[Code of Federal Regulations]
[Title 5, Volume 2]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR950.603]

[Page 624-625]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
          CHAPTER I--OFFICE OF PERSONNEL MANAGEMENT (CONTINUED)
 
PART 950_SOLICITATION OF FEDERAL CIVILIAN AND UNIFORMED SERVICE PERSONNEL FOR 
 
                   Subpart F_Miscellaneous Provisions
 
Sec.  950.603  Sanctions and penalties.

    (a)(1) The Director may impose sanctions or penalties on a 
federation, charitable organization or PCFO for violating these 
regulations, other applicable provisions of law, or any directive or 
instruction from the Director. The Director will determine the 
appropriate sanction and/or penalty, up to and including expulsion from 
the CFC. In determining the appropriate sanction and/or penalty, the 
Director will consider previous violations, harm to Federal employee 
confidence in the CFC, and any other relevant factors. The Director may 
bar a federation or charitable organization from serving as PCFO, for a 
period not to exceed one campaign period, if it is determined that that 
the federation or charitable organization has violated any provisions of 
these regulations. A federation, charitable organization or PCFO will be 
notified in writing of the Director's intent to sanction and/or penalize 
and will have 10 business days from the date of receipt of the notice to 
submit a written response. The Director's final decision will be 
communicated in writing to the federation, charitable organization, or 
PCFO, with a copy to the appropriate LFCC.
    (2) The Director may withdraw federation status with respect to a 
national, international or local federation that makes a false 
certification or

[[Page 625]]

fails to comply with any directive of the Director, or to respond in a 
timely fashion to a request by the Director or LFCC for information or 
cooperation, including with respect to an investigation or in the 
settlement of disbursements. The LFCC may recommend the withdrawal of 
federation status with respect to a local federation. As stated in 
Sec. Sec.  950.301(d) and 950.303(d), failure to meet minimum federation 
eligibility requirements shall not be deemed to be a withdrawal of 
federation status subject to a hearing on the record. Eligibility 
decisions shall follow the procedures in Sec. Sec.  950.301(f) and 
950.303(f). A federation will be notified in writing of the Director's 
intent to withdraw federation status for a period of up to one campaign 
period and will have 10 business days from the date of receipt of the 
notice to submit a written response. On receipt of the response, or in 
the absence of a timely response, the Director or representative shall 
set a date, time, and place for a hearing. The federation shall be 
notified at least 10 business days in advance of the hearing. A hearing 
shall be conducted by a hearing officer designated by the Director 
unless it is waived in writing by the federation. After the hearing is 
held, or after the Director's receipt of the federation's written waiver 
of the hearing, the Director shall make a final decision on the record, 
taking into consideration the recommendation submitted by the hearing 
officer. The Director's final decision will be communicated in writing 
to the federation, with a copy to the appropriate LFCC.
    (3) A federation, charitable organization or PCFO sanctioned or 
penalized under any provision of these regulations must demonstrate to 
the satisfaction of the Director that it has taken corrective action to 
resolve the reason for sanction and/or penalty and has implemented 
reasonable and appropriate controls to ensure that the situation will 
not occur again prior to being allowed to participate in subsequent CFCs 
and/or serving as a PCFO for a campaign.
    (b) At the Director's discretion, PCFO's and Federations may be 
directed to suspend distribution of current and future CFC donations 
from Federal employees to recipient organizations. Federations and 
PCFO's shall immediately place suspended contributions in an interest 
bearing account until directed to do otherwise.

[60 FR 57890, Nov. 24, 1995, as amended at 71 FR 67289, Nov. 20, 2006]