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Unsecured Server Act of 2016 This bill amends the Intelligence Reform and Terrorism Prevention Act of 2004 to prohibit federal agencies from granting or renewing security clearances to federal officers or employees, military members on active duty or in an active status, or federal contractors if an agency head determines that they have knowingly stored classified information on, or transmitted classified information to or from, an unsecured computer server that is not authorized by federal intelligence agencies. This prohibition applies retroactively to individuals who used an unsecured server during the 10-year period before enactment of this bill. Agencies may waive security clearance prohibitions to grant clearances to disqualified individuals, but only if the agency notifies Congress 30 days before the proposed waiver. The use of an unsecured server for classified information shall be grounds for revoking an individual's security clearance. The bill establishes a criminal penalty of a fine or imprisonment for up to 10 years for anyone who knowingly stores classified information on, or transmits classified information to or from, an unsecured server or who causes such information to be so stored or transmitted.

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