[Federal Register: December 19, 2006 (Volume 71, Number 243)]
[Notices]               
[Page 75985-75986]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19de06-86]                         

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DEPARTMENT OF LABOR

Employment and Training Administration

 
Proposed Collection: Evaluation of State Implementation of 303(k) 
of the Social Security Act; Comment Request

ACTION: Notice.

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SUMMARY: The Department of Labor (DOL), as part of its continuing 
effort to reduce paperwork and respondent burden, conducts a pre-
clearance 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 State Unemployment Tax Avoidance 
(SUTA) Study Implementation Survey. A copy of the proposed information 
collection request (ICR) can be obtained by contacting the office 
listed below in the addressee section of this notice or by accessing: 
http://www.doleta.gov/Performance/guidance/OMBControlNumber.cfm.


DATES: Written comments must be submitted to the office listed in the 
addresses section below on or before February 30, 2007.

ADDRESSES: Kevin M. Culp, Room N5641, 200 Constitution Avenue, NW., 
Washington, DC 20210; telephone number: 202-693-3679 (this is not a 
toll-free number); internet address: culp.kevin@dol.gov; facsimile 
number: 202-693-2844.

SUPPLEMENTARY INFORMATION:

I. Background

    On August 9, 2004, President George W. Bush signed into law the 
SUTA Dumping Prevention Act of 2004 (Act), which amended Federal 
unemployment compensation law by adding section 303(k) to the Social 
Security Act (SSA). This Act established a minimum standard nationwide 
for curbing an unemployment compensation tax rate manipulation scheme 
known as SUTA Dumping. In addition, the Act required the Secretary of 
Labor (Secretary) to conduct a study of the states' implementation of 
the provisions of section 303(k) of the SSA, and to submit to the 
Congress a report on the findings of this study no later than July 15, 
2007. Specifically, the law states:

(1) STUDY--The Secretary of Labor shall conduct a study of the 
implementation of the provisions of section 303(k) of the Social 
Security Act (as added by subsection (a)) to assess the status and 
appropriateness of State actions to meet the requirements of such 
provisions.
(2) REPORT--Not later than July 15, 2007, the Secretary of Labor 
shall submit to the Congress a report that contains the findings of 
the study required by paragraph (1) and recommendations for any 
Congressional action that the Secretary considers necessary to 
improve the effectiveness of section 303(k) of the Social Security 
Act.

In order to comply with these provisions, the U.S. Department of Labor, 
Employment and Training Administration contracted with Coffey 
Communications, LLC, in collaboration with its subcontractor, the Urban 
Institute, to conduct the required study. In addition, an element was 
added to the study requiring that it look into the impact the Act had, 
if any, on state practice in regard to the Professional Employer 
Organization (PEO) industry and what impact, if any, the Act had on 
PEOs.
    The goals of the study are to:
     Identify state legislation, policy and procedures intended 
to mitigate the practice of SUTA dumping;
     Measure the use and effectiveness of state penalties 
intended to curb SUTA dumping;
     Analyze state law transfer of experience provisions 
regarding the entry of a client into a PEO relationship and the 
financial impact of such treatment both on the state UI trust funds and 
on the PEO industry;
     Compile resultant data and information necessary to allow 
the Secretary of Labor to report to Congress no later than July 15, 
2007, on the effectiveness of section 303(k) of the SSA.

The proposed survey represents the main instrument for collecting state 
data and experience on the states' implementation of section 303(k) of 
the SSA.

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 proposed survey will provide useful, policy relevant data and 
information required by the Administration, DOL, ETA, and state 
administrators to make appropriate decisions and judgments regarding 
the states' implementation of section 303(k) of the SSA. The 
information, gathered through this survey from all 50 states, the 
District of Columbia, the Virgin Islands, and Puerto Rico will provide 
the Secretary of Labor with the necessary information needed to file 
the required July 15, 2007, report to Congress. In addition, the 
knowledge gained regarding states' policy on the transfer of experience 
between client companies and PEO companies as they enter or leave a 
contractual relationship should prove beneficial in any future state 
and/or ETA discussions and legislative proposals regarding the PEO 
industry. ETA will also be able to use this information to determine 
what future SUTA dumping training, if any, must be provided to 
personnel within the State Workforce Agencies.
    Type of Review: New collection of information.
    Agency: Employment and Training Administration.
    Title: Evaluation of State Implementation of section 303(k) of the 
Social Security Act, SUTA Study Implementation Survey.
    OMB Number: 1205-0NEW.
    Recordkeeping: No additional record keeping. One time survey.
    Affected Public: State Government.

[[Page 75986]]

    Reference: Section 303(k) of the SSA.
    Total Respondents: 53.
    Estimated Total Burden Hours: 106.
    Total Burden Cost (capital/startup): 0.
    Total Burden Cost (operating/maintaining): 0.
    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: December 13, 2006.
Maria K. Flynn
Administrator, Office of Policy Development and Research.
 [FR Doc. E6-21544 Filed 12-18-06; 8:45 am]

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