‘The Honorable Willism M. Cassidy Page? patients regarding gastrointestina/liver service cangults. You have not aocepied any new ‘consuls or patients in your private practice since being elected to Congress, In addition to teaching and supervising residents in patient care, you els participate in research programs at LSU-HSC. ‘You currently serve as the Principal Investigator Jor your site in a research program regarding the treatment of hepatitis C funded by Scherling and Roche, all grant finding for this research goes directly to the University, not to you personally LEGAL BACKGROUND 1. Rules Applicable to Teacking Income House rules generally probitit Members and staff of the House stom receiving honoraria! Im addition, Members and certain employees of the House are probibited y section $02 of the Ethics in Govemment Act (5 U.S.C. app. 4 § 502(a)(5), as well as House Rule 25, clause 2(¢), from receiving compensation for teaching “without the pelor notifestion and approval” of this Commitier. Jn recommending these provisions in its report on the Fithics Reform Act, the House ‘Bipartisan Task Force on Ethics referred to « “public perception that hasorera is a way for special interests to try to gain influence or buy access to Members of Congress.”* The Task Force intended that: the prohibition on honoraria for speeches, articles, and appearances exiends to payment or compensation for such activity in. any form. ‘The ban on honcraria could not be cireumvenied, fr example, by arranging for « continuing series of alls, lectures, speeches, or appeunnees and recheracteriing the income ax a “stipend” or “Salary. “The Committee scrutinizes cach request to teach for compensation in light of the concerns ‘esptessed by the Task Force regarding acceptance of honoraria and favors from special interest ‘groups. In order to receive approval, the individual wishing to teach mist establish that: 1, ‘The teaching is part of a regular course of insiuction at an established acedemic institution; 2. All compensation comes from the funds of the institution and nan ia derived fram federal grants of earmarked appropriations; ¥ See Hiowse Rule 2, cl, 5; Howse sale 28, ol. 1(2)2) eh 4(0) 2 Sea Moone Bipartisan Task Farce on Biics, Report on FER. 3660 at 13, 101% Cong, 1" Soma, (Cooma, Print Conus, Ou Ras 1980), raprintet ts 135 Cong, Ree. HO2SS, 19257 (daily #4, Nov.21, 1989). 9 nt 4, 195-Cong: Ree. H9257 (emphasitelded).‘The Honorable William M. Cassidy Page 3 3, The payment is for services on an ongoing besis, not for {individual presentstions ar lectures, 4, The teacher's responsibilities include clsss preperation and student evalnation (for example, grading papers, testing, and homework); 5. The students receive credit or the course taught; 6 The compensation does not exceed that normally received by others at the institution for a cornperable level of instruction and amount of work; 7. No official resources, including staf? time, axe used in connection ‘with th teaching; 8. ‘The teathing does not inerfere with official responsibilities nor is it otherwise inconsistent with the performance of oongressianel duties; and 9. The employment or compensetion does not represent a significant potential for conflict of interest. Tiems 1 through & should be confirmed in writing by the institution at which the paid ‘eaching will occur. Documentation might bo in the form of en explanatory lotior or copy of & teaching contract attached to the request for Commitico approval. Itoms-7 through 9 should be saflirmed in writing by the individual seeking to teach. 2. Rules Applicable to Member Physicians In uddition to the provision regarding compensation for teaching discussed above, section 502 of the Tikics in Government Act prohibits Mémbers from, smong other things, practicing medicine for compensetion, receiving compeisetion for say curent services from « medical ‘partnership or similar entity, or allowing such an entity ‘o use the Momber’sname. The Committee jus determined that s Member does not violate these fiduciary duty restrictions if the Member -sccepts payment for professional medical services in an amount that does not exceed the actual and ‘necessary expenses associated with the medical services that are provided by the Member* ‘The ‘Commitice requires eny Member who reccives compensalion under the liméted conditions for practicing. doctors to file an annual sisicment with the Standards Commitice thet describes the “Member's ioial charges, fees received, and tofel expen. 4+ See 2008 House Betas Mawl at 218-19; February 23, 1998 Advisory Memorandum, reprinted In 2008 Hlowse Eels Manual x: 385-88,‘The Honorable William M. Cassidy Page4 3. Rules Applicable to Conchcting Research ‘The bet an honorarla, discusied above, applies to roccipt of compensation for writings reluled to one’s official duties? Generally, howevet, the ban does not apply’ to writing that is merely ‘an incidental part of the work for which payment is made, ach as conducting research, * In addition, several provisions of the federal criminal code end House rules restict the ability of Members to become involved with outside organizations, including universities, in ways that require interaction with the federal govemment’ Members are prohibited by 18 U.S.C. § 203 from asking for or receiving compensation for “representational services” rendeced in relatian 10 & zatier or proceeding in wihich the United States is party or bas a direct and substantial interes, Even absent compensation, 18 U.S.C. § 205 prohibits Members and employees from acting as an. agent or atlomey for another person ot organization for prosecuting 2 claim against the United States orn connection with “any covered matte."” A covered matter includes any judicial ot other proceeding, application, requeat for a naling or other determination, contract, claim, controversy, « investigation, charges, accusation, arrest, or other particular matter. These criminal statules are enforced by the U.S. Department of Justice, and thus, the Committee cannot give definitive guidance an their sope. Similarly, House Rule 25, clauso 6 provides that: ‘A person may nat be an officer or employee of the House, or ccontinae in its employment, if he acts as an agent for the prosecution of any claim agsinst the Government, or if he is interested in such a claim, except ax an original claimant or in the proper discharge of ‘official dates ‘As with 18 U.S.C §205, this prohibition applies even if the individual does not recsive compensation for the represcntationsl services. ‘These provisions are implicated ia Membor socks research gront funding for a university project froma federal govermmeat extity, 4, Outside Ramed Income Restrictions and Fnanelal Diselosures Federal Jaw and House Rule 25 limit the smount of outside eamed income Menthers and certain House employees may roceive in a calendar yoar.' For 2009 and 2010, that Himit is $26,550 per year, “Earned income” is defined to include wages, salaries, des, and any other amounts receives! ns compensation for services.” Any earned income also imust be reported on the Financial Disclosure Statement required of Members and senior staff employees by title I of the Ethics in Government Act of 1978, as amended. Pursuant to Committee interpretation of this statutory definition, the value of necessary expenses and benefits provided by employers separate from salary > See Howse Rule 25, ol. 1(0. * Seo 2008 Houve Ethics Marsal at 22, 7 Thexe restrictions nico reply tall House empiayses end federal goverment employees, * Son SUS. app. 4 § S018}: House Rule 25, et 19). Sea House Rule 25, cl. AI}; 2008 House Bikey Maral at 228.‘Tho Honorable William M. Cassidy Page 5 and other taxable compensation are not considered “eamed income” for purposes of the income. restrictions and Financial Disclosure reporting requirements! ANALYSIS A, Teaching ‘You have: provided the required documentation for teaching approval to the Committee ‘confirming items 1-6 by LSU-HSC and iteras 7.9 by you in your December 1, 2009, letter. Based. ‘on this information, the Commitise approves yaur teaching position with LSU-HSC. ‘This approval erin ony fo aching in calendar yrs 2008 sod 2010. If you ln to teac fr compensation in future years, you must first obtain Commi ace written approvel for b calendar year, Tho sano citela dscussed above would be used to crate any Tule proposed teathiny mrangemeuts, 2, Medical Practice Based on your representations, your faculty position with LSU-HSC involves only ‘noidenial teatment of petients while supervising residents at the hospital, Since taking office you ‘are not nocepting consults in private practice end you 20 longer have admitting privileges at local hospitals. As a private physician, you do not provide any other medical services et LSU-HSC (or elsewhere), or charge fees for providing modical services to patients, ‘Based on these representations, the mules applicable to Member Physicians discussed in this section do not apply to your work as an LSU-HSC faculty member. If your cixcumstances change sand you determine the: you will begin to se¢ pilients at a private physician, pleaso contac the ‘Committee for farther guidance under these rules, 3. Research ‘The honoraris ban docs not prectude any incidental weiting that is a part of your researching duties at LSU-HSC, In addition, it does not appear that you aro secciving any additional compensation for research work beyond your general $2,000 monthly compessation as a faculty member from LSU-IISC. Although your current research Is funded by Scherling and Roche, a private entity, you should keep in ming the federal statutes discussed above as you work om grant-funded research while serving as a Member. Pursuant to these provisions, LSU-HSC should not use your name in applications for research finding or grants from any entity within the federal government while you are serving us a Member. In sddition, you may noi appear in pesson or submit any materials to any federal agency on behalf of a LSU-1HSC resoarch grant or funding request, 4, Rarned tneame Limit and Financial Disclosure Reporting 1 2008 Howse Bihlos Manval st 228; instruction Guide for Completing Calendar Year 208 Financict Disetoowre Stateovent Form Ae 8-9, We understand the Office of Government [ihice follows e siilar intesprtatioa of these provisions for exocutive branch employees. Sse SGPLR. 6 2636,300\6),‘The Honorable William M, Cassidy Page 6 “Your teaching compensation ig gubject to the 15 percent outside eamed income limit of ‘House Rule25, clauses 1-4, As disvassed above, although your $2,000 monthly stipend is subject to the outside cared income limit, you would not need to include the value of other necessary ‘expenses and benefits provided by LSU-HSC connected to your teaching position, such as paynient of medical malpractice insurance premiums and medical licensing fees. The annual total of this monthly stipend is $24,000 end must be aggregated with any other outside earned income to ensure ‘that you remain below the annual eamed income limit of $26,350 per year for 2009 and 2010. In addition, you must repost the $2,000 monthly stipend on Schedule I of your Finazciel Disclosure Statement for 2069 and any future years you continue inthis position. 11 is wdvived that ‘you also report your contract with LSU-HSC on Schedule TX with regard to payment of malpractice insurance, lconsing fees, and similar costs provided by LSU-HSC fur all medical faculty. LIMITATIONS “The response sbave constitutes an advisory cpinion concerning the application of House Rules 23 and 25, the Ethics in Government Act, end 18 U.S.C. §§ 203, 205, ‘The following limitations apply to this opinion: + This advisory opinion is ismed only to Representative William M,* (Cassidy, the requestor af this opinion, ‘This advisory opinion cannot be telied upan by any other individual or entity, ‘+ This advisory opinion is limited to the provisions of the House Rules and federal statutes specifically nated above, No opinion ip expressed or implied herein regarding the spplication of any other federal, state, or Toeal statute, rule, regulation, ordinance, or other law that may be applicable to the proposed conduct described in this letter, * ‘This advisory opinion will not bind ar obligate any entity other than the Coimitiee on Standanls of Officiel Conduct of the United States Hours of Representatives. + ‘This advisory opinion is limited in scope to the specitio proposed conduct described in this letter and does not apply to any other conduct, including that which appears similar in mature or scape to that desezibed in this lester, ‘The Commitise will tske no adverse action against you in regerd fo eny conduet that you undertake, or have undertaken, in good faith reliance upon this advisory opinion, so long as you. have presented a complete and accurate siaicment ofall material facts relied upon herein, und the proposed conduct in practice conforms with the information you provided, as addcessed in this opinion. (Changes or other developments in the Taw (including, but not limited to, the Code of Official Conduct, House rules, Commitice guidance, advisory opinions, statutes, regulations or‘The Honorable William M. Causidy Page 3 3. The payment is for services on an ongoing basis, not for individual presentations or lectures, 4, The teacher's responsitilities include class preparation and student evaluation (for example, grading pspers, testing, end. homework); 5. The students receive credit for the course tanghe, 6, The compensetion does not exceed that nonnally received by others. at the institution for a comparable level of instruction end. amount of work; 7. Noofficial resomess, including staf? time, awe used in connection with the teaching; 8, The teaching docs not interftre with official responsibilities nor is it otherwise inconsistent with the performance of congressional duties; and 9. The employment ar compensation does nog represent @ significant potential for conflict of interest, Tlems 1 through 6 should be confirmed in writing by the institution at which the paid teaching will occur. Documeniation might ba in the form of an explanstory letioe or copy of a teaching contract attached to the request for Committee approval. Items 7 through 9 should be affirmed in writing by tho individual secking to teach. 2. Rules Applicable to Member Physicians In addition to tho provision regarding compensation for teaching discussed above, section 502 of the Tihics in Goverment Act prohibits Mémbers from, among other things, practicing ‘modicine for compenaition, receiving compeiation for eny camrent services from’ a medical partnorship or similar entity, or allowing such an entity to use the Member's name, ‘The Committee hrs determined that » Member docs not violate these fiduciary duty restrictions if the Member ‘acoepts payment for professional mnedical services in an amount that does nat exxoced the actual anc? necessary expenses associated with the medical services that are pravided by the Member* ‘The Commitice requires any Member who teccives compensilion under the limlied conditions for practicing doctors to file an annual sisicment with the Standerde Commitice that describes the ‘Member's total charges, foes reccived, and total expensos. 4 320 2008 House thier Mamual at 218-19; February 23, 1998 Advisary Memorandum, reprinted in 200 House Bikes Marwal t 385-48,‘The Honorable William M. Cassidy Paged 3. Rules Applicable to Conducting Research The ban oa Honoraris, disused above, appliss to recipt of compensetion for writings related 0 one’s offical duties? Gcoemlly, however, ta ban does nat epply to writing thet ismerely an incidental part of the work for waich payment is made, auch as conducting research, * In addition, several provisions of the ftdoral criminal code and House rules restrict the ability of Members to bosoms involved with outside organizations, inaloding universes, in ways that require interaction with the federal government” Members are prohibited by 18 U.S.C. § 203 from asking for or receiving compensation for “representational services” rendered in relation 10-4 iatter or proceeding in which Ge United States is « party or bes e direet and substantial interest, Even absent compensation, 18 U.S.C. § 205 prohibits Members and employees from acting as an agent or sttomey far another person ot organization fer prosecuting 2 claim against the United States or in connection with “any covered matter.” A covered matter includes any judiciat or other proceeding, application, request for a ruling or other determinetion, contract, claim, comtsoversy, investigation, charges, secusation, arrest, or oiher particular matier. These criminal statuies arc enforved by the US. Department of Justice, and thus, the Committee cannot give definitive guidance on thefr scope. Similarly, House Rule 25, clause 6 provides that: ‘A person may not be an officer or employee of the Howse, or continne in its employment, if he acts as an agent for the prosecution of any claim against the Goverement, or if le ia intorested in such a clair, except as un original claimant or in the proper discharge of official duties, ‘As with 18 U.S.C. §205, this prohibition applies even if tho individual docs not receive compensation for the represeatational services, ‘These provisions are implicetcd if!a Member secis research grant funding for.a university project from a federal governmeat entity. 4. Outside Rarned Income Restrictions and Financial Disclosures Federal law and House tule 25 limit the emount of outside eamed income Members ancd certains Howse employees may receive in a calendar year.’ For 2009 and 2010, that limit is $26,550 Per year, “Eamed income” is defined to include wages, salaries, fees, and any othes amounts Teccived as compensation fr services.” Any earned inoomye also must be reported on the Financial Disclosure Statement required of Members and senior staff employees by title T of dhe Ethics in Government Act of 1978, as amended. Pursuant to Committee interpretation of this sfstutory defsiton the value of ecesenry expenses and benefits provided by employers seperate from sry * ee Howse Ral 25, ch, o) © Sce.2008 Howe Bthics Moral et 93, 7 hese seatrictions also apply to all oust employees md federal government ecmployess, * Sen $US. app. 4 § S01(s)1); Howse Rule 25, el (49). * See louse Rule 25, cl 4¢@)1; 2008 ose Sihice Maral st 28,‘The Hononible William M. Cassidy Page 7 Changes or other developments in the law (including, but not limited fo, the Code of ‘Official Conduct, House mules, Committes guidance, advisory opinions, statutes, regulations or ‘cise law) may affect the analysis or conclusions drawn in this advisory opinion, The Committec reserves the right to reconsider the questions and issues raised in this advisory opinion and to rescind, modify, or terminate this opinion if required by the interests of the Hoise. However, the ‘Committee will rescind an advisory opinicn only if relevant and material facis were’ not ‘completely and accurately disclased fo the Committee at the time the opinion wes issued. In the ‘eveat that this advisory opinion is modified or terminsted, the Commitioe will not take any adverse action against you with respect to any action teken in good faith reliance upon this advisory opinion so Jong es sich conduct such ection was promptly discontinued upon notification of the modification or termination of this advisory opinion, If you have any further questions, please contect the Comimitios’s Office of Advice and ‘Education at extension 5-7103, PO— Silliman, Zoe Lofgren JoBonner Chair Ranking Republican Member ZLIBSpE=D