Document ID: FEMA-2020-0032-0001
Agency: fema
Document Type: Proposed Rule
Title: Privacy Act of 1974: Implementation of Exemptions; Department of Homeland Security Federal Emergency Management Agency- 015 Fraud Investigations System of Records
Posted Date: 2021-03-22T04:00Z

[Federal Register Volume 86, Number 53 (Monday, March 22, 2021)]
[Proposed Rules]
[Pages 15138-15140]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-05644]

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DEPARTMENT OF HOMELAND SECURITY

Office of the Secretary

6 CFR Part 5

[Docket No. FEMA-2020-0032]
RIN 1660-AA98

Privacy Act of 1974: Implementation of Exemptions; Department of 
Homeland Security Federal Emergency Management Agency-015 Fraud 
Investigations System of Records

AGENCY: Federal Emergency Management Agency, U.S. Department of 
Homeland Security.

ACTION:  Notice of proposed rulemaking.

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SUMMARY:  The U.S. Department of Homeland Security (DHS) is giving 
concurrent notice of a newly established system of records pursuant to 
the Privacy Act of 1974 for the ``DHS/Federal Emergency Management 
Agency-015 Fraud Investigations System of Records'' and this proposed 
rulemaking. In this proposed rulemaking, the Department proposes to 
exempt portions of the system of records from one or more provisions of 
the Privacy Act because of criminal, civil, and administrative 
enforcement requirements.

DATES: Comments must be received on or before April 21, 2021.

ADDRESSES: You may submit comments, identified by docket number FEMA-
2020-0032, by one of the following methods:
     Federal e-Rulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Fax: 703-483-2999.
     Mail: James Holzer, Acting Chief Privacy Officer, Privacy 
Office, U.S. Department of Homeland Security, Washington, DC 20528.
    Instructions: All submissions received must include the agency name 
and docket number for this notice. All comments received will be posted 
without change to http://www.regulations.gov, including any personal 
information provided.
    Docket: For access to the docket to read background documents or 
comments received, go to http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: For general questions please contact: 
Tammi Hines, (202) 212-5100, FEMA-Privacy@fema.dhs.gov, Senior Director 
for Information Management, Federal Emergency Management Agency, 500 C 
Street SW, Washington, DC 20472-3172.

[[Page 15139]]

For privacy issues please contact: James Holzer, (202) 343-1717, 
Privacy@hq.dhs.gov, Acting Chief Privacy Officer, Privacy Office, U.S. 
Department of Homeland Security, Washington, DC 20528.

SUPPLEMENTARY INFORMATION:

I. Background

    In accordance with the Privacy Act of 1974, 5 U.S.C. 552a, the 
Department of Homeland Security (DHS) proposes to establish a new DHS 
system of records titled, ``DHS/Federal Emergency Management Agency 
(FEMA)-015 Fraud Investigations System of Records.'' This system of 
records allows DHS/FEMA to collect and maintain records relating to 
disaster fraud investigations involving misuse of federal disaster 
funds and/or benefits. This system of records assists DHS/FEMA to 
safeguard and protect federal disaster funds and/or benefits from fraud 
against the United States. This system of records further assists 
FEMA's Fraud Investigations and Inspections Division (FIID) 
recordkeeping; tracking and managing fraud inquiries, investigative 
referrals, and law enforcement requests; and case determinations 
involving disaster funds and/or benefits fraud, criminal activity, 
public safety, and national security concerns.
    DHS is claiming exemptions from certain requirements of the Privacy 
Act for DHS/FEMA-015 Fraud Investigations System of Records. 
Information covered by this system of records notice relates to 
official DHS national security and law enforcement missions, and 
exemptions are needed to protect information relating to DHS activities 
from disclosure to subjects or others related to these activities. 
Specifically, the exemptions are required to preclude subjects of these 
activities from frustrating these processes; to avoid disclosure of 
activity techniques; ensure DHS's ability to obtain information from 
third parties and other sources; and to protect the privacy of third 
parties. Disclosure of information to the subject of the inquiry could 
also permit the subject to avoid detection or apprehension, which would 
undermine the entire investigative process.
    In appropriate circumstances, when compliance would not appear to 
interfere with or adversely affect the law enforcement purposes of this 
system and the overall law enforcement process, the applicable 
exemptions may be waived on a case-by-case basis.
    A notice of system of records for DHS/FEMA-015 Fraud Investigations 
System of Records is also published in this issue of the Federal 
Register.

List of Subjects in 6 CFR Part 5

    Freedom of information; Privacy.

    For the reasons stated in the preamble, DHS proposes to amend 
Chapter I of Title 6, Code of Federal Regulations, as follows:

PART 5--DISCLOSURE OF RECORDS AND INFORMATION

0
1. The authority citation for Part 5 continues to read as follows:

    Authority: 6 U.S.C. 101 et seq.; Pub. L. 107-296, 116 Stat. 
2135; 5 U.S.C. 301.

0
2. In appendix C to part 5, add paragraph 83 to read as follows: 
Appendix C to Part 5--DHS Systems of Records Exempt From the Privacy 
Act
* * * * *
    83. DHS/FEMA-015 Fraud Investigations System of Records consists of 
electronic and paper records and will be used by DHS and its 
components. DHS/FEMA-015 Fraud Investigations System of Records is a 
repository of information held by DHS/FEMA in connection with its 
several and varied missions and functions, including the enforcement of 
civil and criminal laws and investigations, inquiries, and proceedings 
there under. DHS/FEMA-015 Fraud Investigations System of Records 
contains information that is collected by, on behalf of, in support of, 
or in cooperation with DHS and its components and may contain 
personally identifiable information collected by other federal, state, 
local, tribal, foreign, or international government agencies.
    The Secretary of Homeland Security, pursuant to 5 U.S.C. 
522a(k)(2), has exempted this system from the following provisions of 
the Privacy Act, subject to limitations set forth in 5 U.S.C. 
552a(c)(3); (d); (e)(1); (e)(4)(G); (e)(4)(H); (e)(4)(I); and (f). When 
a record received from another system has been exempted in that source 
system under 5 U.S.C. 552a(j)(2), DHS will claim the same exemptions 
for those records that are claimed for the original primary systems of 
records from which they originated and claims any additional exemptions 
set forth here.
    Exemptions from these particular subsections are justified, on a 
case-by-case basis to be determined at the time a request is made, for 
the following reasons:
    (a) From subsection (c)(3) (Accounting for Disclosures) because 
release of the accounting of disclosures could alert the subject of an 
investigation of an actual or potential criminal, civil, or regulatory 
violation to the existence of that investigation and reveal 
investigative interest on the part of DHS as well as the recipient 
agency. Disclosure of the accounting would therefore present a serious 
impediment to law enforcement efforts and/or efforts to preserve 
national security. Disclosure of the accounting would also permit the 
individual who is the subject of a record to impede the investigation, 
to tamper with witnesses or evidence, and to avoid detection or 
apprehension, which would undermine the entire investigative process. 
When an investigation has been completed, information on disclosures 
made may continue to be exempted if the fact that an investigation 
occurred remains sensitive after completion.
    (b) From subsection (d) (Access and Amendment to Records) because 
access to the records contained in this system of records could inform 
the subject of an investigation of an actual or potential criminal, 
civil, or regulatory violation to the existence of that investigation 
and reveal investigative interest on the part of DHS or another agency. 
Access to the records could permit the individual who is the subject of 
a record to impede the investigation, to tamper with witnesses or 
evidence, and to avoid detection or apprehension. Amendment of the 
records could interfere with ongoing investigations and law enforcement 
activities and would impose an unreasonable administrative burden by 
requiring investigations to be continually reinvestigated. In addition, 
permitting access and amendment to such information could disclose 
security-sensitive information that could be detrimental to homeland 
security.
    (c) From subsection (e)(1) (Relevancy and Necessity of Information) 
because in the course of investigations into potential violations of 
federal law, the accuracy of information obtained or introduced 
occasionally may be unclear, or the information may not be strictly 
relevant or necessary to a specific investigation. In the interests of 
effective law enforcement, it is appropriate to retain all information 
that may aid in establishing patterns of unlawful activity.
    (d) From subsections (e)(4)(G) and (e)(4)(H) (Agency Requirements) 
because portions of this system are exempt from the individual access 
provisions of subsection (d) for the reasons noted above, and therefore 
DHS is not required to establish requirements, rules, or procedures 
with respect to such access.
    (e) From subsection (e)(4)(I) (Agency Requirements) Providing 
notice to individuals with respect to existence of records pertaining 
to them in the system of records or otherwise setting up

[[Page 15140]]

procedures pursuant to which individuals may access and view records 
pertaining to themselves in the system would undermine investigative 
efforts and reveal the identities of witnesses, and potential 
witnesses, and confidential informants.
    (f) From subsection (f) (Agency Rules) because portions of this 
system are exempt from the access and amendment provisions of 
subsection (d).
* * * * *

James Holzer,
Acting Chief Privacy Officer, U.S. Department of Homeland Security.
[FR Doc. 2021-05644 Filed 3-19-21; 8:45 am]
BILLING CODE 9111-19-P