the local educational agency in the assignment of children to classes, or otherwise in carrying out curricular or extracurricular activities, within the schools of such agency in such a manner as to result in the isolation of minority and nonminority group children for a substantial part of the day; and that no other practices or procedures, including disciplinary sanctions, will be employed in such a manner as to discriminate against children on the basis of race, color, or national origin;

(viii) That the applicant will have published in the local newspaper of general circulation the terms and provisions of each project approved by the Commissioner within 30 days of such approval, or will have published in a local newspaper of general circulation, within 30 days of such approval, pertinent information as to the manner in which, and the place at which, the terms and provisions of such approved project are made reasonably available to the public;

(ix) That the applicant will complete and submit to the Office for Civil Rights of the Department of Health, Education, and Welfare, by October 15, 1971, or such other time as may be determined by that office, an evaluation form to be furnished by that office;

(x) That the applicant will furnish to the Commissioner such additional information as he may deem necessary for the administration of the program;

(xi) That in order to achieve the purposes of the program, the local educational agency will carry out, and comply with, any voluntary plan or court or administrative order described in § 181.3 (a), upon which the determination of its eligibility for assistance under the program is based; and

(xii) That such agency is familiar with, and that such agency will comply with the provisions of, all regulations, grant or contract terms, conditions, and requirements applicable to the program.

(b) An application of a public or nonprofit private agency, organization or institution (other than a local educational agency) for a grant under the program shall

(1) Set forth a statement of the problems as seen from the point of view of such agency, organization, or institution, of achieving one or more desegregated school systems in the relevant community or communities;

(2) Describe any previous involvement and concern of such agency, organiza

tion, or institution with education or school desegregation;

(3) Describe the activities which such agency, organization, or institution proposes to undertake for the purpose of assisting in the implementation of one or more desegregation plans described in § 181.3(a), including a description of the manner in which such activities would contribute to achieving and maintaining one or more desegregated school systems;

(4) Contain an assurance satisfactory to the Commissioner that such agency, organization, or institution will furnish him such additional information as he may deem necessary for the administration of the program;

(5) Be accompanied by the comments (if any) of the local educational agency (or agencies) in the school district (or districts) of which the project to be assisted will take place.

§ 181.7 Advisory Committee.

(a) A local educational agency shall, prior to applying for assistance under the program, afford its biracial advisory committee formed in accordance with paragraph (b) or (c) of this section a reasonable opportunity (not less than 5 days) in which to review and comment to such agency upon such application. In connection with such review, such agency shall furnish to each member of such committee a copy of the regulations applicable to the program. No such application may be approved unless it is accompanied by the written comments of a committee properly constituted in accordance with this section or a certification by such agency that such committee has been formed and was afforded the opportunity to review and comment upon the application (as required by this paragraph) but failed to submit any comments with respect thereto within the period afforded for such review.

(b) For the purposes of this section a biracial committee may be a committee which has been formed pursuant to an order of a Federal or State court for the desegregation of the school system of such agency.

(c) (1) A local educational agency which does not have a committee as described in paragraph (b) of this section (or which desires to establish a new committee for the purposes of this part) shall establish a committee under this paragraph. Such agency shall designate at least five civic or community organizations each of which shall select a

member of the committee. The civic or community organizations which participate in the selection process shall, when taken together rather than considered individually, be broadly representative of the minority and nonminority communities to be served. (The following organizations, if they exist in the district served by the local educational agency, should be among those invited to select a member of the biracial advisory committee: Title I Advisory Committee; Community Action Agency or Head Start Program; Model Cities Agency; Parent-Teacher Association; and the National Association for the Advancement of Colored People, Urban League, or other civil rights or human relations organization active in the community.)

(2) A committee formed under this paragraph must be composed of equal numbers of nonminority group members and members from each significant minority group represented in the community. (For example, in a school district containing both Negro and Spanishsurnamed communities, the committee should be composed of equal numbers of Negro, Spanish-surnamed American and nonminority group members.) At least 50 percent of the members of the committee shall be parents of children directly affected by the requirements described in § 181.3(a). In addition to members appointed to the committee by civic or community organizations, a local educational agency shall select the minimum number of additional persons as may be necessary to meet the requirements of this subparagraph.

(d) Each application by a local educational agency for assistance under the program shall contain an assurance that such agency will consult at least once a month with its biracial committee established under this section (in formal meetings of such committee) with respect to policy matters arising in the administration and operation of any project for which funds are made available under the program, and that it will provide such committee with a reasonable opportunity to periodically observe (upon prior and adequate notice to such agency at such time or times as such committee and agency may agree) and comment upon all project-related activities.

(e) The names of the members of said biracial advisory committee shall be published in a newspaper of general circulation or otherwise made public prior

to the submission of an application under this part.

(f) No amendment to the project of a local educational agency shall be approved, and no additional funds made available under the program, unless the biracial advisory committee has been given an opportunity to comment upon such amendment of or addition to the project. Amendments or additions suggested by the biracial advisory committee shall be forwarded by the local educational agency, with or without comment by such agency, to the Commissioner for his consideration.

(20 U.S.C. 1231d)

§ 181.8 Student advisory committees.

The application of a local educational agency shall contain an assurance that, no later than 30 days after the opening of the 1971-72 acadamic year or after the approval of such application, whichever occurs later, a student advisory committee will be formed from secondary grade students in each school affected by the project which offers secondary instruction. Each such committee shall be composed of equal numbers of each significant minority and nonminority group in the affected school. The members of each such committee shall be selected by the student body or the student government of such school. Representatives of the local educational agency shall periodically consult with the student advisory committee concerning matters relevant to the program.

(b) The relative promise of the project or projects to be assisted in carrying out the purpose of the program;

(c) The extent to which the proposed project deals comprehensively and effectively with problems faced by the local educational agency in achieving and maintaining a desegregated school system;

(d) The extent and impact of the desegregation achieved or to be achieved; (e) The number of minority students in the school district;

(f) In the case of applicants which have previously received assistance under the program, the relative effectiveness of the projects conducted under the program prior to July 1, 1971, and other factors relating to the performance of such applicant under such program.

§ 181.11 Review by State educational

agency.

The Commissioner will not approve an application for assistance pursuant to § 181.6 without first affording the appropriate State educational agency a reasonable opportunity to review and make recommendations with respect to such application.

§ 181.12 Non-Federal contributions.

In view of the emergency nature of the program and the fact that most local educational agencies have already determined their budgets for the 1971-72 academic year, the Commissioner will not require an applicant to contribute to the costs of the project if the application is accompanied by an assurance satisfactory to him that the applicant does not have available adequate resources for that purpose.

(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: Provided, That the recipient is afforded reasonable notice and

opportunity to show cause why such action should not be taken.

(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 and the legal authority and jurisdiction under which the hearing is 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 good cause that suspension of assistance during the pendency of such proceedings is necessary, said notice shall, in addition to the matters described above, inform the recipient of such determination and shall 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 subparagraph (2) of this paragraph, 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 commitments 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 upon an initial decision of a hearing examiner becoming final without appeal to or review by the Commissioner.

(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 subparagraph (1) of this paragraph 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 therefor, the recipient shall remit to the Government any accounts 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 a hearing examiner 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 hearing examiner. A request for appeal or review under this section shall be accompanied by exceptions to the hearing examiner'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. (42 U.S.C. 2944)

Appendix A [Reserved] Appendix B

MEMORANDUM OF UNDERSTANDING BETWEEN THE OFFICE OF ECONOMIC OPPORTUNITY AND THE DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE

In anticipation of the delegation of authority to the Department of Health, Education, and Welfare (HEW) by the Office of Economic Opportunity (OEO) for the purpose of developing and carrying out the Emergency School Assistance Program under section 222(a) of the Economic Opportunity Act of 1964, OEO and HEW agree to the following:

A. Policy. 1. Subject to the provisions of the delegation instrument, HEW shall develop and carry out programs and projects designed to assist schools or school districts with substantial enrollments of children from low-income families in meeting the emergency transitional needs of such districts incident to the elimination of racial segregation and discrimination among students and faculty in elementary and secondary schools.

"Low-income families," as referred to in this agreement, are those families whose incomes fall below OEO's poverty line, as set forth in OEO Instruction 6004-18.

2. Programs and projects assisted by HEW pursuant to the delegation of authority referred to above shall not provide general aid to elementary or secondary education in any school or school system; however, as authorized in section 244(5) of the Act, special, remedial, and other noncurricular educational assistance may be provided, including the following:

(a) The provision of additional professional or other staff members to meet emergency transitional needs and for the training and retraining of school staff members to meet such needs;

(b) Remedial and other services to meet the special needs of children in schools which are affected by desegregation plan or plans, including special services for gifted and talented children in such schools;

new

(c) Comprehensive guidance, counseling, and other personal services for pupils; (d) Development of instructional techniques and materials designed to meet the special needs of children in schools which are affected by desegregation plans;

(e) Such repair or minor remodeling or alteration of existing school facilities as may be necessary to meet emergency transitional needs and the lease or purchase of mobile or demountable classroom units or other mobile educational facilities for use in meeting such needs;

(f) Community activities, including public education efforts which are designed to meet emergency transition needs and are in support of a plan, program, project, or other activity having the objectives described in paragraph Al of this agreement;

(g) Special administrative activities to meet emergency transitional needs such as

the rescheduling of students or teachers, or the provision of information to parents and other members of the general public, incident to the implementation of a desegregation plan;

(h) Planning and evaluation activities; and

(1) Other specially designed programs or projects which are consistent with the terms of this Agreement and the delegation of authority it implements.

3. In carrying out activities under the delegation of authority referred to above, measures shall be taken to assure compliance with the provisions of section 225 (c) and (d) of the Act relating to non-Federal share and maintenance of effort. In view of the fact that this is an emergency program designed to aid school districts which have for the most part already firmed up their budgets for the coming school year, it is understood that HEW may desire to waive the formal non-Federal share requirements otherwise imposed by section 225(c) and to rely instead on the school districts' general commitment to the purposes of the program. It is understood that these activities will be conducted in compliance with section 614 of the Act which prohibits Federal direction, supervision, or control over the curriculum, program of instruction, administration, or personnel of any educational institution or school system and with other applicable provisions of such Act.

4. No program developed and carried out under such delegation of authority shall be operated as a replacement for any existing program under other Federal law.

B. Administration and coordination. 1. Grants and contracts to carry out programs and projects referred to in this agreement may be made directly to or with public or nonprofit private agencies, organizations or institutions, and contracts to carry out such programs and projects may be made to or with public or private agencies, organizations or institutions. Where feasible, community action agencies will be involved in planning and advisory functions and in the community activities contemplated by paragraph A2(f) of this agreement.

2. Primary authority to initiate policies, regulations, and issuances for such programs and projects shall rest with HEW. OEO and HEW will maintain liaison on proposed policies.

3. HEW shall be responsible for the administration of training and technical assistance grants and contracts, and all other contracts relating exclusively to such programs and projects.

4. HEW shall have the primary responsibility for inspection and audit of grants and contracts made or entered into by HEW in exercising the powers delegated to it by OEO.

5. HEW shall, in consultation with OEO, develop a plan for making a separate allotment of funds under section 225(b) of the Act which will assure an equitable distribution of assistance among the States for de