October 2, 1996
                                   DO-96-037

MEMORANDUM

TO:       Designated Agency Ethics Officials

FROM:     Stephen D. Potts
          Director

SUBJECT:  Interim Rule Amending 5 C.F.R. Part 2635 to Conform with
          the Hatch Act Reform Amendments


     The Office of Government Ethics (OGE) recently published an
interim rule with request for comments, amending various sections
of the Standards of Ethical Conduct for Employees of the Executive
Branch (the Standards), 5 C.F.R. part 2635, to conform with the
Hatch Act Reform Amendments of 1993 (HARA), Pub. L. 103-94.  The
interim rule was published on September 27, 1996, at 61 Fed. Reg.
50689-50691, and went into effect immediately.  Any comments must
be received by OGE on or before November 26, 1996.

     Under the HARA, all executive branch employees, with the
exception of employees in certain agencies and positions listed at
5 U.S.C. § 7323(b) and 5 C.F.R. § 734.401, and members of the uni-
formed services, may take an active part in political management or
political campaigns.  Previously, the Hatch Act had restricted the
political activities of all but a relatively small class of higher
level employees.

     Accordingly, the gift exception at 5 C.F.R. § 2635.204(f) has
been amended to reflect the redefined class of executive branch
employees who, pursuant to the HARA, may take an active part in
political management or political campaigns.  Under this exception,
those employees may accept from a political organization, as
described in 26 U.S.C. § 527(e), meals, lodgings, transportation
and other benefits, including free attendance at events, when
provided in connection with their active participation in political
management or political campaigns.  The exception and the example
following it also have been reworded to reflect the thrust of the
HARA to permit political activities rather than prohibit them.

     The reference to the Hatch Act at 5 C.F.R. § 2635.801(d)(7),
among other statutes and regulations applicable to employees'
outside employment and other outside activities, has been replaced
with a reference to the HARA.  Similarly, a note in the fundraising
section of the Standards, following 5 C.F.R. § 2635.808(a)(2), has
been reworded to refer employees to the restrictions in the HARA,
at 5 U.S.C. § 7323(a)(2), on the solicitation, acceptance, or
receipt of political contributions, and to reflect changes made by
the HARA to the restrictions on political solicitations at
18 U.S.C. §§ 602 and 607.

     These changes to the Standards are primarily technical in
nature, and do not purport to provide substantive guidance as to
the HARA.  Interim and final regulations regarding the political
activities of Federal employees under the HARA have been issued by
the Office of Personnel Management.  See 59 Fed. Reg. 48765-48777
(September 23, 1994) and 61 Fed. Reg. 35088-35102 (July 5, 1996)
[interim rule codified in part 734 of the 1995 and 1996 editions of
title 5, Code of Federal Regulations].  Advice concerning political
activities under the HARA may be requested from the Office of
Special Counsel by letter addressed to that agency at
1730 M Street, NW., Washington, DC  20036, or by telephone on 202-
653-7188 or 1-800-872-9855.