[Code of Federal Regulations]
[Title 5, Volume 2, Parts 700 to 1199]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR734.503]

[Page 53-54]
 
                    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.

[[Page 54]]

    (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 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.