Often the Committee on Standards of Official Conduct is asked by House Members and staff whether they may accept assistance from an outside organization for an event that the congressional office is planning, such as a conference, meeting, briefing, or, in the case of a House committee, a field hearing. At times, for example, an outside organization is willing to provide food and beverages, or a meal, to everyone who will be attending the event. As another example, at times an outside organization offers free use of a meeting room, or assistance in planning or organizing the event.

With very limited exceptions, which are discussed below, such outside assistance may not be accepted for an event sponsored by a House office. The purpose of this memorandum is to reiterate and elaborate on the advice that the Committee has provided on this important subject in the House Ethics Manual and other advisories.

Underlying the Committee’s advice on this matter is a key provision of the House Rules that generally prohibits Members and staff from accepting private subsidy for official House business. This provision applies to all official House business, including events sponsored (that is, organized and conducted) by any House office. Under this provision, House Members and staff are generally prohibited from accepting, in connection with any such event, any goods or services having monetary value from any private organization or individual. Thus, for example, a meal or other refreshments paid for by a private organization or individual may not be part of any event sponsored by a House office.

The particulars of the rule, and its applicability to events sponsored by a House office, are discussed below. Several key points that Members and staff should bear in mind as they review these materials are as follows –

• The rule prohibiting the private subsidy of official House business applies to all House offices, including Member offices, committees, leadership offices, Congressional Member Organizations (i.e., the caucuses), the Republican Conference, and the Democratic Caucus.

• Under this rule, as well as the House Rule requiring that campaign funds be used for bona fide campaign or political purposes, Members are prohibited from using campaign funds to subsidize official House business.

• Under other provisions of the rules, the funds and resources of a House office are to be used in furtherance of events sponsored by that office only, and generally may not be used to assist in any event that is sponsored by an outside organization or individual.

• Members and House offices may not "co-sponsor" or hold a joint event with any private organization or individual.

Under clauses 1 through 3 of House Rule 24, House Members are prohibited from maintaining, or having maintained for their use, an "unofficial office account," i.e., an account for the payment of expenses incurred in the operation of a House office.¹  This prohibition has been in place since 1977, and it was approved on the basis that the use of such unofficial office accounts

This rules change was accompanied by an increase in official allowances, to the end that official funds would be available to pay for bona fide House office expenses.

Soon after the rule was adopted, the House Select Committee on Ethics, in a key opinion, determined that the rule prohibits not only monetary contributions, but also in-kind donations of goods or services in support of official House business.³  The Select Committee reasoned that acceptance of in-kind donations of goods or services to support the conduct of official House business would raise the very same concerns of appearance of impropriety and potential "influence peddling" that are raised by acceptance of monetary contributions.⁴  Subsequently, in 1991, the substance of the rule was codified as 2 U.S.C. §59e(d).

This rule generally prohibits House Members and staff from accepting subsidy for official House business from any private organization – non-profit, and even charitable organizations, as well as businesses. It also prohibits the acceptance of such subsidy from any individual, except that a Member is always free to use his or her personal funds to pay expenses of his or her office.⁵  The rule further prohibits the use of campaign funds to pay for official House business. For purposes of this rule, a campaign committee is considered a "private source," and in any event, the individuals and entities that donate funds to a campaign committee are certainly private sources.

The rule broadly impacts the operation of every House office. For example, it significantly affects the ability of House Members and staff to accept services of an individual on an unpaid basis (as addressed on pp. 195-200 of the House Ethics Manual), as well as the ability of Members and staff to accept travel from a private source while in the course of an official House trip (addressed on pp. 91-94 of the Committee’s Gifts and Travel booklet). The next section of this memorandum addresses the rule’s applicability to events sponsored by a House office.

With regard to events sponsored (i.e., organized and conducted) by a House office, the effect of House Rule 24, as noted above, is generally to prohibit House Members and staff from accepting, in connection with any such event, any goods or services having monetary value from any private organization or individual. Accordingly, for example, an event sponsored by a House office –

• may not include a meal or any other refreshments that are paid for by a private organization or individual,

• may not be planned or organized, in whole or in part, by a private organization or individual, and

• may not take place on private property unless the sponsoring office pays fair value for its use, or unless one of the limited exceptions described below applies.

The rule applies to House office-sponsored events that take place in Washington, as well as those that take place in a Member’s district or elsewhere. With regard to events in Washington, occasionally the Committee has become aware of "Dear Colleague" letters that invite Members to a briefing or other event that appears to be sponsored by a congressional caucus or a group of Members and that includes a lunch or other refreshments. To reiterate, it is not permissible under the rule for such an event to include food or beverages that are paid for by a private organization or individual.⁶ 

The clear intent of the rule is that events sponsored by a House office will be scheduled, organized and conducted by House Members and staff, using House funds and resources (with limited exceptions that are described below). Of course, the funds and resources of Member offices and of committees must be used consistent with the rules set forth in, respectively, the Members’ Congressional Handbook and the Committees’ Congressional Handbook issued by the House Administration Committee. When any question arises as to whether a proposed use of Member or committee allowances would be permissible, the House Administration Committee should be contacted for guidance.

There are several additional points Members and staff should bear in mind regarding House Rule 24 as they consider holding conferences, meetings, briefings, or other events, whether in Washington or elsewhere, as follows –

In-Kind Support from Federal, State or Local Governmental Entities. The rule prohibits only the private subsidy of official House business. Accordingly, as a general matter, Members and staff are able to accept any kind of in-kind support for office-sponsored events that a Federal, state or local governmental entity is willing to provide.⁷  This includes public colleges and university.

Thus, for example, if a community college in a Member’s district is willing to provide use of its auditorium for the Member’s town hall meeting without charge, its offer may be accepted. In addition, at times when a House office is sponsoring an event on a particular subject – for example, paying for college costs, retirement planning, or public health issues – government agencies with responsibilities in that area are willing to provide various kinds of assistance.

Appearance of Private Organizations and Individuals as Guests at an Official Event. At times a House office wishes to have a representative of a private organization or other individual appear and make a presentation at an event it is sponsoring. For example, at a town hall meeting on home buying, the sponsoring House office may wish to have presentations from not only government officials whose agencies provide assistance for home purchasing, but also representatives of private businesses in that field.

The Committee’s view is that as a general matter, such presentations at an event sponsored by a House office, as well as the distribution of appropriate informational materials by such private organizations, do not violate House Rule 24. Indeed, events such as a "government procurement fair" sponsored by a Member’s office inherently involve private businesses setting up booths and providing information to participants.

However, where a private organization will be making a presentation at an official event, it should be clearly understood that the organization is merely a guest of the sponsoring office, and the office retains full control over the program for the event. It should also be clearly understood that the purpose of that organization’s presence is limited to providing information on a congressionally related subject. Thus, private businesses that appear at an official event are not to enter into any commercial transactions or sign up clients while there, and membership organizations are not to sign up new members or solicit funds. Any printed materials that a private organization distributes at an official event must comply with these same limitations. In addition, any reference to such an organization that is made in materials that the congressional office prints to promote the event (such as a mailing or a leaflet) must comply with the rules of the House Administration Committee and the Franking Commission. Of course, such a private organization may not subsidize the event in any other way.

At times a private organization or individual will incur travel expenses in attending an event sponsored by a House office. For example, at times a House office has sponsored a large event in Washington to which individuals from around the country have been invited. Consistent with the above guidance, there is no violation of House Rule 24 in the invited organizations or individuals paying their own travel expenses to the event, or in their arranging – without any involvement of House Members or staff – for someone else to pay their travel expenses. A Member may not use campaign funds to pay such travel expenses.

Benefits that a Private Organization Routinely Offers without Charge. The Standards Committee has also determined that a Member does not violate House Rule 24 in accepting from a private organization, for an event sponsored by his or her House office, a benefit that the organization routinely offers without charge to similarly situated persons. For example, if a private organization that owns a meeting room routinely makes that room available without charge to anyone who wants to use it, or to any non-profit entity that wants to use it, a House office does not violate the rule in using that room without charge.⁸  Before accepting a benefit under this exception, a House office should carefully verify that the policy of the particular private organization is indeed to routinely offer that benefit without charge.

As another example, at times a Member wishes to sponsor a "health fair" in his or her district, and to offer at the fair, to the extent permissible, various health tests and screenings, such as for blood pressure, cholesterol or diabetes. The Committee understands that at least in some communities, there are hospitals or other organizations that routinely offer such tests without charge at a range of community events, such as at a county fair or street fair. A Member may, consistent with the rule, allow such an organization to provide such free tests at a health fair sponsored by his or her congressional office. However, this is the only circumstance in which a private organization may provide a health test or screening at such an event. If an organization does not have a clearly established policy of routinely offering free tests at community events – including events sponsored by persons other than a Member – then a Member may not accept the organization’s offer to provide free testing at the Member’s event.

Charging a Registration Fee to Event Participants. A House office may, consistent with House Rule 24, charge a registration fee to attendees at an event it is sponsoring for the purpose of defraying the costs of food and beverages and/or printed materials that are provided to the attendees.⁹ 

Where an office wishes to defray those costs in this manner, the registration fee must be calculated to cover those costs without generating a surplus, and the Member should establish a temporary, non-interest-bearing account to hold the fees collected. If a surplus is generated inadvertently, the excess funds must be either refunded on a pro-rata basis to the participants, or donated to charity. Instead of establishing an account, a Member may direct the participants to send the fee directly to, for example, the entity that will be providing the food and beverages, but the fees should not be collected by any private third party.

If a Member holds such an event on a regular basis, the Member may maintain a bank account with just enough funds from any surplus to cover bank charges and fees. Doing so would avoid the multiple costs that would be incurred in closing and re-opening accounts. However, maintenance of such an account at more than a minimum level would be impermissible. Thus, any surplus from an event beyond that necessary to keep the account open should be promptly refunded or donated to charity.

The Congressional Arts Competition. It should also be noted that as a result of a resolution approved by the House in 1991, and in light of certain other authorities, the annual Congressional Arts Competition has a unique status in the House.¹⁰  As a result, Member offices may, subject to certain limitations and requirements, accept private assistance for an event held in connection with the competition without violating House Rule 24. Guidance regarding arrangements for the competition is available from both the Standards Committee and the House Administration Committee.

At times a Member wishing to hold an event on a particular subject finds that – because sufficient House resources are not available, and/or because of restrictions on the use of those resources – it is not feasible for a House office to sponsor the event. As an alternative, it may be possible for the event that the Member has in mind to be sponsored – that is, entirely organized, conducted and paid for – by the Member’s campaign.¹¹  As another alternative, there may be a private organization that is willing to sponsor the event. In that circumstance, the Member may be able to, subject to certain restrictions, lend his or her name to the event, and appear personally at the event.¹²  (However, Members and staff are generally prohibited from soliciting anything of value, whether for themselves or for anyone else,¹³  and thus Members and staff may not request or suggest that any private organization sponsor an event.)

Members and staff should be aware that if either of those two alternatives is selected, then no resources of any House office, including official staff time, may be used to organize, conduct or promote the event.¹⁴ 

With the availability of these alternatives for the sponsorship of events, it is very important that Members considering holding a particular event decide very early in the planning process what the nature of the event will be, and that they and their staff follow the rules applicable to the chosen alternative. The Standards Committee’s Office of Advice and Education is available to consult with Members and staff from the start of their planning process for the purpose of advising on what would be permissible under the rules.

Any questions on these matters should be directed to the Committee’s Office of Advice and Education at extension 5-7103.