Truth in Settlements Act of 2014 - Sets forth new requirements for the public disclosure of any covered settlement agreement entered into by a federal executive agency. Defines "covered settlement agreement" as a settlement agreement (including a consent decree) that: (1) is entered into by an executive agency, (2) relates to an alleged violation of federal civil or criminal law, and (3) requires the payment of not less than $1 million by one or more non-federal persons (entities not within the federal government).
Requires the head of each executive agency to make publicly available on the agency website a list of each covered settlement agreement entered into by the agency, which shall include: (1) the names of the parties to the settlement agreement and the date of such agreement; (2) a description of the claims that were settled under the agreement; (3) the amount each party to the agreement is obligated to pay under the terms of the agreement and the total amounts required to be paid; and (4) for each settling party, the amount the settling party is obligated to pay that has been designated as a civil penalty or fine. Requires: (1) such information to remain publicly available for five years after the date of the agreement, and (2) a copy of a covered settlement agreement to remain publicly available until at least one year after the date of the agreement, or until five years after such date for an agreement under which a non-federal person is required to pay not less than $50 million.
Limits the disclosure of provisions of a covered settlement agreement that are subject to a confidentiality agreement.
Requires the issuer of securities subject to reporting requirements under the Securities Exchange Act of 1934 to describe in required reports any claim of a tax deduction relating to a payment under a covered settlement agreement.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4324 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 4324
To require adequate information regarding the tax treatment of payments
under settlement agreements entered into by Federal agencies, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 27, 2014
Mr. Cartwright (for himself, Mr. Nugent, Ms. Lofgren, Mr. Cole, Mrs.
Lummis, and Mr. Enyart) introduced the following bill; which was
referred to the Committee on Oversight and Government Reform, and in
addition to the Committee on Financial Services, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
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,
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, 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
``(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 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; and
``(2) describe in detail any actions the non-Federal person
shall take under the covered settlement agreement--
``(A) in lieu of payment to the Federal Government
or a State or local government; or
``(B) in addition to such a payment.
``(e) 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.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Oversight and Government Reform, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Oversight and Government Reform, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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