Proposed Rule2023-23314
Disclosure of Records
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
October 31, 2023
Issuing agencies
Treasury DepartmentBureau of the Fiscal Service
Abstract
The Bureau of the Fiscal Service within the Department of the Treasury (Fiscal Service or Treasury) proposes to adopt regulations to implement statutory requirements under the SECURE 2.0 Act of 2022 requiring Treasury to provide information on applicable savings bonds to states. A state receiving the information with respect to an applicable savings bond may use the information to locate the owner of the bond pursuant to Treasury's regulations and the state's own standards and requirements under abandoned property rules and regulations of the state. Regulations adopted by Treasury are required to protect the privacy of savings bond owners, prevent fraud, and ensure that any information disclosed to a state under these rules shall be used solely to locate savings bond owners.
Full Text
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<title>Federal Register, Volume 88 Issue 209 (Tuesday, October 31, 2023)</title>
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[Federal Register Volume 88, Number 209 (Tuesday, October 31, 2023)]
[Proposed Rules]
[Pages 74386-74389]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-23314]
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DEPARTMENT OF THE TREASURY
Bureau of the Fiscal Service
31 CFR Part 323
[FISCAL-2023-0002]
RIN 1530-AA28
Disclosure of Records
AGENCY: Bureau of the Fiscal Service, Department of the Treasury.
ACTION: Notice of proposed rulemaking with request for comment.
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SUMMARY: The Bureau of the Fiscal Service within the Department of the
Treasury (Fiscal Service or Treasury) proposes to adopt regulations to
implement statutory requirements under the SECURE 2.0 Act of 2022
requiring Treasury to provide information on applicable savings bonds
to states. A state receiving the information with respect to an
applicable savings bond may use the information to locate the owner of
the bond pursuant to Treasury's regulations and the state's own
standards and requirements under abandoned property rules and
regulations of the state. Regulations adopted by Treasury are required
to protect the privacy of savings bond owners, prevent fraud, and
ensure that any information disclosed to a state under these rules
shall be used solely to locate savings bond owners.
DATES: Comments on the proposed rule must be received by November 30,
2023.
ADDRESSES: Comments may be submitted by any of the following methods:
<bullet> Federal eRulemaking Portal: <a href="http://www.regulations.gov">www.regulations.gov</a>. Follow
the instructions on the website for submitting comments.
<bullet> Mail: Department of the Treasury, Bureau of the Fiscal
Service, Attn:
[[Page 74387]]
Marcia Goodnight, Retail Securities Services. Bureau of the Fiscal
Service, Warehouse and Operations Center, Dock 1. 257 Bosley Industrial
Park Drive, Parkersburg, WV 26101.
The fax and email methods of submitting comments on rules to Fiscal
Service have been decommissioned.
Instructions: All submissions received must include the agency name
(Bureau of the Fiscal Service) and docket number FISCAL-2023-0002 for
this rulemaking. In general, comments received will be published on
<a href="http://regulations.gov">regulations.gov</a> without change, including any business or personal
information provided. Comments received, including attachments and
other supporting materials, are part of the public record and subject
to public disclosure. Do not include any information in your comments
or supporting materials that you consider confidential or inappropriate
for public disclosure. In accordance with the U.S. government's
eRulemaking Initiative, Fiscal Service publishes rulemaking information
on <a href="http://www.regulations.gov">www.regulations.gov</a>. Regulations.gov offers the public the ability
to comment on, search, and view publicly available rulemaking
materials, including comments received on rules.
FOR FURTHER INFORMATION CONTACT: Marcia Goodnight, Retail Securities
Services, at <a href="/cdn-cgi/l/email-protection#55073021343c3906303620273c212c063027233c363026163a3838303b212615333c263634397b212730342620272c7b323a23"><span class="__cf_email__" data-cfemail="23714657424a4f70464056514a575a704651554a404650604c4e4e464d575063454a5040424f0d575146425056515a0d444c55">[email protected]</span></a>; or
Lela Anderson, Attorney-Advisor, at 304-480-8692.
SUPPLEMENTARY INFORMATION:
I. Background
On December 29, 2022, the SECURE 2.0 Act of 2022 \1\ (SECURE Act)
became law and added subsection (f) to 31 U.S.C. 3105 mandating that
Treasury share certain savings bond information with states for the
purpose of locating savings bond owners. Under new subsection (f),
Treasury is required to ``provide each state, in digital or other
electronic form, with information describing any applicable savings
bond which has an applicable address that is within such state,
including (i) the name and applicable address of the registered owner;
and (ii) the name and applicable address of any registered co-owner or
beneficiary.'' \2\ ``Applicable address'' is defined to include the
registered address for the registered owner of the savings bond or the
last-known address for the registered owner available to the
Secretary.\3\ ``Applicable savings bond'' is defined to include a
savings bond which is more than three years past its final maturity
date, in paper or electronic form, and has not been redeemed.\4\
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\1\ Public Law 117-32.
\2\ 31 U.S.C. 3105(f)(1)(A).
\3\ 31 U.S.C. 3105 (f)(1)(C).
\4\ 31 U.S.C. 3105 (f)(6).
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Treasury is required by new subsection (f)(2) to prescribe
regulations or guidance as necessary to carry out the purposes of
subsection (f), including rules to protect the privacy of the owners of
applicable savings bonds, prevent fraud, and ensure that any
information provided to a state is used solely for the purposes of the
new subsection (f).\5\ Regulations or guidance issued by Treasury must
not have the effect of prohibiting, restricting, or otherwise
preventing a state from obtaining the information described above.
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\5\ 31 U.S.C. 3105(f)(2).
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II. Summary of Proposed Rule Amendments
Proposed Amendments to Part 323 ``Disclosure of Records.''
Fiscal Service would add the proposed regulations to its disclosure
of records regulations adopted under the Freedom of Information Act
(FOIA).\6\ Fiscal Service would maintain the current FOIA regulations
found in part 323 by moving the existing provisions in sections 323.1-
323.5 into a new subpart A. A new subpart B would contain the proposed
regulations to implement the SECURE Act requirements to provide records
containing applicable savings bond information to states. Subpart B
would include definitions necessary to implement the proposed
regulations, including proposed requirements for a state to receive
applicable savings bond information, proposed instructions for the use
of information, and proposed liability statements. Separating the two
different statutory authorities, FOIA and the SECURE Act, by subpart is
intended to assist the public in identifying the two separate
authorities under which an individual or a state may request a
disclosure of records or information.
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\6\ 31 CFR part 323.
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Treasury believes the new disclosure of applicable savings bond
information requirements is closely associated with the purpose of the
existing FOIA disclosure regulations. While the SECURE Act only allows
for disclosure of certain information to states, rather than to the
public at large, a savings bond owner could look to a single
regulation, part 323, to determine the various ways in which their
savings bond information could be disclosed.
A. Subpart A, Sec. 323.1
As noted above, subpart A will contain the existing regulations
that implement FOIA for Fiscal Service currently found at part 323.
Accordingly, the proposal would make a technical modification to the
first sentence of 323.1 to identify the subpart rather than the part.
B. Purpose of the Proposed Regulations, Subpart B, Sec. 323.10
Within the new subpart B, this new section briefly describes the
purpose of the new regulatory provisions, namely to implement the
SECURE Act.
C. Rules Governing Sharing of Applicable Savings Bond Information With
States, Subpart B, Sec. 323.11
Definitions
Treasury proposes to amend part 323 by adding a new provision, to
be found at 31 CFR 323.11, to include the definitions and regulations
necessary to provide states the information required by the SECURE Act.
In addition, the proposed amendments would add new provisions to help
protect savings bond customers from fraud and help to ensure the
security of the records and information contained therein provided to
states.
The SECURE Act amended 31 U.S.C 3105 by adding subsection (f),
which requires Treasury to provide, in digital or other electronic
form, each state with information describing any applicable savings
bond that has an applicable address that is within such state.
``Applicable address'' is defined in the statute as the registered
address for the registered owner, co-owner, or beneficiary of the
savings bond or the last-known address for the foregoing if it is
available to Treasury.\7\
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\7\ 31 U.S.C. 3105(f)(1)(C).
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Treasury proposes to define ``last-known address'' to mean an
address available to Fiscal Service after a reasonable search of its
records. While the level of effort dedicated to the search could be
expressed in various degrees, a ``reasonable'' search balances the
goals of efficiency and effectiveness. An exhaustive search, for
example, would be unduly costly and burdensome on Fiscal Service, given
the breadth of our systems of records, and unlikely to significantly
change the results of the search. ``Record'' is broadly defined to
include any data and documentation containing savings bond information.
In defining it in this way, Fiscal Service can more readily protect
savings bond owners from unauthorized disclosure of their information,
as any
[[Page 74388]]
information currently held within Treasury will become a record once
disclosed. The term ``State'' is also broadly defined to include United
States territories, possessions, and the District of Columbia, as well
as the 50 states. This definition is consistent with available
registered addresses over the lifetime of the savings bond program.
Requests for Records
Subsection 323.11(b) of the proposed regulations provides that each
state may request the applicable savings bond records from Fiscal
Service. Upon request, the state must enter into an information-sharing
agreement with Fiscal Service to receive and access the requested
records. This agreement would require a state to make representations
regarding protecting the savings bond records from disclosure,
including security requirements for receiving and storing the records.
These security requirements are necessary to minimize the risk of
misuse or misappropriation of information or fraudulent activity.
Use of Records
Subsection 323.11(c) of the proposed regulations outlines how the
records or information contained therein may be used by states, in
compliance with the SECURE Act. As stated at 31 U.S.C. 3105(f),
Treasury regulations are required to ensure that applicable savings
bond information provided to a state will be used solely to carry out
the purpose of locating the owner of the savings bond.\8\ In accordance
with this statutory requirement, the proposed regulation provides that
the applicable savings bond information cannot be used to escheat bond
ownership to state. Treasury has determined that the use of the
applicable savings bond information for this purpose would be an
unauthorized use of the information under the SECURE Act. The purpose
of the SECURE Act is for Treasury to provide the information regarding
applicable savings bonds to states to assist Treasury in locating the
owner of the bonds. The SECURE Act does not allow the states to use the
provided bond records and information to escheat the bonds, which would
strip the bond owners of any rights to the redemption or continued
ownership of their savings bonds.
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\8\ 31 U.S.C. 3105(f)(2).
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Under the proposed regulation, in order to protect the savings bond
owner's privacy, any applicable savings bond information provided to
states cannot be released to the public or any third party without
Fiscal Service's express written approval. This requirement will also
be incorporated into the information-sharing agreement described above.
The requirement to obtain such approval from Fiscal Service is also
intended to ensure that the release of savings bond records or the
information therein does not subject Fiscal Service customers to fraud
risk. In recent years, Fiscal Service has taken steps that have reduced
the opportunities for fraud. However, Fiscal Service believes that
making records of matured, unredeemed savings bonds available to the
public would create an unacceptable risk of fraud. Fiscal Service will
continue to monitor savings bond fraud and consider implementing
further risk-mitigation strategies, which may eventually allow for
certain savings bonds records to be distributed publicly.
Finally, under proposed section 323.11(c), Treasury will not be
responsible for any loss, liability, cost, or expense that results from
a state's misuse or distribution of records regarding applicable
savings bonds or any information contained therein. Any breach of
savings bond records or information provided to a state under the
proposed regulations could result in fraudulent activity, breach of
privacy for a savings bond owner, and financial loss for bond owners.
The proposed regulations require each state that receives information
under the proposed regulations to bear the responsibility for any costs
associated with the state's misuse or distribution of, or failure to
adequately protect, any records or information.
III. Request for Comments
We invite interested persons to submit comments on any aspect of
the proposed regulation, including the following questions:
1. How would you expect your savings bond information to be used by
the states?
2. How would you expect your savings bond information to be
protected by the states?
3. Do you have any specific fraud-related concerns?
4. Are the proposed requirements related to the terms under which
Treasury would share information with states reasonable? Should any
further requirements applicable to states be added, either in the
regulation or in the proposed information-sharing agreement, to fulfill
the statutory purposes or the objectives described above?
IV. Procedural Requirements
A. Request for Comment on Plain Language
Executive Order 12866 requires each agency in the Executive branch
to write regulations that are simple and easy to understand. We invite
comments on how to make the proposed rule clearer. For example, you may
wish to discuss: (1) whether we have organized the material to suit
your needs; (2) whether the requirements of the rule are clear; or (3)
whether there is something else we could do to make the rule easier to
understand.
B. Executive Order 12866
This proposed rule is not a significant regulatory action as
defined in E.O. 12866, dated September 30, 1993, as amended.
C. Administrative Procedure Act (APA)
Because this proposed rule relates to United States securities,
which are contracts between Treasury and the owner of the security,
this rule falls within the contract exception to the APA, 5 U.S.C.
553(a)(2). Treasury is voluntarily seeking public comment to assist the
agency in assessing the impact of the proposed rule.
D. Regulatory Flexibility Act
This proposed rule relates to matters of public contract and
procedures for United States securities. Since a notice of proposed
rulemaking is not required, the provisions of the Regulatory
Flexibility Act, 5 U.S.C. 601 et seq., do not apply. This rule will not
have a significant economic impact on a substantial number of small
entities. Treasury is voluntarily seeking public comments in order to
consider a range of views on records sharing before issuing the final
rule.
E. Paperwork Reduction Act
The provisions of the Paperwork Reduction Act, 44 U.S.C. 3501 et
seq., and its implementing regulations, 5 CFR part 1320, do not apply
to this proposed rule because there are no new or revised recordkeeping
or reporting requirements.
List of Subjects in 31 CFR Part 323
Archives and records, Freedom of information, Privacy, Savings
bonds.
Accordingly, for the reasons set forth in the preamble, Treasury
proposes to amend title 31 part 323 of the Code of Federal Regulations
as follows:
[[Page 74389]]
PART 323--DISCLOSURE OF RECORDS
0
1. The authority citation for part 323 continues to read as follows:
Authority: 80 Stat. 379; sec. 3, 60 Stat. 238, as amended; 5
U.S.C. 201, 552.
0
2. Add subpart A before Sec. 323.1;
0
3. Revise the first sentence of Sec. 323.1; and
0
4. Add subpart B after Sec. 323.5.
The additions and revision read as follows:
PART 323--DISCLOSURE OF RECORDS
Authority: 80 Stat. 379; sec. 3, 60 Stat. 238, as amended; 5
U.S.C. 201, 552.
Subpart A--Freedom of Information Act
Authority: 80 Stat. 379; sec. 3, 60 Stat. 238, as amended; 5
U.S.C. 201, 552.
Sec. 323.1 Purpose of regulations
The regulations of this subpart are issued to implement 5 U.S.C.
552(a)(2) and (3). * * *
* * * * *
Subpart B--SECURE 2.0 Act of 2022
Sec.
323.10 Purpose of Subpart.
323.11 Rules governing sharing of applicable savings bond
information with states.
Authority: 31 U.S.C. 3105(f).
Sec. 323.10 Purpose of Subpart
The regulations of this subpart are issued to implement the SECURE
Act 2.0 of 2022, 31 U.S.C. 3105(f). The requirements of 31 U.S.C.
3105(f) are additionally met through the publication of a new Routine
Use in the applicable Fiscal Service System of Record Notice.
Sec. 323.11 Rules governing sharing of applicable savings bond
information with states.
(a) Definitions. For purposes of this section:
Applicable address has the meaning set forth in 31 U.S.C.
3105(f)(1)(C).
Applicable savings bond has the meaning set forth in 31 U.S.C.
3105(f)(6).
Last-known address means the full street address, if available,
found after a reasonable search of Fiscal Service records.
Name means the full registered name of the owner, co-owner, or
beneficiary of an applicable savings bond, as it appears on the savings
bond inscription.
Record means data or documentation, whether in paper, digital, or
other electronic form, containing or composed of information describing
any applicable savings bond which has an applicable address within a
state, including the name and registered address or last-known address
of the registered owner, co-owner, or beneficiary, as further defined
in 31 U.S.C. 3105(f)(1).
Registered address means the address included in the savings bond
inscription.
State means the fifty states, the District of Columbia, American
Samoa, the Federated States of Micronesia, Guam, the United States
Virgin Islands, the Marshall Islands, the Commonwealth of the Northern
Mariana Islands, Palau, and the Commonwealth of Puerto Rico.
(b) Requests for records. Records will be made available to states
in compliance with 31 U.S.C. 3105(f) and this subpart, upon request by
a state to Fiscal Service. Prior to receiving access to records, each
state, through an authorized state representative, must enter into an
information-sharing agreement with Fiscal Service using a form that
will be provided by Fiscal Service. Such agreements may contain, among
other things, requirements that Treasury deems necessary or appropriate
to ensure the security of the information.
(c) Use of records. Any records or any information made available
to a state under this subpart (1) must be used only for the purpose of
locating the owner of an applicable savings bond, (2) must not be used
to escheat savings bond ownership to a state, and (3) must not be
released by a state to the public or any third party, unless explicitly
approved in writing, in advance, by Treasury.
(d) Liability. Treasury is not liable for any loss, liability,
cost, or expense that may result from a state's receipt, use, or
distribution of records or any information contained therein. A state
receiving records under this subpart shall indemnify Treasury for any
loss, liability, cost, or expense associated with the state's receipt,
use, or distribution of, or failure to adequately protect, records or
any information contained therein.
By the Department of the Treasury.
David Lebryk,
Fiscal Assistant Secretary.
[FR Doc. 2023-23314 Filed 10-30-23; 8:45 am]
BILLING CODE P
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