[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2835 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 2835

   To limit the acceptance of gifts, meals, and travel by Members of 
       Congress and congressional staff, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 3, 1993

  Ms. Shepherd (for herself, Mr. Fingerhut, Mr. Mann, Ms. Schenk, Ms. 
   Cantwell, Mrs. Maloney, Mr. Barrett of Wisconsin, Mr. Klein, Mr. 
Becerra, Mr. Sanders, and Mrs. Clayton) introduced the following bill; 
 which was referred jointly to the Committees on House Administration, 
            the Judiciary, and Standards of Official Conduct

_______________________________________________________________________

                                 A BILL


 
   To limit the acceptance of gifts, meals, and travel by Members of 
       Congress and congressional staff, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Congressional Ethics Reform Act of 
1993''.

SEC. 2. GENERAL STANDARDS.

    (a) General Prohibitions.--Except as otherwise provided in this 
Act, a Member or employee shall not, directly or indirectly, solicit or 
accept a gift from any source.
    (b) Relationship to Illegal Gratuities Statute.--Unless accepted in 
violation of subsection (c)(1), a gift accepted under the standards set 
forth in this Act shall not constitute an illegal gratuity otherwise 
prohibited by section 201(c)(1)(B) of title 18, United States Code.
    (c) Limitations on Use of Exceptions.--A Member or employee shall 
not--
            (1) accept a gift in return for being influenced in the 
        performance of an official act;
            (2) solicit or coerce the offering of a gift;
            (3) accept gifts from the same or different sources on a 
        basis so frequent that a reasonable person would be led to 
        believe the Member or employee is using his public office for 
        private gain;
            (4) accept a gift in violation of any statute; or
            (5) accept vendor promotional training contrary to any 
        applicable regulations, policies, or guidance relating to the 
        procurement of supplies and services for the Congress.

SEC. 3. DEFINITIONS.

    For purposes of this Act--
            (1) Employee.--The term ``employee'' means an employee of 
        the legislative branch.
            (2) Gift.--The term ``gift'' includes any gratuity, favor, 
        discount, entertainment, hospitality, loan, forbearance, or 
        other item having monetary value. It includes services as well 
        as gifts of training, transportation, local travel, lodgings 
        and meals, whether provided in-kind, by purchase of a ticket, 
        payment in advance, or reimbursement after the expense has been 
        incurred. It does not include--
                    (A) modest items of food and refreshments, such as 
                soft drinks, coffee, and donuts, offered other than as 
                part of a meal;
                    (B) greeting cards and items with little intrinsic 
                value, such as plaques, certificates and trophies, 
                which are intended solely for presentation;
                    (C) loans from banks and other financial 
                institutions on terms generally available to the 
                public;
                    (D) opportunities and benefits, including favorable 
                rates and commercial discounts, available to the public 
                or to a class consisting of all Government employees, 
                whether or not restricted on the basis of geographic 
                considerations;
                    (E) rewards and prizes given to competitors in 
                contests or events, including random drawings, open to 
                the public unless the Member's or employee's entry into 
                the contest or event is required as part of his 
                official duties;
                    (F) pension and other benefits resulting from 
                continued participation in a Member or employee welfare 
                and benefits plan maintained by a former employer;
                    (G) anything which is paid for by the Government or 
                secured by the Government under Government contract;
                    (H) any gift accepted by the Congress under 
                specific statutory authority;
                    (I) anything for which the market value is paid by 
                the Member or employee; and
                    (J) any books, written materials, audio tapes, 
                videotapes, or other informational materials.
            (3) Market value.--The term ``market value'' means the 
        retail cost the Member or employee would incur to purchase the 
        gift. A Member or employee who cannot ascertain the market 
        value of a gift may estimate the market value by reference to 
        the retail cost of similar items of like quality. The market 
        value of a gift of a ticket entitling the holder to food, 
        refreshments, entertainment, or any other benefit shall be the 
        face value of the ticket.
            (4) Member.--The term ``Member'' has the meaning given such 
        term in section 109(12) of the Ethics in Government Act of 1978 
        (5 U.S.C. App. 6, sec. 109).
            (5) Solicitation or acceptance.--(A) A gift is solicited or 
        accepted because of the Member's or employee's official 
        position if it is from a person other than a Member or employee 
        and if a reasonable person with knowledge of all relevant facts 
        would conclude that it would not have been solicited, offered, 
        or given had the Member or employee not held his position as a 
        Member or employee.
            (B) A gift which is solicited or accepted indirectly 
        includes a gift--
                    (i) given with the Member's or employee's knowledge 
                and acquiescence to his or her parent, sibling, spouse, 
                child, or dependent relative if a reasonable person 
                with knowledge of all relevant facts would conclude 
                that the gift was given because of that person's 
                relationship to the Member or employee; or
                    (ii) given to any other person, including any 
                charitable organization, on the basis of designation, 
                recommendation, or other specification by the Member or 
                employee, except as permitted for the disposition of 
                perishable items by section 5(a)(2).
            (6) Ethics committee.--The term Ethics Committee with 
        respect to the House means the Committee on Standards of 
        Official Conduct and with respect to the Senate means the 
        Select Committee on Ethics.
            (7) Vendor promotional training.--The term ``vendor 
        promotional training'' means training provided by any person 
        for the purpose of promoting its products or services. It does 
        not include training provided under a congressional contract or 
        by a contractor to facilitate use of products or services it 
        furnishes under a congressional contract.
            (8) Personal hospitality of an individual.--The term 
        ``personal hospitality of an individual'' means personal 
        hospitality for a non-business purpose by an individual who is 
        not a corporation or organization on property or facilities 
        owned by that individual or the individual's family and covers 
        only food and lodging. Such term does not apply if any of the 
        costs associated with the personal hospitality could be 
        deducted as a business expense or the individual providing the 
        personal hospitality is not present.

SEC. 4. EXCEPTIONS.

    The prohibitions set forth in section 2 do not apply to a gift 
accepted under the circumstances described in paragraphs (1) through 
(10) of this section and a gift accepted in accordance with one of 
those paragraphs will not be deemed to violate section 2 of this Act.
            (1) Gifts of $20 or less.--A Member or employee may accept 
        unsolicited gifts having an aggregate market value of $20 or 
        less per occasion, provided that the aggregate market value of 
        individual gifts received from any one person or entity under 
        the authority of this paragraph shall not exceed $50 in a 
        calendar year. This exception does not apply to gifts of cash 
        or of investment interests such as stock, bonds, or 
        certificates of deposit. Where the market value of a gift or 
        the aggregate market value of gifts offered on any single 
        occasion exceeds $20, the Member or employee may not pay the 
        excess value over $20 in order to accept that portion of the 
        gift or those gifts worth $20. Where the aggregate value of 
        tangible items offered on a single occasion exceeds $20, the 
        Member or employee may decline any distinct and separate item 
        in order to accept those items aggregating $20 or less.
            (2) Gifts based on a personal relationship.--A Member or 
        employee may accept a gift given under circumstances which make 
        it clear that the gift is motivated by a family relationship or 
        personal friendship rather than the position of the Member or 
        employee. Relevant factors in making such a determination 
        include the history of the relationship and whether the family 
        member or friend personally pays for the gift.
            (3) Discounts and similar benefits.--In addition to those 
        opportunities and benefits excluded from the definition of a 
        gift by section 3(2)(D), a Member or employee may accept--
                    (A) reduced membership or other fees for 
                participation in organization activities offered to all 
                Government employees by professional organizations if 
                the only restrictions on membership relate to 
                professional qualifications; and
                    (B) opportunities and benefits--
                            (i) offered to members of a group or class 
                        in which membership is unrelated to 
                        congressional employment; or
                            (ii) offered to members of an organization, 
                        such as an employees' association or 
                        congressional credit union, in which membership 
                        is related to congressional employment if the 
                        same offer is broadly available to large 
                        segments of the public through organizations of 
                        similar size.
        A Member or employee may not accept for personal use any 
        benefit to which the Government is entitled as a result of an 
        expenditure of Government funds.
            (4) Honorary degrees.--(A) A Member or employee may accept 
        an honorary degree from an institution of higher education (as 
        defined in section 1141(a) of title 20, United States Code) 
        based on a written determination by the Ethics Committee that 
        the timing of the award of the degree would not cause a 
        reasonable person to question the Member's or employee's 
        impartiality in a matter affecting the institution.
            (B) A Member or employee who may accept an honorary degree 
        pursuant to subparagraph (A) may also accept meals and 
        entertainment given to him and to members of his family at the 
        event at which the presentation takes place.
            (5) Gifts based on outside business or employment 
        relationships.--A Member or employee may accept meals, 
        lodgings, transportation and other benefits--
                    (A) resulting from the business or employment 
                activities of a Member's or employee's spouse when it 
                is clear that such benefits have not been offered or 
                enhanced because of the Member's or employee's official 
                position; or
                    (B) resulting from his or her outside business or 
                employment activities when it is clear that such 
                benefits have not been offered or enhanced because of 
                his or her official status.
            (6) Political events.--A Member or employee may accept 
        meals, lodgings, transportation and other benefits, including 
        free attendance at events, when provided in connection with 
        active participation in political management or political 
        campaigns by a political organization described in section 
        527(e) of the Internal Revenue Code of 1986.
            (7) Widely attended gatherings and other events.--
                    (A) Speaking and similar engagements.--When a 
                Member or employee participates as a speaker or panel 
                participant or otherwise presents information related 
                directly or indirectly to the Congress or matters 
                before the Congress at a conference or other event, his 
                or her acceptance of an offer of free attendance at the 
                event on the day of the presentation is permissible 
                when provided by the sponsor of the event. The Member's 
                or employee's participation in the event on that day 
                represents a customary and necessary part of the 
                performance of his or her responsibilities and does not 
                involve a gift to him or to the Congress.
                    (B) Widely attended gatherings.--(i) A Member or 
                employee may accept a sponsor's unsolicited gift of 
                free attendance at all or appropriate parts of a widely 
                attended gathering in the area of the District of 
                Columbia of mutual interest to a number of parties. A 
                gathering is widely attended if, for example, it is 
                open to members from throughout a given industry or 
                profession or if those in attendance represent a range 
                of persons interested in a given matter.
                    (ii) A gathering is not widely attended if it is a 
                congressional retreat to which a majority of Members of 
                either House of Congress or the majority of the Members 
                of a political party in one or both Houses are invited 
                and which is held outside the United States Capitol 
                grounds.
                    (C) Free attendance.--For purposes of subparagraphs 
                (A) and (B), free attendance may include waiver of all 
                or part of a conference or other fee or the provision 
                of food, refreshments, entertainment, instruction and 
                materials furnished to all attendees as an integral 
                part of the event. It does not include travel expenses, 
                lodgings, entertainment collateral to the event, or 
                meals taken other than in a group setting with all 
                other attendees.
                    (D) Cost provided by sponsor of event.--The cost of 
                the Member's or employee's attendance will not be 
                considered to be provided by the sponsor where a person 
                other than the sponsor designates the Member or 
                employee to be invited and bears the cost of the 
                Member's or employee's attendance through a 
                contribution or other payment intended to facilitate 
                that Member's or employee's attendance. Payment of dues 
                or a similar assessment to a sponsoring organization 
                does not constitute a payment intended to facilitate a 
                particular Member's or employee's attendance.
                    (E) Accompanying spouse.--When others in attendance 
                will generally be accompanied by spouses, a Member or 
                employee may accept a sponsor's invitation to an 
                accompanying spouse to participate in all or a portion 
                of the event at which the Member's or employee's free 
                attendance is permitted under subparagraph (A) or (B).
            (8) Items primarily for free distribution to 
        constituents.--A Member or employee may accept food or other 
        items of minimal value intended primarily for free distribution 
        to visiting constituents.
            (9) Personal hospitality of an individual.--No Member or 
        employee may accept more than 30 days of personal hospitality 
        in a calendar year without prior written waiver from the Ethics 
        Committee.

 SEC. 5. PROPER DISPOSITION OF PROHIBITED GIFTS.

    (a) In General.--A Member or employee who has received a gift that 
cannot be accepted under this Act shall--
            (1) return any tangible item to the donor or pay the donor 
        its market value (a Member or employee who cannot ascertain the 
        actual market value of an item may estimate its market value by 
        reference to the retail cost of similar items of like quality);
            (2) when it is not practical to return a tangible item 
        because it is perishable, the item may be given to an 
        appropriate charity or destroyed;
            (3) for any entertainment, favor, service, benefit or other 
        intangible, reimburse the donor the market value (subsequent 
        reciprocation by the employee does not constitute 
        reimbursement); and
            (4) dispose of gifts from foreign governments or 
        international organizations in accordance with rules 
        established by the Ethics Committee.
    (b) Use of Appropriated Funds To Return Gifts.--A Member or 
employee may use appropriated funds and franked mail to return gifts.
    (c) Prompt Compliance.--A Member or employee who, on his own 
initiative, promptly complies with the requirements of this section 
will not be deemed to have improperly accepted an unsolicited gift. A 
Member or employee who promptly consults his Ethics Committee to 
determine whether acceptance of an unsolicited gift is proper and who, 
upon the advice of the Ethics Committee, returns the gift or otherwise 
disposes of the gift in accordance with this section, will be 
considered to have complied with the requirements of this section on 
his own initiative.

SEC. 6. CHARITABLE DESIGNATION OF OUTSIDE EARNED INCOME.

    Subsection (c) of section 501 of the Ethics in Government Act of 
1978 is repealed.

SEC. 7. REPEAL OF OLD RULE.

    Section 901 of the Ethics Reform Act of 1989 (2 U.S.C. 31-2) is 
repealed.

SEC. 8. ACCEPTANCE OF TRAVEL AND RELATED EXPENSES FROM NON-FEDERAL 
              SOURCES.

    (a) In General.--The Ethics Committees shall prescribe rules 
establishing the conditions under which their respective Houses may 
accept payment, or authorize a Member or employee to accept payment on 
the House's behalf, from non-Federal sources for travel, subsistence, 
and related expenses with respect to attendance of the Member or 
employee (or the spouse of such Member or employee) at any meeting or 
similar function relating to the official duties of the Member or 
employee. Any cash payment so accepted shall be credited to the 
appropriation applicable to such expenses. In the case of a payment in 
kind so accepted, a pro rata reduction shall be made in any entitlement 
of the Member or employee to payment from the Government for such 
expenses.
    (b) Rules.--The rules prescribed pursuant to subsection (a) shall--
            (1) in the case of a Member, require that the Ethics 
        Committee approve in advance all travel for which related 
        expenses are to be reimbursed and that, in advance of such 
        travel, a Member publish in the Congressional Record the dates, 
        itinerary, and purpose of such travel, the identity of the 
        party providing the reimbursement, and the anticipated value of 
        the reimbursement;
            (2) in the case of an employee of the House of 
        Representatives or Senate, require that the authorizing Member 
        approve in advance all travel for which related expenses are to 
        be reimbursed; and that, in advance of such travel, the 
        authorizing Member publish in the Congressional Record the 
        dates, itinerary, and purpose of such travel, the identity of 
        the party providing the reimbursement, and the anticipated 
        value of the reimbursement;
            (3) in the case of a person not covered by paragraph (1) or 
        (2), require that the appropriate supervisor approve in advance 
        all travel for which related expenses are to be reimbursed;
            (4) condition approval under paragraphs (1), (2), and (3) 
        on a determination that acceptance of reimbursement would not 
        cause a reasonable person with knowledge of all the facts 
        relevant to a particular case to question the integrity of a 
        Member, the Congress, or congressional operation; and
            (5) prohibit reimbursement for items beyond those 
        reasonably necessary for the Member or employee to participate 
        in the event.
Entertainment expenses collateral to an event are not to be considered 
reasonably necessary under paragraph (5).
    (c) General Prohibition.--Except as provided in this section or any 
other statute, no Member, employee, or House of Congress may accept 
payment in cash or in kind for expenses referred to in subsection (a).  
 A Member or employee who accepts any such payment in violation of the 
preceding sentence--
            (1) may be required, in addition to any penalty provided by 
        law, to repay, for deposit in the general fund of the Treasury, 
        an amount equal to the amount of the payment so accepted; and
            (2) in the case of a repayment under paragraph (1), shall 
        not be entitled to any payment from the Government for such 
        expenses.
    (d) Reports.--
            (1) In general.--A Member shall, in the manner provided in 
        paragraph (2), publish in the Congressional Record reports of 
        payments of more than $20 accepted under this section by the 
        Member or by an employee of the Member.
            (2) Contents.--The reports required by paragraph (1) shall, 
        with respect to each payment--
                    (A) specify the amount and method of payment, the 
                name of the person making the payment, the name of the 
                Member or employee, the nature of the meeting or 
                similar function, the time and place of travel, the 
                nature of the expenses, and such other information as 
                the Ethics Committee may prescribe;
                    (B) be submitted not later than May 31 of each year 
                with respect to payments in the preceding period 
                beginning on October 1 and ending on March 31; and
                    (C) be submitted not later than November 30 of each 
                year with respect to payments in the preceding period 
                beginning on April 1 and ending on September 30.

SEC. 9. SOLICITATION OF REGISTERED LOBBYISTS.

    A Member or employee shall not knowingly solicit contributions from 
any registered lobbyist for an organization described under section 
501(c) of the Internal Revenue Code of 1986. For purposes of this 
section, the fact that the name of a Member or employee is on the 
letterhead of a solicitation is not sufficient to establish that the 
named Member or employee has solicited a contribution.

SEC. 10. PENALTIES FOR VIOLATION OF ACT.

    (a) Civil Action.--The Attorney General may bring a civil action in 
any appropriate United States district court against any individual who 
knowingly and willfully accepts or solicits a gift in violation of 
section 2 or otherwise violates any provision of this Act. The court in 
which such an action is brought may assess against any such individual 
a civil penalty in any amount, not to exceed $10,000.
    (b) Committee Referral.--The Ethics Committee shall refer to the 
Attorney General the name of any individual which such committee has 
reasonable cause to believe has willfully violated any provision of 
this Act.
    (c) Committee Action.--The Ethics Committee may take any 
appropriate personnel or other action in accordance with applicable law 
or regulation against any individual who violates any provision of this 
Act.

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HR 2835 IH----2