### 46653 Federal Register / Vol. 77, No. 151 / Monday, August 6, 2012 / Proposed Rules

Maintain or analyze the functioning of the Web site or online service; (b) perform network communications; (c) authenticate users of, or personalize the content on, the Web site or online service; (d) serve contextual advertising on the Web site or online service; (e) protect the security or integrity of the user, Web site, or online service; or (f) fulfill a request of a child as permitted by §§ 312.5(c)(3) and (4); so long as the
information collected for the activities listed in (a)–(f) is not used or disclosed to contact a specific individual or for any other purpose.

* * * * *

Web site or online service directed to
children means a commercial Web site or online service, or portion thereof,
that:

(a) Knowingly targets children under age 13 as its primary audience; or,

(b) based on the overall content of the Web site or online service, is likely to attract children under age 13 as its primary audience; or,

(c) based on the overall content of the Web site or online service, is likely to
attract an audience that includes a disproportionately large percentage of children under age 13 as compared to the percentage of such children in the general population; provided however
that such Web site or online service
shall not be deemed to be directed to children if it: (i) Does not collect personal information from any visitor prior to collecting age information; and (ii) prevents the collection, use, or disclosure of personal information from visitors who identify themselves as under age 13 without first obtaining verifiable parental consent; or,

(d) knows or has reason to know that it is collecting personal information through any Web site or online service covered under paragraphs (a)–(c).

In determining whether a commercial Web site or online service, or a portion thereof, is directed to children, the Commission will consider its subject matter, visual content, use of animated
characters or child-oriented activities and incentives, music or other audio content, age of models, presence of
child celebrities or celebrities who appeal to children, language or other
characteristics of the Web site or online service, as well as whether advertising promoting or appearing on the Web site
or online service is directed to children.
The Commission will also consider competent and reliable empirical evidence regarding audience composition, and evidence regarding
the intended audience. A commercial Web site or online service, or a portion thereof, shall not be deemed directed to children solely because it refers or links
to a commercial Web site or online service directed to children by using information location tools, including a directory, index, reference, pointer, or hypertext link.

By direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 2012–19115 Filed 8–3–12; 8:45 am]

**BILLING CODE 6750–01–P**

**DEPARTMENT OF THE TREASURY**

**Internal Revenue Service**

**26 CFR Part 51**

**[REG–112805–10]**

**RIN 1545–BJ39**

**Branded Prescription Drug Fee; Hearing** 

**AGENCY :**  Internal Revenue Service (IRS), Treasury.

**ACTION :**  Notice of public hearing onnotice proposed rulemaking by crossreference to temporary regulations.

**SUMMARY :**  This document provides notice of public hearing on proposed regulations relating to the branded prescription drug fee imposed by the
Affordable Care Act.

**DATES :**  The public hearing is being held on Friday, November 9, 2012, at 10:00
a.m. The IRS must receive outlines of the topics to be discussed at the public hearing by Friday, October 5, 2012.

**ADDRESSES :**  The public hearing is being held in the IRS Auditorium, Internal Revenue Service Building, 1111 Constitution Avenue NW., Washington,
DC 20224. Send Submissions to CC:PA:LPD:PR (REG–112805–10), room 5205, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044. Submissions may be hand-delivered Monday through Friday to CC:PA:LPD:PR (REG–112805– 10), Couriers Desk, Internal Revenue
Service, 1111 Constitution Avenue NW., Washington, DC or sent electronically via the Federal eRulemaking Portal at www.regulations.gov (REG–112805–10).

**FOR FURTHER INFORMATION CONTACT :**  Concerning the regulations, Celia Gabrysh (202) 622–3130; concerning submissions of comments, the hearing and/or to be placed on the building access list to attend the hearing Funmi Taylor at (202) 622–7180 (not toll-free numbers).

**SUPPLEMENTARY INFORMATION :**  The subject of the public hearing is the notice of proposed rulemaking by crossreference to temporary regulations (REG–112805–10) that was published in
the Federal Register on Thursday, August 18, 2011 (76 FR 51310).

The rules of 26 CFR 601.601(a)(3) apply to the hearing. Persons who wish to present oral comments at the hearing that submitted written comments by November 16, 2011, must submit an outline of the topics to be addressed and
the amount of time to be denoted to each topic.

A period of 10 minutes is allotted to each person for presenting oral
comments. After the deadline for receiving outlines has passed, the IRS will prepare an agenda containing the schedule of speakers. Copies of the agenda will be made available, free of charge, at the hearing or in the Freedom of Information Reading Room (FOIA RR) (room 1621) which is located at the 11th and Pennsylvania Avenue NW.,
entrance, 1111 constitution Avenue NW., Washington, DC.

Because of access restrictions, the IRS will not admit visitors beyond the
immediate entrance area more than 30 minutes before the hearing starts. For information about having your name placed on the building access list to attend the hearing, see the **FOR FURTHER**

**INFORMATION CONTACT** section of this
document.

LaNita VanDyke,
Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedure and Administration).

[FR Doc. 2012–19074 Filed 8–3–12; 8:45 am]

**BILLING CODE 4830–01–P**

**DEPARTMENT OF DEFENSE**

**Office of the Secretary**

**32 CFR Part 323**

**RIN 0790–AI86**

**[Docket ID: DOD–2012–OS–0018]**

**Defense Logistics Agency Privacy Program** 

**AGENCY :**  Defense Logistics Agency, DoD.

**ACTION :**  Proposed rule with request for

comments.

**SUMMARY :**  The Defense Logistics Agency (DLA) is proposing to amend the DLA Privacy Program Regulation. The DLA Privacy Offices have been repositioned under the DLA General Counsel; therefore, responsibilities have been updated to reflect the repositioning. In addition, DLA has adopted revisions to the DoD Privacy Program.


### 46654 Federal Register / Vol. 77, No. 151 / Monday, August 6, 2012 / Proposed Rules

**DATES :**  Submit comments on or before October 5, 2012.

**ADDRESSES :**  You may submit comments, identified by docket 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, 4800 Mark Center Drive, East Tower, Suite 02G09, Alexandria,

VA 22350–3100.

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://www.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 Summary

I. Purpose of This Regulatory Action

a. This rule provides policies and procedures for the Defense Logistics Agency’s implementation of the Privacy Act of 1974, as amended. In addition, DLA has adopted specific sections of the DoD Privacy Program as published in 32 CFR part 310.

b. Authority: Privacy Act of 1974, Pub. L. 93–579, Stat. 1896 (5 U.S.C. 552a).

II. Summary of the Major Provisions of This Regulatory Action

The DLA Privacy Offices have been repositioned under the DLA General Counsel; therefore, responsibilities have been updated to reflect the repositioning.

III. Costs and Benefits of This Regulatory Action

This regulatory action imposes no monetary costs to the Agency or public. The benefit to the public is the accurate reflection of the Agency’s Privacy Program to ensure that policies and procedures are known to the public.

Regulatory Procedures

Executive Order 12866, ‘‘Regulatory Planning and Review’’ and Executive Order 13563, ‘‘Improving Regulation and Regulatory 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 these Executive orders.

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 additional information collection requirements on the public under the Paperwork Reduction Act of

1995.

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, DoD proposes to revise 32 CFR part 323 to read as follows: **PART 323—DEFENSE LOGISTICS**
**AGENCY PRIVACY PROGRAM**

Sec. 323.1 Purpose. 323.2 Applicability. 323.3 Policy. 323.4 Responsibilities. 323.5 Access to systems of records
information. 323.6 Exemption rules.

Authority: Privacy Act of 1974, Pub. L. 93–579, Stat. 1896 (5 U.S.C. 552a).

**§ 323.1 Purpose.**

This part sets out Defense Logistics Agency policy, assigns responsibilities, and prescribes procedures for the
effective administration of the DLA Privacy Program.

**§ 323.2 Applicability.**

This part: (a) Applies to Defense Logistics Agency Headquarters (DLA HQ) and all other organizational entities within the Defense Logistics Agency (hereafter referred to as ‘‘DLA Components’’).

(b) Shall be made applicable by contract or other legally binding action

to U.S. Government contractors whenever a DLA contract requires the performance of any activities associated with maintaining a system of records, including the collection, use, and
dissemination of records on behalf of

DLA.

**§ 323.3 Policy.**

DLA adopts and supplements the DoD Privacy Program policy and procedures codified at 32 CFR 310.4 through 310.53, and appendices A through H of 32 CFR part 310.

**§ 323.4 Responsibilities.**

(a) General Counsel. The General Counsel, DLA, under the authority of the Director, Defense Logistics Agency:

(1) Implements the DLA Privacy Program and is hereby designated as the Component Senior Official for Privacy.

(2) Serves as the DLA Final Denial Appellate Authority.

(3) Provides advice and assistance on all legal matters arising out of, or incident to, the implementation and administration of the DLA Privacy Program.

(4) Serves as the DLA focal point on Privacy Act litigation with the Department of Justice; and will advise the Defense Privacy and Civil Liberties Office on the status of DLA privacy litigation. This responsibility may be delegated.

(5) Serves as a member of the Defense Privacy Board Legal Committee. This responsibility may be delegated.

(6) Supervises and administers the DLA FOIA and Privacy Act Office


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(DGA) and assigned staff. This responsibility may be delegated.

(7) May exempt DLA systems of
records.

(b) Initial Denial Authority (IDA) at Headquarters DLA. By this part, the DLA Director designates the Head of each Headquarters DLA Component as an IDA. Each Head may further delegate this responsibility to their Deputy. For the DLA General Counsel’s Office, the Deputy General Counsel shall serve as the Initial Denial Authority (IDA).

(c) DLA Privacy Act Office. The DLA Privacy Act Office (DGA) staff:

(1) Formulates policies, procedures, and standards necessary for a uniform DLA Privacy Program.

(2) Serves as the DLA representative on the Defense Privacy Board and the Defense Data Integrity Board.

(3) Provides advice and assistance on privacy matters.

(4) Develops or compiles the rules, notices, and reports required under 32 CFR part 310.

(5) Assesses the impact of technology on the privacy of personal information.

(6) Conducts Privacy training for personnel assigned, employed, and detailed, including contractor personnel and individuals having primary responsibility for implementing the DLA Privacy Program.

(7) Develops forms used within the DLA Privacy Program. This part serves as the prescribing document for forms developed for the DLA Privacy Program.

(d) DLA Components Heads. The DLA Components Heads:

(1) Designate an individual as the point of contact for Privacy matters for their DLA Component and advise DGA of the name of official so designated.
This individual also will serve as the Privacy Officer for the co-located tenant DLA organizations.

(2) Designate an official to serve as the initial denial authority for initial requests for access to an individual’s records or amendments to records, and
will advise DGA of the names of the officials so designated.

(e) DLA Acquisition Management Directorate (J–7). The DLA Acquisition Management Directorate (J–7) shall be responsible for:

(1) Developing the specific DLA policies and procedures to be followed when soliciting bids, awarding contracts or administering contracts that are subject to 32 CFR 310.12.

(2) Establishing an appropriate contract surveillance program to ensure contractors comply with the procedures
established in accordance with 32 CFR

310.12. **§ 323.5 Access to systems of records**

**information.**

(a) Individuals who wish to gain access to records contained in a system
of records about themselves will submit their request in writing to the DLA FOIA/Privacy Act Office, Headquarters, Defense Logistics Agency, ATTN: DGA, 8725 John J. Kingman Road, Suite 1644, Fort Belvoir, VA 22060–6221. Any written request must:

(1) Identify the particular ‘‘system(s) of records’’ to be searched;

(2) Contain the information listed under the ‘‘Notification procedure’’ or ‘‘Record access procedures’’ elements of the applicable system of records notice;

(3) Verify identity when the information sought is of a sensitive nature by submitting an unsworn
declaration in accordance with 28. U.S.C. 1746 or notarized signature;

(4) Adequately explain a request for expedited processing, if applicable;

(5) State whether they agree to pay fees associated with the processing of your request; and

(6) Contain a written release authority
if records are to be released to a third party. Third parties could be, but are not limited to, a law firm, a Congressman’s office, a union official, or a private entity.

(b) Amendment and/or Access denials will be processed in accordance with 32
CFR 310.18 and 310.19.

(c) If an individual disagrees with the initial agency determination regarding notification, access, or amendment, he may appeal by writing to the General Counsel, Defense Logistics Agency, ATTN: DGA, Suite 1644, 8725 John J. Kingman Road, Fort Belvoir, VA 22060– 6221 or by emailing the appeal to hqfoia@dla.mil or by faxing the appeal to (703) 767–6091.

**§ 323.6 Exemption rules.**

(a) The Director, DLA or designee may claim an exemption from any provision of the Privacy Act from which an exemption is allowed.

(b) An individual is not entitled to access information that is compiled in reasonable anticipation of a civil action or proceeding. The term ‘‘civil action or proceeding’’ is intended to include court proceedings, preliminary judicial steps, and quasi-judicial administrative hearings or proceedings (i.e., adversarial proceedings that are subject to rules of evidence). Any information prepared in anticipation of such actions or proceedings, to include information prepared to advise DLA officials of the possible legal or other consequences of a given course of action, is protected. The exemption is similar to the attorney work-product privilege except that it applies even when the information is prepared by non-attorneys. The exemption does not apply to information compiled in anticipation of criminal actions or proceedings.

(c) Exempt Records Systems. All systems of records maintained by the Defense Logistics Agency will be exempt from the access provisions of 5 U.S.C. 552a(d) and the notification of access procedures of 5 U.S.C. 522a(e)(4)(H) pursuant to 5 U.S.C. 552a(k)(1) to the extent that the system contains any information properly
classified under Executive Order 13526 and which is required by the Executive Order to be kept secret in the interest of national defense or foreign policy. This exemption, which may be applicable to parts of all DLA systems of records, is necessary because certain record systems not otherwise specifically designated for exemptions herein may
contain isolated items of information which have been properly classified.

(d) System Identifier: S170.04 (Specific exemption).

(1) System name: Fraud and Irregularities.

(2) Exemption: (i) Investigatory material compiled for law enforcement purposes, other than material within the scope of subsection 5 U.S.C. 552a(j)(2), may be exempt pursuant to 5 U.S.C. 552a(k)(2). If an individual, however, 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 the information, the individual will be provided access to the information except to the extent that disclosure would reveal the identity of
a confidential source. NOTE: When claimed, this exemption allows limited protection of investigative reports maintained in a system of records used in personnel or administrative actions.

(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) The specific sections of 5 U.S.C. 552a from which the system is exempt are 5 U.S.C. 552a(c)(3), (d)(1) through (d)(4), (e)(1), (e)(4)(G), (H), and (I), and (f).

(3) Authorities: 5 U.S.C. 552a(k)(2) and (k)(5).

(4) Reasons: (i) From 5 U.S.C. 552a(c)(3), as granting access to the accounting for each disclosure, as required by the Privacy Act, including


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the date, nature, and purpose of each disclosure and the identity of the recipient, could alert the subject to the existence of an investigation or prosecutive interest by DLA or other agencies. This seriously could compromise case preparation by prematurely revealing its existence and nature; compromise or interfere with witnesses or making witnesses reluctant to cooperate; and lead to suppression, alteration, or destruction of evidence.

(ii) From 5 U.S.C. 552a(d)(1) through (4) and (f), as providing access to records of a civil 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 an 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; and result in the secreting of or other disposition of assets that would make them difficult or impossible to reach to satisfy any Government claim arising from the investigation or proceeding.

(iii) From 5 U.S.C. 552a(e)(1), as 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 5 U.S.C. 552a(e)(4)(G) and (H), as there is no necessity for such publication since the system of records would be exempt from the underlying duties to provide notification about and access to information in the system and
to make amendments and corrections to the information in the system.

(v) From 5 U.S.C. 552a(e)(4)(I), as 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. DLA, nevertheless, will continue to publish such a notice in broad generic terms as is its current practice.

(e) System Identifier: S500.10 (Specific exemption).

(1) System name: Personnel Security
Files.

(2) Exemption: (i) 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.

(ii) 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 5 U.S.C. 552a(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 would 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 may 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 5 U.S.C. 552a(e)(1), as 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.

(f) System Identifier: S500.20 (Specific exemption).

(1) System name: Defense Logistics Agency (DLA) Criminal Incident Reporting System (DCIRS).

(2) Exemption: (i) Investigatory material compiled for law enforcement purposes, other than material within the scope of subsection 5 U.S.C. 552a(j)(2), may be exempt pursuant to 5 U.S.C. 552a(k)(2). If an individual, however, 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 the information, the individual will be provided access to the information except to the extent that disclosure would reveal the identity of a confidential source. NOTE: When claimed, this exemption allows limited protection of investigative reports maintained in a system of records used in personnel or administrative actions.

(ii) The specific sections of 5 U.S.C. 552a from which the system is to be exempted are 5 U.S.C. 552a(c)(3), (d), (e)(1), (e)(4)(G), (H), (I), and (f).

(3) Authority: 5 U.S.C. 552a(k)(2). (4) Reasons: (i) From subsection (c)(3), as to grant access to an accounting of disclosures 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 existence of the investigation or prosecutive interest by DLA or other agencies. This could seriously compromise case preparation by: Prematurely revealing its existence and nature; compromising or interfering with witnesses or making witnesses reluctant to cooperate; and leading to suppression, alteration, or destruction of
evidence.

(ii) From 5 U.S.C. 552a(d) and (f), as providing access to this information could result in the concealment,
destruction or fabrication of evidence and jeopardize the safety and well being of informants, witnesses and their families, and law enforcement personnel and their families. Disclosure
of this information also could reveal and render ineffectual investigative techniques, sources, and methods used by this component and could result in the invasion of privacy of individuals only incidentally related to an investigation. Investigatory material is exempt to the extent that the disclosure
of such material would reveal the identity of a source who furnished the
information to the Government under an express promise that the identity of the source would be held in confidence, or prior to September 27, 1975, under an implied promise that the identity of the
source would be held in confidence. This exemption will protect the
identities of certain sources that would be otherwise unwilling to provide
information to the Government. The exemption of the individual’s right of
access to his/her records and the
reasons therefore necessitate the exemptions of this system of records from the requirements of the other cited provisions.

(iii) From 5 U.S.C. 552a(e)(1), as 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.


### 46657 Federal Register / Vol. 77, No. 151 / Monday, August 6, 2012 / Proposed Rules

(iv) From 5 U.S.C. 552a(e)(4)(G), (H), and (I), as it will provide protection against notification of investigatory material which might alert a subject to the fact that an investigation of that individual is taking place, and the
disclosure of which would weaken the on-going investigation, reveal investigatory techniques, and place in jeopardy confidential informants who furnished information under an express promise that the sources’ identity would be held in confidence (or prior to the effective date of the Act, under an implied promise).

(g) System Identifier: S500.30 (Specific exemption).

(1) System name: Incident Investigation/Police Inquiry Files.

(2) Exemption: (i) Investigatory material compiled for law enforcement purposes, other than material within the scope of subsection 5 U.S.C. 552a(j)(2), may be exempt pursuant to 5 U.S.C. 552a(k)(2). If an individual, however, 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 the information, the individual will be provided access to the information, except to the extent that disclosure would reveal the identity
of a confidential source. NOTE: When claimed, this exemption allows limited protection of investigative reports maintained in a system of records used in personnel or administrative actions.

(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) The specific sections of 5 U.S.C. 552a from which the system is exempt are 5 U.S.C. 552a(c)(3), (d)(1) through (d)(4), (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 5 U.S.C. 552a(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 existence of the investigation or prosecutive interest by DLA or other agencies. This could seriously compromise case preparation by: Prematurely revealing its existence and nature; compromising or interfering with witnesses or making witnesses reluctant to cooperate; and leading to suppression, alteration, or destruction of
evidence.

(ii) From 5 U.S.C. 552a(d)(1) through (d)(4), and (f), as 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 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 to satisfy any Government claim arising from the investigation or proceeding.

(iii) From 5 U.S.C. 552a(e)(1), as 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 5 U.S.C. 552a(e)(4)(G) and (H), as this system of records is compiled for law enforcement purposes and is exempt from the access provisions of 5 U.S.C. 552a(d) and (f).

(v) From 5 U.S.C. 552a(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. DLA, nevertheless, will continue to publish such a notice in broad generic terms as is its current practice.

(h) System Identifier: S500.60 (Specific exemption).

(1) System name: DLA Hotline Program Records.

(2) Exemption: (i) Investigatory material compiled for law enforcement purposes, other than material within the scope of subsection 5 U.S.C. 552a(j)(2), may be exempt pursuant to 5 U.S.C. 552a(k)(2). If an individual, however, 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 the information, the individual will be provided access to the information, except to the extent that disclosure would reveal the identity
of a confidential source. NOTE: When claimed, this exemption allows limited protection of investigative reports maintained in a system of records used in personnel or administrative actions.

(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) The specific sections of 5 U.S.C. 552a from which the system is exempt are 5 U.S.C. 552a(c)(3), (d)(1) through (4), (e)(1), (e)(4)(G), (H), (I), and (f).

(3) Authority: 5 U.S.C. 552a(k)(2) and (k)(5).

(4) Reasons: (i) From subsection (c)(3), as to grant access to an accounting of disclosures 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 existence of the investigation or prosecutive interest by DLA or other agencies. This could seriously compromise case preparation by prematurely revealing its existence and nature; compromise or interfere with witnesses or making witnesses reluctant to cooperate; and lead to suppression, alteration, or destruction of
evidence.

(ii) From 5 U.S.C. 552a(d)(1) through (4) and (f), as 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 interfere seriously 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 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 to satisfy any Government claim arising from the investigation or proceeding.

(iii) From 5 U.S.C. 552a(e)(1), as it is not always possible to detect the


### 46658 Federal Register / Vol. 77, No. 151 / Monday, August 6, 2012 / Proposed Rules

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 5 U.S.C. 552a(e)(4)(G) and (H), as this system of records is compiled for law enforcement purposes and is exempt from the access provisions of 5 U.S.C. 552a(d) and (f).

(v) From 5 U.S.C. 552a(e)(4)(I), as 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. DLA, nevertheless, will continue to publish such a notice in broad generic terms as is its current practice.

(i) System Identifier: S510.30 (Specific/General Exemption).

(1) System name: Freedom of Information Act/Privacy Act Requests and Administrative Appeal Records.

(2) Exemption: During the processing of a Freedom of Information Act/Privacy Act request (which may include access requests, amendment requests, and requests for review for initial denials of such requests), exempt materials from other systems of records may, in turn, become part of the case record in this system. To the extent that copies of exempt records from those ‘‘other’’ systems of records are entered into this system, the Defense Logistics Agency claims the same exemptions for the records from those ‘‘other’’ systems that are entered into this system, as claimed for the original primary system of which they are a part.

(3) Authority: 5 U.S.C. 552a(j)(2), (k)(1) through (7).

(4) Reasons: Records are only exempt from pertinent provisions of 5 U.S.C. 552a to the extent such provisions have been identified and an exemption claimed for the original record and the purposes underlying the exemption for the original record still pertain to the
record which is now contained in this system of records. In general, the exemptions were claimed in order to protect properly classified information relating to national defense and foreign policy; to avoid interference during the conduct of criminal, civil, or administrative actions or investigations; to ensure protective services provided
the President and others are not compromised; to protect the identity of
confidential sources incident to Federal employment, military service, contract, and security clearance determinations; to preserve the confidentiality and integrity of Federal testing materials; and to safeguard evaluation materials used for military promotions when furnished by a confidential source. The exemption rule for the original records will identify the specific reasons why the records are exempt from specific provisions of 5 U.S.C. 552a.

Dated: July 9, 2012.
Patricia L. Toppings, OSD Federal Register, Liaison Officer, Department of Defense.

[FR Doc. 2012–18123 Filed 8–3–12; 8:45 am]

**BILLING CODE 5001–06–P**

**DEPARTMENT OF EDUCATION**

**34 CFR Chapter III**

**[CFDA Number: 84.373Y.]**

**Proposed Priority; Technical Assistance To Improve State Data**  **Capacity—National Technical Assistance Center To Improve State**  **Capacity To Accurately Collect and Report IDEA Data** 

**AGENCY :**  Office of Special Education and Rehabilitative Services, Department of
Education.

**ACTION :**  Notice.

**SUMMARY :**  The Assistant Secretary for Special Education and Rehabilitative Services proposes a funding priority under the Technical Assistance (TA) on State Data Capacity program. The Assistant Secretary may use this proposed priority for competitions in fiscal year (FY) 2012 and later years. We
take this action to focus attention on an identified national need to provide TA to improve the capacity of States to meet the data collection requirements of the
Individuals with Disabilities Education Act (IDEA).

**DATES :**  We must receive your comments on or before October 22, 2012.

**ADDRESSES :**  Address all comments about this notice to Kelly Worthington, U.S. Department of Education, 400 Maryland
Avenue SW., Room 4072, Potomac Center Plaza (PCP), Washington, DC

20202–2600.

If you prefer to send your comments by email, use the following address: Kelly.Worthington@ed.gov. You must include the term ‘‘State Data Capacity Priority’’ in the subject line of your electronic message.

**FOR FURTHER INFORMATION CONTACT :**  Kelly Worthington. Telephone: (202)

245–7581.

If you use a telecommunications device for the deaf (TDD) or a text telephone (TTY), call the Federal Relay Service (FRS), toll free, at 1–800–877–

8339.

**SUPPLEMENTARY INFORMATION :** 

Invitation to Comment: We invite you to submit comments regarding the proposed priority in this notice. To ensure that your comments have maximum effect in developing the notice of final priority, we urge you to clearly identify the specific topic that
each comment addresses.

We invite you to assist us in complying with the specific requirements of Executive Orders 12866 and 13563 and their overall requirement of reducing regulatory burden that might result from this proposed priority. Please let us know of any further ways we could reduce potential costs or increase potential benefits while preserving the effective and efficient administration of the program.

During and after the comment period, you may inspect all public comments about this notice in Room 4072, 550 12th Street SW., Potomac Center Plaza, Washington, DC, between the hours of 8:30 a.m. and 4 p.m., Washington, DC time, Monday through Friday of each week except Federal holidays.

Assistance to Individuals With Disabilities in Reviewing the Rulemaking Record: On request, we will provide an appropriate accommodation or auxiliary aid to an individual with a disability who needs assistance to
review the comments or other documents in the public rulemaking record for this notice. If you want to schedule an appointment for this type of accommodation or auxiliary aid, please contact the person listed under **FOR**

**FURTHER INFORMATION CONTACT**

.

Purpose of Program: The purpose of
the Technical Assistance on State Data Collection program is to improve the capacity of States to meet IDEA data collection and reporting requirements. Funding for the program is authorized under section 611(c)(1) of the IDEA, which gives the Secretary the authority to reserve funds appropriated under section 611 of the IDEA to provide TA authorized under section 616(i) of the IDEA. Section 616(i) requires the Secretary to review the data collection and analysis capacity of States to ensure
that data and information determined necessary for implementation of section 616 and 618 of the IDEA are collected, analyzed, and accurately reported. It also requires the Secretary to provide TA, where needed, to improve the capacity of States to meet the data collection requirements under the IDEA.

Program Authority: 20 U.S.C. 1411(c), 1416(i), and 1418(c).