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investigative agency, as determined by the Secretary of Defense, unless such investigation is required by that chapter to be conducted by the Federal Bureau of Investigation.

"(d) The Secretary of Defense shall promulgate such regulations as he shall determine to be necessary to carry into effect the provisions of this section. To the greatest practicable extent, such regulations shall be uniform with respect to all military departments and all such armed forces."

(b) The analysis of such chapter is amended by adding at the end thereof the following:

"2315. Industrial security program."

ATOMIC ENERGY ACT AMENDMENT

SEC. 101. Section 143 of the Atomic Energy Act of 1954 (42 U.S.C. 2163) is amended by adding at the end thereof the following: "Whenever any contractor representative has received security clearance under the industrial personnel security program of any other executive agency, in conformity with the requirements of chapter 5 of the Federal Security Act, the Commission may grant to the holder of such clearance, without further investigation, access to restricted data if the Commission determines that (a) the standard of investigation required for the issuance of such clearance by such other executive agency is comparable to that required by the Commission for the granting of access to such restricted data, (b) the clearance granted by such other executive agency to that individual is currently in effect, and (c) no information possessed by the Commission indicates the need for further investigation of that individual before granting such access. Terms used in the preceding sentence which are defined by section 2 of the Federal Security Act shall in that sentence have the meanings given to them by such section."

NATIONAL LABOR RELATIONS ACT AMENDMENT

SEC. 102. Section 9 (h) of the National Labor Relations Act, as amended (29 U.S.C. 159 (h)), is amended by adding at the end thereof the following: "The Board is authorized to determine, after notice and hearing, whether any affidavit filed under this subsection by or on behalf of any officer of any labor organization contains any false representation of fact. If the Board determines that any such affidavit does contain any such false representation executed under oath by any officer of any labor organization, the labor organization of which he is an officer shall have no right, while such individual continues to hold any office therein, to

"(1) act as representative of any employees for the purpose of section 7 of this Act;

"(2) serve as an exclusive representative of employees of any bargaining unit under section 9 of this Act;

"(3) file any petition under section 9 (e) of this Act;

"(4) make, or obtain any hearing upon, any charge under section 10 of this Act; or

"(5) exercise any other right or privilege, or receive any other benefit, substantive or procedural, provided by this Act for labor organizations."

ISSUANCE OF PROCESS BY INTERNATIONAL ORGANIZATIONS EMPLOYEES LOYALTY BOARD

SEC. 103. (a) Under such regulations as the Civil Service Commission shall prescribe, the presiding member of the International Organizations Employees Loyalty Board established within the Commission by Executive Order Numbered 10422 of January 9, 1953, as now or hereafter amended, and the presiding member of any panel thereof, shall have the power, in the conduct of any hearing before such board or panel, to (1) administer oaths for the purpose of taking evidence in that hearing, (2) issue process to compel witnesses to appear and testify and to compel the production of pertinent documentary and other evidence, and (3) to appoint any person to take any deposition upon oral examination or any written interrogatories. Any process so issued may run to any place within any judicial district of the United States. Any person so appointed to take any deposition or interrogatories shall have the power to administer oaths incident to the taking of such evidence.

(b) The provisions of section 1821 of title 28, United States Code shall apply to witnesses summoned to appear at any such hearing. The per diem and mileage allowances of witnesses so summoned under authority conferred by this section shall be paid from funds appropriated to the Civil Service Commission.

(e) Any person who willfully neglects or refuses to appear, or refuses to qualify as a witness or to testify, or to produce any evidence in obedience to any subpena duly issued under authority of this section shall be fined not more than $500, or imprisoned for not more than six months, or both. Upon the certification, by the presiding member of such board or panel, of the facts concerning any such willful disobedience by any person to the United States attorney for any judicial district in which such person resides or is found, such attorney shall proceed by information for the prosecution of such person for such offense.

VETERANS' PREFERENCE ACT AMENDMENTS

SEC. 104. (a) Section 14 of the Veterans' Preference Act of 1944 (5 U.S.C. 863) is amended to read as follows:

"SEC. 14. No employee of the government of the District of Columbia shall be discharged, suspended for more than thirty days, furloughed without pay, reduced in rank or compensation, or debarred for future appointment except for such cause as will promote the efficiency of the service and for reasons given in writing, and the person whose discharge, suspension for more than thirty days, furlough without pay, or reduction in rank or compensation is sought shall have at least thirty days' advance written notice (except where there is reasonable cause to believe the employee to be guilty of a crime for which a sentence of imprisonment can be imposed), stating any and all reasons, specifically and in detail, for any such proposed action; such employee shall be allowed a reasonable time for answering the same personally and in writing, and for furnishing affidavits in support of such answer, and shall have the right to appeal to the Civil Service Commission from an adverse decision of the administrative officer so acting, such appeal to be made in writing within a reasonable length of time after the date of receipt of notice of such adverse decision: Provided, That such employee shall have the right to make a personal appearance, and an appearance through a designated representative, in accordance with such resonable rules and regulations as may be issued by the Civil Service Commission; after investigation and consideration of the evidence submitted, the Civil Service Commission shall submit its findings and recommendations to the proper administrative officer and shall send copies of same to the appellant or to his designated representative: Provided, further, That the Civil Service Commission may declare any such employee who may have been dismissed or furloughed without pay to be eligible for the provisions of section 15 hereof."

(b) Section 15 of that Act is amended by adding at the end thereof the following new sentence: "This section shall not apply to any preference eligible who has been furloughed or separated under chapter 4 of the Federal Security Act because of the existence of reasonable doubt as to his loyalty to the Government of the United States.”

REPEAL

SEC. 105. The Act entitled "An Act to protect the national security of the United States by permitting the summary suspension of employment of civilian officers and employees of various departments and agencies of the Government and for other purposes", approved August 26, 1950 (64 Stat. 476; 5 U.S.C. 22–1, 22-2, and 22-3), is repealed.

EFFECTIVE DATE

SEC. 106. Chapter I of this Act shall take effect on the date of its enactment. All other provisions of this Act shall take effect on the first day of the sixth month beginning after the date of its enactment.

[S. 2314, 86th Cong., 1st sess.]

A BILL To provide for a Federal industrial security program, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Federal Industrial Security Act".

SEC. 2. As used in this Act

DEFINITIONS

(1) The term "security program” means any program established by or pursuant to law or Executive order, and administered or supervised by any execu

46949 0-60—pt. 3——6

tive agency, to prevent untrustworthy individuals, in the interest of the national security, from gaining access to classified information or to any security facility. (2) The term "security officer" means any officer or employee of any executive agency who is charged with the duty of carrying into effect in whole or in part the requirements of any loyalty or security program.

(3) The term "security clearance" means authorization duly given to any individual by the appropriate executive agency for access to classified information or to a security facility.

(4) The term "security facility" means the whole or any part of any(a) installation or facility of any executive agency;

(b) industrial plant or facility;

(c) vessel, port, or port facility;

(d) aircraft, airport, or airport facility; or

(e) other area or facility,

which has been duly designated by the President or by any officer or employee of any executive agency, under any law or Executive order, in the interest of the national security as a facility to which access may be granted only to those individuals who have received security clearance from the appropriate executive agency.

(5) The term "classified information" means any information or material which has been duly classified in the interest of the national security, by any officer or employee of any executive agency acting under authority conferred by law or Executive order, as "top secret" or "secret" or, in the case of the Atomic Energy Commission, as "Restricted Data."

(6) The term "Government contractor" means any individual, partnership, corporation, association, institution, or other legal entity obligated to furnish any goods or services to or for the use of any executive agency under the terms of any contract or subcontract containing any requirement for the safeguarding of classified information.

(7) The term "contractor representative" means any individual who is an officer, director, partner, member, employee, agent, or other representative of any Government contractor.

(8) The term "national agency check," when used in relation to the investigation of any individual, means an investigation of that individual made upon the basis of written information supplied by him in response to official inquiry, and by reference to files of the Federal Bureau of Investigation and the Civil Service Commission, appropriate intelligence files of the Armed Forces, appropriate files of any other investigative or intelligence agency in the executive branch, and appropriate files of any committee or subcommittee of the Congress. (9) The term "full field investigation," when used in relation to the investigation of any individual, means an investigation of that individual made by reference to all sources required for a national agency check, and in addition thereto

(a) law enforcement files of the municipality, county, and State within which that individual resides or is employed;

(b) records of schools and colleges attended by him;

(c) former employers of that individual;

(d) reference given by him; and

(e) any other available source of information.

(10) The term "executive agency" means any department, agency, bureau, commission, office, or armed force in the executive branch of the Government, and any corporation whose share capital is wholly owned by the United States or any department or agency thereof.

(11) The term "head of the agency" or "agency head," when used in relation to any executive agency, means the head of such agency, or in the event of his incapacity or other absence, the officer of that agency who is authorized to act in his stead.

AUTHORIZATION FOR INDUSTRIAL SECURITY PROGRAM

SEC. 3. (a) Each executive agency engaged in the procurement of goods or services from Government contractors shall, if such procurement involves access by contractor representatives to classified information or to any security facility, establish and administer, in such manner consistent with the provisions of this Act as the President shall prescribe, a security program to prevent access by untrustworthy individuals to such information or to any such facility.

(b) No contract shall be executed by any executive agency with any Government contractor for the procurement of goods or services involving access by contractor representatives to classified information or to any security facility unless such contractor enters into an appropriate security agreement in writing under which that contractor is obligated

(1) to withhold from any individual access to information and security facilities of any classification unless that individual holds a security clearance for access to information and security facilities of that classification; and

(2) to incorporate within any contract executed with any subcontractor, for the procurement of any goods or services required for the performance of the contract with that agency, such security provisions as may be prescribed in the security agreement executed with such executive agency.

INVESTIGATION OF CONTRACTOR REPRESENTATIVES

SEC. 4. (a) No executive agency shall grant to any contractor representative any security clearance for access to any information or security facility which has been classified as "secret" (or, in the case of the Atomic Energy Commission, Restricted Data) unless a national agency check has been made with respect to that individual by the appropriate investigative organization of such agency. If that check discloses as to that individual any derogatory subversive information requiring further investigation, the matter shall be referred to the Federal Bureau of Investigation, which shall then conduct a full field investigation of that individual. If the national agency check discloses as to that individual any other derogatory information requiring further investigation, such further investigation shall be conducted by the investigative organization of such agency. (b) No executive agency shall grant to any contractor representative any security clearance for access to any information or security facility which has been classified as "top secret" (or, in the case of the Atomic Energy Commission, Restricted Data) unless a full field investigation of that individual has been made by the appropriate investigative organization of that agency. If in the course of that investigation any derogatory subversive information is disclosed as to that individual, such investigation shall be transferred to the Federal Bureau of Investigation, which shall then conduct a full field investigation of that individual.

(c) If any executive agency has no investigative organization, the investigations required by this section to be made by that agency shall be made by the Civil Service Commission.

EVALUATION OF PERSONNEL INVESTIGATIONS

SEC. 5. (a) The head of each executive agency administering an industrial personnel security program shall designate, from personnel of that agency specially qualified for such service, such number of screening officers as may be required for the administration of that program. It shall be the duty of such officers to examine investigative reports made concerning contractor representatives, and to determine whether such reports disclose any substantial information raising doubt as to the eligibility of such individuals for any security clearance.

(b) Whenever a screening officer of any agency determines that an investigative report contains information raising doubt as to the eligibility of any individual to receive any security clearance, such officer shall grant to that individual an opportunity for an interview in which he may offer his explanation of the facts and circumstances upon which that information is based. Whenever such officer determines that such a report contains information raising doubt as to the eligibility of any individual to hold a security clearance previously granted, he shall accord to that individual an opportunity for such an interview unless that officer determines that immediate suspension of such clearance is necessary in the interest of the national security.

(c) If, after the conclusion of any such interview and any further investigation considered by the screening officer to be necessary, the derogatory information concerning that individual has not been explained to the satisfaction of the screening officer, he shall withhold or suspend the security clearance of that Individual, and shall prepare and transmit to him a letter of charges which shall be as specific and detailed as the interests of national security permit, and shall include such pertinent information as names, dates, and places in such

detail as reasonably to permit answer to be made thereto. The letter of charges so transmitted must advise the individual concerned as to his right to a hearing under this Act.

(d) Before issuing any such letter of charges, a screening officer of any executive agency shall obtain the opinion of the appropriate legal officer of that agency on the question whether

(1) the proposed letter of charges is sufficiently specific and detailed; and

(2) all other procedural requirements for the issuance of such letter have been satisfied.

SECURITY HEARINGS AND DETERMINATIONS

SEC. 6. (a) Within the time prescribed by regulations which shall be promul gated by the President, the recipient of any such letter of charges

(1) may file his sworn answer thereto, accompanied by any affidavits or other written statements he may care to submit ; and

(2) upon the filing of such sworn answer, may request a hearing upon those charges in accordance with the provisions of this Act.

(b) Whenever any individual has availed himself of his right to receive a hearing upon a letter of charges issued by any executive agency under this Act

(1) the screening officer shall forward that request, together with the letter of charges transmitted to that individual and all papers filed by him in reply thereto, to the head of the agency for filing and hearing in accordance with the provisions of this Act; and

(2) the head of that agency shall designate, from personnel of that agency, such hearing officer, counsel, and other personnel as may be required for the conduct of such hearing.

(c) Upon the basis of all evidence contained in the record of such hearing, the head of the executive agency concerned shall make his determination on the question whether the individual concerned is eligible to receive or hold a security clearance. If the agency head determines that such individual is not eligible to receive or hold such security clearance, that individual may, within such time as the President shall prescribe by regulations, make written application to the agency head for a review of that determination. Upon receipt of timely application for such review, the agency head shall forward that request, together with all documents and records pertinent thereto, to such officer or agency as the President shall designate for that purpose in accordance with the provisions of this Act.

(d) If, after any such determination, the individual concerned declines, or fails to make timely application for, such review, that determination shall, upon the expiration of the period within which application for review may be made, become final and conclusive, and shall be binding upon the head of every other executive agency.

STANDARD AND CRITERIA FOR SECURITY DETERMINATIONS

SEC. 7. (a) No contractor representative may be granted or hold any security clearance if it is determined in accordance with the provisions of this Act, on the basis of all information, that his possession of such clearance will endanger the common defense and security.

(b) In determining for the purposes of this section whether the possession of any security clearance by any individual will endanger the common defense or security, activities and associations of that individual of one or more of the following categories may be considered

(1) sabotage, espionage, or attempts or preparations therefor, or knowingly associating with spies or saboteurs;

(2) treason or sedition or advocacy thereof;

(3) advocacy of revolution or force or violence to alter the constitutional form of government of the United States;

(4) intentional, unauthorized disclosure to any person of classified information;

(5) performing or attempting to perform his duties, or otherwise acting, so as to serve the interests of another government in preference to the interests of the United States;

(6) membership in, or affiliation or sympathetic association with, any party, group, or association which has been found by the Congress of the

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