[Federal Register Volume 84, Number 186 (Wednesday, September 25, 2019)]
[Notices]
[Pages 50476-50477]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-20843]


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DEPARTMENT OF LABOR

Employment and Training Administration


Federal-State Unemployment Compensation Program: Notice of 
Federal Agencies With Adequate Safeguards and an Appropriate Method of 
Payment or Reimbursement To Satisfy the Confidentiality Requirements of 
Agency Regulations

AGENCY: Employment and Training Administration, Labor.

ACTION: Notice of Federal agencies with adequate safeguards and an 
appropriate method of payment or reimbursement for costs.

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SUMMARY: In this notice, the Department of Labor (Department) 
recognizes that the exchange of information between State unemployment 
compensation (UC) agencies and the Internal Revenue Service (IRS) and 
the exchange of information between State UC agencies and the 
Department of Health and Human Services (HHS) meet the requirements of 
agency regulations. The Department has determined that the relative 
benefits of information received by State UC agencies from the IRS and 
the benefits of the information received by the IRS from State UC 
agencies are approximately equal. The Department has also determined 
that the relative benefits of information received by State UC agencies 
from HHS and the benefits of the information received by HHS from State 
UC agencies are approximately equal. Pursuant to this determination, it 
is not necessary for State UC agencies to satisfy the agreement 
requirements of agency regulations for the disclosure of confidential 
UC information to these two Federal agencies.

FOR FURTHER INFORMATION CONTACT: Gay M. Gilbert, Administrator, Office 
of Unemployment Insurance, Employment and Training Administration, 
(202) 693-3029 (this is not a toll-free number) or 1-877-889-5627 
(TTY), or by email at [email protected].

SUPPLEMENTARY INFORMATION: The Employment and Training Administration 
interprets Federal law requirements pertaining to the Federal-State UC 
program. Section 303(a)(1) of the Social Security Act, as implemented 
at 20 CFR part 603 (71 FR 56830), generally requires States to maintain 
the confidentiality of UC information. The regulation at 20 CFR 603.10 
requires State UC agencies to enter into a written, enforceable 
agreement meeting certain requirements with any agency or entity 
requesting disclosure of such confidential UC information.
    20 CFR 603.10(d) provides that the requirements of 20 CFR 603.10 do 
not apply to disclosures of confidential UC information to a Federal 
agency if the Department has determined, by notice published in the 
Federal Register, that the Federal agency has in place safeguards 
adequate to satisfy the requirements of 20 CFR 603.9 and an appropriate 
method of paying or reimbursing the State UC agency (which may involve 
a reciprocal cost arrangement) for costs involved in such disclosures 
as required in 20 CFR 603.8(d).
    On November 15, 2006, the Department published notice in the 
Federal Register of its determination that the IRS has in place 
adequate safeguards for purposes of tax administration, including 
administration of the Federal unemployment tax and the Health Coverage 
Tax Credit (HCTC). 71 FR 66556. Section 6103 et seq. of the Internal 
Revenue Code, 26 U.S.C. 6103 et seq., provides safeguards adequate to 
satisfy confidentiality requirements consistent with the Department's 
regulation. State UC agencies and the IRS exchange confidential UC 
information for purposes of the proper administration of the Federal 
unemployment tax and the HCTC, as well as the Questionable Employment 
Tax Practices initiative. With the current notice, the Department 
recognizes that the exchange of information between State UC agencies 
and the IRS for these purposes meets the requirements of 20 CFR 
603.8(d)

[[Page 50477]]

because the relative benefits received by each are approximately equal.
    The Department's November 15, 2006, notice also included its 
determination that wage and claim information disclosed to HHS for 
purposes of the National Directory of New Hires (NDNH) is protected by 
a ``security plan'' that provides safeguards adequate to meet the 
requirements of 20 CFR 603.9. 71 FR 66556. Laws governing information 
in the NDNH impose strict controls on redisclosure and disposal of 
information. See, e.g., 42 U.S.C. 653(i), (j), (l), and (m). HHS 
provides NDNH information on reported new hire dates, which State UC 
agencies use to conduct cross matches to identify potential improper UC 
payments to individuals who have returned to work or failed to report 
earnings. With the current notice, the Department recognizes that the 
exchange of information between State UC agencies and HHS for these 
purposes meets the requirements of 20 CFR 603.8(d) because the relative 
benefits received by each are approximately equal.
    This notice is published to inform the public of the Department's 
determination that it is not necessary for State UC agencies to satisfy 
the agreement requirements of 20 CFR 603.10 for the disclosure of 
confidential UC information to these two Federal agencies.

John Pallasch,
Assistant Secretary for Employment and Training.
[FR Doc. 2019-20843 Filed 9-24-19; 8:45 am]
 BILLING CODE 4510-FW-P