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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Security Clearance Ac3 countability, Reform, and Enhancement Act’’. 

4 SEC. 2. DEFINITIONS. 

5 In this Act— 

6 (1) the term ‘‘agency’’ has the meaning given 

7 the term in Executive Order 13467 (73 Fed. Reg. 

8 38103); 

9 (2) the term ‘‘appropriate agency’’ means— 

10 (A) in the case of a prime contractor for 

11 a covered contract, the agency with which the 

12 prime contractor entered the covered contract; 

13 or 

14 (B) in the case of a subcontractor for a 

15 covered contract, any agency on whose behalf 

16 the subcontractor is performing work under the 

17 covered contract; 

18 (3) the term ‘‘appropriate congressional com19 mittees’’ means— 

20 (A) the Committee on Homeland Security 

21 and Governmental Affairs and the Select Com22 mittee on Intelligence of the Senate; and 

23 (B) the Committee on Oversight and Gov24 ernment Reform and the Permanent Select 

25 Committee on Intelligence of the House of Rep26 resentatives; 
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1 (4) the term ‘‘background investigation’’ means 

2 any investigation required for the purpose of deter3 mining the— 

4 (A) eligibility of a covered individual for 

5 logical and physical access to federally con6 trolled facilities or information systems; 

7 (B) suitability or fitness of a covered indi8 vidual for Federal employment; 

9 (C) eligibility of a covered individual for 

10 access to classified information or to hold a na11 tional security sensitive position; or 

12 (D) fitness of a covered individual to per13 form work for or on behalf of the United States 

14 Government as a contractor employee; 

15 (5) the term ‘‘covered contract’’ means a con16 tract to conduct background investigations— 

17 (A) between an agency and a prime con18 tractor; 

19 (B) between a prime contractor and a sub20 contractor, if the prime contractor has a con21 tract with an agency; or 

22 (C) between subcontractors, if one of the 

23 subcontractors has a contract with a prime con24 tractor that has a contract with an agency; 
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1 (6) the term ‘‘covered individual’’ means an in2 dividual who— 

3 (A) performs work for or on behalf of an 

4 agency; or 

5 (B) seeks to perform work for or on behalf 

6 of an agency; 

7 (7) the term ‘‘covered misconduct’’ means mis8 conduct affecting the integrity of a background in9 vestigation conducted by or for an agency with in10 vestigative authority to conduct background inves11 tigations, including— 

12 (A) falsification of any information relat13 ing to a background investigation; or 

14 (B) other serious misconduct that com15 promises the integrity of a background inves16 tigation; 

17 (8) the term ‘‘prime contractor’’ means an indi18 vidual who enters into a contract with an agency; 

19 and 

20 (9) the term ‘‘subcontractor’’ means an indi21 vidual who has contracted with a prime contractor 

22 or with another subcontractor to perform a contract 

23 on behalf of an agency. 
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1 SEC. 3. ACCOUNTABILITY OF INDIVIDUALS INVOLVED IN 

2 MISCONDUCT AFFECTING THE INTEGRITY OF 

3 AGENCY BACKGROUND INVESTIGATIONS. 

4 (a) MISCONDUCT BY FEDERAL EMPLOYEES.— 

5 (1) UNFIT FOR FEDERAL EMPLOYMENT.—If an 

6 agency determines that an employee of the agency 

7 has engaged in covered misconduct, the employee 

8 shall be found unfit for Federal employment. 

9 (2) FITNESS DETERMINATIONS.—An agency 

10 shall make a determination under paragraph (1) in 

11 accordance with any statutory, regulatory, or inter12 nal agency procedures applicable to investigating al13 leged misconduct by employees of the agency. 

14 (3) PROHIBITION ON REEMPLOYMENT TO CON15 DUCT BACKGROUND INVESTIGATIONS.—If an agency 

16 determines under paragraph (1) that an individual is 

17 unfit for Federal employment, the individual shall 

18 not be appointed to or continue to occupy a position, 

19 as an employee of any agency, that requires its occu20 pant to perform background investigations. 

21 (b) MISCONDUCT BY EMPLOYEES UNDER CON22 TRACT.— 

23 (1) INELIGIBILITY FOR PERFORMANCE OF

24 WORK UNDER A COVERED CONTRACT.—If an appro25 priate agency, prime contractor, or subcontractor de26 termines that an individual performing work under 
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1 a covered contract has engaged in covered mis2 conduct, the individual shall be ineligible to perform 

3 background investigations under a covered contract. 

4 (2) MANDATORY DISCLOSURE.—A covered con5 tract shall include a provision requiring a prime con6 tractor or subcontractor to disclose to each appro7 priate agency any allegation of covered misconduct 

8 by an employee of the prime contractor or subcon9 tractor not later than 24 hours after the prime con10 tractor or subcontractor discovers the alleged cov11 ered misconduct. 

12 (3) INVESTIGATION OF COVERED MIS13 CONDUCT.— 

14 (A) CONTRACTOR INVESTIGATION.—A cov15 ered contract shall include a provision requiring 

16 that, not later than 5 business days after the 

17 date on which a prime contractor or subcon18 tractor discloses an allegation under paragraph 

19 (2), the prime contractor or subcontractor shall 

20 refer the allegation of covered misconduct to 

21 the agency for investigation. 

22 (B) AGENCY INVESTIGATION.—Nothing in 

23 subparagraph (A) shall be construed to prohibit 

24 an appropriate agency from conducting its own 
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1 investigation into an allegation of covered mis2 conduct. 

3 (4) PROHIBITION ON REEMPLOYMENT TO CON4 DUCT BACKGROUND INVESTIGATIONS.—If an appro5 priate agency determines, based on an investigation 

6 conducted under paragraph (3), that an individual is 

7 ineligible to perform work under a covered contract 

8 under paragraph (1), the individual shall be prohib9 ited from performing background investigations 

10 under any covered contract. 

11 (5) MODIFICATION OF EXISTING CONTRACTS.— 

12 Not later than 30 days after the date of enactment 

13 of this Act, any covered contract that is in effect 

14 and was entered into before the date of enactment 

15 of this Act shall be modified to include the provi16 sions required under paragraphs (2) and (3). 

17 (c) REPORTING.—Not later than 1 year after the date 

18 of enactment of this Act, and annually thereafter, the 

19 President shall submit to the appropriate congressional 

20 committees a report providing— 

21 (1) the number of individuals determined to 

22 be— 

23 (A) unfit for Federal employment under 

24 subsection (a); or 
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1 (B) ineligible to perform work under a cov2 ered contract under subsection (b); and 

3 (2) details of the covered misconduct that re4 sulted in each determination described in paragraph 

5 (1). 

6 SEC. 4. REVIEW AND UPDATE OF POSITION DESIGNATION 

7 GUIDANCE. 

8 (a) GUIDELINES.— 

9 (1) INITIAL REVIEW AND UPDATE OF GUID10 ANCE.—Not later than 180 days after the date of 

11 enactment of this Act, the President shall review 

12 and, if appropriate, update the guidance the Presi13 dent issues to assist agencies in determining— 

14 (A) position sensitivity designation; and 

15 (B) the appropriate background investiga16 tion to initiate for each position designation. 

17 (2) REVIEWS AND REVISIONS OF POSITION DES18 IGNATIONS.—Not less frequently than every 5 years, 

19 the President, acting through relevant agencies (as 

20 determined by the President) and in accordance with 

21 the guidance described in paragraph (1), shall review 

22 and, if necessary, revise the position designation of 

23 positions within agencies. 

24 (b) REPORTS TO CONGRESS.—Not later than 30 days 

25 after completing a review under subsection (a)(2), the 
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1 President shall submit to the appropriate congressional 

2 committees a report on— 

3 (1) any issues identified in the review; and 

4 (2) the number of position designations revised 

5 as a result of the review. 

6 (c) NO CHANGE IN AUTHORITY.—Nothing in this 

7 section limits or expands the authority of any agency to 

8 designate a position as sensitive or as requiring its occu9 pant 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 infor position designation, and for other purposes. background investigations, to update guidelines volved in misconduct affecting the integrity of