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Hosting an Inauguration Reception? Beware the Gift Rules.

By Angelle Smith Baugh on December 4, 2012
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Inauguration Day may be a holiday in DC, but the congressional and executive branch gift rules still apply.  Today, the House Committee on Ethics issued guidance to House Members and staff regarding Inauguration events.  Today’s House guidance offered some clarity regarding who may pay for and who may attend certain kinds of events, specifically:

  • Member Receptions – A private entity may not pay the cost of a Member’s own swearing-in or Inauguration Day reception.  While a Member may host his or her own reception, a private entity funding such an event “would constitute an impermissible gift” under the House Rules.
  • Privately Sponsored Inaugural Events – Members and staff may accept offers of free attendance at privately sponsored Inauguration events only if it is allowable under a specific exception to the House gift rule’s general ban on gifts, such as the exceptions for “widely attended” events  and for receptions with what the new House Ethics Committee guidance calls “moderate hors d’oeuvres” and beverages that are not served as a meal.

Knowing which executive branch officials and employees may be included on an Inauguration event guest list may prove to be quite tricky this year.  The Office of Government Ethics issued guidance about executive branch officials and employees attending Inauguration events on January 15, 2009; however, the federal gift rules have changed in some important ways.  Notably, President Obama’s Lobbyist Gift Ban, Executive Order 13490, prohibits political appointees from accepting gifts from lobbyists under some commonly-used gift rule exceptions, including the executive branch gift rule exception for free attendance at “widely attended gatherings.”

Companies and associations that host Inauguration events should also keep in mind that if they invite state and local public officials (many of whom will be in town for the Inauguration), they will need to evaluate whether applicable state and local gift rules permit the officials to attend.

We would not be surprised to see inaugural event guidance issued soon by the Senate Ethics Committee, as Washington gears up for the quadrennial day of parties and events.

Photo of Angelle Smith Baugh Angelle Smith Baugh

Angelle Smith Baugh is of counsel in the firm’s Election and Political Law and White Collar Litigation practice groups. She has significant experience in broad-based crisis management, advising clients on legal and political matters presenting complex risks. She has been individually ranked by…

Angelle Smith Baugh is of counsel in the firm’s Election and Political Law and White Collar Litigation practice groups. She has significant experience in broad-based crisis management, advising clients on legal and political matters presenting complex risks. She has been individually ranked by Chambers for Congressional Investigations for three consecutive years, with clients describing her as “…incredibly responsive, thorough and has great expertise in congressional investigations.”

Angelle’s practice focuses on defending companies and individuals in high-profile congressional investigations, as well as other criminal, civil, and internal investigations. She represents clients before House and Senate Committees, as well as in criminal and civil government investigations before the Public Integrity Section of the Department of Justice, Federal Election Commission, and the Office of Congressional Ethics.

She assists companies and executives responding to formal and informal inquiries from Congress and executive branch agencies for documents, information, and testimony. She has experience preparing CEOs and other senior executives to testify before challenging congressional oversight hearings.

Angelle also has experience and expertise navigating federal and state ethics laws, and provides ongoing political law advice to companies, trade associations, PACs, and individuals.

Read more about Angelle Smith BaughEmail
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  • Posted in:
    Government and Public Policy
  • Blog:
    Inside Political Law
  • Organization:
    Covington & Burling LLP
  • Article: View Original Source

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