What This Bill Does
This bill limits donations that government officials can require as part of settlement agreements (legal agreements that end disputes). Government officials cannot direct money to groups or individuals outside the U.S. government unless the money fixes actual harm caused by the defendant or pays for services related to the case.
Who It Affects
Government officials and agents who negotiate settlement agreements; federal agencies; the Congressional Budget Office; Inspectors General at federal agencies; Congress.
Key Provisions
- Government officials cannot enter into or enforce settlement agreements that direct payments to anyone except the United States, unless those payments fix actual harm (including environmental damage) or pay for services connected to the case (Sec. 2(a))
- Government officials who violate this rule face the same penalties as violations of federal law section 3302, title 31 (Sec. 2(b))
- Each federal agency must report annually to Congress about settlement agreements requiring payments to outside parties, including who the parties are, where the money came from, and how funds will be distributed (Sec. 2(e))
- Each federal agency's Inspector General (an official who checks for violations) must report annually to Congress about any settlement agreements that violate this law (Sec. 2(f))
What Changes
Starting when this law is enacted (becomes effective), government officials can only create settlement agreements directing money to outside parties if that money directly fixes actual harm or pays for case-related services. Agencies must now submit annual reports about these settlements to Congress.
Important Definitions
Settlement agreement means a settlement agreement that resolves a civil action (lawsuit) or potential civil action (Sec. 2(d))
Effective Date
The main rules apply only to settlement agreements entered on or after the date this Act becomes law (Sec. 2(c)). The reporting requirement begins by the end of the first fiscal year after enactment and continues annually (Sec. 2(e)(1)). The reporting requirement ends 7 years after the date of enactment (Sec. 2(e)(3)).
II
118TH CONGRESS
1ST SESSION
S. 225
To limit donations made pursuant to settlement agreements to which the
United States is a party, and for other purposes.
IN THE SENATE OF THE UNITED STATES
FEBRUARY 2, 2023
Mr. TUBERVILLE (for himself, Mr. TILLIS, Mr. COTTON, Mr. SCOTT of Flor-
ida, and Ms. LUMMIS) introduced the following bill; which was read twice
and referred to the Committee on the Judiciary
A BILL
To limit donations made pursuant to settlement agreements
to which the United States is a party, 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,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Stop Settlement Slush
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Funds Act of 2023’’.
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•S 225 IS
SEC. 2. LIMITATION ON DONATIONS MADE PURSUANT TO
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SETTLEMENT AGREEMENTS TO WHICH THE
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UNITED STATES IS A PARTY.
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(a) LIMITATION ON REQUIRED DONATIONS.—An of-
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ficial or agent of the Government may not enter into or
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enforce any settlement agreement on behalf of the United
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States directing or providing for a payment to any person
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or entity other than the United States, other than a pay-
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ment that provides restitution for or otherwise directly
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remedies actual harm (including to the environment) di-
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rectly and proximately caused by the party making the
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payment, or constitutes payment for services rendered in
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connection with the case.
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(b) PENALTY.—Any official or agent of the Govern-
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ment who violates subsection (a), shall be subject to the
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same penalties that would apply in the case of a violation
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of section 3302 of title 31, United States Code.
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(c) EFFECTIVE DATE.—Subsections (a) and (b)
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apply only in the case of a settlement agreement entered
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on or after the date of enactment of this Act.
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(d) DEFINITION.—The term ‘‘settlement agreement’’
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means a settlement agreement resolving a civil action or
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potential civil action.
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(e) REPORTS ON SETTLEMENT AGREEMENTS.—
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(1) IN GENERAL.—Not later than the end of
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the first fiscal year that begins after the date of en-
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•S 225 IS
actment of this Act, and annually thereafter, the
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head of each Federal agency shall submit electroni-
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cally to the Congressional Budget Office a report on
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each settlement agreement entered into by that
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agency during that fiscal year that directs or pro-
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vides for a payment to a person or entity other than
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the United States that is providing restitution for or
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otherwise directly remedies actual harm (including
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to the environment) directly and proximately caused
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by the party making the payment, or that con-
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stitutes payment for services rendered in connection
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with the case, which shall include the parties to each
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settlement agreement, the source of the settlement
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funds, and where and how such funds were and will
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be distributed.
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(2) PROHIBITION ON ADDITIONAL FUNDING.—
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No additional funds are authorized to be appro-
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priated to carry out this subsection.
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(3) SUNSET.—This subsection shall cease to be
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effective on the date that is 7 years after the date
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of enactment of this Act.
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(f) ANNUAL AUDIT REQUIREMENT.—
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(1) IN GENERAL.—Not later than the end of
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the first fiscal year that begins after the date of en-
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actment of this Act, and annually thereafter, the In-
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•S 225 IS
spector General of each Federal agency shall submit
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a report on any settlement agreement entered into
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in violation of this section by that agency to—
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(A) the Committee on the Judiciary, the
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Committee on the Budget, and the Committee
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on Appropriations of the Senate; and
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(B) the Committee on the Judiciary, the
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Committee on the Budget, and the Committee
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on Appropriations of the House of Representa-
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tives.
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(2) PROHIBITION ON ADDITIONAL FUNDING.—
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No additional funds are authorized to be appro-
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priated to carry out this subsection.
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Æ
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