Stop Settlement Slush Funds Act of 2023

Subjects: Law, Civil actions and liability, Congressional oversight, Criminal investigation, prosecution, interrogation, Government ethics and transparency, public corruption, Government lending and loan guarantees, Government liability, Government studies and investigations, Social work, volunteer service, charitable organizations

Summary:  <p><b>Stop Settlement Slush Funds Act of 2023 </b></p> <p>This bill prohibits the federal government from entering into or enforcing a settlement agreement on behalf of the United States that provides for a payment to any person or entity other than the United States. The bill provides exceptions to allow payments that (1) remedy actual harm (including to the environment) caused by the party making the payment, or (2) constitute a payment for services rendered in connection with the case.</p> <p>Government officials or agents who violate this prohibition may be removed from office or required to forfeit to the government any money they hold for such purposes to which they may otherwise be entitled.</p> <p>Agencies must report annually for seven years to the Congressional Budget Office about the parties, funding sources, and distribution of funds for their settlement agreements permitted by the exceptions in this bill. The Office of Inspector General for each agency must also report annually on any settlement agreements that violate the bill's requirements.</p>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 225 Introduced in Senate (IS)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                 S. 225

To limit donations made pursuant to settlement agreements to which the 
           United States is a party, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            February 2, 2023

   Mr. Tuberville (for himself, Mr. Tillis, Mr. Cotton, Mr. Scott of 
Florida, and Ms. Lummis) introduced the following bill; which was read 
          twice and referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
To limit donations made pursuant to settlement agreements to which the 
           United States is a party, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stop Settlement Slush Funds Act of 
2023''.

SEC. 2. LIMITATION ON DONATIONS MADE PURSUANT TO SETTLEMENT AGREEMENTS 
              TO WHICH THE UNITED STATES IS A PARTY.

    (a) Limitation on Required Donations.--An official or agent of the 
Government may not enter into or enforce any settlement agreement on 
behalf of the United States directing or providing for a payment to any 
person or entity other than the United States, other than a payment 
that provides restitution for or otherwise directly remedies actual 
harm (including to the environment) directly and proximately caused by 
the party making the payment, or constitutes payment for services 
rendered in connection with the case.
    (b) Penalty.--Any official or agent of the Government who violates 
subsection (a), shall be subject to the same penalties that would apply 
in the case of a violation of section 3302 of title 31, United States 
Code.
    (c) Effective Date.--Subsections (a) and (b) apply only in the case 
of a settlement agreement entered on or after the date of enactment of 
this Act.
    (d) Definition.--The term ``settlement agreement'' means a 
settlement agreement resolving a civil action or potential civil 
action.
    (e) Reports on Settlement Agreements.--
            (1) In general.--Not later than the end of the first fiscal 
        year that begins after the date of enactment of this Act, and 
        annually thereafter, the head of each Federal agency shall 
        submit electronically to the Congressional Budget Office a 
        report on each settlement agreement entered into by that agency 
        during that fiscal year that directs or provides for a payment 
        to a person or entity other than the United States that is 
        providing restitution for or otherwise directly remedies actual 
        harm (including to the environment) directly and proximately 
        caused by the party making the payment, or that constitutes 
        payment for services rendered in connection with the case, 
        which shall include the parties to each settlement agreement, 
        the source of the settlement funds, and where and how such 
        funds were and will be distributed.
            (2) Prohibition on additional funding.--No additional funds 
        are authorized to be appropriated to carry out this subsection.
            (3) Sunset.--This subsection shall cease to be effective on 
        the date that is 7 years after the date of enactment of this 
        Act.
    (f) Annual Audit Requirement.--
            (1) In general.--Not later than the end of the first fiscal 
        year that begins after the date of enactment of this Act, and 
        annually thereafter, the Inspector General of each Federal 
        agency shall submit a report on any settlement agreement 
        entered into in violation of this section by that agency to--
                    (A) the Committee on the Judiciary, the Committee 
                on the Budget, and the Committee on Appropriations of 
                the Senate; and
                    (B) the Committee on the Judiciary, the Committee 
                on the Budget, and the Committee on Appropriations of 
                the House of Representatives.
            (2) Prohibition on additional funding.--No additional funds 
        are authorized to be appropriated to carry out this subsection.
                                 &lt;all&gt;
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