[Federal Register Volume 75, Number 232 (Friday, December 3, 2010)]
[Notices]
[Pages 75546-75548]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-30297]


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DEPARTMENT OF THE TREASURY


Financial Management Service; Privacy Act of 1974, as Amended; 
System of Records

AGENCY: Financial Management Service, Treasury.

ACTION: Notice of proposed new system of records.

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SUMMARY: In accordance with the Privacy Act of 1974, as amended, the 
Financial Management Service gives notice of a proposed new Privacy Act 
system of records entitled ``Treasury/FMS .008-Mailing List Records.''

DATES: Comments must be received no later than January 3, 2011. The 
proposed new system of records will become effective January 3, 2011 
unless comments are received which would result in a contrary 
determination.

ADDRESSES: You should send your comments to Peter Genova, Deputy Chief 
Information Officer, Financial Management Service, 401 14th Street, 
SW., Washington, DC 20227. Comments received will be available for 
inspection at the same address between the hours of 9 a.m. and 4 p.m. 
Monday through Friday. You may send your comments by electronic mail to 
<a href="/cdn-cgi/l/email-protection#1666736273643871737879607756707b6538626473776538717960"><span class="__cf_email__" data-cfemail="b2c2d7c6d7c09cd5d7dcddc4d3f2d4dfc19cc6c0d7d3c19cd5ddc4">[email protected]</span></a> or http://regulations.gov. All comments, 
including attachments and other supporting materials, received are 
subject to public disclosure. You should submit only information that 
you wish to make available publicly.

FOR FURTHER INFORMATION CONTACT: Peter Genova, Deputy Chief Information 
Officer, (202) 874-1736.

SUPPLEMENTARY INFORMATION: Pursuant to the Privacy Act of 1974, as 
amended, 5 U.S.C. 552a, the Financial Management Service (FMS) is 
proposing to establish a new system of records entitled ``Mailing List 
Records--Treasury/FMS .008.'' FMS proposes to obtain and use mailing 
list records from commercial database providers for the purpose of 
mailing information to potential Federal payment recipients about the 
benefits of electronic payments and types of accounts available for the 
receipt of Federal electronic payments. Commercial database providers 
obtain information from publicly available records or through means 
that we understand to be compliant with applicable privacy laws.
    FMS, a bureau within the U.S. Department of the Treasury 
(Treasury), is responsible for disbursing public money by paper check 
and electronic funds transfer (EFT). Payments made by electronic funds 
transfer (EFT), rather than by paper check, benefits both recipients 
and the Government. Direct deposit and other EFT payments are credited 
to recipients' accounts on the day payment is due, so the funds 
generally are available sooner than with check payments. Individuals 
receiving Federal payments electronically rarely have any delays or 
problems with their payments. In contrast, based on payment claims 
filed with FMS, nine out of ten problems with FMS-disbursed payments 
are related to paper checks even though checks constitute only 18 
percent of all FMS-disbursed payments made by the Government.
    The potential benefits of EFT payments for the Government and 
taxpayers are significant. For example, in fiscal year 2010, FMS mailed 
more than 130 million Federal benefit checks to approximately 11 
million benefit recipients, resulting in extra costs to taxpayers of 
more than $117 million that would not have been incurred had those 
payments been made by EFT. In the same fiscal year, only 63% of 
taxpayers received their tax refund payment electronically, with 
approximately 44 million tax refund payments being delivered by paper 
check.
    Over the past three decades, FMS has developed numerous programs to 
enable agencies to make EFT payments. Treasury's Go Direct[supreg] 
educational campaign, sponsored with the Federal Reserve Banks, 
highlights the advantages to a Federal benefit recipient who opens an 
account at a financial institution, or a Direct Express[supreg] Debit 
MasterCard[supreg] card account, and elects to receive his or her 
benefits via direct deposit to the account. In addition to media and 
other public outreach, Treasury mails check stuffers and letters 
encouraging check recipients to receive Federal payments 
electronically.
    Typically, FMS mails information to check recipients based on name 
and address information contained in its payment records (see 
``Treasury/FMS .002-Payment Issue Records for Regular Recurring Benefit 
Payments'' and ``Treasury/FMS .016-Payment Records for Other Than 
Regular Recurring Benefit Payments''). In some cases, however, FMS may 
decide to use commercial database providers for names and mailing 
addresses of individuals who meet certain criteria

[[Page 75547]]

when the information is not otherwise available from FMS's records. The 
data may be used for the purpose of mailing information to potential 
Federal payment recipients about the benefits of electronic payments 
and accounts available for the receipt of Federal electronic payments.
    FMS continues to implement various programs to increase the number 
of payments made by EFT. Among other things, FMS intends to increase 
the use of direct deposit throughout the United States and to expand 
the ways in which Federal payees may receive their payments 
electronically. As FMS expands the ways in which payees may receive 
their payments electronically, FMS needs to inform the public about 
available options. The mailing of individual letters using mailing 
lists obtained from commercial database providers offers an opportunity 
to directly reach potential check recipients, rather than only those 
individuals who have already received FMS-disbursed payments and whose 
information already exists in FMS's records. In some cases, FMS may use 
mailing lists obtained from commercial database providers to further 
identify individuals who could benefit from the program and services. 
The records covered by the proposed system are necessary to allow FMS 
to offer electronic payment options to a wide variety of potential 
Federal payment recipients. The records may be received directly by 
FMS, its fiscal or financial agents, and/or contractors. The records 
include names and mailing addresses only as necessary to deliver 
information to individuals about the benefits of electronic payments 
and account options for receiving payments electronically, and to 
assess the effectiveness of these outreach methods. Without such 
information, FMS would have significant difficulty in reaching 
individuals who have never received a Federal payment, but may in the 
future, or those who do not receive regular, recurring payments.
    In addition to the purposes cited above, the information contained 
in the covered records will be used for collateral purposes related to 
the offering of account options to individuals, such as collection of 
aggregate statistical information on the success and benefits of direct 
mail and the use of commercial database providers.
    FMS recognizes the sensitive nature of the confidential information 
it obtains when collecting individuals' names and addresses, and has 
many safeguards in place to protect the information from theft or 
inadvertent disclosure. When appropriate, FMS's arrangements with its 
fiscal and financial agents and contractors include requirements that 
preclude them from retaining, disclosing, and using the information for 
any purpose other than mailing of information about the benefit of 
electronic payments and account options and assessing the effectiveness 
of the outreach. In addition to various procedural and physical 
safeguards, access to computerized records is limited, through the use 
of access codes, encryption techniques and/or other internal 
mechanisms. Access to records is granted only as authorized by a 
business line manager at FMS or FMS's fiscal or financial agent to 
those whose official duties require access solely for the purposes 
outlined in the proposed system.
    The new system of records report, as required by 5 U.S.C. 552a(r) 
of the Privacy Act, has been submitted to the Committee on Government 
Reform of the House of Representatives, the Committee on Governmental 
Affairs of the Senate, and the Office of Management and Budget, 
pursuant to Appendix I to OMB Circular A-130, ``Federal Agency 
Responsibilities for Maintaining Records About Individuals,'' dated 
November 30, 2000.
    For the reasons set forth in the preamble, FMS proposes a new 
system of records Treasury/FMS .008-Mailing List Records, which is 
published in its entirety below.

    Dated: November 26, 2010.
Melissa Hartman,
Deputy Assistant Secretary for Privacy, Transparency, and Records.
Treasury/FMS .008

System Name:
    Mailing List Records--Treasury/Financial Management Service.

System Location:
    Records are located at the offices of Financial Management Service, 
401 14th Street, SW., Washington, DC 20227, or its fiscal or financial 
agents at various locations. The addresses of the fiscal or financial 
agents may be obtained by contacting the System Manager below.

Categories of Individuals Covered by the System:
    Individuals who are eligible, or may in the future be eligible, to 
receive Federal payments from the Federal Government.

Categories of Records in the System:
    The records may contain identifying information, such as an 
individual's name(s) and address.

Authority for Maintenance of the System:
    5 U.S.C. 301; 31 U.S.C. 321; 31 U.S.C. chapter 33; 31 U.S.C. 3332; 
Title XII of the Dodd-Frank Wall Street Reform and Consumer Protection 
Act (Pub. L. 111-203, Jul. 21, 2010).

Purpose(s):
    The purpose of this system is to maintain limited records (names 
and addresses) about individuals who are eligible, or may become 
eligible, to receive Federal payments. The records are used to make 
individuals aware of the benefits of electronic payments and the 
account options for receiving payments electronically. Without the 
information, FMS, its fiscal or financial agents and contractors, would 
not be able to directly notify prospective payment recipients about the 
benefits of electronic payments and account options for the receipt of 
Federal payments electronically.
    The information will also be used for collateral purposes related 
to providing information about account options for receiving electronic 
Federal payments, such as the collection of aggregate statistical 
information on the success and benefits of direct mail and the use of 
commercial database providers.

Routine Uses of Records Maintained in the System, Including Categories 
of Users and the Purposes of Such Uses:
    These records may be used to disclose information to:
    (1) The U.S. Department of Justice (``DOJ'') for its use in 
providing legal advice to the Department or in representing the 
Department in a proceeding before a court, adjudicative body, or other 
administrative body before which the Department is authorized to 
appear, where the use of such information by the DOJ is deemed by the 
Department to be relevant and necessary to the litigation, and such 
proceeding names as a party or interests: (a) The Department or any 
component thereof; (b) Any employee of the Department in his or her 
official capacity; (c) Any employee of the Department in his or her 
individual capacity where DOJ has agreed to represent the employee; or 
(d) The United States, where the Department determines that litigation 
is likely to affect the Department or any of its components.
    (2) A congressional office in response to an inquiry made at the 
request of the individual to whom the record pertains.
    (3) Fiscal agents, financial agents, and contractors for the 
purpose of mailing information to individuals about the benefits of 
electronic Federal payments and options for receipt of federal

[[Page 75548]]

payments electronically, including, but not limited to, processing 
direct mail or performing other marketing functions; investigating and 
rectifying possible erroneous information; and creating and reviewing 
statistics to improve the quality of services provided.
    (4) Federal agencies, their agents and contractors for the purposes 
of implementing and studying options for encouraging current and 
prospective Federal payment recipients to receive their Federal 
payments electronically.
    (5) Representatives of the National Archives and Records 
Administration (NARA) who are conducting records management inspections 
under authority of 44 U.S.C. 2904 and 2906.
    (6) Appropriate agencies, entities, and persons when (a) FMS 
suspects or has confirmed that the security or confidentiality of 
information in the system of records has been compromised; (b) FMS has 
determined that as a result of the suspected or confirmed compromise 
there is a risk of harm to economic or property interests, identity 
theft or fraud, or harm to the security or integrity of this system or 
other systems or programs (whether maintained by FMS or another agency 
or entity) that rely upon the compromised information; and (c) the 
disclosure made to such agencies, entities, and persons is reasonably 
necessary to assist in connection with FMS's efforts to respond to the 
suspected or confirmed compromise and prevent, minimize, or remedy such 
harm.

Policies and Practices for Storing, Retrieving, Accessing, Retaining, 
and Disposing of Records in the System:
Storage:
    Records are maintained in paper and electronic media.

Retrievability:
    Records are retrieved by name, address, or other alpha/numeric 
identifying information.

Safeguards:
    All official access to the system of records is on a need-to-know 
basis only, as authorized by a business line manager at FMS or FMS's 
fiscal or financial agent. Procedural and physical safeguards, such as 
personal accountability, audit logs, and specialized communications 
security, are utilized. Each user of computer systems containing 
records has individual passwords (as opposed to group passwords) for 
which he or she is responsible. Thus, a security manager can identify 
access to the records by user. Access to computerized records is 
limited, through use of access codes, encryption techniques, and/or 
other internal mechanisms, to those whose official duties require 
access. Storage facilities are secured by various means such as 
security guards, badge access, and locked doors with key entry.

Retention and Disposal:
    Electronic and paper records for mail operations based on the use 
of the mailing list records will be retained in accordance with FMS's 
record retention requirements or as otherwise required by statute or 
court order. FMS disposes, or arranges for the disposal of records in 
electronic media using industry-accepted techniques, and in accordance 
with applicable FMS policies regarding the retention and disposal of 
fiscal or financial agency records. Paper records are destroyed in 
accordance with fiscal or financial agency archive and disposal 
procedures and applicable FMS policies regarding the retention and 
disposal of fiscal agency records.

System Manager(s) and Address:
    Agency Enterprise Solutions Division, Payment Management, Financial 
Management Service, 401 14th Street, SW., Washington, DC 20227.

Notification Procedure:
    Inquiries under the Privacy Act of 1974, as amended, shall be 
addressed to the Disclosure Officer, Financial Management Service, 401 
14th Street, SW., Washington, DC 20227. All individuals making 
inquiries should provide with their request as much descriptive matter 
as is possible to identify the particular record desired. The system 
manager will advise as to whether FMS maintains the records requested 
by the individual.

Record Access Procedures:
    Individuals requesting information under the Privacy Act of 1974, 
as amended, concerning procedures for gaining access to or contesting 
records should write to the Disclosure Officer. All individuals are 
urged to examine the rules of the U.S. Department of the Treasury 
published in 31 CFR part 1, subpart C, and appendix G, concerning 
requirements of this Department with respect to the Privacy Act of 
1974, as amended.

Contesting Record Procedures:
    See ``Record access procedures'' above.

Record Source Categories:
    Information in this system is provided by commercial database 
providers based on publicly available information.

Exemptions Claimed for the System:
    None.
[FR Doc. 2010-30297 Filed 12-2-10; 8:45 am]
BILLING CODE 4810-35-P


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