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(2) the results of the incentive awards program authorized by chapter 45 of this title with related recommendations;

(3) at the end of each fiscal year, the names, addresses, and nature of employment of the individuals on whom the Commission has imposed a penalty for prohibited political activity under section 7325 of this title with a statement of the facts on which action was taken, and the penalty imposed; and

(4) a statement, in the form determined by the Commission with the approval of the President, on the training of employees under chapter 41 of this title, including

(A) a summary of information concerning the operation and results of the training programs and plans of the agencies;

(B) a summary of information received by the Commission from the agencies under section 4113(b) of this title; and

(C) the recommendations and other matters considered appropriate by the President or the Commission or required

by Congress. (b) The Commission shall report annually to the President for transmittal to Congress on the administration of chapter 41 of this title, including the information received by the Commission from the agencies under section 4113(b) (2) and (3) of this title.

(c) The Commission shall publish an annual report on the operation of subchapter III of chapter 83 of this title, including a statement concerning the status of the Civil Service Retirement and Disability Fund.

(d) The Commission shall report annually to Congress on the operation of chapter 87 of this title.

(e) The Commission shall report annually to Congress on the operation of chapter 89 of this title. (Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 402, amended Pub. L. 91–93, $ 104, Oct. 20, 1969, 81 Stat. 138.)

CHAPTER 15 POLITICAL ACTIVITY OF CERTAIN STATE

AND LOCAL EMPLOYEES
SEO.
1501. Definitions.
1502. Influencing elections; taking part in political campaigns; prohibitions ;

exceptions.
1503. Nonpartisan political activity permitted.
1504. Investigations; notice of hearing.
1505. Hearings; adjudications; notice of determinations.
1506. Orders; withholding loans or grants; limitations.
1507. Subpenas and depositions.
1508. Judicial review.
8 1501. Definitions
For the purpose of this chapter-

(1) "State” means a State or territory or possession of the United States;

(2) “State or local agency" means the executive branch of a Staté, municipality, or other political subdivision of a State, or an agency or department thereof;

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(3) "Federal agency” means an Executive agency or other agency of the United States, but does not include a member bank of the Federal Reserve System;

(4) “State or local officer or employee” means an individual employed by a State or local agency whose principal employment is in connection with an activity which is financed in whole or in part by loans or grants made by the United States or a Federal agency, but does not include

(A) an individual who exercises no functions in connection with that activity; or

(B) an individual employed by an educational or research institution, establishment, agency, or system which is supported in whole or in part by a State or political subdivision thereof, or by a recognized religious, philanthropic, or cultural organization; and (5) the phrase "an active part in political management or in political campaigns” means those acts of political management or political campaigning which were prohibited on the part of employees in the competitive service before July 19, 1940, by determinations of the Civil Service Commission under the rules

prescribed by the President. (Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 403.) 8 1502. Influencing elections; taking part in political campaigns;

prohibitions; exceptions (a) A State or local officer or employee may not

(1) use his official authority or influence for the purpose of interferring with or affecting the result of an election or a nomination for office;

(2) directly or indirectly coerce, attempt to coerce, command, or advise a State or local officer or employee to pay, lend, or contribute anything of value to a party, committee, organization, agency, or person for political purposes; or

(3) take an active part in political management or in political campaigns. (b) A State or local officer or employee retains the right to vote as he chooses and to express his opinions on political subjects and candidates. (c) Subsection (a) (3) of this section does not apply to

(1) the Governor or Lieutenant Governor of a State or an individual authorized by law to act as Governor;

(2) the mayor of a city;

(3) a duly elected head of an executive department of a State or municipality who is not classified under a State or municipal merit or civil service system; or

(4) an individual holding elective office. (Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 404.) 8 1503. Nonpartisan political activity permitted

Section 1502(a) (3) of this title does not prohibit political activity in connection with

(1) an election and the preceding campaign if none of the candidates is to be nominated or elected at that election as repre

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senting a party any of whose candidates for presidential elector received votes in the last preceding election at which presidential electors were selected; or

(2) a question which is not specifically identified with a

National or State political party. For the purpose of this section, questions relating to constitutional amendments, referendums, approval of municipal ordinances, and others of a similar character, are deemed not specifically identified with a National or State political party. (Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 404.) 8 1504. Investigations; notice of hearing

When a Federal agency charged with the duty of making a loan or grant of funds of the United States for use in an activity by a State or local officer or employee has reason to believe that the officer or employee has violated section 1502 of this title, it shall report the matter to the Civil Service Commission. On receipt of the report, or on receipt of other information which seems to the Commission to warrant an investigation, the Commission shall

(2)

fix a time and place for a hearing; and

send, by registered or certified mail, to the officer or employee charged with the violation and to the State or local agency employing him a notice setting forth a summary of the alleged

violation and giving the time and place of the hearing. The hearing may not be held earlier than 10 days after the mailing of the notice. (Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 405.) $ 1505. Hearings; adjudications; notice of determinations

Either the State or local officer or employee or the State or local agency employing him, or both, are entitled to appear with counsel at the hearing under section 1504 of this title, and be heard. After this hearing, the Civil Service Commission shall

(1) determine whether a violation of section 1502 of this title has occurred;

(2) determine whether the violation warrants the removal of the officer or employee from his office or employment; and

(3) notify the officer or employeo and the agency of the determination by registered or certified mail. (Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 405.) 8 1506. Orders; withholding loans or grants; limitations (a) When the Civil Service Commission finds

(1) that a State or local officer or employee has not been removed from his office or employment within 30 days after notice of a determination by the Commission that he has violated section 1502 of this title and that the violation warrants removal; or

(2) that the State or local officer or employee has been removed and has been appointed within 18 months after his removal to an office or employment in the same State in a State or local agency

which does not receive loans or grants from a Federal agency; the Commission shall make and certify to the appropriate Federal agency an order requiring that agency to withhold from its loans or grants to the State or local agency to which notice was given an amount equal to 2 years' pay at the rate the officer or employee was receiving at the time of the violation. When the State or local agency to which appointment within 18 months after removal has been made is one that receives loans or grants from a Federal agency, the Commission order shall direct that the withholding be made from that State or local agency.

(b) Notice of the order shall be sent by registered or certified mail to the State or local agency from which the amount is ordered to be withheld. After the order becomes final, the Federal agency to which the order is certified shall withhold the amount in accordance with the terms of the order. Except as provided by section 1508 of this title, a determination or order of the Commission becomes final at the end of 30 days

after mailing the notice of the determination or order. (c) The Commission may not require an amount to be withheld from a loan or grant pledged by a State or local agency as security for its bonds or notes if the withholding of that amount would jeopardize the payment of the principal or interest on the bonds or notes. (Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 405.) 1507. Subpenas and depositions

(a) The Civil Service Commission may require by subpena the attendance and testimony of witnesses and the production of documentary evidence relating to any matter before it as a result of this chapter. Any member of the Commission may sign subpenas, and members of the Commission and its examiners when authorized by the Commission may administer oaths, examine witnesses, and receive evidence. The attendance of witnesses and the production of documentary evidence may be required from any place in the United States at the designated place of hearing. In case of disobedience to a subpena, the Commission may invoke the

aid of a court of the United States in requiring the attendance and testimony of witnesses and the production of documentary evidence. In case of contumacy or refusal to obey a subpena issued to a person, the United States District Court within whose jurisdiction the inquiry is carried on may issue an order requiring him to appear before the Commission, or to produce documentary evidence if so ordered, or to give evidence concerning the matter in question; and any failure to obey the order of the court may be punished by the court as a contempt thereof.

(b) The Commission may order testimony to be taken by deposition at any stage of a proceeding or investigation before it as a result of this chapter. Depositions may be taken before an individual designated by the Commission and having the power to administer oaths. Testimony shall be reduced to writing by the individual taking the deposition, or under his direction, and shall be subscribed by the deponent. Any person may be compelled to appear and depose and to produce documentary evidence before the Commission as provided by this section.

(c) A person may not be excused from attending and testifying or from producing documentary evidence or in obedience to a subpena on the ground that the testimony or evidence, documentary or otherwise

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required of him may tend to incriminate him or subject him to a penalty
or forfeiture for or on account of any transaction, matter, or thing con-
cerning which he is compelled to testify, or produce evidence, docu-
mentary or otherwise, before the Commission in obedience to a sub-
pena issued by it. A person so testifying is not exempt from prosecu-
tion and punishment for perjury committed in so testifying. (Pub. L.
89–554, Sept. 6, 1966, 80 Stat. 406.)
8 1508. Judicial review

A party aggrieved by a determination or order of the Civil Service Commission under section 1504, 1505, or 1506 of this title may, within 30 days after the mailing of notice of the determination or order, institute proceedings for review thereof by filing a petition in the United States District Court for the district in which the State or local officer or employee resides. The institution of the proceedings does not operate as a stay of the determination or order unless

(1) the court specifically orders a stay; and

(2) the officer or employee is suspended from his office or em

ployment while the proceedings are pending. A copy of the petition shall immediately be served on the Commission, and thereupon the Commission shall certify and file in the court a transcript of the record on which the determination or order was made. The court shall review the entire record including questions of fact and questions of law. If application is made to the court for leave to adduce additional evidence, and it is shown to the satisfaction of the court that the additional evidence may materially affect the result of the proceedings and that there were reasonable grounds for failure to adduce this evidence in the hearing before the Commission, the court may direct that the additional evidence be taken before the Commission in the manner and on the terms and conditions fixed by the court. The Commission may modify its findings of fact or its determination or order in view of the additional evidence and shall file with the court the modified findings, determination, or order; and the modified findings of fact, if supported by substantial evidence, are conclusive. The court shall affirm the determination or order, or the modified determination or order, if the court determines that it is in accordance with law. If the court determines that the determination or order, or the modified determination or order, is not in accordance with law, the court shall remand the proceeding to the Commission with directions either to make a determination or order determined by the court to be lawful or to take such further proceedings as, in the opinion of the court, the law requires. The judgment and decree of the court are final, subject to review by the appropriate United States Court of Appeals as in other cases, and the judgment and decree of the court of appeals are final, subject to review by the Supreme Court of the United States on certiorari or certification as provided by section 1254 of title 28. If a provision of this section is held to be invalid as applied to a party by a determination or order of the Commission, the determination or order becomes final and effective as to that party as if the provision had not been enacted. (Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 406.)

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