Ethics Rules May Inadvertently Burden Charities

Anxiety over the new House ethics rules ratcheted up this week as lawmakers' spouses demanded clarification of whether the rules apply to them, and eight House members backed out of a fundraising gala for a major theatrical company when ethics lawyers stated that they could not attend as guests.

At a packed ethics briefing for congressional spouses last weekend, a number of wives struggled to understand whether the complicated rules would prevent them from accepting free tickets to bona fide charity events -- particularly those in which they were involved or served as chairmen.

"I am a person," Leslie Meek, wife of Rep. Kendrick B. Meek (Fla.), was quoted as saying during the noisy, packed meeting, held during the Democratic retreat in Williamsburg.

Ethics lawyers and Hill staffers tried to dispel the uncertainty by explaining that spouses must adhere to the same rules, unless they are invited to an event by virtue of their own stature or job.

The confusion largely centers on a new rule that bans legislators and staff members from accepting gifts and free tickets to events sponsored by organizations that employ lobbyists. There are 16 "exemptions" to the rule that are equally complicated.

"These rules are complex and are difficult in the application because each situation presents it own nuances," said lawyer Kenneth A. Gross, an ethics-law expert.

The previous ethics restrictions allowed members to accept a gift worth less than $50 from lobbyists and others. Under the new rules approved by the House last month, members are prohibited from accepting anything.

Hill employees, spouses and charity organizers complained this week that the new rule on gifts is an exceptional burden to charities -- which are known as 501(c)3s under the federal tax law and are tax-exempt -- because they depend mightily on House members' celebrity to sell tickets and raise money.

Carolyn Peachey, one of Washington's best-known event planners, said she sought an opinion from the House Committee on Standards of Official Conduct regarding the Alvin Ailey American Dance Theater Gala, an annual A-list event at the Kennedy Center.

She was eventually advised that, because the dance troupe had employed a lobbying firm last year, the legislators could not attend for free -- even though the invitation was issued by the nonprofit group.

"In major communities across the country, you'll find corporations that help with the charitable needs of a community," said Peachey. "Here, the main industry is the federal government. We can't expect the government to support all the charities, so we depend on members who are interested in the cause to attend. It enhances the evening -- it's celebrity."

Senior Hill sources acknowledged yesterday that the new rule's effect on legitimate charities was an unintended consequence. They predicted that it would be amended.