[Federal Register Volume 75, Number 232 (Friday, December 3, 2010)]
[Notices]
[Pages 75546-75548]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-30297]
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DEPARTMENT OF THE TREASURY
Financial Management Service; Privacy Act of 1974, as Amended;
System of Records
AGENCY: Financial Management Service, Treasury.
ACTION: Notice of proposed new system of records.
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SUMMARY: In accordance with the Privacy Act of 1974, as amended, the
Financial Management Service gives notice of a proposed new Privacy Act
system of records entitled ``Treasury/FMS .008-Mailing List Records.''
DATES: Comments must be received no later than January 3, 2011. The
proposed new system of records will become effective January 3, 2011
unless comments are received which would result in a contrary
determination.
ADDRESSES: You should send your comments to Peter Genova, Deputy Chief
Information Officer, Financial Management Service, 401 14th Street,
SW., Washington, DC 20227. Comments received will be available for
inspection at the same address between the hours of 9 a.m. and 4 p.m.
Monday through Friday. You may send your comments by electronic mail to
[email protected] or http://regulations.gov. All comments,
including attachments and other supporting materials, received are
subject to public disclosure. You should submit only information that
you wish to make available publicly.
FOR FURTHER INFORMATION CONTACT: Peter Genova, Deputy Chief Information
Officer, (202) 874-1736.
SUPPLEMENTARY INFORMATION: Pursuant to the Privacy Act of 1974, as
amended, 5 U.S.C. 552a, the Financial Management Service (FMS) is
proposing to establish a new system of records entitled ``Mailing List
Records--Treasury/FMS .008.'' FMS proposes to obtain and use mailing
list records from commercial database providers for the purpose of
mailing information to potential Federal payment recipients about the
benefits of electronic payments and types of accounts available for the
receipt of Federal electronic payments. Commercial database providers
obtain information from publicly available records or through means
that we understand to be compliant with applicable privacy laws.
FMS, a bureau within the U.S. Department of the Treasury
(Treasury), is responsible for disbursing public money by paper check
and electronic funds transfer (EFT). Payments made by electronic funds
transfer (EFT), rather than by paper check, benefits both recipients
and the Government. Direct deposit and other EFT payments are credited
to recipients' accounts on the day payment is due, so the funds
generally are available sooner than with check payments. Individuals
receiving Federal payments electronically rarely have any delays or
problems with their payments. In contrast, based on payment claims
filed with FMS, nine out of ten problems with FMS-disbursed payments
are related to paper checks even though checks constitute only 18
percent of all FMS-disbursed payments made by the Government.
The potential benefits of EFT payments for the Government and
taxpayers are significant. For example, in fiscal year 2010, FMS mailed
more than 130 million Federal benefit checks to approximately 11
million benefit recipients, resulting in extra costs to taxpayers of
more than $117 million that would not have been incurred had those
payments been made by EFT. In the same fiscal year, only 63% of
taxpayers received their tax refund payment electronically, with
approximately 44 million tax refund payments being delivered by paper
check.
Over the past three decades, FMS has developed numerous programs to
enable agencies to make EFT payments. Treasury's Go Direct[supreg]
educational campaign, sponsored with the Federal Reserve Banks,
highlights the advantages to a Federal benefit recipient who opens an
account at a financial institution, or a Direct Express[supreg] Debit
MasterCard[supreg] card account, and elects to receive his or her
benefits via direct deposit to the account. In addition to media and
other public outreach, Treasury mails check stuffers and letters
encouraging check recipients to receive Federal payments
electronically.
Typically, FMS mails information to check recipients based on name
and address information contained in its payment records (see
``Treasury/FMS .002-Payment Issue Records for Regular Recurring Benefit
Payments'' and ``Treasury/FMS .016-Payment Records for Other Than
Regular Recurring Benefit Payments''). In some cases, however, FMS may
decide to use commercial database providers for names and mailing
addresses of individuals who meet certain criteria
[[Page 75547]]
when the information is not otherwise available from FMS's records. The
data may be used for the purpose of mailing information to potential
Federal payment recipients about the benefits of electronic payments
and accounts available for the receipt of Federal electronic payments.
FMS continues to implement various programs to increase the number
of payments made by EFT. Among other things, FMS intends to increase
the use of direct deposit throughout the United States and to expand
the ways in which Federal payees may receive their payments
electronically. As FMS expands the ways in which payees may receive
their payments electronically, FMS needs to inform the public about
available options. The mailing of individual letters using mailing
lists obtained from commercial database providers offers an opportunity
to directly reach potential check recipients, rather than only those
individuals who have already received FMS-disbursed payments and whose
information already exists in FMS's records. In some cases, FMS may use
mailing lists obtained from commercial database providers to further
identify individuals who could benefit from the program and services.
The records covered by the proposed system are necessary to allow FMS
to offer electronic payment options to a wide variety of potential
Federal payment recipients. The records may be received directly by
FMS, its fiscal or financial agents, and/or contractors. The records
include names and mailing addresses only as necessary to deliver
information to individuals about the benefits of electronic payments
and account options for receiving payments electronically, and to
assess the effectiveness of these outreach methods. Without such
information, FMS would have significant difficulty in reaching
individuals who have never received a Federal payment, but may in the
future, or those who do not receive regular, recurring payments.
In addition to the purposes cited above, the information contained
in the covered records will be used for collateral purposes related to
the offering of account options to individuals, such as collection of
aggregate statistical information on the success and benefits of direct
mail and the use of commercial database providers.
FMS recognizes the sensitive nature of the confidential information
it obtains when collecting individuals' names and addresses, and has
many safeguards in place to protect the information from theft or
inadvertent disclosure. When appropriate, FMS's arrangements with its
fiscal and financial agents and contractors include requirements that
preclude them from retaining, disclosing, and using the information for
any purpose other than mailing of information about the benefit of
electronic payments and account options and assessing the effectiveness
of the outreach. In addition to various procedural and physical
safeguards, access to computerized records is limited, through the use
of access codes, encryption techniques and/or other internal
mechanisms. Access to records is granted only as authorized by a
business line manager at FMS or FMS's fiscal or financial agent to
those whose official duties require access solely for the purposes
outlined in the proposed system.
The new system of records report, as required by 5 U.S.C. 552a(r)
of the Privacy Act, has been submitted to the Committee on Government
Reform of the House of Representatives, the Committee on Governmental
Affairs of the Senate, and the Office of Management and Budget,
pursuant to Appendix I to OMB Circular A-130, ``Federal Agency
Responsibilities for Maintaining Records About Individuals,'' dated
November 30, 2000.
For the reasons set forth in the preamble, FMS proposes a new
system of records Treasury/FMS .008-Mailing List Records, which is
published in its entirety below.
Dated: November 26, 2010.
Melissa Hartman,
Deputy Assistant Secretary for Privacy, Transparency, and Records.
Treasury/FMS .008
System Name:
Mailing List Records--Treasury/Financial Management Service.
System Location:
Records are located at the offices of Financial Management Service,
401 14th Street, SW., Washington, DC 20227, or its fiscal or financial
agents at various locations. The addresses of the fiscal or financial
agents may be obtained by contacting the System Manager below.
Categories of Individuals Covered by the System:
Individuals who are eligible, or may in the future be eligible, to
receive Federal payments from the Federal Government.
Categories of Records in the System:
The records may contain identifying information, such as an
individual's name(s) and address.
Authority for Maintenance of the System:
5 U.S.C. 301; 31 U.S.C. 321; 31 U.S.C. chapter 33; 31 U.S.C. 3332;
Title XII of the Dodd-Frank Wall Street Reform and Consumer Protection
Act (Pub. L. 111-203, Jul. 21, 2010).
Purpose(s):
The purpose of this system is to maintain limited records (names
and addresses) about individuals who are eligible, or may become
eligible, to receive Federal payments. The records are used to make
individuals aware of the benefits of electronic payments and the
account options for receiving payments electronically. Without the
information, FMS, its fiscal or financial agents and contractors, would
not be able to directly notify prospective payment recipients about the
benefits of electronic payments and account options for the receipt of
Federal payments electronically.
The information will also be used for collateral purposes related
to providing information about account options for receiving electronic
Federal payments, such as the collection of aggregate statistical
information on the success and benefits of direct mail and the use of
commercial database providers.
Routine Uses of Records Maintained in the System, Including Categories
of Users and the Purposes of Such Uses:
These records may be used to disclose information to:
(1) The U.S. Department of Justice (``DOJ'') for its use in
providing legal advice to the Department or in representing the
Department in a proceeding before a court, adjudicative body, or other
administrative body before which the Department is authorized to
appear, where the use of such information by the DOJ is deemed by the
Department to be relevant and necessary to the litigation, and such
proceeding names as a party or interests: (a) The Department or any
component thereof; (b) Any employee of the Department in his or her
official capacity; (c) Any employee of the Department in his or her
individual capacity where DOJ has agreed to represent the employee; or
(d) The United States, where the Department determines that litigation
is likely to affect the Department or any of its components.
(2) A congressional office in response to an inquiry made at the
request of the individual to whom the record pertains.
(3) Fiscal agents, financial agents, and contractors for the
purpose of mailing information to individuals about the benefits of
electronic Federal payments and options for receipt of federal
[[Page 75548]]
payments electronically, including, but not limited to, processing
direct mail or performing other marketing functions; investigating and
rectifying possible erroneous information; and creating and reviewing
statistics to improve the quality of services provided.
(4) Federal agencies, their agents and contractors for the purposes
of implementing and studying options for encouraging current and
prospective Federal payment recipients to receive their Federal
payments electronically.
(5) Representatives of the National Archives and Records
Administration (NARA) who are conducting records management inspections
under authority of 44 U.S.C. 2904 and 2906.
(6) Appropriate agencies, entities, and persons when (a) FMS
suspects or has confirmed that the security or confidentiality of
information in the system of records has been compromised; (b) FMS has
determined that as a result of the suspected or confirmed compromise
there is a risk of harm to economic or property interests, identity
theft or fraud, or harm to the security or integrity of this system or
other systems or programs (whether maintained by FMS or another agency
or entity) that rely upon the compromised information; and (c) the
disclosure made to such agencies, entities, and persons is reasonably
necessary to assist in connection with FMS's efforts to respond to the
suspected or confirmed compromise and prevent, minimize, or remedy such
harm.
Policies and Practices for Storing, Retrieving, Accessing, Retaining,
and Disposing of Records in the System:
Storage:
Records are maintained in paper and electronic media.
Retrievability:
Records are retrieved by name, address, or other alpha/numeric
identifying information.
Safeguards:
All official access to the system of records is on a need-to-know
basis only, as authorized by a business line manager at FMS or FMS's
fiscal or financial agent. Procedural and physical safeguards, such as
personal accountability, audit logs, and specialized communications
security, are utilized. Each user of computer systems containing
records has individual passwords (as opposed to group passwords) for
which he or she is responsible. Thus, a security manager can identify
access to the records by user. Access to computerized records is
limited, through use of access codes, encryption techniques, and/or
other internal mechanisms, to those whose official duties require
access. Storage facilities are secured by various means such as
security guards, badge access, and locked doors with key entry.
Retention and Disposal:
Electronic and paper records for mail operations based on the use
of the mailing list records will be retained in accordance with FMS's
record retention requirements or as otherwise required by statute or
court order. FMS disposes, or arranges for the disposal of records in
electronic media using industry-accepted techniques, and in accordance
with applicable FMS policies regarding the retention and disposal of
fiscal or financial agency records. Paper records are destroyed in
accordance with fiscal or financial agency archive and disposal
procedures and applicable FMS policies regarding the retention and
disposal of fiscal agency records.
System Manager(s) and Address:
Agency Enterprise Solutions Division, Payment Management, Financial
Management Service, 401 14th Street, SW., Washington, DC 20227.
Notification Procedure:
Inquiries under the Privacy Act of 1974, as amended, shall be
addressed to the Disclosure Officer, Financial Management Service, 401
14th Street, SW., Washington, DC 20227. All individuals making
inquiries should provide with their request as much descriptive matter
as is possible to identify the particular record desired. The system
manager will advise as to whether FMS maintains the records requested
by the individual.
Record Access Procedures:
Individuals requesting information under the Privacy Act of 1974,
as amended, concerning procedures for gaining access to or contesting
records should write to the Disclosure Officer. All individuals are
urged to examine the rules of the U.S. Department of the Treasury
published in 31 CFR part 1, subpart C, and appendix G, concerning
requirements of this Department with respect to the Privacy Act of
1974, as amended.
Contesting Record Procedures:
See ``Record access procedures'' above.
Record Source Categories:
Information in this system is provided by commercial database
providers based on publicly available information.
Exemptions Claimed for the System:
None.
[FR Doc. 2010-30297 Filed 12-2-10; 8:45 am]
BILLING CODE 4810-35-P