021113 Final - Justification statement for OMB 0584-0446

Explain the circumstances that make the collection of information necessary. Identify any legal or administrative requirements that necessitate the collection. Attach a copy of the appropriate section of each statute and regulation mandating or authorizing the collection of information.

This statement supports the request for a revision of a currently approved information collection related to Federal claims collection methods for Supplemental Nutrition Assistance Program (SNAP) delinquent recipient claims. Section 13(b) of the Food and Nutrition Act of 2008 (The Act) and Supplemental Nutrition Assistance Program (SNAP) regulations at 7 CFR 273.18 require State agencies to refer delinquent debtors for SNAP benefit over-issuance to the U.S. Department of the Treasury for collection. The Debt Collection Improvement Act of 1996, 31 U.S.C. 3701, et seq., requires these debts to be referred to Treasury for collection when they are 180 days or more delinquent. Through the Treasury Offset Program (TOP), 31 CFR Part 285, payments such as Federal income tax refunds, Federal salaries and other Federal payments payable to these delinquent debtors will be offset and the amount applied to the delinquent debt. TOP places a reporting burden on State agencies and Individuals/Households (former SNAP recipients) who owe delinquent debts.

Purpose and Use of the Information

Indicate how, by whom, and for what purpose the information is to be used. Except for a new collection, indicate how the agency has actually used the information received from the current collection.

This information will be used by:

Individuals or households to obtain due process before debts are referred to TOP for offset.
State agencies to provide due process to individuals/households; to add and maintain debts in TOP; to request addresses; and, to certify to Treasury the accuracy and legality of debts that are submitted to TOP.
FNS to forward State agency files to Treasury for action and to provide Federal-level due process, as appropriate.

SNAP regulations at 7 CFR 273.18 require that State agencies establish, collect and efficiently manage SNAP recipient claims. Paragraph 7 CFR 273.18(n) requires State agencies to submit debts to TOP when they are 180 days delinquent. The burdens associated with establishing claims (demand letters) and for reporting activity with the FNS-209 are already approved under OMB burden numbers 0584-0492, expiration date 9/30/2014, and 0584-0069, expiration date 09/30/2015, respectively.

Use of Information Technology and Burden Reduction

Describe whether, and to what extent, the collection of information involves the use of automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g. permitting electronic submission of responses, and the basis for the decision for adopting this means of collection. Also describe any consideration of using information technology to reduce burden.

FNS is required to comply with the E-Government Act of 2002. State agencies have the authority to use information technology that best suits the needs of their individual and possibly unique systems of operations to comply with this information collection. Virtually every State agency employs an automated system to maintain recipient claims activity and the referral and maintenance of debts subject to TOP.

Automated data processing is used extensively for the collection methods. Electronic data transmission via desktop and from mainframe is used to minimize State agency and Federal resources needed for TOP collection methods.

Efforts to Identify Duplication and Use of Similar Information

Describe efforts to identify duplication. Show specifically why any similar information already available cannot be used or modified for use for the purposes described in Question 2.

There are no similar data collection efforts available.

Impacts Small Business or Other Small Entities

If the collection of information impacts small businesses or other small entities (Item 5 of OMB Form 83-I), describe any methods used to minimize burden.

The information collected is limited to data necessary to comply with statutory requirements and to protect Program integrity. This information collection does not affect small businesses or other small entities.

Consequences of Collecting Information Less Frequently

Describe the consequence to Federal program or policy activities if the collection is not conducted, or is conducted less frequently, as well as any technical or legal obstacles to reducing burden.

Information for TOP associated with due process is collected once per delinquent debt when it is determined that the debt is to be referred to TOP. If information were collected less frequently, compliance with the DCIA would not be possible and Departmental participation in TOP would be jeopardized.

Additionally, Treasury requires that debts be maintained while in TOP. If debts are not maintained, the Federal could lose out on offsets or debtors could be over collected.

Special Circumstances Relating to the Guideline of 5 CFR 1320.5

Explain any special circumstances that would cause an information collection to be conducted in a manner:

requiring respondents to report information to the agency more often than

quarterly;

requiring respondents to prepare a written response to a collection of information in fewer than 30 days after receipt of it;
requiring respondents to submit more than an original and two copies of any document;
requiring respondents to retain records, other than health, medical, government contract, grant-in-aid, or tax records for more than three years;

in connection with a statistical survey, that is not designed to produce valid and reliable results that can be generalized to the universe of study;

requiring the use of a statistical data classification that has not been reviewed and approved by OMB; that includes a pledge of confidentiality that is not supported by authority established in statute or regulation, that is not supported by disclosure and data security policies that are consistent with the pledge, or which unnecessarily impedes sharing of data with other agencies for compatible confidential use; or
requiring respondents to submit proprietary trade secret, or other confidential

information unless the agency can demonstrate that it has instituted procedures to protect the information's confidentiality to the extent permitted by law.

There are weekly reporting requirements required by Treasury for debts in TOP. There are no other special circumstances that require information collection inconsistent with 5 CFR 1320.6.

Comments in Response to the Federal Register Notice and Efforts to Consult Outside Agency

If applicable, provide a copy and identify the date and page number of publication in the Federal Register of the agency's notice, required by 5 CFR 1320.8 (d), soliciting comments on the information collection prior to submission to OMB. Summarize public comments received in response to that notice and describe actions taken by the agency in response to these comments. Specifically address comments received on cost and hour burden. Describe efforts to consult with persons outside the agency to obtain their views on the availability of data, frequency of collection, the clarity of instructions and recordkeeping, disclosure, or reporting format (if any), and on the data elements to be recorded, disclosed, or reported. Consultation with representatives of those from whom information is to be obtained or those who must compile records should occur at least once every 3 years even if the collection of information activity is the same as in prior years. There may be circumstances that may preclude consultation in a specific situation. These circumstances should be explained.

The 60-day Federal Register Notice was published on December 19, 2012 (77 FR 75117). We received no comments on the proposed information collection.

Explanation of Any Payment or Gift to Respondents

Explain any decision to provide any payment or gift to respondents, other than

remuneration of contractors or grantees.

No payments or gifts to respondents are provided under this information collection.

Assurance of Confidentiality Provided to Respondents

Describe any assurance of confidentiality provided to respondents and the basis for the assurance in statute, regulation, or agency policy.

Section 11 (e)(8) of the Act and implementing regulations at 272.1 limit the use or disclosure of information obtained from applicant households to persons directly connected with either the administration or safeguarding the integrity of SNAP. Additionally, the safeguard provision in IRS Publication 1075 and the Privacy Act of 1974 apply to information used in the TOP process.

The notice of delinquency contains personal identifying information. Therefore, the Food and Nutrition Service published a Privacy Act system of records notice (SORN) entitled Claims Against Food Stamp Recipients—USDA/FNS-3. A revised SORN was published on March 30, 2004 in the Federal Register Volume 69 page 16513 to specify the uses to be made of the information in this collection.

Justification for Sensitive Questions

Provide additional justification for any questions of a sensitive nature, such as sexual behavior or attitudes, religious beliefs, and other matters that are commonly considered private. This justification should include the reasons why the agency considers the questions necessary, the specific uses to be made of the information, the explanation to be given to persons from whom the information is requested, and any steps to be taken to obtain their consent.

This information collection does not ask any questions of a sensitive nature.

Estimates of Hour Burden Including Annualized Hourly Costs

Provide estimates of the hour burden of the collection of information. Indicate the number of respondents, frequency of response, annual hour burden, and an explanation of how the burden was estimated.

We are basing our estimate on an average of the number of records for claims the States sent to TOP for calendar years 2009, 2010 and 2011.

A) Indicate the number of respondents, frequency of response, annual hour burden, and an explanation of how the burden was estimated. If this request for approval covers more than one form, provide separate hour burden estimates for each form and aggregate the hour burdens in Item 13 of OMB Form 83-I.

Table A. 12.1 Estimates of Hour Reporting Burden for Individuals or Households:

Reporting Burden Per Activity	(b) Form Number	(c) Number of Respondents	(d) Number of Responses Per Respondent	(e) Estimated Total Annual Responses (cXd)	(f) Hours Per Response	(g) Total Burden Hours (eXf)
Reading State issued notice	N/A	240,901	1	240,901	.0835	20,115.233
Reading FNS issued letter to Federal employees	N/A	3,000	1	3,000	.0835	250.5
Phone inquiries and informal appeals for State notice	N/A	16,863	1	16,863	.25	4,215.75
Phone Inquires and informal appeals for FNS letter	N/A	900	1	900	.25	225
Formal appeals to State	N/A	1,445	1	1,445	.5	722.5
Formal appeals to FNS	N/A	20	1	20	.5	10
Summary of Reporting Burden		240,901 I/H counted once	1.09	263,129		25,538.98

Table A. 12.2 Estimates of Hour Burden Reporting for State Agencies:

Reporting Burden Per Activity	(b) Form Number	(c) Number of Respondents	(d) Number of Responses Per Respondent	(e) Estimated Total Annual Responses (cXd)	(f) Hours Per Response	(g) Total Burden Hours (eXf)
State agency notice production	N/A	53	4,545.3019	240,901	.0167	4,023.047
Responding to phone inquiries and informal appeals for State notice	N/A	53	318.169811	16,863	.25	4,215.75
Responding to formal appeals to State	N/A	53	27.264151	1,445	.5	722.5
Providing documents for formal appeals to FNS	N/A	53	0.3773584	20	.5	10
Submit yearly certification letter	N/A	53	1	53	.5	26.5
System accountability file	N/A	53	1	53	11.5	609.5
Address file	N/A	53	8	424	1.6346	693.0704
Match/No match report	N/A	53	8	424	6.5	2,756
Testing New system	N/A	5	1	5	7	35
State agency profile	N/A	53	1	53	0.25	13.25
Weekly Files	N/A	53	52	2,756	1.5	4,134
Weekly files –Post data	N/A	53	52	2,756	1.5	4,134
Summary of Reporting Burden		53 States counted once		265,753		21,372.61

The current reporting burden for individuals/households and State governments is 253,724 respondents and 48,715 hours. The proposed reporting burden, totaled from Tables A.12.1 and A.12.2, is 240,954 respondents and 46,912 hours. This reduction of -1,803 reporting hours is an adjustment due to fewer 60-day notices being mailed by States and acted on by individuals/households. TOP places a recordkeeping burden on State governments which is contained in the following Table A. 12.3. There is no recordkeeping burden for individuals and households.

Table A.12.3. Recordkeeping for State Agencies:

Recordkeeping Burden Per

Activity

(b)

Form

Number

(c)

Number of

Respondents

(d)

Number of Responses Per Respondent

(e)

Estimated Total Annual Responses

(cXd)

(f)

Hours Per Response

(g)

Total Burden Hours

(eXf)

Weekly Files

N/A

2,756

0.25

689

Summary of Recordkeeping Burden

States counted once

2,756

689

The current recordkeeping burden is based on 53 respondents and 689 burden hours. The proposed burden is for 53 respondents and 689 hours. There is no change in the recordkeeping burden for this collection.

B) Provide estimates of annualized cost to respondents for the hour burdens for collections of information, identifying and using appropriate wage rate categories.

Tables A.12.4a and A.12.4b Estimates of Annualized Cost to Respondents.

Affected Public	Est. No. of Respondents	No. of Responses per Respondent	Total Annual Responses	Est. total Hours per Response	Total burden hours	Hourly Wage	Total Cost to Respondent
Individuals & Households - Reporting	240,901	1.09	263,129	.0970587	25,538.98	$16.24	$414,753.04
Individuals & Households - Recordkeeping	0	0	0	0	0	0	$0

Affected Public

Est. No.

of Respondents

No. of Responses per Respondent

Total Annual Responses

Est. total Hours per Response

Total burden hours

Hourly Wage

Total Cost to Respondent

SA Reporting

265,753

21,372.61

$8.12

$173,545.59

SA Recordkeeping

2,756

0.25

689

$8.12

$5,594.68

The cost to the public is based on $16.24 per hour. To estimate public cost, FNS consulted with the U.S. Department of Labor’s May 2011 Occupational and Wage statistics – 43-30111 Bill and Account Collectors (http://www.bls.gov/oes/current/oes433011.htm). The rate to State agencies after 50 percent reimbursement by FNS is $8.12. Based on these figures the total annual cost to respondents is $593,893.31. The current annual cost burden is $580,156.92.

Estimates of Other Total Annual Cost Burden to Respondents or Record Keepers

Provide estimates of the total annual cost burden to respondents or record keepers resulting from the collection of information, (do not include the cost of any hour burden shown in questions 12 and 14). The cost estimates should be split into two components: (a) a total capital and start-up cost component annualized over its expected useful life; and (b) a total operation and maintenance and purchase of services component.

There are no capital, start-up and/or annualized maintenance cost associated with this burden.

Annualized Cost to the Federal Government

Provide estimates of annualized cost to the Federal government. Provide a description of the method used to estimate cost and any other expense that would not have been incurred without this collection of information.

The annual cost to the Federal Government to collect and use the data for TOP is $679,140.27. This total includes an estimated $500,000 for contracted computer services, which would not have been incurred without this collection, and an additional $179,140.27 for the Federal share of State agencies’ burden for reporting and recordkeeping.

Explanation of Program Changes or Adjustments

Explain the reasons for any program changes or adjustments reported in Items 13 or 14 of the OMB Form 83-1.

This is a revision of a currently approved information collection. There have been minimal changes in the operation of TOP. This reduction of burden hours by -1,803 is an adjustment due to fewer 60-day notices being mailed by States and acted on by individuals/households.

Plans for Tabulation and Publication and Project Time Schedule

For collections of information whose results are planned to be published, outline plans for tabulation and publication.

There is no plan to publish the data.

Reason(s) Display of OMB Expiration is Inappropriate

If seeking approval to not display the expiration date for OMB approval of the information collection, explain the reasons that display would be inappropriate.

There are no forms associated with this information collection. While the content of the notice is mandated by Treasury, it does not mandate a format. The address requests and weekly files are submitted electronically as required by Treasury. The Agency does display the expiration date for OMB approval of the information collection for all the instruments it does use.

Exceptions to the Certification for Paperwork Reduction Act Submission

Explain each exception to the certification statement identified in Item 19 of the OMB 83-I “Certification for Paperwork Reduction Act."

This information collection conforms to the requirements of 5 CFR 1320.9. There are no exceptions to the certification statement.

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File Title	Billing Code: 3410-30-U
Author	USDA
File Modified	0000-00-00
File Created	2021-01-29