SECURITIES AND EXCHANGE COMMISSION [Release No. PA-26 ; File No. S7-13-99] Privacy Act of 1974: Establishment of Two Systems of Records: Disgorgement and Penalties Tracking System (SEC- 47) and Fitness Center Membership, Payment, and Fitness Records (SEC-48) AGENCY: Securities and Exchange Commission ACTION: Notice of the establishment of two systems of records. SUMMARY: In accordance with the requirements of the Privacy Act of 1974, as amended, 5 U.S.C. 552a, the Securities and Exchange Commission gives notice of the establishment of two new Privacy Act systems of records: Disgorgement and Penalties Tracking System (SEC-47) and Fitness Center Membership, Payment, and Fitness Records (SEC-48). DATES: The proposed systems will become effective [40 days after publication in the Federal Register], unless further notice is given. The Commission will publish a new notice if the effective date is delayed to review comments, or if changes are made based on comments received. To be assured of consideration, comments must be received on or before [30 days after publication in the Federal Register]. ADDRESSES: Persons wishing to submit comments should file three (3) copies with Jonathan G. Katz, Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Mail Stop 0609, Washington, DC 20549-0609. Reference should be made to File S7-13-99. Copies of the comments will be available for public inspection and copying at the Commission's Public Reference Room, 450 Fifth Street, NW, Washington, DC 20549. FOR FURTHER INFORMATION CONTACT: Betty Lopez, Privacy Act Officer (202) 942-4327, Office of Filings and Information Services, Securities and Exchange Commission, Operations Center, 6432 General Green Way, Mail Stop O-5, Alexandria, VA 22312-2413. SUPPLEMENTARY INFORMATION: The Securities and Exchange Commission (“Commission„ or “SEC„) gives notice of the establishment of two systems of records entitled Disgorgement and Penalties Tracking System (SEC-47) and Fitness Center Membership, Payment, and Fitness Records (SEC-48). The SEC is establishing SEC-47 to facilitate SEC staff tracking of the repayment of disgorgement and penalties imposed on entities and individuals who have been determined to be violators of the provisions of the federal securities laws in SEC-initiated civil actions and administrative proceedings. The Commission's staff uses the records for case administration and collections. The system also is used to provide status reports to the Congress and the Department of the Treasury, and for responding to requests for information filed under the Freedom of Information Act. The SEC is establishing SEC-48 in order to maintain payment and fitness information needed for operating the SEC Fitness Center. The SEC established the Fitness Center to provide fitness facilities to members of the Commission's staff. Members of the Commission's staff oversee the Fitness Center and have access to SEC-48 records in order to perform their official Fitness Center duties. The systems of records reports, as required by 5 U.S.C. 552a(r) of the Privacy Act, have been submitted to the Committee on Government Affairs of the Senate, and the Office of Management and Budget, pursuant to Appendix I to OMB Circular A-130, "Federal Agency Responsibilities for Maintaining Records About Individuals," as amended on February 20, 1996 (61 FR 6428, 6435). Accordingly, the Commission is adding the following systems of records. SEC-47 System Name: Disgorgement and Penalties Tracking System. System Location: Securities and Exchange Commission, Office of the Secretary, 450 Fifth Street, NW, Mail Stop 0609, Washington, DC 20549-0609. Categories of Individuals Covered by the System: Individuals or entities that have been ordered to pay disgorgement and/or monetary penalties in SEC injunctive actions and administrative proceedings. Categories of Records in the System: Information on individuals or entities from whom the Commission is seeking or has obtained an order to pay disgorgement and/or monetary penalties, including the individual's or entity's name; the dates the Commission authorized, instituted, and/or settled an action; the responsible Commission staff; the internal case tracking number; the date the judgment or administrative order was entered; the amount of disgorgement and/or monetary penalties to be paid; the payment due date for disgorgement and/or monetary penalties; the date and amount of payments; the amount of disgorgement waived; and the status of debt collection efforts. Authority for Maintenance of the System: 15 U.S.C. 77h-1, 77t, 77x, 78u, 78ff, 79z-3, 80a-9, 80a-41, 80a-48, 80b-3, and 80b-9. Purpose: The system is being initiated to enable the Commission's staff to track the collection of disgorgement and monetary penalties arising out of SEC-initiated civil actions and administrative proceedings to enforce the federal securities laws. Routine Uses of Records Maintained in the System, Including Categories of Users and the Purposes of Such Uses: In addition to the conditions for disclosure specified at 5 U.S.C. 552a(b), the SEC's staff may use these records and the information contained in the records routinely, as provided at 5 U.S.C. 552a(b)(3), as follows: (1) To provide information to the Department of the Treasury, on a quarterly and annual basis, on the Commission's monetary penalty receivables; (2) To provide information to the Department of the Treasury and other federal agencies while assisting in the collection of past due disgorgement and/or monetary penalties; and (3) To provide information to persons, as appropriate, while assisting in the collection of past due disgorgements and/or monetary penalties. Policies and Practices for Storing, Retrieving, Accessing, Retaining, and Disposing of Records in the System: Storage: Records are maintained electronically and on paper. Retrievability: Records may be retrieved electronically by the internal case tracking number, the case name, and the individual's or entity's name. Paper records may be retrieved by the internal case tracking number. Safeguards: Paper records are kept in locked file cabinets. Electronic records can be retrieved only by authorized persons using appropriate passwords. Retention and Disposal: Paper records and computer database records are maintained until matter is closed plus 25 years. System Manager and Address: Secretary, Office of the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Mail Stop 0609, Washington, DC 20549-0609. Notification Procedure: All requests to determine whether this system of records contains a record pertaining to the requesting individual or entity may be directed to the Privacy Act Officer, Securities and Exchange Commission, Operations Center, 6432 General Green Way, Mail Stop O-5, Alexandria, VA 22312-2413. Records Access Procedures: Persons wishing to obtain information on the procedures for gaining access to or contesting the contents of these records may contact the Privacy Act Officer, Securities and Exchange Commission, Operations Center, 6432 General Green Way, Mail Stop O-5, Alexandria, VA 22312-2413. Contesting Record Procedures: See record access procedures above. Record Source Categories: Information is provided by Commission staff, and is extracted from Commission memoranda, Commission releases, judgments, and administrative orders. Additional information regarding the status of payments is provided in the form of copies of checks and/or money orders and from the Department of the Treasury's debt collection referral program. EXEMPTIONS CLAIMED FOR THE SYSTEM: None. SEC-48 System Name: Fitness Center Membership, Payment, and Fitness Records. System Location: Securities and Exchange Commission, Fitness Center, 450 Fifth Street, NW, Washington, DC 20549. Categories of Individuals Covered by the System: Members of the SEC's staff who have become members of the Fitness Center. Categories of Records in the System: Membership applications, fee and payment information (including electronic debit information), and fitness progress charts. Authority for Maintenance of the System: 5 U.S.C. 7901, et seq. Purpose: The system was initiated to enable SEC Fitness Center staff to track Fitness Center membership, fee payments, and the physical fitness of members. Routine Uses of Records Maintained in the System, Including Categories of Users and the Purposes of Such Uses: No routine use disclosures have been established for these records. The records and information obtained in these records will not be disclosed outside the SEC, unless mandated by law. See the statutory conditions of disclosure at 5 U.S.C. 552a(b). Policies and Practices for Storing, Retrieving, Accessing, Retaining, and Disposing of Records in the System: Storage: Records are maintained electronically and on paper. Retrievability: Records are retrieved by the individual's name or membership number. Safeguards: Paper records are kept in locked file cabinets. Electronic records can be retrieved only by authorized persons using appropriate passwords. Retention and Disposal: Records are maintained for as long as an individual is a member of the Fitness Center plus six months. System Manager(s) and Address: Associate Executive Director, Office of Administrative and Personnel Management, Securities and Exchange Commission, Operations Center, 6432 General Green Way, Mail Stop O-1, Alexandria, VA 22312-2413. Notification Procedure: All requests to determine whether this system of records contains a record pertaining to the requesting individual or entity may be directed to the Privacy Act Officer, Securities and Exchange Commission, Operations Center, 6432 General Green Way, Mail Stop O-5, Alexandria, VA 22312-2413. Records Access Procedures: Persons wishing to obtain information on the procedures for gaining access to or contesting the contents of these records may contact the Privacy Act Officer, Securities and Exchange Commission, Operations Center, 6432 General Green Way, Mail Stop O-5, Alexandria, VA 22312-2413. Contesting Record Procedures: See record access procedures above. Record Source Categories: All information is provided by Fitness Center members. EXEMPTIONS CLAIMED FOR THE SYSTEM: None. By the Commission. Jonathan G. Katz Secretary April 14, 1999