[Federal Register Volume 62, Number 38 (Wednesday, February 26, 1997)]
[Notices]
[Pages 8814-8815]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-4691]


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DEPARTMENT OF THE TREASURY

Financial Management Service


Privacy Act of 1974; System of Records

AGENCY: Financial Management Service, Treasury.

ACTION: Notice of alteration of Privacy Act system of records.

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SUMMARY: The Department of the Treasury, Financial Management Service 
(FMS), gives notice of a proposed alteration to the system of records 
entitled ``Debt Collection Operations System -Treasury/FMS .014,''which 
is subject to the Privacy Act of 1974, as amended (5 U.S.C. 552a). The 
system was last published in its entirety in the Federal Register Vol. 
60, page 56776 on November 9, 1995, and subsequently altered in the 
Federal Register Vol. 61, page 11939 on March 22, 1996.

DATES: Comments must be received no later than March 28, 1997. The 
proposed system of records will be effective April 7, 1997, unless FMS 
receives comments which would result in a contrary determination.
ADDRESS: Comments must be submitted to the Debt Management Services, 
Financial Management Service, 401 14th Street, SW, Room 151, 
Washington, DC 20227. Comments received will be available for 
inspection at the same address between the hours of 9a.m. and 4p.m. 
Monday through Friday.

FOR FURTHER INFORMATION CONTACT: Gerry Isenberg, Debt Management 
Services, (202) 874-6859.

SUPPLEMENTARY INFORMATION: The Debt Collection Improvement Act of 1996 
(DCIA), Pub. L. 104-134, enacted April 26, 1996, provides the 
Department of the Treasury (Treasury) with specific legislative 
authority and responsibility to collect and/or manage the collection of 
claims owed to the Federal Government. The DCIA also provides new 
government-wide debt collection tools such as administrative wage 
garnishment, public dissemination of delinquent debtor information, and 
authorizes the sale of debt to the private sector. The DCIA authorizes 
Treasury to collect claims, or facilitate the collection of claims, 
owed to States, Territories and Commonwealths of the United States, and 
the District of Columbia by offsetting Federal payments. Similarly, 
under the provisions of the DCIA, Treasury may enter into agreements 
with States, Territories, Commonwealths, and the District of Columbia 
to facilitate collection of debts owed to the Federal Government by

[[Page 8815]]

offset of State, Territory, Commonwealth and District of Columbia 
payments. Finally, the DCIA bars agencies from extending Federal 
financial assistance in the form of a Federal loan or loan guaranty if 
the applicant is delinquent on a Federal claim. Consistent with the 
DCIA, Executive Order 13019, signed by the President on September 28, 
1996, directs Treasury to promptly take steps to facilitate:
(1) Offset of Federal payments to collect delinquent child support 
debts being enforced by States; and
(2) Denial of Federal credit in the form of a Federal loan or loan 
guaranty to persons delinquent on their child support debts. FMS is the 
Treasury bureau responsible for the implementation of the DCIA and the 
Executive Order.
For the reasons set forth in the preamble, FMS proposes to alter system 
of records Treasury/FMS .014, ``Debt Collection Operations System--
Treasury/Financial Management Service'', as follows:
Treasury/FMS .014

System Name:
Debt Collection Operations System--Treasury/Financial Management 
Service.

System Location:
Description of change: The words ``Debt Collection Operations''are 
replaced with the words ``Debt Management Services''.

Categories of Individuals Covered by the System:
* * *
Description of change: The following is added at the end thereof:
 ``Records are also maintained on individuals who are indebted to 
States, Territories and Commonwealths of the United States, and the 
District of Columbia, including records on individuals who owe past due 
support which is being enforced by a State, Territory, Commonwealth or 
the District of Columbia.''

Categories of Records in the System:
Description of changes:
The word ``agency'' in the first sentence is replaced by ``governmental 
entity'', and the words ``client agency'' in the second sentence are 
replaced by ``governmental entity''.
* * * * *

Authority for Maintenance of the System:
Description of change:
 After ``* * * and the Deficit Reduction Act of 1984 (Pub. L. 98-369, 
as amended);'' insert ``The Debt Collection Improvement Act of 1996 
(Pub. L. 104-134,Sec. 31001); * * *''

Purpose(s):
Description of change:
The first sentence is revised to read,``The purpose of this system is 
to maintain records of individuals and entities that are: (1) Indebted 
to the Financial Management Service (FMS); (2) indebted to the various 
Federal Government departments and agencies and whose accounts are 
being serviced or collected by FMS; and (3) indebted to States, 
Territories and Commonwealths of the United States, and the District of 
Columbia (including past due child support debts being enforced by the 
States, Territories, Commonwealths or the District of Columbia).''
* * *

Routine Uses of Records Maintained in the System, Including Categories 
of Users and the Purposes of Such Uses:
* * * * *
Description of changes:
 The words ``to the U.S. Government'' and ``and'' are removed in 
routine use (7). The period ``.'' at the end of routine use (8) is 
replaced with a semicolon ``;'', and the following routine uses are 
added at the end thereof:
``(9) Any Federal, State, or local agency, or to the public for the 
purpose of collecting on a delinquent debt through the use of debt 
collection tools authorized under the Debt Collection Improvement Act 
of 1996 such as referring the debt to debt collection centers, 
administrative wage garnishment, public dissemination of debtor 
information, or selling the debt; or any other legitimate debt 
collection purpose;
``(10) Any Federal, State or local agency for the purpose of accounting 
on or reporting the status of debts for which the Federal, State or 
local agency has a financial or other legitimate need for the 
information in the performance of official duties;
``(11) Any Federal agency or its agents for the purpose of denying 
Federal financial assistance in the form of a loan or loan guaranty to 
an individual delinquent on a Federal claim, or delinquent on a child 
support claim referred to FMS for administrative offset; and
``(12) Any State, Territory or Commonwealth of the United States, or 
the District of Columbia to collect a claim owed to the Federal 
Government or to assist in the collection of a State, Commonwealth, 
Territory or District of Columbia claim pursuant to a reciprocal 
agreement between FMS and the State, Territory, Commonwealth or the 
District of Columbia.''
* * * * *

    Dated: February 18, 1997.

Alex Rodriguez,
Deputy Assistant Secretary (Administration).

[FR Doc. 97-4691 Filed 2-25-97; 8:45 am]
BILLING CODE: 4810-35-F