SUPPORTING STATEMENT

 

30 CFR 45.4, Independent Contractor Register

 

A.  Justification

 

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.

 

Independent contractors performing services or construction at mines are subject to the Federal Mine Safety and Health Act of 1977.  Independent contractors may vary in size, the type of work performed, and the time spent working at mine sites.  They may be engaged in every type of work from major new mine construction to minor repair.  They may do all their work at mines, or they may work at a mine only one time.  Independent contractors may also move from mine to mine or may even be present at several mines at once.

 

30 CFR, Part 45 sets forth information requirements and procedures for independent contractors to obtain an MSHA identification number and procedures for service of documents upon independent contractors. The purpose of this rule is to facilitate implementation of MSHA's enforcement policy of holding independent contractors responsible for violations committed by them and their employees.

 

30 CFR 45.4(b) requires the mine operator to maintain certain infor­ma­tion concerning each independent contractor at the mine.  The information required is the trade name, business address, and telephone number; a description and location at the mine where the work is to be performed; MSHA identification number, if any; and the contractor's business address of record.  This information is required to be provided to the mine operator by the independent contractor.  MSHA relies on this information for inspection and enforcement purposes and it must be made available by the mine operator to any MSHA inspector upon request.

 

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 information is used by MSHA during inspections to determine proper responsibility for compliance with safety and health standards, and to facilitate proper service of documents.  This information is reviewed by MSHA inspectors semi-annually at surface mines, and quarterly at underground mines.

 

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.

 

No improved information technology has been identified that would reduce the burden.  However, independent contractors may utilize electronic technology.

 

4.                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 Item 2 above.

 

Records pertain to specific independent contractors performing work at individual mines; there is neither similar nor duplicate information available.

 

5.             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 provisions of the Federal Mine Safety and Health Act of 1977 (Mine Act) and MSHA regulations and standards apply to all mining operations because accidents, injures, and illnesses can occur at any mine regardless of size.  Congress intended that the law be enforced at all  operations regardless of size and that information collection and recordkeeping requirements be consistent with efficient and effective enforcement of the Mine Act.  S. Rep. 181, 95th Cong., 1st Sess. 28 (1977).  However, Congress did recognize that small operations may face problems in complying with some of the provisions of the Mine Act.  Section 103(e) of the Mine Act directs the Secretary of Labor not to impose an unreasonable burden on small businesses in obtaining any information under the Act.  Accordingly, MSHA takes this into consideration when developing regulatory requirements, and when appropriate and consistent with assuring the health and safety of the nation's miners, different requirements for small and large mines exist.  See, for example, 30 CFR 49.3 and 50.11(b).  To provide distinct information collection requirements for small mines in the regulation at hand, however, would not promote the objectives of the Mine Act.

 

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.

 

30 CFR 45.4(b) requires the mine operator to maintain certain informa­tion about each independent contractor working at the mine.  Less frequent recordkeeping would mean that necessary information on some independent contractors performing work at mines would not be available to MSHA inspectors during their inspections.  This would not be consistent with the objectives of the Mine Act.

 

7.             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.

 

This information collection does not require the respondents/contractor to report information to MSHA.  30 CFR 45.4(b) requires the mine operator to maintain certain informa­tion about each independent contractor working at the mine, and to make the information available to any MSHA inspector upon request.  MSHA inspectors review the informa­tion during their semi-annual inspections of surface mines and their quarterly inspections of underground mines.

 

The information collection does not require respondents to prepare a written response to a collection of information or to submit any documents to the Agency.  MSHA inspectors review the required records during routine mine inspections.

 

The information collection does not specify a retention period for the required records.

 

The information collection is not conducted in conjunction with a statistical survey and does not require the use of a statistical data classification that has not been reviewed and approved by OMB.

 

The information collection does not include a pledge of confidentiality.  The records are maintained by mine operators and reviewed by MSHA inspectors during routine inspections.

 

The information collection does not require respondents to submit proprietary trade secret or other confidential information.

 

8.             If applicable, provide a copy and identify the data 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 periods.  There may be circumstances that may preclude consultation in a specific situation.  These circumstances should be explained.

 

MSHA published a 60-day preclearance FEDERAL REGISTER notice on (12/18/02, 67 FR No. 243, pages 77524-77525), soliciting public comments regarding the extension of this information collection. The comment period is open through 02/18/03.

 

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

 

MSHA has decided not to provide any payment or gift to respondents.

 

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

 

The records are maintained by mine operators and reviewed by MSHA inspectors during routine inspections.

 

11.          Provide additional justification for any questions of a sensitive nature, such as sexual behavior and 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 form whom the information is requested, and any steps to be taken to obtain their consent.

 

There are no questions of a sensitive nature.

 

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

 

!                Indicate the number of respondents, frequency of response, annual hour burden, and an explanation of how the burden was estimated. Unless directed to do so, agencies should not conduct special surveys to obtain information on which to base hour burden estimates.  Consultation with a sample (fewer than 10) of potential respondents is desirable.  If the hour burden on respondents is expected to vary widely because of differences in activity, size, or complexity, show the range of estimated hour burden, and explain the reasons for the variance.  Generally, estimates should not include burden hours for customary and usual business practices.

 

!                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.

 

!                Provide estimates of annualized cost to respondents for the hour burdens for collections of information, identifying and using appropriate wage rate categories.  The cost of contracting out or paying outside parties for information collection activities should not be included here.  Instead, this cost should be included in Item 13.

 

MSHA's records for FY 2001 show that there are approximately 2,407 coal mines and 12,885 metal and nonmetal (M/NM) mines for a total of 15,292 mine operators that may use the services of independent contractors.  MSHA estimates that each mine operator will maintain information on an average of 6.5 contractors each year.  MSHA inspection person­nel estimate that it takes approximately 8 minutes (0.1333 hour) for a clerical employee of the mine operator earning $19.58 (2001 wage rates) per hour at coal mines and $18.44 per hour at M/NM mines to maintain the required information.

 

  Annual Hour Burden:

 2,407 coal mines x 6.5 contractors x 0.1333 =  2,086 hours

12,885 M/NM mines x 6.5 contractors x 0.1333 = 11,164

 

  TOTAL = 13,250 hours

 

  Annual Cost of Hour Burden:

 2,086 hours x $19.58 (coal clerical salary)  =  $ 40,844

11,164 hours x $18.44 (M/NM clerical salary)  =   205,864

 

   TOTAL =  $246,708

 

(Increase due to the change in the number of mines and inclusion of the 2001 wage rates).

               

13.          Provide an estimate of the total annual cost burden to respondents or recordkeepers resulting from the collection of information.  (Do not include the cost of any hour burden shown in Items 12 and 14.)

 

!                The cost estimate 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.  The estimates should take into account costs associated with generating, maintaining, and disclosing or providing the information.  Include descriptions of methods used to estimate major cost factors including system and technology acquisition, expected useful life of capital equipment, the discount rate(s), and the time period over which costs will be incurred.  Capital and start-up costs include, among other items, preparations for collecting information such as purchasing computers and software; monitoring, sampling, drilling and testing equipment; and record storage facilities.

 

!                If cost estimates are expected to vary widely, agencies should present ranges of cost burdens and explain the reasons for the variance.  The cost of purchasing or contracting out information collection services should be a part of this cost burden estimate.  In developing cost burden estimates, agencies may consult with a sample of respondents (fewer than 10), utilize the 60-day pre-OMB submission public comment process and use existing economic or regulatory impact analysis associated with the rulemaking containing the information collection, as appropriate.

 

!                Generally, estimates should not include purchases of equipment or services, or portions thereof, made: (1) prior to October 1, 1995, (2) to achieve regulatory compliance with requirements not associated with the information collection, (3) for reasons other than to provide information or keep records for the government, or (4) as part of customary and usual business or private practices.

 

MSHA expects that the cost incurred by contractors to provide the information required by 30 CFR 45.4(a) to mine operators will be passed on to the mine operators.  MSHA estimates that it will take an employee of the contractor about 5 minutes (0.0833 hour) to provide the required information.  These employees earn typical miner’s wages of $28.07 per hour (2001 wages) at coal mines and $19.81 per hour at M/NM mines.  It is a customary and usual business practice for independent contractors to provide some of the required informa­tion (trade name, business address, and telephone number) to mine operators.

 

  Annual Hour Burden:

 2,407 coal mines x 6.5 contractors x 0.0833 =  1,303 hours

12,885 M/NM mines x 6.5 contractors x 0.0833 =  6,977 hours

 

  TOTAL =  8,280 hours

 

  Annual Cost of Hour Burden:

 1,303 hours x $28.07 (coal miner salary)  =  $ 36,575

 6,977 hours x $19.81 (M/NM miner salary)  =   138,214

 

TOTAL =  $174,789

 

 

 

14.          Provide estimates of annualized cost to the Federal government.  Also, provide a description of the method used to estimate cost, which should include quantification of hours, operational expenses (such as equipment, overhead, printing, and support staff), and any other expense that would not have been incurred without this collection of information.  Agencies also may aggregate cost estimates from Items 12, 13, and 14 in a single table.

 

No Federal inspection costs have been associated specifically for this information collection.  The examination of these records is just one aspect of a complete inspection.  Complete inspections are required under Section 103(a) of the Mine Act and are required 4 four times a year for underground mines and twice a year for surface operations.

 

15.          Explain the reasons for any program changes or adjustments reporting in Items 13 or 14 of the OMB Form 83-I.

 

Respondents:  There has been an increase of 1,057 respondents (from 14,235 to 15,292).  This is due to the number of mines increasing.

 

Responses:  There has been an increase of 6,870 responses (from 92,528 to 99,398).  Again, this is due to an increase in the number of mines.

 

Hours:  There has been an increase of 916 hours (from 12,334 to 13,250).  The average number of contractors that the mine operator will maintain information on and the time necessary to maintain this information has remained unchanged from the last report; therefore, this increase is due to the number of mines increasing.

 

There has been a decrease of $25K (from $200K to $175K).  On the last report, the burden cost was calculated using one set number of mines (14,235) and one wage rate ($26/hr).  Under this report, the number of mines and wage rates were broken out to reflect those that apply to Coal and those that apply to Metal/Nonmetal.  There were a greater number of M/NM mines (wage rate - $19.81) than CMSH mines (wage rate of $28.07) in which costs were calculated.  Thus, resulting in a cost decrease.

 

16.          For collections of information whose results will be published, outline plans for tabulation, and publication.  Address any complex analytical techniques that will be used.  Provide the time schedule for the entire project, including beginning and ending dates of the collection of information, completion of report, publication dates, and other actions.

 

There are no plans to publish the results of this information collection.

 

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.

 

MSHA is not seeking approval to not display the expiration date for OMB approval of this information collection.

 

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

 

There are no certification exceptions identified with this information collection.