[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1744 Reported in Senate (RS)]

                                                       Calendar No. 606
113th CONGRESS
  2d Session
                                S. 1744

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.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 20, 2013

 Mr. Tester (for himself, Mr. Portman, Mrs. McCaskill, Mr. Begich, Mr. 
     Baucus, Mr. Nelson, Mr. Johnson of Wisconsin, and Ms. Ayotte) 
introduced the following bill; which was read twice and referred to the 
        Committee on Homeland Security and Governmental Affairs

                           November 20, 2014

Reported by Mr. Carper, with an amendment and an amendment to the title
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

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

<DELETED>SEC. 2. DEFINITIONS.</DELETED>

<DELETED>    In this Act--</DELETED>
        <DELETED>    (1) the term ``administrative leave''--</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (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;</DELETED>
        <DELETED>    (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);</DELETED>
        <DELETED>    (3) the term ``appropriate congressional 
        committees'' means--</DELETED>
                <DELETED>    (A) the Committee on Homeland Security and 
                Governmental Affairs and the Select Committee on 
                Intelligence of the Senate; and</DELETED>
                <DELETED>    (B) the Committee on Oversight and 
                Government Reform and the Permanent Select Committee on 
                Intelligence of the House of Representatives;</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (5) the term ``covered contract'' means a 
        contract--</DELETED>
                <DELETED>    (A) between an agency and a prime 
                contractor;</DELETED>
                <DELETED>    (B) between a prime contractor and a 
                subcontractor; and</DELETED>
                <DELETED>    (C) between subcontractors;</DELETED>
        <DELETED>    (6) the term ``debar''--</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (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;</DELETED>
        <DELETED>    (7) the term ``Director'' means the Director of 
        the Office of Personnel Management;</DELETED>
        <DELETED>    (8) the term ``prime contractor'' means a person 
        who enters into a contract with an agency;</DELETED>
        <DELETED>    (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</DELETED>
        <DELETED>    (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.</DELETED>

<DELETED>SEC. 3. TERMINATION AND DEBARMENT OF INDIVIDUALS INVOLVED IN 
              MISCONDUCT AFFECTING THE INTEGRITY OF THE BACKGROUND 
              INVESTIGATIONS PROGRAM OF THE OFFICE OF PERSONNEL 
              MANAGEMENT.</DELETED>

<DELETED>    (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--</DELETED>
        <DELETED>    (1) falsification of a background investigation 
        report;</DELETED>
        <DELETED>    (2) fraud relating to a background investigation 
        report; or</DELETED>
        <DELETED>    (3) other serious misconduct that compromises the 
        integrity of a background investigation report.</DELETED>
<DELETED>    (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--</DELETED>
        <DELETED>    (1) falsification of a background investigation 
        report;</DELETED>
        <DELETED>    (2) fraud relating to a background investigation 
        report; or</DELETED>
        <DELETED>    (3) other serious misconduct that compromises the 
        integrity of a background investigation report.</DELETED>
<DELETED>    (c) Suspension.--</DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (A) falsification of a background 
                investigation report;</DELETED>
                <DELETED>    (B) fraud relating to a background 
                investigation report; or</DELETED>
                <DELETED>    (C) other serious misconduct that 
                compromises the integrity of a background investigation 
                report.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (d) Administrative Leave.--</DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (A) falsification of a background 
                investigation report;</DELETED>
                <DELETED>    (B) fraud relating to a background 
                investigation report; or</DELETED>
                <DELETED>    (C) other serious misconduct that 
                compromises the integrity of a background investigation 
                report.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (e) Procedures.--The Director shall establish procedures 
under which subsections (a) through (d) shall be carried out, which 
shall--</DELETED>
        <DELETED>    (1) with respect to employees--</DELETED>
                <DELETED>    (A) ensure that--</DELETED>
                        <DELETED>    (i) the employee is provided with 
                        notice and opportunity to be heard; 
                        and</DELETED>
                        <DELETED>    (ii) the determination whether to 
                        terminate or reinstate the employee is made 
                        expeditiously; and</DELETED>
                <DELETED>    (B) be in accordance with chapters 5 and 
                75 of title 5, United States Code; and</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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--
</DELETED>
        <DELETED>    (1) the number of individuals terminated under 
        subsection (a);</DELETED>
        <DELETED>    (2) the number of individuals debarred under 
        subsection (b);</DELETED>
        <DELETED>    (3) the number of individuals suspended under 
        subsection (c);</DELETED>
        <DELETED>    (4) the number of individuals placed on 
        administrative leave under subsection (d); and</DELETED>
        <DELETED>    (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).</DELETED>

<DELETED>SEC. 4. REVIEW AND UPDATE OF CLASSIFIED INFORMATION 
              GUIDANCE.</DELETED>

<DELETED>    (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--</DELETED>
        <DELETED>    (1) determine whether a position requires its 
        occupant to have a security clearance;</DELETED>
        <DELETED>    (2) implement the guidance provided in paragraph 
        (1), including quality controls; and</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (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).</DELETED>
<DELETED>    (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.</DELETED>

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.
            Amend the title so as to read: ``A bill 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.''.
                                                       Calendar No. 606

113th CONGRESS

  2d Session

                                S. 1744

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                           November 20, 2014

        Reported with an amendment and an amendment to the title