[Federal Register Volume 61, Number 232 (Monday, December 2, 1996)]
[Notices]
[Pages 63815-63817]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-30088]
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Notices
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains documents other than rules
or proposed rules that are applicable to the public. Notices of hearings
and investigations, committee meetings, agency decisions and rulings,
delegations of authority, filing of petitions and applications and agency
statements of organization and functions are examples of documents
appearing in this section.
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Federal Register / Vol. 61, No. 232 / Monday, December 2, 1996 /
Notices
[[Page 63815]]
DEPARTMENT OF AGRICULTURE
Office of the Secretary
Privacy Act; System of Records
AGENCY: Office of the Secretary, USDA.
ACTION: Notice of New Privacy Act System of Records--Food Stamp Program
Retailer Information.
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SUMMARY: The United States Department of Agriculture (USDA), Food and
Consumer Service (FCS), is proposing to establish a new system of
records in accordance with the Privacy Act of 1974. This system of
records, entitled Food Stamp Program Retailer Information, USDA/FCS-9,
is necessary in order for FCS to administer the enforcement provisions
of section 9 of the Food Stamp Act of 1977, as amended. Information
contained in this system of records will be used to determine whether
retail or wholesale store owners and officers, and/or owners and
officers associated with other entities authorized to redeem food
stamps, such as private restaurants that qualify to participate in the
special restaurant program to serve elderly, homeless and disabled Food
Stamp Program (FSP) recipients, qualify to participate or continue to
participate in the FSP, to monitor compliance with program regulations,
and for program management.
EFFECTIVE DATE: This notice will be effective, without further notice,
January 13, 1997, unless modified by a subsequent notice to incorporate
comments received from the public. Comments must be received by the
contact person listed below on or before January 21, 1997, to be
assured of consideration.
ADDRESSES: Comments should be addressed to: Thomas O'Connor, Director,
Benefit Redemption Division, Food and Consumer Service, USDA, Room 706,
3101 Park Center Drive, Alexandria, Virginia 22302. Telephone: (703)
305-2419.
FOR FURTHER INFORMATION CONTACT: Joseph M. Scordato, FCS Privacy Act
Officer, Room 308, 3101 Park Center Drive, Alexandria, Virginia 22302.
Telephone: (703) 305-2244.
SUPPLEMENTARY INFORMATION: In accordance with section 9 of the Food
Stamp Act of 1977, as amended, (7 U.S.C. 2018), and USDA FSP
regulations (7 CFR part 278), each retail or wholesale food store or
other eligible entity that desires to participate or continue to
participate in the FSP must file such application for authorization or
reauthorization as prescribed by FCS. The information provided in the
application for authorization or reauthorization is used to determine
whether a retail or wholesale store or other entity, such as private
restaurants that qualify to participate in the special restaurant
program to serve elderly, homeless and disabled FSP recipients,
qualifies or continues to qualify to participate in the FSP, to monitor
compliance with program regulations, and for program management.
Section 1735 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (Pub. L. 101-624, 104 Stat. 3359) amended section
205(c)(2)(C)(iii) of the Social Security Act (42 U.S.C.
405(c)(2)(C)(iii)) and added section 6109(f) to the Internal Revenue
Code of 1986 (26 U.S.C. 6109(f)) to authorize FCS to request each
applicant retail or wholesale store or other entity to furnish FCS the
Social Security Number (SSN) of each individual who is an officer of a
corporate applicant and, in the case of a privately owned applicant,
the SSN of each owner, as well as the employer identification numbers
(EINs) assigned to the applicant by the Internal Revenue Service.
Public Law 101-624 also provided that no officer or employee of USDA
may have access to the SSN or EIN information provided in the
applications for any purpose other than the establishment and
maintenance of a list of such individuals for use in determining those
applicants who have been previously sanctioned or convicted under
sections 12 or 15 of the Food Stamp Act (7 U.S.C. 2021 or 2024).
When FCS determines that a store or other concern qualifies to
participate in the FSP, the information provided by the applicant on
the application including the personal information (i.e., name, home
address, SSN, and date of birth) pertaining to the owners or officers,
is entered into the FCS' computer database (i.e., Store Tracking and
Redemption Subsystem (STARS)). STARS is used primarily for tracking the
authorization and food stamp redemption activity of owners and officers
of concerns currently participating in the Food Stamp Program, as well
as those owners and officers who have previously participated in the
program.
Recently, FCS was given broader authority with respect to the use
and disclosure of the personal identifying information provided by
applicant owners and officers on their application for authorization or
reauthorization. Section 203 of the Food Stamp Program Improvements Act
of 1994 (Pub. L. 103-225, 108 Stat. 106) amended section 9(c) of the
Food Stamp Act to expand the use and disclosure of information obtained
from applicant and participating retail or wholesale food concerns and
other entities, such as food stamp redemption data, as well as
information about ownership (excluding SSNs and EINs) and sales data
included on the initial application, in addition to information
required to be submitted for purposes of determining whether a retailer
or wholesaler or other concern continues to qualify. USDA/FCS may
release this information to other Federal agencies or to State
government agencies, for the purpose of administering and enforcing the
Food Stamp Act as well as any other Federal or State laws.
In addition, section 316 of the Social Security Independence and
Program Improvements Act of 1994 (Pub. L. 103-296, 108 Stat. 1464)
expanded the authority of FCS to share SSNs and EINs of food stamp
retailers or wholesalers with other Federal agencies to the extent that
the Secretary of Agriculture determines sharing would assist another
Federal agency, which otherwise has access to SSNs and EINs in
accordance with applicable Federal law, in verifying and matching
information. The recipient agency may use the information so supplied
only for the purpose of enforcing Federal laws. The SSNs and EINs of
owners and officers will not be shared with State entities.
A ``Report on New System,'' required by 5 U.S.C. 552a(r), as
implemented by OMB Circular A-130, was sent to the
[[Page 63816]]
Chairman, Senate Committee on Governmental Affairs, the Chairman, House
Committee on Government Operations, and to the Administrator, Office of
Information and Regulatory Affairs, of the Office of Management and
Budget on November 18, 1996.
Signed at Washington, DC, on November 18, 1996.
Dan Glickman,
Secretary of Agriculture.
SYSTEM NAME: USDA/FC5-9
Food Stamp Program Retailer Information.
SECURITY CLASSIFICATION:
None.
SYSTEM LOCATION:
The paper records (i.e., the applications for authorization and
reauthorization) which contain the personal identifying information on
retail and wholesale store owners and officers, and/or owners and
officers associated with other entities, are located in FCS field
offices throughout the United States. The location of each FCS field
office may be found in the local phone books. The host computer
database which contains the STARS database, is located at the
Minneapolis Computer Support Center, PO Box 135, Minneapolis, Minnesota
55440.
CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
The system consists of personal information from owners and
officers of stores and other entities currently participating in the
Food Stamp Program, as well as those owners and officers who have
previously participated in the program. The individual paper records
(i.e., applications for authorization) located in FCS field offices
also contain personal information from owners and officers who applied
for authorization to participate in the FSP but were denied
authorization.
CATEGORIES OF RECORDS IN THE SYSTEM:
The applications for authorization and reauthorization are in the
STARS database and located in the files of FCS field offices. The
applications contain the following personal information regarding
owners and officers: Name, home address, social security number, and
date of birth. Financial data (i.e., food sales, gross sales, food
stamp redemption data) relative to each entity currently authorized or
previously authorized is in the STARS database. While this information
is not covered by the Privacy Act when associated with business
information, it is subject to the Privacy Act when associated with the
personal information of owners and officers of such entities.
AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
Section 9 of the Food Stamp Act of 1977, as amended, (7 U.S.C.
2018); section 1735 of the Food, Agriculture, Conservation, and Trade
Act of 1990 (Pub. L. 101-624, 104 Stat. 3359); section 205(c)(2)(C) of
the Social Security Act (42 U.S.C. 405(c)(2)(C)); and section 6109(f)
of the Internal Revenue Code of 1986 (26 U.S.C. 6109(f)).
PURPOSE:
This information will be shared with other Federal and State
entities to assist in the administration and enforcement of the Food
Stamp Act, as well as other Federal and State laws. STARS is used
primarily for tracking the authorization and food stamp redemption
activity of owners and officers of entities currently participating in
the Food Stamp Program, as well as those owners and officers who have
previously participated in the Food Stamp Program.
ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES
OF USERS AND THE PURPOSES OF SUCH USES:
LIMITATIONS ON DISCLOSURE UNDER THE FOLLOWING ROUTINE USES (1) THROUGH
(10):
Information obtained from applicants under the authority of 7
U.S.C. 2018(c) may be used or disclosed only as specified in 7 U.S.C.
2018(c).
Applicant social security numbers and employer identification
numbers may be disclosed only to other Federal agencies authorized to
have access to social security numbers and employer identification
numbers, and only when the Secretary of Agriculture determines that
disclosure would assist in verifying and matching such information
against information maintained by such other agency. 42 U.S.C.
405(c)(2)(C)(iii); 26 U.S.C. 6109(f).
(1) USDA/FCS may disclose information from this system of records
to the Department of Justice (DOJ), a court or other tribunal, or
another party before such tribunal, when USDA, any component thereof,
or any employee of the USDA in his or her official capacity, any USDA
employee in his or her individual capacity where DOJ (or USDA where it
is authorized to do so) has agreed to represent the employee, or the
United States where USDA determines that the litigation is likely to
affect directly the operations of USDA or any of its components, is a
party to the litigation or has an interest in such litigation, and USDA
determines that the use of such records by DOJ, the court or other
tribunal, or the other party before such tribunal is relevant and
necessary to the litigation; provided, however, that in each case, USDA
determines that such disclosure is compatible with the purpose for
which the records were collected.
(2) In the event that material in this system indicates a violation
of the Food Stamp Act or any other Federal or State law whether civil
or criminal or regulatory in nature, and whether arising by general
statute, or by regulation, rule or order issued pursuant thereto, USDA/
FCS may disclose the relevant records to the appropriate agency,
whether Federal or State, charged with the responsibility of
investigating or prosecuting such violation or charged with enforcing
or implementing the statute, or rule, regulation or order issued
pursuant thereto.
(3) USDA/FCS may disclose records from this system of records to a
congressional office from the record of an individual provided that
individual gave the congressional office permission to inquire on his
or her behalf.
(4) USDA/FCS may disclose information from this system of records
to the Internal Revenue Service for the purpose of offsetting a
monetary penalty for violations committed under the Food Stamp Program
against a tax refund that may be due to the debtor.
(5) USDA/FCS may disclose information from this system of records
to other Federal and State agencies to respond to specific requests
from such Federal and State agencies for the purpose of administering
the Food Stamp Act as well as other Federal and State laws.
(6) USDA/FCS may disclose information from this system of records
to other Federal and State agencies to verify information reported by
applicants and participating firms, and to assist in the administration
and enforcement of the Food Stamp Act as well as other Federal and
State laws.
(7) USDA/FCS may disclose information from this system of records
to other Federal and State agencies for the purpose of conducting
computer matching programs.
(8) USDA/FCS may disclose information from this system of records
to private entities having contractual agreements with USDA for
designing, developing, and operating the system, and for verification
and computer matching purposes.
(9) USDA/FCS may disclose an owner's home address to a financial
institution to verify information contained on a redemption certificate
[[Page 63817]]
(Form FCS-278B, formerly Form FNS-278B) submitted by a participating
retailer. Authorized entities use these certificates when depositing
food coupons at financial institutions. On occasion, particularly with
small businesses, the owner's business address may also be the owner's
home address.
(10) USDA/FCS will disclose information from this system of records
to the Internal Revenue Service, for the purpose of reporting
delinquent retailer and wholesaler monetary penalties of $600 or more
for violations committed under the Food Stamp Program. USDA/FCS will
report each delinquent debt to the Internal Revenue Service on Form
1099-C (Cancellation of Debt). USDA/FCS will report these debts to the
Internal Revenue Service under the authority of the Income Tax
Regulations (26 CFR parts 1 and 602) under section 6050P of the
Internal Revenue Code.
POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING,
AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
File folders, magnetic tapes, and computer disks.
RETRIEVABILITY:
In STARS, the personal identifying information is retrievable by
owner's name and by SSN.
SAFEGUARDS:
1. Authorized Users: When designing, developing and/or operating a
system of records on individuals, contractors are required to comply
with all provisions of the Privacy Act. Contractors are required to
maintain and protect the personal data and cannot release or share data
without consulting with FCS. Access to records maintained within FCS is
limited to those staff officials responsible for the subject system of
records. Otherwise, access is limited to persons authorized and needing
to use the records, including project directors, contract officers,
programmers, analysts, statisticians, statistical clerks and key punch
operators on the staff of the contractors or in the FCS.
2. Physical Safeguards: Paper records are stored in locked safes,
locked files, and locked offices when not in use. Computer terminals
used to process personal identifiable data are located in secured areas
and are accessible only to authorized users. Back up records which are
stored off-site shall be used and stored under the same secure
conditions.
3. Procedural Safeguards: In order to access STARS, each authorized
individual is given a personal access ID and password. The individual's
password must be changed at least every 45 days or whenever the
individual feels it might have been compromised.
Access to personal information contained in the STARS database and
to the paper record files is restricted to those individuals who have
been authorized by FCS and who have a need to know such information in
the performance of their official duties in administering the Food
Stamp Act and other Federal and State laws. SSNs cannot be viewed on
screen in STARS by those individuals who are not specifically
authorized to view them.
FCS personnel, project officers, and contract officers oversee
compliance with these requirements. When appropriate, FCS personnel
will review the site facilities to ensure that records have been
maintained in accordance with the terms of this notice.
RETENTION AND DISPOSAL:
In STARS, the personal identifying information is maintained
indefinitely. The applications for authorization and reauthorization
are kept in the FCS field offices for three years and then destroyed
pursuant to the applicable document retention and disposal schedule.
SYSTEM MANAGER AND ADDRESS:
Thomas O'Connor, Director, Benefit Redemption Division, Food and
Consumer Service, United States Department of Agriculture, Room 706,
3101 Park Center Drive, Alexandria, Virginia 22302.
NOTIFICATION PROCEDURE:
Any individual may request information regarding this system of
records from the System Manager. The request must be in writing.
RECORD ACCESS PROCEDURES:
An individual who wishes to request access to records in the system
which pertains to him or her may submit a written request to the System
Manager. The envelope and the letter should be marked, ``Privacy Act
Request''. An individual may be required to reference the record by
furnishing name, address, Social Security Number, and/or other
identifiers needed by FCS.
CONTESTING RECORD PROCEDURES:
Individuals desiring to contest or amend information maintained in
the system should direct their request to the System Manager. The
request should include, as appropriate, the reasons for contesting it,
and the proposed amendment to the information with supporting
information to show how the record is inaccurate, incomplete, untimely,
or irrelevant.
RECORD SOURCE CATEGORIES:
Information in this system comes from the authorization and
reauthorization applications of stores and other entities which are
currently participating in the Food Stamp Program, as well as
information on file for those entities which have previously
participated in the program. Personal information in this system of
records is also obtained from the owners and officers of such entities
as reported on the authorization and reauthorization applications.
The STARS database also keeps a food stamp redemption history on
such entities. The database maintains the dollar amount of food stamp
benefits accepted by each entity currently authorized or previously
authorized.
EXEMPTIONS CLAIMED FOR THE SYSTEM:
None.
[FR Doc. 96-30088 Filed 11-29-96; 8:45 am]
BILLING CODE 3410-30-P
