[Federal Register: September 2, 2008 (Volume 73, Number 170)]
[Rules and Regulations]
[Page 51218-51221]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02se08-3]
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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:
http://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 http://
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 http://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 http://
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 http://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 http://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 http://www.regulations.gov. A direct link to the
appropriate docket is available on the TTB Web site at http://
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.
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* * * * *
(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