Privacy Act of 1974; System of Records

DEPARTMENT OF THE TREASURY

Financial Management Service

Privacy Act of 1974; System of Records

AGENCY: Financial Management Service, Treasury.

ACTION: Notice of alteration of Privacy Act system of records.

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SUMMARY: The Department of the Treasury, Financial Management Service

(FMS), gives notice of a proposed alteration to the system of records

entitled ``Debt Collection Operations System -Treasury/FMS .014,''which

is subject to the Privacy Act of 1974, as amended (5 U.S.C. 552a). The

system was last published in its entirety in the Federal Register Vol.

60, page 56776 on November 9, 1995, and subsequently altered in the

Federal Register Vol. 61, page 11939 on March 22, 1996.

DATES: Comments must be received no later than March 28, 1997. The

proposed system of records will be effective April 7, 1997, unless FMS

receives comments which would result in a contrary determination.

ADDRESS: Comments must be submitted to the Debt Management Services,

Financial Management Service, 401 14th Street, SW, Room 151,

Washington, DC 20227. Comments received will be available for

inspection at the same address between the hours of 9a.m. and 4p.m.

Monday through Friday.

FOR FURTHER INFORMATION CONTACT: Gerry Isenberg, Debt Management

Services, (202) 874-6859.

SUPPLEMENTARY INFORMATION: The Debt Collection Improvement Act of 1996

(DCIA), Pub. L. 104-134, enacted April 26, 1996, provides the

Department of the Treasury (Treasury) with specific legislative

authority and responsibility to collect and/or manage the collection of

claims owed to the Federal Government. The DCIA also provides new

government-wide debt collection tools such as administrative wage

garnishment, public dissemination of delinquent debtor information, and

authorizes the sale of debt to the private sector. The DCIA authorizes

Treasury to collect claims, or facilitate the collection of claims,

owed to States, Territories and Commonwealths of the United States, and

the District of Columbia by offsetting Federal payments. Similarly,

under the provisions of the DCIA, Treasury may enter into agreements

with States, Territories, Commonwealths, and the District of Columbia

to facilitate collection of debts owed to the Federal Government by

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offset of State, Territory, Commonwealth and District of Columbia

payments. Finally, the DCIA bars agencies from extending Federal

financial assistance in the form of a Federal loan or loan guaranty if

the applicant is delinquent on a Federal claim. Consistent with the

DCIA, Executive Order 13019, signed by the President on September 28,

1996, directs Treasury to promptly take steps to facilitate:

(1) Offset of Federal payments to collect delinquent child support

debts being enforced by States; and

(2) Denial of Federal credit in the form of a Federal loan or loan

guaranty to persons delinquent on their child support debts. FMS is the

Treasury bureau responsible for the implementation of the DCIA and the

Executive Order.

For the reasons set forth in the preamble, FMS proposes to alter system

of records Treasury/FMS .014, ``Debt Collection Operations System--

Treasury/Financial Management Service'', as follows:

Treasury/FMS .014

System Name:

Debt Collection Operations System--Treasury/Financial Management

Service.

System Location:

Description of change: The words ``Debt Collection Operations''are

replaced with the words ``Debt Management Services''.

Categories of Individuals Covered by the System:

* * *

Description of change: The following is added at the end thereof:

``Records are also maintained on individuals who are indebted to

States, Territories and Commonwealths of the United States, and the

District of Columbia, including records on individuals who owe past due

support which is being enforced by a State, Territory, Commonwealth or

the District of Columbia.''

Categories of Records in the System:

Description of changes:

The word ``agency'' in the first sentence is replaced by ``governmental

entity'', and the words ``client agency'' in the second sentence are

replaced by ``governmental entity''.

* * * * *

Authority for Maintenance of the System:

Description of change:

After ``* * * and the Deficit Reduction Act of 1984 (Pub. L. 98-369,

as amended);'' insert ``The Debt Collection Improvement Act of 1996

(Pub. L. 104-134,Sec. 31001); * * *''

Purpose(s):

Description of change:

The first sentence is revised to read,``The purpose of this system is

to maintain records of individuals and entities that are: (1) Indebted

to the Financial Management Service (FMS); (2) indebted to the various

Federal Government departments and agencies and whose accounts are

being serviced or collected by FMS; and (3) indebted to States,

Territories and Commonwealths of the United States, and the District of

Columbia (including past due child support debts being enforced by the

States, Territories, Commonwealths or the District of Columbia).''

* * *

Routine Uses of Records Maintained in the System, Including Categories

of Users and the Purposes of Such Uses:

* * * * *

Description of changes:

The words ``to the U.S. Government'' and ``and'' are removed in

routine use (7). The period ``.'' at the end of routine use (8) is

replaced with a semicolon ``;'', and the following routine uses are

added at the end thereof:

``(9) Any Federal, State, or local agency, or to the public for the

purpose of collecting on a delinquent debt through the use of debt

collection tools authorized under the Debt Collection Improvement Act

of 1996 such as referring the debt to debt collection centers,

administrative wage garnishment, public dissemination of debtor

information, or selling the debt; or any other legitimate debt

collection purpose;

``(10) Any Federal, State or local agency for the purpose of accounting

on or reporting the status of debts for which the Federal, State or

local agency has a financial or other legitimate need for the

information in the performance of official duties;

``(11) Any Federal agency or its agents for the purpose of denying

Federal financial assistance in the form of a loan or loan guaranty to

an individual delinquent on a Federal claim, or delinquent on a child

support claim referred to FMS for administrative offset; and

``(12) Any State, Territory or Commonwealth of the United States, or

the District of Columbia to collect a claim owed to the Federal

Government or to assist in the collection of a State, Commonwealth,

Territory or District of Columbia claim pursuant to a reciprocal

agreement between FMS and the State, Territory, Commonwealth or the

District of Columbia.''

* * * * *

Dated: February 18, 1997.

Alex Rodriguez,

Deputy Assistant Secretary (Administration).

[FR Doc. 97-4691 Filed 2-25-97; 8:45 am]

BILLING CODE: 4810-35-F