exempt from the limitations of this subpart, depends less on the question of whether the person is formally on duty (i.e., whether the unlawful direct action takes place during his regular working hours), than on the question of the employee's relationship to the group which is engaged in the activity. Where this relationship is such that the participants or the public might reasonably conclude that he is acting as an employee (for example, because as part of his job he has been working with the participating group, or in the neighborhood with which they are identified), he should consider himself subject to the restrictions on involvement in illegal direct action; and any doubt should be resolved in this direction. This is so regardless of the time at which the event occurs, or whether the employee is, as a formal matter, on or off duty. It follows that no employee may avoid the limitations by simply taking leave time, or relying upon the fact that a given activity occurs in the evening or on a weekend.

(b) Although volunteers are not included in the discussion in paragraph (a) of this section, they must take reasonable precautions against identifying their off-duty activities with a grantee or delegate agency.

§ 1069.1-7 Responsibilities of community action agencies.

(a) Section 213(a) of the Economic Opportunity Act requires each community action agency to adopt rules for itself and its delegate agencies which define staff responsibilities in regard to advocacy on behalf of the poor in such a way as to prohibit participation in unlawful direct action. This requirement will be considered to be met by the agency's adoption of the provisions of this subpart and by making these rules available to all employees in writing.

(b) If, however, the agency wishes to adopt its own rules it may do so, providing that the provisions of this subpart are included in those rules and that none of these provisions are contradicted by the agency's additional rules.

(c) In either case, the agency must specifically inform employees and volunteers of the provisions contained in

such rules and of the possible sanctions for noncompliance.

81069.1-8 Enforcement.

(a) The initial and primary responsibility for enforcement of this subpart in connection with projects assisted under Title II and III-B is with the local grantees and delegate agencies responsible for those projects. Each such agency will be expected to investigate and to take appropriate action in response to any specific information which comes to its attention concerning possible violation of the requirements of this subpart. Any personnel actions against employees resulting from such investigation are subject to the grievance procedures required under CA Memorandum 23-A1 affording the employee a prompt and fair consideration of his grievance.

(b) Each grantee or delegate agency shall promptly inform the OEO Regional or appropriate grant approval office of any allegation charging a person within its jurisdiction with violating the provisions of this subpart indicating the action that the agency is taking regarding the matter.

Subpart 1069.2—Limitations With Re

spect to Unlawful Demonstrations, Rioting and Civil Disturbances (CSA Instruction 6907-2) AUTHORITY: Sec. 602, 78 Stat. 530; 42 U.S.C. 2942.

§ 1069.2-1 Applicability of this subpart.

This subpart applies to all full-time and part-time employees and volunteers engaged in carrying out the program of any organization financially assisted under the Economic Opportunity Act of 1964, as amended.

[33 FR 17143, Nov. 19, 1968]

§ 1069.2-2 Policy.

(a) Each delegate grantee and agency is required to take appropriate steps to insure that financial assistance under the Economic Opportunity Act is not employed to aid or assist in the conduct of any unlawful demon

'Not filed with Office of Federal Register.

stration, rioting, or civil disturbance. In particular, each agency must take such action as is appropriate in the light of local circumstances to insure that persons employed in connection with assisted programs, as well as volunteers, do not use their position in the program to plan, initiate, participate in, or otherwise aid or assist in the conduct of any unlawful demonstration, rioting, or civil disturbance. Toleration on the part of agency officials of such behavior by their employees may be considered cause for suspending or terminating the grant.

(b) Rioting and similar violence are wholly inconsistent with the goals of community action. Not only do they undercut the effort to bring the poor into the mainstream of community life, but the harm they do falls most heavily on the poor.

(c) Community action agencies and other CAP grantees have additional responsibilities, however, beyond insuring that no one uses the program to foster violence. Because of its important role as a link between the poor and the public and private agencies which can help solve some of the problems of poverty, a community action agency or other CAP grantee has an important role (1) in developing grievance-response mechanisms between residents of poor neighborhoods and local government agencies and other institutions, and (2) if violence should occur or be threatened, in opening channels of communication between the disaffected elements and the community leadership. The report of the National Advisory Commission on Civil Disorders cited several examples of constructive counterriot measures undertaken by community action agencies. In addition the Commission highlighted the significance of efforts to involve the poor through “maximum feasible participation" in program development and administration and in community decision-making as effective measures to counter the causes and symptoms of riots.

(d) The preceding subpart "Employee Participation in Direct Action," of this part discusses lawful demonstrations and other types of direct action in which CAP grantees may engage. [33 FR 17143, Nov. 19, 1968]

The initial and primary responsibility for enforcement of this subpart rests with local grantees and delegate agencies. Such agencies shall

(a) Take all feasible measures to prevent the employment in their programs of persons who are likely to use their positions as agency employees to promote violence or unlawful disorder. This shall not be construed to prohibit automatically the hiring of persons with prior criminal records. Policies governing the hiring and rehabilitation of persons with prior conviction records are found in Community Action Memo 23-A.1

(b) Terminate any employee, or discontinue using the services of any volunteer, who the agency determines, on the basis of substantial and material evidence, has been using his position with the agency to promote violence or disorder. Such personnel actions are subject to the grievance procedures required under CA Memorandum 23-A1 affording the employee a prompt and fair consideration of his grievance. [33 FR 17143, Nov. 19, 1968]

§ 1069.2-4 Reminder concerning antiriot provision in the Economic Opportunity Amendments of 1966.

Section 1201 of the Economic Opportunity Amendments of 1966 provides that no funds appropriated for the fiscal year 1967 could be used “to provide payments, assistance, or services, in any form, with respect to any individual who is convicted, in any Federal, State, or local court of competent jurisdiction, of inciting, promoting, or carrying on a riot, or any group activity resulting in material damage to properly or injury to persons, found to be in violation of Federal, State, or local law designed to protect persons or property in the community concerned." This law continues to apply to the use of all funds granted during the fiscal year 1967 (July 1, 1966, to June 30, 1967). Note that it bars benefits to, as well as employment of, persons convicted of certain crimes in

'Not filed with Office of Federal Register.

connection with riots and group disorders.

[33 FR 17143, Nov. 19, 1968]

Subpart 1069.5—[Reserved]

Subpart 1069.6-Policy Guidance on Lobbying Activities (CSA Instruction 6907-01)

AUTHORITY: Sec. 602(n), 78 Stat. 530; 42 U.S.C. 2942.

SOURCE: 38 FR 6896, Mar. 14, 1973. Redesignated at 38 FR 14172, May 30, 1973, unless otherwise noted.

§ 1069.6-1 Applicability of this subject.

This subpart applies to all grants made under the authority of titles II, III-B and VII of the Economic Opportunity Act of 1964, as amended, if the assistance is administered by OEO.

§ 1069.6-2 Purpose of this subpart.

Many of the problems which cause or aggravate poverty are bound up with harsh or outmoded laws. Others can be most effectively attacked by the passage of new legislation. Community action is thus inevitably concerned with the shape of the laws which affect the poor. On the other hand, there are necessarily very sharp limitations on the use of project funds by grantee and delegate agencies to influence the passage or defeat of legislation. Moreover, there are certain kinds of lobbying which interfere with the work of legislatures and thus impair the basic processes of democratic self-government. The primary purpose of this support is to identify essential restrictions on lobbying activities by grantees and delegate agencies that receive OEO funds under titles II, III-B, and VII of the Economic Opportunity Act. The subpart also serves as a reminder that under Federal (and many State) tax laws, private nonprofit agencies may endanger their capacity to receive tax-deductible contributions if they engage in substantial lobbying activities.

(a) Restrictions on lobbying with project funds. Project funds may not be used to support any of the following:

(1) Any activity which is planned and carried out in such a manner as to disrupt the orderly conduct of business by Congress or any other legislative body. This includes, but is not limited to, any disruptive action carried on in the chambers of Congress or any other legislative body or in any capitol or legislative office building.

(2) Any demonstration, rally, picketing, or other form of direct action aimed at the family or home of a member of a legislative body for the purpose of influencing his actions as a member of that body.

(3) Any campaign of advertising carried on through commercial media for the purpose of influencing the passage or defeat of legislation.

(4) Any campaign of letter writing, of other mass communications, or of mass visits to individual members of Congress or State legislatures for the purpose of influencing the passage or defeat of legislation. This restriction does not prohibit purely informational and educational activities involving target areas and groups.

(5) Project funds may not be used to pay dues or to support any organization or group which devotes or contributes any of its resources from whatever source to any activity, the purpose of which is to influence legislation or to politicize. For purposes of the above, the amount of resources devoted to such activity is immaterial. These restrictions on use of project funds apply to Federal and matching non-Federal shares of approved program budgets under Titles II, III-B and VII of the Economic Opportunity Act and include the use of equipment, material, and facilities and employee time and services which are either paid for with project funds or contributed to project funds. These restrictions are not intended to limit the rights of individuals to express their personal views on public issues so long as they do so in their capacity as private citizens rather than employees. Nor are they intended to limit the freedom of local agencies to express their views on legislation so long as project funds are not used in violation of the foregoing limitations.

§ 1069.6-3

(b) Reminder concerning tax implications of lobbying. Under Federal income, estate, and gift tax laws, gifts made to private nonprofit organizations which devote a substantial part of their activities to carrying on propaganda or other activities aimed at influencing legislation, are not considered tax deductible “charitable contributions." This applies not only to Federal and State legislation but also to the legislative actions of county and city councils and similar local bodies. Many State tax laws contain similar provisions.

(1) In view of these tax laws, private nonprofit grantee and delegate agencies should bear in mind that if they devote any substantial part of their activities to lobbying efforts, they may be endangering their ability to receive tax-deductible contributions. Such contributions may represent an important means of providing the non-Federal share required in programs assisted under sections 221 and 222(a) of the Economic Opportunity Act. They also enable many local agencies to carry out other programs of assistance to the poor, apart from the Act.

(2) There are no published rules defining what is meant under the Federal tax laws by the term "substantial" lobbying activities. In cases of doubt local agencies should seek private tax counsel or contact the nearest field offices of the Internal Revenue Service and State tax authorities.

§ 1069.8-1 Applicability.

(a) This subpart is applicable to all grantees and delegate agencies funded under Titles II, III-B, and VII of the Community Services Act of 1974 when the assistance is administered by the Community Services Administration.

(b) NOTE: All grantees and delegate agencies are subject to §§ 1069.8-3, 1069.8-5, 1069.8-7 and 1069.8-8. Community Action Agencies (CAAs), whether public or private, are further subject to § 1069.8-4 and 1069.8-6. All other public grantees and all public delegate agencies are also further subject to § 1069.8-6. Furthermore, some restrictions apply only to employees of affected agencies, while others apply to board members and volunteers as well. The applicability of the different sections of this subpart to the various classes of agencies and persons is presented graphically in Appendix B to this subpart, as well as summarized at the beginning of each section.

(a) Public Agency. The executive or legislative branch of a State, municipality, or other political subdivision of a State, or an agency or department thereof.

(b) Delegate agency. An agency to which a grantee delegates the performance of an entire program account of a grant or a substantial part of a single program account. Venture subsidiaries of community development corporations (CDCs) or agencies receiving only Investment Capital funds (cost category 2.5) from a CDC are not considered delegate agencies.

(c) Educational or research organization. A private or public educational institution, establishment, agency, or system supported in whole or in part by State or local public funds or by a recognized religious, philanthropic, or cultural organization. CAAS are not considered educational or research organizations.

(d) Employee. A paid employee, including (unless otherwise specified) trainees and enrollees.

(e) Board member. A member of a governing board, administering board, or advisory board or committee.

81069.8-3 Policy.

(a) Grantee and delegate agencies must administer CSA-assisted programs in a politically nonpartisan manner, and must avoid actions which can reasonably be construed as intended to favor one political party over another or to influence the outcome of any election for public or party office. The use of program funds, the provision of services and the assignment of personnel must not result in the identification of the program with any partisan political activity or with any nonpartisan political activity which is designed to further the election or defeat of a candidate for public or party office. In addition, grantee and delegate agencies may not use program funds, the provision of services, or the assignment of personnel in connection with voter registration activity or with transporting voters or potential voters to the polls.

(b) Anti-poverty programs are, in many communities, live political issues and will often include activities which may become the subject of political controversy. Grantee and delegate agencies may, of course, undertake activities dealing with issues related to their basic program responsibilities. In carrying out their basic mission and goals grantees and delegate agencies may actively engage in campaigns connected with constitutional amendments, referenda, municipal ordinances, law reform and lawful attempts to influence government officials to respond to the grievances of the poor. Grantee and delegate agencies need not avoid such activities merely because partisan officials or candidates for public office may take or have taken positions with respect to the issue. Agency officials acting in their official capacities must, however, deal with questions which have become a subject of political controversy on their merits and not in terms of whether they are supported or opposed by a particular party or candidate.

(c) Except as provided in this subpart, employees of grantees and delegate agencies are free to engage in various kinds of political activities during their off-duty hours and in their private capacities. A broad range of par

ticipation in elections is permitted. All employees are expected, however, to avoid (to the greatest extent possible) any identification of their off-duty activities with the CSA-supported pro

gram.

§ 1069.8-4 Requirement that community action agencies adopt rules.

(a) Section 213(a) of the Community Services Act requires each community action agency (CAA) to adopt rules designed to assure that its programs and programs of its delegate agencies are conducted in a manner which is free from any taint of partisan political bias. This requirement will be considered to be met by the agency's adoption of the provisions of this subpart and by making these rules available to all employees in writing.

(b) If, however, the agency wishes to adopt its own rules it may do so, providing that the provisions of this subpart are included in those rules and that none of these provisions are contradicted by the agency's additional rules.

§ 1069.8-5 Restrictions on political activities of all CSA grantees and delegate agencies.

(a) This section of this subpart contains categories of restrictions applied by the Community Services Act and by Chapter 15, Title 5 of the United States Code (formerly known as the Hatch Act). These restrictions apply to all grantees and all delegate agencies (except educational and research organizations; see § 1069.8-5(c)), whether they are public or private, or whether they are CAAS or other agencies.

(b) These restrictions apply to the use of program funds, the provision of services, and the assignment of agency personnel in a manner which identifies the program with partisan political activity, nonpartisan activity associated with a candidate or faction in an election for public office, voter registration activity, and the transportation of voters to the polls. These restrictions are, in a broad sense, designed to prohibit the use of CSA funds for certain purposes. They apply to all grantee and delegate agency per