114TH CONGRESS 

2D SESSION H. R. 5063 

AN ACT 

To limit donations made pursuant to settlement agreements 

to which the United States is a party, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Stop Settlement Slush 

3 Funds Act of 2016’’. 

4 SEC. 2. LIMITATION ON DONATIONS MADE PURSUANT TO 

5 SETTLEMENT AGREEMENTS TO WHICH THE 

6 UNITED STATES IS A PARTY. 

7 (a) LIMITATION ON REQUIRED DONATIONS.—An of8 ficial or agent of the Government may not enter into or 

9 enforce any settlement agreement on behalf of the United 

10 States, directing or providing for a payment to any person 

11 or entity other than the United States, other than a pay12 ment that provides restitution for or otherwise directly 

13 remedies actual harm (including to the environment) di14 rectly and proximately caused by the party making the 

15 payment, or constitutes payment for services rendered in 

16 connection with the case. 

17 (b) PENALTY.—Any official or agent of the Govern18 ment who violates subsection (a), shall be subject to the 

19 same penalties that would apply in the case of a violation 

20 of section 3302 of title 31, United States Code. 

21 (c) EFFECTIVE DATE.—Subsections (a) and (b) 

22 apply only in the case of a settlement agreement concluded 

23 on or after the date of enactment of this Act. 

24 (d) DEFINITION.—The term ‘‘settlement agreement’’ 

25 means a settlement agreement resolving a civil action or 

26 potential civil action. 
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1 (e) REPORTS ON SETTLEMENT AGREEMENTS.— 

2 (1) IN GENERAL.—Beginning at the end of the 

3 first fiscal year that begins after the date of the en4 actment of this Act, and annually thereafter, the 

5 head of each Federal agency shall submit electroni6 cally to the Congressional Budget Office a report on 

7 each settlement agreement entered into by that 

8 agency during that fiscal year that directs or pro9 vides for a payment to a person or entity other than 

10 the United States that provides restitution for or 

11 otherwise directly remedies actual harm (including 

12 to the environment) directly and proximately caused 

13 by the party making the payment, or constitutes 

14 payment for services rendered in connection with the 

15 case, including the parties to each settlement agree16 ment, the source of the settlement funds, and where 

17 and how such funds were and will be distributed. 

18 (2) PROHIBITION ON ADDITIONAL FUNDING.— 

19 No additional funds are authorized to be appro20 priated to carry out this subsection. 

21 (3) SUNSET.—This subsection shall cease to be 

22 effective on the date that is 7 years after the date 

23 of the enactment of this Act. 

24 (f) ANNUAL AUDIT REQUIREMENT.— 
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1 (1) IN GENERAL.—Beginning at the end of the 

2 first fiscal year that begins after the date of the en3 actment of this Act, and annually thereafter, the In4 spector General of each Federal agency shall submit 

5 a report to the Committees on the Judiciary, on the 

6 Budget and on Appropriations of the House of Rep7 resentatives and the Senate, on any settlement 

8 agreement entered into in violation of this section by 

9 that agency. 

10 (2) PROHIBITION ON ADDITIONAL FUNDING.— 

11 No additional funds are authorized to be appro12 priated to carry out this subsection. 

Passed the House of Representatives September 7, 

2016. 

Attest: 

Clerk. 

114TH CONGRESS 

2D SESSION H. R. 5063 

AN ACT 

To limit donations made pursuant to settlement 

party, and for other purposes. agreements to which the United States is a