[Congressional Record Volume 162, Number 84 (Thursday, May 26, 2016)]
[Senate]
[Pages S3336-S3339]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 4337. Mr. BOOKER (for himself, Mr. Johnson, Ms. Baldwin, Mrs. 
Ernst, Mr. Brown, Mr. Portman, and Mr. Peters) submitted an amendment 
intended to be proposed by him to the bill S. 2943, to authorize 
appropriations for fiscal year 2017 for military activities of the 
Department of Defense, for military construction, and for defense 
activities of the Department of Energy, to prescribe military personnel 
strengths for such fiscal year, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end of title X, add the following:

                      Subtitle J--Fair Chance Act

     SEC. 1097. SHORT TITLE.

       This subtitle may be cited as the ``Fair Chance to Compete 
     for Jobs Act of 2016'' or the ``Fair Chance Act''.

     SEC. 1098. PROHIBITION ON CRIMINAL HISTORY INQUIRIES PRIOR TO 
                   CONDITIONAL OFFER FOR FEDERAL EMPLOYMENT.

       (a) In General.--Subpart H of part III of title 5, United 
     States Code, is amended by adding at the end the following:

   ``CHAPTER 92--PROHIBITION ON CRIMINAL HISTORY INQUIRIES PRIOR TO 
                           CONDITIONAL OFFER

``Sec.
``9201. Definitions.
``9202. Limitations on requests for criminal history record 
              information.
``9203. Agency policies; whistleblower complaint procedures.

[[Page S3337]]

``9204. Adverse action.
``9205. Procedures.
``9206. Rules of construction.

     ``Sec. 9201. Definitions

       ``In this chapter--
       ``(1) the term `agency' means `Executive agency' as such 
     term is defined in section 105 and includes--
       ``(A) the United States Postal Service and the Postal 
     Regulatory Commission; and
       ``(B) the Executive Office of the President;
       ``(2) the term `appointing authority' means an employee in 
     the executive branch of the Government of the United States 
     that has authority to make appointments to positions in the 
     civil service;
       ``(3) the term `conditional offer' means an offer of 
     employment in a position in the civil service that is 
     conditioned upon the results of a criminal history inquiry;
       ``(4) the term `criminal history record information'--
       ``(A) except as provided in subparagraph (B), has the 
     meaning given the term in section 9101(a);
       ``(B) includes any information described in the first 
     sentence of section 9101(a)(2) that has been sealed or 
     expunged pursuant to law, regardless of whether the 
     information is accessible by State and local criminal justice 
     agencies for the purpose of conducting background checks; and
       ``(C) includes information collected by a criminal justice 
     agency, relating to an act or alleged act of juvenile 
     delinquency, that is analogous to criminal history record 
     information (including such information that has been sealed 
     or expunged pursuant to law); and
       ``(5) the term `suspension' has the meaning given the term 
     in section 7501.

     ``Sec. 9202. Limitations on requests for criminal history 
       record information

       ``(a) Inquiries Prior to Conditional Offer.--Except as 
     provided in subsections (b) and (c), an employee of an agency 
     may not request, in oral or written form (including through 
     the Declaration for Federal Employment (Office of Personnel 
     Management Optional Form 306), or any similar successor 
     form), including through the USAJOBS Internet Web site or any 
     other electronic means, that an applicant for an appointment 
     to a position in the civil service disclose criminal history 
     record information regarding the applicant before the 
     appointing authority extends a conditional offer to the 
     applicant.
       ``(b) Otherwise Required by Law.--The prohibition under 
     subsection (a) shall not apply with respect to an applicant 
     for a position in the civil service if consideration of 
     criminal history record information prior to a conditional 
     offer with respect to the position is otherwise required by 
     law.
       ``(c) Exception for Certain Positions.--
       ``(1) In general.--The prohibition under subsection (a) 
     shall not apply with respect to an applicant for an 
     appointment to a position--
       ``(A) that requires a determination of eligibility 
     described in clause (i), (ii), or (iii) of section 
     9101(b)(1)(A);
       ``(B) as a Federal law enforcement officer (as defined in 
     section 115(c) of title 18); or
       ``(C) identified by the Director of the Office of Personnel 
     Management in the regulations issued under paragraph (2).
       ``(2) Regulations.--
       ``(A) Issuance.--The Director of the Office of Personnel 
     Management shall issue regulations identifying additional 
     positions with respect to which the prohibition under 
     subsection (a) shall not apply, giving due consideration to 
     positions that involve interaction with minors, access to 
     sensitive information, or managing financial transactions.
       ``(B) Compliance with civil rights laws.--The regulations 
     issued under subparagraph (A) shall--
       ``(i) be consistent with, and in no way supersede, 
     restrict, or limit the application of title VII of the Civil 
     Rights Act of 1964 (42 U.S.C. 2000e et seq.) or other 
     relevant Federal civil rights laws; and
       ``(ii) ensure that all hiring activities conducted pursuant 
     to the regulations are conducted in a manner consistent with 
     relevant Federal civil rights laws.

     ``Sec. 9203. Agency policies; complaint procedures

       ``The Director of the Office of Personnel Management 
     shall--
       ``(1) develop, implement, and publish a policy to assist 
     employees of agencies in complying with section 9202 and the 
     regulations issued pursuant to such section; and
       ``(2) establish and publish procedures under which an 
     applicant for an appointment to a position in the civil 
     service may submit a complaint, or any other information, 
     relating to compliance by an employee of an agency with 
     section 9202.

     ``Sec. 9204. Adverse action

       ``(a) First Violation.--If the Director of the Office of 
     Personnel Management determines, after notice and an 
     opportunity for a hearing on the record, that an employee of 
     an agency has violated section 9202, the Director shall--
       ``(1) issue to the employee a written warning that includes 
     a description of the violation and the additional penalties 
     that may apply for subsequent violations; and
       ``(2) file such warning in the employee's official 
     personnel record file.
       ``(b) Subsequent Violations.--If the Director of the Office 
     of Personnel Management determines, after notice and an 
     opportunity for a hearing on the record, that an employee 
     that was subject to subsection (a) has committed a subsequent 
     violation of section 9202, the Director may take the 
     following action:
       ``(1) For a second violation, suspension of the employee 
     for a period of not more than 7 days.
       ``(2) For a third violation, suspension of the employee for 
     a period of more than 7 days.
       ``(3) For a fourth violation--
       ``(A) suspension of the employee for a period of more than 
     7 days; and
       ``(B) a civil penalty against the employee in an amount 
     that is not more than $250.
       ``(4) For a fifth violation--
       ``(A) suspension of the employee for a period of more than 
     7 days; and
       ``(B) a civil penalty against the employee in an amount 
     that is not more than $500.
       ``(5) For any subsequent violation--
       ``(A) suspension of the employee for a period of more than 
     7 days; and
       ``(B) a civil penalty against the employee in an amount 
     that is not more than $1,000.

     ``Sec. 9205. Procedures

       ``(a) Appeals.--The Director of the Office of Personnel 
     Management shall by rule establish procedures providing for 
     an appeal from any adverse action taken under section 9204 by 
     not later than 30 days after the date of the action.
       ``(b) Applicability of Other Laws.--An adverse action taken 
     under section 9204 (including a determination in an appeal 
     from such an action under subsection (a) of this section) 
     shall not be subject to--
       ``(1) the procedures under chapter 75; or
       ``(2) except as provided in subsection (a) of this section, 
     appeal or judicial review.

     ``Sec. 9206. Rules of construction

       ``Nothing in this chapter may be construed to--
       ``(1) authorize any officer or employee of an agency to 
     request the disclosure of information described under 
     subparagraphs (B) and (C) of section 9201(4);
       ``(2) create a private right of action for any person; or
       ``(3) prohibit an agency from procuring a consumer report 
     (as defined in section 603 of the Fair Credit Reporting Act 
     (15 U.S.C. 1681a)) furnished by a consumer reporting agency 
     (as defined in such section 603) in accordance with that 
     Act.''.
       (b) Regulations; Effective Date.--
       (1) Regulations.--Not later than 1 year after the date of 
     enactment of this Act, the Director of the Office of 
     Personnel Management shall issue such regulations as are 
     necessary to carry out chapter 92 of title 5, United States 
     Code (as added by this subtitle).
       (2) Effective date.--Section 9202 of title 5, United States 
     Code (as added by this subtitle), shall take effect on the 
     date that is 2 years after the date of enactment of this Act.
       (c) Technical and Conforming Amendment.--The table of 
     chapters for part III of title 5, United States Code, is 
     amended by inserting after the item relating to chapter 91 
     the following:

``92. Prohibition on criminal history inquiries prior to conditional 
    offer...................................................9201''.....

       (d) Application to Legislative Branch.--
       (1) In general.--The Congressional Accountability Act of 
     1995 (2 U.S.C. 1301 et seq.) is amended--
       (A) in section 102(a) (2 U.S.C. 1302(a)), by adding at the 
     end the following:
       ``(12) Section 9202 of title 5, United States Code.'';
       (B) by redesignating section 207 (2 U.S.C. 1317) as section 
     208; and
       (C) by inserting after section 206 (2 U.S.C. 1316) the 
     following new section:

     ``SEC. 207. RIGHTS AND PROTECTIONS RELATING TO CRIMINAL 
                   HISTORY INQUIRIES.

       ``(a) Definitions.--In this section, the terms `agency', 
     `criminal history record information', and `suspension' have 
     the meanings given the terms in section 9201 of title 5, 
     United States Code, except as otherwise modified by this 
     section.
       ``(b) Restrictions on Criminal History Inquiries.--
       ``(1) In general.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     an employee of an employing office may not request that an 
     applicant for employment as a covered employee disclose 
     criminal history record information if the request would be 
     prohibited under section 9202 of title 5, United States Code, 
     if made by an employee of an agency.
       ``(B) Conditional offer.--For purposes of applying that 
     section 9202 under subparagraph (A), a reference in that 
     section 9202 to a conditional offer shall be considered to be 
     an offer of employment as a covered employee that is 
     conditioned upon the results of a criminal history inquiry.
       ``(2) Rules of construction.--The provisions of section 
     9206 of title 5, United States Code, shall apply to employing 
     offices, consistent with regulations issued under subsection 
     (d).
       ``(c) Remedy.--
       ``(1) In general.--The remedy for a violation of subsection 
     (b)(1) shall be such remedy as would be appropriate if 
     awarded under section 9204 of title 5, United States Code, if 
     the violation had been committed by an employee of an agency, 
     consistent with regulations issued under subsection (d), 
     except that the reference in that section to a suspension 
     shall be considered to be a suspension with

[[Page S3338]]

     the level of compensation provided for a covered employee who 
     is taking unpaid leave under section 202.
       ``(2) Process for obtaining relief.--An applicant for 
     employment as a covered employee who alleges a violation of 
     subsection (b)(1) may rely on the provisions of title IV 
     (other than sections 404(2), 407, and 408), consistent with 
     regulations issued under subsection (d).
       ``(d) Regulations To Implement Section.--
       ``(1) In general.--Not later than 18 months after the date 
     of enactment of the Fair Chance to Compete for Jobs Act of 
     2016, the Board shall, pursuant to section 304, issue 
     regulations to implement this section.
       ``(2) Parallel with agency regulations.--The regulations 
     issued under paragraph (1) shall be the same as substantive 
     regulations issued by the Director of the Office of Personnel 
     Management under section 1098(b)(1) of the Fair Chance to 
     Compete for Jobs Act of 2016 to implement the statutory 
     provisions referred to in subsections (a) through (c) except 
     to the extent that the Board may determine, for good cause 
     shown and stated together with the regulation, that a 
     modification of such regulations would be more effective for 
     the implementation of the rights and protections under this 
     section.
       ``(e) Effective Date.--Section 102(a)(12) and subsections 
     (a) through (c) shall take effect on the date on which 
     section 9202 of title 5, United States Code, applies with 
     respect to agencies.''.
       (2) Clerical amendment.--The table of contents of such Act 
     is amended--
       (A) by redesignating the item relating to section 207 as 
     the item relating to section 208; and
       (B) by inserting after the item relating to section 206 the 
     following new item:

``Sec. 207. Rights and protections relating to criminal history 
              inquiries.''.
       (e) Application to Judicial Branch.--
       (1) In general.--Section 604 of title 28, United States 
     Code, is amended by adding at the end the following:
       ``(i) Restrictions on Criminal History Inquiries.--
       ``(1) Definitions.--In this subsection--
       ``(A) the terms `agency' and `criminal history record 
     information' have the meanings given those terms in section 
     9201 of title 5;
       ``(B) the term `covered employee' means an employee of the 
     judicial branch of the United States Government, other than--
       ``(i) any judge or justice who is entitled to hold office 
     during good behavior;
       ``(ii) a United States magistrate judge; or
       ``(iii) a bankruptcy judge; and
       ``(C) the term `employing office' means any office or 
     entity of the judicial branch of the United States Government 
     that employs covered employees.
       ``(2) Restriction.--A covered employee may not request that 
     an applicant for employment as a covered employee disclose 
     criminal history record information if the request would be 
     prohibited under section 9202 of title 5 if made by an 
     employee of an agency.
       ``(3) Employing office policies; complaint procedure.--The 
     provisions of sections 9203 and 9206 of title 5 shall apply 
     to employing offices and to applicants for employment as 
     covered employees, consistent with regulations issued by the 
     Director to implement this subsection.
       ``(4) Adverse action.--
       ``(A) Adverse action.--The Director may take such adverse 
     action with respect to a covered employee who violates 
     paragraph (2) as would be appropriate under section 9204 of 
     title 5 if the violation had been committed by an employee of 
     an agency.
       ``(B) Appeals.--The Director shall by rule establish 
     procedures providing for an appeal from any adverse action 
     taken under subparagraph (A) by not later than 30 days after 
     the date of the action.
       ``(C) Applicability of other laws.--Except as provided in 
     subparagraph (B), an adverse action taken under subparagraph 
     (A) (including a determination in an appeal from such an 
     action under subparagraph (B)) shall not be subject to appeal 
     or judicial review.
       ``(5) Regulations to be issued.--
       ``(A) In general.--Not later than 18 months after the date 
     of enactment of the Fair Chance to Compete for Jobs Act of 
     2016, the Director shall issue regulations to implement this 
     subsection.
       ``(B) Parallel with agency regulations.--The regulations 
     issued under subparagraph (A) shall be the same as 
     substantive regulations promulgated by the Director of the 
     Office of Personnel Management under section 1098(b)(1) of 
     the Fair Chance to Compete for Jobs Act of 2016 except to the 
     extent that the Director of the Administrative Office of the 
     United States Courts may determine, for good cause shown and 
     stated together with the regulation, that a modification of 
     such regulations would be more effective for the 
     implementation of the rights and protections under this 
     subsection.
       ``(6) Effective date.--Paragraphs (1) through (4) shall 
     take effect on the date on which section 9202 of title 5 
     applies with respect to agencies.''.

     SEC. 1099. PROHIBITION ON CRIMINAL HISTORY INQUIRIES BY 
                   CONTRACTORS PRIOR TO CONDITIONAL OFFER.

       (a) Civilian Agency Contracts.--
       (1) In general.--Chapter 47 of title 41, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 4713. Prohibition on criminal history inquiries by 
       contractors prior to conditional offer

       ``(a) Limitation on Criminal History Inquiries.--
       ``(1) In general.--Except as provided in paragraphs (2) and 
     (3), an executive agency--
       ``(A) may not require that an individual or sole proprietor 
     who submits a bid or competitive proposal for a contract to 
     disclose criminal history record information regarding that 
     individual or sole proprietor before determining the apparent 
     awardee; and
       ``(B) shall require, as a condition of receiving a Federal 
     contract and receiving payments under such contract that the 
     contractor may not verbally, or through written form, request 
     the disclosure of criminal history record information 
     regarding an applicant for a position related to work under 
     such contract before the contractor extends a conditional 
     offer to the applicant.
       ``(2) Otherwise required by law.--The prohibition under 
     paragraph (1) does not apply with respect to a contract if 
     consideration of criminal history record information prior to 
     a conditional offer with respect to the position is otherwise 
     required by law.
       ``(3) Exception for certain positions.--
       ``(A) In general.--The prohibition under paragraph (1) does 
     not apply with respect to--
       ``(i) a contract that requires an individual hired under 
     the contract to access classified information or to have 
     sensitive law enforcement or national security duties; or
       ``(ii) a position that the Administrator of General 
     Services identifies under the regulations issued under 
     subparagraph (B).
       ``(B) Regulations.--
       ``(i) Issuance.--Not later than 16 months after the date of 
     enactment of the Fair Chance to Compete for Jobs Act of 2016, 
     the Administrator of General Services, in consultation with 
     the Secretary of Defense, shall issue regulations identifying 
     additional positions with respect to which the prohibition 
     under paragraph (1) shall not apply, giving due consideration 
     to positions that involve interaction with minors, access to 
     sensitive information, or managing financial transactions.
       ``(ii) Compliance with civil rights laws.--The regulations 
     issued under clause (i) shall--

       ``(I) be consistent with, and in no way supersede, 
     restrict, or limit the application of title VII of the Civil 
     Rights Act of 1964 (42 U.S.C. 2000e et seq.) or other 
     relevant Federal civil rights laws; and
       ``(II) ensure that all hiring activities conducted pursuant 
     to the regulations are conducted in a manner consistent with 
     relevant Federal civil rights laws.

       ``(b) Complaint Procedures.--The Administrator of General 
     Services shall establish and publish procedures under which 
     an applicant for a position with a Federal contractor may 
     submit to the Administrator a complaint, or any other 
     information, relating to compliance by the contractor with 
     subsection (a)(1)(B).
       ``(c) Action for Violations of Prohibition on Criminal 
     History Inquiries.--
       ``(1) First violation.--If the head of an executive agency 
     determines that a contractor has violated subsection 
     (a)(1)(B), such head shall--
       ``(A) notify the contractor;
       ``(B) provide 30 days after such notification for the 
     contractor to appeal the determination; and
       ``(C) issue a written warning to the contractor that 
     includes a description of the violation and the additional 
     remedies that may apply for subsequent violations.
       ``(2) Subsequent violation.--If the head of an executive 
     agency determines that a contractor that was subject to 
     paragraph (1) has committed a subsequent violation of 
     subsection (a)(1)(B), such head shall notify the contractor, 
     shall provide 30 days after such notification for the 
     contractor to appeal the determination, and, in consultation 
     with the relevant Federal agencies, may take actions, 
     depending on the severity of the infraction and the 
     contractor's history of violations, including--
       ``(A) providing written guidance to the contractor that the 
     contractor's eligibility for contracts requires compliance 
     with this section;
       ``(B) requiring that the contractor respond within 30 days 
     affirming that the contractor is taking steps to comply with 
     this section; and
       ``(C) suspending payment under the contract for which the 
     applicant was being considered until the contractor 
     demonstrates compliance with this section.
       ``(d) Rules of Construction.--Nothing in this section may 
     be construed to--
       ``(1) prohibit an executive agency from procuring a 
     consumer report (as defined in section 603 of the Fair Credit 
     Reporting Act (15 U.S.C. 1681a)) furnished by a consumer 
     reporting agency (as defined in such section 603) in 
     accordance with that Act; or
       ``(2) authorize an executive agency to prohibit a 
     contractor, as a condition of receiving a Federal contract 
     and receiving payments under such contract, from procuring a 
     consumer report (as defined in section 603 of the Fair Credit 
     Reporting Act (15 U.S.C. 1681a)) furnished by a consumer 
     reporting agency (as defined in such section 603) in 
     accordance with that Act.
       ``(e) Definitions.--In this section:
       ``(1) Conditional offer.--The term `conditional offer' 
     means an offer of employment for a position related to work 
     under a contract that is conditioned upon the results of a 
     criminal history inquiry.

[[Page S3339]]

       ``(2) Criminal history record information.--The term 
     `criminal history record information' has the meaning given 
     that term in section 9201 of title 5.''.
       (2) Clerical amendment.--The table of sections of chapter 
     47 of such title is amended by inserting after the item 
     relating to section 4712 the following new item:

``4713. Prohibition on criminal history inquiries by contractors prior 
              to conditional offer.''.
       (3) Effective date.--Section 4713(a) of title 41, United 
     States Code, as added by paragraph (1), shall apply with 
     respect to contracts awarded pursuant to solicitations issued 
     after the effective date described in section 1098(b)(2) of 
     this subtitle.
       (b) Defense Contracts.--
       (1) In general.--Chapter 137 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2338. Prohibition on criminal history inquiries by 
       contractors prior to conditional offer

       ``(a) Limitation on Criminal History Inquiries.--
       ``(1) In general.--Except as provided in paragraphs (2) and 
     (3), the head of an agency--
       ``(A) may not require that an individual or sole proprietor 
     who submits a bid or competitive proposal for a contract to 
     disclose criminal history record information regarding that 
     individual or sole proprietor before determining the apparent 
     awardee; and
       ``(B) shall require as a condition of receiving a Federal 
     contract and receiving payments under such contract that the 
     contractor may not verbally or through written form request 
     the disclosure of criminal history record information 
     regarding an applicant for a position related to work under 
     such contract before such contractor extends a conditional 
     offer to the applicant.
       ``(2) Otherwise required by law.--The prohibition under 
     paragraph (1) does not apply with respect to a contract if 
     consideration of criminal history record information prior to 
     a conditional offer with respect to the position is otherwise 
     required by law.
       ``(3) Exception for certain positions.--
       ``(A) In general.--The prohibition under paragraph (1) does 
     not apply with respect to--
       ``(i) a contract that requires an individual hired under 
     the contract to access classified information or to have 
     sensitive law enforcement or national security duties; or
       ``(ii) a position that the Secretary of Defense identifies 
     under the regulations issued under subparagraph (B).
       ``(B) Regulations.--
       ``(i) Issuance.--Not later than 16 months after the date of 
     enactment of the Fair Chance to Compete for Jobs Act of 2016, 
     the Secretary of Defense, in consultation with the 
     Administrator of General Services, shall issue regulations 
     identifying additional positions with respect to which the 
     prohibition under paragraph (1) shall not apply, giving due 
     consideration to positions that involve interaction with 
     minors, access to sensitive information, or managing 
     financial transactions.
       ``(ii) Compliance with civil rights laws.--The regulations 
     issued under clause (i) shall--

       ``(I) be consistent with, and in no way supersede, 
     restrict, or limit the application of title VII of the Civil 
     Rights Act of 1964 (42 U.S.C. 2000e et seq.) or other 
     relevant Federal civil rights laws; and
       ``(II) ensure that all hiring activities conducted pursuant 
     to the regulations are conducted in a manner consistent with 
     relevant Federal civil rights laws.

       ``(b) Complaint Procedures.--The Secretary of Defense shall 
     establish and publish procedures under which an applicant for 
     a position with a Department of Defense contractor may submit 
     a complaint, or any other information, relating to compliance 
     by the contractor with subsection (a)(1)(B).
       ``(c) Action for Violations of Prohibition on Criminal 
     History Inquiries.--
       ``(1) First violation.--If the Secretary of Defense 
     determines that a contractor has violated subsection 
     (a)(1)(B), the Secretary shall--
       ``(A) notify the contractor;
       ``(B) provide 30 days after such notification for the 
     contractor to appeal the determination; and
       ``(C) issue a written warning to the contractor that 
     includes a description of the violation and the additional 
     remedies that may apply for subsequent violations.
       ``(2) Subsequent violations.--If the Secretary of Defense 
     determines that a contractor that was subject to paragraph 
     (1) has committed a subsequent violation of subsection 
     (a)(1)(B), the Secretary shall notify the contractor, shall 
     provide 30 days after such notification for the contractor to 
     appeal the determination, and, in consultation with the 
     relevant Federal agencies, may take actions, depending on the 
     severity of the infraction and the contractor's history of 
     violations, including--
       ``(A) providing written guidance to the contractor that the 
     contractor's eligibility for contracts requires compliance 
     with this section;
       ``(B) requiring that the contractor respond within 30 days 
     affirming that the contractor is taking steps to comply with 
     this section; and
       ``(C) suspending payment under the contract for which the 
     applicant was being considered until the contractor 
     demonstrates compliance with this section.
       ``(d) Rules of Construction.--Nothing in this section may 
     be construed to--
       ``(1) prohibit an agency from procuring a consumer report 
     (as defined in section 603 of the Fair Credit Reporting Act 
     (15 U.S.C. 1681a)) furnished by a consumer reporting agency 
     (as defined in such section 603) in accordance with that Act; 
     or
       ``(2) authorize an agency to prohibit a contractor, as a 
     condition of receiving a Federal contract and receiving 
     payments under such contract, from procuring a consumer 
     report (as defined in section 603 of the Fair Credit 
     Reporting Act (15 U.S.C. 1681a)) furnished by a consumer 
     reporting agency (as defined in such section 603) in 
     accordance with that Act.
       ``(e) Definitions.--In this section:
       ``(1) Conditional offer.--The term `conditional offer' 
     means an offer of employment for a position related to work 
     under a contract that is conditioned upon the results of a 
     criminal history inquiry.
       ``(2) Criminal history record information.--The term 
     `criminal history record information' has the meaning given 
     that term in section 9201 of title 5.''.
       (2) Effective date.--Section 2338(a) of title 10, United 
     States Code, as added by paragraph (1), shall apply with 
     respect to contracts awarded pursuant to solicitations issued 
     after the effective date described in section 1098(b)(2) of 
     this subtitle.
       (3) Clerical amendment.--The table of sections at the 
     beginning of chapter 137 of such title is amended by 
     inserting after the item relating to section 2337 the 
     following new item:

``2338. Prohibition on criminal history inquiries by contractors prior 
              to conditional offer.''.
       (c) Revisions to Federal Acquisition Regulation.--
       (1) In general.--Not later than 18 months after the date of 
     enactment of this Act, the Federal Acquisition Regulatory 
     Council shall revise the Federal Acquisition Regulation to 
     implement section 4713 of title 41, United States Code, and 
     section 2338 of title 10, United States Code, as added by 
     this section.
       (2) Consistency with office of personnel management 
     regulations.--The Federal Acquisition Regulatory Council 
     shall revise the Federal Acquisition Regulation under 
     paragraph (1) to be consistent with the regulations issued by 
     the Director of the Office of Personnel Management under 
     section 1098(b)(1) to the maximum extent practicable. The 
     Council shall include together with such revision an 
     explanation of any substantive modification of the Office of 
     Personnel Management regulations, including an explanation of 
     how such modification will more effectively implement the 
     rights and protections under this section.

     SEC. 1099A. REPORT ON EMPLOYMENT OF INDIVIDUALS FORMERLY 
                   INCARCERATED IN FEDERAL PRISONS.

       (a) Definition.--In this section, the term ``covered 
     individual''--
       (1) means an individual who has completed a term of 
     imprisonment in a Federal prison for a Federal criminal 
     offense; and
       (2) does not include an alien who is or will be removed 
     from the United States for a violation of the immigration 
     laws (as such term is defined in section 101 of the 
     Immigration and Nationality Act (8 U.S.C. 1101)).
       (b) Study and Report Required.--The Director of the Bureau 
     of Justice Statistics, in coordination with the Director of 
     the Bureau of the Census, shall--
       (1) not later than 6 months after the date of enactment of 
     this Act, design and initiate a study on the employment of 
     covered individuals after their release from Federal prison, 
     including by collecting--
       (A) demographic data on covered individuals, including 
     race, age, and sex; and
       (B) data on employment and earnings of covered individuals 
     who are denied employment, including the reasons for the 
     denials; and
       (2) not later than 2 years after the date of enactment of 
     this Act, and every 5 years thereafter, submit a report that 
     does not include any personally identifiable information on 
     the study conducted under paragraph (1) to--
       (A) the Committee on Homeland Security and Governmental 
     Affairs of the Senate;
       (B) the Committee on Health, Education, Labor, and Pensions 
     of the Senate;
       (C) the Committee on Oversight and Government Reform of the 
     House of Representatives; and
       (D) the Committee on Education and the Workforce of the 
     House of Representatives.
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