FR 2025-00670

The Department of Health and Human Services (HHS) recently issued a final rule concerning the handling of records by the National Institutes of Health (NIH) Police Division. This rule, which will take effect on February 18, 2025, establishes exemptions for certain investigatory records from the requirements of the Privacy Act. The stated purpose of these exemptions is to protect the integrity of law enforcement processes and the confidentiality of sources involved in NIH Police investigations.

General Summary

This rule creates a system for managing sensitive law enforcement records, specifically those held by the NIH Police Division. It allows these records to be exempt from typical Privacy Act requirements, such as providing individuals with access to their records or the ability to amend them. The rule covers both criminal and non-criminal records, ensuring that ongoing investigations are not compromised by disclosures.

Significant Issues or Concerns

There are several noteworthy issues concerning this rule. Firstly, the exemptions may raise privacy concerns, as individuals whose information is stored in these records will have limited, if any, rights to access or amend their personal data. This could potentially impact the transparency of law enforcement activities and accountability. Additionally, the complex legal language used in the document may be difficult for those not versed in legal or governmental terminology, hindering public understanding of the rule's impact.

Another concern is the potential for these exemptions to affect the management and costs related to law enforcement. While the rule asserts there will be no significant economic impact, it provides little detailed analysis or data to support this claim. Finally, the lack of clarity in communicating the necessity or rationale for these specific exemptions may leave the public questioning the balance between privacy rights and law enforcement efficiency.

Impact on the Public

Broadly, the document impacts public understanding and perception of privacy rights versus law enforcement needs. By limiting access and amendment rights, the rule may decrease the confidence of individuals in their ability to monitor and correct the use of their personal information within government systems.

Impact on Specific Stakeholders

For Law Enforcement Agencies: This rule positively impacts the NIH Police Division by safeguarding sensitive investigatory techniques and information, thus facilitating the maintenance of effective law enforcement procedures.

For Individuals and Privacy Advocates: On the negative side, individuals and privacy rights organizations may view the rule as a step back for civil liberties, particularly in the realm of data privacy. The concerns regarding limited access could lead to calls for more transparency and oversight of law enforcement records.

For Small Entities and Governments: The rule claims not to impose significant economic burdens on small entities or local governments, but the lack of detailed analysis supporting this claim might leave some stakeholders apprehensive about unforeseen implications.

In conclusion, while the new rule aims to enhance the effectiveness of NIH police operations, it poses potential challenges related to individual privacy and data transparency. Stakeholders from various backgrounds will likely continue to scrutinize these changes to assess their alignment with broader societal values and expectations.

The document under review primarily focuses on finalizing a rule that establishes exemptions for a new system of records managed by the National Institutes of Health (NIH) Division of Police. This system is designed to handle both criminal and non-criminal investigatory materials. Although the document does not inherently focus on budgetary allocations or direct financial appropriations, there are notable references to financial thresholds and potential economic impacts as outlined by relevant regulations and executive orders.

Financial References

1. Economic Impact Thresholds

The document refers to Executive Order 12866, which describes how a "significant regulatory action" is defined. Such an action is likely to result if a rule has an annual economic effect of $200 million or more. This set threshold indicates that the rule in question is not expected to meet criteria necessitating a thorough regulatory impact analysis, as it does not cross this significant economic effect threshold.

2. Unfunded Mandates Reform Act Consideration

The Unfunded Mandates Reform Act of 1995 requires analysis when a rule results in expenditures of $100 million or more, adjusted for inflation, by state, local, and tribal governments or the private sector. The current inflation-adjusted threshold is approximately $156 million, and the document mentions that the expected impact of this rule will not meet or exceed this amount.

Relation to Identified Issues

Considering the financial references:

• Transparency and Accountability Concerns: The financial references to the $200 million threshold for significant economic impact illustrate that the scope of the rule is not expected to cross major economic boundaries. However, this does not entirely address concerns about the transparency and accountability of the rule, especially regarding the exemptions from the Privacy Act. Financial thresholds mainly validate the economic impact; they do not address potential privacy implications directly.

• Economic Impact on Small Entities: The document claims no significant economic impact on small entities, which aligns with the financial thresholds and review processes that deem the rule as "not significant." A detailed analysis or data support for this claim is absent, which could raise concerns among stakeholders wishing to see an evidential basis for such economic conclusions.

The financial references in the document serve as a benchmark for determining the economic significance of the rule. However, they are primarily structural and regulatory guidelines rather than explicit financial appropriations or budgetary allocations for the NIH or its Division of Police operations.