SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Stop Settlement Slush 
Funds Act of 2016’’. 
SEC. 2. LIMITATION ON DONATIONS MADE PURSUANT TO 
SETTLEMENT AGREEMENTS TO WHICH THE 
UNITED STATES IS A PARTY. 
(a) LIMITATION ON REQUIRED DONATIONS.—An of-
ficial 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 pay-
ment that provides restitution for or otherwise directly 
remedies actual harm (including to the environment) di-
rectly 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 Govern-
ment 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 concluded 
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.—Beginning at the end of the 
first fiscal year that begins after the date of the en-
actment of this Act, and annually thereafter, the 
head of each Federal agency shall submit electroni-
cally to the Congressional Budget Office a report on 
each settlement agreement entered into by that 
agency during that fiscal year that directs or pro-
vides for a payment to a person or entity other than 
the United States 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, including the parties to each settlement agree-
ment, 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 appro-
priated 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 the enactment of this Act. 
(f) ANNUAL AUDIT REQUIREMENT.—
(1) IN GENERAL.—Beginning at the end of the 
first fiscal year that begins after the date of the en-
actment of this Act, and annually thereafter, the In-
spector General of each Federal agency shall submit 
a report to the Committees on the Judiciary, on the 
Budget and on Appropriations of the House of Rep-
resentatives and the Senate, on any settlement 
agreement entered into in violation of this section by 
that agency. 
(2) PROHIBITION ON ADDITIONAL FUNDING.— 
No additional funds are authorized to be appro-
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 
agreements to which the United States is a 
party, and for other purposes.