Amending the Civil Service Rules, Executive Order 13488, and Executive Order 13467 To Modernize the Executive Branch-Wide Governance Structure and Processes for Security Clearances, Suitability and Fitness for Employment, and Credentialing, and Related Matters

[Federal Register Volume 82, Number 13 (Monday, January 23, 2017)]

[Presidential Documents]

[Pages 8115-8129]

From the Federal Register Online via the Government Publishing Office [www.gpo.gov]

[FR Doc No: 2017-01623]

[[Page 8113]]

Vol. 82

Monday,

No. 13

January 23, 2017

Part VII

The President

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Executive Order 13764--Amending the Civil Service Rules, Executive

Order 13488, and Executive Order 13467 To Modernize the Executive

Branch-Wide Governance Structure and Processes for Security Clearances,

Suitability and Fitness for Employment, and Credentialing, and Related

Matters

Presidential Documents

Federal Register / Vol. 82 , No. 13 / Monday, January 23, 2017 /

Presidential Documents

___________________________________________________________________

Title 3--

The President

[[Page 8115]]

Executive Order 13764 of January 17, 2017

Amending the Civil Service Rules, Executive Order

13488, and Executive Order 13467 To Modernize the

Executive Branch-Wide Governance Structure and

Processes for Security Clearances, Suitability and

Fitness for Employment, and Credentialing, and Related

Matters

By the authority vested in me as President by the

Constitution and the laws of the United States of

America, and as part of continuing efforts to modernize

the overarching executive branch enterprise to ensure

that all persons performing work for or on behalf of

the Government are and continue to be loyal to the

United States, reliable, trustworthy, and of good

conduct and character, and by using mutually consistent

standards and procedures, it is hereby ordered as

follows:

e branch enterprise to ensure

that all persons performing work for or on behalf of

the Government are and continue to be loyal to the

United States, reliable, trustworthy, and of good

conduct and character, and by using mutually consistent

standards and procedures, it is hereby ordered as

follows:

Section 1. Amendments to the Civil Service Rules. (a)

Civil Service Rule II is amended as follows:

(i) The title to 5 CFR Part 2 is revised to read as follows:

``PART 2--APPOINTMENT THROUGH THE COMPETITIVE SERVICE; RELATED MATTERS

(RULE II)''

(ii) The title to 5 CFR 2.1 is revised to read as follows:

``Sec. 2.1 Competitive examinations and eligible registers; suitability

and fitness for civil service employment.''

(iii) 5 CFR 2.1(a) is revised to read as follows:

``(a) OPM shall be responsible for:

``(i) Open competitive examinations for admission to the competitive

service that will fairly test the relative capacity and fitness of the

persons examined for the position to be filled.

``(ii) Standards with respect to citizenship, age, education, training and

experience, physical and mental fitness, and for residence or other

requirements that applicants must meet to be admitted to or rated in

examinations.

``(iii) Standards of suitability based on character and conduct for

appointment to a position in the competitive service, for appointment to a

position in the excepted service where the incumbent can be

noncompetitively converted to the competitive service, and for career

appointment to a position in the Senior Executive Service.

plicants must meet to be admitted to or rated in

examinations.

``(iii) Standards of suitability based on character and conduct for

appointment to a position in the competitive service, for appointment to a

position in the excepted service where the incumbent can be

noncompetitively converted to the competitive service, and for career

appointment to a position in the Senior Executive Service.

``(iv) Minimum standards of fitness based on character and conduct for

appointment in any other position in the excepted service of the executive

branch, except for (A) positions in any element of the intelligence

community as defined in the National Security Act of 1947, as amended, to

the extent they are not otherwise subject to OPM appointing authorities,

and (B) positions where OPM is statutorily precluded from prescribing such

standards.''

(b) Civil Service Rule V is amended as follows:

(i) 5 CFR 5.2(a) is revised to read as follows:

``(a) Investigating the qualifications, suitability, and fitness of

applicants for positions in the competitive service, positions in the

excepted service where the incumbent can be noncompetitively converted to

the competitive service, career appointments to positions in the Senior

Executive Service,

[[Page 8116]]

and any other positions in the excepted service of the executive branch for

which the Director has standard-setting responsibility under Civil Service

Rule II.

``(i) The Director may require appointments to be made subject to

investigation to enable the Director to determine, after appointment, that

the requirements of law or the Civil Service Rules and Regulations have

been met.

``(ii) The Director may cause positions to be designated based on risk to

determine the appropriate level of investigation, and may prescribe

investigative standards, policies, and procedures.

y require appointments to be made subject to

investigation to enable the Director to determine, after appointment, that

the requirements of law or the Civil Service Rules and Regulations have

been met.

``(ii) The Director may cause positions to be designated based on risk to

determine the appropriate level of investigation, and may prescribe

investigative standards, policies, and procedures.

``(iii) The Director may prescribe standards for reciprocal acceptance by

agencies of investigations and adjudications of suitability and fitness,

except to the extent authority to apply additional fitness standards is

vested by statute in an agency.''

(ii) 5 CFR 5.3(a)(1) is revised by striking ``disqualified for Federal

employment'' and inserting in lieu thereof ``disqualified or unsuitable for

Federal employment.''

(c) Civil Service Rule VI is amended as follows:

(i) 5 CFR 6.3(b) is revised to read as follows:

``(b) To the extent permitted by law and the provisions of this part, and

subject to the suitability and fitness requirements of the applicable Civil

Service Rules and Regulations, appointments and position changes in the

excepted service shall be made in accordance with such regulations and

practices as the head of the agency concerned finds necessary.''

Sec. 2. Amendment to Executive Order 13488 of January

16, 2009. (a) Section 1(a) of Executive Order 13488 is

revised to read as follows:

``Section 1. Policy. (a) When agencies conduct

fitness determinations, prior favorable fitness or

suitability determinations shall be granted reciprocal

recognition, to the extent practicable.''

13488 of January

16, 2009. (a) Section 1(a) of Executive Order 13488 is

revised to read as follows:

``Section 1. Policy. (a) When agencies conduct

fitness determinations, prior favorable fitness or

suitability determinations shall be granted reciprocal

recognition, to the extent practicable.''

(b) Section 2 of Executive Order 13488 is revised

to read as follows:

``(a) `Agency' means an executive agency as defined in section 105 of title

5, United States Code, but does not include the Government Accountability

Office.

``(b) `Contractor employee' means an individual who performs work for or on

behalf of any agency under a contract and who, in order to perform the work

specified under the contract, will require access to space, information,

information technology systems, staff, or other assets of the Federal

Government, and who could, by the nature of his or her access or duties,

adversely affect the integrity or efficiency of the Government. Such

contracts, include, but are not limited to:

``(i) personal services contracts;

``(ii) contracts between any non-Federal entity and any agency; and

``(iii) sub-contracts between any non-Federal entity and another non-

Federal entity to perform work related to the primary contract with the

agency.

``(c) `Excepted service' has the meaning provided in section 2103 of title

5, United States Code, but does not include those positions in any element

of the intelligence community as defined in the National Security Act of

1947, as amended, to the extent they are not otherwise subject to Office of

Personnel Management appointing authorities.

k related to the primary contract with the

agency.

``(c) `Excepted service' has the meaning provided in section 2103 of title

5, United States Code, but does not include those positions in any element

of the intelligence community as defined in the National Security Act of

1947, as amended, to the extent they are not otherwise subject to Office of

Personnel Management appointing authorities.

``(d) `Fitness' is the level of character and conduct determined necessary

for an individual to perform work for or on behalf of a Federal agency as

an employee in the excepted service (other than a position subject to

suitability), as a contractor employee, or as a nonappropriated fund

employee.

``(e) `Fitness determination' means a decision by an agency that an

individual has or does not have the required level of character and conduct

[[Page 8117]]

necessary to perform work for or on behalf of a Federal agency as an

employee in the excepted service (other than a position subject to

suitability), as a contractor employee, or as a nonappropriated fund

employee. A favorable fitness determination is not a decision to appoint or

contract with an individual.

``(f) `Nonappropriated fund employee' means an employee paid from

nonappropriated funds of an instrumentality of the United States under the

jurisdiction of the Armed Forces conducted for the comfort, pleasure,

contentment, and mental and physical improvement of personnel of the Armed

Forces as described in section 2105 of title 5, United States Code.

``(g) `Position of Public Trust' has the meaning provided in 5 CFR Part

731.

``(h) `Suitability' has the meaning and coverage provided in 5 CFR Part

731.

he United States under the

jurisdiction of the Armed Forces conducted for the comfort, pleasure,

contentment, and mental and physical improvement of personnel of the Armed

Forces as described in section 2105 of title 5, United States Code.

``(g) `Position of Public Trust' has the meaning provided in 5 CFR Part

731.

``(h) `Suitability' has the meaning and coverage provided in 5 CFR Part

731.

(c) Section 3 of Executive Order 13488 is revised to

read as follows:

``OPM and Agency Authority.

``(a) Adjudications for determining fitness for contractual or

nonappropriated fund employment. While the Office of Personnel Management

establishes the minimum adjudicative criteria for suitability and fitness

determinations for employment in the civil service pursuant to the Civil

Service Rules, the heads of agencies retain the discretion to establish

adjudicative criteria for determining fitness to perform work as a

contractor employee or as a nonappropriated fund employee. Such discretion

shall be exercised with due regard to the regulations and guidance

prescribed by the Office of Personnel Management for the civil service and,

for contractual work, subject to applicable regulations and directives of

the Office of Management and Budget.

``(b) Investigations for determining fitness for contractual or

nonappropriated fund employment. Contractor employee fitness or

nonappropriated fund employee fitness is subject to the same position

designation requirements and investigative standards, policies, and

procedures as fitness determinations for civil service employees, as

prescribed by the Office of Personnel Management under the Civil Service

Rules.

for determining fitness for contractual or

nonappropriated fund employment. Contractor employee fitness or

nonappropriated fund employee fitness is subject to the same position

designation requirements and investigative standards, policies, and

procedures as fitness determinations for civil service employees, as

prescribed by the Office of Personnel Management under the Civil Service

Rules.

``(c) Reciprocity. Fitness determinations and investigations for fitness

determinations for contractor employees and for nonappropriated fund

employees are subject to the same reciprocity requirements as those for

employment in the civil service, as prescribed by the Office of Personnel

Management under the Civil Service Rules.''

(d) Executive Order 13488 is revised by striking

section 4 in its entirety, and redesignating sections 5

through 8 as sections 4 through 7, respectively.

Sec. 3. Amendments to Executive Order 13467 of June 30,

2008, as amended. (a) The preamble to Executive Order

13467 is revised to read as follows:

``By the authority vested in me as President by the

Constitution and the laws of the United States of

America, including sections 3301, 7103(b), and 7301 of

title 5, United States Code, and in order to strengthen

and ensure a secure, efficient, timely, reciprocal, and

aligned system for investigating and determining

suitability or fitness for Government employment,

fitness to work as a contractor or a nonappropriated

fund employee, eligibility for access to classified

information or to hold a sensitive position, and

authorization to be issued a Federal credential, while

providing fair, impartial, and equitable treatment, and

protecting individual rights under the Consti

fitness to work as a contractor or a nonappropriated

fund employee, eligibility for access to classified

information or to hold a sensitive position, and

authorization to be issued a Federal credential, while

providing fair, impartial, and equitable treatment, and

protecting individual rights under the Constitution and

laws of the United States, and taking appropriate

account of title III of Public Law 108-458, it is

hereby ordered as follows:''

(b) Section 1.1 of Executive Order 13467 is revised

to read as follows:

``Section 1.1. Policy. (a) Executive branch vetting

policies and procedures relating to suitability,

contractor or Federal employee fitness, eligibility to

hold a sensitive position, authorization to be issued a

Federal credential for access to federally controlled

facilities and information systems, and

[[Page 8118]]

eligibility for access to classified information shall

be aligned using consistent standards to the extent

possible, shall provide for reciprocal recognition, and

shall ensure cost-effective, timely, and efficient

protection of the national interest, while providing

fair treatment to those upon whom the Federal

Government relies to conduct our Nation's business and

protect national security.

the extent

possible, shall provide for reciprocal recognition, and

shall ensure cost-effective, timely, and efficient

protection of the national interest, while providing

fair treatment to those upon whom the Federal

Government relies to conduct our Nation's business and

protect national security.

``(b) The Government's tools, systems, and processes for conducting these

background investigations and managing sensitive investigative information

should keep pace with technological advancements, regularly integrating

current best practices to better anticipate, detect, and counter malicious

activities, and threats posed by external or internal actors who may seek

to do harm to the Government's personnel, property, and information. To

help fulfill these responsibilities, there shall be a primary executive

branch investigative service provider whose mission is to provide

effective, efficient, and secure background investigations for the Federal

Government.

``(c) Executive branch vetting policies and procedures shall be sustained

by an enhanced risk-management approach that facilitates early detection of

issues by an informed, aware, and responsible Federal workforce; results in

quality decisions enabled by improved vetting capabilities; and advances

Government-wide capabilities through enterprise approaches.

gations for the Federal

Government.

``(c) Executive branch vetting policies and procedures shall be sustained

by an enhanced risk-management approach that facilitates early detection of

issues by an informed, aware, and responsible Federal workforce; results in

quality decisions enabled by improved vetting capabilities; and advances

Government-wide capabilities through enterprise approaches.

``(d) The appointment or retention of each covered individual shall be

subject to an investigation. Federal investigative standards established

pursuant to this order shall be designed to develop information as to

whether the employment or retention in employment in the Federal service of

the person being investigated is clearly consistent with the interests of

the national security, and the scope of the investigation shall be

determined in the first instance according to the degree of material

adverse effect the occupant of the position sought to be filled could bring

about, by virtue of the nature of the position, on the national security.''

``(e) Investigative agencies shall control the reports, information, and

other investigative materials that are developed during the vetting

process. Recipient departments and agencies may retain and use the received

reports, information, and other investigative material within that

recipient for authorized purposes (including, but not limited to,

adjudications, hearings and appeals, continuous evaluation, inspector

general functions, counterintelligence, research, and insider threat

programs), in compliance with the Privacy Act of 1974, as amended (section

552a of title 5, United States Code). Investigative agencies shall ensure

that their applicable System of Records Notices include, at a minimum, the

authorized uses of the recipient departments and agencies such as those set

forth above

on, inspector

general functions, counterintelligence, research, and insider threat

programs), in compliance with the Privacy Act of 1974, as amended (section

552a of title 5, United States Code). Investigative agencies shall ensure

that their applicable System of Records Notices include, at a minimum, the

authorized uses of the recipient departments and agencies such as those set

forth above. Recipient departments and agencies shall not make any external

releases of received information, other than to an investigative subject

for the purpose of providing procedural rights or administrative due

process; and shall direct any other requests for external releases of

copies of the reports, information, and other investigative materials to

the investigative agency. In the event redisclosure by the recipient agency

is required by compulsory legal process, the recipient agency shall consult

with the investigating agency. The investigative agency shall maintain the

reports, information, and other investigative material in a system of

records subject to the Privacy Act and ensure that any re-disclosure does

not violate statutory restrictions or result in the unauthorized disclosure

of: classified information, information subject to a claim of privilege, or

information that is otherwise lawfully exempt from disclosure. Subject to

Security Executive Agent authorizations consistent with section 3341(e)(5)

of title 50, United States Code, the investigative agencies shall make

reports, information, and other investigative material available, as

necessary, to carry out the responsibilities set forth in this order,

including but not limited to, authorized executive branch-sponsored

research and initiatives for enterprise-wide continuous performance

improvement of vetting policy and procedures, as permitted by law.''

States Code, the investigative agencies shall make

reports, information, and other investigative material available, as

necessary, to carry out the responsibilities set forth in this order,

including but not limited to, authorized executive branch-sponsored

research and initiatives for enterprise-wide continuous performance

improvement of vetting policy and procedures, as permitted by law.''

(c) Section 1.2 of Executive Order 13467 is revised

to read as follows:

[[Page 8119]]

``Sec. 1.2. Applicability. (a) This order applies

to vetting of all covered individuals as defined in

section 1.3(h), except that:

``(i) the provisions regarding eligibility for physical access to

federally controlled facilities and logical access to federally controlled

information systems do not apply to individuals exempted in accordance with

guidance pursuant to the Federal Information Security Management Act (title

III of Public Law 107-347) and Homeland Security Presidential Directive 12

of August 27, 2004; and

``(ii) the qualification standards for enlistment, appointment, and

induction into the Armed Forces pursuant to title 10, United States Code,

are unaffected by this order.

``(b) This order also applies to vetting for employees of agencies working

in or for the legislative or judicial branches when the vetting is

conducted by the executive branch.''

ial Directive 12

of August 27, 2004; and

``(ii) the qualification standards for enlistment, appointment, and

induction into the Armed Forces pursuant to title 10, United States Code,

are unaffected by this order.

``(b) This order also applies to vetting for employees of agencies working

in or for the legislative or judicial branches when the vetting is

conducted by the executive branch.''

(d) Section 1.3(a) of Executive Order 13467 is

revised to read as follows:

``(a) `Adjudication' means the evaluation of pertinent data in a background

investigation, as well as any other available information that is relevant

and reliable, to determine whether a covered individual is:

``(i) suitable for Government employment;

``(ii) eligible for logical and physical access;

``(iii) eligible for access to classified information;

``(iv) eligible to hold a sensitive position; or

``(v) fit to perform work for or on behalf of the Government as a Federal

employee, contractor, or nonappropriated fund employee.''

(e) Sections 1.3(c) and 1.3(d) of Executive Order

13467 are revised to read as follows:

``(c) `Classified information' means information that has been determined

pursuant to Executive Order 13526 of December 29, 2009, or a successor or

predecessor order, or the Atomic Energy Act of 1954 (42 U.S.C. 2011 et

seq.) to require protection against unauthorized disclosure.

``(d) `Continuous evaluation (CE)' means a vetting process to review the

background of an individual who has been determined to be eligible for

access to classified information or to hold a sensitive position at any

time during the period of eligibility. CE leverages a set of automated

record checks and business rules to assist in the on-going assessment of an

individual's continued eligibility. CE is intended to complement continuous

vetting efforts.''

eview the

background of an individual who has been determined to be eligible for

access to classified information or to hold a sensitive position at any

time during the period of eligibility. CE leverages a set of automated

record checks and business rules to assist in the on-going assessment of an

individual's continued eligibility. CE is intended to complement continuous

vetting efforts.''

(f) Section 1.3(f) of Executive Order 13467 is

deleted.

(g) Sections 1.3(j), (k), (l), and (m) are

redesignated as sections 1.3(m), (n), (o), and (p);

sections 1.3(g), (h), and (i) are redesignated as

sections 1.3(h), (i), and (j); and section 1.3(e) is

redesignated as section 1.3(g).

(h) New sections 1.3(e) and 1.3(f) are added to

Executive Order 13467 to read as follows:

``(e) `Continuous performance improvement' means assessing national policy

and operations, adverse events, and emerging trends and technology

throughout the Government's end-to-end vetting program. It relies on

research to generate data-driven decisions and uses outcome-based

measurements to adjust policy and operations.

``(f) `Continuous vetting' means reviewing the background of a covered

individual at any time to determine whether that individual continues to

meet applicable requirements.''

s, and emerging trends and technology

throughout the Government's end-to-end vetting program. It relies on

research to generate data-driven decisions and uses outcome-based

measurements to adjust policy and operations.

``(f) `Continuous vetting' means reviewing the background of a covered

individual at any time to determine whether that individual continues to

meet applicable requirements.''

(i) Redesignated section 1.3(h) of Executive Order

13467 is revised to read as follows:

``(h) `Covered individual' means a person who performs, or who seeks to

perform, work for or on behalf of the executive branch (e.g., Federal

employee, military member, or contractor), or otherwise interacts with

[[Page 8120]]

the executive branch such that the individual must undergo vetting, but

does not include:

``(i) the President or (except to the extent otherwise directed by the

President) employees of the President under section 105 or 107 of title 3,

United States Code;

``(ii) the Vice President or (except to the extent otherwise directed by

the Vice President) employees of the Vice President under section 106 of

title 3, United States Code, or annual legislative branch appropriations

acts; or

``(iii) with respect to background investigations only, duly elected or

appointed governor of a State or territory, or an official who has

succeeded to that office under applicable law in accordance with Executive

Order 13549 of August 18, 2010, and its implementing directive.''

President under section 106 of

title 3, United States Code, or annual legislative branch appropriations

acts; or

``(iii) with respect to background investigations only, duly elected or

appointed governor of a State or territory, or an official who has

succeeded to that office under applicable law in accordance with Executive

Order 13549 of August 18, 2010, and its implementing directive.''

(j) New sections 1.3(k) and 1.3(l) are added to

Executive Order 13467 to read as follows:

``(k) `Fitness' means the level of character and conduct determined

necessary for an individual to perform work for or on behalf of a Federal

agency as an employee in the excepted service (other than a position

subject to suitability), or as a `contractor employee' or a

`nonappropriated fund employee' as those terms are defined in Executive

Order 13488 of January 16, 2009, as amended.

``(l) `Investigation' means the collection and analysis of pertinent facts

and data to support a determination of whether a covered individual is, and

continues to be:

``(i) eligible for access to classified information;

``(ii) eligible to hold a sensitive position;

``(iii) suitable or fit for Federal employment;

``(iv) fit to perform work for or on behalf of the Federal Government as

a contractor or nonappropriated fund employee; or

``(v) authorized to be issued a Federal credential.''

(k) Redesignated section 1.3(n) of Executive Order

13467 is revised to read as follows:

``(n) `National Background Investigations Bureau' (NBIB) means the National

Background Investigations Bureau, established within the Office of

Personnel Management under section 1103(a)(3) of title 5, United States

Code, or a successor entity, with responsibility for conducting effective,

efficient, and secure personnel background investigations pursuant to law,

rule, regulation, or Executive Order.''

tional Background Investigations Bureau' (NBIB) means the National

Background Investigations Bureau, established within the Office of

Personnel Management under section 1103(a)(3) of title 5, United States

Code, or a successor entity, with responsibility for conducting effective,

efficient, and secure personnel background investigations pursuant to law,

rule, regulation, or Executive Order.''

(l) Redesignated section 1.3(o) of Executive Order

13467 is revised to read as follows:

``(o) `Sensitive Position' means any position within or in support of a

department or agency, the occupant of which 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, a

military service member, or a contractor.

(m) New section 1.3(q) is added to Executive Order

13467 to read as follows:

``(q) `Vetting' is the process by which covered individuals undergo

investigation, evaluation, and adjudication of whether they are, and remain

over time, suitable or fit for Federal employment, eligible to occupy a

sensitive position, eligible for access to classified information, eligible

to serve as a nonappropriated fund employee or a contractor, eligible to

serve in the military, or authorized to be issued a Federal credential.

Vetting includes all steps in the end-to-end process, including determining

need (appropriate position designation), validating need (existence of a

current investigation or adjudication), collecting background information

[[Page 8121]]

via standard forms, investigative activity, adjudication, providing

administrative due process or other procedural rights, and ongoing

assessments to ensure that individuals continue to meet the applicable

standards for the position for which they were favorably adjudicated.''

idating need (existence of a

current investigation or adjudication), collecting background information

[[Page 8121]]

via standard forms, investigative activity, adjudication, providing

administrative due process or other procedural rights, and ongoing

assessments to ensure that individuals continue to meet the applicable

standards for the position for which they were favorably adjudicated.''

(n) The title to Part 2 of Executive Order 13467 is

revised to read as follows:

``PART 2--VETTING ENTERPRISE, RECIPROCITY,

CONTINUOUS PERFORMANCE IMPROVEMENT, AND GOVERNANCE''

(o) Section 2.1 of Executive Order 13467 is revised

to read as follows:

``Sec. 2.1. Vetting Enterprise. (a) The executive

branch-wide vetting enterprise shall use, to the

greatest extent practicable, aligned and consistent

vetting policies, procedures, and standards, as

determined by the Council and the Executive Agents. The

Executive Agents shall issue guidance to implement this

provision.

``(b) The aligned executive branch-wide vetting enterprise shall employ

modern and consistent standards and methods, enable innovations with

enterprise information technology capabilities and end-to-end automation to

the extent practicable, and ensure that relevant information maintained by

agencies can be accessed and shared rapidly across the executive branch,

while protecting national security, protecting privacy-related information,

protecting civil rights and civil liberties, ensuring resulting decisions

are in the national interest and in accordance with due process

requirements, and providing the Federal Government with an effective

trusted workforce.

ation maintained by

agencies can be accessed and shared rapidly across the executive branch,

while protecting national security, protecting privacy-related information,

protecting civil rights and civil liberties, ensuring resulting decisions

are in the national interest and in accordance with due process

requirements, and providing the Federal Government with an effective

trusted workforce.

``(c) The investigative and adjudicative standards for fitness shall, to

the extent practicable, be consistent with the standards for suitability.

The Executive Agents shall establish in Federal investigative standards the

elements of the level of investigation necessary for vetting for fitness.

``(d) All covered individuals shall be subject to continuous vetting under

standards (including, but not limited to, the frequency of such vetting) as

determined by the Security Executive Agent or the Suitability and

Credentialing Executive Agent exercising its Suitability Executive Agent

functions, as applicable.

``(e) Vetting shall include a search of records of the Federal Bureau of

Investigation, including a fingerprint-based search, and any other

appropriate biometric or database searches not precluded by law.''

(p) Sections 2.2, 2.3, 2.4, and 2.5 of Executive

Order 13467 are redesignated as sections 2.4, 2.5, 2.6,

and 2.7.

(q) New sections 2.2 and 2.3 are added to Executive

Order 13467 to read as follows:

``Sec. 2.2. Reciprocity

appropriate biometric or database searches not precluded by law.''

(p) Sections 2.2, 2.3, 2.4, and 2.5 of Executive

Order 13467 are redesignated as sections 2.4, 2.5, 2.6,

and 2.7.

(q) New sections 2.2 and 2.3 are added to Executive

Order 13467 to read as follows:

``Sec. 2.2. Reciprocity. Except as otherwise

authorized by law or policy issued by the applicable

Executive Agent, agencies shall accept background

investigations and adjudications conducted by other

authorized agencies unless an agency determines that a

particular background investigation or adjudication

does not sufficiently address the standards used by

that agency in determining the fitness of its excepted

service employees who cannot be noncompetitively

converted to the competitive service. Except as

described above and except to the extent authority to

apply additional requirements is vested by statute in

an agency, an agency may not establish additional

investigative or adjudicative requirements (other than

requirements for the conduct of a polygraph examination

consistent with law, directive, or regulation) that

exceed existing requirements without the approval of

the Suitability and Credentialing Executive Agent

exercising its Suitability Executive Agent functions or

Security Executive Agent, as appropriate

requirements for the conduct of a polygraph examination

consistent with law, directive, or regulation) that

exceed existing requirements without the approval of

the Suitability and Credentialing Executive Agent

exercising its Suitability Executive Agent functions or

Security Executive Agent, as appropriate. Any

additional requirements approved by the appropriate

Executive Agent shall be limited to those that are

necessary to address significant needs unique to the

agency involved, to protect national security, or to

satisfy a requirement imposed by law.''

[[Page 8122]]

``Sec. 2.3. Continuous Performance Improvement.

Executive branch vetting policies, processes, and

procedures shall be supported by institutionalized

enterprise-wide continuous performance improvement,

which shall align with and support process

improvements.''

(r) Redesignated section 2.4 of Executive Order

13467 is revised to read as follows:

``Sec. 2.4. Establishment and Functions of

Performance Accountability Council. (a) There is hereby

established a Security, Suitability, and Credentialing

Performance Accountability Council (Council).

ents.''

(r) Redesignated section 2.4 of Executive Order

13467 is revised to read as follows:

``Sec. 2.4. Establishment and Functions of

Performance Accountability Council. (a) There is hereby

established a Security, Suitability, and Credentialing

Performance Accountability Council (Council).

``(b) The Deputy Director for Management, Office of Management and Budget,

shall serve as Chair of the Council and shall have authority, direction,

and control over the Council's functions. Membership on the Council shall

include the Suitability and Credentialing Executive Agent, the Security

Executive Agent, and the Under Secretary of Defense for Intelligence. These

four officials collectively shall constitute `the Security, Suitability,

and Credentialing Performance Accountability Council Principals.' The

Director of the National Background Investigations Bureau shall also serve

as a member of the Council. The Chair shall select a Vice Chair to act in

the Chair's absence. The Chair shall have authority to designate officials

from additional agencies who shall serve as members of the Council. Council

membership shall be limited to Federal Government employees in leadership

positions.

``(c) The Council shall be accountable to the President to achieve,

consistent with this order, the goals of the executive branch vetting

enterprise, and is responsible for driving implementation of reform efforts

and enterprise development, ensuring accountability by agencies, ensuring

the Executive Agents align their respective processes, and sustaining

continuous performance improvement and reform momentum.

``(d) The Council shall:

``(i) ensure enterprise-wide alignment of suitability, security,

credentialing, and as appropriate, fitness processes;

``(ii) hold agencies accountable for the implementation of suitability,

security, fitness, and credentialing processes and procedures;

Agents align their respective processes, and sustaining

continuous performance improvement and reform momentum.

``(d) The Council shall:

``(i) ensure enterprise-wide alignment of suitability, security,

credentialing, and as appropriate, fitness processes;

``(ii) hold agencies accountable for the implementation of suitability,

security, fitness, and credentialing processes and procedures;

``(iii) define requirements for enterprise-wide reciprocity management

information technology, and develop standards for enterprise-wide

information technology;

``(iv) work with agencies to implement continuous performance improvement

programs, policies, and procedures; establish annual goals and progress

metrics; and prepare annual reports on results;

``(v) ensure and oversee the development of tools and techniques for

enhancing background investigations and adjudications;

``(vi) enable discussion and consensus resolution of differences in

processes, policies, and procedures among the Council Principals, and other

agencies as appropriate;

``(vii) share best practices;

``(viii) advise the Executive Agents on policies affecting the alignment

of investigations and adjudications;

``(ix) work with agencies to develop agency policies and procedures to

enable sharing of vetting information consistent with the law and the

protection of privacy and civil liberties and to the extent necessary for

enterprise-wide efficiency, effectiveness, and security;

``(x) monitor performance to identify and drive enterprise-level process

enhancements, and make recommendations for changes to executive branch-wide

guidance and authorities to resolve overlaps or close policy gaps where

they may exist;

[[Page 8123]]

``(xi) promote data-driven, transparent, and expeditious policy-making

processes; and

``(xii) develop and continuously reevaluate and revise outcome-based

metrics that measure the quality, efficiency and effectiveness of the

vetting enterprise.

ions for changes to executive branch-wide

guidance and authorities to resolve overlaps or close policy gaps where

they may exist;

[[Page 8123]]

``(xi) promote data-driven, transparent, and expeditious policy-making

processes; and

``(xii) develop and continuously reevaluate and revise outcome-based

metrics that measure the quality, efficiency and effectiveness of the

vetting enterprise.

``(e) The Chair shall, to further the goals of the vetting enterprise and

to the extent consistent with law, establish subordinate entities,

mechanisms, and policies to support and assist in exercising the Council's

authorities and responsibilities, and facilitate, consistent with the

executive branch's enterprise strategy, adoption of enterprise-wide

standards and solutions to ensure security, quality, reciprocity,

efficiency, effectiveness, and timeliness. The Chair may assign, in whole

or in part, to the head of any agency (solely or jointly) any function

within the Council's authority or responsibilities pursuant to this

order.''

(s) Redesignated section 2.5 of Executive Order

13467 is revised to read as follows:

``Sec. 2.5. Establishment, Designation, and

Functions of Executive Agents. (a) There are hereby

established a Suitability and Credentialing Executive

Agent and a Security Executive Agent.

``(b) The Director of the Office of Personnel Management shall serve as the

Suitability and Credentialing Executive Agent. With respect to the

Suitability Executive Agent functions, the Director:

n, and

Functions of Executive Agents. (a) There are hereby

established a Suitability and Credentialing Executive

Agent and a Security Executive Agent.

``(b) The Director of the Office of Personnel Management shall serve as the

Suitability and Credentialing Executive Agent. With respect to the

Suitability Executive Agent functions, the Director:

``(i) shall, pursuant to sections 1103 and 1104 of title 5, United States

Code, and the Civil Service Rules, be responsible for suitability and

fitness by prescribing suitability standards and minimum standards of

fitness for employment; prescribing position designation requirements with

regard to the risk to the efficiency and integrity of the service;

prescribing applicable investigative standards, policies, and procedures

for suitability and fitness; prescribing suitability and fitness

reciprocity standards; making suitability determinations; and taking

suitability actions;

``(ii) shall issue regulations, guidance, and standards to fulfill the

Director's responsibilities related to suitability and fitness under

Executive Order 13488 of January 16, 2009, as amended;

``(iii) shall promote reciprocal recognition of suitability or fitness

determinations among the agencies, including acting as the final authority

to arbitrate and resolve disputes among the agencies involving the

reciprocity of investigations and adjudications of suitability and fitness;

``(iv) shall continue to initially approve, and periodically review for

renewal, agencies' requests to administer polygraphs in connection with

appointment in the competitive service, in consultation with the Security

Executive Agent as appropriate;

``(v) shall make a continuing review of agency programs for suitability

and fitness vetting to determine whether they are being implemented

according to this order;

to initially approve, and periodically review for

renewal, agencies' requests to administer polygraphs in connection with

appointment in the competitive service, in consultation with the Security

Executive Agent as appropriate;

``(v) shall make a continuing review of agency programs for suitability

and fitness vetting to determine whether they are being implemented

according to this order;

``(vi) may issue guidelines and instructions to the heads of agencies to

promote appropriate uniformity, centralization, efficiency, effectiveness,

reciprocity, timeliness, and security in processes relating to determining

suitability or fitness; and

``(vii) shall, pursuant to section 1104 of title 5, United States Code,

prescribe performance standards and a system of oversight for any

suitability or fitness function delegated by the Director to the head of

another agency, including uniform and consistent policies and procedures to

ensure the effective, efficient, timely, and secure completion of delegated

functions.

``(c) With respect to the Credentialing Executive Agent functions, the

Director of the Office of Personnel Management:

[[Page 8124]]

``(i) shall develop standards for investigations, reinvestigations, and

continuous vetting for a covered individual's eligibility for a personal

identity verification credential permitting logical and physical access to

federally controlled facilities and federally controlled information

systems (PIV credential);

``(ii) shall develop adjudicative guidelines for a covered individual's

eligibility for a PIV credential;

``(iii) shall develop guidelines on reporting and recording

determinations of eligibility for a PIV credential;

``(iv) shall develop standards for unfavorable determinations of

eligibility for a PIV credential, including procedures for denying and

revoking the eligibility for a PIV credential, for reconsideration of

unfavorable determinations, and for rendering the PIV credential

inoperable;

(iii) shall develop guidelines on reporting and recording

determinations of eligibility for a PIV credential;

``(iv) shall develop standards for unfavorable determinations of

eligibility for a PIV credential, including procedures for denying and

revoking the eligibility for a PIV credential, for reconsideration of

unfavorable determinations, and for rendering the PIV credential

inoperable;

``(v) shall develop standards and procedures for suspending eligibility

for a PIV credential when there is a reasonable basis to believe there may

be an unacceptable risk pending an inquiry or investigation, including

special standards and procedures for imminent risk;

``(vi) shall be responsible for developing uniform and consistent

policies and procedures to ensure the effective, efficient, timely, and

secure completion of investigations and adjudications relating to

eligibility for a PIV credential;

``(vii) may develop guidelines and instructions to the heads of agencies

as necessary to ensure appropriate uniformity, centralization, efficiency,

effectiveness, and timeliness in processes relating to eligibility for a

PIV credential;

``(viii) shall monitor and make a continuing review of agency programs

for determining eligibility for a PIV credential to determine whether they

are being implemented according to this order; and

``(ix) shall consult to the extent practicable with other agencies with

responsibilities related to PIV credentials to ensure that policies and

procedures are consistent with law including:

``(A) the Office of Management and Budget, in exercising its

responsibilities under section 11331 of title 40, United States Code,

section 3553(a) of title 44, United States Code, division A, sections

1086(b)(2) and (b)(3) of Public Law 114-92, and Homeland Security

Presidential Directive 12 of August 27, 2004;

``(B) the Department of Homeland Security, in exercising its

responsibilities under sections 3553(b), (f), and (g) of title 44, United

States Code;

nsibilities under section 11331 of title 40, United States Code,

section 3553(a) of title 44, United States Code, division A, sections

1086(b)(2) and (b)(3) of Public Law 114-92, and Homeland Security

Presidential Directive 12 of August 27, 2004;

``(B) the Department of Homeland Security, in exercising its

responsibilities under sections 3553(b), (f), and (g) of title 44, United

States Code;

``(C) the Department of Defense, in exercising its responsibilities under

section 3553(e) of title 44, United States Code, and division A, sections

1086(a)(1)(E), (b)(1), and (b)(2) of Public Law 114-92;

``(D) the Office of the Director of National Intelligence, in exercising

its responsibilities under section 3553(e) of title 44, United States Code,

and division A, section 1086(b)(2) of Public Law 114-92;

``(E) the Department of Commerce and the National Institute of Standards

and Technology, in exercising their responsibilities under section 278g-3

of title 15, United States Code, and Homeland Security Presidential

Directive 12 of August 27, 2004;

``(F) the General Services Administration, in exercising its

responsibilities under division A, section 1086(b)(2) of Public Law 114-92;

and

``(G) the Federal Acquisition Regulation agencies, in exercising their

responsibilities under chapter 137 of title 10, section 121(c) of title 40,

and section 20113 of title 51, United States Code.

``(d) In fulfilling the Credentialing Executive Agent function of

developing policies and procedures for determining eligibility for a PIV

credential and to protect the national security, the Director of the Office

of Personnel Management shall coordinate with and obtain the concurrence of

the

[[Page 8125]]

other Council Principals. Agencies with authority to establish standards or

guidelines or issue instructions related to PIV credentials shall retain

the discretion as to whether to establish policies, guidelines, or

instructions developed by the Credentialing Executive Agent.

Director of the Office

of Personnel Management shall coordinate with and obtain the concurrence of

the

[[Page 8125]]

other Council Principals. Agencies with authority to establish standards or

guidelines or issue instructions related to PIV credentials shall retain

the discretion as to whether to establish policies, guidelines, or

instructions developed by the Credentialing Executive Agent.

``(e) The Director of National Intelligence shall serve as the Security

Executive Agent. The Security Executive Agent:

``(i) shall direct the oversight of investigations, reinvestigations,

adjudications, and, as applicable, polygraphs for eligibility for access to

classified information or eligibility to hold a sensitive position made by

any agency;

``(ii) shall make a continuing review of agencies' national security

background investigation and adjudication programs to determine whether

they are being implemented according to this order;

``(iii) shall be responsible for developing and issuing uniform and

consistent policies and procedures to ensure the effective, efficient,

timely, and secure completion of investigations, polygraphs, and

adjudications relating to determinations of eligibility for access to

classified information or eligibility to hold a sensitive position;

``(iv) may issue guidelines and instructions to the heads of agencies to

ensure appropriate uniformity, centralization, efficiency, effectiveness,

timeliness, and security in processes relating to determinations by

agencies of eligibility for access to classified information or eligibility

to hold a sensitive position, to include such matters as investigations,

polygraphs, adjudications, and reciprocity;

``(v) may, if consistent with the national security, authorize exceptions

to or waivers of national security investigative requirements, and may

issue implementing or clarifying guidance as necessary;

agencies of eligibility for access to classified information or eligibility

to hold a sensitive position, to include such matters as investigations,

polygraphs, adjudications, and reciprocity;

``(v) may, if consistent with the national security, authorize exceptions

to or waivers of national security investigative requirements, and may

issue implementing or clarifying guidance as necessary;

``(vi) shall serve as the final authority to designate an agency or

agencies, to the extent that it is not practicable to use the National

Background Investigations Bureau, to conduct investigations of persons who

are proposed for access to classified information or for eligibility to

hold a sensitive position to ascertain whether such persons satisfy the

criteria for obtaining and retaining access to classified information or

eligibility to hold a sensitive position;

``(vii) shall serve as the final authority to designate an agency or

agencies to determine eligibility for access to classified information or

eligibility to hold a sensitive position in accordance with Executive Order

12968 of August 2, 1995, as amended;

``(viii) shall ensure reciprocal recognition of eligibility for access to

classified information or eligibility to hold a sensitive position among

the agencies, including acting as the final authority to arbitrate and

resolve disputes among the agencies involving the reciprocity of

investigations and adjudications of eligibility; and

``(ix) may assign, in whole or in part, to the head of any agency (solely

or jointly) any of the functions detailed in (i) through (viii) of this

subsection, with the agency's exercise of such assigned functions to be

subject to the Security Executive Agent's oversight and with such terms and

conditions (including approval by the Security Executive Agent) as the

Security Executive Agent determines appropriate.

in whole or in part, to the head of any agency (solely

or jointly) any of the functions detailed in (i) through (viii) of this

subsection, with the agency's exercise of such assigned functions to be

subject to the Security Executive Agent's oversight and with such terms and

conditions (including approval by the Security Executive Agent) as the

Security Executive Agent determines appropriate.

``(f) Nothing in this section shall be construed in a manner that would

limit the authorities of the Director of the Office of Personnel

Management, the Director of National Intelligence, or the Secretary of

Defense under law.''

(t) Redesignated section 2.6 of Executive Order

13467 is revised to read as follows:

``Sec. 2.6. Roles and Responsibilities of the

National Background Investigations Bureau and the

Department of Defense.

``(a) The National Background Investigations Bureau shall:

[[Page 8126]]

``(1) serve as the primary executive branch service provider for

background investigations for eligibility for access to classified

information; eligibility to hold a sensitive position; suitability or, for

employees in positions not subject to suitability, fitness for Government

employment; fitness to perform work for or on behalf of the Government as a

contractor; fitness to work as a nonappropriated fund employee, as defined

in Executive Order 13488 of January 16, 2009, as amended; and authorization

to be issued a Federal credential for logical and physical access to

federally controlled facilities or information systems;

``(2) provide effective, efficient, and secure personnel background

investigations for the Federal Government;

``(3) provide the Council information, to the extent permitted by law, on

matters of performance, timeliness, capacity, information technology

modernization, continuous performance improvement, and other relevant

aspects of NBIB operations;

led facilities or information systems;

``(2) provide effective, efficient, and secure personnel background

investigations for the Federal Government;

``(3) provide the Council information, to the extent permitted by law, on

matters of performance, timeliness, capacity, information technology

modernization, continuous performance improvement, and other relevant

aspects of NBIB operations;

``(4) be headquartered in or near Washington, District of Columbia;

``(5) have dedicated resources, including but not limited to a senior

privacy and civil liberties official;

``(6) institutionalize interagency collaboration and leverage expertise

across the executive branch;

``(7) continuously improve investigative operations, emphasizing

information accuracy and protection, and regularly integrate best

practices, including those identified by subject matter experts from

industry, academia, or other relevant sources;

``(8) conduct personnel background investigations in accordance with

uniform and consistent policies, procedures, standards, and requirements

established by the Security Executive Agent and the Suitability and

Credentialing Executive Agent exercising its Suitability Executive Agent

functions; and

``(9) conduct other personnel background investigations as authorized by

law, rule, regulation, or Executive Order.''

``(b) The Secretary of Defense shall design, develop, deploy, operate,

secure, defend, and continuously update and modernize, as necessary,

vetting information technology systems that support all background

investigation processes conducted by the National Background Investigations

Bureau. Design and operation of the information technology systems for the

National Background Investigations Bureau shall comply with applicable

information technology standards and, to the extent practicable, ensure

security and interoperability with other background investigation

information technology systems

und

investigation processes conducted by the National Background Investigations

Bureau. Design and operation of the information technology systems for the

National Background Investigations Bureau shall comply with applicable

information technology standards and, to the extent practicable, ensure

security and interoperability with other background investigation

information technology systems. The Secretary of Defense shall operate the

database in the information technology systems containing appropriate data

relevant to the granting, denial, or revocation of eligibility for access

to classified information or eligibility for a sensitive position

pertaining to military, civilian, or Government contractor personnel, see

section 3341(e) of title 50, United States Code, consistent with and

following an explicit delegation from the Director of the Office of

Personnel Management pursuant to section 1104 of title 5, United States

Code.''

``(c) Delegations and designations of investigative authority in place on

the date of establishment of the National Background Investigations Bureau

shall remain in effect until amended or revoked. The National Background

Investigations Bureau, through the Director of the Office of Personnel

Management, shall be subject to the oversight of the Security Executive

Agent in the conduct of investigations for eligibility for access to

classified information or to hold a sensitive position; and to the

oversight of the Suitability and Credentialing Executive Agent in the

conduct of investigations of suitability or fitness and logical and

physical access, as provided in section 2.5 of this order. The Council

shall hold the National Background

[[Page 8127]]

Investigations Bureau accountable for the fulfillment of the

responsibilities set forth in section 2.6(a) of this order.''

; and to the

oversight of the Suitability and Credentialing Executive Agent in the

conduct of investigations of suitability or fitness and logical and

physical access, as provided in section 2.5 of this order. The Council

shall hold the National Background

[[Page 8127]]

Investigations Bureau accountable for the fulfillment of the

responsibilities set forth in section 2.6(a) of this order.''

(u) Subsections (b) and (c) of redesignated section

2.7 of Executive Order 13467 are revised to read as

follows:

``(b) Heads of agencies shall:

``(i) designate, or cause to be designated, as a `sensitive position,'

any position occupied by a covered individual in which the occupant could

bring about by virtue of the nature of the position, a material adverse

effect on the national security;

``(ii) establish and maintain within their respective agencies, an

effective program to ensure that employment and retention of any covered

individual within the agency is clearly consistent with the interests of

national security and, as applicable, meets standards for eligibility for

access to classified information or to hold a sensitive position,

suitability, fitness, or credentialing, established by the respective

Executive Agent;

``(iii) carry out any function assigned to the agency head by the Chair,

and shall assist the Chair, the Council, the Executive Agents, the National

Background Investigations Bureau, and the Department of Defense in carrying

out any function under sections 2.4, 2.5, and 2.6 of this order;

``(iv) implement any policy or procedure established pursuant to this

order;

``(v) to the extent permitted by law, make available to the Council, the

Executive Agents, the National Background Investigations Bureau, and the

Department of Defense such information as may be requested to implement

this order, including information necessary to implement enterprise-wide

vetting policies and procedures;

mplement any policy or procedure established pursuant to this

order;

``(v) to the extent permitted by law, make available to the Council, the

Executive Agents, the National Background Investigations Bureau, and the

Department of Defense such information as may be requested to implement

this order, including information necessary to implement enterprise-wide

vetting policies and procedures;

``(vi) except as authorized by section 3341(e)(5) of title 50, United

States Code, promptly furnish, or cause to be promptly furnished, to the

Office of Personnel Management the information deemed by the Executive

Agents to be necessary for purposes of record keeping and reciprocity

including, but not limited to, the date on which a background investigation

is initiated, the date on which the background investigation is closed, and

the specific adjudicative or access decision made. The Executive Agents

shall determine the appropriate timeline pursuant to which this information

must be reported to the Office of Personnel Management. The Executive

Agents shall maintain discretion to determine the scope of information

needed for record keeping and reciprocity purposes. The Office of Personnel

Management shall regularly provide this information to the Director of

National Intelligence for national security purposes.

``(vii) ensure that all actions taken under this order take account of

the counterintelligence interests of the United States, as appropriate; and

``(viii) ensure that actions taken under this order are consistent with

the President's constitutional authority to:

``(A) conduct the foreign affairs of the United States;

``(B) withhold information the disclosure of which could impair the foreign

relations, the national security, the deliberative processes of the

Executive, or the performance of the Executive's constitutional duties;

``(C) recommend for congressional consideration such measures as the

President may judge necessary or expedient; and

y to:

``(A) conduct the foreign affairs of the United States;

``(B) withhold information the disclosure of which could impair the foreign

relations, the national security, the deliberative processes of the

Executive, or the performance of the Executive's constitutional duties;

``(C) recommend for congressional consideration such measures as the

President may judge necessary or expedient; and

``(D) supervise the unitary executive branch.

``(c) All investigations being conducted by agencies that develop

information indicating that an individual may have been subjected to

coercion, influence, or pressure to act contrary to the interests of the

national security, or information that the individual may pose a

counterintelligence or terrorist threat, or as otherwise provided by law,

shall be referred to the Federal Bureau of Investigation for potential

investigation, and may also be referred to other agencies where

appropriate.''

[[Page 8128]]

(v) Section 3 of Executive Order 13467 is revised

to read as follows:

``Sec. 3. General Provisions. (a) Executive Order

13381 of June 27, 2005, as amended, and Executive Order

10450 of April 27, 1953, as amended, are revoked. By

revoking Executive Order 10450 of April 27, 1953, as

amended, there is no intent to alter the requirement

for an investigation for national security purposes or

the ``clearly consistent with the interest of national

security'' standard prescribed by that Executive Order

for making the determinations referenced in section

2.7(b)(ii)

pril 27, 1953, as

amended, there is no intent to alter the requirement

for an investigation for national security purposes or

the ``clearly consistent with the interest of national

security'' standard prescribed by that Executive Order

for making the determinations referenced in section

2.7(b)(ii). Further, suitability, fitness,

credentialing, and national security eligibility

regulations, standards and guidance issued by, or

interagency agreements entered into by, the Council,

the Executive Agents, or any agency pursuant to

Executive Order 10450 of April 27, 1953, as amended,

shall remain valid until superseded. Nothing in this

order shall:

``(i) supersede, impede, or otherwise affect:

``(A) Executive Order 10577 of November 23, 1954, as amended;

``(B) Executive Order 12333 of December 4, 1981, as amended;

``(C) Executive Order 12829 of January 6, 1993, as amended; or

``(D) Executive Order 13526 of December 29, 2009; or

``(ii) diminish or otherwise affect the denial and revocation procedures

provided to individuals covered by Executive Order 10865 of February 20,

1960, as amended; or

``(iii) be applied in such a way as to affect any administrative

proceeding pending on the date of this order.

``(b) Executive Order 12968 of August 2, 1995, is amended:

``(i) by inserting: `Sec. 3.5. Continuous Evaluation. An individual who

has been determined to be eligible for or who currently has access to

classified information shall be subject to continuous evaluation as further

defined by and under standards (including, but not limited to, the

frequency of such evaluation) as determined by the Director of National

Intelligence.'; and

95, is amended:

``(i) by inserting: `Sec. 3.5. Continuous Evaluation. An individual who

has been determined to be eligible for or who currently has access to

classified information shall be subject to continuous evaluation as further

defined by and under standards (including, but not limited to, the

frequency of such evaluation) as determined by the Director of National

Intelligence.'; and

``(ii) by striking `the Security Policy Board shall make recommendations

to the President through the Assistant to the President for National

Security Affairs' in section 6.3(a) and inserting in lieu thereof `the

Director of National Intelligence shall serve as the final authority';

``(iii) by striking `Security Policy Board' and inserting in lieu thereof

`Security Executive Agent' in each instance;

``(iv) by striking `the Board' in section 1.1(j) and inserting in lieu

thereof `the Security Executive Agent'; and

``(v) by inserting `or appropriate automated procedures' in section

3.1(b) after `by appropriately trained adjudicative personnel'.

``(c) Provisions of Executive Order 12968 of August 2, 1995, as amended,

that apply to eligibility for access to classified information shall apply

to eligibility to hold any sensitive position regardless of whether that

sensitive position requires access to classified information, subject to

the Security Executive Agent issuing implementing or clarifying guidance

regarding requirements for sensitive positions. Nothing in this order shall

supersede, impede, or otherwise affect the remainder of Executive Order

12968 of August 2, 1995, as amended.

``(d) Nothing in this order shall be construed to impair or otherwise

affect the:

``(i) authority granted by law to a department or agency, or the head

thereof; or

``(ii) functions of the Director of the Office of Management and Budget

relating to budgetary, administrative, or legislative proposals.

r otherwise affect the remainder of Executive Order

12968 of August 2, 1995, as amended.

``(d) Nothing in this order shall be construed to impair or otherwise

affect the:

``(i) authority granted by law to a department or agency, or the head

thereof; or

``(ii) functions of the Director of the Office of Management and Budget

relating to budgetary, administrative, or legislative proposals.

``(e) This order shall be implemented consistent with applicable law and

subject to the availability of appropriations.

[[Page 8129]]

``(f) Existing delegations of authority made pursuant to Executive Order

13381 of June 27, 2005, as amended, to any agency relating to granting

eligibility for access to classified information shall remain in effect,

subject to the exercise of authorities pursuant to this order to revise or

revoke such delegation.

``(g) Existing delegations of authority made by the Office of Personnel

Management to any agency relating to suitability or fitness shall remain in

effect, subject to the exercise of authorities to revise or revoke such

delegations.

``(h) If any provision of this order or the application of such provision

is held to be invalid, the remainder of this order shall not be affected.

``(i) This order is not intended to, and does not, create any right or

benefit, substantive or procedural, enforceable at law or in equity by any

party against the United States, its departments, agencies, or entities,

its officers, employees, or agents, or any other person.''

Sec. 4. General Provisions. (a) This order shall be

implemented consistent with applicable law and subject

to the availability of appropriations.

(b) If any provision of this order or the

application of such provision is held to be invalid,

the remainder of this order shall not be affected.

Sec. 4. General Provisions. (a) This order shall be

implemented consistent with applicable law and subject

to the availability of appropriations.

(b) If any provision of this order or the

application of such provision is held to be invalid,

the remainder of this order shall not be affected.

(c) This order is not intended to, and does not,

create any right or benefit, substantive or procedural,

enforceable at law or in equity by any party against

the United States, its departments, agencies, or

entities, its officers, employees, or agents, or any

other person.

(Presidential Sig.)

THE WHITE HOUSE,

January 17, 2017.

[FR Doc. 2017-01623

Filed 1-19-17; 11:15 am]

Billing code 3295-F7-P