[Code of Federal Regulations]
[Title 22, Volume 1]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 22CFR62.50]

[Page 312-316]
 
                       TITLE 22--FOREIGN RELATIONS
 
                     CHAPTER I--DEPARTMENT OF STATE
 
PART 62--EXCHANGE VISITOR PROGRAM--Table of Contents
 
                          Subpart D--Sanctions
 
Sec. 62.50  Sanctions.


    (a) Reason for sanctions. The Department of State may, upon a 
determination by the Office of Exchange Coordination and Designation 
(``ECD''), Bureau of Educational and Cultural Affairs, impose sanctions 
against a sponsor which has:
    (1) Willfully or negligently violated one or more provisions of this 
part;
    (2) Evidenced a pattern of willful or negligent failure to comply 
with one or more provisions of this part;
    (3) Committed an act of omission or commission which has or could 
have the effect of endangering the health, safety, or welfare of an 
exchange visitor; or
    (4) Committed an act or acts which may have the effect of bringing 
the Department of State or the Exchange Visitor Program into notoriety 
or disrepute.
    (b) Lesser sanctions. (1) In order to ensure full compliance with 
the regulations in this part, the Department of State, in its discretion 
and depending on the nature and seriousness of the violation, may impose 
any or all of the following sanctions (``lesser sanctions'') on a 
sponsor for any of the reasons set forth in paragraph (a) of this 
section:
    (i) A written reprimand to the sponsor, with a warning that repeated 
or persistent violations of the regulations in this Part may result in 
suspension or revocation of the sponsor's exchange visitor program 
designation, or other sanctions as set forth in this section;
    (ii) A declaration placing the exchange visitor sponsor on 
probation, for a period of time determined by the Department of State in 
its discretion, signifying a pattern of serious willful or negligent 
violation of regulations such that further violations could lead to 
suspension or revocation;
    (iii) A corrective action plan designed to cure the sponsor's 
violations; or
    (iv) A limitation or reduction in the authorized number of exchange 
visitors in the sponsor's program or in the geographic area of the 
sponsor's recruitment or activity.
    (2) Within ten (10) calendar days of service of the written notice 
to the sponsor imposing any of the sanctions set forth in this paragraph 
(b), the sponsor may submit to ECD any statement or information, 
including, if appropriate, any documentary evidence or affidavits in 
opposition to or mitigation of the sanction, and may request a

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conference. Upon its review and consideration of such submission, the 
Department of State may, in its discretion, modify, withdraw, or confirm 
such sanction. All materials submitted by the sponsor shall become a 
part of the sponsor's file with ECD. The decision of ECD is not 
appealable with regard to lesser sanctions in paragraphs (b)(1)(i) 
through (iv) of this section, if:
    (i) The proposed limitation in the size of the sponsor's program is 
equivalent to 10 percent or less of the number of authorized visitors in 
the sponsor's program during the previous calendar year; or
    (ii) The proposed limitation in the size of the sponsor's program 
will not cause a significant financial burden for the sponsor.
    (c) Suspension or significant program limitation. (1) Upon a finding 
that a suspension, or a reduction in the sponsor's program equivalent to 
a number greater than 10 percent of the number of authorized visitors, 
is warranted for any of the reasons set forth at paragraph (a) of this 
section, ECD shall give written notice to the sponsor of the Department 
of State's intent to impose the sanction, specifying therein the reasons 
for such sanction and the effective date thereof, which shall not be 
sooner than thirty (30) calendar days after the date of the letter of 
notification.
    (2) Prior to the proposed effective date of such sanction, the 
sponsor may submit a protest to ECD, setting forth therein any reasons 
why suspension should not be imposed, and presenting any documentary 
evidence in support thereof, and demonstrating that the sponsor is in 
compliance with all lawful requirements. All materials submitted by the 
sponsor shall become a part of the sponsor's file with ECD.
    (3) ECD shall review and consider the sponsor's submission and, 
within seven (7) calendar days of receipt thereof, notify the sponsor in 
writing of its decision on whether the sanction is to be affected. In 
the event that the decision is to impose the sanction, such notice shall 
inform the sponsor of its right to appeal the sanction and of its right 
to a formal hearing thereon.
    (4) The sponsor may within ten (10) calendar days after receipt of 
the aforesaid notice effecting the sanction, appeal the sanction to the 
Exchange Visitor Program Designation, Suspension and Revocation Board 
(``Board'') by filing a notice of appeal with the Principal Deputy 
Assistant Secretary of the Bureau of Educational and Cultural Affairs. 
The filing of the notice of appeal shall serve to stay the effective 
date of the sanction pending appeal.
    (5) Upon receipt of the notice of appeal, the Principal Deputy 
Assistant
    Secretary, or his or her designee, shall, within ten (10) calendar 
days, convene the Board. Thereafter, proceedings before the Board shall 
follow the regulations set forth in paragraph (i) of this section.
    (d) Summary suspension. (1) ECD may, upon a finding that a sponsor 
has willfully or negligently committed a serious act of omission or 
commission which has or could have the effect of endangering the health, 
safety, or welfare of an exchange visitor, and upon written notice to 
the sponsor specifying the reason therefore and the effective date 
thereof, notify the sponsor of the Department of State's intent to 
suspend the designation of the sponsor's program for a period not to 
exceed sixty (60) calendar days.
    (2) No later than three (3) calendar days after receipt of such 
notification, the sponsor may submit a rebuttal to ECD, setting forth 
therein any reasons why a suspension should not be imposed.
    (3) The sponsor may present any statement or information in such 
protest, including, if appropriate, any documentary evidence or 
affidavits in opposition to or mitigation of the sanction, and 
demonstrating that the sponsor is in compliance with all lawful 
requirements. All materials submitted by the sponsor shall become a part 
of the sponsor's file with ECD. Within three (3) calendar days of 
receipt of such submissions, ECD shall notify the sponsor in writing of 
its decision whether to effect the suspension. In the event the decision 
is to effect the suspension, such notice shall advise the sponsor of its 
right to appeal the suspension and of its right to a formal hearing 
thereon.
    (4) The sponsor may, within ten (10) calendar days after receipt of 
the

[[Page 314]]

aforesaid notice continuing the suspension, appeal the suspension to the 
Board by filing a notice of appeal with the Principal Deputy Assistant 
Secretary of the Bureau of Educational and Cultural Affairs. The filing 
of the notice of appeal of a summary suspension shall not serve to stay 
the suspension pending appeal.
    (5) Upon receipt of the notice of appeal, the Principal Deputy 
Assistant Secretary, or his or her designee shall, within ten (10) 
calendar days, convene the Board. Thereafter, proceedings before the 
Board shall follow the regulations set forth in paragraph (i) of this 
section.
    (e) Revocation. (1) The Principal Deputy Assistant Secretary, or his 
or her designee, may, for any reason set forth at paragraph (a) of this 
section, give the sponsor not less than thirty (30) calendar days notice 
in writing of its intent to revoke the sponsor's exchange visitor 
program designation, specifying therein the grounds for such revocation 
and the effective date of the revocation. Revocation need not be 
preceded by the imposition of a summary suspension, a suspension, or any 
lesser sanctions.
    (2) Within ten (10) calendar days of receipt of the notice of intent 
to revoke in paragraph (e)(1) of this section, the sponsor shall have an 
opportunity to show cause as to why such revocation should not be 
imposed, and may submit to the Principal Deputy Assistant Secretary any 
statement of information, including, if appropriate, any documentary 
evidence or affidavits in opposition to or mitigation of the violations 
charged, and demonstrating that the sponsor is in compliance with all 
lawful requirements. All materials submitted by the sponsor shall become 
a part of the sponsor's file with ECD.
    (3) The Principal Deputy Assistant Secretary, or his or her 
designee, shall review and consider the sponsor's submission and, 
thereafter, notify the sponsor in writing of its decision on whether the 
revocation is to be effected. In the event that the decision is to 
effect the revocation, such notice shall advise the sponsor of its right 
to appeal the revocation and of its right to a formal hearing thereon.
    (4) The sponsor may, within twenty (20) calendar days after receipt 
of the notice effecting the revocation in paragraph (e)(3) of this 
section, appeal the revocation to the Board by filing a notice of appeal 
with the Principal Deputy Assistant Secretary. The filing of the notice 
of appeal shall serve to stay the effective date of the revocation 
pending appeal.
    (5) Upon receipt of the notice of appeal, the Principal Deputy 
Assistant Secretary, or his or her designee shall, within ten (10) 
calendar days, convene the Board. Thereafter, proceedings before the 
Board shall follow the regulations set forth in paragraph (i) of this 
section.
    (f) Responsible officers. (1) The Department of State may direct a 
sponsor to summarily suspend, suspend or revoke the appointment of a 
responsible officer or alternate responsible officer for any of the 
reasons set forth in paragraph (a) of this section.
    (2) In the event that such action is directed, the sponsor shall be 
entitled to all of the rights of review or appeal that are accorded to a 
sponsor under paragraphs (b), (c), (d), and (e) of this section.
    (g) Denial of application for redesignation. (1) ECD shall give an 
applicant for redesignation not less than thirty (30) calendar days 
notice in writing of its intentions to deny the application for exchange 
visitor program redesignation, specifying therein the grounds for such 
denial.
    (2) Within ten (10) calendar days of receipt of the aforesaid notice 
of intent to deny the application in paragraph (g)(1) of this section, 
the applicant shall have an opportunity to demonstrate why the 
application should be approved, and may submit to ECD any statement or 
information including, if appropriate, any documentary evidence or 
affidavits in support of its application.
    (3) ECD shall review and consider the applicant's submission and 
thereafter notify the applicant in writing of its decision on whether 
the application for redesignation will be approved. In the event that 
the decision is to deny the applicant, such notice shall advise the

[[Page 315]]

applicant of its right to appeal the denial and of its right to a formal 
hearing thereon.
    (4) The applicant may, within twenty (20) calendar days after 
receipt of the notice of denial in paragraph (g)(3) of this section, 
appeal the denial to the Board by filing a notice of appeal with the 
Principal Deputy Assistant Secretary.
    (5) Upon receipt of the notice of appeal the Principal Deputy 
Assistant Secretary, or his or her designee shall, within ten (10) 
calendar days, convene the Board. Thereafter, proceedings before the 
Board shall follow the regulations set forth in paragraph (i) of this 
section.
    (h) The Exchange Visitor Program Designation, Suspension, and 
Revocation Board. (1) The Exchange Visitor Program Designation, 
Suspension, and Revocation Board (``Board'') shall consist of:
    (i) The Deputy Assistant Secretary for Academic Programs of the 
Bureau of Educational and Cultural Affairs, or his or her designee, who 
shall also serve as presiding officer of the Board;
    (ii) The Executive Director, Office of the Executive Director of the 
Bureau of Educational and Cultural Affairs, or his or her designee; and
    (iii) The Director, Office of Policy and Evaluation of the Bureau of 
Educational and Cultural Affairs, or his or her designee.
    (2) The Office of the Legal Adviser of the Department of State shall 
appoint an attorney from the Office of the Legal Adviser to present the 
case to the Board on behalf of the Department. Such attorney shall not 
take part in the deliberations of the Board.
    (3) The Office of the Legal Adviser of the Department of State shall 
also appoint an attorney in the Office of the Legal Adviser to serve as 
a legal adviser to the Board. Such attorney shall not have had any 
substantial prior involvement with the particular case pending before 
the Board.
    (i) General powers of the Board. At any hearing before the Board 
pursuant to this Part, the Board may:
    (1) Administer oaths and affirmations;
    (2) Rule on offers of proof and receive any oral or documentary 
evidence;
    (3) Require the parties to submit lists of proposed witnesses and 
exhibits, and otherwise regulate the course of the hearing;
    (4) Hold conferences for the settlement or simplification of the 
issues by consent of the parties;
    (5) Dispose of motions, procedural requests, or similar matters; and
    (6) Make decisions, which shall include findings of fact and 
conclusions of law on all the material issues of fact, law or discretion 
presented on the record, and the appropriate sanction or denial thereof.
    (j) Proceedings before the Board. The following procedures shall 
govern all designation, suspension, summary suspension, and revocation 
proceedings before the Board:
    (1) Upon being convened, the Board shall schedule a hearing, within 
ten (10) calendar days, at which hearing the parties may appear on their 
own behalf or by counsel, present oral or written evidence, and cross-
examine witnesses. A substantially verbatim record of the hearing shall 
be made and shall become a part of the record of the proceeding;
    (2) At the conclusion of the hearing, the Board shall promptly 
review the evidence and issue a written decision within ten (10) 
calendar days, signed by a majority of the members, stating the basis 
for its decision. The decision of the majority shall be the decision of 
the Board. If a Board member disagrees with the majority, the member may 
write a dissenting opinion;
    (3) If the Board decides to affirm the suspension, summary 
suspension, revocation, or denial of redesignation, a copy of its 
decision shall be delivered to ECD, the sponsor, the Immigration and 
Naturalization Service, and the Bureau of Consular Affairs of the 
Department of State. ECD, at its discretion, may distribute the Board's 
decision as it deems appropriate; and
    (4) The suspension, revocation, or denial of designation shall be 
effective as of the date of the Board's decision.
    (k) Effect of suspension, summary suspension, revocation, or denial 
of redesignation. A sponsor against which an

[[Page 316]]

order of suspension, summary suspension, revocation, or denial of 
redesignation has been entered shall not thereafter issue any 
Certificate of Eligibility for Exchange Visitor Status, advertise, 
recruit, or otherwise promote its program, and under no circumstances 
shall the sponsor facilitate the entry of an exchange visitor. 
Suspension, summary suspension, revocation, or denial of redesignation 
shall not invalidate any Certificate of Eligibility for Exchange Visitor 
Status issued prior to the effective date of the suspension, summary 
suspension, revocation, or denial of redesignation, nor shall the 
suspension, summary suspension, revocation, or denial of redesignation 
in any way diminish or restrict the sponsor's legal or financial 
responsibilities to existing program participants.
    (l) Miscellaneous--(1) Computation of time. In computing any period 
of time prescribed or allowed by the regulations in this section, the 
day of the act or event from which the designated period of time begins 
to run shall not be included. The last day of the period so computed 
shall be included unless it is a Saturday, a Sunday, or a federal legal 
holiday, in which event the period runs until the end of the next day 
which is not one of the aforementioned days. When the period of time 
prescribed or allowed is less than eleven (11) days, intermediate 
Saturdays, Sundays, or federal legal holidays shall be excluded in the 
computation.
    (2) Service of notice on sponsor. When used in this part the terms 
``written notice to the sponsor'' shall mean service of written notice 
by mail, delivery or facsimile, upon either the president, managing 
director, responsible officer, or alternate responsible officer of the 
sponsor.

[67 FR 17613, Apr. 11, 2002]