the reporting of any invention made during the term thereof, and for its disposition in accordance with the provisions of § 8.1 (a) or for its disposition by the institution at which the research was performed in accordance with its established policies, if applicable to such an invention, which meet the requirements of paragraph (b) of such section.

[22 F.R. 9695, Dec. 4, 1957, as amended at 31 F.R. 12842, Oct. 1, 1966]

§ 8.6

Contracts for research.

(a) Contracts for research, with other than nonprofit institutions, shall provide that any invention first conceived or actually reduced to practice in the course of the performance of the contract shall be promptly and fully reported to the Assistant Secretary (Health and Scientific Affairs) for determination by him as to the manner of disposition of all rights in and to such invention, including the right to require assignment of all rights to the United States or dedication to the public. In the exercise of this power the organization head will be guided by the policy specified in § 8.2 with respect to grants.

(b) Contracts for research with nonprofit institutions shall contain provisions as in paragraph (a) of this section except that, if it is determined that the institution's policies and procedures are acceptable as meeting the requirements of § 8.1(b) with respect to grants, the contract may provide, with such special stipulations in the contract as may be deemed necessary in the public interest, for leaving the ownership and disposition of all domestic rights for determination by the contracting institution in accordance with such policies and procedures.

[23 F.R. 1215, Feb. 27, 1958, as amended at 31 F.R. 12842, Oct. 1, 1966]

It is the policy of the Department to permit its operating agencies to allow duly qualified individuals, students, and graduates of institutions of learning in the several States, Territories, as well as the District of Columbia, to use the study and research facilities of the Department subject to rules and restrictions set forth in this part and as may be implemented. Nothing in this part shall restrict the existing authority of any operating agency such as section 301(b) of the Public Health Service Act.

§ 9.3 Rules and restrictions.

(a) Prior to the use of this authority each agency head must determine that it would be consistent with the programs of that agency for the agency to participate in this program and that agency facilities should be made available for the use of students and other authorized individuals. Facilities may be made available provided the use of such facilities will be of direct benefit to the educational objectives of students and other authorized individuals with the prospect of fruitful interchange of ideas and information between agency personnel and students, and such use will not interfere with agency programs.

(b) The official in charge of any Department research or study facility will not permit such use of the facility until he determines:

(1) That appropriate space and facilities are available.

(2) That the equipment is on hand and supplies required to carry on the study can be made available.

(3) That the proposed studies or research will not interfere with regular Department functions, nor require the additional subsequent acquisition of equipment, and

(4) That the proposed studies or research will have general value in a field of concern to the Department.

(c) No Department funds will be used to pay for direct support of such studies or research, other than replenishment of supplies and materials and administrative and other costs related to the maintenance and use of the space and facilities.

(d) No Department funds will be used to pay the salary costs of the research or studies or the cost of direct supervision for such studies or research, but the Department shall reserve the right in all instances to control the character and extent of studies and research where safety is involved or the public interest or Department programs are in any way affected.

(e) Operating agencies permitting students and others the use of facilities for the purpose stated in this part shall require each student or other individual to agree that the results of such research and study including any copyrightable material or patentable inventions resulting from the use of or access to the study and research facilities shall be dedicated to the Public and shall become a part of the public domain, except as otherwise authorized in accordance with Department policies and procedures.

(f) Proper safeguards for Government property will be instituted including arrangements for replacement of Government property damaged or lost by a student or other authorized individual.

(g) Each student and other authorized individual will be expected to use the facilities and equipment with customary care and otherwise conduct himself in such manner as to complete his studies within any time limits prescribed.

(h) Each student and other individual authorized to use Government facilities for study purposes may not be authorized to sign requisitions for supplies and equipment.

This part establishes a Departmental Fellowship Review Panel, from which Departmental Fellowship Review Boards will be selected, for the purpose of providing hearings where an opportunity for such hearing is provided for in applicable procedures of a constituent agency, in cases where such constituent agency has found substantial reason for a belief that a fellowship (or traineeship) award should be denied or discontinued by the constituent agency making the award, on grounds involving, in accordance with applicable criteria, the moral character or loyalty of the applicant for, or holder of, the award.

(a) "Departmental Fellowship Review Panel" (also referred to as "Panel") means a panel of 12 members selected by the Secretary, for such terms as may be designated by him, which shall include at least four representatives of the legal discipline and at least four representatives of the field of higher education. At least eight members of the Panel shall be selected from sources outside the Department.

(b) "Panel Chairman" means one of the Panel members designated by the Secretary to serve as Chairman of the Panel for such time as shall be indicated in the designation.

(c) "Departmental Fellowship Review Board" (also referred to as "Board")

means not less than three members of the Panel designated by the Panel Chairman for the consideration of one or more cases submitted by a constituent agency. At least two Board members shall be persons other than employees of the Department, and the Board shall include at least one representative of the legal discipline and one from the field of higher education. In no event shall anyone who participated in any previous consideration of a case be eligible to serve on a board in connection with its consideration of that case. The Panel Chairman may designate himself as one of the members of a Board or as the Chairman thereof.

(d) "Board Chairman" means a member of a Departmental Fellowship Review Board who has been designated as Chairman of such Board by the Panel Chair

man.

(e) "Constituent agency" means the U.S. Commissioner of Education or the Commissioner of Vocational Rehabilita

tion.

(f) "Submission by a constituent agency" means a referral (of an individual's request for a hearing) by the U.S. Commissioner of Education pursuant to § 147.5 of this title or by the Commissioner of Vocational Rehabilitation pursuant to § 401.88a of this title, or similar provisions contained in manual or other issuances of a constituent agency.

(g) "Preliminary decision" means the recommended decision, including findings of fact and conclusions reached in the light of the applicable criteria, prepared by a Hearing Officer and submitted to the Board.

(h) "Initial decision" means the recommended decision of the Board, which shall include (1) findings of fact and conclusions reached in the light of the applicable criteria and, when applicable, (2) the reasons for any changes or modifications made by the Board in a preliminary decision.

(i) The words "Department" and "Departmental" refer to the U.S. Department of Health, Education, and Welfare. (j) "Secretary" means the Secretary of Health, Education, and Welfare.

(k) "Applicable criteria" means those set forth in § 147.4 of this title in the case of a submission by the Commissioner of Education; or in § 401.88a (a) and (b) of this title in the case of a submission by

the Commissioner of Vocational Rehabilitation; or in manual or other issuances of a constituent agency pertaining to denial or discontinuance of fellowship (or traineeship) awards on grounds involving moral character or loyalty. § 10.3 Departmental Fellowship Review Panel; Departmental Fellowship Review Board; in general.

Upon receipt of a submission from a constituent agency, the Chairman of the Departmental Fellowship Review Panel shall refer the case to a Departmental Fellowship Review Board, constituted as provided in § 10.2(c), for the purpose of recommending to the constituent agency, on the basis of a preponderance of the evidence, after affording to the individual concerned an opportunity for a fair hearing, whether the fellowship (or traineeship) award should be denied or discontinued by the constituent agency making the awards, on grounds involving, in accordance with applicable criteria, the moral character or loyalty of the applicant for, or holder of the award. The Board's recommendation shall be embodied in an initial decision in accordance with § 10.2(h).

§ 10.4 Procedural safeguards.

The Board shall take appropriate steps to afford the individual concerned an opportunity for a fair hearing, which shall include provisions designed to assure to such individual the following:

(a) Sufficient notice of the issues to be considered;

(b) An opportunity to be represented by counsel;

(c) Disclosure of as much of all matters of an evidentiary nature as may be permitted within the framework of applicable laws, regulations, and other requirements (e.g., those pertaining to FBI reports);

(d) An opportunity to appear in person (and to present witnesses in his behalf) or, at the option of the individual concerned, to submit his case in whole or in part in writing (e.g., through interrogatories, affidavits, exhibits, etc.);

(e) An opportunity to cross-examine persons either orally or through written interrogatories, to the extent provided by Executive Order 10865 of February 20, 1960 (relating to safeguarding of

classified information within industry), except that functions vested by that Order in the head of a department shall be performed by the head of the appropriate operating agency;

(f) An option to the individual concerned to have the hearing open or closed to the public;

(g) A determination of the place of the hearing which takes into consideration the convenience of the individual concerned and any witnesses who might be testifying at the hearing. § 10.5

Hearing before Board or a Hearing Officer.

The hearing may be conducted, as determined by the Board Chairman, before the full Board as the hearing body, or before a Hearing Officer. The Hearing Officer may be (a) one of the members of the Board or (b) a nonmember who is qualified as a Hearing Officer under the Administrative Procedure Act. § 10.6

Preliminary decision; initial decision; final decision.

When the hearing is conducted by the Board itself, it shall prepare an initial decision for submission to the constituent agency. When the hearing is conducted before a Hearing Officer, the Hearing Officer shall prepare a preliminary decision for submission to the Board. The preliminary decision shall be reviewed by the Board and shall become the initial decision of the Board unless, and to the extent that, it is changed or modified by the Board. The initial decision of the Board shall be transmitted to the constituent agency, and shall become the final decision of the constituent agency, unless, and to the extent that, it is changed or modified by the constituent agency.

§ 10.7

Notice to the individual concerned and opportunity to submit comment on preliminary decision and initial decision.

Copies of the preliminary decision, if any, and of the initial decision shall be mailed promptly by the Hearing Officer or the Board, as the case may be, to the individual, or his counsel, with a notice affording him an opportunity to submit written comments thereon, within a specified reasonable time, to the Board in the case of a preliminary decision, and to the constituent agency in the case of an initial decision.

(a) "Act" means the Federal Property and Administrative Services Act of 1949, Public Law 152, 81st Congress (63 Stat. 377), as amended (40 U.S.C. 471 et seq.). Terms defined in the Act and not defined in this section, shall have in this part the meaning given to them in the Act.

(b) "Accredited" means approval by a recognized accreditation board or association on a regional, State, or national level, such as a State Board of Education or Health, State University, Middle States Association of College of Surgeons, etc. A college, university, or secondary school may be said to be accredited if the credits are accepted for transfer purposes by no fewer than three accredited colleges, universities, or secondary schools not connected or associated with it.

(c) "Administrator" means the Administrator of General Services.

(d) "Assigned property" means real and related personal property which, in the discretion of the Administrator or his designee, has been made available to the Department for transfer for educational or for public health purposes, including research.

(e) "Department" means the Department of Health, Education, and Welfare.

(f) "Disposal agency" means the executive agency of the Government which

has authority to assign or to consider assignment of property to the Department for transfer for health and educational utilization.

(g) "Excess" when used with respect to real property means any real property under the control of any Department or agency in the executive branch of the Government which is not required for its needs and the discharge of its responsibilities as determined by the head thereof.

(h) "Fair market value" means the highest price estimated in terms of money which the property will bring if exposed for sale in the open market by a seller who is willing but not obliged to sell, allowing a reasonable time to find a buyer who is willing but not obliged to buy, both parties having full knowledge of all the uses to which it is adapted and for which it is capable of being used.

(i) "Holding Agency" means the executive agency of the Government which has control and accountability for the real property involved.

(j) "Nonprofit institution" as used in this part means any institution, organization, or association, whether incorporated or unincorporated, no part of the net earnings of which inures or may lawfully inure to the benefit of any private shareholder or individual, and which has been held by the Internal Revenue Service to be tax-exempt under either the provisions of section 101 (6) of the 1939 Internal Revenue Code, or section 501(c)(3) of the 1954 Internal Revenue Code.

(k) "Off-site property" means surplus buildings, underground utilities and all other removable improvements, including related personal property, to be transferred where located, by the Department for educational or for public health purposes, including research, for removal and use away from the site.

(1) "On-site" means surplus real property, including related personalty, to be transferred by the Department for educational or for public health purposes, including research, for use in place.

(m) "Public benefit allowance" means a discount on the purchase price of real property to be transferred for educational or public health purposes, including research, representing any benefit determined by the Secretary which has accrued or may accrue to the United States from use of surplus real property

for educational or public health purposes, including research.

(n) "Related personal property" means any personal property, (1) which is located on and is (i) an integral or necessary part of, or is (ii) essential to the operation of real property, or (2) which is determined by the Administrator to be otherwise related to the real property.

(o) "Secretary" means the Secretary of Health, Education, and Welfare.

(p) "State" means a State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and the territories and possessions of the United States.

(q) "Surplus" when used with respect to real property means any excess real property not required for the needs and the discharge of the responsibilities of all Federal agencies as determined by the Administrator or his designee.

(a) It is the policy of the Department to foster and assure maximum utilization of surplus real property for educational and public health purposes, including research.

(b) Transfers may be made only to States, their political subdivisions, and instrumentalities, tax-supported educational or public health institutions, and nonprofit educational or public health institutions which have been held exempt from taxation under section 101 (6) of the Internal Revenue Code of 1939 (now substantially reenacted in section 501(c)(3) of the Internal Revenue Code of 1954).

(c) Real property will be requested for assignment only when the Department has determined that the property is suitable and needed for public health or educational purposes. The amounts of both real and related personal property to be transferred shall not be excessive to normal operating requirements. Such property, except for transfers contemplated under § 12.10 will not