Security Clearance Accountability, Reform, and Enhancement Act of 2015

Bill: 114-s-434
Sponsor: full_name: Sen. Tester, Jon [D-MT]
Introduced: 2015-02-10
Policy area: Government Operations and Politics
Subjects: Congressional oversight

Consumer credit

Fraud offenses and financial crimes

Government employee pay, benefits, personnel management

Government ethics and transparency, public corruption

Government studies and investigations

Intelligence activities, surveillance, classified information

Personnel records

Public contracts and procurement

Student records
Latest action: action_date: 2016-11-18
text: Referred to the House Committee on Oversight and Government Reform.

Summaries:
action_date: 2015-02-10
action_desc: Introduced in Senate
text: <p><strong>Security Clearance Accountability, Reform, and Enhancement Act of 2015</strong> </p> <p>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). 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. </p> <p>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. </p> <p>Requires the President to 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. </p> <p>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.</p> <p> 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.</p> <p>Defines: </p> <UL> <LI>"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 <LI>"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). </LI> </UL>

action_date: 2016-04-28
action_desc: Reported to Senate without amendment
text: <p>(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)</p> <p><strong>Security Clearance Accountability, Reform, and Enhancement Act of 2015</strong> </p> <p>TITLE I--SECURITY CLEARANCE ACCOUNTABILITY, REFORM, AND ENHANCEMENT</p> <p>(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. </p> <p>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. </p> <p>(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.</p> <p>TITLE II--PREVENTING CONFLICTS OF INTEREST WITH CONTRACTORS</p> <p> (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.</p> <p>The bill defines: </p> <UL> <LI>"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 <LI>"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). </LI> </UL>

action_date: 2016-11-17
action_desc: Passed Senate without amendment
text: <p>(This measure has not been amended since it was introduced. The expanded summary of the Senate reported version is repeated here.)</p> <p><strong>Security Clearance Accountability, Reform, and Enhancement Act of 2015</strong> </p> <p>TITLE I--SECURITY CLEARANCE ACCOUNTABILITY, REFORM, AND ENHANCEMENT</p> <p>(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. </p> <p>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. </p> <p>(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.</p> <p>TITLE II--PREVENTING CONFLICTS OF INTEREST WITH CONTRACTORS</p> <p> (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.</p> <p>The bill defines: </p> <UL> <LI>"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 <LI>"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). </LI> </UL>

tv_txt: II 114th CONGRESS 1st Session S. 434 IN THE SENATE OF THE UNITED STATES February 10, 2015 Mr. Tester (for himself, Mrs. McCaskill , and Mr. Vitter ) 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, to prevent conflicts of interest relating to contractors providing background investigation fieldwork services and investigative support services, and for other purposes.

1. Short title This Act may be cited as the Security Clearance Accountability, Reform, and Enhancement Act of 2015 . 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. I Security clearance accountability, reform, and enhancement 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. 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). 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. II Preventing conflicts of interest with contractors 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. 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.

tv_txt: II Calendar No. 453 114th CONGRESS 2d Session S. 434 [Report No. 114–246] IN THE SENATE OF THE UNITED STATES February 10, 2015 Mr. Tester (for himself, Mrs. McCaskill , Mr. Vitter , and Mr. Portman ) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs April 28, 2016 Reported by Mr. Johnson , without amendment A BILL To strengthen the accountability of individuals involved in misconduct affecting the integrity of background investigations, to update guidelines for security clearances, to prevent conflicts of interest relating to contractors providing background investigation fieldwork services and investigative support services, and for other purposes.

1. Short title This Act may be cited as the Security Clearance Accountability, Reform, and Enhancement Act of 2015 . 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. I Security clearance accountability, reform, and enhancement 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. 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). 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. II Preventing conflicts of interest with contractors 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. 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.

April 28, 2016 Reported without amendment

tv_txt: 114th CONGRESS 2d Session S. 434 IN THE SENATE OF THE UNITED STATES AN ACT To strengthen the accountability of individuals involved in misconduct affecting the integrity of background investigations, to update guidelines for security clearances, to prevent conflicts of interest relating to contractors providing background investigation fieldwork services and investigative support services, and for other purposes.

1. Short title This Act may be cited as the Security Clearance Accountability, Reform, and Enhancement Act of 2015 . 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. I Security clearance accountability, reform, and enhancement 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. 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). 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. II Preventing conflicts of interest with contractors 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. 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. Secretary

tv_txt: IC 114th CONGRESS 2d Session S. 434 IN THE HOUSE OF REPRESENTATIVES November 18, 2016 Referred to the Committee on Oversight and Government Reform AN ACT To strengthen the accountability of individuals involved in misconduct affecting the integrity of background investigations, to update guidelines for security clearances, to prevent conflicts of interest relating to contractors providing background investigation fieldwork services and investigative support services, and for other purposes.

1. Short title This Act may be cited as the Security Clearance Accountability, Reform, and Enhancement Act of 2015 . 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. I Security clearance accountability, reform, and enhancement 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. 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). 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. II Preventing conflicts of interest with contractors 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. 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. Julie E. Adams, Secretary