Privacy Act of 1974: Notice of a Computer Matching Program for Federal Salary Offset

DEPARTMENT OF AGRICULTURE

Office of the Secretary

Privacy Act of 1974: Notice of a Computer Matching Program for

Federal Salary Offset

AGENCY: Farm Service Agency (FSA); Risk Management Agency, formerly the

Federal Crop Insurance Corporation (FCIC); Farm Service Agency/

Commodity Credit Corporation (FSA/CCC); and Office of the Chief

Financial Officer (OCFO)/National Finance Center, formerly the Office

of Finance and Management/National Finance Center (OFM/NFC). These

agencies of the United States Department of Agriculture throughout this

notice are referred to collectively as ``USDA''.

ACTION: Notice of computer matching program between United States

Department of Agriculture (USDA) and the United States Postal Service

(USPS).

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SUMMARY: USDA is giving notice that it intends to conduct a computer

matching program with the USPS to identify USPS employees who owe

certain types of delinquent debts to the United States Government under

various programs administered by the above USDA agencies because of

loans, fees, overpayments, or entitlements.

DATES: Comments must be received March 18, 1999, to be considered.

Unless comments are received which result in a contrary determination,

the matching program covered by this Notice will begin no sooner than

March 29, 1999.

ADDRESSES: Comments should be addressed to Richard M. Guyer, Director

of the Fiscal Policy Division, USDA/OCFO, 1400 Independence Avenue, SW,

Room 5411, South Building, Washington, DC 20250, telephone (202) 690-

0291.

SUPPLEMENTARY INFORMATION: Pursuant to a subsection (o) of the Privacy

Act of 1974, as amended, (5 U.S.C. 552a), USDA and USPS have concluded

an agreement to conduct a computer matching program. The purpose of the

match is to exchange personal data between the agencies for collection

of delinquent debts from defaulters of obligations held by USDA. The

match will yield the identity and location of the debtors who are also

employees of USPS so that USDA can pursue recoupment of the debts by

voluntary payment or by salary offset procedure. Computer matching

appears to be the most efficient and effective manner to accomplish

this task with the least amount of intrusion into the personal privacy

of the individuals concerned.

A copy of the computer matching agreement between USDA and USPS is

available to the public upon request. Requests should be submitted to

the Debt Collection Coordinator, USDA, 1400 Independence Avenue, SW,

Room 5411, South Building, Washington, DC 20250. This notice is being

published as required by section (e)(12) of the Privacy Act of 1994 (5

U.S.C. 552a(e)(12)), as amended by the Computer Matching and Privacy

Protection Act of 1988 (Pub. L. 100-503).

The following information is provided as required by paragraph 5b

of Appendix I to Office of Management and Budget Circular A-130,

revised.

1. Participating agencies: The recipient agency is USPS. The source

agency is USDA.

2. Beginning and ending dates: The matching program will continue

in effect no longer than 18 months. If within three months of the

expiration date, the Data Integrity Boards of both USDA and the USPS

find that the matching program can be conducted without change and both

USDA and the USPS certify that the matching program has been conducted

in compliance with the matching agreement, the matching program may be

extended for one additional year.

3. Purpose of the match: The purpose of the match is to identify

and locate USPS employees receiving any Federal salary or benefit

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

United States government under the programs administered by the USDA,

in order to permit the USDA to pursue and collect the debt by voluntary

repayments or salary offset procedures.

The names of USPS employees identified through the matching program

will be removed from lists of delinquent debts being referred to the

Internal Revenue Service (IRS) for collection from Federal income tax

refunds. This action is required to conform to an IRS requirement for

the Income Tax Refund Offset Program.

4. Description of the match: The subject matching program will

involve several steps. USDA will provide USPS one or more magnetic

computer tapes of claims submitted by USDA agencies. By computer, USPS

will compare that information with its payroll file, establishing

matched individuals on the basis of Social Security Numbers (SSN's).

For each matched individual, USPS will provide to USDA the individual's

name, SSN, home address, work location and information concerning the

individual's employment status as permanent or temporary. The

respective agencies will verify identity and debtor status of the

matched individuals by manually comparing the list of matched

individuals to their records of the debts, by conducting independent

inquiries when necessary to resolve questionable identities, and by

verifying that the debt is still delinquent.

Besides verifying debtor identity and the status of the debt,

before USDA taking any steps to effect involuntarily offset of USPS

employee salaries, USDA agencies will give debtors a 30-day written

notice stating the amount of the debt and that the debtor may repay it

voluntarily. Debts not repaid voluntarily will be referred to USPS for

involuntary salary offset. Individuals verified as owing delinquent

debts to USDA will be afforded all applicable due process rights

contained in the Debt Collection Act.

5. Legal authorities: This matching program will be conducted under

the following authorities:

(a) The Debt Collection Act of 1982 (5 U.S.C. 5514), which gives

Federal agencies the authority to offset the salaries of Federal and

USPS employees who are delinquent on debts owed to the Federal

Government;

(b) Office of Personnel Management (OPM) regulations, 5 CFR part

550, subpart K (Collection by Offset from Indebted Government

Employees), Secs. 550.1101-1108, which set the standards for Federal

agency rules implementing the Debt Collection Act; and

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(c) USDA regulations at 7 CFR part 3, subpart C, which implement 5

U.S.C. 5514 and OPM regulations, authorizing USDA agencies to issue

regulations governing debt collection by salary offset (7 CFR 3.68).

6. Categories of individuals involved: Delinquent debtors who have

received benefits from USDA program agencies.

7. Systems of Records and Estimation of Number of Records Involved:

(a) The USPS will provide extracts from its Privacy Act System of

Records USPS 050.020, Finance Records-Payroll System, containing

payroll records on approximately 800,000 current USPS employees.

Disclosure will be made under routine use 24 of that system, a full

description of which was last published in 57 FR 57515, dated December

4, 1992.

(b) The USDA will provide extracts from its (1) Applicant/Borrower

or Grantee File (USDA/FSA-14), containing records on approximately

762,000 debtors (approximately 88,000 of the 762,000 records will be

sent for the match), a full description of which was last published in

the Federal Register at 62 FR 5568 on February 6, 1997 (routine use

number 9); (2) Accounts Receivable (USDA/FCIC-1), containing records on

approximately 880 debtors (approximately 880 will be sent for the

match), a full description of which was last published in the Federal

Register at 53 FR 4047 on February 11, 1988 (routine use number 9); (3)

Claims Data Base (Automated) (USDA/FSA-13), containing records on

approximately 25,000 debtors, (approximately 25,000 will be sent for

the match) a full description of which was last published in the

Federal Register at 62 FR 5568 on February 6, 1997 (routine use number

9); and (4) Administrative Billings and Collections (USDA/OCFO-3),

containing records on approximately 45,000 debtors (approximately 6,750

will be sent for the match) a full description of which was last

published in the Federal Register at 54 FR 47622 on November 10, 1997

(routine use number 6).

8. Individual notice and opportunity to contest: USDA will provide

to matched individuals due process consisting of USDA's verification of

debt; 30-day written notice to the debtor explaining the debtor's

rights; provision for debtor to examine and copy of the USDA's

documentation of the debt; provision for debtor to seek USDA's review

of the debt and opportunity for the individual to enter into a written

agreement satisfactory to USDA for repayment. Prior to use of the

salary offset provision, an individual will be afforded the opportunity

for a hearing concerning the amount or existence of the debt or the

offset repayment schedule. The hearing will be before an individual not

under the supervision or control of the Secretary, USDA. Unless the

individual notifies USDA otherwise within 30 days from the date of the

notice, USDA will conclude that the data provided to the individual is

correct and will take the necessary action to recoup the debt.

9. Inclusive date of the matching program: This computer matching

program is subject to review by the Office of Management and Budget

(OMB) and Congress. If no objections are raised by either and the

mandatory 30-day public notice period for comment has expired for this

Federal Register notice with no significant adverse public comments

having been received that would result in a contrary determination,

then this computer matching program becomes effective and the

respective agencies may begin the exchange of data on the later of 30

days after the date of this published notice or 40 days after notice to

OMB and Congress, at a mutually agreeable time. Exchange of data will

be repeated on an annual basis, unless OMB or the Treasury Department

requests a match twice a year. Under no circumstances will the matching

program be implemented before the respective 30- and 40-day notice

periods have elapsed, as this time period cannot be waived. By

agreement between USDA and USPS, the matching program will be in effect

and continue for 18 months with an option to renew for 12 additional

months. The matching program may be terminated by written notification

from either participating agency to the other.

Signed at Washington, DC, on February 4, 1999.

Dan Glickman,

Secretary of Agriculture.

[FR Doc. 99-3638 Filed 2-12-99; 8:45 am]

BILLING CODE 3410-KS-P