H.Res. 577– Rule providing for consideration of both H.R. 732– Stop Settlement Slush Funds Act of 2017 (Rep. Goodlatte – Judiciary) and H.R. 469 – Sunshine for Regulations and Regulatory Decrees and Settlements Act of 2017, as amended (Rep. Collins (GA) – Judiciary) (One hour of debate). The Rules Committee has recommended one Rule which would provide for consideration of two bills.
For H.R. 732, the Rules Committee has recommended a structured Rule that provides for one hour of general debate equally divided and controlled by the Chair and Ranking Member of the Committee on Judiciary. The Rule provides for consideration of 6 amendments, debatable for 10 minutes, equally controlled by the proponent and opponent of the amendment. The Rule allows one motion to recommit, with or without instructions, and waives all points of order against the legislation.
For H.R. 469, the Rules Committee has recommended a structured Rule that provides for one hour of general debate equally divided and controlled by the Chair and Ranking Member of the Committee on Judiciary. The Rule provides for consideration of 6 amendments, debatable for 10 minutes, equally controlled by the proponent and opponent of the amendment. The Rule allows one motion to recommit, with or without instructions, and waives all points of order against the legislation. Members are urged to VOTE NO.
H.R. 732 – Stop Settlement Slush Funds Act of 2016 (Rep. Goodlatte – Judiciary) (One hour of debate). This bill would sharply limit the ability of the Department of Justice (DOJ) and other government agencies to address unlawful conduct, provide restitution, or to adequately address illegal conduct by prohibiting settlement agreements involving the U.S. government from requiring that the defendant make payments to an organization or individual not a party to the litigation. Under existing law, settlement terms that result from federal enforcement actions can include payments to third parties to advance programs that assist with recovery, benefits, and relief for communities harmed by lawbreakers, to the extent such payments further the objectives of the enforcement action.
Contrary to assertions by House Republicans that H.R. 732 is necessary to ensure that agencies do not use settlement agreements to fund political or activists groups, there are already laws in place to prevent civil enforcement agencies from directing funds to politically-favored groups. As a matter of public policy, H.R. 732 will, if enacted, hamper the federal government’s ability to punish companies and organizations that engage in unlawful conduct, such as financial firms that engaged in mortgage fraud that contributed to the 2008 financial crisis. Amplifying the flaws of H.R. 732 is that the legislation is so poorly and broadly written that it will severely deter agencies from pursuing settlements and invite legal challenges to proposed settlements.
The House passed identical legislation on September 7, 2016. That vote can be found here.
The Rule makes in order 6 amendments, debatable for 10 minutes, equally divided between the offeror and an opponent. The amendments are: Rep. Goodlatte Amendment. Prohibits distributions to qualifying organizations to support work that indirectly benefits the class and advances the public interest in cases in which it may be difficult to identify or find some of the class action members or it may not be economically feasible to distribute the funds to them.
Rep. Cohen Amendment. Exempts settlement agreements based on race, religion, national origin, or any other protected category.
Rep. Johnson (GA) Amendment. Exempts a settlement agreement that directs funds to remediate the indirect harms caused by the manipulation of ignition standards on automobiles.
Rep. Jackson Lee Amendment. Exempts settlement agreements that pertain to providing restitution for a State.
Rep. Cicilline Amendment. Exempts settlements in relation to the predatory or fraudulent conduct involving residential mortgage backed securities.
Rep. Conyers Amendment. Exempts settlements that direct funds to remedy the indirect harms of unlawful conduct resulting in an increase in the amount of lead in public drinking water. Bill Text for H.R. 732:
PDF Version Background for H.R. 732:
House Report (HTML Version)
House Report (PDF Version) Suspensions (3 bills) - H.R. 3972 – Family Office Technical Correction Act of 2017, as amended (Rep. Carolyn Maloney – Financial Services)
- H.R. 3898– Otto Warmbier North Korea Nuclear Sanctions Act, as amended (Rep. Barr – Financial Services)
- H.R. 3101 – Strengthening Cybersecurity Information Sharing and Coordination in Our Ports Act of 2017, as amended (Rep. Torres – Homeland Security)
Postponed Suspension (1 bill)- H.R. 2142 – INTERDICT Act, as amended (Rep. Tsongas – Homeland Security)
TOMORROW’S OUTLOOK
The GOP Leadership has announced the following schedule for Wednesday, October 25: The House will meet at 12:00 p.m. for legislative business. The House is expected to complete consideration of H.R. 469 – Sunshine for Regulations and Regulatory Decrees and Settlements Act of 2017, as amended (Rep. Collins (GA) – Judiciary). The House is also expected to consider bills listed for consideration under suspension of the Rules. |