[Federal Register Volume 71, Number 201 (Wednesday, October 18, 2006)]
[Notices]
[Pages 61512-61515]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-17453]


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POSTAL SERVICE


Privacy Act of 1974, Computer Matching Program--Postal Service 
and State Agencies

AGENCY: Postal Service.

ACTION: Notice of Computer Matching Program--Postal Service and states 
maintaining public sex offender registries.

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[[Page 61513]]

SUMMARY: The Postal Service plans to conduct an ongoing matching 
program to identify any current Postal Service employees who are 
required by state law to register on a state's public registry of sex 
offenders. State registries contain information about individuals who 
are statutorily required to register, having committed sexually-violent 
offenses against adults or children, certain other crimes against 
victims who are minors, or other comparable offenses. The Postal 
Service is undertaking this initiative to ascertain the suitability of 
individuals for certain positions or employment. The Postal Service 
will compare its payroll database for employees working in 
participating states against public records contained in the state sex 
offender registries.

DATES: The matching program will become effective no sooner than 30 
days after notice of the matching program is sent to Congress and the 
Office of Management and Budget (OMB). Agreements with individual 
states will continue for 18 months from the effective date and may be 
extended for a period of time, up to 12 months, if certain conditions 
are met.

ADDRESSES: Written comments on this proposal should be mailed or 
delivered to the Records Office, Postal Service, 475 L'Enfant Plaza, 
SW., Room 5846, Washington, DC 20260-5353. Copies of all written 
comments will be available at the above address for public inspection 
and photocopying between 8 a.m. and 4 p.m., Monday through Friday.

FOR FURTHER INFORMATION CONTACT: Jane Eyre at 202-268-2608.

SUPPLEMENTARY INFORMATION: The Postal Service seeks to provide the 
public with accurate and efficient mail delivery to the more than 144 
million businesses and residences in this country. Given the public 
nature of the Postal Service, published standards of conduct for Postal 
Service employees prohibit any employee from engaging in criminal, 
dishonest, or similar prejudicial conduct. The Postal Service plans to 
participate as the recipient agency in computer matches of current 
Postal Service employees who have been required as a matter of law to 
register on state sexual offender public registries. After extensively 
verifying the accuracy of the information, the Postal Service will use 
the information to determine whether the reported offenses may impact 
on an individual's suitability for certain positions or employment. The 
Postal Service will analyze each occurrence on a case-by-case basis to 
determine the appropriate action to take. In this regard, the Postal 
Service will consider the seriousness of the offense, the date of the 
offense, and the nature of the employee's position with the Postal 
Service.
    The only data to be used in the match is public information, from 
both the Postal Service and the state agencies. The Postal Service will 
extract public information, including employees' name and work 
location, from its payroll database. This information is public 
information in accordance with Handbook AS-353, Guide to Privacy and 
Freedom of Information Act, section 5-2b(3) (available at www.usps.com/privacyoffice), and the Postal Service considers such data to be 
subject to disclosure requirements under the Freedom of Information 
Act. The data will be matched against participating state sexual 
offender registries, which are posted on various state Web sites for 
the public.
    The Postal Service will take extensive efforts to ensure that the 
data is accurate. Postal inspectors will review the match report in 
order to verify that the person identified in the state sexual offender 
public registry is in fact a Postal Service employee. A postal 
inspector will then determine whether the person is properly included 
on the public registry by reviewing the relevant facts about the 
offense from information furnished by relevant law enforcement 
agencies, such as the arresting agency. The postal inspector will refer 
instances where the employee failed to provide any required notice of 
the offense to Postal Service management, or other instances considered 
employee misconduct, to the Office of Inspector General (OIG). The 
inspector or OIG special agent will prepare an investigative memorandum 
or report of investigation, respectively, which will be sent to the 
individual employee's installation head. The installation head will 
ensure that a case-by-case analysis is conducted regarding the 
appropriate action to be taken. The Postal Service will provide at 
least 30 days advance notice prior to the initiation of any adverse 
action against a matched individual (unless the Postal Service 
determines that public health or safety may be affected or threatened 
pursuant to 5 U.S.C. 552a(p)(3)).
    The privacy of employees will be safeguarded and protected. The 
Postal Service will manage all data in strict accordance with the 
Privacy Act of 1974 and the terms of the matching agreement. Any 
verified data that is maintained will be managed within the parameters 
of the Privacy Act System of Record USPS 700.000, Inspection Service 
Investigative File System (last published April 29, 2005 (Volume 70, 
Number 82)); and, for cases referred to the OIG, data that is 
maintained will also be managed within the parameters of Privacy Act 
System of Record USPS 700.300, Inspector General Investigative Records 
(last published June 14, 2006 (Volume 71, Number 114)). To the extent 
that there are any disclosures of Postal Service payroll data (the 
state agencies will not have access to such data), such disclosures are 
authorized by the Privacy Act. Disclosures are authorized by a Privacy 
Act routine use applicable to the payroll system of records (as well as 
other personnel systems) that pertains to disclosures to federal and 
state agencies that are needed by the Postal Service or agency to make 
decisions regarding personnel matters; and under 5 U.S.C. 552a(b)(2) 
which authorizes disclosures that would be required under 5 U.S.C. 552 
(the Freedom of Information Act).
    Key privacy features of the matching agreement include the 
following:
     Requiring that the identity of matched individuals be 
verified and that the relevant facts of the offense be confirmed;
     Requiring appropriate security controls for the data 
match;
     Providing protections for employees, who appear as an 
initial match but who are not subsequently verified as belonging on the 
state registry of offenders; and
     Requiring the Postal Service to complete the verification, 
and provide at least 30 days advance notice, prior to the initiation of 
any adverse action against a matched individual (unless the Postal 
Service determines that public health and safety may be affected or 
threatened pursuant to 5 U.S.C. 552a(p)(3)).
    The Postal Service intends to enter into matching agreements with 
the states using the template matching agreement below. If there is any 
substantive variation in a matching agreement with a state, the Postal 
Service will issue notice of that modified matching agreement in the 
Federal Register. Set forth below are the terms of the template-
matching agreement, which provide the information required by the 
Privacy Act of 1974, as amended (5 U.S.C. 552a), and the Computer 
Matching and Privacy

[[Page 61514]]

Protection Act of 1988 (Public Law 100-503).

Neva R. Watson,
Attorney, Legislative.

Memorandum of Agreement Between United States Postal Service and the 
State of --------

A. Introduction

    The Postal Service plans to match extracts from its payroll system 
against the state of -------- registry of sexual offenders. Since the 
match compares a federal payroll system against a non-federal system, 
the computer match is subject to the computer match requirements of 
section (o) of the Privacy Act of 1974 (5 U.S.C. 552a), as amended by 
the Computer Matching and Privacy Protection Act of 1988 (Public Law 
100-503). Section (o) requires a federal agency, in order to use 
records for a computer matching program, to enter into a written 
agreement with the non-federal agency that has been approved by the 
participant federal agency Data Integrity Board.

B. Purpose and Legal Authority

1. Purpose of the Matching Program
    The purpose of this agreement is to set forth the terms under which 
a computer matching program will be conducted to identify Postal 
Service employees, who have been required to register with the state's 
sexual offender public registry. The registry contains information 
about individuals, who are required by state law to register as a sex 
offender, having committed sexually-violent offenses against adults or 
children, certain other crimes against victims who are minors, or other 
comparable offenses. The Postal Service is undertaking this initiative 
to determine whether reported offenses may affect an individual's 
suitability for certain positions or employment.
2. Legal Authority
    The legal authority for undertaking this matching program is 
contained in the Postal Reorganization Act, 39 U.S.C. 401(10) and 
404(a)(7). Section 401(10) of the Act grants the Postal Service ``to 
have all other powers incidental, necessary, or appropriate to the 
carrying on of its functions, or the exercise of its specific powers,'' 
and Section 404(a)(7) of the Act authorizes the Postal Service to 
``investigate postal offenses and civil matters relating to the Postal 
Service.''

C. Justification and Expected Results

    The expected results of the match are to identify current Postal 
Service employees, who have been required as a matter of law to 
register on the state's sexual offender public registry. As described 
below, the Postal Service will take appropriate steps to verify the 
information is valid. In instances where a match is verified, the 
Postal Service will conduct a case-by-case analysis regarding the 
employee to determine the appropriate action to be taken. In this 
regard, the Postal Service will evaluate the seriousness of the 
offense, the date of the offense, and the nature of the postal position 
of the employee. Although monetary savings may result indirectly from 
the matching program due to the minimization of the exposure to the 
community of employees who pose a potential threat of harm to the 
public, the Postal Service does not estimate any specific cost savings. 
The purpose and value of the program is safety for the community and 
other Postal Service employees.
    The principal alternative to using a computer matching program for 
identifying such individuals would be to conduct a manual comparison of 
Postal Service payroll records of employees with the state's sexual 
offender public registry. Given that the Postal Service employs 
thousands of employees in the state, this would impose significant 
administrative burden and financial costs.

D. Records Description

1. Systems of Records and Estimation of Number of Records Involved
    The Postal Service will extract records from its Privacy Act System 
of Records (USPS 100.400), Personnel Compensation and Payroll Records, 
containing payroll records for approximately -------- current employees 
who work in the state of --------. The Postal Service will match the 
records with the state sex offender registry records for the state, 
which contain records for approximately --------listed offenders.
2. Data Elements To Be Used in the Match
    The Postal Service will provide a data extract that will contain a 
list of employee names associated with a facility name and address. 
This list will be compared against the state file of registered sexual 
offenders, establishing ``hits'' (i.e., individuals common to both 
files on the basis of matched names and home or work locations). For 
each hit, the Postal Service will obtain the name and address of each 
individual.
3. Projected Starting and Completion Dates
    The matching program is expected to begin in -------- 2006 and to 
continue in effect for 18 months unless terminated by either party 
before that time. The Postal Service will provide notice of the program 
to the Committee on Governmental Affairs of the Senate, the Committee 
on Government Reform and Oversight of the House of Representatives, and 
the Office of Management and Budget (OMB). Matches under this program 
will be conducted no often than quarterly. Matching activity under this 
program will begin no sooner than 30 days after transmittal of the 
matching agreements to Congress and OMB.

E. Notice Procedures

    Constructive notice is given in the Federal Register notice that 
describes this matching program. In addition, the Postal Service will 
provide advance notice to relevant employee unions and management 
associations prior to the initiation of this matching program. For 
current and future employees completing a PS Form 2591, Application for 
Employment, a notice of possible computer matches involving their 
records will be included in the Privacy Act notice on that form.

F. Verification Procedures

    The Postal Service and the state agency agree that the occurrence 
of a report containing any individual's name common to both files (a 
``hit'') is not conclusive evidence of a person's conduct, but merely 
an indication that further examination is warranted. No adverse action 
will be premised upon the raw results of the computer match. The Postal 
Service agrees to verify the information obtained in the match in 
accordance with the procedures described herein.
    In all cases of matched names, postal inspectors will verify that 
the person identified in the state sexual offender public registry is a 
postal employee. If an employee's identity is established, a postal 
inspector will confirm and verify the relevant facts about the offense 
from relevant law enforcement sources. Examples of sources that may be 
reviewed include the National Crime Information Center (NCIC), the 
National Law Enforcement Telecommunication System (NLETS), and sources 
provided by state law enforcement agencies such as the arresting 
agency.
    Prior to the Postal Service initiating any adverse action against 
any employee identified through this match, the employee will be given 
advance

[[Page 61515]]

notice of, and an opportunity to contest, the action as provided in the 
applicable union agreements and Postal Service regulations, but not 
less than 30 days. The Postal Service may take appropriate action 
without providing such advance notice, however, if it determines that 
public health and safety may be affected or threatened pursuant to 5 
U.S.C. 552a(p)(3).
    The Postal Service will not maintain any lists of individuals 
representing non-hits. The match will be structured so as not to 
produce any records or lists of non-hits.

G. Disposition of Matched Items

    Information about individuals who initially were ``hits'' but are 
not subsequently verified as being both a Postal Service employee and 
on the state sex offender list will be destroyed immediately upon 
making that verification. Other identifiable records created during the 
course of the matching program will be destroyed as soon as they have 
served the matching program's purpose and any legal retention 
requirements. Destruction will be by shredding, burning, or electronic 
erasure.

H. Security Procedures

1. Administrative
    The Postal Service will protect the privacy of the subject 
individuals by strict adherence to the provisions of the Privacy Act of 
1974. The Postal Service will maintain and safeguard data exchanged and 
any records created during the course of the matching program in 
accordance with the Privacy Act. Records will be kept in secured areas 
during working and non-working hours. Hardcopy records will be stored 
in locked desks or file cabinets and automated records will be stored 
in secured computer facilities with strict ADP controls. Access will be 
restricted to those individuals who are authorized to obtain access or 
need access to accomplish the matching program's purpose. The state 
agency will not have access to Postal Service payroll records or to any 
matched records, and will provide access to its system in accordance 
with state law.
2. Technical
    The Inspection Service and the state agency will establish agreed 
upon procedures for the secure and expedited exchange of information 
between them. The Postal Service payroll data will be kept on the 
secured Inspection Service network. Access to the state registry will 
also be done on the secured Inspection Service network. While in the 
custody of the Inspection Service, the data will be stored in a secure 
database that meets all law enforcement security standards.

I. Records Usage, Duplication and Re-Disclosure Restrictions

    The Postal Service will not (1) disclose records obtained for this 
matching program within or outside its agency except as authorized by 
law or when disclosure is necessary to conduct the matching program; 
(2) use the records in a manner incompatible with the purposes stated 
in this matching program; or (3) extract information concerning ``non-
matching'' individuals (individuals not identified as being both a 
Postal Service employee and a sexual offenders registrant). The state 
agency will not have access to or retain Postal Service payroll data or 
any matched data under this program. The Postal Service will not 
duplicate data exchanged unless needed to conduct the matching program, 
and all stipulations herein will apply to any duplication. The Postal 
Service may disclose results of any matches for follow-up and 
verification, or for civil or criminal law enforcement investigation or 
prosecution, if the match uncovers activity that warrants such action.

J. Records Accuracy Assessments

    The degree of accuracy of Postal Service data is considered 
extremely high since the automated system in which it is housed 
contains numerous edits that prevent invalid information from being 
entered. Steps to ensure accuracy include certifications and edits that 
prevent duplicate or multiple actions on the same employee in the same 
cycle, entry of keying errors, and entry of actions before their 
effective dates. The probability of encountering erroneous matches or 
other incorrect information through the use of these data is extremely 
small. Federal law contains safeguards requiring states that maintain 
registries to ensure the accuracy of their data. In particular, federal 
law requires states to obtain the fingerprints of each registrant. 
Moreover, the states must verify the accuracy of each registrant's 
address information at least annually and as often as every ninety days 
for certain offenders. The Postal Service will also use the 
verification procedure established above to ensure that it is relying 
upon accurate data.

K. Comptroller General Access

    The Comptroller General may have access to all records necessary to 
monitor or verify compliance with this Agreement.

L. Duration of Matching Agreement

    This agreement will become effective under the terms set forth in 
Paragraph D, and remain in effect for 18 months. At the end of this 
period, the agreement may be renewed for a period of up to one 
additional year if the Data Integrity Board determines within three 
months before the expiration date that the program has been conducted 
appropriately and should continue to be conducted without change. The 
agreement may be modified at any time if the modification is in writing 
and approved by both parties in accordance with the Privacy Act and 
agency guidelines.

 [FR Doc. E6-17453 Filed 10-17-06; 8:45 am]
BILLING CODE 7710-12-P