CAP Form 3-Community Action Basic Information (section I, Item 6).

CAP Form 87-Delegate Agency Basic Information (section II, Item 6).

OEO Form 303 (Test)-Applicant Agency Basic Information (section I, Item 6).

The forms referred to in § 1068.8-4(e) are available through normal OEO Supply channels.

OEO Distribution Center, 5458 Third Street NE., Washington, DC 20011.

APPENDIX A

PROCEDURES FOR OBTAINING EMPLOYER IDENTIFICATION NUMBER AND DEPOSITING AND REPORTING WITHHELD FEDERAL INCOME AND SOCIAL SECURITY TAXES

Employer identification number. Each employer shall obtain Form SS-4, "Application for Employer Identification Number," and Internal Revenue Service Circular E, "Employer's Tax Guide." The form and tax guide may be obtained from any office of the Internal Revenue Service or Social Security Administration. Instructions for completion are on the reverse side of Form SS-4. Upon completion, the forms must be filed with the District Director of Internal Revenue with whom Federal tax returns are filed. A copy of the form will be returned with the assigned "Employer Identification Number" recorded thereon. This identification number should be shown on all forms and attachments, and in all correspondence with the Internal Revenue Service and the Social Security Administration.

Payment of withheld income and social security taxes. In most cases, the employer is responsible not only for the employer's contribution of social security tax, but also for the employee tax and the income tax required to be withheld from the employee's wages. The amount of tax withheld by the employer becomes a special fund in trust for the United States. The employer is relieved of liability to any other person for such amount.

In general, the withheld income and social security taxes must be deposited with an authorized commercial bank depository or a Federal Reserve Bank with a Federal Tax Deposit Form 501. Deposits are required to be made as follows.

(a) Every employer who holds more than $100 in social security and withheld income taxes (reduced by any deposits for the quarter) must deposit these taxes on or before the last day of the month following the close of the quarter.

(b) Monthly deposits are required if the total of the social security and withheld income taxes is more than $100 for that month.

(c) Any employer who has withheld more than $2,500 of social security and withheld income taxes for any month of a calendar quarter must make semimonthly deposits of the taxes for the next quarter regardless of the amount.

Form 941 must be filed with the Internal Revenue Service Center for the IRS region in which the grantee or delegate agency is located as prescribed in Circular E. No more than one calendar quarter may be reported on one Form 941. Instructions for preparation of Form 941 are included on its reverse side. Preaddressed forms will be furnished for use by the grantee or delegate agency. Taxes not required to be deposited must be remitted with the return, or at the option of the employer, deposited on Form 501.

Penalties. Both criminal and civil penalties are provided for the willful failure to make returns (Form 941) and payments (Form 501) of tax, or for willfully filing false or fraudulent returns (Form 941).

A penalty is provided for failure, without reasonable cause, to make timely required deposits of taxes.

How to make deposits of taxes. Preinscribed Forms 501 will automatically be furnished the employer after he applies for an identification number.

The employer shall fill in a preinscribed Form 501, "Federal Tax Deposit," in accordance with the instructions printed on the reverse side of that form. Each Form 501, and a single remittance covering the amount of the taxes to be deposited, should be sent or taken to any commercial bank qualified as a depository for Federal taxes, or to a Federal Reserve Bank. The names of authorized commercial bank depositories may be ascertained at a local bank or Federal Reserve Bank. Checks or money orders covering deposits should be made payable to the bank to which the completed Form 501 is taken or sent.

Quarterly return of income tax withheld and social security taxes. Every grantee or delegate agency required to withhold Federal income and social security taxes from wages must file a quarterly return on Form 941, "Employer's Quarterly Federal Tax Return". The dates on which the return and tax payments are due, are as follows:

Records to be kept. Every employer subject to the employment taxes described in this attachment is required to keep all records pertinent to these taxes available for inspection by officers of the Internal Revenue Service if the need should arise. Such records should be kept for a period of at least 4 years after the date the related tax becomes due, or the date the tax is paid, whichever is later.

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

Subpart Travel Regulations for CAP Grantees and Delegate Agencies

1069.3-1 Applicability of this subpart. 1069.3-2 Policy.

1069.3-3 Accounting for travel funds. 1069.3-4 General travel regulations. 1069.3-5 Restrictions on charging out-ofthe-community travel costs to grant funds.

1069.3-6 Approval of travel outside the continental United States.

1069.3-7 Per diem rates for OEO Grantees and Delegate Agencies.

Subpart-Reporting Salaries of $10,000 or More 1069.5-1 Applicability of this subpart. 1069.5-2 Policy.

Subpart-Employee Participation in

Direct Action

AUTHORITY: The provisions of this Subpart issued under sec. 213, 81 Stat. 695; 42 U.S.C. 2796.

SOURCE: The provisions of this Subpart appear at 33 F.R. 16567, Nov. 14, 1968, unless otherwise noted.

§ 1069.1-1 Applicability of this subpart.

This subpart applies to all full-time and part-time employees and volunteers of grantees and delegate agencies while engaged in carrying out a program financially assisted under the provisions of Title II or III-B of the Economic Opportunity Act of 1964, as amended.

§ 1069.1-2 Definition of "direct action."

As used in this subpart, "direct action" means a group activity designed to communicate collective grievances and to

request decision or remedial action— e.g. picketing, parades or marches, sitins, rallies, or assemblies.

(NOTE: The above is a definition of all direct action, including forms of direct action which are legal and are permissible under this subpart.)

§ 1069.1-3 Policy.

(a) One of the premises of the Community Action Program is that poverty can be overcome as the poor gain the capability to play an effective role in the community processes which so vitally affect them. Maximum feasible participation of the poor is both a mandate of the Economic Opportunity Act and a focal point of OEO policy. The community action agency's duties of advocacy on behalf of the poor stem from those factors.

(b) In the course of carrying out their advocacy responsibilities, community action agencies may sometimes determine that the best available (or the only apparent) means for self-help involvement of the poor lead to such direct action activities as peaceful and lawful assembly to obtain redress of grievances from those believed capable of alleviating them.

(c) However, to recognize the legitimacy and importance of direct action is not to say that any and all direct action activities, under all circumstances, are either appropriate or desirable. Thus, employees and volunteers of community action agencies and other Title II and III-B grantees and delegate agencies are prohibited, in connection with the performance of their duties, from participating in, planning, or otherwise assisting in any unlawful picketing or protest or other form of direct action which is unlawful. Community action grantees and delegate agencies have the responsibility of preventing such illegal actions on the part of their staff. Toleration by agency officials of such behavior may be considered cause for suspending or terminating the grant.

(d) The rules set forth in this subpart are not intended to represent a redirection of the Community Action Program or a change in its mission. It is very difficult to establish general rules which clearly distinguish between legal and illegal forms of direct action or which determine the extent and limits of an individual's responsibility when participating in a group activity during which some illegal acts are committed. The rules of this subpart are a general guide, but

each agency will have to interpret the rules with good judgment and enforce them fairly and with full knowledge of the facts. Agencies should avoid an interpretation which in any way restricts constitutionally-protected activities or an individual's constitutional rights. Grantees and delegate agencies may consult the appropriate OEO Regional or Headquarters office for advice as to whether a certain activity would be permissible under this subpart. It is the primary responsibility of the local agency, however, to enforce this subpart in a manner which prevents illegal direct action but which also insures that community action, which encompasses a variety of legal direct action, is not stifled.

§ 1069.1-4 Permissible direct action.

(a) Lawful direct action is permissible, and often necessary, as an intermediate step in promoting institutional changes that can lead to permanent improvements in the community's efforts to eliminate the causes and consequences of poverty.

(b) Community action personnel must seek to channel feelings of frustration among the poor into constructive efforts that will improve their conditions without encouraging illegal or destructive actions. Community action agencies may play an effective role by bringing the needs, concerns and grievances of the poor to the attention of responsible public and private officials or groups.

(c) Such forms of direct action as a public rally to demonstrate for the adoption of a more stringent housing code, picketing in support of sewage facilities in a poor neighborhood, or publicizing a selective buying campaign against merchants who discriminate may sometimes be necessary. However, such direct action must meet the following tests of permissibility in order for a community action employee or volunteer to participate while in performance of his duties:

(1) It must not be forbidden under § 1069.1-5.

(2) It must be directly related to the program objectives of the grantee or delegate agency.

(3) It must have been planned as a result of a decision by a neighborhood or other representative group or by program beneficiaries, not solely by staff workers. Direct action activities are a legitimate part of community action only to extent that they present a genuine expression of the needs, desires, and

formulated demands of the neighborhood itself, determined in a democratic fashion after consideration of the ends to be achieved and of the advantages and disadvantages of the various alternative courses of action. In this process, program staff members can provide assistance and information but must not seek to impose their own views.

§ 1069.1-5

Unallowable direct action.

(a) No employee or volunteer engaged in carrying out the program of an agency financially assisted under Title II or IIIB shall, while in performance of his duties:

(1) Plan, participate in, or provide assistance to others in carrying out any form of direct action which is in violation of Federal, State, or local law or an outstanding injunction of any Federal, State, or local court.

(2) Plan, participate in, or provide assistance to others in carrying out any form of direct action which is designed with the intent to involve physical violence, destruction of property, or physical injury to persons. On the contrary, local agency staff should affirmatively do what they can to prevent such activities and to discourage any direct action that is violent in manner or purpose or is calculated to incite civil disorders.

(3) Commit any actions in connection with riots, political activity, or lobbying which are prohibited by Community Action Memo 66 or OEO Instructions 6907-1 or 6907-2.1

(b) Any employee who participated in a form of direct action which as planned and initially carried out is legal and permissible under § 1069.1-4, but during which some illegal acts are committed by individuals, is responsible only for his individual actions.

§ 1069.1-6 Distinction between staff actions and private actions of employ

ees.

(a) Whether in a particular instance an employee may be considered to be acting in his capacity as a private citizen, and therefore to be generally 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

1 Not filled with the Office of the Federal Register.

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.

(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.

tion 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-Limitations With Respect to Unlawful Demonstrations, Rioting and Civil Disturbances

AUTHORITY: The provisions of this Subpart issued under section 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 F.R. 17143, Nov. 19, 1968]

(a) Each grantee and delegate 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 demonstration, 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 1 Not filled with Office of Federal Register.

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 decisionmaking 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 F.R. 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 re

quired under CA Memorandum 23-A1 affording the employee a prompt and fair consideration of his grievance.

[33 F.R. 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 property 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 connection with riots and group disorders.

[33 F.R. 17143, Nov. 19, 1968]

Subpart Travel Regulations for CAP Grantees and Delegate Agencies AUTHORITY: The provisions of this Subpart issued under sec. 602, 78 Stat. 530; 42 U.S.C. 2942.

SOURCE: The provisions of this Subpart appear at 34 F.R. 11546, July 12, 1969, unless otherwise noted.

§ 1069.3-1 Applicability of this subpart.

This subpart applies to all grant programs financially assisted under Titles I, II, and III-B of the Economic Opportunity Act, as amended, if the assistance is administered by OEO.

§ 1069.3-2 Policy.

(a) All grantees and delegate agencies are required to follow the travel policies set forth in the Standardized Government Travel Regulations (SGTR). However, when a grantee or delegate agency has existing travel policies that are more restrictive than those in the SGTR, or when the grant contains more restrictive limitations, the more restrictive policies shall be followed.

(b) The governing or administering board of each grantee or delegate agency 1 Not filled with Office of Federal Register.