[Federal Register Volume 62, Number 161 (Wednesday, August 20, 1997)]
[Notices]
[Pages 44278-44279]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-22006]


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FEDERAL RESERVE SYSTEM

[Docket No. R-0981]


 Privacy Act of 1974; Notice of Amendment of System of Records

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Amendment of system of records and removal of system of 
records.

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SUMMARY: In accordance with the Privacy Act, the Board of Governors of 
the Federal Reserve System (Board) is combining the two systems of 
records entitled Payroll (BGFRS-7) and Leave (BGFRS-8), and making 
amendments to include new routine uses, as well as reflect changes due 
to installation of new computer software. We invite public comment on 
this publication.

DATES: Comment must be received on or before September 19, 1997.

ADDRESSES: Comments, which should refer to Docket No. R-0981, may be 
mailed to Mr. William W. Wiles, Secretary, Board of Governors of the 
Federal Reserve System, 20th Street and Constitution Avenue, NW., 
Washington, DC 20551. Comments addressed to Mr. Wiles also may be 
delivered to the Board's mail room between 8:45 a.m. and 5:15 p.m. and 
to the security control room outside of those hours. The mail room and 
the security control room are accessible from the courtyard entrance on 
20th Street between Constitution Avenue and C Street, NW. Comments may 
be inspected in Room MP-500 between 9 a.m. and 5 p.m.

FOR FURTHER INFORMATION CONTACT: Karen A. Appelbaum, Senior Attorney, 
(202/452-3389), or Elaine M. Boutilier, Senior Counsel, (202/452-2418), 
Legal Division. For the hearing impaired only, contact Diane Jenkins, 
Telecommunications Device for the Deaf (TDD) (202/452-3544), Board of 
Governors of the Federal Reserve System, 20th and Constitution, NW., 
Washington, DC 20551.

SUPPLEMENTARY INFORMATION:

I. Combined Systems of Records

    The Board recently installed a new software system to handle its 
payroll, leave and other related personnel data. This software 
consolidates data previously located in two separate systems of 
records--Payroll (BGFRS-7) and Leave (BGFRS-8). Accordingly, the Board 
is amending its Payroll (BGFRS-7) system of records to include leave 
records, and removing the separate Payroll (BGFRS-8) system of records. 
The amended system of records will be entitled Payroll and Leave 
(BGFRS-7).

II. Additions to Routine Uses

    Pursuant to the Pub. L. 104-193, the Personal Responsibility and 
Work Opportunity Reconciliation Act of 1996, the Board will disclose 
data from its Payroll system of records to the Office of Child Support 
Enforcement, Administration for Children and Families, Department of 
Health and Human Services for use in its Federal Parent Locator System 
(FPLS) and Federal Tax Offset System, DHHS/OCSE No. 09-90-0074. 
Information on this system was last published at 61 FR 38754, July 25, 
1996.
    FPLS is a computerized network through which States may request 
location information from Federal and State agencies to find non-
custodial parents and/or their employers for purposes of establishing 
paternity and securing support. Effective October 10, 1997, the FPLS 
will be enlarged to include the National Directory of New Hires, a 
database containing information on employees commencing employment, 
quarterly wage data on private and public sector employees, and 
information on unemployment compensation benefits. Effective October 
10, 1998, the FPLS will be expanded to include a Federal Case Registry. 
The Federal Case Registry will contain abstracts on all participants 
involved in child support enforcement cases. When the Federal Case 
Registry is instituted, its files will be matched on an ongoing basis 
against the files in the National Directory of New Hires to determine 
if an employee is a participant in a child support case anywhere in the 
country. If the FPLS identifies a person as being a participant in a 
State child support case, that State will be notified of the 
participant's current employer. State requests to the FPLS for location 
information will also continue to be processed after October 10, 1998.
    The data to be disclosed by the Board to the FPLS include: Name, 
address, social security number, and quarterly wages. In addition, 
names and social security numbers submitted by the Board to the FPLS 
will be disclosed by the Office of Child Support Enforcement to the 
Social Security Administration for verification to ensure that the 
social security number provided is correct.
    The data disclosed by the Board to the FPLS will also be disclosed 
by the Office of Child Support Enforcement to the Secretary of the 
Treasury for use in verifying claims for the advance payment of the 
earned income tax credit or to verify a claim of employment on a tax 
return.
    In addition to the routine uses being added in connection with the 
new FPLS program, the Board is adding one other routine use of the 
payroll and leave data to respond to requests from other federal 
agencies in connection with hiring or licensing decisions.

III. Compatibility of Proposed Routine Uses

    The Board is proposing these routine uses in accordance with the 
Privacy Act (5 U.S.C. 552a(b)(3)). The Privacy Act permits the 
disclosure of information about individuals without their consent for a 
routine use where the information will be used for a purpose which is 
compatible with the purpose for which the information was originally 
collected. The Office of Management and Budget has indicated that a 
``compatible'' use is a use which is necessary and proper. See OMB 
Guidelines, 51 FR 18982, 18985 (1986). Since the proposed uses of the 
data in connection with the FPLS program are required by Pub. L. 104-
193, they are clearly necessary and proper uses, and therefore 
``compatible'' uses which meet Privacy Act requirements. The other 
proposed routine use is a necessary and proper use of the data because 
it allows another federal agency to make an informed decision with 
regard to hiring or licensing an individual.

IV. Effect of the Proposed Changes on Individuals

    The Board will disclose information under the proposed routine uses 
only as required by Pub. L. 104-193 and as permitted by the Privacy 
Act.
    In accordance with 5 U.S.C. 552a(r), a report of this new system of 
records is being filed with the President of the Senate, the Speaker of 
the House of Representatives, and the Director of the Office of 
Management and Budget. This new system of records will become effective 
on October 1, 1997, without further notice, unless the Board

[[Page 44279]]

publishes a notice to the contrary in the Federal Register.
    Accordingly, the Payroll system notice originally published at 40 
FR 43862 (September 30, 1975) is amended as set forth below, and the 
Leave (BGFRS-8) system of records is removed.
BGFRS-7

SYSTEM NAME:
    Payroll and Leave.

SECURITY CLASSIFICATION:
    None.

SYSTEM LOCATION:
    Board of Governors, Federal Reserve System, 20th and Constitution, 
NW., Washington, DC 20551.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    Past and present employees and members of the Board.

CATEGORIES OF RECORDS IN THE SYSTEM:
    Payroll records, including pay statements; requests for deductions; 
tax and social security withholdings; Board retirement deductions; 
voluntary withholdings for the Board's Thrift Plan or FERS, savings 
bonds, CFC, and insurance; tax forms; W-2 forms; overtime requests; 
leave data; and worker's compensation data. Leave records, including 
compensatory time, and codes indicating reasons for taking leave, such 
as family illness, or military leave.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    Section 11 of the Federal Reserve Act (12 U.S.C. 248(i) and 
248(l)).

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES:
    The information in the records may be used for the following 
purposes.
    a. To provide information to a federal agency, in response to its 
request, in connection with the hiring or retention of an employee, the 
letting of a contract, or issuance of a license, grant, or other 
benefit by the requesting agency to the extent that the information is 
relevant and necessary to the requesting agency's decision on that 
matter.
    b. To provide information to the Office of Child Support 
Enforcement, Administration for Children and Families, Department of 
Health and Human Services Federal Parent Locator System (FPLS) and 
Federal Tax Offset System for use in locating individuals and 
identifying their income sources to establish paternity, establish and 
modify orders of support and for enforcement action.
    c. To provide information to the Office of Child Support 
Enforcement for release to the Social Security Administration for 
verifying social security numbers in connection with the operation of 
the FPLS by the Office of Child Support Enforcement.
    d. To provide information to the Office of Child Support 
Enforcement for release to the Department of the Treasury for purposes 
of administering the Earned Income Tax Credit Program (Section 32, 
Internal Revenue Code of 1986) and verifying a claim with respect to 
employment in a tax return.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
    On tape, disk, folders and document files.

RETRIEVABILITY:
    Filed by name, Social Security number, and employee number.

SAFEGUARDS:
    Access to and use of these records is limited to those persons 
whose official duties require such access. Personnel screening is 
employed to prevent unauthorized access. Electronic files are protected 
by passwords. Paper records are stored in cabinets and a safe.

RETENTION AND DISPOSAL:
    Various; minimum of one year from date of annual audit; maximum of 
indefinite.

SYSTEM MANAGER(S) AND ADDRESS:
    Director, Division of Human Resources Management, Board of 
Governors of the Federal Reserve System, 20th and Constitution, NW., 
Washington, DC 20551.

NOTIFICATION PROCEDURE:
    Inquiries should be sent to the Secretary of the Board, Board of 
Governors of the Federal Reserve System, 20th Street and Constitution 
Avenue, NW., Washington, DC 20551.

RECORD ACCESS PROCEDURES:
    Same as ``Notification procedure'' above.

CONTESTING RECORD PROCEDURES:
    Same as ``Notification procedure'' above.

RECORD SOURCE CATEGORIES:
    Internal personnel forms, federal, state, and local tax forms, 
employee authorizations and directive forms, insurance forms, leave and 
overtime reports, federal and state garnishment forms.

SYSTEMS EXEMPTED FROM CERTAIN PROVISIONS OF THE ACT:
    None.
    By order of the Board of Governors of the Federal Reserve System, 
acting through the Secretary of the Board under delegated authority, 
August 14, 1997.
William W. Wiles,
Secretary of the Board.
[FR Doc. 97-22006 Filed 8-19-97; 8:45 am]
BILLING CODE 6210-01-P