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1 1 (May 26, 2021)

handle is hein.crs/govedla0001 and id is 1 raw text is: May 26, 2021 The Paperwork Reduction Act and Federal Collections of Information: A Brief Overview Congress enacted the Paperwork Reduction Act (PRA) in 1980 and reauthorized the law in 1995 (codified at 44 U.S.C. §§3501-3521) primarily to addres s a concern that the federal government was requiring businesses, individuals, and other entities to spend too much time filling out paperwork at the behest of federal agencies. The PRA contemplated a centralized systemfor controlling and minimizing the amount ofinformation that federal agencies collect while considering the public benefit and utility of the information. To this end, the PRA requires agencies to justify collecting information fromthe public by establishing the need andintended use of the information, estimating the p aperworkburden to result fromthe information collection, and providing public input on each proposed collection. The PRA also created the Office of Information and Regulatory Affairs (OIRA) within the Office of Management and Budget (OMB) primarily to implement government-wide efforts to managethe federal paperworkburden. This In Focus provides an overview of the information collection aspects of the PRA, including OMB and agency responsibilities for managing p aperwork burden. Other elements of the PRA, including information resources management and statisticalpolicy, are not coveredhere. What Is the Federal Paperwork Burden? Agencies collect information fromthe public under a wide v ariety of circums tances-for example, through taxforms, the decennial census, applications for government benefits, efforts to evaluate programs, and reporting requirements that informagencies on industry's compliance with regulations. The PRA requires agencies, when collecting information, to estimate the paperwork burden associated with each collection. Theburdenis generally considered to be a functionof the number ofrespondents, the frequency of response, and the time required to provide the information. The burden is generally represented in hours (often referred to as burdenhours). Althoughinformation collections are oftencriticalto the workof federal agencies, they can impose a substantialburden on the public. Paperwork Reduction Act Overview To achieve its objective of balancing the federal paperwork burden with benefits ofinformation, the PRA tasked OMB with reviewing and approving agencies' information collections. As described in more detailbelow, agencies must receive approvalfromOlRA priorto conducting an information collection. Upon approvalof each information collection request (ICR), an OMBcontrolnumber is assigned and must be displayed on the collection. Each OMB approval may last for a period of up to three years. OMB is also required to report annually to Congress on major activities under the PRA. OMBfulfills this requirement by issuing an annual information collection budget' (ICB). ICBs contain information about the current paperworkburden, efforts to reduce the burden, violations of the act, and improvements in the use ofinformation. Scope of the PRA The scope of the PRA is broad: It applies to almost all agencies and to most agency informationcollections, including collections that are voluntary. The PRA's requirements apply to almost allexecutive branch agencies, including statutorily designated independent regulatory agencies, which are generally excluded from regulatory oversight and controlby the President or OMB. Specifically, the PRA defines agency as any executive department, military department Government corporation, Government controlled corporation, or other establishment in the executive branch of the Government (includingtheExecutive Office of the President), or any independent regulatory agency. The following agencies and entities are exempted: the Government Accountability Office; the Federal Election Commis sion; the governments of the District of Columbia and the territories and possessions of the United States; and government-owned, contractor-operated facilities, including laboratories engagedin national defenseresearch and production activities. The PRA defines collection ofinformation broadly as the obtaining, causing to be obtained, soliciting, or requiring the disclosure to third parties or the public, of facts or opinions by or for an agency, regardless of formor format, calling for either - (i) answers to identical questions posed to, or identical reporting orrecordkeeping requirements imposed on, ten or more persons, other than agencies, instrumentalities, or employees of the United States; or (ii) answers to questions posed to agencies, instrumentalities, or employees of the United States which are to be used for general statistical purposes. With these definitions, if a federal agency wants to collect information from 10 or more non-federal entities-which can include individuals, states, orbusinesses-orto require 10 ormore of theseentities toprovide information to athinci party or to the public, that information collection or disclosure requirementis likely to be covered by the PRA. Notably, information collections subject to the PRA include both collections that are mandatory, such as taxforms that are required to be filled out annually, and collections that are voluntary, such as applications for federal benefits such as nutrition assistance andstudentloans. .conress.qov

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