[Federal Register: November 12, 2002 (Volume 67, Number 218)]
[Notices]
[Page 68559-68561]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12no02-30]
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DEPARTMENT OF AGRICULTURE
Office of the Secretary
Privacy Act of 1974; Revision of System of Records
AGENCY: Office of the Secretary, USDA.
ACTION: Notice of revision of Privacy Act system of records.
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SUMMARY: Notice is hereby given that the United States Department of
Agriculture (USDA) proposes to amend the Privacy Act system of records
FCIC-2, entitled Compliance Review Cases. The system of records is
maintained by the Federal Crop Insurance Corporation (FCIC), a wholly-
owned Government Corporation administered by the Risk Management Agency
(RMA), an agency of USDA. The compliance review cases system of records
is being revised to reflect changes in the administration and
management of the Federal crop insurance program.
DATES: This notice will be effective without further notice on December
12, 2002 unless modified by a subsequent notice to incorporate comments
received from the public. Although the Privacy Act requires only that
the portion of the system which describes the ``routine uses'' of the
system be published for comment, USDA invites comment on all portions
of this notice. Comments must be received by the contact person listed
below on or before December 12, 2002.
FOR FURTHER INFORMATION CONTACT: Deputy Administrator for Compliance,
Risk Management Agency, Federal Crop Insurance Corporation, 1400
Independence Avenue, SW., Stop 0806, Washington, DC 20250-0806,
telephone number (202) 720-0642.
SUPPLEMENTARY INFORMATION: The changes to the system of records modify
the: system location; categories of individuals covered by the system;
categories of records in the system; routine uses of records maintained
in the system; policies and practices for storing, retrieving,
accessing, retaining, and disposing of records in the system; and, the
system manager. These revisions are being made to reflect changes in
the crop insurance program and RMA operations and organization. The
major revisions to this system of records are the result of mandates
included in the Agricultural Risk Protection Act of 2000. These
include, establishment of a Farm Service Agency monitoring program, and
utilization of the information technologies known as data mining and
data warehousing and other available information technologies. The
``categories of records in the system'' is revised to include the
results of the research and analyses that may be conducted on the data
by RMA or its contractors. The ``routine uses of records'' are revised
to: Update routine use number (1) to include agencies that regulate;
add routine use number (5) to permit research and analysis on data for
the purposes of detecting fraud, waste, or abuse; add routine use
number (6) permitting investigations and referrals to determine whether
information has been correctly reported and compliance with program
requirements; and, add routine use number (7) to allow records to be
used as necessary to administer, analyze, and evaluate the Federal crop
insurance program.
In conformance with 5 U.S.C. 552a(r), as implemented by OMB
Circular A-130 the Department of Agriculture sent a report reflecting
these proposed changes to the Chairman, Committee on Governmental
Affairs, United States Senate; the Chairman, Committee on Government
Reform, United States House of Representatives; and the Administrator,
Office of Information and Regulatory Affairs, Office of
[[Page 68560]]
Management and Budget on November 5, 2002.
Signed at Washington, DC on November 5, 2002.
Ann M. Veneman,
Secretary of Agriculture.
USDA/FCIC-2
System name:
Compliance Review Cases.
Security classification:
None.
System location:
Federal Crop Insurance Corporation, Risk Management Agency, 6501
Beacon Drive, Stop 0814, Kansas City, Missouri 64133-4676, headquarters
and regional compliance offices for the Federal Crop Insurance
Corporation, and the Center for Agribusiness Excellence, Tarleton State
University, 1333 W. Washington St., Stephenville, Texas, 76402.
Addresses for headquarters and each regional compliance office may be
obtained from the Deputy Administrator for Compliance, Risk Management
Agency, United States Department of Agriculture, 1400 Independence
Avenue, SW., Stop 0806, room 6094-S, Washington, DC 20250-0806.
Categories of individuals covered by the system:
The system consists of: (1) Individuals or other legal entities
that presently have or have had insurance with the Federal Crop
Insurance Corporation (FCIC) or a private insurance company reinsured
by FCIC; (2) individuals who are under contract with or employed by a
private insurance company to solicit and service crop insurance
contracts, who meet the licensing requirements set by the individual
States and requirements established by FCIC for such activities; (3)
persons authorized by FCIC or the State to perform loss adjustment and
related activities; and (4) private insurance companies and other
individuals or entities alleged to have committed acts that could
subject them to disqualification, suspension, disbarment or any other
administrative action, who are the subject of a compliance review or
investigation.
Categories of records in the system:
The system consists of: (1) Compliance review files containing
evidence gathered in the course of a compliance review; (2) the results
of any research and analyses conducted on the information contained in
any of the systems of records maintained by FCIC that are anomalous or
indicate the existence of fraud, waste or abuse; (3) the identification
of policyholders identified through other means where there are
indications of potential fraud, waste or abuse; and (4) reports and
inter/intra-Agency recommendations from the Office of Inspector
General, the Farm Service Agency, other USDA agencies, private
insurance companies, and any other sources regarding individuals or
entities who may have failed to comply with the Federal Crop Insurance
Act, any regulations promulgated thereunder, the terms of the policy,
or any procedure or directive established by FCIC.
Authority for maintenance of the system:
7 U.S.C. 1501 et seq. and 7 CFR part 1, subpart G, Appendix A.
Routine uses of records maintained in the system including categories
of users and the purposes of such uses:
Records contained in this system may be used as follows:
(1) Referral to the appropriate agency, whether Federal, State,
local or foreign, charged with the responsibility of investigating or
prosecuting a violation of law, responsible for enforcing or
implementing a statute, rule, regulation or order issued pursuant
thereto, when information available indicates a violation or potential
violation of law, whether civil, criminal, or regulatory in nature
arising by general statute, program statute, rule, regulation or order
pursuant thereto.
(2) Referral to the Department of Justice when (a) the agency, or
any component thereof; or (b) any employee of the agency in his or her
official capacity; or any employee of the agency in his or her
individual capacity where the Department of Justice has agreed to
represent the employee; or (c) the United States, where the agency
determines that litigation is likely to affect the agency or any of its
components, is a party to litigation or has an interest in such
litigation, and the use of such records by the Department of Justice is
deemed by the agency to be relevant and necessary to the litigation,
provided, however, in each case, the agency determines that disclosure
of the records to the Department of Justice is a use of the information
contained in the records that is compatible with the purpose for which
the records were collected.
(3) Disclosure in a proceeding before a court or adjudicative body
before which the agency is authorized to appear, when (a) the agency,
or any component thereof; or (b) any employee of the agency in his or
her official capacity; or (c) any employee of the agency in his or her
individual capacity where the agency has agreed to represent the
employee; or (d) the United States, where the agency determines
litigation is likely to affect the agency or any of its components, is
a party to litigation or has an interest in such litigation, and the
agency determines that use of such records is relevant and necessary to
the litigation, provided, however, that in each case, the agency
determines that disclosure of the records to the court is a use of the
information contained in the records that is compatible with the
purpose for which the records were collected.
(4) Disclosure in response to a request for discovery or for the
appearance of a witness, to the extent that the agency determines that
the information sought is relevant to the subject matter involved in a
pending judicial or administrative proceeding.
(5) Referral to contractors/cooperators for purposes of conducting
research and analyses to identify trends, patterns, anomalies,
instances and relationships of private insurance companies, agents,
loss adjusters and policyholders that may be indicative of fraud,
waste, or abuse.
(6) Referral to the Farm Service Agency or to the responsible
private insurance company to verify the accuracy of information
reported by an individual or entity to FCIC or a private insurance
company with respect to a policy or plan of insurance authorized under
the Federal Crop Insurance Act.
(7) Disclosure to private insurance companies, contractors,
cooperators, partners of FCIC, and other Federal agencies for any
purpose relating to the sale, service, administration, analysis or
evaluation of the Federal crop insurance program.
Policies and practices for storing, retrieving, accessing, retaining,
and disposing of records in the system:
Storage:
Records are maintained electronically, on computer printouts and in
the file folders at the addresses listed under ``System Location.''
Retrievability:
Records may be indexed and retrieved by the individual or entity
name, tax identification number (including social security number), the
private insurance company name, subject of the compliance review or the
case number. Data research and analyses records may be indexed and
retrieved by State and County, individual or entity name, tax
identification number (including social security number), or contract
number.
Safeguards:
Records are accessible only to authorized personnel and are
[[Page 68561]]
maintained in offices that are locked during non-duty hours. The
computer database is controlled by password protection and the computer
network is protected by means of a firewall. File folders are stored in
locked file cabinets.
Retention and disposal:
Record retention and disposal are handled in accordance with
instructions outlined in the Farm and Foreign Agricultural Service
Handbook, ``Records Management, 2-AS (Revision 10), Amendment 1.''
System Manager/s/ and Address:
Deputy Administrator for Compliance, Risk Management Agency,
Federal Crop Insurance Corporation, 1400 Independence Avenue, SW. Stop
0806, Washington, DC 20250-0806, telephone number (202) 720-0642.
Exemptions claimed for the system:
Pursuant to the provisions of 5 U.S.C. 552a(k)(2), material in this
system of records is exempt from the requirements of 5 U.S.C.
552(a)(c)(3), (d), (e)(1), (e)(4)(G), (H) and (I), and (f) because it
contains investigatory material compiled for law enforcement purposes.
See 7 CFR 1.123.
5 U.S.C. 552a(c)(3) requires that an accounting of disclosures be
made available to an individual. This would impair compliance reviews
by alerting the subject of the review to the existence of those
compliance reviews. The release of information from these files could
result in the destruction or alteration of documentary evidence
necessary to prosecution, improper influence or witnesses and other
activities which could impede or compromise the review.
5 U.S.C. 552a(d) requires that an individual is given access to and
the right to amend files pertaining to him or her. Such individual
access to these files could hamper reviews in progress by alerting
subjects involved in compliance reviews that their actions are under
scrutiny, and allow them time to take measures to prevent detection of
any illegal activities or escape prosecution. Release of these records
also would disclose investigatory techniques and review procedures
employed by the RMA Office of Risk Compliance, Federal Crop Insurance
Corporation and other agencies, which may impair law enforcement
activities.
5 U.S.C. 552a(e)(1) permits the maintenance of only such
information as is relevant and necessary to accomplish a purpose of the
Agency required by statute or Executive Order. Exemption from this
provision is required because determination of relevance and necessity
can be made only after information is evaluated. Evaluation at the time
of collection is too time consuming for the effective conduct of a
compliance review. Further, the determination of relevance or necessity
of specific information at the early stages of the compliance review is
not possible.
5 U.S.C. 552a(e)(4)(G), (H) and (f) provide for notification and
access procedures. If these requirements were followed it would
necessarily alert subjects of the compliance review to the existence of
the review and could impair the outcome of the review. Similarly,
access to the records could interfere with compliance review and
ultimate law enforcement proceedings; disclose confidential informants
and information; constitute an unwarranted invasion of personal privacy
of others; and reveal confidential investigative techniques and
procedures.
5 U.S.C. 552a(e)(4)(I) requires that categories of records in each
system be published. Application of this provision could disclose
investigative techniques and procedures employed by compliance
reviewers, which may impair law enforcement activities.
[FR Doc. 02-28667 Filed 11-8-02; 8:45 am]
BILLING CODE 3410-08-P