[Federal Register Volume 87, Number 113 (Monday, June 13, 2022)]
[Notices]
[Pages 35723-35729]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-12565]


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DEPARTMENT OF COMMERCE

[Docket No. 220324-0077]


Privacy Act of 1974; System of Records

AGENCY: Department of Commerce, Office of Inspector General.

ACTION: Notice of a modified system of records.

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SUMMARY: In accordance with the Privacy Act of 1974, as amended 
(Privacy Act), and the Office of Management and Budget (OMB) Circular 
A-108, ``Federal Agency Responsibilities for Review, Reporting, and 
Publication under the Privacy Act,'' the Department of Commerce (the 
Department) is issuing this notice of its intent to amend the system of 
records under ``COMMERCE/DEPT-12, OIG Investigative Records'' to change 
the system name to ``COMMERCE/OIG-1, OIG Investigative Records,'' and 
to generally update the system's notice. This system of records is used 
by the Department's Office of Inspector General (OIG) to carry out its 
statutory responsibilities under the Inspector General Act of 1978, as 
amended (Inspector General Act) to conduct and supervise 
investigations, prevent and detect fraud, waste, mismanagement, and 
abuse, and promote economy, efficiency, and effectiveness in Department 
programs and operations. We invite public comment on the system 
amendments announced in this publication.

DATES: This amended system of records will become effective upon 
publication, subject to a 30-day comment period in which to comment on 
new or amended routine uses. To be considered, written comments must be 
submitted on or before July 13, 2022.

ADDRESSES: Please address comments to the Office of Inspector General 
Office of Counsel, Room 7896, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230; by email to 
<a href="/cdn-cgi/l/email-protection#a4ebede3e7cbd1cad7c1c8e4cbcdc38ac0cbc78ac3cbd2"><span class="__cf_email__" data-cfemail="d19e989692bea4bfa2b4bd91beb8b6ffb5beb2ffb6bea7">[email protected]</span></a>; or by facsimile to (202) 501-7335.

FOR FURTHER INFORMATION CONTACT: OIG Office of Counsel Phone: (202) 
792-3317.

SUPPLEMENTARY INFORMATION: This notice announces several changes to the 
system of records for OIG investigative records. The sections of the 
system's notice to be updated are: System Name; Security 
Classification; System Locations; Categories of Individuals Covered by 
the System; Categories of Records in the System; Authority for 
Maintenance of the System; Purposes; Routine Uses of Records Maintained 
in the System; Storage; Safeguards; Retention and Disposal; System 
Manager and Address; Record Access Procedures; Record Source 
Categories; and System Exemptions. Newly proposed routine use (RU) 
numbers 8 and 25 are being added to permit, respectively, disclosures 
to the Office of Government Information Services (OGIS), National 
Archives and Records Administration (NARA) in connection with OGIS's 
responsibilities under the Freedom of Information Act, 5 U.S.C. 552, 
and to public authorities for use in computer matching programs. In 
addition, RU 21 is updated, and new RU 22 is added in accordance with 
Office of Management and Budget (OMB) Memorandum M-17-12. This 
amendment also moves part of existing RU 9 (COMMERCE/DEPT-12) (now RU 
10) to a separately numbered new RU 5, with no substantive change, and 
makes

[[Page 35724]]

clarifying changes to RUs numbered below as 1, 5, and 23. Throughout 
the notice, this amendment makes other minor changes or administrative 
edits, including the reordering of sections consistent with OMB 
guidance, the deletion of RU 1 (COMMERCE/DEPT-12), which is duplicative 
as encompassed by RU 10 (COMMERCE/DEPT-12) (now RU 11), and the 
renumbering of RUs as needed to reflect that deletion as well as the 
addition of the newly proposed RUs described above.
    The changes are needed to ensure that the notice for this system of 
records is up-to-date, accurate, and current, as required by the 
Privacy Act. OMB Circular A-108 requires agencies to periodically 
review systems of records notices for accuracy and completeness, paying 
special attention to changes in the manner in which records are 
organized, indexed, or retrieved that result in a change in the nature 
or scope of these records. When any of the aforementioned changes 
occur, the Privacy Act requires agencies to publish in the Federal 
Register upon revision of a system of records, a notice that describes 
the amendments to the system of records.
    The Privacy Act also requires each agency that proposes to 
establish a new system of records, or significantly modify an existing 
system of records (such as by adding new routine uses), to provide 
adequate advance notice of any such proposal to the OMB, the Committee 
on Oversight and Reform of the House of Representatives, and the 
Committee on Homeland Security and Governmental Affairs of the Senate 
(5 U.S.C. 552a(r)). The purpose of providing the advance notice to OMB 
and Congress is to permit an evaluation of the potential effect of the 
proposal on the privacy and other rights of individuals. The Department 
filed a report describing the amended system of records covered by this 
notice with the Chair of the Senate Committee on Homeland Security and 
Governmental Affairs, the Chair of the House Committee on Oversight and 
Reform, and the Deputy Administrator of the Office of Information and 
Regulatory Affairs, OMB, on March 29, 2022.

SYSTEM NAME AND NUMBER:
    COMMERCE/OIG-1, OIG Investigative Records.

SECURITY CLASSIFICATION:
    Controlled Unclassified Information (CUI).

SYSTEM LOCATIONS:
    U.S. Department of Commerce, Office of Inspector General, 1401 
Constitution Avenue NW, Washington, DC 20230, and U.S. Department of 
Commerce, Office of Inspector General, regional and field offices.

SYSTEM MANAGER AND ADDRESS:
    Assistant Inspector General for Investigations, Room 7886B, Office 
of Inspector General, United States Department of Commerce, 1401 
Constitution Ave. NW, Washington, DC 20230.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    The Inspector General Act of 1978, as amended, 5 U.S.C. App. 
(Inspector General Act).

PURPOSE(S) OF THE SYSTEM:
    The records contained in this system are used or are available for 
use by the Office of Inspector General (OIG) to carry out its statutory 
responsibilities under the Inspector General Act to conduct and 
supervise investigations, prevent and detect fraud, waste, 
mismanagement, and abuse, and promote economy, efficiency, and 
effectiveness in the programs and operations of the Department of 
Commerce (the Department). The records may be used in the course of 
investigating individuals and entities suspected of criminal, civil, or 
administrative misconduct and in supporting related judicial and 
administrative proceedings or in conducting preliminary inquiries 
undertaken to determine whether to commence an investigation.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    In connection with its investigative duties, OIG maintains records 
in its records system on the following categories of individuals 
insofar as they may be relevant to any investigation or preliminary 
inquiry undertaken to determine whether to commence an investigation: 
subjects of investigations; complainants; witnesses; confidential and 
non-confidential informants; contractors; subcontractors; recipients of 
Federal funds and their contractors/subcontractors and employees; 
individuals interacting with Department employees or management; 
current, former, and prospective Department employees; alleged 
violators of Department rules and regulations; union officials; 
individuals who are investigated and/or interviewed; persons suspected 
of violations of administrative, civil, and/or criminal provisions; 
grantees; sub-grantees; lessees; licensees; persons engaged in official 
business with the Department; or other persons identified by OIG or by 
other agencies, constituent units of the Department, and members of the 
general public in connection with the authorized functions of the OIG.

CATEGORIES OF RECORDS IN THE SYSTEM:
    The system contains investigative reports and materials received, 
gathered, or created regarding or supporting investigations, or 
preliminary inquiries undertaken to determine whether to commence an 
investigation, of administrative, civil, and criminal matters by OIG 
and/or other Federal, State, local, tribal, territorial, non-
governmental, international, foreign regulatory, or foreign law 
enforcement agencies or entities. Categories of records may include: 
complaints; requests to investigate; information contained in criminal, 
civil, or administrative referrals; statements from subjects and/or 
witnesses; affidavits, transcripts, police reports, photographs, and/or 
documents relative to a subject's prior criminal record; medical 
records; accident reports; materials and intelligence information from 
other governmental investigatory or law enforcement organizations; 
information relative to the status of a particular complaint or 
investigation, including any determination relative to criminal 
prosecution, civil, or administrative action; general case management 
documentation; subpoenas and evidence obtained in response to 
subpoenas; evidence logs; pen registers; correspondence; personal 
information, including financial, employment, and biometric data and 
Social Security Numbers; forensic computer images; records of 
investigation; and other data and evidence received, collected, or 
generated by OIG's Office of Investigations while conducting its 
official duties. Social Security Numbers are maintained in the system 
pursuant to authority under the Inspector General Act and are collected 
or received and maintained in the system as necessary by OIG to carry 
out its statutory responsibilities under the Inspector General Act.

RECORD SOURCE CATEGORIES:
    As described below in ``Exemptions Promulgated for the System,'' 
the OIG claims an exemption from disclosure of record source categories 
under 5 U.S.C. 552a(e)(4)(I). Notwithstanding the foregoing, OIG may 
collect information from a wide variety of sources, including 
information from the Department and other Federal, State, and local 
agencies, subjects, witnesses, complainants, victims, confidential and 
non-confidential sources, individuals, and non-governmental entities.

[[Page 35725]]

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND PURPOSES OF SUCH USES:
    In addition to those disclosures generally permitted under 5 U.S.C. 
552a(b), all or a portion of the records or information contained in 
this system may be disclosed to authorized individuals and/or entities, 
as is determined to be compatible with the purposes for which the 
record was collected, as a routine use pursuant to 5 U.S.C. 552a(b)(3) 
as follows:
    1. In the course of presenting evidence to a court, magistrate, or 
administrative tribunal, including disclosures to duly-authorized 
investigators or opposing parties in the course of discovery or 
settlement negotiations.
    2. To a Member of Congress submitting a request involving an 
individual when the individual has requested assistance from the Member 
with respect to the subject matter of the record.
    3. To the Office of Management and Budget (OMB) in connection with 
the review of private relief legislation as set forth in OMB Circular 
No. A-19 at any stage of the legislative coordination and clearance 
process as set forth in that Circular.
    4. To the Department of Justice (DOJ) or any other Federal agency 
that has an interest in the record in connection with determining 
whether disclosure thereof is required by the Freedom of Information 
Act (5 U.S.C. 552) (FOIA).
    5. To DOJ or any other Federal agency, to the extent necessary to 
obtain their advice on any matter relevant to an OIG investigation, 
including matters concerning the FOIA and the Privacy Act (5 U.S.C. 
552a).
    6. To the Office of Personnel Management (OPM) for personnel 
research purposes; as a data source for management information; for the 
production of summary descriptive statistics and analytical studies in 
support of the function for which the records are collected and 
maintained; or for related manpower studies.
    7. To the General Services Administration (GSA) or the National 
Archives and Records Administration (NARA) during an inspection of 
records conducted by GSA or NARA under the authority of 44 U.S.C. 2904 
and 2906. Such disclosure shall be made in accordance with the GSA or 
NARA regulations governing inspection of records for this purpose and 
any other relevant (i.e., GSA, NARA, or Department) directive. Such 
disclosure shall not be used to make determinations about individuals.
    8. To the Office of Government Information Services (OGIS), NARA, 
to the extent necessary to fulfill its responsibilities in 5 U.S.C. 
552(h) to review administrative policies, procedures, and compliance 
with the FOIA, and to facilitate OGIS' offering of mediation services 
to resolve disputes between persons making FOIA requests and 
administrative agencies.
    9. To the appropriate agency or entity, whether Federal, State, 
local, tribal, territorial, foreign, or international, charged with the 
responsibility for investigating or prosecuting a violation of any law, 
rule, regulation, or order. Routine use for law enforcement purposes 
also includes disclosure to individuals or to agencies, whether 
Federal, State, local, tribal, territorial, foreign, or international, 
when necessary to further the ends of an investigation.
    10. To the DOJ or any other Federal agency that is responsible for 
representing Department interests in connection with judicial, 
administrative, or other proceedings. This includes circumstances in 
which:
    (1) the Department or OIG, or any component thereof;
    (2) any employee of the Department or OIG in his or her official 
capacity;
    (3) any employee of the Department or OIG in his or her individual 
capacity, where DOJ or any other agency that is responsible for 
representing Department interests has agreed to represent or is 
considering a request to represent the employee; or
    (4) the United States, or any of its components, is a party to a 
pending or potential judicial, administrative, or other proceeding or 
has an interest in such proceeding; the Department or OIG is likely to 
be affected by the proceeding; or the Department or OIG determines that 
the use of such records by the DOJ or any other Federal agency that is 
responsible for representing Department interests is relevant and 
necessary to the proceeding.
    11. To any source from which additional information is requested in 
order to obtain information relevant to: A decision by either the 
Department or OIG concerning the hiring, assignment, or retention of an 
individual or other personnel action; the issuance, renewal, retention, 
or revocation of a security clearance; the execution of a security or 
suitability investigation; the letting of a contract; or the issuance, 
retention, or revocation of a license, grant, award, contract, or other 
benefit to the extent the information is relevant and necessary to a 
decision by the Department or OIG on the matter.
    12. To a Federal, State, local, tribal, territorial, foreign, 
international, or other public authority in response to its request in 
connection with: The hiring, assignment, or retention of an individual; 
the issuance, renewal, retention, or revocation of a security 
clearance; the reporting of an investigation of an individual; the 
execution of a security or suitability investigation; the letting of a 
contract; or the issuance, retention, or revocation of a license, 
grant, award, contract, or other benefit conferred by that entity to 
the extent that the information is relevant and necessary to the 
requesting entity's decision on the matter.
    13. In the event that a record, either by itself or in combination 
with other information, indicates a violation or potential violation of 
law or contract, whether civil, criminal or regulatory in nature, and 
whether arising by general statute or particular program statute or 
contract, or rule, regulation, or order issued pursuant thereto, or the 
necessity to protect an interest of the Department or OIG, the relevant 
records in the system of records may be referred, as a routine use, to 
the appropriate agency or entity, whether federal, state, local, 
tribal, territorial, or foreign, or international, charged with the 
responsibility of investigating or prosecuting such violation or 
charged with enforcing or implementing the statute or contract, or 
rule, regulation or order issued pursuant thereto, or protecting the 
interest of the Department or OIG.
    14. To any source from which additional information is requested, 
either private or governmental, to the extent necessary to solicit 
information relevant to any investigation, audit, or evaluation.
    15. To a foreign government or international organization pursuant 
to an international treaty, convention, implementing legislation, or 
executive agreement entered into by the United States.
    16. To contractors, grantees, consultants, or volunteers performing 
or working on a contract, service, grant, cooperative agreement, job, 
or other activity for the Department or OIG, who have a need to access 
the information in the performance of their duties or activities. When 
appropriate, recipients will be required to comply with the 
requirements of the Privacy Act as provided in 5 U.S.C. 552a(m).
    17. To representatives of OPM, the Office of Special Counsel, the 
Merit Systems Protection Board, the Federal Labor Relations Authority, 
the Equal Employment Opportunity Commission, the Office of Government 
Ethics, and

[[Page 35726]]

other Federal agencies in connection with their efforts to carry out 
their responsibilities to conduct examinations, investigations, and/or 
settlement efforts, in connection with administrative grievances, 
complaints, claims, or appeals filed by an employee, or as may be 
authorized by law.
    18. To a grand jury agent pursuant to a Federal or State grand jury 
subpoena or to a prosecution request that such record be released for 
the purpose of its introduction to a grand jury.
    19. To the Departments of the Treasury and Justice in circumstances 
in which OIG seeks to obtain, or has in fact obtained, an ex parte 
court order to obtain tax return information from the Internal Revenue 
Service.
    20. To any Federal official charged with the responsibility to 
conduct qualitative assessment reviews of internal safeguards and 
management procedures employed in investigative operations for purposes 
of reporting to the President and Congress on the activities of OIG. 
This disclosure category includes other Federal Offices of Inspectors 
General and members of the Council of the Inspectors General on 
Integrity and Efficiency, and officials and administrative staff within 
their investigative chain of command, as well as authorized officials 
of DOJ and its component, the Federal Bureau of Investigation.
    21. To appropriate agencies, entities, and persons when (1) the 
Department or the OIG suspects or has confirmed that there has been a 
breach of the system of records; (2) the Department or the OIG has 
determined that as a result of the suspected or confirmed breach there 
is a risk of harm to individuals, the Department, the OIG (including 
its information systems, programs, and operations), the Federal 
Government, or national security; and (3) the disclosure made to such 
agencies, entities, and persons is reasonably necessary to assist in 
connection with the Department's or OIG's efforts to respond to the 
suspected or confirmed breach or to prevent, minimize, or remedy such 
harm.
    22. To another Federal agency or Federal entity, when the OIG 
determines that information from this system of records is reasonably 
necessary to assist the recipient agency or entity in (1) responding to 
a suspected or confirmed breach or (2) preventing, minimizing, or 
remedying the risk of harm to individuals, the recipient agency or 
entity (including its information systems, programs, and operations), 
the Federal Government, or national security, resulting from a 
suspected or confirmed breach.
    23. To the public or to the media for release to the public when 
(1) the matter under investigation has become public knowledge or the 
Inspector General determines that such disclosure is necessary to 
preserve confidence in the integrity of the Inspector General audit, 
inspection, review, or investigative process, or is necessary to 
demonstrate the accountability of Department employees, officers, or 
individuals covered by the system; and (2) the Inspector General, after 
receipt of a written recommendation from Counsel to the Inspector 
General, makes a written determination that the release of the specific 
information in the context of a particular case would not constitute an 
unwarranted invasion of personal privacy.
    24. To Congress, congressional committees, or the staffs thereof, 
in order to fulfill the Inspector General's responsibility, as mandated 
by the Inspector General Act, to keep the Congress fully and currently 
informed concerning fraud and other serious problems, abuses, and 
deficiencies concerning the administration of programs and operations 
administered or financed by the Department.
    25. To a Federal, State, local, or foreign agency, or other public 
authority, for use in computer matching programs or similar activities, 
as authorized by the Inspector General Act, to prevent and detect 
fraud, waste, and abuse and to support civil and criminal law 
enforcement activities of any agency or its components.

POLICIES AND PRACTICES FOR STORAGE OF RECORDS:
    Paper records and other media (photographs, audio recording, 
diskettes, CDs, etc.) are kept in limited-access areas during duty 
hours, which are locked during nonduty hours. Electronic records are 
maintained on servers, which house OIG's case management system and 
electronic discovery tool. Servers are maintained in a secured, 
restricted-area facility.

POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:
    Electronic searches may be performed by search criteria that 
include case numbers, names of individuals or organizations, and other 
key word search variations. Paper records are retrieved by indices 
cross-referenced to file numbers.

POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:
    Records are retained and disposed of in accordance with OIG Records 
Retention Schedules approved by NARA.

ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:
    Paper records are kept in limited-access areas during duty hours 
and in locked offices during nonduty hours, and are used only by 
authorized, screened personnel. Electronic records are stored on 
servers maintained in a locked facility that is secured at all times by 
security systems and video cameras. Data in the system are encrypted 
and password protected. Access to electronic records is restricted to 
OIG staff and contractors individually authorized to access the case 
management or electronic discovery system. Passwords are changed 
periodically, in accordance with OIG policy. Backup tapes are stored in 
a locked and controlled room in a secure off-site facility.

RECORD ACCESS PROCEDURES:
    The Inspector General has exempted this system from the access 
procedures of the Privacy Act.

CONTESTING RECORD PROCEDURES:
    The Inspector General has exempted this system from the contest 
procedures of the Privacy Act.

NOTIFICATION PROCEDURES:
    The Inspector General has exempted this system from the procedures 
of the Privacy Act relating to individuals' requests for notification 
of the existence of records on themselves.

EXEMPTIONS PROMULGATED FOR THE SYSTEM:
    Under 5 U.S.C. 552a(j)(2), the head of any agency may exempt any 
system of records within the agency from certain provisions of the 
Privacy Act, if the agency or component that maintains the system 
performs as its principal function any activities pertaining to the 
enforcement of criminal laws. The Inspector General Act mandates that 
the Inspector General recommend policies for, and conduct, supervise 
and coordinate activities in the Department and between the Department 
and other Federal, State, and local government agencies with respect to 
all matters relating to the prevention and detection of fraud in 
programs and operations administered or financed by the Department, and 
to the identification and prosecution of participants in such fraud. 
Under the Inspector General Act, whenever the Inspector General has 
reasonable grounds to believe there has been a violation of Federal 
criminal law, the Inspector General must report the matter 
expeditiously to the Attorney General. In addition to these principal 
functions pertaining to the enforcement of criminal laws, the Inspector 
General

[[Page 35727]]

may receive and investigate complaints on information from various 
sources concerning the possible existence of activities constituting 
violations of law, rules, or regulations, or mismanagement, gross waste 
of funds, abuses of authority, or substantial and specific danger to 
the public health and safety. The provisions of the Privacy Act from 
which exemptions are claimed under 5 U.S.C. 552a(j)(2) are as follows: 
5 U.S.C. 552a(c)(3) and (4); 5 U.S.C. 552a(d); 5 U.S.C. 552a(e)(1), (2) 
and (3); 5 U.S.C. 552a(e)(4)(G), (H), and (I); 5 U.S.C. 552a(e)(5) and 
(8); 5 U.S.C. 552a(f); and 5 U.S.C. 552a(g).
    To the extent that the exemption under 5 U.S.C. 552a(j)(2) is held 
to be invalid, then the exemptions under 5 U.S.C. 552a(k)(1), (k)(2), 
and (k)(5) are claimed for all material which meets the criteria of 
these three subsections.
    The provisions of the Privacy Act from which exemptions are claimed 
under 5 U.S.C. 552a(k)(1), (k)(2) and (k)(5) are as follows: 5 U.S.C. 
552a(c)(3); 5 U.S.C. 552a(d); 5 U.S.C. 552a(e)(1); 5 U.S.C. 
552a(e)(4)(G), (H), and (I); and 5 U.S.C. 552a(f).
    Reasons for exemptions: In general, the exemption of this 
information and material is necessary to accomplish the law enforcement 
function of the Office of Inspector General, to prevent subjects of 
investigations from frustrating the investigatory process, to prevent 
the disclosure of investigative techniques, to fulfill commitments made 
to protect the confidentiality of sources, to maintain access to 
sources of information, and to avoid endangering these sources and law 
enforcement personnel. Additional details are as follows:
    Reasons for exemptions under 5 U.S.C. 552a(j)(2) and (k)(2):
    (1) 5 U.S.C. 552a(c)(3) requires that upon request, an agency must 
give an individual named in a record an accounting which reflects the 
disclosure of the record to other persons or agencies. This accounting 
must state the date, nature, and purpose of each disclosure of the 
record and the name and address of the recipient. The application of 
this provision would alert subjects of an investigation to the 
existence of the investigation and that such persons are subjects of 
that investigation. Since release of such information to subjects of an 
investigation would provide the subjects with significant information 
concerning the nature of the investigation, it could result in the 
altering or destruction of documentary evidence, improper influencing 
of witnesses, and other activities that could impede or compromise the 
investigation. More broadly, the application of this provision could 
reveal the OIG's investigative interests, which could compromise those 
investigative interests. Application of this provision could also 
disclose the confidentiality or privacy interests of others.
    (2) 5 U.S.C. 552a(c)(4), (d), (e)(4)(G) and (H), (f) and (g) relate 
to an individual's right to be notified of the existence of records 
pertaining to such individual; requirements for identifying an 
individual who requests access to records; the agency procedures 
relating to access to records and the contest of information contained 
in such records; and the civil remedies available to the individual in 
the event of adverse determinations by an agency concerning access to 
or amendment of information contained in records systems. This system 
is exempt from the foregoing provisions for the reasons set forth in 
this paragraph. Notifying an individual at the individual's request of 
the existence of investigative records pertaining to such individual, 
or granting access to an investigative file, could interfere with 
investigative and enforcement proceedings, deprive co-defendants of a 
right to a fair trial or other impartial adjudication, constitute an 
unwarranted invasion of personal privacy of others, disclose the 
identity of confidential sources, reveal confidential information 
supplied by these sources, and disclose investigative techniques and 
procedures.
    (3) 5 U.S.C. 552a(e)(4)(I) requires the publication of the 
categories of sources of records in each system of records. The 
application of this provision could require disclosure of investigative 
techniques and procedures and cause sources to refrain from giving such 
information because of fear of reprisal, or fear of breach of promises 
of anonymity and confidentiality. This would compromise the ability to 
conduct investigations, and to identify, detect, and apprehend 
violators.
    (4) 5 U.S.C. 552a(e)(1) requires each agency to maintain in its 
records only such information about an individual that is relevant and 
necessary to accomplish a purpose of the agency required by statute or 
Executive Order. An exemption from the foregoing is needed:
    a. Because it is not possible to determine relevance or necessity 
of specific information in the early stages of a criminal or other 
investigation.
    b. Relevance and necessity are questions of judgment and timing. 
What appears relevant and necessary when collected may ultimately be 
determined to be unnecessary. It is only after the information is 
evaluated that the relevance and necessity of such information can be 
established.
    c. In any investigation the Inspector General may obtain 
information concerning the violations of laws other than those within 
the scope of his or her jurisdiction. In the interest of effective law 
enforcement, the Inspector General should retain this information as it 
may aid in establishing patterns of criminal activity and provide leads 
for those law enforcement agencies charged with enforcing other 
segments of criminal or civil law.
    d. In interviewing persons, or obtaining other forms of evidence 
during an investigation, information may be supplied to the 
investigator which relates to matters incidental to the main purpose of 
the investigation, but which may relate to matters under the 
investigative jurisdiction of another agency. Such information cannot 
readily be segregated.
    (5) 5 U.S.C. 552a(e)(2) requires an agency to collect information 
to the greatest extent practicable directly from the subject individual 
when the information may result in adverse determinations about an 
individual's rights, benefits, and privileges under Federal programs. 
The application of the provision would impair investigations of illegal 
acts, violations of the rules of conduct, merit system, and any other 
misconduct for the following reasons:
    a. In certain instances the subject of an investigation cannot be 
required to supply information to investigators. In those instances, 
information relating to a subject's illegal acts, violations of rules 
of conduct, or any other misconduct, etc., must be obtained from other 
sources.
    b. Most information collected about an individual under 
investigation is obtained from third parties such as witnesses and 
informers. It is not feasible to rely upon the subject of the 
investigation as a source for information regarding his or her 
activities.
    c. The subject of an investigation will be alerted to the existence 
of an investigation if any attempt is made to obtain information from 
the subject. This could afford the individual the opportunity to 
conceal any criminal activities to avoid apprehension.
    d. In any investigation, it is necessary to obtain evidence from a 
variety of sources other than the subject of the investigation to 
verify the evidence necessary for successful litigation.
    (6) 5 U.S.C. 552a(e)(3) requires that an agency must inform an 
individual who is asked to supply information of:
    a. The authority under which the information is sought and whether

[[Page 35728]]

disclosure of the information is mandatory or voluntary,
    b. The purposes for which the information is intended to be used,
    c. The routine uses which may be made of the information, and
    d. The effects on the individual, if any, of not providing the 
requested information. The reasons for exempting this system of records 
from the foregoing provision are as follows:
    (i) The disclosure to the subject of the investigation as stated in 
(b) above would provide the subject with substantial information 
relating to the nature of the investigation and could impede or 
compromise the investigation.
    (ii) If the subject were informed of the information required by 
this provision, it could seriously interfere with undercover activities 
requiring disclosure of undercover agents' identity and impairing their 
safety, as well as impairing the successful conclusion of the 
investigation.
    (iii) Individuals may be contacted during preliminary information-
gathering in investigations before any individual is identified as the 
subject of an investigation. Informing the individual of the matters 
required by this provision would hinder or adversely affect any present 
or subsequent investigations.
    (7) 5 U.S.C. 552a(e)(5) requires that records be maintained with 
such accuracy, relevance, timeliness, and completeness as is reasonably 
necessary to assure fairness to the individual in making any 
determination about an individual. Because the law defines ``maintain'' 
to include the collection of information, complying with this provision 
would prevent the collection of any data not shown to be accurate, 
relevant, timely, and complete at the moment of its collection. In 
gathering information during the course of an investigation it is not 
possible to determine this prior to collection of the information. 
Facts are first gathered and then placed into a logical order which 
objectively proves or disproves criminal behavior on the part of the 
suspect. Material which may seem unrelated, irrelevant, incomplete, 
untimely, etc., may take on added meaning as an investigation 
progresses. The restrictions in this provision could interfere with the 
preparation of a complete investigative report.
    (8) 5 U.S.C. 552a(e)(8) requires an agency to make reasonable 
efforts to serve notice on an individual when any record of such 
individual is made available to any persons under compulsory legal 
process when such process becomes a matter of public record. The notice 
requirements of this provision could prematurely reveal an ongoing 
criminal investigation to the subject of the investigation.
    Reasons for exemptions under 5 U.S.C. 552a(k)(1):
    (1) 5 U.S.C. 552a(c)(3) requires that upon request, an agency must 
give an individual named in a record an accounting which reflects the 
disclosure of the record to other persons or agencies. This accounting 
must state the date, nature, and purpose of each disclosure of the 
record and the name and address of the recipient. The application of 
this provision would alert subjects of an investigation to the 
existence of the investigation, and that such persons are subjects of 
that investigation, information which if known might cause damage to 
national defense or foreign policy.
    (2) 5 U.S.C. 552a(d), (e)(4)(G) and (H), and (f) relate to an 
individual's right to be notified of the existence of records 
pertaining to such individual; requirements for identifying an 
individual who requests access to records; and the agency procedures 
relating to access to records and the contest of information contained 
in such records. This system is exempt from the foregoing provisions 
for the following reasons: To notify an individual at the individual's 
request of the existence of records in an investigative file pertaining 
to such individual or to grant access to an investigative file could 
interfere with investigations undertaken in connection with national 
security; or could disclose the identity of sources kept secret to 
protect national defense or foreign policy or reveal confidential 
information supplied by these sources.
    (3) 5 U.S.C. 552a(e)(4)(I) requires the publication of the 
categories of sources of records in each system of records. The 
application of this provision could disclose the identity of sources 
kept secret to protect national defense or foreign policy.
    (4) 5 U.S.C. 552a(e)(1) requires each agency to maintain in its 
records only such information about an individual that is relevant and 
necessary to accomplish a purpose of the agency required by statute or 
Executive Order. An exemption from the foregoing is needed:
    a. Because it is not possible to determine relevance or necessity 
of specific information in the early stages of an investigation 
involving national defense or foreign policy matters.
    b. Relevance and necessity are questions of judgment and timing. 
What appears relevant and necessary when collected may ultimately be 
determined to be unnecessary. It is only after the information is 
evaluated that the relevance and necessity of such information can be 
established.
    c. In any investigation the Inspector General may obtain 
information concerning the violations of laws other than those within 
the scope of his or her jurisdiction. In the interests of effective law 
enforcement, the Inspector General should retain this information as it 
may aid in establishing patterns of criminal activity and provide leads 
for those law enforcement agencies charged with enforcing other 
segments of criminal or civil law.
    d. In interviewing persons, or obtaining forms of evidence during 
an investigation, information may be supplied to the investigator which 
relate to matters incidental to the main purpose of the investigation, 
but which may relate to matters under the investigative jurisdiction of 
another agency. Such information cannot readily be segregated.
    Reasons for exemptions under 5 U.S.C. 552a(k)(5):
    (1) 5 U.S.C. 552a(c)(3) requires that upon request, an agency must 
give an individual named in a record an accounting which reflects the 
disclosure of the record to other persons or agencies. This accounting 
must state the date, nature, and purpose of each disclosure of the 
record and the name and address of the recipient. The application of 
this provision would alert subjects of an investigation to the 
existence of the investigation and that such persons are subjects of 
that investigation. Since release of such information to subjects of an 
investigation would provide the subject with significant information 
concerning the nature of the investigation, it could result in the 
altering or destruction of documentary evidence, improper influencing 
of witnesses, and other activities that could impede or compromise the 
investigation.
    (2) 5 U.S.C. 552a(d), (e)(4)(G) and (H), and (f) relate to an 
individual's right to be notified of the existence of records 
pertaining to such individual; requirements for identifying an 
individual who requests access to records; and the agency procedures 
relating to access to records and the contest of information contained 
in such records. This system is exempt from the foregoing provisions 
for the reasons set forth in this paragraph. Notifying an individual at 
the individual's request of the existence of investigative records 
pertaining to such individual, or granting access to an investigative 
file, could interfere with investigative and enforcement proceedings, 
deprive co-defendants of a right to a fair trial or

[[Page 35729]]

other impartial adjudication, constitute an unwarranted invasion of 
personal privacy of others, disclose the identity of confidential 
sources and reveal confidential information supplied by these sources, 
and disclose investigative techniques and procedures.
    (3) 5 U.S.C. 552a(e)(4)(I) requires the publication of the 
categories of sources of records in each system of records. The 
application of this provision could disclose investigative techniques 
and procedures and cause sources to refrain from giving such 
information because of fear of reprisal, or fear of breach of promises 
of anonymity and confidentiality. This would compromise the ability to 
conduct investigations, and to make fair and objective decisions on 
questions of suitability for Federal employment and related issues.
    (4) 5 U.S.C. 552a(e)(1) requires each agency to maintain in its 
records only such information about an individual that is relevant and 
necessary to accomplish a purpose of the agency required by statute or 
Executive Order. An exemption from the foregoing is needed:
    a. Because it is not possible to determine relevance or necessity 
of specific information in the early stages of an investigation.
    b. Relevance and necessity are questions of judgment and timing. 
What appears relevant and necessary when collected may ultimately be 
determined to be unnecessary. It is only after that information is 
evaluated that the relevance and necessity of such information can be 
established.
    c. In any investigation the Inspector General may obtain 
information concerning the violations of laws other than those within 
the scope of his or her jurisdiction. In the interest of effective law 
enforcement, the Inspector General should retain this information as it 
may aid in establishing patterns of criminal activity and provide leads 
for those law enforcement agencies charged with enforcing other 
segments of criminal or civil law.
    d. In interviewing persons, or obtaining other forms of evidence 
during an investigation, information may be supplied to the 
investigator which relate to matters incidental to the main purpose of 
the investigation, but which may relate to matters under investigative 
jurisdiction of another agency. Such information cannot readily be 
segregated.

HISTORY:
    80 FR 34887, June 18, 2015, Effective Date Notice.
    80 FR 26217, May 7, 2015, Notice of Proposed Amendment.
    77 FR 15038, March 14, 2012, Effective Date Notice.
    77 FR 5234, February 2, 2012, Notice of Proposed Amendment.
    77 FR 2692, January 19, 2012, Notice of Proposed Amendment.
    March 29, 2022, Notice of New System of Record.

Jennifer Goode,
Department of Commerce, Deputy Director and Acting Chief Privacy 
Officer, and Director of the Office of Privacy and Open Government.
[FR Doc. 2022-12565 Filed 6-10-22; 8:45 am]
BILLING CODE 3510-22-P


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