Computer Matching and Privacy Protection Act of 1988
PL 100-503 (S.496), enacted 10/18/1988

PUBLIC LAW 100-503—OCT. 18, 1988 
102 STAT. 2507 
Public Law 100-503 
100th Congress 
An Act 
To amend title 5 of the United States Code, to ensure privacy, integrity, and 
verification of data disclosed for computer matching, to establish Data Integrity 
Boards within Federal agencies, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the "Computer Matching and Privacy 
Protection Act of 1988". 
SEC. 2. MATCHING AGREEMENTS. 
Section 552a of title 5, United States Code, is amended— 
(1) by redesignating subsections (o), (p), and (q) as subsections 
(r), (s), and (t), respectively, and 
(2) by inserting after subsection (n) the following new subsec-
tions: 
"(o) MATCHING AGREEMENTS.—(1) No record which is contained in 
a system of records may be disclosed to a recipient agency or non-
Federal agency for use in a computer matching program except 
pursuant to a written £igreement between the source agency and the 
recipient agency or non-Federal agency specifying— 
"(A) the purpose and legal authority for conducting the pro-
gram; 
"(B) the justification for the program and the anticipated 
results, including a specific estimate of any savings; 
"(C) a description of the records that will be matched, includ-
ing each data element that will be used, the approximate 
number of records that will be matched, and the projected 
starting and completion dates of the matching program; 
"(D) procedures for providing individualized notice at the time 
of application, and notice periodically thereafter as directed by 
the Data Integrity Board of such agency (subject to guidance 
provided by the Director of the Office of Management and 
Budget pursuant to subsection (v)), to— 
"(i) applicants for and recipients of financial assistance or 
payments under Federal benefit programs, and 
"(ii) applicants for and holders of positions as Federal 
personnel, 
that any information provided by such applicants, recipients, 
holders, and individuals may be subject to verification through 
matching programs; 
"(E) procedures for verifying information produced in such 
matching program as required by subsection (p); 
"(F) procedures for the retention and timely destruction of 
identifiable records created by a recipient agency or non-Fed-
eral agency in such matching program; 
"(G) procedures for ensuring the administrative, technical, 
and physical security of the records matched and the results of 
such programs; 
Oct. 18, 1988 
[S. 496] 
Computer 
Matching and 
Privacy 
Protection Act of 
1988 
5 u s e 552a note. 
102 STAT. 2508 
PUBLIC LAW 100-503—OCT. 18, 1988 
"(H) prohibitions on duplication and redisclosure of records 
provided by the source agency within or outside the recipient 
agency or the non-Federal agency, except where required by law 
or essential to the conduct of the matching program; 
"(I) procedures governing the use by a recipient agency or 
non-Federal agency of records provided in a matching program 
by a source agency, including procedures governing return of 
the records to the source agency or destruction of records used 
in such program; 
"(J) information on assessments that have been made on the 
accuracy of the records that will be used in such matching 
program; and 
"(K) that the Comptroller General may have access to all 
records of a recipient agency or a non-Federal agency that the 
Comptroller General deems necessary in order to monitor or 
verify compliance with the agreement. 
"(2)(A) A copy of each agreement entered into pursuant to para-
graph (1) shall— 
"(i) be transmitted to the Committee on Governmental Affairs 
of the Senate and the Committee on Government Operations of 
the House of Representatives; and 
Public 
"(ii) be available upon request to the public. 
information. 
"(B) No such agreement shall be effective until 30 days after the 
date on which such a copy is transmitted pursuant to subparagraph 
(A)(i). 
"(C) Such an agreement shall remain in effect only for such 
period, not to exceed 18 months, as the Data Integrity Board of the 
agency determines is appropriate in light of the purposes, and 
length of time necessary for the conduct, of the matching program. 
"(D) Within 3 months prior to the expiration of such an agreement 
pursuant to subparagraph (C), the Data Integrity Board of the 
agency may, without additional review, renew the matching agree-
ment for a current, ongoing matching program for not more than 
one additional year i
f
— 
"(i) such program will be conducted without any change; and 
"(ii) each party to the agreement certifies to the Board in 
writing that the program has been conducted in compliance 
with the agreement. 
"(p) VERIFICATION AND OPPORTUNITY TO CONTEST FINDINGS.—(1) In 
order to protect any individual whose records are used in matching 
programs, no recipient agency, non-Federal agency, or source 
agency may suspend, terminate, reduce, or make a final denial of 
any financial assistance or payment under a Federal benefit pro-
gram to such individual, or take other adverse action against such 
individual as a result of information produced by such matching 
programs, until an officer or employee of such agency has independ-
ently verified such information. Such independent verification may 
be satisfied by verification in accordance with (A) the requirements 
of paragraph (2); and (B) any additional requirements governing 
verification under such Federal benefit program. 
"(2) Independent verification referred to in paragraph (1) requires 
independent investigation and confirmation of any information used 
as a basis for an adverse action against an individual including, 
where applicable— 
"(A) the amount of the asset or income involved, 
"(B) whether such individual actually has or had access to 
such asset or income for such individual's own use, and 
PUBLIC LAW 100-503—OCT. 18, 1988 
102 STAT. 2509 
"(C) the period or periods when the individual actually had 
such asset or income. 
"(3) No recipient agency, non-Federal agency, or source agency 
may suspend, terminate, reduce, or make a final denial of any 
financial Eissistance or payment under a Federal benefit program to 
any individual described in paragraph (1), or take other adverse 
action against such individual as a result of information produced 
by a matching program, (A) unless such individual has received 
notice from such agency containing a statement of its findings and 
informing the individual of the opportunity to contest such findings, 
and (B) until the subsequent expiration of £uiy notice period pro-
vided by the program's law or regulations, or 30 days, whichever is 
later. Such opportunity to contest may be satisfied by notice, hear-
ing, and appeal rights governing such Federsd benefit program. The 
exercise of any such rights shall not affect any rights available 
under this section. 
"(4) Notwithstanding parsigraph (3), an agency may take any 
Safety, 
appropriate action otherwise prohibited by such paragraph if the 
agency determines that the public health or public safety may be 
adversely affected or significantly threatened during the notice 
period required by such paragraph. 
"(q) SANCTIONS.—(1) Notwithstanding any other provision of law, 
no source agency may disclose any record which is contained in a 
system of records to a recipient agency or non-Federal agency for a 
matching program if such source agency has reason to believe that 
the requirements of subsection (p), or any matching agreement 
entered into pursuant to subsection (o), or both, are not being met by 
such recipient agency. 
"(2) No source agency may renew a matching agreement unless— 
"(A) the recipient agency or non-Federal agency has certified 
that it has complied with the provisions of that agreement; £ind 
"(B) the source agency has no reason to believe that the 
certification is inaccurate.". 
SEC. 3. NOTICE OF MATCHING PROGRAMS. 
(a) NOTICE IN FEDERAL REGISTER.—Subsection (e) of section 552a of 
title 5, United States (IJode, is amended— 
(1) by striking out "and" at the end of paragraph (10), 
(2) by striking out the period at the end of paragraph (11) and 
inserting in lieu thereof "; and", and 
(3) by adding at the end thereof the following new paragraph: 
"(12) if such agency is a recipient agency or a source agency in 
a matching program with a non-Federal agency, with respect to 
any establishment or revision of a matching program, at least 
30 days prior to conducting such program, publish in the Fed-
eral Register notice of such establishment or revision.". 
(b) 
REPORT TO CONGRESS AND OFFICE OF MANAGEMENT AND 
BUDGET.—Subsection (r) of section 552a of title 5, United States 
Code, as redesignated by section 20t)Xl) of this Act, is amended to 
read as follows: 
"(r) REPORT ON NEW SYSTEMS AND MATCHING PROGRAMS.—Each 
agency that proposes to establish or make a significant change in a 
system of records or a matching program shall provide adequate 
advance notice of any such proposal (in duplicate) to the Committee 
on Government Operations of the House of Representatives, the 
Committee on Governmental Affairs of the Senate, and the Office of 
Management and Budget in order to permit an evaluation of the 
102 STAT. 2510 
PUBLIC LAW 100-503—OCT. 18, 1988 
Contracts. 
Reports. 
Public 
information 
probable or potential effect of such proposal on the privacy or other 
rights of individuals.". 
SEC. 4. DATA INTEGRITY BOARD. 
Section 552a of title 5, United States Code, as amended by section 
2(b)(1) of this Act, is amended by adding at the end thereof the 
following new subsection: 
"(u) DATA INTEGRITY BOARDS.—(1) Every agency conducting or 
participating in a matching program shall establish a Data Integrity 
Board to oversee and coordinate among the various components of 
such agency the agency's implementation of this section. 
"(2) Each Data Integrity Board shall consist of senior officials 
designated by the head of the agency, and shall include any senior 
official designated by the head of the agency as responsible for 
implementation of this section, and the inspector general of the 
agency, if any. The inspector general shall not serve as chairman of 
the Data Integrity Board. 
"(3) Each Data Integrity Board— 
"(A) shall review, approve, and maintain all written agree-
ments for receipt or disclosure of agency records for matching 
programs to ensure compliance with subsection (o), and all 
relevant statutes, regulations, and guidelines; 
"(B) shall review all matching programs in which the agency 
has participated during the year, either as a source agency or 
recipient agency, determine compliance with applicable laws, 
regulations, guidelines, and agency agreements, and assess the 
costs and benefits of such programs; 
"(C) shall review all recurring matching programs in which 
the agency has participated during the year, either as a source 
agency or recipient agency, for continued justification for such 
disclosures; 
"(D) shall compile an annual report, which shall be submitted 
to the head of the agency and the Office of Management and 
Budget and made available to the public on request, describing 
the matching activities of the agency, including— 
"(i) matching programs in which the agency has partici-
pated as a source agency or recipient agency; 
"(ii) matching agreements proposed under subsection (o) 
that were disapproved by the Board; 
"(iii) any changes in membership or structure of the 
Board in the preceding year; 
"(iv) the reasons for any waiver of the requirement in 
paragraph (4) of this section for completion and submission 
of a cost-benefit analysis prior to the approval of a match-
ing program; 
"(v) any violations of matching agreements that have 
been alleged or identified and any corrective action taken; 
and 
"(vi) any other information required by the Director of 
the Office of Management and Budget to be included in 
such report; 
"(E) shall serve as a clearinghouse for receiving and providing 
information on the accuracy, completeness, and reliability of 
records used in matching programs; 
"(F) shall provide interpretation and guidance to agency 
components and personnel on the requirements of this section 
for matching programs; 
PUBLIC LAW 100-503—OCT. 18, 1988 
102 STAT. 2511 
"(G) shall review agency recordkeeping and disposal policies 
and practices for matching programs to assure compliance with 
this section; and 
"(H) may review and report on any agency matching activi-
ties that are not matching programs. 
"(4)(A) Except as provided in subparagraphs (B) and (C), a Data 
Ck)ntracts. 
Integrity Board shall not approve any written agreement for a 
matching program unless the agency has completed and submitted 
to such Board a cost-benefit analysis of the proposed program and 
such analysis demonstrates that the program is likely to be cost 
effective. 
"(B) The Board may waive the requirements of subparagraph (A) 
of this paragraph if it determines in writing, in accordance with 
guidelines prescribed by the Director of the Office of Management 
and Budget, that a cost-benefit analysis is not required. 
"(C) A cost-benefit analysis shall not be required under subpara-
graph (A) prior to the initied approval of a written agreement for a 
matching program that is specifically required by statute. Any 
subsequent written agreement for such a program shsdl not be 
approved by the Data Integrity Board unless the agency has submit-
ted a cost-benefit analysis of the program as conducted under the 
preceding approval of such agreement. 
"(5)(A) If a matching agreement is disapproved by a Data Integrity 
Board, any party to such agreement may appeal the disapproval to 
the Director of the Office of Management and Budget. Timely notice 
of the filing of such an appeal shall be provided by the Director of 
the Office of Management and Budget to the Committee on Govern-
mental Affairs of the Senate and the Committee on Government 
Operations of the House of Representatives. 
"(B) The Director of the Office of Management and Budget may 
approve a matching agreement notwithstanding the disapproval of a 
Data Integrity Board if the Director determines that— 
"(i) the matching program will be consistent with all ap-
plicable legal, regulatory, and policy requirements; 
"(ii) there is adequate evidence that the matching agreement 
will be cost-effective; and 
"(iii) the matching program is in the public interest. 
"(C) The decision of the Director to approve a matching agreement 
shall not take effect until 30 days after it is reported to committees 
described in subparagraph (A). 
"(D) If the Data Integrity Board and the Director of the Office of 
Management and Budget disapprove a matching program proposed 
by the inspector general of an agency, the inspector general may 
report the disapproval to the head of the agency and to the Con-
gress. 
"(6) The Director of the Office of Management and Budget shall. 
Reports, 
annually during the first 3 years after the date of enactment of this 
subsection and biennially thereafter, consolidate in a report to the 
Congress the information contained in the reports from the various 
Data Integrity Boards under paragraph (3XD). Such report shall 
include detailed information about costs and benefits of matching 
programs that are conducted during the period covered by such 
consolidated report, and shall identify each waiver granted by a 
Data Integrity Board of the requirement for completion and submis-
sion of a cost-benefit analysis and the reasons for granting the 
waiver. 
102 STAT. 2512 
PUBLIC LAW 100-503~OCT. 18, 1988 
"(7) In the reports required by paragraphs (3)(D) and (6), agency 
matching activities that are not matching programs may be re-
ported on an aggregate basis, if and to the extent necessary to 
protect ongoing law enforcement or counterintelligence investiga-
tions.". 
SEC. 5. DEFINITIONS. 
Subsection (a) of section 552a of title 5, United States Code, is 
amended— 
(1) by striking out "and" at the end of paragraph (6), 
(2) by striking out the period at the end of paragraph (7) and 
inserting in lieu thereof a semicolon, and 
(3) by adding at the end thereof the following new paragraphs: 
"(8) the term 'matching program'— 
"(A) means any computerized comparison o
f
— 
"(i) two or more automated systems of records or a 
system of records with non-Federal records for the 
purpose o
f
— 
"(I) establishing or verifying the eligibility of, or 
continuing compliance with statutory and regu-
latory requirements by, applicants for, recipients 
or beneficiaries of, participants in, or providers of 
services with respect to, cash or in-kind assistance 
or pajrments under Federal benefit programs, or 
"(II) recouping payments or delinquent debts 
under such Federal benefit programs, or 
"(ii) two or more automated Federal personnel or 
payroll systems of records or a system of Federal 
personnel or payroll records with non-Federal records, 
"(B) but does not include— 
"(i) matches performed to produce aggregate statis-
tical data without any personal identifiers; 
"(ii) matches performed to support any research or 
statistical project, the specific data of which may not be 
used to make decisions concerning the rights, benefits, 
or privileges of specific individuals; 
(iii) matches performed, by an ajgency (or component 
thereof) which performs as its principal function any 
activity pertaining to the enforcement of criminal laws, 
subsequent to the initiation of a specific criminal or 
civil law enforcement investigation of a named person 
or persons for the purpose of gathering evidence 
against such person or persons; 
"(iv) matches of tax information (I) pursuant to sec-
tion 6103(d) of the Internal Revenue Code of 1986, (II) 
for purposes of tax administration as defined in section 
6103(b)(4) of such Code, (III) for the purpose of inter-
cepting a tax refund due an individual under authority 
granted by section 464 or 1137 of the Social Security 
Act; or (IV) for the purpose of intercepting a tax refund 
due an individual under any other tax refund intercept 
program authorized by statute which has been deter-
mined by the Director of the Office of Management and 
Budget to contain verification, notice, and hearing 
requirements that are substantially similar to the 
procedures in section 1137 of the Social Security Act; 
"(v) matches— 
PUBLIC LAW 100-503—OCT. 18, 1988 
102 STAT. 2513 
"(D using records predominantly relating to Fed-
eral personnel, that are performed for routine 
administrative purposes (subject to guidance pro-
vided by the Director of the Office of Ma^xagement 
and Budget pursuant to subsection (v)); or 
"(11) conducted by an agency using only records 
from systems of records maintained by that 
agency; 
if the purpose of the match is not to take any adverse 
financial, personnel, disciplinary, or other adverse 
action against Federal personnel; or 
"(vi) matches performed for foreign counterintel-
ligence purposes or to produce background checks for 
security clearances of Federal personnel or Federal 
contractor personnel; 
"(9) the term 'recipient agency' means any agency, or contrac-
tor thereof, receiving records contained in a system of records 
from a source agency for use in a matching program; 
"(10) the term 'non-Federal agency' means any State or local 
government, or agency thereof, which receives records con-
tained in a system of records from a source agency for use in a 
matching program; 
"(11) the term 'source agency' means any agency which dis-
closes records contained in a system of records to be used in a 
matching program, or any State or local government, or agency 
thereof, which discloses records to be used in a matching pro-
gram; 
"(12) the term 'Federal benefit program' means any program 
administered or funded by the Federal Government, or by any 
agent or State on behalf of the Federal Government, providing 
cash or in-kind assistance in the form of payments, grants, 
loans, or loan guarantees to individuals; and 
"(13) the term 'Federal personnel' means officers and employ-
ees of the Government of the United States, members of the 
uniformed services (including members of the Reserve Compo-
nents), individuals entitled to receive immediate or deferred 
retirement benefits under any retirement program of the 
Government of the United States (including survivor benefits).". 
SEC. 6. FUNCTIONS OF THE DIRECTOR OF THE OFFICE OF MANAGEMENT 
AND BUDGET. 
(a) AMENDMENT.—Section 552a of title 5, United States Code, is 
further amended by adding at the end thereof the following: 
"(v) OFFICE OF MANAGEMENT AND BUDGET RESPONSIBILITIES.—The 
Director of the Office of Management and Budget shall— 
"(1) develop and, after notice and opportunity for public 
comment, prescribe guidelines and regulations for the use of 
agencies in implementing the provisions of this section; and 
"(2) provide continuing assistance to and oversight of the 
implementation of this section by agencies.". 
(b) IMPLEMENTATION GUIDANCE FOR AMENDMENTS.—The Director 
shall, pursuant to section 552a(v) of title 5, United States Code, 
develop guidelines and regulations for the use of agencies in im-
plementing the amendments made by this Act not later than 8 
months after the date of enactment of this Act. 
(c) CONFORMING AMENDMENT.—Section 6 of the Privacy Act of 
1974 is repealed. 
Regulations. 
Regulations. 
5 u s e 552a note. 
5 use 552a note. 
102 STAT. 2514 
PUBLIC LAW 100-503—OCT. 18, 1988 
SEC. 7. COMPILATION OF RULES AND NOTICES. 
Section 552a(f) of title 5, United States Code, is amended by 
striking out "annually" in the last sentence and inserting "bienni-
ally". 
SEC. 8. ANNUAL REPORT. 
Subsection (s) of section 552a of title 5, United States Code (as 
redesignated by section 2 of this Act), is amended— 
(1) by striking out "ANNUAL" in the heading of such subsec-
tion and inserting "BIENNIAL"; 
(2) by striking out "annually submit" and inserting "bienni-
ally submit"; 
(3) by striking out "preceding year" and inserting "preceding 
2 years"; and 
(4) by striking out "such year" and inserting "such years". 
5 use 552a note. 
SEC. 9. RULES OF CONSTRUCTION. 
Nothing in the amendments made by this Act shall be construed 
to authorize— 
(1) the establishment or maintenance by any agency of a 
national data bank that combines, merges, or links information 
on individuals maintained in systems of records by other Fed-
eral agencies; 
(2) the direct linking of computerized systems of records 
maintained by Federal agencies; 
(3) the computer matching of records not otherwise au-
thorized by law; or 
(4) the disclosure of records for computer matching except to a 
Federal, State, or local agency. 
5 use 552a note. SEC. 10. EFFECTIVE DATES. 
(a) IN GENERAL.—Except as provided in subsection Qy), the amend-
ments made by this Act shall take effect 9 months after the date of 
enactment of this Act. 
0)) EXCEPTIONS.—The amendment made by sections 3(b), 6, 7, and 
8 of this Act shall take effect upon enactment. 
Approved October 18, 1988. 
LEGISLATIVE HISTORY—S. 496 (H.R. 4699): 
HOUSE REPORTS: No. 100-802 accompanying H.R. 4699 (Comm. on Government 
Oi!)6i!*3.^ions) 
SENATE REPORTS: No. 100-516 (Comm. on Governmental Affairs). 
CONGRESSIONAL RECORD: 
Vol. 133 (1987): May 21, considered and passed Senate. 
Vol. 134 (1988): Aug. 1, H.R. 4699 considered and passed House; proceedings 
vacated and S. 496, amended, passed in lieu. 
Sept. 20, Senate concurred in House amendment with an 
amendment. 
Oct. 3, House concurred in Senate amendment.