Thinking about subsidizing a think-tank’s policy conference in Aspen?  If House Members or employees are expected to attend, corporations and trade associations should think twice before cutting the check.

Last month, we highlighted revisions to the House of Representatives travel regulations which kick in for trips on or after April 1, 2013.  New travel sponsor forms announced in a House Ethics Committee memo released last week underscore another important change: regulations restricting the ability of outside entities to underwrite trips and events primarily sponsored by others if House Members or employees are expected to attend.

Under these new rules, an entity (other than a charity or private foundation) cannot underwrite “a trip or an event, meal, or activity that will occur during a trip, or necessary expenses that will be incurred during the trip” if it knows or understands that House members or employees may participate or attend.

Two exceptions may apply, however.  First, the private entity can underwrite the event if the entity has “direct involvement in planning, organizing, conducting, or participating in the trip.”  In these cases, the private entity must complete a “Non-Grantmaking Sponsor” Form to be submitted to the House Ethics Committee.  Second, the private entity can underwrite the event if it gets some tangible benefit from its sponsorship unrelated to congressional participation.  A corporation, for example, can help pay for a trade show attended by House Members if it gets a booth, advertising space, or an official sponsorship designation in return.  (The corporation need not complete a Non-Grantmaking Sponsor Form in these situations).

Public charities and private foundations underwriting trips and events are subject to similar requirements.  They must file a “Grantmaking Sponsor” Form and either have a “bona fide direct role in the organizing, planning, or conducting” of the trip or event or certify that they “conduct an audit or review” of their grant “to ensure that the funds are spent” in accordance with the grant’s terms.  In no case can any lobbyists or foreign agents retained or employed by the trip underwriter have more than a de minimis role in planning, organizing, or arranging the trip.

The upshot here is that when a corporation or trade association makes a payment to a third party entity to enable that third party to hold an event involving paid travel for House Members and staff, they will need to carefully review whether the payment is permissible, and whether it triggers an obligation to complete a form that will be filed with the House Ethics Committee.  The House and Senate travel rules are extraordinarily complex, and they are becoming more complex with each passing year.

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Photo of Zachary G. Parks Zachary G. Parks

Zachary Parks advises corporations, trade associations, campaigns, and high-net worth individuals on their most important and challenging political law problems.

Chambers USA describes Zachary as “highly regarded by his clients in the political law arena,” noting that clients praised him as their “go-to outside…

Zachary Parks advises corporations, trade associations, campaigns, and high-net worth individuals on their most important and challenging political law problems.

Chambers USA describes Zachary as “highly regarded by his clients in the political law arena,” noting that clients praised him as their “go-to outside attorney for election law, campaign finance, pay-to-play and PAC issues.” Zachary is also a leading lawyer in the emerging corporate political disclosure field, regularly advising corporations on these issues.

Zachary’s expertise includes the Federal Election Campaign Act, the Lobbying Disclosure Act, the Ethics in Government Act, the Foreign Agents Registration Act, and the Securities and Exchange Commission’s pay-to-play rules. He has also helped clients comply with the election and political laws of all 50 states. Zachary also frequently leads political law due diligence for investment firms and corporations during mergers and acquisitions.

He routinely advises corporations and corporate executives on instituting political law compliance programs and conducts compliance training for senior corporate executives and lobbyists. He also has extensive experience conducting corporate internal investigations concerning campaign finance and lobbying law compliance and has defended his political law clients in investigations by the Federal Election Commission, the U.S. Department of Justice, Congressional committees, and in litigation.

Zachary is also the founder and chair of the J. Reuben Clark Law Society’s Political and Election Law Section.

Zachary also has extensive complex litigation experience, having litigated major environmental claims, class actions, and multi-district proceedings for financial institutions, corporations, and public entities.

From 2005 to 2006, Zachary was a law clerk for Judge Thomas B. Griffith on the United States Court of Appeals for the District of Columbia.