((a)) ** .—** The Secretary of Defense may prescribe a process for expediting the completion of the background investigations necessary for granting security clearances for—
((1)) Department of Defense personnel and Department of Defense contractor personnel who are engaged in sensitive duties that are critical to the national security; and
((2)) any individual who—
((A)) submits an application for a position as an employee of the Department of Defense for which—
((i)) the individual is qualified; and
((ii)) a security clearance is required; and
((B)) is—
((i)) a member of the armed forces who was retired or separated, or is expected to be retired or separated, for physical disability pursuant to chapter 61 of this title;
((ii)) the spouse of a member of the armed forces who retires or is separated, after , for a physical disability as a result of a wound, injuries or illness incurred or aggravated in the line of duty (as determined by the Secretary concerned); or
((iii)) the spouse of a member of the armed forces who dies, after , as a result of a wound, injury, or illness incurred or aggravated in the line of duty (as determined by the Secretary concerned).
((b)) ** .—** 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)) ** .—**
((1)) The Secretary of Defense shall conduct an investigation or adjudication under subsection (a) of any individual described in paragraph (2) upon—
((A)) conviction of that individual by a court of competent jurisdiction for—
((i)) sexual assault;
((ii)) sexual harassment;
((iii)) fraud against the United States; or
((iv)) any other violation that the Secretary determines renders that individual susceptible to blackmail or raises serious concern regarding the ability of that individual to hold a security clearance; or
((B)) determination by a commanding officer that that individual has committed an offense described in subparagraph (A).
((2)) An individual described in this paragraph is an individual who has a security clearance and is—
((A)) a flag officer;
((B)) a general officer; or
((C)) an employee of the Department of Defense in the Senior Executive Service.
((3)) The Secretary shall ensure that relevant information on the conviction or determination described in paragraph (1) of an individual described in paragraph (2) during the preceding year, regardless of whether the individual has retired or resigned or has been discharged, released, or otherwise separated from the armed forces, is reported into Federal law enforcement records and security clearance databases, and that such information is transmitted, as appropriate, to other Federal agencies.
((4)) In this subsection:
((A)) The term “sexual assault” includes rape, sexual assault, forcible sodomy, aggravated sexual contact, abusive sexual contact, and attempts to commit such offenses, as those terms are defined in chapter 47 of this title (the Uniform Code of Military Justice).
((B)) The term “sexual harassment” has the meaning given that term in .
((C)) The term “fraud against the United States” means a violation of (article 132 of the Uniform Code of Military Justice).
((d)) ** .—** The Secretary shall conduct an annual review of the process prescribed under subsection (a) and shall revise that process as determined necessary in relation to ongoing Department of Defense missions.
((e)) ** .—** The Secretary shall consult with the Secretaries of the military departments and the heads of Defense Agencies in carrying out this section.
((f)) ** .—** For the purposes of this section, it is not necessary for the performance of duties to involve classified activities or classified matters in order for the duties to be considered sensitive and critical to the national security.
((g)) ** .—** The Secretary of Defense may use funds authorized to be appropriated to the Department of Defense for operation and maintenance to conduct background investigations under this section for individuals described in subsection (a)(2).