[Congressional Record Volume 165, Number 26 (Monday, February 11, 2019)]
[House]
[Pages H1500-H1502]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SETTLEMENT AGREEMENT INFORMATION DATABASE ACT OF 2019
Ms. HILL of California. Mr. Speaker, I move to suspend the rules and
pass the bill (H.R. 995) to amend chapter 3 of title 5, United States
Code, to require the publication of settlement agreements, and for
other purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 995
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 ``Settlement Agreement
Information Database Act of 2019''.
SEC. 2. INFORMATION REGARDING SETTLEMENT AGREEMENTS ENTERED
INTO BY FEDERAL AGENCIES.
(a) Requirements for Settlement Agreements.--Chapter 3 of
title 5, United States Code, is amended by adding at the end
the following new section:
``Sec. 307. Information regarding settlement agreements
``(a) Definitions.--In this section:
``(1) Local government.--The term `local government' has
the meaning given that term in section 6501 of title 31.
``(2) Order type.--The term `order type' means the type of
action or instrument used to settle a civil or criminal
judicial action.
``(3) Settlement agreement.--The term `settlement
agreement' means a settlement agreement (including a consent
decree) that--
``(A) is entered into by an Executive agency; and
``(B) relates to an alleged violation of Federal civil or
criminal law.
``(4) State.--The term `State' means each of the several
States, the District of Columbia, each territory or
possession of the United States, and each federally
recognized Indian Tribe.
``(b) Settlement Agreement Information Database.--
``(1) Executive agency requirement.--
``(A) In general.--Subject to subparagraph (B), the head of
each Executive agency shall, in accordance with guidance
issued pursuant to paragraph (2), submit the following
information to the database established under paragraph (3):
``(i) A list of each settlement agreement, in a categorized
and searchable format, entered into by the Executive agency,
as a party to a lawsuit, which shall include, for each
settlement agreement--
``(I) the order type of the settlement agreement;
``(II) the date on which the parties entered into the
settlement agreement;
``(III) a list of specific violations that specify the
basis for the action taken, with a description of the claims
each party settled under the settlement agreement;
``(IV) the amount of attorneys' fees and other litigation
costs awarded, if any, including a description of the
statutory basis for such an award;
``(V) the amount each party settling a claim under the
settlement agreement is obligated to pay under the settlement
agreement;
``(VI) the total amount the settling parties are obligated
to pay under the settlement agreement;
``(VII) the amount, if any, the settling party is obligated
to pay that is expressly specified under the settlement
agreement as a civil or criminal penalty or fine;
``(VIII) any payment made under the settlement agreement,
including a description of any payment made to the Federal
Government;
``(IX) the projected duration of the settlement agreement,
if available;
``(X) a list of State or local governments that may be
directly affected by the terms of the settlement agreement;
``(XI) a brief description of any economic data and
methodology used to justify the terms of the settlement
agreement;
``(XII) any modifications to the settlement agreement, when
applicable;
``(XIII) notice and comments, when applicable; and
``(XIV) whether the settlement agreement is still under
judicial enforcement and any period of time by which the
parties agreed to have certain conditions met.
``(ii) A copy of each--
``(I) settlement agreement entered into by the Executive
agency; and
``(II) statement issued under paragraph (4).
``(B) Nondisclosure.--The requirement to submit information
or a copy of a settlement agreement under subparagraph (A)
shall not apply to the extent the information or copy (or
portion thereof)--
``(i) is subject to a confidentiality provision that
prohibits disclosure of the information or copy (or portion
thereof); and
``(ii) would not be disclosed under section 552, if the
Executive agency provides a citation to the applicable
exemption.
``(C) Clarification of responsible agency.--In a case in
which an Executive agency is acting at the request or on
behalf of another Executive agency (referred to as the
originating agency), the originating agency is responsible
for submitting information under subparagraph (A).
``(2) Guidance.--The Director of the Office of Management
and Budget shall issue guidance for Executive agencies to
implement paragraph (1). Such guidance shall include the
following:
``(A) Specific dates by which submissions must be made, not
less than twice a year.
``(B) Data standards, including common data elements and a
common, nonproprietary, searchable, machine-readable,
platform independent format.
``(C) A requirement that the information and documents
required under paragraph (1) are publicly available for a
period starting on the date of the settlement through not
less than 5 years after the termination of the settlement
agreement.
``(3) Establishment of database.--The Director of the
Office of Management and Budget, or the head of an Executive
agency designated by the Director, shall establish and
maintain a public, searchable, downloadable database for
Executive agencies to directly upload and submit the
information and documents required under paragraph (1) for
immediate publication online.
``(4) Statement of confidentiality.--If the head of an
Executive agency determines that a confidentiality provision
in a settlement agreement, or the sealing of a settlement
agreement, is required to protect the public interest of the
United States, the head of the Executive agency may except
the settlement agreement from the requirement in paragraph
(1) and shall issue a written public statement stating why
such action is required to protect the public interest of the
United States, which shall explain--
``(A) what interests confidentiality protects; and
``(B) 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.''.
[[Page H1501]]
(b) 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 new item:
``307. Information regarding settlement agreements.''.
(c) Deadline To Establish Database.--Not later than 1 year
after the date of the enactment of this Act, the Director of
the Office of Management and Budget shall issue guidance
required by section 307(b)(2) of title 5, United States Code,
as added by subsection (a), and establish the settlement
agreement information database required by section 307(b)(3)
of title 5, United States Code, as added by subsection (a).
(d) Deadline for First Submission.--Not later than 90 days
after the Director issues guidance under section 307(b)(2) of
title 5, United States Code, as added by subsection (a), the
head of each Executive agency (as defined in section 105 of
title 5, United States Code) shall begin submitting
information to the database established under such section
307.
SEC. 3. AMENDMENTS TO THE FREEDOM OF INFORMATION ACT.
Section 552(a)(2) of title 5, United States Code, is
amended--
(1) by redesignating subparagraphs (B) through (E) as
subparagraphs (C) through (F), respectively; and
(2) by inserting after subparagraph (A) the following new
subparagraph:
``(B) each settlement agreement (as defined in section 307)
entered into by an Executive agency, with redactions for
information that the agency may withhold under paragraph (8)
and subsections (b) and (c) of this section;''.
SEC. 4. RULE OF CONSTRUCTION.
Nothing in this Act, or the amendments made by this Act,
shall be construed to require the disclosure of information
or records that any agency may properly withhold from public
disclosure under section 552 of title 5, United States Code
(commonly known as the ``Freedom of Information Act'').
SEC. 5. EFFECTIVE DATE; APPLICABILITY.
This Act shall be effective 180 days after the date of the
enactment of this Act and shall apply--
(1) with respect to any settlement agreement (as such term
is defined in section 307 of title 5, United States Code, as
added by section 2), entered into on or after the date of the
enactment of this Act; and
(2) to the extent practicable, any such settlement
agreement (as such term is defined in section 307 of title 5,
United States Code, as added by section 2) that remains in
effect on or after the date of the enactment of this Act.
SEC. 6. DETERMINATION OF BUDGETARY EFFECTS.
The budgetary effects of this Act, for the purpose of
complying with the Statutory Pay-As-You-Go Act of 2010, shall
be determined by reference to the latest statement titled
``Budgetary Effects of PAYGO Legislation'' for this Act,
submitted for printing in the Congressional Record by the
Chairman of the House Budget Committee, provided that such
statement has been submitted prior to the vote on passage.
The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from
California (Ms. Hill) and the gentleman from North Carolina (Mr.
Meadows) each will control 20 minutes.
The Chair recognizes the gentlewoman from California.
General Leave
Ms. HILL of California. Mr. Speaker, I ask unanimous consent that all
Members may have 5 legislative days in which to revise and extend their
remarks and include extraneous material on this measure.
The SPEAKER pro tempore. Is there objection to the request of the
gentlewoman from California?
There was no objection.
Ms. HILL of California. Mr. Speaker, I yield myself such time as I
may consume.
I support this commonsense measure. The Settlement Agreement
Information Database Act would create a database of settlement
agreements entered into by Federal agencies that relate to alleged
violations of Federal, civil or criminal law.
The Office of Management and Budget would manage this database and
set deadlines for submission. The heads of executive agencies would be
required to submit details about the types of settlement agreements,
the parties involved in the settlements, specific violations, and the
dates on which the settlement agreements were agreed to.
The information about the settlement agreements would remain public
until 5 years after the termination of the agreements. The information
in the agreements would remain subject to the Freedom of Information
Act, but if the head of the agency decided to keep an entire agreement
confidential, he or she would be required to provide an explanation of
that action.
This bill would improve the transparency surrounding settlement
agreements which, in the past, have been difficult for the public to
access.
Mr. Speaker, I reserve the balance of my time.
Mr. MEADOWS. Mr. Speaker, I yield myself such time as I may consume.
I rise in support of H.R. 995. But before I do, I want to
congratulate the gentlewoman on the passage, I believe, of her first
bill here on the House floor; and go even further to say that, in
keeping with this bipartisan support of H.R. 995, the Settlement
Agreement Information Database Act of 2019 that was introduced, and is
introduced, by the gentleman from Alabama (Mr. Palmer).
Mr. Speaker, transparency and public participation are critical to
maintaining the public trust in its government. However, Federal
agencies have increasingly resolved litigation by entering into
settlement agreements rather than going through a lengthy public trial.
Now settlement agreements are often negotiated behind closed doors.
Those secret negotiations effectively prevent the public from
participating in important policy sessions.
Mr. Speaker, let me reiterate this. When these settlements are done,
when they are actually consummated, they set up future public policy,
and to do that behind closed doors is certainly not something that a
transparent government should be about.
State and local governments, industry stakeholders, and taxpayers are
often directly affected by these settlements, but unable to provide
input.
For example, through the settlement agreement, the Environmental
Protection Agency required the city of Fort Smith, Arkansas, to
overhaul its sewer system in 12 years. Sewer utility bills increased by
167 percent in 3 years to fund the obligation of this agreement. At the
same time, Fort Smith residents' income actually decreased by 11
percent.
The burden of a Federal settlement can be difficult to see and
understand. Poor recordkeeping makes it impossible for Congress and the
public to determine the full impact of the Federal settlement
agreements.
Agencies release information about settlements at their discretion.
Some agencies rely even on press releases to release the amount of
information. So, as a result, the public only sees the facts through
what the agency puts out and only in the most favorable light.
So, in many cases these closed-door negotiations, the terms of the
settlement are deemed confidential. Without an explanation to the
public, the process becomes even more opaque and seemingly arbitrary.
{time} 1630
H.R. 995 will shine a light on Federal settlement agreements. This
bill will require the establishment of electronic and publicly
available databases for agencies' settlement agreements.
Mr. Speaker, I urge all of my colleagues to support this particular
bill, and I reserve the balance of my time.
Ms. HILL of California. Mr. Speaker, I reserve the balance of my
time.
Mr. MEADOWS. Mr. Speaker, I yield as much time as he may consume to
the gentleman from Alabama (Mr. Palmer), the sponsor of this particular
piece of legislation.
Mr. PALMER. Mr. Speaker, I would like to join my colleague from North
Carolina in congratulating the gentlewoman from California on passing
her first bill. I now know what that broad smile was about when the
``yeas'' were announced.
Mr. Speaker, the Federal Government's duty to serve the public
interest relies on transparency and accountability to its citizens;
however, since the 1970s, Federal agencies have increasingly chosen to
avoid a public trial and settle litigation behind closed doors. The
resulting consent decrees and settlement agreements can mandate terms
beyond the scope of the original violation of Federal law and can lead
to higher costs than a trial.
These agreements are nearly impossible to modify or vacate, and in
many cases can remain in place for decades. In one instance in New York
City, their special education program has been under a consent decree
since 1972.
This process has influenced a range of public policies across
governmental programs in States, counties, and cities, with elected
officials inheriting the burden with little knowledge of the mandates
or cost.
[[Page H1502]]
In Alabama, for instance, when former Member of Congress Governor Bob
Riley was elected Governor of Alabama, he was going over the budget and
saw the amount for legal fees and asked what it was for. He was
informed of the number of consent decrees that the State was under and
they were paying out these legal fees, and it was an enormous amount.
States, municipalities, industry, stakeholders, and taxpayers are
often directly affected by the terms of the agreements but are
prevented from participating in the negotiations. In some cases, the
settlements are declared to be confidential and the contents sealed,
without providing any explanation.
Unfortunately, there is no uniform standard for recordkeeping across
Federal agencies. While some agencies have issued directives to
streamline and publish this information, most of the public's access to
Federal settlement agreement information is primarily issued, as my
colleague from North Carolina pointed out, in the form of a press
release. It is, therefore, impossible for the public to determine the
comprehensive costs and outcomes of these settlement agreements.
This lack of transparency leaves elected officials, agency officials,
and the public in the dark about the consent decrees that can impact
them. Oftentimes, newly elected officials, as I said, from Governors to
attorneys general to mayors are sworn in and inherit substantial legal
obligations they were completely unaware of before they took office.
The Settlement Agreement Information Database Act will address this
problem. The bill establishes a centralized and electronic database of
settlement agreements entered into by Federal agencies. Basic
information about the settlement agreements already collected by
Federal agencies, such as payments and dates, will be available to the
public online through this database.
H.R. 995 provides long overdue transparency and accountability and
standards to the Federal settlement agreements.
Mr. Speaker, I thank my colleagues, the gentleman from North Carolina
(Mr. Meadows) and the gentlewoman from California (Ms. Hill), for their
support on this bill, and I urge my other colleagues to support this
bill as well.
Mr. MEADOWS. Mr. Speaker, I thank the gentleman from Alabama for his
leadership on this particular bill. I urge the adoption of it, and I
yield back the balance of my time.
Ms. HILL of California. Mr. Speaker, I want to thank the
distinguished gentlemen from Alabama and from North Carolina for their
congratulations and in sharing my excitement over the passage of my
first bill.
Mr. Speaker, I urge the passage of H.R. 995, as amended, and I yield
back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentlewoman from California (Ms. Hill) that the House suspend the rules
and pass the bill, H.R. 995, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Ms. HILL of California. Mr. Speaker, I object to the vote on the
ground that a quorum is not present and make the point of order that a
quorum is not present.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further
proceedings on this question will be postponed.
The point of no quorum is considered withdrawn.
____________________