[Congressional Record (Bound Edition), Volume 160 (2014), Part 13]
[Senate]
[Pages 18953-18954]
[From the U.S. Government Publishing Office, www.gpo.gov]




     SECURITY CLEARANCE ACCOUNTABILITY, REFORM, AND ENHANCEMENT ACT

  Mr. WALSH. I ask unanimous consent that the Senate proceed to the 
consideration of Calendar No. 606, S. 1744.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (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.

  There being no objection, the Senate proceeded to consider the bill, 
which had been reported from the Committee on Homeland Security and 
Governmental Affairs, with an amendment and an amendment to the title.
  (Strike out all after the enacting clause and insert the part printed 
in italic.)

     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

[[Page 18954]]

     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.
  Mr. WALSH. I ask unanimous consent that the committee-reported 
substitute amendment be agreed to, the bill, as amended, be read a 
third time, and the Senate proceed to vote on passage of the bill, as 
amended.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The committee-reported amendment in the nature of a substitute was 
agreed to.
  The bill was ordered to be engrossed for a third reading and was read 
the third time.
  The PRESIDING OFFICER. The bill having been read the third time, the 
question is, Shall it pass?
  The bill (S. 1744), as amended, was passed.
  Mr. WALSH. I ask unanimous consent that the committee-reported title 
amendment be agreed to and the motions to reconsider be considered made 
and laid upon the table with no intervening action or debate.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The committee-reported title amendment was agreed to, as follows:

       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.''.

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