Short title

This Act may be cited as the

Hatch Act Modernization Act of 2012

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.

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 (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

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.

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 (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.