[Federal Register Volume 61, Number 131 (Monday, July 8, 1996)]
[Rules and Regulations]
[Pages 35597-35598]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17156]



Immigration and Naturalization Service

8 CFR Part 103

[INS No. 1692-95]
RIN 1115-AD92

Fees Assessed for Defaulted Payments

AGENCY: Immigration and Naturalization Service, Justice.

ACTION: Final rule.


SUMMARY: This rule amends the Immigration and Naturalization Service 
(Service) regulations to increase the fee imposed from $5.00 to $30.00 
when a check submitted to the Service in payment of a fee is not 
honored by the bank upon which it is drawn. The purpose of this change 
is to enable the Service to recoup the administrative costs incurred in 
processing all returned checks and other defaulted payments. This 
action will result in the Service no longer losing money as a result of 
bad check activity.

EFFECTIVE DATE: August 7, 1996.

Allen H. Sinsheimer, Systems Accountant, Debt Collection and Cash 
Management Branch, Office of Financial Management, Immigration and 
Naturalization Service, 425 I Street, NW., Room 6034, Washington, DC 
20536, telephone (202) 616-7715.



    Changes in the current regulation are needed to make the bad check 
charge consistent with the actual costs incurred by the Service in 
processing returned checks and other defaulted payments. The current 
bad check charge is $5.00.
    The Service has studied the costs incurred by several 
Administrative Centers attributable to the return of a bad check from a 
financial institution. The Administrative Center, Dallas and the 
Administrative Center, Twin Cities were asked to identify each action 
that must be undertaken and quantify the time and costs involved in 
processing a bad check. Meaningful and reliable accumulations of the 
time and expense involved in the average costs of processing each bad 
check have been gathered by these centers since they process a 
substantial number of financial transactions each year. For example, 
three employees at the Administrative Center, Dallas each spend 38 
hours each month processing bad checks. Over 900 bad checks are 
processed each year at the Administrative Center, Dallas. Data from

[[Page 35598]]

the processing of over 1,800 bad checks were provided by the 
Administrative Centers.
    As a result of our study, we have determined that the average cost 
to the Service to process each bad check received is $30.11. We have 
rounded off the cost to $30.00.
    The Service notes that the United States Customs Service has 
recently completed a review of the costs incurred in processing bad 
checks and has also concluded that a $30.00 fee for bad checks is 
appropriate compensation for the costs it incurs in processing bad 
    On September 28, 1995, at 60 FR 50145, the Immigration and 
Naturalization Service published a proposed rule with request for 
comments in the Federal Register, to allow the Service to recoup the 
administrative costs incurred in processing all returned checks and 
other defaulted payments. Written comments were requested by November 
27, 1995. The Service did not receive any comments to the proposed rule 
and is amending Section 103.7(a) to make the bad check charge 
consistent with the actual costs incurred by the Service in processing 
returned checks and other defaulted payments. Accordingly, the bad 
check charge is being increased from ``$5.00'' to ``$30.00.''

Regulatory Flexibility Act and Executive Order 12866

    Pursuant to the provisions of the Regulatory Flexibility Act (5 
U.S.C. 601, et seq.), and for the reasons stated in the preamble, it is 
certified that the rule would not have a significant impact on a 
substantial number of small entities. Accordingly, this rule is not 
subject to the regulatory analysis or other requirements of 5 U.S.C. 
603 and 604. This rule will not result in a ``significant regulatory 
action'' under Executive Order 12866.

Executive Order 12612

    The regulations adopted herein 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 Executive Order 12612, it is determined that this rule 
does not have sufficient federalism implication to warrant the 
preparation of a Federal Assessment.

List of Subjects in 8 CFR Part 103

    Administrative practice and procedure, Authority delegations 
(Government agencies), Freedom of information, Privacy, Reporting and 
recordkeeping requirements, Surety bonds.

    Accordingly, part 103 of chapter I of title 8 of the Code of 
Federal Regulations is amended as follows:


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

    Authority: 5 U.S.C. 552, 552(a); 8 U.S.C. 1101, 1103, 1201, 1252 
note, 1252(b), 1304, 1356; 31 U.S.C. 9701; E.0. 12356, 47 FR 14874, 
15557;3 CFR, 1982 Comp., p. 166; 8 CFR part 2.

    2. Section 103.7 is amended by:
    a. Redesignating the text of paragraph (a) following the heading as 
paragraph (a)(1);
    b. Removing in the sixth sentence of newly designated paragraph 
(a)(1) the term ``$5'' and adding in its place the term ``$30.00''; and
    c. Removing the seventh sentence of newly designated paragraph 
(a)(1); and
    d. Adding a new paragraph (a)(2), to read as follows:

Sec. 103.7  Fees.

    (a) * * * (1) * * *
    (2) A charge of $30.00 will be imposed if a check in payment of a 
fee, fine, penalty, and/or any other matter is not honored by the bank 
or financial institution on which it is drawn. A receipt issued by a 
Service officer for any such remittance shall not be binding upon the 
Service if the remittance is found uncollectible. Furthermore, credit 
for meeting legal and statutory deadlines will not be deemed to have 
been met if payment is not made within 10 business days after 
notification by the Service of the dishonored check.
* * * * *
    Dated: April 30, 1996.
Doris Meissner,
Commissioner, Immigration and Naturalization Service.
[FR Doc. 96-17156 Filed 7-5-96; 8:45 am]