Privacy Act of 1974; Revision of Systems of Records, 523-525 [06-9981]

Agencies

• Office of the Secretary
• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 72, Number 3 (Friday, January 5, 2007)]
[Notices]
[Pages 523-525]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-9981]


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Notices
                                                Federal Register
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Federal Register / Vol. 72, No. 3 / Friday, January 5, 2007 / 
Notices

[[Page 523]]



DEPARTMENT OF AGRICULTURE

Office of the Secretary


Privacy Act of 1974; Revision of Systems of Records

AGENCY: Office of the Secretary, USDA.

ACTION: Notice to amend Privacy Act Systems of Records.

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SUMMARY: Pursuant to the Privacy Act (5 U.S.C. 552a), notice is hereby 
given that the United States Department of Agriculture (USDA) proposes 
to amend the Privacy Act System of Records FCIC-8, entitled ``List of 
Ineligible Producers''. The system of records is maintained by the Risk 
Management Agency (RMA), an agency of USDA, which administers programs 
of the Federal Crop Insurance Corporation (FCIC), a wholly-owned 
Government corporation. The list of ineligible producers system of 
records is being revised to reflect changes in the administration and 
management of the Federally reinsured plan of insurance contractors and 
to reflect more completely the types of information collected and 
maintained in this system of records. The primary purpose of the system 
of records is to aid private insurance companies in identifying 
ineligible persons and to reduce fraud and misuse of Federal funds. 
Private insurance companies operate under a reinsurance agreement with 
FCIC to deliver programs in accordance with policy and procedure issued 
by RMA. The reinsurance agreement is authorized by the Federal Crop 
Insurance Act and regulations of FCIC published at 7 CFR chapter IV. 
Additionally, 7 CFR part 400, subpart Q, provides general 
administrative regulations for Social Security Number (SSN) and 
Employer Identification Number (EIN) collection, storage, use and 
confidentiality to all holders of crop insurance policies sold by 
insurance providers, their contractors and subcontractors, including 
past and present officers and employees of such companies, their 
contractors and subcontractors.

DATES: Effective Date: This notice will be effective without further 
publication on February 5, 2007, unless modified by a subsequent notice 
to incorporate comments received from the public. Although the Privacy 
Act requires only that the portion of the system that describes the 
``routine uses'' of the system be published for comment, USDA invites 
comment on all portions of this notice. Comments must be received by 
the contact person listed below on or before February 5, 2007.

FOR FURTHER INFORMATION CONTACT: Chief, Underwriting Standards Branch, 
Risk Management Agency, Federal Crop Insurance Corporation, 6501 Beacon 
Drive, Stop 0812, Kansas City, MO 64133-4676, telephone (816) 926-7861.

SUPPLEMENTARY INFORMATION: RMA is responsible for implementation and 
maintenance of a list of ineligible persons. This list is maintained in 
the RMA Ineligible Tracking System (ITS). The ITS contains records of 
individuals and legal entities who are ineligible to participate in 
programs administered by RMA under the Federal Crop Insurance Act (Act) 
due to delinquent debt, disqualification under section 506(n) of the 
Act, violation of the controlled substance provisions of the Food 
Security Act of 1985, as amended, and persons having a substantial 
beneficial interest in an ineligible legal entity. Private insurance 
companies, reinsured by FCIC in accordance with the reinsurance 
agreement with FCIC and regulations of FCIC published at 7 CFR chapter 
IV, part 400, subpart U, submit delinquent debt records to RMA for 
inclusion into the ITS. RMA inputs records into ITS related to 
disqualification, suspension, debarment, controlled substance 
violations and debt due FCIC. RMA is responsible for consolidating and 
updating the ITS and providing notification to private insurance 
companies and other Federal agencies to prevent ineligible persons from 
receiving Federal benefits.
    Major revisions and the reasons for change to this system of 
records are as follows. The system location is revised to show the 
current location of records at the Kansas City Office. The categories 
of individuals covered by the system are revised to reflect person 
included in the system. The categories of records in the system are 
revised to reflect current information stored within the system. The 
routine uses of records maintained in the system are revised to (a) 
delete routine use number (2) because it is not applicable to the 
system of records; (b) renumber routine use number (3) to (2) and to 
permit disclosure to any judicial or administrative tribunal if the 
record sought is relevant; (c) renumber routine use number (4) to (3); 
(d) delete routine use number (5) because it is no longer applicable; 
(e) renumber routine use number (6) to (4) and revise to reflect that 
information will be provided to private insurance companies reinsured 
by FCIC to preclude producers from switching private insurance 
companies in order to circumvent ineligibility; (f) add routine use (5) 
to permit disclosure of information to Federal agencies to prevent 
ineligible producers from erroneously receiving government loans and 
other benefits; (g) add routine use (6) to permit disclosure to 
contractors and Federal agencies to deter fraud, waste and abuse by 
conducting analysis to identify ineligible producers potentially 
circumventing the ineligible process; (h) add routine use (7) to permit 
information to be disclosed for use in the administration and 
evaluation of this system of records as it relates to Federally 
reinsured plans of insurance administered by RMA under the authority of 
the Act, (i) add routine use (8) to permit information to be provided 
to the Department of the Treasury for collection of outstanding debt, 
and (j) add routine use (9) to permit information to be provided to the 
Department of Justice to represent the United States Government in 
litigation when the use of the information is compatible with the 
purposes of the Act. The provisions related to storage, retrievability 
and safeguards are updated to reflect current practices. The system 
manager and address have been updated to show the current location of 
records. The notification procedure, records access procedures, 
contesting record procedures, and record source categories have also 
been updated to document current procedures.
    In conformance with 5 U.S.C. 552a(r), as implemented by OMB 
Circular A-130, USDA sent a report describing the proposed changes to 
the Chairman, Committee on Homeland Security and Government Affairs, 
United States

[[Page 524]]

Senate; the Chairman, Committee on Government Reform, United States 
House of Representatives; and the Administrator, Office of Information 
and Regulatory Affairs, Office of Management and Budget on December 27, 
2006.

    Signed at Washington, DC on December 27, 2006.
Mike Johanns,
Secretary of Agriculture.

System Name:
    List of Ineligible Persons.

Security Classification:
    None.

System Location:
    Kansas City Office, Federal Crop Insurance Corporation, Risk 
Management Agency, 6501 Beacon Drive, Stop 0812, Kansas City Missouri 
64133-4676.

Categories of Individuals covered by the system:
    The system consists of information about an entity who has been 
determined to be ineligible to participate in any program administered 
by the Risk Management Agency (RMA), an agency of the United States 
Department of Agriculture (USDA) which administers programs of the 
Federal Crop Insurance Corporation (FCIC) authorized under the Federal 
Crop Insurance Act (Act), due to non-payment of premium or other 
indebtedness arising under the terms of a Federally reinsured plan of 
insurance contract; disqualification, suspension, or debarment in any 
administrative proceeding; violation of the controlled substance 
provisions of the Food Security Act of 1985, as amended; or persons 
having a substantial beneficial interest in an ineligible entity.

Categories of records in the system:
    The system consists of standardized records containing identifying 
information on entities such as the name, address, tax identification 
number (social security number or employer identification number) and 
entity type; the name, address, and tax identification number of 
individuals having a substantial beneficial interest in an ineligible 
individual or legal entity; and information related to ineligibility 
such as date and cause of ineligibility, date of notification letter 
and current status.

Authority for maintenance of the system:
    7 U.S.C. 1501 et seq.

Purpose(s):
    To aid private insurance companies in identifying ineligible 
persons and to reduce fraud and misuse of Federal funds.

Routine uses of records maintained in the system, including categories 
of users and the purposes of such uses:
    Records contained in this system may be routinely disclosed as 
follows:
    (1) Disclosure to the appropriate agency, whether Federal, State, 
local or foreign, charged with the responsibility of investigating or 
prosecuting a violation of law, or of enforcing or implementing a 
statute, rule, regulation or order issued pursuant thereto, of any 
record within this system when information available indicates a 
violation or potential violation of law, whether civil, criminal, or 
regulatory in nature, and whether arising by general statute or 
particular program statute or by rule, regulation or order issued 
pursuant thereto.
    (2) Disclosure to a court, magistrate or administrative tribunal, 
or to opposing counsel in a proceeding before a court, magistrate, or 
administrative tribunal, of any record within the system that 
constitutes evidence in that proceeding, or which is sought in the 
course of discovery, to the extent that FCIC determines that the 
records sought are relevant to the proceeding.
    (3) Disclosure may be made to a congressional office from the 
record of an individual or legal entity in response to an inquiry from 
the congressional office made at the request of that individual or 
legal entity.
    (4) Disclosure to private insurance companies under a reinsurance 
agreement with FCIC to deliver programs in accordance with policy and 
procedure issued by RMA to assist in determining eligibility for 
participation in the Federal insurance program under the authority of 
the Federal Crop Insurance Act and regulations of FCIC published at 7 
CFR part 400, subpart U. Private insurance companies must adhere to 7 
CFR part 400, subpart Q general administrative regulations for SSN and 
EIN collection, storage, use and confidentiality to all holders of crop 
insurance policies sold by insurance providers, their contractors and 
subcontractors, including past and present officers and employees of 
such companies, their contractors and subcontractors.
    (5) Disclosure of information to other Federal agencies, in 
accordance with 31 U.S.C. 3720B, for the purpose of identifying persons 
in delinquent status for programs administered under authority of the 
Act and barring these delinquent Federal debtors from obtaining 
applicable Federal loans or loan insurance guarantees.
    (6) Disclosure to contractors of FCIC or other Federal agencies to 
conduct research and analysis to identify patterns, trends, anomalies, 
instances and relationships of private insurance companies, agents, 
loss adjusters and policyholders that may be indicative of fraud, 
waste, and abuse.
    (7) Disclosure to private insurance companies, contractors, 
cooperators, and other Federal agencies for any purpose relating to the 
sale, service, administration, analysis and evaluation of the Federally 
reinsured plans of insurance administered by RMA under the authority of 
the Act. 7 CFR part 400, subpart Q provides general administrative 
regulations for SSN and EIN collection, storage, use and 
confidentiality.
    (8) Disclosure of ineligible individual or legal entity information 
to the Department of the Treasury (Treasury) for collection of 
outstanding debt per the Debt Collection Act of 1982, Debt Collection 
Improvement Act of 1996, and Federal Claims Collection Standards.
    (9) Disclosure to the Department of Justice when: (a) USDA or any 
component thereof; or (b) any employee of USDA in his or her official 
capacity where the Department of Justice has agreed to represent the 
employee; or (c) the United States Government, is a party to the 
litigation or has an interest in such litigation, and by careful 
review, RMA determines that the records are both relevant and necessary 
to the litigation and the use of such records by the Department of 
Justice is therefore deemed by RMA to be for a purpose that is 
compatible with the purpose of the Act.

Policies and Practices for storing, retrieving, accessing, retaining 
and disposing of records in the system:
Storage:
    Records are maintained electronically, on computer printouts and in 
the file folders at the Kansas City Office.

Retrievability:
    Records may be indexed and retrieved by name of individual, tax 
identification number (including social security number and employer 
identification number), and policy number.

Safeguards:
    Records are accessible only to authorized personnel and are 
maintained in offices that are lockedduring non-duty hours. File 
folders and other hard copy records are

[[Page 525]]

stored in locked file cabinets. The electronic records are controlled 
by password protection and the computer network is protected by means 
of a firewall.

Retention and Disposal:
    Electronic records are maintained indefinitely. Hard copy records 
are maintained until expiration of the records retention period 
established by the National Archivist.

System Manager's and address:
    Chief, Underwriting Standards Branch, Risk Management Agency, 
Federal Crop Insurance Corporation, 6501 Beacon Drive, Stop 0812, 
Kansas City, Missouri 64113-4676. Telephone: (816) 926-7861.

Notification Procedure:
    An individual may request information regarding this system of 
records or information as to whether the system contains records 
pertaining to such individual from the Kansas City Office. The request 
for information should contain the individual's name, address and tax 
identification number (including social security number). Before 
information about any record is released, the System Manager may 
require the individual to provide proof of identity or require the 
requester to furnish a notarized written authorization from the 
individual to permit release of information.

Record Access Procedures:
    An individual may obtain information as to the procedures for 
gaining access to a record in the system, which pertains to such 
individual, by submitting a written request to the Privacy Act Officer, 
Risk Management Agency, Program Support Staff, Room 6620-SB, AG Stop 
0827, 1400 Independence Avenue, SW., Washington, DC 20250-0807. The 
envelope and letters should be marked ``Privacy Act Request.'' A 
request for information should contain: name, address, ZIP code, tax 
identification number (including social security number), name of the 
system of records, year of records in question, and any other pertinent 
information to help identify the file.

Contesting Record Procedures:
    Procedures for contesting records are the same as the procedures 
for record access. Include the reason for contesting the record and the 
proposed amendment to the information with supporting documentation to 
show how the record is inaccurate.

Record Source Categories:
    Information in this system comes primarily from private insurance 
companies due to their financial arrangement with FCIC or other Federal 
agencies. Private insurance companies operate under a reinsurance 
agreement with FCIC to deliver programs in accordance with policy and 
procedure issued by RMA. The reinsurance agreement is authorized by the 
Federal Crop Insurance Act and regulations of FCIC published at 7 CFR 
part 400, subpart L. Additionally, 7 CFR part 400, subpart Q provides 
general administrative regulations for SSN and EIN collection, storage, 
use and confidentiality to all holders of crop insurance policies sold 
by insurance providers, their contractors and subcontractors, including 
past and present officers and employees of such companies, their 
contractors and subcontractors.

[FR Doc. 06-9981 Filed 1-04-07; 8:45 am]
BILLING CODE 3410-08-M