38242 Federal Register / Vol. 63, No. 135 /Wednesday, July 15, 1998 / Notices

DEPARTMENT OF EDUCATION

Privacy Act of 1974; System of

Records

AGENCY: Department of Education.

ACTION: Notice of a new system of

records.

SUMMARY: In accordance with the

Privacy Act of 1974, as amended, the

Department of Education (the

Department) publishes this notice of a

new system of records for the

Receivables Management System, as

authorized by the Federal Claims

Collection Act of 1966, Debt Collection

Act of 1982, and the Debt Collection

Improvement Act of 1996. This system

contains a data base of accounts

receivable for claims for payment of

debts due the Department. This system

contains records of activities relative to

the collection of those debts.. The

Department seeks comments on the

proposed routine uses of this system of

records.

DATES: Comments on proposed routine

uses for this system of records must be

received on or before July 17, 1998. The

Department filed a report of the new

system of records with the Chairman of

the Committee on Governmental Affairs

of the Senate, the Chairman of the

Committee on Government Reform and

Oversight Operations of the House of

Representatives, and the Administrator

of the Office of Information and

Regulatory Affairs of the Office of

Management and Budget (OMB) on July

10, 1998. This system of records will

become effective after the 30-day period

for OMB review of the system expires

on August 10, 1998, unless OMB gives

specific notice within the 30 days that

the system is not approved for

implementation or requests an

additional 10 days for its review. The

Department will publish any changes to

the routine uses that are a result of the

comments.

ADDRESSES: Comments on the proposed

routine uses should be addressed to the

Privacy Act Officer, Information

Management Group, Office of the Chief

Financial and Chief Information Officer,

U.S. Department of Education, 600

Independence Avenue SW., Room 5624,

General Services Administration (GSA),

Regional Office Building #3,

Washington, DC 20202–4651.

Comments may also be sent through the

Internet to: comments@ed.gov

You must include the term

‘‘Receivables Management System’’ in

the subject line of your electronic

message.

FOR FURTHER INFORMATION CONTACT:

Philip A. Maestri, Director, Financial

Improvement and Receivables Group,

Office of the Chief Financial Officer, U.

S. Department of Education, 600

Independence Avenue, SW., Room

3117, Washington, DC 20202–4330.

Telephone number: (202) 205–3511.

Individuals who use a

telecommunications device for the deaf

(TDD) may call the Federal Information

Relay Service (FIRS) at 1–800–877–8339

between 8 a.m. and 8 p.m., Eastern time,

Monday through Friday.

Individuals with disabilities may

obtain this document in an alternate

format (e.g., Braille, large print,

audiotapes, or computer diskette) on

request to the contact person listed in

the preceding paragraph.

SUPPLEMENTARY INFORMATION:

Invitation to Comment

Interested persons are invited to

submit comments and recommendations

regarding proposed routine uses of this

system.

All comments submitted in response

to the proposed routine uses will be

available for public inspection, during

and after the comment period, in Room

5624, GSA Regional Office Building #3,

7th and D Streets, SW., between the

hours of 8 a.m. and 4:30 p.m., Eastern

time, Monday through Friday of each

week except Federal holidays.

On request the Department supplies

an appropriate aid, such as a reader or

print magnifier, to an individual with a

disability who needs assistance to

review the comments or other

documents in the public rulemaking

docket for this notice. An individual

with a disability who wants to schedule

an appointment for this type of aid may

call (202) 205–8113 or (202) 260–9895.

An individual who uses a TDD may call

the Federal Information Relay Service at

1–800–877–8339, between 8 a.m. and 8

p.m., Eastern time, Monday through

Friday.

Background

The Privacy Act of 1974 (5 U.S.C.

552a(e)(4)) requires the Department to

publish in the Federal Register this

notice of a new system of records. The

Department’s regulations implementing

the Privacy Act of 1974 are contained in

the Code of Federal Regulations (CFR)

in 34 CFR part 5b.

This system of records is being

developed to comply with the Federal

Claims Collection Act of 1966, Debt

Collection Act of 1982, and the Debt

Collection Improvement Act of 1996.

The information collected in the

Receivables Management System is to

aid in the collection of funds due to the

Department. Information in the system

includes the name of debtor, address,

Social Security Number, loan or case

number or other debt identifier,

telephone number, account history and

supporting documents. The Department

intends to use the information to notify

a debtor of his or her liability to the

Government and to take other actions to

service the debt. The debt servicing staff

of the Financial Improvement and

Receivables Group, Office of the Chief

Financial Officer, and its private

contractors will have access to the

information collected. Direct access is

restricted to authorized agency and

contractor staff in the performance of

their official duties. The information

will be kept in metal file drawers and

computers in a secured building. All

physical access to the sites of the

contractor and the Department of

Education where this system of records

is maintained, is controlled and

monitored by security personnel who

check each individual entering the

building for an employee’s or a visitor’s

badge.

The computer system employed by

the Department offers a high degree of

resistance to tampering and

circumvention. This security system

limits data access to the Department and

contract staff on a ‘‘need to know’’ basis,

and controls individual users’ ability to

access and alter records within the

system. All users of this system are

given a unique user ID with a personal

identifier. All interactions by individual

users with the system are recorded.

Electronic Access to this Document

Anyone may view this document, as

well as all other Department documents

published in the Federal Register, in

text or portable document format (pdf)

on the World Wide Web at either of the

following sites:

http://ocfo.ed.gov/fedreg.htm

http://www.ed.gov/news.html

To use the pdf you must have the

Adobe Acrobat Reader Program with

Search, which is available free at either

of the previous sites. If you have

questions about using the pdf, call the

U.S. Government Printing Office toll

free at 1–888–293–6498.

Anyone may also view these

documents in text copy only on an

electronic bulletin board of the

Department. Telephone (202) 291–1411

or, toll free, 1–800–222–4922. The

documents are located under Option

G—Files/Announcements, Bulletins and

Press Releases.

Note: The official version of this document

is the document published in the Federal

Register.
Federal Register / Vol. 63, No. 135 /Wednesday, July 15, 1998 / Notices 38243

Dated: July 10, 1998.

Donald Rappaport,

Chief Financial Officer.

(Catalog of Federal Domestic Assistance

Number does not apply.)

The Chief Financial Officer publishes

notice of a new system of records to

read as follows.

18–11–0028

SYSTEM NAME:

Receivables Management System.

SECURITY CLASSIFICATION:

None.

SYSTEM LOCATIONS:

U.S. Department of Education, Office

of the Chief Financial Officer, Financial

Improvement and Receivables Group,

600 Independence Avenue, SW.,

Washington, DC 20202–4330.

U.S. Department of Education, Office

of the Chief Information Officer, 7th and

D Streets, SW., Washington, DC 20202.

Nationwide Credit, Inc., Credit Claims

and Collection, 2253 Northwest

Parkway, Marietta, Georgia 30067.

Payco American Corporation, 180 N.

Executive Drive, Brookfield, Wisconsin

53005–6011.

CSC Credit Services, Inc., 7909

Parkwood Circle, Suite 200, Houston,

Texas 77036–6565.

CATEGORIES OF INDIVIDUALS COVERED BY THE

SYSTEM:

Individuals covered by the system

include: Persons billed by the

Department of Education (the

Department) for materials and services

such as Freedom of Information Act

requests and computer tapes of

statistical data, persons ordered by a

court of law to pay restitutions to the

Department, individuals who received

grants under the Bilingual Education

Fellowship Program and who have not

provided evidence to the Department of

fulfilling their work requirements as

described in the Bilingual Education

Fellowship Program Contract,

individuals who have received funds

through the Rehabilitation Services

Administration (RSA) Scholarship

program and who have not provided

evidence of fulfilling their obligations

under that program, current and former

Department employees who received

overpayments on travel allowances or

who received salary overpayments and

the overpayments have not been waived

by the Department, individuals who

were overpaid or inappropriately paid

under grant programs administered by

the Department other than Title IV of

the Higher Education Act of 1965, as

amended (HEA) and claims against

individuals, including orders by a court

or other authority to make restitution for

the misuse of Federal funds in

connection with any program

administered by the Department.

CATEGORIES OF RECORDS IN THE SYSTEM:

Documents maintained in the system

include: activity logs, copies of checks,

contracts, court orders, letters of notice,

promissory notes, telephone logs, and

related correspondence.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:

Federal Claims Collection Act of

1966; Debt Collection Act of 1982; and

the Debt Collection Improvement Act of

1996.

PURPOSE(S):

The Receivables Management System

is a database system that is kept for

servicing general consumer debts owed

to the Department and issuing reports of

operations and the status of accounts to

the U.S. Department of Treasury

(Treasury) and the Office of

Management and Budget. The

receivables are generated from bills to

individuals for materials and services

from the Department, claims arising

from court-ordered restitutions for any

program administered by ED, loans and

overpayments to individuals under

programs other than the student

financial assistance programs

authorized under Title IV of the Higher

Education Act of 1965, as amended.

Records will be used by debt servicing

staff to bill debtors to the Department

and collect the debts.

ROUTINE USES OF RECORDS MAINTAINED IN THE

SYSTEM, INCLUDING CATEGORIES OF USERS AND

THE PURPOSE OF SUCH USES:

Disclosures under the following

routine uses may be made on a case-bycase basis or, in appropriate

circumstances under computer

matching agreements authorized under

the Privacy Act of 1974 (5 U.S.C. 552a).

Records may be disclosed for the

following debt servicing program

purposes:

(a) Program purposes: (1) To verify

the identity and location of the debtor,

disclosures may be made to credit

agencies and Federal agencies. (2) To

enforce the terms of a loan or where

disclosure is required by Federal law,

disclosure may be made to credit

agencies, educational and financial

institutions, and Federal, State, or local

agencies.

(b) Debt servicing. Records under

routine use may be disclosed to the

United States Department of the

Treasury and privately contracted

collection companies for debt servicing.

(c) Litigation disclosure. (1) In the

event that one of the parties listed below

is involved in litigation, or has an

interest in litigation, the Department

may disclose certain records to the

parties described in paragraphs (2), (3)

and (4) of this routine use under the

conditions specified in those

paragraphs:

(i) The Department, or any component

of the Department;

(ii) Any Department employee in his

or her official capacity;

(iii) Any employee of the Department

in his or her individual capacity where

the Department of Justice (DOJ) has

agreed to provide or arrange for

representation for the employee;

(iv) Any employee of the Department

in his or her individual capacity where

the agency has agreed to represent the

employee; or

(v) The United States where the

Department determines that the

litigation is likely to affect the

Department or any of its components.

(2) Disclosure to the DOJ. If the

Department determines that disclosure

of certain records to the DOJ is relevant

and necessary to litigation and is

compatible with the purpose for which

the records were collected. The

Department may disclose those records

as a routine use to the DOJ.

(3) Administrative Disclosures. If the

Department determines that disclosure

of certain records to an adjudication

body before which the Department is

authorized to appear, an individual or

entity designated by the Department or

otherwise empowered to resolve

disputes is relevant and necessary to the

administrative litigation and is

compatible with the purpose for which

the records were collected, the

Department may disclose those records

as a routine use to the adjudicative

body, individual or entity.

(4) Opposing counsel, representatives

and witnesses. If the Department

determines that disclosure of certain

records to an opposing counsel,

representative or witness in an

administrative proceeding is relevant

and necessary to the litigation and is

compatible with the purpose for which

the records were collected, the

Department may disclose those records

as a routine use to the counsel,

representative or witness.

(d) Enforcement disclosure. In the

event that information in this system of

records indicates, either on its face or in

connection with other information, a

violation or potential violation of any

applicable statute, regulation, or order

of a competent authority, the relevant

records in the system of records may be

referred, as a routine use, to the
38244 Federal Register / Vol. 63, No. 135 /Wednesday, July 15, 1998 / Notices

appropriate agency, whether foreign,

Federal, State, Tribal, or local, charged

with the responsibility of investigating

or prosecuting this violation or charged

with enforcing or implementing the

statute, or executive order or rule,

regulation, or order issued pursuant

thereto.

(e) Contract disclosure. If the

Department contracts with an entity for

the purpose of performing any function

that requires disclosure of records in

this system to employees of the

contractor, the Department may disclose

the records as a routine use to those

employees. Before entering into a

contract, the Department shall require

the contractor to maintain Privacy Act

safeguards as required under 5 U.S.C.

552a(m) with respect to the records in

the system.

(f) Disclosure to the Office of

Management and Budget (OMB) for

Credit Reform Act (CRA) Support. The

Department may disclose individually

identifiable information to OMB as

necessary to fulfill CRA requirements.

(g) Employee grievance, complaint or

conduct disclosure. Records may be

disclosed if a record maintained in this

system of records is relevant to present

or former employee grievance,

complaint, discipline or competence

determination proceedings of another

agency of the Federal Government. In

this case, the Department may disclose

the record as a routine use in the course

of the proceedings if the disclosure is

compatible with the purposes for this

system of records.

(h) Labor organization disclosure.

Records under this routine use may be

disclosed whenever a contract between

a component of the Department and a

labor organization recognized under

Title V of the United States Code,

Chapter 71, provides that the

Department will disclose personal

records relevant to the organization’s

mission. The disclosures will be made

only as authorized by law.

(i) Research disclosure. Records under

this routine use may be disclosed

whenever an appropriate official of the

Department determines that an

individual or organization is qualified to

carry out specific research related to

functions or purposes of this system of

records. The official may disclose

records from this system of records to

that researcher solely for the purpose of

carrying out that research related to the

functions or purposes of this system of

records. The researcher is required to

maintain Privacy Act safeguards with

respect to these records.

(j) Freedom of Information Act (FOIA)

Advice Disclosure. Records under this

routine use may be disclosed to the DOJ

and the OMB in the event that the

Department deems it desirable or

necessary in determining whether

particular records are required to be

disclosed under the FOIA.

(k) Disclosure to the Department of

Justice. Records may be disclosed under

this routine use to the DOJ from this

system of records as a routine use to the

extent necessary for obtaining DOJ

advice on any matter relevant to an

audit, inspection, or other inquiry

related to the programs covered by this

system.

(l) Congressional member disclosure.

The Department may disclose

information from this system of records

to a member Congress from the record

of an individual in response to an

inquiry from the member made at the

written request of that individual. The

Member’s right to the information is no

greater than the right of the individual

who requested it.

POLICIES AND PRACTICES FOR STORING,

RETRIEVING, ACCESSING, RETAINING, AND

DISPOSING OF RECORDS IN THE SYSTEM:

STORAGE:

Records under this system will be

kept on paper files in metal file cabinets

and in data files in computers. They are

stored in desk top and mainframe

computers with records backed up on

magnetic media.

RETRIEVABILITY:

The data will be retrieved by name,

loan or cage number, or Social Security

Number.

SAFEGUARDS:

All physical access to the sites of the

Department of Education and the

contractors where this system of records

is maintained, are controlled and

monitored by security personnel who

check each individual entering the

building for an employee’s or visitor’s

badge.

The computer system employed by

the Department offers a high degree of

resistance to tampering and

circumvention. This security system

limits data access to Department of

Education and contract staff on a ‘‘need

to know’’ basis, and controls individual

users’ ability to access and alter records

within the system. All users of this

system are given a unique user ID. All

interactions by individual users with

the system are recorded.

At contractor sites, access to all

automated data processing facilities are

restricted by photo identification, signin and out logs, CYPHER locks, or ID

card readers. Smoke and fire detection

devices are installed and maintained

operational on all facilities including

tape and disk library areas.

Physical security of the building

involves restricted access as well as 24-

hour security guard at the ground-floor

entrance to the building. Access to

building is obtained through the use of

key entry doors. The system permits

entry to an individual only with an

access code.

RETENTION AND DISPOSAL:

Records are disposed of in accordance

with the National Archives and Records

Administration’s General Records

Schedule (GRS) 6, items 1a, 10b, and

10c; and GRS 7.

SYSTEM MANAGER(S) AND ADDRESS:

Director, Financial Improvement and

Receivables Group, Office of the Chief

Financial Officer, U.S. Department of

Education, 600 Independence Avenue,

SW., Room 3117, Washington, DC

20202–4330. Telephone number: (202)

205–3511.

NOTIFICATION PROCEDURE:

If an individual wishes to determine

whether a record exists regarding him or

her in this system of records, the

individual should provide the system

manager his or her name, Social

Security Number, case or loan number,

or other debt identifying number.

Requests for notification about an

individual must meet the requirements

in the Department’s Privacy Act

regulations at 34 CFR 5b.5.

RECORD ACCESS PROCEDURES:

If an individual wishes to gain access

to a record in this system, he or she

should contact the system manager and

provide information described in the

notification procedure. Requests by an

individual for access to a record must

meet the requirements in the

Department’s Privacy Act regulations at

34 CFR 5b.5.
Federal Register / Vol. 63, No. 135 /Wednesday, July 15, 1998 / Notices 38245

CONTESTING RECORD PROCEDURES:

If an individual wishes to change the

content of a record in the system of

records, he or she should contact the

system manager with the information

described in the notification procedure,

identify the specific item(s) to be

changed, and provide a written

justification for the change. Requests to

amend a record must meet the

requirements of the Department’s

Privacy Act regulations at 34 CFR 5b.7.

RECORD SOURCE CATEGORIES:

Information is obtained from

Department program offices, debtors,

court orders, and probation officers.

EXEMPTIONS CLAIMED FOR THE SYSTEM:

None.

[FR Doc. 98–18872 Filed 7–14–98; 8:45 am]

BILLING CODE 4000–01–P