    [United States Statutes at Large, Volume 124, 111th Congress, 2nd Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    Public Law 111-258
    111th Congress

    An Act

    To require the Secretary of Homeland Security to develop a strategy to
    prevent the over-classification of homeland security and other
    information and to promote the sharing of unclassified homeland security
    and other information, and for other purposes. <>

    Be it enacted by the Senate and House of Representatives of the
    United States of America in Congress assembled, <>
    SECTION 1. <> SHORT TITLE.

    This Act may be cited as the ``Reducing Over-Classification Act''.
    SEC. 2. <> FINDINGS.

    Congress finds the following:
    (1) The National Commission on Terrorist Attacks Upon the
    United States (commonly known as the ``9/11 Commission'')
    concluded that security requirements nurture over-classification
    and excessive compartmentation of information among agencies.
    (2) The 9/11 Commission and others have observed that the
    over-classification of information interferes with accurate,
    actionable, and timely information sharing, increases the cost
    of information security, and needlessly limits stakeholder and
    public access to information.
    (3) Over-classification of information causes considerable
    confusion regarding what information may be shared with whom,
    and negatively affects the dissemination of information within
    the Federal Government and with State, local, and tribal
    entities, and with the private sector.
    (4) Over-classification of information is antithetical to
    the creation and operation of the information sharing
    environment established under section 1016 of the Intelligence
    Reform and Terrorism Prevention Act of 2004 (6 U.S.C. 485).
    (5) Federal departments or agencies authorized to make
    original classification decisions or that perform derivative
    classification of information are responsible for developing,
    implementing, and administering policies, procedures, and
    programs that promote compliance with applicable laws, executive
    orders, and other authorities pertaining to the proper use of
    classification markings and the policies of the National
    Archives and Records Administration.
    SEC. 3. <> DEFINITIONS.

    In this Act:

    [[Page 2649]]

    (1) Derivative classification and original classification.--
    The terms ``derivative classification'' and ``original
    classification'' have the meanings given those terms in
    Executive Order No. 13526.
    (2) Executive agency.--The term ``Executive agency'' has the
    meaning given that term in section 105 of title 5, United States
    Code.
    (3) Executive order no. 13526.--The term ``Executive Order
    No. 13526'' means Executive Order No. 13526 (75 Fed. Reg. 707;
    relating to classified national security information) or any
    subsequent corresponding executive order.
    SEC. 4. CLASSIFIED INFORMATION ADVISORY OFFICER.

    (a) In General.--Subtitle A of title II of the Homeland Security Act
    of 2002 (6 U.S.C. 121 et seq.) is amended by adding at the end the
    following:
    ``SEC. 210F. CLASSIFIED <> INFORMATION ADVISORY
    OFFICER.

    ``(a) Requirement To Establish.--
    The <> Secretary shall identify and designate within
    the Department a Classified Information Advisory Officer, as described
    in this section.

    ``(b) Responsibilities.--The responsibilities of the Classified
    Information Advisory Officer shall be as follows:
    ``(1) To develop and disseminate educational materials and
    to develop and administer training programs to assist State,
    local, and tribal governments (including State, local, and
    tribal law enforcement agencies) and private sector entities--
    ``(A) in developing plans and policies to respond to
    requests related to classified information without
    communicating such information to individuals who lack
    appropriate security clearances;
    ``(B) regarding the appropriate procedures for
    challenging classification designations of information
    received by personnel of such entities; and
    ``(C) on the means by which such personnel may apply
    for security clearances.
    ``(2) To inform the Under Secretary for Intelligence and
    Analysis on policies and procedures that could facilitate the
    sharing of classified information with such personnel, as
    appropriate.

    ``(c) Initial <> Designation.--Not later than 90
    days after the date of the enactment of the Reducing Over-Classification
    Act, the Secretary shall--
    ``(1) designate the initial Classified Information Advisory
    Officer; and
    ``(2) submit <> to the Committee on
    Homeland Security and Governmental Affairs of the Senate and the
    Committee on Homeland Security of the House of Representatives a
    written notification of the designation.''.

    (b) Clerical Amendment.--The table of contents in section 1(b) of
    the Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) is amended by
    inserting after the item relating to section 210E the following:

    ``Sec. 210F. Classified Information Advisory Officer.''.

    [[Page 2650]]

    SEC. 5. INTELLIGENCE INFORMATION SHARING.

    (a) Development of Guidance for Intelligence Products.--Paragraph
    (1) of section 102A(g) of the National Security Act of 1947 (50 U.S.C.
    403-1(g)) is amended--
    (1) in subparagraph (E), by striking ``and'' at the end;
    (2) in subparagraph (F), by striking the period at the end
    and inserting a semicolon and ``and''; and
    (3) by adding at the end the following:
    ``(G) in accordance with Executive Order No. 13526
    (75 Fed. Reg. 707; relating to classified national
    security information) (or any subsequent corresponding
    executive order), and part 2001 of title 32, Code of
    Federal Regulations (or any subsequent corresponding
    regulation), establish--
    ``(i) guidance to standardize, in appropriate
    cases, the formats for classified and unclassified
    intelligence products created by elements of the
    intelligence community for purposes of promoting
    the sharing of intelligence products; and
    ``(ii) policies and procedures requiring the
    increased use, in appropriate cases, and including
    portion markings, of the classification of
    portions of information within one intelligence
    product.''.

    (b) Creation of Unclassified Intelligence Products as Appropriate
    for State, Local, Tribal, and Private Sector Stakeholders.--
    (1) Responsibilities of secretary relating to intelligence
    and analysis and infrastructure protection.--Paragraph (3) of
    section 201(d) of the Homeland Security Act of 2002 (6 U.S.C.
    121(d)) is amended to read as follows:
    ``(3) To integrate relevant information, analysis, and
    vulnerability assessments (regardless of whether such
    information, analysis or assessments are provided by or produced
    by the Department) in order to--
    ``(A) identify priorities for protective and support
    measures regarding terrorist and other threats to
    homeland security by the Department, other agencies of
    the Federal Government, State, and local government
    agencies and authorities, the private sector, and other
    entities; and
    ``(B) prepare finished intelligence and information
    products in both classified and unclassified formats, as
    appropriate, whenever reasonably expected to be of
    benefit to a State, local, or tribal government
    (including a State, local, or tribal law enforcement
    agency) or a private sector entity.''.
    (2) ITACG detail.--Section 210D(d) of the Homeland Security
    Act of 2002 (6 U.S.C. 124k(d)) is amended--
    (A) in paragraph (5)--
    (i) in subparagraph (D), by striking ``and''
    at the end;
    (ii) by redesignating subparagraph (E) as
    subparagraph (F); and
    (iii) by inserting after subparagraph (D) the
    following:
    ``(E) make recommendations, as appropriate, to the
    Secretary or the Secretary's designee, for the further
    dissemination of intelligence products that could likely

    [[Page 2651]]

    inform or improve the security of a State, local, or
    tribal government, (including a State, local, or tribal
    law enforcement agency) or a private sector entity;
    and'';
    (B) in paragraph (6)(C), by striking ``and'' at the
    end;
    (C) in paragraph (7), by striking the period at the
    end and inserting a semicolon and ``and''; and
    (D) by adding at the end the following:
    ``(8) compile <> an annual assessment of
    the ITACG Detail's performance, including summaries of customer
    feedback, in preparing, disseminating, and requesting the
    dissemination of intelligence products intended for State, local
    and tribal government (including State, local, and tribal law
    enforcement agencies) and private sector entities; and
    ``(9) provide the assessment developed pursuant to paragraph
    (8) to the program manager for use in the annual reports
    required by subsection (c)(2).''.

    (c) Interagency Threat Assessment and Coordination Group Annual
    Report Modification.--Subsection (c) of section 210D of the Homeland
    Security Act of 2002 (6 U.S.C. 124k) is amended--
    (1) in the matter preceding paragraph (1), by striking ``,
    in consultation with the Information Sharing Council,'';
    (2) in paragraph (1), by striking ``and'' at the end;
    (3) in paragraph (2), by striking the period at the end and
    inserting a semicolon and ``and''; and
    (4) by adding at the end the following:
    ``(3) in each <> report required by
    paragraph (2) submitted after the date of the enactment of the
    Reducing Over-Classification Act, include an assessment of
    whether the detailees under subsection (d)(5) have appropriate
    access to all relevant information, as required by subsection
    (g)(2)(C).''.
    SEC. 6. PROMOTION <> OF ACCURATE
    CLASSIFICATION OF INFORMATION.

    (a) Incentives for Accurate Classifications.--In making cash awards
    under chapter 45 of title 5, United States Code, the President or the
    head of an Executive agency with an officer or employee who is
    authorized to make original classification decisions or derivative
    classification decisions may consider such officer's or employee's
    consistent and proper classification of information.
    (b) Inspector General Evaluations.--
    (1) Requirement <> for evaluations.--Not
    later than September 30, 2016, the inspector general of each
    department or agency of the United States with an officer or
    employee who is authorized to make original classifications, in
    consultation with the Information Security Oversight Office,
    shall carry out no less than two evaluations of that department
    or agency or a component of the department or agency--
    (A) to assess whether applicable classification
    policies, procedures, rules, and regulations have been
    adopted, followed, and effectively administered within
    such department, agency, or component; and
    (B) to identify policies, procedures, rules,
    regulations, or management practices that may be
    contributing to persistent misclassification of material
    within such department, agency or component.
    (2) Deadlines for evaluations.--

    [[Page 2652]]

    (A) Initial evaluations.--Each first evaluation
    required by paragraph (1) shall be completed no later
    than September 30, 2013.
    (B) Second evaluations.--Each second evaluation
    required by paragraph (1) shall review progress made
    pursuant to the results of the first evaluation and
    shall be completed no later than September 30, 2016.
    (3) Reports.--
    (A) Requirement.--Each inspector general who is
    required to carry out an evaluation under paragraph (1)
    shall submit to the appropriate entities a report on
    each such evaluation.
    (B) Content.--Each report submitted under
    subparagraph (A) shall include a description of--
    (i) the policies, procedures, rules,
    regulations, or management practices, if any,
    identified by the inspector general under
    paragraph (1)(B); and
    (ii) the recommendations, if any, of the
    inspector general to address any such identified
    policies, procedures, rules, regulations, or
    management practices.
    (C) Coordination.--The inspectors general who are
    required to carry out evaluations under paragraph (1)
    shall coordinate with each other and with the
    Information Security Oversight Office to ensure that
    evaluations follow a consistent methodology, as
    appropriate, that allows for cross-agency comparisons.
    (4) Appropriate entities defined.--In this subsection, the
    term ``appropriate entities'' means--
    (A) the Committee on Homeland Security and
    Governmental Affairs and the Select Committee on
    Intelligence of the Senate;
    (B) the Committee on Homeland Security, the
    Committee on Oversight and Government Reform, and the
    Permanent Select Committee on Intelligence of the House
    of Representatives;
    (C) any other committee of Congress with
    jurisdiction over a department or agency referred to in
    paragraph (1);
    (D) the head of a department or agency referred to
    in paragraph (1); and
    (E) the Director of the Information Security
    Oversight Office.
    SEC. 7. <> CLASSIFICATION TRAINING PROGRAM.

    (a) In General.--The <> head of each
    Executive agency, in accordance with Executive Order 13526, shall
    require annual training for each employee who has original
    classification authority. For employees who perform derivative
    classification, or are responsible for analysis, dissemination,
    preparation, production, receipt, publication, or otherwise
    communication of classified information, training shall be provided at
    least every two years. Such training shall--
    (1) educate the employee, as appropriate, regarding--
    (A) the guidance established under subparagraph (G)
    of section 102A(g)(1) of the National Security Act of
    1947 (50 U.S.C. 403-1(g)(1)), as added by section
    5(a)(3), regarding the formatting of finished
    intelligence products;

    [[Page 2653]]

    (B) the proper use of classification markings,
    including portion markings that indicate the
    classification of portions of information; and
    (C) any incentives and penalties related to the
    proper classification of intelligence information; and
    (2) ensure such training is a prerequisite, once completed
    successfully, as evidenced by an appropriate certificate or
    other record, for--
    (A) obtaining original classification authority or
    derivatively classifying information; and
    (B) maintaining such authority.

    (b) Relationship to Other Programs.--The head of each Executive
    agency shall ensure that the training required by subsection (a) is
    conducted efficiently and in conjunction with any other required
    security, intelligence, or other training programs to reduce the costs
    and administrative burdens associated with carrying out the training
    required by subsection (a).

    Approved October 7, 2010.

    LEGISLATIVE HISTORY--H.R. 553:
    ---------------------------------------------------------------------------

    SENATE REPORTS: No. 111-200 (Comm. on Homeland Security and Governmental
    Affairs).
    CONGRESSIONAL RECORD:
    Vol. 155 (2009):
    Feb. 3, considered and passed House.
    Vol. 156 (2010):
    Sept. 27, considered and passed
    Senate, amended.
    Sept. 28, House concurred in Senate
    amendment.