[Federal Register: January 18, 2008 (Volume 73, Number 13)]
[Proposed Rules]               
[Page 3410-3411]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18ja08-11]                         

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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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[[Page 3410]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 293

RIN 3260-AL24

 
Personnel Records

AGENCY: Office of Personnel Management.

ACTION: Proposed rule with request for comments.

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SUMMARY: The Office of Personnel Management is issuing proposed 
regulations to achieve a consistent and effective policy for the use of 
Social Security Numbers by Federal agencies to combat fraud and 
identity theft. Federal agencies must reduce the threat of identity 
theft by eliminating the unnecessary use and collection of Social 
Security Numbers. This proposed regulation imposes significant 
restrictions on the use of Social Security Numbers throughout the 
Federal Government and is consistent with the recommendations made by 
the President's Identity Theft Task Force.

DATES: Comments must be received on or before March 18, 2008.

ADDRESSES: Send or deliver written comments to the Deputy Associate 
Director for Workforce Information and System Requirements, Strategic 
Human Resources Policy Division, Office of Personnel Management, Room 
7439, 1900 E Street, NW., Washington, DC 20415-8200; by fax at (202) 
606-4891.

FOR FURTHER INFORMATION CONTACT: Leroy McKnight, by telephone at (202) 
606-4054; by fax at (202) 606-1719; or by e-mail at 
Leroy.Mcknight@opm.gov.


SUPPLEMENTARY INFORMATION: In an effort to better protect sensitive 
personal information, particularly Social Security Numbers (SSNs), 
Federal agencies must take immediate action to restrict the unnecessary 
use of this important personal identifier. Continued exposure of 
individuals' SSNs increases their vulnerability to identity theft and 
other harmful situations. While some Federal agencies have taken steps 
to reduce the use of SSNs in certain functions, inconsistencies in 
approaches and standards for protecting the SSN creates a risk that can 
lead to misuse. The Office of Personnel Management (OPM) has been 
working with the President's Identity Theft Task Force and the agencies 
on a number of identity theft protection initiatives, and was tasked 
with issuing formal guidance to the agencies on the appropriate ways to 
restrict the use, and conceal the SSNs in employee records and human 
resources information systems. OPM issued formal guidance to the 
Federal Chief Human Capital Officers on June 18, 2007, to help agencies 
achieve a consistent and effective policy for safeguarding the Social 
Security Numbers of Federal employees. A copy of the guidance package 
can be obtained by going to http://www.chcoc.gov. These proposed 

regulations are intended to update OPM's regulations governing 
personnel records so they are consistent with that guidance. These 
proposed regulations impose significant restrictions on the use of 
SSNs, leading to enhanced protection of sensitive personal information. 
Applying the guidance and regulations is a first step in protecting the 
personal identity of Federal employees.
    Efforts are underway to develop requirements for a new Government-
wide employee identifier which will replace the Social Security Number 
as the primary employee identifier. Once this new employee identifier 
is established, Federal agencies will have a viable alternative to the 
use of SSNs in their business activities. The use of this new employee 
identifier as a substitute for the SSN would diminish the risk of 
identity theft by eliminating the unnecessary use of the SSN as an 
employee identifier in many situations.
    OPM is proposing the following specific changes, which we believe 
will assist Federal agencies in their efforts to combat fraud and 
identity theft:
    In Sec.  293.102 we are proposing to add definitions of Exposure, 
and Primary Key, which are new terms used in the proposed regulations.
    In Sec.  293.105, which addresses restrictions on collection and 
use of information, we propose to add paragraphs (b)(3) through (13). 
These new paragraphs provide agencies with specific information on the 
appropriate and inappropriate use of employee Social Security Numbers 
in employee records and human resources information systems.
    OPM also proposes to add paragraphs (a)(8) through (10) to Sec.  
293.107, which requires special safeguards for automated records. The 
additional paragraphs will ensure that agencies know what they must do 
to improve their data security measures. These safeguards pertain 
specifically to improving the protection of employee Social Security 
Numbers.

E.O. 12866, Regulatory Review

    This rule has been reviewed by the Office of Management and Budget 
in accordance with E.O. 12866.

Regulatory Flexibility Act

    I certify that these regulations would not have a significant 
economic impact on a substantial number of small entities because they 
would apply only to Federal agencies and employees.

List of Subjects in 5 CFR Part 293

    Government employees, Privacy, Records.

Office of Personnel Management.
Linda M. Springer,
Director.
    Accordingly, OPM proposes to amend 5 CFR part 293 as follows:

PART 293--PERSONNEL RECORDS

    1. The authority citation for part 293 is revised to read as 
follows:

    Authority: 5 U.S.C. 552, 552a, 1103, 1104, 1302, 2951(2), 3301, 
and 4315; E.O. 12107 (December 28, 1978), 3 CFR 1954-1958 Comp.; 5 
CFR 7.2; E.O. 9830; 3 CFR 1943-1948 Comp.

Subpart A--Basic Policies on Maintenance of Personnel Records

    2. In Sec.  293.102 the definitions of Exposure and Primary Key are 
added in alphabetical order as follows:


Sec.  293.102  Definitions.

* * * * *
    Exposure means the unprotected display, storage, and transmission 
of personally identifiable information (PII), e.g., Social Security 
Numbers;
* * * * *
    Primary Key means a particular item chosen to uniquely identify a 
specific individual or to associate information

[[Page 3411]]

with a specific individual in an automated environment;
* * * * *
    3. In Sec.  293.105, paragraphs (b)(3) through (13) are added to 
read as follows:


Sec.  293.105  Restrictions on collection and use of information.

* * * * *
    (b) * * *
    (3) If Social Security Numbers are collected, they will be 
collected only at the time of the employee's appointment to be entered 
into the human resources and payroll systems. The collection tool (if 
paper-based) will be stored in a protected location to guard against 
exposure until it is no longer required. The Guide to Personnel 
Recordkeeping will be used to determine retention requirements for 
certain paper-based collection tools. Disposal of all paper-based 
collection tools (i.e., forms, letters, and other correspondence) will 
be in accordance with the General Record Schedule issued by the 
National Archives and Records Administration.
    (4) Agencies may not use the Social Security Number as an 
employee's primary key, i.e., unique identifier, in internal or 
external data processing activities.
    (5) Agencies must ensure that Social Security Numbers are not 
printed, e.g., on forms, or reports, or displayed on computer display 
screens.
    (6) Access to Social Security Numbers must be restricted to those 
individuals whose official duties require such access. A listing of all 
individuals with access authorization based on legitimate business 
needs must be maintained and reviewed for continued applicability.
    (7) Agencies must ensure, through appropriate annual training and 
educational programs, including training on Privacy Act and Freedom of 
Information Act requirements, that those individuals who are authorized 
to access Social Security Numbers understand their responsibility to 
protect sensitive and personal information. This responsibility 
includes securing this information when working from home or another 
remote location.
    (8) Agencies must use privacy and confidentiality statements that 
describe accountability clearly and warn of possible disciplinary 
action for unauthorized release of the Social Security Number and other 
personally identifiable information. These statements must be signed by 
all individuals who have access to Social Security Numbers.
    (9) Agencies must ensure their telework policies and written 
agreements are in compliance with Federal privacy protection policies, 
including policies governing protection of personally identifiable 
information, e.g., Social Security Numbers.
    (10) Agencies must require supervisory approval before authorized 
individuals may access, transport, or transmit information containing a 
Social Security Number outside of the agencies' facilities. Electronic 
records containing Social Security Numbers must be transported or 
transmitted in an encrypted or protected format as prescribed in all 
established guidance regarding the protection of sensitive agency 
information. Paper-based records containing Social Security Numbers 
must be transported in wheeled containers, portfolios, briefcases, or 
similar devices that can be locked when not in use. In addition, these 
containers must be identifiable by tag or decal with contact and 
mailing address information.
    (11) Agencies must ensure access to Social Security Numbers, 
including access involving data entry, printing, and screen displays, 
occurs in a protected location to guard against exposure.
    (12) Agencies must ensure all security incidents involving 
personally identifiable information, especially Social Security 
Numbers, are reported in accordance with all established guidance 
regarding the reporting of incidents involving personally identifiable 
information. In addition, agencies must inform all employees of all 
established incident reporting requirements annually.
    (13) Agencies must ensure all authorized disclosures of information 
containing Social Security Numbers and other personally identifiable 
data are made in accordance with established regulations and 
procedures.
    4. In Sec.  293.107, paragraphs (a)(8) through (10) are added to 
read as follows:


Sec.  293.107  Special safeguards for automated records.

    (a) * * *
    (8) Minimize the risk of unauthorized disclosure of Social Security 
Numbers during data entry activities by concealing the Social Security 
Number on the screens.
    (9) Assure adequate internal control procedures to properly monitor 
authorized and unauthorized access to Social Security Numbers and other 
personally identifiable data.
    (10) Assure all Social Security Number safeguards and protection 
rules are enforced in both test and production environments.
* * * * *
 [FR Doc. E8-858 Filed 1-17-08; 8:45 am]

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