Sec. 836. PROHIBITION ON THE TRANSFER OF CERTAIN DATA ON EMPLOYEES OF THE DEPARTMENT OF DEFENSE TO THIRD PARTIES

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## SEC. 836 PROHIBITION ON THE TRANSFER OF CERTAIN DATA ON EMPLOYEES OF THE DEPARTMENT OF DEFENSE TO THIRD PARTIES Section 4662 of title 10, United States Code, is amended— ####

(1)in subsection (a)— #####

(A)by striking “and that would be permissible pursuant to statute or guidance from the Director of the Office of Management and Budget.” and inserting a period; and #####

(B)by inserting at the end the following: “This provision does not apply in circumstances where the transfer of such data would otherwise be authorized by law.”; ####

(2)by amending subsection

(b)to read as follows: > > ### “(b) Waiver > > The Secretary of Defense may waive the requirements of subsection

(a)with respect to the sale, licensing, or other transfer of covered individually identifiable Department employee data if the Secretary determines that such waiver— > > > #### “(1) > > appropriately considers the privacy risks to the employee of the Department of Defense to which such data relates; and > > > #### “(2) > > is necessary in the interest of national security.” > ; ####

(3)by redesignating subsection

(c)as subsection (d); ####

(4)by amending paragraph

(1)of subsection (d), as so redesignated, to read as follows: > > #### “(1) > > The term ‘covered individually identifiable Department employee data’ means individually identifiable Department employee data obtained by a contractor or subcontractor described in subsection (a).” > ; and ####

(5)by inserting after subsection

(b)the following new subsection: > > ### “(c) Report > > Not later than January 15, 2026, and annually thereafter for four years, the Under Secretary of Defense for Acquisition and Sustainment, shall submit to the congressional defense committees a report on the use of the waiver authority under subsection

(b)for the fiscal year preceding the date of submission of the report. The report shall include, for each use of the waiver— > > > #### “(1) > > the specific justification for providing the waiver; > > > #### “(2) > > an identification of the contractor or subcontractor that is the subject of the waiver request; and > > > #### “(3) > > an identification of the purpose of the sale, licensing, or transfer of covered individually identifiable Department employee data that is the subject of the waiver request.” > .