Privacy Act; Implementation, 51218-51221 [E8-20205]

Agencies

• Office of the Secretary
• DEPARTMENT OF THE TREASURY
• Department of Treasury

[Federal Register Volume 73, Number 170 (Tuesday, September 2, 2008)]
[Rules and Regulations]
[Pages 51218-51221]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-20205]


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DEPARTMENT OF THE TREASURY

Office of the Secretary

31 CFR Part 1


Privacy Act; Implementation

AGENCY: Office of the Secretary, Treasury.

ACTION: Interim rule; request for comments.

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SUMMARY: In accordance with the requirements of the Privacy Act of 
1974, as amended, the Department of the Treasury gives notice of an 
amendment to its Privacy Act regulations by revising the title of one 
Privacy Act system of records and by removing five other Privacy Act 
systems of records. These systems of records are related to the 
functions of the Alcohol and Tobacco Tax and Trade Bureau (TTB).

DATES: This interim rule is effective on September 2, 2008. Comments on 
this interim rule must be received on or before October 2, 2008.

ADDRESSES: You may send comments on this interim rule to one of the 
following addresses:
     https://www.regulations.gov (Federal e-rulemaking portal; 
follow the instructions for submitting comments); or
     Gerry Isenberg, Assistant Director, Regulations and 
Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, P.O. Box 
14412, Washington, DC 20044-4412.

Public Participation

Comments Sought

    We request comments on this interim rule from interested members of 
the public.

Submitting Comments

    You may submit comments on this notice by one of the following two 
methods:
     Federal e-Rulemaking Portal: To submit a comment on this 
notice using the online Federal e-rulemaking portal, visit https://
www.regulations.gov and select ``Alcohol and Tobacco Tax and Trade 
Bureau'' from the agency drop-down menu and click ``Submit.'' In the 
resulting docket list, open the docket containing this interim rule, 
click the ``Add Comments'' icon for this interim rule, and complete the 
resulting comment form. You may attach supplemental files to your 
comment. A direct link to the appropriate docket is also available on 
the TTB Web site at https://www.ttb.gov/regulations_laws/all_
rulemaking.shtml. More complete information on using Regulations.gov, 
including instructions for accessing open and closed dockets and for 
submitting comments, is available through the site's ``User Tips'' 
link.
     Mail: You may send written comments to Gerry Isenberg, 
Assistant

[[Page 51219]]

Director, Regulations and Rulings Division, Alcohol and Tobacco Tax and 
Trade Bureau, P.O. Box 14412, Washington, DC 20044-4412.
    Please submit your comments by the closing date shown above in this 
notice. Your comments must include this notice number and your name and 
mailing address. Your comments must be in English, legible, and written 
in language acceptable for public disclosure. TTB does not acknowledge 
receipt of comments, and TTB considers all comments as originals.
    If you are commenting on behalf of an association, business, or 
other entity, your comment must include the entity's name as well as 
your name and position title. If you comment via https://
www.regulations.gov, please enter the entity's name in the 
``Organization'' blank of the comment form. If you comment via mail, 
please submit your entity's comment on letterhead.

Confidentiality

    All submitted comments and attachments are part of the public 
record and subject to disclosure. Do not enclose any material in your 
comments that you consider to be confidential or inappropriate for 
public disclosure.

Public Disclosure

    On the Federal e-rulemaking portal, TTB will post, and you may 
view, copies of this notice and any electronic or mailed comments TTB 
receives about this proposal. To view a posted document or comment, go 
to https://www.regulations.gov and select ``Alcohol and Tobacco Tax and 
Trade Bureau'' from the agency drop-down menu and click ``Submit.'' In 
the resulting docket list, click the appropriate docket number, then 
click the ``View'' icon for any document or comment posted under that 
docket number. A direct link to the docket containing this interim rule 
is also available on the TTB Web site at https://www.ttb.gov/
regulations_laws/all_rulemaking.shtml.
    All submitted and posted comments will display the commenter's 
name, organization (if any), city, and State, and, in the case of 
mailed comments, all address information, including e-mail addresses. 
TTB may omit voluminous attachments or material that it considers 
unsuitable for posting.
    You also may view copies of this notice and any electronic or 
mailed comments TTB receives about this proposal by appointment at the 
TTB Information Resource Center, 1310 G Street, NW., Washington, DC 
20220. You may also obtain copies at 20 cents per 8.5 x 11-inch page. 
Contact TTB's information specialist at the above address or by 
telephone at 202-927-2400 to schedule an appointment or to request 
copies of comments or other materials.
    You may view copies of this document and any comments TTB receives 
about this proposal at https://www.regulations.gov. A direct link to the 
appropriate docket is available on the TTB Web site at https://
www.ttb.gov/regulations_ laws/all_rulemaking.shtml. You also may view 
copies of this document and any comments TTB receives about this 
proposal by appointment at the TTB Information Resource Center, 1310 G 
Street, NW., Washington, DC 20220. To make an appointment, call 202-
927-2400.

FOR FURTHER INFORMATION CONTACT: Gerry Isenberg, Assistant Director, 
Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade 
Bureau, 1310 G Street, NW., Washington, DC 20005; phone 202-927-8210.

SUPPLEMENTARY INFORMATION: Effective January 24, 2003, the Homeland 
Security Act of 2002 divided the Bureau of Alcohol, Tobacco and 
Firearms (ATF) into two new agencies, the Alcohol and Tobacco Tax and 
Trade Bureau (TTB) in the Department of the Treasury and the Bureau of 
Alcohol, Tobacco, Firearms and Explosives in the Department of Justice. 
The Bureau of Alcohol, Tobacco, Firearms and Explosives oversees 
Federal firearms, explosives, and arson laws and programs, and 
administers laws pertaining to alcohol and tobacco smuggling and 
diversion. TTB is responsible for administering Chapters 51 (relating 
to distilled spirits, wine, and beer) and 52 (relating to tobacco 
products and cigarette papers and tubes) of title 26 U.S.C., the 
Internal Revenue Code of 1986, as amended. TTB also administers 
sections 4181 and 4182 (relating to the excise tax on firearms and 
ammunition) of the Internal Revenue Code of 1986 and title 27 U.S.C. 
(relating to alcohol).
    Section 1512 of the Homeland Security Act of 2002 authorized TTB to 
continue its operations under completed administrative actions taken by 
ATF until such actions are amended, modified, superseded, terminated, 
set aside, or revoked in accordance with law. As of January 24, 2003, 
the following Privacy Act systems of records notices were in effect for 
ATF records:

ATF .001--Administrative Record System;
ATF .002--Correspondence Record System;
ATF .003--Criminal Investigation Report System;
ATF .007--Personnel Record System;
ATF .008--Regulatory Enforcement Record System; and
ATF .009--Technical and Scientific Services Record System.

    Pursuant to the Privacy Act of 1974 (5 U.S.C. 552a), as amended, 
and Office of Management and Budget (OMB) Circular No. A-130, TTB has 
completed a review of its current records to determine which records 
are Privacy Act systems of records. The Privacy Act system of records 
formerly entitled ``Treasury/ATF .008-Regulatory Enforcement Record 
System'' will be maintained by TTB under the title ``Treasury/TTB .001-
Regulatory Enforcement Record System.''
    The following systems of records are being removed from the 
Department of the Treasury's Privacy Act systems of records inventory:

ATF .001--Administrative Record System;
ATF .002--Correspondence Record System;
ATF .003--Criminal Investigation Report System;
ATF .007--Personnel Record System; and
ATF .009--Technical and Scientific Services Record System.

    Note that while ATF .001 and ATF .002 are part of the current 
Department of the Treasury systems of records inventory and are being 
deleted from that inventory pursuant to a separate notice, these two 
systems are not part of the list of exempt systems of records in 31 CFR 
1.36. Therefore, these two systems do not need to be deleted from the 
list of exempt systems as part of the interim rule amendment of section 
1.36.
    The Department of the Treasury as part of this action is also 
amending 31 CFR 1.20(b) to reflect the organizational change in the 
scope of its Privacy Act regulations by revising the title of the 
bureau from ``Bureau of Alcohol, Tobacco and Firearms'' to ``Alcohol 
and Tobacco Tax and Trade Bureau.''
    Pursuant to 5 U.S.C. 552a(k)(2), the Department of the Treasury 
hereby exempts ``Treasury/TTB .001-Regulatory Enforcement Record 
System'' from the following provisions of 5 U.S.C. 552a: 5 U.S.C. 
552a(c)(3), 5 U.S.C. 552a(d)(1), (2), (3), and (4), 5 U.S.C. 
552a(e)(1), 5 U.S.C. 552a(e)(4)(G), (H), and (I), and 5 U.S.C. 552a(f).
    As set out in 31 CFR 1.36(h), the Department exempts this system of 
records from these provisions of 5 U.S.C. 552a for the following 
reasons:
    (1) 5 U.S.C. 552a(c)(3) requires an agency to make accountings of

[[Page 51220]]

disclosures of a record available to the individual named in the record 
upon his or her request. The accountings must state the date, nature, 
and purpose of each disclosure of the record and the name and address 
of the recipient.
    (i) The application of this provision would impair the ability of 
the Department and of law enforcement agencies outside the Department 
of the Treasury to make effective use of information maintained by the 
Department. Making accountings of disclosures available to the subjects 
of an investigation would alert them to the fact that an agency is 
conducting an investigation into their illegal activities and could 
reveal the geographic location of the investigation, the nature and 
purpose of that investigation, and the dates on which that 
investigation was active. Violators possessing such knowledge would be 
able to take measures to avoid detection or apprehension by altering 
their operations, by transferring their illegal activities to other 
geographical areas, or by destroying or concealing evidence that would 
form the basis for detection or apprehension. In the case of a 
delinquent account, such release might enable the subject of the 
investigation to dissipate assets before levy.
    (ii) Providing accountings to the subjects of investigations would 
alert them to the fact that the Department has information regarding 
their illegal activities and could inform them of the general nature of 
that information.
    (2) 5 U.S.C. 552a(d)(1), (e)(4)(H) and (f)(2), (3) and (5) grant 
individuals access to records pertaining to them. The application of 
these provisions to the systems of records would compromise the 
Department's ability to utilize and provide useful tactical and 
strategic information to law enforcement agencies.
    (i) Permitting access to records contained in the systems of 
records would provide individuals with information concerning the 
nature of any current investigations and would enable them to avoid 
detection or apprehension by:
    (A) Discovering the facts that would form the basis for their 
detection or apprehension;
    (B) Enabling them to destroy or alter evidence of illegal conduct 
that would form the basis for their detection or apprehension, and
    (C) Using knowledge that investigators had reason to believe that a 
violation of law was about to be committed, to delay the commission of 
the violation or commit it at a location that might not be under 
surveillance.
    (ii) Permitting access to either on-going or closed investigative 
files would also reveal investigative techniques and procedures, the 
knowledge of which could enable individuals planning non-criminal acts 
to structure their operations so as to avoid detection or apprehension.
    (iii) Permitting access to investigative files and records could, 
moreover, disclose the identity of confidential sources and informers 
and the nature of the information supplied and thereby endanger the 
physical safety of those sources by exposing them to possible reprisals 
for having provided the information. Confidential sources and informers 
might refuse to provide investigators with valuable information unless 
they believed that their identities would not be revealed through 
disclosure of their names or the nature of the information they 
supplied. Loss of access to such sources would seriously impair the 
Department's ability to carry out its mandate.
    (iv) Furthermore, providing access to records contained in the 
systems of records could reveal the identities of undercover law 
enforcement officers or other persons who compiled information 
regarding the individual's illegal activities and thereby endanger the 
physical safety of those undercover officers, persons, or their 
families by exposing them to possible reprisals.
    (v) By compromising the law enforcement value of the systems of 
records for the reasons outlined in 31 CFR 1.36(h)(2)(i) through (iv), 
permitting access in keeping with these provisions would discourage 
other law enforcement and regulatory agencies, foreign and domestic, 
from freely sharing information with the Department and thus would 
restrict the Department's access to information necessary to accomplish 
its mission most effectively.
    (vi) Finally, the dissemination of certain information that the 
Department may maintain in the systems of records is restricted by law.
    (3) 5 U.S.C. 552a(d)(2), (3) and (4), (e)(4)(H), and (f)(4) permit 
an individual to request amendment of a record pertaining to him or her 
and require the agency either to amend the record, or to note the 
disputed portion of the record and to provide a copy of the 
individual's statement of disagreement with the agency's refusal to 
amend a record to persons or other agencies to whom the record is 
thereafter disclosed. Since these provisions depend on the individual's 
having access to his or her records, and since these rules exempt the 
systems of records from the provisions of 5 U.S.C. 552a relating to 
access to records, for the reasons set out in 31 CFR 1.36(h)(2), these 
provisions should not apply to the systems of records.
    (4) 5 U.S.C. 552a(e)(1) requires an agency to maintain in its 
records only such information about an individual as is relevant and 
necessary to accomplish a purpose of the agency required to be 
accomplished by statute or executive order. The term ``maintain,'' as 
defined in 5 U.S.C. 552a(a)(3), includes ``collect'' and 
``disseminate.'' The application of this provision to the system of 
records could impair the Department's ability to collect, utilize, and 
disseminate valuable law enforcement information.
    (i) At the time that the Department collects information, it often 
lacks sufficient time to determine whether the information is relevant 
and necessary to accomplish a Department purpose.
    (ii) In many cases, especially in the early stages of an 
investigation, it may be impossible immediately to determine whether 
information collected is relevant and necessary, and information that 
initially appears irrelevant and unnecessary often may, upon further 
evaluation or upon collation with information developed subsequently, 
prove particularly relevant to a law enforcement program.
    (iii) Not all violations of law discovered by the Department 
analysts fall within the investigative jurisdiction of the Department 
of the Treasury. To promote effective law enforcement, the Department 
will have to disclose such violations to other law enforcement 
agencies, including state, local and foreign agencies that have 
jurisdiction over the offenses to which the information relates. 
Otherwise, the Department might be placed in the position of having to 
ignore information relating to violations of law not within the 
jurisdiction of the Department of the Treasury when that information 
comes to the Department's attention during the collation and analysis 
of information in its records.
    (5) 5 U.S.C. 552a(e)(4)(G) and (f)(1) enable individuals to inquire 
whether a system of records contains records pertaining to them. 
Application of these provisions to the systems of records would allow 
individuals to learn whether they have been identified as suspects or 
subjects of investigation. As further described in the following 
paragraph, access to such knowledge would impair the Department's 
ability to carry out its mission, since individuals could:
    (i) Take steps to avoid detection;
    (ii) Inform associates that an investigation is in progress;

[[Page 51221]]

    (iii) Learn the nature of the investigation;
    (iv) Learn whether they are only suspects or identified as law 
violators;
    (v) Begin, continue, or resume illegal conduct upon learning that 
they are not identified in the system of records; or
    (vi) Destroy evidence needed to prove the violation.
    (6) 5 U.S.C. 552a(e)(4)(I) requires an agency to publish a general 
notice listing the categories of sources for information contained in a 
system of records. The application of this provision to the systems of 
records could compromise the Department's ability to complete or 
continue investigations or to provide useful information to law 
enforcement agencies, since revealing sources for the information 
could:
    (i) Disclose investigative techniques and procedures;
    (ii) Result in threats or reprisals against informers by the 
subjects of investigations; and
    (iii) Cause informers to refuse to give full information to 
investigators for fear of having their identities as sources disclosed.
    Currently, Sec.  1.36 asserts exemptions for four systems of 
records pursuant to 5 U.S.C. 552a(j)(2), (k)(2), and (k)(5). Three of 
those systems of records are being removed from the Department's 
inventory of Privacy Act systems of records. The remaining system of 
records, entitled ``Treasury/ATF .008--Regulatory Enforcement Record 
System,'' will be maintained by TTB under the revised designation 
``Treasury/TTB .001--Regulatory Enforcement Record System'' and will 
retain the exemption currently claimed for that system pursuant to 5 
U.S.C. 552a(k)(2). Under 5 U.S.C. 552a(k)(2), the head of an agency may 
promulgate rules to exempt a system of records from certain provisions 
of 5 U.S.C. 552a if the system contains investigatory material compiled 
for law enforcement purposes.
    This interim rule revises the relevant headings and tables in 31 
CFR 1.36 to reflect the organizational changes made by the Homeland 
Security Act of 2002 and the resulting changes to the systems of 
records discussed above. Specifically, in paragraphs 1.36(c)(1)(ii), 
(g)(1)(ii), and (m)(1)(ii), the references to ``Bureau of Alcohol, 
Tobacco and Firearms'' are revised to read ``Alcohol and Tobacco Tax 
and Trade Bureau,'' and the tables in paragraphs (c)(1)(ii), listing 
``ATF .003 Criminal Investigation Report System,'' and (m)(1)(ii), 
listing ``ATF .007 Personnel Record System,'' are removed in their 
entirety. Also, in the table in paragraph (g)(1)(ii), ``ATF .008'' is 
revised to read ``TTB .001'' and ``ATF .009 Technical and Scientific 
Services Record System'' is being removed. In addition, we take this 
opportunity to correct two typographical errors by correcting ``U.S.C. 
552a'' to read ``5 U.S.C. 552a'' at the beginning of paragraphs (h)(5) 
and (j)(5).
    These regulations are being published as an interim final rule 
because the amendments contained therein do not impose any requirements 
on any member of the public. These amendments are the most efficient 
means for the Department to implement its internal requirements for 
complying with the Privacy Act. Accordingly, pursuant to 5 U.S.C. 
553(b)(B) and (d)(3), the Department finds good cause that prior notice 
and other public procedures with respect to this rule are unnecessary, 
and good cause for making this interim final rule effective 30 days 
after publication in the Federal Register.
    Pursuant to Executive Order 12866, it has been determined that this 
interim final rule is not a significant regulatory action and, 
therefore, does not require a regulatory impact analysis.
    Because no notice of proposed rulemaking is required, the 
provisions of the Regulatory Flexibility Act, 5 U.S.C. 601-612, do not 
apply.

List of Subjects in 31 CFR Part 1

    Privacy.

PART 1--[AMENDED]

Subpart C--Privacy Act

0
Part 1 of title 31 of the Code of Federal Regulations is amended as 
follows:
0
1. The authority citation for part 1 continues to read as follows:

    Authority: 5 U.S.C. 301 and 31 U.S.C. 321. Subpart A also issued 
under 5 U.S.C. 552 as amended. Subpart C also issued under 5 U.S.C. 
552a.

0
2. Section 1.20 is amended by revising paragraph (b) to read as 
follows:


Sec.  1.20  Purpose and scope of regulations.

* * * * *
    (b) Alcohol and Tobacco Tax and Trade Bureau.
* * * * *

0
3. Section 1.36 of subpart C is amended by revising paragraphs 
(c)(1)(ii) and (g)(1)(ii), removing the reference ``U.S.C. 552a'' from 
paragraphs (h)(5) introductory text and (j)(5) introductory text and 
adding ``5 U.S.C. 552a'' in its place, and revising paragraph 
(m)(1)(ii) to read as follows:


Sec.  1.36  Systems exempt in whole or in part from provisions of 5 
U.S.C. 552a and this part.

* * * * *
    (c) * * *
    (1) * * *
    (ii) Alcohol and Tobacco Tax and Trade Bureau.
* * * * *
    (g) * * *
    (1) * * *
    (ii) Alcohol and Tobacco Tax and Trade Bureau:

------------------------------------------------------------------------
                  Number                           Name of system
------------------------------------------------------------------------
TTB .001..................................  Regulatory Enforcement
                                             Record System.
------------------------------------------------------------------------

* * * * *
    (m) * * *
    (1) * * *
    (ii) Alcohol and Tobacco Tax and Trade Bureau.
* * * * *

    Dated: July 23, 2008.
 Peter B. McCarthy,
Assistant Secretary for Management and Chief Financial Officer.
[FR Doc. E8-20205 Filed 8-29-08; 8:45 am]
BILLING CODE 4830-01-P