[Federal Register Volume 66, Number 154 (Thursday, August 9, 2001)]
[Rules and Regulations]
[Pages 41783-41784]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-19816]


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DEPARTMENT OF DEFENSE

32 CFR Part 326


NRO Privacy Act Program

AGENCY: National Reconnaissance Office, DOD.

ACTION: Final Rule.

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SUMMARY: The National Reconnaissance Office (NRO) is adding a new 
responsibility for NRO employees under the NRO Privacy Act Program. NRO 
employees are now required to participate in specialized Privacy Act 
training should their duties require dealing with special 
investigators, the news media, or the public.
    In addition, NRO is exempting a Privacy Act system of records. The 
system of records is QNRO-23, Counterintelligence Issue Files. The 
exemptions are intended to increase the value of the systems of records 
for law enforcement purposes, to comply with prohibitions against the 
disclosure of certain kinds of information, and to protect the privacy 
of individuals identified in the systems of records.

EFFECTIVE DATE: March 9, 2001.

ADDRESSES: National Reconnaissance Office, Information Access and 
Release Center, 14675 Lee Road, Chantilly, VA 20151-1715.

FOR FURTHER INFORMATION CONTACT: Ms. Barbara Freimann at (703) 808-
5029.

SUPPLEMENTARY INFORMATION:  The proposed rules were published on 
September 6, 2000, at 65 FR 53962, and on January 8, 2001, at 66 FR 
1280, respectively. No comments were received for either proposed rule.

Executive Order 12866, ``Regulatory Planning and Review''

    The Director of Administration and Management, Office of the 
Secretary of Defense, hereby determines that Privacy Act rules for the 
Department of Defense are not significant rules. The rules do not (1) 
Have an annual effect on the economy of $100 million or more or 
adversely affect in a material way the economy; a sector of the 
economy; productivity; competition; jobs; the environment; public 
health or safety; or State, local, or tribal governments or 
communities; (2) Create a serious inconsistency or otherwise interfere 
with an action taken or planned by another Agency; (3) Materially alter 
the budgetary impact or entitlements, grants, user fees, or loan 
programs, or the rights and obligations of recipients thereof; or (4) 
Raise novel legal or policy issues arising out of legal mandates, the 
President's priorities, or the principles set forth in this Executive 
order.

Public Law 96-354, ``Regulatory Flexibility'' (5 U.S.C. Chapter 6)

    The Director of Administration and Management, Office of the 
Secretary of Defense, hereby certifies that Privacy Act rules for the 
Department of Defense do not have significant economic impact on a 
substantial number of small entities because they are concerned only 
with the administration of Privacy Act systems of records within the 
Department of Defense.

Public Law 96-511, ``Paperwork Reduction Act'' (44 U.S.C. Chapter 
35)

    The Director of Administration and Management, Office of the 
Secretary of Defense, hereby certifies that Privacy Act rules for the 
Department of Defense impose no information requirements beyond the 
Department of Defense and that the information collected within the 
Department of Defense is necessary and consistent with 5 U.S.C. 552a, 
known as the Privacy Act of 1974.

Section 202, Public Law 104-4, ``Unfunded Mandates Reform Act''

    The Director of Administration and Management, Office of the 
Secretary of Defense, hereby certifies that the Privacy Act rulemaking 
for the Department of Defense does not involve a Federal mandate that 
may result in the expenditure by State, local and tribal governments, 
in aggregate, or by the private sector, of $100 million or more and 
that such rulemaking will not significantly or uniquely affect small 
governments.

Executive Order 13132, ``Federalism''

    The Director of Administration and Management, Office of the 
Secretary of Defense, hereby certifies that the Privacy Act rules for 
the Department of Defense do not have federalism implications. The 
rules do not have substantial direct effects on the States, on the 
relationship between the National Government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government.

List of Subjects in 32 CFR Part 326

    Privacy.

    1. The authority citation for 32 CFR part 326 continues to read as 
follows:

    Authority: Pub. L. 93-579, 88 Stat. 1896 (5 U.S.C. 552a).


    2. Section 326.5 is amended by adding paragraph (j)(11) to read as 
follows:


Sec. 326.5  Responsibilities.

* * * * *
    (j) Employees, NRO:
* * * * *
    (11) Will participate in specialized Privacy Act training should 
their duties require dealing with special investigators, the news 
media, or the public.
* * * * *

    3. Section 326.17 is amended by adding paragraph (e) to read as 
follows;


Sec. 326.17  Exemptions.

* * * * *
    (e) QNRO-23
    (1) System name: Counterintelligence Issue Files.
    (2) Exemptions: (i) Investigatory material compiled for law 
enforcement purposes may be exempt pursuant to 5 U.S.C. 552a(k)(2). 
However, if an individual is denied any right, privilege, or benefit 
for which he would otherwise be entitled by Federal law or for which he 
would otherwise be eligible, as a result of the maintenance of such 
information, the individual will be provided access to such information 
except to the extent that disclosure would reveal the identity of a 
confidential source.
    (ii) Investigatory material compiled solely for the purpose of 
determining suitability, eligibility, or qualifications for federal 
civilian employment, military service, federal contracts, or access to 
classified information may be exempt pursuant to 5 U.S.C. 552a(k)(5), 
but only to the extent that such material would reveal the identity of 
a confidential source.
    (iii) Therefore, portions of this system of records may be exempt 
pursuant to 5 U.S.C. 552a(k)(2) and/or (k)(5) from the following 
subsections of 5 U.S.C. 552a(c)(3), (d), (e)(1), (e)(4)(G), (H) and 
(I), and (f).
    (3) Authority: 5 U.S.C. 552a(k)(2) and (k)(5).
    (4) Reasons: (i) From subsection (c)(3) because to grant access to 
the accounting for each disclosure as required by the Privacy Act, 
including the date, nature, and purpose of each disclosure and the 
identity of the recipient, could alert the subject to the

[[Page 41784]]

identity of the recipient, could alert the subject to the existence of 
the investigation or prosecutable interest by NRO or other agencies. 
This could seriously compromise case preparation by prematurely 
revealing its existence and nature; compromise or interfere with 
witnesses or make witnesses reluctant to cooperate; and lead to 
suppression, alteration, or destruction of evidence.
    (ii) From subsections (d)(1) through (d)(4), and (f) because 
providing access to records of a civil or administrative investigation 
and the right to contest the contents of those records and force 
changes to be made to the information contained therein would seriously 
interfere with and thwart the orderly and unbiased conduct of the 
investigation and impede case preparation. Providing access rights 
normally afforded under the Privacy Act would provide the subject with 
valuable information that would allow interference with or compromise 
of witnesses or render witnesses reluctant to cooperate; lead to 
suppression, alteration, or destruction of evidence; enable individuals 
to conceal their wrongdoing or mislead the course of the investigation; 
and result in the secreting of or other disposition of assets that 
would make them difficult or impossible to reach in order to satisfy 
any Government claim growing out of the investigation or proceeding.
    (iii) From subsection (e)(1) because it is not always possible to 
detect the relevance or necessity of each piece of information in the 
early stages of an investigation. In some cases, it is only after the 
information is evaluated in light of other evidence that its relevance 
and necessity will be clear.
    (iv) From subsections (e)(4)(G) and (H) because this system of 
records is compiled for law enforcement purposes and is exempt from the 
access provisions of subsections (d) and (f).
    (v) From subsection (e)(4)(I) because to the extent that this 
provision is construed to require more detailed disclosure than the 
broad, generic information currently published in the system notice, an 
exemption from this provision is necessary to protect the 
confidentiality of sources of information and to protect privacy and 
physical safety of witnesses and informants. NRO will, nevertheless, 
continue to publish such a notice in broad generic terms as is its 
current practice.
    (vi) Consistent with the legislative purpose of the Privacy Act of 
1974, the NRO will grant access to nonexempt material in the records 
being maintained. Disclosure will be governed by NRO's Privacy 
Regulation, but will be limited to the extent that the identity of 
confidential sources will not be compromised; subjects of an 
investigation of an actual or potential criminal violation will not be 
alerted to the investigation; the physical safety of witnesses, 
informants and law enforcement personnel will not be endangered, the 
privacy of third parties will not be violated; and that the disclosure 
would not otherwise impede effective law enforcement. Whenever 
possible, information of the above nature will be deleted from the 
requested documents and the balance made available. The controlling 
principle behind this limited access is to allow disclosures except 
those indicated above. The decisions to release information from these 
systems will be made on a case-by-case basis.

    Dated: August 1, 2001.
L.M. Bynum,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 01-19816 Filed 8-8-01; 8:45 am]
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