Supporting Statement - Nutrition Standards Competitive Foods_6-13-13

NATIONAL SCHOOL LUNCH PROGRAM AND SCHOOL BREAKFAST PROGRAM: NUTRITION STANDARDS FOR ALL FOODS SOLD IN SCHOOL AS REQUIRED BY THE HEALTHY, HUNGER-FREE KIDS ACT OF 2010

SUPPORTING STATEMENT

OMB CLEARANCE NUMBER 0584-0576

Bramaramba Kowtha, Program Analyst

Food and Nutrition Service, USDA

Special Nutrition Programs

Child Nutrition Division

Program Analysis and Monitoring Branch

3101 Park Center Drive

Alexandria, VA 22302

PH: 703-605-4390

[email protected]

1. 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 is a new collection for which OMB has filed a comment under OMB control number 0584-0576. Once OMB approval is complete the Food and Nutrition Service (FNS) will merge the burden hours with OMB control number 0584-0006 titled, “7 CFR Part 210 National School Lunch Program,” expiration date 02/29/2016.

Section 208 of the Healthy, Hunger-Free Kids Act of 2010 (HHFKA), Public Law 111–296 (http://www.gpo.gov/fdsys/pkg/PLAW-111publ296/pdf/PLAW-111publ296.pdf) amended Section 10 of the Child Nutrition Act (CNA), 42 U.S.C. 1779, to give new authority to and require the Secretary of Agriculture to promulgate proposed regulations to establish science-based nutrition standards for all foods and beverages sold on the school campus at any time during the school day outside of the Federal school meal programs. On February 8, 2013 USDA published a proposed rule in the Federal Register (78 FR 9529). FNS is now issuing an Interim rule to establish the nutrition standards for all foods sold in school. The interim rule also implements Section 203 of the HHFKA which amended section 9(a) of the Richard B. Russell National School Lunch Act (NSLA), 42 U.S.C. 1758(a), by requiring that schools make potable water available to children at no charge in the place where lunches are served during the meal service.

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

The purpose of this information collection associated with rulemaking is to comply with the requirements of the HHFKA Public Law 111-296. The rule increases the recordkeeping burden for documenting compliance with the new standards for all foods sold in schools which will be evaluated during State Agency (SA) administrative reviews of School Food Authorities (SFAs). FNS would not be able to properly monitor SA and SFA compliance without this collection of information.

3. 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 committed to complying with the E-Government Act, 2002 to promote the use of the Internet and other information technologies to provide increased opportunities for citizen access to Government information and services, and for other purposes. There is no reporting burden for this collection; there is no information that will be collected electronically. The burden is for recordkeeping only.

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

There is no similar data collection available. Every effort has been made to avoid duplication. FNS has reviewed USDA reporting requirements, state administrative agency requirements. FNS solely administers and monitors the Child Nutrition Programs.

5. If the collection of information impacts small businesses or other small entities, describe any methods used to minimize burden.

Information being requested or required has been held to the minimum for the intended use. Although smaller SFAs will be involved in this information collection effort, they deliver the same program benefits and perform the same function as any other SFA. Thus, they maintain the same kinds of information. FNS estimates that up to 3% of the respondents are considered small entities.

6. 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.

The information is collected for the purpose of administering an ongoing program. If this information was not collected, or collected less frequently, FNS would not be able to properly monitor for compliance. This information collection allows a SA to identify findings of non-compliance by the SFA with the nutrition standards requirements for all foods sold at schools.

7. Circumstances that would cause an information collection to be conducted in a manner that is inconsistent with 5 CFR 1320.5:

• 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 no other special circumstances. The collection of information is conducted in a manner consistent with the guidelines in 5 CFR 1320.5.

8. If applicable, provide a copy and identify the date and page number of publication in the Federal Register of the agency's notice, 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.

• A 60-day notice was embedded in the Proposed Rule, “7 CFR parts 210 and 220 National School Lunch Program and School Breakfast Program: Nutrition Standards for All Foods Sold in School as Required by the Healthy, Hunger-Free Kids Act of 2010” published in the Federal Register at 78 FR ,No 27, P.9529 on February 8, 2013. USDA received a total of ~ 247,000 public comments on the proposed rule during the comment period February 8 – April 9, 2013. However, only 16 comments were specific to paperwork reduction. The concerns raised were the following: the proposed rule would add additional paperwork burden, increase administrative costs and reduce time needed to prepare quality meals; schools and LEAs need education and training to implement new standards and comply with regulations. FNS was also encouraged to be mindful of the budget and labor constraints SFAs already face, and to provide clear, concise guidance and technical assistance regarding recordkeeping requirements.

As the intention of proposed rule is to improve the health of the whole school environment, tracking nutrition standards will only help to improve health of children. Record keeping requirements are related to saving nutrition labels, product specifications and receipts. Many State agencies are required to track this information due to state specific regulations so there is no additional paperwork burden. Analysis of costs indicates administrative burden for schools is minimal. As per record keeping burden hours - it is spread over 100,000 schools and 20,000 school districts. As a result of this no changes are made in record keeping burden estimates in interim rule for schools and school districts.

Please note there is a minor adjustment in state agency burden. Provision 210.18(h)(7) requires SAs to ensure that the LEA complies with the nutrition standards for competitive foods and retains documentation demonstrating compliance. This compliance is monitored at the time of administrative reviews. As there is a change in the administrative review cycle from 5 years to 3 years, there is a slight increase in number of records and that change increases recordkeeping burden by 698 hours. This change is reflected in the burden tables below.

• 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 form, and on the data elements to be recorded, disclosed, or reported.

• FNS consults with Regional offices regarding any proposed changes as the result of legislative, regulatory or administrative changes. Regional offices are in contact with State agencies which provide feedback on FNS processes and procedures for the information collection.

9. Explain any decision to provide any payment or gift to respondents, other than remuneration of contractors or grantees.

No payment or gift will be provided to respondents.

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

The Department complies with the Privacy Act of 1974. No confidential information is associated with this information collection.

11. 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.

There are no questions of a sensitive nature included in this information collection.

12. Provide estimates of the hour burden of the collection of information. The statement should include:

• 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.

FNS is requesting an increase of 927,634 burden hours for recordkeeping to document compliance with the new nutrition standards. The estimated average number of respondents for this rule is 122,662 (57 State agencies, 20,858 school food authorities, and 101,747 schools). The following table reflects the estimated burden associated with the information collection requirements.

ESTIMATED ANNUAL BURDEN FOR 0584-NEW, 7 CFR PART 210 NATIONAL SCHOOL LUNCH PROGRAM AND SCHOOL BREAKFAST PROGRAM: NUTRITION STANDARDS FOR ALL FOODS SOLD IN SCHOOL

Recordkeeping
		Section	Estimated Number of Record-keepers	Records per Record-keeper	Average Annual Records	Average Burden per Record	Annual Burden Hours
SA shall ensure that the LEA complies with the nutrition standards for competitive foods and retains documentation demonstrating compliance. LEAs and SFAs shall be responsible for maintaining records documenting compliance with the competitive food standards. Organizations responsible for competitive food service at various venues in schools shall maintain records.		7 CFR 210.18(h)(7) 7 CFR 210.11(b)(3) 7 CFR 210.11(b)(3)	57 20,858 101,747	122 1 1	6,954 20,858 101,747	0.25 20 5	1,739 417,160 508,735
Total Recordkeeping for Proposed Rule			122,662	1.0562	129,559	7.1599	927,634

SUMMARY OF BURDEN (OMB #0584-NEW)
TOTAL NO. RECORDKEEPERS	122,662
AVERAGE NO. RECORDS PER RECORDKEEPER	1.056227
TOTAL ANNUAL RECORDS	129,559
AVERAGE HOURS PER RECORD	7.159927
DIFFERENCE (NEW BURDEN REQUESTED WITH PROPOSED RULE)	927,634

# Record keepers	# Records Per Record keeper	Total Annual Records	Hours Per Record	Total Annual New Burden
122,662	1.056227	129,559	7.159927	927,634

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

The estimate of respondent cost is based on the burden estimates and utilizes the U.S. Department of Labor, Bureau of Labor Statistics, May 2012 National Occupational and Wage Statistics, Occupational Group (25-0000) (http://www.bls.gov/oes/current/oes250000.htm). The hourly mean wage (for education-related occupations) for functions performed by State agency and local education agency staff are estimated at $24.62 per staff hour.

TOTAL COST TO PUBLIC = 927,633 hours X $24.62 per hour = $22,838,324.46

13. 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 items 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 is no start-up, operating or annual maintenance costs for this collection of information.

13. Provide estimates of annualized cost to the Federal government. Also, 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.

It is estimated that federal employees receiving an average General Schedule (GS) grade 12 step 6 wage based on the Washington DC-Northern Virginia locality area take approximately 10 hours (20 SAs x 0.5 hour each) to analyze administrative review data related to nutrition standards compliance for all foods during management evaluations of SAs and approximately 10 hours for analyzing compliance during participation on administrative reviews of SFAs: $41.85 x 20 = $837 (estimated annualized cost to federal government).

13. Explain the reasons for any program changes or adjustments reported in item13 or 14 of the OMB 83-1.

This is a new collection. This rulemaking will add 927,634 burden hours for recordkeeping in the OMB information collection inventory. The state agency burden between the Proposed Rule and Interim rule was adjusted to reflect a change in the review cycle from 5 years to 3 years. This resulted in an increase to recordkeeping burden by 698 hours from the Proposed rule.

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

This collection does not employ statistical methods and there are no plans to publish the

results of this collection for statistical use.

17. If seeking approval to not display the expiration date for OMB approval of

the information collection, explain the reasons that display would be inappropriate.

We are not seeking approval concerning the display of the expiration date.

18. Explain each exception to the certification statement identified in Item 19

"Certification for Paperwork Reduction Act."

There are no exceptions to the certification statement.