What This Bill Does
This bill creates a public database where federal government agencies must post information about settlement agreements they enter into. A settlement agreement is a deal to resolve a lawsuit related to breaking federal law. The bill requires agencies to share details about these agreements so the public can see what the government settled and how much money was involved.
---
##
Who It Affects
- Federal government agencies (called Executive agencies) that settle lawsuits
- Members of the public who want to look up settlement information
- The Office of Management and Budget, which oversees federal agencies
---
##
Key Provisions
- Federal agencies must submit details about every settlement agreement to a searchable public database, including the type of lawsuit, when it was settled, what violations were involved, and how much money each party must pay (Sec. 2(b)(1)(A)(i))
- The database must be searchable and allow people to download information in a common format that works on any computer (Sec. 2(b)(2)(B))
- Settlement information must stay publicly available from the date of the settlement through at least 5 years after the settlement ends (Sec. 2(b)(2)(C))
- Agency leaders can keep a settlement secret only if they write a public statement explaining why secrecy protects the nation's interests and what those interests are (Sec. 2(b)(4))
- The Office of Management and Budget must create the database within one year and agencies must start submitting information within 90 days after receiving instructions (Sec. 2(c) and (d))
---
##
What Changes
The government will establish a new searchable database available to the public online. Federal agencies must now report settlement agreements they reach, including how much money was paid and what the lawsuit was about. Some settlement details can still be kept private if agencies explain in writing why keeping them secret protects American interests.
---
##
Important Definitions
- **Settlement agreement**: A deal to end a lawsuit involving a federal agency and relating to someone allegedly breaking federal law. This includes consent decrees (a court-approved settlement). (Sec. 2(a)(3))
- **Order type**: The kind of legal action or paperwork used to settle a civil or criminal lawsuit. (Sec. 2(a)(2))
- **Executive agency**: Not defined in this bill text.
- **State**: Each of the 50 states, the District of Columbia, U.S. territories and possessions, and federally recognized Indian Tribes. (Sec. 2(a)(4))
---
##
Effective Date
The law takes effect 180 days after it becomes law and applies to settlement agreements made after the law becomes law, and to existing agreements still in effect at that time, to the extent practical. (Sec. 5)
II
Calendar No. 7
118TH CONGRESS
1ST SESSION
H. R. 300
IN THE SENATE OF THE UNITED STATES
JANUARY 25, 2023
Received; read the first time
JANUARY 26, 2023
Read the second time and placed on the calendar
AN ACT
To amend chapter 3 of title 5, United States Code, to require
the publication of settlement agreements, and for other
purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Settlement Agreement
4
Information Database Act of 2023’’.
5
VerDate Sep 11 2014
23:33 Jan 26, 2023
Jkt 039200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H300.PCS
H300
kjohnson on DSK79L0C42PROD with BILLS
2
HR 300 PCS
SEC. 2. INFORMATION REGARDING SETTLEMENT AGREE-
1
MENTS ENTERED INTO BY FEDERAL AGEN-
2
CIES.
3
(a) REQUIREMENTS
FOR
SETTLEMENT
AGREE-
4
MENTS.—Chapter 3 of title 5, United States Code, is
5
amended by adding at the end the following new section:
6
‘‘§ 307. Information regarding settlement agreements
7
‘‘(a) DEFINITIONS.—In this section:
8
‘‘(1) LOCAL
GOVERNMENT.—The term ‘local
9
government’ has the meaning given that term in sec-
10
tion 6501 of title 31.
11
‘‘(2) ORDER
TYPE.—The term ‘order type’
12
means the type of action or instrument used to set-
13
tle a civil or criminal judicial action.
14
‘‘(3) SETTLEMENT
AGREEMENT.—The term
15
‘settlement agreement’ means a settlement agree-
16
ment (including a consent decree) that—
17
‘‘(A) is entered into by an Executive agen-
18
cy; and
19
‘‘(B) relates to an alleged violation of Fed-
20
eral civil or criminal law.
21
‘‘(4) STATE.—The term ‘State’ means each of
22
the several States, the District of Columbia, each
23
territory or possession of the United States, and
24
each federally recognized Indian Tribe.
25
VerDate Sep 11 2014
23:33 Jan 26, 2023
Jkt 039200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H300.PCS
H300
kjohnson on DSK79L0C42PROD with BILLS
3
HR 300 PCS
‘‘(b)
SETTLEMENT
AGREEMENT
INFORMATION
1
DATABASE.—
2
‘‘(1) EXECUTIVE AGENCY REQUIREMENT.—
3
‘‘(A) IN
GENERAL.—Subject to subpara-
4
graph (B), the head of each Executive agency
5
shall, in accordance with guidance issued pursu-
6
ant to paragraph (2), submit the following in-
7
formation to the database established under
8
paragraph (3):
9
‘‘(i) A list of each settlement agree-
10
ment, in a categorized and searchable for-
11
mat, entered into by the Executive agency,
12
as a party to a lawsuit, which shall in-
13
clude, for each settlement agreement—
14
‘‘(I) the order type of the settle-
15
ment agreement;
16
‘‘(II) the date on which the par-
17
ties entered into the settlement agree-
18
ment;
19
‘‘(III) a list of specific violations
20
that specify the basis for the action
21
taken, with a description of the claims
22
each party settled under the settle-
23
ment agreement;
24
VerDate Sep 11 2014
23:33 Jan 26, 2023
Jkt 039200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H300.PCS
H300
kjohnson on DSK79L0C42PROD with BILLS
4
HR 300 PCS
‘‘(IV) the amount of attorneys’
1
fees and other litigation costs award-
2
ed, if any, including a description of
3
the statutory basis for such an award;
4
‘‘(V) the amount each party set-
5
tling a claim under the settlement
6
agreement is obligated to pay under
7
the settlement agreement;
8
‘‘(VI) the total amount the set-
9
tling parties are obligated to pay
10
under the settlement agreement;
11
‘‘(VII) the amount, if any, the
12
settling party is obligated to pay that
13
is expressly specified under the settle-
14
ment agreement as a civil or criminal
15
penalty or fine;
16
‘‘(VIII) any payment made under
17
the settlement agreement, including a
18
description of any payment made to
19
the Federal Government;
20
‘‘(IX) the projected duration of
21
the settlement agreement, if available;
22
‘‘(X) a list of State or local gov-
23
ernments that may be directly af-
24
VerDate Sep 11 2014
23:33 Jan 26, 2023
Jkt 039200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H300.PCS
H300
kjohnson on DSK79L0C42PROD with BILLS
5
HR 300 PCS
fected by the terms of the settlement
1
agreement;
2
‘‘(XI) a brief description of any
3
economic data and methodology used
4
to justify the terms of the settlement
5
agreement;
6
‘‘(XII) any modifications to the
7
settlement agreement, when applica-
8
ble;
9
‘‘(XIII) notice and comments,
10
when applicable; and
11
‘‘(XIV) whether the settlement
12
agreement is still under judicial en-
13
forcement and any period of time by
14
which the parties agreed to have cer-
15
tain conditions met.
16
‘‘(ii) A copy of each—
17
‘‘(I) settlement agreement en-
18
tered into by the Executive agency;
19
and
20
‘‘(II) statement issued under
21
paragraph (4).
22
‘‘(B) NONDISCLOSURE.—The requirement
23
to submit information or a copy of a settlement
24
agreement under subparagraph (A) shall not
25
VerDate Sep 11 2014
23:33 Jan 26, 2023
Jkt 039200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H300.PCS
H300
kjohnson on DSK79L0C42PROD with BILLS
6
HR 300 PCS
apply to the extent the information or copy (or
1
portion thereof)—
2
‘‘(i) is subject to a confidentiality pro-
3
vision that prohibits disclosure of the infor-
4
mation or copy (or portion thereof); and
5
‘‘(ii) would not be disclosed under sec-
6
tion 552, if the Executive agency provides
7
a citation to the applicable exemption.
8
‘‘(C) CLARIFICATION
OF
RESPONSIBLE
9
AGENCY.—In a case in which an Executive
10
agency is acting at the request or on behalf of
11
another Executive agency (referred to as the
12
originating agency), the originating agency is
13
responsible for submitting information under
14
subparagraph (A).
15
‘‘(2) GUIDANCE.—The Director of the Office of
16
Management and Budget shall issue guidance for
17
Executive agencies to implement paragraph (1).
18
Such guidance shall include the following:
19
‘‘(A) Specific dates by which submissions
20
must be made, not less than twice a year.
21
‘‘(B) Data standards, including common
22
data elements and a common, nonproprietary,
23
searchable, machine-readable, platform inde-
24
pendent format.
25
VerDate Sep 11 2014
23:33 Jan 26, 2023
Jkt 039200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H300.PCS
H300
kjohnson on DSK79L0C42PROD with BILLS
7
HR 300 PCS
‘‘(C) A requirement that the information
1
and documents required under paragraph (1)
2
are publicly available for a period starting on
3
the date of the settlement through not less than
4
5 years after the termination of the settlement
5
agreement.
6
‘‘(3) ESTABLISHMENT OF DATABASE.—The Di-
7
rector of the Office of Management and Budget, or
8
the head of an Executive agency designated by the
9
Director, shall establish and maintain a public,
10
searchable, downloadable database for Executive
11
agencies to directly upload and submit the informa-
12
tion and documents required under paragraph (1)
13
for immediate publication online.
14
‘‘(4) STATEMENT
OF
CONFIDENTIALITY.—If
15
the head of an Executive agency determines that a
16
confidentiality provision in a settlement agreement,
17
or the sealing of a settlement agreement, is required
18
to protect the public interest of the United States,
19
the head of the Executive agency may except the
20
settlement agreement from the requirement in para-
21
graph (1) and shall issue a written public statement
22
stating why such action is required to protect the
23
public interest of the United States, which shall ex-
24
plain—
25
VerDate Sep 11 2014
23:33 Jan 26, 2023
Jkt 039200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H300.PCS
H300
kjohnson on DSK79L0C42PROD with BILLS
8
HR 300 PCS
‘‘(A) what interests confidentiality pro-
1
tects; and
2
‘‘(B) why the interests protected by con-
3
fidentiality outweigh the public’s interest in
4
knowing about the conduct of the Federal Gov-
5
ernment and the expenditure of Federal re-
6
sources.’’.
7
(b) TECHNICAL AND CONFORMING AMENDMENT.—
8
The table of sections for chapter 3 of title 5, United States
9
Code, is amended by adding at the end the following new
10
item:
11
‘‘307. Information regarding settlement agreements.’’.
(c) DEADLINE TO ESTABLISH DATABASE.—Not later
12
than 1 year after the date of the enactment of this Act,
13
the Director of the Office of Management and Budget
14
shall issue guidance required by section 307(b)(2) of title
15
5, United States Code, as added by subsection (a), and
16
establish the settlement agreement information database
17
required by section 307(b)(3) of title 5, United States
18
Code, as added by subsection (a).
19
(d) DEADLINE FOR FIRST SUBMISSION.—Not later
20
than 90 days after the Director issues guidance under sec-
21
tion 307(b)(2) of title 5, United States Code, as added
22
by subsection (a), the head of each Executive agency (as
23
defined in section 105 of title 5, United States Code) shall
24
VerDate Sep 11 2014
23:33 Jan 26, 2023
Jkt 039200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H300.PCS
H300
kjohnson on DSK79L0C42PROD with BILLS
9
HR 300 PCS
begin submitting information to the database established
1
under such section 307.
2
SEC. 3. AMENDMENTS TO THE FREEDOM OF INFORMATION
3
ACT.
4
Section 552(a)(2) of title 5, United States Code, is
5
amended—
6
(1)
by
redesignating
subparagraphs
(B)
7
through (E) as subparagraphs (C) through (F), re-
8
spectively; and
9
(2) by inserting after subparagraph (A) the fol-
10
lowing new subparagraph:
11
‘‘(B) each settlement agreement (as defined in
12
section 307) entered into by an Executive agency,
13
with redactions for information that the agency may
14
withhold under paragraph (8) and subsections (b)
15
and (c) of this section;’’.
16
SEC. 4. RULE OF CONSTRUCTION.
17
Nothing in this Act, or the amendments made by this
18
Act, shall be construed to require the disclosure of infor-
19
mation or records that any agency may properly withhold
20
from public disclosure under section 552 of title 5, United
21
States Code (commonly known as the ‘‘Freedom of Infor-
22
mation Act’’).
23
VerDate Sep 11 2014
23:33 Jan 26, 2023
Jkt 039200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H300.PCS
H300
kjohnson on DSK79L0C42PROD with BILLS
10
HR 300 PCS
SEC. 5. EFFECTIVE DATE; APPLICABILITY.
1
This Act shall be effective 180 days after the date
2
of the enactment of this Act and shall apply—
3
(1) with respect to any settlement agreement
4
(as such term is defined in section 307 of title 5,
5
United States Code, as added by section 2), entered
6
into on or after the date of the enactment of this
7
Act; and
8
(2) to the extent practicable, any such settle-
9
ment agreement (as such term is defined in section
10
307 of title 5, United States Code, as added by sec-
11
tion 2) that remains in effect on or after the date
12
of the enactment of this Act.
13
Passed the House of Representatives January 24,
2023.
Attest:
CHERYL L. JOHNSON,
Clerk.
VerDate Sep 11 2014
23:33 Jan 26, 2023
Jkt 039200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H300.PCS
H300
kjohnson on DSK79L0C42PROD with BILLS
VerDate Sep 11 2014
23:33 Jan 26, 2023
Jkt 039200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H300.PCS
H300
kjohnson on DSK79L0C42PROD with BILLS
Calendar No. 7
118TH CONGRESS
1ST SESSION
H. R. 300
AN ACT
To amend chapter 3 of title 5, United States Code,
to require the publication of settlement agree-
ments, and for other purposes.
JANUARY 26, 2023
Read the second time and placed on the calendar
VerDate Sep 11 2014
23:33 Jan 26, 2023
Jkt 039200
PO 00000
Frm 00012
Fmt 6651
Sfmt 6651
E:\BILLS\H300.PCS
H300
kjohnson on DSK79L0C42PROD with BILLS