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                -                       the agency or agencies that issued and signed a document                    
                -                       the number of the CFR title and the number of each part                      the document amends, proposes to amend, or is directly                      related to                    
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###### Department of Defense

###### Defense Logistics Agency

          - 32 CFR Part 323
          - [Docket:  DoD-2006-OS-0022] 
          - RIN 0790-AI00

# AGENCY:

Defense Logistics Agency.

# ACTION:

Proposed rule. 

# SUMMARY:

The Defense Logistics Agency (DLA) is proposing to update the DLA Privacy Act Program Rules, 32 CFR, part 323, by replacing the (k)(2) exemption with a (k)(5) exemption to more accurately describe the basis for exempting the records.

# DATES:

Comments must be received on or before October 10, 2006 to be considered by this agency.

# ADDRESSES:

You may submit comments, identified by docket number and or RIN number and title, by any of the following methods.
      - Federal eRulemaking Portal: http://www.regulations.gov.                          Follow the instructions for submitting comments.                    
      - Mail: Federal Docket Management System Office, 1160 Defense Pentagon, Washington, DC 20301-1160.

*Instructions:*                         All submissions received must include the agency Name and docket number or Regulatory Information Number (RIN) for this                         **Federal Register**                         document. The general policy for comments and other submissions from members of the public is to make these submissions available for public viewing on the Internet at                         *http://regulations.gov*                         as they are received without change, including any personal identifiers or  contact information.                    

# FOR FURTHER INFORMATION CONTACT:

Ms. Jody Sinkler at (703) 767-5045.

# SUPPLEMENTARY INFORMATION:

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

Accordingly, 32 CFR part 323 is proposed to be amended as follows:

# PART 323—DLA PRIVACY ACT PROGRAM

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

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

2. Appendix H to part 323 is amended by revising the current paragraphs a.1. through a.4. with the following:

# 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 identify 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                                   ( print page 46181)                                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: August 7, 2006.

C.R. Choate, 

Alternate OSD Federal Register Liaison Officer, Department of Defense.

[FR Doc. 06-6848 Filed 8-10-06; 8:45 am]

BILLING CODE 5001-06-M