[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.

                          ____________________