Independent Counsel Accountability and Reform Act of 1997

Independent Counsel Accountability and Reform Act of 1997 - Amends the Federal judicial code to: (1) extend the termination date of the independent counsel statute (the Act) until five years after enactment of this Act; (2) provide that one member of the division of the United States Court of Appeals for the District of Columbia that appoints independent counsels must have been appointed to the Federal bench by a President of a different political party than the President who appointed the other two members; (3) grant the District Court of the District of Columbia jurisdiction over members of such division on matters regarding the appointment or activities of an independent counsel; and (4) require that the division of the court appointed by the Chief Justice to appoint independent counsels comply with the Code of Conduct for United States Judges.

Sets forth provisions regarding ex parte communications, limits on initial investigations, and factors to be considered in appointing independent counsels (including conflicts of interest).

(Sec. 4) Revises provisions establishing the basis for a preliminary investigation to: (1) direct the Attorney General (AG) to conduct a preliminary investigation upon receiving information sufficient to constitute grounds to investigate whether specified high level officials may have violated any Federal felony or Federal misdemeanor for which there is an established practice of prosecution while in office (currently, any Federal criminal law other than a violation classified as a Class B or Class C misdemeanor infraction); and (2) require that the AG receive specific information from a credible source in order to conduct a preliminary investigation into whether a person covered by the Act has violated specified criminal laws where an investigation or prosecution of a person by the Department of Justice may result in a personal, financial, or political conflict of interest. Authorizes the AG to issue subpoenas duces tecum in conducting preliminary investigations.

(Sec. 6) Bars the AG from basing a determination that there are no reasonable grounds to warrant further investigation upon a determination that such person lacked the state of mind required for the violation involved unless there is a preponderance of the evidence (currently, clear and convincing evidence) that the person lacked such state of mind.

(Sec. 7) Requires the division to: (1) define with specificity the independent counsel's prosecutorial jurisdiction; (2) assure that the independent counsel has adequate authority to fully investigate and prosecute the alleged criminal law violations with respect to which the AG has requested the appointment, as well as matters directly related to such violations; and (3) award attorney's fees at the request of a witness in an investigation conducted by an independent counsel under specified circumstances, and when an individual is acquitted of all charges or no conviction is obtained against such individual, or when a conviction at trial is overturned on appeal.

(Sec. 9) Authorizes an independent counsel to consult with the appropriate components of the Department on Department policies and practices as long as such consultation does not compromise the independent counsel's independence.

(Sec. 10) Requires an independent counsel to: (1) comply with Department policies concerning the release of information relating to criminal proceedings; and (2) limit office expenditures to a two-year period, unless an appropriations Act specifically makes funds available for such expenditures after the end of such period.

Modifies provisions regarding oversight of the conduct of an independent counsel to specify that the independent counsel's annual report to the Congress: (1) need not contain information which would compromise or undermine the confidentiality of an ongoing independent counsel investigation, adversely affect the outcome of an independent counsel prosecution, or violate any individual's personal privacy (current law allows omission of any matter that in the independent counsel's judgment should be kept confidential); and (2) shall indicate in general terms the state of the independent counsel's work.

Revises provisions concerning the removal, termination, and periodic reappointment of an independent counsel, including authorizing the division to terminate an office of independent counsel upon the petition of the subject of an investigation conducted by such independent counsel if the petition is made more than two years after the appointment under specified circumstances.

(Sec. 12) Amends the Act to grant certain job protections to individuals under investigation, except where such individuals have been convicted of a criminal offense pursuant to the investigation or prosecution, unless such conviction is overturned on appeal. Authorizes individuals with respect to whom a prohibited personnel practice applies to seek corrective action from the Merit Systems Protection Board.

(Sec. 13) Directs the Comptroller General to submit to the Congress, within one year, a report setting forth recommendations of ways to improve controls on costs of offices of independent counsel.