((a)) ** Definitions** In this section:
((1)) ** Appropriate committees of Congress** The term “appropriate committees of Congress” means—
((A)) the congressional intelligence committees;
((B)) the Subcommittee on Defense of the Committee on Appropriations of the Senate; and
((C)) the Subcommittee on Defense of the Committee on Appropriations of the House of Representatives.
((2)) ** Covered contract or agreement** The term “covered contract or agreement”, with respect to an entity, means a contract or other agreement between that entity and an element of the intelligence community the performance of which requires a specified number of covered persons to hold a security clearance.
((3)) ** Covered person** The term “covered person”, with respect to an entity, means a contractor or employee of that entity.
((b)) ** Plan and study**
((1)) ** In general** No later than , the Director of National Intelligence shall—
((A)) complete a study on the feasibility and advisability of implementing a program to authorize additional security clearances for certain contractors as described in subsection (c);
((B)) develop a plan to implement the program described in subparagraph (A); and
((C)) submit to the appropriate committees of Congress—
((i)) a report on the findings of the Director with respect to the study completed pursuant to subparagraph (A); and
((ii)) the plan developed pursuant to subparagraph (B).
((2)) ** Study elements** The study completed pursuant to paragraph (1)(A) shall address the following:
((A)) For contracts agreed to after , how private entities that contract with the intelligence community would make payments for additional clearances for their employees and how the intelligence community would receive payments.
((B)) A list of and changes to provisions of law required in order to fully implement the program required by subsection (c) and achieve the intent indicated in subparagraph (A) of this paragraph.
((C)) Such considerations as the Director may have for carrying out the program required by subsection (c) and achieving the intent indicated in subparagraph (A) of this paragraph.
((c)) ** Program to authorize additional security clearances for certain contractors** Subject to the limitations described in subsection (d), the Director shall establish a program under which—
((1)) any entity that enters into a covered contract or agreement with an element of the intelligence community may designate an additional number of covered persons who may submit an application for a security clearance;
((2)) the appropriate authorized investigative agency and authorized adjudicative agency, as such terms are defined in , shall—
((A)) upon receiving such an application—
((i)) conduct an appropriate investigation of the background of the additional covered person; and
((ii)) make a determination as to whether the additional covered person is eligible for access to classified information; and
((B)) if the determination under subparagraph (A)(ii) is favorable, upon any of the specified number of covered persons required to hold a security clearance for the performance of work under that covered contract or agreement becoming unable to perform such work, make a determination as to whether the additional covered person has a demonstrated need-to-know under Executive Order 12968 (60 Fed. Reg. 40245; relating to access to classified information), or any successor thereto, or Executive Order 10865 (25 Fed. Reg. 1583; relating to safeguarding classified information within industry), or any successor thereto (without requiring an additional investigation to be conducted under subparagraph (A)(i)); and
((3)) if the additional covered person receives a favorable determination regarding the need-to-know under paragraph (2)(B) and signs an approved nondisclosure agreement, the additional covered person may perform such work in lieu of such covered person.
((d)) ** Limitations** The limitations described in this subsection are as follows:
((1)) ** Limitation on number designated per contract** The additional number designated by an entity under the program established pursuant to subsection (c) for each covered contract or agreement may not exceed the greater of the following:
((A)) 10 percent of the number of security clearances required to be held by covered persons to perform work under the covered contract or agreement.
((B)) 1 person.
((2)) ** Limitation on number designated per entity** The total additional number designated by an entity under the program established pursuant to subsection (c) may not exceed the greater of the following:
((A)) 10 percent of the sum total number of security clearances required to be held by covered persons to perform work under all covered contracts or agreements of the entity.
((B)) 1 person.
((e)) ** Prohibitions**
((1)) ** In general** No application for a security clearance may be submitted by a covered person of an entity or granted pursuant to the program established under subsection (c) in excess of the limitations under subsection (d) applicable to such entity.
((2)) ** Prohibition on bearing costs** No head of an element of the intelligence community may bear any cost associated with granting or maintaining a security clearance the application for which is submitted pursuant to subsection (c)(1).
((f)) ** Rule of construction** Nothing in this section may be construed as requiring the head of an element of the intelligence community to grant any covered person access to classified information if a favorable determination of eligibility to access such classified information is not made with respect to such person.