 
order for such eligibility or if it brings itself into compliance with 
this part and provides reasonable assurance that it will fully comply 
with this part.
    (2) Any applicant or recipient adversely affected by an order 
entered pursuant to paragraph (f) of this section may at any time 
request the designated Agency official to restore fully its eligibility 
to receive federal financial assistance. Any such request shall be 
supported by information showing that the applicant or recipient has 
met the requirements of paragraph (g)(1) of this section. If the 
designated Agency official determines that those requirements have been 
satisfied, he or she shall restore such eligibility.
    (3) If the designated Agency official denies any such request, the 
applicant or recipient may submit a request for a hearing in writing, 
specifying why it believes such official to have been in error. It 
shall thereupon be given an expeditious hearing, with a decision on the 
record in accordance with rules or procedures issued by the designated 
Agency official. The applicant or recipient will be restored to such 
eligibility if it proves at such a hearing that it satisfied the 
requirements of paragraph (g)(1) of this section. While proceedings 
under this paragraph are pending, the sanctions imposed by the order 
issued under paragraph (f) of this section shall remain in effect.


Sec.  22.11  Judicial review.

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


Sec.  22.12  Effect on other regulations, forms, and instructions.

    (a) Effect on other regulations. All regulations, orders, or like 
directions issued before the effective date of this part by any officer 
of the Department of the Treasury which impose requirements designed to 
prohibit any discrimination against individuals on the grounds of race, 
color, or national origin under any program to which this part applies, 
and which authorize the suspension or termination of or refusal to 
grant or to continue federal financial assistance to any applicant for 
a recipient of such assistance for failure to comply with such 
requirements, are hereby superseded to the extent that such 
discrimination is prohibited by this part, except that nothing in this 
part may be considered to relieve any person of any obligation assumed 
or imposed under any such superseded regulation, order, instruction, or 
like direction before the effective date of this part. Nothing in this 
part, however, supersedes any of the following (including future 
amendments thereof):
    (1) Executive Order 11246 (3 CFR, 1965 Supp., p. 167) and 
regulations issued thereunder; or
    (2) Any other orders, regulations, or instructions, insofar as such 
orders, regulations, or instructions prohibit discrimination on the 
ground of race, color, or national origin in any program or situation 
to which this part is inapplicable, or prohibit discrimination on any 
other ground.
    (b) Forms and instructions. The designated Agency official shall 
issue and promptly make available to all interested persons forms and 
detailed instructions and procedures for effectuating this part as 
applied to programs to which this part applies and for which the 
designated Agency official is responsible.
    (c) Supervision and coordination. The designated Agency official 
may from time to time assign to officials of the Agency, or to 
officials of other departments or agencies of the Government with the 
consent of such departments or agencies, responsibilities in connection 
with the effectuation of the purposes of Title VI and this part (other 
than responsibility for final decision as provided in Sec.  22.10), 
including the achievement of effective coordination and maximum 
uniformity within the Agency and within the Executive Branch of the 
Government in the application of Title VI and this part to similar 
programs and in similar situations. Any action taken, determination 
made or requirement imposed by an official of another department or 
agency acting pursuant to an assignment of responsibility under this 
paragraph shall have the same effect as though such action had been 
taken by the designated Agency official of the Department.

Appendix A to Part 22--Activities to Which This Part Applies

    Note: Failure to list a type of federal assistance in this 
appendix A shall not mean, if Title VI is otherwise applicable, that 
a program is not covered.

------------------------------------------------------------------------
                                      Program or
            Component                  activity            Authority
------------------------------------------------------------------------
Departmental Offices, Office of   Community           Riegle Community
 Domestic Finance, Office of       Development         Development and
 Financial Institutions.           Financial           Regulatory
                                   Institutions        Improvement Act
                                   Fund--Financial     of 1994, 12
                                   Component.          U.S.C. 4701 et
                                                       seq.
Departmental Offices, Office of   Community           Riegle Community
 Domestic Finance, Office of       Development         Development and
 Financial Institutions.           Financial           Regulatory
                                   Institutions        Improvement Act
                                   Fund--Technical     of 1994, 12
                                   Assistance          U.S.C. 4701 et
                                   Component.          seq.
Departmental Offices, Office of   Bank Enterprise     Riegle Community
 Domestic Finance, Office of       Award Program.      Development and
 Financial Institutions.                               Regulatory
                                                       Improvement Act
                                                       of 1994 sec. 114,
                                                       12 U.S.C. 4713.
Departmental Offices, Office of   Native American     Riegle Community
 Domestic Finance, Office of       Community           Development
 Financial Institutions.           Development         Banking and
                                   Financial           Financial
                                   Institutions        Institutions Act
                                   Assistance          of 1994, 12
                                   Program,            U.S.C. 4701 et
                                   Financial           seq.
                                   Assistance (FA)
                                   Awards.
Departmental Offices, Office of   Native American     Riegle Community
 Domestic Finance, Office of       Community           Development
 Financial Institutions.           Development         Banking and
                                   Financial           Financial
                                   Institutions        Institutions Act
                                   Assistance (NACA)   of 1994, 12
                                   Program,            U.S.C. 4701 et
                                   Technical           seq.
                                   Assistance Grants.
Departmental Offices, Office of   Community           Housing and
 Domestic Finance, Office of       Development         Economic Recovery
 Financial Institutions.           Financial           Act of 2008 sec.
                                   Institutions        1339, 12 U.S.C.
                                   Fund, Capital       4569.
                                   Magnet Fund.

[[Page 39985]]

 
Departmental Offices, Office of   State Small         Small Business
 Domestic Finance, Office of       Business Credit     Jobs Act of 2010,
 Small Business, Community         Initiative.         12 U.S.C. 5701 et
 Development, and Housing Policy.                      seq.
Internal Revenue Service........  Tax Counseling for  Revenue Act of
                                   the Elderly Grant   1978 sec. 163,
                                   Program.            Pub. L. 95-600,
                                                       92 Stat 2763,
                                                       2810-2811.
Internal Revenue Service........  Volunteer Income    Tax Reform Act of
                                   Tax Assistance      1969, Pub. L. 91-
                                   Program.            172, 83 Stat.
                                                       487.
Internal Revenue Service........  Volunteer Income    Consolidated
                                   Tax Assistance      Appropriations
                                   Grant Program.      Act, Pub. L. 110-
                                                       161, 121 Stat.
                                                       1844, 1975-76
                                                       (2007).
Internal Revenue Service........  Low Income          Internal Revenue
                                   Taxpayer Clinic     Service
                                   Grant Program.      Restructuring and
                                                       Reform Act of
                                                       1998 sec. 3601,
                                                       26 U.S.C. 7526.
United States Mint..............  U.S. Commemorative  Specific acts of
                                   Coin Programs.      Congress that
                                                       authorize United
                                                       States
                                                       commemorative
                                                       coin and medal
                                                       programs provide
                                                       assistance. See,
                                                       e.g., the Louis
                                                       Braille
                                                       Bicentennial--Bra
                                                       ille Literacy
                                                       Commemorative
                                                       Coin Act, Pub. L.
                                                       109-247 (2006);
                                                       the Boy Scouts of
                                                       America
                                                       Centennial
                                                       Commemorative
                                                       Coin Act, Pub. L.
                                                       110-363 (2008);
                                                       the American
                                                       Veterans Disabled
                                                       for Life
                                                       Commemorative
                                                       Coin Act, Pub. L.
                                                       110-277 (2008);
                                                       and the National
                                                       September 11
                                                       Memorial & Museum
                                                       Commemorative
                                                       Medal Act of
                                                       2010, Pub. L. 111-
                                                       221 (2010).
Departmental Offices, Treasury    Equitable sharing   18 U.S.C.
 Executive Office for Asset        program (transfer   981(e)(2); 21
 Forfeiture.                       of forfeited        U.S.C.
                                   property to state   881(e)(1)(A); 31
                                   and local law       U.S.C. 9703.
                                   enforcement
                                   agencies).
Various Treasury Bureaus and      Unreimbursed        5 U.S.C. 3371
 Offices (including the Internal   detail of Federal   through 3376.
 Revenue Service).                 Employees through
                                   the
                                   Intergovernmental
                                   Personnel Act.
Departmental Offices, Office of   Grants under the    Resources and
 the Fiscal Assistant Secretary.   RESTORE Act's       Ecosystems
                                   Direct Component    Sustainability,
                                   and Centers of      Tourist
                                   Excellence          Opportunities,
                                   program and         and Revived
                                   supplemental        Economies of the
                                   compliance          Gulf Coast States
                                   responsibilities    Act of 2012, Pub.
                                   for its             L. 112-141.
                                   Comprehensive
                                   Plan and Spill
                                   Impact Components.
------------------------------------------------------------------------


Brodi Fontenot,
Assistant Secretary for Management.

[FR Doc. 2015-17034 Filed 7-10-15; 8:45 am]
 BILLING CODE 4810-25-P