10 U.S.C. § 438
Section 438 · Defense industrial security
Amended 1 time on record
(a) Responsibility for Defense Industrial Security.—The Secretary of Defense shall be responsible for the protection of classified information disclosed to contractors of the Department of Defense.
(b) Consistency With Executive Orders and Directives.—The Secretary shall carry out the responsibility assigned under subsection (a) in a manner consistent with Executive Order 12829 (or any successor order to such executive order) and consistent with policies relating to the National Industrial Security Program (or any successor to such program).
(c) Performance of Industrial Security Functions for Other Agencies.—The Secretary may perform industrial security functions for other agencies of the Federal government upon request or upon designation of the Department of Defense as executive agent for the National Industrial Security Program (or any successor to such program).
(d) Regulations and Policy Guidance.—The Secretary shall prescribe, and from time to time revise, such regulations and policy guidance as are necessary to ensure the protection of classified information disclosed to contractors of the Department of Defense.
(e) Dedication of Resources.—The Secretary shall ensure that sufficient resources are provided to staff, train, and support such personnel as are necessary to fully protect classified information disclosed to contractors of the Department of Defense.
(f) Biennial Report.—The Secretary shall report biennially to the congressional defense committees on expenditures and activities of the Department of Defense in carrying out the requirements of this section. The Secretary shall submit the report at or about the same time that the President's budget is submitted pursuant to section 1105(a) of title 31, United States Code, in odd numbered years. The report shall be in an unclassified form (with a classified annex if necessary) and shall cover the activities of the Department of Defense in the preceding two fiscal years, including the following:
(1) The workforce responsible for carrying out the requirements of this section, including the number and experience of such workforce; training in the performance of industrial security functions; performance metrics; and resulting assessment of overall quality.
(2) A description of funds authorized, appropriated, or reprogrammed to carry out the requirements of this section, the budget execution of such funds, and the adequacy of budgets provided for performing such purpose.
(3) Statistics on the number of contractors handling classified information of the Department of Defense, and the percentage of such contractors who are subject to foreign ownership, control, or influence.
(4) Statistics on the number of violations identified, enforcement actions taken, and the percentage of such violations occurring at facilities of contractors subject to foreign ownership, control, or influence.
(5) An assessment of whether major contractors implementing the program have adequate enforcement programs and have trained their employees adequately in the requirements of the program.
(6) Trend data on attempts to compromise classified information disclosed to contractors of the Department of Defense to the extent that such data are available.
Editorial notes U.S. Code · Office of the Law Revision Counsel
References in Text
Executive Order 12829, referred to in subsec. (b), is set out as a note under section 435 of Title 50, War and National Defense.
Codification
Pub. L. 110–417, §845(a)(1), which directed amendment of subchapter I of this chapter by adding this section at the end, was executed by adding this section at the end of subchapter II of this chapter, to reflect the probable intent of Congress.
Submission of First Biennial Report
Pub. L. 110–417, [div. A], title VIII, §845(b), Oct. 14, 2008, 122 Stat. 4542, provided that: “Notwithstanding the deadline in subsection (f) of section 438 of title 10, United States Code, as added by this section, the first biennial report submitted after the date of the enactment of this Act [Oct. 14, 2008] pursuant to such subsection shall be submitted not later than September 1, 2009, and shall address the period from the date of the enactment of this Act to the issuance of such report.”