Stop Settlement Slush Funds Act of 2021
Bill: S.2079 | Sponsor: Sen. Tuberville, Tommy (R-AL)
Policy area: Law

Summary:
Stop Settlement Slush Funds Act of 2021
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 or loan to any person or entity other than the United States. The bill provides exceptions to allow payments or loans that (1) remedy actual harm (including to the environment) caused by the party making the payment or loan, or (2) constitute a payment for services rendered in connection with the case or a payment that a court may order for restitution to victims in certain criminal cases or other persons in plea agreements.
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.
Agencies must report annually 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.

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 
2021''.

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

    (a) Definition.--In this section, the term ``settlement agreement'' 
means a settlement agreement resolving a civil action or potential 
civil action, a plea agreement, a deferred prosecution agreement, or a 
non-prosecution agreement.
    (b) Limitation on Required Donations.--An official or agent of the 
Federal Government may not enter into or enforce any settlement 
agreement on behalf of the United States, directing or providing for a 
payment or loan to any person or entity other than the United States, 
other than a payment or loan 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 loan or 
constitutes payment for services rendered in connection with the case, 
or a payment pursuant to section 3663 of title 18, United States Code.
    (c) Penalty.--Any official or agent of the Federal Government who 
violates subsection (b) 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.
    (d) Effective Date.--Subsections (b) and (c) shall apply only to 
any settlement agreement concluded on or after the date of enactment of 
this Act.
    (e) Reports on Settlement Agreements.--
            (1) In general.--Beginning at 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 
        or loan 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 loan, or constitutes 
        payment for services rendered in connection with the case, 
        including 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.
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