Privacy Act of 1974; System of Records, 40140-40147 [2018-17228]

Agencies

• DEPARTMENT OF VETERANS AFFAIRS

[Federal Register Volume 83, Number 156 (Monday, August 13, 2018)]
[Notices]
[Pages 40140-40147]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-17228]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF VETERANS AFFAIRS


Privacy Act of 1974; System of Records

AGENCY: Department of Veterans Affairs (VA), Debt Management Center.

ACTION: Notice of modified system of records.

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

SUMMARY: The Privacy Act of 1974 (5 U.S.C. 522a (e) (4)) requires that 
all agencies publish in the Federal Register a notice of the existence 
and character of their systems of records. Notice is hereby given that 
the Department of Veterans Affairs (VA) is modifying a system of 
records entitled ``Centralized Accounts Receivable System/Centralized 
Accounts Receivable On-Line System (CARS/CAROLS) (88VA244)''. This 
system was previously called ``Accounts Receivable Records VA'' 
(88VA244). This system had also been previously numbered ``88VA20A6''.

DATES: Comments on this modified system of records must be received no 
later than September 12, 2018. If no public comment is received during 
the period allowed for comment, or unless otherwise published in the 
Federal Register by VA, the modified system will become effective a 
minimum of 30 days after publication in the Federal Register. If VA 
receives public comments, VA shall review the comments to determine 
whether any changes to the notice are necessary.

ADDRESSES: Written comments may be submitted through 
www.Regulations.gov; by mail or hand-delivery to Director, Regulation 
Policy and Management (00REG), Department of Veterans Affairs, 810 
Vermont Ave. NW, Room 1064, Washington, DC 20420; or by fax to (202) 
273-9026 (not a toll-free number). Comments should indicate that they 
are submitted in response to ``Centralized Accounts Receivable System/
Centralized Accounts Receivable On-Line System (CARS/CAROLS)''. Copies 
of comments received will be available for public inspection in the 
Office of Regulation Policy and Management, Room 1063B, between the 
hours of 8:00 a.m. and 4:30 p.m., Monday through Friday (except 
holidays). Please call (202) 461-4902 for

[[Page 40141]]

an appointment. (This is not a toll-free number.) In addition, comments 
may be viewed online at www.Regulations.gov.

FOR FURTHER INFORMATION CONTACT: Chief, Support Services Division, Debt 
Management Center (189/00), U.S. Department of Veterans Affairs, Bishop 
Henry Whipple Federal Building, 1 Federal Drive, Ft. Snelling, 
Minnesota 55111. The internet email address for Debt Management Center 
is: [email protected].

SUPPLEMENTARY INFORMATION: Notification of this system of records was 
originally published under system number 88VA20A6 on November 3, 1994, 
at 59 FR 55155. The System Name has been changed to clarify the 
identity of the system. The revisions to the system of records were 
done to reflect current terminology and new citations for reference 
material. In some cases, routine uses have been more fully described 
and clarified to promote transparency. Routine uses 2 & 3 have been 
added to support an effective response in the event of a data breach. 
To broaden the application of the system of records to a department-
wide basis and to reflect consolidation of collection responsibilities 
for additional types of debts under the administration of VA's Debt 
Management Center (DMC) in Ft. Snelling, Minnesota, an altered system 
of records was published November 26, 1996 at 61 FR 60148. The Debt 
Collection Improvement Act of 1996 (DCIA), section 31001 of Pub. L. 
104-134, was enacted April 26, 1996 and provides for a Government-wide 
system of debt collection managed by the Department of the Treasury. 
The debt collection program adheres to VA security and reporting 
requirements under title 38, Code of Federal Regulations and other 
Federal regulations, as well as the Privacy Act of 1974, as amended (5 
U.S.C. 552a), and the appropriate provisions of the Internal Revenue 
Code, title 26, United States Code.

Signing Authority

    The Senior Agency Official for Privacy, or designee, approved this 
document and authorized the undersigned to sign and submit the document 
to the Office of the Federal Register for publication electronically as 
an official document of the Department of Veterans Affairs. John 
Oswalt, Executive Director for Privacy, Quality, Privacy, and Risk, 
Department of Veterans Affairs approved this document on June 1, 2018 
for publication.

    Dated: August 7, 2018.
Kathleen M. Manwell,
Program Analyst, VA Privacy Service, Office of Privacy, Information and 
Identity Protection, Quality, Privacy and Risk, Office of Information 
and Technology, Department of Veterans Affairs.
SYSTEM NAME AND NUMBER:
    Centralized Accounts Receivable System/Centralized Accounts 
Receivable On-Line System. (CARS/CAROLS, combined system referred to as 
CAO)--88VA244

SECURITY CLASSIFICATION:
    Unclassified.

SYSTEM LOCATION:
    Automated indebtedness records for first-party medical billing, pay 
administration, compensation, pension, educational assistance, 
survivors' and dependents' educational assistance and most home loan 
debts are maintained at VA's Financial Services Center (FSC) and 
Automation/Systems Development Center (AA/SDC) in Austin, Texas. 
Automated records of debts referred to the Department of Veterans 
Affairs for Government-wide cross-servicing authorized under 31 U.S.C. 
3711(g)(4) are maintained at VA's AA/SDC in Austin, Texas. Extracts of 
benefit and home loan debt automated records are maintained in the 
Veterans Service Network (VETSNET) for accounting and adjudication 
purposes. VETSNET is housed at the Austin Information Technology Center 
(AITC), located in Austin, Texas. The Benefits Delivery Network (BDN) 
is administered by the Benefit Delivery Center (BDC) in Hines, 
Illinois. First-party medical billing information is extracted from 
records maintained at VA medical facilities and in automated media as 
more fully described in the Privacy Act system of records, 24VA19, 
``Patient Medical Records--VA'' as published at 40 FR 38095 (Aug. 26, 
1975), and amended as follows: 40 FR 52125 (Nov. 7, 1975); 41 FR 2881 
(Jan. 20, 1976); 41 FR 11631 (Mar. 19, 1976); 42 FR 30557 (Jun. 15, 
1977); 44 FR 31058 (May 30, 1979); 45 FR 77220 (Nov. 21, 1980); 46 FR 
2766 (Jan. 12, 1981); 47 FR 28522 (Jun. 30, 1982); 47 FR 51841 (Nov. 
17, 1982); 50 FR 11610 (Mar. 22, 1985); 51 FR 25968 (Jul. 17, 1986); 51 
FR 44406 (Dec. 9, 1986); 52 FR 381 (Jan. 5, 1987); 53 FR 49818 (Dec. 9, 
1988); 55 FR 5112 (Feb. 13, 1990); 55 FR 37604 (Sept. 12, 1990); 55 FR 
42534 (Oct. 19, 1990); 56 FR 1054 (Jan. 10, 1991); 57 FR 28003 (Jun. 
23, 1992); 57 FR 4519 (Oct. 1, 1992); 58 FR 29853 (May 24, 1993); 58 FR 
40852 (Jul. 30, 1993); and, 58 FR 57674 (Oct. 26, 1993), 62 FR 35545, 
July 1, 1997; and 67 FR 72721, December 6, 2002. Automated and paper 
indebtedness records for the Civilian Health and Medical Program of the 
Department of Veterans Affairs (CHAMPVA) are maintained at the Health 
Administration Center (HAC) in Denver, Colorado and are more fully 
described in the Privacy Act system of records, 54VA17 ``Health 
Administration Center Civilian Health and Medical program Records-VA'' 
as published at 40 FR 38095 (Aug. 26, 1975) and amended at 53 FR 23845 
(Jun. 24, 1998), 53 FR 25238 (Jul. 5, 1988) and 56 FR 26186 (Jun. 6, 
1992). Pay administration indebtedness records are extracted from other 
automated and paper records maintained at all VA facilities and the 
Austin Finance Center and are more fully described in the Privacy Act 
system of records, 27VA047, ``Personnel and Accounting Integrated Data 
System'' as published at 40 FR 38095 (Aug. 26, 1975), and amended as 
follows: 48 FR 16372 (April 15, 1983); 50 FR 23100 (May 30, 1985); 51 
FR 6858 (Feb. 26, 1986); 51 FR 25968 (Jul. 17, 1986); 55 FR 42534 (Oct. 
19, 1990); 56 FR 23952 (May 24, 1991); 58 FR 39088 (Jul. 21, 1993); 58 
40852 (Jul. 30, 1993); and, 60 FR 35448 (Jul. 7, 1995); 62 FR 41483 
(Aug. 1, 1997), 62 FR 68362 (Dec. 31, 1997); and 77 FR 39346 (Jul. 2, 
2012). Certain paper records, microfilm and microfiche are maintained 
at the VA Debt Management Center (DMC), Ft. Snelling, Minnesota. 
Education loan, miscellaneous home loan and spina bifida monthly 
allowance automated, paper, microfilm and microfiche records are 
maintained at DMC. Automated and paper indebtedness records related to 
the All-Volunteer Force Educational Assistance Program are also 
maintained at DMC. Paper records related to benefit and home loan 
accounts receivable may be maintained in individual file folders 
located at the VA regional office having jurisdiction over the domicile 
of the claimant or the geographic area in which a property securing a 
VA guaranteed, insured or direct loan is located. Similarly, paper and 
automated records related to first-party medical billing and CHAMPVA 
are also maintained in individual patient medical records at VA health 
care facilities and HAC. Generally, and with the exception of claims 
against third-party insurers and certain first-party medical debts, 
automated records and papers maintained at regional offices, health 
care facilities and HAC are not used directly in the debt collection 
process unless they are forwarded by conventional mail, electronic mail 
or facsimile to DMC. Records provided to

[[Page 40142]]

the Department of Housing and Urban Development (HUD) for inclusion in 
the Credit Alert Verification System (CAIVRS) are located at the HUD 
Data Processing Center in Lanham, Maryland. Records referred to the 
Department of the Treasury for inclusion in the Treasury Offset Program 
(TOP) are located at the Financial Management Service Debt Collection 
Operations System in Hyattsville, Maryland.

SYSTEM MANAGER(S):
    Joseph Schmitt, Executive Director, Debt Management Center (189/
00), U.S. Department of Veterans Affairs, Bishop Henry Whipple Federal 
Building, 1 Federal Drive, Ft. Snelling, MN 55111. Email: 
[email protected].

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    Government records are maintained and managed under the authority 
set forth in 31 U.S.C. 3101 and 31 U.S.C. 3102. The purpose of the 
system is consistent with the financial management provisions of title 
31, United States Code, chapter 37, the pay administration provisions 
of title 5, United States Code, chapter 55, and special provisions 
relating to VA benefits in title 38, United States Code, chapter 53.

PURPOSE(S) OF THE SYSTEM:
    The purpose of this system is to maintain records of individuals, 
organizations and other entities: (1) Indebted to the United States as 
a result of their participation in benefit and health care programs 
administered by VA; (2) indebted as a result of erroneous pay 
administration; (3) indebted under any other program administered by 
any agency of the United States Government and whose indebtedness 
record has been referred to VA for Government-wide cross-servicing 
under 31 U.S.C. 3711(g)(4); and (4) indebted under any Federal, State 
or local government program and whose debt was referred to VA for 
collection under any valid interagency agreement. Information in this 
system of records is used for the administrative management and 
collection of debts owed the United States and any State or local 
government and for which records are maintained in accordance with the 
preceding sentence.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    Persons indebted to the United States Government as a result of 
their participation in benefit programs (including health care 
programs) administered by VA under title 38, United States Code, 
chapters 11, 13, 15, 17, 18, 21, 30, 31, 32, 33, 34, 35, 36 and 37, 
including persons indebted to the United States Government by virtue of 
their ownership, contractual obligation or rental of property owned by 
the Government or encumbered by a VA-guaranteed, insured, direct or 
vendee loan. The individuals covered are persons indebted to the United 
States Government as a result of their participation in a benefit 
program administered by VA, but who did not meet the requirements for 
receipt of such benefits or services. Persons indebted to the United 
States, a State or local government whose debts are referred to the 
Department of Veterans Affairs for Government-wide cross-servicing 
under 31 U.S.C. 3711(g)(4) or any valid interagency agreement. Persons 
indebted to the United States as the result of erroneous payment of pay 
or allowances or as the result of erroneous payment of travel, 
transportation or relocation expenses and allowances (previously and 
hereinafter referred to as ``pay administration'') under the provisions 
of title 5, United States Code, part III, subpart D.

CATEGORIES OF RECORDS IN THE SYSTEM:
    Information varies depending on the source of the debt. Identifying 
information including VA claim number, Social Security number, Tax 
Identification Number (TIN), name and address and, when appropriate, 
loan reference number, obtained from, among other sources, indebtedness 
records of Federal agencies other than VA and the following Privacy Act 
systems of records: ``Debt Collection Operations System--Treasury/
Financial Management Service'' (Treasury/FMS .014); ``Compensation, 
Pension, Education and Vocational Rehabilitation Records--VA'' (58VA21/
22/28); ``Loan Guaranty Home, Condominium and Manufactured Home Loan 
Applicant Records, Specially Adapted Housing Applicant Records, and 
Vendee Loan Applicant Records--VA'' (55VA26); ``Patient Medical 
Records--VA'' (24VA136); and, ``Health Administration Center Civilian 
Health and Medical Program Records--VA'' (54VA17). Initial indebtedness 
amount, amounts claimed for reimbursement type of benefit from which 
the debt arose, identifying number of the VA regional office with 
jurisdiction over the underlying benefit claim or property subject to 
default or foreclosure, station number of the VA health care facility 
rendering services, name of co-obligor and property address of the 
defaulted home loan from 58VA21/22/28, 55VA26, 24VA136 and 54VA17 
History of debt collection activity on the person, organization or 
entity includes correspondence, telephone calls, referrals to other 
Federal, State or local agencies, VA regional counsel, private 
collection and credit reporting agencies. Payments received, refunds 
made, interest amount, current balance of debt and indication of status 
of current VA benefit payments. Federal employment status obtained by 
computer matching with Government agencies and the United States Postal 
Service. No personal medical information concerning the nature of 
disease, injury or disability is transmitted to or maintained in this 
system of records.

RECORD SOURCE CATEGORIES:
    The records in this system are derived from five other systems of 
records as set forth in ``Categories Of Records In The System,'' above, 
persons indebted to the United States by virtue of their participation 
in programs administered by VA or other Government agencies, dependents 
of those persons, fiduciaries for those persons (VA or court 
appointed), other Federal agencies, State and local agencies, private 
collection agencies, consumer reporting agencies, State, local and 
county courts and clerks, other third parties and other VA records.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND PURPOSES OF SUCH USES:
    For purposes of the following routine uses:
    (a) The term, ``veteran'', includes present, former or retired 
members of the United States Armed Forces, the reserve forces or 
National Guard;
    (b) The term, ``debtor'', means any person falling within the 
categories of individuals covered by this system, as set forth above. A 
``debtor'' may be a veteran, as defined above, a veteran's dependent 
entitled to VA benefits (including health care) in his or her own right 
or a person who is neither a veteran nor a veteran's dependent for 
benefit purposes; and,
    (c) The terms, ``benefit'', ``benefit program'' and ``VA program'' 
include any gratuitous benefit, home loan (including miscellaneous home 
loan) or health care (including CHAMPVA) program administered by the 
Secretary of Veterans Affairs.
    1. Congress
    VA may disclose information from the record of an individual in 
response to an inquiry from the congressional office made at the 
request of that individual.
    VA must be able to provide information about individuals to 
adequately respond to inquiries from Members of Congress at the request 
of

[[Page 40143]]

constituents who have sought their assistance.
    2. Data breach response and remedial efforts
    To appropriate agencies, entities, and persons when (1) VA suspects 
or has confirmed that there has been a breach of the system of records; 
(2) VA has determined that as a result of the suspected or confirmed 
breach there is a risk of harm to individuals, VA (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 VA's efforts to respond to the suspected or confirmed breach or to 
prevent, minimize, or remedy such harm.
    This routine use permits disclosures by the Department to respond 
to a suspected or confirmed data breach, including the conduct of any 
risk analysis or provision of credit protection services as provided in 
38 U.S.C. 5724.
    A. Effective Response. A federal agency's ability to respond 
quickly and effectively in the event of a breach of federal data is 
critical to its efforts to prevent or minimize any consequent harm. An 
effective response necessitates disclosure of information regarding the 
breach to those individuals affected by it, as well as to persons and 
entities in a position to cooperate, either by assisting in 
notification to affected individuals or playing a role in preventing or 
minimizing harms from the breach.
    B. Disclosure of Information. Often, the information to be 
disclosed to such persons and entities is maintained by federal 
agencies and is subject to the Privacy Act (5 U.S.C. 552a). The Privacy 
Act prohibits the disclosure of any record in a system of records by 
any means of communication to any person or agency absent the written 
consent of the subject individual, unless the disclosure falls within 
one of twelve statutory exceptions. In order to ensure an agency is in 
the best position to respond in a timely and effective manner, in 
accordance with 5 U.S.C. 552a(b)(3) of the Privacy Act, agencies should 
publish a routine use for appropriate systems specifically applying to 
the disclosure of information in connection with response and remedial 
efforts in the event of a data breach.
    3. Data breach response and remedial efforts with another Federal 
agency VA may, on its own initiative, disclose information from this 
system to another Federal agency or Federal entity, when VA 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.
    4. Law Enforcement
    VA may, on its own initiative, disclose information in this system, 
except the names and home addresses of veterans and their dependents, 
which is relevant to a suspected or reasonably imminent violation of 
law, whether civil, criminal or regulatory in nature and whether 
arising by general or program statute or by regulation, rule or order 
issued pursuant thereto, to a Federal, state, local, tribal, or foreign 
agency charged with the responsibility of investigating or prosecuting 
such violation, or charged with enforcing or implementing the statute, 
regulation, rule or order. On its own initiative, VA may also disclose 
the names and addresses of veterans and their dependents to a Federal 
agency charged with the responsibility of investigating or prosecuting 
civil, criminal or regulatory violations of law, or charged with 
enforcing or implementing the statute, regulation, rule or order issued 
pursuant thereto.
    VA must be able to provide on its own initiative information that 
pertains to a violation of laws to law enforcement authorities in order 
for them to investigate and enforce those laws. Under 38 U.S.C. 5701(a) 
and (f), VA may only disclose the names and addresses of veterans and 
their dependents to Federal entities with law enforcement 
responsibilities. This is distinct from the authority to disclose 
records in response to a qualifying request from a law enforcement 
entity, as authorized by Privacy Act subsection 5 U.S.C. 552a(b)(7).
    5. Litigation
    VA may disclose information from this system of records to the 
Department of Justice (DoJ), either on VA's initiative or in response 
to DoJ's request for the information, after either VA or DoJ determines 
that such information is relevant to DoJ's representation of the United 
States or any of its components in legal proceedings before a court or 
adjudicative body, provided that, in each case, the agency also 
determines prior to disclosure that release of the records to the DoJ 
is a use of the information contained in the records that is compatible 
with the purpose for which VA collected the records. VA, on its own 
initiative, may disclose records in this system of records in legal 
proceedings before a court or administrative body after determining 
that the disclosure of the records to the court or administrative body 
is a use of the information contained in the records that is compatible 
with the purpose for which VA collected the records.
    To determine whether to disclose records under this routine use, VA 
will comply with the guidance promulgated by the Office of Management 
and Budget in a May 24, 1985, memorandum entitled ``Privacy Act 
Guidance--Update,'' currently posted at https://www.whitehouse.gov/omb/inforeg/guidance1985.pdf.
    VA must be able to provide information to DoJ in litigation where 
the United States or any of its components is involved or has an 
interest. A determination would be made in each instance that under the 
circumstances involved; the purpose is compatible with the purpose for 
which VA collected the information. This routine use is distinct from 
the authority to disclose records in response to a court order under 
subsection (b)(11) of the Privacy Act, 5 U.S.C. 552(b)(11), or any 
other provision of subsection (b), in accordance with the court's 
analysis in Doe v. DiGenova, 779 F.2d 74, 78-84 (D.C. Cir. 1985) and 
Doe v. Stephens, 851 F.2d 1457, 1465-67 (D.C. Cir. 1988).
    6. Contractors
    VA may disclose information from this system of records to 
individuals, organizations, private or public agencies, or other 
entities or individuals with whom VA has a contract or agreement to 
perform such services as VA may deem practicable for the purposes of 
laws administered by VA, in order for the contractor, subcontractor, 
public or private agency, or other entity or individual with whom VA 
has a contract or agreement to perform services under the contract or 
agreement.
    This routine use includes disclosures by an individual or entity 
performing services for VA to any secondary entity or individual to 
perform an activity that is necessary for individuals, organizations, 
private or public agencies, or other entities or individuals with whom 
VA has a contract or agreement to provide the service to VA.
    This routine use, which also applies to agreements that do not 
qualify as contracts defined by Federal procurement laws and 
regulations, is consistent with OMB guidance in OMB Circular A-130, 
App. I, paragraph 5a(1)(b) that agencies promulgate routine uses to 
address disclosure of

[[Page 40144]]

Privacy Act-protected information to contractors in order to perform 
the services contracts for the agency.
    7. Equal Employment Opportunity Commission (EEOC)
    VA may disclose information from this system to the EEOC when 
requested in connection with investigations of alleged or possible 
discriminatory practices, examination of Federal affirmative employment 
programs, or other functions of the Commission as authorized by law or 
regulation.
    VA must be able to provide information to EEOC to assist it in 
fulfilling its duties to protect employees' rights, as required by 
statute and regulation.
    8. Federal Labor Relations Authority (FLRA)
    VA may disclose information from this system to the FLRA, including 
its General Counsel, information related to the establishment of 
jurisdiction, investigation, and resolution of allegations of unfair 
labor practices, or in connection with the resolution of exceptions to 
arbitration awards when a question of material fact is raised; for it 
to address matters properly before the Federal Service Impasses Panel, 
investigate representation petitions, and conduct or supervise 
representation elections.
    VA must be able to provide information to FLRA to comply with the 
statutory mandate under which it operates.
    9. Merit Systems Protection Board (MSPB)
    VA may disclose information from this system to the MSPB, or the 
Office of the Special Counsel, when requested in connection with 
appeals, special studies of the civil service and other merit systems, 
review of rules and regulations, investigation of alleged or possible 
prohibited personnel practices, and such other functions promulgated in 
5 U.S.C. 1205 and 1206, or as authorized by law.
    VA must be able to provide information to MSPB to assist it in 
fulfilling its duties as required by statute and regulation.
    10. National Archives and Records Administration (NARA) and General 
Services Administration (GSA):
    VA may disclose information from this system to NARA and GSA in 
records management inspections conducted under title 44, U.S.C.
    NARA is responsible for archiving old records which are no longer 
actively used but may be appropriate for preservation, and for the 
physical maintenance of the Federal government's records. VA must be 
able to provide the records to NARA in order to determine the proper 
disposition of such records.
    11. Federal Agencies, for Computer Matches
    VA may disclose identifying information, including social security 
number, concerning veterans, spouses of veterans, and the beneficiaries 
of veterans to other federal agencies for the purpose of conducting 
computer matches to obtain information to determine or verify 
eligibility of veterans receiving VA benefits under Title 38, U.S.C.
    Office of Personal Management (OPM) may disclose limited individual 
identification information to another Federal agency for the purpose of 
matching and acquiring information held by that agency for OPM to use 
for the purposes stated for this system of records. OPM may act as an 
intermediary when a Veteran makes statements to OPM that are 
inconsistent with information furnished by the VA.
    A complete list of specific details of Computer Matches is listed 
below:
    A. Any information in this system may be disclosed, by computer 
matching or otherwise, in connection with any proceeding for the 
collection of an amount owed the United States when, in the judgment of 
the Secretary, or official generally delegated such authority under 
standard agency delegation of authority rules (38 CFR 2.6), such 
disclosure is deemed necessary and proper in accordance with 38 U.S.C. 
5701(b)(6) for debts. resulting from participation in VA benefit 
programs or pay administration, with 31 U.S.C. 3711(g)(5) for other 
debts referred to VA in its capacity as a Government-wide cross-
servicing facility or with a valid interagency agreement for collection 
services independent of the cross-servicing provisions of section 
3711(g)(4) and (g)(5).
    B. Identifying information, including the debtor's name, Social 
Security number and VA claim number, along with the amount of 
indebtedness, may be disclosed to any Federal agency, including the 
U.S. Postal Service, in the course of conducting computer matching to 
identify and locate delinquent debtors employed by or receiving 
retirement benefits from those agencies. Such debtors may be subject to 
offset of their pay or retirement benefits under the provisions of 5 
U.S.C. 5514.
    C. Any information in this system, including the nature and amount 
of a financial obligation as well as the history of debt collection 
activity against a debtor, may be disclosed to the Federal agency 
administering salary or retirement benefits to the debtor to assist 
that agency in initiating offset of salary or retirement benefits to 
collect delinquent debts owed the United States.
    D. The name(s) and address(es) of a debtor(s) may be disclosed to 
another Federal agency or to a contractor of that agency, at the 
written request of the head of that agency or designee of the head of 
that agency for the purpose of conducting Government research or 
oversight necessary to accomplish a statutory purpose of that agency.
    E. Debtors' social security numbers, VA claim numbers, loan account 
numbers and other information as is reasonably necessary to identify 
individual indebtedness accounts may be disclosed to the Department of 
Housing and Urban Development for inclusion in the Credit Alert 
Verification System (CAIVRS). Information in CAIVRS may be disclosed to 
all participating agencies and lenders who participate in the agencies' 
programs to enable them to verify information provided by new loan 
applicants and evaluate the creditworthiness of applicants. Records are 
disclosed to participating agencies and private-sector lenders by an 
ongoing computer matching program.
    F. Name, Social Security numbers and any other information 
reasonably necessary to ensure accurate identification may be disclosed 
to the Department of the Treasury, Internal Revenue Service, to obtain 
the mailing address of taxpayers who are debtors under this system of 
records. Disclosure is made by computer matching and pursuant to 26 
U.S.C. 6103(m)(2).
    G. Any information in a record under this system of records may be 
disclosed to the United States Government Accountability Office (GAO) 
to enable GAO to pursue collection activities authorized to that office 
or any other activities within their statutory authority.
    H. Any information in this system concerning a debt over 180 days 
delinquent may be disclosed, by computer matching or otherwise, to the 
Secretary of the Treasury or to any designated Government disbursing 
official for purposes of conducting administrative offset of any 
eligible Federal payments under the authority set forth in 31 U.S.C. 
3716. Payments subject to offset include those payments disbursed by 
the Department of the Treasury, the Department of Defense, the United 
States Postal Service, any Government corporation or any disbursing 
official of the United States designated by the Secretary of the 
Treasury. Subject to certain exemptions, Social Security, Black Lung, 
Railroad

[[Page 40145]]

Retirement benefits and tax refunds may be included in those Federal 
payments eligible for administrative offset.
    I. Any information in this system of records concerning a debt over 
180 days delinquent may be disclosed, by computer matching or 
otherwise, to the Secretary of the Treasury for appropriate collection 
or termination action, including the transfer of the indebtedness for 
collection or termination, in accordance with 31 U.S.C. 3711(g)(4), to 
a debt collection center designated by the Secretary of the Treasury, 
to a private collection agency or to the Department of Justice. The 
Secretary of the Treasury, through the Department of the Treasury, a 
designated debt collection center, a private collection agency or the 
Department of Justice, may take any appropriate action on a debt in 
accordance with the existing laws under which the debt arose.
    12. Federal Agencies, for Litigation
    VA may, on its own initiative, disclose information to another 
federal agency, court, or party in litigation before a court or other 
administrative proceeding conducted by an agency, if VA is a party to 
the proceeding and needs to disclose the information to protect its 
interests.
    13. Federal, State, Local Agencies, Hiring, Retention, Contract, 
Security Clearance, Grant, or Permit
    VA may disclose information in this system, except the names and 
home addresses of veterans and their dependents, to a Federal, State, 
or local agency maintaining civil or criminal violation records, or 
other pertinent information such as prior employment history, prior 
Federal employment background investigations, and/or personal or 
educational background in order for the VA to obtain information 
relevant to the hiring, transfer or retention of an employee, the 
letting of a contract, the granting of a security clearance, or the 
issuance of a grant or other benefit. The names and home addresses of 
veterans and their dependents may be disclosed to a Federal agency in 
order to respond to the VA inquiry.
    14. Federal Agencies, for Employment
    VA may disclose information from this system of records to a 
federal agency or the District of Columbia government, in response to 
its request, in connection with the hiring or retention of an employee 
and the issuance of a security clearance as required by law, the 
reporting of an investigation of an employee, the issuance of a 
license, grant, or other benefit by the requesting agency, to the 
extent that the information is relevant and necessary to the requesting 
agency's decision.
    15. State or Local Agency, for Hiring
    Any information in this system may be disclosed to a State or local 
agency, upon its official request, to the extent that it is relevant 
and necessary to that agency's decision on: The hiring, transfer or 
retention of an employee, the issuance of a security clearance, the 
letting of a contract, or the issuance or continuance of a license, 
grant or other benefit by the agency; provided, that if the information 
pertains to a veteran, the name and address of the veteran will not be 
disclosed unless the name and address is provided first by the 
requesting State or local agency.
    16. Consumer Reporting Agencies
    VA may disclose the name and address of a veteran or beneficiary, 
and other information as is reasonably necessary to identify such 
individual or concerning that individual's indebtedness to the United 
States by virtue of the person's participation in a benefits program 
administered by the Department, to a consumer reporting agency for the 
purpose of locating the individual, obtaining a consumer report to 
determine the ability of the individual to repay an indebtedness to the 
United States, or assisting in the collection of such indebtedness, 
provided that the provisions of 38 U.S.C. 57019(g)(2) and (4) have been 
met. The purpose of this information disclosure to a consumer-reporting 
agency is to assist VA in locating an individual, obtaining a consumer 
report to determine his or her ability to repay indebtedness, and to 
collect indebtedness.
    17. DOJ, for FTCA claims
    Relevant information may be disclosed to the Department of Justice 
and United States Attorneys in defense or prosecution of litigation 
involving the United States, and to federal agencies upon their request 
in connection with review of administrative tort claims filed under the 
Federal Tort Claims Act, 28 U.S.C. 2672.
    18. Treasury, IRS
    VA may disclose the name of a veteran or beneficiary, other 
information as is reasonably necessary to identify such individual, and 
any other information concerning the individual's indebtedness by 
virtue of a person's participation in a benefits program administered 
by VA, may be disclosed to the Department of the Treasury, Internal 
Revenue Service, for the collection of Title 38 benefit overpayments, 
overdue indebtedness, and/or costs of services provided to an 
individual not entitled to such services, by the withholding of all or 
a portion of the person's Federal income tax refund. The purpose of 
this disclosure is to collect a debt owed the VA by an individual by 
offset of his or her Federal income tax refund.
    19. Treasury, to Report Waived Debt as Income
    VA may disclose an individual's name, address, social security 
number, and the amount (excluding interest) of any indebtedness which 
is waived under 38 U.S.C. 3102, compromised under 4 CFR part 103, 
otherwise forgiven, or for which the applicable statute of limitations 
for enforcing collection has expired, to the Department of the 
Treasury, Internal Revenue Service, as a report of income under 26 
U.S.C. 61(a)(12).
    20. Guardians Ad Litem, for Representation
    VA may disclose information to a fiduciary or guardian ad litem in 
relation to his or her representation of a claimant in any legal 
proceeding, but only to the extent necessary to fulfill the duties of 
the fiduciary or guardian ad litem.
    This disclosure permits VA to provide individual information to an 
appointed VA Federal fiduciary or to the individual's guardian ad litem 
that is needed to fulfill appointed duties.
    21. Guardians, for Incompetent Veterans
    VA may disclose relevant information from this system of records in 
the course of presenting evidence to a court, magistrate, or 
administrative tribunal; in matters of guardianship, inquests, and 
commitments; to private attorneys representing veterans rated 
incompetent in conjunction with issuance of Certificates of 
Incompetency; and to probation and parole officers in connection with 
court-required duties.
    22. Claims Representatives
    VA may disclose information from this system of records relevant to 
a claim of a veteran or beneficiary, such as the name, address, the 
basis and nature of a claim, amount of benefit payment information, 
medical information, and military service and active duty separation 
information, at the request of the claimant to accredited service 
organizations, VA-approved claim agents, and attorneys acting under a 
declaration of representation, so that these individuals can aid 
claimants in the preparation, presentation, and prosecution of claims 
under the laws administered by VA. The name and address of a claimant 
will not, however, be disclosed to these individuals under this routine 
use if the claimant has not requested the assistance of an accredited 
service organization, claims agent or an attorney.

[[Page 40146]]

    VA must be able to disclose this information to accredited service 
organizations, VA-approved claim agents, and attorneys representing 
veterans so they can assist veterans by preparing, presenting, and 
prosecuting claims under the laws administered by VA.
    23. Third Parties
    A. Any information in this system, including available identifying 
information regarding a person, such as the person's name, address, 
Social Security number, VA insurance number, VA claim number, VA loan 
number, date of birth, employment information or identification number 
assigned by any Government component, may be disclosed, except to 
consumer reporting agencies, to a third party in order to obtain 
current name, address and credit report in connection with any 
proceeding for the collection of an amount owed the United States. Such 
disclosure may be made in the course of computer matching having the 
purpose of obtaining the information indicated above. Third parties may 
include other Federal agencies or State probate courts.
    B. Any information concerning a person's indebtedness to the United 
States, including personal information obtained from other Federal 
agencies through computer matching programs, may be disclosed to any 
third party, except consumer reporting agencies, in connection with any 
proceeding for the collection of any amount owed to the United States. 
Purposes of these disclosures include, but are not limited to (a) 
assisting the Government in collection of debts resulting from 
participation in Government programs of all categories and pay 
administration, and (b) initiating legal actions for prosecuting 
individuals who willfully or fraudulently obtain Government benefits, 
pay or allowances without entitlement. Third parties may include, but 
are not limited to, persons, organizations or other entities with 
contracts for collection services with the Government.
    C. The name and address of a debtor, other information as is 
reasonably necessary to identify such person, including personal 
information obtained from other Federal, state or local agencies as 
well as private sources through computer matching, and other 
information concerning the person's indebtedness to the United States, 
may be disclosed to third parties, including Federal, State and local 
government agencies to determine the debtor's employer. Such 
information may be used to initiate garnishment of disposable pay in 
accordance with the provisions of 31 U.S.C. 3720D.
    D. The name and address of a debtor, and such other information as 
may be necessary for identification of that debtor, may be disclosed to 
a debtor's employer for purposes of initiating garnishment of the 
disposable pay of that debtor under the provisions of 31 U.S.C. 3720D.
    E. The names and addresses of delinquent debtors, along with the 
amounts of their debts, may be published or otherwise publicly 
disseminated subject to the provisions of 31 U.S.C 3720E.
    F. Any information in this system may be disclosed to a third-party 
purchaser of debt more than 90 days delinquent and for which the sale 
of such debt was conducted pursuant to the provisions of 31 U.S.C. 
3711(i).

POLICIES AND PRACTICES FOR STORAGE OF RECORDS:
    Storage for CARS/CAROLS is located on disk packs for the mainframe 
part (CARS) and network storage for the CAROLS portion. All storage is 
housed within the Austin Information Technology Center. Records are 
maintained on magnetic tape and disk, microfilm, microfiche, optical 
disk and paper documents. DMC does not routinely maintain paper records 
of individual debtors in file folders with the exception of 
correspondence, and replies thereto, from Congress, the White House, 
members of the Cabinet and other similar sources. Paper records related 
to accounts receivable may be maintained in individual file folders 
located at VA regional offices, health care facilities, HAC and other 
agencies referring debts to VA in its capacity as a Government-wide 
cross-servicing debt collection center. Generally, and with the 
exception of claims against third-party insurers and certain first-
party medical debts, such papers maintained outside of DMC are not used 
directly in the debt collection process unless they are first forwarded 
to DMC. Records of debts referred to VA in its capacity as a 
Government-wide cross servicing debt collection center will be 
accessible only to employees of DMC. Information stored on magnetic 
media and related to the All-Volunteer Force Educational Assistance, 
education loan, miscellaneous home loan or HAC debt collection programs 
may be accessed through personal computers. Records provided to the 
Department of Housing and Urban Development for inclusion in the Credit 
Alert Verification System (CAIVRS) are maintained on magnetic media at 
the HUD Data Processing Center in Lanham, Maryland. Records provided to 
the Department of the Treasury for administrative offset or referral to 
a designated debt collection center, private collection agency or the 
Department of Justice are maintained on magnetic media at the Financial 
Management Service Debt Collection Operations System in Hyattsville, 
Maryland. For VA benefit debts other than miscellaneous home loan, 
first-party medical and CHAMPVA, identifying information, the amount of 
the debt and benefit source of the debt may be stored on magnetic media 
in records that serve as the database for the VA Benefits Delivery 
Network (BDN) and Veterans Service Network (VETSNET). BDN and VETSNET 
are operated for the adjudication of VA claims and the entry of certain 
fiscal transactions. The identifying information, the amount of the 
debt and benefit source of the debt is transmitted to the Centralized 
Accounts Receivable System (CARS) or a personal computer local area 
network system before collection activity commences. When a debtor is 
awarded gratuitous benefits under VA programs, the BDN and VETSNET may 
operate to offset all or part of retroactive funds awarded, if any, to 
reduce the balance of the indebtedness. The Veterans Health Information 
Systems and Technology Architecture (VISTA), through its various 
modules, are used to create and store first-party medical charges and 
debts associated with the provision of health care benefits. The 
identifying information about the person, the amount of the debt and 
program source of the debt may be transmitted to CARS as part of the 
collection process. When a person receives care under the auspices of 
VA, a VA medical facility may collect all or part of a charge or debt.

POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:
    Paper documents, microfilm and microfiche related to VA claims and 
debts are indexed by VA file number or Social Security Number or date 
of receipt. Automated records of VA claims and debts are indexed by VA 
claim number, Social Security account number, name and loan account 
number in appropriate circumstances. Paper documents, microfilm, 
microfiche and automated records of pay administration debts and debts 
referred to VA for cross servicing are indexed by Social Security 
account number or Taxpayer Identification Number. Records in CAIVRS may 
only be retrieved by Social Security number.

[[Page 40147]]

POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:
    Microfilm and microfiche are retained in metal cabinets in DMC for 
25 years. CARS records are retained until termination of debt 
collection (payment in full, write off, compromise or waiver). All 
other automated storage media are retained and disposed of in 
accordance with disposition authorization approved by the Archivist of 
the United States. DMC generally forwards all substantive paper 
documents to VA regional offices, health care facilities and CHAMPVA 
Center for storage in claims files, patient treatment files, imaging 
systems or loan files. Those documents are retained and disposed of in 
accordance with the appropriate system of records. Information provided 
to HUD for CAIVRS is stored on magnetic tape. The tapes are returned to 
VA for updating each month. HUD does not keep separate copies of the 
tapes. Information provided to the Department of the Treasury for the 
Treasury Offset Program is transferred electronically and stored by 
Treasury on magnetic media. In the case of CARS/CAROLS there are no 
physical items, only electronic. The electronic records being keep on 
CARS/CAROLS change daily and exist until the debt is otherwise settled. 
There is no history currently being kept by this system and no 
archiving.

ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:
    1. Physical Security:
    (a) Access to working spaces and document storage areas in DMC is 
restricted by cipher locks and to VA employees on a need-to-know basis. 
Generally, document storage areas in VA offices other than DMC are 
restricted to VA employees on a need-to-know basis. VA offices are 
generally protected from outside access by the Federal Protective 
Service or other security personnel. Strict control measures are 
enforced to ensure that access to and disclosure from documents, 
microfilm and microfiche are limited to a need-to-know basis.
    (b) Access to CAROLS data telecommunications terminals is by 
authorization controlled by the site security officer. The security 
officer is assigned responsibility for privacy-security measures, 
especially for review of violation logs, information logs and control 
of password distribution.
    (c) Access to data processing centers is generally restricted to 
center employees, custodial personnel, Federal Protective Service and 
other security personnel. Access to computer rooms is restricted to 
authorized operational personnel through electronic locking devices. 
All other personnel gaining access to computer rooms are escorted.
    2. CAROLS and Personal Computer Local Area Network (LAN) Security:
    (a) Usage of CAROLS and LAN terminal equipment is protected by 
password access. Electronic keyboard locks are activated on security 
errors.
    (b) At the data processing centers, identification of magnetic 
media containing data is rigidly enforced using labeling techniques. 
Automated storage media which are not in use are stored in tape 
libraries which are secured in locked rooms. Access to programs is 
controlled at three levels: Programming, auditing and operations. 
Access to CARS is maintained and control via the CUPS application which 
allows management at DMC to request specific staff to have specific 
levels of access within the system. Access to CAROLS is maintained by 
the St. Paul VBA RO National Support Center staff. DMC makes requests 
for access for specific staff and the St. Paul RO NSC staff updates the 
system accordingly.
    3. CAIVRS Security: Access to the HUD data processing center from 
which CAIVRS is operated is generally restricted to center employees 
and authorized contact employees. Access to computer rooms is 
restricted to authorized operational personnel through locking devices. 
All other persons gaining access to computer rooms are escorted. 
Records in CAIVRS use Social Security numbers as identifiers. Access to 
information files is restricted to authorized employees of 
participating agencies and authorized employees of lenders who 
participate in the agencies' programs. Access is controlled by agency 
distribution of passwords. Information in the system may be accessed by 
use of a touch-tone telephone by authorized agency and lender employees 
on a need-to-know basis.
    4. Department of the Treasury Security: Access to the system is on 
a need-to-know basis, only, as authorized by the system manager. 
Procedural and physical safeguards are utilized to include 
accountability, receipt records and specialized communications 
security. The data system has an internal mechanism to restrict access 
to authorized officials. The building is patrolled by uniformed 
security guards.

RECORD ACCESS PROCEDURES:
    Individuals seeking information regarding access to and contesting 
of records maintained by VA may write, call or visit the nearest VA 
regional office. Address locations are listed in VA Appendix 1 of 
58VA21/22/28.

CONTESTING RECORD PROCEDURES:
    See record access procedures above.

NOTIFICATION PROCEDURES:
    An individual, who wishes to determine whether a record is being 
maintained in this system under his or her name or other personal 
identifier, or wants to determine the contents of such record, should 
submit a written request or apply in person to the nearest VA regional 
office or center. Address locations are listed in VA Appendix 1 of 
58VA21/22/28. VA employees wishing to inquire whether the system of 
records contains employee productivity information about themselves 
should contact their supervisor at the regional office or center of 
employment.

EXEMPTIONS PROMULGATED FOR THE SYSTEM:
    None.

HISTORY:
    88VA244 ``Accounts Receivable Records--VA'' published at 63 FR 
16864 on 4/6/1998.

[FR Doc. 2018-17228 Filed 8-10-18; 8:45 am]
 BILLING CODE 8320-01-P