III. Fee Adjustments

The fee adjustments, as adopted in this rule, are shown as follows:

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Regulatory Flexibility Act

The Attorney General, in accordance with the Regulatory Flexibility Act (5 U.S.C. 605(b)), has reviewed this regulation and, by approving it, certifies that this rule will not have a significant economic impact on a substantial number of small entities. The Service does acknowledge that a number of small entities, particularly those filing business-related applications and petitions such as the Form I-129, Petition for Nonimmigrant Worker, may be affected by this rule. For FY 1998, the Service projects that approximately 254,000 Forms I-129 will be filed. However, this volume represents petitions filed by a variety of businesses, ranging from large multi-national corporations to small domestic businesses. The Service does not have statistics on the number of small businesses that may be affected by this rule. The Service tracks the number of petitions filed; these volume statistics do not indicate the types of businesses that file petitions, or the size of the businesses filing the Form I-129.

The Service conducted an exhaustive review of the costs incurred for processing the various immigration adjudication and naturalization applications and petitions. The Service believes that, as a result of this study, these fees reflect, as closely as possible, the full cost of providing the specific service provided through the filing of an application or petition. The Service conducted its review and adjusted its fees in accordance with statutory mandates and Federal cost accounting standards. These statu tes and standards require the Service to recover the full cost of providing services that confer a benefit that does not accrue to the public at large. While some of the increases are notable, it is important to note that the immigration adjudication and naturalization fees have not been increased since July 1994; during the same period the Service had experienced a significant increase in its costs.

Unfunded Mandates Reform Act of 1995

This rule will not result in the expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more in any 1 year, and it will not significantly or uniquely affect small governments. Therefore, no actions were deemed necessary under the provisions of the Unfunded Mandates Reform Act of 1995. This rule will only affect persons who file applications or petitions for immigration benefits. The increase in fees is necessary to defray the higher costs of adjud icating and granting the benefits sought. No further actions are necessary under the provisions of the Unfunded Mandates Reform Act of 1995.

Small Business Regulatory Enforcement Fairness Act of 1996

This rule is a major rule as defined by the Small Business Regulatory Enforcement Act of 1996. Based on the data included in the proposed rule, this rule will result in an annual effect on the economy of $231 million, in order to generate the revenue necessary to fund the increased expenses of processing the Service's adjudication and naturalization applications and petitions. The increased fees will be paid by persons who file applications or petitions to obtain immigration benefits. Copies of the cost ana lysis are available upon written request to the individuals listed in the section of this document entitled FOR FURTHER INFORMATION CONTACT .

The $230,993,000 projected increase in revenues probably overstates the actual receipt of applications and petitions because it is likely that there will be fewer applications and petitions filed because of the implementation of the higher fees. The decrease in volume due to the higher fees has a real economic effect in that there will be fewer people applying for and receiving services paid for by the Service's user fees.

Executive Order 12866

This rule is considered by the Department of Justice to be an economically "significant regulatory action" under section 3(f) of Executive Order 12866, Regulatory Planning and Review, because it will have an annual effect on the economy of $231 million. This increase in revenue will be used to fund the processing of immigration adjudication and naturalization applications and petitions. The revenue increase is based on the Service's costs and workload volumes that were available at the time of the fee study . The volume of applications and petitions

filed is projected based on a regression analysis of a 5-year history of actual applications and petitions received by the Service. The regression analysis is adjusted for any anticipated or actual changes in laws, policies, or procedures that may affect future filing patterns. The proposed fees will be paid by an estimated 4.3 million individuals and businesses filing immigration adjudication and naturalization applications and petitions. Accordingly, this regulation has been submitted to the Office of Man agement and Budget (OMB) for review.

The $230,993,000 projected increase in revenues probably overstates the actual receipt of applications and petitions because it is likely that there will be fewer applications and petitions filed because of the implementation of the higher fees. The decrease in volume due to the higher fees has a real economic effect in that there will be fewer people applying for and receiving services paid for by the Service's user fees.

Executive Order 12612

The regulation 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 implications to warrant the preparation of a Federalism Assessment.

Executive Order 12988

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

Paperwork Reduction Act

This rule does not impose any new reporting or recordkeeping requirements. The information collection requirements contained in this rule were previously approved for use by OMB. The OMB control numbers for these collections are contained in 8 CFR 299.5, Display of control numbers.