80 FR 53704 - Schedule of Fees for Consular Services, Department of State and Overseas Embassies and Consulates-Passport and Citizenship Services Fee Changes

DEPARTMENT OF STATE

Federal Register Volume 80, Issue 173 (September 8, 2015)

Page Range		53704-53709
FR Document		2015-22054
The Department of State amends the Schedule of Fees for Consular Services (Schedule) for certain passport fees and citizenship services fees. More specifically, the rule amends the passport book application services fee and passport book security surcharge. The Department is adjusting these fees in light of the findings of the most recent annual update to the Cost of Service Model to ensure that the fees for consular services better align with the costs of providing those services. The passport fee changes will not alter the total fee paid by passport customers. The rule also renames the ``Administrative Processing of Formal Renunciation of U.S. Citizenship'' fee, as the ``Administrative Processing of Request for Certificate of Loss of Nationality'' fee, applying the fee to any request for a Certificate of Loss of Nationality whether the individual has relinquished nationality by taking an oath of renunciation or by voluntarily and intentionally performing another potentially expatriating act specified by statute.
Federal Register, Volume 80 Issue 173 (Tuesday, September 8, 2015)
[Federal Register Volume 80, Number 173 (Tuesday, September 8, 2015)]
[Rules and Regulations]
[Pages 53704-53709]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-22054]


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DEPARTMENT OF STATE

22 CFR Part 22

[Public Notice: 9257]
RIN 1400-AD71


Schedule of Fees for Consular Services, Department of State and 
Overseas Embassies and Consulates--Passport and Citizenship Services 
Fee Changes

AGENCY: Department of State.

ACTION: Interim final rule with request for comment.

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SUMMARY: The Department of State amends the Schedule of Fees for 
Consular Services (Schedule) for certain passport fees and citizenship 
services fees. More specifically, the rule amends the passport book 
application services fee and passport book security surcharge. The 
Department is adjusting these fees in light of the findings of the most 
recent annual update to the Cost of Service Model to ensure that the 
fees for consular services better align with the costs of providing 
those services. The passport fee changes will not alter the total fee 
paid by passport customers. The rule also renames the ``Administrative 
Processing of Formal Renunciation of U.S. Citizenship'' fee, as the 
``Administrative Processing of Request for Certificate of Loss of 
Nationality'' fee, applying the fee to any request for a Certificate of 
Loss of Nationality whether the individual has relinquished nationality 
by taking an oath of renunciation or by voluntarily and intentionally 
performing another potentially expatriating act specified by statute.

DATES: Section 22.1, Items 2.(a), 2.(b), and 2.(g) of this rule become 
effective September 23, 2015. Section 22.1, Item 8 becomes effective 
November 9, 2015. Written comments must be received on or before 
November 9, 2015.

ADDRESSES: Interested parties may submit comments to the Department by 
any of the following methods:
     Visit the Regulations.gov Web site at: http://www.regulations.gov and search for the Regulatory Information Number 
(RIN) 1400-AD71 or docket number DOS-2014-0016.
     Mail (paper, disk, or CD-ROM): U.S. Department of State, 
Office of the Comptroller, Bureau of Consular Affairs (CA/C), SA-17 8th 
Floor, Washington, DC 20522-1707.
     Email: [email protected]. You must include the RIN (1400-
AD71) in the subject line of your message.
     All comments should include the commenter's name, the 
organization the commenter represents, if applicable, and the 
commenter's address. If the Department is unable to read your comment 
for any reason, and cannot contact you for clarification, the 
Department may not be able to consider

[[Page 53705]]

your comment. After the conclusion of the comment period, the 
Department will publish a Final Rule (in which it will address relevant 
comments) as expeditiously as possible.

FOR FURTHER INFORMATION CONTACT: Jill Warning, Special Assistant, 
Office of the Comptroller, Bureau of Consular Affairs, Department of 
State; phone: 202-485-6681, telefax: 202-485-6826; email: 
[email protected].

SUPPLEMENTARY INFORMATION: 

Background

    The rule makes changes to the Schedule of Fees for Consular 
Services of the Department of State's Bureau of Consular Affairs. The 
Department sets and collects its fees based on the concept of full cost 
recovery. The Department completed its most recent review of current 
consular fees and will implement several changes to the Schedule of 
Fees based on the costs of services calculated by the Fiscal Year 2013 
update to the Cost of Service Model.

What is the authority for this action?

    The Department of State derives the general authority to set fees 
based on the cost of the consular services it provides, and to charge 
those fees, from the general user charges statute, 31 U.S.C. 9701. See, 
e.g., 31 U.S.C. 9701(b)(2)(A) (``The head of each agency . . . may 
prescribe regulations establishing the charge for a service or thing of 
value provided by the agency . . . based on . . . the costs to the 
government.''). As implemented through Executive Order 10718 of June 
27, 1957, 22 U.S.C. 4219 further authorizes the Department to establish 
fees to be charged for official services provided by U.S. embassies and 
consulates. Other authorities allow the Department to charge fees for 
consular services, but not to determine the amount of such fees because 
the amount is statutorily determined.
    Several statutes address specific fees relating to passports. For 
instance, 22 U.S.C. 214 authorizes the Secretary of State to set the 
passport application fee by regulation. In addition, another statute 
authorizes the Department to collect and retain a surcharge on 
passports to help pay for efforts to enhance border security. See 8 
U.S.C. 1714. Although this passport surcharge was originally frozen 
statutorily at $12, subsequent legislation authorized the Department to 
amend this surcharge administratively, provided, among other things, 
that the resulting surcharge is ``reasonably related to the costs of 
providing services in connection with the activity or item for which 
the surcharges are charged.'' Public Law 109-472, 6, 120 Stat. 3554, 
reproduced at 8 U.S.C. 1714 (note).
    Certain people are exempted by law or regulation from paying 
specific fees. These are noted in the Schedule of Fees. They include, 
for instance, exemptions from the passport execution and application 
fees for officers or employees of the United States government 
proceeding abroad in the discharge of official duties. See 22 U.S.C. 
214; 22 CFR 51.52(b).
    Although the funds collected for many consular fees must be 
deposited into the general fund of the Treasury pursuant to 31 U.S.C. 
3302(b), various statutes permit the Department to retain some or all 
of the fee revenue it collects. For example, the Department retains the 
immigrant visa and passport security surcharges, see 8 U.S.C. 1714, but 
the portion of the passport application fee not related to the Western 
Hemisphere Travel Initiative is deposited into the general fund of the 
Treasury.
    The Department last changed fees for passport services in an 
interim final rule dated June 28, 2010. See Department of State 
Schedule of Fees for Consular Services, Department of State and 
Overseas Embassies and Consulates, 22 CFR part 22 (75 FR 36522). Those 
changes to the Schedule went into effect July 13, 2010. A final rule 
regarding those fees was published on February 2, 2012 (77 FR 5177). 
The Department last changed fees for visa and citizenship services in 
an interim final rule dated August 28, 2014. See Schedule of Fees for 
Consular Services, Department of State and Overseas Embassies and 
Consulates--Visa and Citizenship Services Fee Changes, 22 CFR part 22 
(79 FR 51247). That change to the Schedule went into effect on 
September 12, 2014. A final rule regarding those fees was published on 
August 25, 2015 (80 FR 51464).
    Some fees in the Schedule, including Items 20(a) and (b), 31(a) and 
(b) and 35(c), are set by the Department of Homeland Security (DHS). 
These DHS fees were most recently updated by that agency on November 
23, 2010, and are subject to change in the future. See 75 FR 58962. The 
Department lists these DHS fees in the Department Schedule of Fees for 
cashiering purposes only. The Department has no authority to set DHS 
fees, which are listed at 8 CFR 103.7(b)(1).

Why is the department adjusting certain passport and citizenship 
services fees at this time?

    Consistent with OMB Circular A-25 guidelines, the Department 
recently completed a fee review using its Cost of Service Model. This 
review was conducted from September 2013 through May 2014 and provides 
the basis for updating the Schedule. The results of that review are 
outlined in this rule.\1\ While fees are set in accordance with full 
cost recovery, there are limited circumstances, such as the passport 
book and card application fees for minors, in which costs are allocated 
to related fees or the Department charges a fee that is lower than the 
cost of providing the service. This may be done in order to account for 
statutory requirements or the potential impact on the public of setting 
those fees at a higher level. See 31 U.S.C. 9701(b)(2) (user charges 
based on costs to the government, the value of the service to the 
recipient, the public policy or interest served, and other relevant 
facts).
---------------------------------------------------------------------------

    \1\ To request more information about the Cost of Service model, 
please send your request using one of the methods in the Addresses 
section above.
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    Similar to the 2012 fee review, upon which the current Schedule is 
based, costs are generated by an activity-based costing model that 
takes into account all costs to the U.S. government. Unlike a typical 
accounting system, which accounts for only traditional general-ledger-
type costs such as salaries, supplies, travel and other business 
expenses, activity-based costing (ABC) models measure the costs of 
activities, or processes, and then provide an additional view of costs 
by the products and services produced by an organization through the 
identification of the key cost drivers of the activities. Below is a 
description of activity-based costing excerpted from the Supplemental 
Notice of Proposed Rulemaking published on March 24, 2010 (75 FR 
14111).

Activity-Based Costing Generally

    OMB Circular A-25 states that it is the objective of the United 
States Government to ``(a) ensure that each service, sale, or use of 
Government goods or resources provided by an agency to specific 
recipients be self-sustaining; [and] (b) promote efficient allocation 
of the Nation's resources by establishing charges for special benefits 
provided to the recipient that are at least as great as costs to the 
Government of providing the special benefits . . .'' OMB Circular A-25, 
5(a)-(b); see also 31 U.S.C. 9701(b)(2)(A) (agency ``may prescribe 
regulations establishing the charge for a service or thing of value 
provided by the agency . . . based on . . . the costs to the Government 
. . .''). To set prices that are ``self-sustaining,'' the Department 
must determine the full cost of providing consular services.

[[Page 53706]]

Following guidance provided in Statement 4 of OMB's Statement of 
Federal Financial Accounting Standards (SFFAS), available at http://www.fasab.gov/pdffiles/sffas-4.pdf, the Department chose to develop and 
use an activity-based costing (ABC) model to determine the full cost of 
the services listed in its Schedule of Fees, both those whose fee the 
Department proposes to change, and those whose fee will remain 
unchanged from prior years. The Department refers to the specific ABC 
model that underpins the proposed fees as the ``Cost of Service Model'' 
or ``CoSM.''
    The Government Accountability Office (GAO) defines activity-based 
costing as a ``set of accounting methods used to identify and describe 
costs and required resources for activities within processes.'' Because 
an organization can use the same staff and resources (computer 
equipment, production facilities, etc.) to produce multiple products or 
services, ABC models seek to precisely identify and assign costs to 
processes and activities and then to individual products and services 
through the identification of key cost drivers referred to as 
``resource drivers'' and ``activity drivers.''
    Example: Imagine a government agency that has a single facility it 
uses to prepare and issue a single product--a driver's license. In this 
simple scenario, every cost associated with that facility (the salaries 
of employees, the electricity to power the computer terminals, the cost 
of a blank driver's license, etc.) can be attributed directly to the 
cost of producing that single item. If that agency wants to ensure that 
it is charging a ``self-sustaining'' price for driver's licenses, it 
only has to divide its total costs for a given time period by an 
estimate of the number of driver's licenses to be produced during that 
same time period.
    However, if that agency issues multiple products (driver's 
licenses, non-driver ID cards, etc.), has employees that work on other 
activities besides licenses (for example, accepting payment for traffic 
tickets), and operates out of multiple facilities it shares with other 
agencies, it becomes much more complex for the agency to determine 
exactly how much it costs to produce any single product. In those 
instances, the agency would need to know what percent of time its 
employees spend on each service and how much of its overhead (rent, 
utilities, facilities maintenance, etc.) can be allocated to the 
delivery of each service to determine the cost of producing each of its 
various products--the driver's license, the non-driver ID card, etc. 
Using an ABC model allows the agency to identify separate costs for 
those different services.

Components of Activity-Based Costing

    As noted in SFFAS Statement 4, ``activity-based costing has gained 
broad acceptance by manufacturing and service industries as an 
effective managerial tool'' (SFFAS Statement 4, 147). There are no 
``off-the-shelf'' ABC models that allow the Department (or any other 
entity) to simply populate a few data points and generate an answer. 
ABC models require financial and accounting analysis and modeling 
skills combined with a detailed understanding of all the organization's 
business processes, which, in an entity the size of the Department's 
Bureau of Consular Affairs, are exceedingly complex. More specifically, 
ABC models require an organization to:
     Identify all of the activities that are required to 
produce a particular product or service (``activities'');
     Identify all of the resources allocated to the production 
of (costs) that product or service (``resources'');
     Measure the quantity of resources consumed (``resource 
driver''); and
     Measure the frequency and intensity of demand placed on 
activities to produce services (``activity driver'').
    For additional details on an activity-based costing model, see the 
Supplemental Notice of Proposed Rulemaking published on March 24, 2010 
(75 FR 14111).
    Although much of the modeling methodology has remained the same 
between fee reviews, the methodology for capturing the Department's 
historical support costs and projected costs has been revised to 
reflect the change in the Department's workload. In order to accurately 
account for the costs associated with growing demand for consular 
services, the current fee review also incorporates two years of 
projected costs in addition to two years of historical costs and one 
year of current costs. The new fees represent a weighted average of the 
annual costs by service for fiscal years 2011 through 2015. Costs for 
individual fiscal years were weighted by the projected workload volume 
for that year. These weighted costs by fiscal year were then added 
together to generate a single cost per service upon which the fees are 
determined.

Passport Book Application Services

    The Department is decreasing the application fee for an adult (age 
16 and older) passport book from $70 to $50, and the application fee 
for a minor (under age 16) passport book from $40 to $20. These changes 
apply to all applicants except those persons who are statutorily 
exempted from paying fees. The reduction in the passport application 
fee (and corresponding increase in the passport security surcharge 
noted below) will result in a reduction of funds deposited in the 
general fund at the Treasury and an increase in the revenue retained by 
the Department of State. The passport fee changes will not alter the 
total fee paid by passport customers.
    Since the passport book application services fee was last changed 
in 2010, the Department has enhanced its Cost of Service Model to more 
accurately identify which costs should be attributed to the application 
fee and which should be attributed to the passport security surcharge. 
The application fee includes all costs of passport issuance and use 
that are not included in the passport security surcharge, such as the 
cost of providing emergency services for American citizens overseas and 
the cost of collecting passport fees and initial data entry through a 
lockbox service. The 2013 Cost of Service Model reflected that these 
costs were lower than the previous fee of $70 (including the ``WHTI 
surcharge'' described below) and thus the Department is lowering the 
fee to more precisely reflect these costs.
    Because a minor passport book has a validity of just five years, in 
contrast with the ten-year validity period of an adult passport book, 
the Department charges a lower, below-cost fee for minor passport books 
and allocates the remainder of the cost of processing minor passport 
book applications to the adult passport application fee. The Department 
is also decreasing the minor passport book application fee by $20.
    As described in 22 CFR 51.51(d), the passport application services 
fee incorporates a surcharge (the ``Western Hemisphere Travel 
Initiative surcharge'' or ``WHTI surcharge'') to recover the costs of 
meeting the increased demand for passports as a result of actions taken 
to comply with section 7209(b) of Pub. L. 108-458 (reproduced at 8 
U.S.C. 1185 note) (``WHTI''). The 2013 Cost of Service Model revealed 
that there has been no change in the costs attributable to WHTI and 
thus the surcharge remains $22 for adults. This surcharge is embedded 
within the passport book application services fee and not charged 
separately or separately itemized in the Schedule of Fees, see 22 CFR 
51.51(d) (noting absence of separate itemization). This portion of the 
application fee has decreased from $22 to $20 for minors to allow the 
Department to keep the overall passport application fee for minors 
(including the security

[[Page 53707]]

surcharge, below) at $80, a reduced fee. The Department may charge 
reduced fees in order to account for statutory requirements or the 
potential impact on the public of setting those fees at a higher level. 
See 31 U.S.C. 9701(b)(2) (user charges based on costs to the 
government, the value of the service to the recipient, the public 
policy or interest served, and other relevant facts).

Passport Security Surcharge

    The Department is increasing the passport security surcharge, which 
is applicable to all applicants except those persons who are 
statutorily exempted from paying fees, from $40 to $60. The passport 
security surcharge includes costs associated with the passport 
application processing fee that support enhanced border security, such 
as the secure book and card materials, passport printers, and 
compensation associated with passport adjudication, including fraud 
prevention. The 2013 Cost of Service Model results indicated that these 
costs amount to approximately $60 per passport. This change will result 
in a reduction of revenue deposited in the general fund of the Treasury 
and increase the revenue retained by the Department of State. This fee 
increase is due in part to new technology and more secure passport 
materials since 2010. See 8 U.S.C. 1714 and Public Law 109-472, 120 
Stat. 3554, reproduced at 8 U.S.C. 1714 note.

Documentation for Loss of Nationality

    The Department is expanding the application of and renaming item 8 
in the Schedule of Fees to ``Administrative Processing of Request for 
Certificate of Loss of Nationality.'' The fee will be applied to cover 
not only services to U.S. nationals (i.e., U.S. citizens and non-
citizen nationals) who relinquish nationality by taking the oath of 
renunciation under 8 U.S.C. 1481(a)(5), but also to cover services to 
U.S. nationals who relinquish nationality under 8 U.S.C. 1481(a)(1) to 
1481(a)(4) or any earlier-in-time relinquishment statutes administered 
by the Department of State and request a Certificate of Loss of 
Nationality. Currently, the fee is paid by those taking the oath of 
renunciation under 8 U.S.C. 1481(a)(5) at the time the oath is sworn. 
The fee would be collected from an individual claiming to have 
relinquished nationality at the time that person requests the 
Certificate of Loss of Nationality (that is, after completing Form DS-
4079 and signing before a consular officer Part II of Form DS-4079 
entitled ``Statement of Voluntary Relinquishment of U.S. 
Citizenship''). The Fiscal Year 2012 Cost of Service Model update 
demonstrated that documenting a U.S. national's relinquishment of 
nationality is extremely costly whether the service is for a 
relinquishment under 8 U.S.C. 1481(a)(1) to 1481(a)(4) or a 
relinquishment by renunciation under 8 U.S.C. 1481(a)(5). Both require 
American consular officers overseas to spend substantial amounts of 
time to accept, process, and adjudicate cases. The cost of the service 
is not limited to the time consular officers spend with individuals 
prior to and at appointments. The application is reviewed both overseas 
and domestically to ensure full compliance with the law. The consular 
officer must determine that the individual is indeed a U.S. national, 
advise the individual on the consequences of loss of nationality, and 
ensure that the individual fully understands the consequences of loss, 
including the inability to reside in the United States unless properly 
documented as an alien. Through documentary review, consideration of 
the individual's circumstances, and careful interviewing, the consular 
officer also must determine whether the individual is seeking loss of 
nationality voluntarily and with the requisite intent, as required by 
U.S. Supreme Court case law and by statute (8 U.S.C. 1481). This 
determination can be especially demanding in the case of minors or 
individuals with a developmental disability or mental illness.
    The consular officer must also ensure that the commission of an 
expatriating act was as prescribed by statute, which is often an issue 
in non-renunciation relinquishment cases. The loss of nationality 
service must be documented on several forms and in consular systems as 
well as in a memorandum from the consular officer to the Department's 
Directorate of Overseas Citizens Services in Washington, DC (``OCS''), 
in the Bureau of Consular Affairs. All forms and memoranda are closely 
reviewed in OCS by a country officer and a senior approving officer, 
and may include consultation with legal advisers. This review entails 
close examination of whether the requirements of voluntariness and 
intent are satisfied in the individual case. Some applications require 
multiple rounds of correspondence between post and the Department. The 
final approval of the loss of nationality must be done by law within 
the Department (8 U.S.C. 1501), by OCS, after which the case is 
returned to the consular officer overseas for final delivery of the 
Certificate of Loss of Nationality to the individual. In addition, 
every individual issued a Certificate of Loss of Nationality is advised 
of the possibility of seeking a future Administrative Review of the 
loss of nationality, a time-consuming process that is conducted by 
OCS's Office of Legal Affairs.
    Currently, nationals who renounce nationality pay a fee of $2,350, 
while nationals who apply for documentation of relinquishment of 
nationality by the voluntary commission of an expatriating act with the 
intention to lose nationality, do not pay a fee. However the services 
performed in both situations are similar, requiring close and detailed 
case-by-case review of the factors involved in a request for a 
Certificate of Loss of Nationality, and both result in similar costs to 
the Department.
    In the past, individuals seldom requested Certificates of Loss of 
Nationality from the Department to document relinquishment. Although 
the Department was aware that an individual relinquishment service was 
among the most time consuming of consular services, it was rarely 
performed so the overall cost to the Department was low and the 
Department did not establish a fee. Requests for a Certificate of Loss 
of Nationality on the basis of a non-renunciatory relinquishment have 
increased significantly in recent years, and the Department expects the 
number to grow in the future, causing the total cost of this service to 
increase. At the same time, the Department funds consular services 
completely from user fees. The Cost of Service Model continues to 
demonstrate that such costs are incurred by the Department when 
accepting, processing, and adjudicating relinquishment of nationality 
cases; therefore, the Department will collect a fee from all 
individuals seeking a Certificate of Loss of Nationality. Taking into 
account the costs of both renunciation and non-renunciation 
relinquishment processes, the fee will be $2,350.

Regulatory Findings

Administrative Procedure Act

    The Department is publishing this rule as an interim final rule 
with request for comment, with a 60-day provision for post-promulgation 
comments and with an effective date for Sec.  22.1, Items 2.(a), 2.(b), 
and 2.(g) of less than 30 days from the date of publication, based on 
the ``good cause'' exception set forth at 5 U.S.C. 553(b)(3)(B) and 
553(d)(3). Delaying implementation of this rule would be contrary to 
the public interest because consular services are directly

[[Page 53708]]

funded by user fees, not by appropriated funds. Each day that the 
Department is not collecting adequate user fees, services provided by 
the Department to citizens, nationals, and other customers worldwide 
suffer an immediate degradation. For example, the passport security 
surcharge change will provide approximately $1,000,000 per day to 
continue timely and secure passport services in a sustainable manner. 
There is no backup source of funds for consular services. Therefore, 
the Department finds that the delay involved in publishing this rule 
for notice and comment would cause immediate harm to the ability of the 
Department to provide these services.

Regulatory Flexibility Act

    The Department has reviewed this rule and, by approving it, 
certifies that it will not have a significant economic impact on a 
substantial number of small entities as defined in 5 U.S.C. 601(6).

Unfunded Mandates Act of 1995

    This rule will not result in the expenditure by state, local, and 
tribal governments, in the aggregate, or by the private sector, of $100 
million or more in any year, and it will not significantly or uniquely 
affect small governments. Therefore, no actions were deemed necessary 
under the provisions of the Unfunded Mandates Reform Act of 1995, 2 
U.S.C. 1501-1504.

Small Business Regulatory Enforcement Fairness Act of 1996

    This rule is not a major rule as defined by 5 U.S.C. 804(2).

Executive Orders 12866 and 13563

    The Department has reviewed this rule to ensure its consistency 
with the regulatory philosophy and principles set forth in the 
Executive Orders. This rule has been submitted to OMB for review.
    This rule is necessary in light of the Department of State's Fiscal 
Year 2013 update to the Cost of Service Model finding that the cost of 
processing passports has changed since those fees were last amended in 
2010. The Department is setting the new fees in accordance with 31 
U.S.C. 9701 and other applicable legal authorities, as described in 
detail above. See, e.g., 31 U.S.C. 9701(b)(2)(A) (``The head of each 
agency . . . may prescribe regulations establishing the charge for a 
service or thing of value provided by the agency . . . based on . . . 
the costs to the government.''). This regulation sets the fees for 
consular services at the amount required to recover the costs 
associated with providing that service.
    Details of the fee changes are as follows:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                      Estimated annual  Estimated change
                  Item No.                         New fee         Current fee      Change in fee      Percentage         number of      in annual fees
                                                                                                        increase      applications \1\    collected \2\
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                         SCHEDULE OF FEES FOR CONSULAR SERVICES
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            PASSPORT AND CITIZENSHIP SERVICES
--------------------------------------------------------------------------------------------------------------------------------------------------------
2. Passport Book Application Services for:    ................  ................  ................  ................  ................  ................
 \3\
    (a) Applicants age 16 or over (including               $50               $70              -$20               -29        10,840,438     -$216,808,760
     renewals)..............................
    (b) Applicants under age 16.............                20                40               -20               -50         2,276,122      -$45,522,440
    (g) Passport book security surcharge                    60                40                20                50        13,116,560      $262,331,200
     (enhanced border security fee).........
8. Administrative Processing of Request for   ................  ................  ................  ................  ................  ................
 Certificate of Loss of Nationality \4\
    (a.) Oath of renunciation...............             2,350             2,350                 0                 0             5,986                 0
    (b.) Relinquishment.....................             2,350                 0             2,350               N/A               559        $1,313,650
--------------------------------------------------------------------------------------------------------------------------------------------------------
        Total...............................  ................  ................  ................  ................  ................        $1,313,650
 
                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Based on projected FY 2015 workload.
\2\ Based on projected FY 2015 workload.
\3\ The shift of $20 between the passport application fee and the passport security surcharge will result in a reduction in funds deposited in the
  general fund of the Treasury and an increase in the funds retained by State.
\4\ The existing fee definition covers a projected 5,986 applicants renouncing their U.S. nationality in FY 2015. This rule expands the definition of
  the fee to cover an additional projected 559 applicants who will relinquish their nationality in FY 2015. The total volume of applicants paying this
  fee is projected to be 6,545, if in effect for all of FY 2015.

Executive Orders 12372 and 13132

    This regulation will not have substantial direct effects on the 
states, on the relationship between the national government and the 
states, or on the distribution of power and responsibilities among the 
various levels of government. Therefore, in accordance with section 6 
of Executive Order 13132, it is determined that this rule does not have 
sufficient federalism implications to require consultations or warrant 
the preparation of a federalism summary impact statement. The 
regulations implementing Executive Order 12372 regarding 
intergovernmental consultation on

[[Page 53709]]

federal programs and activities do not apply to this regulation.

Executive Order 13175

    The Department has determined that this rulemaking will not have 
tribal implications, will not impose substantial direct compliance 
costs on Indian tribal governments, and will not preempt tribal law. 
Accordingly, the requirements of Executive Order 13175 do not apply to 
this rulemaking.

Paperwork Reduction Act

    This rule does not impose any new reporting or record-keeping 
requirements subject to the Paperwork Reduction Act.

List of Subjects in 22 CFR Part 22

    Consular services, Fees, Passports.

    Accordingly, for the reasons stated in the preamble, 22 CFR part 22 
is amended as follows:

PART 22--SCHEDULE OF FEES FOR CONSULAR SERVICES--DEPARTMENT OF 
STATE AND FOREIGN SERVICE

0
1. The authority citation for part 22 continues to read as follows:

    Authority:  8 U.S.C. 1101 note, 1153 note, 1183a note, 1351, 
1351 note, 1714, 1714 note; 10 U.S.C. 2602(c); 11 U.S.C. 1157 note; 
22 U.S.C. 214, 214 note, 1475e, 2504(a), 4201, 4206, 4215, 4219, 
6551; 31 U.S.C. 9701; Exec. Order 10,718, 22 FR 4632 (1957); Exec. 
Order 11,295, 31 FR 10603 (1966).


0
2. Section 22.1 is amended by:
0
a. Revising Items 2.(a), (b), and (g), effective September 23, 2015; 
and
0
b. Revising Item 8, effective November 9, 2015.
    The revisions read as follows:


Sec.  22.1  Schedule of fees.

* * * * *

                 Schedule of Fees for Consular Services
------------------------------------------------------------------------
                        Item No.                                Fee
------------------------------------------------------------------------
                    PASSPORT AND CITIZENSHIP SERVICES
------------------------------------------------------------------------
 
                              * * * * * * *
2. Passport Book Application Services for:..............  ..............
    (a) Applicants age 16 or over (including renewals)..              50
    (b) Applicants under age 16.........................              20
 
                              * * * * * * *
    (g) Passport book security surcharge (enhanced                    60
     border security fee)...............................
 
                              * * * * * * *
8. Administrative Processing of Request for Certificate            2,350
 of Loss of Nationality.................................
 
                              * * * * * * *
------------------------------------------------------------------------


    Dated: August 28, 2015.
Patrick F. Kennedy,
Under Secretary of State for Management, U.S. Department of State.
[FR Doc. 2015-22054 Filed 9-4-15; 8:45 am]
BILLING CODE 4710-06-P
Federal Register / Vol. 80, No. 173 / Tuesday, September 8, 2015 / Rules and Regulations 53705

your comment. After the conclusion of surcharges are charged.’’ Public Law Service Model. This review was
the comment period, the Department 109–472, 6, 120 Stat. 3554, reproduced conducted from September 2013
will publish a Final Rule (in which it at 8 U.S.C. 1714 (note). through May 2014 and provides the
will address relevant comments) as Certain people are exempted by law basis for updating the Schedule. The
expeditiously as possible. or regulation from paying specific fees. results of that review are outlined in
FOR FURTHER INFORMATION CONTACT: Jill These are noted in the Schedule of Fees. this rule.1 While fees are set in
Warning, Special Assistant, Office of the They include, for instance, exemptions accordance with full cost recovery, there
Comptroller, Bureau of Consular Affairs, from the passport execution and are limited circumstances, such as the
Department of State; phone: 202–485– application fees for officers or passport book and card application fees
6681, telefax: 202–485–6826; email: employees of the United States for minors, in which costs are allocated
fees@state.gov. government proceeding abroad in the to related fees or the Department
discharge of official duties. See 22 charges a fee that is lower than the cost
SUPPLEMENTARY INFORMATION:
U.S.C. 214; 22 CFR 51.52(b). of providing the service. This may be
Background Although the funds collected for done in order to account for statutory
many consular fees must be deposited requirements or the potential impact on
The rule makes changes to the into the general fund of the Treasury
Schedule of Fees for Consular Services the public of setting those fees at a
pursuant to 31 U.S.C. 3302(b), various higher level. See 31 U.S.C. 9701(b)(2)
of the Department of State’s Bureau of statutes permit the Department to retain
Consular Affairs. The Department sets (user charges based on costs to the
some or all of the fee revenue it collects. government, the value of the service to
and collects its fees based on the For example, the Department retains the
concept of full cost recovery. The the recipient, the public policy or
immigrant visa and passport security interest served, and other relevant facts).
Department completed its most recent surcharges, see 8 U.S.C. 1714, but the Similar to the 2012 fee review, upon
review of current consular fees and will portion of the passport application fee which the current Schedule is based,
implement several changes to the not related to the Western Hemisphere costs are generated by an activity-based
Schedule of Fees based on the costs of Travel Initiative is deposited into the costing model that takes into account all
services calculated by the Fiscal Year general fund of the Treasury. costs to the U.S. government. Unlike a
2013 update to the Cost of Service The Department last changed fees for typical accounting system, which
Model. passport services in an interim final rule accounts for only traditional general-
What is the authority for this action? dated June 28, 2010. See Department of ledger-type costs such as salaries,
State Schedule of Fees for Consular supplies, travel and other business
The Department of State derives the Services, Department of State and
general authority to set fees based on the expenses, activity-based costing (ABC)
Overseas Embassies and Consulates, 22 models measure the costs of activities,
cost of the consular services it provides, CFR part 22 (75 FR 36522). Those
and to charge those fees, from the or processes, and then provide an
changes to the Schedule went into effect additional view of costs by the products
general user charges statute, 31 U.S.C. July 13, 2010. A final rule regarding
9701. See, e.g., 31 U.S.C. 9701(b)(2)(A) and services produced by an
those fees was published on February 2, organization through the identification
(‘‘The head of each agency . . . may 2012 (77 FR 5177). The Department last
prescribe regulations establishing the of the key cost drivers of the activities.
changed fees for visa and citizenship Below is a description of activity-based
charge for a service or thing of value services in an interim final rule dated
provided by the agency . . . based on costing excerpted from the
August 28, 2014. See Schedule of Fees Supplemental Notice of Proposed
. . . the costs to the government.’’). As for Consular Services, Department of
implemented through Executive Order Rulemaking published on March 24,
State and Overseas Embassies and 2010 (75 FR 14111).
10718 of June 27, 1957, 22 U.S.C. 4219 Consulates—Visa and Citizenship
further authorizes the Department to Services Fee Changes, 22 CFR part 22 Activity-Based Costing Generally
establish fees to be charged for official (79 FR 51247). That change to the OMB Circular A–25 states that it is
services provided by U.S. embassies and Schedule went into effect on September the objective of the United States
consulates. Other authorities allow the 12, 2014. A final rule regarding those Government to ‘‘(a) ensure that each
Department to charge fees for consular fees was published on August 25, 2015 service, sale, or use of Government
services, but not to determine the (80 FR 51464). goods or resources provided by an
amount of such fees because the amount Some fees in the Schedule, including agency to specific recipients be self-
is statutorily determined. Items 20(a) and (b), 31(a) and (b) and sustaining; [and] (b) promote efficient
Several statutes address specific fees 35(c), are set by the Department of allocation of the Nation’s resources by
relating to passports. For instance, 22 Homeland Security (DHS). These DHS establishing charges for special benefits
U.S.C. 214 authorizes the Secretary of fees were most recently updated by that provided to the recipient that are at least
State to set the passport application fee agency on November 23, 2010, and are as great as costs to the Government of
by regulation. In addition, another subject to change in the future. See 75 providing the special benefits . . .’’
statute authorizes the Department to FR 58962. The Department lists these OMB Circular A–25, 5(a)–(b); see also 31
collect and retain a surcharge on DHS fees in the Department Schedule of U.S.C. 9701(b)(2)(A) (agency ‘‘may
passports to help pay for efforts to Fees for cashiering purposes only. The prescribe regulations establishing the
enhance border security. See 8 U.S.C. Department has no authority to set DHS charge for a service or thing of value
1714. Although this passport surcharge fees, which are listed at 8 CFR provided by the agency . . . based on
was originally frozen statutorily at $12, 103.7(b)(1). . . . the costs to the Government . . .’’).
subsequent legislation authorized the
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Why is the department adjusting To set prices that are ‘‘self-sustaining,’’
Department to amend this surcharge the Department must determine the full
administratively, provided, among other certain passport and citizenship
services fees at this time? cost of providing consular services.
things, that the resulting surcharge is
‘‘reasonably related to the costs of Consistent with OMB Circular A–25 1 To request more information about the Cost of
providing services in connection with guidelines, the Department recently Service model, please send your request using one
the activity or item for which the completed a fee review using its Cost of of the methods in the Addresses section above.

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53708 Federal Register / Vol. 80, No. 173 / Tuesday, September 8, 2015 / Rules and Regulations

funded by user fees, not by appropriated impact on a substantial number of small forth in the Executive Orders. This rule
funds. Each day that the Department is entities as defined in 5 U.S.C. 601(6). has been submitted to OMB for review.
not collecting adequate user fees, This rule is necessary in light of the
Unfunded Mandates Act of 1995
services provided by the Department to Department of State’s Fiscal Year 2013
citizens, nationals, and other customers This rule will not result in the update to the Cost of Service Model
worldwide suffer an immediate expenditure by state, local, and tribal finding that the cost of processing
degradation. For example, the passport governments, in the aggregate, or by the passports has changed since those fees
security surcharge change will provide private sector, of $100 million or more were last amended in 2010. The
approximately $1,000,000 per day to in any year, and it will not significantly Department is setting the new fees in
continue timely and secure passport or uniquely affect small governments. accordance with 31 U.S.C. 9701 and
services in a sustainable manner. There Therefore, no actions were deemed other applicable legal authorities, as
is no backup source of funds for necessary under the provisions of the described in detail above. See, e.g., 31
consular services. Therefore, the Unfunded Mandates Reform Act of U.S.C. 9701(b)(2)(A) (‘‘The head of each
Department finds that the delay 1995, 2 U.S.C. 1501–1504. agency . . . may prescribe regulations
involved in publishing this rule for Small Business Regulatory Enforcement establishing the charge for a service or
notice and comment would cause Fairness Act of 1996 thing of value provided by the agency
immediate harm to the ability of the . . . based on . . . the costs to the
This rule is not a major rule as
Department to provide these services. government.’’). This regulation sets the
defined by 5 U.S.C. 804(2).
Regulatory Flexibility Act fees for consular services at the amount
Executive Orders 12866 and 13563 required to recover the costs associated
The Department has reviewed this The Department has reviewed this with providing that service.
rule and, by approving it, certifies that rule to ensure its consistency with the Details of the fee changes are as
it will not have a significant economic regulatory philosophy and principles set follows:

Estimated annual Estimated
Percentage
Item No. New fee Current fee Change in fee number of change in annual
increase applications 1 fees collected 2

SCHEDULE OF FEES FOR CONSULAR SERVICES

* * * * * * *

PASSPORT AND CITIZENSHIP SERVICES

2. Passport Book Applica-
tion Services for: 3
(a) Applicants age 16
or over (including
renewals) ................ $50 $70 ¥$20 ¥29 10,840,438 ¥$216,808,760
(b) Applicants under
age 16 .................... 20 40 ¥20 ¥50 2,276,122 ¥$45,522,440
(g) Passport book se-
curity surcharge
(enhanced border
security fee) ........... 60 40 20 50 13,116,560 $262,331,200
8. Administrative Proc-
essing of Request for
Certificate of Loss of
Nationality 4 ............................ ............................ ............................ ............................ ............................ ............................
(a.) Oath of renunci-
ation ....................... 2,350 2,350 0 0 5,986 0
(b.) Relinquishment ... 2,350 0 2,350 N/A 559 $1,313,650

Total .................... ............................ ............................ ............................ ............................ ............................ $1,313,650

* * * * * * *
1 Based on projected FY 2015 workload.
2 Based on projected FY 2015 workload.
3 The shift of $20 between the passport application fee and the passport security surcharge will result in a reduction in funds deposited in the
general fund of the Treasury and an increase in the funds retained by State.
4 The existing fee definition covers a projected 5,986 applicants renouncing their U.S. nationality in FY 2015. This rule expands the definition of
the fee to cover an additional projected 559 applicants who will relinquish their nationality in FY 2015. The total volume of applicants paying this
fee is projected to be 6,545, if in effect for all of FY 2015.
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Executive Orders 12372 and 13132 responsibilities among the various warrant the preparation of a federalism
levels of government. Therefore, in summary impact statement. The
This regulation will not have accordance with section 6 of Executive regulations implementing Executive
substantial direct effects on the states, Order 13132, it is determined that this Order 12372 regarding
on the relationship between the national
rule does not have sufficient federalism intergovernmental consultation on
government and the states, or on the
implications to require consultations or
distribution of power and

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Federal Register / Vol. 80, No. 173 / Tuesday, September 8, 2015 / Rules and Regulations 53709

federal programs and activities do not requirements subject to the Paperwork Authority: 8 U.S.C. 1101 note, 1153 note,
apply to this regulation. Reduction Act. 1183a note, 1351, 1351 note, 1714, 1714 note;
10 U.S.C. 2602(c); 11 U.S.C. 1157 note; 22
Executive Order 13175 List of Subjects in 22 CFR Part 22 U.S.C. 214, 214 note, 1475e, 2504(a), 4201,
4206, 4215, 4219, 6551; 31 U.S.C. 9701; Exec.
The Department has determined that Consular services, Fees, Passports.
Order 10,718, 22 FR 4632 (1957); Exec. Order
this rulemaking will not have tribal Accordingly, for the reasons stated in 11,295, 31 FR 10603 (1966).
implications, will not impose the preamble, 22 CFR part 22 is
substantial direct compliance costs on amended as follows: ■ 2. Section 22.1 is amended by:
Indian tribal governments, and will not ■ a. Revising Items 2.(a), (b), and (g),
preempt tribal law. Accordingly, the PART 22—SCHEDULE OF FEES FOR effective September 23, 2015; and
requirements of Executive Order 13175 CONSULAR SERVICES— ■ b. Revising Item 8, effective November
do not apply to this rulemaking. DEPARTMENT OF STATE AND 9, 2015.
Paperwork Reduction Act FOREIGN SERVICE The revisions read as follows:

This rule does not impose any new ■ 1. The authority citation for part 22 § 22.1 Schedule of fees.
reporting or record-keeping continues to read as follows: * * * * *

SCHEDULE OF FEES FOR CONSULAR SERVICES
Item No. Fee

PASSPORT AND CITIZENSHIP SERVICES

* * * * * * *
2. Passport Book Application Services for: ......................................................................................................................................... ........................
(a) Applicants age 16 or over (including renewals) ..................................................................................................................... 50
(b) Applicants under age 16 ......................................................................................................................................................... 20

* * * * * * *
(g) Passport book security surcharge (enhanced border security fee) ........................................................................................ 60

* * * * * * *
8. Administrative Processing of Request for Certificate of Loss of Nationality ................................................................................... 2,350

* * * * * * *

Dated: August 28, 2015. requirements were previously amended 2. Electronic Submission of
Patrick F. Kennedy, by Department of Housing and Urban Comments. Interested persons may
Under Secretary of State for Management, Development Appropriations Act, 2014 submit comments electronically through
U.S. Department of State. (2014 Appropriations Act). This interim the Federal eRulemaking Portal at
[FR Doc. 2015–22054 Filed 9–4–15; 8:45 am] rule amends HUD regulations www.regulations.gov. HUD strongly
BILLING CODE 4710–06–P implementing the Fiscal Year (FY) 2014 encourages commenters to submit
statutory language regarding public comments electronically. Electronic
housing flat rents to allow PHAs to take submission of comments allows the
DEPARTMENT OF HOUSING AND advantage of the FY 2015 authority that commenter maximum time to prepare
URBAN DEVELOPMENT provides PHAs with more flexibility in and submit a comment, ensures timely
setting flat rents. This interim rule receipt by HUD, and enables HUD to
24 CFR Part 960 supersedes the portion of a proposed make comments immediately available
rule issued by HUD earlier this year that to the public. Comments submitted
[Docket No. FR 5743–I–02] addressed the issue of setting flat rents electronically through the
RIN 2577–AC94 in public housing, and HUD continues www.regulations.gov Web site can be
to seek comment on this issue. viewed by other commenters and
Streamlining Administrative DATES: Effective Date: October 8, 2015. interested members of the public.
Regulations for Public Housing: Comment Due Date: November 9, Commenters should follow the
Revisions to Public Housing Flat Rents 2015. instructions provided on that site to
AGENCY: Office of the Assistant ADDRESSES: Interested persons are submit comments electronically.
Secretary for Public and Indian invited to submit comments regarding Note: To receive consideration as public
Housing, HUD. this interim rule. All communications comments, comments must be submitted
ACTION: Interim rule. must refer to the above docket number through one of the two methods specified
and title. There are two methods for above. Again, all submissions must refer to
SUMMARY: Section 238 of the Department submitting public comments. the docket number and title of the rule.
of Housing and Urban Development 1. Submission of Comments by Mail.
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No Facsimile Comments. Facsimile
Appropriations Act, 2015 (2015 Comments may be submitted by mail to (fax) comments are not acceptable.
Appropriations Act) amended the the Regulations Division, Office of Public Inspection of Public
requirements in the United States General Counsel, Department of Comments. All properly submitted
Housing Act of 1937 (1937 Act) for Housing and Urban Development, 451 comments and communications
public housing agencies (PHAs) to set 7th Street SW., Room 10276, submitted to HUD will be available for
flat rents in public housing. These Washington, DC 20410–0500. public inspection and copying between

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Document Created: 2018-02-26 10:13:39
Document Modified: 2018-02-26 10:13:39
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Interim final rule with request for comment.
Dates		Section 22.1, Items 2.(a), 2.(b), and 2.(g) of this rule become effective September 23, 2015. Section 22.1, Item 8 becomes effective November 9, 2015. Written comments must be received on or before November 9, 2015.
Contact		Jill Warning, Special Assistant, Office of the Comptroller, Bureau of Consular Affairs, Department of State; phone: 202-485-6681, telefax: 202-485-6826; email: [email protected]
FR Citation		80 FR 53704
RIN Number		1400-AD71
CFR Associated		Consular Services; Fees and Passports