D. Public Access

Access to files is in accordance with 31 CFR 323 which limits disclosure to certain designated individuals: legal representatives of the owner, survivors of the owner, trustees in bankruptcy and receivers of insolvents' estates.

E. Security Precautions

The Registered Securities Ownership files are maintained in a secure building. Access to the building is provided only to authorized officials and official visitors. The Savings Bond Microfilm File is accessed"... in accordance with prescribed policies and guidelines," the details of which were not provided with the response. The response was unclear as to security precautions for U.S. Savings Bond Files.

F. Sources of Information

Data is derived from bond stubs (on purchase), from the face of a bond (on redemption), and from requests for purchase or redemption submitted by banks or brokers on behalf of individuals.

IV. Evaluation

Unusually broad access is provided to other agencies. Although there is no interfacing, the response does not reveal any meaningful limitation on disclosure to other federal and state offices.

Agency Response

The Bureau of the Public Debt prepared the following response to the subcommittee's October 15, 1971 request for replies to the standard questionnaire (see inside back cover), cn November 9, 1971. It was received May 8, 1973.

BUREAU OF THE PUBLIC DEBT-WASHINGTON OFFICE

A. REGISTERED SECURITIES-OWNERSHIP FILE

Date Response Prepared-November 19, 1971.

Class of File.-Other Files

File Control No.-01

File Medium.-Computer Magnetic Tape; Microfilm; Automated Elevator File Card Cabinet

National Security Classification.-None

(1) Describe briefly the major categories of data on individuals presently maintained and stored under auspices of the Treasury Department and its agencies and the approximate number of subject individuals covered in each category.

The Registered Securities Owners File is a file of U.S. Treasury and certain government agency securities. The file contains the name(s), Social Security Number(s), and address of registered security owners and the amount of securities owned.

There are approximately 200,000 records contained on active file and 15 million records in the historical files.

(2) Under what statutory and administrative authority was each data bank established and for what purpose? Please supply copies of pertinent federal statutes, regulations and memoranda on which this authority is based and by which it is implemented.

The Second Liberty Bond Act, as amended (31 U.S.C. 752-753), authorizes the issuance of Treasury Bonds and Notes in such forms as the Secretary of the Treasury may prescribe. Each circular inviting subscriptions for a new issue of such securities permits the subscriber to request that his securities be in either bearer or registered form. This data bank was established to

20-550 O 74 pt. 58

provide records of the ownership of registered securities. The records serve as a basis for the payment of semiannual interest and for granting relief for securities which are lost, stolen or destroyed. Copies are attached of the pertinent portions of the Second Liberty Bond Act, a typical offering circular and the implementing regulations contained in 31 CFR 306. [All are omitted.] (3) Are Treasury Department controls, guidelines, or advice required by or offered to state officials and private individuals who either administer or who utilize this data-gathering program? Please supply copies of pertinent rules or advisory documents as issued by federal and state agencies.

State officials and private individuals are not involved in either the administration or utilization of this program.

(4) For each category and each conglomerate of data, indicate its present state of computerization or other mechanization for access and retrieval as well as for evaluation and analysis.

(1) Access to historical records and interest payment records is by use of the microfilm file. Each closed account card and each interest payment check is microfilmed for future reference.

(2) Access to open accounts is made through a set of alphabetic cards kept in an automated elevator card file. This file references specific accounts and is used for handling inquiry work and making corrections and changes to individual accounts.

(3) Interest payment checks are mailed semiannually by the Division of Disbursement, Department of the Treasury. We provide them with a computer magnetic tape containing all necessary information for completing, processing and mailing of these checks.

(5) Describe plans for further computerization or mechanization in each pro

gram.

The automated card file for cross-referencing securities ownership will be converted to magnetic tape. (6) In what instances would each system be utilized? By what officials and by what agencies?

The system is utilized to record security ownership, issue interest checks, service inquiries concerning securities ownership or status and reporting interest earned to the Internal Revenue Service.

(7) For each new data storage and processing program, please describe: (a) the advantages; and (b) the extent to which it permits correlating, common storage and multi-faceted analysis of data on a scale not hitherto available.

(a) Each new data storage system has permitted faster processing speeds and decreased the cost for processing and servicing registered securities

owners.

(b) None.

(8) What specific subject areas concerning an individual's background, personal life, personality and habits are noted in each data program?

None. The data file contains only information reflecting the individual's financial holdings of registered securities.

(9) Has the Treasury Department and its component agencies developed comprehensive guidelines governing maintenance of any or all the various data systems, access to them, review and disclosure of material in them, and distribution of data to other agencies? If so, please supply copies.

Yes, disclosure of information and distribution of data is made pursuant to the provisions of 31 CFR 323, attached, and related memos.

(10-A) Is the subject individual or his representative notified of the fact that he is in the data bank?

By virtue of the fact that the individual has purchased the registered security, he is aware that his name appears in a data base kept for the purpose of making interest payments. Otherwise, he is not formally notified. (B) Is he allowed to review the data on record about him; to supplement his file; or to explain or rebut inaccurate material? Please describe the precise limitations on such rights for each restriction.

The data on file pertaining to registered holdings is furnished to authorized persons and agencies. No limitation is imposed on their right to question the accuracy of Bureau records.

(11) What aspects of the recorded data are available to other persons? Who, specifically? For what purpose? By what authority?

Records pertaining to the purchase, ownership of, and transactions of registered securities are ordinarily disclosed to owners, their executors, administrators or other legal representatives or to their survivors or to investigative and certain other agencies of the Federal and State governments, to trustees

in bankruptcy, receivers of insolvent estates or where proper order has been entered requesting disclosure of information to Federal and State courts. Information is disclosed for the purpose of establishing ownership or entitlement.

Disclosure of records is made pursuant to 31 CFR Part 323. [Attachment 1] (12) Is a record maintained of each inspection or use of the individual's record? No specific record is maintained of each inspection or use of the individual's record. However, case files are developed as a result of inquiries which are retained for various predetermined periods of time.

(13) For each data bank, please indicate how the information is collected, whether it is solicited from the individual, from third persons, or from existing records.

Information is obtained from the request for purchase or redemption of registered securities which are submitted by banks or brokers on behalf of the individual.

(14) What officials in your agency are responsible for determining the accuracy of information in the data bank? What provisions are made, procedurally, for deleting information found to be inaccurate or inappropriate, either on the initiative of the agency or on motion of the individual?

Information received from the owner is considered accurate unless notification to the contrary is received from him. The operating personnel and unit heads are responsible for determining the accuracy of information in the data bank. An inquiry from a security owner may reveal an item of discrepancy that would be corrected upon verification. Standing clerical procedures are in effect for correcting inaccurate information.

(15) What other agencies have access to information or use of information in each data bank?

The Internal Revenue Service receives annually a computerized report on magnetic tape of the amount of interest received by each registered owner. In addition (upon special request) the IRS is furnished a report of the security holdings, if any, of an individual named by them in their request. Information can be provided to certain Federal and State government agencies who can show that they are entitled to receive the information. (16) What states and federal agencies may utilize the data in your computerized files by coding, interfacing and other devices relating to their own computers?

None, except IRS per question 15.

(17) What security devices and procedures are utilized to prevent: (a) unauthorized access to the data file; and (b) improper use of the information?

The building is a secured area with guards at all doors. Entrance is by official pass or visitor permit only. Visitors must sign in and out. Visitors not on official business must be escorted by the person whom they wish to see. (18) What formal or informal arrangement does the Treasury Department have with congressional committees for the authorizing and reviewing of new data banks and the clearance of new electronic or mechanized record-management techniques?

Contacts with congressional committees for the authorization and review of new data banks have been limited to Fiscal Year 71 budget hearings before the Appropriations Committee.

(19-A) Have any data programs or the development of other comprehensive records systems been discussed before other congressional committees by Treasury Department representatives?

No. The only congressional contacts are those noted in question 18, above.

(B) N/A.

(C) N/A.

BUREAU OF THE PUBLIC DEBT-PARKERSBURG OFFICE

B. SAVINGS BOND MICROFILM FILE

Date Response Prepared.-November 19, 1971

Class of File.-Other Files

File Control No.-03

File Medium.-Microfilm

National Security Classification.-None

(1) Describe briefly the major categories of data on individuals presently maintained and stored under auspices of the Treasury Department and its agencies and the approximate number of subject individuals covered in each category.

Response.-The basic element of the Parkersburg Office data bank consists of microfilm records, in random sequence, reflecting facsimile images of bonds issued and images of original bonds retired relating to Series E card bonds, savings notes and retirement plan bonds and Series E paper bonds retired after July 1, 1962. The maintenance of this data bank is required for registered securities to authenticate the entitlement of an individual and to furnish information in the adjudication of claims for relief of lost, stolen, mutilated or destroyed savings bonds.

Since these film images are in random sequence based on the report of sales and/or redemptions (stubs/bonds filmed daily upon receipt and film file maintained in Federal Reserve Bank and date of shipment order), they are supported by the following three distinctive magnetic tape records as an aid in locating individual holdings: (1) an alphabetic file for Series E cards bonds and savings notes issued (cross-reference file to the numeric file) which contains distinctive alphabetic coding patterns for the first named owners and reflects all securities of a specific coding pattern by denomination and bond serial number; (2) a numeric file maintained by series in denomination and bond serial number sequence which contains reference data required to locate specific film images; and (3) microfilm reference file for Retirement Plan Bonds issued and/or retired maintained in social security number sequence with distinctive alphabetic coding patterns of the first named

owners.

The number of bond purchasers included in this data bank are in the tens of millions and are represented by 1458 million bond sales made to Americans in the United States and throughout the Free World as of September 1971.

(2) Under what statutory and administrative authority was each data bank established and for what purpose? Please supply copies of pertinent federal statutes, regulations and memoranda on which this authority is based and by which it is implemented.

Response.-The storage of retired U.S. Savings Bonds and related report of sales (stubs), because of the volume, would present insurmountable problems in the storage, maintenance, and searching operations had they not been microfilmed and referenced on magnetic tape as described in Question No. 1. Through September 1971, these records would have amounted to a total of 2692 million pieces (1458 million Series E card bond sales (stubs), 1078 million retired Series E card bonds including notes, 149 thousand retirement plan bond sales (stubs), 119 thousand retirement plan bonds, and 156 million Series E paper bonds retired after July 1, 1962). (See 31 U.S.C. 757c).

In support of the acceptance of the microfilm records, we are attaching memoranda and authorities which endorse the measures that have been taken by the Bureau. (See Attachment A) [Omitted]

(3) Are Treasury Department controls, guidelines, or advice required by or offered to state officials and private individuals who either administer or who utilize this data-gathering program? Please supply copies of pertinent rules or advisory documents as issued by federal and state agencies.

Response. The Parkersburg Office is only a servicing organization and furnishes information to the Chicago Departmental Office to aid in the adjudication of claims made by individuals in their own right or by legal representatives.

(4) For each category and each conglomerate of data, indicate its present state of computerization or other mechanization for access and retrieval as well as for evaluation and analysis.

Response. The method of record keeping as described under the second paragraph in the response to Question No. 1 depicts a maximum capability of computerization and mechanization for the access and retrieval of data.

(5) Describe plans for further computerization or mechanization in each program.

Response.-None.

(6) In what instances would each system be utilized? By what officials and by what agencies?

Response. Our present system is utilized in the Bureau of the Public Debt as reflected in the response to Question No. 1 and by the law enforcement agencies consisting of the Federal Bureau of Investigation, the Secret Service, and the Internal Revenue Service as reflected in the response to Question No. 16.

(7) For each new data storage and processing program, please describe (a) the advantages; and (b) the extent to which it permits correlating, common storage and multi-faceted analysis of data on a scale not hitherto available.

Response.-There are no plans for new data storage and processing program. (8) What specific subject areas concerning an individual's background, personal life, personality and habits are noted in each data program?

Response.-An individual's background, personal life, personality and habits are not requisites to the Parkersburg Office data program.

The sole purpose of information in the data bank is to have available information relative to bond holdings for the establishment of ownership and adjudication of claims.

(9) Has the Treasury Department and its component agencies developed comprehensive guidelines governing maintenance of any or all the various data systems, access to them, review and disclosure of material in them, and distribution of data to other agencies? If so, please supply copies.

Response.-The Bureau of the Public Debt is cooperating with the U.S. Secret Service in a program designed to promptly inform the Secret Service of the loss or theft of Government securities and thereby aid in their recovery.

Under established procedures, the Parkersburg Office furnishes to the Secret Service data relating to the reporting of thefts of savings bonds or savings notes for inclusion in the NCIC (National Crime Information Center) file. The Parkersburg Office also furnishes data to the Internal Revenue Service for reporting interest paid on Series E Savings Bonds.

The following information reflected on NCIC magnetic tapes of outstanding theft caveats is furnished to the Secret Service for Series E paper bonds, Series E card bonds, and for savings notes; Series Code, Denomination (letter code), Bond serial number, Transfer year of caveat, Transfer month of caveat, Caveat batch number, Fiscal agent, Transfer year of issue, Transfer month of issue, Issue batch number, Issue date (month and year).

The following information is furnished to the Internal Revenue Service for tax purposes; Last two digits of report year, First four letters of payee surname, Social Security number, Payment amount, Name of payee, Street address, City, State, Zip Code.

(10-A) Is the subject individual or his representative notified of the fact that he is in the data bank?

Response.-No. At the time of purchase, the registered owner is aware that the bond is a registered security and, since replacement of a security is guaranteed in case of loss, theft or destruction, the maintenance of records to establish ownership is required.

(10-B) Is he allowed to review the data on record about him; to supplement his file; or to explain or rebut inaccurate material? Please describe the precise limitations on such rights for each restriction.

Response.-Yes. A person entitled, or his representative, may secure information relative to bond holdings from the Chicago Departmental Office in accordance with established statutes, regulations, etc. The desired information, however, is furnished to the Chicago Departmental Office by the Parkersburg Office in accordance with established procedures.

(11) What aspects of the recorded data are available to other persons? Who, specifically? For what purpose? By what authority?

Response. The Parkersburg Office is a service organization for the Chicago Departmental Office and all informational data released is solely for the purpose of adjudicating claims or furnishing information in accordance with regulations or established practices in the settlement of estates, tax liabilities, etc.

(12) Is a record maintained of each inspection or use of the individual's record? Response.-No. Not by the Parkersburg Office.

(13) For each data bank, please indicate how the information is collected, whether it is solicited from the individual, from third persons, or from existing records.

Response.-Approximately 31,000 authorized issuing and paying agents and Federal Reserve Banks and Branches report the sales and retirements of U.S. Savings Bonds, Savings Notes, and Retirement Plan Bonds through the Federal Reserve System. Upon receipt of the stubs representing the issuances and of the bonds representing retirements, the items are microfilmed and entered into the cross-reference tape records.

(14) What officials in your agency are responsible for determining the accuracy of information in the data bank? What provisions are made, procedurally, for deleting information found to be inaccurate or inappropriate, either on the initiative of the agency or on motion of the individual?

Response.-A committee was established on October 20, 1958, by the Commissioner to analyze and report on the accuracy of records for the punch card Series E savings bonds maintained on film and magnetic tape. With the passing of time this Committee expanded the scope of their activity to include the adequacy of records of paper bonds retired since July 1, 1962, savings notes and retirement plan bonds.