Privacy Act; System of Records

Federal RegisterJul 17, 1998

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DEPARTMENT OF AGRICULTURE

Office of the Secretary

Privacy Act; System of Records

AGENCY: Office of the Secretary, USDA.

ACTION: Notice of revised Privacy Act systems of records.

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SUMMARY: Notice is hereby given that the USDA proposes to revise its

systems of records relating to the Rural Development Mission Area.

EFFECTIVE DATE: This notice will be adopted without further publication

in the Federal Register on September 15, 1998, unless modified by a

subsequent notice to incorporate comments received from the public.

Although the Privacy Act requires only that the portion of the system

which describes the ``routine uses'' of the system be published for

comment, USDA invites comment on all portions of this notice. Comments

must be received by the contact person listed below on or before August

17, 1998.

FOR FURTHER INFORMATION CONTACT:

Dorothy Hinden, Freedom of Information Officer, Support Services

Division, Rural Development, U.S. Department of Agriculture, 1400

Independence Avenue, SW, Stop 0742, Washington, DC 20250-0742;

telephone (202) 720-9638.

SUPPLEMENTARY INFORMATION: Pursuant to the Privacy Act, 5 U.S.C. 552a,

USDA is redesignating and revising seven systems of records and

deleting two systems of records formerly maintained by the Farmers Home

Administration (``FmHA''). In 1994, USDA reorganized, transferring the

farm loan functions of FmHA to the Farm Service Agency (``FSA''). The

revisions USDA is proposing reflect this reorganization. The following

are the constituent agencies of Rural Development: (1) Rural Housing

Service, (2) Rural Business-Cooperative Service, and (3) Rural

Utilities Service. Specifically, USDA will delete the system designated

as USDA/FmHA-3, ``Designated Attorney and Escrow Agent File'' and

incorporate the records maintained in that system into USDA/Rural

Development-1, ``Applicant, Borrower, Grantee, or Tenant File.'' A

second system of records, USDA/FmHA-7, ``Reserved Mineral Interests'',

is being deleted because the records are no longer maintained by USDA.

In addition, USDA is redesignating, reorganizing, and revising systems

as follows:

(1) USDA will maintain the records relating to the Rural

Development Mission Area formerly maintained under the system

designation ``USDA/FmHA-1, Applicant, Borrower, Grantee, or Tenant

File'' under the new designation ``USDA/Rural Development-1, Applicant,

Borrower, Grantee, or Tenant File.'' That portion of the former system

pertaining to Farmer Loan Programs has already been redesignated as a

separate system entitled ``USDA/FSA-14, Applicant/Borrower.'' In

addition to the redesignation to reflect the reorganization of FmHA

programs as Rural Development programs, USDA is amending the system to

include social security or employee identification number, bank routing

and account number under the heading, ``categories of records in the

system.''

USDA is making the following revisions to the routine uses in the

system:

(1) Routine use number 3 which permits release of names, home

addresses, social security numbers, and financial information to

business firms in a trade area that buy chattel or crops or sell them

for commission is being deleted because it is no longer needed. It is

being replaced as follows: Referral of legally enforceable debts to the

Department of the Treasury under the Treasury Offset Program (TOP) and

the Debt Collection Improvement Act of 1996, Pub. L. 104-134. (2)

Additional language is being added to routine use number 7 to provide

information from this system to assist the borrower in placing the

property on the market through a real estate agent. Two new routine

uses have been added: (1) Routine use number 17 which provides to

consumer or commercial reporting agencies information from this system

indicating that an individual is responsible for a claim that is

current. (2) Routine use number 18 which permits release of names, home

and work addresses, home telephone numbers, social security numbers,

and financial information to escrow agents (which also could include

attorneys and title companies) selected by the applicant or borrower

for the purpose of closing the loan.

(2) USDA is redesignating USDA/FmHA-2, ``Biographical Sketch File''

as USDA/Rural Development-2 ``Biographical Sketch File.'' This system

is being amended to indicate a change in the record system location;

and to indicate a change in the categories of individuals covered by

the system.

(3) USDA is redesignating USDA/FmHA-5, ``Graduation File'' as USDA/

Rural Development-3, ``Graduation File.'' This system is being amended

to indicate a position title change and to remove the County Committee

from the categories of records in the system since it is no longer

needed. It is further being amended to add ``or to assist the borrower

in the sale of the property'' to the routine use number 3. The purpose

of this amendment is to assist the borrower in placing the property on

the market through a real estate agent. Stylistic changes have been

made in the three routine uses for purposes of clarification.

(4) USDA is redesignating USDA/FmHA-6, ``Housing Contractor

Complaint File'' as USDA/Rural Development-4, ``Housing Contractor

Complaint File.'' Stylistic changes have been made in routine uses 1

and 2.

(5) USDA/FmHA-8, ``Tort Claims File'' is being amended to indicate

a change in the system designation to USDA/Rural Development-5 ``Tort

Claims File.'' Rural Development has made stylistic changes in the

language of the routine use.

(6) USDA/FmHA-9, ``Training Files'' is bend amended to indicate a

change in the system designation to USDA/Rural Development-6,

``Training Files.'' This system is being amended to delete the Norman,

OK site. Stylistic changes have been made in the routine use for

purposes of clarification.

(7) USDA/FmHA-10, ``Travel Records'' is being amended to indicate a

change in the system designation to USDA/Rural Development-7, ``Travel

Records'' and to reflect that the period ``Two years'' is being

replaced with ``six years'' under the retention and disposal schedule.

[[Page 38547]]

Changes in system locations, position titles for system managers,

and addresses have been made where appropriate; and all references to

Farmers Home Administration have been changed to Rural Development.

A ``Report on Revised System,'' required by 5 U.S.C. 552a(r), as

implemented by Appendix III to OMB Circular A-130, was sent to the

Chairman, Senate Committee on Governmental Affairs, the Chairman, House

Committee on Government Reform and Oversight, and the Director, Office

of Information and Regulatory Affairs, Office of Management and Budget

on April 15, 1998.

Signed at Washington, DC on April 15, 1998.

Dan Glickman,

Secretary of Agriculture.

USDA/RURAL DEVELOPMENT-1

SYSTEM NAME:

Applicant, Borrower, Grantee, or Tenant File

SYSTEM LOCATION:

Each Rural Development applicant's, borrower's, grantee's, or

tenant's file is located in the Local, Area, or State Office through

which the financial assistance is sought or was obtained; in the

Centralized Service Center, St. Louis, Missouri; and in the Finance

Office in St. Louis, Missouri. A State Office version of the Local or

Area Office file may be located in or accessible by the State Office

which is responsible for that Local or Area Office. Correspondence

regarding borrowers is located in the State and National Office files.

A list of all State Offices and any additional States for which an

office is responsible is as follows:

Montgomery, AL

Palmer, AK

Phoenix, AZ

Little Rock, AR

Woodland, CA

Lakewood, CO

Camden, DE-DC, MD

Gainsville, FL

Athens, GA

Hilo, HI-Western Pacific Terr.

Boise, ID

Champaign, IL

Indianapolis, IN

Des Monies, IA

Topeka, KS

Lexington, KY

Alexandria, LA

Bangor, ME

Amherst, MA-CT, RI

East Lansing, MI

St. Paul, MN

Jackson, MS

Columbia, MO

Bozeman, MT

Lincoln, NE

Carson City, NV

Mt. Holy, NJ

Albuquerque, NM

Syracuse, NY

Raleigh, NC

Bismarck, ND

Columbus, OH

Stillwater, OK

Portland, OR

Harrisburg, PA

Hato Rey, PR

Columbia, SC

Huron, SD

Nashville, TN

Temple, TX

Salt Lake City, UT

Montpelier, VT-NH, VI

Richmond, VA

Wentchee, WA

Morgantown, WV

Stevens Point, WI

Casper, WY

The address of Local, Area, and State Offices are listed in the

telephone director of the appropriate city or town under the heading

``United States Government, Department of Agriculture, Rural

Development.'' The Financial Office is located at 1520 Market Street,

St. Louis, Missouri 63103.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:

Present and former Rural Development applicants, borrowers,

grantees, tenants, and their respective household members, including

members of associations.

CATEGORIES OF RECORDS IN THE SYSTEM:

The system includes files containing the names of applicants,

borrowers, grantees, tenants, their social security or employer

identification number, bank routing and account numbers; and their

respective household members' characteristics, such as gross and net

income, sources of income, capital, assets and liabilities, net worth,

age, race, number of dependents, marital status, reference material,

farm or ranch operating plans, and property appraisals. The system also

includes credit reports and personal references from credit agencies,

lenders, businesses, and individuals. In addition, a running record of

observation concerning the operations of the person being financed is

included. A record of deposits to and withdrawals from an individual's

supervised bank account is also contained in those files where

appropriate. In some Local Offices, this record is maintained in a

separate folder containing only information relating to activity within

supervised bank accounts. Some items of information are extracted from

the individual's file and placed in a card file for quick reference.

Authority for maintenance of the system:

7 U.S.C. 1921 et seq., 42 U.S.C. 1471 et seq., and 42 U.S.C. 2706.

Routine uses of records maintained in the system, including categories

of users and the purposes of such uses:

1. When a record on its face, or in conjunction with other records,

indicates a violation or potential violation of law, whether civil,

criminal, or regulatory in nature, and whether arising by general

statute or particular program statute, or by regulation, rule, or order

issued pursuant thereto, disclosure may be made to the appropriate

agency, whether Federal, foreign, State, local, or tribal, or other

public authority responsible for enforcing, investigating, or

prosecuting such violation or charged with enforcing or implementing

the statute, or rule, regulation, or order issued pursuant thereto, if

the information disclosed is relevant to any enforcement, regulatory,

investigative, or prospective responsibility of the receiving entity.

2. A record from this system of records may be disclosed to a

Member of Congress or to a congressional staff member in response to an

inquiry of the congressional office made at the written request of the

constituent about whom the record is maintained.

3. Rural Development will provide information from this system to

the U.S. Department of the Treasury and to other Federal agencies

maintaining debt servicing centers, in connection with overdue debts,

in order to participate in the Treasury Offset Program as required by

the Debt Collection Improvements Act, Pub. L. 104-134, Section 31001.

4. Disclosure of the name, home address, and information concerning

default on loan repayment when the default involves a security interest

in tribal allotted or trust land. Pursuant to the Cranston-Gonzales

National Affordable Housing Act of 1990 (42 U.S.C. 12701 et seq.),

liquidation may be pursued only after offering to transfer the account

to an eligible tribal member, the tribe, or the Indian housing

authority serving the tribe(s).

5. Referral of names, home addresses, social security numbers, and

financial information to a collection or servicing contractor,

financial institution, or a local, State, or Federal agency, when Rural

Development determines such referral is appropriate for servicing or

collecting the borrower's account or as provided for in contracts with

servicing or collection agencies.

6. It shall be a routine use of the records in this system of

records to disclose them in a proceeding before a court or adjudicative

body, when: (a)

[[Page 38548]]

The agency or any component thereof; or (b) any employee of the agency

in his or her official capacity; or (c) any employee of the agency in

his or her individual capacity where the agency has agreed to represent

the employee; or (d) the United States is a party to litigation or has

an interest in such litigation, and by careful review, the agency

determines that the records are both relevant and necessary to the

litigation, provided, however, that in each case, the agency determines

that disclosure of the records is a use of the information contained in

the records that is compatible with the purpose for which the agency

collected the records.

7. Referral of names, home addresses, and financial information for

selected borrowers to financial consultants, advisors, lending

institutions, packagers, agents, and private or commercial credit

sources, when Rural Development determines such referral is appropriate

to encourage the borrower to refinance his Rural Development

indebtedness as required by Title V of the Housing Act of 1949, as

amended (42 U.S.C. 1471), or to assist the borrower in the sale of the

property.

8. Referral of legally enforceable debts to the Department of the

Treasury, Internal Revenue Service (IRS), to be offset against any tax

refund that may become due the debtor for the tax year in which the

referral is made, in accordance with the IRS regulations at 26 CFR

301.6402-6T, Offset of Past Due Legally Enforceable Debt Against

Overpayment, and under the authority contained in 31 U.S.C. 3720A.

9. Referral of information regarding indebtedness to the Defense

Manpower Data Center, Department of Defense, and the United States

Postal Service for the purpose of conducting computer matching programs

to identify and locate individuals receiving Federal salary or benefit

payments and who are delinquent in their repayment of debts owed to the

U.S. Government under certain programs administered by Rural

Development in order to collect debts under the provisions of the Debt

Collection Act of 1982 (5 U.S.C. 5514) by voluntary repayment,

administrative or salary offset procedures, or by collection agencies.

10. Referral of names, home addresses, and financial information to

lending institutions when Rural Development determines the individual

may be financially capable of qualifying for credit with or without a

guarantee.

11. Disclosure of names, home addresses, social security numbers,

and financial information to lending institutions that have a lien

against the same property as Rural Development for the purpose of the

collection of the debt. These loans can be under the direct and

guaranteed loan programs.

12. Referral to private attorneys under contract with either Rural

Development or with the Department of Justice for the purpose of

foreclosure and possession actions and collection of past due accounts

in connection with Rural Development.

13. It shall be a routine use of the records in this system of

records to disclose them to the Department of Justice when: (a) The

agency or any component thereof; or (b) any employee of the agency in

his or her official capacity where the Department of Justice has agreed

to represent the employee; or (c) the United States Government, is a

party to litigation or has an interest in such litigation, and by

careful review, the agency determines that the records are both

relevant and necessary to the litigation and the use of such records by

the Department of Justice is therefore deemed by the agency to be for a

purpose that is compatible with the purpose for which the agency

collected the records.

14. Referral of names, home addresses, social security numbers, and

financial information to the Department of Housing and Urban

Development (HUD) as a record of location utilized by Federal agencies

for an automatic credit prescreening system.

15. Referral of names, home addresses, social security numbers, and

financial information to the Department of Labor, State Wage

Information Collection Agencies, and other Federal, State, and local

agencies, as well as those responsible for verifying information

furnished to qualify for Federal benefits, to conduct wage and benefit

matching through manual and/or automated means, for the purpose of

determining compliance with Federal regulations and appropriate

servicing actions against those not entitled to program benefits,

including possible recovery of improper benefits.

16. Referral of names, home addresses, and financial information to

financial consultants, advisors, or underwriters, when Rural

Development determines such referral is appropriate for developing

packaging and marketing strategies involving the sale of Rural

Development loan assets.

17. Rural Development, in accordance with 31 U.S.C. 3711(e)(5),

will provide to consumer reporting agencies or commercial reporting

agencies information from this system indicating that an individual is

responsible for a claim that is current.

18. Referral of names, home and work addresses, home telephone

numbers, social security numbers, and financial information to escrow

agents (which also could include attorneys and title companies)

selected by the applicant or borrower for the purpose of closing the

loan.

DISCLOSURE TO CONSUMER REPORTING AGENCIES.

Disclosures pursuant to 5 U.S.C. 552a(b)(12): Disclosures may be

made from this system to consumer reporting agencies as defined in the

Fair Credit Reporting Act (15 U.S.C. 1681a(f)) or the Federal Claims

Collection Act (31 U.S.C. 3701(a)(3)).

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING,

AND DISPOSING OF RECORDS IN THE SYSTEM:

STORAGE:

Records are maintained in file folders at the Local, Area, State,

and National Offices. A limited subset of personal, financial, and

characteristics data required for effective management of the programs

and borrower repayment status is maintained on disc or magnetic tape at

the Finance Office. This subset of data may by accessed by the

authorized personnel from each office.

RETRIEVABILITY:

Records are indexed by name, identification number and type of loan

or grant. Data may be retrieved from the paper records or the magnetic

tapes. A limited subset of data is available through telecommunications

capability, ranging from telephones to intelligent terminals. All Rural

Development offices have the telecommunications capability available to

access this subset of data.

SAFEGUARDS:

Records are kept in locked offices at the Local, Area, State, and

National Offices. A limited subset of data is also maintained in a tape

and disc library and an on-line retrieval system at the Finance Office.

Access is restricted to authorized Rural Development personnel. A

system of operator and terminal passwords and code numbers is used to

restrict access to the on-line system. Passwords and code numbers are

changed as necessary.

RETENTION AND DISPOSAL:

Records are maintained subject to the Federal Records Disposal Act

of 1943 (44 U.S.C. 33), and in accordance with Rural Development's

disposal schedules. The Local, Area, State, and National Offices

dispose of records by shredding, burning, or other suitable disposal

methods after established retention periods have been fulfilled.

Finance Office records are disposed of

[[Page 38549]]

by overprinting. (Destruction methods may never compromise the

confidentiality of information contained in the records.)

Applications, including credit reports and personal references,

which are rejected, withdrawn, or otherwise terminated are kept in the

Local, Area, or State Office for 2 full fiscal years and 1 month after

the end of the fiscal year in which the application was rejected,

withdrawn, canceled, or expired. If final action was taken on the

application, including an appeal, investigation, or litigation, the

application is kept for 1 full fiscal year after the end of the fiscal

year in which final action was taken.

The records, including credit reports, of borrowers who have paid

or otherwise satisfied their obligation are retained in the Local,

Area, or State Office for 1 full fiscal year after the fiscal year in

which the loan was paid in full. Correspondence records at the National

Office which concern borrowers and applicants are retained for 3 full

fiscal years after the last year in which there was correspondence.

SYSTEM MANAGER(S) AND ADDRESS:

The Community Development Manager at the Local Office, the Rural

Development Manager at the Area Office, and the State Director at the

State Office, the Deputy Chief Financial Officer in St. Louis, MO, and

the respective Administrators in the National Office at the following

addresses: Administrator, Rural Housing Service, USDA, 1400

Independence Avenue, SW, Room 5014, South Building, Stop 0701,

Washington, DC 20250-0701; Administrator, Rural Business-Cooperative

Service, USDA, 1400 Independence Avenue, SW, Room 5045, South Building,

Stop 3201, Washington, DC 20250-3201; Administrator, Rural Utilities

Service, USDA, 1400 Independence Avenue, SW, Room 4501, South Building,

Stop 1510, Washington, DC 2050-1510.

NOTIFICATION PROCEDURE:

Any individual may request information regarding this system of

records, or determine whether the system contains records pertaining to

him/her, from the appropriate System Manager. If the specific location

of the record is not known, the individual should address his or her

request to: Rural Development, Freedom of Information Officer, United

States Department of Agriculture, 1400 Independence Avenue, SW., Stop

0742, Washington, DC 20250-0742.

A request for information pertaining to an individual must include

a name; an address; the Rural Development office where the loan or

grant was applied for, approved, and/or denied; the type of Rural

Development program; and the date of the request or approval.

RECORD ACCESS PROCEDURES:

Any individual may obtain information regarding the procedures for

gaining access to a record in the system which pertains to him or her

by submitting a written request to one of the System Managers.

CONTESTING RECORD PROCEDURES:

Same as record access procedures.

RECORD SOURCE CATEGORIES:

Information in this system comes primarily from the applicant,

borrower, grantee, or tenant. Credit reports and personal references

come primarily from credit agencies and creditors.

EXEMPTIONS CLAIMED FOR THE SYSTEM:

None.

USDA/RURAL DEVELOPMENT-2

SYSTEM NAME:

Biographical Sketch File

SYSTEM LOCATION:

USDA/Rural Development, 1400 Independence Avenue, SW., Stop 0730,

Washington, DC 20250-0730.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:

All employees and former employees of Rural Development at or above

the Division Director level and all current and former Schedule C

employees and Senior Executive Service members.

CATEGORIES OF RECORDS IN THE SYSTEM:

The system consists of files containing information concerning

employee's educational and employment history, awards, marital status,

number of children, present employment, place of birth, and current

residence. The employee knows the file is maintained and has approved

the biography.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM

7 U.S.C. 1921 et seq., 42 U.S.C. 1471 et seq., and 5 U.S.C. 301.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES

OF USERS AND THE PURPOSE OF SUCH USES:

The information is furnished to the news media, congressional

committees, organizations to which the employee will be speaking, and

other interested parties.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING,

AND DISPOSING OF RECORDS IN THE SYSTEM:

STORAGE:

Records are maintained in file folders at the National Office.

RETRIEVABILITY:

Records are indexed by name.

SAFEGUARDS:

Recors are kept in a building with full-time security.

RETENTION AND DISPOSAL:

Indefinite.

SYSTEM MANAGER(S) AND ADDRESSES:

Administrator, Rural Housing Service, USDA, 1400 Independence

Avenue, SW., Room 5014, South Building, Stop 0701, Washington, DC

20250-0701; Administrator, Rural Business-Cooperative Service, USDA,

1400 Independence Avenue, SW., Room 5045, South Building, Stop 3201,

Washington, DC 20250-3201; Administrator, Rural Utilities Service,

USDA, 1400 Independence Avenue, SW., Room 4501, South Building, Stop

1510, Washington, DC 20250-1510.

NOTIFICATION PROCEDURE

Any individual may request information concerning this system of

records, or information as to whether the system contains record

pertaining to him/her from the System Manager. A request for

information pertaining to an individual should contain: name, address,

position(s) held in Rural Development, and dates of employment.

RECORD ACCESS PROCEDURES:

Any individual may obtain information as to the procedures for

gaining access to and contesting a record in the system which pertains

to him/her by submitting a written request to the System Manager.

CONTESTING RECORD PROCEDURES:

Same as record access procedures.

RECORD SOURCE CATEGORIES:

Information in this system is provided by the employee, or is taken

from his/her recorded with his/her concurrence.

USDA/RURAL DEVELOPMENT-3

SYSTEM NAME:

Graduation File.

SYSTEM LOCATION:

Each borrower's graduation file is located in the Local and Area

Offices through which the borrower obtained his loan, and, in some

cases, at the State Office responsible for that Local and Area Offices.

[[Page 38550]]

A list of State Offices and any additional States for which an

office is responsible is included under the system titled ``USDA/Rural

Development-1 Applicant, Borrower, Grantee, or Tenant File.'' The

address of State and Local Offices are listed in the telephone

directory or the appropriate city or town under the heading ``United

States Government, Department of Agriculture, Rural Development.''

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:

All Rural Development borrowers whose loans are eligible for review

to determine whether the borrower should obtain credit from other

sources. All borrowers who have been in debit for at least five years

on a real estate loan are considered eligible for review.

CATEGORIES OF RECORDS IN THE SYSTEM:

The system consists of files containing names of borrowers eligible

for review, type of loan, whether graduation is advisable and any

communications with the borrower concerning whether the loan has been

paid off or if the borrower is usable to refinance, as well as comments

of the Community Development Manager.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:

7 U.S.C. 1921 et seq., 42 U.S.C. 1471 et seq., and 5 U.S.C. 301.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES

OF USERS AND THE PURPOSES OF SUCH USES: