UNCLASSIFIED (U)

6 FAM 520 

PRINCIPAL OFFICER RESPONSIBILITIES

(CT:GS-234;   01-13-2022)
(Office of Origin:  A/OPR/CR)

6 FAM 521  DETERMINING NEED

(CT:GS-230;   06-02-2021)
(Uniform State/USAID/Commerce/Agriculture)

a. The principal officer at each post, after appropriate consultation with heads of other agencies at post, determines the need for, and the economic feasibility of establishing an employee association.

b. The principal officer at each post will not establish retail facilities, food services, and recreation facilities in localities where another U.S. agency operates similar services or facilities unless there is a compelling reason to do so.  This officer will also periodically review the continuing need for existing facilities.  Similarly, the Assistant Secretary of State for Administration will not authorize the establishment of multiple employee associations at any one post.

6 FAM 522  MONITORING employee ASSOCIATION ACTIVITIES

(CT:GS-230;   06-02-2021)
(Uniform State/USAID/Commerce/Agriculture)

The principal officer or designee, must monitor the activities of the employee association and certify that it is prudently managing operations and complying with regulations.  To assist in fulfilling this responsibility, the principal officer, or designee must have a nonvoting seat on the association’s board of directors (see 6 FAM 554) and regularly attend meetings of the board.

6 FAM 523  RELATIONS WITH HOST GOVERNMENT AND LOCAL COMMUNITY

(CT:GS-230;   06-02-2021)
(Uniform State/USAID/Commerce/Agriculture)

The principal officer must ensure that the employee association’s activities and facilities do not adversely affect public relations with the citizens and officials of the host country; that they do not cause financial embarrassment in the local business community; and that they do not violate local customs and labor laws.

6 FAM 524  LOGISTICAL SUPPORT

(CT:GS-234;   01-13-2022)
(Uniform State/USAID/Commerce/Agriculture)

a. The principal officer may provide to the employee association U.S. Government supplies, equipment, utilities, properties, space for its facilities and services, customs clearance, local transportation and other services on a reimbursable or nonreimbursable basis.

b. In determining whether to assess any charges or fees for U.S. Government facilities and services made available to the association, the principal officer should consider the cost the U.S. Government incurred in providing such facilities and services, and the profits the association derives from activities using U.S. Government facilities and services.  The U.S. Government must not unduly subsidize employee associations.  For example, the principal officer may provide U.S. Government facilities to an association rent-free but the association generally should reimburse some percentage of the cost of leased facilities that it uses.  In general, the principal officer should not lease facilities using appropriated funds where the facilities are for the exclusive use of the association unless the law provides otherwise (e.g., day-care facilities) or in extraordinarily compelling circumstances.  The employee association should reimburse the cost of utilities such as electricity, water, telephone, and heating/cooling service to the post.  The association must reimburse guard services and other services, if any, that are exclusively provided for an association facility.  The association must reimburse direct costs of equipment such as computer hardware, office furnishings, air conditioners, refrigerators, and freezers if reasonable and possible under local conditions.  The association should contribute to the cost of modification and repair of U.S. Government facilities that are for the exclusive use of association-sponsored activities as reasonable under the circumstances.  The post should maintain a record of disposal surplus or excess U.S. Government property to an association on a nonreimbursable basis.

6 FAM 525  LOCATION ON U.S. GOVERNMENT PROPERTY

(CT:GS-230;   06-02-2021)
(Uniform State/USAID/Commerce/Agriculture)

a. The principal officer must ensure that employee association facilities, whenever feasible, are located on U.S. Government-held property.  The principal officer or designee and the chairperson of the board of directors must document the use of space made available to the employee association and other logistical support provided.  These terms, including specific provisions for reimbursement and property identification numbers issued by the Bureau of Overseas Buildings Operations, must be stated in a license agreement and must conform to the Office of Commissary and Recreation Staff Affairs (A/OPR/CR) format.  (See Model License Agreement for Employee Associations.)  The employee association-installed physical structures on U.S. Government premises become the property of the Government at the expiration of the term that the principal officer specified in written permission, or sooner, in the event of liquidation of the association or discontinuance of its use for the purposes approved.

b. If it is necessary for the facilities to be located on property not held by the U.S. Government, the employee association should make every effort to select an inconspicuous location.  Posts should refrain from advertising the existence of the facilities through signs, brochures, or other methods including public media.

c.  Employee associations must submit license agreements to A/OPR/CR for review and approval.

6 FAM 526  LOCATION ON U.S. GOVERNMENT-OWNED OR -LEASED TDY Quarters

(CT:GS-230;   06-02-2021)
(Uniform State/USAID/Commerce/Agriculture)

a. The principal officer may permit employee associations to manage U.S. Government-owned or leased TDY quarters, only after receiving the Bureau of Overseas Buildings Operations (OBO) approval to ooperate TDY quarters (see 15 FAM 249 and 15 FAM 249.2).  The principal officer or designee and the chairperson of the board of directors must document the use of space made available to the employee association for the operation of TDY quarters in a license agreement with the employee association.  The agreement must conform to the Office of the Commissary and Recreation Affairs (A/OPR/CR) format.  See Model License Agreement for Employee Association-Managed TDY Quarters.  The employee association must submit the agreement to A/OPR/CR for review and approval.

b. Employee associations are responsible for establishing room rates based on the size of the unit and number of occupants.  Rates must be the same for all U.S. Government employees.  Rates must also be within the lodging portion of the prevailing per diem for the locality and competitive with local hotels.  Associations must give priority placement to U.S. Government employees.

c.  Employee associations must pay all costs of managing, maintaining, and operating the property from room rental revenue.  In addition, associations must establish an asset reserve fund from rental revenue to cover the replacement of furniture and equipment used in the rooms.

d. Employee associations may retain a management fee no greater than 15 percent of the gross revenue for managing the rooms.

e. Once all expenses (including the reserve fund and management fee) have been met, any remaining proceeds from the room rental must be deposited to the following OBO accounts.

f.  In the event an employee association operates TDY quarters which it directly owns or leases, post will have no involvement in operating or maintaining these units, nor must the association place any requirement on U.S. Government employees to occupy them.  Employee associations may retain all profits derived from TDY quarters operated on non-USG-owned or leased property.

6 FAM 527  prohibition on gambling

(CT:GS-230;   06-02-2021)
(Uniform State/USAID/Commerce/Agriculture)

Federal Property Management Regulation 42 CFR 102-74.395 prohibits gambling by providing:

“(a)  Except for the vending or exchange of chances by licensed blind operators of vending facilities for any lottery set forth in a State law and authorized by section 2(a)(5) of the Randolph-Sheppard Act (20 U.S.C. 107 et seq.), all persons entering in or on Federal property are prohibited from—

(1)      Participating in games for money or other personal property;

(2)      Operating gambling devices;

(3)      Conducting a lottery or pool; or

(4)      Selling or purchasing numbers tickets.

(b)  This provision is not intended to prohibit prize drawings for personal property at otherwise permitted functions on Federal property, provided that the game or drawing does not constitute gambling per se.  Gambling per se means a game of chance where the participant risks something of value for the chance to gain or win a prize.

(c)  This prohibition is extended to all employee association facilities, even where the association does not hold events on USG-owned or leased property."

6 FAM 528  THROUGH 529 UNASSIGNED

UNCLASSIFIED (U)