[House Report 114-323]
[From the U.S. Government Publishing Office]


114th Congress }                                             {Report
                        HOUSE OF REPRESENTATIVES
 1st Session   }                                             {114-323

======================================================================
 
                  DEPARTMENT OF HOMELAND SECURITY CLEARANCE 
                        MANAGEMENT AND ADMINISTRATION ACT

                                _______
                                

November 2, 2015.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. McCaul, from the Committee on Homeland Security, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 3505]

    The Committee on Homeland Security, to whom was referred 
the bill (H.R. 3505) to amend the Homeland Security Act of 2002 
to improve the management and administration of the security 
clearance processes throughout the Department of Homeland 
Security, and for other purposes, having considered the same, 
report favorably thereon without amendment and recommend that 
the bill do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     2
Committee Consideration..........................................     3
Committee Votes..................................................     3
Committee Oversight Findings.....................................     3
New Budget Authority, Entitlement Authority, and Tax Expenditures     3
Congressional Budget Office Estimate.............................     3
Statement of General Performance Goals and Objectives............     3
Duplicative Federal Programs.....................................     4
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
  Benefits.......................................................     4
Federal Mandates Statement.......................................     4
Preemption Clarification.........................................     4
Disclosure of Directed Rule Makings..............................     4
Advisory Committee Statement.....................................     4
Applicability to Legislative Branch..............................     4
Section-by-Section Analysis of the Legislation...................     5
Changes in Existing Law Made by the Bill, as Reported............     6

                          Purpose and Summary

    The purpose of H.R. 3505, the ``Department of Homeland 
Security Clearance Management and Administration Act'' is to 
amend the Homeland Security Act of 2002 to require the 
Secretary of the Department of Homeland Security (DHS) to 
conduct a review of all sensitivity level designations of 
national security positions within the Department. The bill 
seeks to take targeted steps at improving critical aspects of 
how DHS administers its security clearance program. The bill 
ensures that DHS conduct a thorough accounting of workforce 
needs to better manage the costs of unnecessary background 
investigations and limit the number of positions that maybe 
vulnerable to insider threats and targeting by foreign 
intelligence services.

                  Background and Need for Legislation

    In 2013, Director of National Intelligence James Clapper 
called the number of individuals with clearances `too high.' In 
a memo to government agencies, Clapper reportedly expressed his 
concern with the growing number of individuals with access to 
classified information, particularly Top Secret clearances.\1\ 
This bill directs DHS to conduct an inventory of the 
Department's positions that require security clearances, and 
assess what positions may no longer necessary require access to 
classified material.
---------------------------------------------------------------------------
    \1\Josh Gerstein, ``W.H. Looks to Scrub Clearance List'', Politico, 
11/12/2013, available at: http://www.politico.com/story/2013/11/
government-security-clearance-list-100195.
---------------------------------------------------------------------------
    The bill recognizes that the massive proliferation of 
original and derivative classified material and the exponential 
growth in the number of individuals with security clearances 
present significant costs and homeland security and national 
security challenges that warrant timely action. In addition to 
the high costs incurred by the Federal government to 
investigate the large number of individuals for positions 
requiring security clearances, over-designations have 
undoubtedly resulted in the Federal government recruiting, 
hiring, and paying individuals at rates that are higher than 
necessary and not hiring individuals who otherwise have the 
required knowledge and skills.
    This bill seeks to make specific reforms at the Department 
with respect to security clearance and position designations 
practices. The reforms at DHS are targeted at the designations 
of positions and the investigations, adjudications, denials, 
suspensions, revocations, and appeals processes for security 
clearances.

                                Hearings

    The Committee did not hold any hearing specifically on 
H.R.3505. However, the Committee did hold the following 
oversight hearing in the 113th Congress:
    On November 13, 2013, the Subcommittee on Counterterrorism 
and Intelligence held a hearing entitled, ``The Insider Threat 
to Homeland Security: Examining Our Nation's Security 
Clearances Processes.'' The Subcommittee received testimony 
from Mr. Merton W. Miller, Associate Director of 
Investigations, Federal Investigative Services, U.S. Office of 
Personnel Management; Mr. Gregory Marshall, Chief Security 
Officer, U.S. Department of Homeland Security; Mr. Brian 
Prioletti, Assistant Director, Special Security Directorate, 
National Counterintelligence Executive, Office of the Director 
of National Intelligence; Ms. Brenda Farrell, Director, 
Military and DOD Civilian Personnel Issues, U.S. Government 
Accountability Office.

                        Committee Consideration

    The Committee met on September 30, 2015, to consider 
H.R.3505, and ordered the measure to be reported to the House 
with a favorable recommendation, without amendment, by voice 
vote.

    The Subcommittee on Counterterrorism and Intelligence met 
on September 17, 2015, to consider H.R. 3505 and reported the 
measure to the Full Committee with a favorable recommendation, 
without amendment, by voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the recorded 
votes on the motion to report legislation and amendments 
thereto.
    No recorded votes were requested during consideration of 
H.R.3505.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee has held oversight 
hearings and made findings that are reflected in this report.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
3505, the Department of Homeland Security Clearance Management 
and Administration Act, would result in no new or increased 
budget authority, entitlement authority, or tax expenditures or 
revenues.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, a cost estimate provided by the 
Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974 was not made available to the 
Committee in time for the filing of this report. The Chairman 
of the Committee shall cause such estimate to be printed in the 
Congressional Record upon its receipt by the Committee.

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, H.R. 3505 contains the following 
general performance goals and objectives, including outcome 
related goals and objectives authorized.
    The goal of H.R. 3505 is to require the Secretary of 
Homeland Security to conduct a review of all sensitivity level 
designations of national security positions within the 
Department. The bill seeks to improve critical aspects of how 
DHS administers its security clearance program and make it a 
leader among Federal agencies with respect to security 
clearance and position designations practices. By conducting 
the sensitivity designation review, the bill seeks to limit the 
number of positions that may be vulnerable to insider threats 
and targeting by foreign intelligence services.
    H.R. 3505 also requires the Department Chief Security 
Officer to audit national security positions periodically to 
ensure that such security designations are still necessary.

                      Duplicative Federal Programs

    Pursuant to clause 3(c) of rule XIII, the Committee finds 
that H.R. 3505 does not contain any provision that establishes 
or reauthorizes a program known to be duplicative of another 
Federal program.

   Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    In compliance with rule XXI of the Rules of the House of 
Representatives, this bill, as reported, contains no 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(e), 9(f), or 9(g) of the rule 
XXI.

                       Federal Mandates Statement

    An estimate of Federal mandates prepared by the Director of 
the Congressional Budget Office pursuant to section 423 of the 
Unfunded Mandates Reform Act was not made available to the 
Committee in time for the filing of this report. The Chairman 
of the Committee shall cause such estimate to be printed in the 
Congressional Record upon its receipt by the Committee.

                        Preemption Clarification

    In compliance with section 423 of the Congressional Budget 
Act of 1974, requiring the report of any Committee on a bill or 
joint resolution to include a statement on the extent to which 
the bill or joint resolution is intended to preempt State, 
local, or Tribal law, the Committee finds that H.R. 3505 does 
not preempt any State, local, or Tribal law.

                  Disclosure of Directed Rule Makings

    The Committee estimates that H.R. 3505 would require no 
directed rule makings.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation


Section 1.   Short title

    This section provides that the bill may be cited as the 
``Department of Homeland Security Clearance Management and 
Administration Act''.

Section 2.   Security clearance management and administration

    This section amends the Homeland Security Act to create a 
new Subtitle B in the Homeland Security Act to include the 
following new sections:

                    Subtitle B-Security Clearances.

Sec. 711.   Designation of National Security Sensitive and Public Trust 
        Positions.

    This section requires the Secretary in accordance with part 
1400 of title 5, Code of Federal Regulations,\2\ to conduct a 
designation of the sensitivity level of national security 
positions consistently throughout the Department and component 
agencies. Additionally, it requires the Secretary to utilize 
uniform designation tools throughout the Department and to 
provide training to the appropriate staff for the use of these 
tools. The training will include guidance on factors for 
determining eligibility for access to classified information 
and eligibility to hold a national security position.
---------------------------------------------------------------------------
    \2\This section of the Code of Federal Regulations relates to 
regulations issued by the Office of Personnel Management (OPM) and the 
Office of the Director of National Intelligence (ODNI) regarding the 
designation of national security positions. The Final Rule was released 
on June 5, 2015.
---------------------------------------------------------------------------

Sec. 712.   Review of Position Designations.

    Not later than July 6, 2017, and then every five years 
thereafter, the Secretary is required to review all sensitivity 
level designations of national security positions within the 
Department. If the Secretary determines that a change in the 
sensitivity level of a position is warranted, the access to the 
classified information will be adjusted to an appropriate level 
and a periodic reinvestigation will be completed as necessary.
    The Secretary is required to report to the House Committee 
on Homeland Security and the Senate Committee on Homeland 
Security and Government Affairs after completion of each review 
to include the number of positions, by classification and 
component and office, as well as the determination of whether 
the position requires access to classified information, no 
longer requires access to classified information, or requires a 
different level of access.
    Security clearances are costly to investigate, adjudicate 
and maintain. The Committee believes that it is now prudent for 
DHS, and the U.S. Government to conduct a thorough audit of its 
workforce and security clearance holders and match that to its 
current needs and requirements.

Sec. 713.   Audits.

    This section requires the Inspector General of the 
Department of Homeland Security, not later than 180 days after 
the enactment of this section, to conduct regular audits of DHS 
compliance with part 1400 of title 5, Code of Federal 
Regulations.

Sec. 714.   Reporting.

    This section requires the Secretary to submit annual 
reports through fiscal year 2021 to the House Committee on 
Homeland Security and the Senate Committee on Homeland Security 
and Government Affairs regarding (1) the number of denials, 
suspensions, revocations, and appeals of the eligibility for 
access to classified information; (2) the date, and status of 
each reported denial, suspension, revocation, and appeal, as 
well as the identification of the security clearance sponsoring 
entity and the grounds for each action; (3) demographic data 
including race, sex, national origin and disability of each 
individual whose access was adversely affected as well as the 
number of years the individual accessed classified information; 
and (4) an explanation of suspensions of more than 180 days. 
This report is required to be submitted in an unclassified 
format and, if necessary, with a classified annex.

Sec. 715.   Uniform Adjudication, Suspension, Denial, and Revocation.

    This section requires, within one year of the enactment, 
the Secretary, in consultation with the Homeland Advisory 
Committee, to develop a plan to create greater uniformity 
across the Department in the security adjudication process. The 
plan shall consider: (1) mechanisms to foster greater 
compliance with uniform adjudication standards; (2) 
establishment of an internal appeals panel responsible for 
final security clearance denial and revocation determinations 
comprised of designees with the authority to adjudicate access 
to classified information.

Sec. 716.   Data Protection.

    This section requires the Secretary to ensure that all 
information received for the adjudication of eligibility or an 
individual for access to classified information is protected 
against misuse.

Sec. 717.   Reference.

    This section clarifies that, except as otherwise noted, all 
references to the Department throughout the section, includes 
all components and offices of the Department.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italic and existing law in which no change is 
proposed is shown in roman):

                     HOMELAND SECURITY ACT OF 2002


SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Homeland 
Security Act of 2002''.
  (b) Table of Contents.--The table of contents for this Act is 
as follows:

     * * * * * * *

                          TITLE VII--MANAGEMENT

                   Subtitle A--Headquarters Activities

     * * * * * * *

                     Subtitle B--Security Clearances

Sec. 711. Designation of national security sensitive and public trust 
          positions.
Sec. 712. Review of position designations.
Sec. 713. Audits.
Sec. 714. Reporting.
Sec. 715. Uniform adjudication, suspension, denial, and revocation.
Sec. 716. Data protection.
Sec. 717. Reference.

           *       *       *       *       *       *       *


                         TITLE VII--MANAGEMENT

Subtitle A--Headquarters Activities

           *       *       *       *       *       *       *


                    Subtitle B--Security Clearances

SEC. 711. DESIGNATION OF NATIONAL SECURITY SENSITIVE AND PUBLIC TRUST 
                    POSITIONS.

  (a) In General.--The Secretary shall require the designation 
of the sensitivity level of national security positions 
(pursuant to part 1400 of title 5, Code of Federal Regulations, 
or similar successor regulation) be conducted in a consistent 
manner with respect to all components and offices of the 
Department, and consistent with Federal guidelines.
  (b) Implementation.--In carrying out subsection (a), the 
Secretary shall require the utilization of uniform designation 
tools throughout the Department and provide training to 
appropriate staff of the Department on such utilization. Such 
training shall include guidance on factors for determining 
eligibility for access to classified information and 
eligibility to hold a national security position.

SEC. 712. REVIEW OF POSITION DESIGNATIONS.

  (a) In General.--Not later than July 6, 2017, and every five 
years thereafter, the Secretary shall review all sensitivity 
level designations of national security positions (pursuant to 
part 1400 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 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 and 
an appropriate level periodic reinvestigation completed, as 
necessary.
  (c) Congressional Reporting.--Upon completion of each review 
required under subsection (a), the Secretary shall report to 
the Committee on Homeland Security of the House of 
Representatives and the Committee on Homeland Security and 
Governmental Affairs of the Senate on the findings of each such 
review, including the number of positions by classification 
level and by component and office of the Department in which 
the Secretary made a determination in accordance with 
subsection (b) to--
          (1) require access to classified information;
          (2) no longer require access to classified 
        information; or
          (3) otherwise require a different level of access to 
        classified information.

SEC. 713. AUDITS.

  Beginning not later than 180 days after the date of the 
enactment of this section, the Inspector General of the 
Department shall conduct regular audits of compliance of the 
Department with part 1400 of title 5, Code of Federal 
Regulations, or similar successor regulation.

SEC. 714. REPORTING.

  (a) In General.--The Secretary shall annually through fiscal 
year 2021 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 sponsoring entity, 
        whether by a component, office, or headquarters of the 
        Department, of each 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 such duration.
  (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. 715. UNIFORM ADJUDICATION, SUSPENSION, DENIAL, AND REVOCATION.

  Not later than one year after the date of the enactment of 
this section, the Secretary, in consultation with the Homeland 
Security Advisory Committee, shall develop a plan to achieve 
greater uniformity within the Department with respect to the 
adjudication of eligibility of an individual for access to 
classified information that are consistent with the 
Adjudicative Guidelines for Determining Access to Classified 
Information published on December 29, 2005, or similar 
successor regulation. The Secretary 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 the plan. The plan shall consider the following:
          (1) Mechanisms to foster greater compliance with the 
        uniform Department adjudication, suspension, denial, 
        and revocation standards by the head of each component 
        and office of the Department with the authority to 
        adjudicate access to classified information.
          (2) The establishment of an internal appeals panel 
        responsible for final national security clearance 
        denial and revocation determinations that is comprised 
        of designees who are career, supervisory employees from 
        components and offices of the Department with the 
        authority to adjudicate access to classified 
        information and headquarters, as appropriate.

SEC. 716. DATA PROTECTION.

  The Secretary shall ensure that all information received for 
the adjudication of eligibility of an individual for access to 
classified information that is consistent with the Adjudicative 
Guidelines for Determining Access to Classified Information 
published on December 29, 2005, or similar successor 
regulation, and is protected against misappropriation.

SEC. 717. REFERENCE.

  Except as otherwise provided, for purposes of this subtitle, 
any reference to the ``Department'' includes all components and 
offices of the Department.

           *       *       *       *       *       *       *


                                  [all]