Truth in Settlements Act of 2015

Bill: 114-s-1109
Sponsor: Sen. Warren, Elizabeth [D-MA]
Introduced: 2015-04-28 in the Senate
Policy area: Government Operations and Politics
Subjects: Administrative law and regulatory procedures
Civil actions and liability
Congressional oversight
Government information and archives
Income tax deductions
Legal fees and court costs
Securities

Summary:
action_date: 2015-04-28
text: 

Truth in Settlements Act of 2015

 
 Sets forth new requirements for the public disclosure of any covered settlement agreement entered into by a federal executive agency. Defines "covered settlement agreement" as a settlement agreement (including a consent decree) that: (1) is entered into by an executive agency, (2) relates to an alleged violation of federal civil or criminal law, and (3) requires the payment of not less than $1 million by one or more non-federal persons (entities not within the federal government).
 
Requires the head of each executive agency to make publicly available on the agency website a list of each covered settlement agreement entered into by the agency, which shall include: (1) the names of the parties to the settlement agreement and the date of such agreement; (2) a description of the claims that were settled under the agreement; (3) the amount each party to the agreement is obligated to pay under the terms of the agreement and the total amounts required to be paid; and (4) for each settling party, the amount the settling party is obligated to pay that has been expressly specified as a civil penalty or fine and as not deductible for tax purposes. Requires: (1) such information to remain publicly available for not less than 5 years, beginning on the date of the agreement; and (2) a copy of a covered settlement agreement to remain publicly available for a period of not less than 1 year, beginning on the date of the agreement, or for not less than 5 years for an agreement under which a non-federal person is required to pay not less than $50 million.
 
Limits the disclosure of provisions of a covered settlement agreement that are subject to a confidentiality agreement. 
 
Requires the issuer of securities subject to reporting requirements under the Securities Exchange Act of 1934 to describe in required reports any claim of a tax deduction relating to a payment under a covered settlement agreement. 

action_date: 2015-07-07
text: 
(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)
 

Truth in Settlements Act of 2015

 
 (Sec. 2) Sets forth new requirements for the public disclosure of any covered settlement agreement entered into by a federal executive agency. Defines "covered settlement agreement" as a settlement agreement (including a consent decree) that: (1) is entered into by an executive agency, (2) relates to an alleged violation of federal civil or criminal law, and (3) requires the payment of not less than $1 million by one or more non-federal persons (entities not within the federal government).
 
Requires the head of each executive agency to make publicly available on the agency website a list of each covered settlement agreement entered into by the agency, which shall include: (1) the names of the parties to the settlement agreement and the date of such agreement; (2) a description of the claims that were settled under the agreement; (3) the amount each party to the agreement is obligated to pay under the terms of the agreement and the total amounts required to be paid; and (4) for each settling party, the amount the settling party is obligated to pay that has been expressly specified as a civil penalty or fine and as not deductible for tax purposes. Requires: (1) such information to remain publicly available for not less than 5 years, beginning on the date of the agreement; and (2) a copy of a covered settlement agreement to remain publicly available for a period of not less than 1 year, beginning on the date of the agreement, or for not less than 5 years for an agreement under which a non-federal person is required to pay not less than $50 million.
 
Limits the disclosure of provisions of a covered settlement agreement that are subject to a confidentiality agreement. 
 
Requires the issuer of securities subject to reporting requirements under the Securities Exchange Act of 1934 to describe in required reports any claim of a tax deduction relating to a payment under a covered settlement agreement. 

action_date: 2015-09-21
text: 

Truth in Settlements Act of 2015

 
 Sets forth new requirements for the public disclosure of any covered settlement agreement entered into by a federal executive agency. 
 
(Sec. 2) Defines "covered settlement agreement" as a settlement agreement (including a consent decree) that: (1) is entered into by an executive agency, relates to an alleged violation of federal civil or criminal law, and requires the payment of not less than $1 million by one or more non-federal persons (entities not within the federal government); or (2) relates to the rulemaking process or an alleged failure of an executive agency to engage in such process and requires the payment of not less of $200,000 in attorney fees, costs, or expenses by an executive agency to a non-federal person.
 
Requires agency heads to make publicly available on the agency website a copy of each covered settlement agreement entered into by the agency and a list for each agreement, which shall include:
 
 
 the names of the parties to the settlement agreement and the date of such agreement;
 
 a description of the claims that were settled under the agreement;
 
 the amount each party to the agreement is obligated to pay under the terms of the agreement and the total amounts required to be paid; 
 
 for each settling party, the amount the settling party is obligated to pay that has been expressly specified as a civil or criminal penalty or fine and any amount expressly specified as not deductible for tax purposes; and
 
 a description of where amounts collected under the agreement will be deposited.
 
 
Requires each agency to ensure that: (1) such information remains publicly available for not less than 5 years beginning on the date of the agreement, and (2) a copy of a covered settlement agreement remains publicly available for not less than 1 year beginning on such date or for not less than 5 years in the case of an agreement under which a non-federal person is required to pay at least $50 million.
 
Exempts the provisions of a covered settlement agreement that are subject to a confidentiality agreement from disclosure. Directs an agency to issue a public statement explaining any determination that confidentiality of an agreement is required to protect U.S. interests.
 
Requires agencies to submit an annual report indicating: 
 
 
how many covered settlement agreements the agency entered into during the previous fiscal year;
 
 how many of such agreements had terms or conditions that were required to be kept confidential;
 
 the total amount of attorney fees, costs, and expenses paid to non-federal persons under such agreements; and
 
 the number of such agreements between the agency and non-federal persons that involved regulatory action or regulatory changes during that fiscal year. 
 
 
Directs the Comptroller General to report to Congress on how agencies determine whether the terms or existence of a settlement agreement will be treated as confidential. 

action_date: 2016-06-09
text: 
(This measure has not been amended since it was passed by the Senate on September 21, 2015. The summary of that version is repeated here.)
 

Truth in Settlements Act of 2015

 
Sets forth new requirements for the public disclosure of any covered settlement agreement entered into by a federal executive agency. 
 
(Sec. 2) Defines "covered settlement agreement" as a settlement agreement (including a consent decree) that: (1) is entered into by an executive agency, relates to an alleged violation of federal civil or criminal law, and requires the payment of not less than $1 million by one or more non-federal persons (entities not within the federal government); or (2) relates to the rulemaking process or an alleged failure of an executive agency to engage in such process and requires the payment of not less than $200,000 in attorney fees, costs, or expenses by an executive agency to a non-federal person.
 
Requires agency heads to make publicly available on the agency website a copy of each covered settlement agreement entered into by the agency and a list for each agreement, which shall include:
 
 
the names of the parties to the settlement agreement and the date of such agreement; 
 
a description of the claims that were settled under the agreement; 
 
the amount each party to the agreement is obligated to pay under the terms of the agreement and the total amounts required to be paid; 
 
for each settling party, the amount the settling party is obligated to pay that has been expressly specified as a civil or criminal penalty or fine and any amount expressly specified as not deductible for tax purposes; and 
 
a description of where amounts collected under the agreement will be deposited. 

 
Requires each agency to ensure that: (1) such information remains publicly available for not less than 5 years beginning on the date of the agreement, and (2) a copy of a covered settlement agreement remains publicly available for not less than 1 year beginning on such date or for not less than 5 years in the case of an agreement under which a non-federal person is required to pay at least $50 million.
 
Exempts the provisions of a covered settlement agreement that are subject to a confidentiality agreement from disclosure. Directs an agency to issue a public statement explaining any determination that confidentiality of an agreement is required to protect U.S. interests.
 
Requires agencies to submit an annual report indicating: 
 
 
how many covered settlement agreements the agency entered into during the previous fiscal year; 
 
how many of such agreements had terms or conditions that were required to be kept confidential; 
 
the total amount of attorney fees, costs, and expenses paid to non-federal persons under such agreements; and 
 
the number of such agreements between the agency and non-federal persons that involved regulatory action or regulatory changes during that fiscal year. 

 
Directs the Comptroller General to report to Congress on how agencies determine whether the terms or existence of a settlement agreement will be treated as confidential. 


Legislative actions:
action_date: 2016-06-09
text: Placed on the Union Calendar, Calendar No. 476.
action_date: 2016-06-09
text: Reported by the Committee on Oversight and Government Reform. H. Rept. 114-613.
action_date: 2016-06-09
text: Reported by the Committee on Oversight and Government Reform. H. Rept. 114-613.
action_date: 2016-03-01
text: Ordered to be Reported by Unanimous Consent.
action_date: 2016-03-01
text: Committee Consideration and Mark-up Session Held.
action_date: 2015-09-22
text: Referred to the House Committee on Oversight and Government Reform.
action_date: 2015-09-22
text: Received in the House.
action_date: 2015-09-22
text: Message on Senate action sent to the House.
action_date: 2015-09-21
text: Passed Senate with amendments by Unanimous Consent. (text: CR S6852)
action_date: 2015-09-21
text: Passed/agreed to in Senate: Passed Senate with amendments by Unanimous Consent.(text: CR S6852)
action_date: 2015-09-21
text: Measure laid before Senate by unanimous consent. (consideration: CR S6851-6852)
action_date: 2015-07-07
text: Placed on Senate Legislative Calendar under General Orders. Calendar No. 140.
action_date: 2015-07-07
text: Committee on Homeland Security and Governmental Affairs. Reported by Senator Johnson without amendment. With written report No. 114-76.
action_date: 2015-07-07
text: Committee on Homeland Security and Governmental Affairs. Reported by Senator Johnson without amendment. With written report No. 114-76.
action_date: 2015-05-06
text: Committee on Homeland Security and Governmental Affairs. Ordered to be reported without amendment favorably.
action_date: 2015-04-28
text: Read twice and referred to the Committee on Homeland Security and Governmental Affairs. (Sponsor introductory remarks on measure:CR S2476-2477)
action_date: 2015-04-28
text: Introduced in Senate