New Rules Bring Parity Between House and Senate in the 106th Congress
On January 6, 1999, the opening day of the 106th Congress, the U.S. House of Representative adopted revised gift rules for Representatives and their staffs. The new rules, which replace an absolute ban governing gifts to Representatives and staff of the House from lobbyists, corporations, and other individuals, are effective immediately.
"Zero Tolerance" Rules Found Unworkable
Under the old rules, which were adopted in November 1995 and in effect for the 105th Congress, House lawmakers and their staff had been prohibited from accepting any gifts other than those falling under one of several narrow exceptions, such as gifts made on the basis of a familial or personal relationship, or gifts of items of nominal value such as t-shirts, key chains, or other trinkets.
That strict prohibition led to a variety of contorted arrangements so that various events, such as receptions, could be attended by Representatives and staff, and it generated countless requests by Representatives and staff for exceptions and clarifications by the House Committee on Standards of Official Conduct ("House Committee") in the 105th Congress.
The rules change, which was favored by both Republicans and Democrats, had been expected, as the House Committee unanimously endorsed the change late last year.
New Rules Mirror Senate Provisions
Under the provisions of H. Res. 9, the House gift rules will largely mirror the existing U.S. Senate rules. Effective immediately, Representatives and staff will be allowed to accept gifts from any source that are valued at $49.99 or less, subject to a $100 annual limit on gifts from one source. A corporation, trade association, or other entity that reimburses employees for gift expenditures is considered a single source for purposes of the $100 annual per Representative or per staff person cap. For valuation purposes, tax and gratuities are excluded.
Gifts having a value of less than $10 do not count toward the $100 annual limit (although repeated receipt of gifts valued under $10 would violate, in the House Committee's view, the spirit of the new rules and would therefore be impermissible). However, if a Representative or staffer is offered multiple gifts at any one time, each of which is worth $49.99 or less individually, the gift being offered is deemed to be the aggregate value of all of the items.
Under the new rules, House Representatives and staff may not "buy down" the value of a gift so that it falls below the $49.99 limit. However, where the recipient is offered a gift that is "naturally divisible," such as tickets to an event, the recipient may accept one item that falls within the new gift limits and pay market value for or decline the other items.
Other aspects of the House gift rules, including the permissibility of gifts from family or personal friends, and specific restrictions on gifts by lobbyists, are not affected by the revisions.
Senate Rules Interpretations May Apply in House
In the House debate on adoption of the new gift rules, the outgoing House Committee Chairman indicated that it was the Committee's intent for the rules of interpretation adopted over the past three years by the Senate Select Committee on Ethics to apply in the House, absent affirmative action by the House Committee.
One area in which the outgoing House Committee Chairman stated that differences of interpretation between the House and Senate rules will continue is with respect to the value of tickets to sky box or luxury box seats to sporting and entertainment events. As a general rule, the House Committee has valued a sky or luxury box ticket at the face value of the highest individually priced ticket for the event. In contrast, the Senate Committee has allowed a lower valuation methodology based upon the face value of the closest adjacent seat for which a ticket bears a face value.
The new rules do not change the ability of private entities to sponsor travel for Representatives. Private entities -- including for- and not-for-profit corporations -- may continue to pay for Representatives and staff to travel both domestically and abroad for speeches, fact-finding missions, and other meetings related to official House duties.
As always, entities or individuals considering making gifts to Members of Congress or staff may wish, in the wake of recent high-profile criminal and civil investigations of senior government officials, to review carefully their gift-giving policies and practices, as well as the circumstances, nature, and context of the relationship with the proposed gift recipient, with counsel familiar with the Congressional gift rules.