Rule2021-23449
Schedule of Fees for Consular Services-Passport Security Surcharge
Primary source
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Published
October 28, 2021
Effective
December 27, 2021
Issuing agencies
State Department
Abstract
This rule adopts as final the notice of proposed rulemaking (NPRM) published in the Federal Register on March 26, 2021. This final rule adjusts the Schedule of Fees for Consular Services (Schedule of Fees) by increasing the passport book security surcharge (PSS) from $60 to $80. This increase reflects increases in security-related costs for processing passports attributed to the PSS. Increases in security- related costs are largely due to a 37 percent increase in compensation costs for passport adjudicators and enhanced printing technology costs for the Next Generation (NextGen) passport book. Based on FY 2022 projections of 15.9 million passport products for which the PSS is included as part of the overall fee (passport books, and passport books and card combinations), the Department anticipates an additional $318 million in revenue. The Department retains all PSS revenue, and it is used to cover the costs associated with passport application processing that support enhanced border security. The adjustment will result in a more accurate alignment of the fees for consular services to the costs of providing the services.
Full Text
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<title>Federal Register, Volume 86 Issue 206 (Thursday, October 28, 2021)</title>
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[Federal Register Volume 86, Number 206 (Thursday, October 28, 2021)]
[Rules and Regulations]
[Pages 59613-59615]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-23449]
[[Page 59613]]
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DEPARTMENT OF STATE
22 CFR Part 22
[Public Notice: 11465]
RIN 1400-AE15
Schedule of Fees for Consular Services--Passport Security
Surcharge
AGENCY: Department of State.
ACTION: Final rule.
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SUMMARY: This rule adopts as final the notice of proposed rulemaking
(NPRM) published in the Federal Register on March 26, 2021. This final
rule adjusts the Schedule of Fees for Consular Services (Schedule of
Fees) by increasing the passport book security surcharge (PSS) from $60
to $80. This increase reflects increases in security-related costs for
processing passports attributed to the PSS. Increases in security-
related costs are largely due to a 37 percent increase in compensation
costs for passport adjudicators and enhanced printing technology costs
for the Next Generation (NextGen) passport book. Based on FY 2022
projections of 15.9 million passport products for which the PSS is
included as part of the overall fee (passport books, and passport books
and card combinations), the Department anticipates an additional $318
million in revenue. The Department retains all PSS revenue, and it is
used to cover the costs associated with passport application processing
that support enhanced border security. The adjustment will result in a
more accurate alignment of the fees for consular services to the costs
of providing the services.
DATES: This final rule is effective on December 27, 2021.
FOR FURTHER INFORMATION CONTACT: Johanna Cruz, Management Analyst,
Office of the Comptroller, Bureau of Consular Affairs, Department of
State; phone: 202-485-8915, telefax: 202-485-6826; email:
<a href="/cdn-cgi/l/email-protection#93f5f6f6e0d3e0e7f2e7f6bdf4fce5"><span class="__cf_email__" data-cfemail="4a2c2f2f390a393e2b3e2f642d253c">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Background
This final rule adjusts the Schedule of Fees for Consular Services
(Schedule of Fees) by increasing the PSS from $60 to $80. The
Department of State (Department) published a NPRM on March 26, 2021 (86
FR 16149), with 60 days provided for public comment. This rule
addresses the two comments received by the Department. Justification
for this rulemaking and PSS change, including relevant authorities and
information on the study used to calculate this surcharge, can be found
in the NPRM.
Analysis of Comments
As noted above, the Department received two comments in response to
the NPRM. One commenter requested to view the entire activity
dictionary, or at least the list of activities before and after it was
streamlined. The commenter suggested that this comparison would allow
the public to understand what tasks changed and how those changes led
to the fee increase. As explained in the NPRM, the activity dictionary
changes focused on standardizing and clarifying tasks, ultimately
improving accuracy in cost assignments. These changes resulted in more
security-related costs being attributed to the PSS, since this
methodology update determined more precisely which passport activities
are security-related and assigned them accordingly. For example, the
new dictionary has an activity called ``Adjudicate,'' which combines
several of the previous model's sub-activities (or tasks) like
``process and adjudicate first-time passport applications for Minors
(DS-11),'' ``process and adjudicate passport renewal applications (DS-
82),'' and ``process EPDP [emergency photo digital passport]
passports.'' The Department found that these sub-activities could be
consolidated, because they require the same amount of effort and
resources and follow the same process steps. The consolidated
activities help reduce possibilities for over-, mis-, or under-
attribution of costs to the sub-activity level. By consolidating the
sub-activities, the model more accurately reflects the activities
required to accept, adjudicate, and issue passports and better assigns
costs more consistently to those activities. It is important to note,
however, that the activity dictionary update is not the main driver
that led to the proposed increase in the PSS. The Department has
experienced a steady increase each year in costs associated with
passport application processing that support enhanced border security
since the last adjustment to the PSS. As detailed in the NPRM, the
increases in security-related costs are largely due to an increase in
compensation costs for passport adjudicators (an approximately $8.00
per unit increase), passport books (a $7.00 per unit increase), and
enhanced printing technology costs for the more secure Next Generation
(NextGen) passport books that include state-of-the-art anti-
counterfeiting improvements (a $3.45 per unit increase). Other less
significant increases and decreases in the many other cost categories
comprise the small remainder of the $20.00 cost increase.
A second comment, which was duplicated three times, suggested that
the fee increase is too high and that every taxpayer should receive no-
fee services as tax dollars should fund this activity. While the
Department is sympathetic to the impact the fee increase may have on
those who seek this service, the Department generally sets consular
fees at an amount calculated to achieve full cost recovery for the U.S.
Government of providing the consular service, consistent with its
statutory authorities and guidance from the Office of Management and
Budget (OMB). As set forth in OMB Circular A-25, as a general policy,
each identifiable recipient should pay a user charge for government
services, resources, or goods from which he or she derives a special
benefit, at an amount sufficient for the U.S. Government to recover the
full costs of providing the service, resource, or good. See OMB
Circular No. A-25, sec. 6(a)(1), (a)(2)(a). Similarly, the Government
Accountability Office's Federal User Fees Guide (<a href="https://www.gao.gov/products/gao-08-386sp">https://www.gao.gov/products/gao-08-386sp</a>) states that ``user fees can be designed to
reduce the burden on taxpayers to finance the portions of activities
that provide benefits to identifiable users above and beyond what is
normally provided to the public. By charging the costs of those
programs or activities to beneficiaries, user fees can also promote
economic efficiency and equity.''
Fees collected for passport processing and retained by the
Department are the main source of operational funding for the Passport
office, which typically does not rely on taxpayer or appropriated
funding to support its operations. Passport fees are set based on the
costs the Department incurs in processing passports and charged only to
individuals applying for a passport. While the PSS is proposed to
increase 33 percent, it is only one component of the overall adult
passport book fee. The PSS increase will result in an increase from
$110 to $130 in the overall passport book application fee for adults
seeking a renewal (DS-82), which is an 18 percent increase overall, or
a 1.8 percent increase each year during the 10-year validity of an
adult passport book. This increase to the PSS is necessary to assist
the Department in its effort to continue to support services, such as
passport services, that benefit only identifiable recipients instead of
the general public. These services are funded primarily with fee
collections instead of taxpayer dollars/appropriations.
[[Page 59614]]
Conclusion
The Department will adjust the PSS in light of the Cost of Service
Model's findings that the U.S. government is not recovering fully its
costs related to enhanced border security for passport services.
Consistent with OMB guidance, the Department endeavors to recover
through user fees the cost of services that provide special benefits to
an identifiable recipient beyond those that accrue to the general
public. See OMB Circular A-25, sec. 6(a)(1), (a)(2)(a). For this
reason, the Department will adjust the Schedule of Fees.
Regulatory Findings
Administrative Procedure Act
The Department published this rulemaking as a proposed rule and
provided 60 days for public comment. It will be effective 60 days after
publication, in accordance with 5 U.S.C. 553(d).
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 is not expected to 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.
Congressional Review Act
This rule is 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. OMB has determined that this rule is economically
significant under Executive Order 12866.
The final rule is necessary in light of the Department of State's
Cost of Service Model's findings that costs associated with passport
application processing that support enhanced border security have
increased significantly since the last update to the PSS and justify
this adjustment through the rulemaking process. See Public Law 109-472,
section 6, 120 Stat. 3555, reproduced at 8 U.S.C. 1714 (note)
(requiring that the amount of the surcharge be reasonably related to
the costs of providing the service).
The following table summarizes the impact of this final rule:
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Estimated annual Estimated change in
Item No. Fee Current Change Percentage number of annual fees
fee in fee increase applications \1\ collected \2\
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Schedule of Fees For Consular Services
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* * * * * * *
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Passport and Citizenship Services
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2. Passport Book Application Services for: (g) Passport book $80 $60 $20 33.33 FY22: 15,900,000 FY22: $318,000,000
security surcharge (enhanced border security fee)..............
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Total....................................................... 80 60 20 33.33 15,900,000 318,000,000
* * * * * * *
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\1\ Projected passport workload is FY 2022 receipts projected by the PPT directorate as of July 2021.
\2\ The Department of State retains this fee.
\3\ The Department anticipates implementing this fee change in FY 2022. FY 2022 volumes are used to project fee collection totals.
As noted in the NPRM, the Department of State does not anticipate
that demand for passport services will change significantly as a result
of this rule. The price of a passport book or card will remain minor in
comparison with other costs associated with foreign travel. As a
result, the Department does not believe passport demand will be
significantly affected by the new fee. This is especially true because
an adult passport book is valid for 10 years, and a minor passport book
is valid for 5 years or until the applicant turns 18. As a result, the
cost to the applicant of the PSS increase is spread over the lifetime
of the passport book use.
Executive Order 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
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.
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. Revise the authority citation for part 22 to read as follows:
Authority: 8 U.S.C. 1101 note, 1153 note, 1157 note, 1183a
note, 1184(c)(12), 1201(c), 1351, 1351 note, 1713, 1714, 1714 note;
10 U.S.C. 2602(c); 22 U.S.C. 214, 214 note, 1475e, 2504(h), 2651a,
4206, 4215, 4219, 6551; 31 U.S.C. 9701; E.O. 10718, 22 FR 4632, 3
CFR, 1954-1958 Comp., p. 382; E.O.
[[Page 59615]]
11295, 31 FR 10603, 3 CFR, 1966-1970 Comp., p. 570.
0
2. In Sec. 22.1, amend the table by revising entry 2(g) under the
heading ``Passport and Citizenship Services'' to read as follows:
Sec. 22.1 Schedule of fees.
* * * * *
Schedule of Fees for Consular Services
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Item No. Fee
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Schedule of Fees for Consular Services
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Passport and Citizenship Services
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* * * * * * *
2. Passport Book Application Services for:
* * * * * * *
(g) Passport book security surcharge (enhanced border $80
security fee)..........................................
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Rena Bitter,
Assistant Secretary for Consular Affairs, Department of State.
[FR Doc. 2021-23449 Filed 10-27-21; 8:45 am]
BILLING CODE 4710-06-P
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