[Federal Register Volume 62, Number 229 (Friday, November 28, 1997)]
[Notices]
[Pages 63341-63342]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-31257]



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FEDERAL MARITIME COMMISSION


Privacy Act of 1974 and Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996

AGENCY: Federal Maritime 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 
Federal Maritime Commission is issuing notice of our intent to amend 
the system of payroll records (FMC-21) 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 December 29, 1997. 
Effective Date: The proposed amendment will become effective January 7, 
1998 unless comments dictate otherwise.

ADDRESSES: Comments may be addressed to Joseph C. Polking, Secretary, 
Federal Maritime Commission, 800 North Capitol Street, N.W., 
Washington, DC 20573-0001. All comments received will be available for 
public inspection at that address.

FOR FURTHER INFORMATION CONTACT: Joseph C. Polking, Secretary, Federal 
Maritime Commission (202) 523-5725.

SUPPLEMENTARY INFORMATION:

I. Discussion of Proposed Changes To Routine Use of System of Records

    Pursuant to Pub.L. 104-193, the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996 (``the Act''), the Federal 
Maritime Commission (``FMC'') will disclose data from its Payroll 
Records 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 Service (FPLS) and 
Federal Tax Offset System, DHHS/OCSE No. 09-90-0074. A description of 
the Federal Parent Locator Service may be found at 62 FR 51663 (October 
2, 1997).
    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 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 Office of Thrift Supervision 
(``OTS''), U.S. Department of Treasury, on behalf of the FMC to the 
FPLS include wages earned and income taxes to be paid both state and 
federal, and the following data elements relating to the employee--
employee's name and social security number, date and state of hire, 
date of birth, address; and the following data elements relating to the 
Commission: Federal EIN (employer identification number), employer name 
and address.
    The data to be disclosed by OTS on behalf of the FMC 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 OTS on behalf of the FMC 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 Uses

    The Federal Maritime 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 had 
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 requirements.

III. Effect of Proposed Changes on Individuals

    The FMC will disclose information under the proposed 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 Office of Thrift Supervision.
    Accordingly, FMC-21, Payroll Records, most recently amended in the 
Federal Register on February 2, 1994 (59 FR 6643), is further amended 
to revise the routine uses description to read as follows.
* * * * *

Routine Uses of Records Maintained in the System, Including Categories 
of Users and the Purposes of Such Uses

    In the event that a system of records maintained by this agency to 
carry out its functions indicates a violation or potential violation of 
law, whether civil, criminal or regulatory in nature, and whether 
arising by general statute or particular program state, or by 
regulation, rule or order issued pursuant thereto, the relevant records 
in the system of records may be referred, as a ``routine use,'' to the 
appropriate agency, whether Federal, State, local or foreign, 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.
    A record from this system of records may be disclosed as a 
``routine use'':
    1. To a Federal, State or local agency maintaining civil, criminal 
or other relevant enforcement information or other pertinent 
information, such as current licenses, if necessary, to obtain 
information relevant to an agency decision concerning the hiring or 
retention of any employee, the issuance of a security clearance, the 
letting of a contract or the issuance of a license grant or other 
benefit.

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    2. To a Federal agency, in response to its request, in connection 
with the hiring or retention of an employee, the issuance of a security 
clearance, the reporting of an investigation of an employee, the 
letting of a contract, or the issuance of 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 in the 
matter.
    3. To the Office of Child Support Enforcement, Administration for 
Children and Families, Department of Health and Human Services Federal 
Parent Locator Service (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.
    4. 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.
    5. 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.
    6. To an authorized appeal grievance examiner, formal complaints 
examiner, equal employment opportunity investigator, arbitrator or 
other duly authorized official engaged in investigation or settlement 
of a grievance, complaint, or appeal filed by an employee. A record 
from this system of records may be disclosed to the Office of Personnel 
Management in accordance with the agency's responsibility for 
evaluation and oversight of Federal personnel management.
    7. To officers and employees of a Federal agency for purposes of 
audit.
    8. To a Member of Congress or to a congressional staff member in 
response to an inquiry of the congressional office made at the request 
of the individual about whom the record is maintained.
    9. To officers and employees of the Office of Thrift Supervision in 
connection with administrative services provided to this agency under 
agreement with OTS.
    10. To GAO for audit; to the Internal Revenue Service for 
investigation; and to private attorneys, pursuant to a power of 
attorney.
    A copy of an employee's Department of the Treasury Form W-2, Wage 
and Tax Statement, also is disclosed to the state, city, or other local 
jurisdiction which is authorized to tax the employee's compensation. 
The record will be provided in accordance with a withholding agreement 
between the state, city or other local jurisdiction and the Department 
of the Treasury pursuant to 5 U.S.C. 5516, 5517, and 5520, or, in the 
absence thereof, in response to a written request from an appropriate 
official of the taxing jurisdiction to the Secretary, Federal Maritime 
Commission, 800 North Capitol Street, N.W., Washington, DC 20573-0001. 
The request must include a copy of the applicable statute or ordinance 
authorizing the taxation of compensation and should indicate whether 
the authority of the jurisdiction to tax the employee is based on place 
of residence, place of employment, or both. Pursuant to a withholding 
agreement between a city and the Department of the Treasury (5 U.S.C. 
5520), copies of executed city tax withholding certificates shall be 
furnished to the city in response to written request from an 
appropriate city official to the Secretary at the above address.
    In the absence of a withholding agreement, the Social Security 
Number will be furnished only to a taxing jurisdiction which has 
furnished this agency with evidence of its independent authority to 
compel disclosure of the Social Security Number, in accordance with 
section 7 of the Privacy Act, Pub. L. 93-579.
* * * * *
    Dated: November 24, 1997.

    By the Commission.

Joseph C. Polking,
Secretary.
[FR Doc. 97-31257 Filed 11-26-97; 8:45 am]
BILLING CODE 6730-01-P