[Federal Register Volume 63, Number 123 (Friday, June 26, 1998)]
[Rules and Regulations]
[Pages 34808-34810]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-16653]


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UNITED STATES INFORMATION AGENCY

22 CFR Part 514


Exchange Visitor Program

AGENCY: United States Information Agency.

ACTION: Interim final rule.

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SUMMARY: The Agency adopts a fee sufficient for it to recover the full 
cost of its administrative processing of requests for waiver of the 
two-year return to the home country requirement set forth in Section 
212(e) of the Immigration and Naturalization Act (8 U.S.C. 1182(e)).

DATES: This interim rule is effective June 26, 1998. The specified fee 
will be assessed for all waiver applications post-marked after July 27, 
1998. Written comments must be submitted on or before July 27, 1998.

ADDRESSES: Written comments should be submitted to: Public Comment 
Clerk, Office of General Counsel, United States Information Agency, 301 
4th Street, SW., Washington, DC 20547.

FOR FURTHER INFORMATION CONTACT:
Stanley S. Colvin, Assistant General Counsel, Office of the General 
Counsel, 301 4th Street, SW., Washington, DC 20547; telephone, (202) 
619-6531.

SUPPLEMENTARY INFORMATION: Pursuant to the provisions of the Fulbright-
Hays Act of 1961 (Pub. L. 87-256) the Agency administers the Exchange 
Visitor Program by facilitating the entry of over

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200,000 program participants each year. The Exchange Visitor Program is 
a component of the public diplomacy efforts of the United States 
Government and fosters mutual understanding and peaceful relations 
between the United States and other countries through educational and 
cultural exchange activities. Program participants enter the United 
States in nonimmigrant J-visa status. A statutory requirement has been 
imposed to ensure that certain program participants return to their 
home country and share with their countrymen the education, skills, and 
understanding of the United States acquired as a program participant.
    Commonly referred to as the Section 212(e) return to the home 
country requirement, this statutory provision applies to a program 
participant who has entered the United States and received government 
funding to participate in an exchange activity, or who has pursued 
graduate medical education or training as a participant, or who has 
pursued study or training in a field of interest to his or her home 
government as evidenced by such field's inclusion on the identified 
``skills list'' for that country. If subject to the provisions of 
Section 212(e), a program participant may not adjust his or her 
nonimmigrant status to that afforded under the provisions of 8 U.S.C. 
1101 (h) or (l) or to legal permanent resident unless the participants 
has been either physically present in his or her home country for a 
period of two years following completion of his or her Exchange Visitor 
Program or has received a waiver of this requirement.
    Based upon the statutory and administrative authorities set forth 
below, the Agency has determined that its review of and recommendation 
regarding requests for the waiver of the two year return to the home 
country requirement confers a specific benefit to the requesting 
individual. Accordingly, a fee sufficient to recoup the costs of 
conferring this specific benefit is appropriate.

Legislative Authority

    The Department of Commerce, Justice, and State, the Judiciary, and 
Related Agencies Appropriations Act of 1998 (Pub. L. 105-119) 
authorizes the Agency to collect fees related to its provision of 
Exchange Visitor Program services. Specifically, this appropriations 
statute authorizes the Agency to charge a fee and recycle such monies 
by providing ``* * * That not to exceed $6,000,000, to remain available 
until expended, may be credited to this appropriation from fees or 
other payments received from or in connection with English teaching, 
library, motion pictures, and publication programs as authorized by 
section 810 of such Act of 1948 (22 U.S.C. 1475e) and, notwithstanding 
any other law, fees from educational advising and counseling, and 
exchange visitor program services * * *.''
    In adopting a fee for exchange visitor program services provided to 
the public, the Agency is also guided by the provisions of the 
Independent Offices Appropriations Act of 1952 (Pub. L. 82-137), 31 
U.S.C. 9701. This statute permits an agency to prescribe regulations 
establishing the charge for a service or thing of value provided by the 
agency. Such regulations so adopted are subject to policies prescribed 
by the President. The statute directs that any charge adopted shall be 
(i) fair; and (ii) based on the costs to the Government, the value of 
the service to the recipient, the public policy or interest served, and 
other relevant facts. The Agency has determined that an application to 
the Agency for a waiver recommendation is a request for a service 
within the meaning of these statutes that confers a specific benefit 
upon an identifiable beneficiary. Further, the Agency also relies upon 
the decisions in Auyda, Inc. v. Attorney General, 661 F. Supp. 33 
(1987); and Engine Manufacturers Association v. E.P.A., 20 F.3d 1177 
(1994) in adopting a fee for the review of such applications.
    Finally, the Agency's adoption and implementation of a fee for 
review of waiver applications will be subject to the provisions of the 
Chief Financial Officers Act of 1990 (Pub. L. 101-576.) Section 
205(a)(8) of this Act requires the Agency's Chief Financial Officer to 
``review, on a biennial basis, the fee, royalties, rents, and other 
charges imposed by the agency for services and things of value it 
provides, and make recommendations on revising those charges to reflect 
costs incurred by it in providing those services and things of value.'' 
(31 U.S.C. 902(a)(8))

Office of Management and Budget Circular No. A-25

    Pursuant to Circular No. A-25, The Office of Management and Budget 
(OMB) has established the Federal policy governing fees assessed for 
Government services and for the sale or use of Government goods or 
resources. OMB Circular No. A-25 sets forth the general policy that a 
``user charge * * * will be assessed against each identifiable 
recipient for special benefits derived from Federal activities beyond 
those received by the general public.'' To determine whether a 
``special benefit'' has accrued, Circular No. A-25 offers the following 
guidance:

    For example, a special benefit will be considered to accrue and 
a user charge will be imposed when a Government service: 
(a)(E)nables the beneficiary to obtain more immediate or substantial 
gains or values (which may or may not be measurable in monetary 
terms) than those that accrue to the general public (e.g., receiving 
a patent, insurance, or guarantee provision, or a license to carry 
on a specific activity or business or various kinds of public land 
use); or (b) (P)rovides business stability or contributes to public 
confidence in the business activity of the beneficiary (e.g., 
insuring deposits in commercial banks); or (c) (I)s performed at the 
request of or for the convenience of the recipient, and is beyond 
the services regularly received by other members of the same 
industry or group or by the general public (e.g., receiving a 
passport, visa, airman's certificate, or a Customs inspection after 
regular duty hours.)

(OMB Circular A-25, section 6.a.(1))

    In calculating the amount of the fee to be charged for the Agency's 
review of an application for a Section 212(e) waiver and recommendation 
thereon, the Agency will rely upon the guidance set forth in OMB 
Circular A-25. Agencies are directed to recoup the ``full costs'' of 
providing a service or specific benefit. Full cost is defined as 
including all direct and indirect costs to any part of the Federal 
Government of providing a good, resource, or service. These costs 
include, but are not limited to, an appropriate share of:

    (a) Directed and indirect personnel costs, including salaries 
and fringe benefits such as medical insurance and retirement. 
Retirement costs should include all (funded or unfunded) accrued 
costs not covered by employee contributions as specified in Circular 
No. A-11.
    (b) 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. If 
imputed rental costs are applied, they should include:
    (i) Depreciation of structures and equipment, based on official 
Internal Revenue Service depreciation guidelines unless better 
estimates are available; and
    (ii) An annual rate of return (equal to the average long-term 
Treasury bond rate) on land, structures, equipment and other capital 
resources used.
    (c) The management and supervisory costs.
    (d) The costs of enforcement, collection, research, 
establishment of standards, and regulation, including any required 
environmental statements.
    (e) Full cost shall be determined or estimated from the best 
available records of the agency, and new cost account systems need 
not be established solely for this purpose.

(OMB Circular A-25 Section 6.d)

    Circular A-25 further directs the federal agencies to adopt user 
charges by promulgating regulations, to ensure that proper internal 
control systems and

[[Page 34810]]

appropriate audit standards are in place, and to review user charges 
biennially to ensure adjustment of such charges to reflect 
unanticipated changes in costs or market values.

Fee Calculation

    Having determined that imposition of a user fee for Agency review 
of waiver requests is a lawful exercise of Agency authority, the amount 
of such fee must be calculated. In calculating the amount of this fee, 
the Agency is guided by the provisions of OMB Circular No. A-25, User 
Charges and the Federal Accounting Standards Advisory Board Statement 
of Federal Financial Accounting Standards No. 4: Managerial Cost 
Accounting Concepts and Standards for the Federal Government. These 
standards direct that an agency identify and recoup the full cost of 
providing a benefit or service. Full cost is defined to mean both the 
direct and indirect costs of providing said service or benefit. The 
Agency's organizational structure facilitates the calculation of the 
full cost associated with review of waiver applications as performance 
of this function is centralized in the Agency's Office of General 
Counsel Waiver Review Branch (Waiver Branch).
    The Waiver Branch is headed by a branch chief who supervises five 
waiver officers, four waiver assistants and two program assistants. 
These twelve employees process some 6,000 waiver applications each 
year. This processing is broken dawn along geographic lines with each 
officer responsible for specific countries with the waiver and program 
assistants providing necessary support services. In addition, the 
Waiver Branch receives general management oversight from the Agency's 
General Counsel and Deputy General Counsel and legal oversight and 
assistance from an Agency Assistant General Counsel.
    In processing waiver applications, the Waiver Branch unit is 
required to perform the following tasks:
    Receive waiver applications, which includes the tasks of receiving, 
opening, and screening applications;
    Record fee, which includes, in cooperation with the Agency's 
Management Bureau, the task of receipting fees, reconciling registers, 
preparing and making deposits, and recording information into program 
and financial systems;
    Input application data, which includes the tasks of entering data 
from applications into program systems, verifying data, and printing 
system data;
    Manage records, which includes the tasks of creating files; 
connecting requested information and documents with application files; 
putting, storing, and moving files; and archiving inactive files;
    Adjudicate application, which includes the tasks of distributing 
workload; reviewing, examine, and adjudicating applications; making and 
recording adjudicative decisions; requesting and reviewing additional 
information as needed; and consulting with supervisors and legal 
counsel on non-routine adjudications;
    Prepare outgoing correspondence, which includes the tasks of 
preparing decision letters, copying, and mailing;
    Respond to inquiries, which includes the tasks of receiving and 
responding to inquiries on the status of a waiver application or the 
request for an advisory opinion regarding whether an alien is subject 
to the two year return to the home country requirement. These inquiries 
may be from applicants, legal representatives, or members of Congress 
and are received by both telephone and in writing.
    As stated above, these identified tasks are performed on a full-
time basis by the twelve members of the Waiver Branch with three 
additional Agency employees providing supervision and legal services on 
a less than full-time basis. Through application of FASAB Federal 
Financial Standards No. 4: Managerial Cost Accounting Concepts and 
Standards for the Federal Government, the Agency has identified 
$632,872 in direct costs attributable to the performance of the tasks 
set forth above. Based upon direct and indirect costs of $816,232, and 
6,000 waiver application per year, the Agency has determined that the 
per unit cost of processing a waiver application is $136 and adopts 
this amount as the fee to be collected for the future processing of 
waiver applications.

Public Comment

    The Agency invites comments from the public on this interim final 
rule notwithstanding the fact that it is under no legal requirement to 
do so. The Designation of exchange visitor sponsors and the 
administration of the Exchange Visitor Program are deemed to be foreign 
affairs functions of the United States Government. The Administrative 
Procedures Act, 5 U.S.C. 553(a)(1)(1989) specifically exempts such 
functions from the rulemaking requirements of the Act.
    The Agency will accept comments for thirty days following 
publication of this interim final rule. In accordance with 5 U.S.C. 
605(b), the Agency certifies that this rule does not have a significant 
adverse economic impact on a substantial number of small entities. This 
rule is not considered to be a major rule within the meaning of section 
1(b) of E.O. 12291, nor does it have federalism implications warranting 
the Preparation of a Federalism Assessment in accordance with E.O. 
12612. This rule is not a major rule as defined by the Small Business 
Regulatory Enforcement Act of 1996 nor is it considered an economically 
significant regulatory action as defined by E.O. 12866. This rule does 
not impose any new reporting or record keeping requirements.

List of Subjects in 22 CFR Part 514

    Cultural Exchange Programs.

    Dated: June 18, 1998.
Les Jin,
General Counsel.

    Accordingly, 22 CFR Part 514 is amended as follows:

PART 514--EXCHANGE VISITOR PROGRAM

    1. The authority citation for part 514 continues to read as 
follows:

    Authority: 8 U.S.C. 1101 (a)(15)(j), 1182, 1258; 22 U.S.C. 1431-
1442, 2451-2460; Reorganization Plan No. 2 of 1977, 42 FR 62461, 3 
CFR 1977 Comp. p. 200; E.O. 12048 43 FR 13361, 3 CFR, 1978 Comp. p. 
168; USIA Delegation Order No. 85-5 (50 FR 27393).

    2. Part 514 is amended by adding a new subpart H consisting of 
Sec. 514.90 to read as follows:

Subpart H--Fees.


Sec. 514.90  Fees.

    (a) Remittances. Fees prescribed within the framework of 31 U.S.C. 
9701 shall be submitted as directed by the Agency and shall be in the 
amount prescribed by law or regulation. Remittances must be drawn on a 
bank or other institution located in the United States and be payable 
in United States currency and shall be made payable to the ``United 
States Information Agency.'' A charge of $25.00 will be imposed if a 
check in payment of a fee is not honored by the bank on which it is 
drawn. If an applicant is residing outside the United States at the 
time of application, remittance may be made by bank international money 
order of foreign draft drawn on an institution in the United States and 
payable to the United States Information Agency in United States 
currency.
    (b) Amounts of Fees. The following fees are prescribed:

Request for waiver review and recommendation--$136.
[FR Doc. 98-16653 Filed 6-25-98; 8:45 am]
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