[Code of Federal Regulations]

[Title 5, Volume 2]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 5CFR734.503]



[Page 52-53]

 

                    TITLE 5--ADMINISTRATIVE PERSONNEL

 

          CHAPTER I--OFFICE OF PERSONNEL MANAGEMENT (CONTINUED)

 

PART 734_POLITICAL ACTIVITIES OF FEDERAL EMPLOYEES--Table of Contents

 

  Subpart E_Special Provisions for Certain Presidential Appointees and 

 Employees Paid from the Appropriation for the Executive Office of the 

                                President

 

Sec. 734.503  Allocation and reimbursement of costs associated with 

political activities.



    (a) The costs associated with the political activities described in 

Sec. 733.502(c) of this chapter may not be paid for by money derived 

from the Treasury of the United States. Costs associated with a 

political activity are deemed not to be paid for by money derived from 

the Treasury of the United States if the Treasury is reimbursed for the 

costs within a reasonable period of time.

    (b) For the purposes of this section, costs associated with a 

political activity do not include any costs that the Government would 

have or have incurred regardless of whether the activity was political. 

Examples of such costs are:

    (1) The compensation of the employee described in Sec. 734.502(a);

    (2) The value of any office or other real property owned or leased 

by the Government;

    (3) The compensation and expenses of any Government employee that is 

required in the performance of his or her duties to accompany or assist 

the person engaging in the political activity; and

    (4) The cost of special security arrangements for the person 

engaging in the political activity, including special transportation 

vehicles or methods.

    (c)(1) An employee covered under this subpart must apportion the 

costs of mixed travel based on the time spent on political activities 

and the time spent performing official duties. Prorating the cost of 

travel involves determining the ``total activity time'' which is the 

amount of time actually spent by the employee in meetings, receptions, 

rallies, and similar activities. Time spent in actual travel, private 

study, or rest and recreation is not included in the computation of the 

``total activity time''. The proration of the cost then is determined 

based on how the ``total activity time'' was spent. The formula is as 

follows:



Time spent in official meetings, receptions, etc. + Time spent in 

    political meetings, receptions, rallies = Total activity time



Time spent in official activity / Total activity time = Percentage of 

    trip that is official

Time spent in political activity / Total activity time = Percentage of 

    trip that is political



The percentage figure that represents the political portion of the trip 

is then multiplied by the amount that would be reimbursed to the 

Government if all of the travel was political. The product of that 

calculation represents the amount to be paid by the political entity or 

organization.



    (2) The allocation method must be applied to all of the relevant 

costs of mixed travel.

    (3) Expenses that are associated specifically with a political 

activity and not with any official activity must be treated as 

political, and expenses associated specifically with an official 

activity and not with any political activity must be treated as 

official.

    (4) In allocating the costs of travel other than air travel, the 

allocation formula should be applied to any Government maximum for that 

type of expenditure.

    (5) The determination of the proper amount of allocation must be 

based on the facts and circumstances involved.

    (6) In the event that a minor, clearly incidental percentage of the 

activity of a mixed trip is devoted to either official or political 

activity, e.g. less than 3%, the entire trip should be treated as if it 

was wholly of the type represented by the substantial figure. The 

balance should be treated as de minimis and



[[Page 53]]



need not be reimbursed as political or charged as official.

    (d) For any cost of a political activity of an employee that is 

required to be reported to the Federal Election Commission under the 

Federal Election Campaign Act (FECA) or the Presidential Election 

Campaign Fund Act (PECFA), the employee shall use the same method of 

allocation as used under the FECA or PECFA and regulations thereunder in 

lieu of the allocation method in paragraph (c) of this section.



    Example 1: The Secretary, an employee described by section 

7324(b)(2) of title 5 of the United States Code, holds a catered 

political activity (other than a fundraiser) in her office. Her security 

detail attends the reception as part of their duty to provide security 

for her. The Secretary will not be in violation of the Hatch Act Reform 

Amendments if the costs of her office, her compensation, and her 

security detail are not reimbursed to the Treasury. A violation of the 

Hatch Act Amendments occurs if Government funds, including reception or 

discretionary funds, are used to cater the political activity, unless 

the Treasury is reimbursed for the cost of the catering within a 

reasonable time.

    Example 2: There should be no allocation between official and 

political funds for a sound system rented for a single event.

    Example 3: If on a mixed trip a Government employee is only entitled 

to $26 per diem for food on a wholly official trip and the trip is 50% 

political and 50% official, the Government share would be 50% of $26, 

not 50% of the actual amount spent.

    Example 4: The President is transported by special motorcade to and 

from the site of the political event. The expense of the motorcade is 

for special security arrangements. Thus, it would not be a violation of 

the Hatch Act Reform Amendments if the costs of the security 

arrangements, including the cost of the motorcade, are not reimbursed to 

the Treasury.