[Federal Register: August 14, 2006 (Volume 71, Number 156)]
[Rules and Regulations]               
[Page 46396-46398]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14au06-7]                         

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DEPARTMENT OF STATE

22 CFR Part 51

RIN 1400-AC23
[Public Notice 5494]

 
Passport Procedures--Amendment to Passport Regulations

AGENCY: Department of State.

ACTION: Interim rule.

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

DATES: Effective date: This interim rule is effective on August 15, 
2006.
    Comment period: The Department of State will accept written 
comments from interested persons up to September 13, 2006.

ADDRESSES: Interested parties may submit comments at any time by any of 
the following methods:

[[Page 46397]]

     E-mail: PassportRules@state.gov. You must include the 
Regulatory Identification Number (RIN) in the subject line of your 
message.
     Mail: (Paper, disk, or CD-ROM submissions): An original 
and three copies of comments should be sent to: Gail Neelon, Office of 
Passport Policy, Planning and Advisory Services, 2100 Pennsylvania 
Ave., NW., 3rd Floor, Washington, DC 20037. 202-663-2427.
     Fax: 202-663-2499. You must include the Regulatory 
Identification Number (RIN) in the subject line of your message.

FOR FURTHER INFORMATION CONTACT: For passport issuance policy: Gail 
Neelon, Office of Passport Policy, Planning and Advisory Services, 2100 
Pennsylvania Ave., NW., 3rd Floor, Washington, DC 20037. (202) 663-
2427. E-mail: PassportRules@state.gov. For consular fee setting policy: 
Timothy Scherer, Office of the Executive Director, Bureau of Consular 
Affairs, U.S. Department of State, Suite H1004, 2401 E St., NW., 
Washington, DC 20520, or by e-mail: fees@state.gov.

SUPPLEMENTARY INFORMATION: Section 1101(a)(30) of Title 8, United 
States Code (U.S.C.), defines a passport as any travel document issued 
by a competent authority showing the bearer's origin, identity and 
nationality, which is valid for the admission of the bearer into a 
foreign country. The Secretary of State has sole authority to grant and 
issue passports, pursuant to 22 U.S.C. 211a. Before a passport is 
issued to any person by or under authority of the United States such 
person shall subscribe to and submit a written application, as required 
by 22 U.S.C. 213. During its period of validity, a passport (when 
issued for the maximum period authorized by law) is a document 
establishing proof of United States citizenship, pursuant to 22 U.S.C. 
2705.
    Section 7209 of the IRTPA seeks to enhance border security within 
the Western Hemisphere by requiring documentation for travel by U.S. 
citizens that denotes citizenship and identity. It requires that the 
Secretary of Homeland Security, in consultation with the Secretary of 
State, develop and implement a plan by January 1, 2008 to require all 
travelers, U.S. citizens and non-U.S. citizens alike, to present ``a 
passport or other document, or combination of documents, deemed by the 
Secretary of Homeland Security to be sufficient to denote identity and 
citizenship'' when entering the United States. This is a change from 
prior travel requirements and will affect United States citizens 
entering the United States who do not currently possess valid 
passports.
    The Passport Services Enhancement Act (Pub. L. 109-167, January 10, 
2006, 119 STAT. 3578) authorizes the Secretary of State to establish, 
collect, and retain a surcharge to cover the costs of meeting the 
increased demand for passports as a result of actions taken to comply 
with section 7209(b) of the Intelligence Reform and Terrorism 
Prevention Act of 2004 (Pub. L. 108-458, 8 U.S.C. 1185). At present, 
the entire passport application fee is deposited to the Department of 
the Treasury.
    In March 2006, the Department of State commissioned an independent 
cost of service survey to examine the resource implications of the 
increased demand for passports under the Western Hemisphere Travel 
Initiative (WHTI), the administration's proposal to address the 
requirements of the IRTPA, and to determine the appropriate amount of 
the surcharge. That survey determined that uncompensated WHTI-related 
costs borne by the Department of State will reach $289 million during 
the period FY 2006-FY 2008. It also determined that a six-dollar 
surcharge retained by the Department of State would enable it to meet 
the costs of increased passport demand. Pursuant to the authority 
granted to the Secretary of State under the Passport Services 
Enhancement Act of 2005, this rule will allow the Department of State 
to establish, collect, and retain a six-dollar surcharge on applicable 
fees for the filing of each application for a passport, in order to 
address the resource implications of section 7209(b) of the IRTPA. That 
surcharge will be imbedded in the passport application fee and will be 
deposited as an offsetting collection to the appropriate Department of 
State appropriation account. The non-surcharge portion of the passport 
application fee will be remitted to the general fund of the Treasury.
    However, the Passport Services Enhancement Act stipulates that the 
Department of State must ensure ``to the extent practicable'' that the 
total cost of the passport during fiscal years 2006 and 2007 not exceed 
the cost as of December 1, 2005. Therefore, the Department of State 
plans to reduce the total fee for a passport application based on the 
cost of service study commissioned in March 2006. This fee reduction 
will permit the Department of State to ensure in a timely manner that 
the cost of a passport application, after implementation of the 
surcharge authorized by this rule, will not exceed the cost of a 
passport application as of December 1, 2005. The net impact of these 
two actions is no change to the fee charged for a passport application.
    The Department of State considers the enactment of this rule as a 
matter of urgency to help provide the funds to meet the demand created 
by the legislation for universal international traveler nationality and 
identity documentation. The Department is in the process of increasing 
its overall production capacity, improving efficiency of production and 
adjudication processes, and developing a lower cost card format 
passport for use at land border crossings.

Regulatory Findings

Administrative Procedure Act

    The Department is publishing this rule as an interim final rule, 
with a 30-day provision for post-promulgation public comments, based on 
the ``good cause'' exceptions set forth at 5 U.S.C. 553(b)(3)(B) and 
553(d)(3). The rule will not take effect, however, until August 15, 
2006. Publishing the rule in this way, with a post-promulgation 
opportunity for comment, will allow the Department of State to make the 
rule effective at the earliest opportunity. Allowing a full 30-day 
comment period followed by a publication of the final rule with a 
further 30 days before its effective date is not practicable or in the 
public interest. That process would delay retention by the Department 
of State of the authorized surcharge, urgently needed in order to cover 
the increased costs attendant to implementing the provisions of the 
Intelligence Reform and Terrorism Prevention Act of 2004. That law, 
passed in the aftermath of the September 11, 2001 terrorist attacks, 
seeks to increase the national security of the United States by 
requiring all arrivals (both foreign national and U.S. citizen) to 
possess a suitably secure travel document. By expedited retention of 
the surcharge through an interim final rule, the Department of State 
will have sufficient time to fund the costs of increased passport 
demand in fiscal year 2006 and to prepare for the production of a new, 
convenient card format passport in fiscal year 2007. Comments received 
before the end of the comment period will be addressed in a final rule.

Regulatory Flexibility Act/Executive Order 13272: Small Business

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

[[Page 46398]]

The Small Business Regulatory Enforcement Fairness Act of 1996

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

The Unfunded Mandates Reform Act of 1995

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

Executive Order 13132: Federalism

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

Executive Order 12866: Regulatory Review

    The Department of State considers this rule to be a ``significant 
regulatory action'' under Executive Order 12866, section 3(f), 
Regulatory Planning and Review. Therefore, the Department has submitted 
the rule to the Office of Management and Budget for its review.

Executive Order 12988: Civil Justice Reform

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

The Paperwork Reduction Act of 1995

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

List of Subjects in 22 CFR Part 51

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


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

PART 51--PASSPORTS

0
1. The authority citation for Part 51 is revised to read as follows:

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

0
2. Section 51.61 is amended by redesignating paragraphs (b) and (c) as 
paragraphs (c) and (d) and adding a new paragraph (b) to read as 
follows:


Sec.  51.61  Passport fees.

* * * * *
    (b) A surcharge of six dollars on the filing of each application 
for a passport in order to cover the costs of meeting the increased 
demand for passports as a result of actions taken to comply with 
section 7209(b) of the Intelligence Reform and Terrorism Prevention Act 
of 2004 (8 U.S.C. 1165 note). The surcharge will be recovered by the 
Department of State from within the passport fee reflected in Schedule 
of Consular Fees. The surcharge will be imposed until October 1, 2010.
* * * * *

    Dated: August 4, 2006.
Henrietta Fore,
Under Secretary for Management, Department of State.
 [FR Doc. E6-13300 Filed 8-11-06; 8:45 am]

BILLING CODE 4710-06-P