Stop Settlement Slush Funds Act of 2021
Bill: H.R.5773 | Sponsor: Rep. Gooden, Lance (R-TX)
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 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.
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 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.

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) 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 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 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 
        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 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 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 enactment of this Act, 
        and annually thereafter, the Inspector 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 
        Representatives 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 appropriated to carry out this subsection.
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