,,ii ,calendar ,no4 #eff #aacth ,,congress #b;d ,session ,s4 #ahih ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,january #h1 #bjad,ms4 ,warren 7for herself1 ,mr4 ,coburn1 ,mr4 ,levin1 and ,mr4 ,begich7 introduced the following bill2 which was read twice and referred to the ,committee on ,homeland ,security and ,governmental ,affairs ,september #af1 #bjad,reported by ,mr4 ,carper1 with an amendment,strike out all after the enacting clause and insert the part printed in italic ,a ,,bill ,to require adequate information regarding the tax treatment of payments under settlement agreements entered into by ,federal agencies1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,truth in ,settlements ,act of #bjad4 #b4 ,information regarding settlement agreements entered into by ,federal agencies 7a7 ,requirements for settlement agreements 7#a7 ,in general ,chapter #c of title #e1 ,united ,states ,code1 is amended by adding at the end the following3 #cjg4 ,information regarding settlement agreements 7a7 ,definitions ,in this section-- 7#a7 the term covered settlement agreement means a settlement agreement 7including a consent decree7 that-- 7,a7 is entered into by an ,executive agency2 7,b7 relates to an alleged violation of ,federal civil or criminal law2 and 7,c7 requires the payment of a total of not less than #a1jjj1jjj by one or more non-,federal persons2 7#b7 the term entity within the ,federal ,government includes an officer or employee of the ,federal ,government acting in an official capacity2 and 7#c7 the term non-,federal person means a person that is not an entity within the ,federal ,government4 7b7 ,information ,to be posted online 7#a7 ,requirement 7,a7 ,in general ,subject to subparagraph 7,b71 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-- 7i7 a list of each covered settlement agreement entered into by the ,executive agency1 which shall include1 for each covered settlement agreement-- 7,i7 the date on which the parties entered into the covered settlement agreement2 7,,ii7 the names of the parties that settled claims under the covered settlement agreement2 7,,iii7 a description of the claims each party settled under the covered settlement agreement2 7,,iv7 the amount each party settling a claim under the covered settlement agreement is obligated to pay under the settlement agreement2 7,v7 the total amount the settling parties are obligated to pay under the settlement agreement2 and 7,,vi7 for each settling party1 the amount the settling party is obligated to pay that has been designated as a civil penalty or fine1 or otherwise specified as not tax deductible under the covered settlement agreement2 and 7ii7 a copy of each covered settlement agreement entered into by the ,executive agency4 7,b7 ,confidentiality provisions ,the requirement to disclose information or a copy of a covered settlement agreement under subparagraph 7,a7 shall apply to the extent that the information or copy 7or portion thereof7 is not subject to a confidentiality provision that prohibits disclosure of the information or copy 7or portion thereof74 7#b7 ,period ,the head of each ,executive agency shall ensure that-- 7,a7 information regarding a covered settlement agreement is publicly available on the list described in paragraph 7#a77;,a77i7 until at least the date that is #e years after the date of the covered settlement agreement2 and 7,b7 a copy of a covered settlement agreement made available under paragraph 7#a77;,a77ii7 is publicly available until-- 7i7 at least the date that is #a year after the date of the covered settlement agreement2 or 7ii7 for a covered settlement agreement under which a non-,federal person is required to pay not less than #ej1jjj1jjj1 at least the date that is #e years after the date of the covered settlement agreement4 7c7 ,public statement ,if the head of an ,executive agency determines that a confidentiality provision in a covered settlement agreement1 or the sealing of a covered settlement agreement1 is required to protect the public interest of the ,united ,states1 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 ,states1 which shall explain-- 7#a7 what interests confidentiality protects2 and 7#b7 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 resources4 7d7 ,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-- 7#a7 specify which portion1 if any1 of the amount to be paid under the covered settlement agreement by a non-,federal person-- 7,a7 is a civil or criminal penalty or fine to be paid for a violation of ,federal law2 or 7,b7 is expressly specified under the covered settlement agreement as not deductible for purposes of the ,internal ,revenue ,code of #aihf2 and 7#b7 describe in detail any actions the non-,federal person shall take under the covered settlement agreement-- 7,a7 in lieu of payment to the ,federal ,government or a ,state or local government2 or 7,b7 in addition to such a payment4 7e7 ,reporting 7#a7 ,in general ,not later than ,january #ae of each year1 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-- 7,a7 how many covered settlement agreements the ,executive agency entered into during that fiscal year2 7,b7 how many covered settlement agreements the ,executive agency entered into during that fiscal year had any terms or conditions that are required to be kept confidential2 and 7,c7 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 confidential4 7#b7 ,availability of reports ,the head of an ,executive agency that is required to submit a report under paragraph 7#a7 shall make the report publically available in a searchable format in a prominent location on the ,web site of the ,executive agency4 4 7#b7 ,technical and conforming amendment ,the table of sections for chapter #c of title #e1 ,united ,states ,code1 is amended by adding at the end the following3 #cjg4 ,information regarding settlement agreements4 4 7b7 ,securities reporting 7#a7 ,in general ,each issuer of securities that is required to file annual or other periodic reports with the ,commission under section #ac or #ae7;d7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #ghm1 #gho7d77 shall describe in such a report any claim filed for a deduction under the ,internal ,revenue ,code of #aihf during the reporting period that relates to a payment required under a covered settlement agreement4 7#b7 ,definitions ,as used in this subsection-- 7,a7 the term ,commission means the ,securities and ,exchange ,commission2 7,b7 the term covered settlement agreement has the meaning given that term in section #cjg of title #e1 ,united ,states ,code1 as added by subsection 7a72 and 7,c7 the term issuer has the same meaning as in section #c of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c74 7c7 ,review of confidentiality of settlement agreements ,not later than #f months after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall submit to ,congress a report regarding how ,executive agencies 7as defined under section #aje of title #e1 ,united ,states ,code7 determine whether the terms of a settlement agreement or the existence of a settlement agreement will be treated as confidential1 which shall include recommendations1 if any1 for legislative or administrative action to increase the transparency of ,government settlements while continuing to protect the legitimate interests that confidentiality provisions serve4 #a4 ,short title ,this ,act may be cited as the ,truth in ,settlements ,act of #bjad4 #b4 ,information regarding settlement agreements entered into by ,federal agencies 7a7 ,requirements for settlement agreements 7#a7 ,in general ,chapter #c of title #e1 ,united ,states ,code1 is amended by adding at the end the following3 #cjg4 ,information regarding settlement agreements 7a7 ,definitions ,in this section-- 7#a7 the term covered settlement agreement means a settlement agreement 7including a consent decree7 that-- 7,a7 is entered into by an ,executive agency2 7,b7 relates to an alleged violation of ,federal civil or criminal law2 and 7,c7 requires the payment of a total of not less than #a1jjj1jjj by one or more non-,federal persons2 7#b7 the term entity within the ,federal ,government includes an officer or employee of the ,federal ,government acting in an official capacity2 and 7#c7 the term non-,federal person means a person that is not an entity within the ,federal ,government4 7b7 ,information ,to be posted online 7#a7 ,requirement 7,a7 ,in general ,subject to subparagraph 7,b71 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-- 7i7 a list of each covered settlement agreement entered into by the ,executive agency1 which shall include1 for each covered settlement agreement-- 7,i7 the date on which the parties entered into the covered settlement agreement2 7,,ii7 the names of the parties that settled claims under the covered settlement agreement2 7,,iii7 a description of the claims each party settled under the covered settlement agreement2 7,,iv7 the amount each party settling a claim under the covered settlement agreement is obligated to pay under the settlement agreement2 7,v7 the total amount the settling parties are obligated to pay under the settlement agreement2 and 7,,vi7 for each settling party-- 7aa7 the amount1 if any1 the settling party is obligated to pay that is expressly specified under the covered settlement agreement as a civil or criminal penalty or fine2 and 7bb7 the amount1 if any1 that is expressly specified under the covered settlement agreement as not tax deductible2 and 7ii7 a copy of each covered settlement agreement entered into by the ,executive agency4 7,b7 ,confidentiality provisions ,the requirement to disclose information or a copy of a covered settlement agreement under subparagraph 7,a7 shall apply to the extent that the information or copy 7or portion thereof7 is not subject to a confidentiality provision that prohibits disclosure of the information or copy 7or portion thereof74 7#b7 ,period ,the head of each ,executive agency shall ensure that-- 7,a7 information regarding a covered settlement agreement is publicly available on the list described in paragraph 7#a77;,a77i7 until at least the date that is #e years after the date of the covered settlement agreement2 and 7,b7 a copy of a covered settlement agreement made available under paragraph 7#a77;,a77ii7 is publicly available until-- 7i7 at least the date that is #a year after the date of the covered settlement agreement2 or 7ii7 for a covered settlement agreement under which a non-,federal person is required to pay not less than #ej1jjj1jjj1 at least the date that is #e years after the date of the covered settlement agreement4 7c7 ,public statement ,if the head of an ,executive agency determines that a confidentiality provision in a covered settlement agreement1 or the sealing of a covered settlement agreement1 is required to protect the public interest of the ,united ,states1 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 ,states1 which shall explain-- 7#a7 what interests confidentiality protects2 and 7#b7 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 resources4 7d7 ,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-- 7#a7 specify which portion1 if any1 of the amount to be paid under the covered settlement agreement by a non-,federal person-- 7,a7 is expressly specified under the covered settlement agreement as a civil or criminal penalty or fine to be paid for a violation of ,federal law2 or 7,b7 is expressly specified under the covered settlement agreement as not deductible for purposes of the ,internal ,revenue ,code of #aihf2 7#b7 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 fine1 include a statement specifying that is the case2 and 7#c7 describe in detail-- 7,a7 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 government2 and 7,b7 any payments or compensation the non-,federal person shall make to other non-,federal persons under the covered settlement agreement4 7e7 ,confidentiality ,the requirement to disclose information under subsection 7d7 shall apply to the extent that the information to be disclosed 7or portion thereof7 is not subject to a confidentiality provision that prohibits disclosure of the information 7or portion thereof74 7f7 ,reporting 7#a7 ,in general ,not later than ,january #ae of each year1 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-- 7,a7 how many covered settlement agreements the ,executive agency entered into during that fiscal year2 7,b7 how many covered settlement agreements the ,executive agency entered into during that fiscal year had any terms or conditions that are required to be kept confidential2 and 7,c7 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 confidential4 7#b7 ,availability of reports ,the head of an ,executive agency that is required to submit a report under paragraph 7#a7 shall make the report publically available in a searchable format in a prominent location on the ,web site of the ,executive agency4 4 7#b7 ,technical and conforming amendment ,the table of sections for chapter #c of title #e1 ,united ,states ,code1 is amended by adding at the end the following3 #cjg4 ,information regarding settlement agreements4 4 7b7 ,securities reporting 7#a7 ,in general ,each issuer of securities that is required to file annual or other periodic reports with the ,commission under section #ac or #ae7;d7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #ghm1 #gho7d77 shall describe in such a report any claim filed for a deduction under the ,internal ,revenue ,code of #aihf during the reporting period that relates to a payment required under a covered settlement agreement4 7#b7 ,definitions ,as used in this subsection-- 7,a7 the term ,commission means the ,securities and ,exchange ,commission2 7,b7 the term covered settlement agreement has the meaning given that term in section #cjg of title #e1 ,united ,states ,code1 as added by subsection 7a72 and 7,c7 the term issuer has the same meaning as in section #c of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c74 7c7 ,review of confidentiality of settlement agreements ,not later than #f months after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall submit to ,congress a report regarding how ,executive agencies 7as defined under section #aje of title #e1 ,united ,states ,code7 determine whether the terms of a settlement agreement or the existence of a settlement agreement will be treated as confidential1 which shall include recommendations1 if any1 for legislative or administrative action to increase the transparency of ,government settlements while continuing to protect the legitimate interests that confidentiality provisions serve4 ,september #af1 #bjad,reported with an amendment