[Congressional Record Volume 161, Number 136 (Monday, September 21, 2015)]
[Senate]
[Pages S6851-S6852]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    TRUTH IN SETTLEMENTS ACT OF 2015

  Mr. LANKFORD. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of Calendar No. 140, S. 1109.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The bill clerk read as follows:

       A bill (S. 1109) to require adequate information regarding 
     the tax treatment of payments under settlement agreements 
     entered into by Federal agencies, and for other purposes.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. LANKFORD. I ask unanimous consent that the Vitter amendment be 
agreed to, the bill, as amended, be read a third time and passed, and 
the motion to reconsider be considered made and laid upon the table.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 2668) was agreed to, as follows:

 (Purpose: To apply the disclosure requirements to settlements between 
agencies and private entities and require information regarding the use 
            of funds collected under settlement agreements)

       On page 2, strike lines 11 through 20 and insert the 
     following:
       ``(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;
       On page 2, line 23, strike ``and''.
       On page 2, line 26, strike the period and insert ``; and''.
       On page 2, after line 26, insert the following:
       ``(4) the term `rule making' has the meaning given that 
     term under section 551(5).
       On page 4, line 3, strike ``and''.
       On page 4, between lines 16 and 17, insert the following:

       ``(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

       On page 7, line 25, insert ``or that entered into a 
     settlement agreement that involves regulatory action or 
     regulatory changes'' after ``covered settlement agreement''.
       On page 8, line 11, strike ``and''.
       On page 8, line 15, strike the period and insert a 
     semicolon.
       On page 8, between lines 15 and 16, insert the following:
       ``(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.
       On page 8, strike line 25 and all that follows through page 
     9, line 20.
       On page 9, line 21, strike ``(c)'' and insert ``(b)''.


[[Page S6852]]


  The bill (S. 1109), as amended, was ordered to be engrossed for a 
third reading, was read the third time, and passed, as follows:

                                S. 1109

       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 ``Truth in Settlements Act of 
     2015''.

     SEC. 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:

     ``Sec. 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.

                          ____________________