II 113th CONGRESS 1st Session S. 1744 IN THE SENATE OF THE UNITED STATES November 20, 2013 Mr. Tester (for himself, Mr. Portman , Mrs. McCaskill , Mr. Begich , Mr. Baucus , Mr. Nelson , and Mr. Johnson of Wisconsin ) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs A BILL To strengthen the accountability of individuals involved in misconduct affecting the integrity of background investigations, to update guidelines for security clearances, and for other purposes.

1. Short title This Act may be cited as the Security Clearance Accountability, Reform, and Enhancement Act . 2. Definitions In this Act— (1) the term administrative leave — (A) means a period of administratively authorized absence from official duties by an employee of an agency without loss of pay or charge to the leave account of the employee; and (B) does not include the absence of an employee of an agency who is performing officially sanctioned duties away from the usual work site or that are different from the regular duties of the employee; (2) the term agency has the meaning given that term in section 3001 of the Intelligence Reform and Terrorism Prevention Act of 2004 ( 50 U.S.C. 3341 ); (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 whether an individual may be appointed to, or continue to occupy, a position, as an employee or contractor of an agency, that requires its occupant to have access to classified information or secure government facilities; (5) the term covered contract means a contract— (A) between an agency and a prime contractor; (B) between a prime contractor and a subcontractor; and (C) between subcontractors; (6) the term debar — (A) means to prohibit an individual from being appointed to, or continuing to occupy, a position, as a contractor of an agency, that requires its occupant to supervise, conduct, or otherwise administer background investigations; and (B) shall be construed within the parameters and scope of debarment under subpart 9.4 of part 9 of title 48, Code of Federal Regulations, or any successor thereto; (7) the term Director means the Director of the Office of Personnel Management; (8) the term prime contractor means a person who enters into a contract with an agency; (9) the term subcontractor means a person who has contracted with a prime contractor or with another subcontractor to perform a contract with an agency; and (10) the term terminate means to prohibit an individual from being appointed to, or continuing to occupy, a position, as an employee of an agency, that requires its occupant to supervise, conduct, or otherwise administer background investigations. 3. Termination and debarment of individuals involved in misconduct affecting the integrity of the background investigations program of the Office of Personnel Management (a) Termination The Director shall terminate an individual employed by the Office of Personnel Management if the Director determines, based upon a preponderance of the evidence, that the individual was intentionally involved in misconduct affecting the integrity of the background investigations program of the Office of Personnel Management, including— (1) falsification of a background investigation report; (2) fraud relating to a background investigation report; or (3) other serious misconduct that compromises the integrity of a background investigation report. (b) Debarment The Director shall debar an individual employed or contracted by a person under contract with the Office of Personnel Management if the Director determines, based upon a preponderance of the evidence, that the individual was intentionally involved in misconduct that has the potential to affect the integrity of the background investigations program of the Office of Personnel Management, including— (1) falsification of a background investigation report; (2) fraud relating to a background investigation report; or (3) other serious misconduct that compromises the integrity of a background investigation report. (c) Suspension (1) In general The Director shall suspend an individual employed or contracted by a person under contract with the Office of Personnel Management if the Director determines, based upon a preponderance of the evidence, that an investigation is required to determine whether the individual was intentionally involved in misconduct affecting the integrity of the background investigations program of the Office of Personnel Management, including— (A) falsification of a background investigation report; (B) fraud relating to a background investigation report; or (C) other serious misconduct that compromises the integrity of a background investigation report. (2) Duration of suspension An individual suspended under paragraph (1) shall remain suspended until such time that the Director determines that the individual was not intentionally involved in misconduct affecting the integrity of the background investigations program of the Office of Personnel Management. (d) Administrative leave (1) In general The Director shall place on administrative leave an individual employed by the Office of Personnel Management if the Director determines, based upon a preponderance of the evidence, that an investigation is required to determine whether the individual was intentionally involved in misconduct affecting the integrity of the background investigations program of the Office of Personnel Management, including— (A) falsification of a background investigation report; (B) fraud relating to a background investigation report; or (C) other serious misconduct that compromises the integrity of a background investigation report. (2) Period of administrative leave An individual placed on administrative leave under paragraph (1) shall remain on administrative leave until such time that the Director determines that the individual was not intentionally involved in misconduct affecting the integrity of the background investigations program of the Office of Personnel Management. (e) Procedures The Director shall establish procedures under which subsections (a) through (d) shall be carried out, which shall— (1) with respect to employees— (A) ensure that— (i) the employee is provided with notice and opportunity to be heard; and (ii) the determination whether to terminate or reinstate the employee is made expeditiously; and (B) be in accordance with chapters 5 and 75 of title 5, United States Code; and (2) with respect to individuals employed or contracted by persons under contract with the Office of Personnel Management, shall be carried out in accordance with section 9.406–3 of title 48, Code of Federal Regulations, or any successor thereto. (f) Mandatory disclosure Any covered contract shall include a provision requiring the prime contractor or subcontractor to disclose any misconduct of the type described under subsections (a) through (d) and any violation of Federal law to the agency in a timely manner, and in no event later than 90 days after the date that the misconduct is discovered by the prime contractor or subcontractor. (g) Reporting Not later than 1 year after the date of enactment of this Act, and annually thereafter, the Director shall submit to the appropriate congressional committees a report providing— (1) the number of individuals terminated under subsection (a); (2) the number of individuals debarred under subsection (b); (3) the number of individuals suspended under subsection (c); (4) the number of individuals placed on administrative leave under subsection (d); and (5) details of the misconduct that resulted in each termination under subsection (a), debarment under subsection (b), suspension under subsection (c), and placement on administrative leave under subsection (d). 4. Review and update of classified information guidance (a) Guidelines Not later than 180 days after the date of enactment of this Act, the President shall review and update guidance for agencies that shall be used to— (1) determine whether a position requires its occupant to have a security clearance; (2) implement the guidance provided in paragraph (1), including quality controls; and (3) not less frequent than every 5 years, review and, if necessary, revise the designation of a position as requiring its occupant to have access to classified information or secure government facilities. (b) Reports to Congress Not later than 30 days after a review under subsection (a)(2), the President shall submit to the appropriate congressional committees a report on any issues identified in the review, and any updates made, under subsection (a)(2). (c) No change in authority Nothing in this section limits or expands the authority of any agency to designate a position as requiring its occupant to have access to classified information or secure government facilities.