    [Constitution, Jefferson's Manual, and the Rules of the House of Representatives, 104th Congress]
    [104th Congress]
    [House Document 103-342]
    [Rules of the House of Representatives]
    [Pages 800-806]
    [From the U.S. Government Publishing Office, www.gpo.gov]

                                   Rule XLVII.

              LIMITATIONS ON OUTSIDE EMPLOYMENT AND EARNED INCOME.

    Sec. 943a. Income Limitations.

      1. (a)(1) Except  as provided
    by subparagraph (2), in calendar year 1991 or thereafter, a Member or an
    officer or employee of the House may not--

              (A) have outside earned income attributable to such calendar
    year which exceeds 15 percent of the annual rate of basic pay for level
    II of the Executive Schedule under section 5313 of title 5, United
    States Code, as of January 1 of such calendar year; or

              (B) receive any honorarium.

    [[Page 801]]

      (2) In the case of any individual who becomes a Member or an officer
    or employee of the House during calendar year 1991 or thereafter, such
    individual may not have outside earned income attributable to the
    portion of that calendar year which occurs after such individual becomes
    a Member, officer or employee which exceeds 15 percent of the annual
    rate of basic pay for level II of the Executive Schedule under section
    5313 of title 5, United States Code, as of January 1 of such calendar
    year multiplied by a fraction the numerator of which is the number of
    days such individual is a Member, officer, or employee during such
    calendar year and the denominator of which is 365.

      (3) In calendar year 1991 or thereafter, any payment in lieu of an
    honorarium which is made to a charitable organization on behalf of a
    Member, officer or employee of the House may not be received by such
    individual. No such payment shall exceed $2,000 or be made to a
    charitable organization from which such individual or a parent, sibling,
    spouse, child, or dependent relative of such individual derives any
    financial benefit.

    [[Page 802]]

      (b)(1) Except as provided by subparagraph (2), in calendar year 1990,
    a Member may not have outside earned income (including honoraria
    received in such calendar year) attributable to such calendar year which
    exceeds 30 percent of the annual pay as a Member to which the Member was
    entitled in 1989.

      (2) In the case of any individual who becomes a Member during calendar
    year 1990, such individual may not have outside earned income (including
    honoraria) attributable to the portion of that calendar year which
    occurs after such individual becomes a Member which exceeds 30 percent
    of $89,500 multiplied by a fraction the numerator of which is the number
    of days such individual is a Member during such calendar year and the
    denominator of which is 365.

      2. On or after January 1, 1991, a Member or an officer or employee of
    the House shall not--

              (1) receive compensation for affiliating with or being
    employed by a firm, partnership, association, corporation, or other
    entity which provides professional services involving a fiduciary
    relationship;

              (2) permit that Member's, officer's, or employee's name to be
    used by any such firm, partnership, association, corporation, or other
    entity;

              (3) receive compensation for practicing a profession which
    involves a fiduciary relationship;

              (4) serve for compensation as an officer or member of the
    board of any association, corporation, or other entity; or

              (5) receive compensation for teaching, without the prior
    notification and approval of the Committee on Standards of Official
    Conduct.

    [[Page 803]]

      3. For the purposes of this rule--

              (a) The term ``Member'' means any Member of the House of
    Representatives, a Delegate to the House of Representatives, or the
    Resident Commissioner in the House of Representatives.

              (b)(1) Except as provided by paragraph (2), the term ``officer
    or employee of the House'' means any individual (other than a Member)
    whose pay is disbursed by the Clerk and who is paid at a rate equal to
    or greater than the annual rate of basic pay in effect for grade GS-16
    of the General Schedule under section 5332 of title 5, United States
    Code, and so employed for more than 90 days in a calendar year.

              (2) When used with respect to honoraria, the term ``officer or
    employee of the House'' means any individual (other than a Member) whose
    salary is disbursed by the Clerk.

      (c) The term ``honorarium'' means a payment of money or any thing of
    value for an appearance, speech, or article by a Member or an officer or
    employee of the House, excluding any actual and necessary travel
    expenses incurred by such individual (and one relative) to the extent
    that such expenses are paid or reimbursed by any other person, and the
    amount otherwise determined shall be reduced by the amount of any such
    expenses to the extent that such expenses are not paid or reimbursed.

    [[Page 804]]
    the cost of transportation, and the cost of lodging and meals while
    away from his or her residence or principal place of employment.
      (d) The term ``travel expenses'' means, with respect to a Member or an
    officer or employee of the House, or a relative of any such individual,

      (e) The term ``outside earned income'' means, with respect to a
    Member, officer or employee, wages, salaries, fees, and other amounts
    received or to be received as compensation for personal services
    actually rendered but does not include--

              (1) the salary of such individual as a Member, officer or
    employee;

              (2) any compensation derived by such individual for personal
    services actually rendered prior to the effective date of this rule or
    becoming such a Member, officer or employee, whichever occurs later;

              (3) any amount paid by, or on behalf of, a Member, officer or
    employee, to a tax-qualified pension, profit-sharing, or stock bonus
    plan and received by such individual from such a plan;

    [[Page 805]]

              (4) in the case of a Member, officer or employee engaged in a
    trade or business in which the individual or his family holds a
    controlling interest and in which both personal services and capital are
    income-producing factors, any amount received by such individual so long
    as the personal services actually rendered by the individual in the
    trade or business do not generate a significant amount of income; and

              (5) copyright royalties received from established publishers
    pursuant to usual and customary contractual terms.
    Outside earned income shall be determined without regard to any
    community property law.

      (f) The term ``charitable organization'' means an organization
    described in section 170(c) of the Internal Revenue Code of 1986.

      The rule on outside earned income was adopted in the 95th Congress (H.
    Res. 287, Mar. 2, 1977, pp. 5933-53). It was amended for the first time
    in the 96th Congress to increase the limit on a single honorarium from
    $750 to $1000 (H. Res. 5, Jan. 15, 1979, pp. 7-16). The rule was amended
    further in the 97th Congress to (1) increase the limitation on outside
    earned income for a calendar year from 15 to 30 percent of a Member's
    salary; (2) strike the $1000 limitation on a single honorarium; and (3)
    provide that honoraria shall be attributable to the calendar year in
    which payment is received, effective January 1, 1981 (H. Res. 305, Dec.
    15, 1981, p. 31529). In the 99th Congress, paragraphs (a) and (b) were
    amended to delete the 30 percent of aggregate salary limitation on
    outside earned income and to conform the limitation to that contained in
    law (2 U.S.C. 31-1 provides that a Member of Congress may not accept
    honoraria in excess of 40 percent of his aggregate salary) (H. Res. 427,
    Apr. 22, 1986, p. 8328). The next day, the House adopted a resolution
    vacating the proceedings by which that resolution had been adopted and
    laying that resolution on the table (H. Res. 432, Apr. 23, 1986, p.
    8474). The Ethics Reform Act of 1989: (1) amended the title of the rule;
    (2) amended clause 1 to effect for 1991 and future years the elimination
    of honoraria not assigned to charity and closer restrictions on outside
    earned income (including limitation to 15 percent of Executive Level II
    pay); (3) amended clause 2 to effect for 1991 and future years new
    limits on outside employment; and (4) amended clause 3 to revise certain
    definitions (P.L. 101-194, Nov. 30, 1989). In the 102d Congress clause 2
    was further amended to specify that the ban on affiliation with a firm
    applies only if compensation is received and only with respect to a
    professional services firm, and clause 3 was further amended to specify
    the applicability of outside earned income restrictions to officers and
    employees of the House (H. Res. 5, Jan. 3, 1991, p. ----).

      For an in depth discussion of this rule prepared by the Committee on
    Standards of Official Conduct, see the House Ethics Manual (102d Cong.,
    2d Sess.).

    [[Page 806]]
    pointed Federal employee who accepts an honorarium of more than $2000
    per speech. A statutory ceiling of $25,000 from honoraria in a calendar
    year was repealed in 1981 (P.L. 97-51, Oct. 1, 1981). The Senate
    repealed its rule on outside earned income in the 97th Congress (S. Res.
    512, Dec. 14, 1982, p. 30640).
      Before its coverage was restricted to the Senate in the Ethics Reform
    Act of 1989 (sec. 601(b), P.L. 101-194, Nov. 30, 1989), a separate
    provision of law (2 U.S.C. 441i) provided criminal penalties for any
    elected or ap

      For provisions of the federal criminal code restricting postemployment
    activities, see 18 U.S.C. 207, which was originally enacted in title V
    of the Ethics in Government Act of 1978 (P.L. 95-521) and most recently
    amended in the Ethics Reform Act of 1989 (P.L. 101-194, Nov. 30, 1989)
    and a related technical corrections Act (P.L. 101-280, May 4, 1990).

    Sec. 943b. Former Select Committee on
    Ethics.

      The House  established in the 95th Congress a Select Committee on Ethics
    to ``consider and report to the House on any bills or resolutions which
    may include provisions incorporating into permanent law applicable
    provisions and appropriate modifications of rule XLIII, rule XLIV, rule
    XLV, rule XLVI, and rule XLVII which may be referred to the select
    committee by the Speaker.'' The select committee was given exclusive
    jurisdiction over the bills and resolutions referred to it, and
    jurisdiction to adopt regulations and to issue advisory opinions
    respecting the application of those rules. The resolution creating that
    committee (H. Res. 383, Mar. 9, 1977, pp. 6811-16) provided that it
    expire on December 31, 1977, but the committee and its functions
    ultimately were extended through the ``completion of its official
    business'' (H. Res. 871, Oct. 31, 1977, p. 35957). The advisory opinions
    compiled by the former Select Committee on Ethics have been incorporated
    in the House Ethics Manual (102d Cong., 2d Sess.) prepared by the
    Committee on Standards of Official Conduct.