[Federal Register Volume 77, Number 18 (Friday, January 27, 2012)]
[Notices]
[Pages 4277-4278]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-1804]


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DEPARTMENT OF COMMERCE

Bureau of the Census

[Docket Number 120103003-1757-01]


Proposed Data Sharing Activity

AGENCY: Bureau of the Census, Department of Commerce.

ACTION: Notice and request for public comment.

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SUMMARY: The U.S. Bureau of the Census (Census Bureau) of the 
Department of Commerce proposes to share business data for statistical 
purposes. More specifically, the Census Bureau will share selected 
business data of multi-location businesses with the U.S. Bureau of 
Labor Statistics (BLS) of the Department of Labor. In accordance with 
the requirement of Section 524(d) of the Confidential Information 
Protection and Statistical Efficiency Act of 2002, we are providing the 
opportunity for public comment on this data sharing action. Through the 
use of these shared data, BLS will use the Census Bureau's multi-
location company data to achieve efficiencies in the maintenance of its 
universe list of U.S. businesses. The BLS employees and agents who will 
have access to the Census Bureau data protected by the confidentiality 
provisions of Title 13 are required to obtain Census Bureau Sworn 
Special Status. These BLS employees and agents must have suitable 
background clearance and must complete an annual Title 13 Awareness 
Training.

DATES: Written comments must be submitted on or before March 27, 2012.

ADDRESSES: Direct all written comments on this proposed program to the 
Director, U.S. Census Bureau, Room 8H001, Mail Stop 0100, Washington, 
DC 20233.

FOR FURTHER INFORMATION CONTACT: Shirin A. Ahmed, Assistant Director 
for Economic Programs; Room 8K108, U.S. Census Bureau, Washington, DC 
20233; phone (301) 763-2558; or email [email protected].

SUPPLEMENTARY INFORMATION: 

Introduction

    The Confidential Information Protection and Statistical Efficiency 
Act of 2002 (CIPSEA) (Pub. L. 107-347, sections 501-526, 44 U.S.C. 3501 
note), and 13 U.S.C. 402 allow the Census Bureau to share business data 
for statistical purposes with the BLS. Section 524(d) of CIPSEA 
requires public notice of the intent to share data (allowing 60 days 
for public comment), whenever the data to be shared were collected 
through mandatory reporting, and the respondents were not informed that 
the data could be shared among the statistical agencies. Section 524 
also requires the Census Bureau to provide information about the terms 
of the written data sharing agreement. The following are covered in 
this notice:
     Background;
     Data items to be shared with BLS;
     Improvement or creation of products by use of data for 
statistical purposes; and
     Legal authority regarding confidentiality and data access.

Background

    Both the Census Bureau and the BLS compile and maintain their own, 
separate comprehensive lists of active U.S. businesses called universe 
lists. The Census Bureau and BLS universe lists are similar in content, 
and are costly for the government to maintain. The lists can also be 
burdensome on businesses that are required to respond to multiple 
surveys. However, these lists are critical to the quality of source 
data and the timely preparation of many key indicators of U.S. economic 
performance.
    The Census Bureau and the BLS can achieve major qualitative 
enhancements and cost efficiencies through increased data sharing. 
Specifically, the sharing of these data will allow the two bureaus to 
develop consistent industry classifications of establishments and 
companies and improve multi-location coverage, thus improving the 
comparability and accuracy of Federal economic statistics.
    In the 2002 Economic Report of the President, the Council of 
Economic Advisers noted the critical need for reliable statistical 
data, and stated that expanded sharing among Federal statistical 
agencies would increase data quality. In an October 2005 Workshop on 
the Benefits of Interagency Business Data Sharing sponsored by the 
National Research Council, representatives of several agencies 
advocated an increase of business data sharing among Federal 
statistical agencies. Moreover, subsection 521(a) of CIPSEA finds that 
enhanced sharing of business data among these three Federal statistical 
agencies will improve their ability to track the large and rapidly 
changing nature of U.S. business more accurately. Consequently, section 
522 of CIPSEA authorizes the sharing of business data among three 
designated statistical agencies--the Census Bureau, the BLS, and the 
Department of Commerce's Bureau of Economic Analysis (BEA). In 
addition, section 523 of CIPSEA mandates that heads of these agencies 
identify opportunities to eliminate duplication, reduce reporting 
burdens and costs imposed on the public in providing information for 
statistical purposes, and enter into joint statistical projects to 
improve the quality and reduce the cost of statistical programs.
    Over the past several years, the Census Bureau and the BLS have 
conducted comprehensive research to evaluate each other's business 
lists and to analyze opportunities to improve each list through 
increased data sharing. This research confirms that data sharing not 
only will improve the comparability and accuracy of Federal economic 
statistics, but will also produce efficiencies.

Data Items To Be Shared With BLS

    The BLS will benefit from selected multi-location data, which 
already exists in the Census Bureau's Business Register. The Business 
Register combines administrative data with Census-collected information 
to produce a comprehensive business universe list. Data from the 5-hear 
Economic Censuses and the annual Company Organization Survey (COS) 
provide much of the organizational, structural, and establishment-level 
data for multi-lation companies. The Economic Census also provides 
precise industrial classifications based on the value of product and/or 
service outputs. The Census Bureau carries out a separate data 
collection regarding multi-location companies, because administrative 
records do not identify the relationship among multi-location companies 
and their affiliated Employer Identification Number (EIN) entities and 
establishments. All of these Census Bureau data are collected under the 
provisions of Title 13 of the United States Code, sections 182, 195, 
224, and 225.
    The Census Bureau will furnish the BLS with several categories of 
multi-location company data:
     North American Industry Classification System (NAICS) 
codes and associated multi-location information, including the business 
name and address; state, county, and place geocodes; EINs; the source 
of the NAICS codes; first quarter employment; and first quarter and 
annual payroll.
     Enterprise linkages for multi-location companies, 
including the EINs

[[Page 4278]]

and establishment-level linkages for multi-location companies across 
states.
     Product-level codes from the Economic Census and other 
economic programs.
     Non-profit indicators from the Economic Census.
     Foreign-ownership information from the Economic Census and 
the COS, including the names, addresses, and EINs of multi-location 
companies with indications of foreign ownership, together with the 
foreign country codes.
    The Census Bureau will provide only data that are free of Federal 
Tax Information.

Improvement or Creation of Products by Use of Data for Statistical 
Purposes

    The BLS will use these shared data exclusively for authorized 
statistical purposes, as defined in section 502(9) of CIPSEA. As a 
result, a number of benefits will accrue to the Federal government from 
this data-sharing initiative. These benefits include the improvement of 
existing data products or creation of new data products. For example, 
the sampling frames for BLS' Producer Price Index and International 
Price Program can be enhanced. The BLS will use the Census Bureau's 
product-level codes and the associated data to augment the sampling 
frames and improve sampling strategies of these two programs.
    The comparability and accuracy of Federal economic statistics will 
be improved, through the use of more consistent industry 
classifications. In addition, certain statistical products such as BLS' 
Business Establishment List will benefit from improved coverage 
provided by the additional Census Bureau data. The BEA will also 
benefit from more consistent macroeconomic statistics provided by the 
Census Bureau and the BLS in conducting its national accounts programs.

Legal Authority Regarding Confidentiality and Data Access

    The sharing of confidential Census Bureau business data is 
authorized under Title 13, U.S.C., sections 8(b), 23(c), and 402; and 
CIPSEA. The Census Bureau data are confidential under Title 13, U.S.C., 
sections 9 and 214. The BLS data are protected under CIPSEA, Subtitle 
A; the Trade Secrets Acts, 18 U.S.C., section 1905, and BLS 
Commissioner's Order No. 1-06, ``Confidential Nature of BLS Statistical 
Data.''
    Subtitle A of CIPSEA addresses confidential information protection 
afforded data that are acquired by Federal agencies for exclusively 
statistical purposes under a pledge of confidentiality. In accordance 
with the requirements of section 512 of CIPSEA, the BLS will use the 
shared data, which was acquired under a pledge of confidentiality, for 
exclusively statistical purposes. BLS will ensure that all confidential 
data will be protected and will be accessible only to authorized 
personnel with a work-related ``need to know.''
    In addition, the BLS employees and agents who will have authorized 
access to confidential Census Bureau data are required to obtain Census 
Bureau Sworn Special Status. They will be sworn to observe the 
provisions of Title 13, U.S.C., section 9, and will be advised of the 
penalties for improper disclosure under Title 13, U.S.C., section 214, 
and section 513 of CIPSEA. Under both provisions, the penalties are 
imprisonment for no more than five years, a fine of no more than 
$250,000, or both. These BLS employees and agents must also have 
suitable background clearances and must complete an annual Title 13 
Awareness Training.
    To ensure the adequate safeguarding of confidential business data, 
the Census Bureau will also conduct annual security reviews. The BLS 
will permit access for the purpose of conducting these reviews by 
appropriately sworn employees.
    Pursuant to section 524(d) of CIPSEA, the Census Bureau and BLS 
intend to enter into a written agreement for this data sharing action, 
after taking into consideration comments received in response to this 
notice.

    Dated: January 23, 2012.
Robert M. Groves,
Director, Bureau of the Census.
[FR Doc. 2012-1804 Filed 1-26-12; 8:45 am]
BILLING CODE 3510-07-P