SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Security Clearance Accountability, 
Reform, and Enhancement Act of 2015''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
  TITLE I--SECURITY CLEARANCE ACCOUNTABILITY, REFORM, AND ENHANCEMENT

Sec. 101. Definitions.
Sec. 102. Accountability of individuals involved in misconduct 
                            affecting the integrity of agency 
                            background investigations.
Sec. 103. Review and update of position designation guidance.
      TITLE II--PREVENTING CONFLICTS OF INTEREST WITH CONTRACTORS

Sec. 201. Definitions.
Sec. 202. Limitation on contracting to prevent organizational conflicts 
                            of interest.

  TITLE I--SECURITY CLEARANCE ACCOUNTABILITY, REFORM, AND ENHANCEMENT

SEC. 101. DEFINITIONS.

    In this title--
            (1) the term ``agency'' has the meaning given the term in 
        Executive Order 13467 (73 Fed. Reg. 38103), or any successor 
        thereto;
            (2) the term ``appropriate agency'' means--
                    (A) in the case of a prime contractor for a covered 
                contract, the agency with which the prime contractor 
                entered the covered contract; or
                    (B) in the case of a subcontractor for a covered 
                contract, any agency on whose behalf the subcontractor 
                is performing work under the covered contract;
            (3) the term ``appropriate congressional committees'' 
        means--
                    (A) the Committee on Homeland Security and 
                Governmental Affairs and the Select Committee on 
                Intelligence of the Senate; and
                    (B) the Committee on Oversight and Government 
                Reform and the Permanent Select Committee on 
                Intelligence of the House of Representatives;
            (4) the term ``background investigation'' means any 
        investigation required for the purpose of determining the--
                    (A) eligibility of a covered individual for logical 
                and physical access to federally controlled facilities 
                or information systems;
                    (B) suitability or fitness of a covered individual 
                for Federal employment;
                    (C) eligibility of a covered individual for access 
                to classified information or to hold a national 
                security sensitive position; or
                    (D) fitness of a covered individual to perform work 
                for or on behalf of the United States Government as a 
                contractor employee;
            (5) the term ``covered contract'' means a contract to 
        conduct background investigations--
                    (A) between an agency and a prime contractor;
                    (B) between a prime contractor and a subcontractor, 
                if the prime contractor has a contract with an agency; 
                or
                    (C) between subcontractors, if one of the 
                subcontractors has a contract with a prime contractor 
                that has a contract with an agency;
            (6) the term ``covered individual'' means an individual 
        who--
                    (A) performs work for or on behalf of an agency; or
                    (B) seeks to perform work for or on behalf of an 
                agency;
            (7) the term ``covered misconduct'' means misconduct 
        affecting the integrity of a background investigation conducted 
        by or for an agency with investigative authority to conduct 
        background investigations, including--
                    (A) falsification of any information relating to a 
                background investigation; or
                    (B) other serious misconduct that compromises the 
                integrity of a background investigation;
            (8) the term ``prime contractor'' means an individual who 
        enters into a contract with an agency; and
            (9) the term ``subcontractor'' means an individual who has 
        contracted with a prime contractor or with another 
        subcontractor to perform a contract on behalf of an agency.

SEC. 102. ACCOUNTABILITY OF INDIVIDUALS INVOLVED IN MISCONDUCT 
              AFFECTING THE INTEGRITY OF AGENCY BACKGROUND 
              INVESTIGATIONS.

    (a) Misconduct by Federal Employees.--
            (1) Unfit for federal employment.--If an agency determines 
        that an employee of the agency has engaged in covered 
        misconduct, the employee shall be found unfit for Federal 
        employment.
            (2) Fitness determinations.--An agency shall make a 
        determination under paragraph (1) in accordance with any 
        statutory, regulatory, or internal agency procedures applicable 
        to investigating alleged misconduct by employees of the agency.
            (3) Prohibition on reemployment to conduct background 
        investigations.--If an agency determines under paragraph (1) 
        that an individual is unfit for Federal employment, the 
        individual shall not be appointed to or continue to occupy a 
        position, as an employee of any agency, that requires its 
        occupant to perform background investigations.
    (b) Misconduct by Employees Under Contract.--
            (1) Ineligibility for performance of work under a covered 
        contract.--If an appropriate agency, prime contractor, or 
        subcontractor determines that an individual performing work 
        under a covered contract has engaged in covered misconduct, the 
        individual shall be ineligible to perform background 
        investigations under a covered contract.
            (2) Mandatory disclosure.--A covered contract shall include 
        a provision requiring a prime contractor or subcontractor to 
        disclose to each appropriate agency any allegation of covered 
        misconduct by an employee of the prime contractor or 
        subcontractor not later than 24 hours after the prime 
        contractor or subcontractor discovers the alleged covered 
        misconduct.
            (3) Investigation of covered misconduct.--
                    (A) Contractor investigation.--A covered contract 
                shall include a provision requiring that, not later 
                than 5 business days after the date on which a prime 
                contractor or subcontractor discloses an allegation 
                under paragraph (2), the prime contractor or 
                subcontractor shall refer the allegation of covered 
                misconduct to the agency for investigation.
                    (B) Agency investigation.--Nothing in subparagraph 
                (A) shall be construed to prohibit an appropriate 
                agency from conducting its own investigation into an 
                allegation of covered misconduct.
            (4) Prohibition on reemployment to conduct background 
        investigations.--If an appropriate agency determines, based on 
        an investigation conducted under paragraph (3), that an 
        individual is ineligible to perform work under a covered 
        contract under paragraph (1), the individual shall be 
        prohibited from performing background investigations under any 
        covered contract.
            (5) Modification of existing contracts.--Not later than 30 
        days after the date of enactment of this Act, any covered 
        contract that is in effect and was entered into before the date 
        of enactment of this Act shall be modified to include the 
        provisions required under paragraphs (2) and (3).
    (c) Reporting.--Not later than 1 year after the date of enactment 
of this Act, and annually thereafter, the President shall submit to the 
appropriate congressional committees a report providing--
            (1) the number of individuals determined to be--
                    (A) unfit for Federal employment under subsection 
                (a); or
                    (B) ineligible to perform work under a covered 
                contract under subsection (b); and
            (2) details of the covered misconduct that resulted in each 
        determination described in paragraph (1).

SEC. 103. REVIEW AND UPDATE OF POSITION DESIGNATION GUIDANCE.

    (a) Guidelines.--
            (1) Initial review and update of guidance.--Not later than 
        180 days after the date of enactment of this Act, the President 
        shall review and, if appropriate, update the guidance the 
        President issues to assist agencies in determining--
                    (A) position sensitivity designation; and
                    (B) the appropriate background investigation to 
                initiate for each position designation.
            (2) Reviews and revisions of position designations.--Not 
        less frequently than every 5 years, the President, acting 
        through relevant agencies (as determined by the President) and 
        in accordance with the guidance described in paragraph (1), 
        shall review and, if necessary, revise the position designation 
        of positions within agencies.
    (b) Reports to Congress.--Not later than 30 days after completing a 
review under subsection (a)(2), the President shall submit to the 
appropriate congressional committees a report on--
            (1) any issues identified in the review; and
            (2) the number of position designations revised as a result 
        of the review.
    (c) No Change in Authority.--Nothing in this section limits or 
expands the authority of any agency to designate a position as 
sensitive or as requiring its occupant to have access to classified 
information.

      TITLE II--PREVENTING CONFLICTS OF INTEREST WITH CONTRACTORS

SEC. 201. DEFINITIONS.

    In this title--
            (1) the term ``agency'' means--
                    (A) an Executive agency (as defined in section 105 
                of title 5, United States Code);
                    (B) a military department (as defined in section 
                102 of title 5, United States Code);
                    (C) an element of the intelligence community (as 
                that term is defined in section 3 of the National 
                Security Act of 1947 (50 U.S.C. 3003));
                    (D) the United States Postal Service; and
                    (E) the Postal Regulatory Commission;
            (2) the term ``background investigation fieldwork 
        services'' means the investigatory fieldwork conducted to 
        determine the eligibility of an individual for logical and 
        physical access to federally controlled facilities or 
        information systems, suitability or fitness for Federal 
        employment, eligibility for access to classified information or 
        to hold a national security sensitive position, or fitness to 
        perform work for or on behalf of the Federal Government as a 
        contractor or employee, including--
                    (A) interviews of the individual, the employer of 
                the individual, former employers of the individual, and 
                friends, family, and other sources who might have 
                relevant knowledge of the individual; and
                    (B) reviews of--
                            (i) educational and employment records;
                            (ii) criminal and other legal records; and
                            (iii) credit history;
            (3) the term ``background investigation support services'' 
        means the clerical, administrative, and technical support 
        services provided to various functions critical to the 
        background investigation process, including--
                    (A) initial processing and scheduling of 
                investigative requests;
                    (B) information technology and information 
                technology support;
                    (C) file maintenance;
                    (D) imaging or copying of investigation documents; 
                and
                    (E) mail processing; and
            (4) the term ``quality review process'' means performing 
        the final quality review of a background investigation to 
        ensure investigative, administrative, and other required 
        standards have been met before the completed background 
        investigation is delivered to the adjudicating agency.

SEC. 202. LIMITATION ON CONTRACTING TO PREVENT ORGANIZATIONAL CONFLICTS 
              OF INTEREST.

    Notwithstanding any other provision of law, after the date of 
enactment of this Act, a contract may not be entered into, and an 
extension of or option on a contract may not be exercised, with a 
contractor to conduct a quality review process relating to background 
investigation fieldwork services or background investigation support 
services if the contractor is performing the services to be reviewed.

            Passed the Senate November 17, 2016.

            Attest:

                                                JULIE E. ADAMS,

                                                             Secretary.
. The expanded summary of the Senate reported version is repeated here.) Security Clearance Accountability, Reform, and Enhancement Act of 2015  TITLE I--SECURITY CLEARANCE ACCOUNTABILITY, REFORM, AND ENHANCEMENT (Sec. 102) This bill: (1) deems a federal agency employee to be unfit for federal employment if the agency determines that the employee has engaged in misconduct affecting the integrity of a background investigation, including falsification of any information relating to such an investigation (covered misconduct); (2) prohibits an individual who has engaged in covered misconduct from being appointed to or continuing to occupy a position that requires the performance of background investigations; (3) extends such sanctions to employees performing background investigations under a contract between an agency and a prime contractor and subcontractors (covered contract); and (4) requires a covered contract to include provisions requiring mandatory disclosure of covered misconduct within 24 hours after the contractor discovers such misconduct and referral to the agency for investigation.  The President must report annually to Congress on: (1) the number of individuals determined to be unfit for federal employment due to covered misconduct or ineligible to perform work under a covered contract, and (2) the details of such misconduct.  (Sec. 103) The President must: (1) review and update guidance to assist agencies in determining position sensitivity designation and the appropriate background investigation to initiate for each position designation; (2) review, not less frequently than every five years, and revise the position designation of positions within federal agencies; and (3) report on any issues identified and the number of position designations revised as a result of the review. TITLE II--PREVENTING CONFLICTS OF INTEREST WITH CONTRACTORS  (Sec. 202) The bill provides that a contract may not be entered into, and an extension of or option on a contract may not be exercised, with a contractor to conduct a quality review process relating to background investigation fieldwork or support services if the contractor is performing the services to be reviewed. The bill defines:   "background investigation fieldwork services" as the investigatory fieldwork conducted to determine the eligibility of an individual for logical and physical access to federally-controlled facilities or information systems, suitability or fitness for federal employment, eligibility for access to classified information or to hold a national security sensitive position, or fitness to perform work for or on behalf of the federal government as a contractor or employee, including interviews with individuals who might have relevant knowledge of the individual and reviews of educational and employment records, criminal and other legal records, and credit history; and "quality review process" as performing the final quality review of a background investigation to ensure that investigative, administrative, and other required standards have been met before the completed background investigation is delivered to the adjudicating agency (i.e., the agency that requested the background check and that has final decision-making authority).  
Security Clearance Accountability, Reform, and Enhancement Act of 2015