Rule2022-06131
Schedule of Fees for Consular Services-Elimination of the “Return Check Processing Fee”
Primary source
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Published
March 24, 2022
Effective
March 24, 2022
Issuing agencies
State Department
Abstract
The Department of State (the Department) is adjusting the Schedule of Fees for Consular Services (Schedule) by removing Item Number 74, a $25 return check processing fee. Domestically, the Bureau of Consular Affairs, Office of Passport Services (CA/PPT), has charged customers this fee when the instruments they have used to submit payment for a passport application could not be processed due to insufficient funds, closed accounts, stop payments, and altered/ fictious checks or money orders. A recent review of the Department's Cost of Service Model (CoSM) established that the costs associated with attempts to recover on non-viable instruments are now captured within the passport application fee. The Department therefore stopped charging this fee on December 13, 2021, and will remove this fee from the Schedule.
Full Text
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<title>Federal Register, Volume 87 Issue 57 (Thursday, March 24, 2022)</title>
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[Federal Register Volume 87, Number 57 (Thursday, March 24, 2022)]
[Rules and Regulations]
[Pages 16636-16638]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-06131]
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DEPARTMENT OF STATE
22 CFR Part 22
[Public Notice: 11649]
RIN 1400-AF48
Schedule of Fees for Consular Services--Elimination of the
``Return Check Processing Fee''
AGENCY: Department of State.
ACTION: Final rule.
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SUMMARY: The Department of State (the Department) is adjusting the
Schedule of Fees for Consular Services (Schedule) by removing Item
Number 74, a $25 return check processing fee. Domestically, the Bureau
of Consular Affairs, Office of Passport Services (CA/PPT), has charged
customers this fee when the instruments they have used to submit
payment for a passport application could not be processed due to
insufficient funds, closed accounts, stop payments, and altered/
fictious checks or money orders. A recent review of the Department's
Cost of Service Model (CoSM) established that the costs associated with
attempts to recover on non-viable instruments are now captured within
the passport application fee. The Department therefore stopped charging
this fee on December 13, 2021, and will remove this fee from the
Schedule.
DATES: This rule is effective March 24, 2022.
FOR FURTHER INFORMATION CONTACT: Johanna Cruz, Management Analyst,
Office of the Comptroller, Bureau of Consular Affairs, Department of
State; phone: 202-485-8915, email: <a href="/cdn-cgi/l/email-protection#6c0a09091f2c1f180d1809420b031a"><span class="__cf_email__" data-cfemail="81e7e4e4f2c1f2f5e0f5e4afe6eef7">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Background
This rule makes changes to the Schedule of Fees in 22 CFR 22.1 by
removing Item Number 74, the $25 return check processing fee, from the
Schedule of Fees. This fee was added to the Schedule in 1991 to recoup
the cost of time spent by passport office personnel attempting to
recover on bad checks applicants had submitted to the Department.
According to the Passport Directorate's research, in FY 1989 there were
approximately 8,800 bad checks and money orders, which required an
estimated 5,400 staff hours to process. This fee has only been charged
domestically; overseas posts do not accept personal checks and have not
charged the fee. A recent review of the Department's CoSM established
that the costs associated with the return check processing fee are now
captured within
[[Page 16637]]
a portion of the passport application fee the Department already
charges.
What is the authority for this action?
The Department of State's general authority to set and charge fees
for consular services it provides derives from the 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.''). Various statutes permit the
Department of State to retain some of the fee revenue it collects
(e.g., passport security surcharge, immigrant visa security surcharge,
affidavit of support, etc.), but the Department of State lacks
statutory authority to retain the return check processing fee. As with
many other consular fees, all collections of this fee must be deposited
into the general fund of the Treasury pursuant to the Miscellaneous
Receipts Statute, 31 U.S.C. 3302(b). The Department likewise does not
retain the passport application fee. See 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 the filing
of each application for a passport . . . .'').
Activity-Based Costing
To set fees in accordance with the general user charges principles
set forth in 31 U.S.C. 9701, the Department must calculate the true
cost to the U.S. government of providing each consular service.
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 <a href="http://www.fasab.gov/pdffiles/sffas-4.pdf">http://www.fasab.gov/pdffiles/sffas-4.pdf</a>, the Department chose to develop its
CoSM using an Activity-Based Costing (ABC) methodology to determine the
true cost of each consular service.
The Government Accountability Office (GAO) defines ABC as a ``set
of accounting methods used to identify and describe costs and required
resources for activities within processes.'' Organizations can use the
same staff and resources (computer equipment, production facilities,
etc.) to produce multiple products or services; therefore, 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.'' The goal is to proportionally and accurately distribute
costs. ABC models require financial and accounting analysis and
modeling skills combined with a detailed understanding of an
organization's business processes. SFFAS Statement #4 provides a
detailed discussion of the use of cost accounting by the U.S.
Government.
The ABC approach focuses on the activities required to produce a
particular service or product and uses resource drivers to assign costs
through activities and activity drivers to assign costs from activities
to services. In the context of the work of the Department's Bureau of
Consular Affairs (CA), resource drivers assign costs (resources
including materials, supplies, and labor utilized in the production or
delivery of services and products) to activities using business rules
that reflect the operational reality of CA and the data available from
consular systems, surveys, and internal records. Most resource drivers
are based on time spent on each activity. Activity drivers assign the
cost of consular activities to the services CA provides. Most activity
drivers are based on volumes.
Why is the department removing this fee?
Based on feedback from CA/PPT's field offices, the Department
evaluated whether there was a need to charge the $25 return check
processing fee. Upon review, it was determined that the costs
associated with this service are now captured in the CoSM's cashiering
activity, which is accounted for in the passport application fee the
Department already charges. The Department therefore no longer needs to
charge the return check processing fee in order to recover the costs of
providing this service.
Regulatory Findings
Administrative Procedure Act
As removal of this fee constitutes a benefit, this rule is
published as a final rule under the authority of 5 U.S.C. 553(a)(2).
Since the rule is exempt from Sec. 553, this rule is effective upon
publication.
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.
Congressional Review Act
This rule is a not major rule as defined by 5 U.S.C. 804(2).
Executive Order 12866
The Department has reviewed this rule to ensure its consistency
with the regulatory philosophy and principles set forth in the
Executive Order and affirms that this regulation is consistent with the
guidance therein. The Office of Management and Budget has designated
this rule not significant for purposes of E.O. 12866.
Details of the changes to the Schedule of Fee are as follows:
Table 1--Changes to the Schedule of Fees
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Projected Estimated
annual number change in Change in Change in
Item No. Proposed fee Current fee Change in Percentage of annual fees state remittance
fee increase applications collected retained to Treasury
\1\ \2\ fees
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SCHEDULE OF FEES FOR CONSULAR SERVICES
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* * * * * * *
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ADMINISTRATIVE SERVICES
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* * * * * * *
PPT
[[Page 16638]]
* * * * * * *
74. Return Check Processing Fee....... $0 $25 ($25) (100%) 8,293 ($207,325) $0 ($207,325)
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\1\ Based on estimated FY 2021 workload calculated with 8/1/2021 actual demand.
\2\ Using FY 2021 workload to generate collections. This will be a reduction in total annual remittance to Treasury.
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
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. The authority citation for part 22 continues 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; Exec. Order 10718, 22 FR
4632 (1957); Exec. Order 11295, 31 FR 10603 (1966).
0
2. Amend Sec. 22.1 by
0
a. Revising the introductory text; and
0
b. In the table, removing and reserving entry 74.
The revision reads as follows:
Sec. 22.1 Schedule of Fees
The following table sets forth the fees for the following
categories listed on the U.S. Department of State's Schedule of Fees
for Consular Services:
* * * * *
Rena Bitter,
Assistant Secretary for Consular Affairs, Department of State.
[FR Doc. 2022-06131 Filed 3-23-22; 8:45 am]
BILLING CODE 4710-06-P
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