[Federal Register Volume 67, Number 212 (Friday, November 1, 2002)]
[Notices]
[Pages 66712-66715]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-27876]


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DEPARTMENT OF VETERANS AFFAIRS


Privacy Act of 1974; System of Records

AGENCY: Department of Veterans Affairs (VA).

ACTION: Notice of establishment of new system of records.

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SUMMARY: The Privacy Act of 1974 (5 U.S.C. 552(e) (4)) requires that 
all agencies publish in the Federal Register a notice of the existence 
and character of their systems of records. Notice is hereby given that 
the Department of Veterans Affairs (VA) is establishing a new system of 
records entitled ``Employee Incentive Scholarship Program--VA'' 
(110VA10).

DATES: Comments on the establishment of this system of records must be 
received no later than December 2, 2002. If no public comment is 
received, the new system will become effective December 2, 2002.

ADDRESSES: You may mail or hand-deliver written comments concerning the 
proposed new system of records to the Office of Regulations Management 
(02D), Department of Veterans Affairs, 810 Vermont Avenue, NW., 
Washington, DC 20420; or fax comments to (202) 273-9289; or email 
comments to [email protected]. All relevant material received 
before December 2, 2002 will be considered. Comments will be available 
for public inspection at the above address in the Office of Regulations 
Management, Room 1158, between the hours of 8 a.m. and 4:30 p.m., 
Monday through Friday (except holidays).

FOR FURTHER INFORMATION CONTACT: Veterans Health Administration (VHA) 
Privacy Act Officer, Department of Veterans Affairs, 810 Vermont 
Avenue, NW., Washington, DC 20420, telephone (727) 320-1839.

SUPPLEMENTARY INFORMATION:

I. Description of Proposed System of Records

    The Employee Incentive Scholarship Program (EISP) allows VA to 
award scholarships to employees pursuing degrees or training leading to 
appointment or retention in the following health professions: 
physician, dentist, podiatrist, pharmacist, licensed practical/
vocational nurse, expanded-function dental auxiliary, registered nurse, 
certified registered nurse anesthetist, physician assistant, 
optometrist, physical therapist, occupational therapist, certified 
respiratory therapy technician, and registered respiratory therapist. 
The purpose of the program is to help VA meet its needs for qualified 
healthcare staff.
    The Employee Incentive Scholarship Program--VA (110VA10) system of 
records contains personal identification information related to the 
application material, to award processes, to employment status, and to 
obligated service such as name, address, Social Security number, 
employing facility name, job title, grade, education level, degree 
sought, award amounts, obligated service incurred, and name and address 
of the educational institution. It also contains individual information 
about applicants who have been denied scholarships, program 
participants who have been terminated from VA employment, program 
participants who have breached their program contracts and any amount 
of indebtedness arising from a scholarship and owed back to VA. 
Additionally, it may contain information about why an applicant 
declined to accept a scholarship if the applicant furnished such 
information. Since applicants typically are denied scholarships because 
they do not meet the eligibility requirements to participate in the 
program, the specific nature of an applicant's ineligibility would be 
another element of information contained in the system of records. 
Scholarship recipients may request that a payment or service obligation 
be waived or suspended if circumstances beyond their control make it 
impossible to comply with the terms and conditions of the educational 
assistance program. The system of records would include information 
about the specific nature of the request and the related decision.
    Any information in this system may be used by local VA supervisory 
officials and program coordinators to ensure that individual data in 
the system of records is accurate and up to date and that award 
recipients are in compliance with the terms of the scholarship program 
contract. Data about individual award recipients may change (e.g., 
adjustments to academic course load) and could impact certain terms of 
their scholarships such as the amounts of the awards and/or the 
beginning and ending dates of their periods of obligated service. Data 
changes may also impact assessments of the effectiveness of the 
scholarship

[[Page 66713]]

program. Accordingly, local supervisory officials and program 
coordinators must periodically review individual data in the system of 
records to ensure its accuracy.
    The information in this system of records is maintained in 
electronic and hard copy format and is periodically updated through 
recurring reports, provided by local VA facilities, about the progress 
of their program participants. This information is necessary to 
effectively administer the scholarship program. It is used to determine 
and document individual applicants' initial eligibility for scholarship 
awards, calculate the service commitments for scholarship recipients, 
ensure program financial accountability which means that award amounts 
are consistent with applicable law, regulations and policy, monitor 
individual applicant educational progress, monitor the employment 
status of scholarship recipients during their periods of obligated 
service, and evaluate and report program results and effectiveness. The 
information would be used to determine the financial liability of 
individuals who breach their EISP contracts.

II. Proposed Routine Use Disclosures of Data in the System

    We are proposing to establish the following routine use disclosures 
of information which will be maintained in the system:
    [sbull] Any information in this system that is necessary to verify 
accuracy and completeness of the application information may be 
disclosed to educational institutions and other relevant organizations 
or individuals.
    Employees must meet certain requirements to be eligible to 
participate in the scholarship program. For example, the applicants 
must have been formally accepted to or enrolled in authorized education 
or training programs as of the date that they submit their official 
applications for scholarship awards. Some schools may offer students 
who do not meet all of the requirements for formal (unconditional) 
acceptances into their academic programs (typically, Grade Point 
Average (GPA) or standardized test scores that are below established 
cutoff points), conditional acceptances. These students may be granted 
formal or unconditional acceptances once they meet certain requirements 
such as completing specified coursework and earning a minimum GPA. 
Students who have been conditionally or informally accepted into an 
academic program are not eligible to participate in the EISP. VA may 
need to disclose applicant information in order to verify that 
candidates for scholarship awards meet applicable program requirements.
    [sbull] Any information in this system may be disclosed to a 
Federal agency in order to determine if an applicant has an obligation 
for service under another Federal program, thus rendering the applicant 
ineligible for a VA Employee Incentive Scholarship Program Award.
    Scholarship program participants are required to serve a period of 
obligated service after completing their VA-sponsored courses of 
education or training. Employees are ineligible to receive scholarships 
if their VA periods of obligated service conflict with obligations to 
perform service under any other Federal educational program(s). VA may 
need to disclose applicant information to other Federal agencies to 
verify that employees do not have obligations to perform service that 
would render them ineligible to participate in the scholarship program.
    [sbull] Any information in the system may be used to evaluate and 
report program results and effectiveness to appropriate officials 
including members of Congress on a routine and ad hoc basis.
    The purpose of the scholarship program is to assist in meeting the 
staffing needs of VHA for health professional occupations for which 
recruitment or retention of qualified personnel is difficult. Top-level 
VA officials and Congress must have access to information from the 
system to assess how effectively the program accomplishes its purpose 
and to support decisions to continue, to modify or curtail its use.
    [sbull] The record of an individual who is covered by this system 
may be disclosed to a member of Congress or staff person acting for the 
member when the member or staff person requests the record on behalf of 
and at the request of that individual.
    Individuals sometimes request the help of a member of Congress in 
resolving some issues relating to a matter before VA. The member of 
Congress then writes VA, and VA must be able to give sufficient 
information to be responsive to the inquiry.
    [sbull] Disclosure of information may be made to the National 
Archives and Record Administration (NARA) in records management 
inspections conducted under authority of Title 44 United States Code.
    NARA is responsible for archiving old records no longer actively 
used but which may be appropriate for preservation; they are 
responsible in general for the physical maintenance of the Federal 
government's records. VA must be able to turn records over to this 
agency in order to determine the proper disposition of such records.
    [sbull] Disclosure of information to the Federal Labor Relations 
Authority (FLRA) (including its General Counsel) when requested in 
connection with the investigation and resolution of allegations of 
unfair labor practices, in connection with the resolution of exceptions 
to arbitrator awards when a question of material fact is raised, in 
connection with matters before the Federal Service Impasses Panel, and 
to investigate representation petitions and conduct or supervise 
representation elections.
    The release of information to FLRA from this Privacy Act system of 
records is necessary to comply with the statutory mandate under which 
FLRA operates.
    [sbull] Disclosure may be made to officials of labor organizations 
recognized under 5 U.S.C. chapter 71 when relevant and necessary to 
their duties of exclusive representation concerning personnel policies, 
practices, and matters affecting working conditions.
    [sbull] Disclosure may be made to the VA-appointed representative 
of an employee, including all notices, determinations, decisions, or 
other written communications issued to the employee in connection with 
an examination ordered by VA under medical evaluation (formerly 
fitness-for-duty) examination procedures or Department-filed disability 
retirement procedures.
    [sbull] Disclosure may be made to officials of the Merit Systems 
Protection Board, including the Office of the Special Counsel, when 
requested in connection with appeals, special studies of the civil 
service and other merit systems, review of rules and regulations, 
investigation of alleged or possible prohibited personnel practices, 
and such other functions, promulgated in 5 U.S.C. 1205 and 1206, or as 
may be authorized by law.
    [sbull] Disclosure may be made to the Equal Employment Opportunity 
Commission when requested in connection with investigations of alleged 
or possible discrimination practices, examination of Federal 
affirmative employment programs, compliance with the Uniform Guidelines 
of Employee Selection Procedures, or other functions vested in the 
Commission by the President's Reorganization Plan No. 1 of 1978.

III. Compatibility of the Proposed Routine Uses

    The Privacy Act permits VA to disclose information about 
individuals without their consent for a routine use when the 
information will be used for

[[Page 66714]]

a purpose that is compatible with the purpose for which we collected 
the information. In all of the routine use disclosures described above, 
either the recipient of the information will use the information in 
connection with a matter relating to one of VA's programs, will use the 
information to provide a benefit to VA, or disclosure is required by 
law.
    The notice of intent to publish and an advance copy of the system 
notice have been sent to the appropriate Congressional committees and 
to the Director of the Office of Management and Budget (OMB) as 
required by 5 U.S.C. 552a(r) (Privacy Act) and guidelines issued by OMB 
(65 FR 77677), December 12, 2000.

    Approved: October 21, 2002.
Anthony J. Principi,
Secretary of Veterans Affairs.
110VA10

SYSTEM NAME:
    Employee Incentive Scholarship Program (EISP)-VA.

SYSTEM LOCATION:
    Active records will be maintained at the Health Care Staff 
Development and Retention Office (HCSDRO/10A2D), Veterans Health 
Administration (VHA), Department of Veterans Affairs (VA), 1555 Poydras 
Street, Suite 1971, New Orleans, Louisiana 70112; the Austin Automation 
Center (AAC), Department of Veterans Affairs, 1615 East Woodward 
Street, Austin, Texas 78772; and the VA healthcare facilities and VISN 
offices where scholarship recipients are employed. Address locations 
for VA healthcare facilities are listed in VA Appendix 1 of the 
Biennial Publication of Privacy Act Issuances. Complete records will be 
maintained only at the HCSDRO address.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    VA employees who apply for and are denied or granted educational 
assistance awards under the provisions of the VA Employee Incentive 
Scholarship Program (EISP) in a field leading to appointment or 
retention in a position listed in 38 U.S.C., Section 7401.

CATEGORIES OF RECORDS IN THE SYSTEM:
    Records (or information contained in records) in this system may 
include personal identification information related to the application 
material, to award processes, to employment, to obligated service, and 
to requests for waivers or suspensions of obligated service or 
financial indebtedness to VA such as (1) name, (2) employing facility 
number, (3) telephone number(s), (4) Social Security number, (5) award 
amount, (6) obligated service incurred, and (7) name and address of the 
educational institution; or any amount of indebtedness (accounts 
receivable) arising from the scholarship and owed to VA. The 
application for an EISP award includes the applicant's full name, 
employing facility number, home and work telephone numbers, Social 
Security number, job title, current education level, degree sought, 
description of the academic program covered by the scholarship, the 
starting and completion dates of the employee's academic program, the 
name and address of the academic institution, the number of credits in 
the student's academic program plan and the cost of the education 
covered by the academic program plan. Records may include memoranda 
submitted by the employees, calculations for the service obligations, 
copies of letters and/or memoranda from employees making the requests 
and in correspondence to employees and appropriate local program 
officials delineating the decisions on such requests.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    Title 38, U.S.C., Sections 501, 503, 7451, 7452, and 7431-7440.

Purpose(s):
    The records and information may be used for determining and 
documenting individual applicant eligibility for scholarship awards, 
calculating the service commitments for scholarship recipients, 
ensuring program financial accountability, monitoring individual 
applicant educational progress, monitoring the employment status of 
scholarship recipients during their periods of obligated service, 
terminating the employee from the program, and evaluating and reporting 
program results and effectiveness. The information would be used to 
determine the financial liability of individuals who breach their EISP 
contracts.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES:
    1. Disclosure of any information in this system that is necessary 
to verify authenticity and completeness of the application may be made 
to educational institutions and other relevant organizations or 
individuals.
    2. Disclosure of any information in this system may be made to a 
Federal agency in order to determine if an applicant has an obligation 
for service under another Federal program, thus rendering the applicant 
ineligible for a VA Employee Incentive Scholarship Program Award.
    3. Disclosure of any information in this system may be made to the 
local supervisory officials and program coordinators to ensure that 
individual data in the system of records is up to date and that award 
recipients are in compliance with the terms of the scholarship program 
contract.
    4. Any information in the system may be used to evaluate and report 
program results and effectiveness to appropriate officials including 
members of Congress on a routine and ad hoc basis.
    5. Disclosure of information in this system may be made to a member 
of Congress or staff person acting for the member when the member or 
staff person requests the records on behalf of and at the request of 
that individual.
    6. Disclosure of information may be made to the National Archives 
and Record Administration (NARA) in records management inspections 
conducted under authority of Title 44, United States Code.
    7. Disclosure of information to the FLRA (including its General 
Counsel) when requested in connection with the investigation and 
resolution of allegations of unfair labor practices, in connection with 
the resolution of exceptions to arbitrator awards when a question of 
material fact is raised, in connection with matters before the Federal 
Service Impasses Panel, and to investigate representation petitions and 
conduct or supervise representation elections.
    8. Disclosure may be made to officials of labor organizations 
recognized under 5 U.S.C. chapter 71 when relevant and necessary to 
their duties of exclusive representation concerning personnel policies, 
practices, and matters affecting working conditions.
    9. Disclosure may be made to officials of the Merit Systems 
Protection Board, including the Office of the Special Counsel, when 
requested in connection with appeals, special studies of the civil 
service and other merit systems, review of rules and regulations, 
investigation of alleged or possible prohibited personnel practices, 
and such other functions, promulgated in 5 U.S.C. 1205 and 1206, or as 
may be authorized by law.
    10. Disclosure may be made to the Equal Employment Opportunity 
Commission when requested in connection with investigations of alleged 
or possible discrimination practices, examination of Federal 
affirmative employment programs, compliance with the Uniform Guidelines 
of Employee Selection Procedures, or other functions vested in the 
Commission by the President's Reorganization Plan No. 1 of 1978.

[[Page 66715]]

Disclosure to consumer reporting agencies:
    Pursuant to 5 U.S.C. 552a(b)(12), VA may disclose records from this 
system to consumer reporting agencies as defined in the Fair Credit 
Reporting Act (15 U.S.C. 1681a(f)) or the Federal Claims Collection Act 
of 1966 (31 U.S.C. 3701(a)(3)).

Policies and practices for storing, retrieving, accessing, retaining, 
and disposing of records in the system:
Storage:
    Records are maintained on paper, electronic media and computer 
printouts.

Retrievability:
    Records are retrieved by use of the award number or an equivalent 
participant account number assigned by HCSDRO, social security number 
and the name of the individual.

Safeguards:
    Access to the basic file in HCSDRO is restricted to authorized VA 
employees and vendors. Access to the office spaces where electronic 
media is maintained within HCSDRO is further restricted to specifically 
authorized employees and is protected by contracted building security 
services. Records (typically computer printouts) at HCSDRO will be kept 
in locked files and made available only to authorized personnel on a 
need-to-know basis. During non-working hours the file is locked and the 
building is protected by contracted building security services. Records 
stored on electronic media are maintained on a VA-approved and managed, 
password-protected, secure local area network (LAN) located within 
HCSDRO office spaces and safeguarded as described above. Records stored 
on electronic media at Veterans Integrated Service Network (VISN) 
Offices, VA healthcare facilities, and the AAC in Austin, Texas are 
provided equivalent safeguards subject to local policies mandating 
protection of information subject to federal safeguards.

Retention and disposal:
    Records will be maintained and disposed of in accordance with 
records disposition authority approved by the Archivist of the United 
States.

System manager(s) and address:
    Director, Health Care Staff Development and Retention Office 
(10A2D), Veterans Health Administration, Department of Veterans 
Affairs, 1555 Poydras Street, Suite 1971, New Orleans, Louisiana 70112.

Notification procedure:
    Any individual who wishes to determine whether a record is being 
maintained in this system under his or her name or other personal 
identifier, or wants to determine the contents of such records, should 
submit a written request or apply in person to the Director, Health 
Care Staff Development and Retention Office, Veterans Health 
Administration, Department of Veterans Affairs, 1555 Poydras Street, 
Suite 1971, New Orleans, Louisiana 70112.

Record access procedures:
    Individuals seeking information regarding access to and contesting 
of VA records in this system may write, call or visit the Director, 
Health Care Staff Development and Retention Office (10A2D), Veterans 
Health Administration, Department of Veterans Affairs, 1555 Poydras 
Street, Suite 1971, New Orleans, Louisiana 70112. The telephone number 
is (504) 589-5267.

Contesting record procedures:
    (See Records Access Procedures above.)

Record source categories:
    Information contained in the records is obtained from the 
individual, references given in application material, educational 
institutions, VA medical facilities, the VA AAC, other Federal 
agencies, State agencies and consumer reporting agencies.

[FR Doc. 02-27876 Filed 10-31-02; 8:45 am]
BILLING CODE 8320-01-P