Privacy Act: Revision of Privacy Act Systems of Records, 81205-81209 [2010-32457]

Agencies

• Office of the Secretary
• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 75, Number 247 (Monday, December 27, 2010)]
[Notices]
[Pages 81205-81209]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-32457]


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DEPARTMENT OF AGRICULTURE

Office of the Secretary


Privacy Act: Revision of Privacy Act Systems of Records

AGENCY: Office of the Secretary, USDA.

ACTION: Notice to Revise Privacy Act Systems of Records.

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SUMMARY: Notice is hereby given that the United States Department of 
Agriculture (USDA) proposes to revise two Privacy Act Systems of 
Records entitled ``Information on Persons Disqualified from the 
Supplemental Nutrition Assistance Program'' and ``Supplemental 
Nutrition Assistance Program Retailer Information.'' These systems are 
owned, administered, and secured by the Food and Nutrition Service 
(FNS). The primary purpose of these systems is to assist in the 
administration and enforcement of the Supplemental Nutrition Assistance 
Program (SNAP), as well as other Federal and State laws.

DATES: Effective Date: This notice will be adopted without further 
publication in the Federal Register on January 26, 2011, 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 which 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 January 26, 2011.

FOR FURTHER INFORMATION CONTACT: Jennifer Weatherly, Freedom of 
Information Act Officer, Information Management Branch, Food and 
Nutrition Service, USDA, 3101 Park Center Drive, Alexandria, Virginia 
22302; telephone (703) 605-0773 or via e-mail at 
Jennifer.weatherly@fns.usda.gov.

SUPPLEMENTARY INFORMATION: Pursuant to the Privacy Act, 5 U.S.C. 552a, 
FNS proposes to revise USDA/FNS-5, Information on Persons Disqualified 
from the Supplemental Nutrition Assistance Program, and USDA/FNS-9, 
Supplemental Nutrition Assistance Program Retailer Information, to 
reflect the safeguarding of data from security breaches and updates to 
the collection of data. These two systems of records are being revised 
to include a change to the routine use and exemptions that protect the 
information within the systems. The system of records notices explain 
how the records within the system will be used and with whom they will 
be shared. USDA/FNS-9 contains personal information from owners and 
officers of firms and other entities currently participating in SNAP 
and those who have previously participated in the program. USDA/FNS-5 
contains personal information about persons disqualified from 
participating in SNAP.

    Dated: December 14, 2010.
Thomas J. Vilsack,
Secretary of Agriculture.
REVISION

USDA/FNS-5

System name:
    USDA/FNS-5, Information on Persons Disqualified from the 
Supplemental Nutrition Assistance Program.

Security classification:
    None.

System location:
    This system of records is under the control of the Deputy 
Administrator, Supplemental Nutrition Assistance Program, Food and 
Nutrition Service, United States Department of Agriculture, 3101 Park 
Center Drive, Alexandria, Virginia 22302. The data will be maintained 
at the Department's National Computer Center, Kansas City, Missouri 
(NCC-KC).

Categories of individuals covered by the system:
    The system consists of information about individuals who have been 
disqualified from SNAP participation

[[Page 81206]]

for intentionally violating SNAP regulations.

Categories of records in the system:
    The system consists of standardized records containing identifying 
information (first name, middle initial, last name, Social Security 
number (SSN), date of birth, and sex) about individuals disqualified 
from SNAP and information identifying the location, date(s) and 
length(s) of any disqualification determined and imposed.

Authority for maintenance of the system:
    7 U.S.C. 2011-2031.

Purpose(s):
    To facilitate the Congressional mandate to increase the severity of 
disqualifications from SNAP for repeated instances of fraudulently 
obtaining SNAP benefits and to verify eligibility of applicants for 
SNAP benefits.

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 disclosed, as part of a 
computer matching program or otherwise, to State agency personnel 
responsible for investigating or prosecuting violations of SNAP 
regulations, and to Federal, State, and local officials responsible for 
administration of SNAP. Records contained in this system also may be 
disclosed to the General Accounting Office for program audit purposes.
    Information security breaches will be disclosed to appropriate 
agencies, entities, and persons when (1) FNS 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 the Department or another agency or 
entity) that rely upon the compromised information; and (3) the 
disclosure made to such agencies, entities, and persons is reasonably 
necessary to assist in connection with the Department's efforts to 
respond to the suspected or confirmed compromise and prevent, minimize, 
or remedy such harm.
    (1) FNS may disclose information from this system of records to the 
Department of Justice (DOJ), a court or other tribunal, or another 
party before such tribunal, when USDA, any component thereof, or any 
employee of the USDA in his or her official capacity, any USDA employee 
in his or her individual capacity where DOJ (or USDA where it is 
authorized to do so) has agreed to represent the employee, or the 
United States where USDA determines that the litigation is likely to 
affect directly the operations of USDA or any of its components, is a 
party to the litigation or has an interest in such litigation, and USDA 
determines that the use of such records by DOJ, the court or other 
tribunal, or the other party before such tribunal is relevant and 
necessary to the litigation; provided, however, that in each case, USDA 
determines that such disclosure is compatible with the purpose for 
which the records were collected.
    (2) FNS may disclose records from this system of records to a 
congressional office from the record of an individual provided that 
individual gave the congressional office written permission to inquire 
on his or her behalf.
    (3) Disclosures pursuant to 5 U.S.C. 552a(b)(12). Disclosures may 
be made from this system to ``consumer reporting agencies'' as defined 
in the Fair Credit Reporting Act (15 U.S.C. 1681a(f)) or the Debt 
Collection Act of 1982 (31 U.S.C. 3711(d)(4)).

Policies and practices for storing, retrieving, accessing, retaining, 
and disposing of records in the system:
Storage:
    Records are maintained on the Department's computers at the NCC-KC 
or on magnetic tapes or other electronic media at that facility.

Retrievability:
    Records may be indexed and retrieved by name of the individual, by 
SSN, by Federal Information Processing Standard (FIPS) code, or by a 
State case-file identification number.

Safeguards:
    Records will be available only to identified State agency personnel 
charged with SNAP enforcement. Voice recognition or other biometric 
technology may be used; such a system will release information only to 
authorized individuals calling from authorized telephone numbers. 
Online access to the NCC-KC database will be restricted to FNS 
personnel charged with system management. The NCC-KC is the repository 
of numerous Department systems of records and other sensitive 
databases. It was constructed and is maintained as a highly secure 
facility. State agencies will be provided information from this system 
of records only upon entering into a written agreement with FNS. This 
agreement includes the understanding that State agencies will provide 
full security for data released to them and will limit access to this 
data to authorized personnel only. Any reports generated by FNS will be 
for system evaluation purposes only and will be maintained in secured 
offices and facilities.

Retention and disposal:
    Because the law mandates a longer disqualification period if there 
have been any prior disqualifications, FNS intends to maintain these 
records permanently in an electronic or magnetic tape mode.

System manager(s) and address:
    Director, Program Accountability and Administration Division, 
Supplemental Nutrition Assistance Program, Food and Nutrition Service, 
United States Department of Agriculture, 3101 Park Center Drive, room 
816, Alexandria, Virginia 22302. Telephone: (703) 305-2413.

Notification procedure:
    Any individual may request information regarding this system of 
records, or information as to whether the system contains records 
pertaining to the individual, from the system manager listed above.

Record access procedure:
    An individual may obtain information about a record in the system 
which pertains to the individual by submitting a written request to the 
systems manager listed above. The envelope and the letter should be 
marked ``Privacy Act Request.''
    A request for information pertaining to an individual should 
contain the name, address, date of birth and SSN of the individual, and 
any other information that will assist in locating the record.

Contesting record procedures:
    Individuals desiring to contest or amend information maintained in 
the system should direct their request to the system manager listed 
above, the reasons for contesting it and the proposed amendment to the 
information with supporting information to show how the record is 
inaccurate.

Record source categories:
    Information in this system is provided by State agency personnel 
responsible for investigating cases involving intentional violations of 
SNAP regulations.

Exemptions claimed for the system:
    Exemption 6 of the Freedom of Information Act (5 U.S.C. 552(b)(6))

[[Page 81207]]

permits the government to withhold information when the disclosure 
would constitute a clearly unwarranted invasion of personal privacy of 
third parties.

System name:
    USDA/FNS-9 Supplemental Nutrition Assistance Program Retailer 
Information.

Security classification:
    None.

System location:
    Records are maintained in two host computer databases and in FNS 
field offices located throughout the United States. The two host 
computer databases, the Store Tracking and Redemption System (STARS) 
and Anti-fraud Locator using EBT Retailer Transactions (ALERT), are 
located within secure computing environments in the Office of 
Information Technology, Customer Service Branch, 45 South 7th Street, 
Suite 1810, Minneapolis, Minnesota 55402. The location of each FNS 
field office may be found in the local telephone book. A list of FNS 
field offices may also be obtained from the Internet at the FNS Web 
site located at: https://www.fns.usda.gov/cga/Contacts/FieldOffices/default.htm.

Categories of individuals covered by the system:
    The STARS system consists of personal information from owners and 
officers of stores and other entities currently participating in SNAP, 
as well as those owners and officers who have previously participated 
in the program. The individual paper records (i.e., applications for 
authorization) located in FNS field offices also contain personal 
information from owners and officers who applied for authorization to 
participate in SNAP but were denied authorization. The ALERT system 
consists of household account numbers issued by State Agencies and 
electronic benefit transfer (EBT) card numbers assigned to each program 
recipient who has conducted at least one transaction at an approved 
retail grocery store. ALERT does maintain personal identifying 
information as some State Agencies embed SSN within the State issued 
household number.

Categories of records in the system:
    The applications for authorization and reauthorization are in the 
STARS database and in the files of FNS field offices. The applications 
contain the following personal information regarding owners and 
officers: Name, home address, social security number, and date of 
birth. The SSNs are collected only from owners of sole proprietorships, 
partnerships, principal shareholders of private corporations, officers 
of cooperatives, and spouses of principal owners if a store is located 
in a community property state. The STARS database also maintains the 
following business information: corporation name and address, employer 
identification number (EIN), and financial data (i.e., food sales, 
gross sales, and SNAP redemption data) relative to each entity that 
applied and/or was authorized to accept program benefits. ALERT 
maintains a record of every electronic SNAP benefit transaction 
conducted at any authorized retail grocery store.

Authority for maintenance of the system:
    Section 9 of the Food and Nutrition Act of 2008, as amended, (7 
U.S.C. 2018); section 405(c)(2)(C) of the Social Security Act (42 
U.S.C. 405(c)(2)(C)); and section 6109(f) of the Internal Revenue Code 
of 1986 (26 U.S.C. 6109(f)).

Purpose(s):
    This information will be shared with other Federal and State 
entities to assist in the administration and enforcement of the Food 
and Nutrition Act of 2008 (FNA), as well as other Federal and State 
laws. The SSNs and employer identification numbers (EIN) of store 
owners will only be shared with Federal agencies which maintain those 
numbers in their files. The STARS database is used to process retail 
grocery stores that wish to apply to accept benefits and to monitor 
ongoing SNAP participation and eligibility. ALERT is a fraud detection 
system that is used to monitor SNAP electronic transaction activity.

Routine uses of records maintained in the system, including categories 
of users and the purposes of such uses:
    Limitations on Disclosure under the Following Routine Uses (1) 
through (11): Information obtained from applicants under the authority 
of 7 U.S.C. 2018(c) may be used or disclosed only as specified in 7 
U.S.C. 2018 (c). With the exception of the SSNs and EINs obtained from 
applicants, 7 U.S.C. 2018(c) gives FNS the authority to disclose the 
contents of an initial application, or other information submitted by 
an applicant to other Federal and State law enforcement and 
investigative agencies for the purposes of administering or enforcing 
the FNA or any other Federal or State law. 7 U.S.C. 2018(c) also limits 
the use of the information obtained by applicants. That is, the above 
mentioned entities may only use this information for purposes directly 
connected with the administration and enforcement of the FNA or any 
other Federal or State law.
    Information obtained from applicants includes ownership 
information, sales information, and redemption data.
    Information security breaches will be disclosed to appropriate 
agencies, entities, and persons when (1) FNS suspects or has confirmed 
that the security or confidentiality of information in the system of 
records has been compromised; (2) FNS 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 FNS or another agency or entity) that rely upon 
the compromised information; and (3) the disclosure made to such 
agencies, entities, and persons is reasonably necessary to assist in 
connection with FNS efforts to respond to the suspected or confirmed 
compromise and prevent, minimize, or remedy such harm.
    The use and disclosure of SSNs and EINs obtained by applicants is 
also covered in the Social Security Act and the Internal Revenue Code. 
In accordance with the Social Security Act and the Internal Revenue 
Code, applicant SSNs and EINs may be disclosed only to other Federal 
agencies authorized to have access to SSNs and EINs and maintain these 
numbers in their files, and only when the Secretary of Agriculture 
determines that disclosure would assist in verifying and matching such 
information against information maintained by such other agency (42 
U.S.C. 405(c)(2)(C)(iii); 26 U.S.C. 6109(f)). Routine Uses (1) through 
(11):
    (1) FNS may disclose information from these systems of records to 
the Department of Justice (DOJ), a court or other tribunal, or another 
party before such tribunal, when USDA, any component thereof, or any 
employee of the USDA in his or her official capacity, any USDA employee 
in his or her individual capacity where DOJ (or USDA where it is 
authorized to do so) has agreed to represent the employee, or the 
United States where USDA determines that the litigation is likely to 
affect directly the operations of USDA or any of its components, is a 
party to the litigation or has an interest in such litigation, and USDA 
determines that the use of such records by DOJ, the court or other 
tribunal, or the other party before such tribunal is relevant and 
necessary to the litigation, provided, however, that in each case USDA 
determines that such disclosure

[[Page 81208]]

is compatible with the purpose for which the records were collected.
    (2) In the event that material in these systems indicates a 
violation of the FNA or any other Federal or State law whether civil, 
criminal, or regulatory in nature, and whether arising by general 
statute, or by regulation, rule, or order issued pursuant thereto, FNS 
may disclose the relevant records to the appropriate agency, whether 
Federal or State, charged with the responsibility of investigating or 
prosecuting such violation or charged with enforcing or implementing 
the statute, or rule, regulation or order issued pursuant thereto.
    (3) FNS may disclose records from these systems of records to a 
congressional office from the record of an individual provided that 
individual gave the congressional office permission to inquire on his 
or her behalf.
    (4) FNS may use information from these systems of records, 
including SSNs and EINs, to collect and report on delinquent debt and 
may disclose the information to other Federal and State agencies, as 
well as private collection agencies, for purposes of claims collection 
actions including, but not limited to, administrative offset and 
referral to DOJ for litigation. (Note: SSNs and EINs will only be 
disclosed to Federal agencies.)
    (5) FNS may disclose information from these systems of records to 
other Federal and State agencies to respond to specific requests from 
such Federal and State agencies for the purpose of administering the 
FNA as well as other Federal and State laws.
    (6) FNS may disclose information from these systems of records to 
other Federal and State agencies to verify information reported by 
applicants and participating firms, and to assist in the administration 
and enforcement of the FNA as well as other Federal and State laws.
    (7) FNS may disclose information from these systems of records to 
other Federal and State agencies for the purpose of conducting computer 
matching programs.
    (8) FNS may disclose information (excluding EINs) from these 
systems of records to private entities having contractual agreements 
with USDA for designing, developing, and operating the system, and for 
verification and computer matching purposes.
    (9) FNS will disclose information from these systems of records to 
the Internal Revenue Service, for the purpose of reporting delinquent 
retailer and wholesaler monetary penalties of $600 or more for 
violations committed under the SNAP. FNS will report each delinquent 
debt to the Internal Revenue Service on Form 1099-C (Cancellation of 
Debt). USDA/FNS will report these debts to the Internal Revenue Service 
under the authority of the Income Tax Regulations (26 CFR Parts 1 and 
602) under section 6050P of the Internal Revenue Code (26 U.S.C. 
6050P).
    (10) FNS may disclose information from these systems of records to 
State agencies that administer the Special Supplemental Nutrition 
Program for Women, Infants, and Children (WIC), authorized under 
section 17 of the Child Nutrition Act of 1966 (CNA)(42 U.S.C. 1786), 
for purposes of administering CNA and the regulations issued under that 
CNA.
    (11) Disclosures pursuant to 5 U.S.C. 552a(b)(12). Disclosures may 
be made from this system to ``consumer reporting agencies'' as defined 
in the Fair Credit Reporting Act (15 U.S.C. 1681a(f)) or the Debt 
Collection Act of 1982 (31 U.S.C. 3711(d)(4)).

Policies and practices for storing, retrieving, accessing, retaining, 
and disposing of records in the system:
Storage:
    File folders, magnetic tapes, computer disks, and other electronic 
media.

Retrievability:
    In STARS, the personal identifying information is retrievable by 
owner's name and by SSN. In ALERT, the personal identifying information 
is retrievable by the State-issued household number assigned to each 
program recipient.

Safeguards:
    (1) Authorized Users: When designing, developing and/or operating a 
system of records on individuals, contractors are required to comply 
with all provisions of the Privacy Act. Contractors are required to 
maintain and protect the personal data and cannot release or share data 
without consulting with FNS. Access to records maintained within FNS is 
limited to those staff officials responsible for the subject system of 
records. Otherwise, access is limited to persons authorized and needing 
to use the records, including project directors, contract officers, 
programmers, analysts, statisticians, statistical clerks, and computer 
technicians on the staff of the contractors or in the FNS. Both systems 
utilize USDA's eAuthentication services to ensure the valid identity of 
the user.
    (2) Physical Safeguards: Paper records are stored in locked safes, 
locked files, and locked offices when not in use. Computer terminals 
used to process personal identifiable data are located in secured areas 
and are accessible only to authorized users. Backup records which are 
stored offsite shall be used and stored under the same secure 
conditions.
    (3) Procedural Safeguards: In order to access STARS or ALERT, each 
authorized individual is given a personal access ID and password. The 
individual's password must be changed at least every 45 days or 
whenever the individual feels it might have been compromised.
    Access to personal information contained in the STARS database and 
to the paper record files is restricted to those individuals who have 
been authorized by FNS and who have a need to know such information in 
performing their official duties in administering the FNA and other 
Federal and State laws. SSNs cannot be viewed on screen in STARS by 
those individuals who are not specifically authorized to view them. FNS 
personnel, project officers, and contract officers oversee compliance 
with these requirements. When appropriate, FNS personnel will review 
the site facilities to ensure that records have been maintained in 
accordance with the terms of this notice.

Retention and disposal:
    STARS and ALERT maintain personal identifying information 
indefinitely. The applications for authorization and reauthorization 
are kept in the FNS field offices for the duration each retail grocery 
store participates in the Program and then destroyed pursuant to the 
applicable document retention and disposal schedule.

System manager(s) and address:
    Director, Benefit Redemption Division, Food and Nutrition Service, 
United States Department of Agriculture, 3101 Park Center Drive, Room 
424, Alexandria, Virginia, 22302.

Notification procedure:
    Any individual may request information regarding this system of 
records from the system manager. The request must be in writing.

Record access procedures:
    An individual who wishes to request access to records in the system 
which pertains to the individual may submit a written request to the 
system manager. The envelope and the letter should be marked, ``Privacy 
Act Request.'' An individual may be required to reference the record by 
furnishing name, address, SSN, and/or other identifiers needed by FNS.

[[Page 81209]]

Contesting record procedures:
    Individuals desiring to contest or amend information maintained in 
the system should direct their request to the system manager. The 
request should include, as appropriate, the reasons for contesting it, 
and the proposed amendment to the information with supporting 
information to show how the record is inaccurate, incomplete, untimely, 
or irrelevant.

Record source categories:
    Information in this system comes from the authorization and 
reauthorization applications of stores and other entities which are 
currently participating in SNAP, as well as information on file for 
those entities which have previously participated in the program. 
Personal information in this system of records is also obtained from 
the owners and officers of such entities as reported on the 
authorization and reauthorization applications. The STARS database also 
keeps SNAP redemption history on such entities. The database maintains 
the dollar amount of SNAP benefits accepted by each entity currently 
authorized or previously authorized. ALERT maintains SNAP electronic 
transaction history of each entity currently authorized or previously 
authorized.

Exemptions claimed for the system:
    Pursuant to subsection (k)(2) of the Privacy Act, 5 U.S.C. 
552a(k)(2), this system of records is exempt from subsections (c)(3), 
(d), (e)(1), (e)(4)(G), (e)(4)(H), (e)(4)(I) and (f) of the Act.

[FR Doc. 2010-32457 Filed 12-23-10; 8:45 am]
BILLING CODE 3410-30-P