#aadth ,,congress  #ast ,session  ,s4   
#aaji  ,,an ,,act  ,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 #bjae4  #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-- 7,a7 that is entered  
into by an ,executive agency2 and  7,b7 
7i7 that-- 7,i7 relates to an alleged   
violation of ,federal civil or criminal 
law2 and  7,,ii7 requires the payment of
 a total of not less than #a1jjj1jjj by 

#a or more non-,federal persons2 or     
7ii7 that--  7,i7 relates to the rule   
making process of the ,executive agency 
or an alleged failure by the ,executive 
agency to engage in a rule making       
process2 and  7,,ii7 requires the       
payment of a total of not less than     
#bjj1jjj in attorney fees1 costs1 or    
expenses by the ,executive agency or    
entity within the ,federal ,government  
to a non-,federal person2  7#b7 the term
 entity within the ,federal ,government 
includes an officer or employee of the  
,federal ,government acting in an       
official capacity2  7#c7 the term       
non-,federal person means a person that 
is not an entity within the ,federal    
,government2 and  7#d7 the term rule    
making has the meaning given that term  
under section #eea7e74  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  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     
deductible for purposes of the ,internal
 ,revenue ,code of #aihf2 and  7,,vii7 a
 description of where amounts collected 
under the covered settlement agreement  
will be deposited1 including1 if        
applicable1 the deposit of such amounts 
in an account available for use for #a  
or more programs of the ,federal        
,government2 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 for a period of  
not less than #e years1 beginning on 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--  7i7 for a period  
of not less than #a year1 beginning on  
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 for a period 
of not less than #e years1 beginning on 
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 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--  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 that had any terms or conditions   
that are required to be kept            
confidential2  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 confidential2   

7,d7 the total amount of attorney fees1 
costs1 and expenses paid to non-,federal
 persons under settlement agreements    
7including consent decrees7 of the      
,executive agency during that fiscal    
year2 and  7,e7 the number of settlement
 agreements 7including consent decrees7 
between the ,executive agency and       
non-,federal persons that involve       
regulatory action or regulatory changes1
 including the promulgation of new      
rules1 during that fiscal year4  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 publicly 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 ,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       
,passed the ,senate ,september #ba1     
#bjae4,secretary