Classified Information; Revision

DEPARTMENT OF TRANSPORTATION

Office of the Secretary

49 CFR Parts 1 and 8

[Docket No. OST-96-1427; Notice 96-16]

RIN: 2105-AC51

Classified Information; Revision

AGENCY: Department of Transportation (DOT), Office of the Secretary.

ACTION: Notice of proposed rulemaking.

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SUMMARY: DOT proposes to revise its regulations regarding

classification and declassification of, and access to, classified

information, and to delegate to the Assistant Secretary for

Administration authority to ensure compliance within DOT with the

regulations and the underlying Executive Orders. This action is taken

in response to the President's Regulatory Reinvention Initiative and in

order to implement recent Executive Orders.

DATES: Comments are due August 30, 1996.

ADDRESSES: Comments should be addressed to Documentary Services

Division, Attention: Docket Section, Room PL401, Docket No. OST-96-

1427, Department of Transportation, C-55, Washington, DC 20590. Any

person wishing acknowledgment that his/her comments have been received

should include a self-addressed stamped postcard. Comments received

will be available for public inspection and copying in the Documentary

Services Division, Room PL401, Department of Transportation Building,

400 Seventh Street, SW, Washington, DC, from 10:00 a.m. to 5:00 p.m. ET

Monday through Friday except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Robert I. Ross, Office of the General

Counsel, C-10, Department of Transportation, Washington, DC 20590,

telephone (202) 366-9156, FAX (202) 366-9170.

SUPPLEMENTARY INFORMATION: In 1995, the President of the United States

issued two Executive Orders making substantial revisions to the rules

under which agencies of the Executive Branch, such as DOT, manage

information that requires special treatment in the interest of national

security. Briefly stated, Executive Order 12958 of April 17, 1995,

Classified National Security Information, requires that less

information be classified; and Executive Order 12968 of August 2, 1995,

Access to Classified Information, requires agencies to provide

administrative review of decisions to deny access to classified

information. This proposal seeks to implement both Orders. To

[[Page 33887]]

foster uniform administration within DOT, authority to ensure

compliance is being delegated to the Assistant Secretary for

Administration.

Analysis of Regulatory Impacts

This amendment is not a ``significant regulatory action'' within

the meaning of Executive Order 12866. It is also not significant within

the definition in DOT's Regulatory Policies and Procedures, 49 FR 11034

(1979), in part because it does not involve any change in important

Departmental policies. Because the economic impact should be minimal,

further regulatory evaluation is not necessary. Moreover, I certify

that this proposal will not have a significant economic impact on a

substantial number of small entities.

This proposal does not significantly affect the environment, and

therefore an environmental impact statement is not required under the

National Environmental Policy Act of 1969. It has also been reviewed

under Executive Order 12612, Federalism, and it has been determined

that it does not have sufficient implications for federalism to warrant

preparation of a Federalism Assessment.

Finally, the proposal does not contain any collection of

information requirements, requiring review under the Paperwork

Reduction Act of 1980.

List of Subjects

49 CFR Part 1

Authority delegations (government agencies), Organization and

functions (government agencies), Transportation Department.

49 CFR Part 8

Classified information.

In accordance with the above, DOT proposes to amend 49 CFR, as

follows:

PART 1--[AMENDED]

1. The authority citation for part 1 would continue to read as

follows:

Authority: 49 USC 322.

2. In Sec. 1.59, a new paragraph (e)(9) would be added to read as

follows:

Sec. 1.59 Delegations to the Assistant Secretary for Administration.

(e) * * *.

(9) Ensure Department-wide compliance with Executive Orders 10450,

12829, 12958, 12968, and related regulations and issuances.

* * * * *

3. Part 8 would be revised to read as follows:

PART 8--CLASSIFIED INFORMATION: CLASSIFICATION/DECLASSIFICATION/

ACCESS

Subpart A--General

Sec.

8.1 Scope.

8.3 Applicability.

8.5 Definitions.

8.7 Spheres of responsibility.

Subpart B--Classification/Declassification of Information

8.9 Information Security Review Committee.

8.11 Authority to classify information.

8.13 Authority to downgrade or declassify.

8.15 Mandatory review for classification.

8.17 Classification challenges.

8.19 Procedures for submitting and processing requests for

classification reviews.

8.21 Burden of proof.

8.23 Classified information transferred to the Department of

Transportation.

Subpart C--Access to Information

8.25 Personnel Security Review Board.

8.27 Public availability of declassified information.

8.29 Access by historical researchers and former Presidential

appointees.

8.31 Industrial security.

Authority: EO 10450, 18 FR 2489, 3 CFR 1949-1953, Com., p. 936;

EO 12829, 58 FR 3479; EO 12458, 60 FR 19825; EO 12968, 60 FR 40245.

Subpart A--General

Sec. 8.1 Scope.

This part sets forth procedures for the classification,

declassification, and availability of information that must be

protected in the interest of national security, in implementation of

Executive Order 12958 of April 17, 1995, ``Classified National Security

Information;'' and for the review of decisions to revoke, or not to

issue, national security information clearances, or to deny access to

classified information, under Executive Order 12968 of August 2, 1995,

``Access to National Security Information''.

Sec. 8.3 Applicability.

This part applies to all elements of the Department of

Transportation.

Sec. 8.5 Definitions.

As used in this part:

Classification means the act or process by which information is

determined to be classified information.

Classification levels means the following three levels at which

information may be classified:

(a) Top Secret. Information that requires the highest degree of

protection, and the unauthorized disclosure of which could reasonably

be expected to cause exceptionally grave damage to the national

security that the original classification authority is able to identify

or describe.

(b) Secret. Information that requires a substantial degree of

protection, and the unauthorized disclosure of which could reasonably

be expected to cause serious damage to the national security that the

original classification authority is able to identify or describe.

(c) Confidential. Information that requires protection and the

unauthorized disclosure of which could reasonably be expected to cause

damage to the national security that the original classification

authority is able to identify or describe.

Classified information or classified national security information

means information that has been determined under Executive Order 12958,

or any predecessor or successor order, to require protection against

unauthorized disclosure, and is marked to indicate its classified

status when in documentary form.

Clearance means that an individual is eligible, under the standards

of Executive Orders 10450 and 12968 and appropriate DOT regulations,

for access to classified information.

Damage to the national security means harm to the national defense

or foreign relations of the United States from the unauthorized

disclosure of information, to include the sensitivity, value, and

utility of that information.

Declassification means the authorized change in the status of

information from classified information to unclassified information.

Downgrading means a determination by a declassification authority

that information classified and safeguarded at a specific level shall

be classified and safeguarded at a lower level.

Information means any knowledge that can be communicated, or

documentary material, regardless of its physical form or

characteristics, that is owned by, produced by or for, or is under the

control of the United States Government. Control means the authority of

the agency that originates information, or its successor in function,

to regulate access to the information.

Mandatory declassification review means the review for

declassification of classified information in response to a request for

declassification that qualifies under Section 3.6 of Executive Order

12958.

Original classification means an initial determination that

information requires, in the interest of national security, protection

against unauthorized disclosure.

Original classification authority means an individual authorized in

[[Page 33888]]

writing, either by the President or by agency heads or other officials

designated by the President, to classify information in the first

instance.

Sec. 8.7 Spheres of responsibility.

(a) Pursuant to Section 5.6(c) of Executive Order 12958, and to

Section 6.1 of Executive Order 12968, the Assistant Secretary for

Administration is hereby designated as the senior agency official of

the Department of Transportation with assigned responsibilities to

assure effective compliance with and implementation of Executive Order

12958, Executive Order 12968, Office of Management and Budget

Directives, these regulations, and related issuances.

(b) In the discharge of these responsibilities, the Assistant

Secretary for Administration will be assisted by the Director of

Security, who, in addition to other actions directed by this part, will

evaluate the overall application of and adherence to the security

policies and requirements prescribed herein and who will report his/her

findings and recommendations to the Assistant Secretary for

Administration, heads of Departmental elements, and, as appropriate, to

the Secretary.

(c) Secretarial Officers and heads of Departmental elements will

assure that the provisions herein are effectively administered, that

adequate personnel and funding are provided for this purpose, and that

corrective actions that may be warranted are taken promptly.

Subpart B--Classification/Declassification of Information

Sec. 8.9 Information Security Review Committee.

(a) There is hereby established a Department of Transportation

Information Security Review Committee, which will have authority to:

(1) Act on all suggestions and complaints not otherwise resolved

with respect to the Department's administration of Executive Order

12958 and implementing directives, including those regarding

overclassification, failure to declassify, or delay in declassifying;

(2) Act on appeals of requests for classification reviews, and

appeals of requests for records under 5 U.S.C. 552 (Freedom of

Information Act) when the initial, and proposed final, denials are

based on continued classification of the record; and

(3) Recommend to the Secretary, when necessary, appropriate

administrative action to correct abuse or violation of any provision of

Executive Order 12598 and implementing directives.

(b) The Information Security Review Committee will be composed of

the Assistant Secretary for Administration, who will serve as Chair;

the General Counsel; and the Director of Security. When matters

affecting a particular Departmental agency are at issue, the Associate

Administrator for Administration for that agency, or the Chief of Staff

for the U.S. Coast Guard, as the case may be, will participate as an ad

hoc member, together with the Chief Counsel of that agency. Any regular

member may designate a representative with full power to serve in his/

her place.

(c) In carrying out its responsibilities to review decisions to

revoke or not to issue clearances, or to deny access to classified

information, the Committee will establish whatever procedures it deems

fit.

Sec. 8.11 Authority to classify information.

(a) Executive Order 12958 confers upon the Secretary of

Transportation the authority to originally classify information as

SECRET with further authorization to delegate this authority.

(b) The following delegations of authority to originally classify

information as ``SECRET'', which may not be redelegated, are hereby

made:

(1) Office of the Secretary of Transportation. The Deputy

Secretary; Assistant Secretary for Administration; Director of

Intelligence and Security; Director of Security.

(2) United States Coast Guard. Commandant; Chief, Office of Law

Enforcement and Defense Operations.

(3) Federal Aviation Administration. Administrator; Assistant

Administrator for Civil Aviation Security.

(4) Maritime Administration. Administrator.

(c) Although the delegations of authority set out in paragraph (b)

of this section are expressed in terms of positions, the authority is

personal and is invested only in the individual occupying the position.

The authority may not be exercised ``by direction of'' a designated

official. The formal appointment or assignment of an individual to one

of the identified positions or a designation in writing to act in the

absence of one of these officials, however, conveys the authority to

originally classify information as ``SECRET''.

(d) Previous delegations and redelegations of authority within the

Department of Transportation to originally classify information are

hereby rescinded.

Sec. 8.13 Authority to downgrade or declassify.

Information originally classified by the Department may be

specifically downgraded or declassified by either the official

authorizing the original classification, if that official is still

serving in the same position, the originator's current successor in

function, a supervisory official of either, officials delegated

declassification authority in writing by the Secretary, or by the

Departmental Information Security Review Committee.

Sec. 8.15 Mandatory review for classification.

(a) All information classified by the Department of Transportation

under Executive Order 12958 or predecessor orders shall be subject to a

review for declassification if:

(1) the request for review describes the information with

sufficient specificity to enable its location with a reasonable amount

of effort; and

(2) the information has not been reviewed for declassification

within the prior two years. If the information has been reviewed within

the prior two years, or the information is the subject of pending

litigation, the requestor will be informed of this fact, and of the

Department's decision not to declassify the information and of his/her

right to appeal the Department's decision not to declassify the

information to the Interagency Security Classification Appeals Panel.

(b) All information reviewed for declassification because of a

mandatory review will be declassified if it does not meet the standards

for classification in Executive Order 12958. The information will then

be released unless withholding is otherwise authorized and warranted

under applicable law.

Sec. 8.17 Classification challenges.

(a) Authorized holders of information classified by the Department

of Transportation who, in good faith, believe that its classification

status is improper are encouraged and expected to challenge the

classification status of the information before the Departmental

Information Security Review Committee.

(1) No individual will be subject to retribution for bringing such

a challenge; and

(2) Each individual whose challenge is denied will be advised that

he/she may appeal to the Interagency Security Classification Appeals

Panel established by Sec. 5.4 of Executive Order 12958.

(b) This classification challenge provision is not intended to

prevent an authorized holder of information classified by the

Department of

[[Page 33889]]

Transportation from informally questioning the classification status of

particular information. Such information inquiries should be encouraged

as means to resolve classification concerns and reduce the

administrative burden of formal challenges.

Sec. 8.19 Procedures for submitting and processing requests for

classification reviews.

(a) The Director of Security is hereby designated as the official

to whom a member of the public or another department or agency should

submit a request for a classification review of classified information

produced by or under the primary cognizance of the Department. Elements

of the Department that receive a request directly will immediately

notify the Director.

(b) If the request for classification review involves material

produced by or under the cognizance of the U.S. Coast Guard or the

Federal Aviation Administration, the Director will forward the request

to the headquarters security staff of the element concerned for action.

If the request involves material produced by other Departmental

elements, the Director will serve as the office acting on the request.

(c) The office acting on the request will:

(1) Immediately acknowledge receipt of the request and provide a

copy of the correspondence to the Director. If a fee for search of

records is involved pursuant to 49 CFR part 7, the requester will be so

notified;

(2) Conduct a security review, which will include consultation with

the office that produced the material and with source authorities when

the classification, or exemption of material from automatic

declassification, was based upon determinations by an original

classifying authority; and

(3) Assure that the requester is notified of the determination

within 30 calendar days or given an explanation as to why further time

is necessary, and provide a copy of the notification to the Director.

(d) If the determination reached is that continued classification

is required, the notification to the requester will include, whenever

possible, a brief statement as to why the requested material cannot be

declassified. The notification will also advise the requester of the

right to appeal the determination to the Departmental Information

Security Review Committee. A requester who wishes to appeal a

classification review decision, or who has not been notified of a

decision after 60 calendar days, may submit an appeal to the

Departmental Information Security Review Committee.

(e) If the determination reached is that continued classification

is not required, the information will be declassified and the material

remarked accordingly. The office acting on the request will then refer

the request to the office originating the material or higher authority

to determine if it is otherwise withholdable from public release under

the Freedom of Information Act (5 U.S.C. 552) and the Department's

implementing regulations (49 CFR part 7).

(1) If the material is available under the Freedom of Information

Act, the requester will be advised that the material has been

declassified and is available. If the request involves the furnishing

of copies and a fee is to be collected, the requester will be so

advised pursuant to 49 CFR part 7, Departmental regulations

implementing the Freedom of Information Act.

(2) If the material is not available under the Freedom of

Information Act, the requester will be advised that the material has

been declassified but that the record is unavailable pursuant to the

Freedom of Information Act, and that the provisions concerning

procedures for reconsidering decisions not to disclose records,

contained in 49 CFR part 7, apply.

(f) Upon receipt of an appeal from a classification review

determination based upon continued classification, the Departmental

Information Security Review Committee will acknowledge receipt

immediately and act on the matter within 30 calendar days. With respect

to information originally classified by or under the primary cognizance

of the Department, the Committee, acting for the Secretary, has

authority to overrule previous determinations in whole or in part when,

in its judgment, continued protection in the interest of national

security is no longer required. When the classification of the material

produced in the Department is based upon a classification determination

made by another department or agency, the Committee will immediately

consult with its counterpart committee for that department or agency.

(1) If it is determined that the material produced in the

Department requires continued classification, the requester will be so

notified and advised of the right to appeal the decision to the

Interagency Classification Review Committee.

(2) If it is determined that the material no longer requires

classification, it will be declassified and remarked. The Committee

will refer the request to the General Counsel, or to the head of the

Departmental agency concerned, as the case may be, to determine if the

material is otherwise withholdable from the public under the Freedom of

Information Act (5 U.S.C. 552) and Departmental regulations, (49 CFR

Part 7), and paragraphs (f)(1) and (2) of this section will be

followed. A copy of the response to the requester will be provided to

the Committee.

(g) Requests for a classification review of material more than 25

years old will be referred directly to the Archivist of the United

States and the requester will be notified of the referral. In this

event, the provisions of Sec. 8.19 apply.

(h) Whenever a request is insufficient in the description of the

record sought, the requester will be asked to limit his request to

records that are reasonably obtainable. If, in spite of these steps,

the requester does not describe the records with sufficient

particularity, or the record requested cannot be obtained with a

reasonable amount of effort, the requester will be notified of the

reasons why the request is denied and of his/her right to appeal the

determination to the Departmental Information Security Review

Committee.

Sec. 8.21 Burden of proof.

For the purpose of determinations to be made under Secs. 8.13,

8.15, and 8.17, the burden of proof is on the originating Departmental

agency to show that continued classification is warranted.

Sec. 8.23 Classified information transferred to the Department of

Transportation.

(a) Classified information officially transferred to the Department

in conjunction with a transfer of function, and not merely for storage

purposes, will be considered to have been originated by the Department.

(b) Classified information in the custody of the Department

originated by a department or agency that has ceased to exist and for

whom there is no successor agency will be deemed to have been

originated by the Department. This information may be declassified or

downgraded by the Department after consultation with any other agency

that has an interest in the subject matter of the information. Such

agency will be allowed 30 calendar days in which to express an

objection, if it so desires, before action is taken. A difference of

opinion that cannot be resolved will be referred to the Departmental

Information Security Review Committee, which will consult with its

[[Page 33890]]

counterpart committee for the other agency.

(c) Classified information transferred to the National Archives and

Records Administration will be declassified or downgraded by the

Archivist in accordance with Executive Order 12958, Departmental

classification guides, and any existing procedural agreement between

the Archivist and the Department. The Department will take all

reasonable steps to declassify information contained in records

determined to have permanent historical value before they are

accessioned in the National Archives.

(d) To the extent practicable, the Department will adopt a system

of records management that will facilitate the public release of

documents at the time such documents are declassified under the

provisions of this part for automatic declassification. To the maximum

extent possible without destroying the integrity of the Department's

files, all such material will be segregated or set aside for public

release upon request. The Department will cooperate with the Archivist

in efforts to establish a Government-wide database of information that

has been declassified.

Subpart C--Access to Information

Sec. 8.25 Personnel Security Review Board.

(a) There is hereby established a Department of Transportation

Personnel Security Review Board, which will, on behalf of the Secretary

of Transportation (except in any case in which the Secretary personally

makes the decision), make the administratively final decision on an

appeal arising in any part of the Department from:

(1) A decision not to grant access to classified information;

(2) A decision to revoke access to classified information; or

(3) A decision under Sec. 8.29 of this part to deny access to

classified information.

(b) The Personnel Security Review Board will be composed of:

(1) two persons appointed by the Assistant Secretary for

Administration: one from the Office of Personnel and Training, and one,

familiar with personnel security adjudication, from the Office of

Security, who will serve as Chair;

(2) one person appointed by the General Counsel, who, in addition

to serving as a member of the Board, will provide to the Board whatever

legal services it may require; and

(3) one person appointed by each of the Commandant of the Coast

Guard and the Federal Aviation Administrator.

(4) Any member may designate a representative, meeting the same

criteria as the member, with full power to serve in his/her place.

(c) In carrying out its responsibilities to review final decisions

to revoke or deny access to classified information, the Board will

establish whatever procedures it deems fit.

Sec. 8.27 Public availability of declassified information.

(a) It is a fundamental policy of the Department to make

information available to the public to the maximum extent permitted by

law. Information that is declassified for any reason loses its status

as material protected in the interest of national security.

Accordingly, declassified information will be handled in every respect

on the same basis as all other unclassified information. Declassified

information is subject to the Departmental public information policies

and procedures, with particular reference to the Freedom of Information

Act (5 U.S.C. 552) and implementing Departmental regulations (49 CFR

part 7).

(b) In furtherance of this policy, all classified material produced

after June 1, 1972 that is of sufficient historical or other value to

warrant preservation as permanent records in accordance with

appropriate records administrative standards, and that becomes

declassified, will be systematically reviewed prior to the end of each

calendar year for the purpose of making the material publicly

available. To the maximum extent possible without destroying the

integrity of the Department's files, all such material will be

segregated or set aside for public release upon request.

Sec. 8.29 Access by historical researchers and former Presidential

appointees.

(a) Historical researchers. (1) Persons outside the executive

branch who are engaged in historical research projects may have access

to classified information provided that:

(i) Access to the information is clearly consistent with the

interests of national security; and

(ii) The person to be granted access is trustworthy.

(2) The provisions of this paragraph apply only to persons who are

conducting historical research as private individuals or under private

sponsorship and do not apply to research conducted under Government

contract or sponsorship. The provisions are applicable only to

situations where the classified information concerned, or any part of

it, was originated by the Department or its contractors, or where the

information, if originated elsewhere, is in the sole custody of the

Department. Any person requesting access to material originated in

another agency or to information under the exclusive jurisdiction of

the National Archives and Records Administration will be referred to

the other agency or to the National Archives and Records

Administration, as appropriate.

(3) When a request for access to classified information for

historical research is received, it will be referred to the appropriate

local security office. That office will obtain from the applicant

completed Standard Form 86, Questionnaire for National Security

Positions, in triplicate, and Standard Form 87, Fingerprint Chart; a

statement in detail to justify access, including identification of the

kind of information desired and the organization or organizations, if

any, sponsoring the research; and a written statement (signed, dated,

and witnessed) with respect to the following:

(i) That the applicant will abide by regulations of the Department:

(A) To safeguard classified information; and

(B) To protect information that has been determined to be

proprietary or privileged and is therefore not eligible for public

dissemination.

(ii) That the applicant understands that any classified information

that the applicant receives affects the security of the United States.

(iii) That the applicant acknowledges an obligation to safeguard

classified information or privileged information of which the applicant

gains possession or knowledge as a result of the applicant's access to

files of the Department.

(iv) That the applicant agrees not to reveal to any person or

agency any classified information or privileged information obtained as

a result of the applicant's access except as specifically authorized in

writing by the Department, and further agrees that the applicant shall

not use the information for purposes other than those set forth in the

applicant's application.

(v) That the applicant agrees to authorize a review of the

applicant's notes and manuscript for the sole purpose of determining

that no classified information or material is contained therein.

(vi) That the applicant understands that failure to abide by

conditions of this statement will constitute sufficient cause for

canceling the applicant's access to classified information and for

denying the applicant any future access, and may subject the applicant

to criminal provisions of Federal law as referred to in this statement.

(vii) That the applicant is aware and fully understands that title

18, United

[[Page 33891]]

States Code, Crimes and Criminal Procedures, and the Internal Security

Act of 1950, as amended, title 50, United States Code, prescribe, under

certain circumstances, criminal penalties for the unauthorized

disclosure of information respecting the national security, and for

loss, destruction, or compromise of such information.

(viii) That this statement is made to the U.S. Government to enable

it to exercise its responsibilities for the protection of information

affecting the national security.

(ix) That the applicant understands that any material false

statement that the applicant makes knowingly and willfully will subject

the applicant to the penalties of 18 U.S.C. 1001.

(4) The security office will process the forms in the same manner

as specified for a preappointment national agency check for a critical-

sensitive position. Upon receipt of the completed national agency

check, the security office, if warranted, may determine that access by

the applicant to the information will be clearly consistent with the

interests of national security and the person to be granted access is

trustworthy. If deemed necessary, before making its determination, the

office may conduct or request further investigation. Before access is

denied in any case, the matter will be referred through channels to the

Director of Security for review and submission to the Personnel

Security Review Board for final review.

(5) If access to TOP SECRET or intelligence or communications

security information is involved a special background investigation is

required. However, this investigation will not be requested until the

matter has been referred through channels to the Director of Security

for determination as to adequacy of the justification and the consent

of other agencies as required.

(6) When it is indicated that an applicant's research may extend to

material originating in the records of another agency, approval must be

obtained from the other agency prior to the grant of access.

(7) Approvals for access will be valid for the duration of the

current research project but no longer than 2 years from the date of

issuance, unless renewed. If a subsequent request for similar access is

made by the individual within 1 year from the date of completion of the

current project, access may again be granted without obtaining a new

National Agency Check. If more than 1 year has elapsed, a new National

Agency Check must be obtained. The local security office will promptly

advise its headquarters security staff of all approvals of access

granted under these provisions.

(8) An applicant may be given access only to that classified

information that is directly pertinent to the applicant's approved

project. The applicant may review files or records containing

classified information only in offices under the control of the

Department. Procedures must be established to identify classified

material to which the applicant is given access. The applicant must be

briefed on local procedures established to prevent unauthorized access

to the classified material while in the applicant's custody, for the

return of the material for secure storage at the end of the daily

working period, and for the control of the applicant's notes until they

have been reviewed. In addition to the security review of the

applicant's manuscript, the manuscript must be reviewed by appropriate

offices to assure that it is technically accurate insofar as material

obtained from the Department is concerned, and is consistent with the

Department's public release policies.

(b) Former Presidential appointees. Persons who previously occupied

policymaking positions to which they were appointed by the President

may be granted access to classified information or material that they

originated, reviewed, signed, or received, while in public office,

provided that:

(1) It is determined that such access is clearly consistent with

the interests of national security; and

(2) The person agrees to safeguard the information, to authorize a

review of the person's notes to assure that classified information is

not contained therein, and that the classified information will not be

further disseminated or published.

Sec. 8.31 Industrial security.

(a) Background. The National Industrial Security Program was

established by Executive Order 12829 of January 6, 1993 for the

protection of information classified pursuant to Executive Order 12356

of April 2, 1982, National Security Information, or its predecessor or

successor orders, and the Atomic Energy Act of 1954, as amended. The

Secretary of Defense serves as the Executive Agent for inspecting and

monitoring contractors, licensees, grantees, and certificate holders

that require or will require access to, or that store or will store,

classified information, and for determining the eligibility for access

to classified information of contractors, licensees, certificate

holders, and grantees, and their respective employees.

(b) Implementing regulations. The Secretary of Transportation has

entered into agreement for the Secretary of Defense to render

industrial security services for the Department of Transportation.

Regulations prescribed by the Secretary of Defense to fulfill the

provisions of Executive Order 12829 have been extended to protect

release of classified information for which the Secretary of

Transportation is responsible. Specifically, this regulation is DOD

5220.22-M, National Industrial Security Program Operating Manual. This

regulation is effective within the Department of Transportation, which

functions as a User Agency as prescribed in the regulation. Appropriate

security staffs, project personnel, and contracting officers assure

that actions required by the regulation are taken.

Issued in Washington, DC, on May 31, 1996.

Federico Pena,

Secretary of Transportation.

[FR Doc. 96-16524 Filed 6-28-96; 8:45 am]

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