Privacy Act of 1974; Implementation, 11394-11396 [2023-03744]
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11394
Federal Register / Vol. 88, No. 36 / Thursday, February 23, 2023 / Rules and Regulations
applies, members of a group are treated
as a single United States shareholder
(within the meaning of section 951(b)
(or section 953(c)(1)(A), if applicable))
for purposes of determining the part of
the year during which such shareholder
did not own (within the meaning of
section 958(a)) the stock described in
section 951(a)(2)(A). The purpose of this
paragraph (j) is to facilitate the clear
reflection of income of a consolidated
group by ensuring that the location of
ownership of stock of a foreign
corporation within the group does not
affect the amount of the group’s income
by reason of sections 951(a)(1)(A) and
951A(a).
(2) Examples. The following examples
illustrate the application of paragraph
(j)(1) of this section. For purposes of the
examples in this paragraph (j)(2): M1
and M2 are members of a consolidated
group of which P is the common parent
(P group); each of CFC1, CFC2, and
CFC3 is a controlled foreign corporation
(within the meaning of section 957(a))
with the U.S. dollar as its functional
currency (within the meaning of section
985); the taxable year of all entities is
the calendar year for Federal income tax
purposes; and a reference to stock
owned means stock owned within the
meaning of section 958(a). These
examples do not address common law
doctrines or other authorities that might
apply to recast a transaction or to
otherwise affect the tax treatment of a
transaction.
(i) Example 1: Intercompany transfer
of stock of a controlled foreign
corporation—(A) Facts. Throughout
Year 1, M1 directly owns all the stock
of CFC1, which directly owns all the
stock of CFC2. In Year 1, CFC2 has
$100x of subpart F income (as defined
in section 952). M1’s pro rata share of
CFC2’s subpart F income for Year 1 is
$100x, which M1 includes in its gross
income under section 951(a)(1)(A). In
Year 2, CFC2 has $80x of subpart F
income and distributes $80x to CFC1
(the CFC2 Distribution). Section 959(b)
applies to the entire CFC2 Distribution.
On December 29, Year 2, M1 transfers
all of its CFC1 stock to M2 in an
exchange described in section 351(a). As
a result, on December 31, Year 2 (the
last day of Year 2 on which CFC2 is a
controlled foreign corporation), M2
owns 100% of the stock of CFC1, which
owns 100% of the stock of CFC2.
(B) Analysis. Under paragraph (j)(1) of
this section, in determining the amount
described in section 951(a)(2)(B) that is
attributable to the CFC2 Distribution, all
members of the P group are treated as
a single United States shareholder for
purposes of determining the part of Year
2 during which such shareholder did
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Jkt 259001
not own the stock of CFC2. Thus, the
ratio of the number of days in Year 2
that such United States shareholder did
not own the stock of CFC2 to the total
number of days in Year 2 is 0/365. The
amount described in section 951(a)(2)(B)
is $0, M2’s pro rata share of CFC2’s
subpart F income for Year 2 is $80x
($80x–$0), and M2 must include $80x in
its gross income under section
951(a)(1)(A).
(ii) Example 2: Transfer of stock of a
controlled foreign corporation between
controlled foreign corporations—(A)
Facts. The facts are the same as in
paragraph (j)(2)(i)(A) of this section (the
facts in Example 1), except that M1 does
not transfer its CFC1 stock to M2.
Additionally, throughout Year 1 and
from January 1, Year 2, to December 29,
Year 2, M2 directly owns all 90 shares
of the only class of stock of CFC3.
Further, on December 29, Year 2, CFC3
acquires all the CFC2 stock from CFC1
in exchange for 10 newly issued shares
of the same class of CFC3 stock in a
transaction described in section
368(a)(1)(B). As a result, on December
31, Year 2, M1 owns 10% of the stock
of CFC2, and M2 owns 90% of the stock
of CFC2.
(B) Analysis. Under paragraph (j)(1) of
this section, in determining the amount
described in section 951(a)(2)(B) that is
attributable to the portion of the CFC2
Distribution with respect to each of the
CFC2 stock that M1 owns on December
31, Year 2, and the CFC2 stock that M2
owns on that day, all members of the P
group are treated as a single United
States shareholder for purposes of
determining the part of Year 2 during
which such shareholder did not own
such stock. In each case, the ratio of the
number of days in Year 2 that such
United States shareholder did not own
such stock to the total number of days
in Year 2 is 0/365, and the amount
described in section 951(a)(2)(B) is $0.
M1’s and M2’s pro rata shares of CFC2’s
subpart F income for Year 2 are $8x
($8x¥$0) and $72x ($72x¥$0),
respectively, and M1 and M2 must
include $8x and $72x in gross income
under section 951(a)(1)(A), respectively.
(3) Applicability date. This paragraph
(j) applies to taxable years for which the
original consolidated Federal income
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tax return is due (without extensions)
after February 23, 2023.
Melanie R. Krause,
Acting Deputy Commissioner for Services and
Enforcement.
Approved: February 6, 2023.
Lily L. Batchelder,
Assistant Secretary of the Treasury (Tax
Policy).
[FR Doc. 2023–03457 Filed 2–22–23; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF DEFENSE
Office of the Secretary
32 CFR Part 310
[Docket ID: DoD–2023–OS–0010]
RIN 0790–AL11
Privacy Act of 1974; Implementation
Office of the Secretary of
Defense, Department of Defense (DoD).
ACTION: Direct final rule with request for
comments.
AGENCY:
The Department of Defense
(DoD or Department) is giving
concurrent notice of a new Departmentwide system of records titled ‘‘Privacy
and Civil Liberties Complaints and
Correspondence Records,’’ DoD–0017,
and this rulemaking, which is
exempting portions of this system of
records from certain provisions of the
Privacy Act of 1974, as amended,
because of national security
requirements. This rule is being
published as a direct final rule as the
Department does not expect to receive
any significant adverse comments. If
such comments are received, this direct
final rule will be cancelled and a
proposed rule for comments will be
published.
SUMMARY:
The rule will be effective on May
4, 2023, unless comments are received
that would result in a contrary
determination. Comments will be
accepted on or before April 24, 2023.
ADDRESSES: You may submit comments,
identified by docket number, Regulation
Identifier Number (RIN), and title, by
any of the following methods.
• Federal Rulemaking Portal: https://
www.regulations.gov.
Follow the instructions for submitting
comments.
• Mail: Department of Defense, Office
of the Assistant to the Secretary of
Defense for Privacy, Civil Liberties, and
Transparency, Regulatory Directorate,
4800 Mark Center Drive, Attn: Mailbox
24, Suite 08D09, Alexandria, VA 22350–
1700.
DATES:
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Federal Register / Vol. 88, No. 36 / Thursday, February 23, 2023 / Rules and Regulations
Instructions: All submissions received
must include the agency name and
docket number or RIN for this Federal
Register document. The general policy
for comments and other submissions
from members of the public is to make
these submissions available for public
viewing on the internet at https://
www.regulations.gov as they are
received without change, including any
personal identifiers or contact
information.
Ms.
Rahwa Keleta, OSD.DPCLTD@mail.mil,
(703) 571–0070.
SUPPLEMENTARY INFORMATION:
FOR FURTHER INFORMATION CONTACT:
lotter on DSK11XQN23PROD with RULES1
I. Background
In accordance with the Privacy Act of
1974, DoD is establishing a new
Department-wide system of records
titled ‘‘Privacy and Civil Liberties
Complaints and Correspondence
Records,’’ DoD–0017. This system of
records covers DoD’s maintenance of
records about privacy or civil libertiesrelated complaints or correspondence
submitted to DoD privacy and civil
liberties offices. This system of records
includes information provided by the
individual authoring the
correspondence or complaint.
II. Privacy Act Exemption
The Privacy Act permits Federal
agencies to exempt eligible records in a
system of records from certain
provisions of the Act, including the
provisions providing individuals with a
right to request access to and
amendment of their own records and
accountings of disclosures of such
records. If an agency intends to exempt
a particular system of records, it must
first go through the rulemaking process
to provide public notice and an
opportunity to comment on the
exemption. The Office of the Secretary
is amending 32 CFR part 310 to add a
new Privacy Act exemption rule for this
system of records. The DoD is claiming
an exemption for this system of records
because some of its records may contain
classified national security information
and providing notice, access,
amendment, and disclosure of
accounting of those records to an
individual, as well as certain recordkeeping requirements, may cause
damage to national security. The
Privacy Act, pursuant to 5 U.S.C.
552a(k)(1), authorizes agencies to claim
an exemption for systems of records that
contain information properly classified
pursuant to executive order. DoD is
claiming an exemption from several
provisions of the Privacy Act, including
various access, amendment, disclosure
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of accounting, and certain recordkeeping and notice requirements, to
prevent disclosure of any information
properly classified pursuant to
executive order, as implemented by DoD
Instruction 5200.01 and DoD Manual
5200.01, Volumes 1 and 3.
III. Direct Final Rulemaking
This rule is being published as a
direct final rule as the Department does
not expect to receive any significant
adverse comments. If such comments
are received, this direct final rule will
be cancelled and a proposed rule for
comments will be published. If no such
comments are received, this direct final
rule will become effective ten days after
the comment period expires.
For purposes of this rulemaking, a
significant adverse comment is one that
explains (1) why the rule is
inappropriate, including challenges to
the rule’s underlying premise or
approach; or (2) why the rule will be
ineffective or unacceptable without a
change. In determining whether a
significant adverse comment
necessitates withdrawal of this direct
final rule, the Department will consider
whether the comment raises an issue
serious enough to warrant a substantive
response had it been submitted in a
standard notice-and-comment process.
A comment recommending an addition
to the rule will not be considered
significant and adverse unless the
comment explains how this direct final
rule would be ineffective without the
addition.
This direct final rule adds to the
DoD’s Privacy Act exemptions for
Department-wide systems of records
found in 32 CFR 310.13. Records in this
system of records are only exempt from
the Privacy Act to the extent the
purposes underlying the exemption
pertain to the record.
A notice of a new system of records
for DoD–0017 is also published in this
issue of the Federal Register.
Regulatory Analysis
Executive Order 12866, ‘‘Regulatory
Planning and Review’’ and Executive
Order 13563, ‘‘Improving Regulation
and Regulatory Review’’
Executive Orders 12866 and 13563
direct agencies to assess all costs and
benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, distribute impacts, and equity).
Executive Order 13563 emphasizes the
importance of quantifying both costs
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11395
and benefits, of reducing costs, of
harmonizing rules, and of promoting
flexibility. It has been determined that
this rule is not a significant regulatory
action under these executive orders.
Congressional Review Act (5 U.S.C.
804(2))
The Congressional Review Act, 5
U.S.C. 801 et seq., generally provides
that before a rule may take effect, the
agency promulgating the rule must
submit a rule report, which includes a
copy of the rule, to each House of the
Congress and to the Comptroller General
of the United States. DoD will submit a
report containing this rule and other
required information to the U.S. Senate,
the U.S. House of Representatives, and
the Comptroller General of the United
States. A major rule may take effect no
earlier than 60 calendar days after
Congress receives the rule report or the
rule is published in the Federal
Register, whichever is later. This rule is
not a ‘‘major rule’’ as defined by 5
U.S.C. 804(2).
Section 202, Public Law 104–4,
‘‘Unfunded Mandates Reform Act’’
Section 202 of the Unfunded
Mandates Reform Act of 1995 (UMRA)
(2 U.S.C. 1532) requires agencies to
assess anticipated costs and benefits
before issuing any rule whose mandates
may result in the expenditure by State,
local, and tribal governments in the
aggregate, or by the private sector, in
any one year of $100 million in 1995
dollars, updated annually for inflation.
This rule will not mandate any
requirements for State, local, or tribal
governments, nor will it affect private
sector costs.
Public Law 96–354, ‘‘Regulatory
Flexibility Act’’ (5 U.S.C. 601 et seq.)
The Assistant to the Secretary of
Defense for Privacy, Civil Liberties, and
Transparency has certified that this rule
is not subject to the Regulatory
Flexibility Act (5 U.S.C. 601) because it
would not, if promulgated, have a
significant economic impact on a
substantial number of small entities.
This rule is concerned only with the
administration of Privacy Act systems of
records within the DoD. Therefore, the
Regulatory Flexibility Act, as amended,
does not require DoD to prepare a
regulatory flexibility analysis.
Public Law 96–511, ‘‘Paperwork
Reduction Act’’ (44 U.S.C. 3501 et seq.)
The Paperwork Reduction Act (PRA)
(44 U.S.C. 3501 et seq.) was enacted to
minimize the paperwork burden for
individuals; small businesses;
educational and nonprofit institutions;
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11396
Federal Register / Vol. 88, No. 36 / Thursday, February 23, 2023 / Rules and Regulations
Federal contractors; State, local, and
tribal governments; and other persons
resulting from the collection of
information by or for the Federal
Government. The Act requires agencies
obtain approval from the Office of
Management and Budget before using
identical questions to collect
information from ten or more persons.
This rule does not impose reporting or
recordkeeping requirements on the
public.
Executive Order 13132, ‘‘Federalism’’
Executive Order 13132 establishes
certain requirements that an agency
must meet when it promulgates a rule
that imposes substantial direct
requirement costs on State and local
governments, preempts State law, or
otherwise has federalism implications.
This rule will not have a substantial
effect on State and local governments.
Executive Order 13175, ‘‘Consultation
and Coordination With Indian Tribal
Governments’’
Executive Order 13175 establishes
certain requirements that an agency
must meet when it promulgates a rule
that imposes substantial direct
compliance costs on one or more Indian
tribes, preempts tribal law, or affects the
distribution of power and
responsibilities between the Federal
Government and Indian tribes. This rule
will not have a substantial effect on
Indian tribal governments.
List of Subjects in 32 CFR Part 310
Privacy.
Accordingly, 32 CFR part 310 is
amended as follows:
PART 310—PROTECTION OF PRIVACY
AND ACCESS TO AND AMENDEMENT
OF INDIVIDUAL RECORDS UNDER
THE PRIVACY ACT OF 1974
1. The authority citation for part 310
continues to read as follows:
■
Authority: 5 U.S.C. 552a.
2. Section 310.13 is amended by
adding paragraph (e)(13) to read as
follows:
■
§ 310.13 Exemptions for DoD-wide
systems.
lotter on DSK11XQN23PROD with RULES1
*
*
*
*
*
(e) * * *
(13) System identifier and name.
DoD–0017, ‘‘Privacy and Civil Liberties
Complaints and Correspondence.’’
(i) Exemptions. This system of records
is exempt from 5 U.S.C. 552a(c)(3);
(d)(1), (2), (3), and (4); (e)(1); (e)(4)(G),
(H), and (I); and (f).
(ii) Authority. 5 U.S.C. 552a(k)(1).
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15:53 Feb 22, 2023
Jkt 259001
(iii) Exemption from the particular
subsections. Exemption from the
particular subsections of the Privacy Act
of 1974, as amended, pursuant to
exemption (k)(1) is justified for the
following reasons:
(A) Subsections (c)(3), (d)(1), and
(d)(2). Records in this system of records
may contain information concerning
individuals that is properly classified
pursuant to executive order.
Application of exemption (k)(1) for such
records may be necessary because
access to and amendment of the records,
or release of the accounting of
disclosures for such records, could
reveal classified information. Disclosure
of classified records to an individual
may cause damage to national security.
Accordingly, application of exemption
(k)(1) may be necessary.
(B) Subsections (d)(3) and (4). These
subsections are inapplicable to the
extent an exemption is claimed from
(d)(1) and (d)(2).
(C) Subsection (e)(1). Records within
this system may be properly classified
pursuant to executive order. In the
collection of information for privacy
and civil liberties complaints or
correspondence, it is not always
possible to conclusively determine the
relevance and necessity of particular
information in the early stages of
gathering information to respond to the
correspondence or complaint.
Additionally, disclosure of classified
records to an individual may cause
damage to national security.
Accordingly, application of exemption
(k)(1) may be necessary.
(D) Subsections (e)(4)(G) and (H) and
Subsection (f). These subsections are
inapplicable to the extent exemption is
claimed from the access and
amendment provisions of subsection
(d). Because portions of this system are
exempt from the individual access and
amendment provisions of subsection (d)
for the reasons noted above, DoD is not
required to establish requirements,
rules, or procedures with respect to
such access or amendment provisions.
Providing notice to individuals with
respect to the existence of records
pertaining to them in the system of
records or otherwise setting up
procedures pursuant to which
individuals may access, view, and seek
to amend records pertaining to
themselves in the system would
potentially undermine national security
and the confidentiality of classified
information. Accordingly, application of
exemption (k)(1) may be necessary.
(E) Subsection (e)(4)(I). To the extent
that this provision is construed to
require more detailed disclosure than
the broad information currently
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published in the system notice
concerning categories of sources of
records in the system, an exemption
from this provision is necessary to
protect national security and the
confidentiality of sources and methods,
and other classified information.
(iv) Exempt records from other
systems. In the course of carrying out
the overall purpose for this system,
exempt records from other systems of
records may in turn become part of the
records maintained in this system. To
the extent that copies of exempt records
from those other systems of records are
maintained in this system, the DoD
claims the same exemptions for the
records from those other systems that
are entered into this system, as claimed
for the prior system(s) of which they are
a part, provided the reason for the
exemption remains valid and necessary.
Dated: February 17, 2023.
Aaron T. Siegel,
Alternate OSD Federal Register Liaison
Officer, Department of Defense.
[FR Doc. 2023–03744 Filed 2–22–23; 8:45 am]
BILLING CODE P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
Approval and Promulgation of
Implementation Plans
CFR Correction
This rule is being published by the
Office of the Federal Register to correct
an editorial or technical error that
appeared in the most recent annual
revision of the Code of Federal
Regulations.
In Title 40 of the Code of Federal
Regulations, part 52 (§ 52.2020 to the
end of part 52), revised as of July 1,
2022, in § 52.2275, remove the first
paragraph (m).
[FR Doc. 2023–03689 Filed 2–22–23; 8:45 am]
BILLING CODE 0099–10–P
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]]>Agencies
[Federal Register Volume 88, Number 36 (Thursday, February 23, 2023)]
[Rules and Regulations]
[Pages 11394-11396]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-03744]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Office of the Secretary
32 CFR Part 310
[Docket ID: DoD-2023-OS-0010]
RIN 0790-AL11
Privacy Act of 1974; Implementation
AGENCY: Office of the Secretary of Defense, Department of Defense
(DoD).
ACTION: Direct final rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: The Department of Defense (DoD or Department) is giving
concurrent notice of a new Department-wide system of records titled
``Privacy and Civil Liberties Complaints and Correspondence Records,''
DoD-0017, and this rulemaking, which is exempting portions of this
system of records from certain provisions of the Privacy Act of 1974,
as amended, because of national security requirements. This rule is
being published as a direct final rule as the Department does not
expect to receive any significant adverse comments. If such comments
are received, this direct final rule will be cancelled and a proposed
rule for comments will be published.
DATES: The rule will be effective on May 4, 2023, unless comments are
received that would result in a contrary determination. Comments will
be accepted on or before April 24, 2023.
ADDRESSES: You may submit comments, identified by docket number,
Regulation Identifier Number (RIN), and title, by any of the following
methods.
Federal Rulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Mail: Department of Defense, Office of the Assistant to
the Secretary of Defense for Privacy, Civil Liberties, and
Transparency, Regulatory Directorate, 4800 Mark Center Drive, Attn:
Mailbox 24, Suite 08D09, Alexandria, VA 22350-1700.
[[Page 11395]]
Instructions: All submissions received must include the agency name
and docket number or RIN for this Federal Register document. The
general policy for comments and other submissions from members of the
public is to make these submissions available for public viewing on the
internet at https://www.regulations.gov as they are received without
change, including any personal identifiers or contact information.
FOR FURTHER INFORMATION CONTACT: Ms. Rahwa Keleta, [email protected],
(703) 571-0070.
SUPPLEMENTARY INFORMATION:
I. Background
In accordance with the Privacy Act of 1974, DoD is establishing a
new Department-wide system of records titled ``Privacy and Civil
Liberties Complaints and Correspondence Records,'' DoD-0017. This
system of records covers DoD's maintenance of records about privacy or
civil liberties-related complaints or correspondence submitted to DoD
privacy and civil liberties offices. This system of records includes
information provided by the individual authoring the correspondence or
complaint.
II. Privacy Act Exemption
The Privacy Act permits Federal agencies to exempt eligible records
in a system of records from certain provisions of the Act, including
the provisions providing individuals with a right to request access to
and amendment of their own records and accountings of disclosures of
such records. If an agency intends to exempt a particular system of
records, it must first go through the rulemaking process to provide
public notice and an opportunity to comment on the exemption. The
Office of the Secretary is amending 32 CFR part 310 to add a new
Privacy Act exemption rule for this system of records. The DoD is
claiming an exemption for this system of records because some of its
records may contain classified national security information and
providing notice, access, amendment, and disclosure of accounting of
those records to an individual, as well as certain record-keeping
requirements, may cause damage to national security. The Privacy Act,
pursuant to 5 U.S.C. 552a(k)(1), authorizes agencies to claim an
exemption for systems of records that contain information properly
classified pursuant to executive order. DoD is claiming an exemption
from several provisions of the Privacy Act, including various access,
amendment, disclosure of accounting, and certain record-keeping and
notice requirements, to prevent disclosure of any information properly
classified pursuant to executive order, as implemented by DoD
Instruction 5200.01 and DoD Manual 5200.01, Volumes 1 and 3.
III. Direct Final Rulemaking
This rule is being published as a direct final rule as the
Department does not expect to receive any significant adverse comments.
If such comments are received, this direct final rule will be cancelled
and a proposed rule for comments will be published. If no such comments
are received, this direct final rule will become effective ten days
after the comment period expires.
For purposes of this rulemaking, a significant adverse comment is
one that explains (1) why the rule is inappropriate, including
challenges to the rule's underlying premise or approach; or (2) why the
rule will be ineffective or unacceptable without a change. In
determining whether a significant adverse comment necessitates
withdrawal of this direct final rule, the Department will consider
whether the comment raises an issue serious enough to warrant a
substantive response had it been submitted in a standard notice-and-
comment process. A comment recommending an addition to the rule will
not be considered significant and adverse unless the comment explains
how this direct final rule would be ineffective without the addition.
This direct final rule adds to the DoD's Privacy Act exemptions for
Department-wide systems of records found in 32 CFR 310.13. Records in
this system of records are only exempt from the Privacy Act to the
extent the purposes underlying the exemption pertain to the record.
A notice of a new system of records for DoD-0017 is also published
in this issue of the Federal Register.
Regulatory Analysis
Executive Order 12866, ``Regulatory Planning and Review'' and Executive
Order 13563, ``Improving Regulation and Regulatory Review''
Executive Orders 12866 and 13563 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distribute impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility. It has been determined that this rule is not a significant
regulatory action under these executive orders.
Congressional Review Act (5 U.S.C. 804(2))
The Congressional Review Act, 5 U.S.C. 801 et seq., generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. DoD will submit a report containing this rule and other
required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States. A
major rule may take effect no earlier than 60 calendar days after
Congress receives the rule report or the rule is published in the
Federal Register, whichever is later. This rule is not a ``major rule''
as defined by 5 U.S.C. 804(2).
Section 202, Public Law 104-4, ``Unfunded Mandates Reform Act''
Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) (2
U.S.C. 1532) requires agencies to assess anticipated costs and benefits
before issuing any rule whose mandates may result in the expenditure by
State, local, and tribal governments in the aggregate, or by the
private sector, in any one year of $100 million in 1995 dollars,
updated annually for inflation. This rule will not mandate any
requirements for State, local, or tribal governments, nor will it
affect private sector costs.
Public Law 96-354, ``Regulatory Flexibility Act'' (5 U.S.C. 601 et
seq.)
The Assistant to the Secretary of Defense for Privacy, Civil
Liberties, and Transparency has certified that this rule is not subject
to the Regulatory Flexibility Act (5 U.S.C. 601) because it would not,
if promulgated, have a significant economic impact on a substantial
number of small entities. This rule is concerned only with the
administration of Privacy Act systems of records within the DoD.
Therefore, the Regulatory Flexibility Act, as amended, does not require
DoD to prepare a regulatory flexibility analysis.
Public Law 96-511, ``Paperwork Reduction Act'' (44 U.S.C. 3501 et seq.)
The Paperwork Reduction Act (PRA) (44 U.S.C. 3501 et seq.) was
enacted to minimize the paperwork burden for individuals; small
businesses; educational and nonprofit institutions;
[[Page 11396]]
Federal contractors; State, local, and tribal governments; and other
persons resulting from the collection of information by or for the
Federal Government. The Act requires agencies obtain approval from the
Office of Management and Budget before using identical questions to
collect information from ten or more persons. This rule does not impose
reporting or recordkeeping requirements on the public.
Executive Order 13132, ``Federalism''
Executive Order 13132 establishes certain requirements that an
agency must meet when it promulgates a rule that imposes substantial
direct requirement costs on State and local governments, preempts State
law, or otherwise has federalism implications. This rule will not have
a substantial effect on State and local governments.
Executive Order 13175, ``Consultation and Coordination With Indian
Tribal Governments''
Executive Order 13175 establishes certain requirements that an
agency must meet when it promulgates a rule that imposes substantial
direct compliance costs on one or more Indian tribes, preempts tribal
law, or affects the distribution of power and responsibilities between
the Federal Government and Indian tribes. This rule will not have a
substantial effect on Indian tribal governments.
List of Subjects in 32 CFR Part 310
Privacy.
Accordingly, 32 CFR part 310 is amended as follows:
PART 310--PROTECTION OF PRIVACY AND ACCESS TO AND AMENDEMENT OF
INDIVIDUAL RECORDS UNDER THE PRIVACY ACT OF 1974
0
1. The authority citation for part 310 continues to read as follows:
Authority: 5 U.S.C. 552a.
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2. Section 310.13 is amended by adding paragraph (e)(13) to read as
follows:
Sec. 310.13 Exemptions for DoD-wide systems.
* * * * *
(e) * * *
(13) System identifier and name. DoD-0017, ``Privacy and Civil
Liberties Complaints and Correspondence.''
(i) Exemptions. This system of records is exempt from 5 U.S.C.
552a(c)(3); (d)(1), (2), (3), and (4); (e)(1); (e)(4)(G), (H), and (I);
and (f).
(ii) Authority. 5 U.S.C. 552a(k)(1).
(iii) Exemption from the particular subsections. Exemption from the
particular subsections of the Privacy Act of 1974, as amended, pursuant
to exemption (k)(1) is justified for the following reasons:
(A) Subsections (c)(3), (d)(1), and (d)(2). Records in this system
of records may contain information concerning individuals that is
properly classified pursuant to executive order. Application of
exemption (k)(1) for such records may be necessary because access to
and amendment of the records, or release of the accounting of
disclosures for such records, could reveal classified information.
Disclosure of classified records to an individual may cause damage to
national security. Accordingly, application of exemption (k)(1) may be
necessary.
(B) Subsections (d)(3) and (4). These subsections are inapplicable
to the extent an exemption is claimed from (d)(1) and (d)(2).
(C) Subsection (e)(1). Records within this system may be properly
classified pursuant to executive order. In the collection of
information for privacy and civil liberties complaints or
correspondence, it is not always possible to conclusively determine the
relevance and necessity of particular information in the early stages
of gathering information to respond to the correspondence or complaint.
Additionally, disclosure of classified records to an individual may
cause damage to national security. Accordingly, application of
exemption (k)(1) may be necessary.
(D) Subsections (e)(4)(G) and (H) and Subsection (f). These
subsections are inapplicable to the extent exemption is claimed from
the access and amendment provisions of subsection (d). Because portions
of this system are exempt from the individual access and amendment
provisions of subsection (d) for the reasons noted above, DoD is not
required to establish requirements, rules, or procedures with respect
to such access or amendment provisions. Providing notice to individuals
with respect to the existence of records pertaining to them in the
system of records or otherwise setting up procedures pursuant to which
individuals may access, view, and seek to amend records pertaining to
themselves in the system would potentially undermine national security
and the confidentiality of classified information. Accordingly,
application of exemption (k)(1) may be necessary.
(E) Subsection (e)(4)(I). To the extent that this provision is
construed to require more detailed disclosure than the broad
information currently published in the system notice concerning
categories of sources of records in the system, an exemption from this
provision is necessary to protect national security and the
confidentiality of sources and methods, and other classified
information.
(iv) Exempt records from other systems. In the course of carrying
out the overall purpose for this system, exempt records from other
systems of records may in turn become part of the records maintained in
this system. To the extent that copies of exempt records from those
other systems of records are maintained in this system, the DoD claims
the same exemptions for the records from those other systems that are
entered into this system, as claimed for the prior system(s) of which
they are a part, provided the reason for the exemption remains valid
and necessary.
Dated: February 17, 2023.
Aaron T. Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2023-03744 Filed 2-22-23; 8:45 am]
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