I “:3 ?'€p»r. gffgim '78? 86-679GOV Congressional «Research Service The Library of Congress Washington, DC. 20540 A BRIEF HISTORY OF CONGRESSIONAL ACTION RESTRICTING MEMBERS’ OUTSIDE EARNED INCOME 4 ”.t Mildred Amer evMIwIih,,mfim Analyst in American National Government “””*”“”i Government Division I , _ May 1, 1986 Government F-‘ubhca’UOfl5- Unn AUG 0 1}994 Washingter’ \_jm’sje;'Sit‘)/ St. Louis MO‘ 53130 niversi issouri uunin HI 111 | an 010 ‘0394||’-l|‘Tfl| ABSTRACT The issue of outside earned income for Senators and Representatives has been considered in Congress for more than ten years. This report documents congressional action and the limits placed on Members‘ outside earned income during that time. OUTSIDE EARNED INCOME OF MEMBERS OF CONGRESS: CURRENT RESTRICTIONS AND A BRIEF HISTORY OF CONGRESSIONAL ACTION Periodically, since 1974, both Houses of Congress have considered measures restricting Members‘ outside earned income. "Outside earned income“ is any income, in addition to congressional salaries, that is received as a result of personal services involving the active participation of Members. It includes income from businesses, professions, or other activities in which the personal services of Members are material income-producing factors. It also includes honoraria received for'speaking, writing, or making personal appearances. This report discusses restrictions on Members’ outside earned income. It describes the current restrictions, and it reviews the history of congressional action to impose limits on that income. CURRENT RESTRICTIONS Federal statutes, the rules of each Chamber, and the Constitution, place a variety of limits on Members of Congress with regard to outside earned income. Some restrictions limit the dollar amount of outside earned income a Member may receive; others limit the types of activities for which Members may receive compensation. CRS-2 Dollar Restrictions Representatives may receive outside earned income of no more than 30 percent of their annual $75,100 congressional salary; that is, no more than $22,530 per year. Moreover, Representatives are prohibited from receiving honoraria earned from speaking, writing, or personal appearances in excess of $2,000 for each speech, article, or appearance. 1/ Senators are not subject to a limit on outside earned income, except with regard to honoraria for speaking, writing, or personal appearances. The aggregate amount of honoraria received may not exceed 40 percent of a Senator's annual $75,100 congressional salary; that is, the aggregate may not exceed $30,040 per year. Senators, like Representatives, are also prohibited from receiving honoraria in excess of $2,000 for each speech, article, or appearance. 3/ Restrictions on Type of Outside Activities Some of the restrictions on the types of outside activities Members of Congress may engage in for compensation apply to all Members, others apply only to Senators. Both Representatives and Senators are prohibited from: ° Receiving or soliciting compensation for "services rendered or to be rendered" before Federal agencies [18 U.S.C. 203]; ° Engaging in certain acts of "self dealing" with private foundations [26 U.S.C. 4941, 4946]; _1/ House Rule XLVII; Federal Election Campaign Act of 1971, as amended (2 U.S.C. 441i); P.L. 98-63 (2 U.S.C. 31-1). 2/ P.L. 98-63, as amended by P.L. 98-190 (Further Continuing Appropriations for 1986, which raised the limit on Senators’ annual honoraria from 30 percent to 40 percent of salary); and the Federal Election Campaign Act of 1971, as amended (2 U.S.C. 441i). CRS-3 Receiving any compensation of any kind from foreign governments [U.S. Constitution, Art. 1, Sec. 9]; Practicing in some areas of law [18 U.S.C. 203, 204; 25 U.S.C. 70o; 46 U.S.C. 1223; 5 U.S.C. 501]; Accepting benefits which "might be construed by reasonable persons as influencing the performance of [their] official duties" [72 Stat. Part II, B 12, para. 5]; and Receiving compensation as a result of "influence improperly exerted" from their congressional position [House Rule XLII(3); Senate Rule XXXVII(l)]. Additional restrictions apply specifically to members of the Senate. Senators are prohibited from-- ° Engaging in outside employment for compensation which is "in conflict with" the performance of official duties [Senate Rule XXXVII(2)]; Affiliating with a firm, partnership, or association for the purpose of providing professional services for compensation; permitting his or her name to be used by such an organization; and practicing any profession for compensation "to any extent" during regular office hours of the Senate [Senate Rule XXXVII(5)]. Serving on the board of any regulated or publicly held business corporation unless certain specified conditions have been met [Senate Rule XXXVII(6)]. ‘ Reporting Requirements Members of each Chamber are required to identify outside earned income in their annual public financial disclosure statements filed with the Clerk of the House or the Secretary of the Senate [2 U.S.C. 701 et seq.; House Rule XLIV; Senate Rule XXXIV]. CRS-4 LEGISLATIVE ACTIVITY SINCE 1974 The following portion of this report describes the legislative activity since 1974 that has led to monetary restrictions on the outside earned income of Members of Congress. 1974: First Restrictions on Earned Income (Honoraria Limits) The first restrictions on the outside earned income of government officials were limitations on honoraria imposed by the Federal Election Campaign Act Amendments of 1974 (P.L. 93-443). Effective January 1, 1975, all elected or appointed Federal officials and employees were limited to $1,000 per speech or article and earnings of no more than $15,000 in honoraria in any calendar year. The restrictions were adopted because of the perception that honoraria earnings of some Members of Congress were excessive. These earnings were criticized by those who thought Congress should enact a pay raise for its Members instead of allowing them to supplement their income with honoraria. 1976: Increase in Honoraria Limits; Limitations on Other Outside Earned Income Effective in May 1976, the Federal Election Campaign Act Amendments of 1976 (P.L. 94-283) increased Federal officials’ and employees‘ permissible honoraria to $2,000 per speech or appearance and $25,000 annually. In that same year, the term "outside earned income" was first associated with government officials in general and the Congress in particular when the President's Commission on Legislative, Executive, and Judicial Salaries (Peterson Commission) recommended salary increases for the three branches of government CRS~5 along with certain ethical reforms, including limitations on outside earned income. These recommendations came during a time when both Houses of Congress began to consider certain changes in their codes of ethics. The Congress was responding to a number of polls and other studies in the mid-1970's which had indicated a decline in public confidence in that institution. "Watergate" as well as the alleged improper activities of some public officials, including Members of Congress, reportedly had diminished public confidence in all three branches of government. Moreover, various polls also indicated the public's desire for ethical reforms in Congress. 1977: Enactment of Limitations on Congressional Outside Earned Income ~House Action In the summer of l976 the House created the Commission on Administrative Review (Obey Commission) to study the procedures and operations of the House and to recommend reforms. The commission studied various House reform proposals as well as the recommendations of the Peterson Commission which had been endorsed by President Gerald Ford, President-elect Jimmy Carter, and the‘ new House Speaker, Thomas P. O'Neill, Jr. Subsequently, in early l977 the commission recommended additions and amendments to the House Code of Official Conduct. Included was a rule limiting outside earned income. Ultimately, on March 2, 1977, the House adopted the commission's ethics reform proposals (H.Res. 287), including a new House Rule (XLVII) limiting the annual amount of money for personal services rendered that Members could earn in addition to their congressional salaries. CRS-6 Effective January 1979, Representatives were to be limited in annual outside earned income to no more than l5 percent of salary, In addition, Rule XLVII placed a limit on honoraria of $750 per speech, appearance, or article. The House honoraria limits superseded the higher limitations of the Federal Election Campaign Act as did Senate limits subsequently adopted. Senate Action In December l976, the Commission on the Operation of the Senate (established in l975 to study the Senate) issued its final report in which it advocated the adoption of more explicit standards of senatorial conduct, including restrictions on outside earned income. Pursuant to these recommendations and those of the Peterson (Pay) Commission, the Senate established in January 1977 the Special Committee on Official Conduct to write a new code of ethics for the Senate. Subsequently, on April 1, 1977, the Senate adopted the committee's recommended additions and amendments to its Code of Conduct (3. Res. ll0), including a rule (known as Rule XLlV, then Rule XXXVI, and subsequently abolished) limiting outside earned income. Scheduled to begin in January 1979, that rule placed a 15 percent of salary limitation on the annual outside earned income of Senators as well as officers and employees of the Senate compensated at a rate in excess of $35,000 a year. The rule also placed an honoraria limit on Senators of $1,000 per speech, appearance, or article, and a similar limit of $300 on designated officers and employees. Subsequently, in July l977, five Senators filed suit against the Senate to nullify the limit on outside earned income. That suit was dismissed by a U.S. District Court judge in March 1978. CRS=7 1978: Unsuccessful House Attempt to Repeal Outside Earned Income Limits On September 20, l978, during consideration of what later became the Ethics in Government Act of 1978-(P.L. 95-521), the House rejected (by a vote of 97-290) an attempt to repeal the Rule (XLVII) limiting Members’ outside earned income. 1979: Increase in House Honoraria Limit; Postponement of Senate Earned Income Rule House Action Effective when the 96th Congress convened in January 1979, House Rule XLVII limited Representatives’ outside earned income to no more than 15 percent of their annual salary. Moreover, when the House adopted its Rules for the 96th Congress (H.Res. 5) that same month, it amended Rule XLVII to increase the honoraria limit for Members from $750 to $1,000 per speech, appearance, or article. Senate Action On March 8, 1979, the Senate adopted S. Res. 93, postponing from January 1979 to January 1983, the effective date for the outside earned income limitation placed by Rule XXXVI on Senators and designated officers and employees. However, the issue was raised again in the Senate on March 28, 1979, because of the considerable attention given by the Senate's earlier action by an unrecorded vote. At this time, the Senate considered S. Res. ll5, which sought to make Rule XXXVI effective again in the 96th Congress, on January l, 1979. 8. Res. ll5 was defeated by a vote of 44 to 54. Thus, the Senate's CRS=8 outside earned income limitation was postponed for five years. This resulted in Representatives having a 15 percent of salary limit on annual outside earned income and Senators only having an honoraria limit of $25,000 annually and $2,000 per honorarium (Federal Election Campaign Act). 1980: Review of the Senate Code of Official Conduct On February 1, 1980, the Senate unanimously adopted S«Res. 109, directing the Select Committee on Ethics to undertake a comprehensive review of the Senate Code of Official Conduct and the provisions for its enforcement. The committee was instructed to report back to the Senate within a year, but no report has been issued. 1981: Increases in Members‘ Permissible Outside Earned Income House Action During the First Session of the 97th Congress, there were several votes to alter the outside earned income restrictions on Representatives. On October 28, 1981, the House defeated a measure (H. Res. 251) which proposed raising to 40 percent of salary Members’ permissible outside earned income for 1981-1983 as well as permitting Members to earn honoraria of $2,000 per speech, appearance, or article. H. Res. 251 was defeated by a vote of 147-271. Subsequently on December 15, 1981, the House passed H. Res. 305 (voice vote) which raised Members‘ annual outside earned income to 30 percent of salary (retroactive to January 1981) and removed the $1,000 honoraria limit. Consequently, this restricted Members of the House to honoraria of $2,000 pursuant to the Federal Election Campaign Act. Moreover, H. Res. 305 stipulated that honoraria for purposes CRS=9 of the annual limitation would be attributable to the calendar year of payment for services. Senate Action When Congress enacted P.L. 97-51 (continuing appropriations measure) in October 1981, it included a Senate-sponsored provision removing the annual $25,000 honoraria limit imposed by the Federal Election Campaign Act (2 U.S.C. § 4411) on all elected and appointed officers and employees of the Federal Government. Thus, at the end of 1981, the House and Senate continued to have different limits on Members’ annual outside earned income. Representatives were restricted to a 30~percent-of-salary limit on all outside earned income and an honoraria limit of $2,000 per speech. Senators, on the other hand, had no annual outside .earned income limitations, but the same honoraria limit as Representatives of $2,000 per speech, appearance, or article. 1982: House Attempts to Impose An Outside Earnings Limitation on Senators; Repeal of the Senate Outside Earned Income Rule In June 1982 during consideration of an urgent supplemental appropriations measure (H.R. 5922), the House added an amendment to extend to the Senate the 30 percent of salary limitation on outside earned income. One impetus for the House action was Senate attempts to repeal recent changes in permissible business-related tax deductions allowed Members. In 1981 Congress had removed the $3,000 ceiling on Members’ annual tax deductions in order to allow them the same deductions when away from home as businessmen and private citizens. CRS-10 The issue was before the Congress again in 1982 resulting in a dispute between the House and Senate over Members’ outside earned income and tax deductions. During consideration of H.R. 5922 the Senate adopted an amendment reinstating the $3,000 annual living expense deduction. The House subsequently agreed to the Senate amendment with an amendment placing a 30 percent limit on outside earned income for Members of both Houses (it would have only affected Senators since House Rule XLVII already placed similar limits on Representatives’ outside earned income). 3 On June 22, 1982, the Senate disagreed with the House outside earned income limitation amendment. Subsequently, on June 23, 1982, the House voted to recede from the outside earned income amendment and concurred in the original amendment reinstating the $3,000 tax deduction ceiling. The measure was then cleared for the President who vetoed it for other reasons. Similar, subsequent measures contained no outside earned income limitation provisions. In September 1982, during consideration of a continuing appropriations bill for 1983 (H.J. Res. 599), Congress prohibited an increase in pay for its Members through December 17, 1982 (P.L. 97-276). Subsequently, in mid-December 1982 it was faced with expiration of the pay cap. On December 14, l982, the House adopted an amendment to H.J. Res. 631 (Further Continuing Appropriations for 1983) providing for a 15 percent pay raise for Members and placing a 30 percent of salary limit on all Members’ outside earned income, i.e., extended the limit to Senators. When the Senate considered the measure it rejected both the salary increase and the outside earned income limitation. Ultimately, in conference (with CRS-ll adjournment imminent for the 97th Congress), the earned income limitation was deleted from the bill in return for only House Members getting a pay raise. lf Consequently, when the 97th Congress adjourned in l982, Senators earned less salary than Representatives; but unlike Members of the House, they had no annual limitations on outside earned income. Repeal of Senate Outside Earned Income Rule On December 14, 1982, coincidentally the same day that the House voted for a salary increase and the limit on outside earned income, the Senate repealed (54-38) its Rule XXXVI which would have limited the annual outside earned income‘ of Senators and designated officers and employees beginning in January l983. 1983: Approval of a Pay Increase and Honoraria Limit for Senators In May 1983 following release of the annual financial disclosure reports required to be filed by Members of Congress, there was considerable publicity regarding the honoraria earned by Senators the previous year. They, unlike their House counterparts, were subject to no outside earned income restrictions. 3 During consideration of a supplemental appropriations bill for i983 (H.R. 3069), the House included a provision limiting to 30 percent of salary the honoraria permissible annually for all Members of Congress. This provision would have affected only Senators since House Rule XLVII already placed a similar limit on Representatives. H.R. 3069 further mandated the Commission on Legislative, Executive, and Judicial Salaries to include ‘l/ Plattner, Andy. House Chooses Pay Raise; Senate Opts for Honoraria. Congressional Quarterly Weekly Report, v. 40, December 25, l982. p. 3102. CRS-12 in its next report (1984) a recommendation for an appropriate salary for Members of Congress, assuming a complete prohibition on the receipt of honoraria by all Members of Congress. Subsequently, the honoraria limitation was deleted by the Senate Appropriations Committee. However, on June 9, 1983, the Senate adopted (51=4l) an amendment sponsored by Senator Henry Jackson restoring the proposed limit on honoraria and the mandate for the Commission on Salaries. Attempts to raise Senators‘ salaries to that of Representatives or allow Senators to choose between a pay raise and earned income restrictions failed. A week later, on June 16, 1983, the Senate reversed itself and voted (49-47) to raise Senators’ salaries to that of House Members ($69,800), effective, July 1, 1983. In the same amendment, sponsored by Senator Henry Jackson, the Senate voted to impose a 30 percent of salary limit on honoraria earned by its Members, effective January 1, 1984, and mandate the Salary Commission to recommend an appropriate congressional salary, assuming a complete prohibition on honoraria. 3/ It then rescinded action on the Jackson amendment adopted earlier which had imposed the honoraria limit without the pay raise. H.R. 3069 was signed into law (P.L. 98-63) on July 30, 1983. Subsequently, on June 23, 1983, the Senate defeated (34-58) an amendment to the 1984 Legislative Branch Appropriations bill (H.R. 3135) that would have placed an annual 30 percent of salary limit on Senators’ unearned income. Thus, during the last six months of 1983, Senators and Representatives earned the same salary, but only Representatives had a limitation on outside earned income. Effective January 1, 1984, Members of both Houses had a monetary _g/ The Commission on Executive, Legislative, and Judicial Salaries subsequently issued its report in 1985 and made no mention of honoraria. CRS-13 limit on annual outside earned income, Representatives having a limit on all types of income earned through personal services rendered, and Senators having a limit only on honoraria earned from speeches, appearances, or articles. 1985: Increase in Senators’ Honoraria Limit; Senate Attempt to Restrict Representatives‘ Sources of Outside Earned Income In December 1985 during consideration of a supplemental appropriations bill for l986 (H.J. Res. 465), the Senate adopted an amendment by Senator Joseph Biden prohibiting Senators, Representatives, and designated officers and employees of Congress from affiliating with firms, partnerships, or corporations for the purpose of providing professional services for compensation; from permitting their names to be used by such firms, partnerships, or corporations; and prouibiting them from practicing a profession for compensation during regular congressional office hours. These prohibitions already were applicable to Senators, Senate officers, and designated Senate employees in Senate Rule XXXV, but Senator Biden attempted to have them apply to the House as well. If enacted, Representatives would have been prevented from such activities as affiliating with law firms for compensation and having such firms use their names. Subsequently, the provision was dropped in conference in return for a provision increasing only Senators’ permissible annual honoraria from 30 percent to 40 percent of salary ($30,040 above their annual $75,100 salary). §/ H.J. Res. 465 was signed into law on December 19, 1985 (P.L. 99-190), and amended P.L. 98-63 which had limited all Members annual honoraria to 30 percent of salary. , 2/ Cohodas Nadine. $368.2 Billion Omnibus Spending Bill Cleared. Congressional Quarterly Weekly Report, v. 43, December 21, 1985. p. 2666. CRS“l4 1986: House Attempt to Raise Members’ Outside Earned Income On April 22, 1986, the House passed a resolution (H. Res. 427) which amended the House outside earned income rule. It raised Members‘ annual honoraria limits to 40 percent of salary (the same as the Senate) and repealed all other limits on the forms of permissible outside earned income. This action caused controversy because the resolution was called up with no advance notice, with few Members present on the floor, and was approved by voice vote without debate. Subsequently, the next day, the House Rules Committee held a hearing and reported H. Res. 432, vacating the proceedings by which H. Res. 427 was adopted the previous day, and providing that the resolution shall be considered to have been laid on the table. This had the effect of rescinding the House's action on H. Res. 427 and restoring House Rule XLVII as it was. The House agreed to consider H. Res. 432 (333-68) and it was adopted by voice vote. Thus, an honoraria limit of 40 percent of salary is the sole annual outside earned income restriction on Senators; whereas Representatives are limited to an annual 30 percent of salary on all types of outside earned income. CRS-15 TABLE 1. Salaries and Limits on Outside Earned Income for Representatives, l977-1986_1/ Outside earned income permitted Salary of Date Representatives_2/ Amount Percent of salary 1977 $57,500.00 $ 25,000 1/ N/A 1978 $57,500.00 3 25,000 3/ N/A 1979 $60,662.50 $ 9,099_§/ 15 1980 $60,662.50 $ 9,099 15 1981 7 $60,662.50 $ 18,198_£/ 30 1982 $60,662.50_§/ $ 18,198 30 1/ This table begins in March 1977 when the House voted to restrict Members’ annual outside earned income, effective January 1979. Therefore, in 1977 and 1978, the only limit on Representatives‘ annual outside earned income was the $25,000 honoraria limit imposed by the Federal Election Campaign Act of 1971, as amended (2 U.S.C., 441i). Had the 15 percent of salary limit imposed by House Rule XLVII been in effect in 1977 and 1978, Members’ outside earned income limit would have been 15 percent of salary, or $8,625. 5 _2/ Gross annual rate of pay for Members. 3/ Members of Congress received a pay raise, effective October 1979. For purposes of the outside earned income limit for that year, the House Standards Committee determined that the limit would be 15 percent of the new salary, or $9,099. fj On December 15, 1981, the House voted to raise Members’ permissable annual outside earned income from 15 percent of salary to 30 percent of salary retroactive to January 1981. _5/ Representatives received a pay raise, effective December 17, 1982. However, since they did not receive their first check under the new salary amount until January 1983, their salaries in 1982 remained at $60,662.50. N/A = Not applicable CRS-16 TABLE 1. Salaries and Limits on Outside Earned Income for Representatives, 1977-1986--(Continued) Outside earned income permitted Salary of Date Representatives 2/ Amount Percent of salary 1983 $69,800.00 6] $20,940 6/ 30 ($69,368.61) ($20,810.58) 1984 $72,600.00 Z] $21,780 1/ 30 ($72,366.67) (21,709.99) 1985 $75,100.00 8/ $22,530 8/ ($74,891.63) ($22,467.49) 30 1986 $75,100.00 $22,530 30 6/ Until 1983, the House Committee on Standards of Official Conduct determined permissible annual outside earned income according to the gross annual rate of pay in effect for Members. However, since that time it has been determined that sometimes Members have not or will not earn the expected gross annual amount in a calendar year, since they are paid each month for the previous month. fionsequently, not only their salaries but also their outside earned income for a particular year may vary from what is expected. For example, Representatives got a pay raise effective on December 17, 1982. They did not receive their first check at the new rate until January 1983, and that check was based on the two different gross annual rates of salary that in were in effect in December 1982. Thus, according to the office of the House Sergeant at Arms, in calendar year 1983, incumbents actually earned $69,368.61 and were subject to an outside earned income limit of $20,810.58. Freshmen Representatives in the 98th Congress received their first pay check in February 1983 and were paid during only 11 months that year. Thus, according to the office of the House Sergeant at Arms, in calendar year 1983, they earned less than incumbents ($63,595.62) and had an outside earned income limit of $19,078.69. 7/ Members of Congress received a pay raise, effective January 1984. Since Representatives did not receive their first check at the new salary level until February 1984, according to the office of the House Sergeant at Arms, they actually earned $72,366.67 in 1984 and had an outside earned income limit of $21,709.99. 8/ Members of Congress received a pay raise, effective January 1985. However, Representatives did not receive their first pay check at the new salary level until February 1985. According to the office of the House Sergeant (continued) CRS~l7 (continued) at Arms, they actually earned $74,891.63 in calendar 1985 and had an outside earned income limit of $22,467.49. Freshmen Representatives to the 99th Congress received their first pay check in February 1985, and thus were paid during only 11 months in 1985. According to the office of the House Sergeant at Arms, in calendar 1985, they earned $68,424.38 and had an outside earned income limit of $20,527.30 Sources: Except as noted, salary levels are drawn from U.S. Library of Congress. Congressional Research Service. A Brief History of Congressional Pay Legislation. CRS Report, April 16, 1985, by Paul Dwyer and Fred Pauls. Washington, 1985. Limits on outside earned income are set in House Rule XLVII and P.L. 98-63. CRS-18 TABLE 2. Salaries and Limits on Outside Earned Income for Senators, 1977-1986 / Outside earned income permitted Salary for Date Senators 3/ Amount Percent of salary 1977 $57,500.00 $25,000 1/ N/A 1978 $57,500.00 $25,000_1/ N/A 1979 $60,662.50 $25,000 / N/A 1980 $60,662.50 $25,000_§/ N/A 1981 $60,662.50 ~ 3/ N/A 1982 $60,662.50 5/ A ~ 5/ N/A 1983 $60 662.50 6/ ~ 7/ N/A 1983 $69,800.00 6/ ~_Z/ N/A 1984 $72,600.00_8/ $21,780_§/ 30 1985 5 $75,100.00 9/ 7 $22,530 2/ 30 1986 $75,100.00 $30,040 10/ 40 1/ This table begins in March 1977 when the Senate voted to restrict, Members’ annual outside earned income, effective January 1979. Therefore, in 1977 and 1978, the only limit on Senators’ annual outside earned income was the $25,000 honoraria limit imposed by the Federal Election Campaign Act of 1971, as amended (2 U.S.C., 4411). Had the 15 percent of salary limit been in effect in 1977 and 1978, Senators‘ outside earned income limit would have been 15 percent of salary, or $8,625. _g/ Gross annual rate of pay for Senators. 3/ In March 1979, the Senate postponed for five years (until 1983) its Rule YXXVI limiting Members’ annual outside earned income. Thus, Senators were still governed by.the $25,000 annual honoraria limitations imposed by the Federal Election Campaign Act. 3/ Public Law 97-51, signed in October 1981, abolished the $25,000 annual honoraria limit imposed by the Federal Election Campaign Act. Thus, Senators had no limits on outside earned income. (continued) CRS-l9 5/ Representatives received a pay raise, effective December 17, 1982. Senators, on the other hand, opted to continue to receive the same salary in return for no limits on outside earned income. 6/ Pursuant to P.L. 98-63, effective July 1, 1983, Senators received a pay increase and were paid at the same annual gross rate as Representatives. Thus, they were paid at two different salary levels during 1983. P.L. 98-63 also imposed an annual 30 percent of salary limit on honoraria earned by all Members of Congress. The limit on Senators did not take effect until January 1984. Z] In December 1982, the Senate repealed its Rule XXXVI which would have placed a 15 percent limit on Senators’ outside/earned income beginning January 1983. Accordingly, there was no limit on Senators‘ outside earned income in 1983. 8/ According to the Senate Disbursing Office, Senators are paid twice a month; and in 1984, they actually earned $72,600. In January 1984, the 30 percent of salary limit on honoraria went into effect for Senators. 9/ According to the Senate Disbursing Office, Senators are paid twice a month; and in 1985, they actually earned $75,100.00. 10/. PoLo 99-190, effective January 1, 1986, raised Senators‘ permissible annual honoraria to 40 percent of salary. This honoraria limit is the sole outside earned income restriction that Senators have. N/A = Not applicable. Sources: Except as noted, salary levels are drawn from U.S. Library of Congress. Congressional Research Service. A Brief History of Congressional Pay Legislation. CRS Report, April 16, 1985, by Paul Dwyer and Fred Pauls. Washington, 1985. Limits on outside earned income are set in P.L. 98-63, as amended by P.L. 99-190. MLA/rla LIBRARY or VVASHINGTON UNI‘vlER8lTY ST. LOUES - MO.