U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1 

19–006 

" ! HOUSE OF REPRESENTATIVES 

112TH CONGRESS

1st Session 

REPORT

2011

112–336 

House Calendar No. 103 

IN THE MATTER OF ALLEGATIONS 

RELATING TO 

REPRESENTATIVE DON YOUNG 

R E P O R T 

OF THE

COMMITTEE ON ETHICS 

DECEMBER 20, 2011.—Referred to the House Calendar and ordered to 

be printed 


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(II) 

COMMITTEE ON ETHICS 

JO BONNER, Alabama, Chairman 

MICHAEL T. MCCAUL, Texas 

K. MICHAEL CONAWAY, Texas 

CHARLES W. DENT, Pennsylvania 

GREGG HARPER, Mississippi 

LINDA T. SA ́ NCHEZ, California, Ranking 

Member 

JOHN A. YARMUTH, Kentucky 

DONNA F. EDWARDS, Maryland 

PEDRO R. PIERLUISI, Puerto Rico 

JOE COURTNEY, Connecticut 

REPORT STAFF 

DANIEL A. SCHWAGER, Chief Counsel/Staff Director 

DEBORAH SUE MAYER, Director of Investigations 

KELLE A. STRICKLAND, Counsel to the Chairman 

DANIEL J. TAYLOR, Counsel to the Ranking Member 

SHERIA A. CLARKE, Counsel 

MIGUEL TORUN ̃ O, Senior Counsel 

BRITTANY M. BOHREN, Investigative Clerk 


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(III)

LETTER OF SUBMITTAL 

U.S. HOUSE OF REPRESENTATIVES, 

COMMITTEE ON ETHICS, 

Washington, DC, December 20, 2011. 

Hon. KAREN L. HAAS, 

Clerk, U.S. House of Representatives, 

Washington, DC. 

DEAR MS. HAAS: Pursuant to clauses 3(a)(2) and 3(b) of Rule XI 

of the Rules of the House of Representatives, we herewith transmit 

the attached Report, ‘‘In the Matter of Allegations Relating to Representative Don Young.’’ 

Sincerely, 

JO BONNER, 

Chairman. 

LINDA T. SA ́ NCHEZ, 

Ranking Member. 


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C O N T E N T S 

Page 

I. Introduction ...................................................................................................... 1 

II. House Rules, Laws, Regulations, and Other Standards of Conduct ............ 3 

III. Facts .................................................................................................................. 4 

IV. Findings and Conclusions ................................................................................ 7 

V. Statement Under Rule XIII, Clause 3(c) of the Rules of the House of 

Representatives ............................................................................................. 10 

Appendix A: Report and Findings of the Office of Congressional Ethics Regarding Representative Don Young (Review No. 11–3175) .............................. 11 

Appendix B: Representative Don Young’s Response to the Report and Findings of the Office of Congressional Ethics .............................................................. 134 

Appendix C: Revised Legal Expense Fund Regulations, Adopted by the Committee on December 14, 2011................................................................................... 138 


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House Calendar No. 103 

112TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 112–336 

IN THE MATTER REGARDING ALLEGATIONS RELATING 

TO REPRESENTATIVE DON YOUNG 

DECEMBER 20, 2011.—Referred to the House Calendar and ordered to be printed 

Mr. BONNER, from the Committee on Ethics, 

submitted the following 

R E P O R T 

I. INTRODUCTION 

The Committee on Ethics (the Committee) submits this Report 

pursuant to Rule XI, clause 3(a)(2), of the Rules of the U.S. House 

of Representatives (House Rules), which authorizes the Committee 

to investigate any alleged violation by a Member, officer, or employee of the House of Representatives, of the Code of Official Conduct or any law, rule, regulation, or other standard applicable to 

the conduct of such Member, officer, or employee. 

On December 31, 2007, Representative Don Young entered into 

a trust agreement establishing the Congressman Don Young Legal 

Expense Trust (the Trust). In a letter dated January 2, 2008, Representative Young sought formal approval of the Trust from the 

Committee in accordance with the Committee’s Legal Expense 

Fund Regulations. On January 9, 2008, the Committee approved 

the Trust. 

On April 20, 2011, Representative Young filed the Trust’s required quarterly report with the Committee for the reporting period ending March 31, 2011. The quarterly report indicated that, 

among other donations, twelve limited liability corporations (LLCs) 

located in Louisiana each contributed $5,000 to the Trust. The 

LLCs were owned by the same individual or group of individuals. 

On June 23, 2011, the Office of Congressional Ethics (OCE) commenced a preliminary review of allegations that Representative 

Young had accepted contributions to his Trust in excess of the limits established by applicable rules. Pursuant to its organizing resolution, OCE was required to notify both Representative Young and 

the Committee that it had begun a preliminary review. In a letter 

dated July 6, 2011, Representative Young sought guidance from 


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1 Report and Findings in the Matter of Representative Don Young, OCE Review No. 11–3175, 

October 13, 2011. A copy of OCE’s Report and Findings is attached as Appendix A to this Report. 2Letter from Representative Young to the Committee, November 4, 2011. A copy of Representative Young’s response to OCE’s Report and Findings is attached as Appendix B to this Report. 3Pursuant to Committee Rule 3(j), the Committee will not release any of its letters to Representative Young at this time. 4The Committee adopted revised Legal Expense Fund Regulations in order to provide greater 

guidance and clarity on several issues related to legal expense funds, including the issue addressed in this Report. The Committee also elected to define contributions from multiple entities 

owned by the same individual or individuals in a manner consistent with the Federal Election 

Commission’s definition used for campaign donations from multiple entities owned by the same 

individual or individuals. See 11 C.F.R. § 110.1(e)(1). The Committee recognized that adopting 

this definition would help to prevent the formation of shell companies for the purpose of evading 

the Committee related to the $5,000 contributions from the twelve 

LLCs located in Louisiana. Representative Young indicated that, 

prior to accepting the contributions, guidance was sought from Gail 

R. Schubert, the trustee of his Trust, regarding whether contributions from companies that are separate legal entities and operate 

under separate financial records were subject to the same contribution limit. The trustee’s opinion was that such contributions are 

permissible and not subject to the same contribution limit if the 

companies are separate legal entities and operate under separate 

financial records. 

On October 13, 2011, the Committee received a referral from 

OCE recommending further review of allegations that Representative Young ‘‘may have accepted contributions to his legal expense 

trust in excess of the limitations of $5,000 per calendar year from 

any individual or organization.’’ 1 Upon receipt of OCE’s Report and 

Findings (Report and Findings), the Committee sent a copy of the 

Report and Findings to Representative Young and offered him an 

opportunity to respond. Representative Young submitted a response to OCE’s Report and Findings on November 4, 2011.2

On November 17, 2011, the Chairman and Ranking Member authorized an investigation pursuant to Committee Rule 18(a) to 

gather additional information related to the allegations in OCE’s 

Report and Findings. The Committee also conducted a review of 

the advice generally given to individuals with legal expense trust 

funds in interpreting the Legal Expense Fund Regulations issued 

by the Committee on June 10, 1996 (1996 LEF Regulations). Based 

on the information gathered during the 18(a) investigation, as well 

as the Committee’s review of the advice generally given, the Committee voted unanimously to resolve the issues surrounding Representative Young’s outstanding request for guidance from the 

Committee and the allegations regarding Representative Young by 

OCE, by issuing a letter to Representative Young and releasing 

this report.3

With respect to Representative Young’s request for guidance 

from the Committee, the Committee, in guidance issued contemporaneously with this Report, determined that the contributions by 

the twelve Louisiana LLCs to Representative Young were permissible under the 1996 LEF Regulations issued by the Committee, 

and that the Trust’s acceptance of the contributions did not violate 

House rules. The Committee also adopted revised LEF Regulations, 

issued contemporaneously with this Report, that provide clarity on 

several matters related to legal expense funds, including restrictions on contributions from multiple entities owned by the same individual or individuals.4


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the contribution limits. A copy of the Legal Expense Fund Regulations adopted by the Committee on December 14, 2011, is attached as Appendix C to this Report. 5 Beyond the rules and regulations cited in this section, OCE also points to guidance issued 

in the 2008 House Ethics Manual as controlling. The guidance states ‘‘[a] gift received from an 

individual affiliated with an organization counts against the annual gift limitations of both the 

individual and the organization.’’ 2008 House Ethics Manual at 6. In a footnote, OCE’s Report 

and Findings also discusses guidance provided by the Senate Select Committee on Ethics. The 

Senate guidance states that although the Senate Committee ‘‘generally recognizes the separate 

legal status of related entities (e.g. a parent and its subsidiary entity will be treated as distinct 

sources for the purposes of the Gifts Rule), such entities will NOT be accorded separate source 

status if the entities are acting in concert or as agent for the other with respect to a particular 

gift.’’ OCE acknowledges that guidance provided by the Senate is not controlling. 

With respect to the referral from OCE, the Committee determined that, based on the 1996 LEF Regulations and long-standing 

Committee advice, multiple entities owned by the same individual 

or individuals were permitted to make contributions up to $5,000 

per entity if they were separate legal entities. The twelve Louisiana LLCs are separate legal entities and are separately registered with the Louisiana Secretary of State. Further, the entities 

provide separate and distinct products or services and were formed 

at different times. 

Because the contributions by the twelve LLCs were permissible 

under the Committee’s 1996 LEF Regulations, the Committee dismissed the allegations in the OCE referral. However, the Committee is concerned that the identical ownership of the twelve entities challenges the principles of the contribution limits of the 1996 

LEF Regulations. Because the 1996 LEF Regulations did clearly 

permit contributions from multiple entities owned by the same individual or individuals, and because Representative Young did appear to inquire of the nature of the entities and their permissibility, the Committee does not believe a violation of House Rule 

XXIII, clause 2 may be found as it does not appear Representative 

Young himself intended to violate the spirit of the 1996 LEF Regulations. However, to prevent this situation in the future the Committee is amending the LEF Regulations to attribute contributions 

by certain types of entities, such as LLCs, to the owners of those 

entities. The revised LEF Regulations will take effect on January 

1, 2012, and will apply to all existing LEFs and all LEFs approved 

by the Committee in the future. 

II. HOUSE RULES, LAWS, REGULATIONS AND OTHER 

STANDARDS OF CONDUCT 5

House Rule XXV, clause 5(a)(3)(E) 

‘‘The restrictions in subparagraph (1) [generally, the House gift 

rule] do not apply to the following: 

(E) Except as provided in paragraph (e)(3), a contribution or other payment to a legal expense fund established 

for the benefit of a Member, Delegate, Resident Commissioner, officer or employee of the House that is otherwise 

lawfully made in accordance with the restrictions and disclosure requirements of the Committee on Ethics.’’ 

1996 Legal Expense Fund Regulations, ¶ 8 

‘‘A Legal Expense Fund shall not accept more than $5,000 in a 

calendar year from any individual or organization.’’ 


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6Letter from the Committee to Representative Young, January 9, 2008. 

House Rule XXIII, clause 1 

‘‘A Member, Delegate, Resident Commissioner, officer, or employee of the House shall conduct himself at all times in a manner 

that shall reflect creditably on the House.’’ 

House Rule XXIII, clause 2 

‘‘A Member, Delegate, Resident Commissioner, officer, or employee of the House shall adhere to the spirit and letter of the 

Rules of the House and to the rules of duly constituted committees 

thereof.’’ 

III. FACTS 

Based on OCE’s referral, the Committee’s review of information 

gathered during the 18(a) investigation, and relevant Committee 

guidance, the following is the background in this matter. 

A. ESTABLISHMENT OF LEGAL EXPENSE TRUST

Representative Young is the representative for Alaska At-Large. 

On December 31, 2007, Representative Young established the Congressman Don Young Legal Expense Trust (the Trust) to pay legal 

expenses related to an ongoing investigation by the Department of 

Justice concerning his conduct as a Member of the House of Representatives. Representative Young signed a trust agreement on 

December 31, 2007, naming Gail R. Schubert, an attorney, as trustee.6 The Committee, by letter dated January 9, 2008, approved the 

Trust. 

According to quarterly reports of the Trust filed with the Committee, the Trust began receiving contributions during the reporting period ending July 30, 2008. Over the course of the next twoand-a-half years, the Trust continued to receive contributions from 

donors. However, there was no organized fundraising plan in place. 

During the reporting period ending March 31, 2011, the Trust received contributions from twelve LLCs owned by the same individual or group of individuals. Each LLC contributed $5,000 to the 

Trust—the maximum permissible contribution under the 1996 LEF 

Regulations for any year—via checks dated January 6 or 7, 2011. 

On May 3, 2011, Roll Call published an article entitled ‘‘A Family 

Comes to Rep. Young’s Defense.’’ The article reported that Gary 

Chouest, President of Edison Chouest Offshore, and other members 

of the Chouest family, controlled twelve entities that each made a 

$5,000 contribution to Representative Young’s legal expense trust. 

The article questioned whether the contributions were permissible 

under the 1996 LEF regulations or were a circumvention of House 

rules. 

OCE’s preliminary review began on June 23, 2011. On July 6, 

2011, Representative Young requested an advisory opinion from 

the Committee as to whether contributions by the twelve Louisiana 

companies were permissible. 


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7 Report and Findings in the Matter of Representative Don Young, OCE Review No. 11–3175, 

October 13, 2011. 8 Id. 

9 Id. 

10 Representative Young Letter to Committee, November 4, 2011. 11OCE’s Report and Findings ¶¶ 39, 40. According to OCE’s Report and Findings, the trustee 

did not recall this conversation with Representative Young’s Chief of Staff. However, the trustee 

did acknowledge a general discussion with the Chief of Staff about contributions from affiliated 

entities. 12OCE’s Report and Findings ¶¶ 44–46. According to OCE’s Report and Findings, Representative Young recalled sending the envelope directly to the trustee. However, Representative 

Young’s Chief of Staff recalls that Representative Young gave the checks to her and she sent 

them to the trustee. 

B. OCE AND COMMITTEE INVESTIGATIONS

OCE commenced its initial review of this matter on June 23, 

2011.7 On July 22, 2011, OCE voted to initiate a second-phase review. OCE voted to extend the second-phase review on August 13, 

2011.8 OCE voted to refer the matter to the Committee on September 27, 2011, and transmitted its Report and Findings to the 

Committee on October 13, 2011.9 Upon receipt of OCE’s Report and 

Findings, the Committee sent a copy of the Report and Findings to 

Representative Young and offered him an opportunity to respond. 

Representative Young submitted a response to OCE’s Report and 

Findings on November 4, 2011.10 On November 17, 2011, the 

Chairman and Ranking Member authorized an investigation pursuant to Committee Rule 18(a) to gather additional information related to the allegations in OCE’s Report and Findings. On December 5, 2011, Representative Young submitted an additional response to the Committee. 

OCE’s investigation revealed that sometime around December 

2010 and January 2011, Representative Young had a telephone 

conversation with Gary Chouest. During the conversation, Mr. 

Chouest offered to raise funds for Representative Young’s legal 

expense trust. The funds would be contributions from the companies owned by the Chouest family. After the conversation, Representative Young’s Chief of Staff contacted the trustee of the Trust 

to ask whether it was permissible to accept contributions from the 

companies.11 According to the Chief of Staff, the trustee advised 

that contributions up to $5,000 would be permissible from each 

company that filed separate tax returns and held separate insurance policies. 

On or around January 14, 2011, Representative Young attended 

a fundraising event in Texas hosted by Mr. Chouest. At the event, 

Mr. Chouest gave Representative Young an envelope. According to 

Representative Young, he never opened the envelope. The envelope 

and its contents were forwarded to the trustee for deposit into the 

Trust account. Checks from twelve companies in the amount of 

$5,000 each were deposited into the Trust account on March 31, 

2011.12 Neither Mr. Chouest nor any other Chouest family member 

contributed personal funds to Representative Young’s legal expense 

trust. 

According to information provided to the Committee during its 

18(a) inquiry, the owners of the twelve companies authorized that 

checks be issued to Representative Young’s legal expense trust 

from each company. Each company issued a check from an account 

owned by that company. No check was drawn on the same account. 

The checks were all issued on January 6, or 7, 2011, and were all 


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13Ms. Austin also serves in various capacities, such as manager, of most of the companies. 14The corporation was initially registered on May 27, 1970, as Chouest Boat Rental, Inc., Edison. After several mergers and name changes, the corporation is currently registered as Offshore 

Service Vessels, LLC. 

signed by Dionne Chouest Austin, the registered agent for each of 

the companies.13

Based on the Committee’s review of information gathered during 

the 18(a) investigation, the twelve companies that contributed to 

Representative Young’s legal expense trust are a part of the Edison 

Chouest Offshore (ECO) family of companies. The twelve ECO companies that each contributed $5,000 to Representative Young’s 

Trust are: • Alpha Marine Services, LLC • C-Innovation, LLC • C-Port, LLC • C-Port 2, LLC • Galliano Marine Services, LLC • Marine Technologies, LLC • Martin Holdings, LLC • Nautical Solutions, LLC • Nautical Ventures, LLC • Offshore Support Services, LLC • North American Fabricators, LLC • North American Shipbuilding LLC 

Each of the companies listed above, as well as ECO, are registered with the Louisiana Secretary of State as separate entities. 

Each company has a unique tax identification number and, for the 

companies that file income tax returns, they file separately. The 

companies provide different services or products related to the maritime industry. Several of the companies maintain separate Web 

sites that are directly accessible or accessible through links from 

the ECO Web site. 

Based on public records, Edison Chouest Offshore, LLC was registered in 1970.14 North American Fabricators, LLC was registered 

on October 17, 1996. Galliano Marine Service, LLC was registered 

on December 24, 1996. Alpha Marine Services, LLC was registered 

on December 24, 1996. North American Shipbuilding, LLC was registered on December 24, 1996. C-Port 2, LLC was registered on December 12, 1997. Offshore Support Services, LLC was registered on 

November 4, 1998. Martin Holdings, LLC was registered on October 4, 2000. Nautical Ventures, LLC was registered on September 

20, 2001. Marine Technologies, LLC was registered on July 3, 2002. 

C-Port, LLC was registered on January 10, 2006. C-Innovation, 

LLC was registered on April 9, 2007. Nautical Solutions, LLC was 

registered on August 16, 2007. 

According to the information obtained by the Committee, eleven 

of the contributing companies are owned by Gary Chouest, his wife, 

and their five children (though the interests of two children are 

held in trust) or some combination of those seven individuals. One 

separate company which partly or wholly owns four of the contributing companies is itself owned by the Chouest family as well. One 

of the contributing companies is wholly owned by another separate 

company that is wholly owned by Gary Chouest alone. Each of the 

owners has the authority to sign checks on behalf of the companies. 

Gary Chouest and other members of the Chouest family are listed 


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15Mr. Chouest first told the Committee that each company filed separate tax returns, but 

later clarified that three companies do not file returns. 16 House Rule XXV, clause 5(a)(3)(E). See generally 2008 House Ethics Manual at 63–65. 17 1996 LEF Regulations ¶¶ 1, 11. 18 1996 LEF Regulations ¶ 8. 19 1996 LEF Regulations ¶ 9. 

as registered agents or officers of each ECO company. The corporate registrations list Gary Chouest as a registered agent and a 

member of the North American Fabricators, LLC; North American 

Shipbuilding, LLC; and C-Innovation, LLC. Mr. Chouest is listed 

as a registered agent and manager of Nautical Solutions, LLC; 

Galliano Marine Services, LLC; and Alpha Marine Services, LLC. 

Mr. Chouest is also listed as a manager of Nautical Ventures, LLC. 

Dionne Chouest Austin is listed as a registered agent for each of 

the twelve companies and also serves as a manager or member of 

five of the corporations. Several other Chouest family members 

serve in various capacities for the corporations. 

The companies appear to provide separate and distinct products 

or services. Several of the companies have offices, including principal offices, in foreign countries and on different continents. Several of the companies have presidents from, and serving in the foreign countries. 

During its 18(a) investigation, the Committee received information from Gary Chouest, Director of Edison Chouest Offshore, via 

a telephone interview and through documents submitted by Mr. 

Chouest. The information provided by Mr. Chouest demonstrated 

that each company is a separate legal entity. Each company has a 

board of directors. The companies are owned by Mr. Chouest, his 

wife, and their five children, or some combination of those seven 

individuals. Each of the owners has the authority to sign checks on 

behalf of the companies. In addition, the companies each have separate tax identification numbers and file separate tax returns, although three of the companies did not file tax returns because they 

are ‘‘disregarded entities of a parent company.’’ 15

IV. FINDINGS AND CONCLUSIONS 

A. COMMITTEE’S RESPONSE TO REQUEST FOR GUIDANCE

1. Restrictions on Contributions to Legal Expense Funds 

a. Legal Background 

Under the gift rule, ‘‘a contribution or other payment to a legal 

expense fund established for the benefit of [the official] that is otherwise lawfully made in accordance with the restrictions and disclosure requirements of the Committee on Ethics’’ is a permissible 

gift.16 Under the 1996 LEF Regulations, a Member may not receive 

or solicit donations to such a fund without prior approval of the 

trust agreement by the Committee.17

The 1996 LEF Regulations also provide the following restrictions 

on contributions made to a legal expense fund: 1. A Legal Expense Fund shall not accept more than $5,000 

in a calendar year from any individual or organization; 18

2. A Legal Expense Fund shall not accept any contribution 

from a registered lobbyist or an agent of a foreign principal; 19

3. Other than as specifically barred by law or regulation, a 

Legal Expense Fund may accept contributions from any indiVerDate Mar 15 2010 09:36 Dec 22, 2011 Jkt 019006 PO 00000 Frm 00013 Fmt 6659 Sfmt 6602 E:\HR\OC\HR336.XXX HR336

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20 1996 LEF Regulations ¶ 10. 21See 2008 House Ethics Manual at 30. House Rule XXV, cl. 5. 22 House Rule XXV, cl. 5(a)(1)(A)(ii) and 5(a)(1)(B)(i). 23 2008 House Ethics Manual at 36. 

vidual or organization, including a corporation, labor union, or 

political action committee (PAC).20

The 1996 LEF Regulations do not explicitly limit contributions 

from business entities controlled by the same individual or group 

of individuals. 

b. Analysis 

Representative Young’s legal expense trust received $60,000 from 

twelve LLCs controlled by a businessman and his family members. 

Each of these LLCs is a separate legal entity with separate financial records. As a result, each LLC is a separate organization under 

the 1996 LEF Regulations and Representative Young’s legal expense trust was permitted to receive, and therefore is permitted to 

retain, these donations. 

However, the Committee has adopted revised Legal Expense 

Fund Regulations that will prohibit similar contributions in the 

future. 

B. COMMITTEE’S DISPOSITION OF THE OCE REFERRAL

According to the OCE referral, during the reporting period ending March 31, 2011, twelve LLCs owned by members of the 

Chouest family each made contributions of $5,000 to Representative Young’s legal expense trust. Based on the Committee’s review 

of information gathered during the 18(a) investigation, the 1996 

LEF Regulations, and long-standing Committee advice, multiple, 

legally separate organizations owned by the same individual or individuals were permitted to make contributions up to $5,000 per 

organization. Therefore, the Committee votes to dismiss the allegations, but is amending its LEF Regulations to prohibit similar contributions in the future. 

1. Contributions in Excess of the Annual Limit 

a. 1996 LEF Regulations 

As noted above, contributions to a legal expense fund are limited to $5,000 per year from an individual or organization, and, except 

as barred by law or regulation, contributions may be accepted from 

any individual or organization other than a federally registered lobbyist or an agent of a foreign principal. The 1996 LEF Regulations 

do not impose any limitation on contributions from entities or organizations controlled or owned by the same individual or individuals. 

The gift rule includes a general rule on the acceptance of gifts 

and 23 provisions that describe specific kinds of gifts that may be 

accepted.21 The general rule prohibits the acceptance of gifts from 

a registered lobbyist, an agent of a foreign principal, or a private 

entity that retains or employs such individuals, and limits the 

value of any gift from acceptable donors to less than $50 per gift, 

and a total annual limit of less than $100.22 In its guidance regarding the general gift rule, the Committee has stated that a gift from 

an individual affiliated with an organization is a gift from both the 

individual and the organization.23 The Committee’s guidance states 


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24 Id. 25 Id. at 38. 26 Id. 27 Id. 28 Id. (emphasis in original). 

that this ruling specifically applies to the general gift rule.24 However, the guidance also makes it clear that provisions applicable to 

the general gift rule are not necessarily applicable to specific gift 

rule exceptions, such as contributions to a legal expense fund.25

In addition, the 2008 House Ethics Manual also provides that a 

gift that meets one of the specific exceptions to the gift rule may 

be accepted even if it does not meet the requirements of the general gift rule exception.26 For example, if a gift meets all the requirements of a specific provision, the gift would be acceptable even 

when the donor is a registered lobbyist, an agent of a foreign principal, or an entity that retains or employs such individuals.27 Committee guidance provides: 

When a gift satisfies each of the requirements of any of 

the specific provisions of the gift rule on acceptable gifts— 

for example, a book under the ‘‘informational materials’’ 

provision (House Rule 25, clause 5(a)(3)(I))—the gift may 

be accepted even if its value is $50 or more. Furthermore, 

in that circumstance, the value of the gift does not count 

against the donor’s annual gift limitation of less than 

$100.28

The universe of rules applicable to a legal expense fund is contained within the legal expense fund regulations issued by the 

Committee—currently the 1996 LEF Regulations. Contributions to 

a legal expense fund are an exception to the gift rule which prohibits Members, officers, and House employees from receiving gifts. 

Whether a contribution to a legal expense fund is an exception to 

the gift rule, and therefore permissible, is solely governed by the 

1996 LEF Regulations issued by the Committee. This interpretation is consistent with the Committee’s guidance regarding other 

exceptions to the gift rule. For example, the Committee’s advice regarding the Foreign Gifts and Decorations Act (FGDA), and the 

Mutual Educational and Cultural Exchange Act (MEACA) has been 

that the universe of rules applicable to a gift under these provisions is contained within the relevant statute, and guidance provided by the Committee on aspects of the general gift rule does not 

apply to these types of gifts. 

The contributions made by the twelve LLCs to Representative 

Young’s legal expense trust were from separate entities, did not exceed $5,000, and were not from a lobbyist or an agent of a foreign 

principal. As such, the contributions were technically permissible 

under the 1996 LEF Regulations. 

b. House Rule XXIII, clause 2 

House Rule XXIII, clause 2 is applicable to conduct that may 

technically comply with relevant House Rules, but circumvents the 

spirit of the applicable Rule. Thus, even though the contributions 

were technically permissible under the 1996 LEF Regulations, if 

the contributions circumvented the spirit of the 1996 LEF Regulations governing contributions to a legal expense fund with Representative Young’s knowledge, Representative Young’s acceptance 


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29 An organization is defined by Black’s Law Dictionary as, ‘‘[a] body of persons (such as a 

union or corporation) formed for a common purpose.’’ Black’s Law Dictionary (9th ed. 2009), organization. 30 1996 LEF Regulations ¶ 10 (emphasis added). 31See House Rule XI, clauses 3(a)(2) and 3(b). 

of the contributions may be perceived as violative of clause 2 of 

House Rule XXIII. 

The 1996 LEF Regulations establish a $5,000 contribution limit 

per individual or organization.29 The Regulations also specifically 

state that contributions may be accepted from ‘‘any individual or 

organization, including a corporation . . .’’ other than as specifically 

barred by law or regulation.30 No law or regulation specifically prohibits contributions to a legal expense fund from separate organizations that are owned by the same individual or group of individuals—such as the corporations in this matter. Because the 1996 

LEF Regulations permit contributions from any organization, including corporations, and there is no law or regulation that prohibits contributions from corporations that are owned by the same 

individual or individuals, Representative Young’s acceptance of the 

contributions falls squarely within the language of the 1996 LEF 

Regulations. 

Furthermore, the evidence indicates that Representative Young 

inquired of his trustee about the requirements for related entities, 

and the advice he was given did appear to apply to the relevant 

corporate entities. The companies are separate legal entities, with 

separate functions, services, or products. While they are all owned 

by members of the same family, and the checks were all signed by 

the same family member, none of these facts clearly violate the 

plain rules or the advice of the trustee. 

To be clear, the Committee is concerned that five people and two 

trusts were in essence making twelve maximum contributions. 

However, the evidence, as described above, did not convince the 

Committee that Representative Young intended to violate the spirit 

of the 1996 LEF Regulations. Therefore, based on its findings, because the contributions did not violate any rule and because Representative Young’s conduct did not clearly violate the spirit of the 

Rules, the Committee determined that OCE’s referral should be 

dismissed. 

The Committee directed the Chairman, upon providing the notices required pursuant to House Rule XI, clause 3(b)(8)(A), and 

Committee Rule 17A(b)(2), to file this Report with the House, and 

copies of OCE’s Report and Findings in this matter, along with any 

response filed, all of which are made a part of this Report and appended hereto.31 The filing of this Report, along with its publication on the Committee’s Web site, shall serve as publication of 

OCE’s Report and Findings in this matter, pursuant to House Rule 

XI, clause 3(b)(8)(A), and Committee Rule 17A(b)(3) and 17A(c)(2). 

V. STATEMENT UNDER RULE XIII, CLAUSE 3(c) OF THE 

RULES OF THE HOUSE OF REPRESENTATIVES 

The Committee made no special oversight findings in this Report. 

No budget statement is submitted. No funding is authorized by any 

measure in this Report. 


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90 


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91 


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93 


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96 


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98 


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100 


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102 


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106 


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107 


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108 


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109 


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110 


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111 


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118 


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120 


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121 


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128 


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129 


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131 


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133 


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135 


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146 


rmajette on DSK2TPTVN1PROD with HEARINGInsert offset folio 152 here HR336.136