[Federal Register Volume 65, Number 112 (Friday, June 9, 2000)]
[Notices]
[Pages 36726-36727]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-14682]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF LABOR

Employment and Training Administration


Proposed Collection; Comment Request

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Department of Labor, as part of its continuing effort to 
reduce paperwork and respondent burden conducts a preclearance 
consultation program to provide the general public and Federal agencies 
with an opportunity to comment on proposed and/or continuing 
collections of information in accordance with the Paperwork Reduction 
Act of 1995 (PRA95) [44 U.S.C. 3506(c)(2)(A)]. This program helps to 
ensure that requested data can be provided in the desired format, 
reporting burden (time and financial resources) is minimized, 
collection instruments are clearly understood, and the impact of 
collection requirements on respondents can be properly assessed. 
Currently, the Employment and Training Administration is soliciting 
comments concerning the proposed revision/extension for collection of 
the ETA 227 Report, Overpayment Detection and Recovery Activities. A 
copy of the proposed information collection request (ICR) can be 
obtained by contacting the office listed below in the addresses section 
of this notice.

DATES: Written comments must be submitted to the office listed in the 
addressee's section below on or before August 8, 2000.

ADDRESSES: Submit written comments to the Employment and Training 
Administration, Office of Workforce Security, 200 Constitution Avenue 
NW, Room S4231, Washington, DC 20010, Attention: Bob Whiting. Telephone 
number: 202-219-5340, ext. 182 (this is not a toll-free number). Fax: 
202-219-8506. E-mail: [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    Section 303(a)(1) of the Social Security Act requires a State's 
Unemployment Insurance (UI) law to include provisions for:

    ``Such methods of administration * * * as are found by the 
Secretary of Labor to be reasonably calculated to insure full 
payment of unemployment compensation when due * * *''

    Section 303(a)(5) of the Social Security Act further requires a 
State's UI law to include provisions for:

    ``Expenditure of all money withdrawn from an unemployment fund 
of such State, in the payment of unemployment compensation * * *''

    Section 3304(a)(4) of the Internal Revenue Code of 1954 provides 
that:

    ``all money withdrawn from the unemployment fund of the State 
shall be used solely in the payment of unemployment compensation * * 
*''

    The Secretary of Labor has interpreted the above sections of 
Federal law in Section 7511, Part V, ES Manual to further require a 
State's UI law to include provisions for such methods of administration 
as are, within reason, calculated (1) to detect benefits paid through 
error by the State Employment Security Agency (SESA) or through willful 
misrepresentation or error by the claimant or others, (2) to deter 
claimants from obtaining benefits through willful misrepresentation, 
and (3) to recover benefits overpaid. The ETA 227 is used to determine 
whether SESAs meet these requirements of the Secretary of Labor's 
interpretation of the Federal laws.
    The ETA-227 contains data on the number and amounts of fraud and 
nonfraud overpayments established, the methods by which overpayments 
were detected, the amounts and methods by which overpayments were 
collected, the amounts of overpayments waived and written off, the 
accounts receivable for overpayments outstanding, and data on criminal/
civil actions. These data are gathered by 53 SESAs and reported to the 
Department of Labor following the end of each calendar quarter. The 
overall effectiveness of SESAs' UI integrity efforts can be determined 
by examining and analyzing the data. These data are also used by SESAs 
as a management tool for effective UI program administration.

II. Review Focus

    The Department of Labor is particularly interested in comments 
which:
     evaluate whether the proposed collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility;
     evaluate the accuracy of the agency's estimate of the 
burden of the proposed collection of information, including the 
validity of the methodology and assumptions used;
     enhance the quality, utility, and clarity of the 
information to be collected; and
     minimize the burden of the collection of information on 
those who are to respond, including through the use of appropriate 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology, e.g., permitting 
electronic submissions of responses. III. Current Actions: The UI 
program pays approximately $20 billion in benefits annually. Although 
the overpayment rate is relatively low (less than one percent), high 
amounts of money are involved, and it is in the national interest to 
maintain the program's integrity. Therefore, we are proposing to extend 
the authorization to continue collecting data to measure the 
effectiveness of benefit payment controls in the SESAs. Several 
modifications have been made to the report format to improve the 
effectiveness of the collection vehicle, including additions and 
deletions of data cells:

Additions

     Overpayments established involving multi-claimant fraud 
schemes.
     Totals for controllable and uncontrollable under Section 
B, ``Overpayments Established--Methods of Detection''.
     Overpayments detected through the ``new hire'' system.
     Overpayments detected by ``special projects'' (new 
methodologies).
     Overpayments Recovered--Total.
     Overpayments recovered by offset of state income tax 
refunds.
     Overpayments recovered by other states.
     Penalty and interest collected for Federal programs.
     Overpayments collected for other states.

Deletions

     All columns in the section titled ``Reconciliation of 
Overpayment Activities'' that pertain to the number of cases. (Only 
dollar amounts will be reported in the future.)
     The following under-utilized lines in the section titled 
``Detection Activities': verification of low earnings; verification of 
return to work; quality control.
     The following lines also in the ``Detection'' section 
because states cannot exercise control over their incidence, and 
gathering data is of less value than that of other activities which 
have been added: employer protest of charges; tips and leads; other 
noncontrollable activities.

[[Page 36727]]

     Cells identifying nonfraud fictitious employer schemes.

Other Modifications

     The order of sections B and C have been reversed so that 
``Overpayments Established--Methods of Detection'' precedes ``Recovery/
Reconciliation''.
     In Section A ``Overpayments Established--Causes'', the 
line for administrative penalty has been removed from under the 
subheading ``Nonfraud'' so that it stands alone.
     In Section B ``Overpayments Established--Methods of 
Detection'', the lines have been reordered so all controllable methods 
are grouped under the appropriate heading.
     In Section C ``Recovery/Reconciliation'', the line 
formerly identified as ``Allowance for Doubtful Accounts'' has been 
redefined, and data will be reported as ``Receivables Removed at End of 
Report Period''.
    Type of Review: Revision.
    Agency: Employment and Training Administration.
    Title: Overpayment Detection and Recovery Activities.
    OMB Number: 1205-0173.
    Agency Number: ETA-227.
    Record keeping: State agencies are required to maintain all 
documentation supporting the information reported on the ETA-227 for 
three years following the end of each report period.
    Affected Public: State Government.
    Cite/Reference/Form/etc: Form.
    Total Respondents: 53 State agencies.
    Frequency: Quarterly.
    Total Responses: 212.
    Average Time per Response: 14 hours.
    Estimated Total Burden Hours: 2968.
    Total Burden Cost (operating/maintaining): Estimated at $76,396 
which is allowable cost under the administrative grants awarded to 
States by the Federal government. Additionally, there will be a one 
time cost of reprogramming the State systems at the cost of $20,758 
(annualized).
    Comments submitted in response to this comment request will be 
summarized and/or included in the request for Office of Management and 
Budget approval of the information collection request; they will also 
become a matter of public record.

    Dated: June 5, 2000.
Grace A. Kilbane,
Administrator, Office of Workforce Security.
[FR Doc. 00-14682 Filed 6-8-00; 8:45 am]
BILLING CODE 4510-30-P