H. R. 1735—281 
SEC. 1086. REFORM AND IMPROVEMENT OF PERSONNEL SECURITY, 
INSIDER THREAT DETECTION AND PREVENTION, AND 
PHYSICAL SECURITY. 
(a) PERSONNEL SECURITY AND INSIDER THREAT PROTECTION IN 
DEPARTMENT OF DEFENSE.— 
(1) PLANS AND SCHEDULES.—Consistent with the Memo-
randum of the Secretary of Defense dated March 18, 2014, 
regarding the recommendations of the reviews of the Wash-
ington Navy Yard shooting, the Secretary of Defense shall 
develop plans and schedules— 
(A) to implement a continuous evaluation capability 
for the national security population for which clearance 
adjudications are conducted by the Department of Defense 
Central Adjudication Facility, in coordination with the 
heads of other relevant agencies; 
(B) to produce a Department-wide insider threat 
strategy and implementation plan, which includes— 
(i) resourcing for the Defense Insider Threat 
Management and Analysis Center and component 
insider threat programs, and 
(ii) alignment of insider threat protection programs 
with continuous evaluation capabilities and processes 
for personnel security; 
(C) to centralize the authority, accountability, and pro-
grammatic integration responsibilities, including fiscal con-
trol, for personnel security and insider threat protection 
under the Under Secretary of Defense for Intelligence; 
(D) to develop a defense security enterprise reform 
investment strategy to ensure a consistent, long-term focus 
on funding to strengthen all of the Department’s security 
and insider threat programs, policies, functions, and 
information technology capabilities, including detecting 
threat behaviors conveyed in the cyber domain, in a manner 
that keeps pace with evolving threats and risks; 
(E) to resource and expedite deployment of the Identity 
Management Enterprise Services Architecture; and 
(F) to implement the recommendations contained in 
the study conducted by the Director of Cost Analysis and 
Program Evaluation required by section 907 of the National 
Defense Authorization Act for Fiscal Year 2014 (Public 
Law 113–66; 10 U.S.C. 1564 note), including, specifically, 
the recommendations to centrally manage and regulate 
Department of Defense requests for personnel security 
background investigations. 
(2) REPORTING
REQUIREMENT.—Not later than 180 days 
after the date of the enactment of this Act, the Secretary 
of Defense shall submit to the appropriate committees of Con-
gress a report describing the plans and schedules required 
under paragraph (1). 
(b) PHYSICAL AND LOGICAL ACCESS.—Not later than 270 days 
after the date of the enactment of this Act— 
(1) the Secretary of Defense shall define physical and logical 
access standards, capabilities, and processes applicable to all 
personnel with access to Department of Defense installations 
and information technology systems, including— 
(A) periodic or regularized background or records 
checks appropriate to the type of physical or logical access
H. R. 1735—282 
involved, the security level, the category of individuals 
authorized, and the level of access to be granted; 
(B) standards and methods for verifying the identity 
of individuals seeking access; and 
(C) electronic attribute-based access controls that are 
appropriate for the type of access and facility or information 
technology system involved; 
(2) the Director of the Office of Management and Budget 
and the Chair of the Performance Accountability Council, in 
coordination with the Secretary of Defense, the Administrator 
of General Services, and, when appropriate, the Director of 
National Intelligence, and in consultation with representatives 
from stakeholder organizations, shall design a capability to 
share and apply electronic identity information across the 
Government to enable real-time, risk-managed physical and 
logical access decisions; and 
(3) the Director of the Office of Management and Budget, 
in conjunction with the Director of the Office of Personnel 
Management and in consultation with representatives from 
stakeholder organizations, shall establish investigative and 
adjudicative standards for the periodic or regularized reevalua-
tion of the eligibility of an individual to retain credentials 
issued pursuant to Homeland Security Presidential Directive 
12 (dated August 27, 2004), as appropriate, but not less fre-
quently than the authorization period of the issued credentials. 
(c) SECURITY ENTERPRISE MANAGEMENT.—Not later than 180 
days after the date of enactment of this Act, the Director of the 
Office of Management and Budget shall— 
(1) formalize the Security, Suitability, and Credentialing 
Line of Business; and 
(2) submit to the appropriate congressional committee a 
report that describes plans— 
(A) for oversight by the Office of Management and 
Budget of activities of the executive branch of the Govern-
ment for personnel security, suitability, and credentialing; 
(B) to designate enterprise shared services to optimize 
investments; 
(C) to define and implement data standards to support 
common electronic access to critical Government records; 
and 
(D) to reduce the burden placed on Government data 
providers by centralizing requests for records access and 
ensuring proper sharing of the data with appropriate inves-
tigative and adjudicative elements. 
(d) RECIPROCITY MANAGEMENT.—Not later than two years after 
the date of the enactment of this Act, the Chair of the Performance 
Accountability Council shall ensure that— 
(1) a centralized system is available to serve as the reci-
procity management system for the Federal Government; and 
(2) the centralized system described in paragraph (1) is 
aligned with, and incorporates results from, continuous evalua-
tion and other enterprise reform initiatives. 
(e) REPORTING REQUIREMENTS IMPLEMENTATION.—Not later 
than 180 days after the date of enactment of this Act, the Chair 
of the Performance Accountability Council, in coordination with 
the Security Executive Agent, the Suitability Executive Agent, and 
the Secretary of Defense, shall jointly develop a plan to—
H. R. 1735—283 
(1) implement the Security Executive Agent Directive on 
common, standardized employee and contractor security 
reporting requirements; 
(2) establish and implement uniform reporting require-
ments for employees and Federal contractors, according to risk, 
relative to the safety of the workforce and protection of the 
most sensitive information of the Government; and 
(3) ensure that reported information is shared appro-
priately. 
(f) ACCESS TO CRIMINAL HISTORY RECORDS FOR NATIONAL SECU-
RITY AND OTHER PURPOSES.— 
(1) DEFINITION.—Section 9101(a) of title 5, United States 
Code, is amended by adding at the end the following: 
‘‘(7) The terms ‘Security Executive Agent’ and ‘Suitability 
Executive Agent’ mean the Security Executive Agent and the 
Suitability Executive Agent, respectively, established under 
Executive Order 13467 (73 Fed. Reg. 38103), or any successor 
thereto.’’. 
(2) COVERED
AGENCIES.—Section 9101(a)(6) of title 5, 
United States Code, is amended by adding at the end the 
following: 
‘‘(G) The Department of Homeland Security. 
‘‘(H) The Office of the Director of National Intelligence. 
‘‘(I) An Executive agency that— 
‘‘(i) is authorized to conduct background investiga-
tions under a Federal statute; or 
‘‘(ii) is delegated authority to conduct background 
investigations in accordance with procedures estab-
lished by the Security Executive Agent or the Suit-
ability Executive Agent under subsection (b) or (c)(iv) 
of section 2.3 of Executive Order 13467 (73 Fed. Reg. 
38103), or any successor thereto. 
‘‘(J) A contractor that conducts a background investiga-
tion on behalf of an agency described in subparagraphs 
(A) through (I).’’. 
(3) APPLICABLE
PURPOSES
OF
INVESTIGATIONS.—Section 
9101(b)(1) of title 5, United States Code, is amended— 
(A) by redesignating subparagraphs (A) through (D) 
as clauses (i) through (iv), respectively, and adjusting the 
margins accordingly; 
(B) in the matter preceding clause (i), as redesignated— 
(i) by striking ‘‘the head of’’; 
(ii) by inserting ‘‘all’’ before ‘‘criminal history record 
information’’; and 
(iii) by striking ‘‘for the purpose of determining 
eligibility for any of the following:’’ and inserting ‘‘, 
in accordance with Federal Investigative Standards 
jointly promulgated by the Suitability Executive Agent 
and Security Executive Agent, for the purpose of— 
‘‘(A) determining eligibility for—’’; 
(C) in clause (i), as redesignated— 
(i) by striking ‘‘Access’’ and inserting ‘‘access’’; and 
(ii) by striking the period and inserting a semi-
colon; 
(D) in clause (ii), as redesignated— 
(i) by striking ‘‘Assignment’’ and inserting ‘‘assign-
ment’’; and
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(ii) by striking the period and inserting ‘‘or posi-
tions;’’; 
(E) in clause (iii), as redesignated— 
(i) by striking ‘‘Acceptance’’ and inserting ‘‘accept-
ance’’; and 
(ii) by striking the period and inserting ‘‘; or’’; 
(F) in clause (iv), as redesignated— 
(i) by striking ‘‘Appointment’’ and inserting 
‘‘appointment’’; 
(ii) by striking ‘‘or a critical or sensitive position’’; 
and 
(iii) by striking the period and inserting ‘‘; or’’; 
and 
(G) by adding at the end the following: 
‘‘(B) conducting a basic suitability or fitness assessment 
for Federal or contractor employees, using Federal Investigative 
Standards jointly promulgated by the Security Executive Agent 
and the Suitability Executive Agent in accordance with— 
‘‘(i) Executive Order 13467 (73 Fed. Reg. 38103), or 
any successor thereto; and 
‘‘(ii) the Office of Management and Budget Memo-
randum ‘Assignment of Functions Relating to Coverage 
of Contractor Employee Fitness in the Federal Investigative 
Standards’, dated December 6, 2012; 
‘‘(C) credentialing under the Homeland Security Presi-
dential Directive 12 (dated August 27, 2004); and 
‘‘(D) Federal Aviation Administration checks required 
under— 
‘‘(i) the Federal Aviation Administration Drug Enforce-
ment Assistance Act of 1988 (subtitle E of title VII of 
Public Law 100–690; 102 Stat. 4424) and the amendments 
made by that Act; or 
‘‘(ii) section 44710 of title 49.’’. 
(4) 
BIOMETRIC
AND
BIOGRAPHIC
SEARCHES.—Section 
9101(b)(2) of title 5, United States Code, is amended to read 
as follows: 
‘‘(2)(A) A State central criminal history record depository shall 
allow a covered agency to conduct both biometric and biographic 
searches of criminal history record information. 
‘‘(B) Nothing in subparagraph (A) shall be construed to prohibit 
the Federal Bureau of Investigation from requiring a request for 
criminal history record information to be accompanied by the finger-
prints of the individual who is the subject of the request.’’. 
(5) USE OF MOST COST-EFFECTIVE SYSTEM.—Section 9101(e) 
of title 5, United States Code, is amended by adding at the 
end the following: 
‘‘(6) If a criminal justice agency is able to provide the same 
information through more than 1 system described in paragraph 
(1), a covered agency may request information under subsection 
(b) from the criminal justice agency, and require the criminal justice 
agency to provide the information, using the system that is most 
cost-effective for the Federal Government.’’. 
(6) SEALED OR EXPUNGED RECORDS; JUVENILE RECORDS.— 
(A) IN GENERAL.—Section 9101(a)(2) of title 5, United 
States Code, is amended by striking the third sentence 
and inserting the following: ‘‘The term includes those 
records of a State or locality sealed pursuant to law if