[Federal Register Volume 64, Number 69 (Monday, April 12, 1999)]
[Notices]
[Pages 17604-17607]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-8976]


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 Notices
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains documents other than rules 
 or proposed rules that are applicable to the public. Notices of hearings 
 and investigations, committee meetings, agency decisions and rulings, 
 delegations of authority, filing of petitions and applications and agency 
 statements of organization and functions are examples of documents 
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  Federal Register / Vol. 64, No. 69 / Monday, April 12, 1999 / 
Notices  

[[Page 17604]]





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DEPARTMENT OF AGRICULTURE

Office of the Secretary


Privacy Act: Proposed Revision of an Existing System of Records

AGENCY: Office of the Secretary, USDA.

ACTION: Notice of proposed revision of an existing system of Records--
USDA/FNS-9 (formerly known as USDA/FCS-9), entitled, Food Stamp Program 
Retailer Information.

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SUMMARY: In accordance with the requirements of the Privacy Act of 
1974, as amended, 5 U.S.C. 552a, the United States Department of 
Agriculture (USDA), Food and Nutrition Service (FNS), is giving notice 
that it proposes to revise the following system of records. This system 
was previously published under the agency's former name, the Food and 
Consumer Service, in the Federal Register on December 2, 1996 and a 
subsequent correction was published in the Federal Register on June 10, 
1997.
    In order to be in compliance with a new statutory provision in the 
Debt Collection Improvement Act of 1996 (DCIA), Pub. L. 104-134, FNS 
proposes to amend the fourth routine use which addresses the reporting 
of delinquent debts to the IRS for the purpose of offsetting a monetary 
penalty against a tax refund due to a debtor for violations committed 
under the Food Stamp Program.
    In accordance with the Internal Revenue Service requirements, FNS 
is also proposing to revise the eighth routine use. The routine use 
will ensure that the employer identification numbers (EINs) contained 
in this system of records will not be disclosed to private entities 
which have contractual agreements with USDA.
    In addition, FNS is proposing to add a new routine use which will 
notify the public that FNS may disclose the information in this system 
of records to State agencies that administer the Special Supplemental 
Nutrition Program for Women, Infants and Children (WIC).

EFFECTIVE DATE: This notice will be effective, without further notice, 
May 24, 1999, unless modified by a subsequent notice to incorporate 
comments received from the public. Comments must be received by the 
contact person listed below on or before May 12, 1999, to be assured 
consideration.

ADDRESSES: Comments should be addressed to: Thomas O'Connor, Director, 
Benefit Redemption Division, Food and Nutrition Service, USDA, Room 
706, 3101 Park Center Drive, Alexandria, Virginia 22302. Telephone: 
(703) 305-2419.

FOR FURTHER INFORMATION CONTACT: Gregory K. Evans, Senior Policy 
Analyst, Room 706, 3101 Park Center Drive, Alexandria, Virginia 22302. 
Telephone: (703) 305-2419.

SUPPLEMENTARY INFORMATION: The Debt Collection Act of 1982 (Pub. L. 97-
365), as amended, provides statutory authority for federal agencies to 
collect debts through administrative offset. The Debt Collection 
Improvement Act of 1996 (Pub. L. 104-134), expanded that statutory 
authority by requiring that any federal agency owed a past due, legally 
enforceable nontax debt that is over 180 days delinquent, refer such 
debt to the Department of the Treasury to participate in its offset 
program (also known as the Treasury Offset Program (TOP)) which 
includes administrative offset, the Federal Tax Refund Offset Program 
(FTROP), and Federal salary offset program. The TOP is a government-
wide delinquent debt matching and payment offset system. Thus, FNS is 
proposing to amend the fourth routine use which is listed in USDA/FNS-
9, so that FNS can fully comply with these legislative mandates.
    This system of records contains personal information from owners 
and officers of firms and other entities currently participating in the 
Food Stamp Program, and those who have previously participated in the 
program. The following personal information regarding owners and 
officers is contained in the system: Name, home address, Social 
Security Number (SSN), and date of birth (DOB). The SSNs are collected 
only from owners of sole proprietorships, partnerships, principal 
shareholders of private corporations, and officers of cooperatives. 
Financial data (i.e., food sales, gross sales, food stamp redemption 
data) relative to each business entity currently authorized or 
previously authorized is also included in this system of records.
    This system of records is not a financial management system that is 
used to track and identify financial payments which become delinquent; 
however, in order for FNS to participate in TOP, FNS must share with 
the Department of Treasury the personal identifying information (such 
as the debtor's name, DOB, home address, SSN and/or EIN (which is not 
considered a personal item of information)) of those individuals in 
this system of records for whom there is an outstanding delinquent debt 
owed to FNS. These debts originate from administrative actions (in the 
form of monetary penalties) taken against store owners and officers of 
stores who are found violating the Food Stamp Program regulations.
    The fourth routine use which currently deals with disclosing 
information from this system of records to the Internal Revenue Service 
for the purpose of offsetting a debtor's tax refund in payment for a 
monetary penalty for food stamp violations, will be amended to notify 
the public that information (i.e., the debtor's name, home address, SSN 
and/or EIN) contained in this system of records may be disclosed to 
other Federal agencies (e.g., the Department of the Treasury) and other 
disbursing officials for offsets that are operated under the TOP.
    Currently, once a determination is made to assess a fine or 
monetary penalty against a store owner or officer found violating the 
FSP, a demand for payment is forwarded to the individual. If the 
individual does not pay the debt, depending on the circumstances, he 
may receive from one to three demand letters from FNS. If the payment 
is not received with the prescribed time period, FNS refers that debt 
to a contract collection agency. If they cannot collect, the debt is 
either written off as uncollectible or referred to the Department of 
Justice for litigation and/or collection. Such collection efforts are

[[Page 17605]]

in accordance with the Federal Claims Collection Standards (FCCS) 
regulations, the Food Stamp Act, and the Food Stamp Program 
regulations. Based on the above, FNS is also amending the fourth 
routine use to notify the public that information from this system of 
records may be disclosed to contracted private collection agencies for 
claims collection action or the Department of Justice for litigation 
and/or collection action.
    Currently, the fourth routine use states that, ``USDA/FCS may 
disclose information from this system of records to the Internal 
Revenue Service for the purpose of offsetting a monetary penalty for 
violations committed under the Food Stamp Program against a tax refund 
that may be due to the debtor.''
    FNS proposes to revise the fourth routine use to permit USDA/FNS to 
release from this system of records information, including SSNs and 
EINs, to collect and report on delinquent debt. USDA/FNS will disclose 
this information to other Federal and State agencies (Note: SSNs and 
EINs will only be shared with Federal agencies), as well as private 
collection agencies, for purposes of claims collection actions 
including, but not limited to, administrative offset and referral to 
the Department of Justice for litigation.
    Section 6109(f)(2)(B) of the Internal Revenue Code provides that, 
for purposes of sharing certain EINs by the Secretary of Agriculture 
with other agencies or instrumentalities of the United States, access 
to EINs shall be restricted only to certain officers and employees of 
the United States. Sections 301.6109-2(c) and (d) of the Procedure and 
Administration regulations also provide that only certain officers and 
employees of the United States are permitted access to EINs. The eighth 
routine use currently states that the information from this system of 
records can be disclosed to private entities which have contractual 
agreements with USDA. Based on the above, it has been determined that 
private entities which have contractual agreements with USDA are not 
permitted access to EINs. Thus, FNS is revising the routine use to 
reflect this position.
    Lastly, the Privacy Act of 1974, as amended, provides that agencies 
that maintain a system of records shall publish a notice in the Federal 
Register of the existence and character of the system of records. This 
includes each routine use of the records contained in the system 
including categories of users and the purpose of such use. Thus, FNS is 
also proposing to add a new routine use number eleven to this system of 
records. The routine use will notify the public that FNS may disclose 
information in this system of records to State agencies that administer 
the Special Supplemental Nutrition Program for Women, Infants and 
Children (WIC).
    A ``Report on a Revised System,'' required by 5 U.S.C. 552a(r), as 
implemented by OMB Circular A-130, was sent to the Chairman, Senate 
Committee on Governmental Affairs, the Chairman, House Committee on 
Government Operations, and to the Administrator, Office of Information 
and Regulatory Affairs, of the Office of Management and Budget on April 
5, 1999.
    Since the publication of this system of records in the Federal 
Register on December 2, 1996, a correction has been made and now by way 
of this notice, we are amending two routine uses, adding another 
routine use, and changing the name of the agency. Thus, for 
clarification purposes, the proposed altered system of records is 
republished in its entirety below.

    Signed at Washington, DC on April 5, 1999.
Dan Glickman,
Secretary of Agriculture.
USDA/FNS-9

SYSTEM NAME:
    USDA/FNS-9 Food Stamp Program Retailer Information.

SECURITY CLASSIFICATION: None.
SYSTEM LOCATION:
    The paper records (i.e., the applications for authorization and 
reauthorization) which contain the personal identifying information on 
retail and wholesale store owners and officers, and/or owners and 
officers associated with other entities, are located in a host computer 
database and in FNS field offices throughout the United States. The 
location of each FNS field office may be found in the local phone 
books. The host computer database which contains the Store Tracking and 
Redemption Subsystem (STARS) database, is located at the Benefit 
Redemption Systems Branch, PO Box 135, Minneapolis, Minnesota 55440.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    The system consists of personal information from owners and 
officers of stores and other entities currently participating in the 
Food Stamp Program, as well as those owners and officers who have 
previously participated in the program. The individual paper records 
(i.e., applications for authorization) located in FNS field offices 
also contain personal information from owners and officers who applied 
for authorization to participate in the FSP but were denied 
authorization.

CATEGORIES OF RECORDS IN THE SYSTEM:
    The applications for authorization and reauthorization are in the 
STARS database and located in the files of FNS field offices. The 
applications contain the following personal information regarding 
owners and officers: Name, home address, social security number, and 
date of birth. The SSNs are collected only from owners of sole 
proprietorships, partnerships, principal shareholders of private 
corporations, and officers of cooperatives. Financial data (i.e., food 
sales, gross sales, food stamp redemption data) relative to each entity 
currently authorized or previously authorized is in the STARS database.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    Section 9 of the Food Stamp Act of 1977, as amended, (7 U.S.C. 
2018); section 1735 of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (Pub. L. 101-624, 104 Stat. 3359); section 205(c)(2)(C) of 
the Social Security Act (42 U.S.C. 405(c)(2)(C)); and section 6109(f) 
of the Internal Revenue Code of 1986 (26 U.S.C. 6109(f)).

PURPOSE(s):
    This information will be shared with other Federal and State 
entities to assist in the administration and enforcement of the Food 
Stamp Act, as well as other Federal and State laws. The SSNs and EINs 
of store owners will only be shared with Federal agencies which 
maintain those numbers in their files. STARS is used primarily for 
tracking the authorization and food stamp redemption activity of owners 
and officers of entities currently participating in the Food Stamp 
Program, as well as those owners and officers who have previously 
participated in the Food Stamp Program.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES:

Limitations on Disclosure under the Following Routine Uses (1) through 
(11):

    Information obtained from applicants under the authority of 7 
U.S.C. 2018(c) may be used or disclosed only as specified in 7 U.S.C. 
2018(c). With the exception of the SSNs and EINs obtained from 
applicants, 7 U.S.C. 2018(c) gives FNS the authority to

[[Page 17606]]

disclose the contents of an initial application, or other information 
submitted by an applicant to other Federal and State law enforcement 
and investigative agencies for the purposes of administering or 
enforcing the Food Stamp Act or any other Federal or State law. 7 
U.S.C. 2018(c) also limits the use of the information obtained by 
applicants. That is, the above mentioned entities may only use this 
information for purposes directly connected with the administration and 
enforcement of the Food Stamp Act or any other Federal or State law. 
Some of the information obtained from applicants is ownership 
information and sales and redemption data.
    The use and disclosure of SSNs and EINs obtained by applicants is 
covered in the Social Security Act and the Internal Revenue Code. In 
accordance with the Social Security Act and the Internal Revenue Code, 
applicant social security numbers and employer identification numbers 
may be disclosed only to other Federal agencies authorized to have 
access to social security numbers and employer identification numbers 
and maintain these numbers in their files, and only when the Secretary 
of Agriculture determines that disclosure would assist in verifying and 
matching such information against information maintained by such other 
agency. 42 U.S.C. 405(c)(2)(C)(iii); 26 U.S.C. 6109(f).
    (1) USDA/FNS may disclose information from this system of records 
to the Department of Justice (DOJ), a court or other tribunal, or 
another party before such tribunal, when USDA, any component thereof, 
or any employee of the USDA in his or her official capacity, any USDA 
employee in his or her individual capacity where DOJ (or USDA where it 
is authorized to do so) has agreed to represent the employee, or the 
United States where USDA determines that the litigation is likely to 
affect directly the operations of USDA or any of its components, is a 
party to the litigation or has an interest in such litigation, and USDA 
determines that the use of such records by DOJ, the court or other 
tribunal, or the other party before such tribunal is relevant and 
necessary to the litigation; provided, however, that in each case, USDA 
determines that such disclosure is compatible with the purpose for 
which the records were collected.
    (2) In the event that material in this system indicates a violation 
of the Food Stamp Act or any other Federal or State law whether civil 
or criminal or regulatory in nature, and whether arising by general 
statute, or by regulation, rule or order issued pursuant thereto, USDA/
FNS may disclose the relevant records to the appropriate agency, 
whether Federal or State, 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.
    (3) USDA/FNS may disclose records from this system of records to a 
congressional office from the record of an individual provided that 
individual gave the congressional office permission to inquire on his 
or her behalf.
    (4) USDA/FNS may use information from this system of records, 
including SSNs and EINs, to collect and report on delinquent debt and 
may disclose the information to other Federal and State agencies, as 
well as private collection agencies, for purposes of claims collection 
actions including, but not limited to, administrative offset and 
referral to the Department of Justice for litigation. (Note: SSNs and 
EINs will only be disclosed to Federal agencies).
    (5) USDA/FNS may disclose information from this system of records 
to other Federal and State agencies to respond to specific requests 
from such Federal and State agencies for the purpose of administering 
the Food Stamp Act as well as other Federal and State laws.
    (6) USDA/FNS may disclose information from this system of records 
to other Federal and State agencies to verify information reported by 
applicants and participating firms, and to assist in the administration 
and enforcement of the Food Stamp Act as well as other Federal and 
State laws.
    (7) USDA/FNS may disclose information from this system of records 
to other Federal and State agencies for the purpose of conducting 
computer matching programs.
    (8) USDA/FNS may disclose information (excluding EINs) from this 
system of records to private entities having contractual agreements 
with USDA for designing, developing, and operating the system, and for 
verification and computer matching purposes.
    (9) USDA/FNS may disclose an owner's home address to a financial 
institution to verify information contained on a redemption certificate 
(Form FCS-278B, formerly Form FNS-278B) submitted by a participating 
retailer. Authorized entities use these certificates when depositing 
food coupons at financial institutions. On occasion, particularly with 
small businesses, the owner's business address may also be the owner's 
home address.
    (10) USDA/FNS will disclose information from this system of records 
to the Internal Revenue Service, for the purpose of reporting 
delinquent retailer and wholesaler monetary penalties of $600 or more 
for violations committed under the Food Stamp Program. USDA/FNS will 
report each delinquent debt to the Internal Revenue Service on Form 
1099-C (Cancellation of Debt). USDA/FNS will report these debts to the 
Internal Revenue Service under the authority of the Income Tax 
Regulations (26 CFR parts 1 and 602) under section 6050P of the 
Internal Revenue Code.
    (11) USDA/FNS may disclose information from this system of records 
to State agencies that administer the Special Supplemental Nutrition 
Program for Women, Infants, and Children (WIC), authorized under 
section 17 of the Child Nutrition Act of 1966 for purposes of 
administering that Act and the regulations issued under that Act.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
    File folders, magnetic tapes, and computer disks.

RETRIEVABILITY:
    In STARS, the personal identifying information is retrievable by 
owner's name and by SSN.

SAFEGUARDS:
    1. Authorized Users: When designing, developing and/or operating a 
system of records on individuals, contractors are required to comply 
with all provisions of the Privacy Act. Contractors are required to 
maintain and protect the personal data and cannot release or share data 
without consulting with FNS. Access to records maintained within FNS is 
limited to those staff officials responsible for the subject system of 
records. Otherwise, access is limited to persons authorized and needing 
to use the records, including project directors, contract officers, 
programmers, analysts, statisticians, statistical clerks and key punch 
operators on the staff of the contractors or in the FNS.
    2. Physical Safeguards: Paper records are stored in locked safes, 
locked files, and locked offices when not in use. Computer terminals 
used to process personal identifiable data are located in secured areas 
and are accessible only to authorized users. Back up records which are 
stored off-site shall be used and stored under the same secure 
conditions.

[[Page 17607]]

    3. Procedural Safeguards: In order to access STARS, each authorized 
individual is given a personal access ID and password. The individual's 
password must be changed at least every 45 days or whenever the 
individual feels it might have been compromised.
    Access to personal information contained in the STARS database and 
to the paper record files is restricted to those individuals who have 
been authorized by FNS and who have a need to know such information in 
the performance of their official duties in administering the Food 
Stamp Act and other Federal and State laws. SSNs cannot be viewed on 
screen in STARS by those individuals who are not specifically 
authorized to view them.
    FNS personnel, project officers, and contract officers oversee 
compliance with these requirements. When appropriate, FNS personnel 
will review the site facilities to ensure that records have been 
maintained in accordance with the terms of this notice.

RETENTION AND DISPOSAL:
    In STARS, the personal identifying information is maintained 
indefinitely. The applications for authorization and reauthorization 
are kept in the FNS field offices for three years and then destroyed 
pursuant to the applicable document retention and disposal schedule.

SYSTEM MANAGER(s) AND ADDRESS:
    Thomas O'Connor, Director, Benefit Redemption Division, Food and 
Nutrition Service, United States Department of Agriculture, Room 706, 
3101 Park Center Drive, Alexandria, Virginia 22302.

NOTIFICATION PROCEDURE:
    Any individual may request information regarding this system of 
records from the System Manager. The request must be in writing.

RECORD ACCESS PROCEDURES:
    An individual who wishes to request access to records in the system 
which pertains to him or her may submit a written request to the System 
Manager. The envelope and the letter should be marked, ``Privacy Act 
Request''. An individual may be required to reference the record by 
furnishing name, address, Social Security Number, and/or other 
identifiers needed by FNS.

CONTESTING RECORD PROCEDURES:
    Individuals desiring to contest or amend information maintained in 
the system should direct their request to the System Manager. The 
request should include, as appropriate, the reasons for contesting it, 
and the proposed amendment to the information with supporting 
information to show how the record is inaccurate, incomplete, untimely, 
or irrelevant.

RECORD SOURCE CATEGORIES:
    Information in this system comes from the authorization and 
reauthorization applications of stores and other entities which are 
currently participating in the Food Stamp Program, as well as 
information on file for those entities which have previously 
participated in the program. Personal information in this system of 
records is also obtained from the owners and officers of such entities 
as reported on the authorization and reauthorization applications.
    The STARS database also keeps a food stamp redemption history on 
such entities. The database maintains the dollar amount of food stamp 
benefits accepted by each entity currently authorized or previously 
authorized.

EXEMPTIONS CLAIMED FOR THE SYSTEM:
    None.

[FR Doc. 99-8976 Filed 4-9-99; 8:45 am]
BILLING CODE 3410-30-U