The publication is reproduced in full below:
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:
``(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 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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SOURCE: Congressional Record Vol. 167, No. 3
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