Calendar No. 419

103D CONGRESS

2D SESSION S. 1935

A BILL

To prohibit lobbyists and their clients from providlobbyists of certain expenditures. and to place limits on and require disclosure by meals, entertainment, reimbursements, or loans ing to legislative branch officials certain gifts,

APRIL 26 (legislative day, APRIL 11), 1994

Reported with an amendment and an amendment to the

title
II

Calendar No. 419

103D CONGRESS

2D SESSION S. 1935

To prohibit lobbyists and their clients from providing to legislative branch

officials certain gifts, meals, entertainment, reimbursements, or loans

and to place limits on and require disclosure by lobbyists of certain

expenditures.

IN THE SENATE OF THE UNITED STATES

MARCH 16 (legislative day, FEBRUARY 22), 1994

Mr. LAUTENBERG (for himself, Mr. WELLSTONE, Mr. FEINGOLD, and Mr.

BOREN) introduced the following bill; which was read twice and referred

to the Committee on Governmental Affairs

MARCH 17 (legislative day, FEBRUARY 22), 1994

Ordered; that if the Committee on Governmental Affairs has not reported the

bill by the close of business April 27, 1994, then the bill be discharged

and placed on the calendar

APRIL 26 (legislative day, APRIL 11), 1994

Reported by Mr. GLENN, with an amendment and an amendment to the title

[Strike out all after the enacting clause and insert the part printed in italic]

A BILL

To prohibit lobbyists and their clients from providing to

legislative branch officials certain gifts, meals, entertainment, reimbursements, or loans and to place limits on

and require disclosure by lobbyists of certain expenditures.
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•S 1935 RS

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. PROHIBITION ON CERTAIN GIFTS, MEALS, EN4 TERTAINMENT, REIMBURSEMENTS, AND

5 LOANS; NEW LIMITATIONS ON AND PUBLIC

6 DISCLOSURE OF CERTAIN EXPENDITURES.

7 (a) DEFINITIONS.—In this section—

8 (1) CLIENT.—The term ‘‘client’’ means an indi9 vidual or other person or entity (including a State

10 or local government and including a foreign principal

11 (as defined in section 1(b) of the Foreign Agents

12 Registration Act of 1938 (22 U.S.C. 611(b)) that

13 employs or retains another person for financial or

14 other compensation to conduct lobbying activities on

15 the person’s or entity’s behalf. An organization, any

16 employees of which act as lobbyists on the organiza17 tion’s behalf, is both a client and an employer of

18 such employees. In the case of a coalition or associa19 tion that employs or retains other persons to con20 duct lobbying activities on behalf of its membership,

21 the client is the coalition or association and not its

22 individual members.

23 (2) COVERED EXECUTIVE BRANCH OFFICIAL.—

24 The term ‘‘covered executive branch official’’

25 means—
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1 (A) the President or the President-elect;

2 (B) the Vice President or the Vice Presi3 dent-elect;

4 (C) an officer or employee (other than a

5 clerical or secretarial employee) of the Execu6 tive Office of the President or any individual

7 functioning in the capacity of such an officer or

8 employee on an unpaid basis;

9 (D) an officer or employee serving in a po10 sition in level I, II, III, IV, or V of the Execu11 tive Schedule, as designated by statute or

12 Executive order;

13 (E) an officer or employee serving in a

14 Senior Executive Service position, as defined in

15 section 3132(a)(2) of title 5, United States

16 Code;

17 (F) a member of the uniformed services

18 whose pay grade is at or above O–7 under sec19 tion 201 of title 37, United States Code; and

20 (G) an officer or employee serving in a po21 sition of a confidential, policy-determining, pol22 icy-making, or policy-advocating character de23 scribed in section 7511(b)(2) of title 5, United

24 States Code.
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•S 1935 RS

1 (3) COVERED LEGISLATIVE BRANCH OFFI2 CIAL.—

3 (A) IN GENERAL.—The term ‘‘covered leg4 islative branch official’’ means—

5 (i) a Member of Congress or a

6 Member-elect of Congress;

7 (ii) an elected officer of either House

8 of Congress;

9 (iii) any employee of a Member of

10 Congress or of a committee of either

11 House of Congress;

12 (iv) any employee on the leadership

13 staff of the House of Representatives and

14 any employee on the leadership staff of the

15 Senate;

16 (v) any employee of a joint committee

17 of the Congress; and

18 (vi) any employee of a working group

19 or caucus organized to provide legislative

20 services or other assistance to Members of

21 Congress.

22 (B) DEFINITIONS OF TERMS USED IN SUB23 PARAGRAPH (A).—In subparagraph (A)—

24 (i) the terms ‘‘employee on the leader25 ship staff of the House of Representatives’’
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1 and ‘‘employee on the leadership staff of

2 the Senate’’ have the meanings stated in

3 section 207(e)(4) of title 18, United States

4 Code;

5 (ii) the term ‘‘employee’’ includes an

6 individual functioning in the capacity of an

7 employee described in subparagraph (A) on

8 an unpaid basis but does not include a

9 clerical or secretarial employee; and

10 (iii) the term ‘‘Member of Congress’’

11 means a Senator or a Representative in, or

12 Delegate or Resident Commissioner to, the

13 Congress.

14 (4) COVERED PERSON OR ENTITY.—The term

15 ‘‘covered person or entity’’ means a covered legisla16 tive branch official, an entity that is maintained or

17 controlled by a covered legislative branch official,

18 and any other person or entity to whom or to which

19 an item described in subsection (b) is provided on

20 behalf of a covered legislative branch official.

21 (5) EMPLOYEE.—Except as provided in para22 graph (3)(B)(ii), the term ‘‘employee’’ means an in23 dividual who is an officer, employee, partner, direc24 tor, or proprietor of an organization, but does not

25 include—
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1 (A) independent contractors; or

2 (B) volunteers who receive no financial or

3 other compensation from the organization for

4 their services.

5 (6) GRASS ROOTS LOBBYING COMMUNICA6 TION.—The term ‘‘grass roots lobbying communica7 tion’’ means—

8 (A) a communication that attempts to in9 fluence any legislation through an attempt to

10 affect the opinions of the general public or any

11 segment thereof as described in paragraph

12 (1)(A) of section 4911(d) of the Internal

13 Revenue Code of 1986;

14 (B) a communication between an organiza15 tion and any bona fide member of the organiza16 tion to directly encourage the member to make

17 a communication as provided in paragraph

18 (1)(B) of section 4911(d) of the Internal

19 Revenue Code of 1986; and

20 (C) a communication between an organiza21 tion and any bona fide member of the organiza22 tion to directly encourage the member to urge

23 persons other than members to communicate as

24 provided in subparagraph (A) of this paragraph
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1 or paragraph (1)(B) of section 4911(d) of the

2 Internal Revenue Code of 1986.

3 (7) LOBBYING ACTIVITIES.—

4 (A) IN GENERAL.—The term ‘‘lobbying ac5 tivities’’ means lobbying contacts and efforts in

6 support of such contacts, including preparation

7 and planning activities, research and other

8 background work that is intended, at the time

9 of its preparation, for use in contacts, and co10 ordination with the lobbying activities of others,

11 and, except as provided in subparagraph (B),

12 includes—

13 (i) a grass roots lobbying communica14 tion; and

15 (ii) a communication described in

16 paragraph (8)(B) (iii), (v), (vii), or (viii),

17 to the extent that such activities or communica18 tions are made in direct support of a lobbying

19 contact.

20 (B) EXCLUSION OF RELIGIOUS ORGANIZA21 TIONS.—The term ‘‘lobbying activities’’ does

22 not include grass roots lobbying communica23 tions by churches, their integrated auxiliaries,

24 and conventions or associations of churches

25 that are exempt from filing Federal income tax
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1 returns under paragraph (2)(A)(i) of section

2 6033(a) of the Internal Revenue Code of 1986,

3 unless such communications are made by a per4 son or organization that is required by law to

5 be identified in a lobbyist registration form.

6 (8) LOBBYING CONTACT.—

7 (A) IN GENERAL.—The term ‘‘lobbying

8 contact’’ means an oral or written communica9 tion (including an electronic communication) to

10 a covered executive branch official or a covered

11 legislative branch official that is made on behalf

12 of a client with regard to—

13 (i) the formulation, modification, or

14 adoption of Federal legislation (including

15 legislative proposals);

16 (ii) the formulation, modification, or

17 adoption of a Federal regulation, Executive

18 order, or any other program, policy, or po19 sition of the United States Government;

20 (iii) the administration or execution of

21 a Federal program or policy (including the

22 negotiation, award, or administration of a

23 Federal contract, grant, loan, permit, or li24 cense), but not including a communication
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1 that is made to a covered executive branch

2 official—

3 (I) who is serving in a Senior Ex4 ecutive Service position; or

5 (II) who is a member of the uni6 formed services whose pay grade is

7 lower than O–9 under section 201 of

8 title 37, United States Code,

9 in the agency responsible for taking such

10 administrative or executive action; or

11 (iv) the nomination or confirmation of

12 a person for a position subject to confirma13 tion by the Senate.

14 (B) EXCEPTIONS.—The term ‘‘lobbying

15 contact’’ does not include a communication that

16 is—

17 (i) made by a public official acting in

18 an official capacity;

19 (ii) made by a representative of a

20 media organization if the purpose of the

21 communication is gathering and dissemi22 nating news and information to the public;

23 (iii) made in a speech, article, publica24 tion, or other material that is widely dis25 tributed to the public through radio, tele-
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1 vision, cable television, or any other me2 dium of mass communication;

3 (iv) made on behalf of a government

4 of a foreign country or a foreign political

5 party and disclosed under the Foreign

6 Agents Registration Act of 1938 (22

7 U.S.C. 611 et seq.);

8 (v) a request for a meeting, a request

9 for the status of a Federal action, or other

10 similar contact, if there is no attempt to

11 influence a covered executive branch offi12 cial or a covered legislative branch official;

13 (vi) made in the course of participa14 tion in an advisory committee subject to

15 the Federal Advisory Committee Act (5

16 U.S.C. App.);

17 (vii) testimony given before a commit18 tee, subcommittee, or task force of the

19 Congress, or submitted for inclusion in the

20 public record of a hearing conducted by

21 such committee, subcommittee, or task

22 force;

23 (viii) information provided in writing

24 in response to a written request for specific

25 information from a covered executive
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1 branch official or a covered legislative

2 branch official;

3 (ix) required by subpoena, civil inves4 tigative demand, or otherwise compelled by

5 statute, regulation, or other action of the

6 Congress or an agency;

7 (x) made in response to a notice in

8 the Federal Register, Commerce Business

9 Daily, or other similar publication solicit10 ing communications from the public and

11 directed to the agency official specifically

12 designated in the notice to receive such

13 communications;

14 (xi) not possible to report without dis15 closing information, the unauthorized dis16 closure of which is prohibited by law;

17 (xii) made to officials in an agency

18 with regard to—

19 (I) a judicial proceeding or a

20 criminal or civil law enforcement in21 quiry, investigation, or proceeding; or

22 (II) a filing or proceeding that

23 the Government is specifically re24 quired by statute or regulation to
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1 maintain or conduct on a confidential

2 basis,

3 if that agency is charged with responsibil4 ity for such proceeding, inquiry, investiga5 tion, or filing;

6 (xiii) made in compliance with written

7 agency procedures regarding an adjudica8 tion conducted by the agency under section

9 554 of title 5, United States Code, or sub10 stantially similar provisions;

11 (xiv) written comments filed in the

12 course of a public proceeding or other com13 munications that are made on the record

14 in a public proceeding;

15 (xv) a petition for agency action made

16 in writing pursuant to established agency

17 procedures;

18 (xvi) made on behalf of an individual

19 with regard to that individual’s benefits,

20 employment, or other personal matters in21 volving only that individual, except that

22 this subclause does not apply to any com23 munication with respect to the formulation,

24 modification, or adoption of private legisla25 tion for the relief of that individual;
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1 (xvii) a disclosure by an individual to

2 the appropriate authority on account of

3 which the individual is protected against

4 adverse personnel actions, or other repris5 als, under the amendments made by the

6 Whistleblower Protection Act of 1989, the

7 Inspector General Act of 1978, or other

8 law; and

9 (xviii) made on behalf of a church, its

10 integrated auxiliary, or convention or asso11 ciation of churches that is exempt from fil12 ing a Federal income tax return under sec13 tion 6033(a)(2)(A)(i) of the Internal Reve14 nue Code of 1986 if the communication

15 constitutes the free exercise of religion or

16 is for the purpose of protecting the right to

17 the free exercise of religion.

18 (9) LOBBYIST.—The term ‘‘lobbyist’’ means an

19 individual who is employed or retained by a client

20 for financial or other compensation to perform serv21 ices that include lobbying contacts, other than an in22 dividual whose lobbying activities constitute less

23 than 10 percent of the time engaged in the services

24 provided by such individual to that client.
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1 (10) MARKET VALUE.—The term ‘‘market

2 value’’, as applied to a gift, means the retail cost

3 that a person would incur to purchase the gift or,

4 if the cost cannot be ascertained, a reasonable esti5 mate of the retail cost. The market value of a gift

6 of a ticket entitling the holder to food, refreshment,

7 or entertainment is the retail cost of similar food,

8 refreshment, or entertainment.

9 (11) MEDIA ORGANIZATION.—The term ‘‘media

10 organization’’ means an organization engaged in dis11 seminating information to the general public through

12 a newspaper, magazine, other publication, radio, tel13 evision, cable television, or other medium of mass

14 communication.

15 (12) ORGANIZATION.—The term ‘‘organization’’

16 means a corporation, company, foundation, associa17 tion, labor organization, firm, partnership, society,

18 joint stock company, or group of organizations.

19 (13) PRINCIPAL OF A CLIENT.—The term

20 ‘‘principal of a client’’ means an individual who is an

21 officer, director, or partner of a client (but not in22 cluding an individual who is a public official).

23 (14) PUBLIC OFFICIAL.—The term ‘‘public offi24 cial’’ means an elected official, appointed official, or

25 an employee of—
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1 (A) a Federal, State, or local unit of

2 government in the United States other than—

3 (i) a college or university that is an

4 agency or instrumentality of the govern5 ment of a State or of a local unit of gov6 ernment thereof or that is owned or oper7 ated by such a government or by any agen8 cy or instrumentality of 1 or more such

9 governments;

10 (ii) a government-sponsored enterprise

11 (as defined in section 3 of the Congres12 sional Budget and Impoundment Control

13 Act of 1974 (2 U.S.C. 622)); or

14 (iii) a public utility, including an en15 tity that provides gas, electricity, water,

16 communications and is an agency or in17 strumentality of the government of a State

18 or States or of a local unit of government

19 of a State or is owned, controlled, or oper20 ated by such a government or by any agen21 cy or instrumentality of 1 or more such

22 governments;

23 (B) a Government corporation (as defined

24 in section 9101 of title 31, United States

25 Code);
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1 (C) an organization of State or local elect2 ed or appointed officials (other than officials of

3 an entity described in subparagraph (A));

4 (D) an Indian tribe (as defined in section

5 4(e) of the Indian Self-Determination and Edu6 cation Assistance Act (25 U.S.C. 450b(e)));

7 (E) a national or State political party or

8 any organizational unit thereof; or

9 (F) a national, regional, or local unit of a

10 foreign government.

11 (15) STATE.—The term ‘‘State’’ means a State,

12 the District of Columbia, and a commonwealth, ter13 ritory, or possession of the United States.

14 (b) PROHIBITION OF GIFTS OF TRAVEL, ENTERTAIN15 MENT, FOOD, LODGING, AND OTHER BENEFITS.—

16 (1) IN GENERAL.—Except as provided in sub17 sections (c) and (d), it shall be unlawful for a lobby18 ist or a client of a lobbyist (including a principal of

19 a client) to provide, directly or indirectly, to a cov20 ered person or entity an item described in paragraph

21 (2) using funds of—

22 (A) the lobbyist (including personal funds

23 of the lobbyist or funds of the firm of which the

24 lobbyist is a member or employee) or client (in-
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1 cluding personal funds of a client who is an in2 dividual or of a principal of a client);

3 (B) a multicandidate political committee

4 (as defined in section 315(a)(4) of the Federal

5 Election Campaign Act of 1971 (2 U.S.C.

6 441a(a)(4))) that is directly or indirectly estab7 lished, administered, or financially supported by

8 a lobbyist or client; or

9 (C) any other individual, person, or entity

10 at the direction, recommendation, or other spec11 ification of the lobbyist or client of the lobbyist.

12 (2) PROHIBITED ITEMS.—An item is described

13 in this paragraph if it is 1 of the following:

14 (A) TRAVEL, ENTERTAINMENT, FOOD, AND

15 LODGING.—Payment for local or long-distance

16 transportation, entertainment, food, or lodging,

17 whether provided in kind, by purchase of a tick18 et, by payment in advance or by reimburse19 ment, or otherwise.

20 (B) REIMBURSEMENTS.—Reimbursement

21 of an expense.

22 (C) LOANS OR CONTRIBUTIONS.—A loan

23 or contribution.

24 (D) GIFTS.—Any other item (including a

25 service) of value.
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1 (c) EXCEPTION FOR CERTAIN DISCLOSED EXPENDI2 TURES.—

3 (1) IN GENERAL.—Subsection (b) shall not

4 apply to an expenditure made by a lobbyist or client

5 to provide to a covered person or entity an item de6 scribed in paragraph (3) if a lobbyist discloses, in

7 accordance with paragraph (2), the expenditure of

8 the lobbyist or client in the next lobbying disclosure

9 report that the lobbyist is required by law to submit.

10 (2) DISCLOSURE.—With respect to each ex11 penditure for an item described in paragraph (3), a

12 lobbyist shall disclose—

13 (A) the name and position of the covered

14 person or entity to whom or which or on behalf

15 of whom or which the expenditure was made;

16 (B) a description of the item for which the

17 expenditure was made, including, in the case of

18 a charitable contribution, the name of the per19 son or entity to whom or which the contribution

20 was made;

21 (C) the date on which the expenditure was

22 made; and

23 (D) the amount of the expenditure.
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1 (3) EXPENDITURES SUBJECT TO DISCLO2 SURE.—An item is described in this paragraph if it

3 is 1 of the following:

4 (A) CERTAIN TRAVEL-RELATED EXPENDI5 TURES.—(i) Necessary travel-related expendi6 tures made by a lobbyist or client for a covered

7 legislative branch official, to the extent limited

8 by clause (iii), in connection with meetings,

9 speaking engagements, fact finding trips, and

10 similar events directly related to the official du11 ties of the official if—

12 (I) the expenditure covers the cost of

13 the trip for a period of not more than—

14 (aa) 3 consecutive days (exclud15 ing travel days) in the case of domes16 tic travel and 7 consecutive days (ex17 cluding travel days) in the case of

18 international travel; and

19 (bb) 24 hours before or after

20 such person’s actual participation in

21 the event in the case of domestic trav22 el or 48 hours before or after such

23 person’s actual participation in the

24 event in the case of international trav25 el; and
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1 (II) the official has caused the follow2 ing information to be published in the Con3 gressional Record in advance of the travel

4 (unless advance publication is not possible

5 because the travel arrangements cannot be

6 made in time for the information to be

7 published while the Senate or the House of

8 Representatives, as appropriate, is in ses9 sion or for other good reason (in which

10 case the information shall be provided in

11 advance of the travel to the Clerk of the

12 House of Representatives or the Secretary

13 of the Senate, as appropriate, who shall

14 make the information available to the pub15 lic immediately and shall cause the infor16 mation to be published in the next Con17 gressional Record)):

18 (aa) The name of the covered

19 legislative branch official.

20 (bb) The dates and itinerary of

21 such travel.

22 (cc) A detailed statement of the

23 purposes of such travel.

24 (dd) The identity of the party

25 making the expenditure.
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1 (ee) The anticipated amount of

2 the expenditure.

3 (ii) The requirements of clause (i)(I) may

4 be waived in exceptional circumstances if the

5 covered legislative branch official obtains a writ6 ten statement from the Select Committee on

7 Ethics of the Senate or the Committee on

8 Standards of Official Conduct of the House of

9 Representatives, as appropriate, that approves

10 the waiver and explains the justification for the

11 waiver. That committee shall cause the state12 ment to be published in the Congressional

13 Record in advance of the travel (unless advance

14 publication is not possible because the waiver is

15 granted at a time when the Senate or the

16 House of Representatives, as appropriate, is not

17 in session or for other good reason (in which

18 case the committee shall, in advance of the

19 travel, provide a copy of the statement to the

20 Clerk of the House of Representatives or the

21 Secretary of the Senate, as appropriate, who

22 shall make the information available to the pub23 lic immediately and shall cause the statement to

24 be published in the next Congressional

25 Record)).
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•S 1935 RS

1 (iii) Necessary travel-related expenditures

2 are limited to expenditures for a covered legisla3 tive branch official’s transportation, lodging,

4 conference fees and materials, and meals of5 fered to all attendees as an integral part of the

6 event, including reimbursement for necessary

7 transportation whether or not such transpor8 tation occurs within the periods described in

9 clause (i)(I), but do not include expenditures

10 for—

11 (I) recreational activities, such as

12 greens fees, ski lift tickets, tennis court

13 time, theater tickets, tickets to sporting

14 events, and similar items;

15 (II) entertainment, other than that

16 provided in connection with meals offered

17 to all attendees as an integral part of the

18 event; or

19 (III) spouses and immediate family

20 members of covered legislative branch offi21 cials.

22 (iv) An event the activities of which are

23 substantially recreational shall not be consid24 ered to be directly related to the official duties

25 of a covered legislative branch official.
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1 (B) PERSONAL FRIENDSHIP.—Any expend2 iture for an item that is given by a lobbyist or

3 client to a Member of Congress that is moti4 vated by a personal friendship as described in

5 subsection (d)(4).

6 (C) CHARITABLE CONTRIBUTIONS.—A

7 charitable contribution (as defined in section

8 170(c) of the Internal Revenue Code of 1986)

9 knowingly made by a lobbyist or client to a per10 son or entity that is not maintained or con11 trolled by a covered legislative branch official on

12 the basis of a solicitation made by a covered

13 legislative branch official described in sub14 section (a)(3)(A) (iii), (iv), (v), or (vi).

15 (4) NOTIFICATION.—Not less than 3 weeks

16 after an expenditure required to be reported under

17 this subsection is made, the lobbyist or client who

18 made the expenditure or for whom the expenditure

19 was made shall provide, in a standard format, to any

20 covered person or entity whose name the lobbyist or

21 client intends for the lobbyist to include in the next

22 lobbying disclosure report on itemized expenditures

23 under this subsection that the lobbyist is required by

24 law to submit, a complete list of the information

25 that the lobbyist intends to disclose relative to that
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1 covered person or entity. A lobbyist or client shall

2 not submit a report until each covered legislative

3 branch official identified in the report as a bene4 ficiary of an expenditure (including an official on

5 whose behalf an expenditure has been made for an6 other person or entity) has been notified of the ex7 penditure for a period of at least 15 days prior to

8 the submission. A lobbyist shall not list in a report

9 referred to in this paragraph any information rel10 ative to a covered person or entity who—

11 (A) was not a beneficiary of such an ex12 penditure (including a covered legislative

13 branch official on whose behalf an expenditure

14 was made for another person or entity); or

15 (B) reimburses the person making the ex16 penditure the full amount of such expenditure

17 within 30 days of the receipt of notification

18 under this paragraph.

19 (d) EXCEPTIONS.—The following are not subject to

20 subsection (b) or (c), except as provided in subsection

21 (c)(3)(B):

22 (1) MARKET VALUE PAID.—Anything for which

23 market value is paid by the recipient.

24 (2) POLITICAL CONTRIBUTIONS.—A contribu25 tion (as defined in section 301 of the Federal Elec-
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1 tion Campaign Act of 1971 (2 U.S.C. 431)) that is

2 lawfully made under that Act.

3 (3) LITTLE INTRINSIC VALUE.—An item of lit4 tle intrinsic value such as a greeting card or a per5 sonalized item such as a plaque, certificate, or tro6 phy that is intended solely for recognition of a cov7 ered person or entity.

8 (4) FAMILY MEMBERS AND PERSONAL

9 FRIENDS.—

10 (A) IN GENERAL.—An item described in

11 subsection (b) given under circumstances that

12 make it clear that the item is given for a

13 nonbusiness purpose and is motivated by a fam14 ily relationship or personal friendship (including

15 a dating relationship) and not by the position of

16 the recipient. In determining if the giving of an

17 item is motivated by a family relationship or

18 personal friendship, at least the following fac19 tors shall be considered:

20 (i) The history of the relationship be21 tween the individual giving the item and

22 the individual receiving the item, including

23 whether or not items have previously been

24 exchanged by such individuals.
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1 (ii) Whether the individual who gave

2 the item personally paid for the item.

3 (iii) Whether the individual who gave

4 the item also at the same time gave the

5 same or similar items to other covered per6 sons or entities.

7 (B) TAX DEDUCTION SOUGHT OR REIM8 BURSEMENT ACCEPTED.—(i) The giving of an

9 item shall not be considered to be motivated by

10 a family relationship or personal friendship if

11 the individual giving the item—

12 (I) seeks to deduct the value of such

13 item as a business expense on the individ14 ual’s Federal income tax return; or

15 (II) accepts direct or indirect reim16 bursement or compensation for the item

17 from a firm of which the individual is a

18 member or employee or from a client.

19 (ii) For purposes of clause (i), indirect re20 imbursement or compensation for an item in21 cludes—

22 (I) an expenditure from an expense

23 account made available to an individual by

24 the individual’s employer, firm, or client;

25 and
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1 (II) a fee charged by a lobbyist to a

2 client for the purpose of compensating the

3 lobbyist for the cost of an item.

4 (5) RETURNED ITEMS.—Items that are not

5 used and are promptly returned to the donor.

6 (6) CERTAIN EVENTS SPONSORED BY CLI7 ENTS.—

8 (A) IN GENERAL.—Except as provided in

9 subparagraph (D), attendance, food, instruc10 tion, and materials provided to a covered legis11 lative branch official in connection with an

12 event described in subparagraph (B) or (C) if

13 such food, instruction, and materials are unso14 licited by the recipient and made available by a

15 client that is the sponsor of the event to all

16 attendees as an integral part of the event.

17 (B) BROADLY ATTENDED EVENTS.—An

18 event is described in this subparagraph if it is

19 a broadly attended event, such as a convention,

20 conference, symposium, banquet, reception, or

21 similar event.

22 (C) OTHER EVENTS.—An event is de23 scribed in this paragraph if it is a bona fide

24 meeting or similar event of an organization at

25 which the covered legislative branch official par-
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1 ticipates, unless the value of any food provided

2 to the official in connection with the event ex3 ceeds $20.

4 (D) EXCEPTIONS.—This paragraph shall

5 not apply to—

6 (i) travel expenses;

7 (ii) lodging;

8 (iii) entertainment collateral to an

9 event;

10 (iv) a meal taken other than in a

11 group setting to which all other attendees

12 are invited;

13 (v) a concert, play, motion picture,

14 sporting event, or similar public entertain15 ment event;

16 (vi) a conference, retreat, or similar

17 event for or on behalf of covered legislative

18 branch officials that is sponsored by or af19 filiated with an official congressional orga20 nization; or

21 (vii) an event that is hosted or

22 cohosted with, or in honor of, 1 or more

23 covered legislative branch officials.
29

•S 1935 RS

1 (7) REWARDS AND PRIZES.—Rewards and

2 prizes given to competitors in contests or events, in3 cluding random drawings open to the public.

4 (8) LOANS.—Loans from financial institutions

5 on terms generally available to the public.

6 (9) WIDE AVAILABILITY.—Opportunities and

7 benefits, including favorable rates and commercial

8 discounts, available to the public or to a class con9 sisting of all Government employees whether or not

10 restricted on the basis of geographical consider11 ations.

12 (10) PENSIONS.—Pension and other benefits

13 resulting from continued participation in an em14 ployee welfare and benefits plan maintained by a

15 former employer.

16 (11) PAYMENT BY THE GOVERNMENT.—Any17 thing that is paid for by the Government or secured

18 by the Government under Government contract.

19 (12) STATUTORY AUTHORITY.—Any gift accept20 ed under specific statutory authority except section

21 901 of the Ethics Reform Act of 1989 (2 U.S.C.

22 31–2).

23 (13) CERTAIN MEMBERSHIP FEES.—Reduced

24 membership or other fees for participation in organi25 zational activities offered to all Government employ-
30

•S 1935 RS

1 ees by professional organizations if the only restric2 tions on membership relate to professional qualifica3 tions.

4 (14) AVAILABILITY TO GROUP OR CLASS NOT

5 RELATED TO CONGRESSIONAL EMPLOYMENT.—Op6 portunities and benefits offered to members of a

7 group or class in which membership is unrelated to

8 congressional employment.

9 (15) AVAILABILITY TO MEMBERS OF CERTAIN

10 ORGANIZATIONS.—Opportunities and benefits offered

11 to members of an organization, such as a credit

12 union, in which membership is related to congres13 sional employment if similar benefits are broadly

14 available to large segments of the public through or15 ganizations of similar size.

16 (16) OUTSIDE BUSINESS OR EMPLOYMENT.—

17 Gifts resulting from the covered legislative branch

18 official’s outside business or employment activities,

19 in circumstances in which it is clear that such bene20 fits have not been offered or enhanced because of

21 the covered legislative branch official’s official sta22 tus.

23 (17) BUSINESS OR EMPLOYMENT OF SPOUSE.—

24 Gifts resulting from the business or employment ac25 tivities of a covered legislative branch official’s
31

•S 1935 RS

1 spouse in circumstances in which it is clear that

2 such benefits have not been offered or enhanced be3 cause of the covered legislative branch official’s offi4 cial position.

5 (18) INFORMATIONAL MATERIALS.—Informa6 tional materials that are sent to a covered legislative

7 branch official’s office in the form of books, articles,

8 periodicals, other written materials, audio tapes, vid9 eotapes, or other forms of communication.

10 (19) HOME STATE PROMOTIONAL ITEMS.—

11 Home State products, food, or other items of mini12 mal value used primarily for promotional purposes.

13 (20) MODEST ITEMS OF FOOD OR REFRESH14 MENT.—Modest items of food or refreshment, such

15 as soft drinks, coffee, or doughnuts, offered other

16 than as part of a meal.

17 (21) HONORARY DEGREES.—An honorary de18 gree provided to a covered legislative branch official.

19 (e) CLIENTS.—

20 (1) NOTICE TO CLIENTS.—A lobbyist shall by

21 written notice inform any client of the lobbyist of the

22 requirements of this section applicable to the client.

23 Such notice shall be provided at the time at which

24 the lobbyist registers on behalf of the client and at

25 the beginning of each reporting period.
32

•S 1935 RS

1 (2) NOTICE BY CLIENTS.—If a client of a lob2 byist makes an expenditure that the lobbyist will be

3 required to report under subsection (c), the client

4 shall promptly notify the lobbyist of such expendi5 ture. Failure to provide such notice shall be consid6 ered to be a violation of this Act.

7 (f) PROHIBITION OF PROVISION OF RECREATIONAL

8 TRAVEL.—It shall be unlawful for any individual or other

9 person or entity to provide for travel-related expenditures

10 (including transportation, lodging, food, and entertain11 ment) in connection with travel by a covered legislative

12 branch official, the activities of which travel are substan13 tially recreational, unless the provision for such expendi14 tures is made under circumstances that make it clear that

15 the expenditures are provided for a nonbusiness purpose

16 and are motivated by a family relationship or personal

17 friendship, and not by the position of the official, in ac18 cordance with subsection (d)(4).

19 (g) GIFTS TO SPOUSES AND FAMILY MEMBERS.—

20 For purposes of this section, an item given to the spouse

21 or an immediate family member of a covered legislative

22 branch official shall be considered to be given on behalf

23 of the official.

24 (h) INDIRECT PAYMENTS FOR CERTAIN EVENTS.—

25 For purposes of this section, a contribution to or expendi-
33

•S 1935 RS

1 ture on behalf of a charitable or other organization that

2 is made by a lobbyist or client of a lobbyist shall be consid3 ered to be an indirect payment on behalf of a covered legis4 lative branch official if the lobbyist or client knows or rea5 sonably should know that the contribution, or a substan6 tial portion thereof, will be used to underwrite travel, food,

7 entertainment or other expenses associated with the par8 ticipation of 1 or more covered legislative branch officials

9 in an event or events sponsored by the organization.

10 (i) PENALTIES.—An individual or entity that violates

11 this section shall be subject to penalties in accordance with

12 S. 349, the Lobbying Disclosure Act of 1993, as approved

13 by the Senate on May 6, 1993.

14 (j) REGULATIONS.—The President or the President’s

15 designee shall publish in the Federal Register proposed

16 regulations to implement this section not later than 270

17 days after the date of enactment of this section. Not later

18 than the date that is 1 year after the date of enactment

19 of this Act, the President or the President’s designee shall

20 publish in the Federal Register final regulations to imple21 ment this section.

22 (k) EFFECTIVE DATE.—With the exception of sub23 section (j), this section shall become effective on the date

24 that is 1 year after the date of enactment of this Act.

25 (l) SEVERABILITY.—
34

•S 1935 RS

1 (1) IN GENERAL.—If any provision of this sec2 tion, or the application thereof, is held invalid, the

3 validity of the remainder of this section and the ap4 plication of such provision to other persons and cir5 cumstances shall not be affected thereby.

6 (2) DISCLOSURE OF ACTIVITY IF THE PROHIBI7 TION OF SUCH ACTIVITY IS HELD INVALID.—If any

8 provision of this section that prohibits an activity by

9 a lobbyist or a client of a lobbyist is held invalid, a

10 lobbyist or client shall be required to disclose such

11 activity, pursuant to regulations promulgated by the

12 President or the President’s designee.

13 (m) STUDY.—Not later than 18 months after the ef14 fective date of this section, the President or the Presi15 dent’s designee shall submit a report to the Congress that

16 evaluates this section and identifies any significant prob17 lems that may have arisen in the implementation of this

18 section. The report shall include any relevant statutory

19 changes that the President or the President’s designee

20 may propose.

21 SECTION 1. SHORT TITLE.

22 This Act may be cited as the ‘‘Congressional Gifts Re23 form Act’’.
35

•S 1935 RS

1 SEC. 2. AMENDMENT TO THE SENATE RULES.

2 Rule XXXV of the Standing Rules of the Senate is

3 amended to read as follows:

4 ‘‘RULE XXXV

5 ‘‘GIFTS

6 ‘‘1. (a) No Member, officer, or employee of the Senate,

7 or the spouse or dependent thereof, shall knowingly accept—

8 ‘‘(1) any gift provided directly or indirectly by

9 a person registered as a lobbyist or a foreign agent

10 under the Federal Regulation of Lobbying Act, the

11 Foreign Agents Registration Act, or any successor

12 statute;

13 ‘‘(2) any gift having a value of $20 or more from

14 any other person; or

15 ‘‘(3) gifts having a value of less than $20 from

16 the same or different sources on a basis so frequent

17 that a reasonable person would be led to believe the

18 Member, officer, or employee is using his public office

19 for private gain.

20 ‘‘(b) For the purpose of this rule, the term ‘gift’ means

21 any gratuity, favor, discount, entertainment, hospitality,

22 loan, forbearance, or other item having monetary value. The

23 term includes gifts of services, training, transportation,

24 lodging, and meals, whether provided in kind, by purchase

25 of a ticket, payment in advance, or reimbursement after the

26 expense has been incurred.
36

•S 1935 RS

1 ‘‘(c)(1) The following items are gifts subject to the re2 strictions in subparagraph (a)—

3 ‘‘(A) a financial contribution or an expenditure

4 relating to a conference, retreat, or similar event for

5 or on behalf of Members, officers, or employees; and

6 ‘‘(B) a charitable contribution (as defined in sec7 tion 170(c) of the Internal Revenue Code of 1986)

8 made in lieu of an honorarium.

9 ‘‘(2) The following items are subject to the restrictions

10 in subparagraph (a)(1)—

11 ‘‘(A) an item provided by a lobbyist or a foreign

12 agent which is paid for, charged to, or reimbursed by

13 a client of such lobbyist or foreign agent;

14 ‘‘(B) an item provided by a lobbyist or a foreign

15 agent to an entity that is maintained or controlled by

16 a Member, officer, or employee;

17 ‘‘(C) a charitable contribution made on the basis

18 of a designation, recommendation, or other specifica19 tion made to a lobbyist or a foreign agent by a Mem20 ber, officer, or employee; and

21 ‘‘(D) a contribution and other payment by a lob22 byist or foreign agent to a legal expense fund estab23 lished for the benefit of a Member, officer, or em24 ployee.
37

•S 1935 RS

1 ‘‘(d) The following items are not gifts subject to the

2 restrictions in subparagraph (a):

3 ‘‘(1) Any item for which the Member, officer, or

4 employee pays the market value.

5 ‘‘(2) A contribution, as defined in the Federal

6 Campaign Act of 1971 (2 U.S.C. 431 et seq.) that is

7 lawfully made under that Act.

8 ‘‘(3) Anything provided under circumstances

9 that clearly indicate, in accordance with paragraph

10 2(a), that it is provided for a nonbusiness purpose

11 and is motivated by a family relationship or personal

12 friendship and not by the position of the Member, of13 ficer, or employee.

14 ‘‘(4) Items which are not used and which are

15 promptly returned to the donor.

16 ‘‘(5) A food or refreshment item of minimal

17 value, such as a soft drink, coffee, or doughnut offered

18 other than as part of a meal.

19 ‘‘(6) Benefits resulting from the business or em20 ployment activities of the spouse of a Member, officer,

21 or employee, if such benefits have not been offered or

22 enhanced because of the official position of such Mem23 ber, officer, or employee.
38

•S 1935 RS

1 ‘‘(7) Pension and other benefits resulting from

2 continued participation in an employee welfare and

3 benefits plan maintained by a former employer.

4 ‘‘(8) Informational materials that are sent to the

5 office of the Member, officer, or employee in the form

6 of books, articles, periodicals, other written materials,

7 audio tapes, videotapes, or other forms of communica8 tion.

9 ‘‘(e) The restrictions in clauses (2) and (3) of subpara10 graph (a) shall not apply to the following:

11 ‘‘(1) Meals, lodging, and other benefits—

12 ‘‘(A) resulting from the outside business or

13 employment activities of the Member, officer, or

14 employee (or other outside activities that are not

15 connected to the duties of the Member, officer, or

16 employee as an officeholder), if such benefits have

17 not been offered or enhanced because of the offi18 cial position of the Member, officer, or employee;

19 or

20 ‘‘(B) customarily provided by a prospective

21 employer in connection with bona fide employ22 ment discussions.

23 ‘‘(2) Awards or prizes which are given to com24 petitors in contests or events open to the public, in25 cluding random drawings.
39

•S 1935 RS

1 ‘‘(3) Honorary degrees and other bona fide

2 awards presented in recognition of public service and

3 available to the general public (and associated meals

4 and entertainment provided in the presentation of

5 such degrees and awards).

6 ‘‘(4) Donations of products from the State that

7 the Member represents that are intended primarily

8 for promotional purposes, such as display or free dis9 tribution, and are of minimal value to any individ10 ual recipient.

11 ‘‘(5) Meals and entertainment provided to a

12 Member or an employee of a Member in the Member’s

13 home State, subject to reasonable limitations, to be es14 tablished by the Committee on Rules and Administra15 tion.

16 ‘‘(6) Food and attendance provided at an event

17 sponsored by a political organization described in sec18 tion 527(e) of the Internal Revenue Code of 1986.

19 ‘‘(7) Training provided to a Member, officer, or

20 employee, if such training is in the interest of the

21 Senate.

22 ‘‘(8) Bequests, inheritances, and other transfers

23 at death.

24 ‘‘(9) Any item, the receipt of which is authorized

25 by the Foreign Gifts and Declarations Act, the Mu-
40

•S 1935 RS

1 tual Education and Cultural Exchange Act, or any

2 other statute.

3 ‘‘(10) Anything which is paid for by the Govern4 ment or secured by the Government under a Govern5 ment contract.

6 ‘‘(11) A gift of personal hospitality of an indi7 vidual, as defined in section 109(14) of the Ethics in

8 Government Act.

9 ‘‘(12) Free attendance at an event permitted

10 pursuant to paragraph 2(b).

11 ‘‘(13) Opportunities and benefits which are—

12 ‘‘(A) available to the public or to a class

13 consisting of all Federal employees, whether or

14 not restricted on the basis of geographic consider15 ation;

16 ‘‘(B) offered to members of a group or class

17 in which membership is unrelated to congres18 sional employment;

19 ‘‘(C) offered to members of an organization,

20 such as an employees’ association or congres21 sional credit union, in which membership is re22 lated to congressional employment and similar

23 opportunities are available to large segments of

24 the public through organizations of similar size;
41

•S 1935 RS

1 ‘‘(D) offered to any group or class that is

2 not defined in a manner that specifically dis3 criminates among Government employees on the

4 basis of branch of Government or type of respon5 sibility, or on a basis that favors those of higher

6 rank or rate of pay;

7 ‘‘(E) in the form of loans from banks and

8 other financial institutions on terms generally

9 available to the public; or

10 ‘‘(F) in the form of reduced membership or

11 other fees for participation in organization ac12 tivities offered to all Government employees by

13 professional organizations if the only restrictions

14 on membership relate to professional qualifica15 tions.

16 ‘‘2. (a)(1) In determining if the giving of an item is

17 motivated by a family relationship or personal friendship,

18 at least the following factors shall be considered:

19 ‘‘(A) The history of the relationship between the

20 individual giving the item and the individual receiv21 ing the item, including whether or not items have pre22 viously been exchanged by such individuals.

23 ‘‘(B) Whether the item was purchased by the in24 dividual who gave the item.
42

•S 1935 RS

1 ‘‘(C) Whether the individual who gave the item

2 also at the same time gave the same or similar item

3 to other Members, officers, or employees.

4 ‘‘(2) The giving of an item shall not be considered to

5 be motivated by a family relationship or personal friend6 ship if the family member or friend seeks—

7 ‘‘(A) to deduct the value of such item as a busi8 ness expense on the family member’s or friend’s Fed9 eral income tax return; or

10 ‘‘(B) reimbursement from—

11 ‘‘(i) a lobbyist or foreign agent required to

12 register under the Federal Regulation of Lobby13 ing Act, the Foreign Agents Registration Act, or

14 any successor statute; or

15 ‘‘(ii) a client of a lobbyist or foreign agent

16 described in division (i).

17 ‘‘(b)(1) Except as prohibited by paragraph 1(a)(1) a

18 Member, officer, or employee may accept an offer of free

19 attendance at a widely attended convention, conference,

20 symposium, forum, panel discussion, dinner, reception, or

21 similar event, if—

22 ‘‘(A) the Member, officer, or employee partici23 pates in the event as a speaker or a panel partici24 pant, by presenting information related to Congress

25 or matters before Congress, or by performing a cere-
43

•S 1935 RS

1 monial function appropriate to his or her official po2 sition; or

3 ‘‘(B) attendance of the event is appropriate to

4 the performance of the official duties of the Member,

5 officer, or employee.

6 ‘‘(2) A Member, officer, or employee who attends an

7 event described in clause (1) of this subparagraph may ac8 cept—

9 ‘‘(A) a sponsor’s unsolicited offer of free attend10 ance at the event for an accompanying spouse if oth11 ers in attendance will generally be accompanied by

12 spouses or if such attendance is appropriate to assist

13 in the representation of the Senate; and

14 ‘‘(B) transportation and lodging in connection

15 with the event if authorized in accordance with para16 graph 3.

17 ‘‘(3) Except as prohibited by paragraph 1(a)(1), a

18 Member, officer, or employee, or the spouse or dependent

19 thereof, may accept a sponsor’s unsolicited offer of free at20 tendance at a charity event in which the Member, officer,

21 or employee is a participant. Reimbursement for transpor22 tation and lodging may not be accepted in connection with

23 the event.

24 ‘‘(4) For purposes of this paragraph, the term ‘free at25 tendance’ may include waiver of all or part of a conference
44

•S 1935 RS

1 or other fee or the provision of food, refreshment, entertain2 ment, and instructional materials furnished to all attendees

3 as an integral part of the event. The term does not include

4 entertainment collateral to the event or meals taken other

5 than in a group setting with all or substantially all other

6 attendees.

7 ‘‘(c) For the purpose of this rule—

8 ‘‘(1) The term ‘client’ means any person who em9 ploys or retains a lobbyist or a foreign agent to ap10 pear or work on such person’s behalf.

11 ‘‘(2) The term ‘market value’, when applied to a

12 gift means the retail cost a person would incur to

13 purchase the gift. The market value of a gift of a tick14 et entitling the holder to food, refreshments, or enter15 tainment is the retail cost of similar food, refresh16 ments, or entertainment.

17 ‘‘3. (a)(1) Except as prohibited by paragraph 1(a)(1),

18 a reimbursement (including payment in kind) to a Member,

19 officer, or employee for necessary transportation, lodging

20 and related expenses for travel to a meeting, speaking en21 gagement, factfinding trip or similar event in connection

22 with the duties of the Member, officer, or employee as an

23 officeholder shall be deemed to be a reimbursement to the

24 Senate and not a gift prohibited by paragraph 1, if the

25 Member, officer, or employee receives advance authorization
45

•S 1935 RS

1 to accept reimbursement and discloses the expenses reim2 bursed or to be reimbursed and the authorization through

3 the Secretary of the Senate as soon as practicable after the

4 travel is completed.

5 ‘‘(2) Events, the activities of which are substantially

6 recreational in nature, shall not be considered to be in con7 nection with the duties of a Member, officer, or employee

8 as an officeholder.

9 ‘‘(b) Each advance authorization to accept reimburse10 ment shall be signed by the appropriate Member or commit11 tee chairman and shall include—

12 ‘‘(1) the name of the Member, officer, or em13 ployee;

14 ‘‘(2) the name of the person who will make the

15 reimbursement;

16 ‘‘(3) the time, place, and purpose of the travel;

17 and

18 ‘‘(4) a determination that the travel is in con19 nection with the duties of the Member, officer, or em20 ployee as an officeholder and would not create the ap21 pearance that the Member, officer, or employee is

22 using public office for private gain.

23 ‘‘(c) Each disclosure of expenses reimbursed or to be

24 reimbursed shall be signed by the appropriate Member or

25 committee chairman and shall include—
46

•S 1935 RS

1 ‘‘(1) total transportation expenses reimbursed or

2 to be reimbursed;

3 ‘‘(2) total lodging expenses reimbursed or to be

4 reimbursed;

5 ‘‘(3) disclosure of any other expenses reimbursed

6 or to be reimbursed (with the exception of any items

7 that may properly be accepted pursuant to clauses (1)

8 and (2)); and

9 ‘‘(4) a determination that all such expenses are

10 necessary transportation, lodging, and related ex11 penses as defined in this paragraph.

12 ‘‘(d) For the purposes of this paragraph, the term ‘nec13 essary transportation, lodging, and related expenses’—

14 ‘‘(1) includes reasonable expenses that are nec15 essary for travel for a period that may not exceed 3

16 days exclusive of traveltime within the United States

17 or 7 days exclusive of traveltime outside of the United

18 States unless approved in advance by the Ethics Com19 mittee;

20 ‘‘(2) is limited to expenditures for transpor21 tation, lodging, conference fees and materials, and

22 meals offered to all attendees as an integral part of

23 the event, including reimbursement for necessary

24 transportation, whether or not such transportation oc25 curs within the periods described in clause (1); and
47

•S 1935 RS

1 ‘‘(3) does not include expenditures for rec2 reational activities, or entertainment other than that

3 provided to all attendees as an integral part of the

4 event.

5 ‘‘(e) The Secretary of the Senate shall—

6 ‘‘(1) make available to the public all advance au7 thorizations and disclosures of reimbursement filed

8 pursuant to subparagraph (a) as soon as possible

9 after they are filed; and

10 ‘‘(2) publish an annual report summarizing (by

11 Member, officer, or employee) travel expenses that are

12 reimbursed pursuant to this paragraph and aggregate

13 more than $250 from any one source.

14 ‘‘4. (a) Notwithstanding any other provision of this

15 rule, a Member, officer, or employee of the Senate may par16 ticipate in a program, the principal objective of which is

17 educational, sponsored by a foreign government or a foreign

18 educational or charitable organization involving travel to

19 a foreign country paid for by that foreign government orga20 nization if such participation is not in violation of any

21 law and if the appropriate Member or committee chairman

22 has determined that participation in such program is in

23 the interests of the Senate and the United States.

24 ‘‘(b) Any Member who accepts an invitation to partici25 pate in any such program shall notify the Secretary of the
48

•S 1935 RS

1 Senate in writing of his acceptance. A Member shall also

2 notify the Secretary in writing whenever he has permitted

3 any officer or employee whom he supervises (within the

4 meaning of paragraph 11 of rule XXXVII) to participate

5 in any such program. The Secretary shall place in the Con6 gressional Record a list of all individuals participating; the

7 supervisors of such individuals, where applicable; and the

8 nature and itinerary of such program with participation

9 in a program permitted under subparagraph (a) if such

10 funds are not used for necessary food, lodging, transpor11 tation, and related expenses of the Member, officer, or em12 ployee.

13 ‘‘5. The Committee on Rules and Administration is

14 authorized to adjust the $20 gift limit established in para15 graph 1 on a periodic basis, to the extent necessary to adjust

16 for inflation.’’.

17 SEC. 3. AMENDMENT TO THE HOUSE RULES.

18 Clause 4 of Rule XLIII of the House of Representatives

19 is amended to read as follows:

20 ‘‘4. (a)(1) No Member, officer, or employee of the House

21 of Representatives, or the spouse or dependent thereof, shall

22 knowingly accept—

23 ‘‘(A) any gift provided directly or indirectly by

24 a person registered as a lobbyist or a foreign agent

25 under the Federal Regulation of Lobbying Act, the
49

•S 1935 RS

1 Foreign Agents Registration Act, or any successor

2 statute;

3 ‘‘(B) any gift having a value of $20 or more

4 from any other person; or

5 ‘‘(C) gifts having a value of less than $20 from

6 the same or different sources on a basis so frequent

7 that a reasonable person would be led to believe the

8 Member, officer, or employee is using his public office

9 for private gain.

10 ‘‘(2) For the purpose of this clause, the term ‘gift’

11 means any gratuity, favor, discount, entertainment, hospi12 tality, loan, forbearance, or other item having monetary

13 value. The term includes gifts of services, training, trans14 portation, lodging, and meals, whether provided in kind,

15 by purchase of a ticket, payment in advance, or reimburse16 ment after the expense has been incurred.

17 ‘‘(3)(A) The following items are gifts subject to the re18 strictions in subparagraph (1)—

19 ‘‘(i) a financial contribution or an expenditure

20 relating to a conference, retreat, or similar event for

21 or on behalf of Members, officers, or employees; and

22 ‘‘(ii) a charitable contribution (as defined in sec23 tion 170(c) of the Internal Revenue Code of 1986)

24 made in lieu of an honorarium.
50

•S 1935 RS

1 ‘‘(B) The following items are subject to the restrictions

2 in subparagraph (1)(A)—

3 ‘‘(i) an item provided by a lobbyist or a foreign

4 agent which is paid for, charged to, or reimbursed by

5 a client of such lobbyist or foreign agent;

6 ‘‘(ii) an item provided by a lobbyist or a foreign

7 agent to an entity that is maintained or controlled by

8 a Member, officer, or employee;

9 ‘‘(iii) a charitable contribution made on the

10 basis of a designation, recommendation, or other spec11 ification made to a lobbyist or a foreign agent by a

12 Member, officer, or employee; and

13 ‘‘(iv) a contribution and other payment by a lob14 byist or foreign agent to a legal expense fund estab15 lished for the benefit of a Member, officer, or

16 employee.

17 ‘‘(4) The following items are not gifts subject to the

18 restrictions in subparagraph (1):

19 ‘‘(A) Any item for which the Member, officer, or

20 employee pays the market value.

21 ‘‘(B) A contribution, as defined in the Federal

22 Campaign Act of 1971 (2 U.S.C. 431 et seq.) that is

23 lawfully made under that Act.

24 ‘‘(C) Anything provided under circumstances

25 that clearly indicate, in accordance with paragraph
51

•S 1935 RS

1 (b)(1), that it is provided for a nonbusiness purpose

2 and is motivated by a family relationship or personal

3 friendship and not by the position of the Member, of4 ficer, or employee.

5 ‘‘(D) Items which are not used and which are

6 promptly returned to the donor.

7 ‘‘(E) A food or refreshment item of minimal

8 value, such as a soft drink, coffee, or doughnut offered

9 other than as part of a meal.

10 ‘‘(F) Benefits resulting from the business or em11 ployment activities of the spouse of a Member, officer,

12 or employee, if such benefits have not been offered or

13 enhanced because of the official position of such Mem14 ber, officer, or employee.

15 ‘‘(G) Pension and other benefits resulting from

16 continued participation in an employee welfare and

17 benefits plan maintained by a former employer.

18 ‘‘(H) Informational materials that are sent to

19 the office of the Member, officer, or employee in the

20 form of books, articles, periodicals, other written ma21 terials, audio tapes, videotapes, or other forms of com22 munication.

23 ‘‘(5) The restrictions in clauses (B) and (C) of sub24 paragraph (1) shall not apply to the following:

25 ‘‘(A) Meals, lodging, and other benefits—
52

•S 1935 RS

1 ‘‘(i) resulting from the outside business or

2 employment activities of the Member, officer, or

3 employee (or other outside activities that are not

4 connected to the duties of the Member, officer, or

5 employee as an officeholder), if such benefits have

6 not been offered or enhanced because of the offi7 cial position of the Member, officer, or employee;

8 or

9 ‘‘(ii) customarily provided by a prospective

10 employer in connection with bona fide employ11 ment discussions.

12 ‘‘(B) Awards or prizes which are given to com13 petitors in contests or events open to the public, in14 cluding random drawings.

15 ‘‘(C) Honorary degrees and other bona fide

16 awards presented in recognition of public service and

17 available to the general public (and associated meals

18 and entertainment provided in the presentation of

19 such degrees and awards).

20 ‘‘(D) Donations of products from the State that

21 the Member represents that are intended primarily

22 for promotional purposes, such as display or free dis23 tribution, and are of minimal value to any individ24 ual recipient.
53

•S 1935 RS

1 ‘‘(E) Meals and entertainment provided to a

2 Member or an employee of a Member in the Member’s

3 home State having, subject to reasonable limitations,

4 to be established by the Committee on Rules and Ad5 ministration.

6 ‘‘(F) Food and attendance provided at an event

7 sponsored by a political organization described in sec8 tion 527(e) of the Internal Revenue Code of 1986.

9 ‘‘(G) Training provided to a Member, officer, or

10 employee, if such training is in the interest of the

11 House of Representatives.

12 ‘‘(H) Bequests, inheritances, and other transfers

13 at death.

14 ‘‘(I) Any item, the receipt of which is authorized

15 by the Foreign Gifts and Declarations Act, the Mu16 tual Education and Cultural Exchange Act, or any

17 other statute.

18 ‘‘(J) Anything which is paid for by the Govern19 ment or secured by the Government under a Govern20 ment contract.

21 ‘‘(K) A gift of personal hospitality of an individ22 ual, as defined in section 109(14) of the Ethics in

23 Government Act.

24 ‘‘(L) Free attendance at an event permitted pur25 suant to paragraph (b)(1).
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1 ‘‘(M) Opportunities and benefits which are—

2 ‘‘(i) available to the public or to a class

3 consisting of all Federal employees, whether or

4 not restricted on the basis of geographic consider5 ation;

6 ‘‘(ii) offered to members of a group or class

7 in which membership is unrelated to congres8 sional employment;

9 ‘‘(iii) offered to members of an organization,

10 such as an employees’ association or congres11 sional credit union, in which membership is re12 lated to congressional employment and similar

13 opportunities are available to large segments of

14 the public through organizations of similar size;

15 ‘‘(iv) offered to any group or class that is

16 not defined in a manner that specifically dis17 criminates among Government employees on the

18 basis of branch of Government or type of respon19 sibility, or on a basis that favors those of higher

20 rank or rate of pay;

21 ‘‘(v) in the form of loans from banks and

22 other financial institutions on terms generally

23 available to the public; or

24 ‘‘(vi) in the form of reduced membership or

25 other fees for participation in organization ac-
55

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1 tivities offered to all Government employees by

2 professional organizations if the only restrictions

3 on membership relate to professional qualifica4 tions.

5 ‘‘(b)(1)(A) In determining if the giving of an item is

6 motivated by a family relationship or personal friendship,

7 at least the following factors shall be considered:

8 ‘‘(i) The history of the relationship between the

9 individual giving the item and the individual receiv10 ing the item, including whether or not items have pre11 viously been exchanged by such individuals.

12 ‘‘(ii) Whether the item was purchased by the in13 dividual who gave the item.

14 ‘‘(iii) Whether the individual who gave the item

15 also at the same time gave the same or similar item

16 to other Members, officers, or employees.

17 ‘‘(B) The giving of an item shall not be considered to

18 be motivated by a family relationship or personal friend19 ship if the family member or friend seeks—

20 ‘‘(i) to deduct the value of such item as a busi21 ness expense on the family member’s or friend’s Fed22 eral income tax return; or

23 ‘‘(ii) reimbursement from—

24 ‘‘(I) a lobbyist or foreign agent required to

25 register under the Federal Regulation of Lobby-
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•S 1935 RS

1 ing Act, the Foreign Agents Registration Act, or

2 any successor statute; or

3 ‘‘(II) a client of a lobbyist or foreign agent

4 described in division (i).

5 ‘‘(2)(A) Except as prohibited by paragraph (a)(1)(A)

6 a Member, officer, or employee may accept an offer of free

7 attendance at a widely attended convention, conference,

8 symposium, forum, panel discussion, dinner, reception, or

9 similar event, if—

10 ‘‘(i) the Member, officer, or employee participates

11 in the event as a speaker or a panel participant, by

12 presenting information related to Congress or matters

13 before Congress, or by performing a ceremonial func14 tion appropriate to his or her official position; or

15 ‘‘(ii) attendance of the event is appropriate to

16 the performance of the official duties of the Member,

17 officer, or employee.

18 ‘‘(B) A Member, officer, or employee who attends an

19 event described in clause (A) of this subparagraph may ac20 cept—

21 ‘‘(i) a sponsor’s unsolicited offer of free attend22 ance at the event for an accompanying spouse if oth23 ers in attendance will generally be accompanied by

24 spouses or if such attendance is appropriate to assist
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•S 1935 RS

1 in the representation of the House of Representatives;

2 and

3 ‘‘(ii) transportation and lodging in connection

4 with the event if authorized in accordance with para5 graph (c).

6 ‘‘(C) Except as prohibited by paragraph (a)(1)(A), a

7 Member, officer, or employee, or the spouse or dependent

8 thereof, may accept a sponsor’s unsolicited offer of free at9 tendance at a charity event in which the Member, officer,

10 or employee is a participant. Reimbursement for transpor11 tation and lodging may not be accepted in connection with

12 the event.

13 ‘‘(d) For purposes of this paragraph, the term ‘free at14 tendance’ may include waiver of all or part of a conference

15 or other fee or the provision of food, refreshment, entertain16 ment, and instructional materials furnished to all attendees

17 as an integral part of the event. The term does not include

18 entertainment collateral to the event or meals taken other

19 than in a group setting with all or substantially all other

20 attendees.

21 ‘‘(3) For the purpose of this clause—

22 ‘‘(A) The term ‘client’ means any person who

23 employs or retains a lobbyist or a foreign agent to ap24 pear or work on such person’s behalf.
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1 ‘‘(B) The term ‘market value’, when applied to

2 a gift means the retail cost a person would incur to

3 purchase the gift. The market value of a gift of a tick4 et entitling the holder to food, refreshments, or enter5 tainment is the retail cost of similar food, refresh6 ments, or entertainment.

7 ‘‘(c)(1)(A) Except as prohibited by paragraph

8 (a)(1)(A), a reimbursement (including payment in kind)

9 to a Member, officer, or employee for necessary transpor10 tation, lodging and related expenses for travel to a meeting,

11 speaking engagement, factfinding trip or similar event in

12 connection with the duties of the Member, officer, or em13 ployee as an officeholder shall be deemed to be a reimburse14 ment to the House of Representatives and not a gift prohib15 ited by paragraph (a), if the Member, officer, or employee

16 receives advance authorization to accept reimbursement and

17 discloses the expenses reimbursed or to be reimbursed and

18 the authorization through the Clerk of the House of Rep19 resentatives as soon as practicable after the travel is com20 pleted.

21 ‘‘(B) Events, the activities of which are substantially

22 recreational in nature, shall not be considered to be in con23 nection with the duties of a Member, officer, or employee

24 as an officeholder.
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1 ‘‘(2) Each advance authorization to accept reimburse2 ment shall be signed by the appropriate Member or commit3 tee chairman and shall include—

4 ‘‘(A) the name of the Member, officer, or em5 ployee;

6 ‘‘(B) the name of the person who will make the

7 reimbursement;

8 ‘‘(C) the time, place, and purpose of the travel;

9 and

10 ‘‘(D) a determination that the travel is in con11 nection with the duties of the Member, officer, or em12 ployee as an officeholder and would not create the ap13 pearance that the Member, officer, or employee is

14 using public office for private gain.

15 ‘‘(3) Each disclosure of expenses reimbursed or to be

16 reimbursed shall be signed by the appropriate Member or

17 committee chairman and shall include—

18 ‘‘(A) total transportation expenses reimbursed or

19 to be reimbursed;

20 ‘‘(B) total lodging expenses reimbursed or to be

21 reimbursed;

22 ‘‘(C) disclosure of any other expenses reimbursed

23 or to be reimbursed (with the exception of any items

24 that may properly be accepted pursuant to clauses

25 (A) and (B)); and
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1 ‘‘(D) a determination that all such expenses are

2 necessary transportation, lodging, and related ex3 penses as defined in this paragraph.

4 ‘‘(4) For the purposes of this paragraph, the term ‘nec5 essary transportation, lodging, and related expenses’—

6 ‘‘(A) includes reasonable expenses that are nec7 essary for travel for a period that may not exceed 3

8 days exclusive of traveltime within the United States

9 or 7 days exclusive of traveltime outside of the United

10 States unless approved in advance by the Ethics Com11 mittee;

12 ‘‘(B) is limited to expenditures for transpor13 tation, lodging, conference fees and materials, and

14 meals offered to all attendees as an integral part of

15 the event, including reimbursement for necessary

16 transportation, whether or not such transportation oc17 curs within the periods described in clause (1); and

18 ‘‘(C) does not include expenditures for rec19 reational activities, or entertainment other than that

20 provided to all attendees as an integral part of the

21 event.

22 ‘‘(5) The Clerk of the House of Representatives shall—

23 ‘‘(A) make available to the public all advance

24 authorizations and disclosures of reimbursement filed
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1 pursuant to subparagraph (1) as soon as possible

2 after they are filed; and

3 ‘‘(B) publish an annual report summarizing (by

4 Member, officer, or employee) travel expenses that are

5 reimbursed pursuant to this paragraph and aggregate

6 more than $250 from any one source.

7 ‘‘(d)(1) Notwithstanding any other provision of this

8 clause, a Member, officer, or employee of the House of Rep9 resentatives may participate in a program, the principal

10 objective of which is educational, sponsored by a foreign

11 government or a foreign educational or charitable organiza12 tion involving travel to a foreign country paid for by that

13 foreign government organization if such participation is

14 not in violation of any law and if the appropriate Member

15 or committee chairman has determined that participation

16 in such program is in the interests of the House of Rep17 resentatives and the United States.

18 ‘‘(2) Any Member who accepts an invitation to partici19 pate in any such program shall notify the Clerk of the

20 House of Representatives in writing of his acceptance. A

21 Member shall also notify the a Clerk in writing whenever

22 he has permitted any officer or employee whom he super23 vises to participate in any such program. The Clerk shall

24 place in the Congressional Record a list of all individuals
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1 participating; the supervisors of such individuals, where

2 applicable; and the nature and itinerary of such program.

3 ‘‘(3) No Member, officer, or employee may accept funds

4 in connection with participation in a program permitted

5 under subparagraph (a) if such funds are not used for nec6 essary food, lodging, transportation, and related expenses

7 of the Member, officer, or employee.

8 ‘‘(e) The Committee on House Administration is au9 thorized to adjust the $20 gift limit established in para10 graph (a) on a periodic basis, to the extent necessary to

11 adjust for inflation.’’.

12 SEC. 4. AMENDMENT TO THE ETHICS IN GOVERNMENT ACT.

13 Section 102(a)(2)(A) of the Ethics in Government Act

14 (5 U.S.C. App. 6, section 102), is amended by—

15 (1) inserting a dash after ‘‘and the value of’’;

16 (2) striking ‘‘all gifts aggregating’’ and inserting

17 the following:

18 ‘‘(i) all gifts aggregating’’;

19 (3) striking the period at the end of the subpara20 graph and inserting ‘‘; and’’; and

21 (4) adding at the end the following:

22 ‘‘(ii) all gifts, other than food, lodging, or

23 entertainment received as personal hospitality of

24 an individual, having a value of $20 or more

25 that are—
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1 ‘‘(I) provided by a person required to

2 register under the Federal Regulation of

3 Lobbying Act, the Foreign Agents Registra4 tion Act, or any successor Act; and

5 ‘‘(II) would be prohibited by section

6 7353 of title 5, United States Code, but for

7 a personal friendship exception contained

8 in implementing rules and regulations is9 sued pursuant to in subsection (b)(1) of

10 such section.’’.

11 SEC. 5. EFFECTIVE DATE.

12 This Act and the amendments made by this Act shall

13 become effective on January 1, 1995.

Amend the title so as to read: ‘‘A bill to limit the

acceptance of gifts, meals, and travel by Members of

Congress and congressional staff, and for other purposes.’’.

S 1935 RS——2