[Federal Register Volume 61, Number 232 (Monday, December 2, 1996)]
[Notices]
[Pages 63815-63817]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-30088]


 ========================================================================
 Notices
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains documents other than rules 
 or proposed rules that are applicable to the public. Notices of hearings 
 and investigations, committee meetings, agency decisions and rulings, 
 delegations of authority, filing of petitions and applications and agency 
 statements of organization and functions are examples of documents 
 appearing in this section.
 
 ========================================================================
 

  Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 / 
Notices  

[[Page 63815]]



DEPARTMENT OF AGRICULTURE

Office of the Secretary


Privacy Act; System of Records

AGENCY: Office of the Secretary, USDA.

ACTION: Notice of New Privacy Act System of Records--Food Stamp Program 
Retailer Information.

-----------------------------------------------------------------------

SUMMARY: The United States Department of Agriculture (USDA), Food and 
Consumer Service (FCS), is proposing to establish a new system of 
records in accordance with the Privacy Act of 1974. This system of 
records, entitled Food Stamp Program Retailer Information, USDA/FCS-9, 
is necessary in order for FCS to administer the enforcement provisions 
of section 9 of the Food Stamp Act of 1977, as amended. Information 
contained in this system of records will be used to determine whether 
retail or wholesale store owners and officers, and/or owners and 
officers associated with other entities authorized to redeem food 
stamps, such as private restaurants that qualify to participate in the 
special restaurant program to serve elderly, homeless and disabled Food 
Stamp Program (FSP) recipients, qualify to participate or continue to 
participate in the FSP, to monitor compliance with program regulations, 
and for program management.

EFFECTIVE DATE: This notice will be effective, without further notice, 
January 13, 1997, unless modified by a subsequent notice to incorporate 
comments received from the public. Comments must be received by the 
contact person listed below on or before January 21, 1997, to be 
assured of consideration.

ADDRESSES: Comments should be addressed to: Thomas O'Connor, Director, 
Benefit Redemption Division, Food and Consumer Service, USDA, Room 706, 
3101 Park Center Drive, Alexandria, Virginia 22302. Telephone: (703) 
305-2419.

FOR FURTHER INFORMATION CONTACT: Joseph M. Scordato, FCS Privacy Act 
Officer, Room 308, 3101 Park Center Drive, Alexandria, Virginia 22302. 
Telephone: (703) 305-2244.

SUPPLEMENTARY INFORMATION: In accordance with section 9 of the Food 
Stamp Act of 1977, as amended, (7 U.S.C. 2018), and USDA FSP 
regulations (7 CFR part 278), each retail or wholesale food store or 
other eligible entity that desires to participate or continue to 
participate in the FSP must file such application for authorization or 
reauthorization as prescribed by FCS. The information provided in the 
application for authorization or reauthorization is used to determine 
whether a retail or wholesale store or other entity, such as private 
restaurants that qualify to participate in the special restaurant 
program to serve elderly, homeless and disabled FSP recipients, 
qualifies or continues to qualify to participate in the FSP, to monitor 
compliance with program regulations, and for program management.
    Section 1735 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (Pub. L. 101-624, 104 Stat. 3359) amended section 
205(c)(2)(C)(iii) of the Social Security Act (42 U.S.C. 
405(c)(2)(C)(iii)) and added section 6109(f) to the Internal Revenue 
Code of 1986 (26 U.S.C. 6109(f)) to authorize FCS to request each 
applicant retail or wholesale store or other entity to furnish FCS the 
Social Security Number (SSN) of each individual who is an officer of a 
corporate applicant and, in the case of a privately owned applicant, 
the SSN of each owner, as well as the employer identification numbers 
(EINs) assigned to the applicant by the Internal Revenue Service. 
Public Law 101-624 also provided that no officer or employee of USDA 
may have access to the SSN or EIN information provided in the 
applications for any purpose other than the establishment and 
maintenance of a list of such individuals for use in determining those 
applicants who have been previously sanctioned or convicted under 
sections 12 or 15 of the Food Stamp Act (7 U.S.C. 2021 or 2024).
    When FCS determines that a store or other concern qualifies to 
participate in the FSP, the information provided by the applicant on 
the application including the personal information (i.e., name, home 
address, SSN, and date of birth) pertaining to the owners or officers, 
is entered into the FCS' computer database (i.e., Store Tracking and 
Redemption Subsystem (STARS)). STARS is used primarily for tracking the 
authorization and food stamp redemption activity of owners and officers 
of concerns currently participating in the Food Stamp Program, as well 
as those owners and officers who have previously participated in the 
program.
    Recently, FCS was given broader authority with respect to the use 
and disclosure of the personal identifying information provided by 
applicant owners and officers on their application for authorization or 
reauthorization. Section 203 of the Food Stamp Program Improvements Act 
of 1994 (Pub. L. 103-225, 108 Stat. 106) amended section 9(c) of the 
Food Stamp Act to expand the use and disclosure of information obtained 
from applicant and participating retail or wholesale food concerns and 
other entities, such as food stamp redemption data, as well as 
information about ownership (excluding SSNs and EINs) and sales data 
included on the initial application, in addition to information 
required to be submitted for purposes of determining whether a retailer 
or wholesaler or other concern continues to qualify. USDA/FCS may 
release this information to other Federal agencies or to State 
government agencies, for the purpose of administering and enforcing the 
Food Stamp Act as well as any other Federal or State laws.
    In addition, section 316 of the Social Security Independence and 
Program Improvements Act of 1994 (Pub. L. 103-296, 108 Stat. 1464) 
expanded the authority of FCS to share SSNs and EINs of food stamp 
retailers or wholesalers with other Federal agencies to the extent that 
the Secretary of Agriculture determines sharing would assist another 
Federal agency, which otherwise has access to SSNs and EINs in 
accordance with applicable Federal law, in verifying and matching 
information. The recipient agency may use the information so supplied 
only for the purpose of enforcing Federal laws. The SSNs and EINs of 
owners and officers will not be shared with State entities.
    A ``Report on New System,'' required by 5 U.S.C. 552a(r), as 
implemented by OMB Circular A-130, was sent to the

[[Page 63816]]

Chairman, Senate Committee on Governmental Affairs, the Chairman, House 
Committee on Government Operations, and to the Administrator, Office of 
Information and Regulatory Affairs, of the Office of Management and 
Budget on November 18, 1996.

    Signed at Washington, DC, on November 18, 1996.
Dan Glickman,
Secretary of Agriculture.

SYSTEM NAME: USDA/FC5-9
    Food Stamp Program Retailer Information.

SECURITY CLASSIFICATION:
    None.

SYSTEM LOCATION:
    The paper records (i.e., the applications for authorization and 
reauthorization) which contain the personal identifying information on 
retail and wholesale store owners and officers, and/or owners and 
officers associated with other entities, are located in FCS field 
offices throughout the United States. The location of each FCS field 
office may be found in the local phone books. The host computer 
database which contains the STARS database, is located at the 
Minneapolis Computer Support Center, PO Box 135, Minneapolis, Minnesota 
55440.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    The system consists of personal information from owners and 
officers of stores and other entities currently participating in the 
Food Stamp Program, as well as those owners and officers who have 
previously participated in the program. The individual paper records 
(i.e., applications for authorization) located in FCS field offices 
also contain personal information from owners and officers who applied 
for authorization to participate in the FSP but were denied 
authorization.

CATEGORIES OF RECORDS IN THE SYSTEM:
    The applications for authorization and reauthorization are in the 
STARS database and located in the files of FCS field offices. The 
applications contain the following personal information regarding 
owners and officers: Name, home address, social security number, and 
date of birth. Financial data (i.e., food sales, gross sales, food 
stamp redemption data) relative to each entity currently authorized or 
previously authorized is in the STARS database. While this information 
is not covered by the Privacy Act when associated with business 
information, it is subject to the Privacy Act when associated with the 
personal information of owners and officers of such entities.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    Section 9 of the Food Stamp Act of 1977, as amended, (7 U.S.C. 
2018); section 1735 of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (Pub. L. 101-624, 104 Stat. 3359); section 205(c)(2)(C) of 
the Social Security Act (42 U.S.C. 405(c)(2)(C)); and section 6109(f) 
of the Internal Revenue Code of 1986 (26 U.S.C. 6109(f)).

PURPOSE:
    This information will be shared with other Federal and State 
entities to assist in the administration and enforcement of the Food 
Stamp Act, as well as other Federal and State laws. STARS is used 
primarily for tracking the authorization and food stamp redemption 
activity of owners and officers of entities currently participating in 
the Food Stamp Program, as well as those owners and officers who have 
previously participated in the Food Stamp Program.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES:

LIMITATIONS ON DISCLOSURE UNDER THE FOLLOWING ROUTINE USES (1) THROUGH 
(10):
    Information obtained from applicants under the authority of 7 
U.S.C. 2018(c) may be used or disclosed only as specified in 7 U.S.C. 
2018(c).
    Applicant social security numbers and employer identification 
numbers may be disclosed only to other Federal agencies authorized to 
have access to social security numbers and employer identification 
numbers, and only when the Secretary of Agriculture determines that 
disclosure would assist in verifying and matching such information 
against information maintained by such other agency. 42 U.S.C. 
405(c)(2)(C)(iii); 26 U.S.C. 6109(f).
    (1) USDA/FCS may disclose information from this system of records 
to the Department of Justice (DOJ), a court or other tribunal, or 
another party before such tribunal, when USDA, any component thereof, 
or any employee of the USDA in his or her official capacity, any USDA 
employee in his or her individual capacity where DOJ (or USDA where it 
is authorized to do so) has agreed to represent the employee, or the 
United States where USDA determines that the litigation is likely to 
affect directly the operations of USDA or any of its components, is a 
party to the litigation or has an interest in such litigation, and USDA 
determines that the use of such records by DOJ, the court or other 
tribunal, or the other party before such tribunal is relevant and 
necessary to the litigation; provided, however, that in each case, USDA 
determines that such disclosure is compatible with the purpose for 
which the records were collected.
    (2) In the event that material in this system indicates a violation 
of the Food Stamp Act or any other Federal or State law whether civil 
or criminal or regulatory in nature, and whether arising by general 
statute, or by regulation, rule or order issued pursuant thereto, USDA/
FCS may disclose the relevant records to the appropriate agency, 
whether Federal or State, charged with the responsibility of 
investigating or prosecuting such violation or charged with enforcing 
or implementing the statute, or rule, regulation or order issued 
pursuant thereto.
    (3) USDA/FCS may disclose records from this system of records to a 
congressional office from the record of an individual provided that 
individual gave the congressional office permission to inquire on his 
or her behalf.
    (4) USDA/FCS may disclose information from this system of records 
to the Internal Revenue Service for the purpose of offsetting a 
monetary penalty for violations committed under the Food Stamp Program 
against a tax refund that may be due to the debtor.
    (5) USDA/FCS may disclose information from this system of records 
to other Federal and State agencies to respond to specific requests 
from such Federal and State agencies for the purpose of administering 
the Food Stamp Act as well as other Federal and State laws.
    (6) USDA/FCS may disclose information from this system of records 
to other Federal and State agencies to verify information reported by 
applicants and participating firms, and to assist in the administration 
and enforcement of the Food Stamp Act as well as other Federal and 
State laws.
    (7) USDA/FCS may disclose information from this system of records 
to other Federal and State agencies for the purpose of conducting 
computer matching programs.
    (8) USDA/FCS may disclose information from this system of records 
to private entities having contractual agreements with USDA for 
designing, developing, and operating the system, and for verification 
and computer matching purposes.
    (9) USDA/FCS may disclose an owner's home address to a financial 
institution to verify information contained on a redemption certificate

[[Page 63817]]

(Form FCS-278B, formerly Form FNS-278B) submitted by a participating 
retailer. Authorized entities use these certificates when depositing 
food coupons at financial institutions. On occasion, particularly with 
small businesses, the owner's business address may also be the owner's 
home address.
    (10) USDA/FCS will disclose information from this system of records 
to the Internal Revenue Service, for the purpose of reporting 
delinquent retailer and wholesaler monetary penalties of $600 or more 
for violations committed under the Food Stamp Program. USDA/FCS will 
report each delinquent debt to the Internal Revenue Service on Form 
1099-C (Cancellation of Debt). USDA/FCS will report these debts to the 
Internal Revenue Service under the authority of the Income Tax 
Regulations (26 CFR parts 1 and 602) under section 6050P of the 
Internal Revenue Code.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
    File folders, magnetic tapes, and computer disks.

RETRIEVABILITY:
    In STARS, the personal identifying information is retrievable by 
owner's name and by SSN.

SAFEGUARDS:
    1. Authorized Users: When designing, developing and/or operating a 
system of records on individuals, contractors are required to comply 
with all provisions of the Privacy Act. Contractors are required to 
maintain and protect the personal data and cannot release or share data 
without consulting with FCS. Access to records maintained within FCS is 
limited to those staff officials responsible for the subject system of 
records. Otherwise, access is limited to persons authorized and needing 
to use the records, including project directors, contract officers, 
programmers, analysts, statisticians, statistical clerks and key punch 
operators on the staff of the contractors or in the FCS.
    2. Physical Safeguards: Paper records are stored in locked safes, 
locked files, and locked offices when not in use. Computer terminals 
used to process personal identifiable data are located in secured areas 
and are accessible only to authorized users. Back up records which are 
stored off-site shall be used and stored under the same secure 
conditions.
    3. Procedural Safeguards: In order to access STARS, each authorized 
individual is given a personal access ID and password. The individual's 
password must be changed at least every 45 days or whenever the 
individual feels it might have been compromised.
    Access to personal information contained in the STARS database and 
to the paper record files is restricted to those individuals who have 
been authorized by FCS and who have a need to know such information in 
the performance of their official duties in administering the Food 
Stamp Act and other Federal and State laws. SSNs cannot be viewed on 
screen in STARS by those individuals who are not specifically 
authorized to view them.
    FCS personnel, project officers, and contract officers oversee 
compliance with these requirements. When appropriate, FCS personnel 
will review the site facilities to ensure that records have been 
maintained in accordance with the terms of this notice.

RETENTION AND DISPOSAL:
    In STARS, the personal identifying information is maintained 
indefinitely. The applications for authorization and reauthorization 
are kept in the FCS field offices for three years and then destroyed 
pursuant to the applicable document retention and disposal schedule.

SYSTEM MANAGER AND ADDRESS:
    Thomas O'Connor, Director, Benefit Redemption Division, Food and 
Consumer Service, United States Department of Agriculture, Room 706, 
3101 Park Center Drive, Alexandria, Virginia 22302.

NOTIFICATION PROCEDURE:
    Any individual may request information regarding this system of 
records from the System Manager. The request must be in writing.

RECORD ACCESS PROCEDURES:
    An individual who wishes to request access to records in the system 
which pertains to him or her may submit a written request to the System 
Manager. The envelope and the letter should be marked, ``Privacy Act 
Request''. An individual may be required to reference the record by 
furnishing name, address, Social Security Number, and/or other 
identifiers needed by FCS.

CONTESTING RECORD PROCEDURES:
    Individuals desiring to contest or amend information maintained in 
the system should direct their request to the System Manager. The 
request should include, as appropriate, the reasons for contesting it, 
and the proposed amendment to the information with supporting 
information to show how the record is inaccurate, incomplete, untimely, 
or irrelevant.

RECORD SOURCE CATEGORIES:
    Information in this system comes from the authorization and 
reauthorization applications of stores and other entities which are 
currently participating in the Food Stamp Program, as well as 
information on file for those entities which have previously 
participated in the program. Personal information in this system of 
records is also obtained from the owners and officers of such entities 
as reported on the authorization and reauthorization applications.
    The STARS database also keeps a food stamp redemption history on 
such entities. The database maintains the dollar amount of food stamp 
benefits accepted by each entity currently authorized or previously 
authorized.

EXEMPTIONS CLAIMED FOR THE SYSTEM:
    None.

[FR Doc. 96-30088 Filed 11-29-96; 8:45 am]
BILLING CODE 3410-30-P