Privacy Act; Implementation

DEPARTMENT OF TRANSPORTATION

Office of the Secretary

49 CFR Part 10

[Docket No. OST-96-1472]

RIN 2105-AC60

Privacy Act; Implementation

AGENCY: Office of the Secretary, DOT.

ACTION: Final rule.

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SUMMARY: DOT amends its rules implementing the Privacy Act of 1974 to

exempt from certain provisions of the Act the Coast Guard's Vessel

Identification System.

EFFECTIVE DATE: This amendment is effective February 13, 1998.

FOR FURTHER INFORMATION CONTACT: Robert I. Ross, Office of the General

Counsel, C-10, Department of Transportation, Washington, DC 20590,

telephone (202) 366-9156, FAX (202) 366-9170.

SUPPLEMENTARY INFORMATION:

Regulatory History

On October 24, 1997, the Department published a notice of proposed

rulemaking entitled, Privacy Act; Implementation in the Federal

Register (62 FR 55380). The Department did not receive any comments on

the proposed rulemaking. DOT is therefore making its proposal final as

written. The Department is correcting an editorial error in the name of

the system. The notice of proposed rulemaking termed the system the

``Vessel Information System,'' and the correct name of the system is

the ``Vessel Identification System.''

Background

The Coast Guard's Vessel Identification System (VIS) will collect

selected information on vessels operating in US waters, and will

collect and manage the data needed to provide a nationwide pool of

vessel and vessel owner information that will help in identification

and recovery of stolen vessels, and deter vessel theft and fraud.

Establishment of VIS is required by statute. 46 U.S.C. 12501-07.

Because of the capability to retrieve information by the names or

other unique identifiers of individuals, VIS is subject to the Privacy

Act, which imposes many restrictions on the use and dissemination of

information in the system. However, because VIS is to be used for law

enforcement purposes, it may be exempted from some of these

restrictions.

The Coast Guard, via a rulemaking entitled Vessel Identification

System (CGD 89-050), has established the guidelines for participating

states to make their information available for VIS, as well as the

guidelines to establish the procedures for state vessel titling

systems, and the procedures for establishing compliance. An interim

rule was published in the Federal Register on April 25, 1996 (60 FR

20310), and the comment period on the interim rule was reopened on

October 20, 1997 (62 FR 54385).

Privacy Act Exemption

Under subsection (k) of the Privacy Act (5 U.S.C. 552a(k)),

qualifying records may be exempted from various provisions of the Act.

Among these provisions are the requirement in subsection (c)(3) to

maintain an accounting of disclosures of information from a system of

records and make that accounting available on request to the record

subject; in subsection (d) to grant to a record subject access to

information maintained on him/her under the Act; in subsection (e)(1)

to maintain only such information as is relevant and necessary to

accomplish a purpose of the agency under statute or Executive Order; in

subsection (e)(4) (G), (H), and (I) to advise record subjects of the

agency procedures to request if a system of records contains records

pertaining to them, how they can gain access to such records and

contest their content, and the categories of sources of such records;

and in subsection (f) to establish rules governing the procedures

above.

Under Subsection (k)(2) of the Privacy Act (5 U.S.C. 552a(k)(2)),

investigatory material compiled for law enforcement purposes, other

than material encompassed within Subsection (j)(2), may be exempted

from these provisions, and DOT proposes to exempt VIS accordingly;

however, if an individual would be denied any right, privilege, or

benefit to which he/she would otherwise be entitled by Federal law, or

for which he/she would otherwise be eligible, as a result of the

maintenance of such material, such material shall be provided to such

individual, except to the extent that the disclosure of such material

would reveal the identity of a source who furnished information to the

Government under an express promise that the identity of the source

would be held in confidence.

Analysis of Regulatory Impacts

This rule is not a ``significant regulatory action'' within the

meaning of Executive Order 12866. It is also not significant within the

definition in DOT's Regulatory Policies and Procedures, 49 FR 11034

(1979), in part because it does not involve any change in important

Departmental policies. Because the economic impact should be minimal,

further regulatory evaluation is not necessary. Moreover, I certify

that this rule will not have a significant economic impact on a

substantial number of small entities; it applies only to information on

individuals.

This rule does not significantly affect the environment, and

therefore an environmental impact statement is not required under the

National Environmental Policy Act of 1969. It has also been reviewed

under Executive Order 12612, Federalism, and it has been determined

that it does not have sufficient implications for federalism to warrant

preparation of a Federalism Assessment. This rule does not impose any

unfunded mandates as defined by the Unfunded Mandates Reform Act of

1995.

Finally, this rule does not contain any collection of information

requirements requiring review under the Paperwork Reduction Act of

1995.

List of Subjects in 49 CFR Part 10

Penalties, Privacy.

Accordingly, DOT amends 49 CFR Part 10 as follows:

PART 10--[AMENDED]

1. The authority citation to Part 10 remains as follows:

[[Page 2172]]

Authority: 5 U.S.C. 552a; 49 U.S.C. 322.

2. Part II.A of the Appendix is amended by republishing the

introductory text and adding a new paragraph 15, to read as follows:

* * * * *

Appendix to Part 10--Exemptions

* * * * *

Part II. Specific exemptions.

A. The following systems of records are exempt from subsection

(c)(3) (Accounting of Certain Disclosures), (d) (Access to Records),

(e)(4) (G), (H), and (I) (Agency Requirements), and (f) (Agency Rules)

of 5 U.S.C. 552a, to the extent that they contain investigatory

material compiled for law enforcement purposes in accordance with 5

U.S.C. 552a(k)(2):

* * * * *

15. Vessel Identification System, maintained by the Operations

Systems Center, U.S. Coast Guard (DOT/CG 590). The purpose of this

exemption is to prevent persons who are the subjects of criminal

investigations from learning too early in the investigative process

that they are subjects, what information there is in Coast Guard files

that indicates that they may have committed unlawful conduct, and who

provided such information.

* * * * *

Issued in Washington, DC, on January 5, 1998.

Rodney E. Slater,

Secretary of Transportation.

[FR Doc. 98-757 Filed 1-13-98; 8:45 am]

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