Regulation Regarding Nondiscrimination on the Basis of Race, Color, or National Origin in Programs or Activities Receiving Federal Financial Assistance From the Department of the Treasury, 89852-89861 [2016-29629]

Download as PDF pmangrum on DSK3GDR082PROD with RULES 89852 Federal Register / Vol. 81, No. 239 / Tuesday, December 13, 2016 / Rules and Regulations is otherwise disregarded as an entity separate from its owner. * * * * * (c) * * * (2) * * * (vi) Special rule for reporting under section 6038A—(A) In general. An entity that is disregarded as an entity separate from its owner for any purpose under this section is treated as an entity separate from its owner and classified as a corporation for purposes of section 6038A if— (1) The entity is a domestic entity; and (2) One foreign person has direct or indirect sole ownership of the entity. (B) Definitions—(1) Indirect sole ownership. For purposes of paragraph (c)(2)(vi)(A)(2) of this section, indirect sole ownership means ownership by one person entirely through one or more other entities disregarded as entities separate from their owners or through one or more grantor trusts, regardless of whether any such disregarded entity or grantor trust is domestic or foreign. (2) Entity disregarded as separate from its owner. For purposes of paragraph (c)(2)(vi)(B)(1) of this section, an entity disregarded as an entity separate from its owner is an entity described in paragraph (c)(2)(i) of this section. (3) Grantor trust. For purposes of paragraph (c)(2)(vi)(B)(1) of this section, a grantor trust is any portion of a trust that is treated as owned by the grantor or another person under subpart E of subchapter J of chapter 1 of the Code. (C) Taxable year. The taxable year of an entity classified as a corporation for section 6038A purposes pursuant to paragraph (c)(2)(vi)(A) of this section is— (1) The same as the taxable year of the foreign person described in paragraph (c)(2)(vi)(A)(2) of this section, if that foreign person has a U.S. income tax or information return filing obligation for its taxable year; or (2) The calendar year, if paragraph (c)(2)(vi)(C)(1) of this section does not apply, unless otherwise provided in forms, instructions, or published guidance. * * * * * (e) * * * (9) Reporting required under section 6038A. Paragraph (c)(2)(vi) of this section applies to taxable years of entities beginning after December 31, VerDate Sep<11>2014 15:03 Dec 12, 2016 Jkt 241001 2016, and ending on or after December 13, 2017. John Dalrymple, Deputy Commissioner for Services and Enforcement. Approved: November 15, 2016. Mark J. Mazur, Assistant Secretary of the Treasury (Tax Policy). [FR Doc. 2016–29641 Filed 12–12–16; 8:45 am] BILLING CODE 4830–01–P DEPARTMENT OF THE TREASURY 31 CFR Part 22 RIN 1505–AC45 Regulation Regarding Nondiscrimination on the Basis of Race, Color, or National Origin in Programs or Activities Receiving Federal Financial Assistance From the Department of the Treasury Department of the Treasury. Final rule. AGENCY: ACTION: This final rule 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 final 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. Through this final rule, the Department also notifies beneficiaries of its programs offering financial assistance of the protections against discrimination based on race, color, and national origin. DATES: Effective January 12, 2017. FOR FURTHER INFORMATION CONTACT: Mariam G. Harvey, Director, Office of Civil Rights and Diversity, Department of the Treasury, (202) 622–0316 (voice), by mail to Mariam G. Harvey, Director, Office of Civil Rights and Diversity, 1500 Pennsylvania Avenue NW., Washington, DC 20220; or facsimile (202) 622–0367. SUPPLEMENTARY INFORMATION: SUMMARY: I. Purpose of the Regulatory Action The purpose of this final rule is to provide for the enforcement of Title VI of the Civil Rights Act of 1964, as PO 00000 Frm 00022 Fmt 4700 Sfmt 4700 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 is issuing Title VI regulations for the first time. Under Treasury’s Title VI implementing regulations, Treasuryfunded programs are prohibited from taking acts, including permitting actions, that discriminate based on the statutorily protected classes. The regulations further provide for Treasury procedures to ensure compliance, including a hearing procedure. Prior to this rule, the Department was requiring recipients of financial assistance to sign assurances of compliance with Title VI. With the issuance of this final rule, the Department will continue to require assurance of compliance and strengthen its civil rights compliance requirements. II. Background A. Treasury’s July 13, 2015, Proposed Rule On July 13, 2015, at 80 FR 39977, Treasury published its proposed rule implementing Title VI. Each federal agency subject to Title VI is required to issue regulations implementing Title VI. 42 U.S.C. 2000d to 2000d–7; 28 CFR 42.403. The comment period for the proposed rule ended on September 11, 2015. III. Public Comments and Treasury’s Response A. The Public Comments Generally The public posted six comments to the Notice of Proposed Rulemaking implementing Title VI. Three comments were from public interest groups. One comment was from a city government office. Two individuals also commented, but one of the comments was nonresponsive. All public comments can be viewed at https://www. regulations.gov/#!docketBrowser; rpp=25;po=0;dct=PS%252BPR;D= TREAS-DO-2015-0006. The comments can be grouped in two main subjects: Data collection and coverage of Low Income Housing Credits (LIHTCs). E:\FR\FM\13DER1.SGM 13DER1 Federal Register / Vol. 81, No. 239 / Tuesday, December 13, 2016 / Rules and Regulations pmangrum on DSK3GDR082PROD with RULES B. Specific Public Comments 1. Burden of Data Collection Comment: A commenter disagreed with the collection of the ethnicity of the taxpayers receiving tax preparation services through Volunteer Income Tax Assistance (VITA), stating that the information will not help prove or disprove discrimination. The commenter opined that the best data are gained from the feedback received from bureau employees and from the taxpayers who report having issues at a VITA site. The commenter favors the current compliance practices (displaying a poster, providing information about where to file a complaint, and unannounced site visits) as a far better method for monitoring compliance with nondiscrimination regulations. Treasury Response: Treasury agrees that the practices in place are useful, and they will continue under the final rule. Treasury disagrees with this commenter’s view on data collection, however, because it is required for the appropriate enforcement of Title VI. The coordination regulations issued by the Department of Justice (DOJ) under the authority of Executive Order 12250 require agencies to ‘‘provide for the collection of data and information from applicants for and recipients of federal assistance sufficient to permit the effective enforcement of Title VI.’’ 28 CFR 42.406(a). Collecting information about the race and ethnicity of program beneficiaries will help the Department ensure its programs that offer financial assistance are providing equal opportunity to the eligible beneficiaries, regardless of their race and national origin. The data will also allow the Department to investigate discrimination complaints alleging a violation of Title VI adequately. Comment: A commenter suggests the grantees should have to supplement local data and/or common knowledge regarding the actual neighborhoods that exist within each program jurisdiction, to enhance the utility of the information required to be maintained for assessing the success of Title VI enforcement. Treasury Response: The Department plans to issue guidelines regarding data collection in accordance with the requirements in 28 CFR 42.406. The Department will collect data sufficient for the effective enforcement of Title VI. The government-wide coordination regulations state that where an agency determines that the collection of additional data, such as demographic maps, the racial composition of affected neighborhoods, or census data, is necessary or appropriate, the agency VerDate Sep<11>2014 15:03 Dec 12, 2016 Jkt 241001 shall specify, in its guidelines or in other directives, the need to submit such data. The Department can collect such additional data only to the extent that it is readily available or can be compiled with reasonable effort. Comment: A commenter recommends as a way to minimize the burden of complying with the proposed information collection, Treasury implement a standard form for reporting compliance to agency officials (referencing § 22.6 of the proposed rule that obligates recipients to submit compliance reports). A standard form will also promote consistency and appropriate enforcement of Title VI by the Department’s components. Treasury Response: Treasury agrees that a standard form for reporting compliance information will assist its recipients and promote consistency across the Department’s components. The Department will issue guidance to its recipients and agency officials regarding data collection as required by the government-wide coordination regulations, and will consider making a data collection form part of the upcoming guidance. Comment: A commenter asks what is to be gleaned from the data if a high number of participants opt not to answer the racial and ethnic data question. The commenter wanted to know if recipients will be asked to guess the taxpayers’ ethnic backgrounds. Treasury Response: The Department will provide guidance to its recipients regarding data collection as required by the government-wide coordination regulations, and in accordance with Office of Management and Budget (OMB) guidance, including OMB Statistical Policy Directive No. 15, as revised; and OMB Bulletin No. 00–02. Self-identification is the preferred method of data collection about race and ethnicity. OMB guidance states that respect for individual dignity should guide the processes and methods for collecting data on race and ethnicity. Respondent self-identification should be used to the greatest extent possible, but observer identification is more practical in some data collection systems. Comment: A commenter asked if the Department will assume that if the vast majority of beneficiaries receiving benefits at a site belong to a particular ethnic background discrimination has occurred. Treasury Response: Data showing the race and ethnicity of the program beneficiaries are relevant to determine compliance with the requirements of Title VI by the recipients of Treasury financial assistance. If the Department finds during a compliance review or PO 00000 Frm 00023 Fmt 4700 Sfmt 4700 89853 investigation that a protected group in the population of the service area is not participating in the program, the Department will look at the entire record to determine the reason for the lack of participation, and whether corrective actions are needed. The Department will discuss issues of noncompliance with its recipients with the goal of achieving voluntary compliance. Comment: Two commenters were concerned that increasing the burden on recipients of the VITA program will result in further reduction in the number of volunteers. The commenters stated they oppose any changes created by the rule that would result in additional burden to recipients of the VITA program by requiring additional documentation, reporting, and records retention. One commenter supports the information collection and is in agreement that the information collection does not subject recipients to any new substantive obligations, and that the economic burden associated with the collection of information will not significantly affect small governments or entities. Treasury Response: The Department believes that any burden created by the requirements of the new rule, including the collection of data, is reasonable and justified by the goal of ensuring equal opportunity and nondiscrimination in the financial assistance programs. In the case of the VITA program, the recipients are already collecting data from the beneficiaries using the intake forms required by the program. 2. Inclusion of Low-Income Housing Credits in the Covered Programs Comments: Three commenters stated that low-income housing credits (LIHTCs) should be included in the list of programs in the Appendix. These commenters stated that tax credits like LIHTCs provide a subsidy to achieve a specific public benefit and are federal financial assistance (FFA) for the purposes of Title VI. The three commenters stressed the important role LIHTCs play in the development of affordable housing, and stated that listing LIHTCs as FFA would protect millions of low-income individuals from housing discrimination. Treasury Response: We agree with commenters regarding the importance of protecting the civil rights of individuals living in properties developed using LIHTCs. Other federal civil rights statutes, including the Fair Housing Act, 42 U.S.C. 3601 et seq. (FHA), prohibit discrimination on the bases of race, color, religion, sex, national origin, familial status, and disability, and apply E:\FR\FM\13DER1.SGM 13DER1 pmangrum on DSK3GDR082PROD with RULES 89854 Federal Register / Vol. 81, No. 239 / Tuesday, December 13, 2016 / Rules and Regulations to LIHTC properties. * * * The FHA prohibits both intentional discrimination and practices that have an unjustified discriminatory effect. Treasury’s commitment to ensuring that developers, owners, operators, and managers of LIHTC properties do not discriminate, consistent with tax regulations that require LIHTC buildings to comply with fair-housing requirements, includes a 2000 Memorandum of Understanding (MOU) with the Department of Justice and the Department of Housing and Urban Development. This MOU is aimed at ensuring that developers, owners, operators, and managers of LIHTC properties comply with the FHA. See https://www.irs.gov/businesses/smallbusinesses-self-employed/exhibit-13-2. Among other provisions, the MOU requires the IRS to notify owners of LIHTC properties facing allegations of housing discrimination that a finding of a violation of the FHA could result in a loss of LIHTCs. This MOU demonstrates Treasury’s commitment to ensuring that LIHTC housing providers do not discriminate in violation of the FHA. The comments also stated that Title VI coverage was important to ensure that state agencies allocate housing credit dollar amounts (that is, the eligibility to earn LIHTCs) among proposed projects consistent with civil rights goals. These state agencies allocating housing credit dollar amounts may also receive grants or other forms of FFA from another federal agency, such as the Department of Housing and Urban Development, which would result in Title VI coverage for all of the state agency’s operations. Thus, if an individual or organization believes that a state agency is allocating housing credit dollar amounts in a manner inconsistent with the requirements of Title VI, that individual or organization may determine whether the state agency is otherwise receiving FFA (which may include consulting www.usaspending.gov) and may file a complaint with the appropriate federal agency. Civil rights protections thereby cover LIHTC allocations and properties receiving LIHTCs regardless of whether the credits themselves constitute FFA as a legal matter. While tax credits are generally not considered FFA, we recognize that, as the commenters have pointed out, some aspects of LIHTCs resemble programs that constitute FFA. Though we are not including LIHTCs in the Appendix, we emphasize that the Appendix does not purport to be exhaustive, and the absence of a program or activity from the list does not by such absence limit the applicability of Title VI to that program or activity. IV. Procedural Requirements 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 rule has been designated a ‘‘significant regulatory action’’ although not economically significant, under section 3(f) of Executive Order 12866. Accordingly, the 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 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 rule 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 Bureau/office 15:03 Dec 12, 2016 Jkt 241001 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 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 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 rule are found in §§ 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 activity Departmental Offices, Office of Domestic Finance, Office of Financial Institutions. VerDate Sep<11>2014 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. PO 00000 Frm 00024 Community Development Financial Fund—Financial Component. Fmt 4700 Sfmt 4700 E:\FR\FM\13DER1.SGM OMB Control Nos. Institutions 13DER1 (CDFI) 1559–0021 Federal Register / Vol. 81, No. 239 / Tuesday, December 13, 2016 / Rules and Regulations Bureau/office Program or activity Departmental Offices, Office of Domestic Finance, Office of Financial Institutions. Departmental Offices, Office of Domestic Finance, Office of Financial Institutions. Departmental Offices, Office of Domestic Finance, Office of Financial Institutions. Community Development Financial Institutions (CDFI) Fund—Technical Assistance Component. Bank Enterprise Award Program ............................................ Departmental Offices, Office of Domestic Finance, Office of Financial Institutions. Departmental Offices, Office of Domestic Finance, Office of Financial Institutions. Departmental Offices, Office of Domestic Finance, Office of Small Business, Community Development, and Housing Policy. Internal Revenue Service ........................................................ Internal Revenue Service ........................................................ Internal Revenue Service ........................................................ Internal Revenue Service ........................................................ United States Mint ................................................................... Departmental Offices, Treasury Executive Office for Asset Forfeiture. Departmental Offices, Office of the Fiscal Assistant Secretary. List of Subjects in 31 CFR Part 22 Administrative practice and procedure, Claims, Disability benefits, Government contracts, Nondiscrimination. ■ For the reasons discussed in the preamble, the Department amends 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 pmangrum on DSK3GDR082PROD with RULES Authority: 42 U.S.C. 2000d–2000d–7. § 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 VerDate Sep<11>2014 15:03 Dec 12, 2016 Jkt 241001 89855 OMB Control Nos. Native American Community Development Financial Institutions (CDFI) Assistance Program, Financial Assistance (FA) Awards. Native American Community Development Financial Institutions (CDFI) Assistance (NACA) Program, Technical Assistance Grants. Community Development Financial Institutions Fund, Capital Magnet Fund. State Small Business Credit Initiative ..................................... Tax Counseling for the Elderly Grant Program ...................... Volunteer Income Tax Assistance Program ........................... Volunteer Income Tax Assistance Grant Program ................. Low Income Taxpayer Clinic Grant Program .......................... U.S. Commemorative Coin Programs ..................................... Equitable sharing program (transfer of forfeited property to state and local law enforcement agencies). Grants under the RESTORE Act’s Direct Component and Centers of Excellence program and supplemental compliance responsibilities for its Comprehensive Plan and Spill Impact Components.. 1559–0021 1559–0032, 1559–0005 1559–0021 1559–0021 1559–0043 1505–0227 1545–2222 1545–2222 1545–2222 1545–1648 TBD 1505–0152 1505–0250 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. 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. § 22.2 § 22.3 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 § 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 PO 00000 Frm 00025 Fmt 4700 Sfmt 4700 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 E:\FR\FM\13DER1.SGM 13DER1 pmangrum on DSK3GDR082PROD with RULES 89856 Federal Register / Vol. 81, No. 239 / Tuesday, December 13, 2016 / Rules and Regulations 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; (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 paragraph (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 VerDate Sep<11>2014 15:03 Dec 12, 2016 Jkt 241001 through another recipient, including any successor, assignee, or transferee thereof, but such term does not include any ultimate beneficiary. § 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 PO 00000 Frm 00026 Fmt 4700 Sfmt 4700 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 E:\FR\FM\13DER1.SGM 13DER1 Federal Register / Vol. 81, No. 239 / Tuesday, December 13, 2016 / Rules and Regulations 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 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. pmangrum on DSK3GDR082PROD with RULES § 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 VerDate Sep<11>2014 15:03 Dec 12, 2016 Jkt 241001 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 PO 00000 Frm 00027 Fmt 4700 Sfmt 4700 89857 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. § 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 E:\FR\FM\13DER1.SGM 13DER1 89858 Federal Register / Vol. 81, No. 239 / Tuesday, December 13, 2016 / Rules and Regulations 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 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. pmangrum on DSK3GDR082PROD with RULES § 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 VerDate Sep<11>2014 15:03 Dec 12, 2016 Jkt 241001 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 § 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. § 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: PO 00000 Frm 00028 Fmt 4700 Sfmt 4700 (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 § 22.5. If an applicant fails or refuses to furnish an assurance required under § 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 § 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 § 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. E:\FR\FM\13DER1.SGM 13DER1 Federal Register / Vol. 81, No. 239 / Tuesday, December 13, 2016 / Rules and Regulations (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. pmangrum on DSK3GDR082PROD with RULES § 22.9 Hearings. (a) Opportunity for hearing. Whenever an opportunity for a hearing is required by § 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 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 § 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 VerDate Sep<11>2014 15:03 Dec 12, 2016 Jkt 241001 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 crossexamination 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 PO 00000 Frm 00029 Fmt 4700 Sfmt 4700 89859 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 § 22.10. § 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 § 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. E:\FR\FM\13DER1.SGM 13DER1 89860 Federal Register / Vol. 81, No. 239 / Tuesday, December 13, 2016 / Rules and Regulations (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 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. § 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. § 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, pmangrum on DSK3GDR082PROD with RULES Component Community Development Financial Institutions Fund—Financial Component. Departmental Offices, Office of Domestic Finance, Office of Financial Institutions. Community Development Financial Institutions Fund—Technical Assistance Component. 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 activity Departmental Offices, Office of Domestic Finance, Office of Financial Institutions. 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 § 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. VerDate Sep<11>2014 15:03 Dec 12, 2016 Jkt 241001 PO 00000 Frm 00030 Fmt 4700 Sfmt 4700 Authority Riegle Community Development and latory Improvement Act of 1994, 12 4701 et seq. Riegle Community Development and latory Improvement Act of 1994, 12 4701 et seq. E:\FR\FM\13DER1.SGM 13DER1 ReguU.S.C. ReguU.S.C. Federal Register / Vol. 81, No. 239 / Tuesday, December 13, 2016 / Rules and Regulations 89861 Component Program or activity Authority Departmental Offices, Office of Domestic Finance, Office of Financial Institutions. Bank Enterprise Award Program ..................... Departmental Offices, Office of Domestic Finance, Office of Financial Institutions. Native American Community Development Financial Institutions Assistance Program, Financial Assistance (FA) Awards. Native American Community Development Financial Institutions Assistance (NACA) Program, Technical Assistance Grants. Community Development Financial Institutions Fund, Capital Magnet Fund. State Small Business Credit Initiative .............. Riegle Community Development and Regulatory Improvement Act of 1994 sec. 114, 12 U.S.C. 4713. Riegle Community Development Banking and Financial Institutions Act of 1994, 12 U.S.C. 4701 et seq. Riegle Community Development Banking and Financial Institutions Act of 1994, 12 U.S.C. 4701 et seq. Housing and Economic Recovery Act of 2008 sec. 1339, 12 U.S.C. 4569. Small Business Jobs Act of 2010, 12 U.S.C. 5701 et seq. Departmental Offices, Office of Domestic Finance, Office of Financial Institutions. Departmental Offices, Office of Domestic Finance, Office of Financial Institutions. Departmental Offices, Office of Domestic Finance, Office of Small Business, Community Development, and Housing Policy. Internal Revenue Service ................................... Tax Counseling for the Elderly Grant Program Internal Revenue Service ................................... Volunteer Income Tax Assistance Program .... Internal Revenue Service ................................... Internal Revenue Service ................................... Volunteer Income Tax Assistance Grant Program. Low Income Taxpayer Clinic Grant Program .. United States Mint .............................................. U.S. Commemorative Coin Programs ............. Departmental Offices, Treasury Executive Office for Asset Forfeiture. Equitable sharing program (transfer of forfeited property to state and local law enforcement agencies). Unreimbursed detail of Federal Employees through the Intergovernmental Personnel Act. Grants under the RESTORE Act’s Direct Component and Centers of Excellence program and supplemental compliance responsibilities for its Comprehensive Plan and Spill Impact Components. Various Treasury Bureaus and Offices (including the Internal Revenue Service). Departmental Offices, Office of the Fiscal Assistant Secretary. Kody Kinsley, Assistant Secretary for Management. [FR Doc. 2016–29629 Filed 12–12–16; 8:45 am] BILLING CODE 4810–25–P DEPARTMENT OF HOMELAND SECURITY Coast Guard pmangrum on DSK3GDR082PROD with RULES 33 CFR Part 117 [Docket No. USCG–2016–1045] The Coast Guard has issued a temporary deviation from the operating schedule that governs the upper deck and lower deck of the Steel Bridge across the Willamette River, mile 12.1, at Portland, OR. The deviation is necessary to allow work crews to upgrade the electrical power and controls system. This deviation allows both upper and lower spans of the Steel Bridge to remain in the closed-tonavigation position to allow for the safe replacement of bridge operating equipment. SUMMARY: This deviation is effective from 5 a.m. on January 9, 2017 to 11:59 p.m. on January 18, 2017. ADDRESSES: The docket for this deviation, USCG–2016–1045 is available at https://www.regulations.gov. Type the docket number in the ‘‘SEARCH’’ box DATES: Drawbridge Operation Regulation; Willamette River, Portland, OR Coast Guard, DHS. Notice of deviation from regulation. AGENCY: ACTION: VerDate Sep<11>2014 17:20 Dec 12, 2016 Jkt 241001 PO 00000 Frm 00031 Fmt 4700 Sfmt 4700 Revenue Act of 1978 sec. 163, Public Law 95–600, 92 Stat 2763, 2810–2811. Tax Reform Act of 1969, Public Law 91–172, 83 Stat. 487. Consolidated Appropriations Act, Public Law 110–161, 121 Stat. 1844, 1975–76 (2007). Internal Revenue Service Restructuring and Reform Act of 1998 sec. 3601, 26 U.S.C. 7526. Specific acts of Congress that authorize United States commemorative coin and medal programs provide assistance. See, e.g., the Louis Braille Bicentennial—Braille Literacy Commemorative Coin Act, Public Law 109–247 (2006); the Boy Scouts of America Centennial Commemorative Coin Act, Public Law 110–363 (2008); the American Veterans Disabled for Life Commemorative Coin Act, Public Law 110–277 (2008); and the National September 11 Memorial & Museum Commemorative Medal Act of 2010, Public Law 111–221 (2010). 18 U.S.C. 981(e)(2); 21 U.S.C. 881(e)(1)(A); 31 U.S.C. 9703. 5 U.S.C. 3371 through 3376. Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act of 2012, Public Law 112–141. and click ‘‘SEARCH.’’ Click on Open Docket Folder on the line associated with this deviation. FOR FURTHER INFORMATION CONTACT: If you have questions on this temporary deviation, call or email Mr. Steven Fischer, Bridge Administrator, Thirteenth Coast Guard District; telephone 206–220–7282, email d13-pfd13bridges@uscg.mil. SUPPLEMENTARY INFORMATION: Union Pacific Railroad Company (UPRR) has requested a temporary deviation from the operating schedule for the Steel Bridge across the Willamette River, at mile 12.1, at Portland, OR. The deviation is necessary to accommodate work crews to conduct timely bridge equipment upgrades and replacement. The Steel Bridge is a double-deck lift bridge with a lower lift deck and an E:\FR\FM\13DER1.SGM 13DER1

Agencies

[Federal Register Volume 81, Number 239 (Tuesday, December 13, 2016)]
[Rules and Regulations]
[Pages 89852-89861]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-29629]


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DEPARTMENT OF THE TREASURY

31 CFR Part 22

RIN 1505-AC45


Regulation Regarding Nondiscrimination on the Basis of Race, 
Color, or National Origin in Programs or Activities Receiving Federal 
Financial Assistance From the Department of the Treasury

AGENCY: Department of the Treasury.

ACTION: Final rule.

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SUMMARY: This final rule 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 final 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. Through this final rule, the Department also notifies 
beneficiaries of its programs offering financial assistance of the 
protections against discrimination based on race, color, and national 
origin.

DATES: Effective January 12, 2017.

FOR FURTHER INFORMATION CONTACT: Mariam G. Harvey, Director, Office of 
Civil Rights and Diversity, Department of the Treasury, (202) 622-0316 
(voice), by mail to Mariam G. Harvey, Director, Office of Civil Rights 
and Diversity, 1500 Pennsylvania Avenue NW., Washington, DC 20220; or 
facsimile (202) 622-0367.

SUPPLEMENTARY INFORMATION: 

I. Purpose of the Regulatory Action

    The purpose of this final 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 is issuing Title VI regulations for the first time. 
Under Treasury's Title VI implementing regulations, Treasury-funded 
programs are prohibited from taking acts, including permitting actions, 
that discriminate based on the statutorily protected classes. The 
regulations further provide for Treasury procedures to ensure 
compliance, including a hearing procedure.
    Prior to this rule, the Department was requiring recipients of 
financial assistance to sign assurances of compliance with Title VI. 
With the issuance of this final rule, the Department will continue to 
require assurance of compliance and strengthen its civil rights 
compliance requirements.

II. Background

A. Treasury's July 13, 2015, Proposed Rule

    On July 13, 2015, at 80 FR 39977, Treasury published its proposed 
rule implementing Title VI. Each federal agency subject to Title VI is 
required to issue regulations implementing Title VI. 42 U.S.C. 2000d to 
2000d-7; 28 CFR 42.403. The comment period for the proposed rule ended 
on September 11, 2015.

III. Public Comments and Treasury's Response

A. The Public Comments Generally

    The public posted six comments to the Notice of Proposed Rulemaking 
implementing Title VI. Three comments were from public interest groups. 
One comment was from a city government office. Two individuals also 
commented, but one of the comments was nonresponsive. All public 
comments can be viewed at https://www.regulations.gov/#!docketBrowser;rpp=25;po=0;dct=PS%252BPR;D=TREAS-DO-2015-0006.
    The comments can be grouped in two main subjects: Data collection 
and coverage of Low Income Housing Credits (LIHTCs).

[[Page 89853]]

B. Specific Public Comments

1. Burden of Data Collection
    Comment: A commenter disagreed with the collection of the ethnicity 
of the taxpayers receiving tax preparation services through Volunteer 
Income Tax Assistance (VITA), stating that the information will not 
help prove or disprove discrimination. The commenter opined that the 
best data are gained from the feedback received from bureau employees 
and from the taxpayers who report having issues at a VITA site. The 
commenter favors the current compliance practices (displaying a poster, 
providing information about where to file a complaint, and unannounced 
site visits) as a far better method for monitoring compliance with 
nondiscrimination regulations.
    Treasury Response: Treasury agrees that the practices in place are 
useful, and they will continue under the final rule. Treasury disagrees 
with this commenter's view on data collection, however, because it is 
required for the appropriate enforcement of Title VI. The coordination 
regulations issued by the Department of Justice (DOJ) under the 
authority of Executive Order 12250 require agencies to ``provide for 
the collection of data and information from applicants for and 
recipients of federal assistance sufficient to permit the effective 
enforcement of Title VI.'' 28 CFR 42.406(a). Collecting information 
about the race and ethnicity of program beneficiaries will help the 
Department ensure its programs that offer financial assistance are 
providing equal opportunity to the eligible beneficiaries, regardless 
of their race and national origin. The data will also allow the 
Department to investigate discrimination complaints alleging a 
violation of Title VI adequately.
    Comment: A commenter suggests the grantees should have to 
supplement local data and/or common knowledge regarding the actual 
neighborhoods that exist within each program jurisdiction, to enhance 
the utility of the information required to be maintained for assessing 
the success of Title VI enforcement.
    Treasury Response: The Department plans to issue guidelines 
regarding data collection in accordance with the requirements in 28 CFR 
42.406. The Department will collect data sufficient for the effective 
enforcement of Title VI. The government-wide coordination regulations 
state that where an agency determines that the collection of additional 
data, such as demographic maps, the racial composition of affected 
neighborhoods, or census data, is necessary or appropriate, the agency 
shall specify, in its guidelines or in other directives, the need to 
submit such data. The Department can collect such additional data only 
to the extent that it is readily available or can be compiled with 
reasonable effort.
    Comment: A commenter recommends as a way to minimize the burden of 
complying with the proposed information collection, Treasury implement 
a standard form for reporting compliance to agency officials 
(referencing Sec.  22.6 of the proposed rule that obligates recipients 
to submit compliance reports). A standard form will also promote 
consistency and appropriate enforcement of Title VI by the Department's 
components.
    Treasury Response: Treasury agrees that a standard form for 
reporting compliance information will assist its recipients and promote 
consistency across the Department's components. The Department will 
issue guidance to its recipients and agency officials regarding data 
collection as required by the government-wide coordination regulations, 
and will consider making a data collection form part of the upcoming 
guidance.
    Comment: A commenter asks what is to be gleaned from the data if a 
high number of participants opt not to answer the racial and ethnic 
data question. The commenter wanted to know if recipients will be asked 
to guess the taxpayers' ethnic backgrounds.
    Treasury Response: The Department will provide guidance to its 
recipients regarding data collection as required by the government-wide 
coordination regulations, and in accordance with Office of Management 
and Budget (OMB) guidance, including OMB Statistical Policy Directive 
No. 15, as revised; and OMB Bulletin No. 00-02. Self-identification is 
the preferred method of data collection about race and ethnicity. OMB 
guidance states that respect for individual dignity should guide the 
processes and methods for collecting data on race and ethnicity. 
Respondent self-identification should be used to the greatest extent 
possible, but observer identification is more practical in some data 
collection systems.
    Comment: A commenter asked if the Department will assume that if 
the vast majority of beneficiaries receiving benefits at a site belong 
to a particular ethnic background discrimination has occurred.
    Treasury Response: Data showing the race and ethnicity of the 
program beneficiaries are relevant to determine compliance with the 
requirements of Title VI by the recipients of Treasury financial 
assistance. If the Department finds during a compliance review or 
investigation that a protected group in the population of the service 
area is not participating in the program, the Department will look at 
the entire record to determine the reason for the lack of 
participation, and whether corrective actions are needed. The 
Department will discuss issues of noncompliance with its recipients 
with the goal of achieving voluntary compliance.
    Comment: Two commenters were concerned that increasing the burden 
on recipients of the VITA program will result in further reduction in 
the number of volunteers. The commenters stated they oppose any changes 
created by the rule that would result in additional burden to 
recipients of the VITA program by requiring additional documentation, 
reporting, and records retention. One commenter supports the 
information collection and is in agreement that the information 
collection does not subject recipients to any new substantive 
obligations, and that the economic burden associated with the 
collection of information will not significantly affect small 
governments or entities.
    Treasury Response: The Department believes that any burden created 
by the requirements of the new rule, including the collection of data, 
is reasonable and justified by the goal of ensuring equal opportunity 
and nondiscrimination in the financial assistance programs. In the case 
of the VITA program, the recipients are already collecting data from 
the beneficiaries using the intake forms required by the program.
2. Inclusion of Low-Income Housing Credits in the Covered Programs
    Comments: Three commenters stated that low-income housing credits 
(LIHTCs) should be included in the list of programs in the Appendix. 
These commenters stated that tax credits like LIHTCs provide a subsidy 
to achieve a specific public benefit and are federal financial 
assistance (FFA) for the purposes of Title VI. The three commenters 
stressed the important role LIHTCs play in the development of 
affordable housing, and stated that listing LIHTCs as FFA would protect 
millions of low-income individuals from housing discrimination.
    Treasury Response: We agree with commenters regarding the 
importance of protecting the civil rights of individuals living in 
properties developed using LIHTCs. Other federal civil rights statutes, 
including the Fair Housing Act, 42 U.S.C. 3601 et seq. (FHA), prohibit 
discrimination on the bases of race, color, religion, sex, national 
origin, familial status, and disability, and apply

[[Page 89854]]

to LIHTC properties. * * * The FHA prohibits both intentional 
discrimination and practices that have an unjustified discriminatory 
effect. Treasury's commitment to ensuring that developers, owners, 
operators, and managers of LIHTC properties do not discriminate, 
consistent with tax regulations that require LIHTC buildings to comply 
with fair-housing requirements, includes a 2000 Memorandum of 
Understanding (MOU) with the Department of Justice and the Department 
of Housing and Urban Development. This MOU is aimed at ensuring that 
developers, owners, operators, and managers of LIHTC properties comply 
with the FHA. See https://www.irs.gov/businesses/small-businesses-self-employed/exhibit-13-2. Among other provisions, the MOU requires the IRS 
to notify owners of LIHTC properties facing allegations of housing 
discrimination that a finding of a violation of the FHA could result in 
a loss of LIHTCs. This MOU demonstrates Treasury's commitment to 
ensuring that LIHTC housing providers do not discriminate in violation 
of the FHA.
    The comments also stated that Title VI coverage was important to 
ensure that state agencies allocate housing credit dollar amounts (that 
is, the eligibility to earn LIHTCs) among proposed projects consistent 
with civil rights goals. These state agencies allocating housing credit 
dollar amounts may also receive grants or other forms of FFA from 
another federal agency, such as the Department of Housing and Urban 
Development, which would result in Title VI coverage for all of the 
state agency's operations. Thus, if an individual or organization 
believes that a state agency is allocating housing credit dollar 
amounts in a manner inconsistent with the requirements of Title VI, 
that individual or organization may determine whether the state agency 
is otherwise receiving FFA (which may include consulting 
www.usaspending.gov) and may file a complaint with the appropriate 
federal agency. Civil rights protections thereby cover LIHTC 
allocations and properties receiving LIHTCs regardless of whether the 
credits themselves constitute FFA as a legal matter.
    While tax credits are generally not considered FFA, we recognize 
that, as the commenters have pointed out, some aspects of LIHTCs 
resemble programs that constitute FFA. Though we are not including 
LIHTCs in the Appendix, we emphasize that the Appendix does not purport 
to be exhaustive, and the absence of a program or activity from the 
list does not by such absence limit the applicability of Title VI to 
that program or activity.

IV. Procedural Requirements

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 rule has been designated a ``significant regulatory action'' 
although not economically significant, under section 3(f) of Executive 
Order 12866. Accordingly, the 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 
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 rule 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 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 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 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:

------------------------------------------------------------------------
         Bureau/office           Program or activity    OMB Control Nos.
------------------------------------------------------------------------
Departmental Offices, Office    Community Development          1559-0021
 of Domestic Finance, Office     Financial
 of Financial Institutions.      Institutions (CDFI)
                                 Fund--Financial
                                 Component.

[[Page 89855]]

 
Departmental Offices, Office    Community Development          1559-0021
 of Domestic Finance, Office     Financial
 of Financial Institutions.      Institutions (CDFI)
                                 Fund--Technical
                                 Assistance Component.
Departmental Offices, Office    Bank Enterprise Award         1559-0032,
 of Domestic Finance, Office     Program.                      1559-0005
 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 Development          1559-0043
 of Domestic Finance, Office     Financial
 of Financial Institutions.      Institutions Fund,
                                 Capital Magnet Fund.
Departmental Offices, Office    State Small Business           1505-0227
 of Domestic Finance, Office     Credit Initiative.
 of Small Business, Community
 Development, and Housing
 Policy.
Internal Revenue Service......  Tax Counseling for             1545-2222
                                 the Elderly Grant
                                 Program.
Internal Revenue Service......  Volunteer Income Tax           1545-2222
                                 Assistance Program.
Internal Revenue Service......  Volunteer Income Tax           1545-2222
                                 Assistance Grant
                                 Program.
Internal Revenue Service......  Low Income Taxpayer            1545-1648
                                 Clinic Grant Program.
United States Mint............  U.S. Commemorative                   TBD
                                 Coin Programs.
Departmental Offices, Treasury  Equitable sharing              1505-0152
 Executive Office for Asset      program (transfer of
 Forfeiture.                     forfeited property
                                 to state and local
                                 law enforcement
                                 agencies).
Departmental Offices, Office    Grants under the               1505-0250
 of the Fiscal Assistant         RESTORE Act's Direct
 Secretary.                      Component and
                                 Centers of
                                 Excellence program
                                 and supplemental
                                 compliance
                                 responsibilities for
                                 its Comprehensive
                                 Plan and Spill
                                 Impact Components..
------------------------------------------------------------------------

List of Subjects in 31 CFR Part 22

    Administrative practice and procedure, Claims, Disability benefits, 
Government contracts, Nondiscrimination.


0
For the reasons discussed in the preamble, the Department amends 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

[[Page 89856]]

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;
    (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 paragraph (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

[[Page 89857]]

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 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

[[Page 89858]]

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 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.

[[Page 89859]]

    (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 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.

[[Page 89860]]

    (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 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.


------------------------------------------------------------------------
          Component            Program or activity        Authority
------------------------------------------------------------------------
Departmental Offices, Office  Community             Riegle Community
 of Domestic Finance, Office   Development           Development and
 of Financial Institutions.    Financial             Regulatory
                               Institutions Fund--   Improvement Act of
                               Financial Component.  1994, 12 U.S.C.
                                                     4701 et seq.
Departmental Offices, Office  Community             Riegle Community
 of Domestic Finance, Office   Development           Development and
 of Financial Institutions.    Financial             Regulatory
                               Institutions Fund--   Improvement Act of
                               Technical             1994, 12 U.S.C.
                               Assistance            4701 et seq.
                               Component.

[[Page 89861]]

 
Departmental Offices, Office  Bank Enterprise       Riegle Community
 of Domestic Finance, Office   Award Program.        Development and
 of Financial Institutions.                          Regulatory
                                                     Improvement Act of
                                                     1994 sec. 114, 12
                                                     U.S.C. 4713.
Departmental Offices, Office  Native American       Riegle Community
 of Domestic Finance, Office   Community             Development Banking
 of Financial Institutions.    Development           and Financial
                               Financial             Institutions Act of
                               Institutions          1994, 12 U.S.C.
                               Assistance Program,   4701 et seq.
                               Financial
                               Assistance (FA)
                               Awards.
Departmental Offices, Office  Native American       Riegle Community
 of Domestic Finance, Office   Community             Development Banking
 of Financial Institutions.    Development           and Financial
                               Financial             Institutions Act of
                               Institutions          1994, 12 U.S.C.
                               Assistance (NACA)     4701 et seq.
                               Program, Technical
                               Assistance Grants.
Departmental Offices, Office  Community             Housing and Economic
 of Domestic Finance, Office   Development           Recovery Act of
 of Financial Institutions.    Financial             2008 sec. 1339, 12
                               Institutions Fund,    U.S.C. 4569.
                               Capital Magnet Fund.
Departmental Offices, Office  State Small Business  Small Business Jobs
 of Domestic Finance, Office   Credit Initiative.    Act of 2010, 12
 of Small Business,                                  U.S.C. 5701 et seq.
 Community Development, and
 Housing Policy.
Internal Revenue Service....  Tax Counseling for    Revenue Act of 1978
                               the Elderly Grant     sec. 163, Public
                               Program.              Law 95-600, 92 Stat
                                                     2763, 2810-2811.
Internal Revenue Service....  Volunteer Income Tax  Tax Reform Act of
                               Assistance Program.   1969, Public Law 91-
                                                     172, 83 Stat. 487.
Internal Revenue Service....  Volunteer Income Tax  Consolidated
                               Assistance Grant      Appropriations Act,
                               Program.              Public Law 110-161,
                                                     121 Stat. 1844,
                                                     1975-76 (2007).
Internal Revenue Service....  Low Income Taxpayer   Internal Revenue
                               Clinic Grant          Service
                               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--Brail
                                                     le Literacy
                                                     Commemorative Coin
                                                     Act, Public Law 109-
                                                     247 (2006); the Boy
                                                     Scouts of America
                                                     Centennial
                                                     Commemorative Coin
                                                     Act, Public Law 110-
                                                     363 (2008); the
                                                     American Veterans
                                                     Disabled for Life
                                                     Commemorative Coin
                                                     Act, Public Law 110-
                                                     277 (2008); and the
                                                     National September
                                                     11 Memorial &
                                                     Museum
                                                     Commemorative Medal
                                                     Act of 2010, Public
                                                     Law 111-221 (2010).
Departmental Offices,         Equitable sharing     18 U.S.C. 981(e)(2);
 Treasury Executive Office     program (transfer     21 U.S.C.
 for Asset Forfeiture.         of forfeited          881(e)(1)(A); 31
                               property to state     U.S.C. 9703.
                               and local law
                               enforcement
                               agencies).
Various Treasury Bureaus and  Unreimbursed detail   5 U.S.C. 3371
 Offices (including the        of Federal            through 3376.
 Internal Revenue Service).    Employees through
                               the
                               Intergovernmental
                               Personnel Act.
Departmental Offices, Office  Grants under the      Resources and
 of the Fiscal Assistant       RESTORE Act's         Ecosystems
 Secretary.                    Direct Component      Sustainability,
                               and Centers of        Tourist
                               Excellence program    Opportunities, and
                               and supplemental      Revived Economies
                               compliance            of the Gulf Coast
                               responsibilities      States Act of 2012,
                               for its               Public Law 112-141.
                               Comprehensive Plan
                               and Spill Impact
                               Components.
------------------------------------------------------------------------


Kody Kinsley,
Assistant Secretary for Management.
[FR Doc. 2016-29629 Filed 12-12-16; 8:45 am]
 BILLING CODE 4810-25-P
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