97-12247. Classification, Downgrading, Declassification and Safeguarding of National Security Information  

  • [Federal Register Volume 62, Number 90 (Friday, May 9, 1997)]
    [Rules and Regulations]
    [Pages 25426-25433]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 97-12247]
    
    
    
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    OFFICE OF MANAGEMENT AND BUDGET
    
    5 CFR Part 1312
    
    RIN 0348-AB34
    
    
    Classification, Downgrading, Declassification and Safeguarding of 
    National Security Information
    
    AGENCY: Office of Management and Budget, Executive Office of the 
    President.
    
    ACTION: Final rule.
    
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    SUMMARY: This final rule amends the regulations that set forth the 
    procedures to be followed by the Office of Management and Budget's 
    (OMB) staff regarding the classification, downgrading, declassification 
    and safeguarding of national security information. In addition, this 
    final rule lists OMB staff who are authorized to originally classify 
    information at the top secret and secret level. These regulations also 
    contain the procedures to be used by OMB when other government agencies 
    and the public request that classified information in OMB files be 
    reviewed for possible declassification and release. These procedures 
    also outline how to appeal a decision not to declassify information.
    
    EFFECTIVE DATE: June 9, 1997.
    
    FOR FURTHER INFORMATION CONTACT: Darrell A. Johnson, Deputy Assistant 
    Director for Administration, Office of Management and Budget, at (202) 
    395-5715.
    
    SUPPLEMENTARY INFORMATION: On September 17, 1996 (61 FR 48855), OMB 
    requested public comment on proposed revisions to its regulations at 5 
    CFR Part 1312 concerning the classification, downgrading, 
    declassification and safeguarding of national security information. 
    This revision is necessary to ensure conformity with Executive Order 
    12958 (60 FR 19825, April 20, 1995) and implementing directives issued 
    by the Information Security Oversight Office. OMB proposed to repeal 
    its existing Part 1312 and replace it with a new Part 1312.
        No public comments were received in response to the September 1996 
    proposed rule. No substantive changes have been made to the proposed 
    rule, which is being adopted.
    
    Regulatory Flexibility Act, Unfunded Mandates Reform Act, and 
    Executive Orders 12866 and 12875
    
        For purposes of the Regulatory Flexibility Act (5 U.S.C. 601 et 
    seq.), the final rule will not have a significant economic effect on a 
    substantial number of small entities; the final rule addresses only the 
    procedures for OMB's classification, downgrading, declassification and 
    safeguarding of national security information. For purposes of the 
    Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4), as well as 
    Executive Orders No. 12866 and 12875, the final rule will not 
    significantly or uniquely affect small governments, and will not result 
    in increased expenditures by State, local, and tribal governments, or 
    by the private sector, of $100 million or more. The final rule is not a 
    ``major rule'' under 5 U.S.C. Chapter 8; the rule will not have any of 
    the effects set forth in 5 U.S.C. 804(2).
    
        Issued in Washington, DC, April 24, 1997.
    Franklin D. Raines
    Director.
        For the reasons set forth in the preamble, OMB amends 5 CFR Chapter 
    III by revising Part 1312 to read as follow:
    
    PART 1312--CLASSIFICATION, DOWNGRADING, DECLASSIFICATION AND 
    SAFEGUARDING OF NATIONAL SECURITY INFORMATION:
    
    Subpart A--Classification and Declassification of National Security 
    Information
    
    Sec.
    1312.1  Purpose and authority.
    1312.2  Responsibilities.
    1312.3  Classification requirements.
    1312.4  Classified designations.
    1312.5  Authority to classify
    1312.6 Duration of classification.
    1312.7  Derivative classification.
    1312.8  Standard identification and markings.
    1312.9  Downgrading and declassification.
    1312.10  Systematic review guidelines.
    1312.11  Challenges to classifications.
    1312.12  Security Program Review Committee.
    
    Subpart B--Control and Accountability of Classified Information
    
    1312.21  Purpose and authority.
    1312.22  Responsibilities.
    1312.23  Access to classified information.
    1312.24  Access by historical researchers and former Presidential 
    appointees.
    1312.25  Storage.
    1312.26  Control of secret and confidential material.
    1312.27  Top secret control.
    1312.28  Transmission of classified material.
    1312.29  Destruction.
    1312.30  Loss or possible compromise.
    1312.31  Security violations.
    
    Subpart C--Mandatory Declassification Review
    
    1312.32  Purpose and authority.
    1312.33  Responsibility.
    1312.34  Information in the custody of OMB.
    1312.35  Information classified by another agency.
    1312.36  Appeal procedure.
    1312.37  Fees.
    
        Authority: Executive Order 12958, April 20, 1995, 3 CFR, 1995 
    Comp., p. 333.
    
    Subpart A--Classification and Declassification of National Security 
    Information
    
    
    Sec. 1312.1  Purpose and authority.
    
        This subpart sets forth the procedures for the classification and 
    declassification of national security information in the possession of 
    the Office of Management and Budget. It is issued under the authority 
    of Executive Order 12958, (60 FR 19825, 3 CFR, 1995 Comp., P.333), as 
    implemented by Information Security Oversight Office Directive No. 1 
    (32 CFR part 2001), and is applicable to all OMB employees.
    
    
    Sec. 1312.2  Responsibilities.
    
        The effectiveness of the classification and declassification 
    program in OMB depends entirely on the amount of attention paid to it 
    by supervisors and their staffs in those offices and divisions that 
    possess or produce classified material. Officials who originate 
    classified information are responsible for proper assignment of a 
    classification to that material and for the decision as to its 
    declassification. Officials who produce documents containing classified 
    information must determine the source of the classification for that 
    information and must ensure that the proper identity of that source is 
    shown on the document. Custodians of classified material are 
    responsible for its safekeeping and for ensuring that such material is 
    adequately marked as to current classification. Custodians are also 
    responsible for the control of and accounting for all classified 
    material within their area of jurisdiction as prescribed in OMB Manual 
    Section 1030.
        (a) EOP Security Officer. In cooperation with the Associate 
    Director (or Assistant Director) for Administration, the EOP Security 
    Officer supervises the administration of this section and develops 
    programs to assist in the compliance with the Order. Specifically, he:
        (1) Promotes the correct understanding of this section by all 
    employees by providing annual security refresher briefings and ensures 
    that new employees attend initial briefings about overall security 
    procedures and policies.
        (2) Issues and keeps current such classification guides and 
    guidelines for review for declassification as are required by the 
    Order.
        (3) Conducts periodic reviews of classified documents produced and
    
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    provides assistance and guidance where necessary.
        (4) Maintains and publishes a current listing of all officials who 
    have been designated in writing to have Top Secret, Secret, and 
    Confidential original classification authority.
        (b) Heads of divisions or offices. The head of each division or 
    major organizational unit is responsible for the administration of this 
    section within his or her area. Appropriate internal guidance should be 
    issued to cover special or unusual conditions within an office.
    
    
    Sec. 1312.3  Classification requirements.
    
        United States citizens must be kept informed about the activities 
    of their Government. However, in the interest of national security, 
    certain official information must be subject to constraints on its 
    dissemination or release. This information is classified in order to 
    provide that protection.
        (a) Information shall be considered for classification if it 
    concerns:
        (1) Military plans, weapons systems, or operations;
        (2) Foreign government information;
        (3) Intelligence activities (including special activities), 
    intelligence sources or methods, or cryptology;
        (4) Foreign relations or foreign activities of the United States, 
    including confidential sources;
        (5) Scientific, technological, or economic matters relating to the 
    national security;
        (6) United States Government programs for safeguarding nuclear 
    materials or facilities; or
        (7) Vulnerabilities or capabilities of systems, installations, 
    projects or plans relating to the national security.
        (b) When information is determined to meet one or more of the 
    criteria in paragraph (a) of this section, it shall be classified by an 
    original classification authority when he/she determines that its 
    unauthorized disclosure reasonably could be expected to cause at least 
    identifiable damage to the national security.
        (c) Unauthorized disclosure of foreign government information, 
    including the identity of a confidential foreign source of intelligence 
    sources or methods, is presumed to cause damage to the national 
    security.
        (d) Information classified in accordance with this section shall 
    not be declassified automatically as a result of any unofficial or 
    inadvertent or unauthorized disclosure in the United States or abroad 
    of identical or similar information.
    
    
    Sec. 1312.4  Classified designations.
    
        (a) Except as provided by the Atomic Energy Act of 1954, as 
    amended, (42 U.S.C. 2011) or the National Security Act of 1947, as 
    amended, (50 U.S.C. 401) Executive Order 12958 provides the only basis 
    for classifying information. Information which meets the test for 
    classification may be classified in one of the following three 
    designations:
        (1) Top Secret. This classification shall be applied only to 
    information the unauthorized disclosure of which reasonably could be 
    expected to cause exceptionally grave damage to the national security 
    that the original classification authority is able to identify or 
    describe.
        (2) Secret. This classification shall be applied only to 
    information the unauthorized disclosure of which reasonably could be 
    expected to cause serious damage to the national security that the 
    original classification authority is able to identify or describe.
        (3) Confidential. This classification shall be applied only to 
    information the unauthorized disclosure of which reasonably could be 
    expected to cause damage to the national security that the original 
    classification authority is able to identify or describe.
        (b) If there is significant doubt about the need to classify 
    information, it shall not be classified. If there is significant doubt 
    about the appropriate level of classification, it shall be classified 
    at the lower level.
    
    
    Sec. 1312.5  Authority to classify.
    
        (a) The authority to originally classify information or material 
    under this part shall be limited to those officials concerned with 
    matters of national security. The officials listed in this section are 
    granted authority by the Director, OMB, to assign original 
    classifications as indicated to information or material that is 
    originated by OMB staff and relating to the national security of the 
    United States:
        (1) Top Secret and below:
        (i) Deputy Director.
        (ii) Deputy Director for Management.
        (iii) Associate Director for National Security and International 
    Affairs.
        (iv) Associate Director for Natural Resources, Energy and Science.
        (2) Secret and below:
        (i) Deputy Associate Director for National Security.
        (ii) Deputy Associate Director for International Affairs.
        (iii) Deputy Associate Director for Energy and Science.
        (b) Classification authority is not delegated to persons who only 
    reproduce, extract, or summarize classified information, or who only 
    apply classification markings derived from source material or from a 
    classification guide.
    
    
    Sec. 1312.6  Duration of classification.
    
        (a)(1) When determining the duration of classification for 
    information originally classified under Executive Order 12958, an 
    original classification authority shall follow the following sequence:
        (i) He/She shall attempt to determine a date or event that is less 
    than 10 years from the date of original classification, and which 
    coincides with the lapse of the information's national security 
    sensitivity, and shall assign such date or event as the 
    declassification instruction;
        (ii) If unable to determine a date or event of less than 10 years, 
    he/she shall ordinarily assign a declassification date that is 10 years 
    from the date of the original classification decision;
        (iii) He/She may extend the duration of classification or 
    reclassify specific information for a period not to exceed 10 
    additional years if such action is consistent with the exemptions as 
    outlined in Section 1.6(d) of the Executive Order. This provision does 
    not apply to information contained in records that are more than 25 
    years old and have been determined to have permanent historical value 
    under Title 44 United States Code.
        (iv) He/She may exempt from declassification within 10 years 
    specific information, which is consistent with the exemptions as 
    outlined in Section 1.6 (d) of the Executive Order.
        (2) Extending Duration of Classification. Extensions of 
    classification are not automatic. If an original classification 
    authority with jurisdiction over the information does not extend the 
    date or event for declassification, the information is automatically 
    declassified upon the occurrence of the date or event. If an original 
    classification authority has assigned a date or event for 
    declassification that is 10 years or less from the date of 
    classification, an original classification authority with jurisdiction 
    over the information may extend the classification duration of such 
    information for additional periods not to exceed 10 years at a time. 
    Records determined to be of historical value may not exceed the 
    duration of 25 years.
        (b) When extending the duration of classification, the original 
    classification authority must:
        (1) Be an original classification authority with jurisdiction over 
    the information.
    
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        (2) Ensure that the information continues to meet the standards for 
    classification under the Executive Order.
        (3) Make reasonable attempts to notify all known holders of the 
    information. Information classified under prior orders marked with a 
    specific date or event for declassification is automatically 
    declassified upon that date or event. Information classified under 
    prior orders marked with Originating Agency's Determination Required 
    (OADR) shall:
        (i) Be declassified by a declassification authority as defined in 
    Section 3.1 of the Executive Order.
        (ii) Be re-marked by an authorized original classification 
    authority with jurisdiction over the information to establish a 
    duration of classification consistent with the Executive Order.
        (iii) Be subject to Section 3.4 of the Executive Order if the 
    records are determined to be of historical value and are to remain 
    classified for 25 years from the date of its original classification.
    
    
    Sec. 1312.7  Derivative classification.
    
        A derivative classification means that the information is in 
    substance the same information that is currently classified, usually by 
    another agency or classification authority. The application of 
    derivative classification markings is the responsibility of the person 
    who incorporates, restates, paraphrases, or generates in new form 
    information that is already classified, or one who applies such 
    classification markings in accordance with instructions from an 
    authorized classifier or classification guide. Extreme care must be 
    taken to continue classification and declassification markings when 
    such information is incorporated into OMB documents. The duplication or 
    reproduction of existing classified information is not derivative 
    classification. Persons who use derivative classification need not 
    possess original classification authority.
    
    
    Sec. 1312.8  Standard identification and markings.
    
        (a) Original Classification. At the time classified material is 
    produced, the classifier shall apply the following markings on the face 
    of each originally classified document, including electronic media:
        (1) Classification Authority. The name/personal identifier, and 
    position title of the original classifier shall appear on the 
    ``Classified By'' line.
        (2) Agency and Office of Origin. If not otherwise evident, the 
    agency and office of origin shall be identified and placed below the 
    name on the ``Classified By'' line.
        (3) Reasons for Classification. Identify the reason(s) to classify. 
    The classifier shall include, at a minimum, a brief reference to the 
    pertinent classification category(ies), or the number 1.5 plus the 
    letter(s) that corresponds to that classification category in Section 
    1.5 of the Executive Order.
        (4) Declassification instructions. These instructions shall 
    indicate the following:
        (i) The duration of the original classification decision shall be 
    placed on the ``Declassify On'' line.
        (ii) The date or event for declassification that corresponds to the 
    lapse of the information's national security sensitivity, which may not 
    exceed 10 years from the date of the original decision.
        (iii) When a specific date or event within 10 years cannot be 
    established, the classifier will apply the date that is 10 years from 
    the date of the original decision.
        (iv) The exemption category from declassification. Upon 
    determination that the information must remain classified beyond 10 
    years, the classifier will apply the letter ``X'' plus a brief 
    recitation of the exemption category(ies), or the letter ``X'' plus the 
    number that corresponds to the exemption category(ies) in Section 
    1.6(d) of the Executive Order.
        (v) An original classification authority may extend the duration of 
    classification for successive periods not to exceed 10 years at a time. 
    The ``Declassify On'' line shall be revised to include the new 
    declassification instructions and shall include the identity of the 
    person authorizing the extension and the date of the action.
        (vi) Information exempted from automatic declassification at 25 
    years should on the ``Declassify On'' line be revised to include the 
    symbol ``25X'' plus a brief reference to the pertinent exemption 
    categories/numbers of the Executive Order.
        (5) The overall classification of the document is the highest level 
    of information in the document and will be conspicuously placed stamped 
    at the top and bottom of the outside front and back cover, on the title 
    page, and on the first page.
        (6) The highest classification of individual pages will be stamped 
    at the top and bottom of each page, to include ``unclassified'' when it 
    is applicable.
        (7) The classification of individual portions of the document, 
    (ordinarily a paragraph, but including subjects, titles, graphics) 
    shall be marked by using the abbreviations (TS), (S), (C), or (U), will 
    be typed or marked at the beginning or end of each paragraph or section 
    of the document. If all portions of the document are classified at the 
    same level, this may be indicated by a statement to that effect.
        (b) Derivative Classification. Information classified derivatively 
    on the basis of source documents shall carry the following markings on 
    those documents:
        (1) The derivative classifier shall concisely identify the source 
    document(s) or the classification guide on the ``Derived From'' line, 
    including the agency and where available the office of origin and the 
    date of the source or guide. When a document is classified derivatively 
    on the basis of more than one source document or classification guide, 
    the ``Derived From'' line shall appear as ``Derived From: Multiple 
    Sources''.
        (2) The derivative classifier shall maintain the identification of 
    each source with the file or record copy of the derivatively classified 
    document. Where practicable the copies of the document should also have 
    this list attached.
        (3) A document derivatively classified on the basis of a source 
    document that is itself marked ``Multiple Sources'' shall cite the 
    source document on its ``Derived From'' line rather than the term 
    ``Multiple Sources''.
        (4) The reason for the original classification decision, as 
    reflected in the source document, is not required to be transferred in 
    a derivative classification action.
        (5) Declassification instructions shall carry forward the 
    instructions on the ``Declassify On'' line from the source document to 
    the derivation document or the duration instruction from the 
    classification guide. Where there are multiple sources, the longest 
    duration of any of its sources shall be used.
        (6) When a source document or classification guide contains the 
    declassification instruction ``Originating Agency's Determination 
    Required'' (OADR) the derivative document shall carry forward the fact 
    that the source document(s) were so marked and the date of origin of 
    the most recent source document (s).
        (7) The derivatively classified document shall be conspicuously 
    marked with the highest level of classification of information.
        (8) Each portion of a derivatively classified document shall be 
    marked in accordance with its source.
        (9) Each office shall, consistent with Section 3.8 of the Executive 
    Order, establish and maintain a database of information that has been 
    declassified.
    
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        (c) Additional Requirements. (1) Markings other than ``Top 
    Secret'', ``Secret'', and ``Confidential'' shall not be used to 
    identify classified national security information.
        (2) Transmittal documents will be stamped to indicate the highest 
    classification of the information transmitted, and shall indicate 
    conspicuously on its face the following or something similar 
    ``Unclassified When classified Enclosure Removed'' to indicate the 
    classification of the transmittal document standing alone.
        (3) The classification data for material other than documents will 
    be affixed by tagging, stamping, recording, or other means to insure 
    that recipients are aware of the requirements for the protection of the 
    material.
        (4) Documents containing foreign government information shall 
    include the markings ``This Document Contains (country of origin) 
    Information''. If the identity of the specific government must be 
    concealed, the document shall be marked'' This Document Contains 
    Foreign Government Information,'' and pertinent portions marked ``FGI'' 
    together with the classification level, e.g., ``(FGI-C)''. In such 
    cases, separate document identifying the government shall be maintained 
    in order to facilitate future declassification actions.
        (5) Documents, regardless of medium, which are expected to be 
    revised prior to the preparation of a finished product--working 
    papers--shall be dated when created, marked with highest 
    classification, protected at that level, and destroyed when no longer 
    needed. When any of the following conditions exist, the working papers 
    shall be controlled and marked in the same manner as prescribed for a 
    finished classified document:
        (i) Released by the originator outside the originating activity;
        (ii) Retained more than 180 days from the date of origin;
        (iii) Filed permanently.
        (6) Information contained in unmarked records, or Presidential or 
    related materials, and which pertain to the national defense or foreign 
    relations of the U.S. and has been maintained and protected as 
    classified information under prior orders shall continue to be treated 
    as classified information under the Executive Order and is subject to 
    its provisions regarding declassification.
    
    
    Sec. 1312.9  Downgrading and declassification.
    
        Classified information originated by OMB offices will be downgraded 
    or declassified as soon as it no longer qualifies for continued 
    protection under the provisions of the classification guides. Authority 
    to downgrade or declassify OMB-originated information is granted to 
    those authorized to classify (See Sec. 1312.5). Additionally, the 
    Associate Director (or Assistant Director) for Administration is 
    authorized to exercise downgrading and declassification actions up to 
    and including the Top Secret level.
        (a) Transferred material. Information which was originated by an 
    agency that no longer exists, or that was received by OMB in 
    conjunction with a transfer of functions, is deemed to be OMB-
    originated material. Information which has been transferred to another 
    agency for storage purposes remains the responsibility of OMB.
        (b) Periodic review of classified material. Each office possessing 
    classified material will review that material on an annual basis or in 
    conjunction with the transfer of files to non-current record storage 
    and take action to downgrade or declassify all material no longer 
    qualifying for continued protection at that level. All material 
    transferred to non-current record storage must be properly marked with 
    correct downgrade and declassification instructions.
    
    
    Sec. 1312.10  Systematic review guidelines.
    
        The EOP Security Officer will prepare and keep current such 
    guidelines as are required by Executive Order 12958 for the downgrading 
    and declassification of OMB material that is in the custody of the 
    Archivist of the United States.
    
    
    Sec. 1312.11  Challenges to classifications.
    
        OMB employees are encouraged to familiarize themselves with the 
    provisions of Executive Order 12958 and with OMB Manual Sections 1010, 
    1020, and 1030. Employees are also encouraged to question or to 
    challenge those classifications they believe to be improper, 
    unnecessary, or for an inappropriate time. Such questions or challenges 
    may be addressed to the originator of the classification, unless the 
    challenger desires to remain anonymous, in which case the question may 
    be directed to the EOP Security Officer.
    
    
    Sec. 1312.12  Security Program Review Committee.
    
        The Associate Director (or Assistant Director) for Administration 
    will chair the OMB Security Program Review Committee, which will act on 
    suggestions and complaints about the OMB security program.
    
    Subpart B--Control and Accountability of Classified Information
    
    
    Sec. 1312.21  Purpose and authority.
    
        This subpart sets forth procedures for the receipt, storage, 
    accountability, and transmission of classified information at the 
    Office of Management and Budget. It is issued under the authority of 
    Executive Order 12958, (60 FR 19825, 3 CFR, 1995 Comp., P.333), as 
    implemented by Information Security Oversight Office Directive No 1 (32 
    CFR part 2001), and is applicable to all OMB employees.
    
    
    Sec. 1312.22  Responsibilities.
    
        The effective direction by supervisors and the alert performance of 
    duty by employees will do much to ensure the adequate security of 
    classified information in the possession of OMB offices. Each employee 
    has a responsibility to protect and account for all classified 
    information that he/she knows of within his/her area of responsibility. 
    Such information will be made available only to those persons who have 
    an official need to know and who have been granted the appropriate 
    security clearance. Particular care must be taken not to discuss 
    classified information over unprotected communications circuits (to 
    include intercom and closed-circuit TV), at non-official functions, or 
    at any time that it might be revealed to unauthorized persons. 
    Classified information may only be entered into computer systems 
    meeting the appropriate security criteria.
        (a) EOP Security Officer. In cooperation with the Associate 
    Director (or Assistant Director) for Administration, the EOP Security 
    Officer supervises the administration of this section. Specifically, 
    he/she:
        (1) Promotes the correct understanding of this section and insures 
    that initial and annual briefings about security procedures are given 
    to all new employees.
        (2) Provides for periodic inspections of office areas and reviews 
    of produced documents to ensure full compliance with OMB regulations 
    and procedures.
        (3) Takes prompt action to investigate alleged violations of 
    security, and recommends appropriate administrative action with respect 
    to violators.
        (4) Supervises the annual inventories of Top Secret material.
        (5) Ensures that containers used to store classified material meet 
    the appropriate security standards and that combinations to security 
    containers are changed as required.
        (b) Heads of Offices. The head of each division or office is 
    responsible for the
    
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    administration of this section in his/her area. These responsibilities 
    include:
        (1) The appointment of accountability control clerks as prescribed 
    in Sec. 1312.26.
        (2) The maintenance of the prescribed control and accountability 
    records for classified information within the office.
        (3) Establishing internal procedures to ensure that classified 
    material is properly safeguarded at all times.
    
    
    Sec. 1312.23  Access to classified information.
    
        Classified information may be made available to a person only when 
    the possessor of the information establishes that the person has a 
    valid ``need to know'' and the access is essential to the 
    accomplishment of official government duties. The proposed recipient is 
    eligible to receive classified information only after he/she has been 
    granted a security clearance by the EOP Security Officer. Cover sheets 
    will be used to protect classified documents from inadvertent 
    disclosure while in use. An SF-703 will be used for Top Secret 
    material; an SF-704 for Secret material, and an SF-705 for Confidential 
    material. The cover sheet should be removed prior to placing the 
    document in the files.
    
    
    Sec. 1312.24  Access by historical researchers and former Presidential 
    appointees.
    
        (a) The requirements of Section 4.2(a)(3) of Executive Order 12958 
    may be waived for persons who are engaged in historical research 
    projects, or who previously have occupied policy-making positions to 
    which they were appointed by the President. Waivers may be granted only 
    if the Associate Director (or Assistant Director) for Administration, 
    in cooperation with the EOP Security Officer:
        (1) Determines in writing that access is consistent with the 
    interest of national security;
        (2) Takes appropriate steps to protect classified information from 
    unauthorized disclosure or compromise, and ensures that the information 
    is safeguarded in a manner consistent with the order; and
        (3) Limits the access granted to former Presidential appointees to 
    items that the person originated, reviewed, signed, or received while 
    serving as a Presidential appointee.
        (b) In the instances described in paragraph (a) of this section, 
    the Associate Director (or Assistant Director) for Administration, in 
    cooperation with the EOP Security Officer, will make a determination as 
    to the trustworthiness of the requestor and will obtain written 
    agreement from the requestor to safeguard the information to which 
    access is given. He/She will also obtain written consent to the review 
    by OMB of notes and manuscripts for the purpose of determining that no 
    classified information is contained therein. Upon the completion of 
    these steps, the material to be researched will be reviewed by the 
    division/office of primary interest to ensure that access is granted 
    only to material over which OMB has classification jurisdiction.
    
    
    Sec. 1312.25  Storage.
    
        All classified material in the possession of OMB will be stored in 
    a GSA-approved container or in vault-type rooms approved for Top Secret 
    storage. Under the direction of the EOP Security Officer, combinations 
    to safes used in the storage of classified material will be changed 
    when the equipment is placed in use, whenever a person knowing the 
    combination no longer requires access to it, whenever the combination 
    has been subjected to possible compromise, whenever the equipment is 
    taken out of service, or at least once a year. Knowledge of 
    combinations will be limited to the minimum number of persons 
    necessary, and records of combinations will be assigned a 
    classification no lower than the highest level of classified 
    information stored in the equipment concerned. An SF-700, Security 
    Container Information, will be used in recording safe combinations. 
    Standard Form-702, Security Container check sheet, will be posted to 
    each safe and will be used to record opening, closing, and checking the 
    container whenever it is used.
    
    
    Sec. 1312.26  Control of secret and confidential material.
    
        Classified material will be accounted for by the office having 
    custody of the material. OMB Form 87, Classified Document Control, will 
    be used to establish accountability controls on all Secret material 
    received or produced within OMB offices. No accountability controls are 
    prescribed for Confidential material, but offices desiring to control 
    and account for such material should use the procedures applicable to 
    Secret material. Information classified by another agency shall not be 
    disclosed without that agency's authorization.
        (a) Accountability Control Clerks. Each division or office head 
    will appoint one person as the Accountability Control Clerk (ACC). The 
    ACC will be the focal point for the receipt, routing, accountability, 
    dispatch, and declassification downgrading or destruction of all 
    classified material in the possession of the office.
        (b) OMB Form 87. One copy of OMB Form 87 will be attached to the 
    document, and one copy retained in the accountability control file for 
    each active document within the area of responsibility of the ACC. 
    Downgrading or destruction actions, or other actions removing the 
    document from the responsibility of the ACC will be recorded on the OMB 
    Form 87, and the form filed in an inactive file. Inactive control forms 
    will be cut off annually, held for two additional years, then 
    destroyed.
        (c) Working papers and drafts. Working papers and drafts of 
    classified documents will be protected according to their security 
    classification, but will not be subject to accountability control 
    unless they are forwarded outside of OMB.
        (d) Typewriter ribbons. Typewriter ribbons, cassettes, and other 
    devices used in the production of classified material will be removed 
    from the machine after each use and protected as classified material 
    not subject to controls. Destruction of such materials will be as 
    prescribed in Sec. 1312.29.
        (e) Reproduction. Classified material will be reproduced only as 
    required unless prohibited by the originator for the conduct of 
    business and reproduced copies are subject to the same controls as are 
    the original documents. Top Secret material will be reproduced only 
    with the written permission of the originating agency.
    
    
    Sec. 1312.27  Top secret control.
    
        The EOP Security Officer serves as the Top Secret Control Officer 
    (TSCO) for OMB. He will be assisted by the Alternate TSCOs in each 
    division/office Holding Top Secret material. The ATSCOs will be 
    responsible for the accountability and custodianship of Top Secret 
    material within their divisions/offices. The provisions of this section 
    do not apply to special intelligence material, which will be processed 
    as prescribed by the controlling agency.
        (a) Procedures. All Top Secret material produced or received in OMB 
    will be taken to the appropriate ATSCO for receipting, establishment of 
    custodianship, issuance to the appropriate action officer, and, as 
    appropriate, obtaining a receipt. Top Secret material in the custody of 
    the TSCO or ATSCO will normally be segregated from other classified 
    material and will be stored in a safe under his or her control. Such 
    material will be returned to the appropriate ATSCO by action officers 
    as soon as action is completed. OMB Form 87 will be used
    
    [[Page 25431]]
    
    to establish custody, record distribution, routing, receipting and 
    destruction of Top Secret material. Top Secret Access Record and Cover 
    Sheet (Standard Form 703) will be attached to each Top Secret document 
    while it is in the possession of OMB.
        (b) Inventory. The Associate Director (or Assistant Director) for 
    Administration will notify each appropriate OMB office to conduct an 
    inventory of its Top Secret material by May 1 each year. The head of 
    each office will notify the EOP Security Officer when the inventory has 
    been satisfactorily completed. Each Top Secret item will be examined to 
    determine whether it can be downgraded or declassified, and the 
    inventory will be adjusted accordingly. Discrepancies in the inventory, 
    indicating loss or possible compromise, will be thoroughly investigated 
    by the EOP Security Officer or by the Federal Bureau of Investigation, 
    as appropriate. Each ATSCO will retain his/her division's inventory in 
    accordance with the security procedures set forth in this regulation.
    
    
    Sec. 1312.28  Transmission of classified material.
    
        Prior to the transmission of classified material to offices outside 
    OMB, such material will be enclosed in opaque inner and outer covers or 
    envelopes. The inner cover will be sealed and marked with the 
    classification, and the address of the sender and of the addressee. The 
    receipt for the document, OMB Form 87, (not required for Confidential 
    material) will be attached to or placed within the inner envelope to be 
    signed by the recipient and returned to the sender. Receipts will 
    identify the sender, the addressee, and the document, and will contain 
    no classified information. The outer cover or envelope will be sealed 
    and addressed with no identification of its contents.
        (a) Transmittal of Top Secret Material. The transmittal of Top 
    Secret material shall be by personnel specifically designated by the 
    EOP Security Officer, or by Department of State diplomatic pouch, by a 
    messenger-courier system specifically created for that purpose. 
    Alternatively, it shall be taken to the White House Situation Room for 
    transmission over secure communications circuits.
        (b) Transmittal of Secret Material. The transmittal of Secret 
    material shall be as follows:
        (1) Within and between the fifty States, the District of Columbia, 
    and Puerto Rico: Use one of the authorized means for Top Secret 
    material, or transmit by U.S. Postal Service express or registered 
    mail.
        (2) Other Areas. Use the same means authorized for Top Secret, or 
    transmit by U.S. registered mail through Military Postal Service 
    facilities.
        (c) Transmittal of Confidential Material. As identified in 
    paragraphs (a) and (b) of this section, or transmit by U.S. Postal 
    Service Certified, first class, or express mail service within and 
    between the fifty States, the District of Columbia, and Puerto Rico.
        (d) Transmittal between OMB offices and within the EOP complex. 
    Classified material will normally be hand carried within and between 
    offices in the Executive Office of the President complex by cleared OMB 
    employees. Documents so carried must be protected by the appropriate 
    cover sheet or outer envelope. Top Secret material will always be hand 
    carried in this manner. Secret and Confidential material may be 
    transmitted between offices in the EOP complex by preparing the 
    material as indicated above (double envelope) and forwarding it by 
    special messenger service provided by the messenger center. The 
    messenger shall be advised that the material is classified. Receipts 
    shall be obtained if Top Secret or Secret material is being transmitted 
    outside of OMB. Classified material will never be transmitted in the 
    Standard Messenger Envelope (SF Form 65), or by the Mail Stop system.
    
    
    Sec. 1312.29  Destruction.
    
        The destruction of classified material will be accomplished under 
    the direction of the TSCO or the appropriate ATSCO, who will assure 
    that proper accountability records are kept. Classified official record 
    material will be processed to the Information Systems and Technology, 
    Records Management Office, Office of Administration, NEOB Room 5208, in 
    accordance with OMB Manual Section 540. Classified nonrecord material 
    will be destroyed as soon as it becomes excess to the needs of the 
    office. The following destruction methods are authorized:
        (a) Shredding. Using the equipment approved for that purpose within 
    OMB offices. Shredders will not accommodate typewriter ribbons or 
    cassettes. Shredding is the only authorized means of Destroying Top 
    Secret material.
        (b) Burn Bag. Classified documents, cassettes, ribbons, and other 
    materials at the Secret level or below, not suitable for shredding, may 
    be destroyed by using burn bags, which can be obtained from the supply 
    store. They will be disposed of as follows:
        (1) OEOB. Unless on an approved list for pick-up of burn bags, all 
    other burn bags should be delivered to Room 096, OEOB between 8:00 a.m. 
    and 4:30 p.m. Burn bags are not to be left in hallways.
        (2) NEOB. Hours for delivery of burn bag materials to the NEOB 
    Loading Dock Shredder Room are Monday through Friday from 8:00 a.m. to 
    9:30 a.m.; 10:00 a.m. to 11:00 a.m.; 11:45 a.m. to 1:30 p.m. and 2:00 
    p.m. to 3:30 p.m. The phone number of the Shredder Room is 395-1593. In 
    the event the Shredder Room is not manned, do not leave burn bags 
    outside the Shredder Room as the security of that material may be 
    compromised.
        (3) Responsibility for the security of the burn bag remains with 
    the OMB office until it is handed over to the authorized representative 
    at the shredder room. Accountability records will be adjusted after the 
    burn bags have been delivered. Destruction actions will be recorded on 
    OMB Form 87 by the division TSCO or by the appropriate ATSCO at the 
    time the destruction is accomplished or at the time the burn bag is 
    delivered to the U.D. Officer.
        (c) Technical Guidance. Technical guidance concerning appropriate 
    methods, equipment, and standards for destruction of electronic 
    classified media, processing equipment components and the like, may be 
    obtained by submitting all pertinent information to NSA/CSS Directorate 
    for Information Systems Security, Ft. Meade, Maryland 20755. 
    Specifications concerning appropriate equipment and standards for 
    destruction of other storage media may be obtained from the General 
    Services Administration.
    
    
    Sec. 1312.30  Loss or possible compromise.
    
        Any person who has knowledge of the loss or possible compromise of 
    classified information shall immediately secure the material and then 
    report the circumstances to the EOP Security Officer. The EOP Security 
    Officer will immediately initiate an inquiry to determine the 
    circumstances surrounding the loss or compromise for the purpose of 
    taking corrective measures and/or instituting appropriate 
    administrative, disciplinary, or legal action. The agency originating 
    the information shall be notified of the loss or compromise so that the 
    necessary damage assessment can be made.
    
    
    Sec. 1312.31  Security violations.
    
        (a) A security violation notice is issued by the United States 
    Secret Service when an office/division fails to properly secure 
    classified information. Upon discovery of an alleged security 
    violation, the USSS implements their
    
    [[Page 25432]]
    
    standard procedures which include the following actions:
        (1) Preparation of a Record of Security Violation form;
        (2) When a document is left on a desk or other unsecured area, the 
    officer will remove the classified document(s) and deliver to the 
    Uniformed Division's Control Center; and
        (3) Where the alleged violation involves an open safe, the officer 
    will remove one file bearing the highest classification level, annotate 
    it with his or her name, badge number, date and time, and return the 
    document to the safe, which will then be secured. A description of the 
    document will be identified in the Record of Security Violations and a 
    copy of the violation will be left in the safe.
        (b) Office of record. The EOP Security Office shall serve as the 
    primary office of record for OMB security violations. Reports of 
    violations will remain in the responsible individual's security file 
    until one year after the individual departs the Executive Office of the 
    President, at which time all violation reports will be destroyed.
        (c) Compliance. All Office of Management and Budget employees will 
    comply with this section. Additionally, personnel on detail or 
    temporary duty will comply with this section, however, their parent 
    agencies will be provided with a copy of any security violation 
    incurred during their period of service to OMB.
        (d) Responsibilities for processing security violations. (1) EOP 
    Security Officer. The EOP Security Officer shall provide OMB with 
    assistance regarding Agency security violations. Upon receipt of a 
    Record of Security Violation alleging a security violation, the EOP 
    Security Officer shall:
        (i) Prepare a memorandum to the immediate supervisor of the office/
    division responsible for the violation requesting that an inquiry be 
    made into the incident. Attached to the memorandum will be a copy of 
    the Record of Security Violation form. The receiving office/division 
    will prepare a written report within five working days of its receipt 
    of the Security Officer's memorandum.
        (ii) Provide any assistance needed for the inquiry conducted by the 
    office/division involved in the alleged violation.
        (iii) Upon receipt of the report of inquiry from the responsible 
    office/division, the EOP Security Officer will:
        (A) Consult with the OMB Associate Director (or Assistant Director) 
    for Administration and the General Counsel;
        (B) Determine if a damage assessment report is required. A damage 
    assessment will be made by the agency originating the classified 
    information, and will be prepared after it has been determined that the 
    information was accessed without authorization; and
        (C) Forward the report with a recommendation to the OMB General 
    Counsel.
        (2) Immediate supervisors. Upon receipt of the EOP Security 
    Officer's security violation memorandum, the immediate supervisor will 
    make an inquiry into the alleged incident, and send a written report of 
    inquiry to the EOP Security Officer. The inquiry should determine, and 
    the related report should identify, at a minimum:
        (i) Whether an actual security violation occurred;
        (ii) The identity of the person(s) responsible; and
        (iii) The probability of unauthorized access.
        (3) Deputy Associate Directors (or the equivalent) will:
        (i) Review and concur or comment on the written report; and
        (ii) In conjunction with the immediate supervisor, determine what 
    action will be taken to prevent, within their area of responsibility, a 
    recurrence of the circumstances giving rise to the violation.
        (e) Staff penalties for OMB security violations. When assessing 
    penalties in accordance with this section, only those violations 
    occurring within the calendar year (beginning January 1) will be 
    considered. However, reports of all previous violations remain in the 
    security files. These are the standard violation penalties that will be 
    imposed. At the discretion of the Director or his designee, greater or 
    lesser penalties may be imposed based upon the circumstances giving 
    rise to the violation, the immediate supervisor's report of inquiry, 
    and the investigation and findings of the EOP Security Officer and/or 
    the OMB Associate Director (or Assistant Director) for Administration.
        (1) First violation:
        (i) Written notification of the violation will be filed in the 
    responsible individual's security file; and
        (ii) The EOP Security Officer and/or the Associate Director (or 
    Assistant Director) for Administration will consult with the respective 
    immediate supervisor, and the responsible individual will be advised of 
    the penalties that may be applied should a second violation occur.
        (2) Second violation:
        (i) Written notification of the violation will be filed in the 
    responsible individual's security file;
        (ii) The EOP Security Officer and/or the Associate Director (or 
    Assistant Director) for Administration will consult with the respective 
    Deputy Associate Director (or the equivalent) and immediate supervisor 
    and the responsible individual who will be advised of the penalties 
    that may be applied should a third violation occur; and
        (iii) A letter of Warning will be placed in the Disciplinary Action 
    file maintained by the Office of Administration, Human Resources 
    Management Division.
        (3) Third violation:
        (i) Written notification of the violation will be filed in the 
    responsible individual's security file;
        (ii) The EOP Security Officer and/or the Associate Director (or 
    Assistant Director) for Administration will consult with the OMB Deputy 
    Director, General Counsel, the respective Deputy Associate Director (or 
    equivalent), and the immediate supervisor and the responsible 
    individual who will be advised of the penalties that may be applied 
    should a fourth violation occur; and
        (iii) A Letter of Reprimand will be placed in the Disciplinary 
    Action file maintained by the OA/HRMD.
        (4) Fourth violation:
        (i) Written notification of the violation will be filed in the 
    responsible individual's security file;
        (ii) The EOP Security Officer and/or the Associate Director (or 
    Assistant Director) for Administration will consult with the OMB 
    Director, Deputy Director, General Counsel, the respective Deputy 
    Associate Director (or the equivalent), and immediate supervisor;
        (iii) The responsible individual may receive a suspension without 
    pay for a period not to exceed 14 days; and
        (iv) The responsible individual will be advised that future 
    violations could result in the denial of access to classified material 
    or other adverse actions as may be appropriate, including dismissal.
    
    Subpart C--Mandatory Declassification Review
    
    
    Sec. 1312.32  Purpose and authority.
    
        Other government agencies, and individual members of the public, 
    frequently request that classified information in OMB files be reviewed 
    for possible declassification and release. This subpart prescribes the 
    procedures for such review and subsequent release or denial. It is 
    issued under the authority of Executive Order 12958 (60 FR 19825, 3 
    CFR, 1995 Comp., p. 333),
    
    [[Page 25433]]
    
    as implemented by Information Security Oversight Office Directive No. 1 
    (32 CFR part 2001).
    
    
    Sec. 1312.33  Responsibility.
    
        All requests for the mandatory declassification review of 
    classified information in OMB files should be addressed to the 
    Associate Director (or Assistant Director) for Administration, who will 
    acknowledge receipt of the request. When a request does not reasonably 
    describe the information sought, the requester shall be notified that 
    unless additional information is provided, or the scope of the request 
    is narrowed, no further action will be taken. All requests will receive 
    a response within 180 days of receipt of the request.
    
    
    Sec. 1312.34  Information in the custody of OMB.
    
        Information contained in OMB files and under the exclusive 
    declassification jurisdiction of the office will be reviewed by the 
    office of primary interest to determine whether, under the 
    declassification provisions of the Order, the requested information may 
    be declassified. If so, the information will be made available to the 
    requestor unless withholding is otherwise warranted under applicable 
    law. If the information may not be released, in whole or in part, the 
    requestor shall be given a brief statement as to the reasons for 
    denial, a notice of the right to appeal the determination to the Deputy 
    Director, OMB, and a notice that such an appeal must be filed within 60 
    days in order to be considered.
    
    
    Sec. 1312.35  Information classified by another agency.
    
        When a request is received for information that was classified by 
    another agency, the Associate Director (or Assistant Director) for 
    Administration will forward the request, along with any other related 
    materials, to the appropriate agency for review and determination as to 
    release. Recommendations as to release or denial may be made if 
    appropriate. The requester will be notified of the referral, unless the 
    receiving agency objects on the grounds that its association with the 
    information requires protection.
    
    
    Sec. 1312.36  Appeal procedure.
    
        Appeals received as a result of a denial, see Sec. 1312.34, will be 
    routed to the Deputy Director who will take action as necessary to 
    determine whether any part of the information may be declassified. If 
    so, he will notify the requester of his determination and make that 
    information available that is declassified and otherwise releasable. If 
    continued classification is required, the requestor shall be notified 
    by the Deputy Director of the reasons thereafter. Determinations on 
    appeals will normally be made within 60 working days following receipt. 
    If additional time is needed, the requestor will be notified and this 
    reason given for the extension. The agency's decision can be appealed 
    to the Interagency Security Classification Appeals Panel.
    
    
    Sec. 1312.37  Fees.
    
        There will normally be no fees charged for the mandatory review of 
    classified material for declassification under this section.
    
    [FR Doc. 97-12247 Filed 5-8-97; 8:45 am]
    BILLING CODE 3110-01-P
    
    
    

Document Information

Effective Date:
6/9/1997
Published:
05/09/1997
Department:
Management and Budget Office
Entry Type:
Rule
Action:
Final rule.
Document Number:
97-12247
Dates:
June 9, 1997.
Pages:
25426-25433 (8 pages)
RINs:
0348-AB34: Classification, Downgrading, Declassification and Safeguarding of National Security Information
RIN Links:
https://www.federalregister.gov/regulations/0348-AB34/classification-downgrading-declassification-and-safeguarding-of-national-security-information
PDF File:
97-12247.pdf
CFR: (31)
5 CFR 1.6(d)
5 CFR 1.5
5 CFR 1312.1
5 CFR 1312.2
5 CFR 1312.3
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