[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5240 Introduced in House (IH)]

113th CONGRESS
  2d Session
                                H. R. 5240

 To reform classification and security clearance processes throughout 
the Federal Government and, within the Department of Homeland Security, 
to establish an effective and transparent process for the designation, 
  investigation, adjudication, denial, suspension, and revocation of 
              security clearances, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 29, 2014

 Mr. Thompson of Mississippi introduced the following bill; which was 
 referred to the Committee on Oversight and Government Reform, and in 
 addition to the Committees on Homeland Security, Select Intelligence 
(Permanent Select), and the Judiciary, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To reform classification and security clearance processes throughout 
the Federal Government and, within the Department of Homeland Security, 
to establish an effective and transparent process for the designation, 
  investigation, adjudication, denial, suspension, and revocation of 
              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,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Clearance and 
Over-Classification Reform and Reduction Act'' or the ``CORRECT Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
       TITLE I--REFORMS TO CLASSIFICATION AND CLEARANCE PROCESSES

                Subtitle A--Reducing Over-Classification

Sec. 101. Trend information on classified information and third 
                            evaluations.
Sec. 102. Uniformity in sampling.
Sec. 103. Ten percent reduction in holdings of classified information.
Sec. 104. Status update on efforts at reducing holdings of classified 
                            information.
Sec. 105. Report.
Sec. 106. Public Interest Declassification Board enhancements.
Sec. 107. Classification designation training.
Sec. 108. Reducing over-classification guidance.
                   Subtitle B--Governmentwide Reforms

Sec. 111. Sense of Congress.
Sec. 112. Report on certain designations.
Sec. 113. Transparency and accountability in personnel security 
                            investigations.
Sec. 114. Continuous evaluation programs and insider threat programs.
Sec. 115. Mitigating factors in the context of a continuous evaluation 
                            program or insider threat program.
Sec. 116. Appeal to the Merit Systems Protection Board.
Sec. 117. Automated or nongovernmental adjudication prohibited.
Sec. 118. Report on media contacts policy for intelligence personnel.
  TITLE II--DEPARTMENT OF HOMELAND SECURITY CLEARANCE PROCESS REFORMS

                        Subtitle A--Designation

Sec. 201. Designation of national security sensitive and public trust 
                            positions.
Sec. 202. Audits.
Sec. 203. Review of position designations.
                       Subtitle B--Investigation

Sec. 211. Investigation services provider performance.
Sec. 212. Metrics.
                        Subtitle C--Adjudication

Sec. 221. Uniform adjudication standards.
         Subtitle D--Denial, Suspension, Revocation, and Appeal

Sec. 231. Uniform revocation criteria and procedures.
Sec. 232. Annual reporting.
Sec. 233. Final appeals panel.
                  Subtitle E--Miscellaneous Provisions

Sec. 241. Intelligence Reform and Terrorism Prevention Act of 2004 
                            review and security clearance reciprocity.
Sec. 242. Office of Inspector General report.
Sec. 243. Penalties for falsification relating to an investigation 
                            file.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Chief security officer.--The term ``Chief Security 
        Officer'' means the Classified Information Advisory Officer of 
        the Department of Homeland Security (identified and designated 
        pursuant to section 210F of the Homeland Security Act of 2002 
        (6 U.S.C. 124m)).
            (2) Intelligence reform and terrorism prevention act 
        terms.--The terms ``agency'', ``authorized investigative 
        agency'', ``authorized adjudicative agency'', ``current 
        investigation file'', ``periodic reinvestigations'', and 
        ``personnel security investigation'' have the meanings given 
        those terms in section 3001(a) of the Intelligence Reform and 
        Terrorism Prevention Act of 2004 (50 U.S.C. 3341(a)).
            (3) Investigation service provider.--The term 
        ``investigation service provider'' means the Office of 
        Personnel Management and any other entity that undertakes 
        investigative services, including criminal record checks, 
        financial record checks, field interviews, employment review, 
        and education verifications, for an investigation file for a 
        national security position.
            (4) National security position.--The term ``national 
        security position'' has the meaning given that term in section 
        732.102 of title 5, Code of Federal Regulations.

       TITLE I--REFORMS TO CLASSIFICATION AND CLEARANCE PROCESSES

                Subtitle A--Reducing Over-Classification

SEC. 101. TREND INFORMATION ON CLASSIFIED INFORMATION AND THIRD 
              EVALUATIONS.

    Subsection (b) of section 6 of the Reducing Over-Classification Act 
(50 U.S.C. 3161 note; Public Law 111-258) is amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A)--
                            (i) by striking ``2016'' and inserting 
                        ``2019''; and
                            (ii) by striking ``no less than two'' and 
                        inserting ``not fewer than three'';
                    (B) in subparagraph (A), by striking ``and'' at the 
                end;
                    (C) in subparagraph (B), by striking the period at 
                the end and inserting ``; and''; and
                    (D) by adding after subparagraph (B) the following 
                new subparagraph:
                    ``(C) beginning with the second evaluation under 
                paragraph (2)(B), to assess, with respect to 
                subparagraph (A) of this paragraph, the degree to which 
                the incentives for accurate classification decisions 
                referred to in subsection (a) have been utilized, and 
                the extent to which the use of such incentives, 
                including cash incentives or other alternative, non-
                cash awards, has improved the accuracy of original 
                classification decisions or derivative classification 
                decisions and a reduction in classified information.'';
            (2) in paragraph (2), by adding at the end the following 
        new subparagraph:
                    ``(C) Third evaluations.--Each third evaluation 
                required by paragraph (1) shall review progress made 
                since the second evaluation and the adequacy of the 
                records to support each self-inspection program 
                determination in accordance with subsection (c), and 
                assess such department or agency's procedures and 
                activities regarding classification challenges. 
                Specifically, each third evaluation shall--
                            ``(i)(I) assess implementation of 
                        procedures by such department or agency to 
                        encourage authorized holders of classified 
                        information, including authorized holders 
                        outside the classifying agency, to challenge 
                        the classification of information that they 
                        believe is improperly classified or 
                        unclassified, as required by section 1.8 of 
                        Executive Order 13526 (50 U.S.C. 3161 note) or 
                        successor order, and the degree to which such 
                        department or agency makes each authorized 
                        holder of classified information aware of the 
                        procedures and encourages such holders to 
                        challenge the classification of information 
                        that they believe is improperly classified or 
                        unclassified; and
                            ``(II) to the extent practicable, review 
                        data reflecting the disposition of challenges 
                        received by such department or agency, 
                        including how often such challenges resulted in 
                        a change in classification;
                            ``(ii) review the degree to which 
                        information that was declassified was 
                        determined by the agency to be of extraordinary 
                        public interest that does not undermine the 
                        national security of the United States, 
                        including information on the number of national 
                        security positions (pursuant to section 732 of 
                        title 5, Code of Federal Regulations), by 
                        classification level, that are designated 
                        within the agency during that period; and
                            ``(iii) shall be completed not later than 
                        September 30, 2019.''; and
            (3) in paragraph (3)(B)--
                    (A) in clause (i), by striking ``and'' at the end;
                    (B) in clause (ii), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding after clause (ii) the following new 
                clause:
                            ``(iii) information relating to the 
                        assessment required under paragraph (1)(C).''.

SEC. 102. UNIFORMITY IN SAMPLING.

    Section 6 of the Reducing Over-Classification Act (50 U.S.C. 3161 
note; Public Law 111-258) is amended by adding at the end the following 
new subsection:
    ``(c) Uniformity in Sampling.--The President, acting through the 
Director of the Information Security Oversight Office, shall issue a 
standardized sampling technique for department and agency self-
inspection programs as required pursuant to Executive Order 13526 (50 
U.S.C. 3161 note) in order to address any vulnerabilities in such 
programs.''.

SEC. 103. TEN PERCENT REDUCTION IN HOLDINGS OF CLASSIFIED INFORMATION.

    Section 6 of the Reducing Over-Classification Act (50 U.S.C. 3161 
note; Public Law 111-258), as amended by section 102 of this Act, is 
further amended by adding at the end the following new subsection:
    ``(d) Ten Percent Reduction in Holding of Classified Information.--
The President shall establish goals for reducing, by the date that is 
not later than five years after the date of the enactment of this 
subsection, classified information, through declassification and 
improved original and derivative classification decisionmaking, by not 
less than ten percent as compared to the amount of such information as 
of the day before such date. For purposes of this subsection, 
classified information that would otherwise be declassified pursuant to 
Executive Order 13526 (50 U.S.C. 3161 note) shall not count towards 
such ten percent requirement.''.

SEC. 104. STATUS UPDATE ON EFFORTS AT REDUCING HOLDINGS OF CLASSIFIED 
              INFORMATION.

    Section 704(d)(1) of the Public Interest Declassification Act of 
2000 (50 U.S.C. 3161 note; Public Law 106-567) is amended by striking 
the period and inserting ``and information on the status of efforts, to 
the extent practicable on an agency-by-agency basis, at reducing the 
holding of classified information pursuant to section 6(d) of the 
Reducing Over-Classification Act (50 U.S.C. 3161 note; Public Law 111-
258).''.

SEC. 105. REPORT.

    Section 6 of the Reducing Over-Classification Act (50 U.S.C. 3161 
note; Public Law 111-258), as amended by sections 102 and 103 of this 
Act, is further amended by adding at the end the following new 
subsection:
    ``(e) Report.--The Inspector General of each department or agency 
of the United States with an officer or employee who is authorized to 
make original and derivative classification decisions shall submit to 
the appropriate entities (as such term is defined in subsection (b)(4)) 
a report relating to progress accomplished under subsections (c) and 
(d).''.

SEC. 106. PUBLIC INTEREST DECLASSIFICATION BOARD ENHANCEMENTS.

    (a) Reviews of Classification Guidance.--Subsections (a) and (b) of 
section 704 of the Public Interest Declassification Act of 2000 (50 
U.S.C. 3161 note; Public Law 106-567) are amended to read as follows:
    ``(a) Agency Declassification Programs and Classification 
Guidance.--
            ``(1) Declassification programs.--
                    ``(A) Report.--The head of any agency with the 
                authority under an Executive order to classify 
                information shall annually provide to the Board, the 
                Select Committee on Intelligence of the Senate, and the 
                Permanent Select Committee on Intelligence of the House 
                of Representatives a summary briefing and report on the 
                progress and plans of such agency in the 
                declassification of national security information.
                    ``(B) Contents.--Each briefing and report required 
                under subparagraph (A) shall--
                            ``(i) cover the declassification goals set 
                        by statute, regulation, or policy, the progress 
                        of the agency towards completing such goals, 
                        and the planned goals and priorities of the 
                        agency for its declassification activities over 
                        the 2 fiscal years following the report;
                            ``(ii) give particular attention to 
                        progress on the declassification of records and 
                        materials that are of extraordinary public 
                        interest to the people of the United States; 
                        and
                            ``(iii) include information on the 
                        disposition of recommendations regarding 
                        Special Searches for Records of Extraordinary 
                        Public Interest submitted pursuant to section 
                        704(c).
                    ``(C) Consolidated report.--The annual briefing and 
                report under paragraph (1) for agencies within the 
                Department of Defense, including the military 
                departments and the elements of the intelligence 
                community (as defined in section 3(4) of the National 
                Security Act of 1947 (50 U.S.C. 3003(4))), shall be 
                provided on a consolidated basis.
            ``(2) Review of classification guidance.--The Board shall, 
        on an ongoing basis, review classification guidance required 
        pursuant to Executive Order 13526 (50 U.S.C. 3161 note) or any 
        successor order utilized within each agency to assess--
                    ``(A) the validity of the national security basis 
                for each instruction in the classification guidance;
                    ``(B) the clarity of each instruction within the 
                classification guidance to ensure that only the minimum 
                necessary information is classified; and
                    ``(C) the feasibility of narrowing or eliminating 
                any classification guidance that is unnecessary or 
                obsolete.
            ``(3) Plan for reviewing classification guidance.--Not 
        later than 90 days after the date of the enactment of the 
        Clearance and Over-Classification Reform and Reduction Act, the 
        Chairperson of the Board shall submit a multi-year plan for 
        reviewing classification guidance utilized within each agency, 
        with benchmarks for when and, to the extent practicable, which 
        classification guidance will be reviewed and how the findings 
        will be shared with the head of each agency and the inspector 
        general of each agency.
            ``(4) Recommendations for harmonizing and reducing 
        classification guidance.--Not later than one year after the 
        date of the enactment of the Clearance and Over-Classification 
        Reform and Reduction Act, the Chairperson of the Board shall 
        submit recommendations for harmonizing and reducing 
        classification guidance across the Federal Government to the 
        President.
    ``(b) Recommendations on Agency Declassification Programs and 
Classification Guidance.--
            ``(1) In general.--Upon reviewing classification guidance 
        and discussing declassification plans and progress with an 
        agency, the Board shall provide to the head of that agency, the 
        Director of the Office of Management and Budget, and the 
        Assistant to the President for National Security Affairs the 
        written recommendations of the Board as to how the 
        classification guidance and declassification program of the 
        agency could be improved.
            ``(2) Public availability.--Not later than 60 days after 
        the Board provides written recommendations to the head of an 
        agency in accordance with paragraph (1), the Board shall make 
        such recommendations public in accordance with subsection 
        (k).''.
    (b) Staff and Detailees.--Subsection (f) of section 703 of such Act 
is amended to read as follows:
    ``(f) Director and Staff.--
            ``(1) Director.--The Chairperson of the Board, in 
        accordance with rules agreed upon by the Board, shall appoint 
        and fix the compensation of a Director, except that no rate of 
        pay fixed under this paragraph may exceed the equivalent of 
        that payable for a position at level V of the Executive 
        Schedule under section 5316 of title 5, United States Code.
            ``(2) Staff.--The Chairperson of the Board, in accordance 
        with rules agreed upon by the Board, may appoint and fix the 
        pay of personnel as may be necessary to enable the Board to 
        carry out its functions.
            ``(3) Applicability of certain civil service laws.--The 
        Director and staff may be appointed without regard to the 
        provisions of title 5, United States Code, governing 
        appointments in the competitive service, and may be paid 
        without regard to the provisions of chapter 51 and subchapter 
        III of chapter 53 of such title relating to classification and 
        General Schedule pay rates.
            ``(4) Detailees.--Any employee of the Federal Government 
        may be detailed to the Board with the agreement of, and without 
        reimbursement to, the detailing agency, and such detail shall 
        be without interruption or loss of civil, military, or foreign 
        service status or privilege.''.
    (c) Compensation and Travel Expenses.--Subsection (h) of section 
703 of such Act is amended to read as follows:
    ``(h) Compensation and Travel Expenses.--
            ``(1) Compensation.--
                    ``(A) Chairperson.--The Chairperson of the Board 
                shall be compensated at the rate of pay payable for a 
                position at level III of the Executive Schedule under 
                section 5314 of title 5, United States Code.
                    ``(B) Members.--Each member of the Board shall be 
                compensated at a rate of pay payable for a position at 
                level IV of the Executive Schedule under section 5315 
                of such title, for each day during which that member is 
                engaged in the actual performance of the duties of the 
                Board.
            ``(2) Travel expenses.--Members of the Board shall receive 
        travel expenses, including per diem in lieu of subsistence, in 
        accordance with applicable provisions under subchapter I of 
        chapter 57 of title 5, United States Code.''.
    (d) Public Meetings.--Section 704(c) of such Act is amended by 
adding at the end the following new paragraph:
    ``(3) In carrying out this subsection, the Board shall conduct 
public meetings on at least a semiannual basis and publish in the 
Federal Register notice of such meetings.''.
    (e) Extension of Sunset.--Subsection (b) of section 710 of such Act 
is amended by striking ``2018'' and inserting ``2024''.

SEC. 107. CLASSIFICATION DESIGNATION TRAINING.

    Section 7 of the Reducing Over-Classification Act (50 U.S.C. 3344; 
Public Law 111-258) is amended--
            (1) in subsection (a), in the matter preceding paragraph 
        (1)--
                    (A) in the first sentence, by inserting ``, 
                including computer-based training,'' after ``annual 
                training''; and
                    (B) in the second sentence, by inserting ``such'' 
                before ``training''; and
            (2) by adding at the end the following new subsection:
    ``(c) Recordkeeping.--The head of each Executive agency shall 
maintain records and make such records available to the inspector 
general of each such agency of the extent to which training required 
under this section is completed by each employee subject to such 
training.''.

SEC. 108. REDUCING OVER-CLASSIFICATION GUIDANCE.

    The Secretary of Homeland Security shall develop and disseminate to 
components of the Department of Homeland Security and make available to 
other agencies guidance on best practices and strategies to implement 
the Reducing Over-Classification Act (Public Law 111-258), as amended 
by this Act. Such guidance shall include information on the following:
            (1) Administrative approaches, including the establishment 
        of internal quarterly meetings and working groups to carry out 
        the requirements of the Reducing Over-Classification Act 
        (Public Law 111-258).
            (2) Consolidation of information security policies 
        throughout an agency.
            (3) Provision of training, including in-person initial 
        training and computer-based recurrent training, in accordance 
        with section 7 of the Reducing Over-Classification Act, as 
        amended by section 105 of this Act.
            (4) Adoption of uniform formats for the preparation, 
        production, or publication of classified information.
            (5) Ways to encourage an authorized holder of classified 
        information to challenge the classification of information that 
        such holder believes is improperly classified or unclassified, 
        as required by section 1.8 of Executive Order 13526 (50 U.S.C. 
        3161 note) or successor order.

                   Subtitle B--Governmentwide Reforms

SEC. 111. SENSE OF CONGRESS.

    It is the sense of Congress that a position shall only be 
designated as a national security position if access to classified 
information is required or if that position--
            (1) presents a risk of a material adverse effect on the 
        national security (as described in section 732.201 of title 5, 
        Code of Federal Regulations); and
            (2) is determined to be a public trust position (as 
        described in section 731.106 of title 5, Code of Federal 
        Regulations).

SEC. 112. REPORT ON CERTAIN DESIGNATIONS.

    (a) Report.--Not later than 6 months after the date of enactment of 
this Act and biannually thereafter, the head of each agency with the 
authority to designate a national security position shall submit to 
Congress a report that provides information regarding any national 
security position for which access to classified materials is not 
required and the position is not determined to be a public trust 
position (as described in section 731.106 of title 5, Code of Federal 
Regulations).
    (b) Contents.--The report required under subsection (a) shall 
include--
            (1) a description for the position, including specific 
        information on duties and day-to-day operations;
            (2) the history of the position's national security 
        position designation, including whether the position is newly 
        created or was transferred from another department, division, 
        or program;
            (3) an explanation of the position's national security 
        position designation and whether responsibilities have been 
        added to the position to explain the designation;
            (4) an explanation of the national security implications of 
        the position;
            (5) the advertising and recruitment mechanisms used to fill 
        the position;
            (6) information on the individual who holds the position, 
        including as appropriate, information on periods when the 
        individual had previously held a national security position; 
        and
            (7) demographic information on the individual who holds the 
        position, including age, gender, race, ethnicity, employment 
        status, and geographic location.
    (c) Public Report.--The report required under subsection (a) shall 
be submitted in unclassified form and be made publicly available, but 
may include a classified annex for any sensitive or classified 
information if necessary.

SEC. 113. TRANSPARENCY AND ACCOUNTABILITY IN PERSONNEL SECURITY 
              INVESTIGATIONS.

    (a) In General.--Not later than 120 days after the date of the 
enactment of this Act, the Director of National Intelligence and the 
Director of the Office of Personnel Management shall establish 
requirements for a uniform markings process to identify the 
investigation service provider that originated each piece of 
information in a current investigation file.
    (b) Utilization.--
            (1) In general.--Not later than 90 days after the 
        establishment of the uniform markings process pursuant to 
        subsection (a), investigation service providers shall utilize 
        such uniform markings process and make available, upon request 
        by the authorized adjudicative agency, all documents in a 
        current investigation file.
            (2) Exception.--This subsection shall not apply to a 
        personnel security investigation that an agency conducts using 
        its own personnel, under delegated or statutory authority.

SEC. 114. CONTINUOUS EVALUATION PROGRAMS AND INSIDER THREAT PROGRAMS.

    (a) Findings.--Congress finds the following:
            (1) The term ``continuous evaluation'' as defined in 
        Executive Order 13467, means reviewing the background of an 
        individual who has been determined to be eligible for access to 
        classified information at any time during the period of 
        eligibility.
            (2) Since 1998, at least 10 continuous evaluation pilot 
        studies have been carried out by Federal agencies to monitor 
        the individuals with security clearances on an ongoing basis.
            (3) The Department of Defense has conducted multiple 
        continuous evaluation pilots since early 2002 and has more than 
        one pilot that is ongoing as of July 1, 2014. By October 2014, 
        the Department anticipates 100,000 people to be subject to 
        continuous evaluation with the population steadily rising to 1 
        million by 2017.
            (4) The Office of the Director of National Intelligence 
        plans for all individuals with Top Secret clearances or higher 
        to be subject to continuous evaluation by 2016.
            (5) Since 2010, applicants submitting an application for a 
        security clearance, the Standard Form 86, are required to 
        consent to being monitored through continuous evaluation.
            (6) In February 2014, the Office of Management and Budget 
        issued a 120-day review of Federal employee suitability and 
        contractor fitness determinations as well as security clearance 
        procedures and recommended an accelerated timetable for an 
        integrated solution or continuous evaluation program across all 
        Federal agencies and security levels.
            (7) In addition to continuous evaluation, some Federal 
        agencies are establishing insider threat programs pursuant to 
        Executive Order 13587 (50 U.S.C. 3161 note), which authorized 
        the establishment of insider threat programs to, among other 
        things, identify any Government or contracted employee that may 
        have compromised national security through such employee's work 
        capacity.
            (8) Continuous evaluation and insider threat programs are 
        proliferating throughout the Federal government without 
        requirements for protections to ensure that such programs be 
        designed and implemented in a manner that not only protects 
        national security but also promotes fairness, transparency, and 
        employee protections, including whistleblower protections.
    (b) Requirements.--Not later than 180 days after the date of 
enactment of this Act, the Privacy and Civil Liberties Oversight Board, 
established under section 1061 of the Intelligence Reform and Terrorism 
Prevention Act of 2004 (42 U.S.C. 2000ee), shall publish in the Federal 
Register standards for the protection of national security and 
promotion of fairness, transparency, and employee protections, 
including safeguards to preserve the rights and confidentiality of 
whistleblowers with respect to the operation of a continuous evaluation 
program and the operation of an insider threat program by a Federal 
agency.
    (c) Certification.--
            (1) In general.--Not later than 90 days after the date of 
        publication of the standards under subsection (b), the head of 
        any agency that is operating a continuous evaluation program or 
        insider threat program as of the date of the enactment of this 
        Act shall--
                    (A) certify whether such program is in compliance 
                with the standards established under subsection (b); 
                and
                    (B) publish such certification in the Federal 
                Register.
            (2) Suspension or program.--Any such head who certifies 
        that a continuous evaluation program or insider threat program 
        does not meet such standards or who fails to publish a 
        certification of compliance pursuant to paragraph (1) shall 
        suspend the program until such program is compliant and 
        certification of compliance is published in the Federal 
        Register.
    (d) Report.--The head of any agency that is operating a continuous 
evaluation program or insider threat program as of the date of 
enactment of this Act shall annually submit to Congress a report that 
includes the following information:
            (1) The number of individuals in the agency subject to the 
        continuous evaluation program or insider threat program.
            (2) The number of individuals in the agency whose 
        eligibility for access to classified information was suspended 
        or revoked as a result of information acquired through the 
        continuous evaluation program or insider threat program.
            (3) The total number of individuals in the agency who are 
        eligible to access classified information.
            (4) Demographic information on each individual whose 
        eligibility for access to classified information was changed as 
        a result of information collected through the continuous 
        evaluation program or insider threat program, including age, 
        race, gender, and ethnicity.
            (5) A description of the mechanisms used to conduct the 
        evaluations, including how individuals were selected, whether 
        the evaluations were randomized, and if so, the nature of the 
        randomization, including the degree to which it was temporally 
        randomized and the degree to which the selection of individuals 
        subject to the program was randomized.
            (6) A description of the types of information that were 
        captured through the continuous evaluation program or insider 
        threat program and were the basis for further investigation.
            (7) The frequency that information captured through the 
        continuous evaluation program or insider threat program was the 
        basis for further investigation.
            (8) Information on any individual whose eligibility for 
        access to classified information was changed as a result of 
        information collected through the continuous evaluation program 
        or insider threat program, including the clearance level of 
        each impacted individual and what position, if any, the 
        individual holds within the agency, number of years the 
        individual has been eligible to access classified information 
        at the level held at the time that the individual was subject 
        to the continuous evaluation program or insider threat program 
        and, if available, the frequency that classified information 
        was accessed by each such individual.
            (9) Identification of each database that was accessed.
            (10) Protocols for resolution of information captured 
        through the continuous evaluation program or insider threat 
        program that was the basis for further investigation, including 
        the provision of notification to the impacted individual's 
        supervisor and the impacted individual.
            (11) Information on any specific instance in which the 
        continuous evaluation program or insider threat program 
        resulted in the protection of classified information and 
        national security.
            (12) Information on the annual and life-cycle costs of the 
        continuous investigation or insider threat program and, in the 
        event that the head of the agency intends to expand the 
        program, information on the anticipated costs of expansion.
    (e) Pilot Program.--The head of any agency that establishes a 
continuous evaluation program after the date of the enactment of this 
Act shall be subject to the following requirements:
            (1) Before initiating a continuous evaluation program or 
        insider threat program, such head shall conduct a pilot 
        continuous evaluation program or pilot insider threat program 
        that is not shorter than 120 days in duration and uses a 
        representative sample of individuals eligible for access to 
        classified information, including individuals employed by 
        contractors. Participants in the program shall receive 
        notification and, in the event that derogatory information is 
        identified through the program that results in changes to such 
        participant's eligibility for access to classified information, 
        shall be provided access to the redress process described under 
        section 116.
            (2) Before conducting a pilot continuous evaluation program 
        or pilot insider threat program under paragraph (1), such head 
        shall publish, in the Federal Register, a notice of the program 
        that provides information on the provisions of the program, 
        metrics for evaluating its efficacy, and a privacy impact 
        assessment.
            (3) Not later than 90 days after the initiation of a pilot 
        continuous evaluation program or pilot insider threat program 
        pursuant to paragraph (1), such head shall submit to Congress a 
        preliminary report that includes--
                    (A) the number of individuals evaluated under the 
                program;
                    (B) the total number of individuals in the agency 
                who are eligible to access classified information;
                    (C) demographics of the individuals evaluated under 
                the program, including age, race, gender, ethnicity, 
                employer, clearance level, and the number of years the 
                individual has been eligible to access classified 
                information;
                    (D) a position description for each individual 
                evaluated under the program;
                    (E) a description of the mechanisms used to conduct 
                the evaluations, including how individuals were 
                selected, whether the evaluations were randomized, and 
                if so, the nature of the randomization, including the 
                degree to which it was temporally randomized and the 
                degree to which the selection of individuals subject to 
                the program was randomized;
                    (F) a description of the types of information that 
                were captured through the program and were the basis 
                for further investigation;
                    (G) the frequency that information captured through 
                the program was the basis for further investigation; 
                and
                    (H) information on the number of individuals whose 
                eligibility for access to classified information was 
                changed as a result of information collected through 
                the program.
            (4) Not later than 180 days after the conclusion of a pilot 
        continuous evaluation program or pilot insider threat program 
        pursuant to paragraph (1) or expansion of a pilot continuous 
        evaluation program or pilot insider threat program, such head 
        shall submit to Congress a final report that updates the 
        information required in the preliminary report under paragraph 
        (3). The report shall include--
                    (A) an identification of each database that was 
                accessed;
                    (B) protocols for resolution of information 
                captured through the program that was the basis for 
                further investigation, including the provision of 
                notification to the impacted individual's supervisor 
                and the impacted individual;
                    (C) information on any specific instance in which 
                continuous evaluation resulted in the protection of 
                classified information and national security; and
                    (D) information regarding the annual and life-cycle 
                costs of the program and, in the event that such head 
                intends to expand the program or initiate a continuous 
                evaluation program or insider threat program, 
                information on the anticipated costs of an expansion or 
                initiation.
            (5) Prior to expanding a pilot continuous evaluation 
        program or insider threat program or initiating a continuous 
        evaluation program or insider threat program, such head shall 
        secure a privacy impact assessment from the top privacy and 
        civil liberties officials at such agency.
    (f) Unclassified Reports.--All reports required under this section 
shall be submitted in unclassified form and be made publicly available, 
but may include a classified annex if necessary.
    (g) Limitation on Data Collection.--Not later than 180 days after 
the date of enactment of this Act, the head of an agency that operates 
a continuous evaluation program shall ensure that data collection under 
the program is limited to databases and other sources of information 
accessed for a periodic reinvestigation as of the date of enactment of 
this Act.
    (h) Definitions.--In this section:
            (1) Continuous evaluation program.--The term ``continuous 
        evaluation program'' means any program continually reviewing 
        the background of an individual who has been determined to be 
        eligible for access to classified information pursuant to 
        Executive Order 12968 (50 U.S.C. 3161 note) or any other 
        similar authority.
            (2) Insider threat program.--The term ``insider threat 
        program'' means any program monitoring the activity of an 
        individual who has been determined to be eligible for access to 
        classified information to improve insider threat detection and 
        prevention pursuant to Executive Order 13587 (50 U.S.C. 3161 
        note), or successor order.

SEC. 115. MITIGATING FACTORS IN THE CONTEXT OF A CONTINUOUS EVALUATION 
              PROGRAM OR INSIDER THREAT PROGRAM.

    (a) Continuous Evaluation.--Not later than 120 days after the date 
of enactment of this Act, for each adjudicative guideline for 
individuals with access to classified information (as described in part 
147 of title 32, Code of Federal Regulations or similar successor 
regulation) the President shall update and tailor the conditions that 
mitigate security concerns to address continuous evaluation of such 
individuals performed pursuant to Executive Order 12968 (50 U.S.C. 3161 
note) or any other authority, including the implications of recency on 
the availability of mitigation.
    (b) Insider Threat Program.--Not later than 240 days after the date 
of enactment of this Act, the President shall establish adjudicative 
guidelines, including conditions that mitigate security concerns that 
consider the implications of recency on the availability of mitigation, 
for an individual who is subject to an adverse decision based on an 
insider threat program established pursuant to Executive Order 13587 
(50 U.S.C. 3161 note) or successor order.

SEC. 116. APPEAL TO THE MERIT SYSTEMS PROTECTION BOARD.

    An employee for whom a final determination of ineligibility for a 
national security position has been made is entitled to appeal to the 
Merit Systems Protection Board under section 7701 of title 5, United 
States Code.

SEC. 117. AUTOMATED OR NONGOVERNMENTAL ADJUDICATION PROHIBITED.

    (a) In General.--An adjudication by an agency that an individual 
may not have access to classified information may only be made by a 
Federal employee and may not be rendered by an automated, electronic, 
or computer system.
    (b) Federal Employee Defined.--In this section, the term ``Federal 
employee'' has the meaning given the term ``employee'' in section 2105 
of title 5, United States Code, and includes any member of the 
uniformed services.

SEC. 118. REPORT ON MEDIA CONTACTS POLICY FOR INTELLIGENCE PERSONNEL.

    Not later than 90 days after the date of the enactment of this Act, 
the head of each element of the intelligence community (as such term is 
defined in section 3(4) of the National Security Act of 1947 (50 U.S.C. 
3003(4))) shall submit to Congress a report on each such element's 
implementation of policy directives regarding contacts with news media 
by intelligence community personnel. Such report shall describe how 
each such element's implementation of such directives protects the free 
speech rights of intelligence community personnel, including 
intelligence community personnel who choose to discuss unclassified 
public policy issues with friends or family members who may use new 
media technologies.

  TITLE II--DEPARTMENT OF HOMELAND SECURITY CLEARANCE PROCESS REFORMS

                        Subtitle A--Designation

SEC. 201. DESIGNATION OF NATIONAL SECURITY SENSITIVE AND PUBLIC TRUST 
              POSITIONS.

    (a) In General.--The Secretary of Homeland Security shall require 
the Department of Homeland Security, including all components of the 
Department, to designate the sensitivity level of national security 
positions (pursuant to part 732 of title 5, Code of Federal 
Regulations, or similar successor regulation) in an accurate and 
consistent manner within the Department, including all such components.
    (b) Implementation.--In carrying out subsection (a), the Secretary 
of Homeland Security shall require the utilization of uniform 
designation tools throughout the Department of Homeland Security, 
including all components of the Department, and provide training to 
appropriate staff of the Department, including staff of all such 
components, on such utilization. Such training shall include guidance 
on factors for determining eligibility for access to classified 
information and facilities with classified information.

SEC. 202. AUDITS.

    Not later than 180 days after the Director of National Intelligence 
and Director of the Office of Personnel Management issue a rule for 
designation of national security positions (pursuant to part 732 of 
title 5, Code of Federal Regulations, or similar successor regulation), 
the Inspector General of the Department of Homeland Security shall 
conduct regular audits of compliance of the Department with such rule.

SEC. 203. REVIEW OF POSITION DESIGNATIONS.

    (a) In General.--The Secretary of Homeland Security, acting through 
the Chief Security Officer of the Department of Homeland Security, 
shall biennially conduct a review of all sensitivity level designations 
of national security positions (pursuant to part 732 of title 5, Code 
of Federal Regulations, or similar successor regulation) at the 
Department.
    (b) Determination.--If during the course of a review required under 
subsection (a) the Secretary of Homeland Security determines that a 
change in the sensitivity level of a position that affects the need for 
an individual to obtain access to classified information is warranted, 
such access shall be administratively adjusted or periodic 
reinvestigation completed, as necessary.
    (c) Report.--
            (1) In general.--Upon completion of each review required 
        under subsection (a), the Secretary of Homeland Security shall 
        submit to the Committee on Homeland Security of the House of 
        Representatives and the Committee on Homeland Security and 
        Governmental Affairs of the Senate a report on the number of 
        positions by classification level and by component of the 
        Department of Homeland Security that are to be redesignated in 
        accordance with subsection (b) to--
                    (A) require access to classified information;
                    (B) no longer require access to classified 
                information; or
                    (C) otherwise require a different level of access 
                to classified information.
            (2) Form.--The report required under paragraph (1) shall be 
        submitted in unclassified form and be made publicly available, 
        but may include a classified annex for any sensitive or 
        classified information if necessary.

                       Subtitle B--Investigation

SEC. 211. INVESTIGATION SERVICES PROVIDER PERFORMANCE.

    (a) In General.--The Secretary of Homeland Security, acting through 
the Chief Security Officer of the Department of Homeland Security, 
shall annually survey the head of each component or office of the 
Department with the authority to adjudicate a current investigation 
file for a national security position to help determine whether--
            (1) investigation service providers are adhering to Federal 
        requirements, including requirements under the Intelligence 
        Reform and Terrorism Prevention Act of 2004 (Public Law 108-
        458) and requirements promulgated by the Office of Personnel 
        Management; and
            (2) records provided are adequate to conduct adjudications.
    (b) Contents.--Each survey under subsection (a) shall consider the 
following:
            (1) Punctuality of completed personnel security 
        investigations, including adherence to timelines required under 
        section 3001 of the Intelligence Reform and Terrorism 
        Prevention Act of 2004 (50 U.S.C. 3341).
            (2) Frequency that the adjudicator must seek clarifying or 
        additional information from the investigation service provider.
            (3) Frequency that the adjudicator orders a full or partial 
        reinvestigation.
            (4) Frequency that the adjudicator finds adverse 
        information after the completed background investigation is 
        submitted by the investigation service provider.
            (5) Frequency that the complete investigation file, 
        including investigative notes, is provided.
            (6) Overall performance of the investigation service 
        provider.
            (7) Satisfaction with the overall performance of the 
        investigation service provider.
    (c) Corrective Action.--If information provided under subsection 
(a) identifies a pattern of performance problems with a particular 
investigation service provider, the Chief Security Officer of the 
Department of Homeland Security shall make a recommendation to the 
Secretary of Homeland Security and, where appropriate, to the head of 
each component or office of the Department that uses the particular 
investigation service provider regarding corrective action, including 
suspension or cancellation of services.
    (d) Availability.--The Secretary of Homeland Security shall publish 
the results of each survey under subsection (a) and make each such 
publication publicly available on the website of the Department of 
Homeland Security.

SEC. 212. METRICS.

    The Secretary of Homeland Security shall utilize metrics, 
including, to the extent practicable, any metrics in use by the Office 
of Personnel Management as of the date of the enactment of this Act, to 
assess the timeliness, completeness, and overall quality of the 
provision of investigative services by investigation service providers.

                        Subtitle C--Adjudication

SEC. 221. UNIFORM ADJUDICATION STANDARDS.

    (a) In General.--The Secretary of Homeland Security, acting through 
the Chief Security Officer of the Department of Homeland Security, 
shall issue uniform adjudication standards, consistent with part 147 of 
title 32, Code of Federal Regulations, or similar successor regulation, 
to be utilized by Department adjudicators with respect to adjudicating 
the eligibility of an individual for access to classified information.
    (b) Certification.--Not later than one year after the issuance of 
the uniform adjudication standards under subsection (a), the Secretary 
of Homeland Security, acting through the Chief Security Officer of the 
Department of Homeland Security, shall require the head of each 
component and office of the Department with the authority to adjudicate 
access to classified information of an individual to certify compliance 
with the uniform adjudication standards under subsection (a).
    (c) Audit.--Not later than two years after the last head of a 
component of the Department of Homeland Security certifies compliance 
under subsection (b) with the uniform adjudication standards under 
subsection (a), the Inspector General of the Department shall audit all 
such components to verify such compliance.

         Subtitle D--Denial, Suspension, Revocation, and Appeal

SEC. 231. UNIFORM REVOCATION CRITERIA AND PROCEDURES.

    (a) In General.--The Secretary of Homeland Security, acting through 
the Chief Security Officer of the Department of Homeland Security, 
shall issue a Departmentwide directive that sets forth uniform criteria 
and procedures, consistent with any appropriate Federal Governmentwide 
standards, including notice requirements, for the suspension, denial, 
and revocation of eligibility for access to classified information of 
an individual issued by the Department.
    (b) Certification.--Not later than one year after issuance of the 
uniform criteria and procedures under subsection (a), the Secretary of 
Homeland Security, acting through the Chief Security Officer of the 
Department of Homeland Security, shall require the head of each 
component and office of the Department with the authority to adjudicate 
eligibility for access to classified information of an individual to 
certify compliance with such uniform criteria and procedures.

SEC. 232. ANNUAL REPORTING.

    (a) In General.--The Secretary of Homeland Security, acting through 
the Chief Security Officer of the Department of Homeland Security, 
shall annually submit to the Committee on Homeland Security of the 
House of Representatives and the Committee on Homeland Security and 
Governmental Affairs of the Senate a report on the following:
            (1) The number of denials, suspensions, revocations, and 
        appeals of the eligibility for access to classified information 
        of an individual throughout the Department.
            (2) The date and status or disposition of each reported 
        action under paragraph (1).
            (3) The identification of the originator, whether by a 
        component or headquarters, of each adverse action under 
        paragraph (1), and description of the grounds for each such 
        action.
            (4) Demographic data, including data relating to race, sex, 
        national origin, and disability, of each individual for whom 
        eligibility for access to classified information was denied, 
        suspended, revoked, or appealed, and the number of years that 
        each such individual was eligible for access to such 
        information.
            (5) In the case of a suspension in excess of 180 days, an 
        explanation for the such timeframe.
    (b) Form.--The report required under subsection (a) shall be 
submitted in unclassified form and be made publicly available, but may 
include a classified annex for any sensitive or classified information 
if necessary.

SEC. 233. FINAL APPEALS PANEL.

    (a) In General.--The Secretary of Homeland Security shall establish 
an internal appeals 5-person panel for final national security 
clearance denial and revocation determinations that is comprised of 
designees who are career, supervisory employees from departmental 
components and headquarters.
    (b) Chair.--The Chief Security Officer of the Department of 
Homeland Security shall serve as the chair of the panel established 
pursuant to subsection (a).
    (c) Positions.--At least two of the positions on the panel shall be 
held by non-security related supervisory employees for not more than 
two consecutive years, and at least one position shall held by a 
security related supervisory employee for not more than three 
consecutive years.
    (d) Subpanels.--
            (1) In general.--For each matter before the panel, a 3-
        person subpanel shall be convened by the chair, and may include 
        the chairman.
            (2) Prohibition.--The chair may not select a panelist to 
        serve on a 3-person subpanel referred to in paragraph (1) from 
        the same component or office of the Department of Homeland 
        Security as from which the matter before such subpanel 
        originated or who has a prior relationship with any of the 
        individuals involved in such matter.
    (e) Procedures.--
            (1) In general.--Each individual issued access to 
        classified information by the Department of Homeland Security 
        whose access is denied or revoked after a decision from a 
        first-line deciding authority and a supervisor of such first-
        line deciding authority may appeal, in writing, to the 5-person 
        appeals panel and appear, with a representative, before such 
        panel to make a statement.
            (2) Rulings.--A simple majority of the appeals panel is 
        required to uphold or overturn a denial or revocation.
            (3) Timing.--All determinations of the appeals panel shall 
        be rendered within 90 days of receipt of an appeal under this 
        section.
            (4) Finality.--All determinations of the appeals panel 
        shall be final, and no further administrative review shall be 
        permitted.

                  Subtitle E--Miscellaneous Provisions

SEC. 241. INTELLIGENCE REFORM AND TERRORISM PREVENTION ACT OF 2004 
              REVIEW AND SECURITY CLEARANCE RECIPROCITY.

    (a) In General.--Not later than two years after the date of the 
enactment of this Act, the Comptroller General of the United States 
shall submit to the Committee on Homeland Security of the House of 
Representatives and the Committee on Homeland Security and Governmental 
Affairs of the Senate a report on--
            (1) the impact of the implementation of section 3001 of the 
        Intelligence Reform and Terrorism Prevention Act of 2004 (50 
        U.S.C. 3341; Public Law 108-458) on security clearance 
        processes, including--
                    (A) with respect to the quality of personnel 
                security investigations and adjudications; and
                    (B) the extent to which the timelines specified in 
                such section have impacted security clearance backlogs, 
                and include recommendations for areas for reform; and
            (2) the extent to which individuals with eligibility for 
        access to classified information, adjudicated by the Secretary 
        of Homeland Security or the head of a component or office of 
        the Department of Homeland Security, are granted reciprocity 
        within the Department and by other agencies, in accordance with 
        subsection (d) of section 3001 of the Intelligence Reform and 
        Terrorism Prevention Act of 2004 (50 U.S.C. 3341; Public Law 
        108-458), including--
                    (A) the extent to which the lack of harmonization 
                of suitability standards is a barrier to such 
                reciprocity; and
                    (B) recommendations on whether such standards 
                should be included in interagency reciprocity 
                agreements.
    (b) Form.--The report required under subsection (a) shall be 
submitted in unclassified form and be made publicly available, but may 
include a classified annex for any sensitive or classified information 
if necessary.

SEC. 242. OFFICE OF INSPECTOR GENERAL REPORT.

    Not later than two years after the date of the enactment of this 
Act, the Inspector General of the Department of Homeland Security shall 
submit to the Committee on Homeland Security of the House of 
Representatives and the Committee on Homeland Security and Governmental 
Affairs of the Senate a report on the implementation of 
responsibilities and mandates of the Department under this Act, and the 
amendments made by this Act. The report required under this section 
shall be submitted in unclassified form and be made publicly available, 
but may include a classified annex for any sensitive or classified 
information if necessary.

SEC. 243. PENALTIES FOR FALSIFICATION RELATING TO AN INVESTIGATION 
              FILE.

    Section 1001(a) of title 18, United States Code, is amended by 
inserting at the end the following: ``If the offense involves an 
investigation file for a national security position (as such term is 
defined in section 732.102 of title 5, Code of Federal Regulations, or 
similar successor regulation), then the maximum term of imprisonment 
otherwise authorized under this section may be increased by one 
year.''.
                                 <all>