[Federal Register Volume 63, Number 56 (Tuesday, March 24, 1998)]
[Notices]
[Pages 14165-14169]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7579]


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SOCIAL SECURITY ADMINISTRATION


Privacy Act of 1974, as Amended; Altered System of Records and 
Report of New Routine Use

AGENCY: Social Security Administration (SSA).

ACTION: Altered system of records and new routine use.

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SUMMARY: In accordance with the Privacy Act (5 U.S.C. 552a(e)(4) and 
(11)), we are issuing public notice of our intent to alter an existing 
system of records and establish a new routine use, both in the 09-60-
0058--Master Files of Social Security Number (SSN) Holders and SSN 
Applications, SSA/OSR, system of records. (For convenience, we will 
refer to this system of records as the SSN System.) The proposed 
alteration and new routine use will allow SSA to obtain the SSNs of the 
parents on applications for SSNs for individuals who have not attained 
the age of 18 and to share that information with the Secretary of the 
Treasury for the purpose of administering those sections of the 
Internal Revenue Code of 1986 which grant tax benefits based on support 
or residence of children. We are also making non-substantive 
housekeeping changes in the notice.
    We invite public comment on this publication.

DATES: We filed a report of an altered system of records and proposed 
new routine use with the Chairman, Committee on Government Reform and 
Oversight of the House of Representatives; the Chairman, Committee on 
Governmental Affairs of the Senate; and the Administrator, Office of 
Information and Regulatory Affairs, Office of Management and Budget on 
March 9, 1998. The routine use will become effective as proposed, 
without further notice May 4, 1998, unless we receive comments on or 
before that date that result in a contrary determination.

ADDRESSES: Interested individuals may comment on this publication by 
writing to the SSA Privacy Officer, Social Security Administration, 
Room 3-A-6 Operations Building, 6401 Security Boulevard, Baltimore, 
Maryland 21235. Comments may be faxed to (410) 966-0869. All comments 
received will be available for public inspection at that address.

FOR FURTHER INFORMATION CONTACT: Mr. Michael Walker, Social Insurance 
Specialist, Office of Disclosure Policy, Social Security 
Administration, 3-C-1 Operations Building, 6401 Security Boulevard, 
Baltimore, Maryland 21235, telephone 410-965-8525.

SUPPLEMENTARY INFORMATION:

A. Discussion of the Alteration and the Proposed New Routine Use

    Section 1090(b) of the Taxpayer Relief Act of 1997, Pub. L. 105-34, 
amends section 205(c)(2)(B)(ii) of the Social Security Act, which 
imposes a duty on the Commissioner of Social Security to require of 
applicants for an SSN such evidence as may be necessary to establish 
the age, citizenship, or alien status, and true identity of such 
applicants. ``Such evidence'', for applications for SSNs for 
individuals who have not attained the age of 18, ``shall include the 
information described in'' section 205(c)(2)(C)(ii). That information 
is the SSNs of the parents.
    In addition, section 205(c)(2)(C)(ii) requires each parent to 
furnish to a State (or political subdivision) the parent's SSN (or SSNs 
if there is more than one) for the purpose of issuing a birth 
certificate, unless the State, in accordance with regulations issued by 
the Commissioner of Social Security, finds good cause for not requiring 
the parents to furnish their SSNs. Section 1090(b) requires the States 
to make those parents' SSNs available to the Commissioner of Social 
Security. The Commissioner is required to share the parents SSNs, 
obtained under sections 205(c)(2)(B)(ii) and (C)(ii), with the 
Secretary of the Treasury for the purpose of administering those 
sections of the Internal Revenue Code of 1986 which grant tax benefits 
based on support or residence of children.
    Categories of records currently collected in the SSN system include 
name, date and place of birth, sex, both parents' names, and race/
ethnic data but does not include the SSNs of parents provided on 
applications of individuals who have not attained the age of 18. In 
response to the requirements of the Taxpayer Relief Act of 1997, we 
propose to alter the categories of records in the system to include the 
SSNs of parents provided on applications for SSNs of individuals who 
have not attained the age of 18.
    We are also altering our statement of purpose for the collection of 
information to recognize that we collect the parents' SSNs for two 
reasons:
    1. As evidence with respect to an application for an SSN for an 
individual who has not attained the age of 18, and
    2. In order to share parents' SSNs with the Secretary of the 
Treasury for use in administering those sections of the Internal 
Revenue Code of 1986 which grant tax benefits based on support or 
residence of children.
    We are also proposing to add a routine use to the SSN system of 
records allowing disclosure of the SSNs of parents provided on 
applications for SSNs of individuals who have not attained the age of 
18 to the Secretary of the Treasury for the purpose of administering 
those sections of the

[[Page 14166]]

Internal Revenue Code of 1986 which grant tax benefits based on support 
or residence of children. The routine use will read that disclosures 
will be made:

8(c)  To the Secretary of the Treasury for the purpose of 
administering those sections of the Internal Revenue Code of 1986 
which grant tax benefits based on support or residence of children. 
(As required by section 1090(b) of the Taxpayer Relief Act of 1997, 
Pub. L. 105-34, this routine use applies specifically to SSNs of 
parents shown on an application for an SSN for an individual who has 
not attained the age of 18.

    A notice of the SSN system, to which the routine use will apply, 
was last published in the Federal Register at 61 FR 33791, June 28, 
1996.

B. Compatibility of Proposed Routine Use

    We are proposing the new routine use discussed above in accordance 
with the Privacy Act (5 U.S.C. 552a(a)(7), (b)(3), (e)(4) and (e)(11)) 
and our disclosure regulation (20 CFR part 401).
    The Privacy Act permits us to disclose information about 
individuals without their consent for a routine use, i.e., where the 
information will be used for a purpose that is compatible with the 
purpose for which we collected the information. Consistent with the 
Privacy Act, under 20 CFR 401.150 we may disclose information under a 
routine use for administering our programs, or for administering 
similar programs of other agencies. In addition, our regulation at 20 
CFR 401.120, provides that we disclose information when a law 
specifically requires it. The Taxpayer Relief Act of 1997, Pub. L. 105-
34, specifically requires disclosure of the information at issue to the 
Secretary of the Treasury. Therefore, we find that disclosing the SSNs 
of parents of applicants for SSNs who have not attained the age of 18 
serves purposes that are deemed to be compatible with purposes for 
which SSA collects the information and meets the criteria of the 
Privacy Act and the regulation for establishment of a routine use.

C. Effect of the Proposal on Individual Rights

    As discussed above, the proposed system alterations and new routine 
use will permit SSA to disclose the parents' SSNs at issue to the 
Secretary of the Treasury for administering those sections of the 
Internal Revenue Code of 1986 which grant tax benefits based on support 
or residence of children.
    While disclosure will have some impact on the privacy of 
individuals, (the SSNs of the parents will be known to the Social 
Security Administration and the Department of the Treasury) the 
Treasury will be better able to administer certain parts of the tax 
code. SSA will follow all statutory and regulatory requirements for 
disclosure. Thus, we do not anticipate that the disclosure will have 
any unwarranted effect on the privacy or other rights of individuals.

    Dated: March 9, 1998.
Kenneth S. Apfel,
Commissioner of Social Security.
09-60-0058

System name:
    Master Files of Social Security Number (SSN) Holders and SSN 
Applications, SSA/OSR.

Security classification:
    None.

System location:
Social Security Administration, Office of Telecommunications and 
Systems Operations, 6401 Security Boulevard, Baltimore, MD 21235
Social Security Administration, Office of Central Records Operations, 
300 N. Greene Street, Baltimore, MD 21201

    Records may also be maintained at contractor sites (contact the 
system manager at the address below to obtain contractor addresses).

Categories of individuals covered by the system:
    This system contains a record of each individual who has applied 
for and been assigned an SSN. Also, each individual who applied for an 
SSN, but was not assigned one due to the following:
     His/her application was supported by documents which are 
suspected to be fraudulent and are being verified with the issuing 
agency, or have been determined to be fraudulent, or
     Fraud is not suspected, but further verification of 
information on his/her application or additional supporting documents 
are needed, or
     None of the above applies, but processing of the 
application has not yet been completed.

Categories of records in the system:
    This system contains all of the information received on 
applications for SSNs (e.g., name, date and place of birth, sex, both 
parents' names, and race/ethnic data)(and, in the case of an 
application for an SSN for an individual who has not attained the age 
of 18, the SSNs of the parents), and any changes in the information on 
the applications that are submitted by the SSN holders. It also 
contains information from applications supported by evidence suspected 
or determined to be fraudulent, along with the mailing addresses of the 
individuals who filed such applications and descriptions of the 
documentation which they submitted. Cross-references may be noted where 
multiple numbers have been issued to the same individual and an 
indication may be shown that a benefit claim has been made under a 
particular SSN(s).

Authority for maintenance of the system:
    Sections 205(a) and 205(c)(2) of the Social Security Act (the Act) 
(42 U.S.C. Secs. 405(a) and 405(c)(2)).

Purpose(s):
    Information in this system is used by the Social Security 
Administration (SSA) to assign SSNs. The information also is used for a 
number of administrative purposes, such as:
     By SSA components for various Old Age, Survivors and 
Disability Insurance, Supplemental Security Income, and Medicare/
Medicaid claims purposes including usage of the SSN itself as a case 
control number and a secondary beneficiary cross-reference control 
number for enforcement purposes and use of the SSN record data for 
verification of claimant identity factors and for other claims purposes 
related to establishing benefit entitlement;
     By SSA as a basic control for retained earnings 
information;
     By SSA as a basic control and data source to prevent 
issuance of multiple SSNs;
     As the means to identify reported names or SSNs on 
earnings reports;
     For resolution of earnings discrepancy cases;
     For statistical studies;
     By the Office of the Inspector General, Office of Audit 
Services, for auditing benefit payments under Social Security programs;
     By the Department of Health and Human Services (DHHS) 
Office of Child Support Enforcement for locating parents who owe child 
support;
     By the National Institute of Occupational Safety and 
Health for epidemiological research studies required by the 
Occupational Safety and Health Act of 1974;
     By the DHHS Office of Refugee Resettlement for 
administering Cuban refugee assistance payments; and
     By the DHHS Health Care Financing Administration for 
administering Title XVIII claims.
     By the Secretary of the Treasury for use in administering 
those sections of the Internal Revenue Code of 1986 which grant tax 
benefits based on

[[Page 14167]]

support or residence of children. (Applies specifically to SSNs of 
parents provided on applications for SSNs for individuals who have not 
attained the age of 18.)
    Information in this system is also used by SSA to prevent the 
processing of an SSN card application for an individual whose 
application is identified as having been supported by evidence that 
either:
     Is suspect and being verified, or
     Has been determined to be fraudulent.
    With this system in place, clerical investigation and intervention 
is required. Social Security offices are alerted when an applicant 
attempting to obtain an SSN card visits other offices in an attempt to 
find one which might unwittingly accept fraudulent documentation.

Routine uses of records maintained in the system, including categories 
of users and the purposes of such uses:
    Disclosure may be made for routine uses as indicated below:
    1. Employers are notified of the SSNs of employees in order to 
complete their records for reporting wages to SSA pursuant to the 
Federal Insurance Contributions Act and section 218 of the Act.
    2. To Federal, State and local entities for the purpose of 
administering income-maintenance and health-maintenance programs, where 
such use of the SSN is authorized by Federal statute.
    3. To the Department of Justice (DOJ), Federal Bureau of 
Investigation and United States Attorneys Offices, and to the 
Department of the Treasury, United States Secret Service, for 
investigating and prosecuting violations of the Act.
    4. To the DOJ, Immigration and Naturalization Service, for the 
identification and location of aliens in the United States pursuant to 
requests received under section 290(c) of the Immigration and 
Nationality Act (8 U.S.C. 1360(c)).
    5. To a contractor for the purpose of collating, evaluating, 
analyzing, aggregating or otherwise refining records when SSA contracts 
with a private firm. (The contractor shall be required to maintain 
Privacy Act safeguards with respect to such records.)
    6. To the Railroad Retirement Board for:
    (a) Administering provisions of the Railroad Retirement and Social 
Security Acts relating to railroad employment; and
    (b) Administering the Railroad Unemployment Insurance Act.
    7. To the Department of Energy for its study of the long-term 
effects of low-level radiation exposure.
    8. To the Department of the Treasury for:
    (a) Tax administration as defined in section 6103 of the Internal 
Revenue Code (IRC) (26 U.S.C. 6103); and
    (b) Investigating the alleged theft, forgery, or unlawful 
negotiation of Social Security checks.
    (c) Administering those sections of the Internal Revenue Code of 
1986 which grant tax benefits based on support or residence of 
children. (As required by section 1090(b) of the Taxpayer Relief Act of 
1997, Pub. L. No. 105-34, this routine use applies specifically to SSNs 
of parents shown on an application for an SSN for an individual who has 
not attained the age of 18.
    9. To a congressional office in response to an inquiry from the 
office made at the request of the subject of a record.
    10. To the Department of State for administering the Act in foreign 
countries through facilities and services of that agency.
    11. To the American Institute of Taiwan for administering the Act 
on Taiwan through facilities and services of that agency.
    12. To the Department of Veterans Affairs (VA), Philippines 
Regional Office, for administering the Act in the Philippines through 
facilities and services of that agency.
    13. To the Department of the Interior for administering the Act in 
the Trust Territory of the Pacific Islands through facilities and 
services of that agency.
    14. To the Department of Labor for:
    (a) Administering provisions of the Black Lung Benefits Act; and
    (b) Conducting studies of the effectiveness of training programs to 
combat poverty.
    15. To VA for the following purposes:
    (a) For the purpose of validating SSNs of compensation recipients/
pensioners in order to provide the release of accurate pension/
compensation data by VA to SSA for Social Security program purposes; 
and
    (b) Upon request, for purposes of determining eligibility for or 
amount of VA benefits, or verifying other information with respect 
thereto.
    16. To Federal agencies which use the SSN as a numerical identifier 
in their recordkeeping systems, for the purpose of validating SSNs.
    17. To the DOJ, to a court, to another tribunal, or to another 
party before such tribunal, when:
    (a) SSA, or any component thereof; or
    (b) Any SSA employee in his/her official capacity; or
    (c) Any SSA employee in his/her individual capacity when DOJ (or 
SSA when it is authorized to do so) has agreed to represent the 
employee; or
    (d) The United States or any agency thereof when SSA determines 
that the litigation is likely to affect the operations of SSA or any of 
its components

is a party to litigation or has an interest in such litigation, and SSA 
determines that the use of such records by DOJ, the tribunal, or other 
party before such tribunal is relevant and necessary to the litigation, 
provided, however, that in each case, SSA determines that such 
disclosure is compatible with the purpose for which the records were 
collected.
    Wage and other information that is subject to disclosure provisions 
of the IRC will not be disclosed under this routine use unless 
disclosure is expressly permitted by the IRC.
    18. To State audit agencies for auditing State supplementation 
payments and Medicaid eligibility considerations.
    19. To the Social Security agency of a foreign country, to carry 
out the purpose of an international Social Security agreement entered 
into between the United States and the other country, pursuant to 
section 233 of the Act.
    20. To Federal, State, or local agencies (or agents on their 
behalf) for the purpose of validating SSNs used in administering cash 
or noncash income maintenance programs or health maintenance programs 
(including programs under the Act).
    21. To third party contacts when the party to be contacted has, or 
is expected to have, information which will verify documents when SSA 
is unable to determine if such documents are authentic.
    22. Upon request, information on the identity and location of 
aliens may be disclosed to the DOJ, Criminal Division, Office of 
Special Investigations, for the purpose of detecting, investigating, 
and, when appropriate, taking legal action against suspected Nazi war 
criminals in the United States.
    23. To the Selective Service System for the purpose of enforcing 
draft registration pursuant to the provisions of the Military Selective 
Service Act (50 U.S.C. App. 462, as amended by section 916 of Pub. L. 
97-86).
    24. To contractors and other Federal agencies, as necessary, for 
the purpose of assisting SSA in the efficient administration of its 
programs. We contemplate disclosing information under this routine use 
only in situations in which SSA may enter into a contractual or similar 
agreement with a

[[Page 14168]]

third party to assist in accomplishing an agency function relating to 
this system of records.
    25. Validated SSN information may be disclosed to organizations or 
agencies such as prison systems that are required by law to furnish SSA 
with SSN information.
    26. Nontax return information that is not restricted from 
disclosure by Federal law may be disclosed to the General Services 
Administration and the National Archives and Records Administration 
(NARA) for the purpose of conducting records management studies with 
respect to their duties and responsibilities under 44 U.S.C. 2904 and 
2906, as amended by NARA Act of 1984.
    27. Disclosure of SSNs and dates of birth may be made to VA or 
third parties under contract to that agency for the purpose of 
conducting VA medical research and epidemiological studies.
    28. SSN information may be disclosed to the Office of Personnel 
Management (OPM) upon receipt of a request from that agency in 
accordance with 5 U.S.C. 8347(m)(3), when OPM needs the information in 
administering its pension program for retired Federal Civil Service 
employees.
    29. Upon request by the Department of Education, SSNs which are 
provided by students to postsecondary educational institutions may be 
verified as required by Title IV of the Higher Education Act of 1965 
(20 U.S.C. 1091).
    30. To student volunteers and other workers, who technically do not 
have the status of Federal employees, when they are performing work for 
SSA as authorized by law, and they need access to personally 
identifiable information in SSA records in order to perform their 
assigned Agency functions.
    31. To Federal, State, and local law enforcement agencies and 
private security contractors, as appropriate, information necessary:
    (a) To enable them to protect the safety of SSA employees and 
customers, the security of the SSA workplace and the operation of SSA 
facilities, or
    (b) To assist investigations or prosecutions with respect to 
activities that affect such safety and security or activities that 
disrupt the operation of SSA facilities.
    32. Corrections to information that resulted in erroneous inclusion 
of individuals in the Death Master File (DMF) may be disclosed to 
recipients of erroneous DMF information.
    33. To State vital records and statistics agencies, the SSNs of 
newborn children for administering public health and income maintenance 
programs, including conducting statistical studies and evaluation 
projects.
    34. Personal identification data (i.e., name, SSN, and date of 
birth) concerning individuals who apply for, or are issued, drivers' 
licenses or other identification documents may be verified for State 
motor vehicle agencies (MVA) that issue such licenses or documents. In 
performing such ``verification,'' SSA may indicate whether the 
identifying data furnished by a State MVA concerning an individual 
match or do not match data maintained in this system of records, and 
SSA may identify the particular data elements that do not match. SSA 
will not disclose information from this system of records which does 
not match the information furnished by the State MVA.
    35. Information as to whether an individual is alive or deceased 
may be disclosed pursuant to section 1106(d) of the Social Security Act 
(42 U.S.C. 1306(d)), upon request, for purposes of an epidemiological 
or similar research project, provided that:
    (a) SSA determines in consultation with the DHHS, that the research 
may reasonably be expected to contribute to a national health interest;
    (b) The requester agrees to reimburse SSA for the costs of 
providing the information; and
    (c) The requester agrees to comply with any safeguards and 
limitations specified by SSA regarding rerelease or redisclosure of the 
information.
    36. In connection with a pilot program, conducted with the 
Immigration and Naturalization Service under 8 U.S.C. 1324a(d)(4) to 
test methods of verifying that individuals are authorized to work in 
the United States, SSA will inform an employer participating in such 
pilot program that the identifying data SSN, name and date of birth) 
furnished by an employer concerning a particular employee match, or do 
not match, the data maintained in this system of records, and when 
there is such a match, that information in this systems of records 
indicates that the employee is, or is not, a citizen of the United 
States.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
    Records in this system are maintained in paper form (e.g., Forms 
SS-5 (Application for an SSN card), and system generated forms); 
magnetic media (e.g., magnetic tape and disc with on-line access); in 
microfilm and microfiche form and on electronic files (e.g., NUMIDENT 
and Alpha-Index).

RETRIEVABILITY:
    Records of SSN holders are indexed by both SSN and name. Records of 
applications that have been denied because the applicant submitted 
fraudulent evidence, or that are being verified because the evidence is 
suspected to be fraudulent, are indexed either by the applicant's name 
plus month and year of birth, or by the applicant's name plus the 
eleven-digit reference number of the disallowed application.

SAFEGUARDS:
    Safeguards for automated records have been established in 
accordance with the Systems Security Handbook. This includes 
maintaining the magnetic tapes and discs within a secured enclosure 
attended by security guards. Anyone entering or leaving this enclosure 
must have a special badge issued only to authorized personnel.
    For computerized records electronically transmitted between Central 
Office and Field Office locations (including organizations 
administering SSA programs under contractual agreements), safeguards 
include a lock/unlock password system, exclusive use of leased 
telephone lines, a terminal-oriented transaction matrix, and an audit 
trail. All microfilm, microfiche, and paper files are accessible only 
by authorized personnel who have a need for the records in the 
performance of their official duties.
    Expansion and improvement of SSA telecommunications systems has 
resulted in the acquisition of terminals equipped with physical key 
locks. The terminals also are fitted with adapters to permit the future 
installation of data encryption devices and devices to permit the 
identification of terminal users.

RETENTION AND DISPOSAL:
    All paper forms are retained for five years after they have been 
filmed or entered on tape and the accuracy has been verified. They then 
are destroyed by shredding. Electronic, as well as updated microfilm 
and microfiche records are retained indefinitely. All tape, discs, 
microfilm and microfiche files are updated periodically. Out-of-date 
magnetic tapes and discs are erased. Out-of-date microfiches are 
disposed of by applying heat.

SYSTEM MANAGER(S) AND ADDRESS:
    Director, Division of Data Support and Enumeration, Office of 
Systems Requirements, Social Security Administration, 6401 Security 
Boulevard, Baltimore, MD 21235.

[[Page 14169]]

NOTIFICATION PROCEDURES:
    An individual can determine if this system contains a record with 
information pertaining to him/her by providing his/her name, signature, 
and SSN to the address shown under ``System manager and address'' 
above. (Furnishing the SSN is voluntary, but it makes searching for an 
individual's record easier and avoids delay.) If the SSN is unknown or 
no SSN has been assigned because the evidence presented with the 
application is being verified or has been determined to be fraudulent, 
the individual should provide name, signature, date and place of birth, 
sex, mother's birth name, and father's name, and evidence of identity. 
Information in this system of records is available to the subjects of 
the records.

RECORD ACCESS PROCEDURES:
    Same as notification procedures. Also, requesters should reasonably 
specify the record contents which they are seeking.

CONTESTING RECORD PROCEDURES:
    Same as notification procedures above. Also, requesters should 
reasonably identify the record, specify the information which they are 
contesting, and state the corrective action sought and the reasons for 
the correction, with supporting justification showing how the record is 
incomplete, untimely, inaccurate, or irrelevant.

RECORD SOURCE CATEGORIES:
    Information in this system is obtained from SSN applicants (or 
individuals acting on their behalf). The SSN itself is assigned to the 
individual as a result of internal processes of this system.

SYSTEM EXEMPTIONS FROM CERTAIN PROVISIONS OF THE ACT:
    None.

[FR Doc. 98-7579 Filed 3-23-98; 8:45 am]
BILLING CODE 4190-29-P