[Federal Register Volume 82, Number 231 (Monday, December 4, 2017)]
[Rules and Regulations]
[Pages 57105-57115]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-25257]



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 Rules and Regulations
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  Federal Register / Vol. 82, No. 231 / Monday, December 4, 2017 / 
Rules and Regulations  

[[Page 57105]]



DEPARTMENT OF ENERGY

10 CFR Part 710

[Docket No. AU-RM-17-PACNM]
RIN 1992-AA56


Procedures for Determining Eligibility for Access to Classified 
Matter or Special Nuclear Material

AGENCY: Department of Energy.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Department of Energy (DOE) is amending its regulations 
which set forth the policies and procedures for resolving questions 
concerning eligibility for DOE access authorization. The revisions 
update appendix A, and related text, with the most current national 
standards for determining eligibility for access to classified matter 
and special nuclear material, and delete references to Executive Order 
10450, which was revoked pursuant to Executive Order 13764, dated 
January 17, 2017.

DATES: This rule is effective January 3, 2018.

FOR FURTHER INFORMATION CONTACT: U.S. Department of Energy, Office of 
Departmental Personnel Security, (202) 586-3249, 
[email protected], or Christina Pak, 
Office of the General Counsel, (202) 586-4114, 
[email protected].

SUPPLEMENTARY INFORMATION: 
I. Background
II. Section-by-Section Analysis
III. Procedural Analysis
    A. Review Under the Administrative Procedure Act
    B. Review Under Executive Order 12866 and 13563
    C. Review Under Executive Order 12988
    D. Review Under the Regulatory Flexibility Act
    E. Review Under the Paperwork Reduction Act
    F. Review Under the National Environmental Policy Act
    G. Review Under Executive Order 13132
    H. Review Under the Unfunded Mandates Reform Act of 1995
    I. Review Under the Treasury and General Government 
Appropriations Act, 1999
    J. Review Under Executive Order 13211
    K. Review Under the Treasury and General Government 
Appropriations Act, 2001
    L. Approval by the Office of the Secretary of Energy
    M. Congressional Notification

I. Background

    The Department of Energy is publishing this final rule in order to 
ensure it contains the most current national standards for determining 
access to classified matter and special nuclear material and to ensure 
listed authorities are still valid.
    Appendix A to 10 CFR part 710 contained the Adjudicative Guidelines 
for Determining Eligibility for Access to Classified Information 
(Adjudicative Guidelines), originally issued in 1997. These were 
included because they were the standard to which all such access 
eligibility determinations within the Department of Energy were 
rendered. On December 10, 2016, the Director of National Intelligence, 
in his role as Security Executive Agent, signed Security Executive 
Agent Directive (SEAD) 4, National Security Adjudicative Guidelines, 
which became effective June 8, 2017. The standards enumerated in SEAD 4 
supersede the former standards. This final rule now includes SEAD 4 as 
appendix A. Also, Executive Order (E.O.) 10450, Security Requirements 
for Government Employees, issued April 27, 1953, has historically been 
cited as one of the authorities within the rule. E.O. 10450 was revoked 
pursuant to E.O. 13764 of January 17, 2017. This rule deletes 
references to E.O. 10450.
    Laws, regulations and directives which may apply to part 710 
include, but are not limited to: The Atomic Energy Act of 1954; 
Executive Order 13764 (81 FR 8115, January 23, 2017) Executive Order 
13467 (73 FR 38103), June 30, 2008; Executive Order 12968 (60 FR 40245, 
August 2, 1995, as amended); Executive Order 13526 (75 FR 707, January 
5, 2010); Executive Order 10865 (25 FR 1583, February 24, 1960, as 
amended); Presidential Policy Directive 19 (October 10, 2012).

II. Section-by-Section Analysis

    DOE amends 10 CFR part 710 as follows:
    1. In the contents section, appendix A has been revised to reflect 
it now contains Security Executive Agency Directive 4--National 
Security Adjudicative Guidelines.
    2. In the contents section, under ``Authority'', reference to E.O. 
10450 has been deleted.
    3. Section 710.1 ``Purpose'' deletes references to E.O. 10450 and 
the former Adjudicative Guidelines and replaces them with current 
citations.
    4. Section 710.2 ``Scope'' removes reference to the Adjudicative 
Guidelines.
    5. Section 710.3 ``Reference'' replaces ``Adjudicative Guidelines'' 
with ``National Security Adjudicative Guidelines.''
    6. Section 710.7 ``Application of the Adjudicative Guidelines'', is 
retitled ``Application of the National Security Adjudicative 
Guidelines.''
    7. Section 710.7(b) replaces ``Adjudicative Guidelines'' with 
``National Security Adjudicative Guidelines.''
    8. Appendix A is retitled ``SEAD 4, National Security Adjudicative 
Guidelines'' and its content is changed to delete the former 
Adjudicative Guidelines and replace with the current SEAD 4 standards.

III. Procedural Requirements

A. Review Under the Administrative Procedure Act

    The Administrative Procedure Act (APA) requires that a notice of 
proposed rulemaking be published in the Federal Register unless certain 
exceptions apply. 5 U.S.C. 553(b). These exceptions include rules of 
agency procedure or practice, as well as rules for which the agency 
finds good cause to waive notice and comment as unnecessary, 
impracticable or contrary to the public interest. Id. This rule amends 
DOE regulations that set forth the policies and procedures for 
resolving questions concerning eligibility for DOE access 
authorization. Specifically, the revisions update Appendix A, and 
related text, with the most current national standards for determining 
eligibility for access to classified matter and special nuclear 
material, and delete references to Executive Order 10450, which was 
revoked pursuant to Executive Order 13764. The rule provides the means 
by which DOE determines eligibility for access to its own data--
classified matter

[[Page 57106]]

and special nuclear material. As such, the rule is one of agency 
procedure or practice exempt from the notice and comment requirements 
of the APA. In addition, the Department has no discretion in adopting 
the guidelines, which by their terms are ``applicable to any executive 
branch agency authorized or designated to conduct adjudications of 
covered individuals to determine eligibility for initial or continued 
access to classified national security information or eligibility to 
hold a sensitive position.'' (See SEAD 4, Section C. Applicability.) 
The new SEAD 4 standards also do not differ substantively from the 
Adjudicative Guidelines. SEAD 4 continues to set forth 13 criteria 
(Guidelines A to M) that may raise a security concern, but was revised 
to add or remove conditions that could raise and/or mitigate security 
concerns. Variations between the two versions are not expected to 
result in differing access eligibility determinations depending upon 
which standard was employed. For these reasons, DOE also finds that 
notice and comment on the adoption of SEAD 4 is also unnecessary, 
impracticable and contrary to the public interest. The 30-day delay in 
effective date specified in 5 U.S.C. 553(d) is waived for these same 
reasons.

B. Review Under Executive Orders 12866 and 13563

    This final rule has been determined not to be a ``significant 
regulatory action'' under Executive Order 12866, ``Regulatory Planning 
and Review,'' 58 FR 51735 (October 4, 1993). Accordingly, this rule is 
not subject to review under the Executive Order by the Office of 
Information and Regulatory Affairs within the Office of Management and 
Budget.
    DOE has also reviewed the regulation pursuant to Executive Order 
13563, issued on January 18, 2011 (76 FR 3281 (Jan. 21, 2011)). 
Executive Order 13563 is supplemental to and explicitly reaffirms the 
principles, structures, and definitions governing regulatory review 
established in Executive Order 12866. To the extent permitted by law, 
agencies are required by Executive Order 13563 to: (1) Propose or adopt 
a regulation only upon a reasoned determination that its benefits 
justify its costs (recognizing that some benefits and costs are 
difficult to quantify); (2) tailor regulations to impose the least 
burden on society, consistent with obtaining regulatory objectives, 
taking into account, among other things, and to the extent practicable, 
the costs of cumulative regulations; (3) select, in choosing among 
alternative regulatory approaches, those approaches that maximize net 
benefits (including potential economic, environmental, public health 
and safety, and other advantages; distributive impacts; and equity); 
(4) to the extent feasible, specify performance objectives, rather than 
specifying the behavior or manner of compliance that regulated entities 
must adopt; and (5) identify and assess available alternatives to 
direct regulation, including providing economic incentives to encourage 
the desired behavior, such as user fees or marketable permits, or 
providing information upon which choices can be made by the public.
    DOE emphasizes as well that Executive Order 13563 requires agencies 
to use the best available techniques to quantify anticipated present 
and future benefits and costs as accurately as possible. In its 
guidance, the Office of Information and Regulatory Affairs has 
emphasized that such techniques may include identifying changing future 
compliance costs that might result from technological innovation or 
anticipated behavioral changes. DOE believes that this rule is 
consistent with these principles, including the requirement that, to 
the extent permitted by law, agencies adopt a regulation only upon a 
reasoned determination that its benefits justify its costs and, in 
choosing among alternative regulatory approaches, those approaches 
maximize net benefits.

C. Review Under Executive Order 12988

    With respect to the review of existing regulations and the 
promulgation of new regulations, section 3(a) of Executive Order 12988, 
``Civil Justice Reform,'' 61 FR 4729 (February 7, 1996), imposes on 
Executive agencies the general duty to adhere to the following 
requirements: (1) Eliminate drafting errors and ambiguity; (2) write 
regulations to minimize litigation; and (3) provide a clear legal 
standard for affected conduct rather than a general standard and 
promote simplification and burden reduction.
    With regard to the review required by section 3(a), section 3(b) of 
Executive Order 12988 specifically requires that Executive agencies 
make every reasonable effort to ensure that the regulation: (1) Clearly 
specifies the preemptive effect, if any; (2) clearly specifies any 
effect on existing Federal law or regulation; (3) provides a clear 
legal standard for affected conduct while promoting simplification and 
burden reduction; (4) specifies the retroactive effect, if any; (5) 
adequately defines key terms; and (6) addresses other important issues 
affecting clarity and general draftsmanship under any guidelines issued 
by the Attorney General. Section 3(c) of Executive Order 12988 requires 
Executive agencies to review regulations in light of applicable 
standards in section 3(a) and section 3(b) to determine whether they 
are met or it is unreasonable to meet one or more of them. DOE has 
completed the required review and determined that, to the extent 
permitted by law, this regulation meets the relevant standards of 
Executive Order 12988.

D. Review Under the Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires 
preparation of an initial regulatory flexibility analysis for any rule 
that by law must be proposed for public comment, unless the agency 
certifies that the rule, if promulgated, will not have a significant 
economic impact on a substantial number of small entities. As required 
by Executive Order 13272, ``Proper Consideration of Small Entities in 
Agency Rulemaking,'' (67 FR 53461, August 16, 2002), DOE published 
procedures and policies on February 19, 2003, to ensure that the 
potential impacts of its rules on small entities are properly 
considered during the rulemaking process (68 FR 7990). DOE has made its 
procedures and policies available on the Office of the General 
Counsel's Web site at http://www.gc.doe.gov.
    This rule amends procedures that apply to the determination of 
eligibility of individuals for access to classified information and 
access to special nuclear material. The rule applies to individuals, 
and would not apply to ``small entities,'' as that term is defined in 
the Regulatory Flexibility Act. In addition, as stated above, the 
Department has no discretion in adopting the guidelines; it is the 
guidelines themselves that impose any impact on affected individuals. 
As a result, the rule does not have a significant economic impact on a 
substantial number of small entities.
    Accordingly, DOE certifies that the rule will not have a 
significant economic impact on a substantial number of small entities, 
and, therefore, no regulatory flexibility analysis is required. DOE's 
certification and supporting statement of factual basis will be 
provided to the Chief Counsel for Advocacy of the Small Business 
Administration for review under 5 U.S.C. 605(b).

E. Review Under the Paperwork Reduction Act

    This rule does not impose a collection of information requirement 
subject to

[[Page 57107]]

the Paperwork Reduction Act, 44 U.S.C. 3501 et seq.

F. Review Under the National Environmental Policy Act

    DOE has concluded that promulgation of this rule falls into a class 
of actions which would not individually or cumulatively have 
significant impact on the human environment, as determined by DOE's 
regulations (10 CFR part 1021, subpart D) implementing the National 
Environmental Policy Act (NEPA) of 1969 (42 U.S.C. 4321 et seq.). 
Specifically, this rule is categorically excluded from NEPA review 
because the amendments to the previous rule are strictly procedural 
(categorical exclusion A6). Therefore, this rule does not require an 
environmental impact statement or environmental assessment pursuant to 
NEPA.

G. Review Under Executive Order 13132

    Executive Order 13132, 64 FR 43255 (August 4, 1999), imposes 
certain requirements on agencies formulating and implementing policies 
or regulations that preempt State law or that have federalism 
implications. Agencies are required to examine the constitutional and 
statutory authority supporting any action that would limit the 
policymaking discretion of the States and carefully assess the 
necessity for such actions. DOE has examined this rule and has 
determined that it does not preempt State law and does not have a 
substantial direct effect on the States, on the relationship between 
the national government and the States, or on the distribution of power 
and responsibilities among the various levels of government. No further 
action is required by Executive Order 13132.

H. Review Under the Unfunded Mandates Reform Act of 1995

    The Unfunded Mandates Reform Act of 1995 (Public Law 104-4) 
generally requires a Federal agency to perform a detailed assessment of 
costs and benefits of any rule imposing a Federal Mandate with costs to 
State, local or tribal governments, or to the private sector, of $100 
million or more. This rulemaking does not impose a Federal mandate on 
State, local or tribal governments or on the private sector.

I. Review Under the Treasury and General Government Appropriations Act, 
1999

    Section 654 of the Treasury and General Government Appropriations 
Act, 1999 (Pub. L. 105-277), requires Federal agencies to issue a 
Family Policymaking Assessment for any rule or policy that may affect 
family well being. This rule, has no impact on family well-being. 
Accordingly, DOE has concluded that it is not necessary to prepare a 
Family Policymaking Assessment.

J. Review Under Executive Order 13211

    Executive Order 13211, ``Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use,'' 66 FR 28355 
(May 22, 2001), requires Federal agencies to prepare and submit to the 
Office of Information and Regulatory Affairs (OIRA), Office of 
Management and Budget, a Statement of Energy Effects for any 
significant energy action. A ``significant energy action'' is defined 
as any action by an agency that promulgates or is expected to lead to 
promulgation of a final rule, and that: (1) Is a significant regulatory 
action under Executive Order 12866, or any successor order; and (2) is 
likely to have a significant adverse effect on the supply, 
distribution, or use of energy, or (3) is designated by the 
Administrator of OIRA as a significant energy action. For any proposed 
significant energy action, the agency must give a detailed statement of 
any adverse effects on energy supply, distribution or use should the 
proposal be implemented, and of reasonable alternatives to the action 
and their expected benefits on energy supply, distribution and use. 
This rule is not a significant energy action. Accordingly, DOE has not 
prepared a Statement of Energy Effects.

K. Review Under the Treasury and General Government Appropriations Act, 
2001

    The Treasury and General Government Appropriations Act, 2001 (44 
U.S.C. 3516, note) provides for agencies to review most disseminations 
of information to the public under implementing guidelines established 
by each agency pursuant to general guidelines issued by OMB. OMB's 
guidelines were published at 67 FR 8452 (February 22, 2002), and DOE's 
guidelines were published at 67 FR 62446 (October 7, 2002). DOE has 
reviewed this rule under the OMB and DOE guidelines and has concluded 
that it is consistent with applicable policies in those guidelines.

L. Approval by the Office of the Secretary of Energy

    The Secretary of Energy has approved issuance of this rule.

M. Congressional Notification

    As required by 5 U.S.C. 801, DOE will report to Congress on the 
promulgation of this rule prior to its effective date. The report will 
state that it has been determined that the rule is not a ``major rule'' 
as defined by 5 U.S.C. 804(2).

List of Subjects in 10 CFR Part 710

    Administrative practice and procedure, Classified information, 
Government contracts, Government employees, Nuclear energy.

    Issued in Washington, DC, on October 31, 2017.
Rick Perry,
Secretary of Energy.
    For the reasons set out in the preamble, DOE amends part 710 of 
title 10 of the Code of Federal Regulations as set forth below.

PART 710--PROCEDURES FOR DETERMINING ELIGIBILITY FOR ACCESS TO 
CLASSIFIED MATTER AND SPECIAL NUCLEAR MATERIAL

0
1. The authority citation for part 710 is revised to read as follows:

    Authority:  42 U.S.C. 2165, 2201, 5815, 7101, et seq., 7383h-l; 
50 U.S.C. 2401 et seq.; E.O. 10865, 3 CFR 1959-1963 comp., p. 398, 
as amended, 3 CFR Chap. IV; E.O. 13526, 3 CFR 2010 Comp., pp. 298-
327 (or successor orders); E.O. 12968, 3 CFR 1995 Comp., p. 391.


0
2. Section 710.1 is amended by revising paragraph (b) to read as 
follows:


Sec.  710.1   Purpose.

* * * * *
    (b) This part implements: Executive Order 12968, 60 FR 40245 
(August 2, 1995), as amended; Executive Order 13526, 75 FR 707 (January 
5, 2010) as amended; Executive Order 10865, 25 FR 1583 (February 24, 
1960), as amended; and the National Security Adjudicative Guidelines, 
issued as Security Executive Agent Directive 4 by the Director of 
National Intelligence on December 10, 2016.

0
3. Section 710.2 is amended by revising the introductory text to read 
as follows:


Sec.  710.2  Scope.

    The procedures outlined in this rule apply to determinations of 
eligibility for access authorization for:
* * * * *

0
4. Revise Sec.  710.3 to read as follows:


Sec.  710.3   Reference.

    The National Security Adjudicative Guidelines are set forth in 
Appendix A to this part.

0
5. Section 710.7 is amended by revising the section heading and 
paragraph (b) to read as follows:

[[Page 57108]]

Sec.  710.7   Application of the National Security Adjudicative 
Guidelines.

* * * * *
    (b) All such determinations shall be based upon the application of 
the National Security Adjudicative Guidelines (Adjudicative 
Guidelines), or any successor national standard issued under authority 
of the President.
* * * * *

0
6. Appendix A is revised to read as follows:

Appendix A to Part 710--Security Executive Agent Directive 4, National 
Security Adjudicative Guidelines (June 8, 2017)

    (The following guidelines, included in this part for reference 
purposes only, are reproduced by DOE with minor formatting changes 
to comply with the Document Drafting Handbook issued by the Office 
of the Federal Register. The original guidelines were signed by 
James Clapper, Security Executive Agent, on December 10, 2016, with 
an effective date 180 days after signature (June 8, 2017). For any 
discrepancies between the original guidelines and the guidelines 
published in this appendix, the original guidelines control.)
    A. Authority: The National Security Act of 1947, as amended; 
Intelligence Reform and Terrorism Prevention Act of 2004 (IRTPA), as 
amended; Executive Order (E.O.) 10450, Security Requirements for 
Government Employment, as amended; EO 12968, Access to Classified 
Information, as amended; E.O. 13467, Reforming Processes Related to 
Suitability for Government Employment, Fitness for Contractor 
Employees, and Eligibility for Access to Classified National 
Security Information; E.O. 13549, Classified National Security 
Information Program for State, Local, Tribal and Private Sector 
Entities; Performance Accountability Council memorandum, Assignment 
of Functions Relating to Coverage of Contractor Employee Fitness in 
the Federal Investigative Standards, 6 December 2012; and other 
applicable provisions of law.
    B. Purpose: This Security Executive Agent (SecEA) Directive 
establishes the single, common adjudicative criteria for all covered 
individuals who require initial or continued eligibility for access 
to classified information or eligibility to hold a sensitive 
position. The Guidelines reflected herein supersede all previously 
issued national security adjudicative criteria or guidelines.
    C. Applicability: This Directive applies to any executive branch 
agency authorized or designated to conduct adjudications of covered 
individuals to determine eligibility for initial or continued access 
to classified national security information or eligibility to hold a 
sensitive position.
    D. Definitions: As used in this Directive, the following terms 
have the meanings set forth in the following paragraphs 1 through 8:
    1. Agency: Any ``Executive agency'' as defined in Section 105 of 
Title 5, United States Code (U.S.C.), including the ``military 
departments,'' as defined in Section 102 of Title 5, U.S.C. and any 
other entity within the Executive Branch that comes into possession 
of classified information or has positions designated as sensitive.
    2. Authorized adjudicative agency: An agency authorized by law, 
executive order, or designation by the SecEA to determine 
eligibility for access to classified information in accordance with 
E.O. 12968, as amended, or eligibility to hold a sensitive position.
    3. Authorized investigative agency: An agency authorized by law, 
executive order, or designation by the SecEA to conduct a background 
investigation of individuals who are proposed for access to 
classified information or eligibility to hold a sensitive position 
or to ascertain whether such individuals continue to satisfy the 
criteria for retaining access to such information or eligibility to 
hold such positions.
    4. Classified national security information or classified 
information: Information that has been determined pursuant to E.O. 
13526 or any predecessor or successor order, or the Atomic Energy 
Act of 1954, as amended, to require protection against unauthorized 
disclosure.
    5. Covered individual:
    a. A person who performs work for or on behalf of the executive 
branch or who seeks to perform work for or on behalf of the 
executive branch, but does not include the President or (except to 
the extent otherwise directed by the President) employees of the 
President under 3 U.S.C. 105 or 107, the Vice President, or (except 
to the extent otherwise directed by the Vice President) employees of 
the Vice President under 3 U.S.C. 106 or annual legislative branch 
appropriations acts;
    b. A person who performs work for or on behalf of a state, 
local, tribal, or private sector entity as defined in E.O. 13549 
requiring eligibility for access to classified information;
    c. A person working in or for the legislative or judicial 
branches requiring eligibility for access to classified information 
and the investigation or determination is conducted by the executive 
branch, but does not include members of Congress; Justices of the 
Supreme Court; and Federal judges appointed by the President.
    d. Covered individuals are not limited to government employees 
and include all persons, not excluded under paragraphs D.5.a., b., 
or c. of this appendix, who require eligibility for access to 
classified information or eligibility to hold a sensitive position, 
including, but not limited to, contractors, subcontractors, 
licensees, certificate holders, grantees, experts, consultants, and 
government employees.
    6. Foreign Intelligence Entity: Known or suspected foreign state 
or non-state organizations or persons that conduct intelligence 
activities to acquire U.S. information, block or impair U.S. 
intelligence collection, influence U.S. policy, or disrupt U.S. 
systems and programs. The term includes foreign intelligence and 
security services and international terrorists.
    7. National Security Eligibility: Eligibility for access to 
classified information or eligibility to hold a sensitive position, 
to include access to sensitive compartmented information, restricted 
data, and controlled or special access program information.
    8. Sensitive Position: Any position within or in support of an 
agency in which the occupant could bring about, by virtue of the 
nature of the position, a material adverse effect on the national 
security regardless of whether the occupant has access to classified 
information, and regardless of whether the occupant is an employee, 
military service member, or contractor.
    E. Policy:
    1. The National Security Adjudicative Guidelines in annex A to 
this appendix shall be used by all authorized adjudicative agencies 
when rendering a determination for initial or continued eligibility 
for access to classified information or initial or continued 
eligibility to hold a sensitive position.
    2. Annex B to this appendix sets forth statutory restrictions on 
agencies making certain eligibility determinations for access to 
classified information, as well as waiver and congressional 
reporting requirements. These amendments to the IRTPA are commonly 
referred to as the Bond Amendment. By definition, the risk to 
national security is equivalent for covered individuals with access 
to classified information and covered individuals occupying a 
sensitive position. Occupants of sensitive positions could bring 
about, by virtue of the nature of the position, a material adverse 
effect on the national security regardless of whether the occupant 
has access to classified information. Due to the equivalent adverse 
effect on the national security and to ensure uniformity, 
consistency, and reciprocity of national security background 
investigations and adjudications, the statutory restrictions imposed 
by the Bond Amendment are extended to apply to all covered 
individuals who require initial or continued eligibility for access 
to classified information or eligibility to hold a sensitive 
position. Authorized adjudicative agencies shall maintain a record 
of the number and type of meritorious waivers granted under Bond 
Amendment criteria, to include the rationale for each waiver, and 
shall report this data annually to the SecEA in advance of the 
annual report to Congress. Authorized adjudicative agencies will 
also maintain a record of all disqualifications due to Bond 
Amendment criteria.
    3. Exceptions, as provided for in annex C to this appendix, 
shall be used when a favorable adjudicative decision to grant 
initial or continued eligibility for access to classified 
information or to hold a sensitive position is made, despite failure 
to meet adjudicative or investigative standards.
    4. Eligibility shall be determined by appropriately trained 
adjudicative personnel through the evaluation of all information 
bearing on an individual's loyalty and allegiance to the United 
States, including any information relevant to strength of character, 
honesty, discretion, sound judgment, reliability, ability to protect 
classified or sensitive information, and trustworthiness. 
Eligibility for access to classified information or eligibility to 
occupy a sensitive position shall only be granted when the 
evaluation of all such information demonstrates that such 
eligibility is clearly consistent with the interests of the United 
States; any doubt shall be resolved in favor of the national 
security.

[[Page 57109]]

    5. All adjudicative determinations, including any associated 
exceptions, shall be recorded in either Scattered Castles, the Joint 
Personnel Adjudication System within the Department of Defense, or 
the Central Verification System database within U.S. Office of 
Personnel Management or successor databases, unless authorized by 
the SecEA to withhold information from the database for national 
security purposes.
    6. When an adjudicative determination is made to deny or revoke 
eligibility for access to classified information or eligibility to 
hold a sensitive position, review proceedings, to the extent they 
are made available in E.O. 12968, as amended, Part 5, shall be 
afforded covered individuals at a minimum.
    7. The agency with adjudicative authority remains responsible 
for the final determination.
    8. Agencies shall update internal policies and replace existing 
national security adjudicative criteria or guidelines with the 
guidelines in this appendix A no later than June 8, 2017.
    9. This Directive is not intended to, and does not, create any 
right to administrative or judicial review, or any other right or 
benefit, or trust responsibility substantive or procedural, 
enforceable by a party against the United States, its agencies or 
instrumentalities, its officers or employees, or any other person.
    F. Effective Date: This Directive becomes effective June 8, 
2017.

Annex A to Appendix A to Part 710--National Security Adjudicative 
Guidelines for Determining Eligibility for Access to Classified 
Information or Eligibility to Hold a Sensitive Position

1. Introduction

    (a) The following National Security Adjudicative Guidelines 
(``guidelines'') are established as the single common criteria for 
all U.S. Government civilian and military personnel, consultants, 
contractors, licensees, certificate holders or grantees and their 
employees, and other individuals who require initial or continued 
eligibility for access to classified information or eligibility to 
hold a sensitive position, to include access to sensitive 
compartmented information, restricted data, and controlled or 
special access program information (hereafter referred to as 
``national security eligibility''). These guidelines shall be used 
by all Executive Branch Agencies when rendering any final national 
security eligibility determination.
    (b) National security eligibility determinations take into 
account a person's stability, trustworthiness, reliability, 
discretion, character, honesty, and judgment. Individuals must be 
unquestionably loyal to the United States. No amount of oversight or 
security procedures can replace the self-discipline and integrity of 
an individual entrusted to protect the nation's secrets or occupying 
a sensitive position. When a person's life history shows evidence of 
unreliability or untrustworthiness, questions arise as to whether 
the individual can be relied upon and trusted to exercise the 
responsibility necessary for working in an environment where 
protecting the national security is paramount.
    (c) The U.S. Government does not discriminate on the basis of 
race, color, religion, sex, national origin, disability, or sexual 
orientation in making a national security eligibility determination. 
No negative inference concerning eligibility under these guidelines 
may be raised solely on the basis of mental health counseling. No 
adverse action concerning these guidelines may be taken solely on 
the basis of polygraph examination technical calls in the absence of 
adjudicatively significant information.
    (d) In accordance with E.O. 12968, as amended, eligibility for 
covered individuals shall be granted only when facts and 
circumstances indicate that eligibility is clearly consistent with 
the national security interests of the United States, and any doubt 
shall be resolved in favor of national security.

2. The Adjudicative Process

    (a) The adjudicative process is an examination of a sufficient 
period and a careful weighing of a number of variables of an 
individual's life to make an affirmative determination that the 
individual is an acceptable security risk. This is known as the 
whole-person concept. All available, reliable information about the 
person, past and present, favorable and unfavorable, should be 
considered in reaching a national security eligibility 
determination.
    (b) Each case must be judged on its own merits, and the final 
determination remains the responsibility of the authorized 
adjudicative agency. Any doubt concerning personnel being considered 
for national security eligibility will be resolved in favor of the 
national security.
    (c) The ultimate determination of whether the granting or 
continuing of national security eligibility is clearly consistent 
with the interests of national security must be an overall common 
sense judgment based upon careful consideration of the following 
guidelines, each of which is to be evaluated in the context of the 
whole person.

(1) GUIDELINE A: Allegiance to the United States
(2) GUIDELINE B: Foreign Influence
(3) GUIDELINE C: Foreign Preference
(4) GUIDELINE D: Sexual Behavior
(5) GUIDELINE E: Personal Conduct
(6) GUIDELINE F: Financial Considerations
(7) GUIDELINE G: Alcohol Consumption
(8) GUIDELINE H: Drug Involvement and Substance Misuse
(9) GUIDELINE I: Psychological Conditions
(10) GUIDELINE J: Criminal Conduct
(11) GUIDELINE K: Handling Protected Information
(12) GUIDELINE L: Outside Activities
(13) GUIDELINE M: Use of Information Technology

    (d) In evaluating the relevance of an individual's conduct, the 
adjudicator should consider the following factors:
    (1) The nature, extent, and seriousness of the conduct;
    (2) The circumstances surrounding the conduct, to include 
knowledgeable participation;
    (3) The frequency and recency of the conduct;
    (4) The individual's age and maturity at the time of the 
conduct;
    (5) The extent to which participation is voluntary;
    (6) The presence or absence of rehabilitation and other 
permanent behavioral changes;
    (7) The motivation for the conduct;
    (8) The potential for pressure, coercion, exploitation, or 
duress; and
    (9) The likelihood of continuation or recurrence.
    (e) Although adverse information concerning a single criterion 
may not be sufficient for an unfavorable eligibility determination, 
the individual may be found ineligible if available information 
reflects a recent or recurring pattern of questionable judgment, 
irresponsibility, or unstable behavior. However, a single criterion 
may be sufficient to make an unfavorable eligibility determination 
even in the absence of a recent occurrence or a recurring pattern. 
Notwithstanding the whole-person concept, pursuit of further 
investigation may be terminated by an appropriate adjudicative 
agency in the face of reliable, significant, disqualifying, adverse 
information.
    (f) When information of security concern becomes known about an 
individual who is currently eligible for access to classified 
information or eligible to hold a sensitive position, the 
adjudicator should consider whether the individual:
    (1) Voluntarily reported the information;
    (2) Was truthful and complete in responding to questions;
    (3) Sought assistance and followed professional guidance, where 
appropriate;
    (4) Resolved or appears likely to favorably resolve the security 
concern;
    (5) Has demonstrated positive changes in behavior; and
    (6) Should have his or her national security eligibility 
suspended pending final adjudication of the information.
    (g) If after evaluating information of security concern, the 
adjudicator decides the information is serious enough to warrant a 
recommendation of denial or revocation of the national security 
eligibility, but the specific risk to national security can be 
managed with appropriate mitigation measures, an adjudicator may 
recommend approval to grant initial or continued eligibility for 
access to classified information or to hold a sensitive position 
with an exception as defined in Appendix C of this document.
    (h) If after evaluating information of security concern, the 
adjudicator decides that the information is not serious enough to 
warrant a recommendation of denial or revocation of the national 
security eligibility, an adjudicator may recommend approval with a 
warning that future incidents of a similar nature or other incidents 
of adjudicative concern may result in revocation of national 
security eligibility.
    (i) It must be noted that the adjudicative process is predicated 
upon individuals providing relevant information pertaining to their 
background and character for use in investigating and adjudicating 
their national security eligibility. Any incident of intentional 
material falsification or

[[Page 57110]]

purposeful non-cooperation with security processing is of 
significant concern. Such conduct raises questions about an 
individual's judgment, reliability, and trustworthiness and may be 
predictive of their willingness or ability to protect the national 
security.

Guidelines

Guideline A: Allegiance to the United States

    3. The Concern. The willingness to safeguard classified or 
sensitive information is in doubt if there is any reason to suspect 
an individual's allegiance to the United States. There is no 
positive test for allegiance, but there are negative indicators. 
These include participation in or support for acts against the 
United States or placing the welfare or interests of another country 
above those of the United States. Finally, the failure to adhere to 
the laws of the United States may be relevant if the violation of 
law is harmful to stated U.S. interests. An individual who engages 
in acts against the United States or provides support or 
encouragement to those who do has already demonstrated willingness 
to compromise national security.
    4. Conditions that could raise a security concern and may be 
disqualifying include:
    (a) Involvement in, support of, training to commit, or advocacy 
of any act of sabotage, espionage, treason, terrorism, or sedition 
against the United States;
    (b) Association or sympathy with persons who are attempting to 
commit, or who are committing, any of the above acts; and
    (c) Association or sympathy with persons or organizations that 
advocate, threaten, or use force or violence, or use any other 
illegal or unconstitutional means, in an effort to:
    (1) Overthrow or influence the U.S. Government or any state or 
local government;
    (2) Prevent Federal, state, or local government personnel from 
performing their official duties;
    (3) Gain retribution for perceived wrongs caused by the Federal, 
state, or local government; and
    (4) Prevent others from exercising their rights under the 
Constitution or laws of the United States or of any state.
    5. Conditions that could mitigate security concerns include:
    (a) The individual was unaware of the unlawful aims of the 
individual or organization and severed ties upon learning of these;
    (b) The individual's involvement was humanitarian and permitted 
under U.S. law;
    (c) Involvement in the above activities occurred for only a 
short period of time and was attributable to curiosity or academic 
interest; and
    (d) The involvement or association with such activities occurred 
under such unusual circumstances, or so much time has elapsed, that 
it is unlikely to recur and does not cast doubt on the individual's 
current reliability, trustworthiness, or allegiance.

Guideline B: Foreign Influence

    6. The Concern. Foreign contacts and interests, including, but 
not limited to, business, financial, and property interests, are a 
national security concern if they result in divided allegiance. They 
may also be a national security concern if they create circumstances 
in which the individual may be manipulated or induced to help a 
foreign person, group, organization, or government in a way 
inconsistent with U.S. interests or otherwise made vulnerable to 
pressure or coercion by any foreign interest. Assessment of foreign 
contacts and interests should consider the country in which the 
foreign contact or interest is located, including, but not limited 
to, considerations such as whether it is known to target U.S. 
citizens to obtain classified or sensitive information or is 
associated with a risk of terrorism.
    7. Conditions that could raise a security concern and may be 
disqualifying include:
    (a) Contact, regardless of method, with a foreign family member, 
business or professional associate, friend, or other person who is a 
citizen of or resident in a foreign country if that contact creates 
a heightened risk of foreign exploitation, inducement, manipulation, 
pressure, or coercion;
    (b) Connections to a foreign person, group, government, or 
country that create a potential conflict of interest between the 
individual's obligation to protect classified or sensitive 
information or technology and the individual's desire to help a 
foreign person, group, or country by providing that information or 
technology;
    (c) Failure to report or fully disclose, when required, 
association with a foreign person, group, government, or country;
    (d) Counterintelligence information, whether classified or 
unclassified, that indicates the individual's access to classified 
information or eligibility for a sensitive position may involve 
unacceptable risk to national security;
    (e) Shared living quarters with a person or persons, regardless 
of citizenship status, if that relationship creates a heightened 
risk of foreign inducement, manipulation, pressure, or coercion;
    (f) Substantial business, financial, or property interests in a 
foreign country, or in any foreignowned or foreign-operated business 
that could subject the individual to a heightened risk of foreign 
influence or exploitation or personal conflict of interest;
    (g) Unauthorized association with a suspected or known agent, 
associate, or employee of a foreign intelligence entity;
    (h) Indications that representatives or nationals from a foreign 
country are acting to increase the vulnerability of the individual 
to possible future exploitation, inducement, manipulation, pressure, 
or coercion; and
    (i) Conduct, especially while traveling or residing outside the 
U.S., that may make the individual vulnerable to exploitation, 
pressure, or coercion by a foreign person, group, government, or 
country.
    8. Conditions that could mitigate security concerns include:
    (a) The nature of the relationships with foreign persons, the 
country in which these persons are located, or the positions or 
activities of those persons in that country are such that it is 
unlikely the individual will be placed in a position of having to 
choose between the interests of a foreign individual, group, 
organization, or government and the interests of the United States;
    (b) There is no conflict of interest, either because the 
individual's sense of loyalty or obligation to the foreign person, 
or allegiance to the group, government, or country is so minimal, or 
the individual has such deep and longstanding relationships and 
loyalties in the United States, that the individual can be expected 
to resolve any conflict of interest in favor of the U.S. interest;
    (c) Contact or communication with foreign citizens is so casual 
and infrequent that there is little likelihood that it could create 
a risk for foreign influence or exploitation;
    (d) The foreign contacts and activities are on U.S. Government 
business or are approved by the agency head or designee;
    (e) The individual has promptly complied with existing agency 
requirements regarding the reporting of contacts, requests, or 
threats from persons, groups, or organizations from a foreign 
country; and
    (f) The value or routine nature of the foreign business, 
financial, or property interests is such that they are unlikely to 
result in a conflict and could not be used effectively to influence, 
manipulate, or pressure the individual.

Guideline C: Foreign Preference

    9. The Concern. When an individual acts in such a way as to 
indicate a preference for a foreign country over the United States, 
then he or she may provide information or make decisions that are 
harmful to the interests of the United States. Foreign involvement 
raises concerns about an individual's judgment, reliability, and 
trustworthiness when it is in conflict with U.S. national interests 
or when the individual acts to conceal it. By itself, the fact that 
a U.S. citizen is also a citizen of another country is not 
disqualifying without an objective showing of such conflict or 
attempt at concealment. The same is true for a U.S. citizen's 
exercise of any right or privilege of foreign citizenship and any 
action to acquire or obtain recognition of a foreign citizenship.
    10. Conditions that could raise a security concern and may be 
disqualifying include:
    (a) Applying for and/or acquiring citizenship in any other 
country;
    (b) Failure to report, or fully disclose when required, to an 
appropriate security official, the possession of a passport or 
identity card issued by any country other than the United States;
    (c) Failure to use a U.S. passport when entering or exiting the 
U.S.;
    (d) Participation in foreign activities, including but not 
limited to:
    (1) Assuming or attempting to assume any type of employment, 
position, or political office in a foreign government or military 
organization; and
    (2) Otherwise acting to serve the interests of a foreign person, 
group, organization, or government in any way that conflicts with 
U.S. national security interests;
    (e) Using foreign citizenship to protect financial or business 
interests in another country in violation of U.S. law; and
    (f) An act of expatriation from the United States such as 
declaration of intent to renounce U.S. citizenship, whether through 
words or actions.
    11. Conditions that could mitigate security concerns include:

[[Page 57111]]

    (a) The foreign citizenship is not in conflict with U.S. 
national security interests;
    (b) Dual citizenship is based solely on parental citizenship or 
birth in a foreign country, and there is no evidence of foreign 
preference;
    (c) The individual has expressed a willingness to renounce the 
foreign citizenship that is in conflict with U.S. national security 
interests;
    (d) The exercise of the rights, privileges, or obligations of 
foreign citizenship occurred before the individual became a U.S. 
citizen;
    (e) The exercise of the entitlements or benefits of foreign 
citizenship do not present a national security concern;
    (f) The foreign preference, if detected, involves a foreign 
country, entity, or association that poses a low national security 
risk;
    (g) Civil employment or military service was authorized under 
U.S. law, or the employment or service was otherwise consented to as 
required by U.S. law; and
    (h) Any potentially disqualifying activity took place after 
receiving the approval by the agency head or designee.

Guideline D: Sexual Behavior

    12. The Concern. Sexual behavior that involves a criminal 
offense; reflects a lack of judgment or discretion; or may subject 
the individual to undue influence of coercion, exploitation, or 
duress. These issues, together or individually, may raise questions 
about an individual's judgment, reliability, trustworthiness, and 
ability to protect classified or sensitive information. Sexual 
behavior includes conduct occurring in person or via audio, visual, 
electronic, or written transmission. No adverse inference concerning 
the standards in this Guideline may be raised solely on the basis of 
the sexual orientation of the individual.
    13. Conditions that could raise a security concern and may be 
disqualifying include:
    (a) Sexual behavior of a criminal nature, whether or not the 
individual has been prosecuted;
    (b) A pattern of compulsive, self-destructive, or high-risk 
sexual behavior that the individual is unable to stop;
    (c) Sexual behavior that causes an individual to be vulnerable 
to coercion, exploitation, or duress; and
    (d) Sexual behavior of a public nature or that reflects lack of 
discretion or judgment.
    14. Conditions that could mitigate security concerns include:
    (a) The behavior occurred prior to or during adolescence and 
there is no evidence of subsequent conduct of a similar nature;
    (b) The sexual behavior happened so long ago, so infrequently, 
or under such unusual circumstances, that it is unlikely to recur 
and does not cast doubt on the individual's current reliability, 
trustworthiness, or judgment;
    (c) The behavior no longer serves as a basis for coercion, 
exploitation, or duress;
    (d) The sexual behavior is strictly private, consensual, and 
discreet; and
    (e) The individual has successfully completed an appropriate 
program of treatment, or is currently enrolled in one, has 
demonstrated ongoing and consistent compliance with the treatment 
plan, and/or has received a favorable prognosis from a qualified 
mental health professional indicating the behavior is readily 
controllable with treatment.

Guideline E: Personal Conduct

    15. The Concern. Conduct involving questionable judgment, lack 
of candor, dishonesty, or unwillingness to comply with rules and 
regulations can raise questions about an individual's reliability, 
trustworthiness, and ability to protect classified or sensitive 
information. Of special interest is any failure to cooperate or 
provide truthful and candid answers during national security 
investigative or adjudicative processes. The following will normally 
result in an unfavorable national security eligibility 
determination, security clearance action, or cancellation of further 
processing for national security eligibility:
    (a) Refusal, or failure without reasonable cause, to undergo or 
cooperate with security processing, including but not limited to 
meeting with a security investigator for subject interview, 
completing security forms or releases, cooperation with medical or 
psychological evaluation, or polygraph examination, if authorized 
and required; and
    (b) Refusal to provide full, frank, and truthful answers to 
lawful questions of investigators, security officials, or other 
official representatives in connection with a personnel security or 
trustworthiness determination.
    16. Conditions that could raise a security concern and may be 
disqualifying include:
    (a) Deliberate omission, concealment, or falsification of 
relevant facts from any personnel security questionnaire, personal 
history statement, or similar form used to conduct investigations, 
determine employment qualifications, award benefits or status, 
determine national security eligibility or trustworthiness, or award 
fiduciary responsibilities;
    (b) Deliberately providing false or misleading information; or 
concealing or omitting information, concerning relevant facts to an 
employer, investigator, security official, competent medical or 
mental health professional involved in making a recommendation 
relevant to a national security eligibility determination, or other 
official government representative;
    (c) Credible adverse information in several adjudicative issue 
areas that is not sufficient for an adverse determination under any 
other single guideline, but which, when considered as a whole, 
supports a whole-person assessment of questionable judgment, 
untrustworthiness, unreliability, lack of candor, unwillingness to 
comply with rules and regulations, or other characteristics 
indicating that the individual may not properly safeguard classified 
or sensitive information;
    (d) Credible adverse information that is not explicitly covered 
under any other guideline and may not be sufficient by itself for an 
adverse determination, but which, when combined with all available 
information, supports a whole-person assessment of questionable 
judgment, untrustworthiness, unreliability, lack of candor, 
unwillingness to comply with rules and regulations, or other 
characteristics indicating that the individual may not properly 
safeguard classified or sensitive information. This includes, but is 
not limited to, consideration of:
    (1) Untrustworthy or unreliable behavior to include breach of 
client confidentiality, release of proprietary information, 
unauthorized release of sensitive corporate or government protected 
information;
    (2) Any disruptive, violent, or other inappropriate behavior;
    (3) A pattern of dishonesty or rule violations; and
    (4) Evidence of significant misuse of Government or other 
employer's time or resources;
    (e) Personal conduct, or concealment of information about one's 
conduct, that creates a vulnerability to exploitation, manipulation, 
or duress by a foreign intelligence entity or other individual or 
group. Such conduct includes:
    (1) Engaging in activities which, if known, could affect the 
person's personal, professional, or community standing;
    (2) While in another country, engaging in any activity that is 
illegal in that country;
    (3) While in another country, engaging in any activity that, 
while legal there, is illegal in the United States;
    (f) Violation of a written or recorded commitment made by the 
individual to the employer as a condition of employment; and
    (g) Association with persons involved in criminal activity.
    17. Conditions that could mitigate security concerns include:
    (a) The individual made prompt, good-faith efforts to correct 
the omission, concealment, or falsification before being confronted 
with the facts;
    (b) The refusal or failure to cooperate, omission, or 
concealment was caused or significantly contributed to by advice of 
legal counsel or of a person with professional responsibilities for 
advising or instructing the individual specifically concerning 
security processes. Upon being made aware of the requirement to 
cooperate or provide the information, the individual cooperated 
fully and truthfully;
    (c) The offense is so minor, or so much time has passed, or the 
behavior is so infrequent, or it happened under such unique 
circumstances that it is unlikely to recur and does not cast doubt 
on the individual's reliability, trustworthiness, or good judgment;
    (d) The individual has acknowledged the behavior and obtained 
counseling to change the behavior or taken other positive steps to 
alleviate the stressors, circumstances, or factors that contributed 
to untrustworthy, unreliable, or other inappropriate behavior, and 
such behavior is unlikely to recur;
    (e) The individual has taken positive steps to reduce or 
eliminate vulnerability to exploitation, manipulation, or duress;
    (f) The information was unsubstantiated or from a source of 
questionable reliability; and
    (g) Association with persons involved in criminal activities was 
unwitting, has ceased, or occurs under circumstances that do not 
cast doubt upon the individual's reliability, trustworthiness, 
judgment, or willingness to comply with rules and regulations.

[[Page 57112]]

Guideline F: Financial Considerations

    18. The Concern. Failure to live within one's means, satisfy 
debts, and meet financial obligations may indicate poor self-
control, lack of judgment, or unwillingness to abide by rules and 
regulations, all of which can raise questions about an individual's 
reliability, trustworthiness, and ability to protect classified or 
sensitive information. Financial distress can also be caused or 
exacerbated by, and thus can be a possible indicator of, other 
issues of personnel security concern such as excessive gambling, 
mental health conditions, substance misuse, or alcohol abuse or 
dependence. An individual who is financially overextended is at 
greater risk of having to engage in illegal or otherwise 
questionable acts to generate funds. Affluence that cannot be 
explained by known sources of income is also a security concern 
insofar as it may result from criminal activity, including 
espionage.
    19. Conditions that could raise a security concern and may be 
disqualifying include:
    (a) Inability to satisfy debts;
    (b) Unwillingness to satisfy debts regardless of the ability to 
do so;
    (c) A history of not meeting financial obligations;
    (d) Deceptive or illegal financial practices such as 
embezzlement, employee theft, check fraud, expense account fraud, 
mortgage fraud, filing deceptive loan statements and other 
intentional financial breaches of trust;
    (e) Consistent spending beyond one's means or frivolous or 
irresponsible spending, which may be indicated by excessive 
indebtedness, significant negative cash flow, a history of late 
payments or of non-payment, or other negative financial indicators;
    (f) Failure to file or fraudulently filing annual Federal, 
state, or local income tax returns or failure to pay annual Federal, 
state, or local income tax as required;
    (g) Unexplained affluence, as shown by a lifestyle or standard 
of living, increase in net worth, or money transfers that are 
inconsistent with known legal sources of income;
    (h) Borrowing money or engaging in significant financial 
transactions to fund gambling or pay gambling debts; and
    (i) Concealing gambling losses, family conflict, or other 
problems caused by gambling.
    20. Conditions that could mitigate security concerns include:
    (a) The behavior happened so long ago, was so infrequent, or 
occurred under such circumstances that it is unlikely to recur and 
does not cast doubt on the individual's current reliability, 
trustworthiness, or good judgment;
    (b) The conditions that resulted in the financial problem were 
largely beyond the person's control (e.g., loss of employment, a 
business downturn, unexpected medical emergency, a death, divorce or 
separation, clear victimization by predatory lending practices, or 
identity theft), and the individual acted responsibly under the 
circumstances;
    (c) The individual has received or is receiving financial 
counseling for the problem from a legitimate and credible source, 
such as a non-profit credit counseling service, and there are clear 
indications that the problem is being resolved or is under control;
    (d) The individual initiated and is adhering to a good-faith 
effort to repay overdue creditors or otherwise resolve debts;
    (e) The individual has a reasonable basis to dispute the 
legitimacy of the past-due debt which is the cause of the problem 
and provides documented proof to substantiate the basis of the 
dispute or provides evidence of actions to resolve the issue;
    (f) The affluence resulted from a legal source of income; and
    (g) The individual has made arrangements with the appropriate 
tax authority to file or pay the amount owed and is in compliance 
with those arrangements.

Guideline G: Alcohol Consumption

    21. The Concern. Excessive alcohol consumption often leads to 
the exercise of questionable judgment or the failure to control 
impulses, and can raise questions about an individual's reliability 
and trustworthiness.
    22. Conditions that could raise a security concern and may be 
disqualifying include:
    (a) Alcohol-related incidents away from work, such as driving 
while under the influence, fighting, child or spouse abuse, 
disturbing the peace, or other incidents of concern, regardless of 
the frequency of the individual's alcohol use or whether the 
individual has been diagnosed with alcohol use disorder;
    (b) Alcohol-related incidents at work, such as reporting for 
work or duty in an intoxicated or impaired condition, drinking on 
the job, or jeopardizing the welfare and safety of others, 
regardless of whether the individual is diagnosed with alcohol use 
disorder;
    (c) Habitual or binge consumption of alcohol to the point of 
impaired judgment, regardless of whether the individual is diagnosed 
with alcohol use disorder;
    (d) Diagnosis by a duly qualified medical or mental health 
professional (e.g., physician, clinical psychologist, psychiatrist, 
or licensed clinical social worker) of alcohol use disorder;
    (e) The failure to follow treatment advice once diagnosed;
    (f) Alcohol consumption, which is not in accordance with 
treatment recommendations, after a diagnosis of alcohol use 
disorder; and
    (g) Failure to follow any court order regarding alcohol 
education, evaluation, treatment, or abstinence.
    23. Conditions that could mitigate security concerns include:
    (a) So much time has passed, or the behavior was so infrequent, 
or it happened under such unusual circumstances that it is unlikely 
to recur or does not cast doubt on the individual's current 
reliability, trustworthiness, or judgment;
    (b) The individual acknowledges his or her pattern of 
maladaptive alcohol use, provides evidence of actions taken to 
overcome this problem, and has demonstrated a clear and established 
pattern of modified consumption or abstinence in accordance with 
treatment recommendations;
    (c) The individual is participating in counseling or a treatment 
program, has no previous history of treatment and relapse, and is 
making satisfactory progress in a treatment program; and
    (d) The individual has successfully completed a treatment 
program along with any required aftercare, and has demonstrated a 
clear and established pattern of modified consumption or abstinence 
in accordance with treatment recommendations.

Guideline H: Drug Involvement \1\ and Substance Misuse
---------------------------------------------------------------------------

    \1\ Reference annex B to this appendix regarding statutory 
requirements contained in Public Law 110-118 (Bond Amendment) 
applicable to this guideline.
---------------------------------------------------------------------------

    24. The Concern. The illegal use of controlled substances, to 
include the misuse of prescription and non-prescription drugs, and 
the use of other substances that cause physical or mental impairment 
or are used in a manner inconsistent with their intended purpose can 
raise questions about an individual's reliability and 
trustworthiness, both because such behavior may lead to physical or 
psychological impairment and because it raises questions about a 
person's ability or willingness to comply with laws, rules, and 
regulations. Controlled substance means any ``controlled substance'' 
as defined in 21 U.S.C. 802. Substance misuse is the generic term 
adopted in this guideline to describe any of the behaviors listed in 
this paragraph.
    25. Conditions that could raise a security concern and may be 
disqualifying include:
    (a) Any substance misuse (see definition listed in paragraph 
24);
    (b) Testing positive for an illegal drug;
    (c) Illegal possession of a controlled substance, including 
cultivation, processing, manufacture, purchase, sale, or 
distribution; or possession of drug paraphernalia;
    (d) Diagnosis by a duly qualified medical or mental health 
professional (e.g., physician, clinical psychologist, psychiatrist, 
or licensed clinical social worker) of substance use disorder;
    (e) Failure to successfully complete a drug treatment program 
prescribed by a duly qualified medical or mental health 
professional;
    (f) Any illegal drug use while granted access to classified 
information or holding a sensitive position; and
    (g) Expressed intent to continue drug involvement and substance 
misuse, or failure to clearly and convincingly commit to discontinue 
such misuse.
    26. Conditions that could mitigate security concerns include:
    (a) The behavior happened so long ago, was so infrequent, or 
happened under such circumstances that it is unlikely to recur or 
does not cast doubt on the individual's current reliability, 
trustworthiness, or good judgment;
    (b) The individual acknowledges his or her drug involvement and 
substance misuse, provides evidence of actions taken to overcome 
this problem, and has established a pattern of abstinence, 
including, but not limited to:
    (1) Disassociation from drug-using associates and contacts;

[[Page 57113]]

    (2) Changing or avoiding the environment where drugs were used; 
and
    (3) Providing a signed statement of intent to abstain from all 
drug involvement and substance misuse, acknowledging that any future 
involvement or misuse is grounds for revocation of national security 
eligibility;
    (c) Abuse of prescription drugs was after a severe or prolonged 
illness during which these drugs were prescribed, and abuse has 
since ended; and
    (d) Satisfactory completion of a prescribed drug treatment 
program, including, but not limited to, rehabilitation and aftercare 
requirements, without recurrence of abuse, and a favorable prognosis 
by a duly qualified medical professional.

Guideline I: Psychological Conditions \2\
---------------------------------------------------------------------------

    \2\ Reference annex B to this appendix regarding statutory 
requirements contained in Public Law 110-118 (Bond Amendment) 
applicable to this guideline.
---------------------------------------------------------------------------

    27. The Concern. Certain emotional, mental, and personality 
conditions can impair judgment, reliability, or trustworthiness. A 
formal diagnosis of a disorder is not required for there to be a 
concern under this guideline. A duly qualified mental health 
professional (e.g., clinical psychologist or psychiatrist) employed 
by, or acceptable to and approved by the U.S. Government, should be 
consulted when evaluating potentially disqualifying and mitigating 
information under this guideline and an opinion, including 
prognosis, should be sought. No negative inference concerning the 
standards in this guideline may be raised solely on the basis of 
mental health counseling.
    28. Conditions that could raise a security concern and may be 
disqualifying include:
    (a) Behavior that casts doubt on an individual's judgment, 
stability, reliability, or trustworthiness, not covered under any 
other guideline and that may indicate an emotional, mental, or 
personality condition, including, but not limited to, irresponsible, 
violent, self-harm, suicidal, paranoid, manipulative, impulsive, 
chronic lying, deceitful, exploitative, or bizarre behaviors;
    (b) An opinion by a duly qualified mental health professional 
that the individual has a condition that may impair judgment, 
stability, reliability, or trustworthiness;
    (c) Voluntary or involuntary inpatient hospitalization;
    (d) Failure to follow a prescribed treatment plan related to a 
diagnosed psychological/psychiatric condition that may impair 
judgment, stability, reliability, or trustworthiness, including, but 
not limited to, failure to take prescribed medication or failure to 
attend required counseling sessions; and
    (e) Pathological gambling, the associated behaviors of which may 
include unsuccessful attempts to stop gambling; gambling for 
increasingly higher stakes, usually in an attempt to cover losses; 
concealing gambling losses; borrowing or stealing money to fund 
gambling or pay gambling debts; and family conflict resulting from 
gambling.
    29. Conditions that could mitigate security concerns include:
    (a) The identified condition is readily controllable with 
treatment, and the individual has demonstrated ongoing and 
consistent compliance with the treatment plan;
    (b) The individual has voluntarily entered a counseling or 
treatment program for a condition that is amenable to treatment, and 
the individual is currently receiving counseling or treatment with a 
favorable prognosis by a duly qualified mental health professional;
    (c) Recent opinion by a duly qualified mental health 
professional employed by, or acceptable to and approved by, the U.S. 
Government that an individual's previous condition is under control 
or in remission, and has a low probability of recurrence or 
exacerbation;
    (d) The past psychological/psychiatric condition was temporary, 
the situation has been resolved, and the individual no longer shows 
indications of emotional instability;
    (e) There is no indication of a current problem.

Guideline J: Criminal Conduct \3\
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    \3\ Reference annex B to this appendix regarding statutory 
requirements contained in Public Law 110-118 (Bond Amendment) 
applicable to this guideline.
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    30. The Concern. Criminal activity creates doubt about a 
person's judgment, reliability, and trustworthiness. By its very 
nature, it calls into question a person's ability or willingness to 
comply with laws, rules, and regulations.
    31. Conditions that could raise a security concern and may be 
disqualifying include:
    (a) A pattern of minor offenses, any one of which on its own 
would be unlikely to affect a national security eligibility 
decision, but which in combination cast doubt on the individual's 
judgment, reliability, or trustworthiness;
    (b) Evidence (including, but not limited to, a credible 
allegation, an admission, and matters of official record) of 
criminal conduct, regardless of whether the individual was formally 
charged, prosecuted, or convicted;
    (c) Individual is currently on parole or probation;
    (d) Violation or revocation of parole or probation, or failure 
to complete a court-mandated rehabilitation program; and
    (e) Discharge or dismissal from the Armed Forces for reasons 
less than ``Honorable.''
    32. Conditions that could mitigate security concerns include:
    (a) So much time has elapsed since the criminal behavior 
happened, or it happened under such unusual circumstances, that it 
is unlikely to recur and does not cast doubt on the individual's 
reliability, trustworthiness, or good judgment;
    (b) The individual was pressured or coerced into committing the 
act and those pressures are no longer present in the person's life;
    (c) No reliable evidence to support that the individual 
committed the offense; and
    (d) There is evidence of successful rehabilitation; including, 
but not limited to, the passage of time without recurrence of 
criminal activity, restitution, compliance with the terms of parole 
or probation, job training or higher education, good employment 
record, or constructive community involvement.

Guideline K: Handling Protected Information

    33. The Concern. Deliberate or negligent failure to comply with 
rules and regulations for handling protected information--which 
includes classified and other sensitive government information, and 
proprietary information--raises doubt about an individual's 
trustworthiness, judgment, reliability, or willingness and ability 
to safeguard such information, and is a serious security concern.
    34. Conditions that could raise a security concern and may be 
disqualifying include:
    (a) Deliberate or negligent disclosure of protected information 
to unauthorized persons, including, but not limited to, personal or 
business contacts, the media, or persons present at seminars, 
meetings, or conferences;
    (b) Collecting or storing protected information in any 
unauthorized location;
    (c) Loading, drafting, editing, modifying, storing, 
transmitting, or otherwise handling protected information, including 
images, on any unauthorized equipment or medium;
    (d) Inappropriate efforts to obtain or view protected 
information outside one's need to know;
    (e) Copying or modifying protected information in an 
unauthorized manner designed to conceal or remove classification or 
other document control markings;
    (f) Viewing or downloading information from a secure system when 
the information is beyond the individual's need-to-know;
    (g) Any failure to comply with rules for the protection of 
classified or sensitive information;
    (h) Negligence or lax security practices that persist despite 
counseling by management; and
    (i) Failure to comply with rules or regulations that results in 
damage to the national security, regardless of whether it was 
deliberate or negligent.
    35. Conditions that could mitigate security concerns include:
    (a) So much time has elapsed since the behavior, or it has 
happened so infrequently or under such unusual circumstances, that 
it is unlikely to recur and does not cast doubt on the individual's 
current reliability, trustworthiness, or good judgment;
    (b) The individual responded favorably to counseling or remedial 
security training and now demonstrates a positive attitude toward 
the discharge of security responsibilities;
    (c) The security violations were due to improper or inadequate 
training or unclear instructions; and
    (d) The violation was inadvertent, it was promptly reported, 
there is no evidence of compromise, and it does not suggest a 
pattern.

Guideline L: Outside Activities

    36. The Concern. Involvement in certain types of outside 
employment or activities is of security concern if it poses a 
conflict of interest with an individual's security

[[Page 57114]]

responsibilities and could create an increased risk of unauthorized 
disclosure of classified or sensitive information.
    37. Conditions that could raise a security concern and may be 
disqualifying include:
    (a) Any employment or service, whether compensated or volunteer, 
with:
    (1) The government of a foreign country;
    (2) Any foreign national, organization, or other entity;
    (3) A representative of any foreign interest; and
    (4) Any foreign, domestic, or international organization or 
person engaged in analysis, discussion, or publication of material 
on intelligence, defense, foreign affairs, or protected technology; 
and
    (b) Failure to report or fully disclose an outside activity when 
this is required.
    38. Conditions that could mitigate security concerns include:
    (a) Evaluation of the outside employment or activity by the 
appropriate security or counterintelligence office indicates that it 
does not pose a conflict with an individual's security 
responsibilities or with the national security interests of the 
United States; and
    (b) The individual terminated the employment or discontinued the 
activity upon being notified that it was in conflict with his or her 
security responsibilities.

Guideline M: Use of Information Technology

    39. The Concern. Failure to comply with rules, procedures, 
guidelines, or regulations pertaining to information technology 
systems may raise security concerns about an individual's 
reliability and trustworthiness, calling into question the 
willingness or ability to properly protect sensitive systems, 
networks, and information. Information Technology includes any 
computer-based, mobile, or wireless device used to create, store, 
access, process, manipulate, protect, or move information. This 
includes any component, whether integrated into a larger system or 
not, such as hardware, software, or firmware, used to enable or 
facilitate these operations.
    40. Conditions that could raise a security concern and may be 
disqualifying include:
    (a) Unauthorized entry into any information technology system;
    (b) Unauthorized modification, destruction, or manipulation of, 
or denial of access to, an information technology system or any data 
in such a system;
    (c) Use of any information technology system to gain 
unauthorized access to another system or to a compartmented area 
within the same system;
    (d) Downloading, storing, or transmitting classified, sensitive, 
proprietary, or other protected information on or to any 
unauthorized information technology system;
    (e) Unauthorized use of any information technology system;
    (f) Introduction, removal, or duplication of hardware, firmware, 
software, or media to or from any information technology system when 
prohibited by rules, procedures, guidelines, or regulations or when 
otherwise not authorized;
    (g) Negligence or lax security practices in handling information 
technology that persists despite counseling by management; and
    (h) Any misuse of information technology, whether deliberate or 
negligent, that results in damage to the national security.
    41. Conditions that could mitigate security concerns include:
    (a) So much time has elapsed since the behavior happened, or it 
happened under such unusual circumstances, that it is unlikely to 
recur and does not cast doubt on the individual's reliability, 
trustworthiness, or good judgment;
    (b) The misuse was minor and done solely in the interest of 
organizational efficiency and effectiveness;
    (c) The conduct was unintentional or inadvertent and was 
followed by a prompt, good-faith effort to correct the situation and 
by notification to appropriate personnel; and
    (d) The misuse was due to improper or inadequate training or 
unclear instructions.

Annex B to Appendix A to Part 710--Bond Amendment Guidance

    On January 28, 2008, Congress amended the IRTPA of 2004, adding 
statutory restrictions on certain eligibility determinations and 
establishing waiver and congressional reporting requirements. These 
modifications are collectively referred to as the ``Bond 
Amendments'' and were made effective on January 1, 2008.\4\ For the 
reasons identified in paragraph E.2 of this appendix, application of 
the Bond Amendment's statutory restrictions will be applied to all 
adjudications covered under this Directive.
---------------------------------------------------------------------------

    \4\ IRTPA of 2004 section 3002, 50 U.S.C. 3343.
---------------------------------------------------------------------------

    1. Prohibition: Heads of agencies are prohibited from granting 
or renewing national security eligibility for any covered individual 
who is an unlawful user of a controlled substance or is an addict as 
defined. If an authorized adjudicative agency has a case pending 
review that involves an unlawful user of a controlled substance or 
an addict, the statutory prohibition must be applied and the 
individual will receive the agency's established administrative 
review procedures. A meritorious waiver may not be authorized with 
reference to this prohibition. For purposes of this prohibition:
    (a) An ``addict'' is any individual who habitually uses any 
narcotic drug so as to endanger the public morals, health, safety, 
or welfare; or is so far addicted to the use of narcotic drugs as to 
have lost the power of self-control with reference to his addiction.
    (b) A ``controlled substance'' means any ``controlled 
substance'' as defined in 21 U.S.C. 802.
    2. Disqualification: The Bond Amendment also contains 
disqualification provisions which apply only to those covered 
individuals seeking access to Sensitive Compartmented Information 
(SCI), Special Access Programs (SAP), or Restricted Data (RD). Heads 
of agencies may not grant or renew access to SCI, SAP, or RD to a 
covered individual who:
    (a) Has been convicted in any court of the U.S. of a crime, was 
sentenced to imprisonment for a term exceeding one year, and was 
incarcerated as a result of that sentence for not less than one 
year;
    (b) Has been discharged or dismissed from the Armed Forces under 
dishonorable conditions; or
    (c) Is determined to be mentally incompetent; an individual is 
``mentally incompetent'' when he or she has been declared mentally 
incompetent as determined by competency proceedings conducted in a 
court or administrative agency with proper jurisdiction.
    3. Waiver Standard and Procedures: When a disqualifier reflected 
in paragraphs 2(a) through (c) of this annex B exists, the 
adjudicator will proceed with the adjudication using the appropriate 
mitigation conditions found in these adjudicative guidelines. If the 
adjudicator would have arrived at a favorable decision but for the 
Bond Amendment disqualification, a meritorious waiver may be 
appropriate.
    (a) Meritorious waivers will be considered an ``Exception'' to 
the adjudicative guidelines and will be annotated as a ``Waiver'' in 
the adjudicative decision recorded in the appropriate databases 
listed in paragraph E.5 of this appendix. Adjudicators will provide 
a detailed justification for the meritorious waiver in the final 
adjudicative report.
    (b) If, after applying the appropriate mitigating factors listed 
in these adjudicative guidelines, a meritorious waiver is not 
appropriate, the SCI, SAP, or RD access will be denied or revoked 
with a written explanation that cites the adjudicative guidelines 
applied and the Bond Amendment disqualifier. The authorized 
adjudicative agency's established administrative review procedures 
shall be followed in all such cases.
    (c) Each authorized adjudicative agency shall maintain a record 
of the number and type of meritorious waivers granted, to include 
the rationale for each waiver, and shall report this data annually 
to the SecEA in advance of the annual report to Congress. Authorized 
adjudicative agencies will also maintain a record of all 
disqualifications, broken down by type, due to Bond Amendment 
requirements.
    4. Authorized adjudicative agencies often have no ability to 
predict whether the covered individual for whom national security 
eligibility determinations are being made will also require access 
to SCI, SAP, or RD. Accordingly, the guidance in paragraphs 4(a) and 
(b) applies to all national security adjudicative determinations:
    (a) All adjudicators will determine whether any of the Bond 
Amendment disqualifiers in paragraphs 2(a) through (c) of this annex 
B apply to the case being adjudicated.
    (b) If a disqualifier exists, adjudicators shall annotate that 
fact in one of the databases identified in paragraph E.5 of this 
annex B to ensure that any subsequent requests for access to SCI, 
SAP, or RD for the individual will undergo appropriate re-
adjudication and waiver procedures in meritorious cases.

Annex C to Appendix A to Part 710--Exceptions

    Exceptions are an adjudicative decision to grant initial or 
continued eligibility for access to classified information or to 
hold a sensitive position despite failure to meet the

[[Page 57115]]

full adjudicative or investigative standards. The authorized 
exceptions are defined below and supersede the definitions in Office 
of Management and Budget memorandum, Reciprocal Recognition of 
Existing Personnel Security Clearances, 14 November 2007.
    Waiver (W): Eligibility granted or continued despite the 
presence of substantial issue information that would normally 
preclude eligibility. Approval authorities may approve a waiver only 
when the benefit of initial or continued eligibility clearly 
outweighs any security concerns. A waiver may also require 
conditions for eligibility as described below.
    Condition (C): Eligibility granted or continued, despite the 
presence of issue information that can be partially but not 
completely mitigated, with the provision that additional security 
measures shall be required to mitigate the issue(s). Such measures 
include, but are not limited to, additional security monitoring, 
access restrictions, submission of periodic financial statements, or 
attendance at counseling sessions.
    Deviation (D): Eligibility granted or continued despite either a 
significant gap in coverage or scope of the investigation. 
``Significant gap'' for this purpose means either complete lack of 
coverage for a period of six months or longer within the most recent 
five years investigated or the lack of one or more relevant 
investigative scope components (e.g., employment checks, financial 
review, or a subject interview) in its entirety.
    Out of Scope (O): Reinvestigation is overdue.

[FR Doc. 2017-25257 Filed 12-1-17; 8:45 am]
 BILLING CODE 6450-01-P