Mr. Speaker, I thank the ranking member of the full committee and the manager of this presentation on the floor for dealing with H.R. 788. Mr. Speaker, I rise to save lives. This baffles me when good…
Mr. Speaker, I thank the ranking member of the full committee and the manager of this presentation on the floor for dealing with H.R. 788.
Mr. Speaker, I rise to save lives. This baffles me when good work is being done and has been done over the years. No one has complained about misconduct of the recipients of the settlement funds helping people who have been impacted negatively, sometimes with irreparable harm. They are assisted by a number of organizations making a difference.
Rather, we want to go forward with the corporate unaccountability act, making this an unreasonable attempt and unconstitutional attempt by Members on the other side to stop protecting victims and protect wrongdoers, which is a continuation of the dangerous behavior that has brought about this settlement.
What do Americans look to their Federal Government for? They look to the government to be their rock, their anchor in times of natural disasters, man-made and otherwise. They look to their government in times of war and peace for us to defend this Nation. They certainly look to make sure that in the normal comings and goings of their work with their families, their communities, that someone is looking out for them. That is what the settlement opportunities give to our various agencies.
This would allow the continued work, rather than the taking away of these dollars from legitimate groups that are helping to make life better. This weakens the Federal Government's ability to settle these issues. It takes away the idea of legal aid and legal aid organizations being able to help individuals without access to legal assistance. It helps develop community banking, financial institutions. It gives housing opportunities to those who have been taken advantage of.
We know that we are in a condition of toxic air and toxic contamination in our neighborhoods, and what does the ability to settle the disaster that has been created do? It tells those offenders this is how they make the community whole. This is how they save lives.
I know it well in Fifth Ward, Texas, and the surrounding areas. For a long time, a corporate offender contaminated the soil. They were growing plants and flowers, so whole neighborhoods had an epidemic of cancer. There were whole generations that lived around this particular toxic site, but it was only the Federal Government--the EPA, in particular--under the Biden administration that came in and got a handle on this and insisted that the health needs of these individuals, the cleanup needs of these individuals, was going to be taken care of.
Mr. Speaker, I thank the gentleman from New York, the ranking member, for yielding additional time.
This is not that s-word. I don't even want to say it because it means that it is something wrong. This is a good settlement opportunity that will help the public in fighting against bad actors. It will work on improving the criminal justice system, bankruptcies, the environment, civil rights laws, the Fair Housing Act, and the Servicemembers Civil Relief Act.
This is a pathway to disaster. That is what H.R. 788 is. Don't be fooled, Mr. Speaker. What we want to do is help the American people and eliminate H.R. 788, which is going to take away the tools to be able to help them.
Mr. Speaker, I started out by saying we want to save lives, and that is what we want to continue to do in these dastardly conditions that have happened all over the Nation. We want the Federal Government to be standing next to Americans and to be able to help them.
Mr. Speaker, I include in the Record a letter from several organizations that oppose H.R. 788.
January 8, 2024.
Re Oppose H.R. 788--The Prevention of Community Restoration
Act.
Dear Representative: We urge you to oppose H.R. 788, the
so-called ``Stop Settlement Slush Funds Act of 2023''. The
bill prohibits settlement agreements where the United States
is a party from including certain ``donations'' to non-
federal actors, primarily non-profits, educational, and
community-based organizations.
Under existing laws, settlements 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.
H.R. 788 would cut off any payments to third parties other
than individualized restitution and other forms of direct
payment for ``actual harm.'' That restriction would handcuff
federal enforcement officials by limiting the ability of
federal enforcement officials to negotiate real relief for
harms caused to the public by illegal conduct that is the
subject of federal enforcement actions.
This bill would be a gift to lawbreakers at the expense of
families and communities suffering from injuries that cannot
be addressed by direct restitution because the bill would
prevent federal agencies from negotiating forms of relief
that would address injuries to the public that may be either
non-quantifiable or indeterminate. These forms of relief are
crucial when harm is difficult to monetize, such as damage to
the environment, the collateral consequences to communities
resulting from predatory lending by financial institutions,
or unknown health outcomes to individuals resulting from
chemical exposures in the workplace.
Under current law, the legitimacy and utility of federal
enforcement settlements that include payments to third
parties is clear, as long as such payments bear a nexus to
the prosecutorial objectives of the agency. This bill would
supplant the wisdom of officials at DOJ and federal agencies
to craft appropriate remedies.
This bill is also just another example of Congressional
overreach into executive branch decision-making. Not only
does it disregard the needs of future Administrations, but
the bill is sloppily crafted, failing to provide even a basic
definition of the ``donations'' or payments in question.
Further, the bill assumes that the government is always
going to be the party seeking to enforce the law, but this is
a fallacy. Laws are often enforced against the government,
and the government sometimes pays restitution to litigants.
There is a role for third parties to ensure that settlements
involving the government are followed and enforced.
Third parties that receive third-party payments include
nonprofits, community organizations, or trusts or foundations
that provide vital services in their communities. Members of
Congress should applaud the good work of these organizations
that serve the public good rather than vilify them.
We urge you to oppose H.R. 788.
Sincerely,
Yosef Robele & Brielle Green, Earthjustice, American
Association of Justice, American Federation of State, County
and Municipal Employees (AFSCME), American Federation of
Teachers, Center for Biological Diversity, Center for Justice
& Democracy, Center for Progressive Reform, Clean Water
Action, Earthjustice, Environmental Defense Fund,
Environmental Law & Policy Center, Environmental Working
Group, Government Information Watch, Impact Fund, League of
Conservation Voters, National Association of Consumer
Advocates, National Consumers League, NRDC, Nuclear
Information and Resource Service, Public Justice, Union of
Concerned Scientists, Waterkeeper Alliance.
Mr. Speaker, I urge my colleagues to vote against H.R. 788. Don't take that tool away. Help the American people.
Mr. Speaker, I rise today in strong opposition to H.R. 788, the Stop Settlement Slush Funds Act of 2023.
This bill would undermine our ability to hold corporate wrongdoers accountable for unlawful conduct.
H.R. 788, which otherwise could be called the ``Corporate Unaccountability Act,'' is another unconscionable attempt by some extreme members on the other side of the aisle to protect corporate wrongdoers at the expense of their victims and a continuation of this majority's dangerous quest to prevent federal agencies from enforcing key protections.
H.R. 788 is yet another in a series of harmful bills that pose a direct threat to a broad range of critical protections Americans rely on in their daily lives by making it harder for federal agencies to implement, execute and enforce the laws passed by Congress.
These bills are part of the extreme MAGA Republican agenda, which seeks to render the federal government ineffective by any means necessary.
First, they proposed defunding and abolishing agencies that do not suit their radical views.
Then, they broadened their scope and put forward their Default on America Act, and later their extreme CR, which would have massively underfunded the federal government, hurting its ability to address our nation's most important priorities.
This week, the sabotage continues with legislation that puts corporate interests over communities by making it harder for agencies to hold corporations accountable for unlawful conduct and depriving victims of meaningful relief.
H.R. 788 would prohibit federal agencies from entering or enforcing legal settlement agreements that include payments to third parties in cases of corporate misconduct.
These third-party payments are important when the conduct at issue results in generalized harm, such as violations of public health, environmental or consumer protections.
Recipients are often nonprofit, educational and community-based organizations.
For example, the Department of Justice has reached settlement agreements in connection with the mortgage lending practices of major banks that required payments to legal aid organizations, community development financial institutions and housing counseling groups.
Eliminating this practice, as H.R. 788 threatens to do, would materially weaken the federal government's ability to hold bad actors accountable for their unlawful conduct in a way that effectively addresses the societal injuries they have caused.
This extreme and misguided legislation has earned opposition from both the Biden Administration and a broad coalition of groups, has zero Democratic cosponsors and only advanced out of the House Judiciary Committee by a party-line vote.
According to President Biden's Statement of Administration Policy, H.R. 788 is unnecessary and ``would have adverse effects on the Federal government's ability to enforce key laws protecting the public, including criminal, bankruptcy, environmental and civil rights laws such as the Fair Housing Act and the Servicemembers' Civil Relief Act.''
It should also be noted that the following groups who have come out in opposition of this irresponsible and dangerous bill:
American Association for Justice; American Federation of State, County and Municipal Employees; American Federation of Teachers; Center for Biological Diversity; Center for Justice & Democracy; Center for Progressive Reform; Clean Water Action; Coalition for Sensible Safeguards; Earthjustice; Environmental Defense Fund; Environmental Law & Policy Center; Environmental Working Group; Government Information Watch; Impact Fund; League of Conservation Voters; National Association of Consumer Advocates; National Consumers League; NRDC; Nuclear Information and Resource Service; Public Justice; Union of Concerned Scientists; and Waterkeeper Alliance.
Let me also highlight the fact that the Administration strongly opposes the House passage of H.R. 788, the Stop Settlement Slush Funds Act of 2023, because the legislation is unnecessary and would harm the public interest.
H.R. 788 would prohibit the Federal government from entering into settlement agreements that include payments directed to appropriate parties.
This legislation seeks to address a problem that does not exist--the Federal government does not create or use ``slush funds.''
When the Federal government settles a case with those who violate the law, it seeks to hold bad actors accountable, to appropriately remedy the harm they have caused, and to prevent the recurrence of those harms.
H.R. 788 would have adverse effects on the Federal government's ability to enforce key laws protecting the public, including criminal, bankruptcy, environmental, and civil rights laws such as the Fair Housing Act and the Servicemembers' Civil Relief Act.
This bill would needlessly prohibit a widely respected and effective enforcement tool.
Specifically, it would block many agencies from including certain terms providing for payment to third parties in settlement agreements to which the United States is a party.
In the past, agencies have sometimes opted to work with entities that have violated regulatory requirements to agree to alternative forms of remediation.
These efforts have resulted in settlement agreements that include payments by those entities to third parties to advance programs that assist with recovery, benefits, or relief for communities harmed by the wrongdoing addressed in the enforcement action.
In this way, H.R. 788 would thwart federal enforcement officials' ability to negotiate appropriate relief for harm caused to the public by parties that are the subject of the enforcement action.
The criticisms of third-party settlements are misplaced: they do not unduly undermine congressional appropriation power, and they must satisfy basic requirements to be used.
The Congressional Research Service has found settlement payments to non-federal actors are permissible remedies to the extent they bear a nexus to the prosecutorial objectives of the agency.
Moreover, developing guidelines on appropriate scope, purpose, and use of third-party payments appropriately lie with the executing agency, which has the benefit of expertise and experience.
In sum, this bill is counterproductive and would undermine law enforcement goals by reducing the availability of effective remedies to address injuries to individuals and communities caused by illegal conduct. We therefore urge you to oppose H.R. 788, the Stop Settlement Slush Funds Act of 2023.