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One Hundred Twelfth Congress 

of the 

United States of America 

AT THE SECOND SESSION 

Begun and held at the City of Washington on Tuesday, 

the third day of January, two thousand and twelve 

An Act 

To amend the provisions of title 5, United States Code, which are commonly referred 

to as the ‘‘Hatch Act’’, to scale back the provision forbidding certain State and 

local employees from seeking elective office, clarify the application of certain 

provisions to the District of Columbia, and modify the penalties which may 

be imposed for certain violations under subchapter III of chapter 73 of that 

title. 

Be it enacted by the Senate and House of Representatives of 

the United States of America in Congress assembled, 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Hatch Act Modernization Act 

of 2012’’. 

SEC. 2. PERMITTING STATE AND LOCAL EMPLOYEES TO BE CANDIDATES FOR ELECTIVE OFFICE. 

Section 1502(a)(3) of title 5, United States Code, is amended 

to read as follows: 

‘‘(3) if the salary of the employee is paid completely, directly 

or indirectly, by loans or grants made by the United States 

or a Federal agency, be a candidate for elective office.’’. 

SEC. 3. APPLICABILITY OF PROVISIONS RELATING TO STATE AND 

LOCAL EMPLOYEES. 

(a) STATE OR LOCAL AGENCY.—Section 1501(2) of title 5, United 

States Code, is amended by inserting ‘‘, or the executive branch 

of the District of Columbia, or an agency or department thereof’’ 

before the semicolon. 

(b) STATE OR LOCAL OFFICER OR EMPLOYEE.—Section 1501(4) 

of title 5, United States Code, is amended by striking subparagraph 

(B) and inserting the following: 

‘‘(B) an individual employed by an educational or 

research institution, establishment, agency, or system 

which is supported in whole or in part by— 

‘‘(i) a State or political subdivision thereof; 

‘‘(ii) the District of Columbia; or 

‘‘(iii) a recognized religious, philanthropic, or cultural organization.’’. 

(c) EXCEPTION OF CERTAIN OFFICERS.—Section 1502(c)(3) of title 

5, United States Code, is amended— 

(1) by striking ‘‘ ‘or municipality’’ and inserting ‘‘, municipality, or the District of Columbia’ ’’; and 

(2) by striking ‘‘ ‘or municipal’’ and inserting ‘‘, municipal, 

or the District of Columbia’ ’’. 

(d) MERIT SYSTEMS PROTECTION BOARD ORDERS.—Section 

1506(a)(2) of title 5, United States Code, is amended by inserting 
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‘‘(or in the case of the District of Columbia, in the District of 

Columbia)’’ after ‘‘the same State’’. 

(e) PROVISIONS RELATING TO FEDERAL EMPLOYEES MADE INAPPLICABLE.—Section 7322(1) of title 5, United States Code, is 

amended— 

(1) in subparagraph (A), by adding ‘‘or’’ at the end; 

(2) in subparagraph (B), by striking ‘‘or’’ at the end; 

(3) by striking subparagraph (C); and 

(4) by striking ‘‘services;’’ and inserting ‘‘services or an 

individual employed or holding office in the government of 

the District of Columbia;’’. 

(f) EMPLOYEES RESIDING IN CERTAIN MUNICIPALITIES.—Section 

7325(1) of title 5, United States Code, is amended to read as 

follows: 

‘‘(1) the municipality or political subdivision is— 

‘‘(A) the District of Columbia; 

‘‘(B) in Maryland or Virginia and in the immediate 

vicinity of the District of Columbia; or 

‘‘(C) a municipality in which the majority of voters 

are employed by the Government of the United States; 

and’’. 

SEC. 4. HATCH ACT PENALTIES FOR FEDERAL EMPLOYEES. 

Chapter 73 of title 5, United States Code, is amended by 

striking section 7326 and inserting the following: 

‘‘§ 7326. Penalties 

‘‘An employee or individual who violates section 7323 or 7324 

shall be subject to removal, reduction in grade, debarment from 

Federal employment for a period not to exceed 5 years, suspension, 

reprimand, or an assessment of a civil penalty not to exceed 

$1,000.’’. 

SEC. 5. EFFECTIVE DATE. 

(a) IN GENERAL.—This Act and the amendments made by this 

Act shall take effect 30 days after the date of enactment of this 

Act. 

(b) APPLICABILITY RULE.— 

(1) IN GENERAL.—Except as provided in paragraph (2), the 

amendment made by section 4 shall apply with respect to 

any violation occurring before, on, or after the effective date 

of this Act. 

(2) EXCEPTION.—The amendment made by section 4 shall 

not apply with respect to an alleged violation if, before the 

effective date of this Act— 

(A) the Special Counsel has presented a complaint 

for disciplinary action, under section 1215 of title 5, United 

States Code, with respect to the alleged violation; or 
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(B) the employee alleged to have committed the violation has entered into a signed settlement agreement with 

the Special Counsel with respect to the alleged violation. 

Speaker of the House of Representatives. 

Vice President of the United States and

President of the Senate.