52296 Federal Register / Vol. 70, No. 170 / Friday, September 2, 2005 / Rules and Regulations 

DEPARTMENT OF TRANSPORTATION 

National Highway Traffic Safety 

Administration 

23 CFR Part 1327 

[Docket No. NHTSA–05–22265] 

RIN 2127–AJ66 

Procedures for Participating in and 

Receiving Data From the National 

Driver Register Problem Driver Pointer 

System Pursuant to a Personnel 

Security Investigation and 

Determination 

AGENCY: National Highway Traffic 

Safety Administration (NHTSA), 

Department of Transportation (DOT). 

ACTION: Interim final rule; request for 

comments. 

SUMMARY: This interim final rule 

amends the agency’s National Driver 

Register (NDR) regulations to implement 

an amendment to the National Driver 

Register Act of 1982. The amendment 

authorizes a Federal department or 

agency that investigates an individual 

for the purpose of determining the 

individual’s eligibility to access national 

security information to request and 

receive information from the National 

Driver Register, upon request and 

consent of the individual. This interim 

final rule establishes the procedures for 

individuals to request and for the 

Federal department or agency to receive 

NDR information.0 

DATES: This interim final rule becomes 

effective on September 30, 2005. 

Comments on this interim final rule are 

due no later than November 1, 2005. 

FOR FURTHER INFORMATION CONTACT: For 

program issues: Mr. Sean McLaurin, 

Chief, National Driver Register, NPO–

124, National Highway Traffic Safety 

Administration, 400 Seventh Street, 

SW., Washington, DC, 20590. 

Telephone: (202) 366–4800. For legal 

issues: Mr. Roland (R.T.) Baumann III, 

Attorney-Advisor, Office of the Chief 

Counsel, NCC–113, National Highway 

Traffic Safety Administration, 400 

Seventh Street, SW., Washington, DC, 

20590. Telephone: (202) 366–1834. 

SUPPLEMENTARY INFORMATION: 

I. Background 

A. National Driver Register 

The National Driver Register (NDR) is 

a central file of information on 

individuals whose license to operate a 

motor vehicle in a State has been 

denied, revoked, suspended, or 

canceled, for cause, or who have been 

convicted of certain serious trafficrelated violations in a State, such as 

racing on the highway or driving while 

impaired by alcohol or other drugs. The 

NDR was designed to prevent such 

individuals from obtaining a driver’s 

license in another State, using a device 

known as the Problem Driver Pointer 

System (PDPS). 

The PDPS consists of a list of problem 

drivers (with certain identifying 

information) contained in ‘‘pointer’’

records. These records ‘‘point’’ to the 

State where the substantive adverse 

records about the driver can be 

obtained. The PDPS system is fully 

automated and enables State driver 

licensing officials to determine 

instantaneously whether another State 

has taken adverse action against a 

license applicant. 

B. National Driver Register Act of 1982 

The NDR Act of 1982, as amended, 49 

U.S.C. 30301, et seq., authorizes State 

chief driver licensing officials to request 

and receive information from the NDR 

for driver licensing and driver 

improvement purposes. When an 

individual applies for a driver’s license, 

for example, these State officials are 

authorized to request and receive NDR 

information to determine whether the 

applicant’s driver’s license has been 

withdrawn for cause or the applicant 

has been convicted of specific offenses 

in another State. Because the NDR is a 

nationwide index, State chief driver 

licensing officials need only submit a 

single inquiry to obtain this 

information. 

State chief driver licensing officials 

also are authorized under the NDR Act 

to request NDR information on behalf of 

other NDR users for specific 

transportation safety purposes. The NDR 

Act authorizes the following entities to 

receive NDR information for limited 

transportation purposes: the National 

Transportation Safety Board and the 

Federal Highway Administration for 

accident investigation purposes; 

employers and prospective employers of 

motor vehicle operators; the Federal 

Aviation Administration (FAA) 

regarding any individual who holds or 

has applied for an airman’s certificate; 

air carriers regarding individuals who 

are seeking employment with the air 

carrier; the Federal Railroad 

Administration (FRA) and employers or 

prospective employers of locomotive 

operators; and the U.S. Coast Guard 

regarding any individual who holds or 

who has applied for a license, certificate 

of registry, or a merchant mariner’s 

document. The Act also allows 

individuals to learn whether 

information about themselves is on the 

NDR file and to receive any such 

information. 

The NDR statute allows the head of a 

Federal department or agency 

authorized to receive information 

regarding an individual from the NDR to 

request and receive such information 

from the Secretary of Transportation. 49 

U.S.C. 30305(b)(11). This provision, by 

its operation, affords direct access to the 

NDR to identified Federal departments 

and agencies (through NHTSA), without 

the need to submit an inquiry to a State 

driver licensing official. In practice, 

virtually all Federal departments or 

agencies with specific access provisions 

have submitted inquiries directly to 

NHTSA. 

C. Recent Amendment to National 

Driver Act of 1982 

On October 28, 2004, Public Law 108–

375 amended the NDR Act of 1982. 

Section 1061 of Public Law 108–375 

allows ‘‘[a]n individual who has or is 

seeking access to national security 

information for purposes of Executive 

Order No. 12968, or any successor 

Executive order, or an individual who is 

being investigated for Federal 

employment under authority of 

Executive Order No. 10450, or any 

successor Executive order, [to] request 

the chief driver licensing official of a 

State to provide [NDR] information 

about the individual * * * to a Federal 

department or agency that is authorized 

to investigate the individual for the 

purpose of assisting in the 

determination of the eligibility of the 

individual for access to national 

security information or for Federal 

employment in a position requiring 

access to national security information.’’

This interim final rule amends the NDR 

regulations, 23 CFR Part 1327, to 

incorporate procedures governing access 

to NDR information to assist in 

personnel security investigations. 

II. Procedures for Requesting and 

Receiving NDR Information for 

Personnel Security Investigations 

Under the interim final rule, the 

procedures that a Federal department or 

agency performing personnel security 

investigations of individuals must 

follow to receive NDR information are 

similar to those followed by the FAA, 

the FRA, and the U.S. Coast Guard in 

checking their applicants for 

employment or certification. 

The Federal department or agency 

may not, itself, initiate a request for 

NDR information. Rather, the individual 

subject to a personnel security 

investigation must do so. To initiate a 

request, the individual must either 

complete, sign and submit a request to 

Federal Register / Vol. 70, No. 170 / Friday, September 2, 2005 / Rules and Regulations 52297 

the chief driver licensing official of a 

State for an NDR file search or authorize 

the Federal department or agency to 

request the chief driver licensing official 

to conduct the NDR file search by 

providing a written and signed consent. 

Just as in NDR requests for traffic safety 

purposes, the request or written consent 

must state that NDR records are being 

requested; state specifically who is 

authorized to receive the records; be 

dated and signed by the individual; and 

state that it is recommended (but not 

required) that the Federal department or 

agency verify matches with the state of 

record. Consistent with a specific 

statutory restriction concerning 

personnel security investigations, it 

must also state that the authorization is 

valid only during the performance of the 

security investigation. 

In accordance with Public Law 108–

375, requests to transmit NDR 

information to the Federal department 

or agency (made either directly by 

individuals or through a written 

consent) may be submitted through a 

State chief driver licensing official. 

Since all 50 States and the District of 

Columbia currently participate in the 

NDR PDPS, requests may be submitted 

to any of the chief driver licensing 

officials. 

Because Federal departments or 

agencies that perform personnel security 

investigations are afforded the specific 

right to receive NDR information, they 

are subject to the provision that allows 

them to request and receive such 

information from the Secretary of 

Transportation. Hence, they need not 

submit a request to the State chief driver 

licensing official. Consistent with past 

practice for safety related requests, we 

expect virtually all requests from 

Federal departments or agencies that 

perform personnel security 

investigations will be sent directly to 

NHTSA. 

To implement these procedures, the 

interim final rule amends the NDR 

regulation at 23 CFR 1327.5, setting 

forth requirements that States must 

follow to accept NDR inquiries 

submitted to a chief driver licensing 

official. The interim final rule also 

amends the regulatory sections at 23 

CFR 1327.6 and 1327.7, setting forth 

procedures for NDR inquiries submitted 

directly to the agency. To make clear 

that a covered personnel security 

investigation is limited to an 

investigation for the purpose of assisting 

in the determination of eligibility for 

access to national security information 

or for Federal employment in a position 

requiring access to national security 

information, the interim final rule adds 

a definition of ‘‘personnel security 

investigation’’ to 23 CFR 1327.3. 

Interim Final Rule 

This document is published as an 

interim final rule. Accordingly, the 

changes to part 1327 described above 

become effective on September 30, 

2005. No further regulatory action by 

NHTSA is necessary to make these 

changes effective. 

Publication as an interim final rule, 

without prior notice and opportunity for 

comment, is necessary to permit 

individuals subject to background 

investigations for security clearances to 

submit requests to the NDR and Federal 

departments or agencies to receive NDR 

information as soon as possible. The 

changes made to the regulation in this 

interim final rule are minor and simply 

reflect the statutory amendments 

enacted by Public Law 108–375. These 

changes create procedures that are 

nearly identical to existing regulatory 

procedures being followed by the States, 

by airmen, by seamen/merchant 

mariners, and by others in the field of 

transportation safety, which were 

previously subjected to notice and 

opportunity for comment. 

Statutory Basis for This Rule 

This interim final rule implements a 

NDR access provision mandated by the 

Ronald W. Reagan National Defense 

Authorization Act for Fiscal Year 2005 

(Pub. L. 108–375, Section 1061). The 

NDR Act of 1982 (Pub. L. 97–364) 

provides general authority to issue 

regulations regarding access to the 

PDPS. 

Comments 

NHTSA requests comments on these 

regulatory changes. All comments 

submitted in response to this document 

will be considered by the agency. 

Following the close of the comment 

period, NHTSA will publish a 

document responding to the comments, 

and if appropriate, will further amend 

the provisions of 23 CFR part 1327. 

However, the interim final rule 

published today is effective upon 

publication. 

Interested persons are invited to 

comment on this interim final rule. It is 

requested, but not required, that two 

copies be submitted. All comments 

must be limited to 15 pages in length. 

Necessary attachments may be 

appended to those submissions without 

regard to the 15-page limit. (See 49 CFR 

553.21). This limitation is intended to 

encourage commenters to detail their 

primary arguments in a concise fashion. 

You may submit your comments by 

one of the following methods: 

(1) By mail to: Docket Management 

Facility, Docket No. NHTSA–05–XXXX, 

DOT, 400 Seventh Street, SW., Nassif 

Building, Room PL–401, Washington, 

DC 20590; 

(2) By hand delivery to: Room PL–401 

on the Plaza level of the Nassif Building, 

400 Seventh Street, SW., Washington, 

DC, between 9 a.m. and 5 p.m., Monday 

through Friday; 

(3) By fax to the Docket Management 

Facility at (202) 493–2251; or 

(4) By electronic submission: log onto 

the DMS Web site at http://dms.dot.gov 

and click on ‘‘Help and Information’’ or 

‘‘Help/Info’’ to obtain instructions. 

All comments received before the 

close of business on the comment 

closing date will be considered and will 

be available for examination in the 

docket at the above address. To the 

extent possible, comments filed after the 

closing date will also be considered. 

However, the rulemaking action may 

proceed at any time after that date. The 

agency will continue to file relevant 

material in the docket as it becomes 

available after the closing date, and it is 

recommended that interested persons 

continue to examine the docket for new 

material. 

You may review submitted comments 

in person at the Docket Management 

Facility located at Room PL–401 on the 

Plaza level of the Nassif Building, 400 

Seventh Street, SW., Washington, DC, 

between 9 a.m. and 5 p.m., Monday 

through Friday. 

You may also review submitted 

comments on the Internet by taking the 

following steps: 

(1) Go to the DMS Web page at 

http://dms.dot.gov/search/. 

(2) On that page, click on ‘‘search’’. 

(3) On the next page (http:// 

dms.dot.gov/search/) type in the four 

digit docket number shown at the 

beginning of this notice. Click on 

‘‘search’’. 

(4) On the next page, which contains 

docket summary information for the 

docket you selected, click on the desired 

comments. You may also download the 

comments. Although the comments are 

imaged documents, instead of word 

processing documents, the ‘‘pdf’’

versions of the documents are word 

searchable. 

Anyone is able to search the 

electronic form of all comments 

received into any of our dockets by the 

name of the individual submitting the 

comment (or signing the comment, if 

submitted on behalf of an association, 

business, labor union, etc.). You may 

review DOT’s complete Privacy Act 

Statement in the Federal Register 

published on April 11, 2000 (Volume 

52298 Federal Register / Vol. 70, No. 170 / Friday, September 2, 2005 / Rules and Regulations 

65, Number 70; Pages 19477–78) or you 

may visit http://dms.dot.gov. 

Those persons who wish to be 

notified upon receipt of their comments 

in the docket should enclose, in the 

envelope with their comments, a selfaddressed stamped postcard. Upon 

receiving the comments, the docket 

supervisor will return the postcard by 

mail. 

Regulatory Analyses and Notices 

Executive Order 12988 (Civil Justice 

Reform) 

This action does not have any 

preemptive or retroactive effect. This 

action meets applicable standards in 

sections 3(a) and 3(b)(2) of Executive 

Order 12988, Civil Justice Reform, to 

minimize litigation, eliminate 

ambiguity, and reduce burden. 

Executive Order 12866 (Regulatory 

Planning and Review) and DOT 

Regulatory Policies and Procedures 

Executive Order 12866, ‘‘Regulatory 

Planning and Review’’ (58 FR 51735, 

October 4, 1993) provides for making 

determinations on whether a regulatory 

action is ‘‘significant’’ and therefore 

subject to Office of Management and 

Budget (OMB) review and the 

requirements of the Executive Order. 

The agency has considered the impact 

of this action under Executive Order 

12866 and determined that it is not 

significant. The action is also not 

significant under the Department of 

Transportation’s regulatory policies and 

procedures. The changes in this interim 

final rule merely reflect amendments 

contained in Public Law 108–375 

providing NDR access to another group 

of NDR individuals—individuals who 

are subject to personnel security 

investigations. Because Public Law 108–

375 provides specific NDR access to 

Federal departments or agencies 

performing personnel security 

investigations and because the NDR Act 

allows Federal agencies with specific 

access provisions to submit them 

directly to the Secretary of 

Transportation (by delegation, to 

NHTSA), we do not anticipate that this 

action will increase significantly the 

number of NDR inquiries processed by 

State driver licensing officials. Most, if 

not all, such inquiries will likely be 

submitted to NHTSA. Accordingly, a 

full regulatory evaluation is not 

required. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act of 1980 

(Pub. L. 96–354, 5 U.S.C. 601–612) 

requires an agency to review regulations 

to assess their impact on small entities 

unless the agency determines that a rule 

is not expected to have a significant 

impact on a substantial number of small 

entities. I hereby certify that the action 

would not have a significant impact on 

a substantial number of small entities. 

Accordingly, the preparation of a 

Regulatory Flexibility Analysis is not 

required. 

Paperwork Reduction Act 

There are reporting requirements 

contained in the regulation that this 

interim final rule is amending that are 

considered to be information collection 

requirements, as that term is defined by 

the Office of Management and Budget 

(OMB) in 5 CFR part 1320. This interim 

final rule does not change the reporting 

requirements for participating States or 

the procedures to be followed by 

individuals who request NDR 

information. These requirements have 

been submitted previously to and 

approved by OMB, pursuant to the 

Paperwork Reduction Act (44 U.S.C. 

3500, et seq.). These requirements have 

been approved through July 30, 2006, 

under OMB No. 2127–0001. 

National Environmental Policy Act 

The agency has reviewed this action 

for the purposes of the National 

Environmental Policy Act (42 U.S.C. 

4321, et. seq.) and has determined that 

it would not have a significant impact 

on the quality of the human 

environment. 

The Unfunded Mandates Reform Act 

The Unfunded Mandates Reform Act 

of 1995 (2 U.S.C. 1531) requires Federal 

agencies to prepare a written assessment 

of the costs, benefits, and other effects 

of proposed rules that include a Federal 

mandate likely to result in the 

expenditure by State, local, or tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

(adjusted annually for inflation) in any 

one year. This interim final rule may 

require that some States driver licensing 

officials process additional inquiries 

submitted to them for purposes of 

personnel security investigations. 

However, because the statute allows this 

type of inquiry to be submitted directly 

to the Secretary of Transportation (by 

delegation, to NHTSA), we do not 

anticipate that States will face a 

significant increase in NDR requests 

and, therefore, in associated costs. Most, 

if not all, such requirements will likely 

be submitted to NHTSA. Accordingly, 

this action does not require an 

assessment under this law. 

Executive Order 13132 (Federalism) 

This action has been analyzed in 

accordance with the principles and 

criteria contained in the Executive 

Order 12612, and it has been 

determined that this action does not 

have sufficient federalism implications 

to warrant preparation of a Federalism 

Assessment. Accordingly, a Federalism 

Assessment is not required. 

Executive Order 13175 (Consultation 

and Coordination With Indian Tribal 

Governments) 

The agency has analyzed this action 

under Executive Order 13175, and has 

determined that the action would not 

have a substantial direct effect on one or 

more Indian tribes, would not impose 

substantial direct compliance costs on 

Indian tribal governments, and would 

not preempt tribal law. Therefore, a 

tribal summary impact statement is not 

required. 

Executive Order 13045, Economically 

Significant Rules Disproportionately 

Affecting Children 

This rule is not subject to E.O. 13045 

because it is not ‘‘economically 

significant’’ as defined under E.O. 

12866, and does not concern an 

environmental, health or safety risk that 

NHTSA has reason to believe may have 

a disproportionate effect on children. 

Regulation Identifier Number (RIN) 

A regulation identifier number (RIN) 

is assigned to each regulatory section 

listed in the Unified Agenda of Federal 

Regulations. The Regulatory Information 

Service Center publishes the Unified 

Agenda in April and October of each 

year. The RIN contained in the heading 

of this document can be used to crossreference this section with the Unified 

Agenda. 

List of Subjects in 23 CFR Part 1327 

Highway safety, Intergovernmental 

relations, and Reporting and 

recordkeeping requirements. 

■ In consideration of the foregoing, the 

agency amends title 23 of CFR part 1327 

as follows: 

PART 1327—PROCEDURES FOR 

PARTICIPATING IN AND RECEIVING 

INFORMATION FROM THE NATIONAL 

DRIVER REGISTER PROBLEM DRIVER 

POINTER SYSTEM 

■ 1. The authority citation for part 1327 

continues to read as follows: 

Authority: Pub. L. 97–364, 96 Stat. 1740, 

as amended (49 U.S.C. 30301 et seq.); 

delegation of authority at 49 CFR 1.50. 

■ 2. Amend § 1327.3 by redesignating 

paragraphs (o) through (y) as paragraphs 

Federal Register / Vol. 70, No. 170 / Friday, September 2, 2005 / Rules and Regulations 52299 

(p) through (z) and by inserting new 

paragraph (o) to read as follows: 

§ 1327.3 Definitions. 

* * * * * 

(o) Personnel security investigation 

means an investigation of an individual 

for the purpose of assisting in the 

determination of the eligibility of the 

individual for access to national 

security information under the authority 

of Executive Order No. 12968, or any 

successor Executive order, or for Federal 

employment in a position requiring 

access to national security information 

under the authority of Executive Order 

No. 10450, or any successor Executive 

order. 

* * * * * 

■ 3. Amend § 1327.5 by redesignating 

paragraph (d) as (e) and by inserting 

new paragraph (d) to read as follows: 

§ 1327.5 Conditions for becoming a 

participating State. 

* * * * * 

(d) Personnel security investigations. 

The chief driver licensing official of a 

participating State shall provide for and 

establish routine procedures and forms 

to accept requests for NDR file checks 

from individuals subject to personnel 

security investigations and from Federal 

departments or agencies that are 

authorized to perform personnel 

security investigations. These 

authorized users may receive 

information from the NDR file through 

participating States. 

(1) The procedures or forms 

developed by the chief driver licensing 

official to facilitate NDR searches for 

these authorized users shall provide for 

the request to be made by the individual 

or by the Federal department or agency 

if the individual first consented to the 

search in writing. Any request to the 

chief driver licensing official and any 

written consent by the individual shall: 

(i) State that NDR records are to be 

released; 

(ii) Specifically state who is 

authorized to receive the records; 

(iii) Be signed and dated by the 

individual or individual’s legal 

representative; 

(iv) Specifically state that the 

authorization is valid only for the 

duration of the personnel security 

investigation; and 

(v) Specifically state that it is 

recommended, but not required, that the 

authorized recipient of the information 

verify matches with the State of Record. 

(2) Any request made by a Federal 

department or agency may include, in 

lieu of the actual information described 

in paragraphs (d)(1)(i) (C) through (E) of 

this section, a certification that a written 

consent was signed and dated by the 

individual or the individual’s legal 

representative, specifically stated that 

the authorization is valid only for the 

duration of the personnel security 

investigation, and specifically stated 

that it is recommended, but not 

required, that the authorized recipient 

of the information verify matches with 

the State of Record. 

(3) The chief driver licensing official 

shall provide to the authorized user a 

response indicating either Probable 

Identification (match) or No Record 

Found. In the case of probable 

identification, the State of Record will 

also be included in the response so that 

the Federal department or agency may 

obtain additional information regarding 

the individual’s driving record. 

* * * * * 

■ 4. Amend § 1327.6 by redesignating 

paragraphs (h) through (i) as paragraphs 

(i) through (j) and by inserting new 

paragraph (h) to read as follows: 

§ 1327.6 Conditions and procedures for 

other authorized users of the NDR. 

* * * * * 

(h) Federal departments or agencies 

conducting personnel security 

investigations. (1) To initiate an NDR 

file check, an individual who has or is 

seeking access to national security 

information for purposes of Executive 

Order No. 12968, or any successor 

Executive order, or an individual who is 

being investigated for Federal 

employment under authority of 

Executive Order No. 10450, or any 

successor Executive order shall follow 

the procedures specified in § 1327.7 

(2) Upon receipt of the NDR 

information, the Federal department or 

agency should make information from 

the State of Record available to the 

individual for review and comment. 

(3) In the case of a match (probable 

identification), the Federal department 

or agency conducting the personnel 

security investigation should obtain the 

substantive data relating to the record 

from the State of Record and verify that 

the person named on the probable 

identification is in fact the individual 

concerned before using the information 

as the basis for any action against the 

individual. 

(4) A Federal department or agency 

that receives information about an 

individual under this section may use 

such information only for purposes of 

the authorized investigation and only in 

accordance with applicable law. 

* * * * * 

■ 5. Amend § 1327.7 by revising 

paragraphs (a) introductory text, (d)(4), 

and (d)(5) to read as follows: 

§ 1327.7 Procedures for NDR information 

requests. 

(a) To initiate an NDR file check, an 

individual who is employed or seeking 

employment as a motor vehicle 

operator; who has applied for or 

received an airman’s certificate; who is 

employed or seeking employment as a 

locomotive operator; who holds or has 

applied for a license, certificate of 

registry, or a merchant mariner’s 

document or is an officer, chief warrant 

officer, or enlisted member of the U.S. 

Coast Guard or Coast Guard Reserve; or 

who is seeking employment as pilot 

with an air carrier; or an individual 

subject to a personnel security 

investigation; shall either: 

* * * * * 

(d) * * * 

* * * * * 

(4) Specifically state that the 

authorization is valid for only one 

search of the NDR (or in the case of a 

personnel security investigation state 

that the authorization is valid only for 

the duration of the investigation); and 

(5) Except for inquiries concerning 

personnel security investigations, 

specifically state that the NDR identifies 

probable matches that require further 

inquiry for verification; that it is 

recommended, but not required, that the 

employer/prospective employer verify 

matches with the State of Record; and 

that individuals have the right to 

request records regarding themselves 

from the NDR to verify their accuracy. 

Issued on: August 26, 2005. 

Jeffrey W. Runge, 

Administrator. 

[FR Doc. 05–17464 Filed 9–1–05; 8:45 am] 

BILLING CODE 4910–59–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9224] 

RIN 1545–BD17 

Updating Estimated Income Tax 

Regulations Under Section 6654 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final regulations. 

SUMMARY: This document contains final 

regulations relating to certain changes 

made to the law by the Tax Reform Act 

of 1984. These final regulations are 

necessary to update, clarify, and 

reorganize the rules and procedures for 

making payments of estimated income