[Federal Register Volume 71, Number 213 (Friday, November 3, 2006)]
[Rules and Regulations]
[Pages 64633-64634]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-18593]


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DEPARTMENT OF DEFENSE

Defense Logistics Agency

[Docket: DoD-2006-OS-0022]
RIN 0790-AI00

32 CFR Part 323


Privacy Act; Implementation

AGENCY: Defense Logistics Agency, DoD.

ACTION: Final rule.

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SUMMARY: The Defense Logistics Agency (DLA) is modifying its exemption 
rule for a system of records (S500.10, ``Personnel Security Files,'' 
(August 11, 2006, 71 FR 46201)) in its inventory of systems of records 
pursuant to the Privacy Act of 1974 (5 U.S.C. 552a), as amended.

EFFECTIVE DATE: December 4, 2006.

FOR FURTHER INFORMATION CONTACT: Ms. Jody Sinkler at (703) 767-5045.

SUPPLEMENTARY INFORMATION: The proposed rule was published on August 
11, 2006, at 71 FR 46180. No comments were received. The rule is 
therefore adopted as published below.

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

    It has been determined 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 of 
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 Act'' (5 U.S.C. Chapter 6)

    It has been determined 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)

    It has been determined 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''

    It has been determined that 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 
the 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''

    It has been determined that 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 323

    Privacy.


0
Accordingly, 32 CFR part 323 is amended as follows:

PART 323--DLA PRIVACY ACT PROGRAM

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1. The authority citation for 32 CFR part 323 continues to read as 
follows:

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


0
2. Appendix H to part 323 is amended by revising paragraphs a.1. 
through a.4. to read as follows:

[[Page 64634]]

Appendix H to Part 323--DLA Exemption Rules

    a. ID: S500.10 (Specific exemption).
    1. System name: Personnel Security Files.
    2. Exemption: Investigatory material compiled solely for the 
purpose of determining suitability, eligibility, or qualifications 
for Federal civilian employment, 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. Therefore, portions of this 
system may be exempt pursuant to 5 U.S.C. 552a(k)(5) from the 
following subsections of 5 U.S.C. 552a(c)(3), (d), and (e)(1).
    3. Authority: 5 U.S.C. 552a(k)(5).
    4. Reasons: (i) From subsection (c)(3) and (d) when access to 
accounting disclosures and access to or amendment of records would 
cause the identity of a confidential source to be revealed. 
Disclosure of the source's identity not only will result in the 
Department breaching the promise of confidentiality made to the 
source but it will impair the Department's future ability to compile 
investigatory material for the purpose of determining suitability, 
eligibility, or qualifications for Federal civilian employment, 
Federal contracts, or access to classified information. Unless 
sources can be assured that a promise of confidentiality will be 
honored, they will be less likely to provide information considered 
essential to the Department in making the required determinations.
    (ii) From (e)(1) because in the collection of information for 
investigatory purposes, it is not always possible to determine the 
relevance and necessity of particular information in the early 
stages of the investigation. In some cases, it is only after the 
information is evaluated in light of other information that its 
relevance and necessity becomes clear. Such information permits more 
informed decision-making by the Department when making required 
suitability, eligibility, and qualification determinations.
* * * * *

    Dated: October 30, 2006.
C.R. Choate,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
 [FR Doc. E6-18593 Filed 11-2-06; 8:45 am]
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