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NOTICE

Employees of State or local agencies

occupying positions subject to the restrictions of the Hatch Act should

be informed as to permissible political activities as well as those prohibited by the Act.

THE LAW "No officer or employer of any State or local agency whose principal employment is in connection with any activity which is financed in whole or in part by loans or grants made by the United States or by any Federal agency shall (1) use his official authority or influence for the purpose of interfering with an election or a nomination for office, or affecting the result thereof, or (2) directly or indirectly coerce, attempt to coerce, command, or advise any other such officer or employee to pay, lend, or contribute any part of his salary or compensation or anything else of value to any party, committee, organization, agency, or person for political purposes. No such officer or employee shall take any active part in

political management or political campaigns All such persons shall retain the right to vote as they may choose and to express their opinions co all political subjects and candidates. For the purposes of the second sentrace of this subsection, the term "other or employee shall not be construed to include (1) the GovernE or the Lieutenant Governor of any State or any person who is authorized by law to act as Governor, or the mayor of an city, (2) duly elected heads of executive departments of any State of municipal ts who are not classified under a State or municipal merit or civil service system. (5) officers hulding elective offer · (Section 12(a), Act of August 2, 1949, as amended)

PERMITTED ACTIVITIES

REGISTRATION. It is not only permissible but an obligation on all citizens to register and vote.

VOTING. The language of the law specifically provides that all persons subject to the Act have a right to vote as they choose.

EXPRESSION OF OPINIONS. All persons subject to the law have a right to express their opinions on all political subjects and candidates, but they may not take an active part in political management or in political campaigns. ATTENDANCE AT POLITICAL RALLIES, CONVENTIONS, ETC. Employees subject to the Act may attend political rallies and conventions to which the general public is admitted.

NOMINATING PETITIONS. Employees subject to the Act are permitted to sign nominating petitions in support of individuals whom they wish to see become candidates for office.

CONTRIBUTIONS. It is lawful for employees subject to the Act to make voluntary contributions to regularly constituted political organizations. POLITICAL PICTURES. It is lawful for employees subject to the Act to display political pictures in their homes if they so desire.

BADGES, BUTTONS, AND STICKERS, It is not unlawful for employees subject to the Act to wear political badges or buttons or display political stickers on their private automobiles,

CONSTITUTIONAL AMENDMENTS, REFERENDUMS, ETC. Section 18 of the Act (5 U.S.C., 118n) states an exception relating to elections not specifically identified with National or State issues or political parties. It reads as follows:

Nothing in the second sentence of section 9(a) or in the second sentence of section 12(a) of this Act shall be construed to prevent or prohibit any person subject to the provisions of this Act from engaging in any political activity (1) in connection with any election and the preceding campaign if none of the candidates is to be nominated or elessed as such election as representing a party any of whose candidates for presi dential elector received votes in the last preceding election at which presidential electors were selected, or (2) in connection with aby question which is not specifically-identiped with any National or State political parts. For the purposes of this section, questions relating to constitutional amendments, referendums, approval of municipal ordinances, and others of a similar character, shall not be deemed to be specifically identified with any National or State political party.

PROHIBITED ACTIVITIES

Serving on or for any political committee, party, or other similar organization, or serving as a delegate or alternate to a caucus or party convention. Soliciting or handling political contributions.

Soliciting sale of or selling political party dinner tickers.

Serving as officer of a political club, as member or officer of any of its committees, addressing such a club on any partisan political matter, or being active in organizing it.

Serving in connection with preparation for, organizing or conducting a politi cal meeting or rally, addressing such a meeting on any partisan politica! matter, or taking any other active part therein.

Engaging in activity at the polls (at primary or regular elections), such as soliciting votes, assisting voters to mark ballots, or transporting or helping to get out the voters on election days.

Acting as recorder, checker, watcher, or challenger of any party or faction Serving in any position of election officer in which partisanship or partisan political management may be shown.

Writing for publication or publishing any letter or article, signed or unsigned, soliciting votes in favor of or against any political party or candidate. Becoming a candidate for nomination or election to office, Federal, State, county, or municipal, which is to be filled in an election in which party cande dates are involved, or soliciting others to become candidates for nomination or election to such offices.

Distributing campaign literature or material.

Initiating or circulating partisan political nominating petitions.

Engaging in political caucuses, or canvassing a district or soliciting political support for a party, faction, ut candidate.

Note: ACTIVITIES PERMITTED BY THE HATCH ACT MAY BE RESTRICTED OR PROHIBITED BY STATE OR LOCAL LAW OR REGULATION.

REMOVAL MAY BE RECOMMENDED FOR EMPLOYEES VIOLATING THE ACT

For Additional Information Write to: U.S. CIVIL SERVICE COMMISSION, Washington D.C. 20415

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INQUIRIES ON HATCH ACT PROVISIONS

Senator MAGNUSON. Members of Congress get constant inquiries and letters, all sorts of communications on this thing and I hope that this is clarified, because the prior Commissioners warned you on what you could not do. That is what it did, it told them what they could not do and then they would interpret that and greatly enlarge upon what they could not do.

Mr. MACY. That is right.

Senator MAGNUSON. And rather than allowing them to do certain things, they became more restrictive in their interpretation on the don'ts.

Mr. MACY. That is exactly right.

Senator MAGNUSON. And we thought that it would be better to have the do's, and then if they want to interpret those a little more, then it would level off.

Senator ALLOTT. Off the record.

(Discussion off the record.)

Mr. MACY. I think that you will find that it is a pretty well balanced poster. It shows that the prohibited activities are so much and the permitted activities are so much.

Senator MAGNUSON. Yes. They used to just want to know about the don'ts, and they never had any interest in the do's.

Senator SALTONSTALL. Off the record.

(Discussion off the record.)

Senator MAGNUSON, All right, thank you very much. It is understood for the record that this is the formal hearing and it may be that you may want to have another session with us after the House gets through with the bill, so we will all know where we all are.

Mr. MACY. Yes, sir. Thank you, Mr. Chairman.

(Whereupon, at 10 a.m., Thursday, April 16, 1964, the committee was adjourned, to reconvene subject to call of the Chair.)

INDEPENDENT OFFICES APPROPRIATIONS FOR 1965

FRIDAY, APRIL 17, 1964

U.S. SENATE,

SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS,

Washington, D.C.

The subcommittee met at 8:30 a.m., pursuant to recess in room S-128, U.S. Capitol Building, Hon. Warren G. Magnuson (chairman) presiding.

Present: Senators Magnuson, Allott, and Young.

FEDERAL HOME LOAN BANK BOARD

STATEMENT OF JOSEPH P. MCMURRAY, CHAIRMAN OF THE BOARD; ACCOMPANIED BY JOHN DE LAITTRE, MEMBER OF THE BOARD; KENNETH E. SCOTT, GENERAL COUNSEL; NATHANIEL L. ARMISTEAD, DIRECTOR, OFFICE OF EXAMINATIONS AND SUPERVISION; LAWRENCE M. WALTERS, DIRECTOR, DIVISION OF EXAMINATIONS; ALBERT V. AMMANN, ASSOCIATE DIRECTOR, DIVISION OF SUPERVISION; AND THADDEUS CORCORAN, BUDGET OFFICER

APPROPRIATIONS, FISCAL YEAR 1964, ESTIMATES, FISCAL YEAR 1965

Senator MAGNUSON. All right, the committee will come to order. We have this morning the Federal Home Loan Bank Board, and the administrative expenses in 1964 were $2,430,000 and the budget for 1965 is $3,890,000 or a plus of $1,460,000 with a revised estimate of minus $65,000, and then the nonadministrative expenses were $12.8 million, and the estimates for 1965, fiscal 1965 were $13,443,000, which is a plus of $643,000 with an adjusted revised estimate of minus $35,000. A comparative summary of their 1963, 1964, and 1965 budgets will be placed in the record at this point.

The Chairman, Mr. McMurray, is here, for the record, and his associates, and they have a short statement.

We will be glad to hear you, from you at this time.

191

31-706-64-pt. 1- -13

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