SEC. 2. DEPARTMENT OF HOMELAND SECURITY STRATEGY 
ON OVER-CLASSIFICATION. 
(a) IN GENERAL.—Subtitle A of title II of the Home-
land Security Act of 2002 (6 U.S.C. 121 et seq.) is amend-
ed by adding at the end the following new section: 
‘‘SEC. 210F. DEPARTMENT OF HOMELAND SECURITY STRAT-
EGY ON OVER-CLASSIFICATION. 
‘‘(a) IN GENERAL.—The Secretary of Homeland Se-
curity or the Secretary’s designee shall develop and imple-
ment a Department-wide strategy to prevent the over-clas-
sification of information within the scope of the informa-
tion sharing environment established under section 1016 
of the Intelligence Reform and Terrorism Prevention Act 
of 2004 (6 U.S.C. 485), including homeland security in-
formation, terrorism information, and weapons of mass 
destruction information, that includes a sensitive and 
shared information program for the creation and sharing 
of unclassified information of a sensitive nature. 
‘‘(b) STRATEGY.—The strategy developed under sub-
section (a) shall— 
‘‘(1) foster sharing of homeland security infor-
mation, terrorism information, and weapons of mass 
destruction information at the Department; 
‘‘(2) require that— 
‘‘(A) all intelligence documents and other 
information created by the Department be ini-
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tially prepared in unclassified form before any 
version of those documents is created that is in 
classified form; 
‘‘(B) if there is significant doubt about the 
need to classify information, the information 
not be classified; 
‘‘(C) if there is significant doubt about the 
appropriate level of classification of informa-
tion, the information be classified at the lower 
level; 
‘‘(D) documents only be classified for the 
limited purpose of protecting sensitive intel-
ligence sources or methods; and 
‘‘(E) classified intelligence documents and 
other information be declassified as soon as 
they no longer meet the criteria for classifica-
tion; 
‘‘(3) include a sensitive and shared information 
program that— 
‘‘(A) ensures that sensitive and unclassi-
fied information can be shared across the De-
partment and with State, local, and tribal gov-
ernments and the private sector as needed; 
‘‘(B) ensures that the Department can pro-
tect sensitive information and the information 
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privacy rights and other legal rights of United 
States persons; 
‘‘(C) ensures that there are a minimal 
number of categories and corresponding mark-
ings and that such markings are— 
‘‘(i) defined by the Secretary for use 
in all Department components; 
‘‘(ii) designed to allow wide informa-
tion sharing to appropriate audiences as 
defined by the Secretary; 
‘‘(iii) used only upon an affirmative 
showing, applying standards clearly defined 
and explained by the Secretary, that the 
security need for a marking outweighs the 
public interest in disclosure; and 
‘‘(iv) of limited duration not to exceed 
90 days unless an affirmative showing as 
described in subparagraph (iii) is made 
that an extension, of similar limited dura-
tion, is warranted; 
‘‘(D) includes processes by which— 
‘‘(i) Department personnel, personnel 
of other Departments and agencies of the 
Federal Government, or the public may 
challenge the appropriateness of a marking 
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on a document and seek the removal of the 
marking; and 
‘‘(ii) documents with expired markings 
that have not been extended are systemati-
cally generated in an unclassified format 
without the marking; and 
‘‘(E) supercedes any existing policies and 
procedures relating to the creation, control, and 
sharing of unclassified information of a sen-
sitive nature; 
‘‘(4) include a system of financial and other in-
centives and disincentives to encourage Department 
personnel to use classified and sensitive and shared 
information program markings properly, including 
incentives and disincentives that impact the career 
advancement potential and bonus eligibility of an 
employee; 
‘‘(5) include a training program for each De-
partment employee and contractor who analyzes, dis-
seminates, prepares, produces, receives, publishes, or 
otherwise communicates information within the 
scope of the information sharing environment that 
educates personnel about— 
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‘‘(A) the Department’s format for intel-
ligence and other information products, includ-
ing the requirements under paragraph (2); 
‘‘(B) the proper use of classification mark-
ings, including portion markings, and sensitive 
and shared information program markings; 
‘‘(C) the consequences of improperly using 
classification markings and of failing to use the 
Department’s format for intelligence and other 
information products, including the negative 
consequences for homeland security, informa-
tion sharing, and the overall success of the De-
partment’s missions; 
‘‘(D) the incentives and disincentives re-
ferred to in paragraph (4); and 
‘‘(E) procedures for making classification 
challenges and requests for declassification; 
‘‘(6) include policies and procedures designed to 
encourage Departments and agencies that provide 
intelligence and other information to the Depart-
ment to provide such intelligence or other informa-
tion— 
‘‘(A) in an unclassified form that meets 
the Department’s intelligence and information 
requirements while indicating the level of con-
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fidence that the Department or agency sharing 
the information has in the unclassified product; 
‘‘(B) if necessary, in a form with unclassi-
fied information contained at the beginning of 
the document and the classified portion of the 
document at the end of the document; and 
‘‘(C) if necessary, with a sensitive and 
shared information marking that complies with 
the program referred to in paragraph (3); 
‘‘(7) include an ongoing auditing mechanism 
administered by a designee of the Secretary or the 
Secretary’s designee referred to in subsection (a) 
that randomly selects classified and sensitive and 
shared information program materials from all rel-
evant components of the Department to— 
‘‘(A) assess whether applicable classifica-
tion and sensitive and shared information pro-
gram policies, procedures, rules, and regulations 
have been followed; 
‘‘(B) describe for managers and other su-
pervisory personnel any problem trends with 
over-classification and abuse of sensitive and 
shared information program markings and rec-
ommend improvements in awareness and train-
ing to address such trends; and 
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‘‘(C) identify individual employees who re-
quire re-training, notify such employees and the 
managers and other supervisors of such employ-
ees of the need for such re-training, and record 
subsequent re-training by such employees in the 
personnel file of such employees; 
‘‘(8) include the creation of an independent De-
partment classification review board to— 
‘‘(A) ensure that intelligence and other in-
formation is declassified as soon as it no longer 
meets classification criteria; 
‘‘(B) facilitate and review requests for de-
classification and classification challenges; 
‘‘(C) review Department policies, proce-
dures, and practices that foster the goals of the 
strategy; and 
‘‘(D) make recommendations for improve-
ments to such policies, procedures, and prac-
tices; 
‘‘(9) include an assessment of the technologies 
available or in use at the Department by which an 
electronic personal identification number or other 
electronic identifying marker can be assigned to each 
Department employee with classification authority or 
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authority to use sensitive and shared information 
program markings— 
‘‘(A) to track which, when, and how many 
documents have been classified or marked as 
sensitive and shared information by a particular 
employee; 
‘‘(B) to determine with whom and how 
often any such documents have been shared; 
‘‘(C) to address any over-classification 
problems or abuse of the sensitive and shared 
information program; 
‘‘(D) to assess the information sharing im-
pact of any such problems or abuse; and 
‘‘(E) including a cost estimate for imple-
menting any such technologies on a Depart-
ment-wide basis and an implementation plan for 
adopting such technologies; and 
‘‘(10) apply to all personnel and contractors of 
the Department. 
‘‘(c) INITIAL REPORT; IMPLEMENTATION.—Not later 
than 90 days after the date of the enactment of this sec-
tion, the Secretary shall— 
‘‘(1) submit to Congress a report that in-
cludes— 
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‘‘(A) the strategy developed under sub-
section (a); 
‘‘(B) an indication of which parts of the 
strategy can be accomplished without the enact-
ment of legislation and which cannot; and 
‘‘(C) recommendations for the enactment 
of legislation to accomplish the parts of the 
strategy that the Secretary indicates require the 
enactment of legislation; and 
‘‘(2) begin implementation of the parts of the 
strategy that the Secretary indicates in accordance 
with paragraph (1) can be accomplished without the 
enactment of legislation. 
‘‘(d) SUBSEQUENT REPORTS.—The Secretary shall 
annually submit to Congress an update on the implemen-
tation of the strategy developed under subsection (a) with 
the President’s budget submission for each fiscal year pur-
suant to section 1105 of title 31, United States Code. 
‘‘(e) ANNUAL AUDIT BY INSPECTOR GENERAL.— 
‘‘(1) IN GENERAL.—The Inspector General of 
the Department shall conduct an annual audit of the 
strategy developed and implemented under sub-
section (a) to— 
‘‘(A) determine whether policies, proce-
dures, rules, and regulations pertaining to clas-
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sified and sensitive and shared information have 
been followed; and 
‘‘(B) track the progress of the Department 
in implementing the strategy over time on a 
component by component basis. 
‘‘(2) REPORT.—Not later than 60 days after 
the completion of an audit under paragraph (1), the 
Inspector General of the Department shall submit to 
Congress a report on the audit and recommenda-
tions for improvement of the strategy and the imple-
mentation of the strategy. 
‘‘(f) DEFINITIONS.—In this section: 
‘‘(1) INFORMATION SHARING ENVIRONMENT.— 
The term ‘information sharing environment’ means 
the information sharing environment established 
pursuant to section 1016(b) of the Intelligence Re-
form and Terrorism Prevention Act of 2004 (6 
U.S.C. 485(b)). 
‘‘(2) SENSITIVE AND SHARED INFORMATION.— 
The term ‘sensitive and shared information’ means 
unclassified information that does not meet the 
standards for classification under Executive Order 
12958 (or any succeeding executive order) but is 
pertinent to the national interests of the United 
States or to the important interests of entities out-
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side the Federal Government and requires protection 
from unauthorized disclosure, special handling safe-
guards, or prescribed limits on exchange or dissemi-
nation.’’. 
(b) CONFORMING AMENDMENT.—The table of con-
tents in section 1(b) of such Act (6 U.S.C. 101(b)) is 
amended by inserting after the item relating to section 
210E the following new item: 
‘‘Sec. 210F. Department of Homeland Security strategy on over-classifica-
tion.’’. 
Æ 
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