[Federal Register Volume 89, Number 116 (Friday, June 14, 2024)]
[Notices]
[Pages 50581-50584]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-13119]


-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE

Office of the Secretary

[Docket ID: DoD-2024-OS-0066]


Privacy Act of 1974; System of Records

AGENCY: Department of Defense (DoD).

ACTION: Notice of a new system of records.

-----------------------------------------------------------------------

SUMMARY: In accordance with the Privacy Act of 1974, the DoD is 
establishing a new Department-wide system of records titled, ``Defense 
Debt Management Records,'' DoD-0022. This system of records covers 
DoD's maintenance of records about individuals who have an outstanding 
debt owed to DoD, and the documentation relating to the debt collection 
activities.

DATES: This system of records is effective upon publication; however, 
comments on the Routine Uses will be accepted on or before July 15, 
2024. The Routine Uses are effective at the close of the comment 
period.

ADDRESSES: You may submit comments, identified by docket number and 
title, by any of the following methods:
    * Federal Rulemaking Portal: https://www.regulations.gov. Follow 
the instructions for submitting comments.
    * Mail: Department of Defense, Office of the Assistant to the 
Secretary of Defense for Privacy, Civil Liberties, and Transparency, 
Regulatory Directorate, 4800 Mark Center Drive, Attn: Mailbox 24, Suite 
08D09, Alexandria, VA 22350-1700.
    Instructions: All submissions received must include the agency name 
and docket number for this Federal Register document. The general 
policy for comments and other submissions from members of the public is 
to make these submissions available for public viewing on the internet 
at https://www.regulations.gov as they are received without change, 
including any personal identifiers or contact information.

FOR FURTHER INFORMATION CONTACT: Ms. Rahwa Keleta, Privacy and Civil 
Liberties Directorate, Office of the Assistant to the Secretary of 
Defense for Privacy, Civil Liberties, and Transparency, Department of 
Defense, 4800 Mark Center Drive, Mailbox #24, Suite 08D09, Alexandria, 
VA 22350-1700; [email protected]; (703) 571-0070.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD is establishing the Defense Debt Management Records, DoD-0022 
as a DoD-wide Privacy Act system of records. A DoD-wide system of 
records notice (SORN) supports DoD paper or electronic recordkeeping 
systems operated by more than one DoD component that maintain the same 
kind of information about individuals for the same purpose. 
Establishment of DoD-wide SORNs helps DoD standardize the rules 
governing the collection, maintenance, use, and sharing of personal 
information in key areas across the enterprise. DoD-wide SORNs also 
reduce duplicative and overlapping SORNs published by separate DoD 
components. The creation of DoD-wide SORNs is expected to make locating 
relevant SORNs easier for DoD personnel and the public and create 
efficiencies in the operation of the DoD privacy program.
    This system covers debt management records maintained by all 
components of DoD, wherever they are maintained. The system consists of 
both electronic and paper records and will be used by DoD components to 
maintain records about debts owed from DoD-affiliated individuals, 
including Military service members, civilian employees, dependents and 
family members, contractors, and other individuals. Debts may include 
but are not limited to: (1) overdue debts owed to DoD, and (2) 
overpayment of benefits to individuals. The collection and maintenance 
of this information will assist the DoD in meeting its obligations 
under law, regulation, and policy to ensure debt management is 
successfully accomplished.
    Additionally, pursuant to 5 U.S.C. 552a(b)(12), disclosures may be 
made from this system to consumer reporting agencies in accordance with 
31 U.S.C. 3711(e).
    DoD SORNs have been published in the Federal Register and are 
available from the address in FOR FURTHER INFORMATION CONTACT or on the 
Privacy and Civil Liberties Directorate website at https://dpcld.defense.gov.

II. Privacy Act

    Under the Privacy Act, a ``system of records'' is a group of 
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 as a U.S. citizen or lawful 
permanent resident.
    In accordance with 5 U.S.C. 552a(r) and Office of Management and 
Budget (OMB) Circular No. A-108, the DoD has provided a report of this 
system of records to the OMB and to Congress.

    Dated: June 10, 2024.
Aaron T. Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.

SYSTEM NAME AND NUMBER:
    Defense Debt Management Records, DoD-0022.

SECURITY CLASSIFICATION:
    Unclassified.

[[Page 50582]]

SYSTEM LOCATION:
    Department of Defense (Department or DoD), located at 1000 Defense 
Pentagon, Washington, DC 20301-1000, and other Department 
installations, offices, or mission locations. Information may also be 
stored within a government-certified cloud, implemented, and overseen 
by the Department's Chief Information Officer (CIO), 6000 Defense 
Pentagon, Washington, DC 20301-6000.

SYSTEM MANAGER(S):
    The system managers for this system of records are as follows:
    A. Chief Financial Officer, Office of the Under Secretary of 
Defense (Comptroller), 4000 Defense Pentagon, Washington DC 20301-4000. 
whs.mc-alex.esd.mbx.osd-js-foia-requester-service-center@mail.mil.
    B. Commander, Army and Air Force Exchange Service, 3911 S Walton 
Walker Boulevard, Dallas, TX 75236-1598.
    C. Policy official Commander, Navy Exchange Service Command, 3280 
Virginia Beach Boulevard, Virginia Beach, VA 23452-5724.
    D. Director, Marine Corps Business and Support Services Division 
(MR) Headquarters, U.S. Marine Corps, 3044 Catlin Ave., Quantico, VA 
22134-500.
    E. Director, Defense Finance and Accounting Services, Debt and 
Claims Department, 8899 East 56th Street, Indianapolis, IN 46249-2700, 
telephone number (866) 912-6488.
    F. The Privacy Act responsibilities concerning access, amendment, 
and disclosure of the records have been delegated to the DoD 
components. DoD components include the Military Departments of the 
Army, Air Force (including the U.S. Space Force), and Navy (including 
thee U.S. Marine Corps), field commands, installations, and activities. 
To contact the system managers at the DoD component with oversight of 
the records, go visit www.FOIA.gov to locate the contact information 
for each component's Freedom of Information Act (FOIA) office.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    5 U.S.C. 5514, Installment Deduction for Indebtedness to the United 
States; 10 U.S.C. 113, Secretary of Defense; 10 U.S.C. 2783, 
Nonappropriated Fund Instrumentalities: Financial Management and Use of 
Nonappropriated funds; 10 U.S.C. Chapter 47--Uniform Code Of Military 
Justice; 31 U.S.C. 3716, Administrative Offset; 37 U.S.C. 1007, 
Deductions from pay; Federal Claims Collection Act of 1966 (Pub. L. 89-
508, as amended); 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); DoD 7000.14-R, Department of Defense Financial 
Management Regulation, Volume 16: Department of Defense Debt 
Management; and Executive Order 9397 (SSN), as amended.

PURPOSE(S) OF THE SYSTEM:
    A. To support the receipt, review, and evaluation of submissions 
made to DoD debt management activities, (debt owed to DoD) on behalf of 
individuals and the outcome of such submissions under 31 U.S.C. 3711, 
Collection and Compromise. Debts may include but are not limited to: 
(1) overdue debts owed to DoD, and (2) overpayment of benefits to 
individuals.
    B. To support and track the establishment, collection, compromise, 
and appeal of debts individuals owe to DoD.
    C. To track DoD debt management data for statistical analysis and 
reporting for business optimization and to support regulatory 
requirements for reporting debt.
    Note: Data from this system of records may be used to support 
investigation and law enforcement actions for legal and administrative 
actions. These records are covered under other system of records 
notices.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    Individuals who owe debt to DoD, or whom debts to DoD have been 
paid or cancelled.

CATEGORIES OF RECORDS IN THE SYSTEM:
    Records in this system include information regarding submissions 
made to DoD debt management activities. Records include:
    A. Personal information: Name; customer ID number, Social Security 
Number (SSN), and driver's license number; date of birth; contact 
information; and any other information necessary to identity the 
individual.
    B. Employment information: Employer's name and contact information, 
branch of service, position/grade/rank/title, personal identifiers to 
include DoD ID number, employee ID number, and vendor ID number, 
military affiliation information to include status (active duty, 
active/inactive reserve, retired, civilian, and dependent); and branch 
of Service.
    C. Records establishing and relating to the debt submission: 
Information includes supporting documents and correspondence that are 
relevant to the nature of the matter to determine debt liability, 
document subsequent actions taken and due process provided, and meet 
regulatory requirements.
    D. Personal financial information: Bank name, bank account number, 
routing number, check number, credit and debit card numbers, debt 
financial statements and communication, bankruptcy filing and dispatch 
by the court; credit reports, and garnishment orders.

RECORD SOURCE CATEGORIES:
    Records and information stored in this system of records are 
obtained from: individual debtor, DoD component activity recordkeeping 
systems that contain information relating to the debt; the Internal 
Revenue Service; consumer reporting agencies; Department of Treasury, 
private collection services, and banks, credit unions, and other 
financial institutions that process payments.

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 of 1974, as amended, all or a portion of the 
records or information contained herein may specifically be disclosed 
outside the DoD as a Routine Use pursuant to 5 U.S.C. 552a(b)(3) as 
follows:
    A. To contractors, grantees, experts, consultants, students, and 
others performing or working on a contract, service, grant, cooperative 
agreement, or other assignment for the Federal government when 
necessary to accomplish an agency function related to this system of 
records.
    B. To the appropriate Federal, State, local, territorial, tribal, 
foreign, or international law enforcement authority or other 
appropriate entity where a record, either alone or in conjunction with 
other information, indicates a violation or potential violation of law, 
whether criminal, civil, or regulatory in nature.
    C. To any component of the Department of Justice for the purpose of 
representing the DoD, or its components, officers, employees, or 
members in pending or potential litigation to which the record is 
relevant and necessary.
    D. In an appropriate proceeding before a court, grand jury, or 
administrative or adjudicative body or official, when the DoD or other 
Agency representing the DoD determines that the records are relevant 
and necessary to the proceeding; or in an appropriate proceeding before 
an administrative or adjudicative body when the adjudicator determines 
the records to be relevant to the proceeding.

[[Page 50583]]

    E. To the National Archives and Records Administration for the 
purpose of records management inspections conducted under the authority 
of 44 U.S.C. 2904 and 2906.
    F. To a Member of Congress or staff acting upon the Member's behalf 
when the Member or staff requests the information on behalf of, and at 
the request of, the individual who is the subject of the record.
    G. To appropriate agencies, entities, and persons when (1) the DoD 
suspects or confirms a breach of the system of records; (2) the DoD 
determines as a result of the suspected or confirmed breach there is a 
risk of harm to individuals, the DoD (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 the DoD's 
efforts to respond to the suspected or confirmed breach or to prevent, 
minimize, or remedy such harm.
    H. To another Federal agency or Federal entity, when the DoD 
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.
    I. To another Federal, State, or local agency for the purpose of 
comparing to the agency's system of records or to non-Federal records, 
in coordination with an Office of Inspector General in conducting an 
audit, investigation, inspection, evaluation, or other review as 
authorized by the Inspector General Act of 1978, as amended.
    J. To such recipients and under such circumstances and procedures 
as are mandated by Federal statute or treaty.
    K. To appropriate Federal, State, local, territorial, tribal, 
foreign, or international agencies for the purpose of 
counterintelligence activities authorized by U.S. law or Executive 
Order, or for the purpose of executing or enforcing laws designed to 
protect the national security or homeland security of the United 
States, including those relating to the sharing of records or 
information concerning terrorism, homeland security, or law 
enforcement.
    L. To credit card processors, banks, and other financial 
institutions to process payments made by credit or debit cards, by 
check, or other payment methods.
    M. To the Internal Revenue Service to obtain taxpayer mailing 
address information for a debtor. Taxpayer mailing address information 
obtained from the IRS may only be used to locate the individual to 
collect or compromise a debt owed to DoD.
    N. To the U.S. Department of the Treasury for centralized 
administrative or salary offset, including the offset of federal income 
tax refunds, for the purpose of collecting debts owed to the DoD.
    O. To contracted private collection agencies for the purpose of 
obtaining debt collection services, including administrative wage 
garnishment (AWG), to recover debts owed to the DoD. This routine use 
authorizes the disclosure of taxpayer address information to private 
collection agencies for the sole purpose of locating the individual to 
collect or compromise a debt owed to DoD.
    P. To consumer reporting agencies, the disclosure of taxpayer 
mailing address information obtained from the Internal Revenue Service 
for the limited purpose of DoD obtaining a commercial credit report.

Authorized Disclosure to Consumer Reporting Agencies Pursuant to 5 
U.S.C. 552a(b)(12):
    DoD may disclose information from this system of records concerning 
overdue debts to consumer reporting agencies as defined by 15 U.S.C. 
1681a(f) or 31 U.S.C. 3701(a)(3). The following information may be 
disclosed to consumer reporting agencies from this system of records: 
the individual's name, address (disclosure of a taxpayer mailing 
address obtained from the IRS is not authorized), taxpayer 
identification number (SSN), and other information necessary to 
establish the identity of the individual; the amount, status, and 
history of the debt; and the agency or program under which the debt 
arose.

POLICIES AND PRACTICES FOR STORAGE OF RECORDS:
    Records may be stored electronically or on paper in secure 
facilities in a locked drawer behind a locked door. Electronic records 
may be stored locally on digital media; in agency-owned cloud 
environments; or in vendor Cloud Service Offerings certified under the 
Federal Risk and Authorization Management Program (FedRAMP).

POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:
    Records may be retrieved by the individual's full name and DoD ID 
number, SSN, or date of birth.

POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:
    General Records Schedule 1.1 provides that debt collection case 
files are retained for 6 years after final payment or cancellation, but 
longer retention is authorized if required for business use.

ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:
    DoD safeguards records in this system of records according to 
applicable rules, policies, and procedures, including all applicable 
DoD automated systems security and access policies. DoD policies 
require the use of controls to minimize the risk of compromise of 
personally identifiable information (PII), which includes records 
covered by the Privacy Act, in paper and electronic form, and to limit 
access to those with a need to know and with appropriate clearances. 
Additionally, DoD has established security audit and accountability 
policies and procedures which support the safeguarding of PII and 
detection of potential PII incidents. DoD routinely employs safeguards, 
such as the following, to paper-based and electronic information 
systems, including those comprising Privacy Act systems of records: 
Multifactor log-in authentication including Common Access Card (CAC) 
authentication and password; physical token as required; physical and 
technological access controls governing access to data; network 
encryption to protect data transmitted over the network; disk 
encryption securing disks storing data; key management services to 
safeguard encryption keys; masking of sensitive data as practicable; 
mandatory information assurance and privacy training for individuals 
who will have access; identification, marking, and safeguarding of PII; 
physical access safeguards including multifactor identification 
physical access controls, detection and electronic alert systems for 
access to servers and other network infrastructure; and electronic 
intrusion detection systems in DoD facilities.

RECORD ACCESS PROCEDURES:
    Individuals seeking access to their records should follow the 
procedures in 32 CFR part 310. Individuals should address written 
inquiries to the DoD office with oversight of the records, as the 
component has Privacy Act responsibilities concerning access,

[[Page 50584]]

amendment, and disclosure of the records within this system of records. 
The public may identify the contact information for the appropriate DoD 
office through the following website: www.FOIA.gov. Signed written 
requests should contain the name and number of this system of records 
notice along with the individual's full name, current address, and 
email address. In addition, the requester must provide either a 
notarized statement or an unsworn declaration made in accordance with 
28 U.S.C. 1746, in the appropriate format:
    If executed outside the United States: ``I declare (or certify, 
verify, or state) under penalty of perjury under the laws of the United 
States of America that the foregoing is true and correct. Executed on 
(date). (Signature).''
    If executed within the United States, its territories, possessions, 
or commonwealths: ``I declare (or certify, verify, or state) under 
penalty of perjury that the foregoing is true and correct. Executed on 
(date). (Signature).''

CONTESTING RECORD PROCEDURES:
    The DoD rules for accessing records, contesting contents, and 
appealing initial agency determinations are contained in 32 CFR part 
310.

NOTIFICATION PROCEDURES:
    Individuals seeking to determine whether information about 
themselves is contained in this system of records should follow the 
instructions for Record Access Procedures above.

EXEMPTIONS PROMULGATED FOR THE SYSTEM:
    None.

HISTORY:
    None.

[FR Doc. 2024-13119 Filed 6-13-24; 8:45 am]
BILLING CODE 6001-FR-P