The cost of replacing the seals would be somewhere in the neighborhood of the cost of replacing the rack with a remanufactured assembly. But, I am reluctant to believe that the seals are leaking. I would get a second opinion.
How is the fluid level in the power steering reservoir? Have you had to add any fluid? Have the hoses been checked, especially the return hose? Even though the return hose isn't under much pressure, it is only held by circular clamps. They are more prone to leaking. A fitting on the high pressure side could be loose and drip fluid on the rack making it look like a leak.
Where are your state inspections done? at a state run inspection station or at garages that also do repairs? If the latter, then definitely go somewhere else. If the second opinion does not confirm a leaking rack, then report the inspection station to your state officials.
In some states, garages that do inspections are not allowed to do any repairs uncovered due to an inspection nor are they allowed to recommend another shop as this would be a conflict of interest. If this shop is pressuring you to have the repair done there or at another shop they recommend, then report them.