83 FR 4425 - Schedule of Fees for Consular Services, Department of State and Overseas Embassies and Consulates-Passport Services Fee Changes
DEPARTMENT OF STATE Federal Register Volume 83, Issue 21 (January 31, 2018)
Federal Register Volume 83, Issue 21 (January 31, 2018)
| Page Range | 4425-4428 | |
| FR Document | 2018-01809 |
[Federal Register Volume 83, Number 21 (Wednesday, January 31, 2018)] [Rules and Regulations] [Pages 4425-4428] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-01809] ----------------------------------------------------------------------- DEPARTMENT OF STATE 22 CFR Part 22 [Public Notice 10027] RIN 1400-AD81 Schedule of Fees for Consular Services, Department of State and Overseas Embassies and Consulates--Passport Services Fee Changes AGENCY: Department of State. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Department of State implements an adjustment to the Schedule of Fees for Consular Services of the Department of State's Bureau of Consular Affairs (``Schedule of Fees'' or ``Schedule'') to raise the execution fee for passport books and cards from $25 to $35. The Department is adjusting this fee in light of the findings of the most recently approved update to the Cost of Service Model to better align the fees for consular services with the costs of providing those services. DATES: In accordance with the Congressional Review Act, this rule is effective on April 2, 2018. FOR FURTHER INFORMATION CONTACT: Rob Schlicht, Management Analyst, Office of the Comptroller, Bureau of Consular Affairs, Department of State; phone: 202-485-6685, telefax: 202-485-6826; email: [email protected]. SUPPLEMENTARY INFORMATION: Background This rule makes a change to the Schedule of Fees for passport services (passport books and cards). The Department published a notice of proposed rulemaking (NPRM) on September 19, 2016 (81 FR 64088), with 60 days provided for public comment. This final rule addresses the relevant comments. Justification for this rulemaking can be found in the NPRM. Analysis of Comments The Department received 34 comments, of which 26 are addressed herein. The other eight were duplicates submitted to regulations.gov and [email protected]. The majority of the comments were in favor of raising the fee from $25 to $35. Four were opposed to raising the fee and one comment referred to visa fees which are not addressed in this rulemaking. A majority of the comments that were in favor of the fee increase cited increased overhead, with most mentioning staffing and postage as major costs. Other comments expressed the view that the small increase in fee would not affect business or personal travel. Two commenters who opposed the fee increase expressed concern that the fee would be a burden to some travelers. Although the Department is sympathetic to the impact the fee increase may have on the public, the fee increase reflects the result of an evaluation to determine the cost of the service provided so that the U.S. Government may recover the full cost of the service in accordance with 31 U.S.C. 9701 and guidance from the Office of Management and Budget (OMB). Federal agencies make every effort to ensure that fees for services are sufficient to recover the full cost to the government. (See OMB Circular A-25, ] 6(a)(1), (a)(2)(a).) Two commenters stated that the government should work more efficiently rather than raise fees. The Department of State's Bureau of Consular Affairs along with its partner acceptance facilities strive to optimize business functions to increase efficiency and effectively manage financial and capital resources funded by consular fees. There are approximately 7,400 acceptance facilities throughout the United States, including those at post offices and clerks of court. This fee is necessary to ensure that acceptance agents are compensated for the time and materials required to accept applications on behalf of the Department of State. The fee has remained the same for over nine years even though the cost of labor and material has increased during the same time period. In 2008, the Department lowered the execution fee for passport books from $30 to $25 based on costs at the time. The proposed $10 increase to $35, from the current fee of $25, is in line with cost increases for both the Department and United States Postal Service during the past nine years. In an effort to improve business practices, the Department publishes a guide that standardizes processes for acceptance facilities and provides annual training to ensure the processes are followed. Additionally, the Department conducts regular audits and inspections of the acceptance facilities to protect the integrity of the application process, prevent mis/malfeasance, and promote standardization and efficiency. The revenue from retained consular fees fund CA's domestic and overseas operations and consular-related programs. These operations protect the lives and serve the interests of United States citizens and strengthen U.S. border security. One commenter stated that the amount of time and effort it takes to [[Page 4426]] process applications does not justify the cost of service. The person believes that fees should be less for children when they apply with their family. As described in the section of this rule describing activity-based costing, the fee is determined in its totality, not as an individual transaction with consideration given to family circumstances. Conforming to guidance from OMB, federal agencies make every effort to ensure that fees for service are sufficient to recover the full cost to the government of providing the service. (See OMB Circular A-25, ] 6(a)(1), (a)(2)(a).) Activity-based costing was explained in the NPRM, and the Department will summarize the explanation here, for convenience. Activity-Based Costing To set fees in accordance with the general principles of cost recovery, the Department must determine the true cost of providing consular services. Following guidance provided in ``Managerial Cost Accounting Concepts and Standards for the Federal Government,'' OMB's Statement #4 of Federal Accounting Standards (SFFAS #4 (available at http://www.fasab.gov/pdffiles/sffas-4.pdf), the Department developed an activity-based costing (ABC) model to determine the true cost of each of its consular services. 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 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.'' ABC models also seek to identify the amount of time an organization's personnel spend on each service and how much overhead cost (rent, utilities, facilities maintenance, etc.) is associated with delivering each service. ABC models require financial and accounting analysis and modeling skills combined with a detailed understanding of an organization's business processes. ABC models require an organization to identify all activities required to produce a particular product or service (``activities'') and all resources consumed (``costs'') in the course of producing that product or service. An organization must also measure the quantity of resources consumed (``resource driver''); and the frequency and intensity of demand placed on activities to produce services (``activity driver''). SFFAS Statement #4 provides a detailed discussion of the use of cost accounting by the U.S. Government. The Department's Cost of Service Model The Department conducted periodic Cost of Service Studies using ABC methods to determine the costs of its consular services through 2009. In 2010, the Department moved to adopt an annually updated Cost of Service Model that measures all of its consular operations and costs, including all activities needed to provide consular services, whether fee-based or not. This provides a comprehensive and detailed look at all consular services as well as all services the Department performs for other agencies in connection with its consular operations. The Cost of Service Model now includes approximately 80 distinct activities, and enables the Department to model its consular-related costs with a high degree of precision. The Department uses three methods outlined in SFFAS Statement #4 (paragraph 149(2)) to assign resource costs to activities: (a) Direct tracing; (b) estimation based on surveys, interviews, or statistical sampling; and (c) allocations. The Department uses direct tracing to assign the cost of, for example, a physical passport book or the visa foil placed in a visa applicant's passport. Assigning costs to activities such as adjudicating a passport or visa application requires estimation based on surveys, interviews, or statistical sampling to determine who performs an activity and how long it takes. Indirect costs (overhead) in the Cost of Service Model are allocated according to the level of effort needed for a particular activity. Where possible, the model uses overhead cost pools to assign indirect costs only to related activities. For instance, the cost of rent for domestic passport agencies is assigned only to passport costs, not to visas or other services the Department provides only overseas. The Department allocates indirect support costs to each consular service by the portion of each cost attributable to consular activities. For example, the model allocates a portion of the cost of the Department's Bureau of Human Resources to consular services. The total amount of this allocation is based on the number of Bureau of Human Resources staff members who support Bureau of Consular Affairs personnel. In turn, this amount is allocated between the different consular services by the level of effort to provide them. To assign labor costs, the Department relies on a variety of industry-standard estimation methodologies. To document how consular staff divide their time overseas, the Department conducts the Consular Overseas Data Collection (CODaC) survey of a representative sample of posts each year. The Department uses CODaC survey data in conjunction with volume data from over 200 individual consular sections in consulates and embassies worldwide, to develop resource drivers to assign labor costs to activities. For consular activities that take place in the United States, the Department collects volume data from periodic workload reports including Passport Agency Task Reports pulled from management databases that include Passport's Management Information System. Financial information is gathered from reports by the Comptroller and Global Financial Services bureau financial systems. The Department converts the cost and workload data it collects into resource drivers and activity drivers for each resource and activity. Roughly 70 percent of the workforce involved in providing consular services are full-time Federal employees. When demand for a service rises, it takes time for the Department to increase the number of employees because of the lengthy security clearance process and special training involved. Likewise, it is difficult to rapidly decrease the number of employees when demand for a service falls. Additionally, given government procurement rules and security requirements, the Department must commit to many of its facilities and infrastructure costs years before a facility becomes available. In spite of changes in demand, the Department is obligated to cover these costs. Given these and other constraints on altering the Department's cost structure in the short term, changes in service volumes can have dramatic effects on whether a fee is self-sustaining. Therefore, the Cost of Service Model includes predictive data as well as actual data. Predictive workloads are based on projections by the Office of Visa Services, the Office of Passport Services, and other parts of the Bureau of Consular Affairs that are consistent with Department budget documents prepared for Congress. As notified in the FY 2018 Congressional Budget Justification, the Department estimates a workload of 20.2 million passport applications, 14.4 million nonimmigrant visa applications, and 600,000 immigrant visa applications in FY 2018. The costs the Department enters into the Cost of Service Model include every line item of costs, such as physical [[Page 4427]] material for making passports and visas, salaries, rent, supplies, and IT hardware and software. The Department then calculates a resource driver for overseas staff time based on responses to the Consular Overseas Data Collection survey for overseas compensation costs and enters the resource drivers and activity assignments into the model. The Department then selects an activity driver, such as the volume data discussed above, for each activity, in order to assign these costs to each service type. This process allows the model to calculate a total cost for each of the Schedule of Fees line items for visa services, passport services, and overseas citizens services as well as services for other government agencies and no fee services. The model then divides this total cost by the total volume of the service or product in question in order to determine a final unit cost for the service or product. Projected costs for predictive years are also included to take account of changes in the size of consular staff, workload, and similar factors.\1\ The resulting database constitutes the Cost of Service Model. The Department continues to refine and update the Cost of Service Model in order to set fees commensurate with the cost of providing consular services. --------------------------------------------------------------------------- \1\ Workload volume increases and decreases are the main drivers for staffing changes, but other factors may impact staffing or the speed of staffing changes (e.g., the length of the recruitment and clearance processes). --------------------------------------------------------------------------- The Cost of Service Model is a complex series of iterative computer processes incorporating more than a million calculations, housed in an industry standard commercial off-the-shelf product, SAP Enterprise Performance Management; therefore, it is not reducible to a tangible form such as a document. Inputs are formatted in spreadsheets for entry into the ABC software package. The software's output includes spreadsheets with raw unit costs, validation reports, and management reports. All data inputs and outputs are considered Sensitive but Unclassified and therefore cannot be made publically available. The new cost reflected in the Schedule of Fees is based on projected workload for Fiscal Year 2018, and the fee has been rounded to make it easier to collect. The New Passport Execution Fee The Department is increasing the execution fee for passport books and cards from $25 to $35, excepting those persons who are statutorily exempted from paying the passport execution fee. The costs of providing passport services to exempt individuals are covered by fees paid by non-exempt individuals. The passport execution fee is applicable to all first-time passport applicants and certain other applicants who must apply in person, such as minors under the age of 16. Applicants apply in person at post offices and other acceptance facilities, such as local clerks of court, as well as at the Department's passport offices. The passport execution fee includes the costs associated with accepting passport applications and fees in-person, including salaries, benefits, and an allocated portion of overhead including, but not limited to, rent, utilities, supplies and equipment. The Department's Cost of Service Model showed that these costs were over $33. The United States Postal Service--the acceptance agent for the majority of passport applications--regularly conducts a similar study and found that these costs were more than $34.\2\ See 22 U.S.C. 214(a); 22 CFR 51.51(b). --------------------------------------------------------------------------- \2\ The United States Postal Service does not produce a public report on this study. --------------------------------------------------------------------------- The $10 increase in the passport execution fee will affect first- time passport applicants and certain applicants who must appear at post offices and other acceptance facilities such as local clerks of court. Individuals who apply for a passport renewal by mail will not see a fee increase. Regulatory Findings Administrative Procedure Act The Department published this rule as a proposed rule on September 19, 2016, with a 60-day provision for public comments. See 81 FR 64088. In accordance with the Congressional Review Act, this rule will be effective 60 days after publication and receipt by Congress and the GAO. 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, or 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 a major rule as defined by 5 U.S.C. 804(2). The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the Small Business Regulatory Enforcement Fairness Act of 1996, generally provides that before a rule may take effect, the agency promulgating the rule must submit a rule report, which includes a copy of the rule, to each House of the Congress and to the Comptroller General of the United States. The Department will submit the required information to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the United States prior to publication of the rule in the Federal Register. This rule will take effect 60 days after it is published in the Federal Register and receipt by Congress and the GAO. Executive Order 12866 The Department has reviewed this rule to ensure its consistency with the regulatory philosophy and principles set forth in the Executive Orders. OMB has determined that this rule is economically significant under Executive Order 12866. This rule is necessary in light of the Department of State's Cost of Service Model finding that the cost of executing first-time passports is higher than the current fee. The Department is setting this fee in accordance with 22 U.S.C. 214(a) (``There shall be collected and paid into the Treasury of the United States . . . a fee, prescribed by the Secretary of State by regulation, for executing each such [passport] application) and 31 U.S.C. 9701(``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 generally sets the fee for passport executions at the amount required to recover the costs associated with providing this service. Details of the fee change are as follows: [[Page 4428]] -------------------------------------------------------------------------------------------------------------------------------------------------------- Estimated annual Estimated change Item No. Proposed fee Current fee Change in fee Percentage number of in annual fees increase applications \1\ collected \1\ -------------------------------------------------------------------------------------------------------------------------------------------------------- Schedule of Fees for Consular Services -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * -------------------------------------------------------------------------------------------------------------------------------------------------------- Passport and Citizenship Services -------------------------------------------------------------------------------------------------------------------------------------------------------- 1. Passport Book or Card Execution: Required for $35 $25 $10 40 11,500,000 $115,000,000 first-time applicants and others who must apply in person........................................ ----------------------------------------------------------------------------------------------------- Total......................................... .............. .............. .............. .............. ................. $115,000,000 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ Based on projected FY 2018 workload. As noted in the NPRM, the Department of State does not anticipate that demand for passport services affected by this rule will change significantly due to the fee change. The Department does not believe that passport application fees are a significant determining factor when Americans decide to travel internationally. The price of a passport book or card remains minor in comparison with other costs associated with foreign travel, given that taxes and surcharges alone on international airfare can easily surpass $100. As a result, the Department does not believe passport demand will be significantly affected by the new fee. Executive Order 13771 This rule is not an E.O. 13771 regulatory action because it is a transfer rule that changes only the fee for a service without imposing any new costs. 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 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 Information collection 1405-0004, which relates to this rule, is approved by OMB pursuant to the Paperwork Reduction Act, 44 U.S.C. Chapter 35. Other than the comments summarized above, the Department received no public comments regarding this rulemaking. This information collection has been renewed until August 31, 2019. List of Subjects in 22 CFR Part 22 Consular Services, Fees, Passports. Accordingly, 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 is revised 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), 2651a, 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. In Sec. 22.1, in the table, revise item 1 to read as follows: Sec. 22.1 Schedule of fees. * * * * * Schedule of Fees for Consular Services ------------------------------------------------------------------------ Item No. Fee ------------------------------------------------------------------------ Passport and Citizenship Services: 1. Passport Book or Card Execution: Required for first-time $35 applicants and others who must apply in person............ * * * * * ------------------------------------------------------------------------ Carl C. Risch, Assistant Secretary for Consular Affairs, Department of State. [FR Doc. 2018-01809 Filed 1-30-18; 8:45 am] BILLING CODE 4710-06-P
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Memorandum M–17–21, ‘‘Guidance DEPARTMENT OF STATE the view that the small increase in fee
Implementing Executive Order 13771’’ would not affect business or personal
of April 5, 2017. 22 CFR Part 22 travel.
[Public Notice 10027]
Two commenters who opposed the
F. Executive Order 13563 fee increase expressed concern that the
RIN 1400–AD81 fee would be a burden to some travelers.
The Department of State has
Although the Department is sympathetic
considered this rule in light of Schedule of Fees for Consular to the impact the fee increase may have
Executive Order 13563 and affirms that Services, Department of State and on the public, the fee increase reflects
this regulation is consistent with the Overseas Embassies and the result of an evaluation to determine
guidance therein. G. Executive Orders Consulates—Passport Services Fee the cost of the service provided so that
12372 and 13132: Federalism Changes the U.S. Government may recover the
H. Executive Order 13175— AGENCY: Department of State. full cost of the service in accordance
Consultation and Coordination With with 31 U.S.C. 9701 and guidance from
ACTION: Final rule.
the Office of Management and Budget
Indian Tribal Governments
SUMMARY: The Department of State (OMB). Federal agencies make every
The Department of State has implements an adjustment to the effort to ensure that fees for services are
determined that this rulemaking will Schedule of Fees for Consular Services sufficient to recover the full cost to the
not have tribal implications, will not of the Department of State’s Bureau of government. (See OMB Circular A–25,
impose substantial direct compliance Consular Affairs (‘‘Schedule of Fees’’ or ¶ 6(a)(1), (a)(2)(a).)
‘‘Schedule’’) to raise the execution fee Two commenters stated that the
costs on Indian tribal governments, and
for passport books and cards from $25 government should work more
will not pre-empt tribal law.
to $35. The Department is adjusting this efficiently rather than raise fees. The
Accordingly, the requirements of Department of State’s Bureau of
section 5 of Executive Order 13175 do fee in light of the findings of the most
recently approved update to the Cost of Consular Affairs along with its partner
not apply to this rulemaking. acceptance facilities strive to optimize
Service Model to better align the fees for
I. Paperwork Reduction Act consular services with the costs of business functions to increase efficiency
providing those services. and effectively manage financial and
This rule does not impose or revise capital resources funded by consular
DATES: In accordance with the
information collections subject to the fees. There are approximately 7,400
Congressional Review Act, this rule is acceptance facilities throughout the
provisions of the Paperwork Reduction
effective on April 2, 2018. United States, including those at post
Act, 44 U.S.C., Chapter 35.
FOR FURTHER INFORMATION CONTACT: Rob offices and clerks of court. This fee is
For a summary of the regulatory Schlicht, Management Analyst, Office of necessary to ensure that acceptance
findings and analyses regarding this the Comptroller, Bureau of Consular agents are compensated for the time and
rulemaking, please refer to the findings Affairs, Department of State; phone: materials required to accept
and analyses published with the interim 202–485–6685, telefax: 202–485–6826; applications on behalf of the
final rule, which can be found at 80 FR email: fees@state.gov. Department of State. The fee has
53704, which are adopted herein. SUPPLEMENTARY INFORMATION: remained the same for over nine years
Section 22.1, Items 2.(a), 2.(b), and 2.(g) even though the cost of labor and
of this rule became effective September Background material has increased during the same
26, 2015. Section 22.1, Item 8 became This rule makes a change to the time period. In 2008, the Department
effective November 9, 2015. As noted Schedule of Fees for passport services lowered the execution fee for passport
above, the Department considered the (passport books and cards). The books from $30 to $25 based on costs at
comments submitted in response to the Department published a notice of the time. The proposed $10 increase to
interim final rule and does not adopt proposed rulemaking (NPRM) on $35, from the current fee of $25, is in
them. Thus, the rule remains in effect. September 19, 2016 (81 FR 64088), with line with cost increases for both the
60 days provided for public comment. Department and United States Postal
List of Subjects in 22 CFR Part 22 This final rule addresses the relevant Service during the past nine years.
comments. Justification for this In an effort to improve business
Consular services, Fees, Passports and
rulemaking can be found in the NPRM. practices, the Department publishes a
visas.
guide that standardizes processes for
Analysis of Comments
PART 22—SCHEDULE OF FEES FOR acceptance facilities and provides
The Department received 34 annual training to ensure the processes
CONSULAR SERVICES— comments, of which 26 are addressed are followed. Additionally, the
DEPARTMENT OF STATE AND herein. The other eight were duplicates Department conducts regular audits and
FOREIGN SERVICE submitted to regulations.gov and fees@ inspections of the acceptance facilities
state.gov. to protect the integrity of the application
■ Accordingly, the interim final rule The majority of the comments were in process, prevent mis/malfeasance, and
amending 22 CFR part 22, which was favor of raising the fee from $25 to $35. promote standardization and efficiency.
published in the Federal Register, 80 FR Four were opposed to raising the fee The revenue from retained consular
53704, on September 8, 2015 is adopted and one comment referred to visa fees fees fund CA’s domestic and overseas
sradovich on DSK3GMQ082PROD with RULES
as final without change. which are not addressed in this operations and consular-related
rulemaking. programs. These operations protect the
Carl C. Risch,
A majority of the comments that were lives and serve the interests of United
Assistant Secretary for Consular Affairs, in favor of the fee increase cited States citizens and strengthen U.S.
Department of State. increased overhead, with most border security.
[FR Doc. 2018–01850 Filed 1–30–18; 8:45 am] mentioning staffing and postage as One commenter stated that the
BILLING CODE 4710–06–P major costs. Other comments expressed amount of time and effort it takes to
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material for making passports and visas, cards from $25 to $35, excepting those or uniquely affect small governments.
salaries, rent, supplies, and IT hardware persons who are statutorily exempted Therefore, no actions were deemed
and software. The Department then from paying the passport execution fee. necessary under the provisions of the
calculates a resource driver for overseas The costs of providing passport services Unfunded Mandates Reform Act of
staff time based on responses to the to exempt individuals are covered by 1995, 2 U.S.C. 1501–1504.
Consular Overseas Data Collection fees paid by non-exempt individuals.
survey for overseas compensation costs The passport execution fee is applicable Small Business Regulatory Enforcement
and enters the resource drivers and to all first-time passport applicants and Fairness Act of 1996
activity assignments into the model. The certain other applicants who must apply
Department then selects an activity in person, such as minors under the age This rule is a major rule as defined by
driver, such as the volume data of 16. Applicants apply in person at 5 U.S.C. 804(2). The Congressional
discussed above, for each activity, in post offices and other acceptance Review Act, 5 U.S.C. 801 et seq., as
order to assign these costs to each facilities, such as local clerks of court, added by the Small Business Regulatory
service type. This process allows the as well as at the Department’s passport Enforcement Fairness Act of 1996,
model to calculate a total cost for each offices. The passport execution fee generally provides that before a rule
of the Schedule of Fees line items for includes the costs associated with may take effect, the agency
visa services, passport services, and accepting passport applications and fees promulgating the rule must submit a
overseas citizens services as well as in-person, including salaries, benefits, rule report, which includes a copy of
services for other government agencies and an allocated portion of overhead the rule, to each House of the Congress
and no fee services. The model then including, but not limited to, rent, and to the Comptroller General of the
divides this total cost by the total utilities, supplies and equipment. The United States. The Department will
volume of the service or product in Department’s Cost of Service Model submit the required information to the
question in order to determine a final showed that these costs were over $33. U.S. Senate, the U.S. House of
unit cost for the service or product. The United States Postal Service—the Representatives, and the Comptroller
Projected costs for predictive years are acceptance agent for the majority of General of the United States prior to
also included to take account of changes passport applications—regularly publication of the rule in the Federal
in the size of consular staff, workload, conducts a similar study and found that Register. This rule will take effect 60
and similar factors.1 The resulting these costs were more than $34.2 See 22
days after it is published in the Federal
database constitutes the Cost of Service U.S.C. 214(a); 22 CFR 51.51(b).
Model. The Department continues to The $10 increase in the passport Register and receipt by Congress and
refine and update the Cost of Service execution fee will affect first-time the GAO.
Model in order to set fees commensurate passport applicants and certain Executive Order 12866
with the cost of providing consular applicants who must appear at post
services. offices and other acceptance facilities The Department has reviewed this
The Cost of Service Model is a such as local clerks of court. Individuals rule to ensure its consistency with the
complex series of iterative computer who apply for a passport renewal by regulatory philosophy and principles set
processes incorporating more than a mail will not see a fee increase. forth in the Executive Orders. OMB has
million calculations, housed in an determined that this rule is
Regulatory Findings
industry standard commercial off-the- economically significant under
shelf product, SAP Enterprise Administrative Procedure Act Executive Order 12866.
Performance Management; therefore, it The Department published this rule as
is not reducible to a tangible form such This rule is necessary in light of the
a proposed rule on September 19, 2016, Department of State’s Cost of Service
as a document. Inputs are formatted in with a 60-day provision for public
spreadsheets for entry into the ABC Model finding that the cost of executing
comments. See 81 FR 64088. In first-time passports is higher than the
software package. The software’s output accordance with the Congressional
includes spreadsheets with raw unit current fee. The Department is setting
Review Act, this rule will be effective 60
costs, validation reports, and this fee in accordance with 22 U.S.C.
days after publication and receipt by
management reports. All data inputs Congress and the GAO. 214(a) (‘‘There shall be collected and
and outputs are considered Sensitive paid into the Treasury of the United
but Unclassified and therefore cannot be Regulatory Flexibility Act States . . . a fee, prescribed by the
made publically available. The Department has reviewed this Secretary of State by regulation, for
The new cost reflected in the rule and, by approving it, certifies that executing each such [passport]
Schedule of Fees is based on projected it will not have a significant economic application) and 31 U.S.C. 9701(‘‘The
workload for Fiscal Year 2018, and the impact on a substantial number of small head of each agency . . . may prescribe
fee has been rounded to make it easier entities as defined in 5 U.S.C. 601(6). regulations establishing the charge for a
to collect. service or thing of value provided by the
Unfunded Mandates Act of 1995
The New Passport Execution Fee agency . . . based on . . . the costs to
This rule will not result in the the Government.’’). This regulation
The Department is increasing the expenditure by state, local, or tribal
execution fee for passport books and generally sets the fee for passport
governments, in the aggregate, or by the executions at the amount required to
1 Workload volume increases and decreases are
private sector, of $100 million or more recover the costs associated with
in any year, and it will not significantly providing this service.
sradovich on DSK3GMQ082PROD with RULES
the main drivers for staffing changes, but other
factors may impact staffing or the speed of staffing
changes (e.g., the length of the recruitment and 2 The United States Postal Service does not Details of the fee change are as
clearance processes). produce a public report on this study. follows:
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Estimated annual Estimated change
Percentage
Item No. Proposed fee Current fee Change in fee number of in annual fees
increase applications 1 collected 1
Schedule of Fees for Consular Services
* * * * * * *
Passport and Citizenship Services
1. Passport Book or Card Execu-
tion: Required for first-time ap-
plicants and others who must
apply in person .......................... $35 $25 $10 40 11,500,000 $115,000,000
Total ....................................... ........................ ........................ ........................ ........................ .............................. $115,000,000
* * * * * * *
1 Based on projected FY 2018 workload.
As noted in the NPRM, the implications, will not impose SCHEDULE OF FEES FOR CONSULAR
Department of State does not anticipate substantial direct compliance costs on SERVICES
that demand for passport services Indian tribal governments, and will not
affected by this rule will change preempt tribal law. Accordingly, the Item No. Fee
significantly due to the fee change. requirements of Executive Order 13175
The Department does not believe that Passport and Citizenship Serv-
do not apply to this rulemaking.
passport application fees are a ices:
significant determining factor when Paperwork Reduction Act 1. Passport Book or Card Exe-
Americans decide to travel cution: Required for first-time
Information collection 1405–0004, applicants and others who
internationally. The price of a passport must apply in person ............. $35
book or card remains minor in which relates to this rule, is approved
comparison with other costs associated by OMB pursuant to the Paperwork * * * * *
with foreign travel, given that taxes and Reduction Act, 44 U.S.C. Chapter 35.
surcharges alone on international airfare Other than the comments summarized
Carl C. Risch,
can easily surpass $100. As a result, the above, the Department received no
Assistant Secretary for Consular Affairs,
Department does not believe passport public comments regarding this
Department of State.
demand will be significantly affected by rulemaking. This information collection
[FR Doc. 2018–01809 Filed 1–30–18; 8:45 am]
the new fee. has been renewed until August 31,
BILLING CODE 4710–06–P
Executive Order 13771 2019.
This rule is not an E.O. 13771 List of Subjects in 22 CFR Part 22
regulatory action because it is a transfer DEPARTMENT OF HOMELAND
Consular Services, Fees, Passports. SECURITY
rule that changes only the fee for a
service without imposing any new costs. Accordingly, 22 CFR part 22 is
Coast Guard
Executive Orders 12372 and 13132 amended as follows:
This regulation will not have PART 22—SCHEDULE OF FEES FOR 33 CFR Part 117
substantial direct effects on the states, CONSULAR SERVICES— [Docket No. USCG–2017–0161]
on the relationship between the national DEPARTMENT OF STATE AND
government and the states, or on the RIN 1625–AA09
FOREIGN SERVICE
distribution of power and
Drawbridge Operation Regulation
responsibilities among the various 1. The authority citation for part 22 is
■ Canaveral Barge Canal, Canaveral, FL
levels of government. Therefore, in
revised to read as follows:
accordance with section 6 of Executive AGENCY: Coast Guard, DHS.
Order 13132, it is determined that this Authority: 8 U.S.C. 1101 note, 1153 note, ACTION: Final rule.
rule does not have sufficient federalism 1183a note, 1351, 1351 note, 1714, 1714 note;
implications to require consultations or 10 U.S.C. 2602(c); 11 U.S.C. 1157 note; 22 SUMMARY: The Coast Guard is modifying
warrant the preparation of a federalism U.S.C. 214, 214 note, 1475e, 2504(a), 2651a, the operating schedule that governs the
summary impact statement. The 4201, 4206, 4215, 4219, 6551; 31 U.S.C. 9701; SR 401 Drawbridges across the
regulations implementing Executive Exec. Order 10,718, 22 FR 4632 (1957); Exec. Canaveral Barge Canal, mile 5.5, at Port
Order 12372 regarding Order 11,295, 31 FR 10603 (1966). Canaveral, Florida. This modification is
sradovich on DSK3GMQ082PROD with RULES
intergovernmental consultation on necessary to reduce vehicular traffic
■ 2. In § 22.1, in the table, revise item
federal programs and activities do not congestion and to ensure the safety of
1 to read as follows:
apply to this regulation. roadways while passengers are
§ 22.1 Schedule of fees. transiting to and from the cruise ship
Executive Order 13175 terminals. Since the arrival of additional
* * * * *
The Department has determined that cruise ships to the Port of Canaveral,
this rulemaking will not have tribal traffic back-ups have been caused by the
VerDate Sep<11>2014 16:53 Jan 30, 2018 Jkt 244001 PO 00000 Frm 00016 Fmt 4700 Sfmt 4700 E:\FR\FM\31JAR1.SGM 31JAR1](https://thefederalregister.org/doc/83_FR_4446/page/4.svg)
Document Created: 2018-01-31 00:57:55
Document Modified: 2018-01-31 00:57:55
| 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 | Final rule. | |
| Dates | In accordance with the Congressional Review Act, this rule is effective on April 2, 2018. | |
| Contact | Rob Schlicht, Management Analyst, Office of the Comptroller, Bureau of Consular Affairs, Department of State; phone: 202-485-6685, telefax: 202-485-6826; email: [email protected] | |
| FR Citation | 83 FR 4425 | |
| RIN Number | 1400-AD81 | |
| CFR Associated | Consular Services; Fees and Passports |
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