GAO-01-351R

United States General Accounting Office

Washington, DC 20548

B-287141

February 7, 2001

The Honorable James M. Jeffords

Chairman

The Honorable Edward M. Kennedy

Ranking Member

Committee on Health, Education, Labor, and Pensions

United States Senate

The Honorable John Boehner

Chairman

The Honorable George Miller

Ranking Minority Member

Committee on Education and the Workforce

House of Representatives

Subject: Department of Labor, Occupational Safety and Health Administration:

Occupational Injury and Illness Recording and Reporting Requirements

Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a

major rule promulgated by the Department of Labor, Occupational Safety and Health

Administration (OSHA), entitled “Occupational Injury and Illness Recording and

Reporting Requirements” (RIN: 1218-AB24). We received the rule on January 23,

2001. It was published in the Federal Register as a final rule on January 19, 2001.

66 Fed. Reg. 5916.

The final rule revises the recording and reporting of occupational injuries and

illnesses including the forms employers use to record those injuries and illnesses.

Enclosed is our assessment of OSHA’s compliance with the procedural steps

required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule.

Our review indicates that OSHA complied with the applicable requirements.

If you have any questions about this report, please contact James W. Vickers,

Assistant General Counsel, at (202) 512-8210. The official responsible for GAO

evaluation work relating to the subject matter of the rule is Cindy Fagnoni, Managing
Page 2 GAO-01-351R

Director, Education, Workforce, and Income Security. Ms. Fagnoni can be reached

at (202) 512-7215.

signed

Kathleen E. Wannisky

Managing Associate General Counsel

Enclosure

cc: Ms. Marthe B. Kent

Director, OSHA Directorate of

 Safety Standards

Occupational Safety and Health

 Administration

Department of Labor
GAO-01-351R

ENCLOSURE

ANALYSIS UNDER 5 U.S.C. § 801(a)(1)(B)(i)-(iv) OF A MAJOR RULE

ISSUED BY THE

DEPARTMENT OF LABOR,

OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION

ENTITLED

"OCCUPATIONAL INJURY AND ILLNESS RECORDING

 AND REPORTING REQUIREMENTS"

(RIN: 1218-AB24)

(i) Cost-benefit analysis

OSHA performed a cost-benefit analysis of the final rule. The annualized costs

consist of new certification requirements ($23.8 million), additional data

requirements ($12.0 million), expansion in the scope of the rule ($5.5 million), and

transitional costs of the new rule ($1.5 million). The largest sources of savings are

the simplified maintenance of the Log ($4.8 million), less time required to relearn the

recordkeeping system ($3.1 million), and simplified maintenance of individual

reports ($1.1 million). The net impact of these changes is an estimated annual cost

of about $38.6 million.

The benefits of the final rule, described qualitatively, are enhancing the ability of

employers and employees to prevent occupational injuries and illnesses and the

improved recordkeeping also increases the utility of the records for OSHA’s

purposes.

(ii) Agency actions relevant to the Regulatory Flexibility Act, 5 U.S.C. §§ 603-605,

607, and 609

The Assistant Secretary has certified that the final rule will not have a significant

economic impact on a substantial number of small entities.

(iii) Agency actions relevant to sections 202-205 of the Unfunded Mandates Reform

Act of 1995, 2 U.S.C. §§ 1532-1535

According to OSHA, the final rule does not impose either an intergovernmental or

private sector mandate, as defined in title II, of more than $100 million in any one

year.

(iv) Other relevant information or requirements under acts and executive orders

Administrative Procedure Act, 5 U.S.C. §§ 551 et seq.

The final rule was issued using the notice and comment procedures contained at

5 U.S.C. 553. On February 2, 1996, OSHA published a Notice of Proposed
Page 2 GAO-01-351R

Rulemaking in the Federal Register. 61 Fed. Reg. 4029. In response, OSHA received

449 written comments and 1,200 pages of transcripts from public meetings regarding

the rule. These comments are discussed in the preamble to the final rule.

Paperwork Reduction Act, 44 U.S.C. §§ 3501-3520

The final rule contains information collections that are required to be reviewed and

approved by Office of Management and Budget (OMB) under the Paperwork

Reduction Act. The necessary documentation has been forwarded to OMB for

review.

OSHA estimates that there are 1,365,985 establishments that will be required to keep

the records covered by the final rule. A total of 4.5 million hours will be needed to

comply with the requirements for the first year and 3.5 million for each subsequent

year.

Statutory authorization for the rule

The final rule is promulgated under the authority of sections 8(c), 8(g), 20, and 24 of

the Occupational Safety and Health Act of 1970 (29 U.S.C. 657, 673), Secretary of

Labor’s Order No. 1-90 (55 Fed. Reg. 9033), and 5 U.S.C. 553.

Executive Order No. 12866

The final rule was reviewed by the Office of Management and Budget and found to

be a “significant” regulatory action under the order.

Executive Order No. 13132 (Federalism)

OSHA notes that because the rule involves a “regulation” issued under section 8 of

the Occupational Safety and Health Act, and not a “standard” under section 6 of the

Act, the rule does not preempt state law.