Privacy Act of 1974: Altered System of Records

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Office of the Secretary

Privacy Act of 1974: Altered System of Records

AGENCY: Office of the Assistant Secretary for Management and Budget,

Office of the Secretary, HHS.

ACTION: Notice of an altered system of records.

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SUMMARY: In accordance with the requirements of the Privacy Act, the

U.S. Department of Health and Human Services (HHS) is publishing a

notice of a proposed altered system of records, 09-90-0024, ``Financial

Transactions of HHS Accounting and Finance Offices.'' The purpose of

the alteration is to add

[[Page 48645]]

a new routine use in order to implement the administrative wage

garnishment provision in section 31001(o) of the Debt Collection

Improvement Act of 1996 (Pub. L. 104-134), codified at 31 U.S.C. 3720D.

DATES: HHS submitted a report of an altered system to the Office of

Management and Budget and to the Congress on July 26, 1999. The new

routine use will take effect without further notice 40 days after the

date of publication, unless HHS receives comments which would result in

a contrary determination.

ADDRESSES: Please address comments to: Deputy Assistant Secretary,

Finance, Room 555-D, Hubert H. Humphrey Building, 200 Independence

Ave.. SW., Washington, DC 20201.

Comments received will be available for inspection at this same

address from 9 a.m. to 3 p.m. Monday through Friday.

FOR FURTHER INFORMATION CONTACT: Ms. Sue Mundstuk, Privacy Act

Coordinator, Office of Financial Policy, DASF/ASMB, Room 522-D, Hubert

H. Humphrey Building, 200 Independence Ave, SW., Washington, DC 20201,

Telephone: (202) 690-6228.

SUPPLEMENTARY INFORMATION: The system notice was last published in full

at 62 FR 758 (1997).

On April 26, 1996, the Congress passed Pub. L. 104-134, Sec. 31001

known as the ``Debt Collection Improvement Act of 1996'' (DCIA). The

purposes of this Act are to: (1) Maximize collections of delinquent

debts owed to the Government, (2) minimize the costs of debt

collection, (3) reduce losses arising from debt management activities,

(4) ensure that the public is fully informed of the Federal

Government's debt collection policies, (5) ensure debtors are cognizant

of their financial obligations to repay amounts owed to the Government,

(6) ensure that debtors have all appropriate due process rights,

including the ability to verify, challenge, and compromise claims, and

access to administrative appeals procedures, and (7) encourage

agencies, when appropriate to sell delinquent debts, particularly debts

with underlying collateral, and rely on the experience and expertise of

private sector professionals to provide debt collection services to

Federal agencies.

The DCIA authorizes Federal agencies to administratively garnish

the disposable pay of an individual to collect delinquent nontax debts

owed to the United States in accordance with regulations issued by the

Secretary of the Treasury. The Financial Management Service (FMS), a

bureau of the Department of the Treasury, is responsible for

promulgating the regulations implementing this and other debt

collection tools established by the DCIA. FMS published the final rule

in 63 FR 25136, which was effective June 5, 1998. The complete

administrative wage garnishment provisions can be found at 31 CFR part

285. We have added routine use 22 to provide for the issuing of wage

garnishment orders to the employers of delinquent debtors, pursuant to

31 CFR part 285.

The complete system notice is republished below.

Dated: July 26, 1999.

John J. Callahan,

Assistant Secretary for Management and Budget.

09-90-0024

SYSTEM NAME:

Financial Transactions of HHS Accounting and Finance Offices, HHS/

OS/ASMB.

SECURITY CLASSIFICATION:

None.

SYSTEM LOCATION:

See Appendix 1.

Memoranda copies of claims submitted for reimbursement of travel

and other expenditures while on official business may also be

maintained at the administrative and/or program office of the HHS

employee. Records concerning outstanding debts may also be maintained

at the program office or by the designated claims officer apart from

the finance office.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:

All persons who receive a payment from the Operating Divisions

(OPDIV) Headquarters, Area and District offices and all persons owing

monies to these HHS components. Persons receiving payments include, but

are not limited to, travelers on official business, grantees,

contractors, consultants, and recipients of loans and scholarships.

Persons owing monies include, but are not limited to, persons who have

been overpaid and who owe HHS a refund and persons who have received

from HHS goods or services for which there is a charge or fee (e.g.,

Freedom of Information Act requesters).

CATEGORIES OF RECORDS IN THE SYSTEM:

Name, identification number, address, purpose of payment,

accounting classification and amount paid. Also, in the event of an

overpayment and for outstanding loans, grants or scholarships, the

amount of the indebtedness, the repayment status and the amount to be

collected. In the event of an administrative wage garnishment,

information about the debtor's employment status and disposable pay

available for withholding will be maintained.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:

Budget and Accounting Act of 1950 (Pub. L. 81-784); Debt Collection

Act of 1982 (Pub. L. 97-365); Debt Collection Improvement Act of 1996

(Pub. L. 104-134, sec. 31001).

PURPOSE(S):

These records are an integral part of the accounting systems at

OPDIVs Headquarters and specific Area and District locations. The

records are used to keep track of all payments to individuals,

exclusive of salaries and wages, based upon prior entry into the

systems of the official commitment and obligation of government funds.

When a person is to repay funds advanced as a loan or scholarship,

etc., the records will be used to establish a receivable record and to

track repayment status. In the event of an overpayment to a person, the

record is used to establish a receivable record for recovery of the

amount claimed. The records are also used internally to develop reports

to the Internal Revenue Service (IRS) and applicable State and local

taxing officials of taxable income. This is a Department-wide notice of

payment and collection activities at all locations listed in Appendix

1.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES

OF USERS AND THE PURPOSES OF SUCH USES:

1. Records will be routinely disclosed to the Treasury Department

in order to effect payment.

2. Records may be disclosed to members of Congress concerning a

Federal financial assistance program in order for members to make

informed opinions on programs and/or activities impacting on

legislative decisions. Also, disclosure may be made to a congressional

office from an individual's record in response to an inquiry from the

congressional office made at the request of the individual in order to

be responsive to the constituency.

3. In the event HHS deems it desirable or necessary, in determining

whether particular records are required to be disclosed under the

Freedom of Information Act, disclosure may be made to the Department of

Justice for the purpose of obtaining its advice.

4. A record from this system may be disclosed as a ``routine use''

to a Federal, State or local agency maintaining civil, criminal or

other

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relevant enforcement records or other pertinent records, such as

current licenses, if necessary to obtain a record relevant to an agency

decision concerning the hiring or retention of an employee, the

issuance of a security clearance, the letting of a contract or the

issuance of a license, grant or other benefit.

5. A record from this system may be disclosed to a Federal agency,

in response to its request, in connection with the hiring or retention

of an employee, the issuance of a security clearance, the reporting of

an investigation of an employee, the letting of a contract or the

issuance of a license, grant or other benefit by the requesting agency,

to the extent that the record is relevant and necessary to its decision

on the matter.

6. Where Federal agencies having the power to subpoena other

Federal agencies' records, such as the Internal Revenue Service (IRS)

or the Civil Rights Commission, issue a subpoena to HHS for records in

this system of records, HHS will make such records available, provided

however, that in each case, HHS determines that such disclosure is

compatible with the purpose for which the records were collected.

7. Where a contract between a component of HHS and a labor

organization recognized under E.O. 11491 provides that the agency will

disclose personal records relevant to the organization's mission,

records in the system of records may be disclosed to such organization.

8. A record may be disclosed to the Department of Justice, to a

court, or other tribunal, or to another party before such tribunal,

when: (1) HHS, or any component thereof; (2) Any HHS employee in his/

her official capacity; (3) Any HHS employee in his/her individual

capacity where the Department of Justice (or HHS, where it is

authorized to do so) has agreed to represent the employee; or (4) the

United States or any agency thereof where HHS determines that the

litigation is likely to affect HHS or any of its components, is a party

to litigation or has an interest in such litigation, and HHS determines

that the use of such records by the Department of Justice, the

tribunal, or the other party is relevant and necessary to the

litigation and would help in the effective representation of the

governmental party, provided however, that in each case, HHS determines

that such disclosure is compatible with the purpose for which the

records were collected.

9. A record about a loan applicant or potential contractor or

grantee may be disclosed from the system of records to credit reporting

agencies to obtain a credit report in order to determine the person's

credit worthiness.

10. When a person applies for a loan under a loan program as to

which the OMB has made a determination under I.R.C. 6103(a)(3), a

record about his/her application may be disclosed to the Treasury

Department to find out whether he/she has a delinquent tax account, for

the sole purpose of determining the person's creditworthiness.

11. A record from this system may be disclosed to the following

entities in order to help collect a debt owed the United States:

a. To another Federal agency so that agency can effect a salary

offset;

b. To the Treasury Department or another Federal agency in order to

effect an administrative offset under common law or under 31 U.S.C.

3716 (withholding from money payable to, or held on behalf of, the

individual);

c. To the Treasury Department to request the person's mailing

address under I.R.C. 6103(m)(2) in order to help locate the person or

to have a credit report prepared;

d. To agents of HHS and to other third parties, including credit

reporting agencies, to help locate the person or to obtain a credit

report on him/her, in order to help collect or compromise a debt;

e. To debt collection agents or contractors under 31 U.S.C. 3718 or

under common law to help collect a past due amount or locate or recover

debtors' assets;

f. To the Justice Department for litigation or for further

administrative action; and

g. To the public, as provided by 31 U.S.C. 3720E, in order to

publish or otherwise publicly disseminate information regarding the

identity of the person and the existence of a nontax debt.

Disclosure under part (d) and (g) of this routine use is limited to

the individual's name, address, social security number, and other

information necessary to identify the person. Disclosure under parts

(a)-(c) and (e) is limited to those items; the amount, status, and

history of the claim; and the agency or program under which the claim

arose. An address obtained from IRS may be disclosed to a credit

reporting agency under part (d) only for purposes of preparing a credit

report on the individual.

12. A record from this system may be disclosed to another Federal

agency that has asked HHS to effect an administrative offset under

common law or under 31 U.S.C. 3716 to help collect a debt owed the

United States. Disclosure under this routine use is limited to: Name

and address, Social Security number, and other information necessary to

identify the individual; information about the money payable to or held

for the individual; and other information concerning the administrative

offset.

13. Disclosure with regard to claims or debts arising under or

payable under the Social Security Act 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 of 1986

(31 U.S.C. 3701(a)(3)). The purpose of this disclosure is to aid in the

collection of outstanding debts owed the Federal Government. Disclosure

of records is limited to the individual's name, address, Social

Security number, and other information necessary to establish the

individual's identity; the amount, status and history of the claim; and

the agency or program under which the claim arose.

14. Information in this system of records is used to prepare W-2s

and 1099 Forms to submit to the Internal Revenue Service and applicable

State and local governments items considered to be included as income

to a person: Certain travel related payments to employees, all payments

made to persons not treated as employees (e.g., fees to consultants and

experts), and amounts written-off as legally or administratively

uncollectible, in whole or in part.

15. A record may be disclosed to banks enrolled in the Treasury

Credit Card Network to collect a payment or debt when the person has

given his/her credit card number for this purpose.

16. Records may be disclosed to a contractor (and/or to its

subcontractor) who has been engaged to perform services on an automated

data processing (ADP) system used in processing financial transactions.

The contractor may have been engaged to develop, modify and test a new

ADP system, including both software and hardware upgrades or

enhancements to such a system; perform periodic or major maintenance on

an existing ADP system; audit or otherwise evaluate the performance of

such an ADP system; and/or operate such a system.

17. Records may be disclosed to student volunteers, individuals

working under a personal services contract, and other individuals

performing functions for the Department but technically not having the

status of agency employees,

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if they need access to the records in order to perform their assigned

agency functions.

18. A record from this system may be disclosed to any Federal

agency or its agents in order to participate in a computer matching of

a list of debtors against a list of Federal employees. Disclosure of

records is limited to debtors' names, names of employers, taxpayers

identifying numbers, addresses (including addresses of employers), and

dates of birth, and other information necessary to establish the

person's identity.

19. A record may be disclosed to a commercial reporting agency that

a person is responsible for a current claim, in order to aid in the

collection of claims, typically by providing an incentive to the person

to repay the claim or a debt timely. Disclosure of records is limited

to information about a person as is relevant and necessary to meet the

principal purpose(s) for which it is intended to be used under the law.

20. A record from this system may be disclosed to the Treasury

Department or to an agency operating a Debt Collection Center

designated by the Treasury in order to effect a collection of past due

amounts.

21. If HHS decides to sell a debt pursuant to 31 U.S.C. 3711(I), a

record from the system may be disclosed to purchasers, potential

purchasers, and contractors engaged to assist in the sale or to obtain

information necessary for potential purchasers to formulate bids and

information necessary for purchasers to pursue collection remedies.

22. If HHS decides to administratively garnish wages of a

delinquent debtor under the wage garnishment provision in 31 U.S.C.

3720D, a record from the system may be disclosed to the debtor's

employer. This disclosure will take the form of a wage garnishment

order directing that the employer pay a portion of the employee/

debtor's wages to the Federal Government. Disclosure of records is

limited to debtor's name, address, and social security number.

DISCLOSURE TO CONSUMER REPORTING AGENCIES:

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

from this system to ``consumer reporting agencies,'' as defined in 31

U.S.C. 3701(a)(3). The purpose of this disclosure is to aid in the

collection of outstanding debts owed to the Federal Government,

typically, to provide an incentive for debtors to repay their debts

timely, by making these debts part of their credit records.

Disclosure of records is limited to the individual's name, address,

social security number, and other information necessary to establish

the individual's identity; the amount, status and history of the claim;

and the agency or program under which the claim arose. The disclosure

will be made only after the procedural requirements of 31 U.S.C.

3711(e) have been followed.

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

AND DISPOSING OF RECORDS IN THE SYSTEM:

STORAGE:

Hard copy documents are maintained in file folders at agency

headquarters and area/district office sites; and on computer disc pack

and magnetic tape at central computer sites.

RETRIEVABILITY:

This varies according to the particular accounting system within

the HHS Operating Divisions, Area and District Offices. Usually the

hard copy document is filed by name within accounting classification.

Computer records may be indexed by social security number and voucher

number. Intra-departmental uses and transfers concern the validation

and certification for payment, and for HHS internal audits.

SAFEGUARDS:

1. Authorized Users: Employees and officials directly responsible

for programmatic or fiscal activity, including administrative and staff

personnel, financial management personnel, computer personnel, and

managers who have responsibilities for implementing HHS funded

programs.

2. Physical Safeguards: File folders, reports and other forms of

personnel data, and electronic diskettes are stored in areas where fire

and life safety codes are strictly enforced. All documents and

diskettes are protected during lunch hours and nonworking hours in

locked file cabinets or locked storage areas. Magnetic tapes and

computer matching tapes are locked in a computer room and tape vault.

3. Procedural Safeguards: Password protection of automated records

is provided. All authorized users protect information from public view

and from unauthorized personnel entering an office. The safeguards

described above were established in accordance with HHS Chapter 45-13

of the General Administration Manual; and the HHS ADP System Manual

Part 6, ``ADP Systems Security.''

RETENTION AND DISPOSAL:

Records are purged from automated files once the accounting purpose

has been served; printed copy and manual documents are retained and

disposed of in accordance with General Accounting Office principles and

standards as authorized by the National Archives and Records

Administration.

SYSTEM MANAGER(s) AND ADDRESS:

Department of Health and Human Services, DHHS, Assistant Secretary

for Management and Budget, Office of the Secretary, Room 510A, Hubert

H. Humphrey Building, Washington, DC 20201.

NOTIFICATION PROCEDURE:

Inquiries should be made, either in writing or in person, to the

organizations listed under ``Location'' in Appendix 1, with the

exception of Food and Drug Administration records. For those records,

contact: FDA Privacy Act Coordinator (HFW-30), Food and Drug

Administration, 5600 Fishers Lane, Rockville, MD 20857.

The individual making the inquiry must show proof of identity

before information is released. Give name and social security number,

purpose of payment or collection (travel, grant, etc.) and, if

possible, the agency accounting classification.

RECORD ACCESS PROCEDURE:

Same as notification procedures. Requesters should also clearly

specify the record contents being sought, and may include a request for

an accounting of disclosures that have been made of their records, if

any. (These access procedures are in accordance with HHS regulations

(45 CFR 5b.5(a)(2)).)

CONTESTING RECORD PROCEDURE:

Contact the official at the address specified under notification

procedure above, and reasonably identify the record and specify the

information being contested, the corrective action sought, and the

reasons for requesting the correction, along with supporting

information to show how the record is inaccurate, incomplete, untimely,

or irrelevant.

RECORD SOURCE CATEGORIES:

Travel vouchers submitted by the individual; grant, contract and

loan award document; delinquent loan, grant and scholarship record;

consultant invoice of services rendered; and application for travel

advance.

SYSTEMS EXEMPTED FROM CERTAIN PROVISIONS OF THE ACT:

None.

[[Page 48648]]

Appendix 1--Location

Indian Health Service Area Offices (IHS)

Aberdeen Area Indian Health Service, Federal Building, 115 Fourth

Avenue, Southeast, Aberdeen, SD 57401

Alaska Area Indian Health Service, 4141 Ambassador Drive, Anchorage,

AK 99508-5928

Albuquerque Area Indian Health Service, 5338 Montgomery Blvd., NE,

Albuquerque, NM 87109-1311

Bemidji Area Indian Health Service, 522 Minnesota Ave., NW, Bemidji,

MN 56601

Billings Area Indian Health Service, 2900 4th Avenue North,

Billings, MT 59101

California Area Indian Health Service, 1825 Bell Street, Sacramento,

CA 95825-1097

Nashville Area Indian Health Service, 711 Stewarts Ferry Pike,

Nashville, TN 37214-2634

Navajo Area Indian Health Service, P.O. Box 9020, Window Rock, AZ

86515-9020

Oklahoma City Area Indian Health Service, Five Corporate Plaza, 3625

NW 56th Street, Oklahoma City, OK 73112

Phoenix Area Indian Health Service, Two Renaissance Square, 40 North

Central Avenue, Phoenix, AZ 85004

Portland Area Indian Health Service, 1220 S.W. Third Avenue--Room

476, Portland, OR 97204-2892

Tucson Area Indian Health Service, 7900 South ``J'' Stock Road,

Tucson, AZ 97204-2892

Food and Drug Administration District Offices (FDA)

Food and Drug Administration, FDA, 60 Eighth Street, NE, Atlanta, GA

30309

Food and Drug Administration, FDA, Boston District Office, One

Montvale Avenue, Stoneham, MA 62180

Food and Drug Administration, FDA, 599 Delaware Avenue, Buffalo, NY

14202

Food and Drug Administration, FDA, Room 700, Federal Office

Building, 850 3rd Avenue (at 30th Street), Brooklyn, NY 11232

Food and Drug Administration, FDA, 61 Main Street, West Orange, NJ

07052

Food and Drug Administration, FDA, Room 1204, US Customhouse, 2nd

and Chestnut Streets, Philadelphia, PA 19106

Food and Drug Administration, FDA, 900 Madison Avenue, Baltimore, MD

21201

Food and Drug Administration, FDA, San Juan District Office, PO Box

5719 PTA, De Tierra Station, San Juan, PR 00906-5719

Food and Drug Administration, FDA, Room 1222, Main Post Office

Building, 433 West Van Buren Street, Chicago, IL 60607

Food and Drug Administration, FDA, 1560 East Jefferson Avenue,

Detroit, MI 48207

Food and Drug Administration, FDA, 1141 Central Parkway, Cincinnati,

OH 45202

Food and Drug Administration, FDA, 240 Hennepin Avenue, Minneapolis,

MN 55401

Food and Drug Administration, FDA, 3032 Bryan Street, Dallas, TX

75204

Food and Drug Administration, FDA, 4298 Elysian Fields, New Orleans,

LA 70122

Food and Drug Administration, FDA, National Center for Toxicological

Research, Jefferson, AR 72079

Food and Drug Administration, FDA, 1009 Cherry Street, Kansas City,

MO 64106

Food and Drug Administration, FDA, US Courthouse and Courthouse

Building, 1114 Market Street, Room 1002, St. Louis, MO 63101

Food and Drug Administration, FDA, Building 20, Denver Federal

Center, PO Box 25087, Denver, CO 80255-0087

Food and Drug Administration, FDA, Federal Office Building, Room

506, 50 United National Plaza, San Francisco, CA 94102

Food and Drug Administration, FDA, 1521 West Pico Boulevard, Los

Angeles, CA 90015

Food and Drug Administration, FDA, 22201 23rd Avenue, SE, Bothell,

WA 98021-4421

Food and Drug Administration, FDA, Headquarters Office, 5600 Fishers

Lane, Room 11-83, Parklawn Building, Rockville, MD 20857

Centers for Disease Control and Prevention (CDC)

Centers for Disease Control and Prevention, CDC, Accounting Section

(CO-5), Robert A. Taft Laboratories, 4676 Columbia Parkway,

Cincinnati, OH 45226

Centers for Disease Control and Prevention, CDC

--and--

Agency for Toxic Substances and Disease Registry (ATSDR)

Financial Management Office, 1600 Clifton Road NE, (M/S D-04),

Atlanta, GA 30333

Health Care Financing Administration (HCFA)

Health Care Financing Administration, HCFA, Room C3-0927, 7500

Security Boulevard, Baltimore, MD 21244

National Institutes of Health (NIH)

National Institutes of Health, NIH, Building 1, Room 222, Rocky

Mountain Laboratory, Hilton, MT 59840

National Institutes of Health, NIH, National Institute of Mental

Health, WAW Building, Room 562, St. Elizabeth's Hospital,

Washington, DC 20032

National Institutes of Health, NIH, Frederick Cancer Research

Facility, Fort Detrick Building, Room 427, Frederick, MD 21702-1201

National Institutes of Health, NIH, National Institutes of

Environmental Health Sciences, Room B2-03, Building 101, Research

Triangle Park, NC 27709

National Institutes for Health, NIH, National Institute on Drug

Abuse, Addiction Research Center, Building C, Room 248, 4940 Eastern

Avenue, Baltimore, MD 21224

National Institutes for Health, NIH, Headquarters Office, Operations

Accounting Branch, Building 31, Room B1-B63, 9000 Rockville Pike,

Bethesda, MD 20892-0134

Program Support Center (PSC)

Program Support Center, PSC, Division of Fiscal Services, 5600

Fishers Lane, Room 16-05, Rockville, MD 20857

Individual records of the following HHS Operating Divisions may

be obtained from the Program Support Center (PSC):

1. Administration for Children and Families (ACF)

2. Administration on Aging (AoA)

3. Agency for Health Care Policy and Research (AHCPR)

4. Health Resources and Services Administration (HRSA)

5. Indian Health Service (IHS)

6. Substance Abuse and Mental Health Services Administration

(SAMHSA)

7. Office of the Secretary (OS)

Substance Abuse and Mental Health Services Administration (SAMHSA)

In addition to the individual records maintained by the PSC,

travel-related records for SAMHSA employees may also be obtained

from the following SAMHSA program offices:

Office of the Administrator, Substance Abuse and Mental Health

Services Administration, Room 12-107, Parklawn Building, 5600

Fishers Lane, Rockville, Maryland 20857

Office of Applied Studies, Substance Abuse and Mental Health

Services Administration, Room 16-105, Parklawn Building, 5600

Fishers Lane, Rockville, Maryland 20857

Office of Program Services, Division of Administrative Services,

Substance Abuse and Mental Health Services Administration, Room 6-

101, Parklawn Building, 5600 Fishers Lane, Rockville, Maryland 20857

Center for Substance Abuse Prevention, Substance Abuse and Mental

Health Services Administration, Room 9D10, Rockwall II Building,

5600 Fishers Lane, Rockville, Maryland 20857

Center for Substance Abuse Treatment, Substance Abuse and Mental

Health Services Administration, Room 10-75, Rockwall II Building,

5600 Fishers Lane, Rockville, Maryland 20857

Center for Mental Health Services, Substance Abuse and Mental Health

Services Administration, Room 15-105, Parklawn Building, 5600

Fishers Lane, Rockville, Maryland 20857

[FR Doc. 99-23122 Filed 9-3-99; 8:45 am]

BILLING CODE 4150-04-P