[Federal Register Volume 66, Number 37 (Friday, February 23, 2001)]
[Notices]
[Pages 11279-11281]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-4480]


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DEPARTMENT OF DEFENSE

Department of the Navy


Privacy Act of 1974; System of Records

AGENCY: Department of the Navy, DoD.

ACTION: Notice to alter a system of records.

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SUMMARY: The Department of the Navy proposes to alter a system of 
records notice in its inventory of record systems subject to the 
Privacy Act of 1974 (5 U.S.C. 552a), as amended. The routine uses being 
added will permit the collection of debts owed to the U.S. Government.

DATES: This action will be effective on March 26, 2001 unless comments 
are received that would result in a contrary determination.

ADDRESSES: Send comments to the Department of the Navy, PA/FOIA Policy 
Branch, Chief of Naval Operations (N09B30), 2000 Navy Pentagon, 
Washington, DC 20350-2000.

FOR FURTHER INFORMATION CONTACT: Mrs. Doris Lama at (202) 685-6545 or 
DSN 325-6545.

SUPPLEMENTARY INFORMATION: The Department of the Navy's record system 
notices for records systems subject to the Privacy Act of 1974 (5 
U.S.C. 552a), as amended, have been published in the Federal Register 
and are available from the address above.
    The proposed system report, as required by 5 U.S.C. 552a(r) of the 
Privacy Act was submitted on February 14, 2001, to the House Committee 
on Government Reform, the Senate Committee on Governmental Affairs, and 
the Office of Management and Budget (OMB) pursuant to paragraph 4c of 
Appendix I to OMB Circular No. A-130, `Federal Agency Responsibilities 
for Maintaining Records About

[[Page 11280]]

Individuals,' dated February 8, 1996, (61 FR 6427, February 20, 1996).

    Dated: February 16, 2001.
L.M. Bynum,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
N04066-1

System Name:
    Bad Checks and Indebtedness Lists (May 22, 1996, 61 FR 25637).
* * * * *

Categories of Records in the System:
    Delete entry and replace with ``Copy of application, monthly 
statements, dunning notices, DD139s, correspondence from both AAFES and 
the collection contractor; Bad Check System (including: Returned Check 
Ledger; Returned Check Report; copies of returned checks; bank advice 
relative to the returned check(s); correspondence relative to attempt 
by the Navy exchange to locate the patron and/or obtain payment; a 
printed report of names of those persons who have not made full 
restitution promptly, or who have had one or more checks returned 
through their own fault or negligence); Accounts Receivable Ledger, 
detailed by patron; C.O.D. Sales Ledger; NEXCARD data base; MILSTAR, 
the all-service credit card; and TOP (Treasury Offset program) 
accounts.''

Authority for Maintenance of the System:
    Delete entry and replace with ``5 U.S.C. 301, Departmental 
Regulations; 10 U.S.C. 6011; 31 CFR 285.11, Administrative Wage 
Garnishment; Federal Claims Collection Act of 1966 (Pub.L. 89-508) and 
Debt Collection Act of 1982 (Pub.L. 97-365) as amended by the Debt 
Collection Improvement Act of 1996 (Pub.L. 104-134, section 31001; and 
E.O. 9397 (SSN).''

Purpose(s):
    At the end of the first paragraph, add ``and to collect 
indebtedness.'' Add a new paragraph ``Records may also be used by the 
Army and Air Force Exchange Service (AAFES) or its contractor for the 
purpose of recouping fees.''

Routine Uses of Records maintained in the System, Including Categories 
of Users and the Purposes of Such Uses:
    Add two new paragraphs ``To any State and local governmental agency 
that employs the services of others and that pays their wages or 
salaries, where the employee owes a delinquent non-tax debt to the 
United States for the purpose of garnishment.
    To the Department of the Treasury, Financial Management Service, 
for the purpose of collecting delinquent debts owed to the U.S. 
Government via administrative offset.''
* * * * *

Retention and Disposal:
    Delete entry and replace with ``Records are kept for ten years and 
then destroyed. NEXCARD customer master records are saved daily for one 
month after which they become part of the monthly master files which 
are saved for a year. The administrator of the NEXCARD retains and 
stores the year-end master files indefinitely.''
* * * * *

Record Source Categories:
    Delete entry and replace with ``The individual; the bank involved; 
activity sales records; Internal Revenue Service; credit bureaus; AAFES 
and/or their contractor; and the Defense Manpower Data Center.''
* * * * *
N04066-1

System Name:
    Bad Checks and Indebtedness Lists.

System Location:
    Navy Exchange Service Command, 3280 Virginia Beach Boulevard, 
Virginia Beach, VA 23452-5724 (for all Navy exchanges).

Categories of Individuals Covered by the System:
    Patrons of Navy exchanges who have passed bad checks; recruits who 
have open accounts with Navy exchanges; patrons who have made C.O.D. 
mail order transactions and those patrons who make authorized charge or 
credit purchases where their accounts are maintained on the basis of an 
identifying particular such as name and/or Social Security Number; 
includes all holders of NEXCARDs.

Categories of Records in the System:
    Copy of application, monthly statements, dunning notices, DD139s, 
correspondence from both AAFES and the collection contractor; Bad Check 
System (including: Returned Check Ledger; Returned Check Report; copies 
of returned checks; bank advice relative to the returned check(s); 
correspondence relative to attempt by the Navy exchange to locate the 
patron and/or obtain payment; a printed report of names of those 
persons who have not made full restitution promptly, or who have had 
one or more checks returned through their own fault or negligence); 
Accounts Receivable Ledger, detailed by patron; C.O.D. Sales Ledger; 
NEXCARD data base; MILSTAR, the all-service credit card; and TOP 
(Treasury Offset program) accounts.

Authority for Maintenance of the System:
    5 U.S.C. 301, Departmental Regulations; 10 U.S.C. 6011; 31 CFR 
285.11, Administrative Wage Garnishment; Federal Claims Collection Act 
of 1966 (Pub.L. 89-508) and Debt Collection Act of 1982 (Pub.L. 97-
365); and E.O. 9397 (SSN).

Purpose(s):
    To maintain an automated tracking and accounting system for 
individuals indebted to the Department of the Navy and to collect 
indebtedness.
    Records in this system are subject to use in approved computer 
matching programs authorized under the Privacy Act of 1974, as amended, 
for debt collection purposes.
    Records may also be used by the Army and Air Force Exchange Service 
(AAFES) or its contractor for the purpose of recouping fees.

Routine Uses of Records Maintained in the System, Including Categories 
of Users and the Purposes of Such Uses:
    In addition to those disclosures generally permitted under 5 U.S.C. 
552a(b) of the Privacy Act, these records or information contained 
therein may specifically be disclosed outside the DoD as a routine use 
pursuant to 5 U.S.C. 552a(b)(3) as follows:
    To a commercial credit reporting agency for the purpose of either 
adding to a credit history file or obtaining a credit history file for 
use in the administration of debt collection.
    To a debt collection agency for the purpose of collection services 
to recover indebtedness owed to the Department of the Navy.
    To the Internal Revenue Service (IRS) to obtain the mailing address 
of a taxpayer for the purpose of locating such taxpayer to collect or 
to compromise a Federal claim by Navy against the tax payer pursuant to 
26 U.S.C. 6103(m)(2) and in accordance with 31 U.S.C. 3711, 3217, and 
3718.
    To any State and local governmental agency that employs the 
services of others and that pays their wages or salaries, where the 
employee owes a delinquent non-tax debt to the United States for the 
purpose of garnishment.
    To the Department of the Treasury, Financial Management Service, 
for the purpose of collecting delinquent debts owed to the U.S. 
Government via administrative offset.

    Note: Redisclosure of a mailing address from the IRS may be made 
only for the purpose of debt collection, including to a debt 
collection agency in order to facilitate the collection or 
compromise of a Federal

[[Page 11281]]

claim under the Debt Collection Act of 1982, except that a mailing 
address to a consumer reporting agency is for the limited purpose of 
obtaining a commercial credit report on the particular taxpayer. Any 
such address information obtained from the IRS will not be used or 
shared for any other Navy purpose or disclosed to another Federal, 
state, or local agency which seeks to locate the same individual for 
its own debt collection purpose.

    The DoD `Blanket Routine Uses' that appear at the beginning of the 
Navy's compilation of systems notices also apply to this system.

Disclosure to Consumer Reporting Agencies:
    Disclosure pursuant to 5 U.S.C. 552a(b)(12) may be made from this 
system to consumer reporting agencies as defined in the Fair Credit 
Reporting Act of 1966 (15 U.S.C. 1681a(f)) or the Federal Claims 
Collection Act of 1966 (31 U.S.C. 3701(a)(3)).
    The disclosure is limited to information necessary to establish the 
identity of the individual, including name, address, and taxpayer 
identification number (Social Security Number); the amount, status, and 
history of the claim; and the agency or program under which the claim 
arose for the sole purpose of allowing the consumer reporting agency to 
prepare a commercial credit report.

Policies and Practices for Storing, Retrieving, Accessing, Retaining, 
and Disposing of Records in the System:
Storage:
    Mainframe magnetic tapes, disk drives, printed reports, file 
folders, and PC hard and floppy disks.

Retrievability:
    Name and Social Security Number.

Safeguards:
    Locked file cabinets, supervised office space, supervised computer 
tape library which is accessible only through the data center, entry to 
which is controlled by a `cardpad' security system, for which only 
authorized personnel are given the access code. PC entry into the 
system may only be made through individual passwords.

Retention and Disposal:
    Records are kept for ten years and then destroyed. NEXCARD customer 
master records are saved daily for one month after which they become 
part of the monthly master files which are saved for a year. The 
administrator of the NEXCARD retains and stores the year-end master 
files indefinitely.

System Manager(s) and Address:
    Policy Official: Commander, Navy Exchange Service Command, 3280 
Virginia Beach Boulevard, Virginia Beach, VA 23452-5724. Record Holder: 
Treasurer, Navy Exchange Service Command, 3280 Virginia Beach 
Boulevard, Virginia Beach, VA 23452-5724 (for Navy exchanges).

Notification Procedure:
    Individuals seeking to determine whether this system of records 
contains information about themselves should address written inquiries 
to the Commander, Navy Exchange Service Command, 3280 Virginia Beach 
Boulevard, Virginia Beach, VA 23452-5724.
    In the initial inquiry, the requester must provide full name, 
Social Security Number, and the activity where they had their dealings. 
A list of other offices the requester may visit will be provided after 
initial contact is made at the office listed above. At the time of a 
personal visit, requesters must provide proof of identity containing 
the requester's signature.

Record Access Procedures:
    Individuals seeking access to records about themselves should 
address written inquiries to the Commander, Navy Exchange Service 
Command, 3280 Virginia Beach Boulevard, Virginia Beach, VA 23452-5724.
    In the initial inquiry, the requester must provide full name, 
Social Security Number, and the activity where they had their dealings. 
A list of other offices the requester may visit will be provided after 
initial contact is made at the office listed above. At the time of a 
personal visit, requesters must provide proof of identity containing 
the requester's signature.

Contesting Record Procedures:
    The Navy's rules for accessing records, and for contesting contents 
and appealing initial agency determinations are published in Secretary 
of the Navy Instruction 5211.5; 32 CFR part 701; or may be obtained 
from the system manager.

Record Source Categories:
    The individual; the bank involved; activity sales records; Internal 
Revenue Service; credit bureaus; and the Defense Manpower Data Center.

Exemptions Claimed for the System:
    None.

[FR Doc. 01-4480 Filed 2-22-01; 8:45 am]
BILLING CODE 5001-10-U