SUPPLEMENTARY INFORMATION:

Background

The CIPSEA allows, “designated statistical agencies” to share business data in identifiable form for statistical purposes with BEA (44 U.S.C. 3576). Both the Census Bureau and BEA are primary statistical agencies within the U.S. Department of Commerce and “designated statistical agencies” under CIPSEA (44 U.S.C. 3576(e)). BEA and the Census Bureau are authoritative sources on economic data and statistics, including principal federal economic indicators. These statistics inform the government, private industry, statistical researchers, and the American public about our nation's economic status and progress. To ensure accurate and timely reporting of economic data and indicators, the Census Bureau and BEA partner to measure the U.S. economy. Both the Census Bureau and BEA conduct survey collections, which are critical to the quality of source data and the timely preparation of many key indicators of U.S. economic performance. However, the Census Bureau and BEA recognize that these surveys impose some reporting burden on businesses that are required to respond. Both the Director of the Census Bureau and the Director of BEA are required to identify opportunities to eliminate duplicative collections, reduce reporting burdens, and reduce statistical program costs, while improving the quality of the resulting statistics and protecting the confidentiality of the data collected from survey respondents (44 U.S.C. 3576(b)). To do so, the Census Bureau and BEA have shared and continue to consider increased opportunities to share business data pursuant to CIPSEA.

CIPSEA requires public notice of the intent to share data, whenever the data to be shared were collected through mandatory reporting and when the respondents were not informed that identifiable data could be shared among the designated statistical agencies (44 U.S.C. 3576(c)(4)). This required notice must allow for 60 days of public comment. CIPSEA also requires the designated statistical agencies to enter into written agreements for the data sharing activity and to provide information about the terms of the written agreement in the public notice (44 U.S.C. 3576(c)(4)).

The Census Bureau and BEA are providing notice that they intend to enter into a written agreement for this data sharing action. Therefore, the following are covered in this notice:

• Data items from the Census Bureau that BEA will access;
• Improvement of statistical products and economic indicators by use of data for statistical purposes; and
• Legal authority regarding confidentiality and data access.

Shared Data

The Census Bureau will provide, and BEA will use, select company-level data from the Census Bureau's Economic Census, the Commodity Flow Survey, the Quarterly Financial Report, the Annual Integrated Economic Survey, the Business and Professional Classification Survey, and the Annual Business Survey (including historical Business Enterprise and Research Development survey data).

The Census Bureau conducts the Quarterly Financial Report under the authority of 13 U.S.C. 91. The Census Bureau conducts all of the other listed surveys under the authority of 13 U.S.C. 131, 182, and/or 193. Response is mandatory under 13 U.S.C. 224 and 225.

The Census Bureau will not provide any Federal Tax Information to BEA.

Statistical Purposes for the Shared Data

BEA will use the shared data exclusively for authorized statistical purposes, as defined in 44 U.S.C. 3561(12). Census Bureau aggregated data from these surveys are a key source of information for BEA national, regional, and international accounts. BEA will use the company-level data to better understand trends, anomalies, coverage, completeness, and other characteristics of the aggregated data. In addition, BEA will compare the Census ( printed page 60082) Bureau data at the company level with data collected from BEA surveys.

A number of benefits also will accrue to BEA, the Census Bureau, and the Federal government from this data-sharing activity. This data sharing will enhance the reliability of the nation's most important economic indicators, such as the National Income and Product Accounts; increase understanding of the United States economy, especially for key national, industry, international, and regional statistics; improve the comparability and accuracy of Federal economic statistics by allowing BEA and the Census Bureau to update sample frames, develop consistent classifications of establishments and companies into industries; improve coverage, and reconcile significant differences in data produced by the agencies; and develop more accurate measures of the impact of technology on productivity growth. This data sharing also may lead to collaborative efforts to provide new or expanded data products for the public. Through sharing existing data, the Census Bureau and BEA can achieve these efficiencies and improvements without additional burden to respondents, consistent with 44 U.S.C. 3576.

Data Access and Confidentiality

The Census Bureau data are confidential under 13 U.S.C. 9 and 214. BEA employees who will have authorized access to confidential Census Bureau data are required to obtain Census Bureau Sworn Special Status under 13 U.S.C. 23(c). They will be sworn to observe the provisions of 13 U.S.C. 9 and will be advised of the penalties for improper disclosure under 13 U.S.C. 214. The penalties are imprisonment for no more than five years, a fine of no more than $250,000, or both. These BEA employees must also complete annual training on compliance with these statutory provisions. The authorized BEA employees will use the accessed data for exclusively statistical purposes, as outlined in this Notice.