compliance is found and not remedied within a reasonable period of time.

C. Equal Employment Opportunity
Commission

1. Congress should amend Title VII of the Civil Rights Act of 1964 to authorize the Equal Employment Opportunity Commission to issue cease and desist orders to eliminate discriminatory practices through administrative action.

2. EEOC should emphasize initiatory activities, such as public hearings and Commissioner charges, as opposed to the essentially passive activity of processing individual complaints, to facilitate elimination of industrywide or regional patterns of employment discrimination.

3. EEOC should amend its complaint procedures to make more effective enforcement use of the complaint processing system. Priority should be assigned to complaints of particular importance, complaints should be consolidated wherever possible, and emphasis should be placed on processing complaints involving classes of complainants rather than individuals.

D. Coordination

The President should issue a reorganization plan transferring the contract compliance responsibilities of OFCC and the litigation responsibilities of the Department of Justice to EEOC, so that all responsibilities for equal employment opportunity will be lodged in a single independent agency.

II. HOUSING

A. Department of Housing and Urban Development (HUD)

1. Congress should amend Title VII of the Civil Rights Act of 1968 to authorize HUD to issue cease and desist orders to eliminate discriminatory housing practices through administrative action.

2. HUD should establish specific fair housing goals, governing its efforts under Title VIII of the Civil Rights Act of 1968, Title VI of the Civil Rights Act of 1964, and Executive Order 11063. These goals should be of sufficient breadth not only to facilitate the successful resolution of individual complaints, but to provide substantially expanded housing opportunities throughout metropolitan areas for minor

ity group members and to reverse the trend toward racial and economic separation.

3. HUD should establish program priorities and policies governing the administration of its programs of housing and urban development as well as its fair housing programs to facilitate achievement of these goals. Based on an analysis of racial and ethnic data on program participation, HUD should adjust its program priorities and policies to facilitate achievement of fair housing goals.

4. HUD should strengthen its efforts as leader of the entire Federal fair housing effort to assure that all other departments and agencies that have programs and activities relating to housing and urban development administer them in a way to facilitate achievement of fair housing goals.

(a) HUD should assign staff to monitor key programs of particular departments and agencies.

(b) HUD should convene periodic meetings with other departments and agencies to discuss progress made in furthering the cause of fair housing.

5. HUD should strengthen its efforts under nonenforcement provisions of Title VIII, such as rendering technical assistance to public and private fair housing agencies and convening conferences on a local, State, and national basis to promote the purposes of fair housing and to stimulate cooperative efforts of industry and fair housing groups in achieving them.

B. Veterans Administration (VA) and Federal Housing Administration (FHA)

1. VA and FHA should require aided builders to advertise housing and develop marketing policies and practices aimed at attracting minority as well as majority group purchases.

2. VA and FHA should undertake a program of onsite compliance reviews to monitor the activities of aided builders.

3. VA and FHA should require that as a condition of reinstatement aided builders, debarred for discriminatory practices, must agree to additional affirmative actions, such as submission of periodic compliance reports showing the number of houses sold to minority group families. Reinstatement also should be conditioned on the achievement of specific goals in sales of housing to minority group families.

C. Federal Financial Regulatory Agencies 1. To implement Title VIII's prohibition against discrimination in mortgage financing, the agencies which supervise and benefit mortgage lending institutions (savings and loan associations, commercial banks, and mutual savings banks) should require these institutions to maintain racial and ethnic data on loan applications-those rejected as well as those approved and develop instructions and procedures for examiners that will enable them to detect patterns of discriminatory practices by these institutions.

2. The agencies should develop procedures for the imposition of sanctions against institutions in violation of Title VIII. These sanctions should include issuance of cease and desist orders and, in appropriate cases, termination of Federal insurance or charters.

3. To assist in assuring compliance by builders and developers with Title VIII obligations, the agencies should require mortgage lending institutions to include nondiscrimination clauses in their agreements with builders, including appropriate penalties for violations, such as acceleration of payment.

D. Site Selection for Federal Installations

The President should amend Executive Order 11512 (1970) concerning the selection of sites for Federal installations, in accordance with this Commission's recommendations in its report, "Federal Installations and Equal Housing Opportunity", to assure that communities are, in fact, open to all economic groups and to racial and ethnic minorities, as a condition of eligibility for location of Federal installations.

III. FEDERAL PROGRAMS

A. Title VI and Federally Assisted
Programs

1. All agencies, that administer programs subject to Title VI, should strengthen their compliance systems by assuring that the following minimum compliance activities are carried out.

a. Systematic onsite reviews of recipients should be conducted to assure that all recipients are reviewed at frequent intervals.

b. Comprehensive guidelines for compliance reviews should be developed by Title VI agen

cies, with the assistance of the Department of Justice, to asure thoroughness and, where appropriate, uniformity of review.

c. Preapproval compliance reviews should be conducted by agencies that administer programs involving construction of facilities, such as public housing projects, recreational facilities, and highways, to assure that these facilities, through location and design, will serve minority group members on an equitable basis.

d. All agencies should establish compliance reporting systems, including collection of data on racial and ethnic participation in agency programs. These data shoud be subjected to evaluation and, where possible discrimination is indicated, onsite compliance reviews should be conducted.

2. Agencies should place specific limits on the time permitted for voluntary compliance and should make greater use of the sanction of fund termination.

3. Litigation by the Department of Justice should be used as a mechanism in support of fund termination proceedings rather than as a substitute for such proceedings.

4. The Department of Justice should establish an adequately staffed Office of the Special Assistant to the Attorney General for Title VI coordination, housed in the Office of the Attorney General and reporting directly to him.

5. Justice should concentrate its Title VI activities on assuring effective administrative enforcement by the various Federal agencies having Title VI responsibilities rather than on litigation.

6. The President should amend Executive Order 11247 (1965) to authorize the Attorney General to direct departments and agencies to take specific compliance and enforcement actions, including fund termination proceedings.

B. Insurance and Guaranty Programs

Agencies that administer programs of insurance and guaranty should institute mechanisms to determine compliance with existing nondiscrimination requirements of lending institutions and other intermediaries between the Federal Government and borrowers. The mechanisms should include compliance reporting systems, onsite compliance reviews, and specific procedures for processing discrimination complaints.

C. Direct Assistance Programs Agencies which administer programs of direct Federal assistance should issue regulations and establish specific mechanisms to assure against racial and ethnic discrimination by Federal officials that operate these programs. The regulations and mechanisms should provide for a system of periodic reviews of agency offices, procedures for complaint investigations, and procedures for gathering and evaluating racial and ethnic data. Appropriate disciplinary action should be taken against Federal officials found to have practiced such discrimination.

IV. REGULATED INDUSTRIES

A. The Interstate Commerce Commission (ICC), the Civil Aeronautics Board (CAB), and the Federal Power Commission (FPC) should join the Federal Communications Commission (FCC) in issuing rules prohibiting employment discrimination by their licensees and in implementing such employment opportunity rules by instituting appropriate mechanisms. These should include compliance reports from licensees, onsite compliance reviews, and requirements under which licensees would be required to demonstrate that they are taking affirmative actions to increase minority employment.

B. The FCC and the ICC should amend their procedures concerning issuances of licenses, which currently tend to protect the economic interests of existing licensees, to facilitate minority group entrance as entrepreneurs and to permit them to compete for licenses on an equal basis with existing licensees.

C. To facilitate challenges of proposed agency actions concerning such matters as license renewals, the four agencies should provide free legal services to individuals or groups who wish

to challenge the proposed agency action but cannot afford the legal assistance necessary to do so effectively.

D. To implement existing requirements of nondiscrimination in services and facilities by the industries they regulate, the FCC, ICC, CAB, and FPC should abandon reliance on complaint processing and establish affirmative compliance mechanisms.

E. The Federal Trade Commission (FTC) should expand its efforts to protect the ghetto poor from unscrupulous businessmen and should work in close cooperation with local consumer groups, community action representatives, welfare organizations, and other public and private groups concerned with preventing exploitation of the poor. FTC should also impose the sanctions available to it, such as the imposition of penalties, when exploitation is found.

F. In carrying out its responsibilities to enforce antitrust laws, the FTC should broaden the scope of its investigations of mergers and other corporate actions to include matters concerning the potential impact on the social and economic life of ghetto areas.

G. The Securities and Exchange Commission (SEC), in carrying out its statutory responsibility of assuring full disclosure of information by registering companies, should establish guidelines requiring companies to disclose facts concerning possible imposition of sanctions for violation of Federal contract requirements under Executive Order 11246 or pending law suits under Title VII of the Civil Rights Act of 1964.

H. The SEC should amend its regulation to remove the prohibition against stockholders raising questions involving "general, economic, political, racial, religious, and social considerations," as a means of stimulating greater concern and activity by corporate enterprises in civil rights and related areas.

The basic conclusion of this report is that the great promise of the civil rights laws, Executive orders, and judicial decisions of the 1950's and 1960's has not been realized. The Federal Government has not yet fully prepared itself to carry out these legal mandates of equal opportunity.

The Federal arsenal of civil rights protections is impressive. In nearly every aspect of life-voting, jobs, housing, education, access to places of public accommodation and facility, and participation in the benefits of all Federal programs equal opportunity is guaranteed to every American as a matter of legal right. In many areas, however, the Government has not yet developed the mechanisms and procedures necessary to secure this right in fact as well as in legal theory.

To some extent, the failure to fulfill the promise of equal opportunity can be traced to impediments in the civil rights laws under which Federal agencies must operate. Coverage, while generally broad, is not always all-encompassing. For example, in the areas of housing and private employment, there are statutory exceptions which exclude millions of jobs and homes from the ambit of civil rights protection. Similarly, the remedies provided under some of these civil rights laws are inadequate to secure in fact the rights that are guaranteed by law. Often, the only recourse available to persons discriminated against is litigation, which can be a time-consuming and expensive method of securing relief.

Impediments in coverage and enforcement provided under the laws themselves, however, have not been the major obstacles to more effective administration of civil rights laws. Rather, the principal impediment has been the failure of departments and agencies having civil rights responsibilities to make maximum use of the procedures and mechanisms available to them. As a result, there is danger that

the great effort made by public and private groups to obtain the civil rights laws we now have will be nullified through ineffective enforcement. The focus of civil rights must shift from the halls of Congress to the corridors of the Federal bureaucracies that administer these laws.

The Federal Government is not a monolith. It consists of a large number of departments and agencies that administer a wide variety of programs and carry different sets of responsibilities. By the same token, the civil rights problems facing these departments and agencies are not all the same and the techniques necessary to meet them often vary depending upon the kind of program the agency administers and the kind of civil rights law it carries out. Further, implementation of civil rights laws by these agencies has, by no means, been a total failure. Some agencies have had marked success in carrying out their civil rights responsibilities. Some agencies have been successful in carrying out certain aspects of their responsibilities but unsuccessful in carrying out others. Nonetheless, the Commission's study has revealed a number of fundamental weaknesses and inadequacies in civil rights compliance and enforcement that are common to most agencies, regardless of the programs they administer or the civil rights laws they enforce. Among these shared weaknesses are:

• Inadequate staff and other resources to conduct civil rights enforcement activities with maximum effectiveness.

• Lack of authority and subordinate status of agency civil rights officials.

• Failure to define civil rights goals with sufficient specificity or breadth.

• Failure to coordinate civil rights and substantive programs.

• Undue emphasis on a passive role, such as reliance on receipt of complaints, in

carrying out civil rights compliance and enforcement responsibilities.

• Undue emphasis on voluntary compliance and failure to make sufficient use of available sanctions to enforce civil rights laws.

Failure to provide adequate coordination and direction to agencies having common civil rights responsibilities. • Failure to collect and utilize racial and ethnic data in planning and evaluating progress toward goals.

Some of these weaknesses may be the result of the trial-and-error efforts of agencies attempting in good faith to meet responsibilities in a relatively new area of concern. The Commission has made detailed findings and recommendations concerning each of the subject areas examined in its report, suggesting ways in which agencies can strengthen existing avenues of compliance and enforcement.

Many of these weaknesses, however, also reflect more deep-seated problems-problems of hostile bureaucracies that view civil rights as a threat to their prerogatives and programs, problems of inadequate or misordered priorities which cannot be resolved solely through modification of specific compliance and enforcement mechanisms. For example, the failure to make sufficient use of strong sanctions, such as fund termination and contract cancellation, is less a reflection of inadequate enforcement mechanisms than it is the triumph of program bureaucrats in the artificial conflict between the exercise of program responsibilities and civil rights responsibilities. Rather than combining civil rights and substantive programs in a joint effort to achieve social and economic justice, in most agencies the two have been separated and civil rights programs have operated in isolation from those that provide substantive benefits.

By the same token, the failure to provide sufficient resources for civil rights enforcement and the subordinate position in which civil rights officials are placed in agency hierarchies, undoubtedly are less a result of a lack of understanding of what is necessary for effective civil rights enforcement than a reflection of the deeper problem of misordered agency priorities in which civil rights is relegated to a position of secondary importance.

These problems suggest that more is needed than a strengthening and modification of compliance and enforcement mechanisms utilized by particular agencies. They suggest that the most serious flaw in the Federal civil rights enforcement effort has been the failure to provide overall direction and coordination-that the basic mechanisms that have been lacking have been those necessary to develop a cohesive, Governmentwide civil rights policy and to assure that this policy is faithfully carried out.

In fact, a total civil rights policy has not been developed, nor have overall national civil rights goals and priorities been established to govern the component parts of the Federal civil rights effort. Agencies have operated independently with little recognition or understanding of what the Government's total civil rights program is or the role they should play in carrying it out. For the most part, they have been only dimly aware of their responsibilities in their own areas of concern. No substantial attempt has yet been made to coordinate the various civil rights laws and policies into a total, coordinated Federal civil rights effort. The Commission also has addressed itself to this problem and has made recommendations to facilitate development of national civil rights goals and policies and to permit effective coordination of the entire civil rights program as well as its separate parts.

This report has dealt primarily with problems of structure and mechanism in the Government's efforts to enforce civil rights laws. The Commission recognizes, however, that achievement of civil rights goals and the full exercise of equal rights by minority group members will involve more than adjustments in civil rights enforcement machinery. It will require dedication and resolve on the part of Government officials and the American people alike. The Commission's recommendations in this report are addressed only to ways in which the mechanisms of civil rights enforcement can be strengthened, not to ways in which national will and resolution can be inspired.

In the Government, this is the responsibility of each Cabinet Secretary or agency head, who must take the steps necessary to assure that his subordinates honor and support the principle of equality. It also is the responsibility of