114 STAT. 1654A-276 PUBLIC LAW 106-398 —APPENDIX "(1) The person has been convicted in any court of the ' United States of a crime and sentenced to imprisonment for a term exceeding one year. "(2) The person is an unlawful user of, or is addicted to, a controlled substance (as defined in section 102 of the Controlled Substances Act (21 U.S.C. 802)). "(3) The person is mentally incompetent, as determined by a mental health professional approved by the Department of Defense. "(4) The person has been discharged or dismissed from the Armed Forces under dishonorable conditions. "(d) WAIVER AUTHORITY.—In a meritorious case, the Secretary of Defense or the Secretary of the military department concerned may authorize an exception to the prohibition in subsection (a) for a person described in paragraph (1) or (4) of subsection (c). The authority under the preceding sentence may not be delegated. "(e) ANNUAL REPORT.— Not later than February 1 each year, the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and House of Representatives a report identifying each waiver issued under subsection (d) during the preceding year with an explanation for each case of the disqualifying factor in subsection (c) that applied, and the reason for the waiver of the disqualification.". (b) CLERICAL AMENDMENT. —The table of sections at the beginning of such chapter is amended by adding at the end the following new item: "986. Security clearances: limitations.". SEC. 1072. PROCESS FOR PRIORITIZING BACKGROUND INVESTIGA- TIONS FOR SECURITY CLEARANCES FOR DEPARTMENT OF DEFENSE PERSONNEL AND DEFENSE CONTRACTOR PERSONNEL. (a) ESTABLISHMENT OF PROCESS. — Chapter 80 of title 10, United States Code, is amended by adding after section 1563, as added by section 542(a), the following new section: "§ 1564. Security clearance investigations "(a) EXPEDITED PROCESS.— The Secretary of Defense shall prescribe a process for expediting the completion of the background investigations necessary for granting security clearances for Department of Defense personnel and Department of Defense contractor personnel who are engaged in sensitive duties that are critical to the national security. "(b) REQUIRED FEATURES. —The process developed under subsection (a) shall provide for the following: "(1) Quantification of the requirements for background investigations necessary for grants of security clearances for . Department of Defense personnel and Department of Defense contractor personnel. "(2) Categorization of personnel on the basis of the degree of sensitivity of their duties and the extent to which those duties are critical to the national security. "(3) Prioritization of the processing of background investigations on the basis of the categories of personnel determined under paragraph (2). "(c) ANNUAL REVIEW. — The Secretary shall conduct an annual review of the process prescribed under subsection (a) and shall
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