Sec. 514.50  Sanctions.
(a) Reason for sanctions. The Agency may, upon a determination by
the office of Exchange Visitor Program Services ("EVPS"), 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 Agency 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 Agency, 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 Sec. 514.50(a):
(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
herein;
(ii) A declaration placing the exchange visitor sponsor on
probation, for a period of time determined by the Agency 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 days of service of the written notice to the
sponsor imposing any of the sanctions set forth in this
paragraph, the sponsor may submit to EVPS any statement or
information, including, if appropriate, any documentary evidence
or affidavits in opposition to or mitigation of the sanction, and
may request a conference. Upon its review and consideration of
such submission, the Agency 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 EVPS.
The decision of EVPS is not appealable with regard to lesser
sanctions in paragraphs (b)(1)(i) to (iv), 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 Sec. 514.50(a), EVPS shall give written
notice to the sponsor of the Agency's intent to impose the
sanction, specifying therein the reasons for such sanction and
the effective date thereof, which shall not be sooner than 30
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 EVPS, 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 EVPS.
(3) EVPS shall review and consider the sponsor's submission and,
within seven (7) 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) 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
Agency's General Counsel, room 700, 301 4th Street, SW.,
Washington, DC 20547. 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 General Counsel or
his or her designee, shall, within ten (10) days, convene the
Board. Thereafter, proceedings before the Board shall follow the
regulations set forth in Sec. 514.50(i), infra.
(d) Summary suspension. (1) EVPS 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 therefor and the effective date thereof, notify the
sponsor of the Agency's intent to suspend the designation of the
sponsor's program for a period not to exceed sixty (60) days.
(2) No later than three (3) days after receipt of such
notification, the sponsor may submit a rebuttal to the EVPS,
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 EVPS. Within three (3) days of
receipt of such submissions, EVPS 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) days after receipt of the
aforesaid notice continuing the suspension, appeal the suspension
to the Board by filing a notice of appeal with the Agency's
General Counsel, room 700, 301 4th Street, SW., Washington, DC
20547. 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 General Counsel or
his or her designee shall, within ten (10) days, convene the
Board. Thereafter, proceedings before the Board shall follow the
regulations set forth in Sec. 514.50(i), infra.
(e) Revocation. (1) EVPS may, for any reason set forth at Sec.
514.50(a), give the sponsor not less than thirty (30) 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) days of receipt of the aforesaid notice of
intent to revoke, the sponsor shall have an opportunity to show
cause as to why such revocation should not be imposed, and may
submit to EVPS 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 EVPS.
(3) EVPS 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 on whether the revocation 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) days after receipt of the
aforesaid notice effecting the revocation, appeal the revocation
to the Board by filing a notice of appeal with the Agency's
General Counsel, room 700, 301 4th Street, SW., Washington, DC
20547. 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 General Counsel or
his or her designee shall, within ten (10) days, convene the
Board. Thereafter, proceedings before the Board shall follow the
regulations set forth in Sec. 514.50(i), infra.
(f) Responsible officers. (1) The Agency 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)" above.
(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) EVPS shall give
an applicant for redesignation not less than thirty (30) 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) days of receipt of the aforesaid notice of
intent to deny the application, the applicant shall have an
opportunity to demonstrate why the application should be
approved, and may submit to EVPS any statement or information
including, if appropriate, any documentary evidence or affidavits
in support of its application.
(3) EVPS 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 applicant of its right to appeal the denial and
of its right to a formal hearing thereon.
(4) The applicant may, within twenty (20) days after receipt of
the aforesaid notice of denial, appeal the denial to the Board by
filing a notice of appeal with the Agency's General Counsel, room
700, 301 4th Street, SW., Washington, DC 20547.
(5) Upon receipt of the notice of appeal the General Counsel or
his or her designee shall, within ten (10) days, convene the
Board. Thereafter, proceedings before the Board shall follow the
regulations set forth in Sec. 514.50(i), infra.
(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 Associate Director of the Bureau of Educational
and Cultural Affairs, or his or her designee, who shall serve as
presiding officer of the Board;
(ii) The Deputy Director of the relevant geographic area office,
or his or her designee; and
 
(iii) A member of the public appointed by the Deputy Associate
Director of the Bureau of Educational and Cultural Affairs. A
different public member shall be appointed for each sanction case
brought before the Board.
(2) The General Counsel of the Agency shall appoint an attorney
in the Office of the General Counsel to prosecute the case before
the Board on behalf of the Agency. Such attorney shall not take
part in the deliberations of the Board.
(3) The General Counsel of the Agency shall also appoint an
attorney in the Office of the General Counsel to serve as a legal
advisor 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) 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)
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 EVPS, the sponsor, the Immigration
and Naturalization Service, and the Bureau of Consular Affairs of
the Department of State. EVPS, 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 order of
suspension, summary suspension, revocation, or denial of
redesignation has been entered shall not thereafter issue any
Forms IAP-66, 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
Forms IAP-66 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 these regulations, 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 these regulations
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.