Federal Register / Vol. 89, No. 242 / Tuesday, December 17, 2024 / Rules and Regulations 101887 

■ 2. Amend § 531.56 by revising 

paragraph (e) and removing paragraph 

(f) to read as follows: 

§ 531.56 ‘‘More than $30 a month in tips.’’ 

* * * * * 

(e) Dual jobs. In some situations an 

employee is employed in a dual job, as 

for example, where a maintenance man 

in a hotel also serves as a waiter. In such 

a situation the employee, if he 

customarily and regularly receives at 

least $30 a month in tips for his work 

as a waiter, is a tipped employee only 

with respect to his employment as a 

waiter. He is employed in two 

occupations, and no tip credit can be 

taken for his hours of employment in 

his occupation of maintenance man. 

Such a situation is distinguishable from 

that of a waitress who spends part of her 

time cleaning and setting tables, toasting 

bread, making coffee and occasionally 

washing dishes or glasses. It is likewise 

distinguishable from the counterman 

who also prepares his own short orders 

or who, as part of a group of 

countermen, takes a turn as a short 

order cook for the group. Such related 

duties in an occupation that is a tipped 

occupation need not by themselves be 

directed toward producing tips. 

Signed this 12th day of December, 2024. 

Jessica Looman, 

Administrator, Wage and Hour Division. 

[FR Doc. 2024–29798 Filed 12–16–24; 8:45 am] 

BILLING CODE 4510–27–P 

DEPARTMENT OF THE TREASURY 

Office of the Secretary 

31 CFR Part 1 

RIN 1505–AC32 

Privacy Act Exemptions 

AGENCY: Departmental Offices, 

Department of the Treasury. 

ACTION: Final rule. 

SUMMARY: In accordance with the 

Privacy Act of 1974, as amended 

(Privacy Act), the Department of the 

Treasury, Departmental Offices is 

issuing a final rule, exempting a new 

system of records entitled ‘‘Department 

of the Treasury, Departmental Offices 

.413—Outbound Investment Security 

Program Notification System’’ from 

certain provisions of the Privacy Act. 

The Outbound Investment Security 

Program Notification System is being 

established for information collected in 

connection with the implementation of 

Executive Order 14105 of August 9, 

2023. The exemption is intended to 

comply with the legal prohibitions 

against the disclosure of certain kinds of 

information and to protect certain 

information maintained in this system 

of records. 

DATES: This rule is effective on January 

16, 2025. 

FOR FURTHER INFORMATION CONTACT: For 

general questions and questions 

regarding privacy issues, please contact: 

Ryan Law, Deputy Assistant Secretary 

for Privacy, Transparency, and Records, 

Department of the Treasury, 1500 

Pennsylvania Avenue NW, Washington, 

DC 20220; telephone: (202) 622–5710. 

SUPPLEMENTARY INFORMATION: 

Background 

The Department of the Treasury 

(Treasury) published a notice of 

proposed rulemaking (Systems 

Exemption NPRM) in the Federal 

Register, 89 FR 76783 (published 

September 19, 2024), proposing to 

exempt portions of the system of records 

from one or more provisions of the 

Privacy Act. 

As background, on August 9, 2023, 

the President issued Executive Order 

14105, 88 FR 54867 (the Outbound 

Order), which declares a national 

emergency to address the threat to the 

United States posed by countries of 

concern, which seek to develop and 

exploit sensitive technologies or 

products critical for military, 

intelligence, surveillance, or cyberenabled capabilities. Among other 

things, the Outbound Order directs the 

Secretary of the Treasury to issue 

regulations that require U.S. persons to 

provide notification of information to 

Treasury regarding certain transactions 

involving a person of a country of 

concern that is engaged in certain 

activities involving covered national 

security technologies and products that 

may contribute to the threat to the 

national security of the United States as 

identified in the Outbound Order. The 

Outbound Order also directs the 

Secretary of the Treasury to issue 

regulations that prohibit certain 

transactions by a U.S. person involving 

a person of a country of concern that is 

engaged in certain activities involving 

covered national security technologies 

and products that pose a particularly 

acute national security threat to the 

United States. The Outbound Order 

authorizes the Secretary of the Treasury 

to exempt from applicable prohibitions 

or notification requirements any 

transaction determined to be in the 

national interest of the United States. 

On August 9, 2023, Treasury issued an 

advance notice of proposed rulemaking, 

88 FR 54961 (published August 14, 

2023), to explain initial considerations 

and seek public comment on 

implementation of the Outbound Order. 

On June 21, 2024, Treasury issued a 

notice of proposed rulemaking to seek 

public comment on the proposed rule, 

89 FR 55846 (published July 5, 2024). 

On October 28, 2024, Treasury issued a 

final rule, [89 FR 90398] (published 

November 15, 2024) (the Outbound 

Rule), setting forth the regulations that 

implement the Outbound Order. The 

Outbound Rule requires U.S. persons to 

provide notification of certain 

transactions. This information will 

include relevant details on the U.S. 

person(s) involved in the transaction as 

well as information on the transaction 

and the foreign person(s) involved. 

These notifications will increase the 

U.S. Government’s visibility into 

transactions by U.S. persons or their 

controlled foreign entities and involving 

technologies and products relevant to 

the threat to the national security of the 

United States due to the policies and 

actions of countries of concern. These 

notifications would also be helpful in 

highlighting aggregate sector trends and 

related capital flows as well as 

informing future policy development. 

The Outbound Rule also requires any 

U.S. person seeking a national interest 

exemption for a particular transaction to 

submit information to Treasury 

regarding the scope of that transaction 

including, as applicable, the 

information that would be required for 

a notification under the Outbound Rule. 

Treasury’s Departmental Offices 

published separately the notice of a new 

system of records, 89 FR 76917 

(published September 19, 2024), for 

information collected in connection 

with the implementation of the 

Outbound Order. 

Public Comments 

Treasury received five comments on 

the Systems Exemption NPRM. Four 

commenters support the proposed 

exemptions because of their importance 

to protect national security. One 

commenter urged Treasury to consider 

the importance of transparency and 

accountability in government, as well as 

the impact exemptions to the Privacy 

Act could have on public trust. The 

commenter expressed concern that the 

Systems Exemption NPRM was too 

broad and noted that exemptions to the 

Privacy Act should be clearly defined 

and limited to situations implicating 

national security. The commenter also 

questioned whether there were any 

checks and balances in place to ensure 

that data is only collected in the interest 

of national security and public safety. 


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101888 Federal Register / Vol. 89, No. 242 / Tuesday, December 17, 2024 / Rules and Regulations 

Treasury notes the importance of 

transparency and accountability and the 

role of the Privacy Act in supporting 

those goals. As noted in the Systems 

Exemption NPRM, notification is 

limited to those transactions that may 

contribute to the threat to the national 

security of the United States identified 

in the Outbound Order, and the scope 

of notifiable transactions is linked to 

subsets of technologies and products 

and based on specific descriptions and 

technical thresholds provided in the 

Outbound Rule. In addition, the specific 

information required to be submitted to 

Treasury in the notifications is a limited 

universe of information related to the 

relevant transaction. Furthermore, as 

noted in the Outbound Rule, Treasury 

recognizes the importance of 

safeguarding sensitive information and 

has included specific confidentiality 

provisions in the regulations. Among 

the checks and balances in place, the 

Outbound Order requires annual reports 

be submitted to the President with an 

assessment of the effectiveness of the 

measures imposed under the Outbound 

Order in addressing threats to the 

national security of the United States, 

among other things. Treasury makes no 

changes to this final rule in response to 

these comments. 

Privacy Act 

Treasury is hereby promulgating a 

final rule to exempt the Outbound 

Investment Security Program 

Notification System from certain 

provisions of the Privacy Act pursuant 

to 5 U.S.C. 552a(k)(1) and (k)(2) and the 

authority vested in the Secretary of the 

Treasury by 31 CFR 1.23(c). 

Under 5 U.S.C. 552a(k)(1), the head of 

a Federal agency may promulgate rules 

to exempt a system of records from 

certain provisions of 5 U.S.C. 552a if the 

system of records is subject to the 

exemption contained in section 

552(b)(1) of this title. (Freedom of 

Information Act, exemption (b)(1) 

protects from disclosure information 

that has been deemed classified ‘‘under 

criteria established by an Executive 

order to be kept secret in the interest of 

national defense or foreign policy’’ and 

is ‘‘in fact properly classified pursuant 

to such Executive order.’’) 

Under 5 U.S.C. 552a(k)(2), the head of 

a Federal agency may promulgate rules 

to exempt a system of records from 

certain provisions of 5 U.S.C. 552a if the 

system of records contains investigatory 

materials compiled for law enforcement 

purposes that are not within the scope 

of subsection (j)(2) of the Privacy Act 

(which applies to agencies and 

components thereof that perform as 

their principal function any activity 

pertaining to the enforcement of 

criminal laws). 

To the extent that this system of 

records contains classified information 

protected by 5 U.S.C. 552a(k)(1) or 

investigatory materials compiled for law 

enforcement purposes protected by 5 

U.S.C. 552a(k)(2), Treasury exempts the 

following system of records from 

various provisions of the Privacy Act: 

DO .413—Outbound Investment 

Security Program Notification System 

Under 5 U.S.C. 552a(k)(1) and (k)(2), 

Treasury exempts certain records in the 

above-referenced system of records be 

exempt from 5 U.S.C. 552a(c)(3), (d)(1) 

through (4), (e)(1), (e)(4)(G) through (I), 

and (f) of the Privacy Act. See 31 CFR 

1.36. 

The following are the reasons why the 

classified records and investigatory 

materials contained in the abovereferenced system of records may be 

exempted from various provisions of the 

Privacy Act pursuant to 5 U.S.C. 

552a(k)(1) and (k)(2). 

1. 5 U.S.C. 552a(c)(3) requires an 

agency to make any accounting of 

disclosures of records required by 5 

U.S.C. 552a(c)(1) available to the 

individual named in the record upon 

his or her request. Exemption from this 

requirement is appropriate because 

release of the accounting of disclosures 

of the records in this system could alert 

individuals whether they have been 

identified as the subject of an analysis 

related to the national security interests 

of the United States, to the existence of 

the analysis, and reveal the interest on 

the part of Treasury as well as the 

recipient agency. Disclosure of the 

accounting would present a serious 

impediment to efforts to protect national 

security interests by giving individuals 

an opportunity to learn whether they 

have been identified as subjects of a 

national security-related analysis. As 

further described in the following 

paragraph, access to such knowledge 

would impair Treasury’s ability to carry 

out its mission, since individuals could: 

i. Take steps to avoid analysis; 

ii. inform associates that a national 

security analysis is in progress; 

iii. learn the nature of the national 

security analysis; 

iv. learn the scope of the national 

security analysis; 

v. begin, continue, or resume conduct 

that may pose a threat to national 

security upon inferring they may not be 

part of a national security analysis 

because their records were not 

disclosed; or 

vi. destroy information relevant to the 

national security analysis. 

2. 5 U.S.C. 552a(d)(1) through (4) 

grant individuals access to records 

containing information about them and 

permit them to request amendment of a 

record pertaining to them and require 

the agency either to amend the record or 

note the disputed portion of the record 

and, if the agency refuses to amend the 

record, to provide a copy of the 

individual’s statement of disagreement 

with the agency’s refusal, to persons or 

other agencies to whom the record is 

thereafter disclosed. Exemption from 

this requirement is appropriate because 

access to a portion of the records 

contained in this system of records 

could inform individuals whether they 

have been identified as the subject of an 

analysis related to the national security 

interests of the United States, to the 

existence of the analysis and reveal the 

interest on the part of Treasury or 

another agency. Access to the records 

would present a serious impediment to 

efforts to protect national security 

interests by permitting the individual 

who is the subject of a record to learn 

whether they have been identified as a 

subject of a national security-related 

analysis. Access to such knowledge 

would impair Treasury’s ability to carry 

out its mission, since individuals could 

take steps to impede the analysis and 

avoid detection, including the steps 

described in paragraph 1.i–through vi of 

this section. Amendment of the records 

would interfere with ongoing analysis 

and impose an impossible 

administrative burden. The information 

contained in the system may also 

include classified information, the 

release of which would pose a threat to 

the national security of the United 

States. In addition, permitting access 

and amendment to such information 

could disclose sensitive security 

information that could be detrimental to 

Treasury. 

3. 5 U.S.C. 552a(e)(1) requires an 

agency to maintain in its records only 

such information about an individual as 

is relevant and necessary to accomplish 

a purpose of the agency required to be 

accomplished by statute or Executive 

order. Exemption from this requirement 

is appropriate because what information 

is relevant and necessary may not 

always be apparent at the time of 

collection. In the interests of national 

security, it is appropriate to include a 

broad range of information that may aid 

in identifying and assessing the nature 

and scope of national security threats to 

the United States. Additionally, the 

accuracy of information obtained or 

introduced occasionally may be unclear, 

or the information may not be strictly 

relevant or necessary to a specific 

analysis. In the interests of national 

security, it is appropriate to retain all 


ddrumheller on DSK120RN23PROD with RULES1
Federal Register / Vol. 89, No. 242 / Tuesday, December 17, 2024 / Rules and Regulations 101889 

information that may aid in establishing 

patterns of suspicious activity. 

4. 5 U.S.C. 552a(e)(4)(G) through (I) 

and 5 U.S.C. 552a(f) require an agency 

to publish the agency procedures 

whereby individuals can be notified if 

the system of records pertains to them, 

how they can gain access to any record 

pertaining to them in the system of 

records and contest its content, and the 

categories of sources of records in the 

system. Exemption from these 

requirements is appropriate because, as 

noted above, this system is exempt from 

the access and amendment provisions of 

subsection (d). 

Any records from another Treasury 

system of records or another Executive 

Branch agency’s system of records for 

which an exemption is claimed under 5 

U.S.C. 552a(j) or (k) that may also be 

included in this system of records 

retains the same exempt status as such 

records have in the system for which 

such exemption is claimed. 

Regulatory Analysis 

This rule is not a ‘‘significant 

regulatory action’’ under Executive 

Order 12866. Pursuant to the 

requirements of the Regulatory 

Flexibility Act (RFA), 5 U.S.C. 601 et 

seq., it is hereby certified that this rule 

will not have a significant economic 

impact on a substantial number of small 

entities. This rule, issued pursuant to 5 

U.S.C. 552a(k), exempts certain 

information maintained by Treasury in 

the above-referenced systems of records 

from certain provisions of the Privacy 

Act. Small entities, as defined in the 

RFA, are not provided rights under the 

Privacy Act and are outside the scope of 

this regulation. 

The related information collections 

have been submitted to the Office of 

Management and Budget on July 8, 2024 

under control number: 1505–0282. 

List of Subjects in 31 CFR Part 1 

Courts, Freedom of Information, 

Government Employees, Privacy. 

For the reasons stated in the 

preamble, part 1 of title 31 of the Code 

of Federal Regulations is amended as 

follows: 

PART 1—DISCLOSURE OF RECORDS 

■ 1. The authority citation for part 1 

continues to read as follows: 

Authority: 5 U.S.C. 301, 552, 552a, 553; 31 

U.S.C. 301, 321; 31 U.S.C. 3717. 

■ 2. Amend § 1.36 by adding, in 

alphanumeric order, entries for ‘‘DO 

.413—Outbound Investment Security 

Program Notification System’’ in table 8 

to paragraph (e)(1)(ii) and table 11 to 

paragraph (g)(1)(ii) to read as follows: 

§ 1.36 Systems exempt in whole or in part 

from provisions of the Privacy Act and this 

part. 

* * * * * 

(e) * * * 

(1) * * * 

(ii) * * * 

TABLE 8 TO PARAGRAPH (e)(1)(ii) 

No. Name of system 

*******

DO .413 Outbound Investment Security Program Notification System. 

* * * * * 

(g) * * * 

(1) * * * 

(ii) * * * 

TABLE 11 TO PARAGRAPH (g)(1)(ii) 

No. Name of system 

*******

DO .413 Outbound Investment Security Program Notification System. 

* * * * * 

Dated: December 11, 2024. 

Ryan Law, 

Deputy Assistant Secretary for Privacy, 

Transparency, and Records. 

[FR Doc. 2024–29596 Filed 12–16–24; 8:45 am] 

BILLING CODE 4810–AK–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket Number USCG–2024–0559] 

RIN 1625–AA00 

Safety Zone; West Passage 

Narragansett Bay, Jamestown, RI 

AGENCY: Coast Guard, DHS. 

ACTION: Temporary interim rule and 

request for comments. 

SUMMARY: The Coast Guard is amending 

the current temporary safety zone in the 

vicinity of the West Passage Narraganset 

Bay, Jamestown, RI, in two ways. First, 

we are extending the effective period by 

30 days to January 31, 2025. Second, by 

updating the name of the cable laying 

vessel. The temporary safety zone is 

needed to protect personnel, vessels, 

and the marine environment from 

potential hazards created by cable 

laying operations being conducted. 

When enforced, entry of vessels or 

persons into this zone is prohibited 

unless specifically authorized by the 

Captain of the Port, Sector Southeastern 

New England. 

DATES: 

Effective date: This temporary interim 

rule is effective from December 17, 2024 


ddrumheller on DSK120RN23PROD with RULES1