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Special Alert
October 3, 2007
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Senate Ethics Reforms Signed into Law Senate Ethics Reforms Signed into Law
While much of the discussion of the new law has surrounded its provisions on earmarks and air travel for federal candidates, the law also includes a number of changes which are relevant to nonprofit organizations and the lobbyists which they employ or retain. For the purposes of this article, a "lobbyist" refers only to those lobbyists required to register under the Lobbying Disclosure Act (LDA). Gift Ban Under the new law, lobbyists may not knowingly make prohibited gifts or provide prohibited travel to members of the House or Senate. The Senate Standing Rules now ban Senators and members of their staff from accepting any gifts from lobbyists or organizations which retain lobbyists, where the definition of "gifts" includes any items of monetary value. Gifts include tickets, entertainment, and services, but do not include food or refreshments of nominal value if offered other than as part of a meal, items of little intrinsic value (including greeting cards and T-shirts), informational materials, and commemorative plaques. The existing gift rule exceptions remain in effect, so that free attendance at a widely attended event is not considered a gift as long as it is related to official duties. The new law adds another exception for certain constituent events. Free attendance at a conference, symposium, reception, or similar event in a Senator's home state is permitted if: (1) the total cost of meals provided to the Senator or a staff member is less than $50; (2) the event is sponsored and attended primarily by the Senator's constituents; (3) a lobbyist is not present; and (4) the Senator or staff member participates in the event either as a speaker or panel participant in reference to Congress or matters before Congress, or as an attendee whose presence is appropriate to the performance of his or her official duties. The new law now prohibits both Senators and Representatives from participating in events held in their honor during their party's national convention if those events are directly paid for by a lobbyist or organization which employs a lobbyist. An exception is made, however, for events honoring a Senator in his or her capacity as the party's presidential candidate. Privately Sponsored Travel Privately sponsored travel is now restricted for Senators and their staff in much the same manner as it has been for Representatives. A Senator or member of his or her staff may not participate in travel sponsored by a lobbyist or an organization which employs or retains lobbyists, unless it is restricted to a one-day event. However, unlike the House ethics reform, which exempts only colleges and universities from this provision, the new Senate law permits any travel sponsored by 501(c)(3) organizations. This has significant implications for nonprofit organizations which regularly sponsor travel to speaking engagements, fact-finding trips, and similar events: Regardless of whether or not they retain a lobbyist, 501(c)(3) organizations may continue to sponsor travel for Senators and members of their staff. The new law does require that these trips be preapproved by the Select Committee on Ethics, so organizations must ensure that Senators and their staff members are given sufficient advance notice of a trip to have it approved. Lobbyist Disclosure The new law has also amended existing laws applicable to lobbyists and will affect operations in both houses. Amendments to the LDA mandate that lobbyists now submit electronically quarterly reports on their lobbying activities to both the House and Senate. The rules regarding coalitions and associations have been tightened. Lobbyists and organizations retaining them must report contributors of more than $5,000 who actively participate in planning, supervising or controlling their lobbying activities. Lobbyists must also report semi-annually a variety of payments to honor covered legislative and executive branch officials. Finally, the law amends the Federal Election Campaign Act to require federal candidates to publicly disclose bundled campaign contributions of at least $15,000 raised by a lobbyist within a six-month period. The Future of Ethics Reforms Proponents of these reforms claim that Congress is ushering in an era of transparency. Critics argue that they do far too little to curb corruption in the legislative process. The law certainly creates a new set of considerations for any organization that employs or retains a lobbyist, so its implications are not insignificant. By Christine Tschiderer  This publication is designed to provide accurate and authoritative information about the subject matter covered. It is not distributed with the intent to render legal, accounting, or other professional advice. The services of a competent professional should be sought if legal advice or other expert assistance is required. Newsletter Home | HarmonCurran Home | |