77816 Federal Register / Vol. 69, No. 248 / Tuesday, December 28, 2004 / Notices 

30The SROs proposed to define ‘‘material 

support’’ to mean ‘‘directly or indirectly providing 

more than 25% of a person’s income in the prior 

calendar year. Persons living in the same household 

are deemed to be providing each other with 

material support.’’ See NYSE Rule 470(F)(3) and 

NASD Rule 2712(d)(3).

31 ‘‘Material support’’ is defined to include 

persons living in the same household or who 

receive more than 25% of their ‘‘income’’ from the 

officer or director. However, it may exclude close 

relations—such as a son or daughter—who do not 

live in the same household and to do not receive 

more than 25% of their ‘‘income’’ from the officer 

or director.

32See Rule 100 of Regulation M for definition of 

‘‘completion of participation in a distribution.’’ 17 

CFR 242.100. In order to comply with Regulation 

M, an underwriter or other distribution participant 

generally cannot commence trading in IPO 

securities in the secondary market unless they have 

completed their participation in the offering. 33 17 CFR 200.30–3(a)(12).

‘‘materially supported’’ by an executive 

officer or director.30 The Commission 

requests comment on whether the 

proposed spinning restrictions should 

also apply to ‘‘immediate family 

members’’ who do not live in the same 

household and do not receive more than 

25% of their ‘‘income’’ from the officer 

or director, as is the case with the 

Voluntary Initiative and the IPO 

Report.31 Should the proposed spinning 

restrictions also prohibit investment 

banking personnel from participating in 

the member firm’s allocation of IPO 

shares to specific individual customers, 

as in the Voluntary Initiative?

In addition, the Commission 

specifically solicits comment on 

whether the proposals concerning 

‘‘returned shares’’ in NYSE Rule 

470(D)(3) and NASD Rule 2712(e)(3) 

should clarify any possible implications 

under Regulation M, particularly with 

respect to continuation of the 

distribution.32

Persons making written submissions 

should file six copies thereof with the 

Secretary, Securities and Exchange 

Commission, 450 Fifth Street, NW., 

Washington, DC 20549–0609. 

Comments also may be submitted 

electronically at the following e-mail 

address: rule-comments@sec.gov. All 

comment letters should refer to File 

Nos. SR–NYSE–2004–12 and SR–

NASD–2003–140. These file numbers 

should be included on the subject line 

if e-mail is used. To help us process and 

review comments more efficiently, 

comments should be sent in hardcopy 

or by e-mail but not by both methods. 

Copies of the submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

changes that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule changes between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for inspection and copying in 

the Commission’s Public Reference 

Room. Copies of such filings will also be 

available for inspection and copying at 

the principal offices of the NYSE and 

NASD. All submissions should refer to 

File Nos. SR–NYSE–2004–12 and SR–

NASD–2003–140 and should be 

submitted by January 18, 2005.

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.33

Margaret H. McFarland, 

Deputy Secretary.

[FR Doc. 04–28274 Filed 12–27–04; 8:45 am] 

BILLING CODE 8010–01–P

SMALL BUSINESS ADMINISTRATION

Interest Rates 

The Small Business Administration 

publishes an interest rate called the 

optional ‘‘peg’’ rate (13 CFR 120.214) on 

a quarterly basis. This rate is a weighted 

average cost of money to the 

government for maturities similar to the 

average SBA direct loan. This rate may 

be used as a base rate for guaranteed 

fluctuating interest rate SBA loans. This 

rate will be 4.5 (41⁄2) percent for the 

January-March quarter of FY 2005.

James E. Rivera, 

Associate Administrator for Financial 

Assistance.

[FR Doc. 04–28397 Filed 12–27–04; 8:45 am] 

BILLING CODE 8025–01–P

SOCIAL SECURITY ADMINISTRATION

Privacy Act of 1974, as Amended; New 

System of Records and New Routine 

Use Disclosures

AGENCY: Social Security Administration 

(SSA).

ACTION: Proposed new system of records 

and proposed routine uses. 

SUMMARY: In accordance with the 

Privacy Act (5 U.S.C. 552a(e)(4) and 

(e)(11)), we are issuing public notice of 

our intent to establish a new system of 

records entitled Medicare Part D and 

Part D Subsidy File, 60–0321, and 

routine uses applicable to the system of 

records. We also are issuing notice that 

we may disclose personally identifiable 

information from the Medicare Part D 

and Part D Subsidy File to consumer 

reporting agencies in accordance with 5 

U.S.C. 552a(b)(12) and 31 U.S.C. 

3711(e). We invite public comment on 

this proposal.

DATES: We filed a report of the proposed 

Medicare Part D and Part D Subsidy File

and the applicable routine uses with the 

Chairman of the Senate Committee on 

Governmental Affairs, the Chairman of 

the House Committee on Government 

Reform, and the Director, Office of 

Information and Regulatory Affairs, 

Office of Management and Budget 

(OMB) on December 16, 2004. The 

proposed Medicare Part D and Part D 

Subsidy File system of records and the 

proposed routine uses will become 

effective on January 25, 2005, unless we 

receive comments warranting that they 

not be effective.

ADDRESSES: Interested individuals may 

comment on this publication by writing 

to the Executive Director, Office of 

Public Disclosure, Office of the General 

Counsel, Social Security 

Administration, Room 3–A–6 

Operations Building, 6401 Security 

Boulevard, Baltimore, Maryland 21235–

6401. All comments received will be 

available for public inspection at the 

above address.

FOR FURTHER INFORMATION CONTACT: Ms. 

Christine W. Johnson, Strategic Issues 

Team, Office of Public Disclosure, 

Office of the General Counsel, Social 

Security Administration, Room 3–C–1 

Operations Building, 6401 Security 

Boulevard, Baltimore, Maryland 21235–

6401, e-mail address at 

chris.w.johnson@ssa.gov, or by 

telephone at (410) 965–8563.

SUPPLEMENTARY INFORMATION: 

I. Background and Purpose of the 

Proposed New Medicare Part D and 

Part D Subsidy File System of Records 

A. General Background 

On December 8, 2003, the Medicare 

Prescription Drug, Improvement, and 

Modernization Act (MMA) of 2003, was 

signed into law (Public Law 108–173). 

The MMA creates a voluntary 

prescription drug benefit program under 

new Part D of Medicare for all 

individuals eligible for Medicare Part A 

or Part B under which a monthly 

premium is required to assist in the 

purchase of prescription drugs. The new 

coverage, which is effective January 1, 

2006, will assist Medicare-eligible 

seniors, people with disabilities and 

persons with end-stage renal disease 

with their prescription drug costs. In 

2006, almost all of the 43 million 

Medicare beneficiaries will have a 

chance to enroll in the subsidized drug 

cost program. 

The MMA also created a premium 

subsidy program for Medicare 

Federal Register / Vol. 69, No. 248 / Tuesday, December 28, 2004 / Notices 77817

beneficiaries with limited means. This 

program limits beneficiaries’ premiums, 

co-payments and deductibles if they 

have low incomes and limited assets. 

Low-income status under Part D is 

income of less than 150% of the Federal 

poverty guidelines for a family of the 

applicable size. Low assets are resources 

of no more than $10,000 for an 

individual or $20,000 for a couple, 

which will change after 2006 according 

to the Consumer Price Index. We expect 

approximately 5 million beneficiaries to 

apply for the low-income assistance 

program in 2006 and about 3.3 million 

are expected to be approved. 

The MMA introduces considerable 

changes to existing Medicare processes 

and supporting automation systems 

within SSA. For example, in response to 

the new legislation, SSA will implement 

significant enhancements to key 

programmatic and management 

information systems, create new 

Medicare-specific systems and 

databases, and enhance or create new 

data exchange agreements with multiple 

government agencies to support this 

initiative. The new enhancements will 

support—

• Selection of initial and 

subsequently entitled Medicare 

beneficiaries (e.g., those who attain age 

65 after the initial selection); 

• Screening for individuals with lowincome and limited assets, including 

‘‘deemed eligible’’ individuals that do 

not need to apply for the premium 

subsidy; 

• Prospective eligibility and effective 

month determinations (and subsequent 

redeterminations) for the Part D subsidy; 

• Data exchanges with other 

government agencies for income and 

resource data; 

• Generating and mailing outreach 

notices and applications to individuals 

potentially eligible for the premium 

subsidy; 

• Subsidy calculations; 

• Collection of subsidy application 

data via machine-readable application 

forms, the Internet and the Intranet; and 

• Medicare Part D subsidy appeals. 

To this end, the Medicare Part D and 

Part D Subsidy File will encompass all 

related information from the initial 

intake process through the 

administrative appeals process. 

Information from the application will be 

created, maintained and stored 

electronically and source systems 

within SSA will interface with the 

Medicare Part D and Part D Subsidy File

to support the subsidy application 

process.

Because SSA will maintain and 

retrieve information from the proposed 

Medicare Part D and Part D Subsidy File

using Social Security numbers (SSN) 

and/or names, the proposed Medicare 

Part D and Part D Subsidy File will 

constitute a ‘‘system of records’’ under 

the Privacy Act. 

B. Collection and Maintenance of Data 

in the Medicare Part D and Part D 

Subsidy File System of Records 

The Medicare Part D and Part D 

Subsidy File will include identifying 

information about beneficiaries and 

potential applicants for subsidy benefits 

administered by SSA. See the 

‘‘Categories of Records’’ section of the 

notice below for a full description of the 

data that will be maintained in the 

system of records. 

II. Proposed Routine Use Disclosures of 

Data Maintained in the Proposed 

Medicare Part D and Part D Subsidy 

File System of Records 

A. Proposed Routine Use Disclosures 

We are proposing to establish the 

following routine use disclosures of 

information that will be maintained in 

the proposed new Medicare Part D and 

Part D Subsidy File system of records: 

1. To the Office of the President for 

the purpose of responding to an 

individual pursuant to an inquiry 

received from that individual or from a 

third party on his or her behalf. 

We will disclose information under 

this routine use only in situations in 

which an individual may contact the 

Office of the President, seeking that 

Office’s assistance in a matter relating to 

the Medicare Part D and Part D Subsidy 

File. Information will be disclosed when 

the Office of the President makes an 

inquiry and indicates that it is acting on 

behalf of the individual whose record is 

requested. 

2. To a congressional office in 

response to an inquiry from that office 

made at the request of the subject of a 

record. 

We will disclose information under 

this routine use only in situations in 

which an individual may ask his or her 

congressional representative to 

intercede in a matter relating to the 

Medicare Part D and Part D Subsidy 

File. Information will be disclosed when 

the congressional representative makes 

an inquiry and indicates that he or she 

is acting on behalf of the individual 

whose record is requested. 

3. To the Department of Justice (DOJ), 

a court or other tribunal, or another 

party before such tribunal when: 

(a) SSA, or any component thereof, or 

(b) Any SSA employee in his/her 

official capacity; or 

(c) Any SSA employee in his/her 

individual capacity where DOJ (or SSA 

where it is authorized to do so) has 

agreed to represent the employee; or 

(d) The United States or any agency 

thereof where SSA determines that the 

litigation is likely to affect the 

operations of SSA or any of its 

components

is party to litigation or has an interest 

in such litigation, and SSA determines 

that the use of such records by DOJ, a 

court or other tribunal, or another party 

before such tribunal is relevant and 

necessary to the litigation, provided, 

however, that in each case, SSA 

determines that such disclosure is 

compatible with the purpose for which 

the records were collected. 

However, any information defined as 

‘‘return or return information’’ under 26 

U.S.C. 6103 of the Internal Revenue 

Code (IRC) will not be disclosed unless 

authorized by the IRC, the Internal 

Revenue Service (IRS), or IRS 

Regulations. 

We will disclose information under 

this routine use only as necessary to 

enable DOJ to effectively defend SSA, 

its components or employees in 

litigation involving the proposed system 

of records or when the United States is 

a party to litigation and SSA has an 

interest in the litigation. 

4. Information may be disclosed to 

DOJ for: 

(a) Investigating and prosecuting 

violations of the Social Security Act to 

which criminal penalties attach, 

(b) Representing the Commissioner, or 

(c) Investigating issues of fraud by 

agency officers or employees, or 

violation of civil rights. 

We will disclose information under 

this routine use only as necessary to 

enable DOJ to represent SSA in matters 

concerning violations of the Social 

Security Act; to represent the 

Commissioner of Social Security or to 

investigate issues of fraud by SSA 

officers or employees or violation of 

civil rights. 

5. To applicants, claimants, 

prospective applicants or claimants, 

other than the data subject, and their 

authorized representatives to the extent 

necessary for the purpose of pursuing 

Medicare Part D and Part D subsidy 

entitlement or appeals rights. 

We will disclose information under 

this routine use only as necessary to 

enable authorized representatives to 

pursue entitlement to or appeal rights 

for the Medicare Part D or Part D 

subsidy on behalf of the claimant.

6. To Federal, State, or local agencies 

(or agents on their behalf) for 

administering cash or non-cash income 

maintenance or health maintenance 

programs (including programs under the 

77818 Federal Register / Vol. 69, No. 248 / Tuesday, December 28, 2004 / Notices 

Social Security Act). Such disclosures 

include, but are not limited to, release 

of information to: 

(a) The Railroad Retirement Board for 

administering provisions of the Railroad 

Retirement and Social Security Acts 

relating to railroad employment and for 

administering the Railroad 

Unemployment Insurance Act; 

(b) The Department of Veterans 

Affairs (VA) for administering 38 U.S.C. 

412, and upon request, information 

needed to determine eligibility for or 

amount of VA benefits or verifying other 

information with respect thereto; 

(c) The Department of Labor for 

administering provisions of Title IV of 

the Federal Coal Mine Health and Safety 

Act, as amended by the Black Lung 

Benefits Act; 

(d) State agencies for making 

determinations of Medicaid eligibility; 

(e) State agencies for making 

determinations of food stamp eligibility 

under the food stamp program; 

(f) State audit agencies for auditing 

Medicaid eligibility considerations; and 

(g) State welfare departments 

pursuant to agreements with SSA for 

administration of State supplementation 

payments; for enrollment of welfare 

recipients for medical insurance under 

section 1843 of the Act; and for 

conducting independent quality 

assurance reviews of Supplemental 

Security Income recipient records, 

provided that the agreement for Federal 

administration of the supplementation 

provides for such an independent 

review. 

We will disclose information under 

this routine use only for the purpose of 

supporting other government agencies 

that administer programs which have 

the same compatible purposes as SSA 

programs, e.g., eligibility, benefit 

amounts, or other matters of benefit 

status in a Social Security program and 

the information is relevant to 

determining the same matters in the 

other program. 

7. To Internal Revenue Service, 

Department of the Treasury, for the 

purpose of auditing SSA’s compliance 

with the safeguard provisions of the 

Internal Revenue Code of 1986, as 

amended. 

This proposed routine use would 

allow the IRS to audit SSA’s 

maintenance of earnings and wage 

information in the Medicare Part D and 

Part D Subsidy File to ensure that SSA 

complies with the safeguard 

requirements of the IRC. 

8. To the Centers for Medicare & 

Medicaid Services (CMS), for the 

purpose of administering Medicare Part 

D enrollment and premium collection 

processes. 

We will disclose information under 

this routine use only for the purpose of 

assisting in the administration of 

Medicare Part D enrollment and 

premium collection. 

9. To Federal and State agencies for 

administering the Medicare Part D and 

Part D subsidy under the MMA of 2003. 

Such disclosures include, but are not 

limited to, release of information to: 

(a) The Bureau of Public Debt, 

Department of Treasury; 

(b) The Internal Revenue Service; and 

(c) The Office of Child Support and 

Enforcement for the purpose of assisting 

in the verification of eligibility for the 

prescription drug subsidy. 

We will disclose information under 

this routine use only for the purpose of 

supporting the administration of the 

prescription drug subsidy program 

under the MMA of 2003. 

10. To a Federal, State, or 

congressional support agency (e.g., the 

Congressional Budget Office and the 

Congressional Research Staff in the 

Library of Congress) for research, 

evaluation, or statistical studies. Such 

disclosures include, but are not limited 

to, release of information in assessing 

the extent to which one can predict 

eligibility for Supplemental Security 

Income (SSI) payments or Social 

Security disability insurance (SSDI) 

benefits; examining the distribution of 

Social Security benefits by economic 

and demographic groups and how these 

differences might be affected by possible 

changes in policy; analyzing the 

interaction of economic and noneconomic variables affecting entry and 

exit events and duration in the Title II 

Old Age, Survivors, and Disability 

Insurance and the Title XVI SSI 

disability programs; and analyzing 

retirement decisions focusing on the 

role of Social Security benefit amounts, 

automatic benefit recomputation, the 

delayed retirement credit, and the 

retirement test, if SSA: 

(a) Determines that the routine use 

does not violate legal limitations under 

which the record was provided, 

collected or obtained; 

(b) Determines that the purpose for 

which the proposed use is to be made: 

(i) Cannot reasonably be 

accomplished unless the record is 

provided in a form that identifies 

individuals; 

(ii) Is of sufficient importance to 

warrant the effect on, or risk to, the 

privacy of the individual which such 

limited additional exposure of the 

record might bring; 

(iii) Has reasonable probability that 

the objective of the use would be 

accomplished; 

(iv) Is of importance to the Social 

Security program or the Social Security 

beneficiaries or is for an 

epidemiological research project that 

relates to the Social Security program or 

beneficiaries; 

(c) Requires the recipient of 

information to: 

(i) Establish appropriate 

administrative, technical, and physical 

safeguards to prevent unauthorized use 

or disclosure of the record and agree to 

on-site inspection by SSA’s personnel, 

its agents, or by independent agents of 

the recipient agency of those safeguards; 

(ii) Remove or destroy the information 

that enables the individual to be 

identified at the earliest time at which 

removal or destruction can be 

accomplished consistent with the 

purpose of the project, unless the 

recipient receives written authorization 

from SSA that it is justified, based on 

research objectives, in retaining such 

information; 

(iii) Make no further use of the 

records except 

(a) Under emergency circumstances 

affecting the health or safety of any 

individual following written 

authorization from SSA; 

(b) For disclosure to an identified 

person approved by SSA for the purpose 

of auditing the research project; 

(iv) Keep the data as a system of 

statistical records. A statistical record is 

one which is maintained only for 

statistical and research purposes and 

which is not used to make any 

determination about an individual; 

(d) Secures a written statement by the 

recipient of the information attesting to 

the recipient’s understanding of, and 

willingness to abide by, these 

provisions. 

We will disclose information under 

this routine use only for the purpose of 

allowing new studies to occur regarding 

the administration of the Social Security 

program and other related programs.

11. To the Department of Homeland 

Security, Bureau of Citizenship and 

Immigration Services (BCIS), upon 

request, to identify and locate aliens in 

the United States pursuant to section 

290(b) of the Immigration and 

Nationality Act (8 U.S.C. 1360(b)). 

We will disclose information under 

this routine use only for the purpose of 

identifying and locating illegal aliens 

pursuant to section 290(b) of the 

Immigration and Nationality Act (8 

U.S.C. 1360(b)). 

12. To contractors and other Federal 

agencies, as necessary, for the purpose 

of assisting SSA in the efficient 

administration of its programs. We 

contemplate disclosing information 

under this routine use only in situations 

Federal Register / Vol. 69, No. 248 / Tuesday, December 28, 2004 / Notices 77819

in which SSA may enter a contractual 

or similar agreement with a third party 

to assist in accomplishing an agency 

function relating to this system of 

records. 

SSA occasionally contracts out certain 

of its functions when this would 

contribute to effective and efficient 

operations. SSA must be able to give a 

contractor whatever information the 

Agency can legally provide in order for 

the contractor to fulfill its duties. In 

these situations, safeguards are provided 

in the contract prohibiting the 

contractor from using or disclosing the 

information for any purpose other than 

that described in the contract. 

13. To addresses of beneficiaries who 

are obligated on loans held by the 

Secretary of Education or a loan made 

in accordance with 20 U.S.C. 1071, et 

seq. (the Robert T. Stafford Student 

Loan Program) may be disclosed to the 

Department of Education as authorized 

by section 489A of the Higher Education 

Act of 1965. 

Under this routine use we will 

disclose only address information to the 

Secretary of Education for the purpose 

of locating beneficiaries that are 

obligated on loans held by the Secretary. 

14. To student volunteers and other 

workers, who technically do not have 

the status of Federal employees, when 

they are performing work for SSA as 

authorized by law, and who need access 

to personally identifiable information in 

SSA records in order to perform their 

assigned Agency functions. 

Under certain Federal statutes, SSA is 

authorized to use the service of 

volunteers and participants in certain 

educational, training, employment and 

community service programs. An 

example of such statutes and programs 

includes: 5 U.S.C. 2753 regarding the 

College Work-Study Program. We 

contemplate disclosing information 

under this routine use only when SSA 

uses the services of these individuals, 

and they need access to information in 

this system to perform their assigned 

agency duties. 

15. To Federal, State and local law 

enforcement agencies and private 

security contractors as appropriate, 

information necessary: 

• To enable them to protect the safety 

of SSA employees and customers, the 

security of SSA workplace and the 

operation of SSA facilities, or 

• To assist investigations or 

prosecutions with respect to activities 

that affect such safety and security or 

activities that disrupt the operation of 

SSA facilities. 

We will disclose information under 

this routine use to law enforcement 

agencies and private security 

contractors when information is needed 

to respond to, investigate, or prevent 

activities that jeopardize the security 

and safety of SSA customers, employees 

or workplaces or that otherwise disrupt 

the operation of SSA facilities. 

Information would also be disclosed to 

assist in the prosecution of persons 

charged with violating Federal or local 

law in connection with such activities. 

16. To the General Services 

Administration (GSA) and the National 

Archives Records Administration 

(NARA) under 44 U.S.C. 2904 and 2906, 

as amended by NARA Act of 1984, nontax return information which is not 

restricted from disclosure by Federal 

law for the use of those agencies in 

conducting records management 

studies. 

The Administrator of GSA and the 

Archivist of NARA are charged by 44 

U.S.C. 2904, as amended, with 

promulgating standards, procedures and 

guidelines regarding record 

management and conducting records 

management studies. 44 U.S.C. 2906, as 

amended, provides that GSA and NARA 

are to have access to federal agencies’

records and that agencies are to 

cooperate with GSA and NARA. In 

carrying out these responsibilities, it 

may be necessary for GSA and NARA to 

have access to this proposed system of 

records. In such instances, the routine 

use will facilitate disclosure. 

B. Compatibility of Proposed Routine 

Uses 

The Privacy Act (5 U.S.C. 552a(b)(3)) 

and SSA’s disclosure regulation (20 CFR 

part 401) permit us to disclose 

information under a published routine 

use for a purpose that is compatible 

with the purpose for which we collected 

the information. SSA’s Regulations at 20 

CFR 401.150(c) permit us to disclose 

information under a routine use where 

necessary to carry out SSA programs. 

SSA’s Regulations at 20 CFR 401.120 

provide that we will disclose 

information when a law specifically 

requires the disclosure. The proposed 

routine uses numbered 1 through 10, 12, 

14, and 15 above will ensure efficient 

administration of SSA programs 

administered through the proposed 

Medicare Part D and Part D Subsidy 

File; the disclosures that would be made 

under routine uses number 11, 13, and 

16 are required by law. The proposed 

routine uses are appropriate and meet 

the relevant statutory and regulatory 

criteria. 

III. Disclosure to Consumer Reporting 

Agencies 

The Privacy Act of 1974, as amended 

(5 U.S.C. 552a(b)(12)) permits Federal 

agencies to disclose certain information 

to consumer reporting agencies in 

accordance with 31 U.S.C. 3711(e) 

without the consent of the individuals 

to whom the information pertains. The 

purpose of this disclosure is to provide 

an incentive for individuals to pay any 

outstanding debts they owe to the 

Federal government by including 

information about these debts in the 

records relating to those persons 

maintained by consumer reporting 

agencies. This is a practice commonly 

used by the private sector. The 

information disclosed will be limited to 

that which is needed to establish the 

identity of the individual debtor, the 

amount, status, and history of the debt, 

and the agency or program under which 

the debt arose. 

We have added the following 

statement at the end of the routine uses 

section of the proposed system of 

records: 

Disclosure pursuant to 5 U.S.C. 

552a(b)(12) may be made to consumer 

reporting agencies as defined in the Fair 

Credit Reporting Act (15 U.S.C. 

1681a(f)) or the Federal Claims 

Collection Act of 1966 (31 U.S.C. 3701, 

et seq.), as amended. The disclosure will 

be made in accordance with 31 U.S.C. 

3711(e) when authorized by sections 

204(f), 808(e), or 1631(b)(4) of the Social 

Security Act (42 U.S.C. 404(f), 1008(e), 

or 1383(b)(4)). The purpose of this 

disclosure is to aid in the collection of 

outstanding debts owed to the Federal 

government, typically, to provide an 

incentive for debtors to repay 

delinquent Federal government debts by 

making these debts part of their credit 

records. The information to be disclosed 

is limited to the individual’s name, 

address, SSN, and other information 

necessary to establish the individual’s 

identity, the amount, status, and history 

of the debt and the agency or program 

under which the debt arose.

IV. Records Storage Medium and 

Safeguards for the Proposed Medicare 

Part D and Part D Subsidy File System 

of Records 

The Medicare Part D and Part D 

Subsidy File is a repository. Only 

authorized SSA personnel who have a 

need for the information in the 

performance of their official duties will 

be permitted access to the information. 

We will safeguard the security of the 

information by requiring the use of 

access codes to enter the computer 

systems that will maintain the data and 

will store computerized records in 

secured areas that are accessible only to 

employees who require the information 

to perform their official duties. Any 

manually maintained records will be 

77820 Federal Register / Vol. 69, No. 248 / Tuesday, December 28, 2004 / Notices 

kept in locked cabinets or in otherwise 

secure areas. Furthermore, SSA 

employees having access to SSA 

databases maintaining personal 

information must sign a sanction 

document annually, acknowledging 

their accountability for making 

unauthorized access to or disclosure of 

such information. 

Contractor personnel having access to 

data in the Medicare Part D and Part D 

Subsidy File will be required to adhere 

to SSA rules concerning safeguards, 

access and use of the data. 

SSA personnel having access to the 

data on this system will be informed of 

the criminal penalties of the Privacy Act 

for unauthorized access to or disclosure 

of information maintained in this 

system. See 5 U.S.C. 552a(i)(1). 

V. Effect of the Proposed Medicare Part 

D and Part D Subsidy File System of 

Records on the Rights of Individuals 

The proposed new Medicare Part D 

and Part D Subsidy File system of 

records will maintain only that 

information that is necessary for the 

efficient and effective control and 

processing of subsidy applications from 

the initial phase through the appeals 

process. Security measures will be 

employed that protect access to and 

preclude unauthorized disclosure of 

records in the proposed system of 

records. Therefore, we do not anticipate 

that the proposed system of records will 

have an unwarranted adverse effect on 

the rights of individuals.

Dated: December 16, 2004. 

Jo Anne B. Barnhart, 

Commissioner.

Social Security Administration (SSA) 

Notice of System of Records Required by 

the Privacy Act of 1974 

SYSTEM NUMBER: 

60–0321. 

SYSTEM NAME: 

Medicare Part D and Part D Subsidy 

File, Social Security Administration, 

Deputy Commissioner for Disability and 

Income Security Programs. 

SECURITY CLASSIFICATION: 

None. 

SYSTEM LOCATION: 

The Medicare Part D and Part D 

Subsidy File is virtually established 

before applications are mailed to 

potentially eligible beneficiaries, when 

applications are filed through the 

Internet, in Social Security field offices, 

or a lead is expected to result in a claim, 

and maintained in the National 

Computer Center at SSA Headquarters. 

The computerized records and database 

are maintained at the Social Security 

Administration, Office of Systems, 6401 

Security Boulevard, Baltimore, 

Maryland 21235. Other authorized Federal and State 

agencies that generally have access to 

information in SSA systems will also 

have access as needed to the Medicare 

Part D and Part D Subsidy File. Contact 

the system manager for address 

information. 

CATEGORIES OF INDIVIDUALS COVERED BY THE

SYSTEM: 

Claimants, applicants, beneficiaries, 

ineligible spouses and potential 

claimants for Medicare Advantage Part 

C and Medicare Part D and drug 

prescription premium and co-payment 

subsidies. 

CATEGORIES OF RECORDS IN THE SYSTEM: 

The Medicare Part D and Part D 

Subsidy File contains the name and 

Social Security number (SSN) of the 

claimant or potential claimant and may 

contain the subsidy application; 

supporting evidence and documentation 

for eligibility; documentation for 

income and resource verification; 

supporting evidence and documentation 

for appeal requests; premium payment 

documentation; correspondence to and 

from claimants and/or personal 

representatives; and leads information 

from third parties such as social service 

agencies and hospitals. The Medicare Part D and Part D 

Subsidy File also may contain data 

collected as a result of inquiries or 

complaints, and evaluation and 

measurement studies of the 

effectiveness of Medicare Prescription 

Drug Improvement and Modernization 

Act (MMA) policies. Separate files may 

be maintained of certain actions, which 

are entered directly into the Medicare 

Part D and Part D Subsidy File. These 

relate to reports of changes of income 

and resources, and other postadjudicative reports. Separate data are 

also maintained for statistical purposes 

(i.e., subsidy denial, and demographic 

and statistical information relating to 

subsidy decisions). 

AUTHORITY FOR MAINTENANCE OF THE SYSTEM: 

Sections 202–205, 223, 226, 228, 

1611, 1631, 1818, 1836, 1840 and 

1860D–1–1860D–15 of the Social 

Security Act (42 U.S.C. §§ 402–405, 423, 

426, 428, 1382, 1383, 1395i–2, 1395o, 

1395s and 1395w–101–1395w–115). 

PURPOSE(S): 

The Medicare Part D and Part D 

Subsidy File contains material related to 

the request for subsidized prescription 

drug coverage under the MMA of 2003. 

Medicare Part D and Part D subsidy 

claim file information is used 

throughout SSA for the purposes of 

collecting, documenting, organizing and 

maintaining information and documents 

for making determinations of eligibility 

for subsidized benefits, the amount of 

the subsidy, processing appeals; 

ensuring that proper adjustments are 

made based on events affecting 

entitlement; and answering inquiries. 

Medicare Part D and Part D subsidy 

claim file information may be used for 

quality review, evaluation, and 

measurement studies, and other 

statistical and research purposes. 

Extracts may be maintained as 

interviewing tools, activity logs, records 

of claims clearance, and records of type 

or nature of actions taken. 

ROUTINE USES OF RECORDS MAINTAINED IN THE

SYSTEM, INCLUDING CATEGORIES OF USERS AND

THE PURPOSES OF SUCH USES: 

Disclosure may be made for routine 

uses as indicated below. However, any 

information defined as ‘‘return or return 

information’’ under 26 U.S.C. 6103 of 

the Internal Revenue Code (IRC) will not 

be disclosed unless authorized by the 

IRC, the Internal Revenue Service (IRS), 

or IRS regulations.

1. To the Office of the President for 

the purpose of responding to an 

individual pursuant to an inquiry 

received from that individual or from a 

third party on his or her behalf. 

2. To a congressional office in 

response to an inquiry from that office 

made at the request of the subject of a 

record. 

3. To the Department of Justice (DOJ), 

a court or other tribunal, or another 

party before such tribunal when: 

(a) SSA, or any component thereof, or 

(b) Any SSA employee in his/her 

official capacity; or 

(c) Any SSA employee in his/her 

individual capacity where DOJ (or SSA 

where it is authorized to do so) has 

agreed to represent the employee; or 

(d) The United States or any agency 

thereof where SSA determines that the 

litigation is likely to affect the 

operations of SSA or any of its 

components

is party to litigation or has an interest 

in such litigation, and SSA determines 

that the use of such records by DOJ, a 

court or other tribunal, or another party 

before such tribunal is relevant and 

necessary to the litigation, provided, 

however, that in each case, SSA 

determines that such disclosure is 

compatible with the purpose for which 

the records were collected.

However, any information defined as 

‘‘return or return information’’ under 26 

U.S.C. 6103 of the Internal Revenue 

Code will not be disclosed unless 

authorized by the IRC, the Internal 

Revenue Service, or IRS Regulations.

Federal Register / Vol. 69, No. 248 / Tuesday, December 28, 2004 / Notices 77821

4. Information may be disclosed to 

DOJ for: 

(a) Investigating and prosecuting 

violations of the Social Security Act to 

which criminal penalties attach, 

(b) Representing the Commissioner, or 

(c) Investigating issues of fraud by 

agency officers or employees, or 

violation of civil rights. 

5. To applicants, claimants, 

prospective applicants or claimants, 

other than the data subject, and their 

authorized representatives to the extent 

necessary for the purpose of pursuing 

Medicare Part D and Part D subsidy 

entitlement or appeal rights. 

6. To Federal, State, or local agencies 

(or agents on their behalf) for 

administering cash or non-cash income 

maintenance or health maintenance 

programs (including programs under the 

Social Security Act). Such disclosures 

include, but are not limited to, release 

of information to: 

(a) The Railroad Retirement Board for 

administering provisions of the Railroad 

Retirement and Social Security Acts 

relating to railroad employment and for 

administering the Railroad 

Unemployment Insurance Act; 

(b) The Department of Veterans 

Affairs (VA) for administering 38 U.S.C. 

412, and upon request, information 

needed to determine eligibility for, or 

amount of, VA benefits or verifying 

other information with respect thereto; 

(c) The Department of Labor for 

administering provisions of Title IV of 

the Federal Coal Mine Health and Safety 

Act, as amended by the Black Lung 

Benefits Act; 

(d) State agencies for making 

determinations of Medicaid eligibility; 

and 

(e) State agencies for making 

determinations of food stamp eligibility 

under the food stamp program; 

(f) State audit agencies for auditing 

Medicaid eligibility considerations; and 

(g) State welfare departments 

pursuant to agreements with SSA for 

administration of State supplementation 

payments; for enrollment of welfare 

recipients for medical insurance under 

section 1843 of the Act; and for 

conducting independent quality 

assurance reviews of Supplemental 

Security Income recipient records, 

provided that the agreement for Federal 

administration of the supplementation 

provides for such an independent 

review. 

7. To the Internal Revenue Service, 

Department of the Treasury, for the 

purpose of auditing SSA’s compliance 

with the safeguard provisions of the 

Internal Revenue Code of 1986, as 

amended. 

8. To the Centers for Medicare & 

Medicaid Services (CMS), for the 

purpose of administering Medicare Part 

D enrollment and premium collection. 

9. To Federal and State agencies 

administering Medicare Part D and Part 

D subsidy under the MMA of 2003. 

Such disclosure include release of 

information to: 

(a) The Bureau of Public Debt, 

Department of the Treasury; 

(b) The Internal Revenue Service; and 

(c) The Office of Child Support and 

Enforcement for the purpose of assisting 

in the verification of eligibility for the 

prescription drug subsidy.

10. To a Federal, State, or 

congressional support agency (e.g., the 

Congressional Budget Office and the 

Congressional Research Service in the 

Library of Congress) for research, 

evaluation, or statistical studies. Such 

disclosures include, but are not limited 

to, release of information in assessing 

the extent to which one can predict 

eligibility for Supplemental Security 

Income (SSI) payments or Social 

Security disability insurance benefits; 

examining the distribution of Social 

Security benefits by economic and 

demographic groups and how these 

differences might be affected by possible 

changes in policy; analyzing the 

interaction of economic and noneconomic variables affecting entry and 

exit events and duration in the Title II 

Old Age, Survivors, and Disability 

Insurance and the Title XVI SSI 

disability programs; and analyzing 

retirement decisions focusing on the 

role of Social Security benefit amounts, 

automatic benefit recomputation, the 

delayed retirement credit, and the 

retirement test, if SSA: 

(a) Determines that the routine use 

does not violate legal limitations under 

which the record was provided, 

collected, or obtained; 

(b) Determines that the purpose for 

which the proposed use is to be made: 

(i) Cannot reasonably be 

accomplished unless the record is 

provided in a form that identifies 

individuals; 

(ii) Is of sufficient importance to 

warrant the effect on, or risk to, the 

privacy of the individual which such 

limited additional exposure of the 

record might bring; 

(iii) Has reasonable probability that 

the objective of the use would be 

accomplished; 

(iv) Is of importance to the Social 

Security program or the Social Security 

beneficiaries or is for an 

epidemiological research project that 

relates to the Social Security program or 

beneficiaries; 

(c) Requires the recipient of 

information to: 

(i) Establish appropriate 

administrative, technical, and physical 

safeguards to prevent unauthorized use 

or disclosure of the record and agree to 

on-site inspection, by SSA’s personnel, 

its agents, or by independent agents of 

the recipient agency, of those 

safeguards; 

(ii) Remove or destroy the information 

that enables the individual to be 

identified at the earliest time at which 

removal or destruction can be 

accomplished consistent with the 

purpose of the project, unless the 

recipient receives written authorization 

from SSA that it is justified, based on 

research objectives, for retaining such 

information; 

(iii) Make no further use of the 

records except 

(a) Under emergency circumstances 

affecting the health or safety of any 

individual following written 

authorization from SSA; 

(b) For disclosure to an identified 

person approved by SSA for the purpose 

of auditing the research project; 

(iv) Keep the data as a system of 

statistical records. A statistical record is 

one which is maintained only for 

statistical and research purposes and 

which is not used to make any 

determination about an individual; 

(d) Secures a written statement by the 

recipient of the information attesting to 

the recipient’s understanding of, and 

willingness to abide by, the provisions. 

11. The Department of Homeland 

Security, Bureau of Citizenship and 

Immigration Services, upon request, to 

identify and locate aliens in the United 

States pursuant to section 290(b) of the 

Immigration and Nationality Act (8 

U.S.C. 1360(b)). 

12. To contractors and other Federal 

agencies, as necessary, for the purpose 

of assisting SSA in the efficient 

administration of its programs. We 

contemplate disclosing information 

under this routine use only in situations 

in which SSA may enter a contractual 

or similar agreement with a third party 

to assist in accomplishing an agency 

function relating to this system of 

records. 

13. Addresses of beneficiaries who are 

obligated on loans held by the Secretary 

of Education or a loan made in 

accordance with 20 U.S.C. 1071, et seq.

(the Robert T. Stafford Student Loan 

Program) may be disclosed to the 

Department of Education as authorized 

by section 489A of the Higher Education 

Act of 1965. 

14. To student volunteers and other 

workers, who technically do not have 

the status of Federal employees, when 

77822 Federal Register / Vol. 69, No. 248 / Tuesday, December 28, 2004 / Notices 

they are performing work for SSA as 

authorized by law, and who need access 

to personally identifiable information in 

SSA records in order to perform their 

assigned Agency functions. 

15. To Federal, State and local law 

enforcement agencies and private 

security contractors, as appropriate, 

information necessary: 

• To enable them to protect the safety 

of SSA employees and customers, the 

security of the SSA workplace and the 

operation of SSA facilities, or 

• To assist investigations or 

prosecutions with respect to activities 

that affect such safety and security or 

activities that disrupt the operation of 

SSA facilities. 

16. To the General Services 

Administration (GSA) and the National 

Archives Records Administration 

(NARA) under 44 U.S.C. 2904 and 2906, 

as amended by NARA Act of 1984, nontax return information which is not 

restricted from disclosure by Federal 

law for the use of those agencies in 

conducting records management 

studies.

DISCLOSURE TO CONSUMER REPORTING

AGENCIES: 

Disclosure pursuant to 5 U.S.C. 

552a(b)(12) may be made to consumer 

reporting agencies as defined in the Fair 

Credit Reporting Act (15 U.S.C. 

1681a(f)) or the Federal Claims 

Collection Act of 1966 (31 U.S.C. 3701, 

et seq.), as amended. The disclosure will 

be made in accordance with 31 U.S.C. 

3711(e) when authorized by sections 

204(f), 808(e), or 1631(b)(4) of the Social 

Security Act (42 U.S.C. 404(f), 1008(e), 

or 1383(b)(4)). The purpose of this 

disclosure is to aid in the collection of 

outstanding debts owed to the Federal 

government, typically, to provide an 

incentive for debtors to repay 

delinquent Federal government debts by 

making these debts part of their credit 

records. The information to be disclosed 

is limited to the individual’s name, 

address, SSN, and other information 

necessary to establish the individual’s 

identity, the amount, status, and history 

of the debt and the agency or program 

under which the debt arose. 

POLICIES AND PRACTICES FOR STORING, 

RETRIEVING, ACCESSING, RETAINING, AND

DISPOSING OF RECORDS IN THE SYSTEM: 

STORAGE: 

Records are maintained electronically. 

RETRIEVABILITY: 

Medicare Part D and Part D subsidy 

claim files are retrieved electronically 

by SSN and alphabetically by name. 

SAFEGUARDS: 

Medicare Part D and Part D subsidy 

claim files are protected through limited 

access to SSA records. Access to the 

records is limited to those employees 

who require such access in the 

performance of their official duties. All 

employees are instructed about SSA 

confidentiality rules as a part of their 

initial orientation training. 

Safeguards for automated records 

have been established in accordance 

with the Systems Security Handbook. 

For computerized records, electronically 

transmitted between SSA’s central office 

and field office locations (including 

organizations administering SSA 

programs under contractual 

agreements), safeguards include a lock/

unlock password system, exclusive use 

of leased telephone lines, a terminal 

oriented transaction matrix, and an 

audit trail. 

RETENTION AND DISPOSAL: 

Pursuant to 36 CFR 1228.26, SSA will 

submit to NARA for approval a schedule 

for the Medicare Part D and Part D 

Subsidy File no later than one year from 

implementation of this new program. 

Until a schedule is developed and 

approved, records may not be destroyed. 

SYSTEM MANAGER(S) AND ADDRESS: 

Deputy Commissioner, Disability and 

Income Security Programs, Social 

Security Administration, 6401 Security 

Boulevard, Baltimore, MD 21235. 

NOTIFICATION PROCEDURE: 

An individual can determine if this 

system contains a record about him/her 

by writing to the system manager(s) at 

the above address and providing his/her 

name, SSN or other information that 

may be in the system of records that will 

identify him/her. An individual 

requesting notification of records in 

person should provide the same 

information, as well as provide an 

identity document, preferably with a 

photograph, such as a driver’s license or 

some other means of identification. If an 

individual does not have any 

identification documents sufficient to 

establish his/her identity, the individual 

must certify in writing that he/she is the 

person claimed to be and that he/she 

understands that the knowing and 

willful request for, or acquisition of, a 

record pertaining to another individual 

under false pretenses is a criminal 

offense. 

If notification is requested by 

telephone, an individual must verify 

his/her identity by providing identifying 

information that parallels the record for 

which notification is being requested. If 

it is determined that the identifying 

information provided by telephone is 

insufficient, the individual will be 

required to submit a request in writing 

or in person. If an individual is 

requesting information by telephone on 

behalf of another individual, the subject 

individual must be connected with SSA 

and the requesting individual in the 

same phone call. SSA will establish the 

subject individual’s identity (his/her 

name, SSN, address, date of birth and 

place of birth along with one other piece 

of information such as mother’s maiden 

name) and ask for his/her consent to 

providing information to the requesting 

individual. 

If a request for notification is 

submitted by mail, an individual must 

include a notarized statement to SSA to 

verify his/her identity or must certify in 

the request that he/she is the person 

claimed to be and that he/she 

understands that the knowing and 

willful request for, or acquisition of, a 

record pertaining to another individual 

under false pretenses is a criminal 

offense. These procedures are in 

accordance with SSA Regulations (20 

CFR 401.40). 

RECORD ACCESS PROCEDURES: 

Same as Notification procedures. 

Requesters should also reasonably 

specify the information they are seeking. 

These procedures are in accordance 

with SSA Regulations (20 CFR 401.40(c) 

and 401.55). 

CONTESTING RECORD PROCEDURES: 

Same as Notification procedures. 

Requesters should also reasonably 

identify the record, specify the 

information they are contesting and 

state the corrective action sought and 

the reasons for the correction with 

supporting justification showing how 

the record is incomplete, untimely, 

inaccurate or irrelevant. These 

procedures are in accordance with SSA 

Regulations (20 CFR 401.65). 

RECORD SOURCE CATEGORIES: 

Information in this system is obtained 

from claimants, beneficiaries, applicants 

and recipients; accumulated by SSA 

from reports of employers or selfemployed individuals; various local, 

State, and Federal agencies; claimant 

representatives and other sources, to 

support factors of entitlement and 

continuing eligibility or to provide leads 

information. 

SYSTEMS EXEMPTED FROM CERTAIN PROVISIONS

OF THE PRIVACY ACT: 

None.

[FR Doc. 04–28302 Filed 12–27–04; 8:45 am] 

BILLING CODE 4191–02–P