Truth in Settlements Act of 2015

Summary: (This measure has not been amended since it was passed by the Senate on September 21, 2015.  Truth in Settlements Act of 2015 Sets forth new requirements for the public disclosure of any covered settlement agreement entered into by a federal executive agency.&nbsp;  (Sec. 2) Defines "covered settlement agreement" as a settlement agreement (including a consent decree) that: (1) is entered into by an executive agency, relates to an alleged violation of federal civil or criminal law, and requires the payment of not less than $1 million by one or more non-federal persons (entities not within the federal government); or (2) relates to the rulemaking process or an alleged failure of an executive agency to engage in such process and requires the payment of not less&nbsp;than $200,000 in attorney fees, costs, or expenses by an executive agency to a non-federal person. Requires agency heads to make publicly available on the agency website&nbsp;a copy of each covered settlement agreement entered into by the agency and a list for each agreement, which shall include:  the names of the parties to the settlement&nbsp;agreement and the date of such agreement;  a description of the claims that were settled under the agreement;  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;  for each settling party, the amount the settling party is obligated to pay that has been expressly specified as a civil or criminal penalty or fine and any amount expressly specified as not deductible for tax purposes; and  a description of where amounts collected under the agreement will be deposited.  Requires each agency to ensure that: (1) such information remains publicly available for not less than 5 years beginning on the date of the agreement, and (2) a copy of a covered settlement agreement remains publicly available for not less than 1 year beginning on such date or for not less than 5 years in the case of an agreement under which a non-federal person is required to pay at least $50 million. Exempts the provisions of a covered settlement agreement that are subject to a confidentiality agreement from disclosure. Directs an agency to issue a public statement explaining any determination that confidentiality of an agreement is required to protect U.S. interests. Requires agencies to submit an annual report indicating:   how many covered settlement agreements the agency entered into during the previous fiscal year;  how many of such agreements had terms or conditions that were required to be kept confidential;  the total amount of attorney fees, costs, and expenses paid to non-federal persons under such agreements; and  the number of such agreements between the agency and non-federal persons that involved regulatory action or regulatory changes during that fiscal year.  Directs the Comptroller General to report to Congress on how agencies determine whether the terms or existence of a settlement agreement will be treated as confidential. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Truth in Settlements Act of 2015''.

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)--
                    ``(A) that is entered into by an Executive agency; 
                and
                    ``(B)(i) that--
                            ``(I) relates to an alleged violation of 
                        Federal civil or criminal law; and
                            ``(II) requires the payment of a total of 
                        not less than $1,000,000 by 1 or more non-
                        Federal persons; or
                    ``(ii) that--
                            ``(I) relates to the rule making process of 
                        the Executive agency or an alleged failure by 
                        the Executive agency to engage in a rule making 
                        process; and
                            ``(II) requires the payment of a total of 
                        not less than $200,000 in attorney fees, costs, 
                        or expenses by the Executive agency or entity 
                        within the Federal Government to a non-Federal 
                        person;
            ``(2) the term `entity within the Federal Government' 
        includes an officer or employee of the Federal Government 
        acting in an official capacity;
            ``(3) the term `non-Federal person' means a person that is 
        not an entity within the Federal Government; and
            ``(4) the term `rule making' has the meaning given that 
        term under section 551(5).
    ``(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;
                                    ``(VI) for each settling party--
                                            ``(aa) the amount, if any, 
                                        the settling party is obligated 
                                        to pay that is expressly 
                                        specified under the covered 
                                        settlement agreement as a civil 
                                        or criminal penalty or fine; 
                                        and
                                            ``(bb) the amount, if any, 
                                        that is expressly specified 
                                        under the covered settlement 
                                        agreement as not deductible for 
                                        purposes of the Internal 
                                        Revenue Code of 1986; and
                                    ``(VII) a description of where 
                                amounts collected under the covered 
                                settlement agreement will be deposited, 
                                including, if applicable, the deposit 
                                of such amounts in an account available 
                                for use for 1 or more programs of the 
                                Federal Government; 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) for a period of not less than 5 
                years, beginning on 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--
                            ``(i) for a period of not less than 1 year, 
                        beginning on 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, for a period of 
                        not less than 5 years, beginning on 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 expressly specified under the covered 
                settlement agreement as 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;
            ``(2) if no portion of the amount to be paid under the 
        covered settlement agreement by a non-Federal person is 
        expressly specified under the covered settlement agreement as a 
        civil or criminal penalty or fine, include a statement 
        specifying that is the case; and
            ``(3) describe in detail--
                    ``(A) any actions the non-Federal person shall take 
                under the covered settlement agreement in lieu of 
                payment to the Federal Government or a State or local 
                government; and
                    ``(B) any payments or compensation the non-Federal 
                person shall make to other non-Federal persons under 
                the covered settlement agreement.
    ``(e) Confidentiality.--The requirement to disclose information 
under subsection (d) shall apply to the extent that the information to 
be disclosed (or portion thereof) is not subject to a confidentiality 
provision that prohibits disclosure of the information (or portion 
thereof).
    ``(f) 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 or that entered into a settlement 
        agreement that involves regulatory action or regulatory changes 
        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 
                that had any terms or conditions that are required to 
                be kept confidential;
                    ``(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;
                    ``(D) the total amount of attorney fees, costs, and 
                expenses paid to non-Federal persons under settlement 
                agreements (including consent decrees) of the Executive 
                agency during that fiscal year; and
                    ``(E) the number of settlement agreements 
                (including consent decrees) between the Executive 
                agency and non-Federal persons that involve regulatory 
                action or regulatory changes, including the 
                promulgation of new rules, during that fiscal year.
            ``(2) Availability of reports.--The head of an Executive 
        agency that is required to submit a report under paragraph (1) 
        shall make the report publicly 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) 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.

            Passed the Senate September 21, 2015.

            Attest:

                                                JULIE E. ADAMS,

                                                             Secretary.