[Congressional Record (Bound Edition), Volume 162 (2016), Part 10]
[Senate]
[Pages 14547-14549]
[From the U.S. Government Publishing Office, www.gpo.gov]




 SECURITY CLEARANCE ACCOUNTABILITY, REFORM, AND ENHANCEMENT ACT OF 2015

  Mr. McCONNELL. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of Calendar No. 453, S. 434.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The senior assistant legislative clerk read as follows:


[[Page 14548]]

       A bill (S. 434) 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.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. McCONNELL. Mr. President, I further ask unanimous consent that 
the bill be read a third time and passed and the motion 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 bill (S. 434) was ordered to be engrossed for a third reading, 
was read the third time, and passed, as follows:

                                 S. 434

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Security Clearance 
     Accountability, Reform, and Enhancement Act of 2015''.

     SEC. 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.

  TITLE I--SECURITY CLEARANCE ACCOUNTABILITY, REFORM, AND ENHANCEMENT

     SEC. 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.

     SEC. 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).

     SEC. 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.

[[Page 14549]]



      TITLE II--PREVENTING CONFLICTS OF INTEREST WITH CONTRACTORS

     SEC. 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.

     SEC. 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.

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