[Federal Register Volume 62, Number 148 (Friday, August 1, 1997)]
[Notices]
[Pages 41483-41484]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-20305]


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DEPARTMENT OF VETERANS AFFAIRS


Privacy Act of 1974; Amendment of System of Records

AGENCY: Department of Veterans Affairs.

ACTION: Notice.

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    Notice is hereby given that the Department of Veterans Affairs (VA) 
is adding a new routine use to the system of records entitled 
``Personnel and Accounting Pay System--VA'' (27VA047) as set forth in 
the Federal Register 40 FR 38095 (8/26/75) and amended in 48 FR 16372 
(4/15/83), 50 FR 23009 (5/30/85), 51 FR 6858 (2/26/86), 51 FR 25968 (7/
17/86), 55 FR 42534 (10/19/90), 56 FR 23952 (5/24/91), 58 FR 39088 (7/
21/93), 58 FR 40852 (7/30/93), and 60 FR 35448 (7/7/95). This system of 
records contains information on current and former salaried VA 
employees.
    VA is in the process of upgrading its human resources and payroll 
delivery system. While much of the work concerning this upgrade has 
been accomplished by VA employees, other aspects must be accomplished 
by private contractors and their employees. The information involved in 
this project concerns VA current employees and is contained in Privacy 
Act system of records ``Personnel and Accounting Pay System--VA'' 
(27VA047). In addition, some routine tasks and disclosures now 
performed by VA personnel under the authority of existing routine uses 
in this system of records, such as referral of employment data to state 
agencies to compile unemployment compensation data, will be turned over 
to private contractors. In some instances, contractors will also be 
able to offer services that VA personnel could not

[[Page 41484]]

offer. For example, VA has a contract to provide employee data to a 
contractor who will, in turn, electronically release information to 
third parties, such as mortgage lenders, who need to verify a VA 
employee's income and employment. However, such third parties cannot 
retrieve this information without first obtaining specific 
authorization or access data, such as an authorization code or number, 
from the individual employee about whom the third party is seeking 
information. The third party will also be able only to obtain 
information about the individual employee that provided the 
authorization or access data to the third party. The release of the 
specific authorization or access data by such individual employee to 
the third party will indicate the individual's authorization of 
disclosure of information by the contractor to the third party.
    5 U.S.C. 552a(b)(1) states that no agency shall disclose 
information contained in a Privacy Act system of records without the 
written consent of the individual to whom the information pertains 
unless disclosure is to officers and employees of the agency which 
maintains the record who have a need for the record in the performance 
of their duties.
    5 U.S.C. 552a(m)(1) states that when an agency provides by contract 
for the operation by or on behalf of the agency of a system of records 
to accomplish an agency function, the agency shall cause the 
requirements of this section to be applied to such system. The 
contractor and any employee of the contractor are considered employees 
of the agency for purpose of criminal sanctions imposed by subsection 
552a(i)(1). However, designation of contractors and their employees as 
employees of an agency for purposes of the exemption found in 
subsection 552a(b)(1) has been the subject of conflicting court 
decisions. Thus, we believe that it is appropriate for VA to add a new 
routine use to 27VA047 to permit VA disclosures to individuals, 
organizations, or agencies with whom VA has a contract or agreement in 
order for the contractor to perform the services of the contract or 
agreement.
    VA has determined that the release of information for this purpose 
is a necessary and proper use of the information in this system of 
records and that the new specific routine use for transfer of this 
information is appropriate.
    An altered system of records report and a copy of the revised 
system notice have been sent to the House of Representatives Committee 
on Government Reform and Oversight, the Senate Committee on 
Governmental Affairs, and the Office of Management and Budget (OMB) as 
required by 5 U.S.C. 552a(r) and guidelines issued by OMB (61 FR 6428 
February 20, 1996).
    Interested persons are invited to submit written comments, 
suggestions, or objections regarding the proposed changes to the system 
of records to the Director, Office of Regulations Management (02D), 
Department of Veterans Affairs, 810 Vermont Avenue NW, Room 1154, 
Washington, DC 20420. All relevant material received before September 
2, 1997, will be considered. All written comments received will be 
available for public inspection at the above address in the Office of 
Regulations Management, Room 1158, between the hours of 8 a.m. and 4:30 
p.m., Monday through Friday, except holidays.
    If no public comment is received during the 30-day review period 
allowed for public comment, or unless otherwise published in the 
Federal Register by VA, the new routine use statement is effective 
September 2, 1997.

    Approved July 17, 1997.
Hershel Gober,
Acting Secretary of Veterans Affairs.

Notice of Amendment To System of Records

    In the system of records identified as 27VA047, ``Personnel and 
Accounting Pay System--VA,'' as set forth in the Federal Register 40 FR 
38095 (8/26/75) and amended in 48 FR 16372 (4/15/83), 50 FR 23009 (5/
30/85), 51 FR 6858 (2/26/85), 51 FR 25968 (7/17/86), 55 FR 42534 (10/
19/90), 56 FR 23952 (5/24/91), 58 FR 39088 (7/21/93), 58 FR 40852 (7/
30/93) and 60 FR 35448 (7/7/95), the system is amended as follows:
* * * * *

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSE OF SUCH USES:
* * * * *
    29. Relevant information from this system of records may be 
disclosed to individuals, organizations, private or public agencies, 
etc., 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 to perform the services of the contract or 
agreement. In accordance with the provisions of the contract or 
agreement, the contractor may disclose relevant information from this 
system of records to a third party. This includes the situation where 
relevant information may be disclosed to a third party upon the 
presentation or submission to the contractor by that third party of 
specific authorization or access data (e.g., an authorization code or 
number), which is obtained from VA or the VA contractor only by the 
individual employee to whom the information pertains. The employee's 
release of the specific authorization or access data to a third party 
indicates the employee's authorization for the disclosure of such 
information to that third party.

[FR Doc. 97-20305 Filed 7-31-97; 8:45 am]
BILLING CODE 8320-01-M