[Federal Register Volume 63, Number 189 (Wednesday, September 30, 1998)]
[Notices]
[Pages 52269-52273]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-26157]


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FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL


Privacy Act of 1974; System of Records; Amendment

AGENCY: Appraisal Subcommittee, Federal Financial Institutions 
Examination Council.

ACTION: Notice to amend record system and routine uses.

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SUMMARY: The Appraisal Subcommittee of the Federal Financial 
Institutions Examination Council (``ASC'') proposes to amend its system 
of records notice regarding the ``National Registry of State Certified 
and Licensed Appraisers'' (``National Registry'') under the Privacy Act 
of 1974, as amended (5 U.S.C. 552a)

[[Page 52270]]

and the routine uses of the information collected.

DATES: This action will be effective without further notice on October 
30, 1998, unless comments are received that would result in a contrary 
determination.

ADDRESSES: Send comments to Marc L. Weinberg, General Counsel, by U.S. 
Mail at Appraisal Subcommittee; 2100 Pennsylvania Avenue, NW., Suite 
200; Washington, DC 20037, or by Internet E-mail at [email protected].

FOR FURTHER INFORMATION CONTACT: Marc L. Weinberg, General Counsel; 
Appraisal Subcommittee, 2100 Pennsylvania Avenue, NW., Suite 200; 
Washington, DC 20037.

SUPPLEMENTARY INFORMATION: The ASC's ``notice of new system records'' 
regarding the National Registry was published at 57 FR 11084 (April 1, 
1992). Copies of this notice are available from the address above. The 
ASC proposes to amend this notice of new system records.
    The proposed amendments are not within the purview of subsection 
(r) of the Privacy Act, as amended, which would require the submission 
of a new or altered system report for each system. The specific changes 
to the records system being amended are set forth below, followed by 
the notice as amended, published in its entirety.
    The proposed amendments are the result of the National Registry 
``redesign project,'' (``Project''), which has had as its central goal 
making publicly available to the greatest extent possible National 
Registry information via the Internet. Towards that end, the ASC, in 
July 1997, gave final approval to the Project, and, on September 22, 
1997, approved amendments to ASC Policy Statement 8, National Registry 
of State Certified and Licensed Appraisers. In addition, the ASC issued 
letters to State appraiser regulatory agency officials on July 31, 
September 26, and September 30, 1997, describing the operational 
details of the Project.
    As a result of these actions, since early 1998, virtually all 
information contained in the National Registry has been made available 
to the public at no cost through the ASC's Internet Web site, 
www.asc.gov. Anyone with Internet access--homebuyers and sellers, 
financial institutions, State appraiser regulatory agencies, and 
Federal and State agencies--can retrieve, by virtually any data element 
in the National Registry database, the information contained in the 
database. Therefore, a remotely located bank with Internet access can 
almost immediately determine the name, address, and telephone number of 
a State certified real estate appraiser located near the bank or 
located near the property to be appraised. Homebuyers can download a 
listing of all State licensed appraisers or State certified residential 
appraisers located nearby. And, a State appraiser regulatory agency 
(``State agency'') can determine whether an out-of-State appraiser 
seeking a temporary practice permit within the State, in fact, is a 
certified or licensed appraiser, in good standing, in his or her home 
State. Finally, anyone can determine whether an appraiser's license or 
certification is currently suspended, revoked or has been voluntarily 
surrendered in lieu of further State disciplinary action.
    Only two National Registry data elements are protected by the 
Privacy Act of 1974 and are not generally releasable, through the 
Internet or otherwise. These elements are: (1) The National Registry 
Number (which is the appraiser's Social Security Number, where 
available, or an ASC randomly generated number, where it is not 
available); and (2) a symbol indicating that a State agency has ordered 
a final disciplinary acting against an appraiser resulting in something 
other than a suspension, revocation or voluntary surrender in lieu of 
further State action, e.g., additional education or a monetary fine. 
These data elements are available only to a very limited number of 
persons and situations, as outlined below.
    The ASC has taken steps to ensure that the public posting of 
Registry information on the Internet will not violate State information 
protection laws. During the planning and implementation stages of the 
Project, the ASC worked with the States to ensure that any Privacy Act 
issues were discussed and resolved. For example, a number of States 
initially were very concerned about providing the ASC National Registry 
Numbers, which ideally are Social Security Numbers. In written 
communications and discussions, the ASC informed the States that these 
numbers only would be available to ASC members and staff and State-
specified officials whose access would be ID and password protected. In 
some instances, State agencies specifically notified their certified or 
licensed appraisers about this use of the numbers and requested their 
consent to that use. The ASC has assigned unique National Registry 
numbers to persons not consenting to this use. Moreover, to further 
protect those numbers, the ASC has digitally encrypted them. Finally, 
the ASC's policy has been to honor State personal information 
protection laws. If a State were to inform us that a certain data 
element is private within the State, that element would not be made 
available on our Web site.
    These changes not only significantly enhance the usefulness of the 
National Registry, consistent with the purposes of Title XI of the 
Financial Institutions Reform, Recovery, and Enforcement Act of 1989, 
as amended, 12 U.S.C. 3331-3351, they also greatly facilitate the 
ability of persons whose Privacy Act interests are affected by this 
System of Records, i.e., State certified or licensed real estate 
appraisers, to exercise their rights under the Privacy Act. They can 
check immediately whether information pertaining to them exists in the 
system of records, can determine whether that information is accurate, 
and can request a correction of that information, if necessary.
    All publicly available National Registry data elements will 
continue to be releasable to persons who do not have Internet access. 
Filing a Freedom of Information Act (``FOIA'') request with the ASC 
under ASC regulations at 12 CFR part 1102, subpart D, however, still 
will be needed.
    Persons who do not have access to the Internet are not affected 
significantly by these changes. They continue to use FOIA and the 
Privacy Act (and the ASC respective implementing regulations, 12 CFR 
Part 1102, subparts D and C) to meet their information needs regarding 
this system of records.

ASC-1

System name:

    National registry of State certified and licensed appraisers.

Changes:

* * * * *

Categories of records in the system:

    Delete entry and replace with ``State abbreviation; national 
registry number; State license number; license action; previous license 
number; last name; first name; middle initial; name suffix; date of 
birth; street (mailing); city (mailing); State (mailing); zip 
(mailing); company name; telephone; street (physical); city (physical); 
State (physical); zip (physical); county name; FIPS county code; 
status; status date; license type; previous license type; effective 
date; expiration date; previous expiration date; amount paid; 
transaction date; years paid; classification; EDI capability; 
disciplinary code; effective date; ending date; release to public; 
release to government.''
* * * * *

[[Page 52271]]

Routine uses of records maintained in the system, including categories 
of users and the purposes of such uses:

* * * * *
    Delete entry ``(10)'' and replace with ``(10) Using traditional, 
non-computerized methods, the information may be disclosed to Federal, 
State or local government agency personnel and duly authorized officers 
or employees of a financial institution, as that term is defined in 
section 1121(7) of Title XI of the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989, 12 U.S.C. 3350(7), where records 
in this system of records pertain to a person seeking to qualify, or 
remain qualified, as a staff or fee appraiser eligible to perform an 
appraisal in connection with a federally related transaction.''
* * * * *
    Add new entry ``(11) All information in this system of records, 
except the national registry number and the disciplinary code relating 
to final disciplinary actions resulting in less than suspensions, 
revocations or voluntary surrenders of credentials in lieu of further 
State disciplinary action (collectively, `protected data'), may be 
disclosed to any member of the public through inquiry of the ASC's 
Internet Web site. All information, with no exceptions, may be 
disclosed to authorized Federal and State agency officials through 
inquiry of the ASC's Internet Web site.''

Storage:

    Delete entry and replace with ``Paper records in file drawers, 
computer diskettes, removable computer media (such as `zip disks'), 
computer hard disk drives, magnetic tapes, and computer memory. The 
public portion of the information also is stored in digital form at the 
data processing facilities of National Technical Information Services, 
Department of Commerce, Springfield, VA.''

Retrievability:

    Delete entry and replace with ``National Registry information on 
the ASC's Web site may be retrieved by any single data element or by 
any combination of data elements listed above in `Categories of Records 
in the System,' except for protected data. Protected data cannot be 
retrieved by anyone other than persons authorized in the `Routine Uses' 
section above. All information, except for protected data, can be 
retrieved by anyone by using preformatted or custom queries through the 
ASC's Internet Web site. Only authorized ASC members and staff and 
State appraiser regulatory agency `Authorized Officials' can retrieve 
protected data through the ASC Web site. For persons without Internet 
access to the ASC's Web site, information may be retrieved by following 
the procedures in 12 CFR part 1102, subpart C.''

Safeguards:

    Delete entry and replace with: ``Records submitted by State 
appraiser regulatory agencies are kept in limited access areas during 
duty hours and in locked office areas at all other times. These records 
are available only to those persons whose official duties require such 
access. Internet access to protected data is limited by using `Secure 
Socket Layer' technology and by the ASC assigning user identifications 
and passwords to `Authorized Officials' designated by State appraiser 
regulatory organizations and ASC members and staff. No one, other than 
duly authorized ASC personnel and other persons who are authorized, 
from time to time, by the System Manager to assist the ASC in 
maintaining the ASC Web site, can edit or otherwise change the 
underlying database records contained in the system of records.''
* * * * *

System manager(s) and address:

    Delete entry and replace with: ``Executive Director, ASC, 2100 
Pennsylvania Avenue, NW, Suite 200, Washington, DC 20037.''

Notification procedure:

    Delete entry and replace with: ``Individuals without Internet 
access, who are seeking to determine whether this system of records 
contains information about themselves, seeking access to records about 
themselves in this system of records, or contesting the content of 
records about themselves, must follow the procedures described in 12 
CFR part 1102, subpart C.
    Individuals with Internet access at any time can determine almost 
immediately whether this system of records contains information about 
themselves and whether the information is accurate (except for 
protected data). Therefore, persons with Internet access do not need to 
notify the ASC regarding their seeking to determine whether this system 
of records contains information about themselves or seeking access to 
records about themselves in this system of records. Notifications under 
12 CFR part 1102, subpart C, however, are needed to obtain information 
about protected data in the system of records and to contest the 
content of any records in the system of records.''

Record access procedure:

    Delete entry and replace with: ``Records, other than those 
pertaining to protected data, may be accessed by anyone, at any time, 
via the ASC's Internet Web site. Protected data are not publicly 
accessible; access is limited only to State agency `Authorized 
Officials' and other State and Federal agency officials consistent with 
the `routine uses' stated above. For persons without Internet access, 
the procedure for accessing records in this system of records is set 
out in 12 CFR part 1102, subpart C.''

Contesting record procedures:

    Delete and replace with: ``Notifications under 12 CFR part 1102, 
subpart C are needed to contest the content of any records in the 
system of records.''
* * * * *
ASC-1

SYSTEM NAME:
    National Registry of State Certified and Licensed Appraisers.

SYSTEM LOCATION:
    Appraisal Subcommittee of the Federal Financial Institutions 
Examination Council, 2100 Pennsylvania Avenue, NW, Suite 200, 
Washington, DC. 20037.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    Individuals who are, or have been, licensed or certified by a State 
to perform appraisals in federally related transactions.

CATEGORIES OF RECORDS IN THE SYSTEM:
    State abbreviation; national registry number; State license number; 
license action; previous license number; last name; first name; middle 
initial; name suffix; date of birth; street (mailing); city (mailing); 
State (mailing); zip (mailing); company name; telephone; street 
(physical); city (physical); State (physical); zip (physical); county 
name; FIPS county code; status; status date; license type; previous 
license type; effective date; expiration date; previous expiration 
date; amount paid; transaction date; years paid; classification; EDI 
capability; disciplinary code; effective date; ending date; release to 
public; release to government.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    Sections 1103(a)(4) and 1109(a)(1), Title XI of the Financial 
Institutions Reform, Recovery, and Enforcement Act of 1989, 12 U.S.C. 
3332(a)(4) and 3338(a)(1).

[[Page 52272]]

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES
    (1) The information in the system may be used by the ASC in any 
administrative proceeding before the ASC or in any other action or 
proceeding in which the ASC or its staff participates as a party or the 
ASC participates as amicus curaie any may be available to the extent 
required by law in response to a subpoena issued in the course of a 
proceeding in which the ASC is not a party;
    (2) In any case in which records in the system indicate a violation 
or a potential violation of law, whether civil, criminal or regulatory 
in nature, whether arising from general statute, or by regulation, rule 
or order issued pursuant thereto, the relevant records may be referred 
to the approriate agency, whether Federal, State or local, charged with 
enforcing or implementing the Statute, regulation, rule or order.
    (3) The information may be given or shown to anyone during the 
course of an ASC investigation if the ASC staff has reason to believe 
that disclosure to the person will further the investigation. 
Information also may be disclosed to Federal, State or local 
authorities in order to obtain information or records relevant to an 
ASC investigation;
    (4) The information may be given to independent auditors or other 
private firms with which the ASC has contracted to carry out an 
independent audit, or to collate, aggregate or otherwise refine and 
process data collected in the system of records. These contractors will 
be required to maintain Privacy Act safeguards with respect to such 
records;
    (5) The information may be disclosed to a Federal, State or local 
government agency where records in this system of records pertain to an 
application for employment or to a current employer of that agency 
where the records are relevant and necessary to an agency decision 
concerning the hiring or retention of an employee or disciplinary or 
other administrative action concerning an employee;
    (6) The information may be disclosed to a Federal, State or local 
government agency in response with the issuance of a security 
clearance, the letting of a contract, or the issuance of a license, 
grant or other benefit bythe requesting agency, to the extent that the 
information is relevant and necessary to the requesting agency's 
decision in the matter;
    (7) The information may be disclosed to the Department of Justice 
or other counsel to the ASC for legal advice and also when the 
defendant in litigation is: (a) Any component of the ASC or any member 
or employee of the ASC in his or her official capacity; or (b) the 
United States. The information also may be disclosed to counsel for any 
ASC member or employee in litigation or anticipated litigation in his 
or her individual capacity where the ASC or the Department of Justice 
agrees to represent such employee or authorizes representation by 
another;
    (8) The information may be disclosed to a Congressional office in 
response to an inquiry made at the request of the individual to whom 
the record pertains;
    (9) The information may be disclosed to the news media in 
accordance with guidelines contained in 28 CFR. 50.2 concerning the 
ASC's functions relating to civil, administrative and criminal 
proceedings;
    (10) Using traditional, non-computerized methods, the information 
may be disclosed to Federal, State or local government agency personnel 
and duly authorized officers or employees of a financial institution, 
as that term is defined in section 1121(7) of Title XI of the Financial 
Institutions Reform, Recovery, and Enforcement Act of 1989, 12 U.S.C. 
3350(7), where records in this system of records pertain to a person 
seeking to qualify, or remain qualified, as a staff or fee appraiser 
eligible to perform an appraisal in connection with a federally related 
transaction.
    (11) All information in this system of records, except the national 
registry number and the disciplinary code relating to final 
disciplinary actions resulting in less than suspensions, revocations or 
voluntary surrenders of credentials in lieu of further State 
disciplinary action (collectively, `protected data'), may be disclosed 
or any member of the public through inquiry of the ASC's Internet Web 
site. All information, with no exceptions, may be disclosed to 
authorized Federal and State agency officials through inquiry of the 
ASC's Internet Web site.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
    Paper records in file drawers, computer diskettes, removable 
computer media (such as ``zip disk''), computer hard disk drives 
magnetic tapes, and computer memory. The public portion of the 
information also is stored in digital form at the data processing 
facilities of National Technical Information Services, Department of 
Commerce, Springfield, VA.

RETRIEVABILITY:
    National Registry information on the ASC's Web site may be 
retrieved by any single data element or by any combination of data 
elements listed above in ``Categories of Records in the Systems,'' 
except for protected data. Protected data cannot be retrieved by anyone 
other than persons authorized in the ``Routine Uses'' section above. 
All information, except for protected data, cna be retrieved by anyone 
by using preformatted or custom queries through the ASC's Internet Web 
site. Only authorized ASC members and staff and State appraiser 
regulatory agency ``authorized Officials'' can retrieve protected data 
through the ASC Web site. For persons without Internet access to the 
ASC's Web site, information may be retrieved by following the 
procedures in CFR part 1102, subpart C.

SAFEGUARDS:
    Records submitted by State appraiser regulatory agencies are kept 
in limited access areas during duty hours and in locked office areas at 
all other times. These records are available only to those persons 
whose official duties require such access. Internet access to protected 
data is limited by using `Secure Socket Layer' technology and by the 
ASC assigning user identifications and passwords to ``Authorized 
Officials'' designated by State appraiser regulatory organizations and 
ASC members and staff. No one, other than duly authoized ASC personnel 
and other persons who are authorized, from time to time, by the System 
Manager to assist the ASC in maintaining the ASC Web site, can edit or 
otherwise change the underlying database records contained in the 
system of records.

RETENTION AND DISPOSAL:
    System records are retained by the ASC indefinitely.

SYSTEM MANAGER(S) AND ADDRESS:
    Executive Director, ASC, 2100 Pennsylvania Avenue, NW, Suite 200, 
Washington, DC 20037.

NOTIFICATION PROCEDURE:
    Individuals without Internet access, who are seeking to determine 
whether this system of records contains information about themselves, 
seeking access to records about themselves in this system of records, 
or contesting the content of records about themselves, must follow the 
procedures described in 12 CFR part 1102, subpart C.
    Individuals with Internet access at any time can determine almost 
immediately whether this system of records contains information about

[[Page 52273]]

themselves and whether the information is accurate (except for 
protected data). Therefore, persons with Internet access do not need to 
notify the ASC regarding their seeking to determine whether this system 
of records contains information about themselves or seeking access to 
records about themselves in this system of records. Notifications under 
12 CFR part 1102, subpart C, however, are needed to obtain information 
about protected data in the system of records and to contest the 
content of any records in the system of records.

RECORD ACCESS PROCEDURE:
    Records, other than those pertaining to protected data, may be 
accessed by anyone, at any time, via the ASC's Internet Wed site. 
Protected data are not publicly accessible; access is limited only to 
State agency ``Authorized Officials'' and other State and Federal 
agency officials consistent with the ``routine uses'' stated above. For 
persons without Internet access, the procedure for accessing records in 
this system of records is set out in 12 CFR part 1102, subpart C.

CONTESTING RECORD PROCEDURES:
    Notifications under 12 CFR part 1102, subpart C are needed to 
contest the content of any records in the system of records.

RECORD SOURCE CATEGORIES:
    Information in these records is supplied by State appraiser 
regulatory agencies. These agencies gather the information from 
individuals seeking to become State licensed or State certified 
appraisers, individuals seeking to renew their licenses or 
certifications, or qualified individuals seeking authority from an 
agency to perform appraisals in federally related transactions outside 
of their State of licensure or certification on a temporary basis.

EXEMPTIONS CLAIMED FOR THE SYSTEM:
    None.

    Dated: September 24, 1998.

    By the Appraisal Subcommittee of the Federal Financial 
Institutions Examination Council.
Ben Henson,
Executive Director.
[FR Doc. 98-26157 Filed 9-29-98; 8:45 am]
BILLING CODE 6210-01-M