H.R. 6622: Sunshine for Regulatory Decrees and Settlements Act of 2025

This bill, titled the Sunshine for Regulatory Decrees and Settlements Act of 2025, aims to establish specific procedures and limitations regarding consent decrees and settlement agreements that agencies enter into as a result of lawsuits. These are legal agreements that can require government agencies to take action or change regulations to resolve disputes. Below is an overview of its key provisions:

Definitions

The bill outlines specific terms, including:

• Agency: Defined according to established legal definitions related to federal regulations.
• Covered Civil Action: Refers to civil lawsuits aimed at compelling agency actions or alleging unlawful delays that affect third parties.
• Covered Consent Decree: Legal agreements arising from covered civil actions that require agency actions impacting third parties.
• Covered Settlement Agreement: Similar to a consent decree but may not necessarily arise from a civil lawsuit.

Consent Decree and Settlement Reform

Pleadings and Notifications

Agencies must publicly share notices of intent to sue and complaints online within 15 days of receiving them.

Entry of Consent Decrees and Settlement Agreements

Legal motions for entering consent decrees or dismissing lawsuits must not proceed until specified preconditions are met.

Intervention Rights

Individuals or governments claiming an interest in the agency action can move to intervene in the court proceedings, with a rebuttable presumption that their interests are not adequately represented by the current parties.

Settlement Negotiations

Settlement discussions must follow established court mediation processes, and any intervenor must be included in these negotiations.

Public Comment and Hearings

Agencies proposing consent decrees or settlement agreements must publish these for public comment at least 60 days before seeking court approval. They can also hold public hearings regarding these agreements.

Mandatory Deadlines

If a proposed consent decree requires agency action by a specific date, the agency must inform the court of relevant pending regulatory actions that are not addressed in the decree.

Government Submission Requirement

For certain proposed agreements, the Attorney General or agency head must personally certify to the court that they approve the terms of the decree.

Court Review Procedures

Courts are required to assess whether proposed agreements allow sufficient time and appropriate procedures for the agency to fulfill its legal obligations.

Annual Reporting

Each agency must report annually to Congress on civil actions and consent decrees they have been involved with, including any attorney fees awarded.

Motions to Modify Consent Decrees

A court will consider changes to consent decrees if the agency argues that the terms are no longer in the public interest due to changed circumstances or obligations.

Effective Date

The Act would apply to any civil action filed or consent decree proposed after its enactment.

Relevant Companies