[Federal Register Volume 81, Number 86 (Wednesday, May 4, 2016)]
[Proposed Rules]
[Pages 26904-26940]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-10297]



[[Page 26903]]

Vol. 81

Wednesday,

No. 86

May 4, 2016

Part III





Department of Homeland Security





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8 CFR Parts 103 and 204





U.S. Citizenship and Immigration Services Fee Schedule; Proposed Rule

  Federal Register / Vol. 81 , No. 86 / Wednesday, May 4, 2016 / 
Proposed Rules  

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DEPARTMENT OF HOMELAND SECURITY

8 CFR Parts 103 and 204

[CIS No. 2577-15; DHS Docket No. USCIS-2016-0001]
RIN 1615-AC09


U.S. Citizenship and Immigration Services Fee Schedule

AGENCY: U.S. Citizenship and Immigration Services, DHS.

ACTION: Proposed rule.

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SUMMARY: The Department of Homeland Security (DHS) proposes to adjust 
certain immigration and naturalization benefit request fees charged by 
U.S. Citizenship and Immigration Services (USCIS). USCIS conducted a 
comprehensive fee review, after refining its cost accounting process, 
and determined that current fees do not recover the full costs of the 
services it provides. Adjustment to the fee schedule is necessary to 
fully recover costs for USCIS services and to maintain adequate 
service. DHS proposes to increase USCIS fees by a weighted average of 
21 percent and add one new fee. In addition, DHS proposes to clarify 
that persons filing a benefit request may be required to appear for 
biometrics services or an interview and pay the biometrics services 
fee, and make a number of other changes.

DATES: Written comments must be submitted on or before July 5, 2016.

ADDRESSES: You may submit comments, identified by DHS Docket No. USCIS-
2016-0001, by one of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow this site's instructions for submitting comments.
     Email: You may email comments directly to USCIS at 
[email protected]. Include DHS Docket No. USCIS-2016-0001 in the 
subject line of the message.
     Mail: You may submit comments directly to USCIS by mailing 
them to Samantha Deshommes, Acting Chief, Regulatory Coordination 
Division, Office of Policy and Strategy, U.S. Citizenship and 
Immigration Services, Department of Homeland Security, 20 Massachusetts 
Avenue NW., Washington, DC 20529-2020. To ensure proper handling, 
please reference DHS Docket No. USCIS-2016-0001 on your correspondence. 
This mailing address may be used for paper or CD-ROM submissions.
     Hand Delivery/Courier: You may submit comments directly to 
USCIS by having them delivered to Samantha Deshommes, Acting Chief, 
Regulatory Coordination Division, Office of Policy and Strategy, U.S. 
Citizenship and Immigration Services, Department of Homeland Security, 
20 Massachusetts Avenue NW., Washington, DC 20529-2020. The contact 
telephone number is (202) 272-8377.

FOR FURTHER INFORMATION CONTACT: Joseph D. Moore, Chief Financial 
Officer, U.S. Citizenship and Immigration Services, Department of 
Homeland Security, 20 Massachusetts Avenue NW., Washington, DC 20529-
2130, telephone (202) 272-1969.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Public Participation
II. Executive Summary
III. Background
    A. Legal Authority and Guidance
    B. Full Cost Recovery
    C. New Statutory Fees for Certain H-1B and L-1 Petitions
IV. The Immigration Examinations Fee Account
    A. General Background
    B. Fee Review History
    C. USCIS Initiatives Funded Under the 2010 Fee Adjustment
    D. Processing Time Outlook
V. FY 2016/2017 Immigration Examinations Fee Account Fee Review
    A. Overall Approach
    B. Basis for Fee Schedule
    1. Costs
    2. Revenue
    3. No Discretionary Appropriations for RAIO, SAVE, Office of 
Citizenship, or Military Naturalization Costs
    4. New Fee for Annual Certification of Regional Center, Form I-
924A
    5. Summary
VI. Fee Review Methodology
    A. Background
    1. ABC Methodology
    2. Continuing Low Volume Reallocation From FY 2010/2011 Fee Rule
    3. Applying Cost Reallocation to Other Form Types
    4. Reduced Fee for Application for Naturalization
    5. Holding the Biometric Services Fee at Its Current Level
    6. Continuing To Hold the Refugee Travel Document Fee to the 
Department of State Passport Fee
    7. Holding the Fee for a Petition by Entrepreneur To Remove 
Conditions (Form I-829) at Its Current Level
    B. Changes for the FY 2016/2017 Fee Review
    1. Interim Benefits
    2. I-485 Fee for Child Under 14, Filing With Parent
    3. One Fee for a Genealogy Records Request
    4. Dishonored Payments and Failure To Pay the Biometrics 
Services Fee
    5. Refunds
    C. Fee-Related Issues Noted for Consideration
    1. Premium Processing
    2. Accommodating E-Filing and Form Flexibility
    3. Fee Waivers
VII. Volume
    A. Workload Volume and Volume Projection Committee
    B. Fee-Paying Volume and Methodology
VIII. Completion Rates
IX. Proposed Fee Adjustments to Immigration Examinations Fee Account 
Immigration Benefits
X. Statutory and Regulatory Reviews
    A. Regulatory Flexibility Act
    B. Unfunded Mandates Reform Act
    C. Small Business Regulatory Enforcement Fairness Act
    D. Congressional Review Act
    E. Executive Orders 12866 and 13563 (Regulatory Planning and 
Review)
    F. Executive Order 13132 (Federalism)
    G. Executive Order 12988 (Civil Justice Reform)
    H. Paperwork Reduction Act

List of Acronyms and Abbreviations

ABC Activity-Based Costing
BLS Bureau of Labor Statistics
CFO Chief Financial Officer
CNMI Commonwealth of the Northern Mariana Islands
CPI Consumer Price Index
DACA Deferred Action for Childhood Arrivals
DOD Department of Defense
DHS Department of Homeland Security
DOL Department of Labor
DOS Department of State
EB-5 Employment-Based Immigrant Visa, Fifth Preference
EIN Employer Identification Number
FASAB Federal Accounting Standards Advisory Board
FBI Federal Bureau of Investigation
FOIA Freedom of Information Act
FY Fiscal Year
GAO Government Accountability Office
IEFA Immigration Examinations Fee Account
INA Immigration and Nationality Act of 1952
IPO Investor Program Office
IOAA Independent Offices Appropriations Act
NACARA Nicaraguan Adjustment and Central American Relief Act
NAICS North American Industry Classification System
OMB Office of Management and Budget
RAIO Refugee, Asylum, and International Operations Directorate
RFA Regulatory Flexibility Act
SAVE Systematic Alien Verification for Entitlements
SBA Small Business Administration
TPS Temporary Protected Status
UMRA Unfunded Mandates Reform Act
USCIS U.S. Citizenship and Immigration Services
USPHS U.S. Public Health Service
VPC Volume Projection Committee

I. Public Participation

    DHS invites you to participate in this rulemaking by submitting 
written data, views, or arguments on all aspects of this proposed rule. 
Comments providing

[[Page 26905]]

the most assistance to DHS will reference a specific portion of the 
proposed rule, explain the reason for any recommended change, and 
include data, information, or authority that supports the recommended 
change.
    Instructions: All submissions should include the agency name and 
DHS Docket No. USCIS-2016-0001 for this rulemaking. Providing comments 
is entirely voluntary. Regardless of how you submit your comment to 
DHS, all submissions will be posted, without change, to the Federal 
eRulemaking Portal at http://www.regulations.gov and will include any 
personal information you provide. Because the information you submit 
will be publicly available, you should consider limiting the amount of 
personal information in your submission. DHS may withhold information 
provided in comments from public viewing if DHS determines that such 
information is offensive or may affect the privacy of an individual. 
For additional information, please read the Privacy Act notice 
available through the link in the footer of http://www.regulations.gov.
    Docket: For access to the docket, go to http://www.regulations.gov 
and enter this rulemaking's eDocket number: USCIS-2016-0001. The docket 
includes additional documents that support the analysis contained in 
this proposed rule to determine the specific fees that are proposed. 
These documents include:
     Fiscal Year (FY) 2016/2017 Immigration Examinations Fee 
Account Fee Review Supporting Documentation; and
     Small Entity Analysis for Adjustment of the U.S. 
Citizenship and Immigration Services Fee Schedule notice of proposed 
rulemaking (NPRM).
    You may review these documents on the electronic docket. The 
software \1\ used in computing the immigration benefit request fees \2\ 
and biometric fees \3\ is a commercial product licensed to USCIS that 
may be accessed on-site, by appointment, by calling (202) 272-1969.\4\
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    \1\ USCIS uses commercially available activity-based costing 
software, SAP Business Objects Profitability and Cost Management, to 
create financial models to implement activity-based costing (ABC), 
as described in the ABC Methodology section.
    \2\ Benefit request means any application, petition, motion, 
appeal, or other request relating to an immigration or 
naturalization benefit, whether such request is filed on a paper 
form or submitted in an electronic format, provided such request is 
submitted in a manner prescribed by DHS for such purpose. 8 CFR 1.2.
    \3\ DHS uses the terms biometric fees, biometric services fees, 
and biometric fee synonymously in this rule to describe the process 
and fee for capturing, storing, or using biometrics.
    \4\ This rule describes the ABC model and key inputs to that 
model (total budget, workload estimates, staffing, and completion 
rates), both here and in the supporting documentation in the docket.
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II. Executive Summary

    DHS proposes to adjust its fee schedule, which specifies the amount 
of the fee charged for each immigration and naturalization benefit 
request. The fee schedule was last adjusted on November 23, 2010. See 
75 FR 58962 (Sept. 24, 2010) (final rule) (FY 2010/2011 Fee Rule).
    U.S. Citizenship and Immigration Services (USCIS) is primarily 
funded by immigration and naturalization benefit request fees charged 
to applicants and petitioners. Fees collected from individuals and 
entities filing immigration benefit requests are deposited into the 
Immigration Examinations Fee Account (IEFA) and used to fund the cost 
of processing immigration benefit requests.
    In accordance with the requirements and principles of the Chief 
Financial Officers Act of 1990, 31 U.S.C. 901-03, (CFO Act), and Office 
of Management and Budget (OMB) Circular A-25, USCIS reviews the fees 
deposited into the IEFA biennially and, if necessary, proposes 
adjustments to ensure recovery of costs necessary to meet national 
security, customer service, and adjudicative processing goals. USCIS 
completed a biennial fee review for FY 2016/2017 in 2015. The results 
indicate that current fee levels are insufficient to recover the full 
cost of activities funded by the IEFA.
    USCIS calculates its fees to recover the full cost of USCIS 
operations, which do not include the limited appropriated funds 
provided by Congress. USCIS anticipates if it continues to operate at 
current fee levels, it will experience an average annual shortfall of 
$560 million between IEFA revenues and costs. This projected shortfall 
poses a risk of degrading USCIS operations funded by IEFA revenue. The 
proposed rule would eliminate this risk by ensuring full cost recovery. 
DHS proposes to adjust fees by a weighted average increase of 21 
percent. The weighted average increase is the percentage difference 
between the current and proposed fees by immigration benefit type.\5\ 
USCIS discusses the overall increase proposed in this rule in terms of 
weighted average, as opposed to a straight average, because the figure 
represents a more accurate depiction of the overall effect that this 
proposed rule would have on fee revenue.
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    \5\ USCIS uses weighted average as opposed to a straight average 
because of the difference in volume by immigration benefit type and 
the resulting effect on fee revenue. See the FY 2016/2017 
Immigration Examinations Fee Account Fee Review Supporting 
Documentation for further information. The 21% weighted average 
increase is a change in the average fee that must be paid per filing 
for a form that currently requires a fee as compared to the average 
that would have to be paid per form as proposed in this rule. The 
sum of the current fees multiplied by the projected FY 2016/2017 fee 
paying receipts by immigration benefit type, divided by the total 
fee paying receipts = $332. The sum of the proposed fees multiplied 
by the projected FY 2016/2017 receipts by immigration benefit type, 
divided by the fee paying receipts = $403. There is a $71 difference 
between these two averages, or 21%.
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    In addition to ensuring that fees for each specific benefit type 
are adequate to cover the USCIS costs associated with administering the 
benefit, the weighted average increase of 21 percent also accounts for 
USCIS costs for services that are not directly fee funded. For 
instance, DHS proposes certain changes to how USCIS funds the costs for 
fee-exempt benefit types through IEFA fee collections received from 
other fee-paying individuals seeking immigration benefits.\6\ DHS also 
proposes to fund the costs of the Systematic Alien Verification for 
Entitlements (SAVE) program (to the extent not recovered from 
users),\7\ and the Office of Citizenship \8\ through the use of fees. 
The proposed fee schedule also accounts for increased costs to 
administer refugee processing. Revenues under the proposed rule would 
accommodate an anticipated increase in the refugee admissions ceiling 
to 100,000 for FY 2017. This is an increase of 30,000, or 43 percent, 
over the FY 2015 refugee admissions ceiling.
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    \6\ USCIS does not charge a fee for military naturalizations, as 
the Department of Defense (DOD) currently reimburses USCIS for costs 
related to such naturalizations. Accordingly, USCIS does not propose 
to increase fees to cover the costs of military naturalizations.
    \7\ The SAVE program was established in 1987 by the Immigration 
Reform and Control Act (IRCA), Pub. L. 99-603, Sec.  121(c) (Nov. 6, 
1986), which required the Commissioner of the Immigration and 
Naturalization Service (INS) to ``implement a system for the 
verification of immigration status . . . so that the system is 
available to all States by not later than October 1, 1987.'' SAVE 
uses an internet-based service to assist Federal, state and local 
benefit-issuing and licensing agencies, and other governmental 
entities, in determining the immigration status of benefit or 
license applicants, so that only those applicants entitled to 
benefits or licenses receive them.
    \8\ The USCIS Office of Citizenship was established by section 
451(f) of the Homeland Security Act of 2002. Pub. L. 107-296, Sec.  
451(f) (2002). The statute tasks the office with ``promoting 
instruction and training on citizenship responsibilities for aliens 
interested in becoming naturalized citizens.''
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    In addition to the overall increase to existing fees, DHS proposes 
to establish a new fee of $3,035 to recover the full cost of processing 
the Employment Based Immigrant Visa, Fifth Preference

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(EB-5) Annual Certification of Regional Center, Form I-924A.\9\ While 
approved EB-5 Regional Centers are required to file Form I-924A 
annually, there is currently no filing fee and as a result, DHS does 
not fully recover the processing costs associated with such filings. 
DHS therefore proposes to establish a filing fee for this form.
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    \9\ This rule proposes to change the title of Form I-924A from 
``Supplement to Form I-924'' to ``Annual Certification of Regional 
Center.''
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    DHS also proposes to establish a three-level fee for the 
Application for Naturalization (Form N-400). First, DHS would increase 
the standard fee for Form N-400 from $595 to $640. Second, DHS would 
continue to charge no fee to an applicant who meets the requirements of 
sections 328 or 329 of the Immigration and Nationality Act of 1952 
(INA) with respect to military service and applicants with approved fee 
waivers. Third, DHS would charge a reduced fee of $320 for 
naturalization applicants with family income greater than 150 percent 
and not more than 200 percent of the Federal Poverty Guidelines. DHS is 
proposing this change to increase access to United States citizenship.
    DHS also proposes to remove regulatory provisions that prevent 
USCIS from rejecting an immigration or naturalization benefit request 
paid with a dishonored check or lacking the required biometric services 
fee until the remitter has been provided an opportunity to correct the 
deficient payment. Finally, DHS proposes to clarify that persons filing 
any benefit request may be required to appear for biometrics services 
or an interview and may be required to pay the biometrics services fee.

III. Background

A. Legal Authority and Guidance

    DHS issues this proposed rule consistent with INA section 286(m), 8 
U.S.C. 1356(m) (authorizing DHS to charge fees for adjudication and 
naturalization services at a level to ``ensure recovery of the full 
costs of providing all such services, including the costs of similar 
services provided without charge to asylum applicants or other 
immigrants'' \10\), and the CFO Act, 31 U.S.C. 901-03 (requiring each 
agency's Chief Financial Officer (CFO) to review, on a biennial basis, 
the fees imposed by the agency for services it provides, and to 
recommend changes to the agency's fees).
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    \10\ The longstanding interpretation of DHS is that the 
``including'' clause in section 286(m) does not constrain DHS's fee 
authority under the statute. The ``including'' clause offers only a 
non-exhaustive list of some of the costs that DHS may consider part 
of the full costs of providing adjudication and naturalization 
services.
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    This proposed rule is also consistent with non-statutory guidance 
on fees, the budget process, and federal accounting principles. See OMB 
Circular A-25, available at http://www.whitehouse.gov/omb/circulars_a025/, 58 FR 38142 (July 15, 1993) (establishing federal 
policy guidance regarding fees assessed by federal agencies for 
government services); Federal Accounting Standards Advisory Board 
(FASAB) Handbook, Version 14 (06/15), SFFAS 4, No. 37, available at 
http://files.fasab.gov/pdffiles/handbook_sffas_4.pdf (generally 
describing cost accounting concepts and standards, and defining ``full 
cost'' to include ``direct and indirect costs that contribute to the 
output, regardless of funding sources.''); id. at 33-42 (identifying 
various classifications of costs to be included and recommending 
various methods of cost assignment); see also OMB Circular A-11, 
Preparation, Submission, and Execution of the Budget, section 20.7(d), 
(g) (June 30, 2015)), available at www.whitehouse.gov/sites/default/files/omb/assets/a11_current_year/a11_2015.pdf (providing guidance on 
the FY 2017 Budget and instructions on budget execution, offsetting 
collections, and user fees). DHS uses OMB Circular A-25 as general 
policy guidance for determining user fees for immigration benefit 
requests, with exceptions as outlined below. DHS also follows the 
annual guidance in OMB Circular A-11 if it requests appropriations to 
offset a portion of IEFA costs.\11\
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    \11\ OMB Circulars A-25 and A-11 provide nonbinding internal 
Executive Branch direction for the development of fee schedules 
under the Independent Offices Appropriations Act (IOAA) and 
appropriations requests, respectively. See 5 CFR 1310.1. Although 
DHS is not required to strictly adhere to these OMB circulars in 
setting USCIS fees, DHS used the activity-based costing (ABC) 
methodology supported in Circulars A-25 and A-11 to develop the 
proposed fee schedule.
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    Finally, this rule accounts for and is consistent with 
congressional appropriations for specific USCIS programs. Appropriated 
funding for USCIS for FY 2016 provided funding only for the E-Verify 
employment eligibility verification program in the amount of $119.7 
million. See Consolidated Appropriations Act, 2016, Public Law 114-113, 
div. F, tit. IV (Dec. 18, 2015) (DHS Appropriations Act 2016).

B. Full Cost Recovery

    Consistent with the aforementioned authorities and sources, this 
proposed rule would ensure that USCIS recovers the full costs for its 
services and maintains an adequate level of service. The proposed rule 
would do this in two ways. First, where possible, the proposed rule 
would set fees at levels sufficient to cover the full cost of the 
corresponding services.\12\ DHS works with OMB and generally follows 
OMB Circular A-25, which ``establishes federal policy regarding fees 
assessed for Government services and for sale or use of Government 
goods or resources.'' See OMB Circular A-25, User Charges (Revised), 
para. 6, 58 FR 38142 (July 15, 1993). A primary objective of OMB 
Circular A-25 is to ensure that federal agencies recover the full cost 
of providing specific services to users and associated costs. See id., 
para. 5. Full costs include, but are not limited to, an appropriate 
share of:
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    \12\ INA section 286(m), 8 U.S.C. 1356(m), provides broader fee-
setting authority and is an exception from the stricter costs-for-
services-rendered requirements of the Independent Offices 
Appropriations Act, 1952, 31 U.S.C. 9701(c) (IOAA). See Seafarers 
Int'l Union of N. Am. v. U.S. Coast Guard, 81 F.3d 179 (D.C. Cir. 
1996) (IOAA provides that expenses incurred by agency to serve some 
independent public interest cannot be included in cost basis for a 
user fee, although agency is not prohibited from charging applicant 
full cost of services rendered to applicant which also results in 
some incidental public benefits). Congress initially enacted 
immigration fee authority under the IOAA. See Ayuda, Inc. v. 
Attorney General, 848 F.2d 1297 (D.C. Cir. 1988). Congress 
thereafter amended the relevant provision of law to require deposit 
of the receipts into the separate Immigration Examinations Fee 
Account of the Treasury as offsetting receipts to fund operations, 
and broadened the fee-setting authority. Departments of Commerce, 
Justice, and State, the Judiciary, and Related Agencies 
Appropriations Act, 1991, Public Law 101-515, sec. 210(d), 104 Stat. 
2101, 2111 (Nov. 5, 1990). Additional values are considered in 
setting Immigration Examinations Fee Account fees that would not be 
considered in setting fees under the IOAA. See 72 FR at 29866-7.
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     Direct and indirect personnel costs, including salaries 
and fringe benefits such as medical insurance and retirement;
     Physical overhead, consulting, and other indirect costs, 
including material and supply costs, utilities, insurance, travel, and 
rents or imputed rents on land, buildings, and equipment;
     Management and supervisory costs; and
     The costs of enforcement, collection, research, 
establishment of standards, and regulation. Id.
    Second, this proposed rule would set fees at a level sufficient to 
fund overall requirements and general operations when no annual 
appropriations are received, fees are statutorily set at a level that 
does not recover costs, or DHS determines that a type of immigration 
benefit request should be exempt, in whole or in part, from payment of 
fees. As noted, Congress has provided that USCIS may set fees for 
providing

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adjudication and naturalization services at a level that will ensure 
recovery of the full costs of providing all such services, including 
the costs of similar services provided without charge to asylum 
applicants or other immigrants. See INA section 286(m), 8 U.S.C. 
1356(m).\13\ DHS has interpreted this statutory fee-setting authority, 
including the authorization for DHS to collect ``full costs'' for 
providing ``adjudication and naturalization services,'' as granting DHS 
broad discretion to include costs other than OMB Circular A-25 
generally provides. See OMB Circular A-25, para. 6d1; INA section 
286(m), 8 U.S.C. 1356(m). In short, DHS may charge fees at a level that 
will ensure recovery of all direct and indirect costs associated with 
providing immigration adjudication and naturalization services.\14\
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    \13\ Congress has provided separate but similar authority for 
establishing USCIS genealogy program fees. See INA section 286(t), 8 
U.S.C. 1356(t). The statute requires that genealogy program fees be 
deposited into the Examinations Fee Account and that the fees for 
such research and information services may be set at a level that 
will ensure the recovery of the full costs of providing all such 
services. Id. The methodology for calculating the genealogy program 
fees is discussed in a separate section later in this preamble.
    \14\ Congress has not defined either term with any degree of 
specificity for purposes of subsections (m) and (n). See, e.g., 
Barahona v. Napolitano, No. 10-1574, 2011 WL 4840716, at **6-8 
(S.D.N.Y. Oct. 11, 2011) (``While the term `full costs' appears 
self-explanatory, section 286(m) contains both silence and ambiguity 
concerning the precise scope that `full costs' entails in this 
context.''); see also King v. Burwell, 135 S. Ct. 2480, 2489 (2015) 
(``[O]ftentimes the `meaning--or ambiguity--of certain words or 
phrases may only become evident when placed in context.' So when 
deciding whether the language is plain, we must read the words `in 
their context and with a view to their place in the overall 
statutory scheme.' '') (quoting FDA v. Brown & Williamson Tobacco 
Corp., 529 U.S. 120, 132-33 (2000)).
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    Consistent with this historical position, this proposed rule would 
set fees at a level that will ensure recovery of the full operating 
costs of USCIS, the entity within DHS that provides almost all 
immigration adjudication and naturalization services. See Homeland 
Security Act (HSA), Public Law 107-296, sec. 451, 116 Stat. 2142 (Nov. 
26, 2002) (6 U.S.C. 271). The statute authorizes recovery of the full 
costs of providing immigration adjudication and naturalization 
services. Congress has historically relied on this authority to support 
the vast majority of USCIS programs and operations, which are conducted 
as part of adjudication and naturalization service delivery. This 
conclusion is supported by Congress' historical appropriations to 
USCIS. USCIS receives only a small amount of appropriated funds 
annually, and the agency must use other means to fund, as a matter of 
both discretion and necessity, all other USCIS operations.
    Thus, for example, certain functions (such as SAVE \15\ and the 
Office of Citizenship \16\), that USCIS has administered since DHS's 
inception as an integrated part of fulfilling USCIS's statutory 
responsibility to provide immigration adjudication and naturalization 
services, are not associated with specific fees, but may be IEFA-
funded. Similarly, when a filing fee for a benefit such as Temporary 
Protected Status (TPS), capped by statute at $50, does not cover the 
cost of adjudicating these benefit requests, DHS may recover the 
difference with fees charged to other benefit requests. See INA section 
244(c)(1)(B), 8 U.S.C. 1254a(c)(1)(B); 8 CFR 103.7(b)(1)(i)(MM); 
proposed 8 CFR 103.7(b)(1)(i)(NN). Finally, when DHS exempts certain 
foreign nationals from visa fees--for example, victims who assist law 
enforcement in the investigation or prosecution of acts of human 
trafficking (T nonimmigrant status) or certain other crimes (U 
nonimmigrant status)--the cost of processing those fee-exempt visas 
must be recovered by fees charged to other benefit requests. See, e.g., 
proposed 8 CFR 103.7(b)(1)(i)(UU)-(VV).
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    \15\ SAVE has been funded almost exclusively by user fees and 
IEFA funds, as Congress has not provided any direct appropriated 
funds for the program since FY 2007. SAVE provides an ``immigration 
adjudication . . . service'' under sections 286(m) and (n) of the 
INA to Federal, state and local agencies who require immigration 
adjudication information in administering their benefits.
    \16\ The Office of Citizenship was created in the HSA at the 
same time as several other mission essential USCIS offices, such as 
those for legal, budget and policy. Like those offices, the Office 
of Citizenship has always been considered an essential part of the 
``adjudication and naturalization services'' USCIS provides under 
sections 286(m) and (n) of the INA. An integral part of providing 
such services, as Congress recognized in creating the Citizenship 
office in section 451(f) of the INA, includes providing information 
to potential applicants for naturalization regarding the process of 
naturalization and related activities.
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    In short, the full costs of USCIS operations cannot be as directly 
correlated or connected to a specific fee as OMB Circular A-25 advises. 
Nonetheless, DHS follows OMB Circular A-25 to the extent appropriate, 
including its direction that fees should be set to recover the costs of 
an agency's services in their entirety and that full costs are 
determined based upon the best available records of the agency. Id. DHS 
therefore applies the discretion provided in INA section 286(m), 8 
U.S.C. 1356(m), to: (1) Use ABC to establish a model for assigning 
costs to specific benefit requests in a manner reasonably consistent 
with OMB Circular A-25; (2) distribute costs that are not attributed to 
or driven by specific adjudication and naturalization services; \17\ 
and (3) make additional adjustments to effectuate specific policy 
objectives.\18\
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    \17\ The ABC model distributes indirect costs. Costs that are 
not assigned to specific fee-paying immigration benefit requests are 
reallocated to other fee-paying immigration benefit requests outside 
the model. For example, the model determines the direct and indirect 
costs for refugee and asylum workload. The costs associated with 
processing the refugee and asylum workload are reallocated outside 
the model to other fee-paying immigration benefit requests.
    \18\ DHS may reasonably adjust fees based on value judgments and 
public policy reasons where a rational basis for the methodology is 
propounded in the rulemaking. See FCC v. Fox Television Stations, 
Inc., 556 U.S. 502, 515 (2009); Motor Vehicle Mfrs. Ass'n v. State 
Farm Mut. Auto. Ins. Co., 463 U.S. 29 (1983).
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    By approving the DHS annual appropriations that provide very 
limited funds to USCIS, Congress has consistently recognized that the 
``full'' cost of operating USCIS, including SAVE and the Office of 
Citizenship, less any appropriated funding, is the appropriate cost 
basis for establishing IEFA fees. Nevertheless, in each biennial 
review, DHS adds refinements to its determination of immigration 
benefit fees, including the level by which fees match directly 
assignable, associated, and indirect costs.

C. New Statutory Fees for Certain H-1B and L-1 Petitions

    The James Zadroga 9/11 Victim Compensation Fund Reauthorization Act 
increased Fees For Certain H-1B \19\ And L-1 \20\ Visa Petitioners. See 
Consolidated Appropriations Act, 2016, Public Law 114-113, div. O, tit. 
IV, sec. 402 (Dec. 18, 2015). These petitioners must submit an 
additional fee of $4,000 for certain H-1B petitions and $4,500 for 
certain L-1A and L-1B petitions postmarked on or after December 18, 
2015. Proposed 8 CFR 103.7(b)(1)(i)(III)-(JJJ).
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    \19\ The H-1B nonimmigrant classification allows U.S. employers 
to temporarily employ foreign workers in the United States to 
perform services in a specialty occupation, services of an 
exceptional nature relating to a Department of Defense cooperative 
research and development project, or services as a fashion model of 
distinguished merit or ability. INA section 101(a)(15)(H), 8 U.S.C. 
1101(a)(15)(H).
    \20\ L-1 petitions are filed to transfer individuals who are 
employed outside the United States as executives or managers, or in 
positions that require specialized knowledge, to a position with the 
same or a related entity inside the United States. INA section 
101(a)(15)(L), 8 U.S.C. 1101(a)(15)(L).
---------------------------------------------------------------------------

    The additional fees apply to petitioners who employ 50 or more 
employees in the United States, with more than 50 percent of those 
employees in H-1B or L-1 (including L-1A and L-1B) nonimmigrant status.

[[Page 26908]]

These petitioners must submit the additional fees with an H-1B or L-1 
petition filed:
     Initially to grant status to a nonimmigrant described in 
subparagraph (H)(i)(b) or (L) of section 101(a)(15) of the Immigration 
and Nationality Act; or
     To obtain authorization for a nonimmigrant in such status 
to change employers.
    USCIS began rejecting petitions after February 11, 2016 that do not 
include the additional Public Law 114-113 fee, if applicable. This fee 
is in addition to the Petition for a Nonimmigrant Worker (Form I-129) 
fee, the Fraud Prevention and Detection Fee, and the American 
Competitiveness and Workforce Improvement Act of 1998 fee (when 
required), as well as the premium processing fee (if applicable). These 
fees, when applicable, may not be waived. Public Law 114-113 fees will 
remain effective through September 30, 2025.
    USCIS collects this revenue, but does not spend it. One half of the 
revenue collected from such fees goes to the General Fund of the 
Treasury. The other half is deposited by DHS into the 9-11 Response and 
Biometric Exit Account to fund a biometric entry-exit data system to 
track the lawful entrance and departure of all noncitizens at U.S. 
airports and land border crossings. After a total of $1,000,000,000 is 
deposited into the 9-11 Response and Biometric Exit Account, further 
revenue will be deposited in the general fund of the Treasury. The 
funds in the 9-11 Response and Biometric Exit Account will remain 
available until expended to U.S. Customs and Border Protection and/or 
other DHS components to implement the biometric entry-exit data system.
    USCIS is already collecting these new statutory fees and is in the 
process of revising the instructions for the Petition for a 
Nonimmigrant Worker, Form I-129, and the Nonimmigrant Petition Based on 
Blanket L Petition, Form I-129S, to include them. DHS is required to 
charge these fees and has no authority to change them. DHS is proposing 
to publish these new statutory fees in the interest of transparency, 
information and clarity.

IV. The Immigration Examinations Fee Account

A. General Background

    In 1988, Congress established the IEFA in the Treasury of the 
United States. See Public Law 100-459, sec. 209, 102 Stat. 2186 (Oct. 
1, 1988) (codified as amended at INA sections 286(m) and (n), 8 U.S.C. 
1356(m) and (n)). Fees deposited into the IEFA fund the provision of 
immigration adjudication and naturalization services. In subsequent 
legislation, Congress directed that the IEFA also fund the cost of 
asylum processing and other services provided to immigrants at no 
charge. See Public Law 101-515, sec. 210(d)(1) and (2), 104 Stat. 2101, 
2121 (Nov. 5, 1990). Consequently, the immigration benefit fees were 
increased to recover these additional costs. See 59 FR 30520 (June 14, 
1994).

B. Fee Review History

    Most recently, DHS published a revised USCIS fee schedule in its 
2010/2011 Fee Rule that amended many USCIS fees to more accurately 
reflect the costs of services provided by USCIS. 75 FR 58962 (Sept. 24, 
2010).\21\ The rule was effective on November 23, 2010. The Department 
of Justice \22\ also adjusted fees incrementally in 1994, and DHS 
adjusted fees in 2002, 2004, and 2005. See 59 FR 30520 (June 14, 1994); 
66 FR 65811 (Dec. 21, 2001); 69 FR 20528 (Apr. 15, 2004); 70 FR 56182 
(Sept. 26, 2005). After a decade of incremental changes, DHS published 
a comprehensive Fee Rule in 2007. See 72 FR 29851 (May 30, 2007). The 
documentation accompanying this proposed rule in the rulemaking docket 
at www.regulations.gov contains a historical fee schedule that shows 
the immigration benefit fee history since FY 1985.
---------------------------------------------------------------------------

    \21\ The phrase ``FY 2010/2011 Fee Rule,'' as used in this 
proposed rule, encompasses the proposed rule, final rule, fee study, 
and all supporting documentation associated with the regulations 
effective as of November 23, 2010.
    \22\ The Homeland Security Act of 2002 abolished the Immigration 
and Naturalization Service (INS) and transferred the INS's 
immigration administration and enforcement responsibilities from the 
Department of Justice to DHS. The INS's immigration and citizenship 
services functions were specifically transferred to the Bureau of 
Citizenship and Immigration Services, later renamed U.S. Citizenship 
and Immigration Services. See Public Law 107-296, Sec.  451; 6 
U.S.C. 271.
---------------------------------------------------------------------------

    USCIS reviews the IEFA every 2 years as required by the CFO Act and 
consistent with guidance in OMB Circular A-25. 31 U.S.C. 902(a)(8); OMB 
Circular A-25, section 8e. The CFO Act and OMB Circular A-25 require 
that fees be reviewed biennially so that fee-funded agencies monitor 
and adjust their fees in light of actual and projected expenses. Id.
    Table 1 sets out the IEFA and biometric services fee schedule that 
took effect on November 23, 2010. DHS is proposing to change the fee 
schedule as a result of the 2016/2017 Fee Review. The table excludes 
statutory fees that DHS cannot adjust.

  Table 1--Current Non-Statutory IEFA Immigration Benefit Request Fees
------------------------------------------------------------------------
        Form No.\23\                     Title                  Fee
------------------------------------------------------------------------
G-1041......................  Genealogy Index Search                 $20
                               Request.
G-1041A.....................  Genealogy Records Request               20
                               (Copy from Microfilm).
G-1041A.....................  Genealogy Records Request               35
                               (Copy from Textual
                               Record).
I-90........................  Application to Replace                 365
                               Permanent Resident Card.
I-102.......................  Application for                        330
                               Replacement/Initial
                               Nonimmigrant Arrival-
                               Departure Document.
I-129.......................  Petition for a                         325
                               Nonimmigrant Worker.
I-129F......................  Petition for Alien                     340
                               Fianc[eacute](e).
I-130.......................  Petition for Alien                     420
                               Relative.
I-131.......................  Application for Travel                 360
                               Document \24\.
I-140.......................  Immigrant Petition for                 580
                               Alien Worker.
I-191.......................  Application for Advance                585
                               Permission to Return to
                               Unrelinquished Domicile.
I-192.......................  Application for Advance                585
                               Permission to Enter as
                               Nonimmigrant.
I-193.......................  Application for Waiver of              585
                               Passport and/or Visa.
I-212.......................  Application for Permission             585
                               to Reapply for Admission
                               into the U.S. After
                               Deportation or Removal.
I-290B......................  Notice of Appeal or Motion             630
I-360.......................  Petition for Amerasian,                405
                               Widow(er), or Special
                               Immigrant.
I-485.......................  Application to Register                985
                               Permanent Residence or
                               Adjust Status.
I-485.......................  Application to Register                635
                               Permanent Residence or
                               Adjust Status \25\.

[[Page 26909]]

 
I-526.......................  Immigrant Petition by                1,500
                               Alien Entrepreneur.
I-539.......................  Application to Extend/                 290
                               Change Nonimmigrant
                               Status.
I-600.......................  Petition to Classify                   720
                               Orphan as an Immediate
                               Relative.
I-600A......................  Application for Advance                720
                               Processing of Orphan
                               Petition.
I-601.......................  Application for Waiver of              585
                               Ground of Excludability.
I-601A......................  Application for                        585
                               Provisional Unlawful
                               Presence Waiver.
I-612.......................  Application for Waiver of              585
                               the Foreign Residence
                               Requirement (Under
                               Section 212(e) of the
                               INA, as Amended).
I-687.......................  Application for Status as            1,130
                               a Temporary Resident
                               under Section 245A of the
                               Immigration and
                               Nationality Act.
I-690.......................  Application for Waiver of              200
                               Grounds of
                               Inadmissibility.
I-694.......................  Notice of Appeal of                    755
                               Decision under Section
                               210 or 245A.
I-698.......................  Application to Adjust                1,020
                               Status from Temporary to
                               Permanent Resident (Under
                               Section 245A of Pub. L.
                               99-603).
I-751.......................  Petition to Remove the                 505
                               Conditions of Residence.
I-765.......................  Application for Employment             380
                               Authorization.
I-800.......................  Petition to Classify                   720
                               Convention Adoptee as an
                               Immediate Relative.
I-800A......................  Application for                        720
                               Determination of
                               Suitability to Adopt a
                               Child from a Convention
                               Country.
I-817.......................  Application for Family                 435
                               Unity Benefits.
I-824.......................  Application for Action on              405
                               an Approved Application
                               or Petition.
I-829.......................  Petition by Entrepreneur             3,750
                               to Remove Conditions.
I-910.......................  Application for Civil                  615
                               Surgeon Designation.
I-924.......................  Application for Regional             6,230
                               Center Designation Under
                               the Immigrant Investor
                               Program \26\.
I-929.......................  Petition for Qualifying                215
                               Family Member of a U-1
                               Nonimmigrant.
N-300.......................  Application to File                    250
                               Declaration of Intention.
N-336.......................  Request for Hearing on a               650
                               Decision in
                               Naturalization
                               Proceedings.
N-400.......................  Application for                        595
                               Naturalization.
N-470.......................  Application to Preserve                330
                               Residence for
                               Naturalization Purposes.
N-565.......................  Application for                        345
                               Replacement
                               Naturalization/
                               Citizenship Document.
N-600/600K..................  Application for                        600
                               Certification of
                               Citizenship/Application
                               for Citizenship and
                               Issuance of Certificate
                               under Section 322.
                              Immigrant visa DHS                     165
                               domestic processing fee
                               \27\.
Biometrics Fee..............  Biometric services........              85
------------------------------------------------------------------------

C. USCIS Initiatives Funded Under the 2010 Fee Adjustment

    In the FY 2010/2011 fee rule, USCIS committed to a set of goals and 
performance improvements that were aimed at increasing accountability, 
providing better customer service, and increasing efficiency. See 75 FR 
33457-8. These performance enhancements were:
---------------------------------------------------------------------------

    \23\ Form when used in connection with a benefit or other 
request to be filed with DHS to request an immigration benefit, 
means a device for the collection of information in a standard 
format that may be submitted in a paper format or an electronic 
format as prescribed by USCIS on its official Internet Web site. The 
term ``Form'' followed by an immigration form number includes an 
approved electronic equivalent of such form as made available by 
USCIS on its official Internet Web site. See 8 CFR 1.2 and 299.1. 
Therefore, the word ``form'' is used in this rule in both the 
specific and general sense.
    \24\ As described more fully below, the fees for an Application 
for Travel Document to request a Refugee Travel Document are guided 
by the United States' obligations under the 1967 Protocol relating 
to the Status of Refugees (incorporating by reference Article 28 of 
the 1951 U.N. Convention relating to the Status of Refugees) and not 
calculated by the USCIS fee model. 8 CFR 103.7(b)(1)(i)(M)(2) and 
(3).
    \25\ This reduced fee is applied to ``an applicant under the age 
of 14 years when [the application] is (i) submitted concurrently 
with the Form I-485 of a parent, (ii) the applicant is seeking to 
adjust status as a derivative of his or her parent, and (iii) the 
child's application is based on a relationship to the same 
individual who is the basis for the child's parent's adjustment of 
status, or under the same legal authority as the parent.'' 8 CFR 
103.7(b)(1)(i)(U)(2).
    \26\ DHS proposes to remove the word ``Pilot'' from the form 
title.
    \27\ DHS proposes to change the fee name to ``USCIS Immigrant 
Fee.'' See proposed 8 CFR 103.7(b)(1)(i)(D).
---------------------------------------------------------------------------

     Deployment of Transformed Processes and System. USCIS 
deployed the first release of its new electronic case management 
system, the Electronic Immigration System (ELIS), in the third quarter 
of FY 2012. ELIS was subsequently rebuilt using an agile software 
development methodology and simplified technology architecture. As a 
result of this effort, USCIS is able to deploy increased electronic 
processing capability to the system more quickly than the traditional 
software development approach. USCIS processed approximately 17 percent 
of agency intake of benefit requests in ELIS in fiscal year 2015. USCIS 
anticipates that approximately 30 percent of agency intake will be 
processed through ELIS by the end of fiscal year 2016; additional 
increased processing through ELIS is likely in fiscal year 2017.
     Expanding the Use of Systems Qualified Adjudication to a 
Larger Share of USCIS Workload. The term Systems Qualified Adjudication 
is now referred to as System Assisted Processing. This is a form of 
electronic pre-adjudication that improves the efficiency of processing 
benefit requests and affords immigration service officers more time to 
focus on complex adjudications. USCIS will continue to expand this 
approach where it is determined feasible as part of its business 
transformation initiative.
     Integration of Productivity Measures in Future Fee Review 
Methodology. DHS has stated in past fee rules that USCIS would 
integrate productivity measures into the underlying methodology it uses 
to conduct fee reviews. See, e.g., 72 FR 29857 (``Future productivity 
enhancements will produce lower costs per unit that will be reflected 
in future price adjustments.''). USCIS has done this and plans to 
continue to identify efficiency gains resulting from information 
technology investments and process improvements, including the cost 
savings that occur due to these changes, and ensure that those savings 
are incorporated into new fee amounts derived from future fee reviews.

[[Page 26910]]

D. Processing Time Outlook

    USCIS acknowledges that since it last adjusted fees in FY 2010, the 
agency has experienced elevated processing times compared to the goals 
established in FY 2007. These processing delays have contributed to 
case processing backlogs. This can partially be attributed to having 
removed the surcharge previously applied to the IEFA fee schedule to 
recover costs related to the USCIS Refugee, Asylum, and International 
Operations Directorate (RAIO), SAVE, and the Office of Citizenship. 
This was done in anticipation of Congress granting the request for 
annual discretionary appropriations to fund these programs that was in 
the President's Budget. Those resources did not fully materialize and 
since FY 2012 USCIS has used other fee revenue to support these 
programs. DHS is proposing to adjust fees by a total weighted average 
increase of 21 percent; the total 21 percent weighted average increase 
would be allocated as follows:
     Reinstate a surcharge in the fee schedule to fully fund 
RAIO, SAVE, and the Office of Citizenship (approximately 8 percent);
     Account for reduced revenue stemming from an increase in 
fee waivers granted since FY 2010 (approximately 9 percent); and
     Recover the costs needed to sustain current operating 
levels while allowing for limited, strategic investments necessary to 
ensure the agency's information technology infrastructure is 
strengthened to protect against potential cyber intrusions, and to 
build the necessary disaster recovery and back-up capabilities required 
to effectively deliver the USCIS mission (approximately 4 percent).
    Through this rule, USCIS expects to collect sufficient fee revenue 
to fully support RAIO, SAVE and the Office of Citizenship. This would 
allow USCIS to discontinue diverting fee revenue to fund these 
programs, thereby increasing resources to fund the personnel needed to 
improve case processing, reduce backlogs, and achieve processing times 
that are in line with the commitments in the FY 2007 Fee Rule, which 
USCIS is still committed to achieving.
    In addition, to make current published processing time information 
more transparent and easier for customers to interpret, USCIS is 
evaluating the feasibility of calculating processing times using data 
generated directly from case management systems, rather than with self-
reported performance data provided by Service Centers and Field 
Offices. Preliminary findings suggest that USCIS will be able to 
publish processing times sooner and with greater transparency by 
showing different processing times for each office and form type. USCIS 
is also considering publishing processing times using a range rather 
than using one number or date. This approach would show that, for 
example, half of cases are decided in between X and Y number of months.
    USCIS also expects to improve the customer experience as we 
continue to transition to online filing and electronic processing of 
immigration applications and petitions. With the new person-centric 
electronic case processing environment, USCIS will possess the data 
needed to provide near-real-time processing updates to the customer 
that will identify the case status and time period lapsed between 
actions for each individual case. This will allow greater transparency 
to the public on how long it will take to process each case as it moves 
from stage to stage (e.g., from biometrics collection, to interview, to 
decision).
    USCIS is committed to giving stakeholders and customers the 
information they need, when they need it. To that end, it is 
transforming how it calculates and posts processing time information to 
improve the timeliness of such postings, but more importantly, to 
achieve greater transparency of USCIS case processing.

V. FY 2016/2017 Immigration Examinations Fee Account Fee Review

A. Overall Approach

    USCIS manages three fee accounts:
    1. The IEFA (which includes premium processing revenues),\28\
---------------------------------------------------------------------------

    \28\ INA secs. 286(m), (n) & (u), 8 U.S.C. 1356(m), (n) & (u).
---------------------------------------------------------------------------

    2. The Fraud Prevention and Detection Account,\29\ and
---------------------------------------------------------------------------

    \29\ INA secs. 214(c)(12)-(13), 286(v), 8 U.S.C. 1184(c)(12)-
(13) 1356(v).
---------------------------------------------------------------------------

    3. The H-1B Nonimmigrant Petitioner Account.\30\
---------------------------------------------------------------------------

    \30\ INA secs. 214(c)(9), (11), 286(s), 8 U.S.C. 1184(c)(9), 
(11), 1356(s).
---------------------------------------------------------------------------

    The Fraud Prevention and Detection Account and the H-1B 
Nonimmigrant Petitioner Account are both funded by statutorily set 
fees. The proceeds of these fees are divided among USCIS to use for 
fraud detection and prevention activities and for the National Science 
Foundation and the Department of Labor. DHS has no authority to adjust 
fees for these accounts.
    The IEFA comprised approximately 94 percent of total funding for 
USCIS in FY 2015 and is the focus of this proposed rule. The FY 2016/
2017 Fee Review encompasses three core elements:
     Cost Projections--The cost baseline is the estimated level 
of funding necessary to maintain an adequate level of operations and 
does not include program increases for new development, modernization, 
or acquisition. Proposed program increases are considered outside of 
the baseline. Cost projections for FY 2016/2017 are derived from the 
USCIS annual operating plan for FY 2015.
     Revenue Status and Projections--Actual revenue collections 
for a set 12-month period (June 2013--May 2014) are used to derive 
projections for the 2-year period of the fee review based on current 
and anticipated trends.
     Cost and Revenue Differential--The difference between 
anticipated costs and revenue, assuming no change in fees, is 
identified.
    The primary objective of this fee review was to ensure that fee 
revenue provides sufficient funding to meet ongoing operating costs, 
including national security, customer service, and adjudicative 
processing needs.

B. Basis for Fee Schedule

    When conducting the comprehensive fee review, USCIS reviewed its 
recent cost history, operating environment, and current service levels 
to determine the appropriate method to assign costs to particular form 
types. Overall, USCIS kept costs as low as possible and minimized non-
critical program changes that would have increased costs.
1. Costs
    The cost baseline is comprised of the resources (including both 
personnel and non-personnel expenses) necessary for each USCIS office 
to sustain operations. The baseline excludes new or expanded programs 
and significant policy changes. A detailed annual operating plan is the 
starting point for baseline estimates.
    In developing estimates for program needs in FY 2016/2017, USCIS 
used the FY 2015 annual operating plan as the starting point and made 
necessary adjustments, including:
     Pay inflation ($11.3 million in FY 2016 and $23.1 million 
in FY 2017). The assumed government-wide pay inflation rate is 1 
percent for FY 2016 and 2 percent for FY 2017;
     Additional staff ($166.7 million in FY 2016 and $171.6 
million in FY 2017). Based on the results of the FY 2015 Staffing 
Allocation Model \31\ and

[[Page 26911]]

enhancement staffing requests submitted by program offices, USCIS 
projects that an additional 1,171 positions are needed to meet 
adjudicative processing goals and other USCIS mission objectives.
---------------------------------------------------------------------------

    \31\ The Staffing Allocation Model is a workforce planning model 
used to calculate estimates of staffing types and levels necessary 
to undertake specific workload (e.g., applications and petitions) 
levels at target processing times.
---------------------------------------------------------------------------

     Additional resource requirements ($24.9 million in FY 2016 
and $16.7 million in FY 2017). These additional resources will sustain 
current operations to support the USCIS strategic goals.
     Premium processing costs ($264.3 million in FY 2016 and 
$266.7 million in FY 2017). In addition to continuing to cover costs 
associated with the Office of Transformation, USCIS plans to use 
premium processing fees to pay an annual average of $79.3 million in 
costs associated with administering premium-processing services and 
infrastructure improvements in the adjudications and customer services 
processes.\32\ These costs pertain to the Service Center Operations 
staff adjudicating cases that requested premium processing service, 
transformation-related expenses (including the Office of Transformation 
Coordination personnel), and infrastructure investments being made to 
enhance the adjudication process and customer service.
---------------------------------------------------------------------------

    \32\ Premium processing fees are a subset of IEFA fees 
separately designated by Congress. See INA section 286(u), 8 U.S.C. 
1186(u).
---------------------------------------------------------------------------

     FY 2016/2017 total projected costs for the Refugee, 
Asylum, and International Operations Directorate (RAIO) (including an 
increase in the refugee admissions ceiling to 100,000 for FY 2017), 
SAVE,\33\ and the Office of Citizenship (including the Citizenship and 
Integration Grant Program) ($303.1 million). This is an increase of 
$158 million, or 108 percent, over FY 2010 actual costs of $145.4 
million. The costs for these programs were removed from the FY 2010/
2011 model used to calculate the USCIS fee schedule in the 2010 Fee 
Rule, consistent with FY 2010 appropriations and consistent with the 
Administration's FY 2011 budget request. That budget request was not 
fulfilled, and USCIS was left to pay the costs of these programs after 
having removed the surcharge. See 75 FR 58963.
---------------------------------------------------------------------------

    \33\ SAVE is partially funded by reimbursable revenue from 
Federal, state, and local governments. The proposed fees only fund 
the remaining SAVE costs that are not funded by reimbursable 
revenue.
---------------------------------------------------------------------------

    Table 2 summarizes adjustments to the FY 2015 cost baseline to 
reach the FY 2016 and FY 2017 cost baselines. After accounting for 
reductions, additional staff, and additional resource requirements, FY 
2016 costs are 5 percent higher than the FY 2015 adjusted IEFA budget. 
FY 2017 costs are 2 percent higher than FY 2016 costs.

                      Table 2--Baseline Adjustments
                         [Dollars in thousands]
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total FY 2015 Adjusted IEFA Budget.........................   $2,863,889
Plus: Pay Inflation and Promotions/Within Grade Increases..      130,092
Plus: Net Additional Costs.................................      137,381
Less: Spending Adjustments.................................     -122,338
Total FY 2016 Adjusted IEFA Budget.........................   $3,009,024
Plus: Pay Inflation and Promotions/Within Grade Increases..       38,072
Plus: Net Additional Costs.................................       19,452
Total FY 2017 Adjusted IEFA Budget.........................   $3,066,548
------------------------------------------------------------------------

    The projected annual budget for the FY 2016/2017 biennial fee 
review period is $3.038 billion. This is a $767 million, or 34 percent, 
increase over the FY 2010/2011 adjusted annual budget of $2.271 
billion. The main drivers of this increase are described in detail 
throughout this rule and the supporting documentation.
2. Revenue
    The FY 2016/2017 Fee Review assumes that baseline revenue under the 
current fee schedule will increase from the FY 2010/2011 Fee Rule 
projection of $2.056 billion to $2.478 billion, an increase of 
approximately 9 percent. This results from a fee-paying volume increase 
of 13 percent despite a workload volume increase of 23 percent. See 75 
FR 33456. Table 3 summarizes the projected cost differential.

                               Table 3--IEFA Cost Baseline and Revenue Comparison
                                             [Dollars in thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                                   FY 2016/2017
                           Fiscal year                                FY 2016         FY 2017         Average
----------------------------------------------------------------------------------------------------------------
Non-Premium Revenue.............................................      $2,507,683      $2,448,596      $2,478,139
IEFA Cost Baseline..............................................      $3,009,024      $3,066,548      $3,037,786
Difference......................................................      ($501,341)      ($617,952)      ($559,647)
----------------------------------------------------------------------------------------------------------------

    Historically, and for the purpose of the fee review, USCIS has 
reported costs and revenue using an average over the biennial time 
period. In Table 3, FY 2016 and 2017 costs and revenue are averaged to 
determine the projected Fee Rule amounts. Based on current immigration 
benefit and biometric services fees and projected volumes, fees are 
expected to generate $2.478 billion in average annual revenue in FY 
2016 and FY 2017. For the same period, the average cost of processing 
those benefit requests is $3.038 billion. This calculation results in 
an average annual deficit of $560 million.
3. No Discretionary Appropriations for RAIO, SAVE, Office of 
Citizenship, or Military Naturalization Costs
    The current fee schedule is inadequate partly because it was 
established assuming that funds requested in the President's FY 2010 
and FY 2011 budgets would be appropriated from Congress, yet those 
requests were not fulfilled. The FY 2010 and FY 2011 budgets requested 
$55 million and $259 million, respectively, to enable USCIS to remove 
the surcharge associated with refugee and asylum workload and military 
naturalization processing from immigration benefit request fees and to 
fund the cost of the SAVE program and the Office of Citizenship.\34\ 
Before 2010, the USCIS fee schedule included a surcharge that could be 
used to recover the cost of adjudicating asylum, refugee, and military 
naturalization requests. See 72 FR 29867. The 2010 Fee Rule removed 
those costs and the surcharge from the fee structure. See 75 FR 58961, 
58966. Congress, in its FY 2011

[[Page 26912]]

continuing resolution, provided USCIS with only $29.95 million \35\ of 
the requested $259 million to fund the refugee and asylum processing 
administered under the RAIO Directorate and military naturalization 
processing. See Public Law 112-10, sec. 1639 (Apr. 15, 2011). USCIS has 
not received any substantial appropriations for these programs since FY 
2011. Similarly, USCIS received no FY 2016 discretionary appropriations 
for the SAVE program or for the Office of Citizenship. See DHS 
Appropriations Act 2016, Public Law 114-113, div. F. (Dec. 18, 
2015).\36\ To avoid ongoing funding shortfalls for these programs, 
USCIS assumes in its fee model that no appropriations will be received 
for workload related to RAIO, SAVE, or Office of Citizenship operations 
and related expense items for the FY 2016/2017 biennial period.
---------------------------------------------------------------------------

    \34\ See Office of Management and Budget, Budget of the United 
States Government, Fiscal Year 2010, at 510-1 (2009), available at 
http://www.gpo.gov/fdsys/pkg/BUDGET-2010-SUMMARY/pdf/BUDGET-2010-SUMMARY.pdf.
    \35\ USCIS received $29.95 million and also reprogrammed $25 
million from the prior year bringing the total spending authority to 
$54.95 million.
    \36\ USCIS did not receive appropriations for refugee and asylum 
processing or SAVE after FY 2011. USCIS received $2.5 million for 
the immigrant integration grants program in FY 2014 (Pub. L. 113-76) 
and FY 2013 (Pub. L. 113-6). USCIS did not receive appropriations 
for the immigrant integration grants program in FY 2015 or FY 2016.
---------------------------------------------------------------------------

    Therefore, DHS proposes to fund the USCIS costs for RAIO, SAVE, and 
the Office of Citizenship through IEFA fee collections received from 
other fee-paying individuals seeking immigration benefits. DHS proposes 
to set the fees at a level sufficient to recover full costs.
    USCIS is, however, requesting reimbursement from DOD for costs 
related to military naturalizations. DOD has reimbursed USCIS for the 
cost of naturalization processing for eligible military service members 
since FY 2012. See 10 U.S.C. 1790 (providing that the Secretary of 
Defense may reimburse the Secretary of Homeland Security (Secretary) 
for actual costs incurred by USCIS for processing applications for 
naturalization, not to exceed $7,500,000 per fiscal year). The fee 
model presumes these reimbursements will continue in FY 2016/2017 and 
therefore does not seek to recover these costs through IEFA fee 
collections.
4. New Fee for Annual Certification of Regional Center, Form I-924A
    DHS proposes to establish a new fee in this rule for Annual 
Certification of Regional Center, Form I-924A, to recover the full cost 
of processing this EB-5 benefit type. See proposed 8 CFR 
103.7(b)(1)(i)(WW). Form I-924A is used by regional centers to 
demonstrate continued eligibility for their designation. See 8 CFR 
204.6(m)(6). Regional centers must submit the form to USCIS annually or 
upon request. Id. Upon failure to file Form I-924A or to demonstrate 
continued promotion of economic growth, USCIS will issue a Notice of 
Intent to Terminate. Id. If the regional center fails to overcome the 
grounds alleged in the Notice of Intent to Terminate, USCIS will 
terminate the designation of the regional center. Id. The form helps 
USCIS ensure that regional centers are continuing to promote economic 
growth and are otherwise in compliance with all applicable program 
requirements. Further, the form assists investors seeking to invest in 
a regional center, as it provides the regional center and USCIS with a 
process for recording data regarding the regional center's activities 
and job creation that can be shared with potential investors on a case-
by-case basis.\37\ Although approved regional centers are required to 
file the Form I-924A annually, there is currently no filing fee and the 
processing cost is borne by other individuals paying fees for 
immigration benefits.
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    \37\ USCIS will provide the information to prospective investors 
in response to written requests for government records through the 
Freedom of Information Act, consistent with applicable laws and 
policies regarding the disclosure of information.
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    USCIS is proposing to establish a fee for the Form I-924A because 
USCIS incurs significant costs to review the Form I-924A and to 
administer the regional center program. In addition, the regional 
center program is continuing to grow rapidly.\38\ With approximately 
800 currently approved regional centers, USCIS must expend adjudicative 
resources to handle Form I-924A filings for which no fee is currently 
collected. Regional centers are often complex partnerships, limited 
liability companies, or other business entities involved in multiple 
commercial enterprises that may overlap or intertwine. These complex 
relationships must be described on the Form I-924A and the filing must 
be reviewed by USCIS to determine if the regional center continues to 
comply with program requirements. 8 CFR 204.6(m)(6) (requiring a 
regional center to provide USCIS with updated information to 
demonstrate the regional center is continuing to promote economic 
growth, including improved regional productivity, job creation, and 
increased domestic capital investment in the approved geographic area). 
In addition, USCIS conducts site visits to some regional centers to 
verify the information provided in connection with its original 
application. USCIS also conducts onsite audits of a select number of 
regional centers each year to validate the information the center has 
provided and ensure that the objectives of the Immigrant Investor 
Program are being met. DHS is proposing to establish and collect a fee 
for Form I-924A to recoup the costs of carrying out these activities.
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    \38\ There were 340 designated regional centers required to file 
Form I-924A at the end of FY 2013, and 580 such centers at the end 
of FY 2014, representing a 70 percent increase in 1 year.
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    DHS proposes to establish the fee for the Form I-924A at $3,035. 
Proposed 8 CFR 103.7(b)(1)(i)(WW)(1). USCIS calculated this fee using 
the same ABC model used to calculate the other fees that DHS proposes 
in this rule. As with other proposed fees, projected adjudication hours 
determine part of the fee.
    In addition to establishing the fee, DHS is clarifying the related 
regulations that provide for the annual regional center review related 
to the Form I-924A. In addition, a change is proposed to accommodate 
regional centers that seek to withdraw their designation. Proposed 8 
CFR 204.6(m)(6)(vi). USCIS has received requests recently from regional 
centers seeking to withdraw their designation and discontinue their 
participation in the program. We currently have no procedure for this 
request and instead must proceed with the formal termination process of 
issuing a Notice of Intent to Terminate followed by a termination 
notice. Providing a withdrawal procedure will simplify the ability to 
terminate a regional center when the entity seeks to withdraw its 
designation. In conjunction with the fee, DHS wants to ensure that the 
requirements for continued participation for regional centers and the 
procedures to follow to meet the requirements are clear. Proposed 8 CFR 
204.6(m)(6).
5. Summary
    USCIS' projected FY 2016/2017 total operating costs are expected to 
exceed projected total revenue; this differential would be addressed 
with increased revenue. Under this proposed rule, increased revenue 
would be derived from a weighted average fee increase on existing 
immigration benefits and a new fee for Annual Certification of Regional 
Center, Form I-924A. The level of fee increase necessary to align costs 
and revenue is a weighted average of 21 percent. As noted earlier in 
this preamble, of the 21 percent weighted average increase, 
approximately four percent is directly attributable to cost increases 
for services included in the FY 2010/2011 Fee Rule. The remaining 17

[[Page 26913]]

percent is attributable to services that the FY 2010/2011 Fee Rule did 
not take into consideration, either because DHS assumed that these 
services would be funded through appropriations, or because the 
incidence of fee waivers has increased following the publication of the 
FY 2010/2011 Fee Rule.

VI. Fee Review Methodology

    When conducting a fee review, USCIS reviews its recent cost 
history, operating environment, and current service levels to determine 
the appropriate method to assign costs to particular benefit requests. 
The methodology used in the review reflects a robust capability to 
calculate, analyze, and project costs and revenues.
    USCIS uses commercially available ABC software to create financial 
models to calculate the costs for processing immigration benefit 
requests, including the costs for biometric services. Following the FY 
2010/2011 Fee Rule, USCIS identified several key methodology changes to 
improve the accuracy of its ABC model, as discussed in the 
``Methodology for the 2016/2017 Fee Review'' section in the Supporting 
Documentation. USCIS continues to update the ABC model with the most 
current information for fee review and cost management purposes.

A. Background

    ABC is a business management tool that assigns resource costs to 
operational activities and then to products and services. These 
assignments provide an accurate cost assessment of each work stream 
involved in producing the individual outputs of an agency or 
organization. The Federal Accounting Standards Advisory Board (FASAB) 
notes that ABC helps improve product costing by avoiding arbitrary 
indirect cost allocation and enables USCIS to conform to Managerial 
Cost Accounting Concepts and Standards for the Federal Government.\39\
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    \39\ See Federal Accounting Standards Advisory Board Handbook, 
Version 14 (06/15), SFFAS 4, No. 152.
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1. ABC Methodology
    DHS has included FY 2016/2017 Fee Review Supporting Documentation, 
including a detailed report on how it calculated the fee schedule 
proposed in the docket for this rulemaking. Comments are welcome on the 
supporting documentation and all aspects of this proposal. A summary of 
the fee study, calculations, methodology and conclusions follows.
a. Resources
    Resources equal the projected FY 2016/2017 annual cost baseline of 
$3.0 billion. USCIS designed the ABC model structure for FY 2016/2017 
to resemble the structure of the FY 2015 annual operating plan. That 
plan is the detailed budget execution plan USCIS establishes at the 
beginning of the fiscal year consistent with the approved fiscal year 
spending authority and forecasted fee revenue.
b. Resource Drivers and Resource Assignment
    ABC uses resource drivers to assign resources to activities. (See 
Section VI.A.1.c. of this preamble for more information.) All resource 
costs are assigned to activities, so the total resources in the model 
equal the total cost of activities.
    A common resource driver in ABC is the number of employees in an 
organization and the percentage of time they spend performing various 
activities. The FY 2016/2017 ABC model uses employee counts and 
activity information to assign resources to activities. USCIS refers to 
this process as the payroll title analysis. The payroll title analysis 
determines how employees contribute to the eleven activities in the fee 
review. When an office engages in more than one activity, USCIS uses 
operational information to prorate that office's time to multiple 
activities. Historical activity information is applied to projected 
staffing levels in FY 2016/2017. The ABC model assigns resources to 
activities using anticipated staffing levels and historical activity 
information from the payroll title analysis for each office.
    USCIS assigns some costs directly to activities. For example, the 
contract awarded to support USCIS Application Support Center operations 
only pertains to the ``Perform Biometric Services'' activity. 
Therefore, the costs of this contract are assigned directly to this 
activity. Other overhead costs, including costs for the Office of 
Information Technology, service-level agreements, and USCIS 
contributions to the DHS working capital fund are prorated to each 
office based on the number of authorized positions in those offices, so 
that each office pays a proportionate share.
    The allocation methods in the FY 2016/2017 review are in line with 
FASAB's Standard 4 on managerial cost accounting concepts. This 
fulfills the guideline for agencies to directly trace costs when 
feasible and to either assign costs on a cause-and-effect basis or 
allocate them in a reasonable and consistent way. Statement of Federal 
Financial Accounting Standards (SFFAS) 4, No. 126.
c. Activities
    In ABC, activities are the critical link between resources and cost 
objects. Activities represent work performed by an organization. USCIS 
allocates projected FY 2016/2017 operating costs (resources) to the 
following eleven activities:
     Inform the Public involves receiving and responding to 
customer inquiries through telephone calls, written correspondence, and 
walk-in inquiries. It also involves public engagement and stakeholder 
outreach activities.
     Perform Biometric Services involves the management of 
electronic biometric information, background checks performed by the 
Federal Bureau of Investigation (FBI), and the collection, use, and 
reuse of collected biometric information to verify the identity of 
individuals seeking immigration benefits.
     Intake involves mailroom operations, data entry and 
collection, file assembly, fee receipting, adjudication of fee waiver 
requests, and file room operations.
     Conduct TECS \40\ Check involves the process of comparing 
information on applicants, petitioners, requestors, beneficiaries, 
derivatives, and household members who apply for an immigration benefit 
against various Federal Government lookup systems.
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    \40\ In previous reviews, USCIS called the ``Conduct TECS 
Check'' activity by different names, such as ``Conduct Interagency 
Border Inspection System Checks (IBIS)'' or ``Conduct Treasury 
Enforcement Communication System (TECS) Check.'' The system has 
changed names, and now ``TECS'' is the actual system name and is no 
longer an acronym.
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     Records Management involves searching for and requesting 
files; creating temporary and/or permanent individual files; 
consolidating files; appending evidence submitted by applicants, 
petitioners, and requestors to existing immigration files; retrieving, 
storing, and moving files upon request; auditing and updating systems 
that track the location of files; and archiving inactive files.
     Make Determination involves adjudicating immigration 
benefit requests; making and recording adjudicative decisions; 
requesting and reviewing additional evidence; interviewing applicants, 
petitioners, or requestors; consulting with supervisors or legal 
counsel; and researching applicable laws and decisions on non-routine 
adjudications.

[[Page 26914]]

     Fraud Detection and Prevention involves activities 
performed by the Fraud Detection and National Security Directorate in 
detecting, combating, and deterring immigration benefit fraud and 
addressing national security and intelligence concerns.
     Issue Document involves producing and distributing secure 
cards that identify the holder as a foreign national and also 
identifies his or her immigration status and/or employment 
authorization.
     Management and Oversight involves activities in all 
offices that provide broad, high-level operational support and 
leadership necessary to deliver on the USCIS mission and achieve its 
strategic goals.
    Since the 2010 Fee Rule, USCIS added two activities to the fee 
review.
     Direct Costs directly support a specific immigration 
benefit type. For instance, USCIS applies costs specific to 
naturalization, including conducting naturalization ceremonies and 
naturalization benefit requests.
     Systematic Alien Verification for Entitlements (SAVE) 
represents the cost of this program.\41\ SAVE is an intergovernmental 
information-sharing program that helps Federal, state, and local 
benefit-issuing agencies, institutions, and licensing agencies (such as 
an individual state's department of motor vehicles) determine the 
immigration status of benefit applicants to help these agencies ensure 
that only those entitled to benefits or licenses receive them. Through 
the SAVE program, USCIS enters into reimbursable agreements with 
Federal, state, and local government agencies under the authority of 
the Economy Act and the Intergovernmental Cooperation Act of 1968 for 
those costs that can be directly assigned to SAVE. See generally 31 
U.S.C. 1535; 31 U.S.C. 6501-6508, Public Law 97-258. These reimbursable 
agreements recover only a portion of the total program cost. 
Previously, USCIS treated SAVE as an overhead cost and did not consider 
the amounts recovered in the reimbursable agreements in calculating the 
costs of SAVE to be recovered by USCIS fees. USCIS has improved its 
model by distinguishing SAVE from other overheads. This may enable 
USCIS to examine SAVE reimbursable fees paid by federal, state and 
local governments in the future.
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    \41\ USCIS is required to offer an automated or other system to 
verify the immigration status of applicants. Certain agencies 
determining eligibility for a number of specified Federal public 
benefits are required to use an automated or other such system to 
verify the immigration status of applicants. 42 U.S.C. 1320b-7. The 
automated verification system is entitled the Systematic Alien 
Verification for Entitlements (SAVE) program. INS and USCIS have 
refined and operated the SAVE program on a large scale for over 16 
years.
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d. Activity Drivers and Activity Assignment
    The fourth stage in the ABC process assigns activity costs to 
specific immigration benefit requests (cost objects) using activity 
drivers. For most activities, USCIS assigns activity costs to cost 
objects based on the percentage of total projected volume because, for 
these activities, similar time and effort are involved for each benefit 
request. Unique activity drivers are used for two activities: Make 
Determination and Perform Biometric Services.
    USCIS allocates the Make Determination activity across immigration 
benefit requests by projected adjudication hours. USCIS calculates 
projected adjudication hours by multiplying projected volumes by 
completion rates for most benefit types. Completion rates are the 
average amount of time that employees take to adjudicate immigration 
benefit requests.\42\ Generally, the more time spent adjudicating a 
request, the more cost that gets assigned, and therefore, the higher 
the fee. Please see Section VIII: Completion Rates for additional 
information.
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    \42\ Time here means the amount of time a USCIS immigration 
service officer spends on an adjudication. This is different than 
cycle time, the amount of time an applicant, petitioner, or 
requestor spends waiting for an output.
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    The Perform Biometric Services activity uses a direct activity 
driver. All costs associated with this activity are assigned directly 
to the biometric services fee.
    Activity costs are allocated to immigration benefit requests by the 
locations (service centers, field offices, etc.) that process them. 
USCIS uses data from the USCIS Performance Reporting Tool that, among 
other data points, include workload volumes, adjudication hours, and 
the number of completed requests by field office location and 
immigration benefit type. The Performance Reporting Tool also captures 
and records information on biometrics, records management, and customer 
service. For the FY 2016/2017 Fee Review, USCIS aligned its fee review 
metrics with the Performance Reporting Tool metrics used in the FY 2015 
Staffing Allocation Model to ensure organizational alignment and 
consistency.
e. Cost Objects
    Cost objects are the immigration benefit requests that USCIS 
processes. USCIS calculates a separate fee for biometric services. The 
costs for the biometric services fee are derived from the costs of the 
Perform Biometric Services activity and a small amount of direct 
costs.\43\ USCIS determines costs for most immigration benefit 
requests, including those for asylum and refugee protection. The IEFA 
costs of immigration benefit requests for which no revenue is recovered 
are redistributed to other benefit requests in a prorated manner.
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    \43\ For a quick reference of the immigration benefits that 
currently require biometric services with the initial submission, 
see Form G-1055, Fee Schedule, at http://www.uscis.gov/sites/default/files/files/form/g-1055.pdf.
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f. Exclusion of Temporary or Uncertain Costs Items and Programs
    USCIS excludes from the fee calculation model the costs and revenue 
associated with programs that are temporary by definition or where the 
program may diminish or cease to exist because the program is 
predicated on guidance only (and not preserved in regulations or 
statute). This exclusion applies to: The Application for TPS, Form I-
821, proposed 8 CFR 103.7(b)(1)(i)(NN); Consideration of Deferred 
Action for Childhood Arrivals, (DACA), Form I-821D; and Application for 
Suspension of Deportation or Special Rule Cancellation of Removal 
(Pursuant to Section 203 of Pub. L. 105-100) (Nicaraguan Adjustment and 
Central American Relief Act (NACARA)), Form I-881, proposed 8 CFR 
103.7(b)(1)(i)(QQ). These programs are excluded from the FY 2016/2017 
Fee Rule Supporting Documentation and this rule.\44\
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    \44\ For the purposes of this rule, DHS is including all 
requests funded from the IEFA in the term ``benefit request'' or 
``immigration benefit request'' although the form or request may not 
be to request a benefit. For example, DACA is solely an exercise of 
prosecutorial discretion by DHS and not an immigration benefit, but 
would fit under the definition of ``benefit request'' solely for 
purposes of this rule. For historic receipts and completion 
information, see USCIS immigration and citizenship data available at 
https://www.uscis.gov/tools/reports-studies/immigration-forms-data.
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    DHS excludes projected revenue from expiring or temporary programs 
in setting the fees required to support baseline operations due to the 
uncertainty associated with such programs. For example, the Secretary 
may designate a foreign country for TPS due to conditions in the 
country that temporarily prevent the country's nationals from returning 
safely, or in certain circumstances, where the country is unable to 
handle the return of its nationals adequately. TPS, however, is a 
temporary benefit, and

[[Page 26915]]

TPS designations may be terminated.\45\ INA section 244(b)(3)(B), 8 
U.S.C. 1254a(b)(3)(B). Likewise, DACA allows certain individuals who 
meet specific guidelines to request consideration of deferred action 
from USCIS to not be placed into removal proceedings or removed from 
the United States for a specified period unless terminated.\46\ The 
DACA policy is an administrative exercise of prosecutorial discretion 
and it is implemented at the discretion of the agency. For NACARA, the 
eligible population will eventually be exhausted due to relevant 
eligibility requirements, including the date by which an applicant was 
required to have entered the United States. USCIS analyzes the distinct 
costs associated with processing these benefit types and excludes these 
costs from the ABC model. All fee revenue deposited into the IEFA is 
pooled and collectively used to finance USCIS operations. USCIS also 
responds to surges in customer demand for services by realigning 
resources to cover the cost of processing. Consequently, USCIS is 
capable of funding these programs even though their costs are not 
included in the fee model.
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    \45\ Even though some TPS designations have been in place for a 
number of years, the Secretary could terminate them if the Secretary 
determines that the designation criteria are no longer met.
    \46\ See USCIS, Consideration of Deferred Action for Childhood 
Arrivals (DACA), https://www.uscis.gov/humanitarian/consideration-deferred-action-childhood-arrivals-daca.
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    DHS excludes the costs and revenue associated with these programs 
because program eligibility is subject to the discretion of the 
Department. Given this discretion, USCIS has excluded the cost and 
workload of these programs from the fee review and does not propose to 
allocate overhead and other fixed costs to these workload volumes. This 
mitigates an unnecessary revenue risk, i.e., that USCIS will not have 
enough revenue to recover full cost if the eligible populations 
diminish or cease to exist. As in prior fee reviews, USCIS has excluded 
both the cost and revenue associated with these programs from the fee 
review. By excluding programs that are temporary by definition, for 
which the population may diminish or cease to exist, DHS maintains the 
integrity of the ABC model, better ensures recovery of full costs, and 
mitigates revenue risk from unreliable sources.
2. Continuing Low Volume Reallocation From FY 2010/2011 Fee Rule
    DHS uses its fee setting discretion to adjust certain immigration 
request fees that would be overly burdensome on applicants, 
petitioners, and requestors if set at recommended ABC model levels. 
Historically, as a matter of policy, DHS has chosen to limit USCIS fee 
adjustments for certain benefit requests to the weighted average fee 
increase represented by the model output costs for fee-paying benefit 
types. See 75 FR 33461.\47\ Any additional costs from these benefit 
request types beyond this calculated weighted average increase figure 
would be reallocated to other benefit types. In addition, as noted 
above, fees for the other benefit types would also be calculated to 
cover costs that are not directly supported by fees. This process is 
known as ``Low Volume Reallocation.''
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    \47\ This same methodology was used in the FY 2008/2009 Fee 
Rule. 72 FR 4910.
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    In the fee review for this proposed rule, the model output costs 
identified a weighted average 8 percent cost increase across all fee-
paying benefit types. Accordingly, consistent with prior practice, DHS 
proposes to limit the fee adjustments for certain benefit types to this 
8 percent weighted average increase. These immigration benefit requests 
do not receive any additional cost reallocation for fee waivers, 
refugee, asylum or other programs. DHS does not believe that using the 
calculated 8 percent weighted average increase figure as a basis for 
fee increases for these benefit types would result in fees for other 
benefit types that would be overly burdensome to the applicants, 
petitioners or requestors.
    DHS proposes to subject specific benefit types to the 8 percent 
weighted average increase because the combined effect of cost, fee-
paying volume, and methodology changes since the last Fee Rule would 
otherwise place an inordinate fee burden on individuals requesting 
these types of benefits. For example, without Low Volume Reallocation, 
the Petition to Classify Orphan as an Immediate Relative, Form I-600, 
would have a fee of at least $2,258. DHS believes it would be contrary 
to the public interest to impose a fee of this amount on an estimated 
15,000 potential adoptive parents each year. Similar reasoning led to 
the other forms chosen to be adjusted using Low Volume Reallocation. 
For this reason, DHS proposes to subject these benefit types to the 
calculated 8 percent weighted average increase. In other words, 
consistent with past USCIS fee rules, DHS is proposing an 8 percent 
increase for each of these benefit types, based on the calculated 8 
percent weighted average increase across all fee-paying benefit types 
as identified by the model.
    DHS recognizes that charging less than the full cost of 
adjudicating an immigration benefit request requires USCIS to increase 
fees for other immigration benefit requests to ensure full cost 
recovery. This complies with INA section 286(m), which permits fees to 
cover those costs of providing applicants, petitioners, or requestors a 
service or part of a service ``without charge.''
    DHS proposes to apply the Low Volume Reallocation methodology to 
the following USCIS forms:

 Notice of Appeal or Motion, Form I-290B
 Petition for Amerasian, Widow(er) or Special Immigrant, Form 
I-360
 Petition to Classify Orphan as an Immediate Relative, Form I-
600
 Application for Advance Processing of an Orphan Petition, Form 
I-600A
 Petition to Classify Convention Adoptee as an Immediate 
Relative, Form I-800
 Application for Determination of Suitability to Adopt a Child 
from a Convention Country, Form I-800A
 Request for Action on Approved Form I-800A, Form I-800A, 
Supplement 3
 Petition for Qualifying Family Member of a U-1 Nonimmigrant 
Form I-929
 Application to File Declaration of Intention, Form N-300
 Request for Hearing on a Decision in Naturalization 
Proceedings, Form N-336
 Application to Preserve Residence for Naturalization Purposes, 
Form N-470.
3. Applying Cost Reallocation to Other Form Types
    As described below, DHS also proposes to limit fee increases for 
additional benefit types at the calculated 8 percent weighted average 
increase, even though the potential fee increases for these benefit 
types would not have imposed the same level of burden on affected 
requestors as the benefit types described in the preceding section.
    First, DHS proposes to increase the Application for Naturalization, 
Form N-400, fee by the 8 percent weighted average increase described 
above.\48\ As DHS stated in 2010, ``DHS has determined that the act of 
requesting and obtaining U.S. citizenship deserves special 
consideration given the unique nature of this benefit to the individual 
applicant, the significant public benefit to the Nation, and the 
Nation's proud tradition of welcoming new citizens.'' 75 FR 33461. This 
rationale still holds

[[Page 26916]]

true. DHS believes that by limiting the adjustment of the 
naturalization fee to the 8 percent weighted average increase, it would 
reinforce these principles by encouraging more immigrants to naturalize 
and fully participate in civic life. This proposal is also consistent 
with other DHS efforts to promote citizenship and immigrant 
integration.\49\
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    \48\ See the 2016/2017 Fee Rule Supporting Documentation in the 
rulemaking docket for an explanation of how the weighted average is 
calculated.
    \49\ As noted later in this preamble, this rule proposes an 
option for naturalization applicants with family incomes greater 
than 150% and not more than 200% of the Federal Poverty Guidelines 
to pay a fee of $320 plus an additional $85 for biometric services, 
for a total of $405.
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    DHS also proposes to limit the adjustment of the fee for 
Application for Provisional Unlawful Presence Waiver, Form I-601A, and 
the Application for Employment Authorization, Form I-765. The current 
Form I-601A fee was not established by the 2010/2011 Fee Rule because 
it did not exist at that time. USCIS unfortunately has insufficient 
data on Form I-601A volumes and completion rates with which to use its 
fee calculation model to identify an appropriate fee with a sufficient 
level of confidence. Therefore, DHS has decided that proposing a 
weighted average increase at 8 percent of the current fee amount is 
appropriate until sufficient data becomes available. DHS will consider 
setting the fee for Form I-601A at the amount the model calculates if 
sufficient data are collected before the final rule is published.
    DHS also proposes to apply the same 8 percent weighted average 
increase to the Form I-765 for humanitarian and practical reasons. Many 
individuals seeking immigration benefits face financial obstacles and 
cannot earn money through lawful employment in the United States until 
they receive an Employment Authorization Document (EAD).
    Finally, as noted above, in the 2010 fee rule, DHS held fee 
increases for a number of benefit requests to the weighted average fee 
increase for all fee-paying immigration benefits. 75 FR 33461. In this 
rule, DHS proposes to not apply the 8 percent weighted average increase 
to a subset of those benefit requests, both because DHS has better data 
upon which to base proposed fees for those benefit requests, and 
because DHS believes the calculated fee is appropriate. Therefore, DHS 
no longer believes it is necessary to limit fee increases to the 
weighted average for the following USCIS forms:

 Application for Waiver of Grounds of Inadmissibility, Form I-
690
 Waiver Forms, Forms I-191, I-192, I-193, I-212, I-601, I-602, 
I-612. Proposed 8 CFR 103.7(b)(1)(i)(O), (P), (Q), (R), (AA), (BB), 
(CC) & (EE).

    Accordingly, the fees for these USCIS forms are proposed to be set 
at the level calculated in the ABC model, with adjustments.
4. Reduced Fee for Application for Naturalization
    DHS proposes to establish a three-level fee for the Application for 
Naturalization, Form N-400. See 8 CFR 103.7(b)(1)(i)(AAA). First, as 
explained earlier in this preamble, DHS is proposing a fee for Form N-
400 of $640, plus $85 for biometrics, for a total of $725. Id. Second, 
no fee is charged to an applicant who meets the requirements of 
sections 328 or 329 of the Act with respect to military service, or to 
an applicant who applies for and receives a full fee waiver. Id. at 
103.7(b)(1)(i)(AAA)(2)-(c)(2).\50\ Third, DHS proposes to permit 
naturalization applicants with household incomes greater than 150 
percent and not more than 200 percent of the Federal Poverty Guidelines 
\51\ to pay a fee of $320 plus an additional $85 for biometrics, for a 
total of $405. DHS has created a proposed new form, USCIS Form I-942, 
Request for Reduced Fee, that would be filed with the N-400. The form 
would provide a convenient guide for applicants to demonstrate that 
their income meets the level required to pay the reduced fee. The 
Paperwork Reduction Act section of this preamble provides information 
on how to comment on the proposed form.
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    \50\ As described elsewhere in this preamble, an applicant with 
a household income at or below 150 percent of the Federal Poverty 
Guidelines qualifies for a waiver of their entire fee under current 
USCIS policy.
    \51\ The guidelines are issued each year by the Department of 
Health and Human Services and updated periodically in the Federal 
Register under 42 U.S.C. 9902(2). The poverty guidelines are used as 
an eligibility criterion for a number of Federal programs. For 
further information on how the guidelines are used or how income is 
defined, see ``Annual Update of the HHS Poverty Guidelines'' at 81 
FR 4036 (Jan. 25, 2016).
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    DHS proposes the new reduced fee option to limit potential economic 
disincentives some eligible applicants may face when deciding whether 
or not to apply for naturalization. The proposed reduced fee option for 
low-income applicants supports the Administration's immigration 
integration policies \52\ and the USCIS mission to support aspiring 
citizens. Nevertheless, USCIS is funded mainly from fees and we must 
collect a fee to recover at least some of the costs associated with 
naturalization. DHS believes the reduced fee would help ensure that 
those immigrants whose goal it is to apply for naturalization are not 
unnecessarily limited by their economic means. DHS realizes that other 
fee payers would be required to bear the cost of the reduced fee, but 
believes the importance of naturalization justifies this slight shift 
of burden.\53\
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    \52\ See The White House Task Force on New Americans, 
Strengthening Communities by Welcoming All Residents, at 28-29 
(2015), available at https://www.whitehouse.gov/sites/default/files/docs/final_tf_newamericans_report_4-14-15_clean.pdf.
    \53\ DHS previously stated that adjusting fee levels based on 
income would be administratively complex and would require higher 
costs to administer. See 75 FR 58971. Specifically, in 2010, DHS 
stated that a tiered fee system would impose an unreasonable cost 
and administrative burden, because it would require staff dedicated 
to income verification and necessitate significant information 
system changes to accommodate multiple fee scenarios. See id. DHS 
will need to reprogram intake operations for Form N-400 to recognize 
the new fee and documentation. Staff must be added to review the 
income documentation provided to determine if the applicant 
qualifies for the new fee. DHS has determined that the change 
proposed here, because it applies only to Form N-400 and the act of 
acquiring citizenship, is of sufficient value from a public policy 
standpoint to justify USCIS incurring the additional administrative 
and adjudicative burden.
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    USCIS is uncertain exactly how many new N-400 applicants would be 
eligible and apply for naturalization as a result of the reduced fee. 
In addition, DHS has no reliable data indicating how demand for filing 
an N-400 may change due to adjustments in the fee amount. Nonetheless, 
research on barriers to naturalization indicates a correlation between 
the N-400 filing fee and the number of applications submitted to USCIS. 
As the Center for the Study of Immigrant Integration stated:

    Some evidence of price sensitivity was shown when USCIS 
increased the cost to naturalize from $400 to $595 (plus the costs 
of biometrics) in the middle of 2007: the result was a surge of 
applications just prior to the fee increase. As a result, there were 
nearly 1.4 million naturalization applications filed in 2007 but 
just over 500,000 in 2008.\54\
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    \54\ Manuel Pastor & Justin Scoggins, Center for the Study of 
Immigrant Integration, Citizen Gain: The Economic Benefits of 
Naturalization for Immigrants and the Economy 20 (Dec. 2012), 
available at http://dornsife.usc.edu/assets/sites/731/docs/citizen_gain_web.pdf.

In addition, USCIS analyzed the 2012 American Community Survey and 
determined that 10 percent of new citizens who naturalized since 2000 
reported incomes between 150 percent and 200 percent of the Federal 
Poverty Guidelines.\55\ Independent university

[[Page 26917]]

research \56\ estimated that about 12 percent of adult lawful permanent 
residents eligible to naturalize fell within the 150 to 200 percent of 
the Federal Poverty Guidelines. By averaging the 10 percent and the 12 
percent from the two data sources, USCIS estimates 11 percent of 
average annual Form N-400 filings would be likely to qualify for the 
lower fee. The average FY 2016/2017 Application for Naturalization 
volume estimate is 821,500, excluding military naturalizations. USCIS 
expects that an average of 90,365 filers, 11 percent of the 821,500, 
would be eligible for the reduced fee of $405 (including the biometrics 
fee).\57\ Assuming that all 90,365 would have paid the full fee of $725 
for their Form N-400 and biometrics, this new N-400 fee would result in 
approximately $28.9 million in foregone fee revenue associated with 
adjudication of Form N-400. That amount of USCIS operating expenses 
would be funded using fee revenue from other fee increases proposed in 
this rule.
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    \55\ USCIS analyzed immigrants who reported naturalization since 
the year 2000. These represent people who recently became U.S. 
citizens. Approximately 24.7% were eligible for a fee waiver based 
on current criteria (2.2 million out of 8.9 million) because their 
household income is below 150% of the federal poverty guidelines. A 
further 10.3% (923,901 out of 8.9 million) would have been eligible 
for a partial fee waiver, since their income falls between 150% and 
200% of the federal poverty guidelines. Among immigrants who 
reported naturalizing in 2011 (737,618), 10.4% or 77,003 immigrants 
would have been eligible for a partial fee waiver.
    \56\ See Manuel Pastor, University of Southern California, 
Reducing Barriers to Citizenship: New Research and the Need for a 
Partial Fee Waiver (Jan. 8, 2015), available at http://newamericanscampaign.org/wp-content/uploads/New-Research-on-Reducing-Barriers-to-Citizenship-1-8-15-Webinar-Powerpoint.pdf.
    \57\ This is an estimate of the net impacts. Some who would have 
filed and paid the full fee would now opt to pay the reduced fee. 
Others who are eligible to seek a fee reduction based on income 
level may also qualify for a Federal means tested benefit in their 
state and thus qualify for a full fee waiver.
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5. Holding the Biometric Services Fee at Its Current Level
    DHS proposes to hold the biometric services fee at its current 
level of $85. Proposed and current 8 CFR 103.7(b)(1)(i)(C). While the 
model calculated a biometric services fee of $75, DHS believes that the 
importance of and uncertainty in the biometric services area justifies 
holding that fee at $85.
    DHS has broad statutory authority to collect biometric information 
when such information is ``necessary,'' or ``material and relevant'' to 
the administration and enforcement of the INA. See, e.g., INA secs. 
103(a), 235(d)(3), 264(a); 8 U.S.C. 1103(a), 1225(d)(3), 1304(a). The 
collection, use, and reuse of biometric data are integral to identity 
management, excluding people with criminal backgrounds, minimizing 
national security concerns, and maintaining program integrity. Over the 
next few fiscal years the volume of requests for biometrics services, 
as well as the costs associated with those services, such as fees paid 
to the FBI for fingerprints and name checks, are uncertain. Therefore, 
a moderate amount above current full cost recovery calculation is 
justified to shield USCIS from that uncertainty.
    In addition, DHS proposes to use its discretion in setting this fee 
to hedge against potential rising programmatic costs which USCIS cannot 
foresee or control. For example, new regulatory or statutory background 
check requirements may be borne out of increased national security 
concerns dictated by events or changing circumstances. For the same 
reasons, DHS is also proposing to clarify regulations pertaining to 
biometrics and the biometric services fee.
    Current regulations provide both general authority for the 
collection of biometrics in connection with immigration and 
naturalization benefits as well as requirements specific to certain 
benefit types.\58\ See 8 CFR 103.16(a). A related provision provides 
that an applicant, petitioner, sponsor, beneficiary, or other 
individual residing in the United States at the time of filing may be 
required to appear for fingerprinting. See 8 CFR 103.2(b)(9). The 
wording of the latter provision has resulted in questions and confusion 
about DHS authority to require biometrics and the associated biometric 
services fee beyond a case-by-case basis. While DHS believes its 
current biometrics and biometrics fee collections are fully authorized, 
DHS proposes changes to the latter provision to clarify its regulatory 
authority to require and conduct biometrics-based identity and 
background checks, and to collect the associated fees. In addition, DHS 
is clarifying this section with regard to the use of the term 
biometrics in place of the term fingerprints. DHS has been using the 
term biometrics for several years in multiple contexts. See, e.g., 72 
FR 4906 (Feb. 1, 2007) (discussing the proposed fee for immigration and 
naturalization benefit application and petition and biometric service 
processing activities and describing biometrics as fingerprints, 
photographs, and signatures). The term ``biometrics'' is also used 
throughout title 8 of the CFR. See, e.g., 8 CFR 103.7(b)(1)(i)(C), 
103.16, 103.17, 204.310(a)(3)(ii), 204.312(e)(3)(ii), 209.1(b), 
212.7(e)(1)(i), 204.312(e)(3)(ii), 214.2(w)(15), 245.21(b). Therefore, 
DHS proposes to revise 8 CFR 103.2(b)(9) to clarify that any applicant, 
petitioner, sponsor, beneficiary, or requestor, or individual filing a 
request may be required to appear for biometrics collection or for an 
interview. This requirement may be imposed upon individual notice or as 
established in the applicable regulations or form instructions. See 
proposed 8 CFR 103.2(b)(9). DHS is also making conforming edits in 8 
CFR 103.16(a) to provide that an individual may be required to submit 
biometric information by law, regulation, Federal Register notice or 
the form instructions applicable to the request type or if required in 
accordance with 8 CFR 103.2(b)(9). See proposed 8 CFR 103.16(a).
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    \58\ See, e.g., 8 CFR 103.16(a), 204.2(a)(2) (requiring evidence 
of the claimed relationship), 204.3(c)(3) (requiring 
fingerprinting), 204.2(d)(2)(vi) (authorizing blood testing), 
245a.2(d) (requiring photographs and a completed fingerprint card), 
316.4(a) (requiring three photographs and fingerprinting).
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6. Continuing To Hold Refugee Travel Document Fee to the Department of 
State Passport Fee
    Consistent with U.S. obligations under Article 28 of the 1951 
Convention Relating to the Status of Refugees,\59\ USCIS proposes to 
continue to charge a fee for Refugee Travel Documents similar to the 
charge for a U.S. passport book. See 75 FR at 58972 (discussing Article 
28 standards for assessing charges for a Refugee Travel Document). 
Under this proposal, the fee for an Application for Travel Document, 
Form I-131, would be $575 for advance parole and any other travel 
document, as calculated by the fee model. See proposed 8 CFR 
103.7(b)(1)(i)(M)(3). However, the current fees for Form I-131 for a 
Refugee Travel Document would be maintained at $135 for adults and $105 
for children under the age of 16 years. These fees are the same as the 
Department of State (DOS) passport book fees,\60\ plus biometrics if 
the applicant is between 14 and 79 years of age. See proposed 8 CFR 
103.7(b)(1)(i)(M)(1)-(2).
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    \59\ The United States is party to the 1967 Protocol Relating to 
the Status of Refugees, Jan. 31, 1967, 19 U.S.T. 6224, 606 U.N.T.S. 
267 (1968), which incorporates articles 2 through 34 of the 1951 
Convention. The United States is not party to the 1951 Convention. 
See Sale v. Haitian Ctrs. Council, Inc., 509 U.S. 155, 169 n.19 
(1993) (``Although the United States is not a signatory to the 
Convention itself, in 1968 it acceded to the United Nations Protocol 
Relating to the Status of Refugees, which bound the parties to 
comply with Articles 2 through 34 of the Convention as to persons 
who had become refugees because of events taking place after January 
1, 1951.'').
    \60\ The Refugee Travel Document fees are the same as the sum of 
the United States passport book application fee plus the additional 
execution fee that DOS charges for first time applicants.

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[[Page 26918]]

7. Holding the Fee for a Petition by Entrepreneur To Remove Conditions 
(Form I-829) at Its Current Level
    DHS proposes to hold the fee for the Petition by Entrepreneur to 
Remove Conditions, Form I-829, at its current level of $3,750. While 
the fee model calculated a fee of $2,353, DHS proposes to maintain the 
current fee for such petitions. Because of the recent and continued 
growth and maturation of the EB-5 Program, the costs over the next few 
fiscal years are uncertain because the final parameters of the program 
are still evolving, such as the number of employees and facilities 
necessary to carry out the enhanced review of EB-5 filings and site 
visits. This makes it uncertain whether EB-5 related fees will fully 
fund EB-5 program activities.
    The EB-5 program was created by Congress in 1990 to stimulate the 
U.S. economy through job creation and capital investment by foreign 
investors. The EB-5 ``regional center program'' was later added in 1992 
by the Departments of Commerce, Justice, and State, the Judiciary, and 
Related Agencies Appropriations Act, 1993. Public Law 102-395, sec. 
610, 106 Stat 1828 (Oct. 6, 1992). The EB-5 immigrant classification 
allows qualifying individuals, and any accompanying or following to 
join spouses and children, to obtain lawful permanent resident (LPR) 
status if the qualifying individuals have invested, or are actively in 
the process of investing, $1 million in a new commercial enterprise. 
See INA section 203(b)(5)(A) and (C), 8 U.S.C. 1153(b)(5)(A) and (C). 
To qualify, the individual's investment must benefit the U.S. economy 
and create full-time jobs for 10 or more qualifying employees. INA 
section 203(b)(5)(A)(ii), 8 U.S.C. 1153(B)(5)(A)(ii). If the investment 
is in a Targeted Employment Area (TEA) (i.e., a rural area or an area 
that has unemployment of at least 150% of the national average), the 
required capital investment amount is $500,000 rather than $1 million. 
INA section 203(b)(5)(C)(ii), 8 U.S.C. 1153(b)(5)(C)(ii); 8 CFR 
204.6(f)(2). Entrepreneurs may meet the job creation requirements 
through the creation of indirect jobs by making qualifying investments 
within a new commercial enterprise associated with a regional center 
approved by USCIS for participation in the regional center program. INA 
section 203(b)(5), 8 U.S.C. 1153(b)(5); 8 CFR 204.6(e) and (m)(7).
    To increase its support of Congress's objective in establishing the 
program, USCIS has recently implemented several changes to refine and 
improve the delivery, security and integrity of the EB-5 Program.\61\ 
USCIS established the Immigrant Investor Program Office (IPO) in 
Washington, DC at USCIS headquarters in 2012. Since that time, IPO has 
regularly added staff positions to focus both on managing the program 
and ensuring identification of fraud, national security, or public 
safety concerns within the program. In addition, USCIS plans to conduct 
more site visits to regional centers and associated commercial 
enterprises to verify information provided in regional center 
applications and investor petitions and to clarify its EB-5 
regulations. DHS proposes to keep the Form I-829 at the current fee, 
above the full cost recovery calculation,\62\ to shield USCIS against 
potential but likely rising costs. DHS believes the fee would still be 
set at an appropriate level and that it would not be overly burdensome 
to the Form I-829 filers, particularly considering the size of the 
investment required to participate in the program.
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    \61\ USCIS is committed to strengthening and improving the 
overall administration of the EB-5 Program. The EB-5 Program 
encompasses Forms I-526, I-829, I-924, and I-924A. The cost baseline 
includes $16.0 million in FY 2016 and $15.9 million in FY 2017 for 
additional staff that would comprise a specialized team of forensic 
auditors, compliance officers, and other staff, whose primary focus 
would be to ensure regulatory compliance. This would directly 
contribute to the integrity of the program by providing the USCIS 
Investor Program Office with employees who have specialized 
knowledge required to adjudicate these benefits. In addition to 
enhanced staffing, USCIS would make additional IT systems 
investments to make case processing more efficient. USCIS would add 
$1.7 million in FY 2016 and $1.8 million in FY 2017 to improve the 
case management system and further develop its risk management 
strategy to ensure program compliance.
    \62\ If DHS had decided to adjust the fee consistent with the 
adjustment that DHS made to most other fees, the proposed fee would 
have decreased to $3,280. The proposed fee would have been higher 
than the model output because of Cost Reallocation. Other fees would 
also have been adjusted accordingly.
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B. Changes in the FY 2016/2017 Fee Review

1. Interim Benefits
    The FY 2016/2017 Fee Review isolates the workload volume and fee-
paying percentage of Applications for Employment Authorization, Forms 
I-765, and Applications for Travel Document, Forms I-131, that are not 
associated with Applications to Register Permanent Residence or Adjust 
Status, Forms I-485. This change helps DHS to more accurately calculate 
the fees necessary for cost recovery for all three benefit types.
    Usually, the favorable adjudication of an immigration benefit 
request is necessary before the beneficiary will receive ancillary 
benefits such as work and travel authorization. That is, USCIS only 
grants those ancillary benefits after, or at the same time as, it 
grants the underlying immigration status or benefit. In some 
situations, however, an individual may become entitled to a benefit 
because a case is pending adjudication. For example, a person who 
applies for adjustment of status would, in certain instances, be able 
to obtain work and/or travel authorization based on the pending 
immigration benefit request. 8 CFR 274a.12(c)(9). When this occurs, 
these ancillary benefits are referred to generally as ``interim 
benefits.'' \63\
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    \63\ The following case types are subject to appeal and 
frequently have an associated application for adjustment of status, 
thereby possibly warranting interim benefits: Immigrant Petition for 
Alien Workers, Form I-140; Petition for Amerasian, Widow(er) or 
Special Immigrant, Form I-360; Application for Permission to Reapply 
for Admission into the United States after Deportation or Removal, 
Form I-212; and Application for Waiver of Ground of Inadmissibility, 
Form I-601. Interim benefits may also be derived from an Application 
for Temporary Protected Status, Form I-821. DHS proposes free 
interim benefits in this rule only associated with a pending 
Application to Register Permanent Residence or Adjust Status, Form 
I-485.
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    DHS currently permits applicants who file and pay the required fee 
for an Application to Register Permanent Residence or Adjust Status, 
Form I-485, to submit an Application for Employment Authorization, Form 
I-765, and/or an Application for Travel Document, Form I-131, without 
paying an additional fee. See 8 CFR 103.7(b)(1)(i)(M)(4) & (HH). 
Applicants may file Form I-765 and/or Form I-131 concurrently with Form 
I-485. Alternatively, they may also file these forms after USCIS 
accepts their Form I-485, but while the Form I-485 is still pending.
    In the FY 2016/2017 Fee Review, USCIS determined the workload 
volume and fee-paying percentage of Forms I-765 and Forms I-131 that 
are not associated with Forms I-485. This methodology change enables 
USCIS to derive a fee-paying percentage for standalone Forms I-765 and 
Forms I-131, meaning those forms not filed concurrently with a Form I-
485. By isolating stand-alone interim benefit customers from those 
concurrently filing Form I-485, USCIS can more accurately assess fee-
paying percentages, fee-paying volumes, and fees for all three benefit 
types. As a result, DHS is confident that the fees for these three 
benefit types proposed in this rule are consistent with the ABC 
methodology for full cost recovery.

[[Page 26919]]

2. Form I-485 Fee for Child Under 14, Filing With Parent
    USCIS proposes a fee of $750 for a child under the age of 14 years 
when filing Form I-485 concurrently with the application of a parent 
seeking classification as an immediate relative of a U.S. citizen, a 
family-sponsored preference immigrant, or a family member accompanying 
or following to join a spouse or parent under sections 201(b)(2)(A)(i), 
203(a)(2)(A), or 203(d) of the INA, 8 U.S.C. 1151(b)(2)(A)(i), 
1153(a)(2)(A), or 1153(d). Proposed 8 CFR 103.7(b)(1)(i)(U)(2). For 
this review, the proposed fee of $750 is the model output cost for a 
Form I-485 filed with Form I-131. Children under the age of 14 cannot 
work in the United States. These children, however, can travel. This is 
$390 less than the proposed fee of $1,140 for adults. Proposed 8 CFR 
103.7(b)(1)(i)(U)(1).
    Currently, the fee is $985 for an adult and $635 for a child under 
the age of 14 filing with a parent ($350 less than the fee for adults). 
8 CFR 103.7(b)(1)(i)(U). In the 2010 Fee Rule, USCIS calculated the 
$635 fee outside of the model due to a lack of available data. The FY 
2016/2017 Fee Review calculated the proposed $750 fee using actual data 
for each of the elements of the model. Therefore, the proposed fee for 
Form I-485 for a child under the age of 14 filing with a parent 
complies more closely with the ABC methodology for full cost recovery 
at a level that tracks its relative burden.
    USCIS proposes to remove the provision at 8 CFR 
103.7(b)(1)(i)(U)(iii) that states, ``The child's application is based 
on a relationship to the same individual who is the basis for the 
child's parent's adjustment of status, or under the same legal 
authority as the parent.'' See proposed 8 CFR 103.7(b)(1)(i)(U). This 
sentence is unnecessary because 8 CFR 103.7(b)(1)(i)(U)(ii) already 
requires that a child must adjust as a derivative to pay the lesser 
fee. See INA section 203(d), 8 U.S.C. 1153(d). This proposed revision 
is a clarifying change to remove a redundancy in the regulatory 
language; it would have no substantive effect.
3. One Fee for a Genealogy Records Request
    USCIS has included the genealogy fees in the FY 2016/2017 IEFA fee 
review. The USCIS genealogy program processes requests for historical 
records of deceased individuals. See Final Rule, Establishment of a 
Genealogy Program, 73 FR 28026 (May 15, 2008). Before creating a 
genealogy program, USCIS processed the requests as Freedom of 
Information Act (FOIA) request workload, which resulted in delays. See 
Proposed Rule, Establishment of a Genealogy Program, 71 FR 20357-8 
(Apr. 20, 2006). DHS created the genealogy program to reduce delays for 
these requests. At the time, USCIS averaged 10,000 such requests over 
four years, see id., and USCIS expected the workload to increase to 
26,000 a year with the new program, see 71 FR 20361. USCIS determined 
that genealogy fees would range between $16 and $55. See 71 FR 20362. 
These proposed fees were based on projected volume and full cost of the 
program. Id. After considering the comments received on the proposed 
genealogy rule, the costs of providing this service, OMB Circular A-25 
guidelines, and the fees charged for similar services, DHS set the fees 
for Forms G-1041 at $20 and G-1041A at $20 or $35 (depending on the 
format requested) in the final rule. 73 FR 28028; 8 CFR 
103.7(b)(1)(i)(E)-(F). Requestors use the Genealogy Records Request, 
Form G-1041A, to obtain copies of USCIS historical records that may 
assist them in conducting genealogical research. Requestors use the 
Genealogy Index Search Request, Form G-1041, to request an index search 
of USCIS historical records.
    The current genealogy program fees were not established based on 
the projected full cost of operating the genealogy research and 
information services of USCIS, although that was permitted by the 
authorizing law. See INA section 286(t)(1), 8 U.S.C. 1356(t)(1).\64\ At 
the time, USCIS did not have clearly segregated records of the full 
cost of operating its genealogy research and information services, and 
DHS has not since adjusted the genealogy program fees. But after seven 
years of operating the program, DHS now has reliable data to determine 
the new fees. USCIS has thus incorporated the genealogy records 
requests fees in the comprehensive costs recovery fee model with the 
aim to simplify the genealogy fee structure.
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    \64\ The statute requires genealogy program fees to be deposited 
as offsetting collections into the IEFA and that the fees for ``such 
research and information services'' may be set at a level that will 
ensure the recovery of the full costs of providing all such 
services. INA sec. 286(t)(1), 8 U.S.C. 1356(t)(1).
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    Current regulations state that the Form G-1041A fee is $20 for each 
file copy from microfilm and $35 for each hard copy. In some cases, the 
requestor may be unable to determine the fee, because the requestor 
will have a file number obtained from a source other than USCIS and 
therefore not know whether the format of the file is microfilm or 
paper. In such cases, individuals may provide the lesser $20 amount and 
if USCIS discovers the relevant file is a paper file, USCIS will notify 
the requestor to remit an additional $15. In addition, USCIS will 
refund the records request fee only when the agency is unable to locate 
the file previously identified in response to the index search request. 
See 8 CFR 103.7(b)(1)(i)(F).
    DHS proposes to charge a single $65 fee for Form G-1041A. See 
proposed 8 CFR 103.7(b)(1)(i)(F). Under the ABC model, USCIS projected 
the cost of the forms G-1041 and G-1041A to be $46 each. The cost is 
based on the projected volumes and costs of the genealogy program. The 
projected costs include a portion of Lockbox costs, genealogy 
contracts, and a portion of costs related to the division that handles 
genealogy, FOIA and similar USCIS workloads. The proposed $65 fee is 
based on the ABC model output, plus an additional $19 to recover the 
applicable administrative costs associated with funding these services, 
such as the USCIS Librarian and other genealogy research and 
information services.\65\ Because the INA contains a separate fee 
setting authorization for the genealogy program to recover the full 
costs of providing all genealogy research and information services, DHS 
does not propose to adjust the ABC model output for genealogy fees 
using the cost reallocation methodology that was used to adjust the 
other fees for which the model output was not used. See INA section 
286(t), 8 U.S.C. 1356(t). Administrative costs, such as the Management 
and Oversight activity cost, range from $33 to $426 for other 
immigration benefit fees. Had USCIS included all such costs in the 
proposed genealogy fees, it would have added at least $141 to the 
proposed genealogy fees. DHS proposes to add only $19 to the model 
output for estimated applicable costs for a total proposed fee of $65.
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    \65\ The Cost Reallocation amount is $18. The additional $1 
results from rounding the proposed fee to the nearest $5 increment.
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4. Dishonored Payments and Failure To Pay the Biometrics Services Fee
    DHS proposes to amend the regulations regarding how USCIS will 
treat a benefit request accompanied by fee payment (in the form of 
check or other financial instrument) that is subsequently returned as 
not payable. Proposed 8 CFR 103.2(a)(7)(ii). DHS also proposes changes 
to provisions governing non-payment of the biometric service fee. 
Proposed 8 CFR 103.17(b).

[[Page 26920]]

Each of these proposed changes is described below.
    Current regulations provide that when a check or other financial 
instrument used to pay a filing fee is subsequently returned as not 
payable, the remitter will be notified and requested to pay the filing 
fee and associated service charge within 14 calendar days, without 
extension. If the benefit request is pending and these charges are not 
paid within 14 days, the benefit request will be rejected as improperly 
filed.\66\ See 8 CFR 103.2(a)(7)(ii). In addition, a receipt issued by 
a DHS officer for any remittance will not be binding upon DHS if the 
remittance is found uncollectible, and legal and statutory deadlines 
will not be deemed to have been met if payment is not made within 10 
business days after notification by DHS of the dishonored form of 
payment. See 8 CFR 103.7(a)(2). Finally, if a benefit request is 
received by DHS without the correct biometric service fee, DHS will 
notify the applicant of the deficiency and take no further action until 
payment is received. 8 CFR 103.17(b)(1). Failure to submit the correct 
biometric service fee within the time allotted in the notice will 
result in denial of the benefit request. Id. In accordance with these 
provisions, when a payment is returned as non-payable, USCIS places the 
immigration benefit request on hold and suspends adjudication. If a 
check is dishonored or payment otherwise fails, USCIS assesses a $30 
charge and pursues the unpaid fee and penalty using administrative debt 
collection procedures. If the biometrics services fee was required and 
is missing, USCIS generally provides the filer 30 days to correct the 
payment. If payment is made within the allotted time, USCIS resumes 
processing the benefit request. If the filer does not correct the 
payment, USCIS rejects the filing. If the biometric fee is not paid, 
USCIS considers the benefit request as abandoned.
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    \66\ By contrast, DHS immediately rejects any application or 
petition submitted without a fee payment instrument. See 8 CFR 
103.2(a)(1) (``Each benefit request or other document must be filed 
with fee(s) as required by regulation. Benefit requests which 
require a person to submit biometric information must also be filed 
with the biometric service fee in 8 CFR 103.7(b)(1), for each 
individual who is required to provide biometrics.''); 8 CFR 
103.2(a)(7)(i) (``A benefit request which is not signed and 
submitted with the correct fee(s) will be rejected.'').
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    DHS proposes to eliminate the three rules requiring that cases be 
held while deficient payments are corrected. See proposed 8 CFR 
103.2(a)(7)(ii), 103.7(a)(2), 103.17(b). As a practical matter, USCIS 
clears payment checks through the Automated Clearing House (ACH) by 
converting checks to electronic payments. Because USCIS converts checks 
into ACH payments, there is currently no or very little delay before 
USCIS knows whether the check is valueless. DHS is proposing that USCIS 
will not begin processing the benefit request until the payment has 
cleared. DHS anticipates that the proposed change would reduce the 
USCIS administrative costs for holding and tracking immigration benefit 
requests with rejected payments. This change would streamline USCIS' 
process for handling immigration benefit requests when payments are 
returned as not payable or do not include the required biometric 
services fee.
    This proposal further recognizes that a fee is a fundamental aspect 
of the benefit request filing. For example, under current 8 CFR 
103.2(a)(7)(ii), an H-1B cap-subject petition \67\ that was submitted 
with a check that was dishonored would be able to preserve its place in 
the lottery as long as the petitioner paid the fee and the 
aforementioned $30 charge within 14 days.\68\ Under proposed 8 CFR 
103.2(a)(7)(ii), an H-1B cap-subject petition that is submitted with a 
check that is dishonored would be rejected and the receipt date would 
not be retained. By providing a 14-day correction window for dishonored 
checks, current regulations permit a benefit request paid with a 
dishonored payment instrument to secure a place in line ahead of a 
benefit request that was accompanied by a proper payment. DHS believes 
that this result is unfair, particularly because a rejected applicant, 
petitioner, or requestor may complete a new application and refile it 
immediately with proper payment.
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    \67\ Congress has established limits on the number of temporary 
workers who may be granted H-1B nonimmigrant status each fiscal year 
(commonly known as the ``H-1B cap''). See INA section 214(g), 8 
U.S.C. 1184(g). Due to the historically high demand for cap-subject 
H-1B workers, the H-1B cap usually is reached within days of the 
opening of the H-1B filing period for a new fiscal year.
    \68\ USCIS employs a random selection process after announcing a 
final date on which it will receive H-1B petitions. USCIS refers to 
this day as the ``final receipt date.'' See 8 CFR 
214.2(h)(8)(ii)(B). All petitions submitted properly prior to or on 
the ``final receipt date'' undergo a random selection process to 
determine which petitions can be processed to completion and, if 
otherwise eligible, which beneficiaries are able to receive a new H-
1B visa number.
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    DHS is also proposing minor changes to this same provision to 
clarify when USCIS would consider a benefit request received and when 
USCIS would reject a benefit request. Proposed 8 CFR 103.2(a)(7)(i)-
(ii). Currently, numerous regulations address filing requirements for 
different benefits, including rejection criteria.\69\ To ensure clarity 
among these numerous regulations, DHS proposes to delete the reference 
to parts 204, 245, and 245a, and insert in its place a corresponding 
revision to 8 CFR 103.2(a)(7)(ii)(C) providing that a benefit request 
would be rejected if it is not, among other things, filed in compliance 
with the regulations governing the filing of the specific application, 
petition, form, or request. Finally, DHS proposes to address the 
possibility that special rules may apply for paying fees at a 
Department of Homeland Security office located outside of the United 
States. We propose to clarify fees paid in person overseas must be made 
payable in accordance with the guidance specific to the applicable U.S. 
Government office when submitting it. Proposed 8 CFR 103.7(a)(2).
---------------------------------------------------------------------------

    \69\ Current 8 CFR 103.2(a)(7)(i) states, in part, ``[e]xcept as 
provided in 8 CFR parts 204, 245, or 245a, a benefit request will be 
considered received by USCIS as of the actual date of receipt at the 
location designated for filing such benefit request whether 
electronically or in paper format.'' 8 CFR 245.2(a)(2) requires a 
current priority date for proper filing, 8 CFR 245a.2(e) permits 
receipt at a Qualified Designated Entity as opposed to a USCIS 
office, and 8 CFR 204.5(a) provides that a petition is considered 
properly filed only if it is accompanied by any required individual 
labor certification. In addition, regulations specific to a given 
benefit request produce filing requirements beyond those required 
under 8 CFR 103.2. See, e.g., 8 CFR 212.7(e)(5)(ii) (providing 
additional filing requirements for an application for a provisional 
unlawful presence waiver).
---------------------------------------------------------------------------

5. Refunds
    DHS proposes a minor change in the provision regarding USCIS fee 
refunds. See 8 CFR 103.2(a)(1) (providing that filing fees and 
biometric service fees are non-refundable.).\70\ In general, and except 
for a premium processing fee under 8 CFR 103.7(e)(2)(i),\71\ USCIS does 
not refund a fee regardless of the decision on the immigration benefit

[[Page 26921]]

request. USCIS will refund a fee if the agency determines that an 
administrative error occurred resulting in the incorrect collection of 
a fee. Examples of USCIS errors include:
---------------------------------------------------------------------------

    \70\ USCIS is proposing no changes with regard to the 
prohibitions on refunds of a Notice of Appeal or Motion (Form I-
290B) in 8 CFR 103.3(a)(2), which provide that the fee paid with an 
appeal filed too late or by a person or entity not entitled to file 
it will not be refunded regardless of the action taken. See also 8 
CFR 103.5(a)(iii)(B) (requiring a motion to reopen to be accompanied 
by a nonrefundable fee as set forth in 8 CFR 103.7) (emphasis 
added). Likewise, no changes are proposed to the prohibition on 
refunds for a Genealogy Index Search Request (Form G-1041), proposed 
8 CFR 103.7(b)(1)(i)(E), the limited refunds for a Genealogy Records 
Request (Form G-1041A), proposed 8 CFR 103.7(b)(1)(i)(F), or no 
refund of the DCL System Costs Fee. 8 CFR 103.7(b)(ii)(A).
    \71\ USCIS automatically refunds the fee for a Request for 
Premium Processing (Form I-907) if USCIS has not reached a final 
decision (approval, denial, notice of intent to deny, or request for 
evidence) or opened an investigation relating to the benefit request 
for which premium processing was requested within 15 days of its 
receipt. 8 CFR 103.7(e)(2). No changes are proposed to that 
provision.
---------------------------------------------------------------------------

     Unnecessary filings. Cases in which USCIS (or DOS in the 
case of an immigration benefit request filed overseas) erroneously 
requests that an individual file an unnecessary form along with the 
associated fee; and
     Accidental payments. Cases in which an individual pays a 
required fee more than once or otherwise pays a fee in excess of the 
amount due and USCIS (or the DOS in the case of an immigration benefit 
request filed overseas) erroneously accepts the erroneous fee.
    DHS is proposing that 8 CFR 103.2(a)(1) be revised to provide that 
fees are ``generally'' not refunded. See proposed 8 CFR 103.2(a)(1). 
This would address concern that the current regulatory text does not 
explicitly permit refunds at DHS discretion. DHS currently grants such 
refunds because as electronic filings and associated electronic 
payments have increased, there has been an increase in the number of 
erroneous payments where refunds are appropriate. For example, an 
applicant may be charged twice in error due to technical issues related 
to the specific device, software, or internet connection used to pay 
the fee. In such a case, if the request is not rejected for an 
erroneous payment, a refund may be appropriate. DHS is proposing to 
continue the practice of providing these refunds in limited 
circumstances where refunds are justified. Applicants would continue to 
request refunds by calling the USCIS customer service line or 
submitting written requests to the office having jurisdiction over the 
relevant filing.

C. Fee-Related Issues Noted for Consideration

    DHS has identified a number of issues that do not affect the 2016/
2017 Fee Review but which, for a variety of reasons, merit some 
discussion. No changes are proposed related to the issues discussed in 
this section. USCIS may discuss these issues in future biennial fee 
reviews or in conjunction with other USCIS Fee Rules. DHS welcomes 
comments on all facets of the 2016/2017 Fee Review, this proposed rule, 
and USCIS fees in general, regardless of whether changes have been 
proposed here.
1. Premium Processing
    USCIS is proposing no change to premium processing fees or 
regulations but notes it here for consideration due to stakeholder 
interest, past comments, and correspondence on the subject. Section 
286(u) of the INA, 8 U.S.C. 1356(u), authorizes DHS to establish and 
collect a fee for a premium processing service for employment-based 
petitions and applications. Revenue from premium processing fees fund 
the costs associated with providing the premium processing service, as 
well as infrastructure improvements in the adjudications and customer 
service processes.\72\
---------------------------------------------------------------------------

    \72\ Premium processing fees are paid in addition to the regular 
form fee. For example, individuals would pay the proposed $700 fee 
for a Form I-140 under this rule, plus $1,225 for premium 
processing. Premium processing prioritizes the applicable 
application or petition for adjudication. The additional fee permits 
the devotion of specific resources to resolving that immigration 
benefit request.
---------------------------------------------------------------------------

    Congress set the premium processing fee at $1,000 and authorized 
USCIS to adjust the fee for inflation, as determined by the Consumer 
Price Index (CPI). USCIS adjusted the premium processing fee by using 
the CPI in the 2010 Fee Rule to $1,225. See 75 FR 58979; 8 CFR 
103.7(b)(1)(i)(RR). Because projected premium processing revenue is 
sufficient to cover the projected costs of providing the premium 
service and other permissible infrastructure investments, USCIS is 
proposing no change to the premium processing fee. DHS is not barred 
from increasing the premium processing fee outside of rulemaking should 
circumstances require it.
    DHS also notes that commenters regularly request that DHS: Extend 
premium processing beyond the limits of section 286(u) to other 
immigration benefit requests. See 75 FR 58978. The FY 2016/2017 Fee 
Review did not analyze the potential effect of premium processing for 
other forms. Congress established the premium processing fee at an 
amount it determined to be appropriate and permitted USCIS to increase 
it based on inflation. Id. USCIS has not incurred any operating 
deficits as a result of the amount of that fee. These fees more than 
cover the costs of providing premium processing for the associated 
benefits. Nevertheless, USCIS has many years' experience in processing 
certain employment-based cases using premium processing. It would be 
very difficult to estimate the staff, resources, and costs necessary to 
ensure the processing of additional benefit types within a certain time 
frame, especially when those cases may require other types of 
background checks, interviews and additional steps that USCIS does not 
generally control. Expanding the premium processing program would 
require USCIS to estimate the costs of a service that does not 
currently exist with sufficient confidence that it can deliver the 
service promised and not impair service in other product lines. To 
study a potential new premium processing program would require the 
devotion of considerable resources. Thus, DHS proposes no extension of 
premium processing beyond its current usage. Comments, however, are 
welcome on that subject.
    USCIS currently offers premium processing to business customers 
filing: A Petition for Nonimmigrant Worker, Form I-129, and an 
Immigrant Petition for Alien Worker, Form I-140, in certain visa 
classifications. In the 2007 and 2010 Fee Rules, USCIS indicated that 
it would dedicate premium processing fee revenue for transformation 
activities.\73\ At that time, projected annual premium processing 
revenues and annual transformation investment costs were roughly equal. 
Since that time, the projected lifecycle costs of the transformation 
investment, which now includes USCIS' electronic immigration system, 
have decreased, whereas demand for USCIS premium processing services 
has grown, resulting in an imbalance between revenue and spending.
---------------------------------------------------------------------------

    \73\ Transformation is an agency-wide effort to transition the 
agency from a fragmented, paper-based operational environment to a 
centralized environment facilitating electronic processing of 
requests for immigration benefits through the USCIS electronic 
immigration system (ELIS). This investment is a large-scale, complex 
undertaking to modernize USCIS business processes using information 
technology-enabled re-engineering. ELIS will employ the types of 
online customer accounts used in the private sector to manage 
transactions and track activities while helping USCIS enforce and 
administer the immigration laws. The revised processes, enabled by 
ELIS, will help USCIS meet customer expectations for on-demand 
information and immediate real-time electronic service over the 
Internet.
---------------------------------------------------------------------------

    In the FY 2016/2017 Fee Review, USCIS identified $79.3 million in 
additional costs to be funded through premium processing fee revenue, 
thereby reducing the costs that USCIS must recover through its standard 
(non-premium) immigration benefit request fees. Consistent with INA 
section 286(u), 8 U.S.C. 1186(u), DHS intends to use premium processing 
revenue to pay for the salaries of immigration services officers that 
process this workload, associated supervisory and support staff, and 
associated non-personnel costs. Premium processing revenue will also be 
used to fund the salaries and benefits costs for Office of 
Transformation Coordination staff that manage USCIS' electronic 
immigration system and transformation investment.

[[Page 26922]]

USCIS also identified additional costs for staff adjudicating requests 
for premium processing service, transformation-related expenses, and 
infrastructure investments being made to enhance the adjudication 
process and customer service, that the agency intends to fund with 
premium processing fee collections instead of continuing to use general 
filing fees.
2. Accommodating E-Filing and Form Flexibility
    DHS has endeavored, as it did in the 2010 fee rule, to propose fees 
based on form titles instead of form numbers to avoid prescribing fees 
in a manner that could undermine the transformation process. See 
proposed 8 CFR 103.7(b)(1). Form numbers are included for informational 
purposes but are not intended to restrict the ability of USCIS to 
collect a fee for a benefit request that falls within the parameters of 
the adjudication for which the fee is promulgated. As USCIS modernizes 
its processes and systems to allow more people to file applications 
online, the agency may collect fees for requests that do not have a 
form number or do not have the same form number as described in 
regulations. This could occur, for example, if USCIS developed an 
online version of a request that individuals often submit with 
applications for employment authorization. In this situation, USCIS may 
find it best to consolidate the two requests without separately 
labelling the different sections pursuant to the relevant form numbers. 
DHS would still collect the required fee for the underlying benefit 
request as well as the request for employment authorization, but the 
actual online request would not necessarily contain form numbers 
corresponding to each separate request.
    Likewise, if USCIS determines that efficiency and customer service 
would be improved by breaking paper Form I-131 into separate paper 
forms (for instance, USCIS could institute a separate form and form 
number for advance parole, humanitarian parole, parole in place, 
refugee travel documents, reentry permits, or boarding documents), 
USCIS could do so and continue to charge the Form I-131 fee that is 
included in this rule. This structure permits USCIS to change forms 
more easily without having to perform a new fee study each time the 
agency chooses to do so.
3. Fee Waivers
    USCIS may waive the fee for certain immigration benefit requests 
when the individual requesting the benefit is unable to pay the fee. 
See 8 CFR 103.7(c). To request a fee waiver, the individual must submit 
a written waiver request for permission to have their benefit request 
processed without payment. The waiver request must state the person's 
belief that he or she is entitled to or deserving of the benefit 
requested, the reasons for his or her inability to pay, and evidence to 
support the reasons indicated. See 8 CFR 103.7(c)(2). There is no 
appeal of the denial of a fee waiver request. See id. Before 2007, 
USCIS could waive any fee, even where the fee waiver would be 
inconsistent with the underlying benefit request. For example, prior to 
2007, USCIS could waive fees for companies seeking to sponsor foreign 
workers; individuals seeking status based on substantial business 
investments; or individuals seeking to sponsor foreign relatives to 
whom the sponsors must provide a financial safety net. See 72 FR 4912. 
Since 2007, however, DHS has limited the USCIS fees that may be waived 
in 8 CFR 103.7(c)(3) based on the general premise that fee waivers must 
be consistent with any financial considerations that apply to the 
status or benefit sought. See 8 CFR 103.7(c)(1)(ii).
    Following the 2010 Fee Rule, USCIS also issued guidance to the 
field to streamline fee waiver adjudications and make them more 
consistent among offices and form types nationwide. See Policy 
Memorandum, PM-602-0011.1, Fee Waiver Guidelines as Established by the 
Final Rule of the USCIS Fee Schedule; Revisions to Adjudicator's Field 
Manual (AFM) Chapter 10.9, AFM Update AD11-26 (Mar. 13, 2011) (``Fee 
Waiver Policy''). This guidance clarifies what measures of income can 
be used and the types of documentation that are acceptable for 
individuals to present as demonstration that they are unable to pay a 
fee when requesting a fee waiver. In June 2011, USCIS issued the 
Request for Fee Waiver, Form I-912, which is an optional standardized 
form with instructions that can be used to request a fee waiver in 
accordance with the fee waiver guidance.\74\ USCIS previously engaged 
in a holistic analysis of the individual's finances to determine 
inability to pay. See, e.g., William R. Yates, Field Guidance on 
Granting Fee Waivers Pursuant to 8 CFR 103.7(c), dated March 4, 2004. 
Under the fee waiver guidance, USCIS established a streamlined process 
under which it will usually waive the entire fee and the biometric 
services fee for forms listed in 8 CFR 103.7(c)(3) for applicants who:
---------------------------------------------------------------------------

    \74\ The form and its instructions may be viewed at http://www.uscis.gov/i-912.

     Are currently receiving a means-tested benefit;
     Have household income at or below 150 percent of the 
Federal poverty level; or
     Are experiencing extreme financial hardship such as 
unexpected medical bills or emergencies. AFM Chapter 10.9(b).

The 2010 Fee Rule also authorized the USCIS Director to approve and 
suspend exemptions from fees or provide that the fee may be waived for 
a case or class of cases that is not otherwise provided in 8 CFR 
103.7(c). See 75 FR 58990; 8 CFR 103.7(d).
    As noted in the Fiscal Year (FY) 2016/2017 Immigration Examinations 
Fee Account Fee Review Supporting Documentation, the projected annual 
impact of fee waivers and exemptions has increased markedly since the 
2010 Fee Rule from $191 million to $613 million. Applicants, 
petitioners, and requestors that pay a fee cover the cost of processing 
requests that are fee-waived or fee-exempt. Although DHS does not 
currently plan to do so, it may in the future revisit the USCIS fee 
waiver guidance with respect to what constitutes inability to pay under 
8 CFR 103.7(c). DHS welcomes comment on this issue.

VII. Volume

    USCIS uses two types of volume data in the fee review. Workload 
volume is a projection of the total number of immigration benefit 
requests that will be received in a fiscal year. Fee-paying volume is a 
projection of the number of applicants, petitioners, and requestors 
that will pay a fee when filing requests for immigration benefits. Not 
all applicants, petitioners, or requestors pay a fee. Those applicants, 
petitioners, and requestors for whom USCIS grants a fee waiver or to 
whom an exemption applies are represented in the workload volume but 
not the fee-paying volume. Applicants, petitioners, and requestors that 
pay a fee fund the cost of processing requests for fee-waived or fee-
exempt immigration benefit requests.

A. Workload Volume and Volume Projection Committee

    USCIS uses statistical time series modeling and immigration receipt 
data from the last 15 years, as well as the best available internal 
assessment of future developments (such as annualized data prepared by 
the USCIS Office of Performance and Quality) to develop workload volume 
projections. All relevant USCIS directorates and program offices are 
represented on the USCIS Volume Projection Committee

[[Page 26923]]

(VPC). The VPC forecasts USCIS workload volume with subject-matter-
expert input from USCIS Service Centers, the National Benefits Center, 
the RAIO Directorate, and Regional, District, and Field Offices. Input 
from these offices helps refine projected volume estimates. The VPC 
reviews short- and long-term volume trends. In most cases, time series 
models provide volume projections by form type. The time series models 
use historical receipts data to determine patterns (such as level, 
trend, and seasonality) or correlations with historical events, which 
in turn are used to derive the projected receipts. Where possible, the 
models are also used to determine relationships between different 
benefit request types. Workload volumes are a key element used when 
determining the USCIS resources needed to process benefit requests 
within established adjudicative processing goals. They are also the 
primary cost driver for assigning activity costs to immigration 
benefits and biometric services in the USCIS ABC model.

                                       Table 4--Workload Volume Comparison
----------------------------------------------------------------------------------------------------------------
                                                                      Average         Average
                                                                  annual FY 2010/ annual FY 2016/
                   Immigration benefit request                    2011 projected  2017 projected    Difference
                                                                     workload        workload
                                                                     receipts        receipts
----------------------------------------------------------------------------------------------------------------
I-90 Application to Replace Permanent Resident Card.............         540,000         810,707         270,707
I-102 Application for Replacement/Initial Nonimmigrant Arrival-           17,165          10,143          -7,022
 Departure Document.............................................
I-129 Petition for a Nonimmigrant Worker........................         395,000         432,156          37,156
I-129F Petition for Alien Fianc[eacute](e)......................          54,000          45,351          -8,649
I-130 Petition for Alien Relative...............................         690,520         911,349         220,829
I-131/I-131A Application for Travel Document....................         256,255         256,622             367
I-140 Immigrant Petition for Alien Worker.......................          75,000          88,602          13,602
I-290B Notice of Appeal or Motion...............................          28,734          24,706          -4,028
I-360 Petition for Amerasian, Widow(er) or Special Immigrant....          17,669          26,428           8,759
I-485 Application to Register Permanent Residence or Adjust              526,000         593,717          67,717
 Status.........................................................
I-526 Immigrant Petition by Alien Entrepreneur..................           1,399          14,673          13,274
I-539 Application to Extend/Change Nonimmigrant Status..........         195,000         172,001         -22,999
I-600/I-600A; I-800/I-800A Orphan Petitions.....................          25,241          15,781          -9,460
I-601A Provisional Unlawful Presence Waiver.....................             N/A          42,724          42,724
I-687 Application for Status as a Temporary Resident............              48              18             -30
I-690 Application for Waiver on Grounds of Inadmissibility......              74              21             -53
I-694 Notice of Appeal of Decision..............................              50              39             -11
I-698 Application to Adjust Status From Temporary to Permanent               704              91            -613
 Resident.......................................................
I-751 Petition to Remove the Conditions of Residence............         183,000         173,000         -10,000
I-765 Application for Employment Authorization..................         720,000         747,825          27,825
I-800A Supp. 3 Request for Action on Approved Form I-800A.......             N/A           1,585           1,585
I-817 Application for Family Unity Benefits.....................           1,750           2,069             319
I-824 Application for Action on an Approved Application or                20,961          10,921         -10,040
 Petition.......................................................
I-829 Petition by Entrepreneur to Remove Conditions.............             441           3,562           3,121
I-910 Application for Civil Surgeon Designation.................           3,410             609          -2,801
I-924 Application for Regional Center Designation Under the                  132             400             268
 Immigrant Investor Program.....................................
I-924A Annual Certification of Regional Center..................             N/A             882             882
I-929 Petition for Qualifying Family Member of a U-1                         N/A             575             575
 Nonimmigrant...................................................
N-300 Application to File Declaration of Intention..............              45              41              -4
N-336 Request for Hearing on a Decision in Naturalization                  4,145           4,666             521
 Proceedings....................................................
N-400 Application for Naturalization............................         693,890         830,673         136,783
N-470 Application to Preserve Residence for Naturalization                   621             362            -259
 Purposes.......................................................
N-565 Application for Replacement Naturalization/Citizenship              29,298          28,914            -384
 Document.......................................................
N-600/600K Naturalization Certificate Applications..............          45,347          69,723          24,376
I-191, I-192, I-193, I-212, I-601, I-612 Waiver Forms...........          31,432          71,527          40,095
USCIS Immigrant Fee.............................................         215,000         472,511         257,511
G-1041 Genealogy Index Search Request...........................             N/A           3,605           3,605
G-1041A Genealogy Records Request...............................             N/A           2,410           2,410
                                                                 -----------------------------------------------
    Subtotal....................................................       4,772,331       5,870,989       1,101,459
    Biometrics..................................................       2,048,177       3,028,254         980,077
                                                                 -----------------------------------------------
        Grand Totals............................................       6,820,508       8,899,243       2,081,536
----------------------------------------------------------------------------------------------------------------

B. Fee-Paying Volume and Methodology

    USCIS uses historical revenue and receipt data to determine the 
number of individuals that paid the fee for each immigration benefit 
type. Total revenue for an immigration benefit request is divided by 
its fee to determine the number of fee-paying immigration benefit 
requests. Fee-paying receipts are compared to the total number of 
receipts (workload volume) to determine a fee-paying percentage for 
each immigration benefit request. When appropriate, projected fee-
paying volumes are adjusted to reflect filing trends and anticipated 
changes.

[[Page 26924]]



                                      Table 5--Fee-Paying Volume Comparison
----------------------------------------------------------------------------------------------------------------
                                                                      Average         Average
                                                                  annual FY 2010/ annual FY 2016/
                   Immigration benefit request                       2011 fee        2017 fee       Difference
                                                                      paying          paying
                                                                    projection      projection
----------------------------------------------------------------------------------------------------------------
I-90 Application to Replace Permanent Resident Card.............         518,400         718,163         199,763
I-102 Application for Replacement/Initial Nonimmigrant Arrival-           17,165           9,499          -7,666
 Departure Document.............................................
I-129 Petition for a Nonimmigrant Worker........................         395,000         427,778          32,778
I-129F Petition for Alien Fianc[eacute](e)......................          39,960          39,277            -683
I-130 Petition for Alien Relative...............................         690,520         907,512         216,992
I-131/I-131A Application for Travel Document....................         192,255         194,461           2,206
I-140 Immigrant Petition for Alien Worker.......................          75,000          88,602          13,602
I-290B Notice of Appeal or Motion...............................          28,734          20,955          -7,779
I-360 Petition for Amerasian, Widow(er) or Special Immigrant....           6,957           8,961           2,004
I-485 Application to Register Permanent Residence or Adjust              480,000         473,336          -6,664
 Status.........................................................
I-526 Immigrant Petition by Alien Entrepreneur..................           1,343          14,673          13,330
I-539 Application to Extend/Change Nonimmigrant Status..........         195,000         171,616         -23,384
I-600/600A; I-800/800A Orphan Petitions.........................          16,211           5,811         -10,400
I-601A Provisional Unlawful Presence Waiver.....................             N/A          42,724          42,724
I-687 Application for Status as a Temporary Resident............              43               0             -43
I-690 Application for Waiver on Grounds of Inadmissibility......              74              17             -57
I-694 Notice of Appeal of Decision..............................              50              39             -11
I-698 Application to Adjust Status From Temporary to Permanent               605              91            -514
 Resident.......................................................
I-751 Petition to Remove the Conditions of Residence............         177,510         162,533         -14,977
I-765 Application for Employment Authorization..................         511,200         397,954        -113,247
I-800A Supp. 3 Request for Action on Approved Form I-800A.......             N/A             746             746
I-817 Application for Family Unity Benefits.....................           1,750           1,988             238
I-824 Application for Action on an Approved Application or                20,961          10,828         -10,134
 Petition.......................................................
I-829 Petition by Entrepreneur to Remove Conditions.............             256           3,562           3,306
I-910 Application for Civil Surgeon Designation.................           1,160             609            -551
I-924 Application for Regional Center Designation Under the                  132             400             268
 Immigrant Investor Program.....................................
I-924A Annual Certification of Regional Center..................             N/A             882             882
I-929 Petition for Qualifying Family Member of a U-1                         N/A             257             257
 Nonimmigrant...................................................
N-300 Application to File Declaration of Intention..............              45              36              -9
N-336 Request for Hearing on a Decision in Naturalization                  4,145           3,593            -553
 Proceedings....................................................
N-400 Application for Naturalization............................         684,390         631,655         -52,736
N-470 Application to Preserve Residence for Naturalization                   621             360            -261
 purposes.......................................................
N-565 Application for Replacement Naturalization/Citizenship              24,903          23,491          -1,413
 Document.......................................................
N-600/600K Naturalization Certificate Applications..............          45,347          46,870           1,523
I-191, I-192, I-193, I-212, I-601, I-612 Waiver Forms...........          31,432          41,902          10,470
USCIS Immigrant Fee.............................................         215,000         472,511         257,511
G-1041 Genealogy Index Search Request...........................             N/A           3,605           3,605
G-1041A Genealogy Records Request...............................             N/A           2,410           2,410
                                                                 -----------------------------------------------
    Subtotal....................................................       4,376,169       4,929,707         553,533
    Biometrics..................................................       1,950,603       2,598,639         648,036
                                                                 -----------------------------------------------
        Grand Totals............................................       6,326,772       7,528,346       1,201,569
----------------------------------------------------------------------------------------------------------------

VIII. Completion Rates

    USCIS completion rates are the average hours per adjudication of an 
immigration benefit request. They identify the adjudicative time 
required to complete (render a decision on) specific immigration 
benefit request types. The completion rate for each benefit type 
represents an average. Completion rates reflect what is termed ``touch 
time'' or the time an employee with adjudicative responsibilities 
actually handles the case. It does not reflect ``queue time'' or time 
spent waiting, for example, for additional evidence or supervisory 
approval. It does not reflect the total processing time customers can 
expect to wait for a decision on their case after USCIS accepts it.
    USCIS requires the employees who adjudicate immigration benefit 
requests to report adjudication hours and case completions by benefit 
type. Adjudication hours are divided by the number of completions for 
the same time period to determine an average completion rate. In 
addition to using this data to determine fees, completion rates help 
determine staffing allocations appropriate to handle the projected 
workload. The Office of Performance and Quality, field offices, and 
regional management scrutinize the data to ensure accuracy. When the 
data is inconsistent and anomalies are identified, the Office of 
Performance and Quality contacts the reporting office and makes 
necessary adjustments. USCIS has confidence in the data, given the 
consistency of reporting over the last several years. The continual 
availability of the information makes it easier for USCIS to update 
cost information more frequently for fee review and cost management 
purposes.

[[Page 26925]]



              Table 6--Completion Rates per Benefit Request
                [Projected adjudication hours/completion]
------------------------------------------------------------------------
               Immigration benefit request                 Service-wide
------------------------------------------------------------------------
I-90 Application to Replace Permanent Resident Card.....            0.21
I-102 Application for Replacement/Initial Nonimmigrant              0.48
 Arrival-Departure Document.............................
I-129 Petition for a Nonimmigrant Worker................            0.83
I-129F Petition for Alien Fianc[eacute](e)..............            0.65
I-130 Petition for Alien Relative.......................            0.75
I-131/I-131A Application for Travel Document............            0.21
I-140 Immigrant Petition for Alien Worker...............            1.68
I-290B Notice of Appeal or Motion.......................            1.22
I-360 Petition for Amerasian, Widow(er) or Special                  1.97
 Immigrant..............................................
I-485 Application to Register Permanent Residence or                1.63
 Adjust Status..........................................
I-526 Immigrant Petition by Alien Entrepreneur..........            6.50
I-539 Application to Extend/Change Nonimmigrant Status..            0.40
I-600/600A; I-800/800A Orphan Petitions.................            2.14
I-601A Application for Provisional Unlawful Presence                2.84
 Waiver.................................................
I-687 Application for Status as a Temporary Resident                4.12
 Under Section 245A of the Immigration and Nationality
 Act....................................................
I-690 Application for Waiver on Grounds of                          0.89
 Inadmissibility........................................
I-694 Notice of Appeal of Decision under Section 210 or             2.10
 245A...................................................
I-698 Application to Adjust Status From Temporary to                3.80
 Permanent Resident (Under Section 245A of the INA).....
I-751 Petition to Remove the Conditions of Residence....            0.99
I-765 Application for Employment Authorization..........            0.20
I-800A Supplement 3 Request for Action on Approved Form             1.10
 I-800A.................................................
I-817 Application for Family Unity Benefits.............            0.92
I-824 Application for Action on an Approved Application             0.59
 or Petition............................................
I-829 Petition by Entrepreneur to Remove Conditions.....            5.50
I-910 Application for Civil Surgeon Designation.........            1.81
I-924 Application for Regional Center Designation Under            40.00
 the Immigrant Investor Program.........................
I-924A Annual Certification of Regional Center..........            5.00
N-300 Application to File Declaration of Intention......            1.64
N-336 Request for Hearing on a Decision in                          2.60
 Naturalization Proceedings.............................
N-400 Application for Naturalization....................            1.25
N-470 Application to Preserve Residence for                         1.83
 Naturalization Purposes................................
N-565 Application for Replacement Naturalization/                   0.59
 Citizenship Document...................................
N-600/N-600K Naturalization Certificate Applications....            1.00
I-191, I-192, I-193, I-212, I-601, I-612 Waiver Forms...            1.18
------------------------------------------------------------------------

    USCIS does not calculate completion rates for the following 
immigration benefit requests, forms, or other services, due to the 
special nature of their processing as explained below:
     Biometric Services. Application Support Centers and the 
Biometrics Division incur certain costs, which are assigned to this 
fee. Completion rates are not necessary to assign processing activity 
costs to this product. See proposed 8 CFR 103.7(b)(1)(i)(C).
     USCIS Immigrant Fees. USCIS does not adjudicate immigrant 
visa benefit requests. Rather, individuals located outside of the 
United States apply with a Department of State overseas consular 
officer for an immigrant visa. If DOS issues the immigrant visa, the 
individual may apply with a U.S. Customs and Border Protection officer 
for admission to the United States as an immigrant at a port of entry. 
This fee represents USCIS costs to create and maintain files and to 
issue permanent resident cards to individuals who go through this 
process. See proposed 8 CFR 103.7(b)(1)(i)(D) (changing the fee's title 
to ``USCIS Immigrant Fee'').
     Refugee and Asylee Processing. Refugee Division and Asylum 
Division costs are not directly assigned to any fee and are covered by 
immigration benefit requests that pay fees. USCIS does not charge a fee 
for the following:
    [cir] Application for Asylum and Withholding of Removal, Form I-
589;
    [cir] Registration for Classification as a Refugee, Form I-590;
    [cir] Application By Refugee For Waiver of Grounds of 
Excludability, Form I-602; and
    [cir] Refugee/Asylee Relative Petition, Form I-730.
     Other Forms Exempt from Fees. The following forms are also 
not discussed in this rule as applicants for these form types are 
exempt from paying a fee:
    [cir] Application for Posthumous Citizenship, Form N-644;
    [cir] Application for T Nonimmigrant Status, Form I-914; and
    [cir] Petition for U Nonimmigrant Status, Form I-918.
     Forms with Uncertain Fee Revenue. These form types may be 
terminated under current law, or may cease due to a reduction in the 
eligible population, and DHS proposes to not rely on their uncertain 
fee revenue streams for recovering USCIS operational expenses. The 
following forms are excluded from discussion in this rule because, as 
discussed earlier in this preamble, this proposed rule does not propose 
to change or establish a special fee for those programs:
    [cir] Application for Temporary Protected Status, Form I-821; \75\
---------------------------------------------------------------------------

    \75\ The proposed rule would, however, change the location of 
the reference to the fee in the Code of Federal Regulations (CFR). 
See proposed 8 CFR 103.7(b)(1)(i)(NN).
---------------------------------------------------------------------------

    [cir] Consideration of Deferred Action for Childhood Arrivals, Form 
I-821D; and
    [cir] Application for Suspension of Deportation or Special Rule 
Cancellation of Removal, Form I-881.\76\
---------------------------------------------------------------------------

    \76\ The proposed rule would change the location of the 
reference to the fee in the CFR. See proposed 8 CFR 
103.7(b)(1)(i)(QQ).
---------------------------------------------------------------------------

IX. Proposed Fee Adjustments to IEFA Immigration Benefits

    Because projected USCIS costs for FY 2016 and 2017 exceed projected 
revenue by an average of $569 million each year, USCIS must adjust the 
fee schedule to recover the full cost of processing immigration 
benefits, and to continue to

[[Page 26926]]

maintain or improve current service delivery standards.
    After resource costs are identified, they are distributed to USCIS' 
primary processing activities in the ABC model. Table 7 outlines total 
IEFA costs by activity.

                                    Table 7--Projected IEFA Costs by Activity
                                             [Dollars in thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                                   FY 2016/2017
                            Activity                                  FY 2016         FY 2017         average
----------------------------------------------------------------------------------------------------------------
Perform Biometrics Services.....................................        $194,670        $197,837        $196,254
Make Determination..............................................       1,268,309       1,302,756       1,285,533
Management and Oversight........................................         588,262         592,151         590,206
Inform the Public...............................................         281,668         288,187         284,927
Records Management..............................................         238,271         240,777         239,524
Fraud Detection and Prevention..................................         176,530         180,544         178,537
Intake..........................................................          94,736          93,120          93,928
Direct Costs....................................................          56,444          58,476          57,460
Conduct TECS Check..............................................          52,829          53,994          53,412
Issue Document..................................................          31,975          32,632          32,304
Systematic Alien Verification for Entitlements..................          25,330          26,074          25,702
                                                                 -----------------------------------------------
    Total IEFA Costs............................................       3,009,024       3,066,548       3,037,786
----------------------------------------------------------------------------------------------------------------

    The activity costs are then distributed to the immigration benefit 
requests. Table 8 summarizes total revenue by immigration benefit 
request based on the proposed fee schedule.

 Table 8--Projected FY 2016/2017 Average Annual Revenue per Immigration
                                 Benefit
                         [Dollars in thousands]
------------------------------------------------------------------------
               Immigration benefit request                    Revenue
------------------------------------------------------------------------
G-1041 Genealogy Index Search Request...................            $234
G-1041A Genealogy Records Request.......................             157
I-90 Application to Replace Permanent Resident Card.....         326,764
I-102 Application for Replacement/Initial Nonimmigrant             4,227
 Arrival-Departure Document.............................
I-129 Petition for a Nonimmigrant worker................         196,778
I-129F Petition for Alien Fianc[eacute](e)..............          21,013
I-130 Petition for Alien Relative.......................         485,519
I-131/I-131A Application for Travel Document............         111,815
I-140 Immigrant Petition for Alien Worker...............          62,021
I-290B Notice of Appeal or Motion.......................          14,145
I-360 Petition for Amerasian Widow(er) or Special                  3,898
 Immigrant..............................................
I-485 Application to Register Permanent Residence or             539,603
 Adjust Status..........................................
I-526 Immigrant Petition by Alien Entrepreneur..........          53,923
I-539 Application to Extend/Change Nonimmigrant Status..          63,498
I-600/600A/800/800A Orphan Petitions....................           4,504
I-601A Provisional Unlawful Presence Waiver.............          26,916
I-690 Application for Waiver of Grounds of                            12
 Inadmissibility........................................
I-694 Notice of Appeal of Decision......................              35
I-698 Application to Adjust Status From Temporary to                 152
 Permanent Resident (Under Section 245A of the INA).....
I-751 Petition to Remove Conditions on Residence........          96,707
I-765 Application for Employment Authorization..........         163,161
I-800A Supplement 3 Request for Action on Approved Form              287
 I-800A.................................................
I-817 Application for Family Unity Benefits.............           1,193
I-824 Application for Action on an Approved Application            5,035
 or Petition............................................
I-829 Petition by Entrepreneur to Remove Conditions.....          13,356
I-910 Application for Civil Surgeon Designation.........             478
I-924 Application for Regional Center Designation Under            7,109
 the Immigrant Investor Program.........................
I-924A Annual Certification of Regional Center..........           2,677
I-929 Petition for Qualifying Family Member of a U-1                  59
 Nonimmigrant...........................................
N-300 Application to File Declaration of Intention......              10
N-336 Request for Hearing on a Decision in                         2,515
 Naturalization Proceedings.............................
N-400 Application for Naturalization....................         404,259
N-470 Application to Preserve Residence for                          128
 Naturalization Purposes................................
N-565 Application for Replacement Naturalization/                 13,037
 Citizenship Document...................................
N-600/N-600K Application for Certificate of Citizenship.          54,838
I-191, I-192, I-193, I-212, I-601, I-602, I-612 Waiver            38,968
 Forms..................................................
USCIS Immigrant Fee.....................................         103,952
Biometric Services......................................         220,884
                                                         ---------------
    Grand Totals........................................       3,043,866
------------------------------------------------------------------------


[[Page 26927]]

    Table 9 depicts the current and proposed USCIS fees for immigration 
benefits and biometric services. For a more detailed description of the 
basis for the changes described in this table, see Appendix Table 4 in 
the FY 2016/2017 Fee Review Supporting Documentation accompanying this 
proposed rule.

                                  Table 9--Proposed Fees by Immigration Benefit
----------------------------------------------------------------------------------------------------------------
                                                    Current fee    Proposed fee
           Immigration benefit request                  ($)             ($)         Delta  ($)    Percent change
----------------------------------------------------------------------------------------------------------------
G-1041 Genealogy Index Search Request...........             $20             $65             $45             225
G-1041A Genealogy Records Request (Copy from                  20              65              45             225
 Microfilm).....................................
G-1041A Genealogy Records Request (Copy from                  35              65              30              86
 Textual Record)................................
I-90 Application to Replace Permanent Resident               365             455              90              25
 Card...........................................
I-102 Application for Replacement/Initial                    330             445             115              35
 Nonimmigrant Arrival-Departure Document........
I-129 Petition for a Nonimmigrant worker........             325             460             135              42
I-129F Petition for Alien Fianc[eacute](e)......             340             535             195              57
I-130 Petition for Alien Relative...............             420             535             115              27
I-131/I-131A Application for Travel Document....             360             575             215              60
I-140 Immigrant Petition for Alien Worker.......             580             700             120              21
I-290B Notice of Appeal or Motion...............             630             675              45               7
I-360 Petition for Amerasian Widow(er) or                    405             435              30               7
 Special Immigrant..............................
I-485 Application to Register Permanent                      985           1,140             155              16
 Residence or Adjust Status.....................
I-526 Immigrant Petition by Alien Entrepreneur..           1,500           3,675           2,175             145
I-539 Application to Extend/Change Nonimmigrant              290             370              80              28
 Status.........................................
I-600/600A/800/800A Orphan Petitions............             720             775              55               8
I-601A Application for Provisional Unlawful                  585             630              45               8
 Presence Waiver................................
I-687 Application for Status as a Temporary                1,130           1,130               0               0
 Resident under Section 245A of the Immigration
 and Nationality Act............................
I-690 Application for Waiver of Grounds of                   200             715             515             258
 Inadmissibility................................
I-694 Notice of Appeal of Decision..............             755             890             135              18
I-698 Application to Adjust Status From                    1,020           1,670             650              64
 Temporary to Permanent Resident (Under Section
 245A of the INA)...............................
I-751 Petition to Remove Conditions on Residence             505             595              90              18
I-765 Application for Employment Authorization..             380             410              30               8
I-800A Supp. 3 Request for Action on Approved                360             385              25               7
 Form I-800A....................................
I-817 Application for Family Unity Benefits.....             435             600             165              38
I-824 Application for Action on an Approved                  405             465              60              15
 Application or Petition........................
I-829 Petition by Entrepreneur to Remove                   3,750           3,750               0               0
 Conditions.....................................
I-910 Application for Civil Surgeon Designation.             615             785             170              28
I-924 Application for Regional Center                      6,230          17,795          11,565             186
 Designation Under the Immigrant Investor
 Program........................................
I-924A Annual Certification of Regional Center..               0           3,035           3,035             N/A
I-929 Petition for Qualifying Family Member of a             215             230              15               7
 U-1 Nonimmigrant...............................
N-300 Application to File Declaration of                     250             270              20               8
 Intention......................................
N-336 Request for Hearing on a Decision in                   650             700              50               8
 Naturalization Proceedings.....................
N-400 Application for Naturalization............             595             640              45               8
N-470 Application to Preserve Residence for                  330             355              25               8
 Naturalization Purposes........................
N-565 Application for Replacement Naturalization/            345             555             210              61
 Citizenship Document...........................
N-600/N-600K Application for Certificate of                  600           1,170             570              95
 Citizenship....................................
I-191, I-192, I-193, I-212, I-601, I-602, I-612              585             930             345              59
 Waiver Forms...................................
USCIS Immigrant Fee.............................             165             220              55              33
Biometric Services..............................              85              85               0               0
----------------------------------------------------------------------------------------------------------------

X. Statutory and Regulatory Reviews

A. Regulatory Flexibility Act

    In accordance with the RFA, 5 U.S.C. 601(6), USCIS examined the 
impact of this rule on small entities. A small entity may be a small 
business (defined as any independently owned and operated business not 
dominant in its field that qualifies as a small business per the Small 
Business Act, 15 U.S.C. 632), a small not-for-profit organization, or a 
small governmental jurisdiction (locality with fewer than 50,000 
people). Below is a summary of the small entity analysis. A more 
detailed analysis is available in the rulemaking docket at http://www.regulations.gov.
    Individuals rather than entities submit the majority of immigration 
and naturalization benefit applications and petitions. Entities that 
would be affected by this rule are those that file and pay the fees for 
certain immigration benefit applications and petitions. There are four 
categories of USCIS benefits that are subject to a RFA analysis for 
this rule: Petition for a Nonimmigrant Worker, Form I-129; Immigrant 
Petition for an Alien Worker, Form I-140; Application for Civil Surgeon 
Designation, Form I-910; and the Application for Regional Center 
Designation Under the Immigrant Investor Program, Form I-924.\77\
---------------------------------------------------------------------------

    \77\ Also captured in the dataset for Form I-924 is the 
Supplement Form I-924A, which regional centers must file annually to 
certify their continued eligibility for regional center designation.
---------------------------------------------------------------------------

    DHS does not believe that the increase in fees proposed in this 
rule will have a significant economic impact on a substantial number of 
small entities that are filing Form I-129, Form I-140, or Form I-910. 
However, DHS does not have sufficient data on the revenue collected 
through administrative fees by regional centers to definitively 
determine the economic impact on small entities that may file Form I-
924.

[[Page 26928]]

DHS requests any data that would help to further assess the impact on 
small entities in the regional centers. DHS is publishing the initial 
regulatory flexibility analysis to aid the public in commenting on the 
small entity impact of its proposed adjustment to the USCIS Fee 
Schedule.
1. A Description of the Reasons Why the Action by the Agency Is Being 
Considered
    DHS proposes to adjust certain immigration and naturalization 
benefit request fees charged by USCIS. USCIS has determined that 
current fees do not recover the full costs of services provided. As 
USCIS is nearly fully funded by fees, adjustment to the fee schedule is 
necessary to recover costs and maintain adequate service.
2. A Succinct Statement of the Objectives of, and Legal Basis for, the 
Proposed Rule
    DHS's objectives and legal authority for this proposed rule are 
discussed in Section III of this preamble.
3. A Description and, Where Feasible, an Estimate of the Number of 
Small Entities to Which the Proposed Rule Will Apply
    Entities affected by this rule are those that file and pay fees for 
certain immigration benefit applications and petitions on behalf of a 
foreign national. These applications include Petition for Nonimmigrant 
Worker, Form I-129; Immigrant Petition for Alien Worker, Form I-140; 
Civil Surgeon Designation, Form I-910; and Application for Regional 
Center Designation Under the Immigrant Investor Program, Form I-924. 
Annual numeric estimates of small entities affected by this fee 
increase total (in parentheses): Form I-129 (70,211), Form I-140 
(17,812), Form I-910 (589), and Form I-924 (412).
    This rule applies to small entities including businesses, non-
profit organizations, and governmental jurisdictions filing for the 
above benefits. Form I-129 and Form I-140 will see a number of industry 
clusters affected by this rule (see Appendix A of the Small Entity 
Analysis for a list of industry codes). The fee for civil surgeon 
designation will apply to physicians requesting such designation. 
Finally, the Form I-924 will apply to any entity requesting approval 
and designation as a regional center under the Immigrant Investor 
Program or filing an amendment to an approved regional center 
application. Also captured in the dataset for Form I-924 is the 
Supplement Form I-924A, which regional centers must file annually to 
certify their continued eligibility for regional center designation.
a. Petition for a Nonimmigrant Worker, Form I-129
    USCIS proposes to increase the fee for the Petition for a 
Nonimmigrant Worker, Form I-129, from $325 to $460, a $135 (42 percent) 
increase. Using a 12-month period of data on filings of Form I-129 from 
September 1, 2014 to August 31, 2015, USCIS collected internal data for 
each filing organization including the name, Employer Identification 
Number, city, state, ZIP code, and number/type of filings. Each entity 
may make multiple filings; for instance, there were 482,190 Form I-129 
petitions, but only 84,490 unique entities that filed those petitions. 
Since the filing statistics do not contain information such as the 
revenue of the business, USCIS looked for this information by 
researching databases from third-party sources. USCIS used the 
subscription-based online database from Hoover's, as well as three 
open-access databases from Manta, Cortera, and Guidestar, to help 
determine an organization's small entity status and apply Small 
Business Administration size standards.
    USCIS devised a methodology to conduct the small entity analysis 
based on a representative sample of the affected population for each 
form. To achieve a 95 percent confidence level and a 5 percent 
confidence interval on a population of 84,490 unique entities for Form 
I-129, USCIS used the standard statistical formula to determine a 
minimum sample size of 382 entities was necessary. Based on past 
experience, USCIS expected to find about 40 to 50 percent of the filing 
organizations in the online subscription and public databases. 
Accordingly, USCIS selected a sample size approximately 40 percent 
larger than the minimum necessary in order to allow for non-matches 
(filing organizations that could not be found in any of the four 
databases). Therefore, USCIS conducted searches on 534 randomly 
selected entities from the population of 84,490 unique entities for 
Form I-129.
    The 534 searches for Form I-129 resulted in 404 instances where the 
name of the filing organization was successfully matched in the 
databases and 130 instances where the name of the filing organization 
was not found in the databases. Based on previous experience conducting 
regulatory flexibility analyses, USCIS assumes filing organizations not 
found in the online database are likely to be small entities. Thus, in 
order not to underestimate the number of small entities affected by 
this rule, USCIS makes the conservative assumption to consider all of 
the non-matched entities as small entities for the purpose of this 
analysis. Among the 404 matches for Form I-129, 287 were determined to 
be small entities based on their reported revenue or employee count and 
their North American Industry Classification System (NAICS) code. 
Combining non-matches (130), matches missing data (27), and small 
entity matches (287), enables us to classify 444 of the 534 entities as 
small for Form I-129.
    With an aggregated total of 444 out of a sample size of 534, DHS 
inferred that a majority, or 83.1 percent, of the entities filing Form 
I-129 petitions during the period were small entities. Furthermore, 284 
of the 534 searched were small entities with the sales revenue data 
needed to estimate the economic impact of the proposed rule. Because 
these 284 small entities were a subset of the random sample of 534 
searches, they were statistically significant in the context of this 
research. In order to calculate the economic impact of this rule, USCIS 
estimated the total costs associated with the proposed fee increase for 
each entity, divided by the sales revenue of that entity.\78\ Based on 
the proposed fee increase of $135 for Form I-129, this would amount to 
an average impact of 0.08 percent on all 284 small entities with 
reported revenue data.
---------------------------------------------------------------------------

    \78\ Total Cost to Entity = (Number of Petitions x $135)/Entity 
Sales Revenue.
---------------------------------------------------------------------------

    In terms of range, among the 284 small entities with reported 
revenue data, all experienced an economic impact of considerably less 
than 1.0 percent in the analysis, with the exception of one entity. 
Using the above methodology, the greatest economic impact imposed by 
this fee change totaled 2.55 percent on that one entity and the 
smallest totaled 0.0001 percent.
    The evidence suggests that the additional fee imposed by this rule 
does not represent a significant economic impact on these entities.
b. Immigrant Petition for an Alien Worker, Form I-140
    USCIS proposes to increase the fee for the Immigrant Petition for 
an Alien Worker, Form I-140, from $580 to $700, a $120 (21 percent) 
increase. Using a 12-month period of data on filings of Form I-140 
petitions from September 1, 2014 to August 31, 2015, USCIS collected 
internal data similar to that of Form I-129. There were 101,245 Form I-
140 petitions, but only 23,284 unique entities that filed those 
petitions. Again, USCIS used the third party sources of

[[Page 26929]]

data mentioned previously to search for revenue and employee count 
information.
    USCIS used the same methodology as with Form I-129 to conduct the 
small entity analysis based on a representative sample of the affected 
population. To achieve a 95 percent confidence level and a 5 percent 
confidence interval on a population of 23,284 unique entities for Form 
I-140, USCIS used the standard statistical formula to determine that a 
minimum sample size of 378 entities was necessary. Again, based on past 
experience, USCIS expected to find about 40 to 50 percent of the filing 
organizations in the online subscription and public databases. 
Accordingly, USCIS oversampled in order to allow for non-matches 
(filing organizations that could not be found in any of the four 
databases).
    USCIS conducted searches on 514 randomly selected entities from the 
population of 23,284 unique entities for Form I-140. The 514 searches 
resulted in 430 instances where the name of the filing organization was 
successfully matched in the databases and 84 instances where the name 
of the filing organization was not found in the databases. Based on 
previous experience conducting regulatory flexibility analyses, USCIS 
assumes filing organizations not found in the online databases are 
likely to be small entities. In order not to underestimate the number 
of small entities affected by this rule, USCIS makes the conservative 
assumption to consider all of the non-matched entities as small 
entities for the purpose of this analysis. Among the 430 matches for 
Form I-140, 290 were determined to be small entities based on their 
reported revenue or employee count and their NAICS code. Combining non-
matches (84), matches missing data (19), and small entity matches 
(290), enables us to classify 393 of 514 entities as small for Form I-
140.
    With an aggregated total of 393 out of a sample size of 514, USCIS 
inferred that a majority, or 76.5 percent, of the entities filing Form 
I-140 petitions during the period were small entities. Furthermore, 287 
of the 514 searched were small entities with the sales revenue data 
needed in order to estimate the economic impact of the proposed rule. 
Because these 287 small entities were a subset of the random sample of 
514 searches, they were statistically significant in the context of 
this research. Similar to Form I-129, DHS estimated the total costs 
associated with the proposed fee increase for each entity, divided by 
the sales revenue of that entity in order to calculate the economic 
impact of this rule.
    Among the 287 small entities with reported revenue data, all 
experienced an economic impact considerably less than 1.0 percent in 
the analysis. Using the above methodology, the greatest economic impact 
imposed by this fee change totaled 0.68 percent and the smallest 
totaled 0.000002 percent. The average impact on all 287 small entities 
with revenue data was 0.04 percent.
    The evidence suggests that the additional fee imposed by this rule 
does not represent a significant economic impact on these entities.
    Additionally, USCIS analyzed any cumulative impacts to Form I-129 
and Form I-140, as well the individual analyses. USCIS wanted to 
determine if there were cumulative impacts when the forms were analyzed 
together. USCIS isolated those entities that overlapped in both samples 
of Forms I-129 and I-140 by EIN. Only 3 entities had EINs that 
overlapped in both samples. Of these 3 entities, 2 of them were small 
entities and 1 was not a small entity. Only 1 entity submitted multiple 
Form I-129 petitions, while all 3 entities submitted multiple Form I-
140 petitions. Due to little overlap in entities in the samples and the 
relatively minor impacts on revenue of fee increases of Forms I-129 and 
I-140, USCIS does not expect the combined impact of these two forms to 
be an economically significant burden on a substantial number of small 
entities.
c. Application for Civil Surgeon Designation, Form I-910
    USCIS proposes to increase the fee for the Application for Civil 
Surgeon Designations, Form I-910, from $615 to $785, a $170 (28 
percent) increase. Using a 12-month period of August 1, 2014 to July 
31, 2015, USCIS collected internal data on the applicants. There were 
719 Form I-910 applications, but only 602 unique entities that filed 
such applications. Again, USCIS used third party sources of data 
mentioned previously to search for revenue and employee count 
information.
    Using the same methodology as with Form I-129 and Form I-140, USCIS 
conducted the small entity analysis based on a representative sample, 
with a 95 percent confidence level and a 5 percent confidence interval, 
of the population of 602 unique entities for Form I-910. USCIS 
determined that a minimum sample size of 235 entities was necessary. 
USCIS oversampled and conducted searches on 329 randomly selected 
entities for Form I-910.
    The 329 searches for Form I-910 resulted in 252 instances where the 
name of the filing organization was successfully matched in the 
databases and 77 instances where the name of the filing organization 
was not found in the databases. USCIS assumed again that filing 
organizations not found in the online databases are likely to be small 
entities, so USCIS considered all of the non-matched entities as small 
entities for the purpose of this analysis. Among the 252 matches for 
Form I-910, 240 were determined to be small entities based on their 
reported revenue or employee count and their NAICS code. Combining non-
matches (77), matches missing data (5), and small entity matches (240), 
USCIS classified 322 of 329 entities as small for Form I-910.
    With an aggregated total of 322 out of a sample size of 329, USCIS 
inferred that a majority, or 97.9 percent, of the entities filing Form 
I-910 applications were small entities. Furthermore, 238 of the 329 
entities searched were small entities with the sales revenue data 
needed in order to estimate the economic impact of the proposed rule. 
Because these 238 small entities were a subset of the random sample of 
329 searches, they were statistically significant in the context of 
this research.
    Similar to Form I-129 and Form I-140, USCIS estimated the total 
costs associated with the proposed fee increase for each entity. Among 
the 238 small entities with reported revenue data, all experienced an 
economic impact considerably less than 1.0 percent in the analysis. The 
greatest economic impact imposed by this fee change totaled 0.61 
percent and the smallest totaled 0.00002 percent. The average impact on 
all 238 small entities with revenue data was 0.09 percent.
    The evidence suggests that the additional fee imposed by this rule 
does not represent a significant economic impact on these entities.
d. Regional Center Designation Under the Immigrant Investor Program, 
Form I-924 and I-924A
    Congress created the EB-5 Program in 1990 under section 203(b)(5) 
of the INA to stimulate the U.S. economy through job creation and 
capital investment by foreign investors. Foreign investors have the 
opportunity to obtain lawful permanent residence in the United States 
for themselves, their spouses, and their minor unmarried children 
through a certain level of capital investment and associated job 
creation or preservation. There are two distinct EB-5 pathways for a 
foreign investor to gain lawful permanent residence: the Basic Program 
and the Regional Center Program. Both options require a capital 
investment from the foreign investor in a new commercial enterprise 
located within

[[Page 26930]]

the United States. The capital investment amount is generally set at 
$1,000,000, but may be reduced to $500,000 if the investment is made in 
a ``Targeted Employment Area.''
    A regional center is an economic entity, public or private, that 
promotes economic growth, regional productivity, job creation, and 
increased domestic capital investment. Regional centers pool funds into 
development loans or equity for commercial space and real estate 
development projects. As of January 4, 2016, there were 790 USCIS-
approved regional centers.\79\ Entities seeking designation as regional 
centers file Form I-924 along with supporting materials. Approved 
regional centers are currently required to file the Supplement to Form 
I-924, Form I-924A, annually to demonstrate continued eligibility for 
regional center designation. DHS is proposing to change the name of the 
Form I-924A annual filing to ``Annual Certification of Regional 
Center''.
---------------------------------------------------------------------------

    \79\ USCIS Immigrant Investor Regional Centers: http://www.uscis.gov/working-united-states/permanent-workers/employment-based-immigration-fifth-preference-eb-5/immigrant-investor-regional-centers#table.
---------------------------------------------------------------------------

    DHS proposes to increase the fee for the Application for Regional 
Center Designation Under the Immigrant Investor Program, Form I-924, 
from $6,230 to $17,795, an $11,565 (186 percent) increase. 
Additionally, DHS proposes to introduce a filing fee of $3,035 for Form 
I-924A. In proposing to establish this fee, DHS would also clarify the 
related regulations that provide for the annual regional center review 
related to Form I-924A. Currently, there is no procedure for regional 
centers seeking to withdraw their designation and discontinue their 
participation in the program. Formal termination is currently processed 
by USCIS issuing a Notice of Intent to Terminate and a subsequent 
termination notice. The proposed withdrawal procedure would allow a 
regional center to proactively request withdrawal without the need for 
the more formal notices sent out by USCIS. This proposed procedure 
would reduce administrative costs and time for the Department, while 
timely clarifying status to the requesting regional center. Over a 13-
month period of August 1, 2014 through August 31, 2015, USCIS received 
a total of 412 Form I-924 applications.\80\ These applications include 
the request for newly designated regional centers, as well as requests 
for continued designation for existing regional centers.
---------------------------------------------------------------------------

    \80\ Supplemental Form I-924A (Supplement to Form I-924) is 
captured in this dataset.
---------------------------------------------------------------------------

    DHS was not able to determine the numbers of regional centers that 
would be considered small entities. Regional centers are difficult to 
assess because there is a lack of official data on employment, income, 
and industry classification for these entities. Regional centers also 
pose a challenge for analysis as their structure is often complex and 
can involve many related business and financial activities not directly 
involved with EB-5 activities. Regional centers can be made up of 
several layers of business and financial activities that focus on 
matching foreign investor funds to development projects to capture 
above market return differentials. While USCIS attempted to treat the 
regional centers similar to the other entities in this analysis, we 
were not able to identify most of the entities in any of the online 
databases. Furthermore, while regional centers are an integral 
component of the EB-5 program, DHS does not collect data on the 
administrative fees the regional centers charge to the foreign 
investors who are investing in one of their projects. DHS did not focus 
on the bundled capital investment amounts (either $1 million or 
$500,000 per investor) that the regional center invests into a new 
commercial enterprise. Such investment amounts are not necessarily 
indicative of whether the regional center is appropriately 
characterized as a small entity for purposes of the RFA.
    Due to the lack of regional center revenue data, DHS assumes 
regional centers collect revenue through the administrative fees 
charged to investors. Searching through several public Web sites, DHS 
gathers that administrative fees charged to investors could range 
between $30,000 and $100,000 per investor.\81\ DHS does not know the 
extent to which these regional centers can pass along the fee increases 
to the individual investors. Passing along the costs from this rule 
could reduce or eliminate the economic impacts to the regional centers. 
While DHS cannot definitively claim there is no significant economic 
impact to these small entities based on existing information, DHS would 
assume existing regional centers that have revenues equal to or less 
than $303,500 per year \82\ (some of which we assume would be derived 
from administrative fees charged to individual investors) could 
experience a significant economic impact if we assume a fee increase 
that represents 1% of annual revenue is a ``significant'' economic 
burden under the RFA. DHS also assumes newly designated regional 
centers that have revenues equal to or less than $1,779,500 per year 
\83\ could also experience a significant impact. DHS was able to obtain 
some sample data on 440 regional centers operating 5,886 projects. 
These 5,886 projects had a total of 54,506 investors, averaging 124 
investors per regional center.\84\ Assuming an average of 124 investors 
is a representative proxy of the regional centers, and that $30,000 is 
the minimum administrative fee charged by regional centers, then such 
fees would represent approximately $3,720,000 in revenue. In that case, 
the proposed filing fee increase for Form I-924 and the creation of a 
new fee for Form I-924A would not cause a significant economic impact 
to these entities. DHS requests information from the public on data 
sources on the average revenues collected by regional centers in the 
form of administrative fees and the extent to which regional centers 
may pass along the fee increases to the individual investors.
---------------------------------------------------------------------------

    \81\ Yen, Christine et al., ``A Report on Source of Funds: 
Perils of the Administrative Fee.'' EB5 Investors Magazine (Aug. 20, 
2015), available at: http://www.eb5investors.com/magazine/article/A-Report-on-Source-of-Funds. See also Green, Merritt. ``The Costs of 
an EB-5 Regional Center Project Investment.'' (June 27, 2014), 
available at: http://www.generalcounsellaw.com/the-cost-of-an-eb-5-regional-center-project-investment/.
    \82\ Calculation: 1 percent of $303,500 = $3,035 (the new 
proposed fee for Form I-924A).
    \83\ Calculation: 1 percent of $1,779,500 = $17,995 (the new 
proposed fee for Form I-924).
    \84\ Department of Homeland Security, USCIS, Immigrant Investor 
Program Office.
---------------------------------------------------------------------------

4. A Description of the Projected Reporting, Recordkeeping, and Other 
Compliance Requirements of the Proposed Rule, Including an Estimate of 
the Classes of Small Entities That Will Be Subject to the Requirement 
and the Types of Professional Skills Necessary for Preparation of the 
Report or Record
    The proposed rule does not directly impose any new or additional 
``reporting'' or ``recordkeeping'' requirements on filers of Forms I-
129, I-140, I-910, or I-924 other than the fee adjustments. The 
proposed rule does not require any new professional skills for 
reporting.
5. An Identification, to the Extent Practicable, of All Relevant 
Federal Rules That May Duplicate, Overlap, or Conflict With the 
Proposed Rule
    DHS is unaware of any duplicative, overlapping, or conflicting 
federal rules, but invites any comment and information regarding any 
such rules.

[[Page 26931]]

6. Description of Any Significant Alternatives to the Proposed Rule 
That Accomplish the Stated Objectives of Applicable Statutes and That 
Minimize Any Significant Economic Impact of the Proposed Rule on Small 
Entities Including Alternatives Considered Such as:
    (1) Establishment of differing compliance or reporting requirements 
or timetables that take into account the resources available to small 
entities;
    (2) Clarification, consolidation, or simplification of compliance 
and reporting requirements under the rule for such small entities;
    (3) Use of performance rather than design standards; and
    (4) Any exemption from coverage of the rule, or any part thereof, 
for such small entities.
    The INA provides for the collection of fees at a level that will 
ensure recovery of the full costs of providing adjudication and 
naturalization services, including services provided without charge to 
those eligible for fee waivers and exemptions. DHS funds the costs of 
providing services without charge by using a portion of the filing fees 
that are collected for other immigration benefits. Without an increase 
in fees, USCIS will be unable to maintain the level of service for 
immigration and naturalization benefits as it now provides. DHS 
considered the alternative of maintaining fees at the current level but 
with reduced services and increased processing times, but has decided 
that this would not be in the interest of applicants and petitioners. 
While most immigration benefit fees are paid by individuals, as 
described above, some also apply to small entities. USCIS seeks to 
minimize the impact on all parties, but in particular small entities. 
Another alternative would be to maintain fees at their current level 
for small entities. This alternative would avoid additional fee-burdens 
on small entities; however, small entities would experience negative 
effects due to the service reductions that would result in the absence 
of the fee adjustments proposed in this rule.
    Without the fee adjustments proposed in this rule, significant 
operational changes would be necessary. Given current filing volume and 
other economic considerations, USCIS requires additional revenue to 
prevent immediate and significant cuts in planned spending. These 
spending cuts would include reductions in areas such as federal and 
contract staff, infrastructure spending on information technology and 
facilities, and training. Depending on the actual level of workload 
received, these operational changes would result in longer processing 
times, a degradation in customer service, and reduced efficiency over 
time. These cuts would ultimately represent an increased cost to small 
entities by causing delays in benefit processing and reductions in 
customer service.
7. DHS Seeks Public Comment on the Following Questions
     Please provide comment on the numbers of small entities 
that may be affected by this rulemaking.
     Please provide comment on any or all of the provisions in 
the proposed rule with regard to the economic impact of this rule, 
paying specific attention to the effect of the rule on small entities 
in light of the above analysis, as well as the full analysis on 
regulations.gov.
     Please provide comment on any significant alternatives DHS 
should consider instead of the changes proposed by this rule.
     Please describe ways in which the rule could be modified 
to reduce burdens for small entities consistent with the INA and the 
CFO Act of 1990 requirements.
     Please identify all relevant federal, state or local rules 
that may duplicate, overlap or conflict with the proposed rule.

B. Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (UMRA) requires certain 
actions to be taken before an agency promulgates any proposed or final 
rule ``that is likely to result in promulgation of any rule that 
includes any Federal mandate that may result in the expenditure by 
State, local, and Tribal governments, in the aggregate, or by the 
private sector, of $100 million or more (adjusted annually for 
inflation) in any one year.\85\ While this rule may result in the 
expenditure of more than $100 million by the private sector annually, 
the rulemaking is not a ``Federal mandate'' as defined for UMRA 
purposes,\86\ as the payment of immigration benefit fees by individuals 
or other private sector entities is, to the extent it could be termed 
an enforceable duty, one that arises from participation in a voluntary 
Federal program, applying for immigration status in the United 
States.\87\ Therefore, no actions were deemed necessary under the 
provisions of the UMRA.
---------------------------------------------------------------------------

    \85\ See 2 U.S.C. 1532(a).
    \86\ See 2 U.S.C. 658(6).
    \87\ See 2 U.S.C. 658(7)(A)(ii).
---------------------------------------------------------------------------

C. Small Business Regulatory Enforcement Fairness Act

    This rulemaking is a major rule as defined by section 804 of the 
Small Business Regulatory Enforcement Act of 1996. This rulemaking will 
result in an annual effect on the economy of more than $100,000,000 in 
order to generate the revenue necessary to fully fund the increased 
cost associated with the processing of immigration benefit applications 
and petitions and associated support benefits; the full cost of 
providing similar benefits to asylum and refugee applicants at no 
charge; and the full cost of providing similar benefits to other 
immigrants, as specified in the proposed regulation, at no charge. The 
increased costs would be recovered through the fees charged for various 
immigration benefit requests.

D. Congressional Review Act

    The Congressional Review Act (5 U.S.C. 801 et seq.) requires rules 
to be submitted to Congress before taking effect. If implemented as 
proposed, we will submit to Congress and the Comptroller General of the 
United States a report regarding the issuance of the final rule prior 
to its effective date, as required by 5 U.S.C. 801.

E. Executive Orders 12866 and 13563 (Regulatory Planning and Review)

1. Background and Purpose of the Proposed Rule
    Executive Orders 12866 and 13563 direct agencies to assess the 
costs and benefits of available alternatives, and if regulation is 
necessary, to select regulatory approaches that maximize net benefits 
(including potential economic, environmental, public health and safety 
effects, distributive impacts, and equity). Executive Order 13563 
emphasizes the importance of quantifying both costs and benefits, of 
reducing costs, of harmonizing rules, and of promoting flexibility. 
This proposed rule has been designated an ``economically significant 
regulatory action'' under section 3(f)(1) of Executive Order 12866. 
Accordingly, OMB has reviewed the proposed rule.
    USCIS projects an annual budget of $3.038 billion in FY 2016/FY 
2017, a $767 million (34 percent) increase over the FY 2010/FY2011 Fee 
Review-adjusted annual budget of $2.271 billion. The implementation of 
this proposed rule would provide USCIS with an average of $546 million 
in FY 2016 and FY 2017 annual fee revenue above the FY 2010/FY 2011 
levels, based on a projected annual fee-paying volume of 4.9 million 
immigrant benefit requests and 2.6 million requests for

[[Page 26932]]

biometric services. USCIS would use this increase in revenue under 
subsections 286(m) and (n) of the INA, 8 U.S.C. 1356(m) and (n), to 
fund the full costs of processing immigration benefit requests and 
associated support benefits; the full cost of providing similar 
benefits to asylum and refugee applicants at no charge; and the full 
cost of providing similar benefits to others at no charge.
    If USCIS does not adjust the current fees to recover the full costs 
of processing immigration benefit requests, it would be forced to make 
reductions in services provided to applicants and petitioners. These 
would reverse the considerable progress USCIS has made over the last 
several years to reduce the backlogs of immigration benefit filings, to 
increase the integrity of the immigration benefit system, and to 
protect national security and public safety. The proposed revenue 
increase is based on USCIS costs and volume projections available at 
the time the rule was drafted. USCIS has placed in the rulemaking 
docket a detailed analysis that explains the basis for the annual fee 
increase. USCIS has included an accounting statement detailing the 
annualized costs of the proposed rule in Table 10 below.

                             Table 10--Accounting Statement, FY 2016 Through FY 2017
----------------------------------------------------------------------------------------------------------------
               Category                       Primary estimate                     Maximum estimate
----------------------------------------------------------------------------------------------------------------
Benefits:
                                      --------------------------------------------------------------------------
    Un-quantified Benefits...........     Maintain current level of service with respect to processing times,
                                                        customer service, and efficiency levels.
----------------------------------------------------------------------------------------------------------------
Transfers:
    Annualized Monetized Transfers at  $546,429,650                   $546,429,650.
     3%.
    Annualized Monetized Transfers at  $546,429,650                   $546,429,650.
     7%.
----------------------------------------------------------------------------------------------------------------
               Category                           Effects                               Source
----------------------------------------------------------------------------------------------------------------
Effects on State, local, and/or        For those state, local, and/   NPRM, EO 12866/13563 Analysis.
 tribal governments.                    or tribal governments that
                                        submit petitions for
                                        nonimmigrant and immigrant
                                        workers, they would face an
                                        increase in filing fees.
Effects on small businesses..........  For those small businesses     NPRM, EO 12866/13563 Analysis, Small
                                        that submit petitions for      Entity Analysis.
                                        nonimmigrant and immigrant
                                        workers, they would face an
                                        increase in filing fees.
----------------------------------------------------------------------------------------------------------------

2. Proposed Amendments and Impacts of Proposed Regulatory Change
    This proposed rule is intended to adjust current fees to ensure 
that USCIS is able to recover the full costs of the immigration 
services it provides and maintain adequate service. In addition to 
increasing fees, USCIS proposes the following amendments: provisions 
that USCIS will reject an immigration benefit request paid with a 
dishonored check; provisions that USCIS will reject an application that 
does not include the required biometric services fee; the institution 
of a reduced fee for the Application for Naturalization, Form N-400; 
and provisions that fee refunds will be provided at USCIS discretion.
a. Dishonored Payments
    Earlier in this preamble USCIS explains its proposal to change how 
it will treat a benefit request accompanied by fee payment (in the form 
of check or other financial instrument) that is subsequently returned 
as not payable.\88\ Current regulations provide that when a check or 
other financial instrument used to pay a filing fee is subsequently 
returned as not payable, the remitter will be notified and requested to 
pay the filing fee and associated service charge within 14 calendar 
days, without extension.\89\ If the benefit request is pending and 
these charges are not paid within 14 days, the benefit request will be 
rejected as improperly filed. In addition, a receipt issued by a DHS 
officer for any remittance will not be binding upon DHS if the 
remittance is found uncollectable, and legal and statutory deadlines 
will not be deemed to have been met if payment is not made within 10 
business days after notification by DHS of the dishonored check.\90\ In 
accordance with these provisions, when a payment is returned as not 
payable, USCIS places the immigration benefit request on hold, and 
suspends adjudication. If the check was dishonored or payment fails, 
USCIS assesses a $30 penalty and pursues the unpaid fee and penalty 
using administrative debt collection procedures.\91\ If payment is made 
within the allotted time, USCIS resumes processing the application or 
benefit request. If a payment is not corrected by the applicant, USCIS 
rejects the filing for nonpayment.\92\
---------------------------------------------------------------------------

    \88\ USCIS proposes to immediately reject and not accept for 
processing any applications and petitions submitted with invalid 
payments, e.g. an unsigned check or invalid bank account on an 
electronic payment. The subsequent identification as not payable 
would occur when an attempt is made to process the payment through a 
bank, but the bank does not honor the payment, e.g. returned for 
insufficient funds.
    \89\ See 8 CFR 103.2(a)(7)(ii).
    \90\ See 8 CFR 103.2(a)(7)(ii), 103.7(a)(2).
    \91\ See 8 CFR 103.7(a)(2).
    \92\ See 8 CFR 103.2(a)(7)(ii).
---------------------------------------------------------------------------

    DHS proposes to eliminate provisions requiring that applications or 
petitions be held while deficient payments are corrected. Under the 
proposed amendment, if a check or other financial instrument used to 
pay a filing fee is subsequently returned as not payable, the benefit 
request will be rejected as improperly filed.\93\ If the benefit 
request was approved and finds payment to be deficient at a later time, 
the remitter will be requested to pay the filing fee plus the 
previously established $30 service charge within 14 calendar days, 
without extension.\94\ If these charges are not paid, the approval will 
be automatically rejected for nonpayment.\95\
---------------------------------------------------------------------------

    \93\ See proposed 8 CFR 103.2(a)(7)(ii).
    \94\ See proposed 8 CFR 103.7(a)(2).
    \95\ Id.
---------------------------------------------------------------------------

    In order to get an estimate of the numbers of applicants who make a 
payment with a dishonored check or failed payment, USCIS analyzed the 
count of all returned and subsequently corrected payments of a credit 
card or check from fiscal years 2012 to 2015.\96\ In FY 2015, 10,818 
payments were returned (Table 11). Of those 10,818

[[Page 26933]]

returned payments, 6,399 (59.2 percent) were later corrected. The 
average annual number of returned payments from FY 2012 to FY 2015 was 
9,781 with an annual average of 6,478 payments (66.2 percent) later 
corrected. Assuming all included a current service fee of $30, the 
resulting total annual cost to applicants for returned payments is 
$293,430.\97\
---------------------------------------------------------------------------

    \96\ Corrected payments include any payment collected by USCIS 
after the return of an initial payment.
    \97\ Calculation: 9,781 (average number of returned payments) * 
$30 (current service fee charge) = $293,430 (total cost for returned 
payments).

               Table 11--Count of Returned and Corrected Credit Card/Check Payments, FY 2012-2015
----------------------------------------------------------------------------------------------------------------
                                                                                       Total       Percentage of
                              Year                                Total returned     corrected       corrected
                                                                     payments        payments        payments
----------------------------------------------------------------------------------------------------------------
2015............................................................          10,818           6,399            59.2
2014............................................................           9,200           6,467            70.3
2013............................................................           9,785           6,496            66.4
2012............................................................           9,322           6,550            70.3
    Average.....................................................           9,781           6,478            66.2
----------------------------------------------------------------------------------------------------------------
Source: Department of Homeland Security, Immigration and Customs Enforcement, Burlington Finance Center.

    The proposed provisions would require USCIS to reject these 
returned payments and associated benefit requests for nonpayment. The 
existing $30 service charge would continue to be imposed for benefit 
requests rejected when a financial institution does not honor a 
payment. USCIS anticipates that the prospect of rejection would 
encourage applicants to provide the correct filing fees at the time 
they submit an application or petition. However, USCIS recognizes that 
there would continue to be applicants who file an application with an 
incorrect fee and would be required to pay the $30 service fee. While 
USCIS knows currently this additional service fee averages to $293,430 
for all applicants and anticipates it would be lower in the future, we 
do not have enough information at this time to estimate the degree of 
this decrease.
    For applicants, filing fees are a required and fundamental aspect 
of the benefit being requested. By providing a 14-day window to correct 
for dishonored checks, the regulation currently permits a benefit 
request paid with a dishonored payment instrument to secure a place in 
line ahead of a benefit request that was accompanied by a proper 
payment, for what may be a time sensitive or numerically limited 
program. In all cases, rejected filings may be refiled immediately with 
the proper payment but there are some slight differences depending upon 
if the submission is paper-based or electronically filed. The USCIS 
online filing system will permit the rejected applications to remain 
accessible for the applicant to print and view. The original rejected 
electronic submission would not be available for resubmission with a 
new payment; however, the rejected submission may be used as a 
reference when a new application is being completed. In cases where the 
rejected submission is paper-based, the entire application/petition/
request and supporting documentation are returned and can generally be 
refiled with the proper payment instrument.
    The proposed amendments will provide several benefits to USCIS. 
First, USCIS currently clears payment checks via the ACH by converting 
checks to electronic payments. Because USCIS converts checks into ACH 
payments, there is currently little or no delay before USCIS knows 
whether the check is valueless. Thus, unlike in the past, USCIS would 
not begin adjudication until the check has cleared. USCIS benefits by 
streamlining the process for adjudicators to only begin work on those 
applications with properly filed fees, eliminating the need to hold 
applications. USCIS anticipates this streamlined process would help 
adjudicators to more efficiently process cases without the need to wait 
on payments. This change in process also provides parity to those 
applicants who file an application with the correct fees. In addition, 
the proposed amendments would lower USCIS administrative costs for 
holding and tracking applications and payments. The holding and 
tracking of applications requires physical storage space that would no 
longer be required with the proposed revisions. USCIS currently incurs 
administrative costs through tracking payments in postage costs and 
adjudicator time among other costs. USCIS recognizes the unique 
situation that these proposed changes may have on H-1B lottery 
regulations, which allow numbers available to petitions in the order in 
which the petitions are filed.\98\ The H-1B lottery regulations allow 
the final receipt date to be any of the first 5 business days on which 
petitions subject to the applicable numerical limit may be received. 
USCIS then will randomly apply all of the numbers among the petitions 
received on any of those 5 business days and conduct a random selection 
among the petitions subject to the exemption under section 214(g)(5)(C) 
of the Act first. Currently, petitions are still eligible for the H-1B 
lottery, despite having dishonored checks or failed payments as long as 
the payments are corrected within the provided 14-day or 10-day 
timeframe.\99\ These proposed changes, however, would remove these 
petitions from the H-1B lottery as the dishonored checks or failed 
payments would result in a rejected petition as improperly filed. USCIS 
does not have data at this time to estimate the impact on how many 
petitions may be affected by these proposed changes. USCIS is also 
unable to monetize the cost to the applicant of having a petition 
removed from the lottery. DHS requests comments on this impact.
---------------------------------------------------------------------------

    \98\ See 8 CFR 214.2(h)(8)(ii)(B).
    \99\ See 8 CFR 103.2(a)(7)(ii).
---------------------------------------------------------------------------

b. Failure To Pay the Biometrics Services Fees
    DHS also proposes amendments to eliminate provisions governing non-
payment of the biometric service fee. Currently, if a benefit request 
is received by DHS without the correct biometric service fee, USCIS 
will notify the applicant of the deficiency and take no further action 
on the benefit request until payment is received.\100\ Failure to 
submit the correct biometric service fee within the time allotted in 
the notice will result in denial of the benefit request. To comply with 
these provisions, if the biometrics services fee was required and is 
missing, USCIS places an application or petition on hold, and suspends 
adjudication. If payment is made within the allotted

[[Page 26934]]

time, USCIS resumes processing the benefit request. If the biometric 
fee is not paid, the benefit request is denied as abandoned.
---------------------------------------------------------------------------

    \100\ See 8 CFR 103.17(b)(1).
---------------------------------------------------------------------------

    USCIS proposes to eliminate the provisions requiring that 
applications be held while deficient payments are corrected. USCIS is 
proposing that if a benefit request is received by USCIS without the 
correct biometric service fee, as specified in the form instructions, 
USCIS would reject the benefit request.
    In order to analyze the number of people who do not pay the 
biometric fee, USCIS gathered 6 months of data from USCIS lockbox 
facilities.\101\ The data covers from June 1, 2015 to November 30, 
2015. During this 6-month period, USCIS lockbox facilities accepted 
1,196,134 applications. Of these, 4,963 (.41 percent) of applicants 
were issued a notice alerting the applicant that their biometric fees 
were missing. Assuming this 6-month trend is typical of the number of 
deficient biometric fee notices, the proposed new provision will affect 
less than 1 percent of all applications received at the USCIS lockbox 
facilities. As previously mentioned, rejected filings may be refiled 
immediately. While applicants do not incur monetary costs associated 
with the rejection of an application, reapplying for benefits with the 
correct fees requires time. Again, USCIS anticipates this new provision 
would encourage applicants to file with the appropriate fees.
---------------------------------------------------------------------------

    \101\ While USCIS prefers to base assumptions on a longer time 
period (ideally 5 years), 6 months was the longest time period for 
which this data was available.
---------------------------------------------------------------------------

    This change would streamline USCIS' process for handling 
applications and petitions when biometrics fees are not submitted when 
required. USCIS costs are reduced by eliminating the administrative 
handling costs associated with holding cases while biometric fees are 
collected.
c. Reduced Fee for Application for Naturalization
    The current fee for the Application for Naturalization, Form N-400, 
is $595. In most cases, applicants must also pay an $85 biometrics fee, 
so the total cost for most applicants is $680. If an applicant cannot 
pay the fee, he or she can file a Request for Fee Waiver, Form I-912, 
along with their Form N-400. USCIS considers anyone with a household 
income below 150 percent of the Federal Poverty Guidelines to be 
eligible for a fee waiver. If USCIS approves an applicant's fee waiver, 
both the $595 Form N-400 fee and the $85 biometrics fee, where 
applicable, are waived.
    DHS proposes to increase the Form N-400 fee from $595 to $640, a 
$45 (8 percent) increase. The biometrics fee would remain unchanged at 
$85. Therefore, if the proposed fees are implemented, the new costs of 
Form N-400 plus the biometric fee would total $725. DHS also proposes 
an additional fee option for those non-military naturalization 
applicants with family incomes greater than 150 percent and not more 
than 200 percent of the Federal Poverty Guidelines. Specifically, DHS 
proposes that such applicants would receive a 50 percent discount and 
only be require to pay a filing fee of $320 for the N-400, plus an 
additional $85 for biometrics (for a total of $405). DHS proposes this 
reduced fee option to limit any potential economic disincentives that 
some eligible naturalization applicants may face when deciding whether 
or not to seek citizenship. The lower fee would help ensure that those 
who have worked hard to become eligible for naturalization are not 
limited by their economic means. In order to qualify for this fee, the 
eligible applicant will have to submit a newly proposed Request for 
Reduced Fee, Form I-942, along with their Form N-400. Form I-942 will 
require the names of everyone in the household and documentation of the 
household income to determine if the applicant's household income is 
greater than 150 and not more than 200 percent of the Federal Poverty 
Guidelines.
    As described earlier in the preamble, USCIS estimates that 
approximately 11 percent of all Form N-400 applicants, excluding 
military applicants, could qualify for the reduced fee. Given the non-
military Form N-400 volume projection estimate of 821,500 annually, 
over the biennial period, USCIS expects that 90,365 filers would be 
included in the population eligible for the fee reduction.\102\ While 
these 90,365 filers represent only the current number of applicants who 
would be eligible for the fee reduction, USCIS anticipates an increase 
in Form N-400 filings as a result of these proposed changes. USCIS 
anticipates that the reduced fee for applicants with qualifying incomes 
would remove economic barriers associated with the costs of associated 
fees and thus encourage more eligible applicants to file their Form N-
400 applications. While USCIS anticipates an increase in Form N-400 
filings due to this proposed fee reduction, we cannot predict how many 
more eligible applicants would file their N-400 applications as a 
result at this time.
---------------------------------------------------------------------------

    \102\ Calculation: 821,500 * 11 percent.
---------------------------------------------------------------------------

    USCIS has factored the estimated revenue loss from this product 
line into its fee model, so those costs are reallocated over other fee 
paying benefit requests. While the costs of the reduced fee are being 
reallocated to other fee-paying customers, DHS believes the benefits of 
providing a means to promote citizenship among those with limited 
economic means outweighs the cost reallocation impacts.
    As previously mentioned, an eligible applicant would have to submit 
a Form I-942 along with their N-400 application to qualify for this 
reduced fee. While USCIS is not imposing an additional fee for Form I-
942, we have estimated the opportunity cost of time to applicants to 
complete the form. The total opportunity cost of time for applicants 
would be $717,724, if all 90,365 eligible applicants apply for the 
reduced fee.\103\ The federal minimum wage rate\104\ of $7.25 was used 
as the hourly wage rate as the anticipated applicants are asserting 
they cannot afford to pay the full USCIS fee. The anticipated 
applicants are assumed to be from occupations having a less than 
average income. The Bureau of Labor Statistics (BLS) reports the 
average employer costs for employee compensation for all civilian 
workers in major occupational groups and industries. Using the most 
recent BLS report, DHS calculated a benefits-to-wage multiplier of 1.46 
to estimate the full opportunity costs to applicants, including 
employee wages and salaries and the full costs of benefits such as paid 
leave, insurance, and retirement.\105\ In order to anticipate the full 
opportunity cost of time to applicants, we multiplied the federal 
minimum wage rate by 1.46 to account for the full cost of employee 
benefits for a total of $10.59. The time burden estimate was developed 
by USCIS with an average of 45 minutes (or .75 of an hour) to complete 
Form I-942. Therefore, the opportunity cost of time per petition is

[[Page 26935]]

$7.94.\106\ This additional burden is offset by the benefits received 
through a reduced fee.
---------------------------------------------------------------------------

    \103\ Total Opportunity Costs of Time to Applicants = Expected 
Filers (90,365) * (Full Cost of Employee Benefits ($10.59) * Time 
Burden (.75 hr.)).
    \104\ U.S. Department of Labor, Wage and Hour Division. The 
minimum wage in effect as of January 20, 2016. Available at http://www.dol.gov/general/topic/wages/minimumwage.
    \105\ The benefits-to-wage multiplier is calculated as follows: 
(All Workers Total Employee Compensation per hour)/(Wages and 
Salaries per hour). See Economic News Release, U.S. Department of 
Labor, Bureau of Labor Statistics, Table 1. Employer Costs per hour 
worked for employee compensation and costs as a percent of total 
compensation: Civilian workers, by major occupational and industry 
group (Sept. 2015), available at http://www.bls.gov/news.release/pdf/ecec.pdf.
    \106\ Calculation: $10.59 hourly wage rate * .75 hour.
---------------------------------------------------------------------------

d. Refunds
    DHS is also proposing to amend regulations for fee refunds. In 
general, and except for a premium processing fee under 8 CFR 
103.7(e)(2)(i), USCIS does not refund a fee regardless of the decision 
on the immigration benefit request. USCIS makes very rare exceptions 
when USCIS determines that an administrative error occurred resulting 
in the inadvertent collection of a fee. USCIS errors may include:
     Unnecessary filings. Cases in which USCIS (or DOS in the 
case of an immigration benefit request filed overseas) erroneously 
requests that an individual file an unnecessary form along with the 
associated fee; and
     Accidental Payments. Cases in which an individual pays a 
required fee more than once or otherwise pays a fee in excess of the 
amount due and USCIS (or the DOS in the case of an immigration benefit 
request filed overseas) erroneously accepts the erroneous fee.
    DHS is proposing to codify into regulation the continuance of 
providing these refunds under circumstances where refunds are necessary 
due to obvious USCIS error. Under this proposal, individuals would 
continue to request a refund by the current process. The current 
process requires that an individual call the customer service line or 
submit a written request for a refund to the office having jurisdiction 
over the relevant immigration benefit request.
    Any USCIS refunds provided are generally due to obvious USCIS 
errors resulting from system behavior issues or human error. The 
anticipation of future electronic filings also spurs the need for this 
provision. Currently, DHS provides fee refunds and amounts to 
applicants as shown in Table 12. Over the past 3 fiscal years, an 
annual average of 5,363 refunds were provided by USCIS, resulting in an 
average of $2.1 million refunded. This is approximately $396 per 
refund. These numbers and amounts of refunds do not include premium 
processing refunds regulated under 8 CFR 103.7(e)(2)(i). In the context 
of the number of fees collected by USCIS, this average amount of 
refunds is still less than 1 percent of the total fees collected.

      Table 12--Amount and Number of Fee Refunds Provided by USCIS
------------------------------------------------------------------------
                                                   Amount     Number of
                  Fiscal year                     refunded     refunds
------------------------------------------------------------------------
2013..........................................   $2,674,290        7,405
2014..........................................    1,805,006        4,198
2015..........................................    1,890,638        4,485
Average.......................................    2,123,311        5,363
------------------------------------------------------------------------
Source: Department of Homeland Security, U.S. Immigration and Customs
  Enforcement, Burlington Finance Center.

    These proposed amendments would benefit applicants that might 
accidently submit payments twice. USCIS anticipates this to be a bigger 
issue as more forms and associated fees begin to be collected through 
electronic means. Applicants would recoup any fees that were submitted 
due to these electronic systems issues. USCIS would benefit by having 
clear regulatory authority to justify the few cases in which refunds 
are provided.
    There may be some administrative costs associated with the issuance 
of refunds to USCIS, as well as some time burden costs to USCIS 
adjudicators who process these refund requests. It may be possible to 
see a potential increase initially in requests for refunds due to the 
visibility of this rule; however, USCIS does not anticipate a sustained 
increase as the parameters of the refunds issued are not proposed to be 
changed from current policy. There may also be a potential increase in 
the time burden costs for USCIS adjudicators due to potential initial 
increases in refund requests. USCIS does not have cost estimates at 
this time indicating the number of hours required to process and issue 
these refunds. There may also be some opportunity costs of time to 
applicants who submit a refund request; however, USCIS anticipates this 
cost is offset by the benefit gained in receiving a refund.

F. Executive Order 13132 (Federalism)

    This proposed rule 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 proposed rule does 
not have sufficient federalism implications to warrant the preparation 
of a federalism summary impact statement.

G. Executive Order 12988 (Civil Justice Reform)

    This proposed rule meets the applicable standards set forth in 
sections 3(a) and 3(b)(2) of Executive Order 12988.

H. Paperwork Reduction Act

    Under the Paperwork Reduction Act of 1995, Public Law 104-13, 109 
Stat. 163 (1995) (PRA), DHS is required to submit to OMB, for review 
and approval, any reporting or recordkeeping requirements inherent in a 
rule. USCIS is revising two information collections, adding a new 
information collection in association with this rulemaking action, and 
requesting public comments on the proposed information collection 
changes as follows: Application for Naturalization, Form N-400, to 
collect information necessary to document the applicant's eligibility 
for the reduced fee proposed in this rule at 8 CFR 
103.7(b)(1)(i)(AAA)(1); Annual Certification of Regional Center, Form 
I-924A, and the Application for Regional Center Designation Under the 
Immigrant Investor Program, Form I-924, to add the instructions 
necessary to require the annual fee; and, Request for Reduced Fee, Form 
I-942, to document the applicant's eligibility for the reduced fee. DHS 
is requesting comments on the information collection changes included 
in this rulemaking. Comments on this revised information collection 
should address one or more of the following four points:
    (1) Evaluate whether the collection of information is necessary for 
the proper performance of the functions of the agency, including 
whether the information will have practical utility;
    (2) Evaluate the accuracy of the agency's estimate of the burden of 
the collection of information, including the validity of the 
methodology and assumptions used;
    (3) Enhance the quality, utility, and clarity of the information to 
be collected; and
    (4) Minimize the burden of the collection of information on those 
who are to respond, including through the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology, such as permitting electronic 
submission of responses.

Overview of Information Collection--Form N-400

    a. Type of information collection: Revision of a Currently Approved 
Collection.
    b. Abstract: USCIS uses the information gathered on Form N-400 to 
make a determination as to a respondent's eligibility to naturalize and 
become a U.S. citizen. USCIS is

[[Page 26936]]

proposing changes to the form instructions to notify the public of the 
information needed to document an applicant's eligibility for the 
proposed reduced fee.
    c. Title of Form/Collection: Application for Naturalization.
    d. Agency form number, if any, and the applicable component of the 
DHS sponsoring the collection: Form N-400; USCIS.
    e. Affected public who will be asked or required to respond: 
Individuals or households.
    f. An estimate of the total number of respondents: 830,673 
respondents.
    g. Hours per response: The estimated hour burden per response for 
the paper filing of the N-400 is 9.17 hours per response. The estimated 
hour burden per response for the electronic filing of the N-400 is 3.5 
hours per response. The estimated hour burden per response for the 
biometric processing associated with the N-400 is 1.17 hours per 
response.
    h. Total Annual Reporting Burden: 8,118,167 hours.

Overview of Information Collection--Forms I-924 and I-924A

    a. Type of information collection: Revision to a currently approved 
information collection.
    b. Abstract: This collection is used to demonstrate a regional 
center's continued eligibility for regional center designation.
    c. Title of Form/Collection: Application for Regional Center 
Designation Under the Immigrant Investor Program/Annual Certification 
of Regional Center.
    d. Agency form number, if any, and the applicable component of the 
DHS sponsoring the collection: Form I-924 and Form I-924A; USCIS.
    e. Affected public who will be asked or required to respond: 
Businesses or other for-profit Entities; or State, local or Tribal 
Government
    f. An estimate of the total number of respondents:
     Form I-924--400 respondents.
     Form I-924A--882 respondents.
    g. Hours per response: For Form I-924, 51 hours; and Form I-924A, 
14 hours.
    h. Total Annual Reporting Burden: 32,748 hours.

Overview of Information Collection--Form I-942

    a. Type of information collection: New information collection.
    b. Abstract: This collection is used for an applicant to request a 
reduced fee and document that annual household income is between 150% 
and 200% of the FPG.
    c. Title of Form/Collection: Request for Reduced Fee.
    d. Agency form number, if any, and the applicable component of the 
DHS sponsoring the collection: Form I-942, USCIS.
    e. Affected public who will be asked or required to respond: 
Individuals.
    f. An estimate of the total number of respondents: 90,365 
respondents.
    g. Hours per response: .75 hours.
    h. Total Annual Reporting Burden: 67,774 hours.
    Comments concerning these collections and forms can be submitted to 
the Department of Homeland Security, U.S. Citizenship and Immigration 
Services, Office of Policy and Strategy, Chief, Regulatory Coordination 
Division, 20 Massachusetts Avenue NW., Washington, DC 20529-2020. 
Please include the OMB control number in the comment letter.
    Please also submit comments on the forms to OMB by:
     Email: [email protected];
     Facsimile at 202-395-7285, or;
     Mail: Desk Officer for USCIS, Office of Information and 
Regulatory Affairs, Office of Management and Budget, 725 17th St. NW., 
Washington, DC 20503
    The changes to the proposed fees will require minor amendments to 
USCIS forms to reflect the new fees. The necessary changes to the 
annual cost burden and to the forms will be submitted to OMB when a 
final rule is submitted to OMB.

List of Subjects

8 CFR Part 103

    Administrative practice and procedures, Authority delegations 
(government agencies), Freedom of Information, Privacy, Reporting and 
recordkeeping requirements, and Surety bonds.

8 CFR Part 204

    Administrative practice and procedure, Immigration, Reporting and 
recordkeeping requirements.

    Accordingly, DHS proposes to amend chapter I of title 8 of the Code 
of Federal Regulations as follows:

PART 103--IMMIGRATION BENEFITS; BIOMETRIC REQUIREMENTS; 
AVAILABILITY OF RECORDS

0
1. The authority citation for part 103 continues to read as follows:

    Authority: 5 U.S.C. 301, 552, 552(a); 8 U.S.C. 1101, 1103, 1304, 
1356; 31 U.S.C. 9701; Pub. L. 107-296, 116 Stat. 2135 (6 U.S.C. 1 et 
seq.); E.O. 12356, 47 FR 14874, 15557; 3 CFR, 1982 Comp., p. 166; 8 
CFR part 2 ; Pub. L. 112-54.

0
2. Section 103.2 is amended by:
0
a. Revising paragraph (a)(1);
0
b. Revising paragraph (a)(7); and
0
c. Revising paragraph (b)(9).
    The revisions read as follows:


Sec.  103.2  Submission and adjudication of benefit requests.

    (a) * * *
    (1) Preparation and submission. Every form, benefit request, or 
other document must be submitted to DHS and executed in accordance with 
the form instructions regardless of a provision of 8 CFR chapter I to 
the contrary. The form's instructions are hereby incorporated into the 
regulations requiring its submission. Each form, benefit request, or 
other document must be filed with the fee(s) required by regulation. 
Filing fees generally are non-refundable and, except as otherwise 
provided in this chapter I, must be paid when the benefit request is 
filed.
* * * * *
    (7) Benefit requests submitted. (i) USCIS will consider a benefit 
request received and will record the receipt date as of the actual date 
of receipt at the location designated for filing such benefit request 
whether electronically or in paper format.
    (ii) A benefit request which is rejected will not retain a filing 
date. A benefit request will be rejected if it is not:
    (A) Signed with valid signature;
    (B) Executed;
    (C) Filed in compliance with the regulations governing the filing 
of the specific application, petition, form, or request; and
    (D) Submitted with the correct fee(s). If a financial instrument 
used to pay a fee is returned as unpayable, the filing will be rejected 
and a charge will be imposed in accordance with 8 CFR 103.7(a)(2).
    (iii) A rejection of a filing with USCIS may not be appealed.
    (b) * * *
    (9) Appearance for interview or biometrics. USCIS may require any 
applicant, petitioner, sponsor, beneficiary, or individual filing a 
benefit request, or any group or class of such persons submitting 
requests, to appear for an interview and/or biometrics collection. 
USCIS may require the payment of the biometrics services fee in 8 CFR 
103.7(b)(1)(i)(C) or that the individual obtain a fee waiver. Such 
appearance and fee may also be required by law, regulation, form 
instructions, or Federal Register notice applicable to the request 
type. USCIS will notify the affected person of the date, time and 
location of any required appearance under this paragraph. Any person 
required to appear under this paragraph

[[Page 26937]]

may, prior to the scheduled date and time of the appearance, either:
    (i) Appear before the scheduled date and time;
    (ii) For good cause, request that the biometric services 
appointment be rescheduled; or
    (iii) Withdraw the benefit request.
* * * * *
0
4. Section 103.7 is amended by revising paragraphs (a)(2) and (b)(1) to 
read as follows:


Sec.  103.7  Fees.

* * * * *
    (a) * * *
    (2) Remittances must be drawn on a bank or other institution 
located in the United States and be payable in United States currency. 
Remittances must be made payable in accordance with the guidance 
specific to the applicable U.S. Government office when submitting to a 
Department of Homeland Security office located outside of the United 
States. Remittances to the Board of Immigration Appeals must be made 
payable to the ``United States Department of Justice,'' in accordance 
with 8 CFR 1003.8. A charge of $30.00 will be imposed if a remittance 
in payment of a fee or any other matter is not honored by the bank or 
financial institution on which it is drawn. If the remittance is found 
uncollectible the provisions of 8 CFR 103.2(a)(7)(ii) apply, no receipt 
will be issued, and if a receipt was issued, it is void and the benefit 
request loses its receipt date.
    (b) Amounts of fees. (1) Established fees and charges. (i) USCIS 
fees. A request for immigration benefits submitted to USCIS must 
include the required fee as established under this section. The fees 
established in this section are associated with the benefit, the 
adjudication, or the type of request and not solely determined by the 
form number listed below. The term ``form'' as defined in 8 CFR part 1, 
may include a USCIS-approved electronic equivalent of such form as 
USCIS may provide on its official Web site at http://www.uscis.gov.
    (A) Certification of true copies: $2.00 per copy.
    (B) Attestation under seal: $2.00 each.
    (C) Biometric services fee. For capturing, storing, and using 
biometric information (Biometric Fee). A service fee of $85 will be 
charged to pay for background checks and have their biometric 
information captured, stored, and used for any individual who is 
required to submit biometric information for an application, petition, 
or other request for certain immigration and naturalization benefits 
(other than asylum or refugee status) or actions. USCIS will not charge 
a biometric service fee when:
    (1) An applicant under 8 CFR 204.3 submits to USCIS a written 
request for an extension of the approval period of an Application for 
Advance Processing of an Orphan Petition (``Application''), if the 
request is submitted before the approval period expires and the 
applicant has not yet filed a Petition to Classify Orphan as an 
Immediate Relative (``Petition'') in connection with the approved 
Application. The applicant may submit only one extension request 
without having to pay an additional biometric service fee. If the 
extension of the approval expires before the applicant files an 
associated Petition, then the applicant must file either a new 
Application or a Petition, and pay a new filing fee and a new biometric 
service fee.
    (2) The application or petition fee for the associated request has 
been waived under paragraph (c) of this section; or
    (3) The associated benefit request is one of the following:
    (i) Application for Posthumous Citizenship, Form N-644;
    (ii) Refugee/Asylee Relative Petition, Form I-730;
    (iii) Application for T Nonimmigrant Status, Form I-914;
    (iv) Petition for U Nonimmigrant Status, Form I-918;
    (v) Application for Naturalization, Form N-400, by an applicant who 
meets the requirements of sections 328 or 329 of the Act with respect 
to military service under paragraph (b)(1)(i)(WW) of this section;
    (vi) Application to Register Permanent Residence or Adjust Status, 
Form I-485, from an asylee under paragraph (b)(1)(i)(U) of this 
section;
    (vii) Application To Adjust Status under Section 245(i) of the Act, 
Supplement A to Form I-485, from an unmarried child less than 17 years 
of age, or when the applicant is the spouse, or the unmarried child 
less than 21 years of age of a legalized foreign national and who is 
qualified for and has applied for voluntary departure under the family 
unity program from an asylee under paragraph (b)(1)(i)(V) of this 
section; or
    (viii) Petition for Amerasian, Widow(er), or Special Immigrant, 
Form I-360, meeting the requirements of paragraphs (b)(1)(i)(T)(1), 
(2), (3) or (4) of this section.
    (D) USCIS Immigrant Fee. For DHS domestic processing and issuance 
of required documents after an immigrant visa is issued by the U.S. 
Department of State: $220.
    (E) Request for a search of indices to historical records to be 
used in genealogical research, Form G-1041: $65. The search request fee 
is not refundable.
    (F) Request for a copy of historical records to be used in 
genealogical research, Form G-1041A: $65. USCIS will refund the records 
request fee only when it is unable to locate the file previously 
identified in response to the index search request.
    (G) Application to Replace Permanent Resident Card, Form I-90. For 
filing an application for a Permanent Resident Card, Form I-551, to 
replace an obsolete card or to replace one lost, mutilated, or 
destroyed, or for a change in name: $455.
    (H) Application for Replacement/Initial Nonimmigrant Arrival-
Departure Document, Form I-102. For filing a petition for an 
application for Arrival/Departure Record Form I-94, or Crewman's 
Landing Permit Form I-95, to replace one lost, mutilated, or destroyed: 
$445.
    (I) Petition for a Nonimmigrant Worker, Form I-129. For filing a 
petition for a nonimmigrant worker: $460.
    (J) Petition for Nonimmigrant Worker in CNMI, Form I-129CW. For an 
employer to petition on behalf of one or more beneficiaries: $460 plus 
a supplemental CNMI education funding fee of $150 per beneficiary per 
year. The CNMI education funding fee cannot be waived.
    (K) Petition for Alien Fianc[eacute](e), Form I-129F. For filing a 
petition to classify a nonimmigrant as a fianc[eacute]e or 
fianc[eacute] under section 214(d) of the Act: $535; there is no fee 
for a K-3 spouse as designated in 8 CFR 214.1(a)(2) who is the 
beneficiary of an immigrant petition filed by a United States citizen 
on a Petition for Alien Relative, Form I-130.
    (L) Petition for Alien Relative, Form I-130. For filing a petition 
to classify status of a foreign national relative for issuance of an 
immigrant visa under section 204(a) of the Act: $535.
    (M) Application for Travel Document, Form I-131. For filing an 
application for travel document:
    (1) $135 for a Refugee Travel Document for an individual age 16 or 
older.
    (2) $105 for a Refugee Travel Document for a child under the age of 
16.
    (3) $575 for advance parole and any other travel document.
    (4) No fee if filed in conjunction with a pending or concurrently 
filed Form I-485 with fee that was filed on or after July 30, 2007.
    (N) Immigrant Petition for Alien Worker, Form I-140. For filing a 
petition to classify preference status of an alien

[[Page 26938]]

on the basis of profession or occupation under section 204(a) of the 
Act: $700.
    (O) Application for Advance Permission to Return to Unrelinquished 
Domicile, Form I-191. For filing an application for discretionary 
relief under section 212(c) of the Act: $930.
    (P) Application for Advance Permission to Enter as a Nonimmigrant, 
Form I-192. For filing an application for discretionary relief under 
section 212(d)(3) of the Act, except in an emergency case or where the 
approval of the application is in the interest of the United States 
Government: $930.
    (Q) Application for Waiver for Passport and/or Visa, Form I-193. 
For filing an application for waiver of passport and/or visa: $930.
    (R) Application for Permission to Reapply for Admission into the 
United States After Deportation or Removal, Form I-212. For filing an 
application for permission to reapply for an excluded, deported or 
removed alien, an alien who has fallen into distress, an alien who has 
been removed as an alien enemy, or an alien who has been removed at 
government expense instead of deportation: $930.
    (S) Notice of Appeal or Motion, Form I-290B. For appealing a 
decision under the immigration laws in any type of proceeding over 
which the Board of Immigration Appeals does not have appellate 
jurisdiction: $675. The fee will be the same for appeal of a denial of 
a benefit request with one or multiple beneficiaries. There is no fee 
for an appeal or motion associated with a denial of a petition for a 
special immigrant visa filed by or on behalf of an individual seeking 
special immigrant visa or status as an Iraqi or Afghan national who was 
employed by or on behalf of the U.S. Government in Iraq or Afghanistan.
    (T) Petition for Amerasian, Widow(er), or Special Immigrant, Form 
I-360. For filing a petition for an Amerasian, Widow(er), or Special 
Immigrant: $435. The following requests are exempt from this fee:
    (1) A petition seeking classification as an Amerasian;
    (2) A self-petition for immigrant status as a battered or abused 
spouse, parent, or child of a U.S. citizen or lawful permanent 
resident; or
    (3) A petition for special immigrant juvenile status; or
    (4) A petition seeking special immigrant visa or status an Iraqi or 
Afghan national who was employed by or on behalf of the U.S. Government 
in Iraq or Afghanistan.
    (U) Application to Register Permanent Residence or Adjust Status, 
Form I-485. For filing an application for permanent resident status or 
creation of a record of lawful permanent residence:
    (1) $1,140 for an applicant 14 years of age or older; or
    (2) $750 for an applicant under the age of 14 years when:
    (i) The application is submitted concurrently for adjudication with 
the Form I-485 of a parent; and
    (ii) The applicant is seeking to adjust status as a derivative of 
his or her parent;
    (3) There is no fee if an applicant is filing as a refugee under 
section 209(a) of the Act.
    (V) Application to Adjust Status under Section 245(i) of the Act, 
Supplement A to Form I-485. Supplement to Form I-485 for persons 
seeking to adjust status under the provisions of section 245(i) of the 
Act: $1,000. There is no fee when the applicant is an unmarried child 
less than 17 years of age, when the applicant is the spouse, or the 
unmarried child less than 21 years of age of an individual with lawful 
immigration status and who is qualified for and has applied for 
voluntary departure under the family unity program.
    (W) Immigrant Petition by Alien Entrepreneur, Form I-526. For 
filing a petition for an alien entrepreneur: $3,675.
    (X) Application To Extend/Change Nonimmigrant Status, Form I-539. 
For filing an application to extend or change nonimmigrant status: 
$370.
    (Y) Petition to Classify Orphan as an Immediate Relative, Form I-
600. For filing a petition to classify an orphan as an immediate 
relative for issuance of an immigrant visa under section 204(a) of the 
Act. Only one fee is required when more than one petition is submitted 
by the same petitioner on behalf of orphans who are brothers or 
sisters: $775.
    (Z) Application for Advance Processing of Orphan Petition, Form I-
600A. For filing an application for advance processing of orphan 
petition. (When more than one petition is submitted by the same 
petitioner on behalf of orphans who are brothers or sisters, only one 
fee will be required.): $775. No fee is charged if Form I-600 has not 
yet been submitted in connection with an approved Form I-600A subject 
to the following conditions:
    (1) The applicant requests an extension of the approval in writing 
and the request is received by USCIS before the expiration date of 
approval; and
    (2) The applicant's home study is updated and USCIS determines that 
proper care will be provided to an adopted orphan.
    (3) A no fee extension is limited to one occasion. If the Form I-
600A approval extension expires before submission of an associated Form 
I-600, then a complete application and fee must be submitted for any 
subsequent application.
    (AA) Application for Waiver of Ground of Inadmissibility, Form I-
601. For filing an application for waiver of grounds of 
inadmissibility: $930.
    (BB) Application for Provisional Unlawful Presence Waiver, Form I-
601A. For filing an application for provisional unlawful presence 
waiver: $630.
    (CC) Application for Waiver of the Foreign Residence Requirement 
(under Section 212(e) of the Immigration and Nationality Act, as 
Amended), Form I-612. For filing an application for waiver of the 
foreign-residence requirement under section 212(e) of the Act: $930.
    (DD) Application for Status as a Temporary Resident under Section 
245A of the Immigration and Nationality Act, Form I-687. For filing an 
application for status as a temporary resident under section 245A(a) of 
the Act: $1,130.
    (EE) Application for Waiver of Grounds of Inadmissibility under 
Sections 245A or 210 of the Immigration and Nationality Act, Form I-
690. For filing an application for waiver of a ground of 
inadmissibility under section 212(a) of the Act as amended, in 
conjunction with the application under sections 210 or 245A of the Act, 
or a petition under section 210A of the Act: $715.
    (FF) Notice of Appeal of Decision under Sections 245A or 210 of the 
Immigration and Nationality Act (or a petition under section 210A of 
the Act), Form I-694. For appealing the denial of an application under 
sections 210 or 245A of the Act, or a petition under section 210A of 
the Act: $890.
    (GG) Application to Adjust Status from Temporary to Permanent 
Resident (Under Section 245A of Pub. L. 99-603), Form I-698. For filing 
an application to adjust status from temporary to permanent resident 
(under section 245A of Pub. L. 99-603): $1,670. The adjustment date is 
the date of filing of the application for permanent residence or the 
applicant's eligibility date, whichever is later.
    (HH) Petition to Remove Conditions on Residence, Form I-751. For 
filing a petition to remove the conditions on residence based on 
marriage: $595.
    (II) Application for Employment Authorization, Form I-765. $410; no 
fee if filed in conjunction with a pending or concurrently filed Form 
I-485 with fee that was filed on or after July 30, 2007.

[[Page 26939]]

    (JJ) Petition to Classify Convention Adoptee as an Immediate 
Relative, Form I-800.
    (1) There is no fee for the first Form I-800 filed for a child on 
the basis of an approved Application for Determination of Suitability 
to Adopt a Child from a Convention Country, Form I-800A, during the 
approval period.
    (2) If more than one Form I-800 is filed during the approval period 
for different children, the fee is $775 for the second and each 
subsequent petition submitted.
    (3) If the children are already siblings before the proposed 
adoption, however, only one filing fee of $775 is required, regardless 
of the sequence of submission of the immigration benefit.
    (KK) Application for Determination of Suitability to Adopt a Child 
from a Convention Country, Form I-800A. For filing an application for 
determination of suitability to adopt a child from a Convention 
country: $775.
    (LL) Request for Action on Approved Application for Determination 
of Suitability to Adopt a Child from a Convention Country, Form I-800A, 
Supplement 3. This filing fee is not charged if Form I-800 has not been 
filed based on the approval of the Form I-800A, and Form I-800A 
Supplement 3 is filed in order to obtain a first extension of the 
approval of the Form I-800A: $385.
    (MM) Application for Family Unity Benefits, Form I-817. For filing 
an application for voluntary departure under the Family Unity Program: 
$600.
    (NN) Application for Temporary Protected Status, Form I-821. For 
first time applicants: $50. There is no fee for re-registration.
    (OO) Application for Action on an Approved Application or Petition, 
Form I-824. For filing for action on an approved application or 
petition: $465.
    (PP) Petition by Entrepreneur to Remove Conditions, Form I-829. For 
filing a petition by entrepreneur to remove conditions: $3,750.
    (QQ) Application for Suspension of Deportation or Special Rule 
Cancellation of Removal (Pursuant to Section 203 of Pub. L. 105-100), 
Form I-881:
    (1) $285 for adjudication by DHS, except that the maximum amount 
payable by family members (related as husband, wife, unmarried child 
under 21, unmarried son, or unmarried daughter) who submit applications 
at the same time will be $570.
    (2) $165 for adjudication by the Immigration Court (a single fee of 
$165 will be charged whenever applications are filed by two or more 
foreign nationals in the same proceedings).
    (3) The $165 fee is not required if the Form I-881 is referred to 
the Immigration Court by DHS.
    (RR) Application for Authorization to Issue Certification for 
Health Care Workers, Form I-905: $230.
    (SS) Request for Premium Processing Service, Form I-907. The fee 
must be paid in addition to, and in a separate remittance from, other 
filing fees. The fee to request premium processing: $1,225. The fee for 
a request for premium processing fee may be adjusted annually by notice 
in the Federal Register based on inflation according to the Consumer 
Price Index (CPI). The fee for Premium Processing Service may not be 
waived.
    (TT) Application for Civil Surgeon Designation, Form I-910. For 
filing an application for civil surgeon designation: $785. There is no 
fee for an application from a medical officer in the U.S. Armed Forces 
or civilian physician employed by the U.S. Government who examines 
members and veterans of the Armed Forces and their dependents at a 
military, Department of Veterans Affairs, or U.S. Government facility 
in the United States.
    (UU) Application for T Nonimmigrant Status, Form I-914. No fee.
    (VV) Application for U Nonimmigrant Status, Form I-918. No fee.
    (WW) Application for Regional Center Designation under the 
Immigrant Investor Program, Form I-924. For filing an application for 
regional center designation under the Immigrant Investor Program: 
$17,795.
    (XX) Annual Certification of Regional Center, Form I-924A. To 
provide updated information and certify that an Immigrant Investor 
Regional Center has maintained their eligibility: $3,035.
    (YY) Petition for Qualifying Family Member of a U-1 Nonimmigrant, 
Form I-929. For U-1 principal applicant to submit for each qualifying 
family member who plans to seek an immigrant visa or adjustment of U 
status: $230.
    (ZZ) Application to File Declaration of Intention, Form N-300. For 
filing an application for declaration of intention to become a U.S. 
citizen: $270.
    (AAA) Request for a Hearing on a Decision in Naturalization 
Proceedings (Under section 336 of the Act), Form N-336. For filing a 
request for hearing on a decision in naturalization proceedings under 
section 336 of the Act: $700. There is no fee if filed on or after 
October 1, 2004, by an applicant who has filed an Application for 
Naturalization under sections 328 or 329 of the Act with respect to 
military service and whose application has been denied.
    (BBB) Application for Naturalization, Form N-400. For filing an 
application for naturalization: $640. Except:
    (1) The fee for an applicant whose documented income is greater 
than 150% and not more than 200% of the federal poverty level is $320.
    (2) No fee is charged an applicant who meets the requirements of 
sections 328 or 329 of the Act with respect to military service.
    (CCC) Application to Preserve Residence for Naturalization 
Purposes, Form N-470. For filing an application for benefits under 
section 316(b) or 317 of the Act: $355.
    (DDD) Application for Replacement Naturalization/Citizenship 
Document, Form N-565. For filing an application for a certificate of 
naturalization or declaration of intention in place of a certificate or 
declaration alleged to have been lost, mutilated, or destroyed; for a 
certificate of citizenship in a changed name under section 343(c) of 
the Act; or for a special certificate of naturalization to obtain 
recognition as a citizen of the United States by a foreign state under 
section 343(b) of the Act: $555. There is no fee when this application 
is submitted under 8 CFR 338.5(a) or 343a.1 to request correction of a 
certificate that contains an error.
    (EEE) Application for Certificate of Citizenship, Form N-600. For 
filing an application for a certificate of citizenship under section 
309(c) or section 341 of the Act: $1,170. There is no fee for any 
application filed by a member or veteran of any branch of the United 
States Armed Forces.
    (FFF) Application for Citizenship and Issuance of Certificate under 
section 322 of the Act, Form N-600K. For filing an application for 
citizenship and issuance of certificate under section 322 of the Act: 
$1,170.
    (GGG) American Competitiveness and Workforce Improvement Act 
(ACWIA) fee. $1,500 or $750 for filing certain H-1B petitions as 
described in 8 CFR 214.2(h)(19) and USCIS form instructions.
    (HHH) Fraud detection and prevention fee. $500 for filing certain 
H-1B and L petitions, and $150 for H-2B petitions as described in 8 CFR 
214.2(h)(19).
    (III) 9-11 Response and Biometric Entry-Exit Fee for H-1B Visa. 
$4,000 for certain petitioners who employ 50 or more employees in the 
United States if more than 50 percent of the petitioner's employees are 
in H-1B, L-1A or L-1B nonimmigrant status. Collection of this fee is 
scheduled to end on September 30, 2025.
    (JJJ) 9-11 Response and Biometric Entry-Exit Fee for L-1 Visa. 
$4,500 for

[[Page 26940]]

certain petitioners who employ 50 or more employees in the United 
States, if more than 50 percent of the petitioner's employees are in H-
1B, L-1A or L-1B nonimmigrant status. Collection of this fee is 
scheduled to end on September 30, 2025.
* * * * *
0
5. Section 103.16 is amended by revising the first sentence of 
paragraph (a) to read as follows:


Sec.  103.16  Collection, use and storage of biometric information.

    (a) Use of biometric information. An individual may be required to 
submit biometric information by law, regulation, Federal Register 
notice or the form instructions applicable to the request type or if 
required in accordance with 8 CFR 103.2(b)(9). * * *
* * * * *
0
6. Section 103.17 is amended by revising paragraph (b) to read as 
follows:


Sec.  103.17  Biometric service fee.

* * * * *
    (b) Non-payment. If a benefit request is received by DHS without 
the correct biometric services fee as provided in the form 
instructions, DHS will reject the benefit request.

PART 204--IMMIGRANT PETITIONS

0
7. The authority citation for part 204 continues to read as follows:

    Authority: 8 U.S.C. 1101, 1103, 1151, 1153, 1154, 1182, 1184, 
1186a, 1255, 1641; 8 CFR part 2.
0
8. Section 204.6 is amended by revising paragraph (m)(6) to read as 
follows:


Sec.  204.6  Petitions for employment creation aliens.

* * * * *
    (m) * * *
    (6) Continued participation requirements for regional centers. (i) 
Regional centers approved for participation in the program must:
    (A) Continue to meet the requirements of section 610(a) of the 
Appropriations Act.
    (B) Provide USCIS with updated information annually, and/or as 
otherwise requested by USCIS, to demonstrate that the regional center 
is continuing to promote economic growth, including increased export 
sales, improved regional productivity, job creation, and increased 
domestic capital investment in the approved geographic area, using a 
form designated for this purpose; and
    (C) Pay the fee provided by 8 CFR 103.7(b)(1)(i)(WW).
    (ii) USCIS will issue a notice of intent to terminate the 
designation of a regional center in the program if:
    (A) A regional center fails to submit the information required in 
paragraph (m)(6)(i)(B) of this section, or pay the associated fee; or
    (B) USCIS determines that the regional center no longer serves the 
purpose of promoting economic growth, including increased export sales, 
improved regional productivity, job creation, and increased domestic 
capital investment.
    (iii) A notice of intent to terminate the designation of a regional 
center will be sent to the regional center and set forth the reasons 
for termination.
    (iv) The regional center will be provided 30 days from receipt of 
the notice of intent to terminate to rebut the ground or grounds stated 
in the notice of intent to terminate.
    (v) USCIS will notify the regional center of the final decision. If 
USCIS determines that the regional center's participation in the 
program should be terminated, USCIS will state the reasons for 
termination. The regional center may appeal the final termination 
decision in accordance with 8 CFR 103.3.
    (vi) A regional center may elect to withdraw from the program and 
request a termination of the regional center designation. The regional 
center must notify USCIS of such election in the form of a letter or as 
otherwise requested by USCIS. USCIS will notify the regional center of 
its decision regarding the withdrawal request in writing.
* * * * *

Jeh Charles Johnson,
Secretary.
[FR Doc. 2016-10297 Filed 5-3-16; 8:45 am]
 BILLING CODE 9111-97-P