Privacy Act of 1974, as Amended; Altered System of Records and Report of New Routine Use

SOCIAL SECURITY ADMINISTRATION

Privacy Act of 1974, as Amended; Altered System of Records and

Report of New Routine Use

AGENCY: Social Security Administration (SSA).

ACTION: Altered system of records and new routine use.

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SUMMARY: In accordance with the Privacy Act (5 U.S.C. 552a(e)(4) and

(11)), we are issuing public notice of our intent to alter an existing

system of records and establish a new routine use, both in the 09-60-

0058--Master Files of Social Security Number (SSN) Holders and SSN

Applications, SSA/OSR, system of records. (For convenience, we will

refer to this system of records as the SSN System.) The proposed

alteration and new routine use will allow SSA to obtain the SSNs of the

parents on applications for SSNs for individuals who have not attained

the age of 18 and to share that information with the Secretary of the

Treasury for the purpose of administering those sections of the

Internal Revenue Code of 1986 which grant tax benefits based on support

or residence of children. We are also making non-substantive

housekeeping changes in the notice.

We invite public comment on this publication.

DATES: We filed a report of an altered system of records and proposed

new routine use with the Chairman, Committee on Government Reform and

Oversight of the House of Representatives; the Chairman, Committee on

Governmental Affairs of the Senate; and the Administrator, Office of

Information and Regulatory Affairs, Office of Management and Budget on

March 9, 1998. The routine use will become effective as proposed,

without further notice May 4, 1998, unless we receive comments on or

before that date that result in a contrary determination.

ADDRESSES: Interested individuals may comment on this publication by

writing to the SSA Privacy Officer, Social Security Administration,

Room 3-A-6 Operations Building, 6401 Security Boulevard, Baltimore,

Maryland 21235. Comments may be faxed to (410) 966-0869. All comments

received will be available for public inspection at that address.

FOR FURTHER INFORMATION CONTACT: Mr. Michael Walker, Social Insurance

Specialist, Office of Disclosure Policy, Social Security

Administration, 3-C-1 Operations Building, 6401 Security Boulevard,

Baltimore, Maryland 21235, telephone 410-965-8525.

SUPPLEMENTARY INFORMATION:

A. Discussion of the Alteration and the Proposed New Routine Use

Section 1090(b) of the Taxpayer Relief Act of 1997, Pub. L. 105-34,

amends section 205(c)(2)(B)(ii) of the Social Security Act, which

imposes a duty on the Commissioner of Social Security to require of

applicants for an SSN such evidence as may be necessary to establish

the age, citizenship, or alien status, and true identity of such

applicants. ``Such evidence'', for applications for SSNs for

individuals who have not attained the age of 18, ``shall include the

information described in'' section 205(c)(2)(C)(ii). That information

is the SSNs of the parents.

In addition, section 205(c)(2)(C)(ii) requires each parent to

furnish to a State (or political subdivision) the parent's SSN (or SSNs

if there is more than one) for the purpose of issuing a birth

certificate, unless the State, in accordance with regulations issued by

the Commissioner of Social Security, finds good cause for not requiring

the parents to furnish their SSNs. Section 1090(b) requires the States

to make those parents' SSNs available to the Commissioner of Social

Security. The Commissioner is required to share the parents SSNs,

obtained under sections 205(c)(2)(B)(ii) and (C)(ii), with the

Secretary of the Treasury for the purpose of administering those

sections of the Internal Revenue Code of 1986 which grant tax benefits

based on support or residence of children.

Categories of records currently collected in the SSN system include

name, date and place of birth, sex, both parents' names, and race/

ethnic data but does not include the SSNs of parents provided on

applications of individuals who have not attained the age of 18. In

response to the requirements of the Taxpayer Relief Act of 1997, we

propose to alter the categories of records in the system to include the

SSNs of parents provided on applications for SSNs of individuals who

have not attained the age of 18.

We are also altering our statement of purpose for the collection of

information to recognize that we collect the parents' SSNs for two

reasons:

1. As evidence with respect to an application for an SSN for an

individual who has not attained the age of 18, and

2. In order to share parents' SSNs with the Secretary of the

Treasury for use in administering those sections of the Internal

Revenue Code of 1986 which grant tax benefits based on support or

residence of children.

We are also proposing to add a routine use to the SSN system of

records allowing disclosure of the SSNs of parents provided on

applications for SSNs of individuals who have not attained the age of

18 to the Secretary of the Treasury for the purpose of administering

those sections of the

[[Page 14166]]

Internal Revenue Code of 1986 which grant tax benefits based on support

or residence of children. The routine use will read that disclosures

will be made:

8(c) To the Secretary of the Treasury for the purpose of

administering those sections of the Internal Revenue Code of 1986

which grant tax benefits based on support or residence of children.

(As required by section 1090(b) of the Taxpayer Relief Act of 1997,

Pub. L. 105-34, this routine use applies specifically to SSNs of

parents shown on an application for an SSN for an individual who has

not attained the age of 18.

A notice of the SSN system, to which the routine use will apply,

was last published in the Federal Register at 61 FR 33791, June 28,

1996.

B. Compatibility of Proposed Routine Use

We are proposing the new routine use discussed above in accordance

with the Privacy Act (5 U.S.C. 552a(a)(7), (b)(3), (e)(4) and (e)(11))

and our disclosure regulation (20 CFR part 401).

The Privacy Act permits us to disclose information about

individuals without their consent for a routine use, i.e., where the

information will be used for a purpose that is compatible with the

purpose for which we collected the information. Consistent with the

Privacy Act, under 20 CFR 401.150 we may disclose information under a

routine use for administering our programs, or for administering

similar programs of other agencies. In addition, our regulation at 20

CFR 401.120, provides that we disclose information when a law

specifically requires it. The Taxpayer Relief Act of 1997, Pub. L. 105-

34, specifically requires disclosure of the information at issue to the

Secretary of the Treasury. Therefore, we find that disclosing the SSNs

of parents of applicants for SSNs who have not attained the age of 18

serves purposes that are deemed to be compatible with purposes for

which SSA collects the information and meets the criteria of the

Privacy Act and the regulation for establishment of a routine use.

C. Effect of the Proposal on Individual Rights

As discussed above, the proposed system alterations and new routine

use will permit SSA to disclose the parents' SSNs at issue to the

Secretary of the Treasury for administering those sections of the

Internal Revenue Code of 1986 which grant tax benefits based on support

or residence of children.

While disclosure will have some impact on the privacy of

individuals, (the SSNs of the parents will be known to the Social

Security Administration and the Department of the Treasury) the

Treasury will be better able to administer certain parts of the tax

code. SSA will follow all statutory and regulatory requirements for

disclosure. Thus, we do not anticipate that the disclosure will have

any unwarranted effect on the privacy or other rights of individuals.

Dated: March 9, 1998.

Kenneth S. Apfel,

Commissioner of Social Security.

09-60-0058

System name:

Master Files of Social Security Number (SSN) Holders and SSN

Applications, SSA/OSR.

Security classification:

None.

System location:

Social Security Administration, Office of Telecommunications and

Systems Operations, 6401 Security Boulevard, Baltimore, MD 21235

Social Security Administration, Office of Central Records Operations,

300 N. Greene Street, Baltimore, MD 21201

Records may also be maintained at contractor sites (contact the

system manager at the address below to obtain contractor addresses).

Categories of individuals covered by the system:

This system contains a record of each individual who has applied

for and been assigned an SSN. Also, each individual who applied for an

SSN, but was not assigned one due to the following:

His/her application was supported by documents which are

suspected to be fraudulent and are being verified with the issuing

agency, or have been determined to be fraudulent, or

Fraud is not suspected, but further verification of

information on his/her application or additional supporting documents

are needed, or

None of the above applies, but processing of the

application has not yet been completed.

Categories of records in the system:

This system contains all of the information received on

applications for SSNs (e.g., name, date and place of birth, sex, both

parents' names, and race/ethnic data)(and, in the case of an

application for an SSN for an individual who has not attained the age

of 18, the SSNs of the parents), and any changes in the information on

the applications that are submitted by the SSN holders. It also

contains information from applications supported by evidence suspected

or determined to be fraudulent, along with the mailing addresses of the

individuals who filed such applications and descriptions of the

documentation which they submitted. Cross-references may be noted where

multiple numbers have been issued to the same individual and an

indication may be shown that a benefit claim has been made under a

particular SSN(s).

Authority for maintenance of the system:

Sections 205(a) and 205(c)(2) of the Social Security Act (the Act)

(42 U.S.C. Secs. 405(a) and 405(c)(2)).

Purpose(s):

Information in this system is used by the Social Security

Administration (SSA) to assign SSNs. The information also is used for a

number of administrative purposes, such as:

By SSA components for various Old Age, Survivors and

Disability Insurance, Supplemental Security Income, and Medicare/

Medicaid claims purposes including usage of the SSN itself as a case

control number and a secondary beneficiary cross-reference control

number for enforcement purposes and use of the SSN record data for

verification of claimant identity factors and for other claims purposes

related to establishing benefit entitlement;

By SSA as a basic control for retained earnings

information;

By SSA as a basic control and data source to prevent

issuance of multiple SSNs;

As the means to identify reported names or SSNs on

earnings reports;

For resolution of earnings discrepancy cases;

For statistical studies;

By the Office of the Inspector General, Office of Audit

Services, for auditing benefit payments under Social Security programs;

By the Department of Health and Human Services (DHHS)

Office of Child Support Enforcement for locating parents who owe child

support;

By the National Institute of Occupational Safety and

Health for epidemiological research studies required by the

Occupational Safety and Health Act of 1974;

By the DHHS Office of Refugee Resettlement for

administering Cuban refugee assistance payments; and

By the DHHS Health Care Financing Administration for

administering Title XVIII claims.

By the Secretary of the Treasury for use in administering

those sections of the Internal Revenue Code of 1986 which grant tax

benefits based on

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support or residence of children. (Applies specifically to SSNs of

parents provided on applications for SSNs for individuals who have not

attained the age of 18.)

Information in this system is also used by SSA to prevent the

processing of an SSN card application for an individual whose

application is identified as having been supported by evidence that

either:

Is suspect and being verified, or

Has been determined to be fraudulent.

With this system in place, clerical investigation and intervention

is required. Social Security offices are alerted when an applicant

attempting to obtain an SSN card visits other offices in an attempt to

find one which might unwittingly accept fraudulent documentation.

Routine uses of records maintained in the system, including categories

of users and the purposes of such uses:

Disclosure may be made for routine uses as indicated below:

1. Employers are notified of the SSNs of employees in order to

complete their records for reporting wages to SSA pursuant to the

Federal Insurance Contributions Act and section 218 of the Act.

2. To Federal, State and local entities for the purpose of

administering income-maintenance and health-maintenance programs, where

such use of the SSN is authorized by Federal statute.

3. To the Department of Justice (DOJ), Federal Bureau of

Investigation and United States Attorneys Offices, and to the

Department of the Treasury, United States Secret Service, for

investigating and prosecuting violations of the Act.

4. To the DOJ, Immigration and Naturalization Service, for the

identification and location of aliens in the United States pursuant to

requests received under section 290(c) of the Immigration and

Nationality Act (8 U.S.C. 1360(c)).

5. To a contractor for the purpose of collating, evaluating,

analyzing, aggregating or otherwise refining records when SSA contracts

with a private firm. (The contractor shall be required to maintain

Privacy Act safeguards with respect to such records.)

6. To the Railroad Retirement Board for:

(a) Administering provisions of the Railroad Retirement and Social

Security Acts relating to railroad employment; and

(b) Administering the Railroad Unemployment Insurance Act.

7. To the Department of Energy for its study of the long-term

effects of low-level radiation exposure.

8. To the Department of the Treasury for:

(a) Tax administration as defined in section 6103 of the Internal

Revenue Code (IRC) (26 U.S.C. 6103); and

(b) Investigating the alleged theft, forgery, or unlawful

negotiation of Social Security checks.

(c) Administering those sections of the Internal Revenue Code of

1986 which grant tax benefits based on support or residence of

children. (As required by section 1090(b) of the Taxpayer Relief Act of

1997, Pub. L. No. 105-34, this routine use applies specifically to SSNs

of parents shown on an application for an SSN for an individual who has

not attained the age of 18.

9. To a congressional office in response to an inquiry from the

office made at the request of the subject of a record.

10. To the Department of State for administering the Act in foreign

countries through facilities and services of that agency.

11. To the American Institute of Taiwan for administering the Act

on Taiwan through facilities and services of that agency.

12. To the Department of Veterans Affairs (VA), Philippines

Regional Office, for administering the Act in the Philippines through

facilities and services of that agency.

13. To the Department of the Interior for administering the Act in

the Trust Territory of the Pacific Islands through facilities and

services of that agency.

14. To the Department of Labor for:

(a) Administering provisions of the Black Lung Benefits Act; and

(b) Conducting studies of the effectiveness of training programs to

combat poverty.

15. To VA for the following purposes:

(a) For the purpose of validating SSNs of compensation recipients/

pensioners in order to provide the release of accurate pension/

compensation data by VA to SSA for Social Security program purposes;

and

(b) Upon request, for purposes of determining eligibility for or

amount of VA benefits, or verifying other information with respect

thereto.

16. To Federal agencies which use the SSN as a numerical identifier

in their recordkeeping systems, for the purpose of validating SSNs.

17. To the DOJ, to a court, to another tribunal, or to another

party before such tribunal, when:

(a) SSA, or any component thereof; or

(b) Any SSA employee in his/her official capacity; or

(c) Any SSA employee in his/her individual capacity when DOJ (or

SSA when it is authorized to do so) has agreed to represent the

employee; or

(d) The United States or any agency thereof when SSA determines

that the litigation is likely to affect the operations of SSA or any of

its components

is a party to litigation or has an interest in such litigation, and SSA

determines that the use of such records by DOJ, the tribunal, or other

party before such tribunal is relevant and necessary to the litigation,

provided, however, that in each case, SSA determines that such

disclosure is compatible with the purpose for which the records were

collected.

Wage and other information that is subject to disclosure provisions

of the IRC will not be disclosed under this routine use unless

disclosure is expressly permitted by the IRC.

18. To State audit agencies for auditing State supplementation

payments and Medicaid eligibility considerations.

19. To the Social Security agency of a foreign country, to carry

out the purpose of an international Social Security agreement entered

into between the United States and the other country, pursuant to

section 233 of the Act.

20. To Federal, State, or local agencies (or agents on their

behalf) for the purpose of validating SSNs used in administering cash

or noncash income maintenance programs or health maintenance programs

(including programs under the Act).

21. To third party contacts when the party to be contacted has, or

is expected to have, information which will verify documents when SSA

is unable to determine if such documents are authentic.

22. Upon request, information on the identity and location of

aliens may be disclosed to the DOJ, Criminal Division, Office of

Special Investigations, for the purpose of detecting, investigating,

and, when appropriate, taking legal action against suspected Nazi war

criminals in the United States.

23. To the Selective Service System for the purpose of enforcing

draft registration pursuant to the provisions of the Military Selective

Service Act (50 U.S.C. App. 462, as amended by section 916 of Pub. L.

97-86).

24. To contractors and other Federal agencies, as necessary, for

the purpose of assisting SSA in the efficient administration of its

programs. We contemplate disclosing information under this routine use

only in situations in which SSA may enter into a contractual or similar

agreement with a

[[Page 14168]]

third party to assist in accomplishing an agency function relating to

this system of records.

25. Validated SSN information may be disclosed to organizations or

agencies such as prison systems that are required by law to furnish SSA

with SSN information.

26. Nontax return information that is not restricted from

disclosure by Federal law may be disclosed to the General Services

Administration and the National Archives and Records Administration

(NARA) for the purpose of conducting records management studies with

respect to their duties and responsibilities under 44 U.S.C. 2904 and

2906, as amended by NARA Act of 1984.

27. Disclosure of SSNs and dates of birth may be made to VA or

third parties under contract to that agency for the purpose of

conducting VA medical research and epidemiological studies.

28. SSN information may be disclosed to the Office of Personnel

Management (OPM) upon receipt of a request from that agency in

accordance with 5 U.S.C. 8347(m)(3), when OPM needs the information in

administering its pension program for retired Federal Civil Service

employees.

29. Upon request by the Department of Education, SSNs which are

provided by students to postsecondary educational institutions may be

verified as required by Title IV of the Higher Education Act of 1965

(20 U.S.C. 1091).

30. To student volunteers and other workers, who technically do not

have the status of Federal employees, when they are performing work for

SSA as authorized by law, and they need access to personally

identifiable information in SSA records in order to perform their

assigned Agency functions.

31. To Federal, State, and local law enforcement agencies and

private security contractors, as appropriate, information necessary:

(a) To enable them to protect the safety of SSA employees and

customers, the security of the SSA workplace and the operation of SSA

facilities, or

(b) To assist investigations or prosecutions with respect to

activities that affect such safety and security or activities that

disrupt the operation of SSA facilities.

32. Corrections to information that resulted in erroneous inclusion

of individuals in the Death Master File (DMF) may be disclosed to

recipients of erroneous DMF information.

33. To State vital records and statistics agencies, the SSNs of

newborn children for administering public health and income maintenance

programs, including conducting statistical studies and evaluation

projects.

34. Personal identification data (i.e., name, SSN, and date of

birth) concerning individuals who apply for, or are issued, drivers'

licenses or other identification documents may be verified for State

motor vehicle agencies (MVA) that issue such licenses or documents. In

performing such ``verification,'' SSA may indicate whether the

identifying data furnished by a State MVA concerning an individual

match or do not match data maintained in this system of records, and

SSA may identify the particular data elements that do not match. SSA

will not disclose information from this system of records which does

not match the information furnished by the State MVA.

35. Information as to whether an individual is alive or deceased

may be disclosed pursuant to section 1106(d) of the Social Security Act

(42 U.S.C. 1306(d)), upon request, for purposes of an epidemiological

or similar research project, provided that:

(a) SSA determines in consultation with the DHHS, that the research

may reasonably be expected to contribute to a national health interest;

(b) The requester agrees to reimburse SSA for the costs of

providing the information; and

(c) The requester agrees to comply with any safeguards and

limitations specified by SSA regarding rerelease or redisclosure of the

information.

36. In connection with a pilot program, conducted with the

Immigration and Naturalization Service under 8 U.S.C. 1324a(d)(4) to

test methods of verifying that individuals are authorized to work in

the United States, SSA will inform an employer participating in such

pilot program that the identifying data SSN, name and date of birth)

furnished by an employer concerning a particular employee match, or do

not match, the data maintained in this system of records, and when

there is such a match, that information in this systems of records

indicates that the employee is, or is not, a citizen of the United

States.

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

AND DISPOSING OF RECORDS IN THE SYSTEM:

STORAGE:

Records in this system are maintained in paper form (e.g., Forms

SS-5 (Application for an SSN card), and system generated forms);

magnetic media (e.g., magnetic tape and disc with on-line access); in

microfilm and microfiche form and on electronic files (e.g., NUMIDENT

and Alpha-Index).

RETRIEVABILITY:

Records of SSN holders are indexed by both SSN and name. Records of

applications that have been denied because the applicant submitted

fraudulent evidence, or that are being verified because the evidence is

suspected to be fraudulent, are indexed either by the applicant's name

plus month and year of birth, or by the applicant's name plus the

eleven-digit reference number of the disallowed application.

SAFEGUARDS:

Safeguards for automated records have been established in

accordance with the Systems Security Handbook. This includes

maintaining the magnetic tapes and discs within a secured enclosure

attended by security guards. Anyone entering or leaving this enclosure

must have a special badge issued only to authorized personnel.

For computerized records electronically transmitted between Central

Office and Field Office locations (including organizations

administering SSA programs under contractual agreements), safeguards

include a lock/unlock password system, exclusive use of leased

telephone lines, a terminal-oriented transaction matrix, and an audit

trail. All microfilm, microfiche, and paper files are accessible only

by authorized personnel who have a need for the records in the

performance of their official duties.

Expansion and improvement of SSA telecommunications systems has

resulted in the acquisition of terminals equipped with physical key

locks. The terminals also are fitted with adapters to permit the future

installation of data encryption devices and devices to permit the

identification of terminal users.

RETENTION AND DISPOSAL:

All paper forms are retained for five years after they have been

filmed or entered on tape and the accuracy has been verified. They then

are destroyed by shredding. Electronic, as well as updated microfilm

and microfiche records are retained indefinitely. All tape, discs,

microfilm and microfiche files are updated periodically. Out-of-date

magnetic tapes and discs are erased. Out-of-date microfiches are

disposed of by applying heat.

SYSTEM MANAGER(S) AND ADDRESS:

Director, Division of Data Support and Enumeration, Office of

Systems Requirements, Social Security Administration, 6401 Security

Boulevard, Baltimore, MD 21235.

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NOTIFICATION PROCEDURES:

An individual can determine if this system contains a record with

information pertaining to him/her by providing his/her name, signature,

and SSN to the address shown under ``System manager and address''

above. (Furnishing the SSN is voluntary, but it makes searching for an

individual's record easier and avoids delay.) If the SSN is unknown or

no SSN has been assigned because the evidence presented with the

application is being verified or has been determined to be fraudulent,

the individual should provide name, signature, date and place of birth,

sex, mother's birth name, and father's name, and evidence of identity.

Information in this system of records is available to the subjects of

the records.

RECORD ACCESS PROCEDURES:

Same as notification procedures. Also, requesters should reasonably

specify the record contents which they are seeking.

CONTESTING RECORD PROCEDURES:

Same as notification procedures above. Also, requesters should

reasonably identify the record, specify the information which they are

contesting, and state the corrective action sought and the reasons for

the correction, with supporting justification showing how the record is

incomplete, untimely, inaccurate, or irrelevant.

RECORD SOURCE CATEGORIES:

Information in this system is obtained from SSN applicants (or

individuals acting on their behalf). The SSN itself is assigned to the

individual as a result of internal processes of this system.

SYSTEM EXEMPTIONS FROM CERTAIN PROVISIONS OF THE ACT:

None.

[FR Doc. 98-7579 Filed 3-23-98; 8:45 am]

BILLING CODE 4190-29-P