Truth in Settlements Act of 2015

Bill: 114-s-1109
Sponsor: full_name: Sen. Warren, Elizabeth [D-MA]
Introduced: 2015-04-28
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
Latest action: action_date: 2016-06-09
text: Placed on the Union Calendar, Calendar No. 476.

Summaries:
action_date: 2015-04-28
action_desc: Introduced in Senate
text: <p><strong>Truth in Settlements Act of 2015</strong></p> <p> Sets forth new requirements for the public disclosure of any covered settlement agreement entered into by a federal executive agency.&nbsp; 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).</p> <p>Requires the head of each executive agency to make publicly available on the agency website&nbsp;a list of each covered settlement agreement entered into by the agency, which shall include:&nbsp;(1) the names of the parties to the settlement&nbsp;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.</p> <p>Limits the disclosure of provisions of a covered settlement agreement that are subject to a confidentiality agreement. </p> <p>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. </p>

action_date: 2015-07-07
action_desc: Reported to Senate without amendment
text: <p>(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)</p> <p><strong>Truth in Settlements Act of 2015</strong></p> <p> (Sec. 2) Sets forth new requirements for the public disclosure of any covered settlement agreement entered into by a federal executive agency.&nbsp; 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).</p> <p>Requires the head of each executive agency to make publicly available on the agency website&nbsp;a list of each covered settlement agreement entered into by the agency, which shall include:&nbsp;(1) the names of the parties to the settlement&nbsp;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.</p> <p>Limits the disclosure of provisions of a covered settlement agreement that are subject to a confidentiality agreement. </p> <p>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. </p>

action_date: 2015-09-21
action_desc: Passed Senate amended
text: <p><strong>Truth in Settlements Act of 2015</strong></p> <p> Sets forth new requirements for the public disclosure of any covered settlement agreement entered into by a federal executive agency.&nbsp; </p> <p>(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.</p> <p>Requires agency heads to make publicly available on the agency website&nbsp;a copy of each covered settlement agreement entered into by the agency and a list for each agreement, which shall include:</p> <ul> <li> the names of the parties to the settlement&nbsp;agreement and the date of such agreement;</li> <li> a description of the claims that were settled under the agreement;</li> <li> 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; </li> <li> 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</li> <li> a description of where amounts collected under the agreement will be deposited.</li> </ul> <p>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.</p> <p>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.</p> <p>Requires agencies to submit an annual report indicating: </p> <ul> <li>how many covered settlement agreements the agency entered into during the previous fiscal year;</li> <li> how many of such agreements had terms or conditions that were required to be kept confidential;</li> <li> the total amount of attorney fees, costs, and expenses paid to non-federal persons under such agreements; and</li> <li> the number of such agreements between the agency and non-federal persons that involved regulatory action or regulatory changes during that fiscal year. </li> </ul> <p>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. </p>

action_date: 2016-06-09
action_desc: Reported to House without amendment
text: <p>(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.)</p> <p><strong>Truth in Settlements Act of 2015</strong></p> <p>Sets forth new requirements for the public disclosure of any covered settlement agreement entered into by a federal executive agency.&nbsp; </p> <p>(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&nbsp;than $200,000 in attorney fees, costs, or expenses by an executive agency to a non-federal person.</p> <p>Requires agency heads to make publicly available on the agency website&nbsp;a copy of each covered settlement agreement entered into by the agency and a list for each agreement, which shall include:</p> <ul> <li>the names of the parties to the settlement&nbsp;agreement and the date of such agreement; </li> <li>a description of the claims that were settled under the agreement; </li> <li>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; </li> <li>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 </li> <li>a description of where amounts collected under the agreement will be deposited. </li></ul> <p>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.</p> <p>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.</p> <p>Requires agencies to submit an annual report indicating: </p> <ul> <li>how many covered settlement agreements the agency entered into during the previous fiscal year; </li> <li>how many of such agreements had terms or conditions that were required to be kept confidential; </li> <li>the total amount of attorney fees, costs, and expenses paid to non-federal persons under such agreements; and </li> <li>the number of such agreements between the agency and non-federal persons that involved regulatory action or regulatory changes during that fiscal year. </li></ul> <p>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. </p>

tv_txt: II 114th CONGRESS 1st Session S. 1109 IN THE SENATE OF THE UNITED STATES April 28, 2015 Ms. Warren (for herself and Mr. Lankford ) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs A BILL To require adequate information regarding the tax treatment of payments under settlement agreements entered into by Federal agencies, and for other purposes.

1. Short title This Act may be cited as the Truth in Settlements Act of 2015 . 2. Information regarding settlement agreements entered into by Federal agencies (a) Requirements for settlement agreements (1) In general Chapter 3 of title 5, United States Code, is amended by adding at the end the following: 307. Information regarding settlement agreements (a) Definitions In this section— (1) the term covered settlement agreement means a settlement agreement (including a consent decree) that— (A) is entered into by an Executive agency; (B) relates to an alleged violation of Federal civil or criminal law; and (C) requires the payment of a total of not less than $1,000,000 by 1 or more non-Federal persons; (2) the term entity within the Federal Government includes an officer or employee of the Federal Government acting in an official capacity; and (3) the term non-Federal person means a person that is not an entity within the Federal Government. (b) Information To be posted online (1) Requirement (A) In general Subject to subparagraph (B), the head of each Executive agency shall make publicly available in a searchable format in a prominent location on the Web site of the Executive agency— (i) a list of each covered settlement agreement entered into by the Executive agency, which shall include, for each covered settlement agreement— (I) the date on which the parties entered into the covered settlement agreement; (II) the names of the parties that settled claims under the covered settlement agreement; (III) a description of the claims each party settled under the covered settlement agreement; (IV) the amount each party settling a claim under the covered settlement agreement is obligated to pay under the settlement agreement; (V) the total amount the settling parties are obligated to pay under the settlement agreement; and (VI) for each settling party— (aa) the amount, if any, the settling party is obligated to pay that is expressly specified under the covered settlement agreement as a civil or criminal penalty or fine; and (bb) the amount, if any, that is expressly specified under the covered settlement agreement as not deductible for purposes of the Internal Revenue Code of 1986; and (ii) a copy of each covered settlement agreement entered into by the Executive agency. (B) Confidentiality provisions The requirement to disclose information or a copy of a covered settlement agreement under subparagraph (A) shall apply to the extent that the information or copy (or portion thereof) is not subject to a confidentiality provision that prohibits disclosure of the information or copy (or portion thereof). (2) Period The head of each Executive agency shall ensure that— (A) information regarding a covered settlement agreement is publicly available on the list described in paragraph (1)(A)(i) for a period of not less than 5 years, beginning on the date of the covered settlement agreement; and (B) a copy of a covered settlement agreement made available under paragraph (1)(A)(ii) is publicly available— (i) for a period of not less than 1 year, beginning on the date of the covered settlement agreement; or (ii) for a covered settlement agreement under which a non-Federal person is required to pay not less than $50,000,000, for a period of not less than 5 years, beginning on the date of the covered settlement agreement. (c) Public statement If the head of an Executive agency determines that a confidentiality provision in a covered settlement agreement, or the sealing of a covered settlement agreement, is required to protect the public interest of the United States, the head of the Executive agency shall issue a public statement stating why such action is required to protect the public interest of the United States, which shall explain— (1) what interests confidentiality protects; and (2) why the interests protected by confidentiality outweigh the public’s interest in knowing about the conduct of the Federal Government and the expenditure of Federal resources. (d) Requirements for written public statements Any written public statement issued by an Executive agency that refers to an amount to be paid by a non-Federal person under a covered settlement agreement shall— (1) specify which portion, if any, of the amount to be paid under the covered settlement agreement by a non-Federal person— (A) is expressly specified under the covered settlement agreement as a civil or criminal penalty or fine to be paid for a violation of Federal law; or (B) is expressly specified under the covered settlement agreement as not deductible for purposes of the Internal Revenue Code of 1986; (2) if no portion of the amount to be paid under the covered settlement agreement by a non-Federal person is expressly specified under the covered settlement agreement as a civil or criminal penalty or fine, include a statement specifying that is the case; and (3) describe in detail— (A) any actions the non-Federal person shall take under the covered settlement agreement in lieu of payment to the Federal Government or a State or local government; and (B) any payments or compensation the non-Federal person shall make to other non-Federal persons under the covered settlement agreement. (e) Confidentiality The requirement to disclose information under subsection (d) shall apply to the extent that the information to be disclosed (or portion thereof) is not subject to a confidentiality provision that prohibits disclosure of the information (or portion thereof). (f) Reporting (1) In general Not later than January 15 of each year, the head of an Executive agency that entered into a covered settlement agreement during the previous fiscal year shall submit to each committee of Congress with jurisdiction over the activities of the Executive agency a report indicating— (A) how many covered settlement agreements the Executive agency entered into during that fiscal year; (B) how many covered settlement agreements the Executive agency entered into during that fiscal year that had any terms or conditions that are required to be kept confidential; and (C) how many covered settlement agreements the Executive agency entered into during that fiscal year for which all terms and conditions are required to be kept confidential. (2) Availability of reports The head of an Executive agency that is required to submit a report under paragraph (1) shall make the report publicly available in a searchable format in a prominent location on the Web site of the Executive agency. . (2) Technical and conforming amendment The table of sections for chapter 3 of title 5, United States Code, is amended by adding at the end the following: 307. Information regarding settlement agreements. . (b) Securities reporting (1) In general Each issuer of securities that is required to file annual or other periodic reports with the Commission under section 13 or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m and 78o(d)) shall describe in such a report any claim filed for a deduction under the Internal Revenue Code of 1986 during the reporting period that relates to a payment required under a covered settlement agreement. (2) Definitions As used in this subsection— (A) the term Commission means the Securities and Exchange Commission; (B) the term covered settlement agreement has the meaning given that term in section 307 of title 5, United States Code, as added by subsection (a); and (C) the term issuer has the same meaning as in section 3 of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c ). (c) Review of confidentiality of settlement agreements Not later than 6 months after the date of enactment of this Act, the Comptroller General of the United States shall submit to Congress a report regarding how Executive agencies (as defined under section 105 of title 5, United States Code) determine whether the terms of a settlement agreement or the existence of a settlement agreement will be treated as confidential, which shall include recommendations, if any, for legislative or administrative action to increase the transparency of Government settlements while continuing to protect the legitimate interests that confidentiality provisions serve.

tv_txt: II Calendar No. 140 114th CONGRESS 1st Session S. 1109 [Report No. 114–76] IN THE SENATE OF THE UNITED STATES April 28, 2015 Ms. Warren (for herself, Mr. Lankford , and Ms. Baldwin ) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs July 7, 2015 Reported by Mr. Johnson , without amendment A BILL To require adequate information regarding the tax treatment of payments under settlement agreements entered into by Federal agencies, and for other purposes.

1. Short title This Act may be cited as the Truth in Settlements Act of 2015 . 2. Information regarding settlement agreements entered into by Federal agencies (a) Requirements for settlement agreements (1) In general Chapter 3 of title 5, United States Code, is amended by adding at the end the following: 307. Information regarding settlement agreements (a) Definitions In this section— (1) the term covered settlement agreement means a settlement agreement (including a consent decree) that— (A) is entered into by an Executive agency; (B) relates to an alleged violation of Federal civil or criminal law; and (C) requires the payment of a total of not less than $1,000,000 by 1 or more non-Federal persons; (2) the term entity within the Federal Government includes an officer or employee of the Federal Government acting in an official capacity; and (3) the term non-Federal person means a person that is not an entity within the Federal Government. (b) Information To be posted online (1) Requirement (A) In general Subject to subparagraph (B), the head of each Executive agency shall make publicly available in a searchable format in a prominent location on the Web site of the Executive agency— (i) a list of each covered settlement agreement entered into by the Executive agency, which shall include, for each covered settlement agreement— (I) the date on which the parties entered into the covered settlement agreement; (II) the names of the parties that settled claims under the covered settlement agreement; (III) a description of the claims each party settled under the covered settlement agreement; (IV) the amount each party settling a claim under the covered settlement agreement is obligated to pay under the settlement agreement; (V) the total amount the settling parties are obligated to pay under the settlement agreement; and (VI) for each settling party— (aa) the amount, if any, the settling party is obligated to pay that is expressly specified under the covered settlement agreement as a civil or criminal penalty or fine; and (bb) the amount, if any, that is expressly specified under the covered settlement agreement as not deductible for purposes of the Internal Revenue Code of 1986; and (ii) a copy of each covered settlement agreement entered into by the Executive agency. (B) Confidentiality provisions The requirement to disclose information or a copy of a covered settlement agreement under subparagraph (A) shall apply to the extent that the information or copy (or portion thereof) is not subject to a confidentiality provision that prohibits disclosure of the information or copy (or portion thereof). (2) Period The head of each Executive agency shall ensure that— (A) information regarding a covered settlement agreement is publicly available on the list described in paragraph (1)(A)(i) for a period of not less than 5 years, beginning on the date of the covered settlement agreement; and (B) a copy of a covered settlement agreement made available under paragraph (1)(A)(ii) is publicly available— (i) for a period of not less than 1 year, beginning on the date of the covered settlement agreement; or (ii) for a covered settlement agreement under which a non-Federal person is required to pay not less than $50,000,000, for a period of not less than 5 years, beginning on the date of the covered settlement agreement. (c) Public statement If the head of an Executive agency determines that a confidentiality provision in a covered settlement agreement, or the sealing of a covered settlement agreement, is required to protect the public interest of the United States, the head of the Executive agency shall issue a public statement stating why such action is required to protect the public interest of the United States, which shall explain— (1) what interests confidentiality protects; and (2) why the interests protected by confidentiality outweigh the public’s interest in knowing about the conduct of the Federal Government and the expenditure of Federal resources. (d) Requirements for written public statements Any written public statement issued by an Executive agency that refers to an amount to be paid by a non-Federal person under a covered settlement agreement shall— (1) specify which portion, if any, of the amount to be paid under the covered settlement agreement by a non-Federal person— (A) is expressly specified under the covered settlement agreement as a civil or criminal penalty or fine to be paid for a violation of Federal law; or (B) is expressly specified under the covered settlement agreement as not deductible for purposes of the Internal Revenue Code of 1986; (2) if no portion of the amount to be paid under the covered settlement agreement by a non-Federal person is expressly specified under the covered settlement agreement as a civil or criminal penalty or fine, include a statement specifying that is the case; and (3) describe in detail— (A) any actions the non-Federal person shall take under the covered settlement agreement in lieu of payment to the Federal Government or a State or local government; and (B) any payments or compensation the non-Federal person shall make to other non-Federal persons under the covered settlement agreement. (e) Confidentiality The requirement to disclose information under subsection (d) shall apply to the extent that the information to be disclosed (or portion thereof) is not subject to a confidentiality provision that prohibits disclosure of the information (or portion thereof). (f) Reporting (1) In general Not later than January 15 of each year, the head of an Executive agency that entered into a covered settlement agreement during the previous fiscal year shall submit to each committee of Congress with jurisdiction over the activities of the Executive agency a report indicating— (A) how many covered settlement agreements the Executive agency entered into during that fiscal year; (B) how many covered settlement agreements the Executive agency entered into during that fiscal year that had any terms or conditions that are required to be kept confidential; and (C) how many covered settlement agreements the Executive agency entered into during that fiscal year for which all terms and conditions are required to be kept confidential. (2) Availability of reports The head of an Executive agency that is required to submit a report under paragraph (1) shall make the report publicly available in a searchable format in a prominent location on the Web site of the Executive agency. . (2) Technical and conforming amendment The table of sections for chapter 3 of title 5, United States Code, is amended by adding at the end the following: 307. Information regarding settlement agreements. . (b) Securities reporting (1) In general Each issuer of securities that is required to file annual or other periodic reports with the Commission under section 13 or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m and 78o(d)) shall describe in such a report any claim filed for a deduction under the Internal Revenue Code of 1986 during the reporting period that relates to a payment required under a covered settlement agreement. (2) Definitions As used in this subsection— (A) the term Commission means the Securities and Exchange Commission; (B) the term covered settlement agreement has the meaning given that term in section 307 of title 5, United States Code, as added by subsection (a); and (C) the term issuer has the same meaning as in section 3 of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c ). (c) Review of confidentiality of settlement agreements Not later than 6 months after the date of enactment of this Act, the Comptroller General of the United States shall submit to Congress a report regarding how Executive agencies (as defined under section 105 of title 5, United States Code) determine whether the terms of a settlement agreement or the existence of a settlement agreement will be treated as confidential, which shall include recommendations, if any, for legislative or administrative action to increase the transparency of Government settlements while continuing to protect the legitimate interests that confidentiality provisions serve.

July 7, 2015 Reported without amendment

tv_txt: IC 114th CONGRESS 1st Session S. 1109 IN THE HOUSE OF REPRESENTATIVES September 22, 2015 Referred to the Committee on Oversight and Government Reform AN ACT To require adequate information regarding the tax treatment of payments under settlement agreements entered into by Federal agencies, and for other purposes.

1. Short title This Act may be cited as the Truth in Settlements Act of 2015 . 2. Information regarding settlement agreements entered into by Federal agencies (a) Requirements for settlement agreements (1) In general Chapter 3 of title 5, United States Code, is amended by adding at the end the following: 307. Information regarding settlement agreements (a) Definitions In this section— (1) the term covered settlement agreement means a settlement agreement (including a consent decree)— (A) that is entered into by an Executive agency; and (B) (i) that— (I) relates to an alleged violation of Federal civil or criminal law; and (II) requires the payment of a total of not less than $1,000,000 by 1 or more non-Federal persons; or (ii) that— (I) relates to the rule making process of the Executive agency or an alleged failure by the Executive agency to engage in a rule making process; and (II) requires the payment of a total of not less than $200,000 in attorney fees, costs, or expenses by the Executive agency or entity within the Federal Government to a non-Federal person; (2) the term entity within the Federal Government includes an officer or employee of the Federal Government acting in an official capacity; (3) the term non-Federal person means a person that is not an entity within the Federal Government; and (4) the term rule making has the meaning given that term under section 551(5). (b) Information To be posted online (1) Requirement (A) In general Subject to subparagraph (B), the head of each Executive agency shall make publicly available in a searchable format in a prominent location on the Web site of the Executive agency— (i) a list of each covered settlement agreement entered into by the Executive agency, which shall include, for each covered settlement agreement— (I) the date on which the parties entered into the covered settlement agreement; (II) the names of the parties that settled claims under the covered settlement agreement; (III) a description of the claims each party settled under the covered settlement agreement; (IV) the amount each party settling a claim under the covered settlement agreement is obligated to pay under the settlement agreement; (V) the total amount the settling parties are obligated to pay under the settlement agreement; (VI) for each settling party— (aa) the amount, if any, the settling party is obligated to pay that is expressly specified under the covered settlement agreement as a civil or criminal penalty or fine; and (bb) the amount, if any, that is expressly specified under the covered settlement agreement as not deductible for purposes of the Internal Revenue Code of 1986; and (VII) a description of where amounts collected under the covered settlement agreement will be deposited, including, if applicable, the deposit of such amounts in an account available for use for 1 or more programs of the Federal Government; and (ii) a copy of each covered settlement agreement entered into by the Executive agency. (B) Confidentiality provisions The requirement to disclose information or a copy of a covered settlement agreement under subparagraph (A) shall apply to the extent that the information or copy (or portion thereof) is not subject to a confidentiality provision that prohibits disclosure of the information or copy (or portion thereof). (2) Period The head of each Executive agency shall ensure that— (A) information regarding a covered settlement agreement is publicly available on the list described in paragraph (1)(A)(i) for a period of not less than 5 years, beginning on the date of the covered settlement agreement; and (B) a copy of a covered settlement agreement made available under paragraph (1)(A)(ii) is publicly available— (i) for a period of not less than 1 year, beginning on the date of the covered settlement agreement; or (ii) for a covered settlement agreement under which a non-Federal person is required to pay not less than $50,000,000, for a period of not less than 5 years, beginning on the date of the covered settlement agreement. (c) Public statement If the head of an Executive agency determines that a confidentiality provision in a covered settlement agreement, or the sealing of a covered settlement agreement, is required to protect the public interest of the United States, the head of the Executive agency shall issue a public statement stating why such action is required to protect the public interest of the United States, which shall explain— (1) what interests confidentiality protects; and (2) why the interests protected by confidentiality outweigh the public’s interest in knowing about the conduct of the Federal Government and the expenditure of Federal resources. (d) Requirements for written public statements Any written public statement issued by an Executive agency that refers to an amount to be paid by a non-Federal person under a covered settlement agreement shall— (1) specify which portion, if any, of the amount to be paid under the covered settlement agreement by a non-Federal person— (A) is expressly specified under the covered settlement agreement as a civil or criminal penalty or fine to be paid for a violation of Federal law; or (B) is expressly specified under the covered settlement agreement as not deductible for purposes of the Internal Revenue Code of 1986; (2) if no portion of the amount to be paid under the covered settlement agreement by a non-Federal person is expressly specified under the covered settlement agreement as a civil or criminal penalty or fine, include a statement specifying that is the case; and (3) describe in detail— (A) any actions the non-Federal person shall take under the covered settlement agreement in lieu of payment to the Federal Government or a State or local government; and (B) any payments or compensation the non-Federal person shall make to other non-Federal persons under the covered settlement agreement. (e) Confidentiality The requirement to disclose information under subsection (d) shall apply to the extent that the information to be disclosed (or portion thereof) is not subject to a confidentiality provision that prohibits disclosure of the information (or portion thereof). (f) Reporting (1) In general Not later than January 15 of each year, the head of an Executive agency that entered into a covered settlement agreement or that entered into a settlement agreement that involves regulatory action or regulatory changes during the previous fiscal year shall submit to each committee of Congress with jurisdiction over the activities of the Executive agency a report indicating— (A) how many covered settlement agreements the Executive agency entered into during that fiscal year; (B) how many covered settlement agreements the Executive agency entered into during that fiscal year that had any terms or conditions that are required to be kept confidential; (C) how many covered settlement agreements the Executive agency entered into during that fiscal year for which all terms and conditions are required to be kept confidential; (D) the total amount of attorney fees, costs, and expenses paid to non-Federal persons under settlement agreements (including consent decrees) of the Executive agency during that fiscal year; and (E) the number of settlement agreements (including consent decrees) between the Executive agency and non-Federal persons that involve regulatory action or regulatory changes, including the promulgation of new rules, during that fiscal year. (2) Availability of reports The head of an Executive agency that is required to submit a report under paragraph (1) shall make the report publicly available in a searchable format in a prominent location on the Web site of the Executive agency. . (2) Technical and conforming amendment The table of sections for chapter 3 of title 5, United States Code, is amended by adding at the end the following: 307. Information regarding settlement agreements. . (b) Review of confidentiality of settlement agreements Not later than 6 months after the date of enactment of this Act, the Comptroller General of the United States shall submit to Congress a report regarding how Executive agencies (as defined under section 105 of title 5, United States Code) determine whether the terms of a settlement agreement or the existence of a settlement agreement will be treated as confidential, which shall include recommendations, if any, for legislative or administrative action to increase the transparency of Government settlements while continuing to protect the legitimate interests that confidentiality provisions serve.

Passed the Senate September 21, 2015. Julie E. Adams, Secretary

tv_txt: 114th CONGRESS 1st Session S. 1109 IN THE SENATE OF THE UNITED STATES AN ACT To require adequate information regarding the tax treatment of payments under settlement agreements entered into by Federal agencies, and for other purposes.

1. Short title This Act may be cited as the Truth in Settlements Act of 2015 . 2. Information regarding settlement agreements entered into by Federal agencies (a) Requirements for settlement agreements (1) In general Chapter 3 of title 5, United States Code, is amended by adding at the end the following: 307. Information regarding settlement agreements (a) Definitions In this section— (1) the term covered settlement agreement means a settlement agreement (including a consent decree)— (A) that is entered into by an Executive agency; and (B) (i) that— (I) relates to an alleged violation of Federal civil or criminal law; and (II) requires the payment of a total of not less than $1,000,000 by 1 or more non-Federal persons; or (ii) that— (I) relates to the rule making process of the Executive agency or an alleged failure by the Executive agency to engage in a rule making process; and (II) requires the payment of a total of not less than $200,000 in attorney fees, costs, or expenses by the Executive agency or entity within the Federal Government to a non-Federal person; (2) the term entity within the Federal Government includes an officer or employee of the Federal Government acting in an official capacity; (3) the term non-Federal person means a person that is not an entity within the Federal Government; and (4) the term rule making has the meaning given that term under section 551(5). (b) Information To be posted online (1) Requirement (A) In general Subject to subparagraph (B), the head of each Executive agency shall make publicly available in a searchable format in a prominent location on the Web site of the Executive agency— (i) a list of each covered settlement agreement entered into by the Executive agency, which shall include, for each covered settlement agreement— (I) the date on which the parties entered into the covered settlement agreement; (II) the names of the parties that settled claims under the covered settlement agreement; (III) a description of the claims each party settled under the covered settlement agreement; (IV) the amount each party settling a claim under the covered settlement agreement is obligated to pay under the settlement agreement; (V) the total amount the settling parties are obligated to pay under the settlement agreement; (VI) for each settling party— (aa) the amount, if any, the settling party is obligated to pay that is expressly specified under the covered settlement agreement as a civil or criminal penalty or fine; and (bb) the amount, if any, that is expressly specified under the covered settlement agreement as not deductible for purposes of the Internal Revenue Code of 1986; and (VII) a description of where amounts collected under the covered settlement agreement will be deposited, including, if applicable, the deposit of such amounts in an account available for use for 1 or more programs of the Federal Government; and (ii) a copy of each covered settlement agreement entered into by the Executive agency. (B) Confidentiality provisions The requirement to disclose information or a copy of a covered settlement agreement under subparagraph (A) shall apply to the extent that the information or copy (or portion thereof) is not subject to a confidentiality provision that prohibits disclosure of the information or copy (or portion thereof). (2) Period The head of each Executive agency shall ensure that— (A) information regarding a covered settlement agreement is publicly available on the list described in paragraph (1)(A)(i) for a period of not less than 5 years, beginning on the date of the covered settlement agreement; and (B) a copy of a covered settlement agreement made available under paragraph (1)(A)(ii) is publicly available— (i) for a period of not less than 1 year, beginning on the date of the covered settlement agreement; or (ii) for a covered settlement agreement under which a non-Federal person is required to pay not less than $50,000,000, for a period of not less than 5 years, beginning on the date of the covered settlement agreement. (c) Public statement If the head of an Executive agency determines that a confidentiality provision in a covered settlement agreement, or the sealing of a covered settlement agreement, is required to protect the public interest of the United States, the head of the Executive agency shall issue a public statement stating why such action is required to protect the public interest of the United States, which shall explain— (1) what interests confidentiality protects; and (2) why the interests protected by confidentiality outweigh the public’s interest in knowing about the conduct of the Federal Government and the expenditure of Federal resources. (d) Requirements for written public statements Any written public statement issued by an Executive agency that refers to an amount to be paid by a non-Federal person under a covered settlement agreement shall— (1) specify which portion, if any, of the amount to be paid under the covered settlement agreement by a non-Federal person— (A) is expressly specified under the covered settlement agreement as a civil or criminal penalty or fine to be paid for a violation of Federal law; or (B) is expressly specified under the covered settlement agreement as not deductible for purposes of the Internal Revenue Code of 1986; (2) if no portion of the amount to be paid under the covered settlement agreement by a non-Federal person is expressly specified under the covered settlement agreement as a civil or criminal penalty or fine, include a statement specifying that is the case; and (3) describe in detail— (A) any actions the non-Federal person shall take under the covered settlement agreement in lieu of payment to the Federal Government or a State or local government; and (B) any payments or compensation the non-Federal person shall make to other non-Federal persons under the covered settlement agreement. (e) Confidentiality The requirement to disclose information under subsection (d) shall apply to the extent that the information to be disclosed (or portion thereof) is not subject to a confidentiality provision that prohibits disclosure of the information (or portion thereof). (f) Reporting (1) In general Not later than January 15 of each year, the head of an Executive agency that entered into a covered settlement agreement or that entered into a settlement agreement that involves regulatory action or regulatory changes during the previous fiscal year shall submit to each committee of Congress with jurisdiction over the activities of the Executive agency a report indicating— (A) how many covered settlement agreements the Executive agency entered into during that fiscal year; (B) how many covered settlement agreements the Executive agency entered into during that fiscal year that had any terms or conditions that are required to be kept confidential; (C) how many covered settlement agreements the Executive agency entered into during that fiscal year for which all terms and conditions are required to be kept confidential; (D) the total amount of attorney fees, costs, and expenses paid to non-Federal persons under settlement agreements (including consent decrees) of the Executive agency during that fiscal year; and (E) the number of settlement agreements (including consent decrees) between the Executive agency and non-Federal persons that involve regulatory action or regulatory changes, including the promulgation of new rules, during that fiscal year. (2) Availability of reports The head of an Executive agency that is required to submit a report under paragraph (1) shall make the report publicly available in a searchable format in a prominent location on the Web site of the Executive agency. . (2) Technical and conforming amendment The table of sections for chapter 3 of title 5, United States Code, is amended by adding at the end the following: 307. Information regarding settlement agreements. . (b) Review of confidentiality of settlement agreements Not later than 6 months after the date of enactment of this Act, the Comptroller General of the United States shall submit to Congress a report regarding how Executive agencies (as defined under section 105 of title 5, United States Code) determine whether the terms of a settlement agreement or the existence of a settlement agreement will be treated as confidential, which shall include recommendations, if any, for legislative or administrative action to increase the transparency of Government settlements while continuing to protect the legitimate interests that confidentiality provisions serve.

Passed the Senate September 21, 2015. Secretary

tv_txt: ID Union Calendar No. 476 114th CONGRESS 2d Session S. 1109 [Report No. 114–613] IN THE HOUSE OF REPRESENTATIVES September 22, 2015 Referred to the Committee on Oversight and Government Reform June 9, 2016 Committed to the Committee of the Whole House on the State of the Union and ordered to be printed A BILL To require adequate information regarding the tax treatment of payments under settlement agreements entered into by Federal agencies, and for other purposes.

1. Short title This Act may be cited as the Truth in Settlements Act of 2015 . 2. Information regarding settlement agreements entered into by Federal agencies (a) Requirements for settlement agreements (1) In general Chapter 3 of title 5, United States Code, is amended by adding at the end the following: 307. Information regarding settlement agreements (a) Definitions In this section— (1) the term covered settlement agreement means a settlement agreement (including a consent decree)— (A) that is entered into by an Executive agency; and (B) (i) that— (I) relates to an alleged violation of Federal civil or criminal law; and (II) requires the payment of a total of not less than $1,000,000 by 1 or more non-Federal persons; or (ii) that— (I) relates to the rule making process of the Executive agency or an alleged failure by the Executive agency to engage in a rule making process; and (II) requires the payment of a total of not less than $200,000 in attorney fees, costs, or expenses by the Executive agency or entity within the Federal Government to a non-Federal person; (2) the term entity within the Federal Government includes an officer or employee of the Federal Government acting in an official capacity; (3) the term non-Federal person means a person that is not an entity within the Federal Government; and (4) the term rule making has the meaning given that term under section 551(5). (b) Information To be posted online (1) Requirement (A) In general Subject to subparagraph (B), the head of each Executive agency shall make publicly available in a searchable format in a prominent location on the Web site of the Executive agency— (i) a list of each covered settlement agreement entered into by the Executive agency, which shall include, for each covered settlement agreement— (I) the date on which the parties entered into the covered settlement agreement; (II) the names of the parties that settled claims under the covered settlement agreement; (III) a description of the claims each party settled under the covered settlement agreement; (IV) the amount each party settling a claim under the covered settlement agreement is obligated to pay under the settlement agreement; (V) the total amount the settling parties are obligated to pay under the settlement agreement; (VI) for each settling party— (aa) the amount, if any, the settling party is obligated to pay that is expressly specified under the covered settlement agreement as a civil or criminal penalty or fine; and (bb) the amount, if any, that is expressly specified under the covered settlement agreement as not deductible for purposes of the Internal Revenue Code of 1986; and (VII) a description of where amounts collected under the covered settlement agreement will be deposited, including, if applicable, the deposit of such amounts in an account available for use for 1 or more programs of the Federal Government; and (ii) a copy of each covered settlement agreement entered into by the Executive agency. (B) Confidentiality provisions The requirement to disclose information or a copy of a covered settlement agreement under subparagraph (A) shall apply to the extent that the information or copy (or portion thereof) is not subject to a confidentiality provision that prohibits disclosure of the information or copy (or portion thereof). (2) Period The head of each Executive agency shall ensure that— (A) information regarding a covered settlement agreement is publicly available on the list described in paragraph (1)(A)(i) for a period of not less than 5 years, beginning on the date of the covered settlement agreement; and (B) a copy of a covered settlement agreement made available under paragraph (1)(A)(ii) is publicly available— (i) for a period of not less than 1 year, beginning on the date of the covered settlement agreement; or (ii) for a covered settlement agreement under which a non-Federal person is required to pay not less than $50,000,000, for a period of not less than 5 years, beginning on the date of the covered settlement agreement. (c) Public statement If the head of an Executive agency determines that a confidentiality provision in a covered settlement agreement, or the sealing of a covered settlement agreement, is required to protect the public interest of the United States, the head of the Executive agency shall issue a public statement stating why such action is required to protect the public interest of the United States, which shall explain— (1) what interests confidentiality protects; and (2) why the interests protected by confidentiality outweigh the public’s interest in knowing about the conduct of the Federal Government and the expenditure of Federal resources. (d) Requirements for written public statements Any written public statement issued by an Executive agency that refers to an amount to be paid by a non-Federal person under a covered settlement agreement shall— (1) specify which portion, if any, of the amount to be paid under the covered settlement agreement by a non-Federal person— (A) is expressly specified under the covered settlement agreement as a civil or criminal penalty or fine to be paid for a violation of Federal law; or (B) is expressly specified under the covered settlement agreement as not deductible for purposes of the Internal Revenue Code of 1986; (2) if no portion of the amount to be paid under the covered settlement agreement by a non-Federal person is expressly specified under the covered settlement agreement as a civil or criminal penalty or fine, include a statement specifying that is the case; and (3) describe in detail— (A) any actions the non-Federal person shall take under the covered settlement agreement in lieu of payment to the Federal Government or a State or local government; and (B) any payments or compensation the non-Federal person shall make to other non-Federal persons under the covered settlement agreement. (e) Confidentiality The requirement to disclose information under subsection (d) shall apply to the extent that the information to be disclosed (or portion thereof) is not subject to a confidentiality provision that prohibits disclosure of the information (or portion thereof). (f) Reporting (1) In general Not later than January 15 of each year, the head of an Executive agency that entered into a covered settlement agreement or that entered into a settlement agreement that involves regulatory action or regulatory changes during the previous fiscal year shall submit to each committee of Congress with jurisdiction over the activities of the Executive agency a report indicating— (A) how many covered settlement agreements the Executive agency entered into during that fiscal year; (B) how many covered settlement agreements the Executive agency entered into during that fiscal year that had any terms or conditions that are required to be kept confidential; (C) how many covered settlement agreements the Executive agency entered into during that fiscal year for which all terms and conditions are required to be kept confidential; (D) the total amount of attorney fees, costs, and expenses paid to non-Federal persons under settlement agreements (including consent decrees) of the Executive agency during that fiscal year; and (E) the number of settlement agreements (including consent decrees) between the Executive agency and non-Federal persons that involve regulatory action or regulatory changes, including the promulgation of new rules, during that fiscal year. (2) Availability of reports The head of an Executive agency that is required to submit a report under paragraph (1) shall make the report publicly available in a searchable format in a prominent location on the Web site of the Executive agency. . (2) Technical and conforming amendment The table of sections for chapter 3 of title 5, United States Code, is amended by adding at the end the following: 307. Information regarding settlement agreements. . (b) Review of confidentiality of settlement agreements Not later than 6 months after the date of enactment of this Act, the Comptroller General of the United States shall submit to Congress a report regarding how Executive agencies (as defined under section 105 of title 5, United States Code) determine whether the terms of a settlement agreement or the existence of a settlement agreement will be treated as confidential, which shall include recommendations, if any, for legislative or administrative action to increase the transparency of Government settlements while continuing to protect the legitimate interests that confidentiality provisions serve.

June 9, 2016 Committed to the Committee of the Whole House on the State of the Union and ordered to be printed