[Federal Register Volume 63, Number 9 (Wednesday, January 14, 1998)]
[Rules and Regulations]
[Pages 2171-2172]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-757]


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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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