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Statement of Need: Congress amended the Hatch Act through the Hatch Act Reform Amendments of 1993; an interim regulation with a request for comments was issued on February 4, 1994 (59 FR 5313). The interim regulation addressed employee coverage and specifically described the political activities which the Reform Amendments permit and prohibit in connection with employee participation in elections for local partisan political office in the designated localities. The interim regulation also included a list of the localities whose Federally employed residents have been granted a partial exemption from the Reform Amendments' prohibitions on candidacy for partisan political office and on soliciting, accepting, or receiving political contributions. In view of the comments submitted on the interim regulation, substantive revisions to the regulation are planned. Therefore, a proposed regulation would be appropriate to provide the public with an opportunity to comment on such changes.

Summary of the Legal Basis: The legal basis for issuing this regulation is the Hatch Act Reform Amendments of 1993, Pub.L. 103-94, 107 Stat. 1001, as codified at 5 U.S.C. section 7325.

Alternatives: There is no alternative to issuing a proposed regulation in view of the substantive changes that are planned for the regulation. A final regulation also will be required to put covered employees on notice of the political activities that the Reform Amendments permit and prohibit in connection with elections for local partisan political office in the designated localities. Moreover, a consistent interpretation of the Reform Amendments' provisions is required for purposes of enforcement.

Anticipated Costs and Benefits: There are no anticipated costs or risks associated with publication of a proposed regulation concerning the political activity of Federal employees residing in designated localities.

Risks: None