[Federal Register Volume 75, Number 241 (Thursday, December 16, 2010)]
[Notices]
[Pages 78802-78804]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-31534]


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DEPARTMENT OF THE TREASURY

Financial Management Service


Privacy Act of 1974, as Amended; System of Records

AGENCY: Financial Management Service, Treasury.

ACTION: Notice of proposed new system of records.

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SUMMARY: In accordance with the Privacy Act of 1974, as amended, the 
Financial Management Service gives notice of a proposed new Privacy Act 
system of records entitled ``Treasury/FMS .008-Mailing List Records.''

DATES: Comments must be received no later than January 18, 2011. The 
proposed new system of records will become effective January 18, 2011 
unless comments are received which would result in a contrary 
determination.

ADDRESSES: You should send your comments to Peter Genova, Deputy Chief 
Information Officer, Financial Management Service, 401 14th Street, 
SW., Washington, DC 20227. Comments received will be available for 
inspection at the same address between the hours of 9 a.m. and 4 p.m. 
Monday through Friday. You may send your comments by electronic mail to 
[email protected] or regulations.gov. All comments, including 
attachments and other supporting materials, received are subject to 
public disclosure. You should submit only information that you wish to 
make available publicly.

FOR FURTHER INFORMATION CONTACT: Peter Genova, Deputy Chief Information 
Officer, (202) 874-1736.

SUPPLEMENTARY INFORMATION: Pursuant to the Privacy Act of 1974, as 
amended, 5 U.S.C. 552a, the Financial Management Service (FMS) is 
proposing to establish a new system of records entitled ``Mailing List 
Records--Treasury/FMS .008.'' FMS proposes to obtain and use mailing 
list records from commercial database providers for the purpose of 
mailing information to low- to moderate-income individuals (individuals 
with income under $35,000 annually), who are more likely to be unbanked 
or underbanked, about options to receive Federal tax refund payments 
electronically. The letters will include information about a debit card 
account recommended by the U.S. Department of the Treasury (Treasury) 
to which Federal tax refund payments may be electronically deposited. 
Commercial database providers obtain information from publicly 
available records or through means that we understand to be compliant 
with applicable privacy laws.
    FMS, a bureau within the U.S. Department of the Treasury 
(Treasury), is responsible for disbursing public money by paper check 
and electronic funds transfer (EFT) on behalf of most Federal agencies. 
Making payments by EFT, rather than by paper check, benefits both 
recipients and the Government. Direct deposit and other EFT payments 
are credited to recipients' accounts on the day payment is due, so the 
funds generally are available sooner than with check payments. 
Individuals receiving Federal payments electronically rarely have any 
delays or problems with their payments. In contrast, based on payment 
claims filed with FMS, nine out of ten problems with FMS-disbursed 
payments are related to paper checks even though checks constitute only 
18 percent of all FMS-disbursed payments made by the Government. For 
example, in fiscal year 2010, FMS mailed more than 130 million Federal 
benefit checks to approximately 11 million benefit recipients, 
resulting in extra costs to taxpayers of more than $117 million that 
would not have been incurred had those payments been made by EFT. In 
the same fiscal year, only 63% of taxpayers received their tax refund 
payment electronically, with approximately 45 million tax refund 
payments being delivered by paper check, resulting in extra costs to 
the tax payers of more than $40 million that would not have been 
incurred had the payments been made by EFT. For individuals receiving 
EFT instead of paper check they receive their refund more quickly, with 
a much smaller chance of delay such as a lost or stolen check, and if 
they have no bank account without the need to pay for private check 
cashing service to get access quickly to the funds in their refund 
check.
    For the 2010 tax filing season, FMS will mail approximately 600,000 
letters to low- and moderate-income individuals offering them the 
opportunity to participate in a pilot program to establish a reloadable 
debit card account to which their Federal tax refund payments could be 
deposited electronically. For this purpose, FMS will purchase name and 
address information for low- to moderate-income individuals from a 
commercial database provider. In addition, the mailing list records may 
also be used to study the effectiveness of mailing outreach designed to 
streamline payment processes.
    The records covered by the proposed system are necessary to allow 
FMS to offer electronic payment options to a wide variety of potential 
Federal payment recipients. The records may be received directly by 
FMS, its fiscal or financial agents, and/or contractors. The records 
include names and mailing addresses only as necessary to deliver 
information to individuals about the benefits of electronic payments 
and the availability of a Treasury-recommended debit card account that 
can be used to receive payments electronically. Without such 
information, FMS would have significant difficulty in reaching low- to 
moderate-income individuals who may be receiving a tax refund payment 
to inform them about the benefits of electronic payments and the 
availability of the Treasury-recommended debit card account for this 
purpose.
    In addition to the purposes cited above, the information contained 
in the covered records will be used to study the effectiveness to 
evaluate how the group responded to account options, and whether they 
utilized them. To study program efficacy, FMS may use its mailing list 
records to collect aggregate statistical information on the success and 
benefits of direct mail and the use of commercial database providers.
    FMS recognizes the sensitive nature of the confidential information 
it obtains when collecting individuals' names and addresses, and has 
many safeguards in place to protect the information from theft or 
inadvertent disclosure. When appropriate, FMS's arrangements with its 
fiscal and financial agents and contractors include requirements that 
preclude them from retaining, disclosing, and using the information for 
any purpose other than mailing of information about the benefit of 
electronic payments and account options and assessing the effectiveness 
of the outreach. In addition to various procedural and physical 
safeguards, access to computerized records is limited, through the use 
of access codes, encryption techniques and/or other internal 
mechanisms. Access to records is granted only as authorized by a 
business line manager at FMS or FMS's fiscal or financial agent to 
those whose official duties require access solely for the purposes 
outlined in the proposed system.
    The new system of records report, as required by 5 U.S.C. 552a(r) 
of the Privacy Act, has been submitted to the Committee on Government 
Reform of the House of Representatives, the

[[Page 78803]]

Committee on Governmental Affairs of the Senate, and the Office of 
Management and Budget, pursuant to Appendix I to OMB Circular A-130, 
``Federal Agency Responsibilities for Maintaining Records About 
Individuals,'' dated November 30, 2000.
    For the reasons set forth in the preamble, FMS proposes a new 
system of records Treasury/FMS .008-Mailing List Records, which is 
published in its entirety below.

    Dated: December 8, 2010.
Melissa Hartman,
Deputy Assistant Secretary for Privacy, Transparency, and Records.
Treasury/FMS .008

System name:
    Mailing List Records--Treasury/Financial Management Service.

System location:
    Records are located at the offices of Financial Management Service, 
401 14th Street, SW., Washington, DC 20227, or its fiscal or financial 
agents at various locations. The addresses of the fiscal or financial 
agents may be obtained by contacting the System Manager below.

Categories of individuals covered by the system:
    Low- to moderate-income individuals, who are more likely to be 
unbanked or underbanked, who could potentially receive Federal tax 
refund payments, and whose names and addresses are included on mailing 
lists purchased from commercial providers.

Categories of records in the system:
    The records may contain identifying information, such as an 
individual's name(s) and address.

Authority for maintenance of the system:
    5 U.S.C. 301; 31 U.S.C. 321; 31 U.S.C. chapter 33; 31 U.S.C. 3332; 
Title XII of the Dodd-Frank Wall Street Reform and Consumer Protection 
Act (Pub. L. 111-203, Jul. 21, 2010).

Purpose(s):
    The purpose of this system is to maintain limited records (names 
and addresses) about low- to moderate income individuals, who are more 
likely to be unbanked or underbanked, and who could potentially receive 
Federal tax refund payments. The records are used to send letters to 
individuals informing them of the benefits of electronic payments and 
Treasury-recommended account options for receiving payments 
electronically. Without the information, FMS, its fiscal or financial 
agents and contractors, would not be able to directly notify 
prospective payment recipients about the benefits of electronic 
payments and the Treasury-recommended account options for the receipt 
of Federal payments electronically.
    The information will also be used to study the effectiveness of 
offering account options to individuals for the purpose of receiving 
Federal payments. To study program efficacy, FMS may use its mailing 
list records to collect aggregate statistical information on the 
success and benefits of direct mail and the use of commercial database 
providers.

Routine uses of records maintained in the system, including categories 
of users and the purposes of such uses:
    These records may be used to disclose information to:
    (1) The U.S. Department of Justice (``DOJ'') for its use in 
providing legal advice to the Department or in representing the 
Department in a proceeding before a court, adjudicative body, or other 
administrative body before which the Department is authorized to 
appear, where the use of such information by the DOJ is deemed by the 
Department to be relevant and necessary to the litigation, and such 
proceeding names as a party or interests: (a) The Department or any 
component thereof; (b) Any employee of the Department in his or her 
official capacity; (c) Any employee of the Department in his or her 
individual capacity where DOJ has agreed to represent the employee; or 
(d) The United States, where the Department determines that litigation 
is likely to affect the Department or any of its components.
    (2) A congressional office in response to an inquiry made at the 
request of the individual to whom the record pertains.
    (3) Fiscal agents, financial agents, and contractors for the 
purpose of mailing information to individuals about the benefits of 
electronic Federal payments and Treasury-recommended account options 
for receipt of federal payments electronically, including, but not 
limited to, processing direct mail or performing other marketing 
functions; and creating and reviewing statistics to improve the quality 
of services provided.
    (4) Federal agencies, their agents and contractors for the purposes 
of implementing and studying options for encouraging current and 
prospective Federal payment recipients to receive their Federal 
payments electronically.
    (5) Representatives of the National Archives and Records 
Administration (NARA) who are conducting records management inspections 
under authority of 44 U.S.C. 2904 and 2906.
    (6) Appropriate agencies, entities, and persons when: (a) FMS 
suspects or has confirmed that the security or confidentiality of 
information in the system of records has been compromised; (b) FMS has 
determined that as a result of the suspected or confirmed compromise 
there is a risk of harm to economic or property interests, identity 
theft or fraud, or harm to the security or integrity of this system or 
other systems or programs (whether maintained by FMS or another agency 
or entity) that rely upon the compromised information; and (c) the 
disclosure made to such agencies, entities, and persons is reasonably 
necessary to assist in connection with FMS's efforts to respond to the 
suspected or confirmed compromise and prevent, minimize, or remedy such 
harm.

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

Retrievability:
    Records are retrieved by name, address, or other alpha/numeric 
identifying information.

Safeguards:
    All official access to the system of records is on a need-to-know 
basis only, as authorized by a business line manager at FMS or FMS's 
fiscal or financial agent. Procedural and physical safeguards, such as 
personal accountability, audit logs, and specialized communications 
security, are utilized. Each user of computer systems containing 
records has individual passwords (as opposed to group passwords) for 
which he or she is responsible. Thus, a security manager can identify 
access to the records by user. Access to computerized records is 
limited, through use of access codes, encryption techniques, and/or 
other internal mechanisms, to those whose official duties require 
access. Storage facilities are secured by various means such as 
security guards, badge access, and locked doors with key entry.

Retention and disposal:
    Electronic and paper records for mail operations based on the use 
of the mailing list records will be retained in accordance with FMS's 
record retention requirements or as otherwise required by statute or 
court order. FMS disposes, or arranges for the disposal of records in

[[Page 78804]]

electronic media using industry-accepted techniques, and in accordance 
with applicable FMS policies regarding the retention and disposal of 
fiscal or financial agency records. Paper records are destroyed in 
accordance with fiscal or financial agency archive and disposal 
procedures and applicable FMS policies regarding the retention and 
disposal of fiscal agency records.

System manager(s) and address:
    Agency Enterprise Solutions Division, Payment Management, Financial 
Management Service, 401 14th Street, SW., Washington, DC 20227.

Notification procedure:
    Inquiries under the Privacy Act of 1974, as amended, shall be 
addressed to the Disclosure Officer, Financial Management Service, 401 
14th Street, SW., Washington, DC 20227. All individuals making 
inquiries should provide with their request as much descriptive matter 
as is possible to identify the particular record desired. The system 
manager will advise as to whether FMS maintains the records requested 
by the individual.

Record access procedures:
    Individuals requesting information under the Privacy Act of 1974, 
as amended, concerning procedures for gaining access to or contesting 
records should write to the Disclosure Officer. All individuals are 
urged to examine the rules of the U.S. Department of the Treasury 
published in 31 CFR part 1, subpart C, and appendix G, concerning 
requirements of this Department with respect to the Privacy Act of 
1974, as amended.

Contesting record procedures:
    See ``Record access procedures'' above.

Record source categories:
    Information in this system is provided by commercial database 
providers based on publicly available information.

Exemptions claimed for the system:
    None.
[FR Doc. 2010-31534 Filed 12-15-10; 8:45 am]
BILLING CODE 4810-35-P