[Congressional Record Volume 167, Number 3 (Tuesday, January 5, 2021)]
[House]
[Pages H69-H71]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         SETTLEMENT AGREEMENT INFORMATION DATABASE ACT OF 2021

  Mrs. CAROLYN B. MALONEY of New York. Mr. Speaker, I move to suspend 
the rules and pass the bill (H.R. 27) to amend chapter 3 of title 5, 
United States Code, to require the publication of settlement 
agreements, and for other purposes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                                H.R. 27

       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 2021''.

     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:

[[Page H70]]

       ``(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.''.
       (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 
New York (Mrs. Carolyn B. Maloney) and the gentleman from Alabama (Mr. 
Palmer) each will control 20 minutes.
  The Chair recognizes the gentlewoman from New York.


                             General Leave

  Mrs. CAROLYN B. MALONEY of New York. Mr. Speaker, I ask unanimous 
consent that all Members have 5 legislative days in which to revise and 
extend their remarks and include extraneous material on the measure 
before us.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from New York?
  There was no objection.
  Mrs. CAROLYN B. MALONEY of New York. Mr. Speaker, I yield myself such 
time as I may consume.
  Mr. Speaker, I support this commonsense measure, and I thank 
Representatives Palmer and Cooper for their hard work on it.
  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

[[Page H71]]

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. PALMER. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in support of H.R. 27, the Settlement Agreement 
Information Database Act. Transparency and public participation are 
vital to ensure the public's continued trust in our government. 
Increasingly, Federal agencies are using legally binding settlement 
agreements to resolve litigation without going through lengthy public 
trials.
  However, it is impossible for Congress and the public to determine 
the comprehensive impact of these settlement agreements on the State 
and local governments and private sector entities, which must continue 
to follow the mandated requirements. Such secret negotiations and 
agreements essentially prevent the public from participating in 
important policy decisions.
  The burden of Federal settlement agreements can be difficult to see 
and understand, but State and local governments, industry stakeholders, 
and taxpayers can be directly affected by the settlements for years, 
and yet they are unable to provide input. This legislation seeks to 
correct that problem.
  The Settlement Agreement Information Database Act, or SAID Act, 
requires Federal agencies to submit information regarding consent 
decrees and settlement agreements to a public electronic database. This 
public resource, to be overseen by the Office of Management and Budget, 
would include dates, payments, attorney fees awards, and a list of 
State and local governments and entities impacted by the settlement.
  Currently, agencies release information about settlements at their 
discretion and will only publicize the facts that reflect favorably 
upon the agency. Furthermore, the terms of settlement agreements are 
often deemed confidential.
  Under the requirements of the SAID Act, if the agency believes that 
the information regarding an agreement should remain confidential, the 
agency head must publish an explanation of why it is confidential. This 
will increase the transparency of the Federal Government and shine a 
much-needed light on settlement agreements.
  Mr. Speaker, I thank my colleagues, Representatives   Jim Cooper, 
Gerry Connolly, and Van Taylor, for supporting this important 
legislation. I am happy we could expedite its consideration again in 
the House after passing this bill unanimously in the 116th Congress. I 
thank the chairman for bringing this bill and making it part of this 
first legislative day package.
  Mr. Speaker, I urge my colleagues on both sides of the aisle to 
support this commonsense legislation, and I reserve the balance of my 
time.
  Mrs. CAROLYN B. MALONEY of New York. Mr. Speaker, if the gentleman 
has no further speakers, I am prepared to close, and I reserve the 
balance of my time.
  Mr. PALMER. Mr. Speaker, I hope we can continue to find bipartisan 
ways to increase transparency of the Federal Government. I strongly 
urge my colleagues to support this commonsense legislation, and I yield 
back the balance of my time.
  Mrs. CAROLYN B. MALONEY of New York. Mr. Speaker, I urge passage of 
H.R. 27. I am strongly in support of this bipartisan legislation, and I 
yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from New York (Mrs. Carolyn B. Maloney) that the House 
suspend the rules and pass the bill, H.R. 27.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

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