[Federal Register Volume 65, Number 175 (Friday, September 8, 2000)]
[Notices]
[Pages 54595-54598]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-23015]


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SOCIAL SECURITY ADMINISTRATION


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

AGENCY: Social Security Administration (SSA).

ACTION: Proposed new system of records and proposed routine uses.

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SUMMARY: In accordance with the Privacy Act (5 U.S.C. 552a(e)(4)) and 
(e)(11)), we are issuing public notice of our intent to establish a new 
system of records under the Privacy Act entitled SSA Administrative 
Sanctions Database. The proposed new system of records will maintain 
information SSA will use to investigate and take appropriate action in 
cases of individuals suspected of knowingly making false or misleading 
statements when pursuing claims under title II or title XVI of the 
Social Security Act. We also are proposing to establish 'routine use' 
disclosures applicable to the proposed new system of records. We invite 
public comments on this publication.

DATES: We filed a report of the proposed new system of records with the 
President of the Senate, the Speaker of the House of Representatives, 
and the Director, Office of Information and Regulatory Affairs, Office 
of Management and Budget (OMB) on August 28, 2000. We also requested 
OMB to waive the 40-day advance notice requirements for the system. If 
OMB does not grant the waiver we will not implement the proposal before 
October 7, 2000.

ADDRESSES: Interested individuals may comment on this publication by 
writing to the SSA Privacy Officer, Social Security Administration, 3-
F-1 Operations Building, 6401 Security Boulevard, Baltimore, Maryland 
21235. All comments received will be available for public inspection at 
the above address.

FOR FURTHER INFORMATION CONTACT: Mrs. Patricia G. Smith, Social 
Insurance Policy Specialist, Social Security Administration, Room 3-C-2 
Operations Building, 6401 Security Boulevard, Baltimore, Maryland 
21235, telephone (410) 965-1552.

SUPPLEMENTARY INFORMATION:

I. Background and Purpose of the Proposed New System of Records

A. General Background

    On December 14, 1999, the President signed into law the Foster Care 
Independence Act of 1999, Public Law 106-169. Section 207 of this law 
amended title XI of the Social Security Act (Act) by adding section 
1129A, that provides for the imposition by SSA of a penalty on an 
individual who makes or causes to be made, a statement or 
representation of a material fact, that the person knows or should know 
is false or misleading, or omits a material fact that the person makes 
with a knowing disregard for the truth. The statement must be made for 
use in determining eligibility for or the amount of benefits under 
title II or title XVI.
    In order to implement section 1129A of the Act, SSA must collect 
and maintain relevant information about individuals suspected of 
knowingly making false or misleading statements for use in determining 
any initial or continuing right to or the amount of monthly insurance 
benefits under title II or title XVI. This information will be housed 
in a database and information about specific cases will be retrieved 
from the database by the Social Security number (SSN) and name of the 
individual. The information in the database will be used to investigate 
and take appropriate action against individuals who may have knowingly 
made false or misleading statements, and for management information 
purposes. The configuration of a database in this manner constitutes a 
'system of records' under the Privacy Act.

B. Collection of Data

    The information that will be maintained in the SSA Administrative 
Sanctions Database may be obtained from the individuals suspected of 
knowingly making false or misleading statements and from other SSA 
systems of records, such as the Claims Folders System, maintaining 
information individuals provide when applying for benefits under SSA 
programs. Other information will be generated as a result of the 
investigations that will be conducted. The SSA Administrative Sanctions 
Database will maintain the following types of records:

    Information about the initial record setup: 
Identification of the SSA regional office (RO) and field office (FO) 
that initiated the record; identifying information about the suspect 
such as name, Social Security number (SSN), date of birth, and 
address; SSA program involved--title II or title XVI, or both; type 
of claim event--postentitlement or initial claim; information 
indicating whether the case is a sanctions case; date case referred 
to the SSA Office of the Inspector General (OIG);
    Information about the initial level sanctions 
determination: The following data will be input by FOs and ROs: 
(through intranet screens)--information indicating whether sanctions 
will be imposed or deferred, whether the FO office is subject to 
early information system review (EIS) or FO is no longer subject to 
EIS review;
    Information about immediate sanctions proposed: Data 
such as the following will be input by the FO or RO--information 
indicating whether a reconsideration was filed by the individual, 
the date of the reconsideration and the date a reconsideration 
decision was sent to the individual; if benefits were withheld, the 
amount withheld, date of the suspension, iteration (1st, 2nd, 3rd or 
3rd +) the dates sanctions began and ended, date sent for End-of-
Line review, if appropriate, and results of End-of-Line Review; if 
the individual requests a hearing, the date of the hearing, the 
hearing decision, date the hearing decision sent to the individual; 
if a decision is made to reinstate benefits, the date 60-day notice 
received in FO for EIS review, the date of input to end sanctions 
and the date sanctions are removed. If there is Appeals Council (AC) 
action, the date of the AC decision, the AC decision (``A'' for 
affirmed, ``R'' for reversed), and date the AC decision was sent to 
individual.
    Management Information: Data identifying savings to the 
trust fund, general revenue and the state, realized through the 
imposition of administrative sanctions and the amount of 
overpayments incurred by individuals who gave false or misleading 
statements for use in determining eligibility or benefit amount 
under title II or title XVI.
    Deferred Sanctions Proposed: Data such as the following 
will be input by the FO when deferred sanctions have been proposed. 
The data gathered is similar to but less extensive than cases where 
immediate sanctions are proposed. Most notably, we will gather 
appeals data but will not gather data on benefit withholding since 
that action will take place at a later date. The data gathered will 
indicate whether a reconsideration was filed, the date the 
reconsideration was filed, date the reconsideration decision was 
sent to the

[[Page 54596]]

individual, the reconsideration decision; whether a hearing request 
was filed, the date the hearing decision was sent to the 
beneficiary, and the hearing decision; and date sanctions removed. 
If there is Appeals Council (AC) action, the date of the AC 
decision, the AC decision (``A'' for affirmed, ``R'' for reversed), 
and date the AC decision was sent to the individual.
    Information developed by the SSA OIG: OIG case number; 
date referred for criminal prosecution, whether criminal prosecution 
was declined or accepted (``Y/N'' indicator), and date criminal 
prosecution declined or accepted; date referred for civil 
prosecution, whether civil prosecution was declined or accepted 
(``Y/N'' indicator), and date civil prosecution declined or 
accepted; date referred for civil monetary penalty (CMP), whether 
CMP declined (``Y/N'' indicator), and date CMP declined/CMP imposed; 
date returned to the SSA FO.

C. Privacy Act Exemptions for SSA Administrative Sanctions Database 
Records

    The information in this database constitutes material compiled for 
law enforcement purposes. Therefore, we propose to exempt records 
maintained in this proposed system of records from the requirements of 
the Privacy Act pursuant to 5 U.S.C. 552a(k)(2).

II. Proposed Routine Use Disclosures of Data Maintained in the 
Proposed SSA Administrative Sanctions Database

A. Proposed Routine Use Disclosures

1. Disclosure to the Office of the President for the Purpose of 
Responding to an Individual Pursuant to an Inquiry Received From That 
Individual or From a Third Party on His or Her Behalf
    We will disclose information under this routine use only in 
situations in which an individual may contact the Office of the 
President, seeking that office's assistance in an SSA matter on his or 
her behalf. Information would be disclosed when the Office of the 
President makes an inquiry and presents evidence that the office is 
acting on behalf of the individual whose record is requested.
2. Disclosure to a Congressional Office in Response to an Inquiry From 
That Office Made at the Request of the Subject of a Record
    We will disclose information under this routine use only in 
situations in which an individual may ask his her congressional 
representative to intercede in an SSA matter on his or her behalf. 
Information would be disclosed when the congressional representative 
makes an inquiry and presents evidence that he or she is acting on 
behalf of the individual whose record is requested.
3. Information May Be Disclosed 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
    Under certain Federal statutes, SSA is authorized to use the 
services of volunteers and participants in certain educational, 
training, employment and community service programs. Examples of such 
statutes and programs are: 5 U.S.C. 3111 regarding student volunteers 
and 42 U.S.C. 2753 regarding the College Work Study Program. We 
contemplate disclosing information under this routine use only when SSA 
uses the services of these individuals and they need access to 
information in this system to perform their assigned duties.
4. Disclosure to Contractors and Other Federal Agencies, as Necessary, 
for the Purpose of Assisting SSA in the Efficient Administration of its 
Programs
    We will disclose information under this routine use only in 
situations in which SSA may enter into a contractual agreement or 
similar agreement with a third party to assist in accomplishing an 
agency function relating to this system of records.
5. Nontax Return Information Which Is Not Restricted From Disclosure by 
federal Law May Be Disclosed to the General Services Administration 
(GSA) and the National Archives and Records Administration (NARA) under 
44 U.S.C. 2904 and 2906, as Amended by NARA Act of 1984, for the Use of 
Those Agencies in Conducting Records Management Studies
    The Administrator of GSA and the Archivist of NARA are charged by 
44 U.S.C. 2904 with promulgating standards, procedures and guidelines 
regarding records management and conducting records management studies. 
Section 2906 of that law, also amended by the NARA Act of 1984, 
provides that GSA and NARA are to have access to federal agencies' 
records and that agencies are to cooperate with GSA and NARA. In 
carrying out these responsibilities, it may be necessary for GSA and 
NARA to have access to this proposed system of records. In such 
instances, the routine use will facilitate disclosure.

B. Compatibility of Proposed Routine Uses

    The Privacy Act (5 U.S.C. 552a(b)(3) and our disclosure regulations 
(20 CFR Part 401) permit us to disclose information under a published 
routine use for a purpose which is compatible with the purpose for 
which we collected the information. Section 401.150(c) of the 
regulations permits us to disclose information under a routine use 
where necessary to assist in carrying out SSA programs. Section 401.120 
of the regulations provides that we will disclose information when a 
law specifically requires the disclosure. The proposed routine uses 
numbered 1-4 above will ensure efficient administration of the 
sanctions program; the disclosures that would be made under routine use 
numbered 5 is required by Federal law. Thus, all of the routine uses 
are appropriate and meet the relevant statutory and regulatory 
criteria.

III. Records Storage Medium and Safeguards for the Proposed SSA 
Administrative Sanctions Database

    We will maintain information about the administrative sanctions in 
electronic form, computer data systems, and paper form. Only authorized 
SSA personnel who have a need for the information in the performance of 
their official duties will be permitted access to the information.
    Security measures include the use of access codes to enter the 
computer systems that will maintain the data, and storage of the 
computerized records in secured areas that are accessible only to 
employees who require the information in performing their official 
duties. Any manually maintained records will be kept in locked cabinets 
or in otherwise secure areas. Also, all entrances and exits to SSA 
buildings and related facilities are patrolled by security guards. Any 
contractor personnel having access to data in the proposed system of 
records will be required to adhere to SSA rules concerning safeguards, 
access and use of the data. SSA and contractor personnel, if a 
contractor has involvement with the system of records, having access to 
the data on these systems will be informed of the criminal penalties of 
the Privacy Act for unauthorized access to or disclosure of information 
maintained in these systems. See 5 U.S.C. 552a(i)(1).

IV. Effect of the Proposed SSA Administrative Sanctions Database on 
the Rights of Individuals

    We will maintain in the SSA Administrative Sanctions Database only 
that information that is relevant to our investigation and disposition 
of cases involving administrative sanctions pursuant to section 1129A 
of the Act. We will afford individuals suspected of

[[Page 54597]]

knowingly making false statements all due process and other rights to 
which they are entitled. Thus, we do not anticipate that the proposed 
system of records will have an unwarranted adverse effect on the rights 
of individuals.

    Dated: August 28, 3000.
Kenneth S. Apfel,
Commissioner of Social Security.
09-60-0280

System Name:
    SSA Administrative Sanctions Database.

Security Classification:
    None.

System Location:
    Social Security Administration, New York Regional Office, 
Administrative Sanctions Coordinator, Room 4032, Federal Building, 26 
Federal Plaza, New York, NY 10278.

Categories of Individuals covered by the System:
    All individuals for title II and title XVI benefits who may have 
knowingly provided false or misleading statements for use in 
determining eligibility for or the amount of benefits under title II 
and title XVI.

Categories of records in the System:
    The following types of records are maintained in this system of 
records:

     Information about the initial record setup: 
Identification of the SSA regional office (RO) and field office (FO) 
that initiated the record; identifying information about the suspect 
such as name, Social Security number (SSN), date of birth, and 
address; SSA program involved--title II or title XVI, or both; type 
of claim event--postentitlement or initial claim; information 
indicating whether the case is a sanctions case; date case referred 
to the SSA Office of the Inspector General (OIG);
     Information about the initial level sanctions 
determination: The following data will be input by FOs and ROs: 
(through intranet screens)--information indicating whether sanctions 
will be imposed or deferred, whether the FO office is subject to 
early information system review (EIS) or FO is no longer subject to 
EIS review;
     Information about immediate sanctions proposed: Data 
such as the following will be input by the FO or RO--information 
indicating whether a reconsideration was filed by the individual, 
the date of the reconsideration and the date a reconsideration 
decision was sent to the individual; if benefits were withheld, the 
amount withheld, date of the suspension, iteration (1st, 2nd, 3rd or 
3rd +) the dates sanctions began and ended, date sent for End-of-
Line review, if appropriate, and results of End-of-Line Review; if 
the individual requests a hearing, the date of the hearing, the 
hearing decision, date the hearing decision sent to the individual; 
if a decision is made to reinstate benefits, the date 60 day notice 
received in FO for EIS review, the date of input to end sanctions 
and the date sanctions are removed. If there is Appeals Council (AC) 
action, the date of the AC decision, the AC decision (``A'' for 
affirmed, ``R'' for reversed), and date the AC decision was sent to 
individual.
     Management Information: Data identifying savings to the 
trust fund, general revenue and the state, realized through the 
imposition of administrative sanctions and the amount of 
overpayments incurred by individuals who gave false or misleading 
statements for use in determining eligibility or benefit amount 
under title II or title XVI.
     Deferred Sanctions Proposed: Data such as the following 
will be input by the FO when deferred sanctions have been proposed. 
The data gathered is similar to but less extensive than cases where 
immediate sanctions are proposed. Most notably, we will gather 
appeals data but will not gather data on benefit withholding since 
that action will take place at a later date. The data gathered will 
indicate whether a reconsideration was filed, the date the 
reconsideration was filed, date the reconsideration decision was 
sent to the individual, the reconsideration decision; whether a 
hearing request was filed, the date the hearing decision was sent to 
the beneficiary, and the hearing decision; and date sanctions 
removed. If there is Appeals Council (AC) action, the date of the AC 
decision, the AC decision (``A'' for affirmed, ``R'' for reversed), 
and the date the AC decision was sent to the individual.
     Information developed by the SSA OIG: OIG case number; 
date referred for administrative prosecution, whether such 
prosecution was declined or accepted (``Y/N'' indicator), and date 
such prosecution declined or accepted; date referred for civil 
prosecution, whether civil prosecution was declined or accepted 
(``Y/N'' indicator), and date civil prosecution declined or 
accepted; date referred for civil monetary penalty (CMP), whether 
CMP declined (``Y/N'' indicator), and date CMP declined/CMP imposed; 
date returned to the SSA FO.

Authority for maintenance of the system:

Section 1129A of the Social Security Act (42 U.S.C. 1320a-8).
Purpose(s):
    Information in this system of records will be used by SSA to 
investigate and take appropriate action against individuals suspected 
of knowingly providing false or misleading information for use in 
determining their right to benefits under Social Security title II Old-
Age, Survivors or Disability Insurance or title XVI Supplemental 
Security Income benefits. Instances where individuals are suspected of 
making false or misleading statements will be referred to the SSA 
Office of the Inspector General (OIG) for investigation and 
disposition. Information in the system of records will also be used to 
produce management information data and reports providing information 
such as:

     Number of potential sanctions cases.
     Average time from referral to return by OIG.
     Number of cases found to be not sanctionable.
     Number of cases prosecuted criminally.
     Number of cases prosecuted civilly.
     Number of cases where CMP was imposed.
     Number of cases sanctioned (available by Region and FO 
code).
     Number of reconsiderations filed.
     Number of reconsiderations affirmations.
     Number of reconsiderations reversals.
     Number sent for consistency review.
     Number of hearings filed.
     Number of hearing affirmations.
     Number of hearing reversals.
     Amount of benefits withheld--title II and title XVI.
     Amount of overpayments incurred--title II and title 
XVI.

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

    Disclosures may be made for routine uses as indicated below:
    1. Disclosure to the Office of the President for the purpose of 
responding to an individual pursuant to an inquiry received from 
that individual or from a third party on his or her behalf.
    2. Disclosure to a congressional office in response to an 
inquiry from that office made at the request of the subject of a 
record.
    3. Information may be disclosed 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.
    4. Disclosure to contractors and other Federal agencies, as 
necessary, for the purpose of assisting SSA in the efficient 
administration of its programs.
    5. Nontax return information which is not restricted from 
disclosure by federal law may be disclosed to the General Services 
Administration (GSA) and the National Archives and Records 
Administration (NARA) under 44 U.S.C. 2904 and 2906, as amended by 
NARA Act of 1984, for the use of those agencies in conducting 
records management studies.

Policies and practices for storing, retrieving, accessing, retaining 
and disposing of records in the system:

Storage:

    Data are stored in electronic and paper form.

[[Page 54598]]

Retrievability:

    Records in this system are by SSN and name of the individual.

Safeguards:

    This system of records is a database that is accessible via an 
SSA intranet website. Security measures include the use of access 
codes to enter the database, and storage of the electronic records 
in secured areas, which are accessible only to employees who require 
the information in performing their official duties. The paper 
records that result from the electronic site are kept in locked 
cabinets or in otherwise secure areas. All SSA employees, including 
contractor personnel, having access to data in the system of records 
are required to adhere to SSA rules concerning safeguards, access, 
and use of the data. They also are informed of the criminal 
penalties of the Privacy Act for unauthorized access to or 
disclosure of information maintained in this system of records.

Retention and disposal:

    Claims development and tracking and management information 
maintained in this system are retained indefinitely or when it is 
determined that they are no longer needed. Means of disposal is 
appropriate to storage medium (e.g., deletion of individual records 
from the electronic site when appropriate or shedding of paper 
records that are produced from the system).

System manager and address:

    Regional Commissioner, Social Security Administration, New York 
Regional Office, Room 4032, Federal Building, 26 Federal Plaza, New 
York, N.Y. 10278

Notification procedure:

    Per 5 U.S.C. 552a(k)(2) the Agency is exempt from publishing 
procedures whereby an individual can be notified at his/her request 
if the system of records contains a record pertaining to him/her. 
These procedures are in accordance with SSA Regulations (20 CFR 
401.85).

Record access procedures:

    Per 5 U.S.C. 552a(k)(2) the Agency is exempt from publishing 
procedures whereby an individual can be notified at his/her request 
how to gain access to any record pertaining to him/her contained in 
this system of records. These procedures are in accordance with SSA 
Regulations (20 CFR 401.85).

Contesting record procedures:

    Per 5 U.S.C. 552a(k)(2), records in this system are exempt from 
access by the individual named in this system of records. These 
procedures are in accordance with SSA Regulations (20 CFR 401.85).

Record source categories:

    Per 5 U.S.C. 552a(k)(2), the Agency is exempt from publishing 
the record sources. These procedures are in accordance with SSA 
Regulations (20 CFR 401.85).

Systems exempted from certain provisions of the Privacy Act:

    Exemption of this system to the access provisions is claimed 
under 5 U.S.C. 552a(k)(2) inasmuch as these records are 
investigatory materials compiled for law enforcement purposes in 
anticipation of a administrative proceeding. These procedures are in 
accordance with SSA Regulations (20 CFR 401.85).
[FR Doc. 00-23015 Filed 9-7-00; 8:45 am]
BILLING CODE 4190-11-U