located or, if higher, the average rate paid for such services in the area of the employee's immediately preceding employment.

(Economic Opportunity Act, Title V, sec. 573(a) (Pub. L. 93-644 sec. 8(a)))

Subpart F-General Provisions

§ 158.84 Suspension, termination, and refusal to refund.

(a)(1) Assistance under the program may be terminated in whole or in part if the Commissioner determines after affording the recipient reasonable notice and an opportunity for a full and fair hearing, that the recipient has failed to carry out its approved project proposal in accordance with the applicable law and the terms of such assistance or has otherwise failed to comply with any law, regulation, assurance, term or condition applicable to the program. Assistance under this program may be suspended during the pendency of a termination proceeding initiated pursuant to this paragraph but only in emergency situations, e.g., where there is evidence of flagrant misuse of funds by the recipient, or evidence of unauthorized activity by the recipient which poses a threat of harm to children participating in the program.

(2) Proceedings with respect to the termination of a grant shall be initiated by the mailing to the recipient of a notice by certified mail, return receipt requested, informing the recipient of the Government's request for termination and the specific grounds therefor, together with information regarding the time, place, and nature of the hearing to be held and such other information with respect to the conduct of such proceedings as the Commissioner may determine. If the Commissioner determines for the reason specified in paragraph (a)(1) that suspension of assistance during the pendency of such proceedings is necessary, he shall afford the recipient reasonable notice of such determination. Such notice shall: (i) inform the recipient of such determination, (ii) advise the recipient of the effective date of such suspension (which will be no earlier than the date of such notice), and (iii)

offer the recipient an opportunity to show cause why such action should not be taken.

(3) A notice of suspension of assistance shall advise the recipient, in addition to the matters described in paragraph (a)(2) of this section, that any new expenditures or obligations made or incurred in connection with the program during the period of the suspension will not be recognized by the Government in the event the assistance is ultimately terminated. Expenditures to fulfill legally enforceable commitment made prior to the notice of suspension, in good faith and in accordance with the recipient's approved program or project, and not in anticipation of suspension or termination, shall not be considered new expenditures.

(4) Termination of assistance shall be effected by the delivery to the recipient of a final order of termination, signed by the Commissioner or his designee, or where the recipient invokes the procedures available under paragraph (b)(2) of this section, upon an initial decision of an administrative law judge becoming final without appeal to or review by the Commissioner. If an initial decision of the administrative law judge is appealed to or reviewed by the Commissioner pursuant to paragraph (b)(2) of this section, then termination of assistance shall be effective upon a decision by the Commissioner holding that such termination is appropriate.

(5) In the event assistance is terminated under this section, financial obligations incurred by the recipient prior to the effective date of such termination will be allowable to the extent they would have been allowable had such assistance not been terminated, except that no obligations incurred during the period in which such assistance was suspended pursuant to paragraph (a)(1) of this section and no obligations incurred in anticipation of suspension or termination will be allowed. Within 60 days of the effective date of termination of assistance under this section, the recipient shall furnish an itemized accounting of funds expended, obligated, and remaining. Within 30 days of a request

sonal financing from its customary sources;

(d) Unusual circumstances. If the financial or human resources which would otherwise be available for use in the Follow Through project have been significantly reduced by unusual circumstances (other than those referred to in paragraphs (b) and (c) of this section) affecting the city, county, or political subdivision of the city or county being served by the project.

(42 U.S.C. 2029a(b))

§ 158.65a Application for increase in Federal share and review of applications. (a) Contents of application. An applicant which desires an increase in the Federal share of a Follow Through project as authorized by § 158.65 shall request this increase in writing and in this request include the following:

(1) A statement of the applicant's reason for requesting the increase, supported by information sufficient to enable the Commissioner to determine the validity of the reason for the request. This information shall indicate, where relevant, the total per capita personal income of the county, city, or political subdivision of the county or city served by the project, or the total per capita personal income of the group being served by the project, and the source or sources of this information concerning total per capita personal income;

(2) Information showing that the applicant has made a reasonable effort to provide the non-Federal share required by § 158.64;

(3) A statement of the amount of the non-Federal share which the applicant is able to provide, and the extent to which this contribution is in kind.

(b) Projects serving more than one area. An applicant whose project serves more than one county, city, or political subdivision of a county or city, may apply for financial assistance in excess of 80 percent of the total (combined Federal and non-Federal) approved cost of that portion of the project serving the county, city or poitical subdivision which is eligible for

an increase in the Federal share under § 158.65.

(c) Review of applications. Based on the Commissioner's review of an application submitted under paragraph (a) of this section and such additional evidence as may be required, the Commissioner may approve the application for a reason specified in § 158.65 in any amount up to 100 percent of the total approved cost of the project, or may disapprove the application. The Commissioner shall render a decision in writing and shall include a statement of the facts and the reasons for the decision.

(d) Period of increase. The Commissioner may not approve an increase in the Federal share for any period in excess of one year, but may renew approval upon resubmission of a written application that complies with this section.

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(2) Proceedings with respect termination of a grant shall be ed by the mailing to the recipe notice by certified mail, return requested, informing the re the Government's request for tion and the specific grounds f together with information re the time, place, and nature hearing to be held and such des formation with respect to the

of such proceedings as the and servic sioner may determine. If the sioner determines for the rea fied in paragraph (a) the sion of assistance during the of such proceedings is nec shall afford the recipient notice of th determinin notice shall inform the re such determination, ad cipient of the effective de

therefor, the recipient shall remit to the Government any amounts found due.

(b)(1) If the recipient requests an opportunity to show cause why a suspension of assistance pursuant to paragraph (a)(1) of this section should not be continued or imposed, the Commissioner will, within 7 days after receiving such request, hold an informal meeting for such purpose.

(2) Hearings respecting the termination of assistance pursuant to this section shall be conducted pursuant to the provisions of the Administrative Procedure Act (5 U.S.C. 554-557). Proposed findings of fact, conclusions of law, and briefs will be submitted to the presiding officer within 20 days of the conclusion of the hearing.

(3) The initial decision of an administrative law judge regarding the termination of a grant under the program shall become the decision of the Commissioner without further proceedings unless there is an appeal to, or review on motion of, the Commissioner made in writing no later than 15 days after receipt by the party requesting such appeal or review of the decision of the administrative law judge. A request for appeal or review under this section shall be accompanied by exception to the administrative law judge's decision, proposed findings, supporting reasons and briefs. The adverse party shall submit its reply no later than 15 days after the submission of such request for appeal or review. The Commissioner shall issue a final decision in the case of such appeal or review no later than 30 days after the final submission of the above materials by the parties. The Commissioner may delegate his functions under this subparagraph to an appellate review council established and appointed by him.

(c) The procedures established by this section shall not preclude the Commissioner from pursuing any other remedies authorized by law. Proceedings pursuant to Part 80 of this title with respect to the eligibility of an applicant for assistance under Title VI of the Civil Rights Act (42 U.S.C. 2000d) shall be governed by the regulations in that part and Part 81.

(d) The Commissioner may not deny applications for refunding under this part unless the applicant has been given reasonable notice and opportunity to show cause why this action should not be taken.

(Economic Opportunity Act, Title V, sec. 554 (b), (c) (Pub. L. 93-644 sec. 8(a)))

§ 158.85 Nondiscrimination provisions.

(a) The Secretary shall not provide financial assistance for any program, project, or activity under this part unless the grant or contract with respect thereto specifically provides that no person with responsibilities in the operation therecf will discriminate with respect to any such program, project, or activity because of race, creed, color, national origin, sex, political affiliation or beliefs.

(Economic Opportunity Act, Title V, sec. 574(a) (Pub. L. 93-644 sec. 8(a)))

(b) No person in the United States shall on the ground of sex be excluded from participation in, be denied the benefits of, be subject to discrimination under, or be denied employment in connection with any program or activity receiving assistance under this part. Section 603 of the Civil Rights Act of 1964 shall apply to any action taken by the Secretary to enforce this paragraph.

(Economic Opportunity Act, Title V, sec. 574(b) (Pub. L. 93-644 sec. 8(a)))

(c) This section shall not be construed as affecting any other legal remedy that a person may have if that person is excluded from participation in, denied the benefits of, subjected to discrimination under, or denied employment in connection with, any program, project, or activity receiving assistance under this part.

(Economic Opportunity Act, Title V, sec. 574(b) (Pub. L. 93-644 sec. 8(a)))

§ 158.86 Limitation with respect to certain unlawful activities.

No individual employed or assigned by any agency assisted under this part shall, pursuant to or during the performance of services rendered in connection with any program or activity conducted or assisted under this part

by such agency, plan, initiate, participate in, or otherwise aid or assist in the conduct of any unlawful demonstration, rioting, or civil disturbance.

(Economic Opportunity Act, Title V, sec. 574(b) (Pub. L. 93-644 sec. 8(a)))

§ 158.87 Political activities.

(a) For purposes of clauses (1) and (2) of section 1502(a) of title 5 of the United States Code, any agency receiving assistance under this part shall be deemed to be a State or local agency.

(b) Programs assisted under this part shall not be carried on in a manner involving the use of program funds, the provision of services, or the employment or assignment of personnel in a manner supporting or resulting in the identification of such programs with (1) any partisan or nonpartisan political activity or any other political activity associated with a candidate, or contending faction or group, in an election for public or party office, (2) any activity to provide voters

or prospective voters with transportation to the polls or similar assistance in connection with any such election, or (3) any voter registration activity.

(Economic Opportunity Act, Title V, sec. 576 (a), (b) (Pub. L. 93-644 sec. 8(a)))

Stat. 258-259 sec. 124(b), Title I, Pub. L. 94482 (20 U.S.C. 1070d-1070d-1), unless otherwise noted.

SOURCE: 42 FR 26546, May 24, 1977, unless otherwise noted.

§ 159.1 Scope and purpose-general provisions régulations.

(a) The regulations in this part govern the administration of the Talent Search Program. Services provided under this program are designed to assist in enabling youths from lowincome families who have academic potential, but who may lack adequate secondary school preparation, who may be physically handicapped, or who may be disadvantaged because of severe rural isolation, to enter, continue, or resume programs of postsecondary education. Projects under this program shall (1) identify qualified youths of financial or cultural need with an exceptional potential for postsecondary educational training and especially such youths who have delayed pursuing postsecondary educational training and encourage them to complete secondary school and undertake postsecondary educational training, (2) publicize existing forms of student financial aid, and (3) encourage qualified secondary school or college dropouts of demonstrated aptitude to reenter educational programs, including postsecondary school programs. The goal of the program and projects funded under this part shall be to (i) increase the rate at which youths of financial or cultural need complete secondary school and enroll, with adequate financial aid, in postsecondary educational programs, (ii) decrease the rate of secondary and postsecondary school dropouts, (iii) increase the number of secondary and postsecondary school dropouts who re-enter educational programs and (iv) increase the postsecondary enrollment rate of youth who have delayed pursuing postsecondary educational training.

(b) Assistance provided under this part is subject to applicable provisions contained in subchapter A of this chapter relating to fiscal, administrative, and other matters (General Provisions for Office of Education Programs-45 CFR 100a).

(20 U.S.C. 1070d-1070d-1)