Schedule of Fees for Consular Services-Elimination of the “Return Check Processing Fee”, 16636-16638 [2022-06131]

Agencies

• DEPARTMENT OF STATE

[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 [www.gpo.gov]
[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: [email protected].

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 https://www.fasab.gov/pdffiles/sffas-4.pdf, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                   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
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                         SCHEDULE OF FEES FOR CONSULAR SERVICES
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                 ADMINISTRATIVE SERVICES
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
                  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