Privacy Act of 1974; Federal Emergency Management Agency-003 National Flood Insurance Program Files System of Records, 77747-77750 [E8-29794]

Agencies

• Office of the Secretary
• DEPARTMENT OF HOMELAND SECURITY

[Federal Register Volume 73, Number 245 (Friday, December 19, 2008)]
[Notices]
[Pages 77747-77750]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-29794]


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DEPARTMENT OF HOMELAND SECURITY

Office of the Secretary

[Docket No. DHS-2008-0088]


Privacy Act of 1974; Federal Emergency Management Agency--003 
National Flood Insurance Program Files System of Records

AGENCY: Privacy Office; DHS.

ACTION: Notice of Privacy Act system of records.

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SUMMARY: In accordance with the Privacy Act of 1974, the Department of 
Homeland Security is giving notice that it proposes to consolidate five 
legacy record systems and a new program into a Department of Homeland 
Security system of records notice titled, Department of Homeland 
Security Federal Emergency Management Agency--003 National Flood 
Insurance Program Files: FEMA/FIMA-2 National Flood Insurance Direct 
Servicing Agent Application and Related Documents Files (January 23, 
2002); FEMA/FIMA-3 National Flood Insurance Bureau and Statistical 
Agent (BSA) Data Elements and Related Files (January 23, 2002); FEMA/
FIMA-6 National Flood Insurance Special Direct Facility Repetitive Loss 
Target Group Records and Related Files (January 23, 2002); FEMA/FIMA-7 
National Flood Insurance Community Rating System and Related Documents 
Files (January 23, 2002); and FEMA/FIA-2 National Flood Insurance 
Application and Related Documents Files (January 23, 2002), and the 
newly created National Flood Insurance Program Modernization, Business 
Process Improvement, and Systems Engineering Management Systems. This 
system will enable the Department of Homeland Security to administer 
the Federal Emergency Management Agency National Flood Insurance 
Program. Categories of individuals, categories of records, and the 
routine uses of these legacy system of records notices have been 
consolidated and updated to better reflect the Department of Homeland 
Security's Federal Emergency Management Agency National Flood Insurance 
Program record systems. This system will be included in the 
Department's inventory of record systems.

DATES: Written comments must be submitted on or before January 20, 
2009. This new system will be effective January 20, 2009.

ADDRESSES: You may submit comments, identified by docket number DHS-
2008-0088 by one of the following methods:
     Federal e-Rulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     Fax: 1-866-466-5370.
     Mail: Hugo Teufel III, Chief Privacy Officer, Privacy 
Office, Department of Homeland Security, Washington, DC 20528.
     Instructions: All submissions received must include the 
agency name and docket number for this rulemaking. All comments 
received will be posted without change and may be read at https://
www.regulations.gov, including any personal information provided.
     Docket: For access to the docket to read background 
documents or comments received, go to https://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: For general questions please contact: 
Federal Emergency Management Agency Acting Privacy Officer, Federal 
Emergency Management Agency. For privacy issues please contact: Hugo 
Teufel III (703-235-0780), Chief Privacy Officer, Privacy Office, U.S. 
Department of Homeland Security, Washington, DC 20528.

SUPPLEMENTARY INFORMATION:

I. Background

    Pursuant to the savings clause in the Homeland Security Act of 
2002, Public Law 107-296, Section 1512, 116 Stat. 2310 (November 25, 
2002), the Department of Homeland Security (DHS)/Federal Emergency 
Management Agency (FEMA) has relied on preexisting Privacy Act systems 
of records notices for the collection and maintenance of records 
pertaining to the National Flood Insurance Program, which is 
administered by DHS/FEMA.
    In 1968, Congress created the National Flood Insurance Program 
(NFIP) in response to the rising cost of taxpayer funded disaster 
relief for flood victims and the increasing amount of damage caused by 
floods. The Mitigation

[[Page 77748]]

Directorate, a component of FEMA, manages the NFIP and oversees the 
floodplain management and mapping components of the Program.
    Nearly 20,000 communities across the United States and its 
territories participate in the NFIP by adopting and enforcing 
floodplain management ordinances to reduce future flood damage. In 
exchange, the NFIP makes Federally-backed flood insurance available to 
homeowners, renters, and business owners in these communities.
    Typically, a home or business owner will seek flood insurance from 
an insurance company that provides other lines of business such as car 
insurance or property and casualty homeowners insurance. In other 
cases, a mortgage lender will require flood insurance in addition to 
regular homeowner's insurance. If a homeowner's insurance company 
participates in the NFIP's Write-Your-Own (WYO) Program, and the home 
or business owner's building is located in a participating NFIP 
community, the home or business owner can purchase flood insurance.
    This record system will allow DHS/FEMA to collect and maintain 
records regarding applicants, policyholders, and others, including 
insurance agents, associated with the National Flood Insurance Program. 
The system will be used by DHS to collect and maintain records on 
applicants and beneficiaries of the FEMA National Flood Insurance 
Program, as well as others who are involved in the National Flood 
Insurance Program, including WYO business transactions. The collection 
and maintenance of this information will assist DHS in meeting its 
obligation to administer the FEMA National Flood Insurance Program.
    In accordance with the Privacy Act of 1974, DHS is giving notice 
that it proposes to consolidate five legacy record systems: FEMA/FIMA-2 
National Flood Insurance Direct Servicing Agent Application and Related 
Documents Files (67 FR 3193 January 23, 2002), FEMA/FIMA-3 National 
Flood Insurance Bureau and Statistical Agent (BSA) Data Elements and 
Related Files (67 FR 3193 January 23, 2002), FEMA/FIMA-6 National Flood 
Insurance Special Direct Facility (SDF) Repetitive Loss Target Group 
Records and Related Files (67 FR 3193 January 23, 2002), FEMA/FIMA-7 
National Flood Insurance Community Rating System and Related Documents 
Files (67 FR 3193 January 23, 2002), and FEMA/FIA-2 National Flood 
Insurance Application and Related Documents Files (67 FR 3193 January 
23, 2002) into a DHS/FEMA system of records notice titled, Federal 
Emergency Management Agency National Flood Insurance Program Files. 
This system will enable DHS/FEMA to administer the National Flood 
Insurance Program. Categories of individuals, categories of records, 
and the routine uses of these legacy system of records notices have 
been consolidated and updated to better reflect DHS/FEMA's National 
Flood Insurance Program record systems. This system will be included in 
DHS's inventory of record systems.

II. Privacy Act

    The Privacy Act embodies fair information principles in a statutory 
framework governing the means by which the United States Government 
collects, maintains, uses, and disseminates 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 for 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 United States citizens and lawful 
permanent residents. As a matter of policy, DHS extends administrative 
Privacy Act protections to all individuals where systems of records 
maintain information on U.S. citizens, lawful permanent residents, and 
visitors. Individuals may request access to their own records that are 
maintained in a system of records in the possession or under the 
control of DHS by complying with DHS Privacy Act regulations, 6 CFR 
part 5.
    The Privacy Act requires each agency to publish in the Federal 
Register a description denoting the type and character of each system 
of records that the agency maintains, and the routine uses that are 
contained in each system in order to make agency record keeping 
practices transparent, to notify individuals regarding the uses of 
their records, and to assist individuals to more easily find such files 
within the agency. Below is the description of the Federal Emergency 
Management Agency National Flood Insurance Program Files System of 
Records.
    In accordance with 5 U.S.C. 552a(r), DHS has provided a report of 
this newly revised system of records to the Office of Management and 
Budget (OMB) and to Congress.
System of Records: DHS/FEMA-003

System name:
    Federal Emergency Management Agency--003 National Flood Insurance 
Program Files.

Security classification:
    Unclassified.

System location:
    Records are maintained at the Federal Emergency Management Agency 
Headquarters in Washington, DC and in field offices.

Categories of individuals covered by the system:
    Categories of individuals covered by this system include applicants 
and policyholders of flood insurance; Severe Repetitive Loss (SRL) 
property owners (previously known as ``Repetitive Loss Target Group'' 
(RLTG)); insurance companies and agents; WYO Companies and lenders; 
communities that submit Community Rating Survey (CRS) applications; and 
certified flood adjusters.

Categories of records in the system:
    Categories of records in this system include:
     Individual's name;
     Social security number;
     Addresses;
     Telephone numbers;
     E-mail address;
     Tax ID numbers;
     Insurance policy numbers and information;
     Group Flood Insurance Program (GFIP) Certificate Holders
     Property information:
    [cir] Bank/lender
    [cir] Date of mortgage
    [cir] Address of bank/lender
    [cir] Loan information, such as: loan number, names and addresses 
of first and possible second mortgagees, and file or identification 
number of loan;
    [cir] Taxpayer's identification number
     Administration records, such as: transaction errors and 
rejects per WYO Company, documents and photographs necessary to 
substantiate a claim for losses due to burglary or robbery, reports of 
adjusters, and adjusters' bills paid by the program;
     Names and contact information of insurance agents;
     Write Your Own Companies (WYO's);
     Severe Repetitive Loss (SRL) property owners;
     Community Rating System (CRS) applications to adjust NFIP 
insurance premiums based on the mitigation of activities implemented by 
a community;
     Names and contact information of individuals seeking NFIP 
data; and

[[Page 77749]]

     Data elements required for reporting purposes under the 
FEMA Mitigation Directorate Bureau and Statistical Agent contract for 
private insurance companies. Data elements include, but are not limited 
to:
    [cir] Data elements regarding policy reinstatement with/without 
policy changes,
    [cir] Data elements regarding insurance claims, and
    [cir] Data elements regarding payment of claims.

Authority for maintenance of the system:
    The Federal Records Act, 44 U.S.C. 3101; National Flood Insurance 
Act of 1968, as amended and Flood Disaster Protection Act of 1973, 42 
U.S.C. 4001, et seq.

Purpose(s):
    The purpose of this system is to manage the National Flood 
Insurance Program, to assess National Flood Insurance Program user 
satisfaction, and to provide information on the National Flood 
Insurance Program to those who inquire.

Routine uses of records maintained in the system, including categories 
of users and the 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 of 
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 United States 
Attorney Offices) or other Federal agency conducting litigation or in 
proceedings before any court, adjudicative or administrative body when 
it is 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 of DHS in his/her official capacity;
    3. Any employee of DHS in his/her individual capacity where DOJ or 
DHS has agreed to represent the employee; or
    4. The United States or any agency thereof, is a party to the 
litigation or has an interest in such litigation, and DHS determines 
that the records are both relevant and necessary to the litigation and 
the use of such records is compatible with the purpose for which DHS 
collected the records.
    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 or other 
Federal Government agencies pursuant to records management inspections 
being conducted under the authority of 44 U.S.C. 2904 and 2906.
    D. To an agency, organization, or individual 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 the security or 
confidentiality of information in the system of records has been 
compromised;
    2. The Department 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 DHS or another agency or entity) or harm to the 
individual who relies upon the compromised information; 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 compromise and prevent, minimize, 
or remedy such harm.
    F. 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.
    G. 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, where 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.
    H. To insurance agents, brokers, adjusters, lending institutions, 
WYO Companies as authorized under 44 CFR 62.23, the Army Corps of 
Engineers, Small Business Association, the American Red Cross, the 
United States Department of Agriculture Farm Service Agency, State and 
local governments, including State and local individual and family 
grant and assistance agencies, National Flood Insurance Program policy 
and claims records for carrying out the purposes of the National Flood 
Insurance Program, to determine eligibility for benefits, and to verify 
non-duplication of benefits following a flooding event.
    I. To States to provide Group Flood Insurance Program (GFIP) 
certificates for carrying out the purposes of the National Flood 
Insurance Program.
    J. To property loss reporting bureaus, State insurance departments, 
and insurance companies to investigate fraud or potential fraud in 
connection with claims, subject to the approval of the Office of 
Inspector General, DHS.
    K. To State and local government individual and family grant 
agencies to ascertain the degree of financial burden that State and 
local governments expect to assume in the event of a flooding disaster.
    L. To State and local government agencies to further the National 
Flood Insurance Program marketing activities.
    M. To State and local government agencies that provide the names 
and addresses of policyholders and a brief general description of their 
plan for acquiring and relocating their flood prone properties to 
ensure that they are engaged in flood plain management, improved real 
property acquisitions, relocation projects that are consistent with the 
National Flood Insurance Program and, upon the approval of the 
Administrator, Federal Insurance Mitigation Administration, that the 
use furthers the flood plain management and hazard mitigation goals of 
the agency.
    N. To the Army Corps of Engineers, State and local government 
agencies and municipalities to review National Flood Insurance Program 
policy and claims files to assist in hazard mitigation and flood plain 
management activities and in monitoring compliance with the flood plain 
management measures duly adopted by the community.
    O. To lending institutions, mortgage servicing companies, and 
others servicing mortgage loan portfolios, as well as private companies 
engaged in or planning to engage in activities to market or assist 
lenders and mortgage servicing companies to comply with the 
requirements of the Flood Disaster Protection Act of 1973, including 
lender compliance, and to market the sale of flood insurance policies 
under the National Flood Insurance Program.
    P. To current owners of properties designated under the National 
Flood

[[Page 77750]]

Insurance Program as SRL Target Group properties, the dates and dollar 
amounts of loss payments made to prior owners so current owners may 
evaluate whether that designation is appropriate and may, if they 
believe the designation is not appropriate, use the information to 
appeal that designation.
    Q. To the Special Direct Facility National Flood Insurance Program 
Repetitive Loss records for the processing of SRL Target Group 
policyholder underwriting and claims records.
    R. To Preferred Risk Property (PRP) owners who are contesting the 
denial of the PRP applications, the properties' prior loss history.
    S. To Federal, State, and local government agencies to conduct 
research, analysis, and feasibility studies.
    T. To communities to provide repetitive loss records that pertain 
to that community.
    U. To OMB in connection with the review of private relief 
legislation in accordance with OMB Circular No. A-19.

Disclosure to consumer reporting agencies:
    Disclosure under 5 U.S.C. 552a(b)(12). DHS/FEMA may make 
disclosures from this system to ``consumer reporting agencies'' as 
defined in the Fair Credit Reporting Act 15 U.S.C. 1681a(f), as 
amended; or the Federal Claims Collection Act of 1966 31 U.S.C. 
3701(a)(3), as amended.

Policies and practices for storing, retrieving, accessing, retaining, 
and disposing of records in the system:
Storage:
    Records in this system are stored electronically or on paper in 
secure facilities in a locked drawer behind a locked door. The records 
are stored on magnetic disc, tape, digital media, and CD-ROM.

Retrievability:
    Records will be retrieved by individual's name; insurance policy 
number; Repetitive Loss Target Group number; property address; zip 
code; telephone number; insurance agents; company name, including 
lenders and WYO Companies; community name; and Community Rating System 
application number.

Safeguards:
    Records in this system are safeguarded in accordance with 
applicable rules and policies, including all applicable DHS automated 
system security access policies. Strict controls have been imposed to 
minimize the risk of compromising the information that is being stored. 
Access to the computer system containing the records in this system is 
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.

Retention and disposal:
    Policy records are kept as long as the property owner is enrolled 
in the insurance program and pays the policy premiums, and cutoff when 
the file becomes inactive. Policy records are destroyed 5 years after 
the cutoff with FEMA Records Schedule N1-311-86-1, Item 1A13a(2). Claim 
records are maintained for 6 years and 3 months after final action, 
unless litigation exists. Records are disposed of FEMA Records Schedule 
N1-311-86-1, Item 2A12(2)(b). Claim records with pending litigation are 
destroyed after review by General Counsel with FEMA Records Schedule 
N1-311-86-1, Item 2A13a(1). Consumer records, including Community 
Rating System records, are retired to the Federal Record Center 2 years 
after cutoff, and destroyed 10 years after cutoff, IAW FEMA Records 
Schedule N1-311-02-01, Item 4.

System Manager and address:
    Administrator, Federal Insurance and Mitigation Administration, 
Federal Emergency Management Agency Headquarters, 500 C Street, SW., 
Washington, DC 20472.

Notification procedure:
    Individuals seeking notification of and access to any record 
contained in this system of records, or seeking to contest its content, 
may submit a request in writing to FEMA's FOIA Officer, 500 C Street, 
SW., Attn: FOIA Coordinator, Washington, DC 20472.
    When seeking records about yourself from this system of records or 
any other FEMA system of records your request must conform with the 
Privacy Act regulations set forth in 6 CFR part 5. You must first 
verify your identity, meaning that you must provide your full name, 
current address and date and place of birth. You must sign your 
request, and your signature must either be 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, you may obtain forms for this purpose from the Director, 
Disclosure and FOIA, https://www.dhs.gov or 1-866-431-0486. In addition 
you should provide the following:
     An explanation of why you believe the Department would 
have information on you,
     Specify when you believe the records would have been 
created,
     If your request is seeking records pertaining to another 
living individual, you must include a statement from that individual 
certifying his/her agreement for you to access his/her records.
    Without this bulleted information the FEMA may not be able to 
conduct an effective search, and your request may be denied due to lack 
of specificity or lack of compliance with applicable regulations.

Record access procedures:
    See ``Notification procedure'' above.

Contesting record procedures:
    See ``Notification procedure'' above.

Record source categories:
    Individual's who apply for and individuals who are insured under 
the National Flood Insurance Program, WYO Companies, flood insurance 
agents and lenders, individuals who request information on the National 
Flood Insurance Program, appraisal records, title reports, and 
homeowner reports.

Exemptions claimed for the system:
    None.

    Dated: December 10, 2008.
Hugo Teufel III,
Chief Privacy Officer, Department of Homeland Security.
 [FR Doc. E8-29794 Filed 12-18-08; 8:45 am]
BILLING CODE 4410-10-P