SECTION 1. SHORT TITLE.

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

SEC. 2. DEFINITIONS.

    In this Act--
            (1) the term ``agency'' has the meaning given the term in 
        Executive Order 13467 (73 Fed. Reg. 38103);
            (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. 3. 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. 4. 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.

            Passed the Senate December 15, 2014.

            Attest:

                                                             Secretary.
113th CONGRESS

  2d Session

                                S. 1744

_______________________________________________________________________

                                 AN ACT

To strengthen the accountability of individuals involved in misconduct 
    affecting the integrity of background investigations, to update 
      guidelines for position designation, and for other purposes.
Security Clearance Accountability, Reform, and Enhancement Act - (Sec. 3) Deems a federal agency employee to be unfit for federal employment if the agency determines that such employee has engaged in misconduct affecting the integrity of a background investigation, including falsification of any information relating to such an investigation (covered misconduct). 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.  Extends such sanctions to employees performing background investigations under a contract between an agency and a prime contractor and subcontractors (covered contract). 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.  Requires the President to report to specified congressional committees 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. 4) Requires the President to: (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.
Security Clearance Accountability, Reform, and Enhancement Act