Truth in Settlements Act of 2014

Summary: Truth in Settlements Act of 2014 - Sets forth new requirements for the public disclosure of any covered settlement agreement entered into by a federal executive agency.&nbsp; Defines "covered settlement agreement" as a settlement agreement (including a consent decree) that: (1) is entered into by an executive agency, (2) relates to an alleged violation of federal civil or criminal law, and (3) requires the payment of not less than $1 million by one or more non-federal persons (entities not within the federal government). Requires the head of each executive agency to make publicly available on the agency website&nbsp;a list of each covered settlement agreement entered into by the agency, which shall include:&nbsp;(1) the names of the parties to the settlement&nbsp;agreement and the date of such agreement; (2) a description of the claims that were settled under the agreement; (3) the amount each party to the agreement is obligated to pay under the terms of the agreement and the total amounts required to be paid; and (4) for each settling party, the amount the settling party is obligated to pay that has been designated as a civil penalty or fine. Requires: (1) such information to remain publicly available for five years after the date of the agreement, and (2) a copy of a covered settlement agreement to remain publicly available until at least one year after the date of the agreement, or until five years after such date for an agreement under which a non-federal person is required to pay not less than $50 million. Limits the disclosure of provisions of a covered settlement agreement that are subject to a confidentiality agreement.  Requires the issuer of securities subject to reporting requirements under the Securities Exchange Act of 1934 to describe in required reports any claim of a tax deduction relating to a payment under a covered settlement agreement. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Truth in Settlements Act of 2014''.

SEC. 2. INFORMATION REGARDING SETTLEMENT AGREEMENTS ENTERED INTO BY 
              FEDERAL AGENCIES.

    (a) Requirements for Settlement Agreements.--
            (1) In general.--Chapter 3 of title 5, United States Code, 
        is amended by adding at the end the following:
``Sec. 307. Information regarding settlement agreements
    ``(a) Definitions.--In this section--
            ``(1) the term `covered settlement agreement' means a 
        settlement agreement (including a consent decree) that--
                    ``(A) is entered into by an Executive agency;
                    ``(B) relates to an alleged violation of Federal 
                civil or criminal law; and
                    ``(C) requires the payment of a total of not less 
                than $1,000,000 by one or more non-Federal persons;
            ``(2) the term `entity within the Federal Government' 
        includes an officer or employee of the Federal Government 
        acting in an official capacity; and
            ``(3) the term `non-Federal person' means a person that is 
        not an entity within the Federal Government.
    ``(b) Information To Be Posted Online.--
            ``(1) Requirement.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                head of each Executive agency shall make publicly 
                available in a searchable format in a prominent 
                location on the Web site of the Executive agency--
                            ``(i) a list of each covered settlement 
                        agreement entered into by the Executive agency, 
                        which shall include, for each covered 
                        settlement agreement--
                                    ``(I) the date on which the parties 
                                entered into the covered settlement 
                                agreement;
                                    ``(II) the names of the parties 
                                that settled claims under the covered 
                                settlement agreement;
                                    ``(III) a description of the claims 
                                each party settled under the covered 
                                settlement agreement;
                                    ``(IV) the amount each party 
                                settling a claim under the covered 
                                settlement agreement is obligated to 
                                pay under the settlement agreement;
                                    ``(V) the total amount the settling 
                                parties are obligated to pay under the 
                                settlement agreement; and
                                    ``(VI) for each settling party, the 
                                amount the settling party is obligated 
                                to pay that has been designated as a 
                                civil penalty or fine, or otherwise 
                                specified as not tax deductible under 
                                the covered settlement agreement; and
                            ``(ii) a copy of each covered settlement 
                        agreement entered into by the Executive agency.
                    ``(B) Confidentiality provisions.--The requirement 
                to disclose information or a copy of a covered 
                settlement agreement under subparagraph (A) shall apply 
                to the extent that the information or copy (or portion 
                thereof) is not subject to a confidentiality provision 
                that prohibits disclosure of the information or copy 
                (or portion thereof).
            ``(2) Period.--The head of each Executive agency shall 
        ensure that--
                    ``(A) information regarding a covered settlement 
                agreement is publicly available on the list described 
                in paragraph (1)(A)(i) until at least the date that is 
                5 years after the date of the covered settlement 
                agreement; and
                    ``(B) a copy of a covered settlement agreement made 
                available under paragraph (1)(A)(ii) is publicly 
                available until--
                            ``(i) at least the date that is 1 year 
                        after the date of the covered settlement 
                        agreement; or
                            ``(ii) for a covered settlement agreement 
                        under which a non-Federal person is required to 
                        pay not less than $50,000,000, at least the 
                        date that is 5 years after the date of the 
                        covered settlement agreement.
    ``(c) Public Statement.--If the head of an Executive agency 
determines that a confidentiality provision in a covered settlement 
agreement, or the sealing of a covered settlement agreement, is 
required to protect the public interest of the United States, the head 
of the Executive agency shall issue a public statement stating why such 
action is required to protect the public interest of the United States, 
which shall explain--
            ``(1) what interests confidentiality protects; and
            ``(2) why the interests protected by confidentiality 
        outweigh the public's interest in knowing about the conduct of 
        the Federal Government and the expenditure of Federal 
        resources.
    ``(d) Requirements for Written Public Statements.--Any written 
public statement issued by an Executive agency that refers to an amount 
to be paid by a non-Federal person under a covered settlement agreement 
shall--
            ``(1) specify which portion, if any, of the amount to be 
        paid under the covered settlement agreement by a non-Federal 
        person--
                    ``(A) is a civil or criminal penalty or fine to be 
                paid for a violation of Federal law; or
                    ``(B) is expressly specified under the covered 
                settlement agreement as not deductible for purposes of 
                the Internal Revenue Code of 1986; and
            ``(2) describe in detail any actions the non-Federal person 
        shall take under the covered settlement agreement--
                    ``(A) in lieu of payment to the Federal Government 
                or a State or local government; or
                    ``(B) in addition to such a payment.
    ``(e) Reporting.--
            ``(1) In general.--Not later than January 15 of each year, 
        the head of an Executive agency that entered into a covered 
        settlement agreement during the previous fiscal year shall 
        submit to each committee of Congress with jurisdiction over the 
        activities of the Executive agency a report indicating--
                    ``(A) how many covered settlement agreements the 
                Executive agency entered into during that fiscal year;
                    ``(B) how many covered settlement agreements the 
                Executive agency entered into during that fiscal year 
                had any terms or conditions that are required to be 
                kept confidential; and
                    ``(C) how many covered settlement agreements the 
                Executive agency entered into during that fiscal year 
                for which all terms and conditions are required to be 
                kept confidential.
            ``(2) Availability of reports.--The head of an Executive 
        agency that is required to submit a report under paragraph (1) 
        shall make the report publically available in a searchable 
        format in a prominent location on the Web site of the Executive 
        agency.''.
            (2) Technical and conforming amendment.--The table of 
        sections for chapter 3 of title 5, United States Code, is 
        amended by adding at the end the following:

``307. Information regarding settlement agreements.''.
    (b) Securities Reporting.--
            (1) In general.--Each issuer of securities that is required 
        to file annual or other periodic reports with the Commission 
        under section 13 or 15(d) of the Securities Exchange Act of 
        1934 (15 U.S.C. 78m, 78o(d)) shall describe in such a report 
        any claim filed for a deduction under the Internal Revenue Code 
        of 1986 during the reporting period that relates to a payment 
        required under a covered settlement agreement.
            (2) Definitions.--As used in this subsection--
                    (A) the term ``Commission'' means the Securities 
                and Exchange Commission;
                    (B) the term ``covered settlement agreement'' has 
                the meaning given that term in section 307 of title 5, 
                United States Code, as added by subsection (a); and
                    (C) the term ``issuer'' has the same meaning as in 
                section 3 of the Securities Exchange Act of 1934 (15 
                U.S.C. 78c).
    (c) Review of Confidentiality of Settlement Agreements.--Not later 
than 6 months after the date of enactment of this Act, the Comptroller 
General of the United States shall submit to Congress a report 
regarding how Executive agencies (as defined under section 105 of title 
5, United States Code) determine whether the terms of a settlement 
agreement or the existence of a settlement agreement will be treated as 
confidential, which shall include recommendations, if any, for 
legislative or administrative action to increase the transparency of 
Government settlements while continuing to protect the legitimate 
interests that confidentiality provisions serve.