[Federal Register Volume 62, Number 183 (Monday, September 22, 1997)]
[Notices]
[Pages 49499-49500]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-25067]


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COMMODITY FUTURES TRADING COMMISSION


Privacy Act of 1974: System of Records

AGENCY: Commodity Futures Trading Commission.

ACTION: Amendment of system of records to include new routine uses.

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SUMMARY: In accordance with the Privacy Act (5 U.S.C. 552a(e)(11)), the 
Commodity Futures Trading Commission is issuing notice of its intent to 
amend the system of records entitled CFTC-5, Employee Personnel/Payroll 
Records, to include new routine uses required by the Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996.

DATES: Comments must be received on or before October 22, 1997.

ADDRESSES: Comments should be addressed to Jean A. Webb, Secretary, 
Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st 
Street NW., Washington, DC 20581. Comments may also be sent via the 
Internet to [email protected].

FOR FURTHER INFORMATION CONTACT: Stacy Dean Yochum, Office of the 
Executive Director, (202) 418-5157, or Glynn L. Mays, Office of General 
Counsel, (202) 418-5120, Commodity Futures Trading Commission, Three 
Lafayette Centre, 1155 21st Street NW., Washington, DC 20581.

SUPPLEMENTARY INFORMATION:

I. Additions to Routine Use

    Pursuant to Pub. L. 104-193, the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996 (``the Act''), the Commodity 
Futures Trading Commission will disclose data from CFTC-5, Employee 
Personnel/Payroll 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 the 
FPLS and Federal Tax Offset System was last published in the Federal 
Register on July 25, 1996 (61 FR 38754).
    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 the purpose of 
establishing paternity and securing support. The Act amended 42 U.S.C. 
653(n) to require quarterly wage reporting to the FPLS by federal 
employers of the name, social security number, and quarterly wages of 
each employee, effective October 1, 1997. The Act also added a new 
section, 42 U.S.C. 653a, which requires federal employers to provide 
information to the National Directory of New Hires established by 42 
U.S.C. 653. Federal employers must report the name, address, and social 
security number of a new employee to the National Directory of New 
Hires effective October 1, 1997. Pursuant to the amendments to 42 
U.S.C. 653 made by the Act, the enlarged FPLS will 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, all 
effective October 1, 1997.
    Also in accordance with the Act, effective October 1, 1998, the 
FPLS will

[[Page 49500]]

be expanded to include a Federal Case Registry. The Federal Case 
Registry will contain abstracts on all participants in child support 
enforcement cases. When the Federal Case Registry is implemented, its 
files will be matched on an ongoing basis against 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 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 1, 1998.
    The data to be disclosed by the Commodity Futures Trading 
Commission to the FPLS include: name, address, social security number, 
and quarterly wages. In addition, names and social security numbers 
submitted by the Commodity Futures Trading Commission 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 Commodity Futures Trading Commission 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.

II. Compatibility of Proposed Routine Use

    The Commodity Futures Trading Commission is amending 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 are required by Pub. L. 104-193, 
they are clearly necessary and proper uses, and, therefore, compatible 
uses under the Privacy Act.

III. Effect of Proposed Changes on Individuals

    The CFTC will disclose information under the propose routine uses 
only as required by Pub. L. 104-193 and as permitted by the Privacy 
Act. Disclosure will be handled through the agency's personnel/payroll 
system provider, the National Finance Center of the Department of 
Agriculture.
    Accordingly, CFTC-5, Employee Personnel and Payroll Records, most 
recently published in the Federal Register on Thursday, August 21, 1997 
(62 FR 44442, 44446) is amended as set forth below.
* * * * *

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES:
    a. In response to legitimate requests, this information may be 
provided to other federal agencies for the purpose of hiring or 
retaining employees, and may be provided to other prospective 
employers, to the extent that the information is relevant to the 
prospective employer's decision in the matter.
    b. The information may be provided to the Justice Department, the 
Office of Personnel Management or other federal agencies, or used by 
the Commission in connection with any investigation or administrative 
or legal proceeding involving any violation of federal law or 
regulation thereunder.
    c. Certain information will be provided, as required by law, 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 to enable state 
jurisdictions to locate individuals and identify their income sources 
to establish paternity, establish and modify orders of support, and for 
enforcement action.
    d. Certain information will be provided, as required by law, 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.
    e. Certain information will be provided, as required by law, to the 
Office of Child Support Enforcement for release to the Department of 
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.
* * * * *
    Issued in Washington, DC, on September 16, 1997, by the 
Commission.
Catherine D. Dixon,
Assistant Secretary of the Commission.
[FR Doc. 97-25067 Filed 9-19-97; 8:45 am]
BILLING CODE 6351-01-P