[Federal Register Volume 86, Number 53 (Monday, March 22, 2021)]
[Notices]
[Pages 15237-15241]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-05645]


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DEPARTMENT OF HOMELAND SECURITY

[Docket No. FEMA-2020-0032]


Privacy Act of 1974; System of Records

AGENCY: Federal Emergency Management Agency, U.S. Department of 
Homeland Security.

ACTION: Notice of New Privacy Act system of records.

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SUMMARY: In accordance with the Privacy Act of 1974, the U.S.

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Department of Homeland Security (DHS) proposes to establish a new DHS 
system of records titled, ``DHS/Federal Emergency Management Agency 
(FEMA)-015 Fraud Investigations System of Records.'' This system of 
records allows DHS/FEMA to collect and maintain records on individuals 
who are being investigated for or involved in an investigation relating 
to the misuse of federal disaster funds and/or benefits. This system of 
records further assists FEMA's Fraud Investigations and Inspections 
Division (FIID) recordkeeping; tracking and managing fraud inquiries, 
investigative referrals, and law enforcement requests; and case 
determinations involving disaster funds and/or benefits fraud, criminal 
activity, public safety, and national security concerns. Additionally, 
DHS is issuing a Notice of Proposed Rulemaking to exempt this system of 
records from certain provisions of the Privacy Act, elsewhere in the 
Federal Register.

DATES: Submit comments on or before April 21, 2021. This new system 
will be effective upon publication. New or modified routine uses will 
be effective April 21, 2021.

ADDRESSES: You may submit comments, identified by docket number FEMA-
2020-0032 by one of the following methods:
     Federal e-Rulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Fax: 202-343-4010.
     Mail: James Holzer, Acting Chief Privacy Officer, Privacy 
Office, U.S. Department of Homeland Security, Washington, DC 20528-
0655.
    Instructions: All submissions received must include the agency name 
and docket number FEMA-2020-0032. All comments received will be posted 
without change to http://www.regulations.gov, including any personal 
information provided.
    Docket: For access to the docket to read background documents or 
comments received, go to http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: For general questions, please contact: 
Tammi Hines, (202) 212-5100, [email protected], Senior Director 
for Information Management, Federal Emergency Management Agency, 
Washington, DC 20472-0001. For privacy questions, please contact: James 
Holzer, (202) 343-1717, [email protected], Acting Chief Privacy 
Officer, Privacy Office, U.S. Department of Homeland Security, 
Washington, DC 20528-0655.

SUPPLEMENTARY INFORMATION:

I. Background

    The U.S. Department of Homeland Security (DHS) Federal Emergency 
Management Agency (FEMA) proposes to establish a new DHS system of 
records titled, ``DHS/FEMA-015 Fraud Investigations System of 
Records.'' FEMA's Fraud Investigations and Inspections Division (FIID) 
is responsible for investigating allegations of fraud involving federal 
disaster funds and/or benefits by a disaster applicant or contractor 
associated with a disaster assistance award or grant. These 
investigations may relate to applicants for FEMA disaster benefits; 
FEMA employees and contractors who violate law, policy, or procedure; 
and insurance procurement and grant fraud. FEMA conducts these 
investigations pursuant to an inquiry or tip from various sources, 
including FEMA employees; government contractors supporting FEMA 
operations; the DHS Office of the Inspector General (OIG); members of 
the public; and other federal, state, local, or tribal law enforcement 
entities.
    FEMA FIID routinely collects these records as part of standard 
investigative protocols in support of disaster fraud investigations. In 
the past few years, FEMA has experienced substantial increases in the 
amount of fraud involving federal disaster benefits. For example, 
during the storm events of 2017, FEMA experienced over $10 million in 
identity theft fraud which involved stolen personally identifiable 
information (PII) from both eligible and non-eligible disaster 
applicants. FEMA has been proactive in working with its federal, state, 
and local law enforcement partners, including the Federal Bureau of 
Investigation (FBI), DHS/OIG, U.S. Department of Housing and Urban 
Development/OIG, U.S. Small Business Administration/OIG, and U.S. 
Social Security Administration/OIG, in combating and strengthening 
safeguards to prevent fraud, while also considering the emergency needs 
of many disaster applicants in the hardest hit areas of the country.
    As part of an investigation, FEMA FIID collects PII of disaster 
applicants from the FEMA National Emergency Management Information 
System (NEMIS)--Individual Assistance (IA) module. FEMA FIID may also 
collect or confirm PII from commercial or government databases to 
include Lexis Nexis, Thomas Reuters CLEAR, National Insurance Crime 
Bureau/ISO Claim Search Plates, CarFax, or the FBI National Crime 
Information Center (NCIC). FIID uses the information to document 
financial transactions and compare data and information located in the 
different databases to identify indications that may substantiate or 
disprove fraud by a disaster applicant.
    Consistent with DHS's information sharing mission, information 
collected by FEMA FIID and stored in the DHS/FEMA-Investigative Records 
System of Records may be shared with other DHS Components that have a 
need to know the information to carry out their national security, law 
enforcement, immigration, intelligence, or other homeland security 
functions. FEMA FIID generally shares the information with the 
Department of Justice, U.S. Attorney Offices; and the U.S. Treasury 
Department, Bureau of Fiscal Services in accordance with approved 
Information Sharing and Access Agreements (ISAA). In addition, DHS/FEMA 
may share information with appropriate federal, state, local, tribal, 
territorial, foreign, or international government agencies consistent 
with the routine uses set forth in the system of records notice.
    Additionally, DHS is issuing a Notice of Proposed Rulemaking to 
exempt this system of records from certain provisions of the Privacy 
Act elsewhere in the Federal Register. This newly established system 
will be included in DHS's inventory of record systems.

II. Privacy Act

    The Privacy Act embodies fair information practice principles in a 
statutory framework governing the means by which federal government 
agencies collect, maintain, use, and disseminate individuals' records. 
The Privacy Act applies to information that is maintained in a ``system 
of records.'' A ``system of records'' is a group of any records under 
the control of an agency from which information is retrieved by the 
name of an individual or by some identifying number, symbol, or other 
identifying particular assigned to the individual. In the Privacy Act, 
an individual is defined to encompass U.S. citizens and lawful 
permanent residents. Additionally, and similarly, the Judicial Redress 
Act (JRA) provides a statutory right to covered persons to make 
requests for access and amendment to covered records, as defined by the 
JRA, along with judicial review for denials of such requests. In 
addition, the JRA prohibits disclosures of covered records, except as 
otherwise permitted by the Privacy Act.
    Below is the description of the DHS/FEMA-015 Fraud Investigations 
System of Records.
    In accordance with 5 U.S.C. 552a(r), DHS has provided a report of 
this system of records to the Office of

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Management and Budget and to Congress.

SYSTEM NAME AND NUMBER:
    U.S. Department of Homeland Security (DHS) Federal Emergency 
Management Agency (FEMA)-015 Fraud Investigations System of Records.

SECURITY CLASSIFICATION:
    Unclassified.

SYSTEM LOCATION:
    Records are maintained on access-controlled servers or in access-
controlled cabinets that are under the management and control by the 
FEMA Office of Chief Information Officer at FEMA Headquarters in 
Washington, DC, and field offices.

SYSTEM MANAGER(S):
    FEMA Investigations and Inspections Division (FIID), Fraud 
Prevention Investigations Branch (FPIB), Fraud Investigations 
Operations Manager, 400 C Street SW, Washington, DC, Suite 7SW-1009, 
Mail Stop 3005.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    Robert T. Stafford Disaster Relief and Emergency Assistance Act, as 
amended, 42 U.S.C. secs. 5161 and 5174(i), as delegated to the 
Administrator of FEMA in 44 CFR part 206; The Homeland Security Act of 
2002, 6 U.S.C. 793 and 795; and Executive Order 13520, Reducing 
Improper Payments (2009).

PURPOSE(S) OF THE SYSTEM:
    The purpose of this system is to collect, maintain, and share 
records related to fraud investigations conducted by the FEMA FIID. It 
allows FEMA to conduct the necessary investigations to safeguard and 
protect federal disaster funds and/or benefits from fraud against the 
United States.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    Categories of individuals covered by this system include any: (1) 
Individual who files a complaint or report alleging fraud or misuse of 
federal disaster benefits; (2) individual who is the subject of the 
disaster fraud complaint or report; (3) individual who has submitted 
potentially fraudulent applications for disaster fund benefits; and (4) 
individual who is associated with the fraud investigation but not the 
actual subject of the investigation and whose information is relevant 
to the fraud case.

CATEGORIES OF RECORDS IN THE SYSTEM:
    Categories of records in this system include:
     Full name of applicant and co-applicant, including 
aliases;
     Full names of dependents and/or others living in the 
dwelling associated with the investigation;
     Full names and addresses of associates and relatives;
     Position or title of applicant or associates and 
relatives, as needed;
     Date of birth;
     Social Security number (SSN);
     Phone numbers;
     Email addresses;
     Addresses (mailing and damaged dwelling associated with 
the investigation);
     Address history (addresses lived at prior to the damaged 
dwelling associated with the investigation);
     Employment information and data (e.g., name of employer, 
location, job title);
     Banking name and account information, including routing 
numbers, electronic funds transfer information, and credit/debit 
account information;
     FEMA Registration Identification Number;
     Property, building, and structural photographs;
     Publicly available criminal records;
     Publicly available civil court records (e.g., bankruptcy, 
liens, divorce, child custody judgements);
     Driver's license data (current and historical);
     Vehicle records (current and historical);
     Business and professional license information (e.g., 
Medical Doctor, Certified Public Accountant, Registered Nurse);
     Social media information, to include posts, user name/
handles, comments, and photographs;
     National Flood Insurance Program (NFIP) records;
     Private house, property, and vehicle insurance records;
     Voter registration records (to determine location data);
     Property records (e.g., deeds, liens, tax assessments, tax 
bills, leases, rental receipts, landlord letters and information);
     School or education institution location information (no 
transcripts or education records);
     Utility Company information;
     Aerial property photographs and Google Earth Street View 
photographs;
     Transcripts of conversations with FEMA call centers or 
helpdesk, including name, address, phone number, email address, caller 
type (e.g., property owner, lessee), chat subject, and chat subject 
category;
     Other relevant information or documents voluntarily 
provided by disaster applicants that is contained in the NEMIS 
database; and
     Names and contact information of complainants and 
witnesses interviewed by Investigators.

RECORD SOURCE CATEGORIES:
    Records are obtained from individuals who are the subject of the 
investigation or inquiry, employers, law enforcement organizations, 
members of the public, witnesses, educational institutions, government 
agencies, nongovernmental organizations, credit bureaus, commercial 
databases, references, confidential sources, personal interviews, 
photographic images, financial institutions, and the personnel history 
and application forms of agency applicants, employees, or contractors.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND PURPOSES OF SUCH USES:
    In addition to those disclosures generally permitted under 5 U.S.C. 
552a(b) of the Privacy Act, all or a portion of the records or 
information contained in this system may be disclosed outside DHS as a 
routine use pursuant to 5 U.S.C. 552a(b)(3) as follows:
    A. To the Department of Justice (DOJ), including Offices of the 
U.S. Attorneys, or other federal agencies conducting litigation or in 
proceedings before any court, adjudicative, or administrative body, 
when it is relevant or necessary to the litigation and one of the 
following is a party to the litigation or has an interest in such 
litigation:
    1. DHS or any component thereof;
    2. Any employee or former employee of DHS in his/her official 
capacity;
    3. Any employee or former employee of DHS in his/her individual 
capacity when DOJ or DHS has agreed to represent the employee; or
    4. The United States or any agency thereof.
    B. To a congressional office from the record of an individual in 
response to an inquiry from that congressional office made at the 
request of the individual to whom the record pertains.
    C. To the National Archives and Records Administration (NARA) or 
General Services Administration pursuant to records management 
inspections being conducted under the authority of 44 U.S.C. 2904 and 
2906.
    D. To an agency or organization for the purpose of performing audit 
or oversight operations as authorized by law, but only such information 
as is necessary and relevant to such audit or oversight function.
    E. To appropriate agencies, entities, and persons when (1) DHS 
suspects or has confirmed that there has been a breach of the system of 
records; (2) DHS

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has determined that as a result of the suspected or confirmed breach, 
there is a risk of harm to individuals, DHS (including its information 
systems, programs, and operations), the federal government, or national 
security; and (3) the disclosure made to such agencies, entities, and 
persons is reasonably necessary to assist in connection with DHS's 
efforts to respond to the suspected or confirmed breach or to prevent, 
minimize, or remedy such harm.
    F. To another federal agency or federal entity, when DHS determines 
that information from this system of records is reasonably necessary to 
assist the recipient agency or entity in (1) responding to a suspected 
or confirmed breach or (2) preventing, minimizing, or remedying the 
risk of harm to individuals, the recipient agency or entity (including 
its information systems, programs, and operations), the federal 
government, or national security, resulting from a suspected or 
confirmed breach.
    G. To contractors and their agents, grantees, experts, consultants, 
and others performing or working on a contract, service, grant, 
cooperative agreement, or other assignment for DHS, when necessary to 
accomplish an agency function related to this system of records. 
Individuals provided information under this routine use are subject to 
the same Privacy Act requirements and limitations on disclosure as are 
applicable to DHS officers and employees.
    H. To an appropriate federal, state, tribal, local, international, 
or foreign law enforcement agency or other appropriate authority 
charged with investigating or prosecuting a violation or enforcing or 
implementing a law, rule, regulation, or order, when a record, either 
on its face or in conjunction with other information, indicates a 
violation or potential violation of law, which includes criminal, 
civil, or regulatory violations and such disclosure is proper and 
consistent with the official duties of the person making the 
disclosure.
    I. To appropriate federal, state, tribal, and local government 
agencies that provide assistance with disaster fraud investigations for 
FEMA to investigate and verify the identity of a subject or witness, or 
investigate and verify the information provided by the subject or 
witness to the extent disclosure is necessary to obtain information 
pertinent to the fraud investigation, including those investigations to 
prevent or identify fraudulent disaster applications involving identity 
theft.
    J. To the news media and the public, with the approval of the Chief 
Privacy Officer in consultation with counsel, when there exists a 
legitimate public interest in the disclosure of the information, when 
disclosure is necessary to preserve confidence in the integrity of DHS, 
or when disclosure is necessary to demonstrate the accountability of 
DHS's officers, employees, or individuals covered by the system, except 
to the extent the Chief Privacy Officer determines that release of the 
specific information in the context of a particular case would 
constitute a clearly unwarranted invasion of personal privacy.

POLICIES AND PRACTICES FOR STORAGE OF RECORDS:
    DHS/FEMA stores records in this system electronically, paper files, 
magnetic disc, tape, or other digital media in a locked drawer within 
secure access-controlled facilities.

POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:
    Records may be retrieved by an individual's name or address, fraud 
complaint or investigation number, FEMA Registration Identification 
Number, or FEMA FIID investigator's name.

POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:
    In accordance with National Archives and Records Administration 
(NARA) authority N1-311-99-6, Item 1, AUD 1-1, FEMA FIID retains 
investigative case files containing information or allegations which 
are of an investigative nature but do not relate to a specific 
investigation for five (5) years. Further, in accordance with NARA 
authority N1-311-99-6, Item 2, AUD 1-2, FEMA FIID retains all other 
investigative case files except those that are unusually significant 
for documenting major criminal or ethical violations by others for ten 
(10) years from the end of the fiscal year when a case is closed. 
Additionally, in accordance with NARA authority N1-311-99-6, Item 3, 
AUD 1-3, FEMA FIID retains significant investigative case files that 
attract significant attention from the media or Congress; result in 
substantive agency policies and procedures; or are cited in OIG's 
periodic reports to Congress. These case files are retired to the 
Federal Records Center five (5) years from when a case is closed and 
transferred to the National Archives twenty (20) years from when a case 
is closed.

ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:
     DHS/FEMA safeguards records in this system according to applicable 
rules and policies, including all applicable DHS automated systems 
security and access policies. DHS/FEMA FIID has imposed strict controls 
to minimize the risk of compromising the information that is being 
stored. Access to the computer system containing the records in this 
system or any paper files in the access-controlled cabinets are limited 
to those individuals who have a need to know the information for the 
performance of their official duties and who have appropriate 
clearances or permissions.

RECORD ACCESS PROCEDURES:
    The Secretary of Homeland Security has exempted this system from 
the notification, access, and amendment procedures of the Privacy Act, 
and the Judicial Redress Act if applicable to protect information 
relating to DHS activities from disclosure to subjects or others 
related to these activities. Specifically, the exemptions are required 
to preclude subjects of these activities from frustrating these 
processes; to avoid disclosure of activity techniques; ensure DHS's 
ability to obtain information from third parties and other sources; and 
to protect the privacy of third parties. Disclosure of information to 
the subject of the inquiry could also permit the subject to avoid 
detection or apprehension.
    However, DHS/FEMA will consider individual requests to determine 
whether information may be released. Thus, individuals seeking access 
to and notification of any record contained in this system of records, 
or seeking to contest its content, may submit a request in writing to 
the Chief Privacy Officer and FEMA FOIA Officer whose contact 
information can be found at http://www.dhs.gov/foia under ``Contacts 
Information.'' If an individual believes more than one component 
maintains Privacy Act records concerning him or her, the individual may 
submit the request to the Chief Privacy Officer and Chief Freedom of 
Information Act Officer, U.S. Department of Homeland Security, 
Washington, DC 20528-0655. Even if neither the Privacy Act nor the 
Judicial Redress Act provide a right of access, certain records may be 
available under the Freedom of Information Act.
    When seeking records from this system of records or any other 
Departmental system of records, the request must conform with the 
Privacy Act regulations set forth in 6 CFR part 5. Individuals must 
first verify identity, meaning that that full name, current address, 
and date and place of birth must be provided. Request must be signed, 
and the signature must either be

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notarized or submitted under 28 U.S.C. 1746, a law that permits 
statements to be made under penalty of perjury as a substitute for 
notarization. While no specific form is required, forms for this 
purpose may be obtained from the Chief Privacy Officer and Chief 
Freedom of Information Act Officer, http://www.dhs.gov/foia or 1-866-
431-0486. In addition, requestors should:
     Explain why the requestor believes that the Department 
would have information on the requestor;
     Identify which component(s) of the Department may have the 
information;
     Specify the records would have been created; and
     Provide any other information that will help the FOIA 
staff determine which DHS component agency may have responsive records;
    If the request is seeking records pertaining to another living 
individual, the request must include a statement from that individual 
certifying his/her agreement for the requestor to access his/her 
records.
    Without the above information, the component(s) may not be able to 
conduct an effective search, and the request may be denied due to lack 
of specificity or lack of compliance with applicable regulations.

CONTESTING RECORD PROCEDURES:
    For records covered by the Privacy Act or covered JRA records, 
individuals may make a request for amendment or correction of a record 
of the Department about the individual by writing directly to the 
Department component that maintains the record, unless the record is 
not subject to amendment or correction. The request should identify 
each particular record in question, state the amendment or correction 
desired, and state why the individual believes that the record is not 
accurate, relevant, timely, or complete. The individual may submit any 
documentation that would be helpful. If the individual believes that 
the same record is in more than one system of records, the request 
should state that and be addressed to each component that maintains a 
system of records containing the record. For records covered by the 
Privacy Act or covered Judicial Redress Act records, see ``Record 
Access Procedures'' above.

NOTIFICATION PROCEDURES:
    See ``Record Access Procedures'' above.

EXEMPTIONS PROMULGATED FOR THE SYSTEM:
    The Secretary of Homeland Security, pursuant to 5 U.S.C. 
552a(k)(2), has exempted this system from the following provisions of 
the Privacy Act: 5 U.S.C. 552a(c)(3); (d); (e)(1); (e)(4)(G), 
(e)(4)(H), (e)(4)(I); and (f). While investigating a complaint, 
records, or information covered by other systems of records may become 
part of, merged with, or recompiled within this system. To the extent 
this occurs, DHS will claim the same exemptions for those records that 
are claimed in the original primary systems from which they originated 
and claim any additional exemptions set forth here.

HISTORY:
    None.
* * * * *

James Holzer,
Acting Chief Privacy Officer, U.S. Department of Homeland Security.
[FR Doc. 2021-05645 Filed 3-19-21; 8:45 am]
BILLING CODE 9111-19-P