TEXT

The national interest requires that certain information be
maintained in confidence through a system of classification in
order to protect our citizens, our democratic institutions, and
our participation within the community of nations.  The
unauthorized disclosure of information classified in the national
interest can cause irreparable damage to the national security
and loss of human life.

Security policies designed to protect classified information must
ensure consistent, cost effective, and efficient protection of
our Nation's classified information, while providing fair and
equitable treatment to those Americans upon whom we reply to
guard our national security.

This order establishes a uniform Federal personnel security
program for employees who will be considered for initial or
continued access to classified information.

NOW, THEREFORE, by the authority vested in me as President by the
Constitution and the laws of the United States of America, it is
hereby ordered as follows:

PART 1-DEFINITIONS, ACCESS TO CLASSIFIED INFORMATION, FINANCIAL
DISCLOSURE, AND OTHER ITEMS   

Section 1.1. Definitions. For the purposes of this order: (a)
"Agency" means any "Executive agency," as defined in 5 U.S.C.
105, the "military departments," as defined in 5 U.S.C. 102, and
any other entity within the executive branch that comes into the
possession of classified information, including the Defense
Intelligence Agency, National Security Agency, and the National
Reconnaissance Office.
     (b) "Applicant" means a person other than an employee who
has received an authorized conditional offer of employment for a
position that requires access to classified information.
     (c) "Authorized investigative agency" means an agency
authorized by law or regulation to conduct a counterintelligence
investigation or investigation of persons who are proposed for
access to classified information to ascertain whether such
persons satisfy the criteria for obtaining and retaining access
to such information.
     (d)  "Classified information" means information that has
been determined pursuant to Executive Order No. 12958, or any
successor order, Executive Order No. 12951, or any successor
order, or the Atomic Energy Act of 1954 (42 U.S.C. 2011), to
require protection against unauthorized disclosure.
     (e)  "Employee" means a person, other than the President and
Vice President, employed by, detailed or assigned to, an agency,
including members of the Armed Forces; an expert or consultant to
an agency; an industrial or commercial contractor, licensee,
certificate holder, or grantee of an agency, including all
subcontractors; a personal services contractor; or any other
category of person who acts for or on behalf of an agency as
determined by the appropriate agency head.
     (f) "Foreign power" and "agent of a foreign power" have the
meaning provided in 50 U.S.C. 1801.
     (g) "Need for access" means a determination that an employee
requires access to a particular level of classified information
in order to perform or assist in a lawful and authorized
governmental function.
     (h) "Need-to-know" means a determination made by an
authorized holder of classified information that a prospective
recipient requires access to specific classified information in
order to perform or assist in a lawful and authorized
governmental function.
     (i) "Overseas Security Policy Board" means the Board
established by the President to consider, develop, coordinate and
promote policies, standards and agreements on overseas security
operations, programs and projects that affect all United States
Government agencies under the authority of a Chief of Mission.
     (j) "Security Policy Board" means the Board established by
the President to consider, coordinate, and recommend policy
directives for U.S. security policies, procedures, and practices.
     (k) "Special access program" has the meaning provided in
section 4.1 of Executive Order No. 12958, or any successor order.

Sec. 1.2. Access to Classified Information.  (a) No employee
shall be granted access to classified information unless that
employee has been determined to be eligible in accordance with
this order and to possess a need-to-know.
     (b) Agency heads shall be responsible for establishing and
maintaining an effective program to ensure that access to
classified information by each employee is clearly consistent
with the interests of the national security.
     (c) Employee shall not be granted access to classified
information unless they:

     (1) have been determined to be eligible for access under
section 3.1 of this order by agency heads or designated officials
based upon a favorable adjudication of an appropriate
investigation of the employee's background;
     (2) have a demonstrated need-to-know; and 
     (3) have signed an approved nondisclosure agreement.
     (d) All employee shall be subject to investigation by an
appropriate government authority prior to being granted access to
classified information and at any time during the period of
access to ascertain whether they continue to meet the
requirements for access.
     (e)(1) All employees granted access to classified
information shall be required as a condition of such access to
provide to the employing agency written consent permitting access
by an authorized investigative agency, for such time as access to
classified information is maintained and for a period of  3 years
thereafter, to:
     (A) relevant financial records that are maintained by a
financial institution as defined in 31 U.S.C. 5312(a) or by a
holding company as defined in section 1101(6) of the Right to
Financial Privacy Act of 1978 (12 U.S.C. 3401);
     (B) consumer reports pertaining to the employee under the
Fair Credit Reporting Act (15 U.S.C. 1681a); and
     (C) records maintained by commercial entities within the
United States pertaining to any travel by the employee outside
the United States.
     (2) Information may be requested pursuant to employee
consent under this section where:
     (A) there are reasonable grounds to believe, based on
credible information, that the employee or former employee is, or
may be, disclosing classified information in an unauthorized
manner to a foreign power or agent of a foreign power;
     (B) information the employing agency deems credible
indicates the employee or former employee has incurred excessive
indebtedness or has acquired a level of affluence that cannot be
explained by other information; or
     (C) circumstances indicate the employee or former employee
had the capability and opportunity to disclose information that
is known to have been lost or compromised to a foreign power or
an agent of a foreign power.
     (3) Nothing in this section shall be construed to affect the
authority of an investigating agency to obtain information
pursuant to the Right to Financial Privacy Act, the Fair Credit
Reporting Act, or any other applicable law.

Sec. 1.3. Financial Disclosure. (a) Not later than 180 days after
the effective date of this order, the head of each agency that
originates, handles, transmits, or possesses classified
information shall designate each employee, by position or
category where possible, who has a regular need for access to
classified information that, in the discretion of the agency
head, would reveal:
     (1) the identity of covert agents as defined in the
Intelligence Identities Protection Act of 1982 (50 U.S.C. 421);
     (2) technical or specialized national intelligence
collection and processing systems that, if disclosed in an
unauthorized manner, would substantially negate or impair the
effectiveness of the system;
     (3) the details of:
     (A) the nature, contents, algorithm, preparation, or use of
any code, cipher, or cryptographic system or;
     (B) the design, construction, functioning, maintenance, or
repair of any cryptographic equipment; but not including
information concerning the use of cryptographic equipment and
services;
     (4) particularly sensitive special access programs, the
disclosure of which would substantially negate or impair the
effectiveness of the information or activity involved; or
     (5) especially sensitive nuclear weapons design information
(but only for those positions that have been certified as being
of a high degree of importance or sensitivity, as described in
section 145(f) of the Atomic Energy Act of 1954, as amended).
     (b) An employee may not be granted access, or hold a
position designated as requiring access, to information described
in subsection (a) unless, as a condition of access to such
information, the employee:
     (1) files with the head of the agency a financial disclosure
report, including information with respect to the spouse and
dependent children of the employee, as part of all background
investigations or reinvestigations;
     (2) is subject to annual financial disclosure requirements,
if selected by the agency head; and
     (3) files relevant information concerning foreign travel, as
determined by the Security Policy Board.
     (c) Not later than 180 days after the effective date of this
order, the Security Policy Board shall develop procedures for the
implementation of this section, including a standard financial
disclosure form for use by employees under subsection (b) of this
section, and agency heads shall identify certain employees, by
position or category, who are subject to annual financial
disclosure.

Sec. 1.4. Use of Automated Financial Record Data Bases.  As part
of all investigations and reinvestigations described in section
1.2(d) of this order, agencies may request the Department of the
Treasury, under terms and conditions prescribed by the Secretary
of the Treasury, to search automated data bases consisting of
reports of currency transactions by financial institutions,
international transportation of currency or monetary instruments,
foreign bank and financial accounts transactions under $10,000
that are reported as possible money laundering violations, and
records of foreign travel.

Sec. 1.5. Employee Education and Assistance.  The head of each
agency that grants access classified information shall establish
a program for employee with access to classified information to: 
(a) educate employees about individual responsibilities under
this order; and
     (b) inform employees about guidance and assistance available
concerning issues that may affect their eligibility for access to
classified information, including sources of assistance for
employees who have questions or concerns about financial matters,
mental health, or substance abuse.

PART 2-ACCESS ELIGIBILITY POLICY AND PROCEDURE

Sec. 2.1. Eligibility Determinations.  (a) Determinations of
eligibility for access to classified information shall be based
on criteria established under this order.  Such determinations
are separate from suitability determinations with respect to the
hiring or retention of persons for employment by the government
or any other personnel actions.
     (b) The number of employees that each agency determines are
eligible for access to classified information shall be kept to
the minimum required for the conduct of agency functions.
     (1) Eligibility for access to classified information shall
not be requested or granted solely to permit entry to, or ease of
movement within, controlled areas when the employee has no need
for access and access to classified information may reasonably be
prevented.  Where circumstances indicate employees may be
inadvertently exposed to classified information in the course of
their duties, agencies are authorized to grant or deny, in their
discretion, facility access approvals to such employees based on
an appropriate level of investigation as determined by each
agency.
     (2) Except in agencies where eligibility for access is a
mandatory condition of employment, eligibility for access to
classified information shall only be requested or granted based
on a demonstrated, foreseeable need for access.  Requesting or
approving eligibility in excess of actual requirements is
prohibited. 
     (3) Eligibility for access to classified information may be
granted where there is a temporary need for access, such as one-
time participation in a classified project, provided the
investigative standards established under this order have been
satisfied.  In such cases, a fixed date or event for expiration
shall be identified and access to classified information shall be
limited to information related to the particular project or
assignment.
     (4) Access to classified information shall be terminated
when an employee no longer has a need for access.

Sec. 2.2. Level of Access Approval. (a) The level at which an
access approval is granted for an employee shall be limited, and
relate directly, to the level of classified information for which
there is a need for access.  Eligibility for access to a higher
level of classified information includes eligibility for access
to information classified at a lower level.
     (b) Access to classified information relating to a special
access program shall be granted in accordance with procedures
established by the head of the agency that created the program
or, for programs pertaining to intelligence activities (including
special activities but not including military operational,
strategic, and tactical programs) or intelligence sources and
methods, by the Director of Central Intelligence.  To the extent
possible and consistent with the national security interests of
the United States, such procedures shall be consistent with the
standards and procedures established by and under this order.

Sec. 2.3 Temporary Access to Higher Levels.  (a) An employee who
has been determined to be eligible for access to classified
information based on favorable adjudication of a completed
investigation may be granted temporary access to a higher level
where security personnel authorized by the agency head to make
access eligibility determinations find that such access:
     (1) is necessary to meet operational or contractual
exigencies not expected to be of a recurring nature;
     (2) will not exceed 180 days; and
     (3) is limited to specific, identifiable information that is
made the subject of a written access record.
     (b) Where the access granted under subsection (a) of this
section involves another agency's classified information, that
agency must concur before access to its information is granted.

Sec. 2.4. Reciprocal Acceptance of Access Eligibility
Determinations.  (a) Except when an agency has substantial
information indicating that an employee may not satisfy the
standards in section 3.1 of this order, background investigations
and eligibility determinations conducted under this order shall
be mutually and reciprocally accepted by all agencies.
     (b) Except where there is substantial information indicating
that the employee may not satisfy the standards in section 3.1 of
this order, an employee with existing access to a special access
program shall not be denied eligibility for access to another
special access program at the same sensitivity level as
determined personally by the agency head or deputy agency head,
or have an existing access to the information involved.
     (c) This section shall not preclude agency heads from
establishing additional, but not duplicative, investigative or
adjudicative procedures for a special access program or for
candidates for detail or assignment to their agencies, where such
procedures are required in exceptional circumstances to protect
the national security.
     (d) Where temporary eligibility for access is granted under
section 2.3 or 3.3 of this order or where the determination of
eligibility for access is conditional, the fact of such temporary
or conditional access shall be conveyed to any other agency that
considers affording the employee access to its information.

Sec. 2.5. Specific Access Requirement. (a) Employees who have
been determined to be eligible for access to classified
information shall be given access to classified information only
where there is a need-to-know that information.
     (b) It is the responsibility of employees who are authorized
holders of classified information to verify that a prospective
recipient's eligibility for access has been granted by an
authorized agency official and to ensure that a need-to-know
exists prior to allowing such access, and to challenge requests
for access that do not appear well-founded.

Sec. 2.6. Access by Non-United States Citizens. (a) Where there
are compelling reasons in furtherance of an agency mission,
immigrant alien and foreign national employees who possess a
special expertise may, in the discretion of the agency, be
granted limited access to classified information only for
specific programs, projects, contracts, licenses, certificates,
or grants for which there is a need for access.  Such individuals
shall not be eligible for access to any greater level of
classified information than the United States Government has
determined may be releasable to the country of which the subject
is currently a citizen, and such limited access may be approved
only if the prior 10 years of the subject's life can be
appropriately investigated.  If there are any doubts concerning
granting access, additional lawful investigative procedures shall
be fully pursued.
     (b) Exceptions to these requirements may be permitted only
by the agency head or the senior agency official designated under
section 6.1 of this order to further substantial national
security interests.

PART 3-ACCESS ELIGIBILITY STANDARDS

Sec. 3.1. Standards. (a) No employee shall be deemed to be
eligible for access to classified information merely by reason of
Federal service or contracting, licensee, certificate holder, or
grantee status, or as a matter of right or privilege, or as a
result of any particular title, rank, position, or affiliation.
     (b) Except as provided in sections 2.6 and 3.3 of this
order, eligibility for access to classified information shall be
granted only to employees who are United States citizens for whom
an appropriate investigation has been completed and whose
personal and professional history affirmatively indicates loyalty
to the United States, strength of character, trustworthiness,
honesty, reliability, discretion, and sound judgment, as well as
freedom from conflicting allegiances and potential for coercion,
and willingness and ability to abide by regulations governing the
use, handling, and protection of classified information.  A
determination of eligibility for access to such information is a
discretionary security decision based on judgments by
appropriately trained adjudicative personnel.  Eligibility shall
be granted only where facts and circumstances indicate access to
classified information is clearly consistent with the national
security interests of the United States, and any doubt shall be
resolved in favor of the national security.
     (c) The United States Government does not discriminate on
the basis of race, color, religion, sex, national origin,
disability, or sexual orientation in granting access to
classified information.
     (d) In determining eligibility for access under this order,
agencies may investigate and consider any matter that relates to
the determination of whether access is clearly consistent with
the interests of national security.  No inference concerning the
standards in this section may be raised solely on the basis of
the sexual orientation of the employee.
     (e) No negative inference concerning the standards in this
section may be raised solely on the basis of mental health
counseling.  Such counseling can be a positive factor in
eligibility determinations.  However, mental health counseling,
where relevant to the adjudication of access to classified
information, may justify further inquiry to determine whether the
standards of subsection (b) of this section are satisfied, and
mental health may be considered where it directly relates to
those standards.
     (f) Not later than 180 days after the effective date of this
order, the Security Policy Board shall develop a common set of
adjudicative guidelines for determining eligibility for access to
classified information, including access to special access
programs.

Sec. 3.2. Basis for Eligibility Approval. (a) Eligibility
determinations for access to classified information shall be
based on information concerning the applicant or employee that is
acquired through the investigation conducted pursuant to this
order or otherwise available to security officials and shall be
made part of the applicant's or employee's security record. 
Applicants or employees shall be required to provide relevant
information pertaining to their background and character for use
in investigating and adjudicating their eligibility for access.
     (b) Not later than 180 days after the effective date of this
order, the Security Policy Board shall develop a common set of
investigative standards for background investigations for access
to classified information.  These standards may vary for the
various levels of access.
     (c) Nothing in this order shall prohibit an agency from
utilizing any lawful investigative procedure in addition to the
investigative requirements set forth in this order and its
implementing regulations to resolve issues that may arise during
the course of a background investigation or reinvestigation.

Sec. 3.3. Special Circumstances. (a) In exceptional circumstances
where official functions must be performed prior to the
completion of the investigative and adjudication process,
temporary eligibility for access to classified information may be
granted to an employee while the initial investigation is
underway.  When such eligibility is granted, the initial
investigation shall be expedited.
     (1) Temporary eligibility for access under this section
shall include a justification, and the employee must be notified
in writing that further access is expressly conditioned on the
favorable completion of the investigation and issuance of an
access eligibility approval.  Access will be immediately
terminated, along with any assignment requiring an access
eligibility approval, if such approval is not granted.
     (2) Temporary eligibility for access may be granted only by
security personnel authorized by the agency head to make access
eligibility determinations and shall be based on minimum
investigative standards developed by the Security Policy Board
not later than 180 days after the effective date of this order.
     (3) Temporary eligibility for access may be granted only to
particular, identified categories of classified information to
perform the lawful and authorized functions that are the basis
for the granting of temporary access.
     (b) Nothing in subsection (a) shall be construed as altering
the authority of an agency head to waive requirements for
granting access to classified information pursuant to statutory
authority.
     (c) Where access has been terminated under section 2.1(b)(4)
of this order and a new need for access arises, access
eligibility up to the same level shall be reapproved without
further investigation as to employees who were determined to be
eligible based on a favorable adjudication of an investigation
completed within the prior 5 years, provided they have remained
employed by the same employer during the period in question, the
employee certifies in writing that there has been no change in
the relevant information provided by the employee for the last
background investigation, and there is no information that would
tend to indicate the employee may no longer satisfy the standards
established by this order for access to classified information.
     (d) Access eligibility shall be reapproved for individuals
who were determined to be eligible based on a favorable
adjudication of an investigation completed within the prior 5
years and who have been retired or otherwise separated from
United States Government employment for not more than 2 years;
provided there is no indication the individual the individual may
no longer satisfy the standards of this order, certifies in
writing that there has been no change in the relevant information
provided by the individual for the last background investigation,
and an appropriate record check reveals no unfavorable
information.

Sec. 3.4. Reinvestigation Requirements. (a) Because circumstances
and characteristics may change dramatically over time and thereby
alter the eligibility of employees for continued access to
classified information, reinvestigations shall be conducted with
the same priority and care as initial investigations.
     (b) Employees who are eligible for access to classified
information shall be the subject of periodic reinvestigations and
may also be reinvestigated if, at any time, there is reason to
believe that they may no longer meet the standards for access
established in this order.
     (c) Not later than 180 days after the effective date of this
order, the Security Policy Board shall develop a common set of
reinvestigative standards, including the frequency of
reinvestigations.

PART 4-INVESTIGATIONS FOR FOREIGN GOVERNMENTS

Sec. 4. Authority. Agencies that conduct background
investigations, including the Federal Bureau of Investigation and
the Department of State, are authorized to conduct personnel
security investigations in the United States when requested by a
foreign government as part of its own personnel security program
and with the consent of the individual.

PART 5-REVIEW OF ACCESS DETERMINATIONS

Sec. 5.1. Determinations of Need for Access.  A determination
under section 2.1(b)(4) of this order that an employee does not
have, or no longer has, a need for access is a discretionary
determination and shall be conclusive.

Sec. 5.2. Review Proceedings for Denials or Revocations of
Eligibility for Access.  (a) Applicants and employees who are
determined to not meet the standards for access to classified
information established in section 3.1 of this order shall be:
     (1) provided as comprehensive and detailed a written
explanation of the basis for that conclusion as the national
security interests of the United States and other applicable law
permit;
     (2) provided within 30 days, upon request and to the extent
the documents would be provided if requested under the Freedom of
Information Act (5 U.S.C. 552) or the Privacy Act (3 U.S.C.
552a), as applicable, any documents, records, and reports upon
which a denial or revocation is based;
     (3) informed of their right to be represented by counsel or
other representative at their own expense; to request any
documents, records, and reports as described in section 5.2(a)(2)
upon which a denial or revocation is based; and to request the
entire investigative file, as permitted by the national security
and other applicable law, which, if requested, shall be promptly
provided prior to the time set for a written reply;
     (4) provided a reasonable opportunity to reply in writing
to, and to request a review of, the determination:
     (5) provided written notice of and reasons for the results
of the review, the identity of the deciding authority, and
written notice of the right to appeal;
     (6) provided an opportunity to appeal in writing to a high
level panel, appointed by the agency head, which shall be
comprised of at least three members, two of whom shall be
selected from outside the security field.  Decisions of the panel
shall be in writing, and final except as provided in subsection
(b) of this section; and
     (7) provided an opportunity to appear personally and to
present relevant documents, materials , and information at some
point in the process before an adjudicative or other authority,
other than the investigating entity, as determined by the agency
head.  A written summary or recording of such appearance shall be
made part of the applicant's or employee's security record,
unless such appearance occurs in the presence of the appeals
panel described in subsection (a)(6) of this section.
     (b) Nothing in this section shall prohibit an agency head
from personally exercising the appeal authority in subsection 
(a)(6) of this section based upon recommendations from an appeals
panel.  In such case, the decision of the agency head shall be
final.
     (c) Agency heads shall promulgate regulations to implement
this section and, at their sole discretion and as resources and
national security considerations permit, may provide additional
review proceedings beyond those required by subsection (a) of
this section.  This section does not require additional
proceedings, however, and creates no procedural or substantive
rights.
     (d) When the head of an agency or principal deputy
personally certifies that a procedure set forth in this section
cannot be made available in a particular case without damaging
the national security interests of the United States by revealing
classified information, the particular procedure shall not be
made available.  This certification shall be conclusive.
     (e) This section shall not be deemed to limit or affect the
responsibility and power of an agency head pursuant to any law or
other Executive order to deny or terminate access to classified
information in the interests of national security.  The power and
responsibility to deny or terminate access to classified
information pursuant to any law or other Executive order may be
exercised only where the agency head determines that the
procedures prescribed in subsection (a) of this section cannot be
invoked in a manner that is consistent with national security. 
This determination shall be conclusive.
     (f)(1) This section shall not be deemed to limit or affect
the responsibility and power of an agency head to make
determinations of suitability for employment.
     (2) Nothing in this section shall require that an agency
provide the procedures prescribed in subsection (a) of this
section to an applicant where a conditional offer of employment
is withdrawn for reasons of suitability or any other reason other
than denial of eligibility for access to classified information.
     (3) A suitability determination shall not be used for the
purpose of denying an applicant or employee the review
proceedings of this section where there has been a denial or
revocation of eligibility for access to classified information.

PART 6-IMPLEMENTATION

Sec. 6.1. Agency Implementing Responsibilities.  Heads of
agencies that grant employees access to classified information
shall:  (a) designate a senior agency official to direct and
administer the agency's personnel security program established by
this order.  All such programs shall include active oversight and
continuing security education and awareness programs to ensure
effective implementation of this order;
     (b) cooperate, under the guidance of the Security Policy
Board, with other agencies to achieve practical, consistent, and
effective adjudicative training and guidelines; and
     (c) conduct periodic evaluations of the agency's
implementation and administration of this order, including the
implementation of section 1.3(a) of this order.  Copies of each
report shall be provided to the Security Policy Board,

Sec 6.2. Employee Responsibilities. (a) Employees who are granted
eligibility for access to classified information shall:
     (1) protect classified information in their custody from
unauthorized disclosure;
     (2) report all contacts with persons, including foreign
nationals, who seek in any way to obtain unauthorized access to
classified information;
     (3) report all violations of security regulations to the
appropriate security officials; and
     (4) comply with all other security requirements set forth in
this order and its implementing regulations.
     (b) Employees are encouraged and expected to report any
information that raises doubts as to whether another employee's
continued eligibility for access to classified informati