INFORMATIONAL MEMORANDUM:  R&D-96-071
     
TO:      All Reinsured Companies
         All Risk Management Field Offices
         FSA Headquarters, Program Delivery and Field Operations
              
FROM:    Tim B. Witt /s/TBW 11/8/96
         Acting Deputy Administrator
              
SUBJECT: Limited Access to Social Security and Employer Identification 
         Number Data
     
ISSUE:
     
Release of insureds' social security numbers (SSN) and employee
identification numbers (EIN)for specific purposes appropriate for
administering the Federal crop insurance program.
     
BACKGROUND:
     
The Risk Management Agency (RMA) has been asked to include SSN's and
EIN's in computer files for persons on Nonstandard Classification System
(NCS) listings or other producer classification listings and ineligible
producer files.  This information would be used for identification and
coverage determination purposes, and, for the first time, would be
provided to reinsured companies and local FSA offices.  At present, such
SSN/EIN information is not released.  With access to this information,
reinsured companies and FSA offices can more efficiently and accurately
determine those applicants/insureds who are assigned an NCS or
producer classification or who are ineligible for insurance.
     
The Privacy Act statement contained on each form used to collect
individual SSN/EIN data states, "The information furnished on this form
will be used by Federal agencies, FCIC employees, insurance companies,
and contractors who require such information in the performance of their
duties.  This information may be furnished to: FCIC contract agencies;
employees and loss adjusters; reinsured companies; other agencies within
the Department of Agriculture ...."   Additionally, the Federal Code of 
Regulations, 7CFR Sec. 400, Subpart Q (Collection and Storage of Social
Security Account Numbers and Employer Identification Numbers) states
under 400.406,  "The Manager, other officer, or employee of the FCIC or
authorized person (as defined in 400.402(e)) may have access to the
EIN's and SSN's obtained pursuant to 400.404 only for the purpose of
establishing and maintaining a system of records necessary for the
effective administration of the FCI Act in accordance with 400.404 of
this part.  These numbers may be used in administering the FCI Act." 
400.404 states  in part, "The SSN and EIN will be used by the FCIC, the
direct insurance companies, and the reinsured  companies in: ... 2)
collecting premiums; ... 4) establishing actuarial data on an individual
policyholder basis; and 5) determining eligibility for program
benefits."  400.408 and 409 describe the unauthorized disclosure of
SSN/EIN information and provides penalties for such disclosure. 
     
ACTION:
     
RMA will provide SSN/EIN's for producers classified under NCS or
producer classification listings or who are contained in ineligible
producer files.  Reinsured companies and FSA offices may download these
files solely for purposes of identifying applicant/insureds 1) affected
by the Nonstandard Classification System (NCS), 2) contained on
ineligible producer files, or 3) for other limited purposes related to
the administration of the crop insurance program (e.g., verification of
names on FCI-32 listings).  Reinsured companies and FSA personnel,
however, must adhere to the Privacy Act and 7CFR Part 400, Subpart Q
governing access,  use, and confidentiality of SSN's and EIN's, and
related information.  These requirements would preclude reinsured
companies and FSA from creating producer listings containing SSN/EIN
information to which the general public could obtain access (e.g.,
FCI-35 (NCS) Supplements).  Unauthorized disclosure of SSN/EIN's by any
person may subject that person, and the person soliciting the
unauthorized disclosure, to civil or criminal sanctions imposed under
various Federal statutes, including 26 U.S.C. 7613 5 U.S.C. 552a, and 42
U.S.C.  
     
All personnel who have access to and use this data containing SSN/EIN's
must be advised of and aware of the rules pertaining to the use of such
information.