[Federal Register Volume 72, Number 157 (Wednesday, August 15, 2007)]
[Rules and Regulations]
[Pages 45636-45637]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-16177]


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DEPARTMENT OF STATE

22 CFR Part 51

RIN 1400-AC23
[Public Notice: 5894]


Rule Title: Passport Procedures--Amendment to Passport Surcharge

AGENCY: Department of State.

ACTION: Interim final rule.

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SUMMARY: This rule amends the Department of State's regulation 
implementing the requirements of the Passport Services Enhancement Act 
of 2005, amending the Passport Act of June 4, 1920, to authorize the 
Secretary of State to establish and collect a surcharge to cover the 
costs of meeting the increased demand for passports as a result of 
actions taken to comply with section 7209(b) of the Intelligence Reform 
and Terrorism Prevention Act of 2004 (IRTPA). The Passport Services 
Enhancement Act authorizes the Department of State to assess a 
surcharge on applicable fees for the filing of each passport 
application to offset its additional costs. This rule will raise the 
surcharge based on a current estimate of the increased passport demand 
due to actions taken to comply with section 7209(b) of IRTPA. The 
surcharge will continue to be collected from within the passport 
application fee and will not increase the overall current cost of the 
passport to the applicant.

DATES: Effective date: This interim rule is effective on August 15, 
2007.
    Comment period: The Department of State will accept written 
comments from interested persons up to September 14, 2007.

ADDRESSES: Interested parties may submit comments at any time by any of 
the following methods:
     E-mail: [email protected]. You must include the 
Regulatory Identification Number (RIN) in the subject line of your 
message.
     Mail: (paper, disk, or CD-ROM submissions): An original 
and three copies of comments should be sent to: Susan Bozinko, Office 
of Passport Services, Legal Affairs Division, Planning and Advisory 
Services, 2100 Pennsylvania Ave., NW., 3rd Floor, Washington, DC 20037. 
202-663-2427.
     Fax: 202-663-2499. You must include the Regulatory 
Identification Number (RIN) in the subject line of your message.

FOR FURTHER INFORMATION CONTACT: For passport issuance policy: Susan 
Bozinko, Division Chief, Office of Passport Services, Legal Affairs 
Division, 2100 Pennsylvania Ave., NW., 3rd Floor, Washington, DC 20037. 
(202) 663-2427. E-mail: [email protected]. For consular fee 
setting policy: Tracy Henderson, Director of the Budget, Bureau of 
Consular Affairs, U.S. Department of State, Suite H1004, 2401 E St., 
NW., Washington, DC 20520, or by e-mail: [email protected].

SUPPLEMENTARY INFORMATION: The Passport Services Enhancement Act (Pub. 
L. 109-167, January 10, 2006, 119 Stat. 3578) authorizes the Secretary 
of State to establish, collect, and retain a surcharge to cover the 
costs of meeting the increased demand for passports as a result of 
actions taken to comply with section 7209(b) of the Intelligence Reform 
and Terrorism Prevention Act of 2004 (Pub. L. 108-458, 8 U.S.C. 1185).
    In March 2006, the Department of State had commissioned an 
independent cost of service survey to examine the resource implications 
of the increased demand for passports under the Western Hemisphere 
Travel Initiative (WHTI), the Administration's proposal to address the 
requirements of the IRTPA, and to determine the appropriate amount of 
the surcharge. That survey estimated that uncompensated WHTI-related 
costs borne by the Department of State would reach $289 million during 
the period FY2006-FY2008. It also projected that a six-dollar surcharge 
retained by the Department of State would enable it to meet the costs 
of increased passport demand during that period. Accordingly on August 
15, 2006, the Department of State published an interim rule providing 
for a surcharge of $6 per passport application. However, the demand and 
costs proved to be greater than originally estimated and thus the 
Department now projects that uncompensated demands during the period 
FY2008 to FY 2010 will reach $944 million. The Department has therefore 
determined that to meet its increased costs, it will need to retain $20 
per passport application. Pursuant to the authority granted to the 
Secretary of State under the Passport Services Enhancement Act of 2005, 
this rule will allow the Department of State to establish, collect, and 
retain a twenty-dollar surcharge on applicable fees for the filing of 
each application for a passport, in order to address the resource 
implications of section 7209(b) of the IRTPA. That surcharge will be 
embedded in the passport application fee and will be deposited as an 
offsetting collection to the appropriate Department of State 
appropriation account. The non-surcharge portion of the passport 
application fee will be remitted to the general fund of the Treasury. 
The overall cost of the passport to the public will not increase by 
virtue of this action.
    The Department of State considers the enactment of this rule as a 
matter of urgency to help provide the funds to meet the demand created 
by the legislation for universal international traveler nationality and 
identity documentation. The Department is in the process of increasing 
its overall production capacity, improving efficiency of production and 
adjudication processes, as well as enhancing anti-fraud measures. The 
Department is also currently developing a less expensive card format 
passport for use at land border crossings.

[[Page 45637]]

Regulatory Findings

Administrative Procedure Act

    The Department is publishing this rule as an interim final rule, 
with a 30-day provision for post-promulgation public comments, based on 
the ``good cause'' exceptions set forth at 5 U.S.C. 553(b)(3)(B) and 
553(d)(3). Publishing the rule in this way, with a post-promulgation 
opportunity for comment, will allow the Department of State to make the 
rule effective at the earliest opportunity. Allowing a full 30-day 
comment period followed by a publication of the final rule with a 
further 30 days before its effective date is not practicable or in the 
public interest. That process would delay retention by the Department 
of State of the increased surcharge, urgently needed in order to cover 
the increased costs attendant to implementing the provisions of the 
Intelligence Reform and Terrorism Prevention Act of 2004 on travel to 
the United States. That law, passed in the aftermath of the September 
11, 2001 terrorist attacks, seeks to increase the national security of 
the United States by requiring all arrivals (both foreign nationals and 
U.S. citizen), even from countries where it was previously not 
required, to possess a suitably secure travel document. By expedited 
retention of the surcharge through an interim final rule, the 
Department of State will be able to fund the costs of increased 
passport demand and the production of a new, convenient card format 
passport to be introduced in fiscal year 2008.

Regulatory Flexibility Act/Executive Order 13272: Small Business

    These changes to the regulations are hereby certified as not 
expected to have a significant impact on a substantial number of small 
entities under the criteria of the Regulatory Flexibility Act, 5 U.S.C. 
601-612.

The Small Business Regulatory Enforcement Fairness Act of 1996

    This rule is not a major rule as defined by 5 U.S.C. 804, for 
purposes of congressional review of agency rulemaking under the Small 
Business Regulatory Enforcement Fairness Act of 1996, Public Law 104-
121. This rule will not result in an annual effect on the economy of 
$100 million or more; a major increase in costs or prices; or adverse 
effects on competition, employment, investment, productivity, 
innovation, or the ability of United States-based companies to compete 
with foreign based companies in domestic and import markets.

The Unfunded Mandates Reform Act of 1995

    Section 202 of the Unfunded Mandates Reform Act of 1995 (UFMA), 
Public Law 104-4; 109 Stat. 48; 2 U.S.C. 1532, generally requires 
agencies to prepare a statement before proposing any rule that may 
result in an annual expenditure of $100 million or more by State, 
local, or tribal governments, or by the private sector. This rule does 
not result in any such expenditure nor will it significantly or 
uniquely affect small governments. Therefore, no actions were deemed 
necessary.

Executive Order 13132: Federalism

    The Department of State finds that this regulation will not have 
substantial direct effects on the States, on the relationship between 
the national government and the States, or the distribution of power 
and responsibilities among the various levels of government. Nor does 
the rule have federalism implications warranting the application of 
Executive Orders No. 12372 and No. 13132.

Executive Order 12866: Regulatory Review

    The Department of State has reviewed this interim final rule to 
ensure its consistency with the regulatory philosophy and principles 
set forth in Executive Order 12866. The Office of Management and Budget 
(OMB) has determined that this rule has important policy implications 
and is significant. This rule has been provided to OMB for review.

Executive Order 12988: Civil Justice Reform

    The Department has reviewed the regulations in light of sections 
3(a) and 3(b)(2) of Executive Order No. 12988 to eliminate ambiguity, 
minimize litigation, establish clear legal standards, and reduce 
burden.

The Paperwork Reduction Act of 1995

    This rule does not impose information collection requirements under 
the provisions of the Paperwork Reduction Act, 44 U.S.C., Chapter 35.

List of Subjects in 22 CFR Part 51

    Administrative practice and procedure, Drug traffic control, 
Passports and Visas.

0
Accordingly, for the reason set forth above, 22 CFR part 51 is amended 
as follows:

PART 51--PASSPORTS

0
1. The authority citation for part 51 is continues to read as follows:

    Authority: 8 U.S.C. 1153 note, 1351, 1351 note; 10 U.S.C. 
2602(c); 22 U.S.C. 214, 2504(a), 4201, 4206, 4215, 4219; 31 U.S.C. 
9701; Pub. L. 105-277, 112 Stat. 2681 et seq.; Pub. L. 109-167, 119 
Stat. 3578; Pub. L. 108-447, 118 Stat. 2809 et seq.; E.O. 10718, 22 
FR 4632, 3 CFR, 1954-1958 Comp., p. 382; E.O. 11295, 31 FR 10603, 3 
CFR, 1966-1970 Comp., p. 570.


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2. Section 51.61(b) is amended to read as follows:


Sec.  51.61  Passport fees.

* * * * *
    (b) A surcharge of twenty dollars on the filing of each application 
for a passport in order to cover the costs of meeting the increased 
demand for passports as a result of actions taken to comply with 
section 7209(b) of the Intelligence Reform and Terrorism Prevention Act 
of 2004 (8 U.S.C. 1165 note). The surcharge will be recovered by the 
Department of State from within the passport fee reflected in Schedule 
of Consular Fees.
* * * * *

    Dated: August 10, 2007.
Henrietta Fore,
Under Secretary for Management, Department of State.
 [FR Doc. E7-16177 Filed 8-14-07; 8:45 am]
BILLING CODE 4710-06-P