nances, 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 participation 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 program.

§ 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 personnel. Insofar as the individual employee is concerned, however, these restrictions deal only Iwith what he or she does as an employee.

(c) Prohibited political activity.1 The following restrictions apply to all employees, volunteers, and board members, except that restrictions (1) and (2) do not apply to employees of educational or research organizations. Employees, volunteers, and board members may not:

(1) Use their official position, authority, or influence with the agency for the purpose of interfering with or affecting the result of an election or a nomination for a party or public office.

(2) Directly or indirectly coerce, attempt to coerce, command or advise an employee or any other person who is subject to these restrictions to pay, lend, or contribute anything of value or to contribute personal services to a party, committee, organization, agency or person for political purposes.

(3) Use program funds for any political purposes or to influence any election for public or party office.

1 Restrictions (1) and (2) are imposed on employees of all grantees and delegate agencies except educational and research organizations by section 603(a) of the Community Services Act and chapter 15, title 5 of the U.S. Code. They are extended to volunteers and board members by CSA to implement the provisions of section 603(b) of the Community Services Act. Restrictions (3) through (6) implement sections 603(b) and 613 of the Community Services Act.

(4) Permit the use of equipment or premises purchased or leased with program funds for any political purpose or to influence outcome of any election for public or party office. This restriction applies only to facilities when under the control of the grantee or delegate agency. For example, if an agency leases a facility during certain hours only, the landlord may of course use the facility as he wishes during other hours.

(5) Discriminate, or threaten or promise discrimination, against or in favor of any employee or beneficiary of the program, or any potential employee or beneficiary, because of his political affiliations or beliefs, or require any applicant, employee or beneficiary to disclose his political affiliation.

(6) Offer any person employment, promotion or benefits under the program as a reward for the support or defeat of any political party or candidate for public or party office, or threaten or create disadvantage in employment or deprivation of benefits as a penalty for such support, except that such a person may be deprived of employment or subject to lesser penalties for engaging in activities which are forbidden by this subpart.

(d) Voter registration and transportation activity.2 (1) Employees and volunteers of all grantees and delegate agencies may not, while carrying out the program of their agencies, engage in voter registration activity or in transporting voters or prospective voters to the polls. (Board members are not included in this restriction.) This restriction applies to the use of program funds, agency facilities or equipment, as well as to the provision of services and the assignment of personnel. All persons may participate in voter registration during their off-duty hours, so long as they avoid identification of such off-duty activities with the CSAsupported program.

(2) A grantee or delegate agency may properly conduct a citizenship edu

2 The restrictions on voter registration and transportation activity are imposed pursuant to section 603(b) of the Community Services Act of 1974.

cation program which includes, as part of the curriculum, information about the mechanics and function of voter registration. Such a program may be valuable in educating the poor as to the legitimate and constructive roles they as citizens may play in local community life and in the American democratic process. However, the program must be informational and not designed to solicit registration. Furthermore, program funds may not be used in any way to aid registration campaigns. Door-to-door solicitations and mass mailing campaigns, for example, may not be undertaken or supported with program funds.

(e) Deduction of contributions to political activities from employees' paychecks. Experience has shown that the deduction of contributions for political purposes by grantees from employees' paychecks has often resulted in complaints that such contributions were not voluntary. Even when no overt coercion exists, employees may be under implicit pressure to allow such deductions if the activity in question is one with strong support from their superiors. Therefore, beginning with the effective date of this subpart, no contribution may be collected for any political activity through any deduction from the paycheck of an employee of any grantee, if that employee is paid with CSA funds. This prohibition does not extend to other methods of soliciting and collecting such contributions, provided they are lawful and not contrary to other provisions of this or any other CSA regulation.

(f) Candidates' meetings. Candidates' meetings, even if all rival candidates for one or more public offices appear, shall not be sponsored or conducted with program funds or facilities. This restriction on use of program funds does not, however, limit the rights of employees, volunteers, or board members to participate in candidates' meetings, subject to the restrictions in paragraph (c) of this section.

NOTE: For an interpretation document affecting paragraph (e), see 42 FR 57693, Nov. 4, 1977.

§ 1069.8-6 Additional restrictions on political activities of employees of CAAS, public grantees, and public delegate agencies.

(a) This section of this subpart contains additional restrictions applied by section 603(a) of the Community Services Act and by chapter 15, title 5 of the United States Code. These restrictions apply to all CAAs (whether public or private), public grantees, and public delegate agencies, except educational or research organizations. They do not apply to private grantees other than CAAS or to private delegate agencies.

(b) These additional restrictions apply, subject to the provisions of paragraph (b)(1) of this section, only to employees of the agencies covered by this section. Volunteers and board members are not subject to these restrictions.

(1) Employees to whom this section applies (1) Employees of all federally assisted programs covered. This section applies to all employees of CAAS and other public agencies who perform duties in connection with federally-assisted programs administered by that agency, even if the program is assisted by a Federal agency other than CSA. Employees performing duties in connection with programs financed by non-Federal sources are not covered.

(ii) Principal employment rule. This section applies to an employee who holds more than one job provided that his principal job-that is, the job on which he spends the majority of his work time and from which he derives the majority of his earned income-is covered by this section.

(iii) Employees on leave still covered. This section applies to employees even though they are on leave, with or without pay. The prohibitions are lifted only when the employment is terminated. However, if any employee is on terminal leave, he is not subject to the restrictions during the period for which he has received a lump-sum leave payment.

(iv) Only certain trainees covered. Trainees and enrollees shall be deemed employees for purposes of this section only if they are engaged in on-the-job training for a position as an employee of the CAA, public grantee, or public delegate agency.

(2) Prohibited political activity.1 An employee covered by this section is not permitted to be a candidate for public elective office, except that nonpartisan candidacies and candidacy for political party office are permitted, as set out in §1069.8-6(b)(3)(ii) of this subpart. Thus no employee covered by this section may run in a primary or general election for public office, except as provided below in §1069.8–6(b)(3)(ii) of this subpart. An employee planning to be a candidate for partisan public elective office should resign his or her position prior to announcement of his or her candidacy or commencement of substantial activities intended directly to promote said candidacy, whichever occurs first.

(3) Permitted activities while off-duty. (i) Most political activities are permitted to covered employees on their own time; however, they should be alert to avoid activities which may violate 5(c) of this subpart.

(ii) Permitted activities while offduty include, but are not limited to:

(A) Being a nonpartisan candidate, as defined in 5 U.S.C. 1503:

Being a candidate in any election if none of the candidates to be nominated or elected at such election as representing a party any of whose candidates for Presidential elector received votes in the last preceding election at which Presidential electors were selected.

(B) Being a candidate for political party office even where such office is attained through election in a partisan primary election.

(C) Soliciting or handling political contributions from other than employees covered by this section or other persons associated with, or receiving substantial benefits from CSA.

(D) Soliciting the sale of or selling political fund-raising tickets to other than employees covered by this section or other persons associated with or receiving substantial benefits from CSA.

(E) Organizing and/or serving as an officer of a political club or organization.

1 Further information on activities prohibited by chapter 15, title 5 of U.S. Code may be obtained from the Office of General Counsel, United States Civil Service Commission, Washington, DC 20415.

(F) Organizing and/or conducting a political meeting or rally.

(G) Managing or taking part in the management or conduct of a political campaign.

(H) Engaging in any legal activity at the polls in any election.

(I) Writing, publishing, distributing, or circulating political campaign literature or petitions, including nomination petitions.

[41 FR 15011, Apr. 9, 1976; 41 FR 18081, Apr. 30, 1976]

§ 1069.8-7 Additional precautions.

(a) As explained in section 6 of this subpart employees of all CAAS, other public grantees and public delegate agencies are prohibited from being candidates for public elective office in partisan elections, but are otherwise free to engage in political activities while off-duty. This does not prohibit employees of private grantees other than CAAS and private delegate agencies from running for office or engaging in any other partisan political activities while off-duty. However, all employees should conduct such activities so as to avoid identifying their agencies with political campaigns associated with electing candidates to public or party office. With the recent expansion of the permissible scope of these activities pursuant to the Federal Election Campaign Act Amendments of 1974 (Pub. L. 93-443), it is especially necessary for all employees to act scrupulously so as to maintain the separation between their private political activities and their actions on the job.

(b) Directors and deputy directors of grantees and delegate agencies and neighborhood and outreach workers have the most substantial contacts with the community and are likely to be regarded as spokesmen for their agencies. Hence they must be particularly careful not to involve or identify the CSA-assisted program with the campaign of any individual for public or party office.

(c) All grantee and delegate agencies must inform their employees about these precautions.

1069.8-8 Enforcement.

(a) Reporting possible violations. (1) Violations of title 5, chapter 15, U.S.

Code. When a grantee or delegate agency or individual has reason to believe that an employee has engaged in political activity prohibited by the statutory provisions of chapter 15, title 5 of the U.S. Code (§ 1069.8-6(b)(1) (i) and (ii) of this subpart), the agency or individual shall report the matter to the United States Civil Service Commission, Office of the General Counsel, Washington, DC 20415.

(2) Other violations. Information concerning possible violations of other provisions of this subpart shall be reported either in writing or orally by the grantee or delegate agency or any individual to the CSA Office of Inspection in Washington, DC

(3) If the grantee, delegate agency or individual is uncertain as to whether an activity violates the statutory provisions of chapter 15, title 5 of the U.S. Code administered by the Civil Service Commission, the information may be submitted to the CSA Office of the General Counsel in Washington, D.C. The CSA General Counsel will refer information concerning possible violations of chapter 15, title 5 of the U.S. Code to the Civil Service Commission for consideration where appropriate.

(4) A grantee or delegate agency may in addition make such preliminary inquiry as may be necessary to verify the facts concerning the reported violation and initiate appropriate action to prevent a continuation or recurrence of the prohibited activity.

(b) CSA action to prevent continuationer repetition of violations. (1) When CSA receives information concerning possible violation of the restrictions of this subpart it may

(i) Conduct an investigation to ascertain the facts and, in appropriate cases, undertake informal discussions with the grantee or delegate agency concerned in order to agree upon means for preventing continuation or repetition of the violation, and

(ii) Refer the matter, with/or without investigation, to the Office of the General Counsel of the Civil Service Commission for consideration.

(2) If CSA concludes, after discussions with the local agency concerned, that appropriate action will not be taken by the grantee, CSA may then issue an order to the grantee directing

it to take such action as may be necessary to prevent continuation or repetition of the violation.

(3) If the grantee fails to comply with such an order issued by CSA, CSA may, on an emergency basis, summarily suspend assistance in whole or in part, or it may proceed to suspend or terminate assistance pursuant to part 1067 of chapter X, title 45 of the Code of Federal Regulations, (OEO Instruction 6730-2). A grantee whose financial assistance has been summarily suspended under this provision may at any time request informal discussions with CSA officials and present evidence that no further violation is occurring and may also request CSA to hold a full hearing in accordance with the regulations cited above.

(c) Enforcement action by the Civil Service Commission. (1) CSA may refer any specific information of apparent violation of the non-Hatch Act restrictions set forth in this subpart to the General Counsel of the Civil Service Commission for investigation and determination. The General Counsel of the Commission may conduct an investigation and inform CSA and the grantee or delegate agency involved of his findings of fact and the corrective action recommended. If the corrective action recommended is directed against an employee of a grantee or delegate agency, the General Counsel of the Commission shall also inform the employee involved of his findings of fact and recommendation. In formulating his findings of fact and the corrective action recommended, the General Counsel of the Commission may request information from and solicit the views of CSA.

(2) Within fifteen days after receipt of the report of the General Counsel of the Commission, the grantee or delegate agency shall either comply fully with the Commission's recommendations or request the Commission to hold a hearing. If the Commission recommends the dismissal or suspension of an employee, he may also request a hearing. The Commission shall give notice of the time and place of the hearing at which the agency or the affected employee is entitled to appear in person, or by or with counsel. The agency or employee and the counsel for the

Commission are responsible for securing the attendance of their respective witnesses. There is no power of subpoena in these cases.

(3) The hearing shall be before an examiner designated by the Commission. Testimony shall be under oath or affirmation and the parties may introduce affidavits and other documentary evidence. Unless the parties agree to a summary of the testimony, the hearing will be reported stenographically. The hearing examiner shall report his findings of facts and recommendations of sanctions to the Director of CSA.

(4) The Director of CSA may reject, modify or affirm the recommendations of the hearing examiner. If he accepts any part of the recommendations, he shall issue an order to the agency directing it to comply with those sanctions he has accepted. If the local agency refuses to comply within five days after receiving this order, the Director may suspend or terminate assistance to the agency pursuant to part 1067 of chapter X, title 45 of the Code of Federal Regulations. However, if the Director of CSA affirms a recommendation of the hearing examiner that assistance to a local agency be suspended or terminated, CSA shall not hold an additional hearing. In such instances, the hearing held before the examiner designated by the Civil Service Commission shall be regarded as satisfying the requirements of part 1067 of chapter X, title 45 of the Code of Federal Regulations.

(5) In any hearing held by CSA pursuant to part 1067, an issue of fact previously determined by a hearing examiner designated by the Commission shall be deemed conclusively determined and shall not be relitigated.

(6) The sanctions which the General Counsel of the Commission or a Commission-designated hearing examiner may recommend include, but are not limited to, the following:

(i) Full or partial termination or suspension of assistance.

(ii) Changes in the administration of the grantee's or delegate agency's program or activities.

(iii) An order to an agency directing the dismissal, suspension, transfer or reprimand of an employee or other per