[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1898 Reported in Senate (RS)]
Calendar No. 566
113th CONGRESS
2d Session
S. 1898
To require adequate information regarding the tax treatment of payments
under settlement agreements entered into by Federal agencies, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 8, 2014
Ms. Warren (for herself, Mr. Coburn, Mr. Levin, and Mr. Begich)
introduced the following bill; which was read twice and referred to the
Committee on Homeland Security and Governmental Affairs
September 16, 2014
Reported by Mr. Carper, 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 agencies, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
<DELETED>SECTION 1. SHORT TITLE.</DELETED>
<DELETED> This Act may be cited as the ``Truth in Settlements Act of
2014''.</DELETED>
<DELETED>SEC. 2. INFORMATION REGARDING SETTLEMENT AGREEMENTS ENTERED
INTO BY FEDERAL AGENCIES.</DELETED>
<DELETED> (a) Requirements for Settlement Agreements.--</DELETED>
<DELETED> (1) In general.--Chapter 3 of title 5, United
States Code, is amended by adding at the end the
following:</DELETED>
<DELETED>``Sec. 307. Information regarding settlement
agreements</DELETED>
<DELETED> ``(a) Definitions.--In this section--</DELETED>
<DELETED> ``(1) the term `covered settlement agreement'
means a settlement agreement (including a consent decree)
that--</DELETED>
<DELETED> ``(A) is entered into by an Executive
agency;</DELETED>
<DELETED> ``(B) relates to an alleged violation of
Federal civil or criminal law; and</DELETED>
<DELETED> ``(C) requires the payment of a total of
not less than $1,000,000 by one or more non-Federal
persons;</DELETED>
<DELETED> ``(2) the term `entity within the Federal
Government' includes an officer or employee of the Federal
Government acting in an official capacity; and</DELETED>
<DELETED> ``(3) the term `non-Federal person' means a person
that is not an entity within the Federal Government.</DELETED>
<DELETED> ``(b) Information To Be Posted Online.--</DELETED>
<DELETED> ``(1) Requirement.--</DELETED>
<DELETED> ``(A) In general.--Subject to subparagraph
(B), 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--</DELETED>
<DELETED> ``(i) a list of each covered
settlement agreement entered into by the
Executive agency, which shall include, for each
covered settlement agreement--</DELETED>
<DELETED> ``(I) the date on which
the parties entered into the covered
settlement agreement;</DELETED>
<DELETED> ``(II) the names of the
parties that settled claims under the
covered settlement agreement;</DELETED>
<DELETED> ``(III) a description of
the claims each party settled under the
covered settlement agreement;</DELETED>
<DELETED> ``(IV) the amount each
party settling a claim under the
covered settlement agreement is
obligated to pay under the settlement
agreement;</DELETED>
<DELETED> ``(V) the total amount the
settling parties are obligated to pay
under the settlement agreement;
and</DELETED>
<DELETED> ``(VI) for each settling
party, the amount the settling party is
obligated to pay that has been
designated as a civil penalty or fine,
or otherwise specified as not tax
deductible under the covered settlement
agreement; and</DELETED>
<DELETED> ``(ii) a copy of each covered
settlement agreement entered into by the
Executive agency.</DELETED>
<DELETED> ``(B) Confidentiality provisions.--The
requirement to disclose information or a copy of a
covered settlement agreement under subparagraph (A)
shall apply to the extent that the information or copy
(or portion thereof) is not subject to a
confidentiality provision that prohibits disclosure of
the information or copy (or portion thereof).</DELETED>
<DELETED> ``(2) Period.--The head of each Executive agency
shall ensure that--</DELETED>
<DELETED> ``(A) information regarding a covered
settlement agreement is publicly available on the list
described in paragraph (1)(A)(i) until at least the
date that is 5 years after the date of the covered
settlement agreement; and</DELETED>
<DELETED> ``(B) a copy of a covered settlement
agreement made available under paragraph (1)(A)(ii) is
publicly available until--</DELETED>
<DELETED> ``(i) at least the date that is 1
year after the date of the covered settlement
agreement; or</DELETED>
<DELETED> ``(ii) for a covered settlement
agreement under which a non-Federal person is
required to pay not less than $50,000,000, at
least the date that is 5 years after the date
of the covered settlement agreement.</DELETED>
<DELETED> ``(c) Public Statement.--If the head of an Executive
agency determines that a confidentiality provision in a covered
settlement agreement, or the sealing of a covered settlement agreement,
is required to protect the public interest of the United States, 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
States, which shall explain--</DELETED>
<DELETED> ``(1) what interests confidentiality protects;
and</DELETED>
<DELETED> ``(2) 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.</DELETED>
<DELETED> ``(d) 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--</DELETED>
<DELETED> ``(1) specify which portion, if any, of the amount
to be paid under the covered settlement agreement by a non-
Federal person--</DELETED>
<DELETED> ``(A) is a civil or criminal penalty or
fine to be paid for a violation of Federal law;
or</DELETED>
<DELETED> ``(B) is expressly specified under the
covered settlement agreement as not deductible for
purposes of the Internal Revenue Code of 1986;
and</DELETED>
<DELETED> ``(2) describe in detail any actions the non-
Federal person shall take under the covered settlement
agreement--</DELETED>
<DELETED> ``(A) in lieu of payment to the Federal
Government or a State or local government; or</DELETED>
<DELETED> ``(B) in addition to such a
payment.</DELETED>
<DELETED> ``(e) Reporting.--</DELETED>
<DELETED> ``(1) In general.--Not later than January 15 of
each year, 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--</DELETED>
<DELETED> ``(A) how many covered settlement
agreements the Executive agency entered into during
that fiscal year;</DELETED>
<DELETED> ``(B) 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 confidential; and</DELETED>
<DELETED> ``(C) 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 confidential.</DELETED>
<DELETED> ``(2) Availability of reports.--The head of an
Executive agency that is required to submit a report under
paragraph (1) shall make the report publically available in a
searchable format in a prominent location on the Web site of
the Executive agency.''.</DELETED>
<DELETED> (2) 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:</DELETED>
<DELETED>``307. Information regarding settlement agreements.''.
<DELETED> (b) Securities Reporting.--</DELETED>
<DELETED> (1) In general.--Each issuer of securities that is
required to file annual or other periodic reports with the
Commission under section 13 or 15(d) of the Securities Exchange
Act of 1934 (15 U.S.C. 78m, 78o(d)) shall describe in such a
report any claim filed for a deduction under the Internal
Revenue Code of 1986 during the reporting period that relates
to a payment required under a covered settlement
agreement.</DELETED>
<DELETED> (2) Definitions.--As used in this subsection--
</DELETED>
<DELETED> (A) the term ``Commission'' means the
Securities and Exchange Commission;</DELETED>
<DELETED> (B) the term ``covered settlement
agreement'' has the meaning given that term in section
307 of title 5, United States Code, as added by
subsection (a); and</DELETED>
<DELETED> (C) the term ``issuer'' has the same
meaning as in section 3 of the Securities Exchange Act
of 1934 (15 U.S.C. 78c).</DELETED>
<DELETED> (c) Review of Confidentiality of Settlement Agreements.--
Not later than 6 months after the date of enactment of this Act, the
Comptroller General of the United States shall submit to Congress a
report regarding how Executive agencies (as defined under section 105
of title 5, United States Code) determine whether the terms of a
settlement agreement or the existence of a settlement agreement will be
treated as confidential, which shall include recommendations, if any,
for legislative or administrative action to increase the transparency
of Government settlements while continuing to protect the legitimate
interests that confidentiality provisions serve.</DELETED>
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Truth in Settlements Act of 2014''.
SEC. 2. INFORMATION REGARDING SETTLEMENT AGREEMENTS ENTERED INTO BY
FEDERAL AGENCIES.
(a) Requirements for Settlement Agreements.--
(1) In general.--Chapter 3 of title 5, United States Code,
is amended by adding at the end the following:
``Sec. 307. Information regarding settlement agreements
``(a) Definitions.--In this section--
``(1) the term `covered settlement agreement' means a
settlement agreement (including a consent decree) that--
``(A) is entered into by an Executive agency;
``(B) relates to an alleged violation of Federal
civil or criminal law; and
``(C) requires the payment of a total of not less
than $1,000,000 by one or more non-Federal persons;
``(2) the term `entity within the Federal Government'
includes an officer or employee of the Federal Government
acting in an official capacity; and
``(3) the term `non-Federal person' means a person that is
not an entity within the Federal Government.
``(b) Information To Be Posted Online.--
``(1) Requirement.--
``(A) In general.--Subject to subparagraph (B), 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--
``(i) a list of each covered settlement
agreement entered into by the Executive agency,
which shall include, for each covered
settlement agreement--
``(I) the date on which the parties
entered into the covered settlement
agreement;
``(II) the names of the parties
that settled claims under the covered
settlement agreement;
``(III) a description of the claims
each party settled under the covered
settlement agreement;
``(IV) the amount each party
settling a claim under the covered
settlement agreement is obligated to
pay under the settlement agreement;
``(V) the total amount the settling
parties are obligated to pay under the
settlement agreement; and
``(VI) for each settling party--
``(aa) the amount, if any,
the settling party is obligated
to pay that is expressly
specified under the covered
settlement agreement as a civil
or criminal penalty or fine;
and
``(bb) the amount, if any,
that is expressly specified
under the covered settlement
agreement as not tax
deductible; and
``(ii) a copy of each covered settlement
agreement entered into by the Executive agency.
``(B) Confidentiality provisions.--The requirement
to disclose information or a copy of a covered
settlement agreement under subparagraph (A) shall apply
to the extent that the information or copy (or portion
thereof) is not subject to a confidentiality provision
that prohibits disclosure of the information or copy
(or portion thereof).
``(2) Period.--The head of each Executive agency shall
ensure that--
``(A) information regarding a covered settlement
agreement is publicly available on the list described
in paragraph (1)(A)(i) until at least the date that is
5 years after the date of the covered settlement
agreement; and
``(B) a copy of a covered settlement agreement made
available under paragraph (1)(A)(ii) is publicly
available until--
``(i) at least the date that is 1 year
after the date of the covered settlement
agreement; or
``(ii) for a covered settlement agreement
under which a non-Federal person is required to
pay not less than $50,000,000, at least the
date that is 5 years after the date of the
covered settlement agreement.
``(c) Public Statement.--If the head of an Executive agency
determines that a confidentiality provision in a covered settlement
agreement, or the sealing of a covered settlement agreement, is
required to protect the public interest of the United States, 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 States,
which shall explain--
``(1) what interests confidentiality protects; and
``(2) 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.
``(d) 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--
``(1) specify which portion, if any, of the amount to be
paid under the covered settlement agreement by a non-Federal
person--
``(A) is expressly specified under the covered
settlement agreement as a civil or criminal penalty or
fine to be paid for a violation of Federal law; or
``(B) is expressly specified under the covered
settlement agreement as not deductible for purposes of
the Internal Revenue Code of 1986;
``(2) 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 fine, include a statement
specifying that is the case; and
``(3) describe in detail--
``(A) 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
government; and
``(B) any payments or compensation the non-Federal
person shall make to other non-Federal persons under
the covered settlement agreement.
``(e) Confidentiality.--The requirement to disclose information
under subsection (d) shall apply to the extent that the information to
be disclosed (or portion thereof) is not subject to a confidentiality
provision that prohibits disclosure of the information (or portion
thereof).
``(f) Reporting.--
``(1) In general.--Not later than January 15 of each year,
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--
``(A) how many covered settlement agreements the
Executive agency entered into during that fiscal year;
``(B) 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 confidential; and
``(C) 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 confidential.
``(2) Availability of reports.--The head of an Executive
agency that is required to submit a report under paragraph (1)
shall make the report publically available in a searchable
format in a prominent location on the Web site of the Executive
agency.''.
(2) 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:
``307. Information regarding settlement agreements.''.
(b) Securities Reporting.--
(1) In general.--Each issuer of securities that is required
to file annual or other periodic reports with the Commission
under section 13 or 15(d) of the Securities Exchange Act of
1934 (15 U.S.C. 78m, 78o(d)) shall describe in such a report
any claim filed for a deduction under the Internal Revenue Code
of 1986 during the reporting period that relates to a payment
required under a covered settlement agreement.
(2) Definitions.--As used in this subsection--
(A) the term ``Commission'' means the Securities
and Exchange Commission;
(B) the term ``covered settlement agreement'' has
the meaning given that term in section 307 of title 5,
United States Code, as added by subsection (a); and
(C) the term ``issuer'' has the same meaning as in
section 3 of the Securities Exchange Act of 1934 (15
U.S.C. 78c).
(c) Review of Confidentiality of Settlement Agreements.--Not later
than 6 months after the date of enactment of this Act, the Comptroller
General of the United States shall submit to Congress a report
regarding how Executive agencies (as defined under section 105 of title
5, United States Code) determine whether the terms of a settlement
agreement or the existence of a settlement agreement will be treated as
confidential, which shall include recommendations, if any, for
legislative or administrative action to increase the transparency of
Government settlements while continuing to protect the legitimate
interests that confidentiality provisions serve.
Calendar No. 566
113th CONGRESS
2d Session
S. 1898
_______________________________________________________________________
A BILL
To require adequate information regarding the tax treatment of payments
under settlement agreements entered into by Federal agencies, and for
other purposes.
_______________________________________________________________________
September 16, 2014
Reported with an amendment