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50683

Rules and Regulations

Federal Register
Vol. 75, No. 158
Tuesday, August 17, 2010

This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.

FEDERAL RESERVE SYSTEM
12 CFR Part 205
[Regulation E; Docket No. R–1377]

Electronic Fund Transfers
Board of Governors of the
Federal Reserve System.
ACTION: Interim final rule; request for
public comment.
AGENCY:

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I. Statutory Background

The Board is amending
Regulation E, which implements the
Electronic Fund Transfer Act, and the
official staff commentary to the
regulation, in order to implement
legislation that modifies the effective
date of certain disclosure requirements
in the gift card provisions of the Credit
Card Accountability Responsibility and
Disclosure Act of 2009.
DATES: This interim final rule is
effective August 22, 2010. Comments
must be received on or before
September 16, 2010.
ADDRESSES: You may submit comments,
identified by Docket No. R–1377, by any
of the following methods:
• Agency Web Site: http://
www.federalreserve.gov. Follow the
instructions for submitting comments at
http://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm.
• Federal eRulemaking Portal: http://
www.regulations.gov. Follow the
instructions for submitting comments.
• E-mail: regs.comments@
federalreserve.gov. Include the docket
number in the subject line of the
message.
• FAX: (202) 452–3819 or (202) 452–
3102.
• Mail: Jennifer J. Johnson, Secretary,
Board of Governors of the Federal
Reserve System, 20th Street and
Constitution Avenue, NW., Washington,
DC 20551. All public comments are
available from the Board’s Web site at
http://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm as
SUMMARY:

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submitted, unless modified for technical
reasons. Accordingly, your comments
will not be edited to remove any
identifying or contact information.
Public comments may also be viewed
electronically or in paper form in Room
MP–500 of the Board’s Martin Building
(20th and C Streets, NW) between
9 a.m. and 5 p.m. on weekdays.
FOR FURTHER INFORMATION CONTACT: Ky
Tran-Trong, Counsel, Vivian Wong or
Dana Miller, Senior Attorneys, or
Mandie Aubrey, Attorney, Division of
Consumer and Community Affairs,
Board of Governors of the Federal
Reserve System, Washington, DC 20551,
at (202) 452–2412 or (202) 452–3667.
For users of Telecommunications
Device for the Deaf (TDD) only, contact
(202) 263–4869.
SUPPLEMENTARY INFORMATION:
On May 22, 2009, the Credit Card
Accountability Responsibility and
Disclosure Act of 2009 (Credit Card Act)
was signed into law.1 Section 401 of the
Credit Card Act amended the Electronic
Fund Transfer Act, 15 U.S.C. 1693 et
seq., and imposed certain restrictions on
a person’s ability to impose dormancy,
inactivity, or service fees with respect to
gift certificates, store gift cards, and
general-use prepaid cards. In addition,
the Credit Card Act generally prohibited
the issuance or sale of such products if
they expire earlier than five years from
the date of issuance of a gift certificate
or the date on which funds were last
loaded to a store gift card or general-use
prepaid card.
Section 403 of the Credit Card Act
required that the gift card and related
provisions of the Credit Card Act
become effective 15 months after
enactment, or on August 22, 2010. See
EFTA Section 915(d)(3). The Board
published a final rule implementing the
gift card provisions of the Credit Card
Act on April 1, 2010 (final gift card
rule). 75 FR 16580. As mandated by the
Credit Card Act, the final gift card rule
has an effective date of August 22, 2010.
Congress recently passed legislation
that amends Section 403 of the Credit
Card Act to delay the effective date of
certain gift card disclosure provisions of
the Credit Card Act for certificates or
cards produced prior to April 1, 2010
1 Public

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Law 111–24, 123 Stat. 1734 (2009).

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(Gift Card Amendment).2 The Gift Card
Amendment provides a delayed
effective date with respect to these
provisions in order to permit the sale of
existing card stock through January 31,
2011. Nonetheless, the substantive fee
and expiration date protections
provided by the Credit Card Act
continue to apply to those certificates or
cards sold to a consumer on or after
August 22, 2010. The interim final rule
published today revises the April 2010
final gift card rule in order to implement
the Gift Card Amendment.
As discussed in IV. Legal Authority,
the Board is issuing this rule as an
interim final rule based on its
determination that, given the impending
August 22, 2010 effective date of the
Credit Card Act and the final gift card
rule, it would be impracticable to issue
a proposal for public comment followed
by a final rule. However, the Board
intends to consider comments on this
interim final rule for purposes of
publishing a final rule and may issue
final clarifications and amendments to
the extent appropriate.
II. Summary of Interim Final Rule
With respect to gift certificates, store
gift cards, and general-use prepaid cards
produced prior to April 1, 2010, the Gift
Card Amendment delays the effective
date of the disclosure requirements in
EFTA Sections 915(b)(3) and (c)(2)(B)
(as amended by the Credit Card Act)
until January 31, 2011, provided that
several specified conditions are met.
This interim final rule implements the
Gift Card Amendment.
While the Gift Card Amendment
delays the effective date for certain
disclosure requirements set forth in the
Credit Card Act, the Gift Card
Amendment does not address the status
of additional requirements adopted in
the Board’s final gift card rule. As a
result, persons seeking to take advantage
of the relief afforded by the Gift Card
Amendment may be unable to do so if
certain of these additional provisions
were to apply after August 22, 2010. For
example, § 205.20(e)(1) prohibits any
person from selling or issuing a
certificate or card unless the consumer
has had a reasonable opportunity to
purchase a certificate or card with at
least five years remaining until the
certificate or card expiration date. Thus,
2 Public Law 111–209, 124 Stat. 2254 (July 27,
2010).

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a card produced prior to April 1, 2010
that has a card expiration date of less
than five years could not be sold under
the final gift card rule, notwithstanding
the provisions of the Gift Card
Amendment. Therefore, in order to
carry out the intended purpose of the
Gift Card Amendment, this interim final
rule also delays the effective date of
certain of these supplemental
requirements.
This interim final rule revises
§§ 205.20(c) and (g) of the final gift card
rule (‘‘Form of Disclosures’’ and
‘‘Compliance Dates,’’ respectively) and
adds a new § 205.20(h) (‘‘Temporary
Exemption’’).

20(g) Compliance Dates

III. Section-by-Section Analysis

20(g)(2) Effective Date for Loyalty,
Award, or Promotional Gift Cards
Section 205.20(g)(2) of the final gift
card rule sets forth a special transition
rule for the disclosure requirements
applicable to loyalty, award, and
promotional gift cards. Specifically,
§ 205.20(g)(2) provides that the
disclosure requirements in
§ 205.20(a)(4)(iii) apply to any card,
code or other device provided to a
consumer in connection with a loyalty,
award, or promotional program where
the period of eligibility for the program
begins on or after August 22, 2010. The
Gift Card Amendment does not
specifically delay the effective date of
the disclosures required by
§ 205.20(a)(4)(iii), and accordingly the
effective date for loyalty, award, and
promotional cards remains unchanged
in this interim final rule.

20(c) Form of Disclosures

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20(c)(2) Format
The Gift Card Amendment requires
that certain alternative disclosures be
made to the consumer in order for an
issuer to take advantage of the delayed
effective date, through in-store signage,
messages during customer service calls,
Web sites, and general advertising.
These disclosure requirements are
implemented through § 205.20(h)(2) of
the interim final rule, discussed in more
detail below.
Section 205.20(c)(2) of the final gift
card rule generally requires disclosures
to be made in writing or electronically,
and in retainable form. The Board
believes such requirements are
unnecessary with respect to the
disclosures required by § 205.20(h)(2).
For example, it would be impracticable
to provide in-store signage under
§ 205.20(h)(2) in a retainable form.
Moreover, the alternative disclosures
required by § 205.20(h)(2) are intended
to relieve the burden of replacing noncompliant card stock with card stock
bearing disclosures that comply with
the final gift card rule, so Board believes
that the format standards in
§ 205.20(c)(2) are less appropriate in this
instance. Thus, § 205.20(c)(2) has been
revised to provide that the disclosures
required by § 205.20(h)(2) need not be
made in a retainable form. For similar
reasons, § 205.20(c)(2) is revised to
provide that the prior-to-purchase
disclosures required by § 205.20(c)(3)
need not be provided in a retainable
form. Section 205.20(c)(2) has also been
revised to make clear that the
disclosures required by § 205.20(h)(2)
may be provided orally.

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20(g)(1) Effective Date for Gift
Certificates, Store Gift Cards, and
General-Use Prepaid Cards
The final gift card rule becomes
effective August 22, 2010, consistent
with the Credit Card Act. To give effect
to the delayed effective date set forth in
the Gift Card Amendment, the interim
final rule revises § 205.20(g)(1) to state
that, except as provided in new
§ 205.20(h), § 205.20 applies to any gift
certificate, store gift card, or general-use
prepaid card sold to a consumer on or
after August 22, 2010, or provided to a
consumer as a replacement for such
certificate or card.

20(h) Temporary Exemption
20(h)(1) Delayed Effective Date
As discussed above, the Gift Card
Amendment delays the effective date of
the disclosure requirements in EFTA
Sections 915(b)(3) and (c)(2)(B) under
the Credit Card Act under certain
circumstances. Section 205.20(h)(1)
implements the delayed effective date.
Specifically, § 205.20(h)(1) provides
that, for any gift certificate, store gift
card, or general-use prepaid card
produced prior to April 1, 2010, the
effective date of the requirements of
paragraphs (c)(3), (d)(2), (e)(1), (e)(3),
and (f) of this section is January 31,
2011, provided that an issuer of such
certificate or card meets several
specified conditions.
Provisions of the Final Gift Card Rule
Subject to the Delayed Effective Date
Section 205.20(h)(1) delays the
effective dates of §§ 205.20(d)(2) and
(e)(3)(i) of the final gift card rule.
Section 205.20(d)(2), which
implemented EFTA Section

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915(b)(3)(A), prohibits the imposition of
any dormancy, inactivity, or service fee
unless, among other things, certain
specified clear and conspicuous
disclosures about the fees are made on
the certificate or card. Section
205.20(e)(3)(i), which implemented
EFTA Section 915(c)(2)(B), requires that
the expiration date for the certificate or
card’s underlying funds—or the fact that
the underlying funds do not expire—be
disclosed on the certificate or card.
These disclosure requirements are
subject to the delayed effective date
under the Gift Card Amendment for
certificates or cards produced prior to
April 1, 2010.
In addition, § 205.20(h)(1) delays the
effective dates of §§ 205.20(e)(1),
(e)(3)(ii), (e)(3)(iii), and (f). Section
205.20(e)(1) prohibits the issuance or
sale of certificates or cards, unless
policies and procedures have been
established to ensure that a consumer
will have a reasonable opportunity to
purchase a certificate or card with at
least five years remaining until the
certificate or card expiration date.
Section 205.20(e)(3)(ii) requires the
disclosure on the certificate or card of
a toll-free telephone number, and, if one
is maintained, a Web site that a
consumer may use to obtain a
replacement certificate or card after
expiration if the underlying funds may
be available. Section 205.20(e)(3)(iii)
requires certain disclosures on the
certificate or card about expiration and
replacement cards, except where a nonreloadable certificate or card bears an
expiration date that is at least seven
years from the date of manufacture.
Section 205.20(f) requires additional fee
disclosures on or with the certificate or
card, and, similar to § 205.20(e)(3)(ii),
disclosure on the certificate or card of
a toll-free telephone number, and, if one
is maintained, a Web site that a
consumer may use to obtain fee
information. As discussed in more
detail in the final gift card rule, these
provisions were adopted pursuant to the
Board’s authority under EFTA Sections
904(a) and 915(d)(2), as amended by the
Credit Card Act.
Although not mandated by the Gift
Card Amendment, the Board believes
that §§ 205.20(e)(1), (e)(3)(iii), and (f)
should also be subject to the delayed
effective date in order to carry out the
intended purpose of the Gift Card
Amendment. For example, some gift
cards produced before April 1, 2010
may bear expiration dates of less than
five years, which would not comply
with § 205.20(e)(1). If the Board did not
provide for a delayed effective date with
respect to § 205.20(e)(1), issuers would
not be permitted to sell this existing

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card stock, even if issuers otherwise
satisfied the statutory prerequisites to
qualify for relief under the Gift Card
Amendment. Such a result would
undermine the purpose of the Gift Card
Amendment.
Finally, § 205.20(h)(1) delays the
effective date of § 205.20(c)(3). Section
205.20(c)(3) requires that the disclosures
required by §§ 205.20(d)(2), (e)(3), and
(f)(1) be disclosed to the consumer prior
to purchase. As discussed in more detail
in the final gift card rule, § 205.20(c)(3)
was adopted in the final rule both
pursuant to statutory mandate (in EFTA
Section 915(c)(3)(B)) and pursuant to
the Board’s authority under EFTA
Section 904(a). For the reasons
discussed above, under § 205.20(h)(1) of
this interim final rule, any disclosures
that are required to be provided prior to
purchase under § 205.20(c)(3) are
subject to the delayed effective date,
provided that the issuer complies with
the conditions specified in
§ 205.20(h)(1).
Conditions Imposed
To take advantage of the Gift Card
Amendment’s delayed effective date, an
issuer of the certificate or card must
meet several specified conditions. First,
the issuer must comply with the other
provisions of § 205.20, including the
section’s substantive restrictions on the
imposition of fees. Second, the issuer
must not impose an expiration date with
respect to the funds underlying such a
certificate or card. Third, the issuer
must, at the consumer’s request, replace
such certificate or card if the certificate
or card has funds remaining at no cost
to the consumer. Finally, the issuer
must satisfy the disclosure requirements
of new § 205.20(h)(2), discussed in more
detail below. See §§ 205.20(h)(1)(i)–(iv).
Comment 20(h)(1)–1 explains that
certificates or cards produced prior to
April 1, 2010 may be sold to a consumer
for a limited time without satisfying the
requirements of § 205.20(c)(3), (d)(2),
(e)(1), (e)(3), and (f), provided that
issuers of such certificates or cards
comply with the additional substantive
and disclosure requirements of
§§ 205.20(h)(1)(i)–(iv). In contrast,
issuers of certificates or cards produced
prior to April 1, 2010 need not satisfy
these additional requirements if the
certificates or cards fully comply with
the April 2010 final gift card rule. Thus,
if on August 22, 2010 an issuer sells gift
cards produced prior to April 1, 2010
that do not have fees and do not expire,
and which otherwise comply with the
final gift card rule, that issuer would not
then be required to make the in-store
signage and other disclosures required
by § 205.20(h)(2) with respect to those

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gift cards because those cards satisfy the
requirements of the final gift card rule.
Comment 20(h)(1)–2 clarifies when
the temporary relief afforded by the Gift
Card Amendment expires. This
comment explains that certificates or
cards produced prior to April 1, 2010
that do not fully comply with the final
gift card rule may not be issued or sold
to consumers on or after January 31,
2011.
20(h)(2) Additional Disclosures
In order for an issuer to take
advantage of the delayed effective date,
the Gift Card Amendment requires that
certain alternative disclosures be made
to the consumer. Section 205.20(h)(2) of
the interim final rule implements these
disclosure requirements, largely
tracking the language of the statute.
Specifically, § 205.20(h)(2) provides that
issuers relying on the delayed effective
date in § 205.20(h)(1) must disclose
through in-store signage, messages
during customer service calls, Web sites,
and general advertising, that: (i) The
underlying funds of such certificate or
card do not expire; (ii) consumers
holding such certificate or card have a
right to a free replacement certificate or
card, accompanied by the packaging and
materials typically associated with such
certificate or card; and (iii) any
dormancy, inactivity, or service fee for
such certificate or card that might
otherwise be charged will not be
charged if such fees do not comply with
Section 915 of the Electronic Fund
Transfer Act.
In some cases, issuers may not have
direct control over in-store signage and
store advertisements. Accordingly,
comment 20(h)(2)–1 explains that
issuers may make the disclosures
required by § 205.20(h)(2) through a
third party, such as a retailer or
merchant. For example, an issuer may
have a merchant install in-store signage
with the disclosures required by
§ 205.20(h)(2) on the issuer’s behalf.
20(h)(3) Expiration of Disclosure
Requirements
The Gift Card Amendment requires
the disclosures implemented in
§ 205.20(h)(2) to be maintained until
January 31, 2013. The Board believes
that such a requirement is appropriate
with respect to Web sites that a
certificate or card recipient may visit
and phone numbers that a recipient may
call for more information. For example,
a gift card recipient may call a customer
service phone number printed on the
card to obtain more information about
the card’s fees or terms of expiration.
See § 205.20(h)(3)(ii).

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However, certificates or cards sold on
or after January 31, 2011 must comply
with §§ 205.20(a)–(f) of the final gift
card rule. Because consumers would
only be able to purchase cards that are
fully compliant with the Credit Card Act
from that date forward, consumers
purchasing certificates or cards might
mistakenly believe that the disclosures
on the signage are applicable to their
certificates or cards. Thus, the Board
believes that requiring issuers to
maintain advertisements or in-store
signage on or after January 31, 2011
which reference certificates or cards that
are no longer permitted to be issued or
sold, could be confusing and even
misleading to consumers.
For this reason, the Board is
exercising its exception authority in
EFTA Section 904(c) to provide that,
with respect to in-store signage and
general advertising, the disclosure
requirements of § 205.20(h)(2) are not
required to be provided on or after
January 31, 2011. See § 205.20(h)(3)(i).
Section 904(c) of the EFTA provides
that regulations prescribed by the Board
may contain any classifications,
differentiations, or other provisions, and
may provide for such adjustments or
exceptions for any class of electronic
fund transfers that in the judgment of
the Board are necessary or proper to
effectuate the purposes of the title, to
prevent circumvention or evasion, or to
facilitate compliance.
IV. Legal Authority
General Rulemaking Authority
Section 401(d)(1) of the Credit Card
Act directs the Board to prescribe rules
to carry out the gift card requirements
of the Credit Card Act. The Board is
exercising its authority under Section
401(d)(1) to implement the provisions of
the Credit Card Act as superseded by
the Gift Card Amendment with respect
to the delayed effective date of the
requirements in §§ 205.20(d)(2) and
(e)(1)(i), and part of § 205.20(c)(3).
In addition, Section 401(d)(2) of the
Credit Card Act requires the Board to
determine the extent to which the
individual definitions and provisions of
the EFTA and Regulation E should
apply to gift certificates, store gift cards,
and general-use prepaid cards. See
EFTA Section 915(d)(2); 15 U.S.C.
1693m(d)(2). Further, Section 904(a) of
the EFTA authorizes the Board to
prescribe regulations necessary to carry
out the purposes of the title. The
express purposes of the EFTA are to
establish ‘‘the rights, liabilities, and
responsibilities of participants in
electronic fund transfer systems’’ and to
provide ‘‘individual consumer rights.’’

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See EFTA Section 902(b); 15 U.S.C.
1693. The Board is exercising its
authority under EFTA Sections 904(a)
and 915(d)(2) for the reasons discussed
above to provide for the delayed
effective date of the disclosure
requirements of §§ 205.20(e)(1),
205.20(e)(3)(ii)-(iii), and 205.20(f), and
part of § 205.20(c)(3).
Finally, as discussed above, the Board
is exercising its authority under EFTA
Section 904(c) to implement
§ 205.20(h)(3)(i), which clarifies that,
with respect to in-store signage and
general advertising, the disclosures
required by § 205.20(h)(2) are not
required to be provided on or after
January 31, 2011.
Authority To Issue Interim Final Rule
Without Notice and Comment
The Administrative Procedure Act
(5 U.S.C. 551 et seq.) (APA) generally
requires public notice before
promulgation of regulations. See 5
U.S.C. 553(b). Unless notice or hearing
is required by statute, however, the APA
provides an exception ‘‘when the agency
for good cause finds (and incorporates
the finding and a brief statement of
reasons therefor in the rules issued) that
notice and public procedure thereon are
impracticable, unnecessary, or contrary
to the public interest.’’ 5 U.S.C.
553(b)(3)(B). The Board finds that, with
respect to this rulemaking, there is good
cause to conclude that providing notice
and an opportunity to comment within
the timeframe mandated by Congress is
impracticable.
The gift card provisions of the Credit
Card Act are effective August 22, 2010,
and the Gift Card Amendment delays
this effective date only with respect to
certain specified disclosure provisions.
The time period remaining before
August 22, 2010 does not provide
sufficient time for the Board to prepare
proposed regulations and publish them
in the Federal Register; provide a
reasonable period for interested parties
to review the proposal and prepare
comments; analyze the comments
submitted; and prepare the final
regulations and publish them in the
Federal Register. Even if the Board were
able to technically comply with the
notice-and-comment process required
by § 553 within the allotted time, such
a process would not comply with the
purpose of the APA because interested
parties would not have sufficient time to
prepare well-researched comments and
the Board would not have time to
conduct a meaningful review and
analysis of those comments.
Furthermore, a notice-and-comment
process would leave no time between
the issuance of final regulations and

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August 22, 2010 for affected parties to
adjust their procedures in order to
comply. In contrast, the adoption of an
interim final rule enables the Board to
provide guidance in advance of the
effective date and provides affected
parties with more time to comply with
the statutory provisions.
Authority To Issue an Interim Final Rule
With an Effective Date of August 22,
2010
Because the gift card provisions of the
Credit Card Act, and the rule
promulgated thereunder, are effective
on August 22, 2010, the Board’s interim
final rule implementing those
provisions is also effective on that date.
The APA generally requires that rules be
published not less than 30 days before
their effective date. See 5 U.S.C. 553(d).
As with the notice requirement,
however, the APA provides an
exception when ‘‘otherwise provided by
the agency for good cause found and
published with the rule.’’ Id. § 553(d)(3).
Notwithstanding the time saved by
issuing an interim final rule without
advance notice and the similarity of the
new statutory provisions to regulations
previously issued by the Board, the
effective date is less than 30 days away,
and thus it would not be possible to
issue final regulations 30 days before
the August 22, 2010 effective date.
Accordingly, the Board finds that good
cause exists to publish the interim final
rule less than 30 days before the
effective date.
Similarly, although 12 U.S.C.
4802(b)(1) generally requires that new
regulations and amendments to existing
regulations imposing additional
reporting, disclosure or other
requirements on insured depository
institutions take effect on the first day
of the calendar quarter which begins on
or after the date on which the
regulations are published in final form,
the Board has determined that—for the
reasons discussed above—there is good
cause for making the interim final rule
effective on August 22, 2010. See 12
U.S.C. 4802(b)(1)(A) (providing an
exception to the general requirement
when ‘‘the agency determines, for good
cause published with the regulation,
that the regulations should become
effective before such time’’). The Board
also believes that providing the affected
parties with guidance regarding
compliance with the Gift Card
Amendment as soon as possible is
consistent with 12 U.S.C. 4802(b)(1)(C),
which provides an exception to the
general requirement when ‘‘the
regulation is required to take effect on
a date other than the date determined
under [12 U.S.C. 4802(b)(1)] pursuant to

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any other Act of Congress.’’ The
remaining provisions of the rule are
effective on August 22, 2010.
V. Regulatory Flexibility Analysis
The Regulatory Flexibility Act (5
U.S.C. 601 et seq.) requires an initial
and final regulatory flexibility analysis
only when 5 U.S.C. 553 requires
publication of a notice of proposed
rulemaking. See 5 U.S.C. 603(a), 604(a).
As discussed in IV. Legal Authority,
however, the Board has found good
cause under 5 U.S.C. 553(b)(3)(B) to
conclude that, with respect to this
interim final rule, publication of a
notice of proposed rulemaking is
impracticable. Accordingly, the Board is
not required to perform an initial or
final regulatory flexibility analysis.
Nonetheless, in order to solicit
additional information from small
entities subject to the interim final rule,
the Board is publishing an interim final
regulatory flexibility analysis. Based on
its analysis and for the reasons stated
below, the Board believes that the
interim final rule is not likely to have
a significant economic impact on a
substantial number of small entities.
1. Statement of the need for, and
objectives of, the final rule. This interim
final rule implements the Gift Card
Amendment by delaying the effective
date of certain disclosures required by
the Credit Card Act. This interim final
rule also carries out the intended
purpose of the Gift Card Amendment by
delaying the effective date of certain
supplemental requirements adopted the
final gift card rule. The Board believes
that these revisions to Regulation E are
within Congress’s broad grant of
authority to the Board to adopt
provisions that carry out the purposes of
the Credit Card Act and to facilitate
compliance with the EFTA. These
revisions facilitate compliance with the
EFTA by permitting gift certificates,
store gift cards, and general-purpose
prepaid cards produced prior to April 1,
2010 to be sold through January 31,
2011, even if they do not state the
disclosures required under the final gift
card rule, so long as consumers
continue to receive specified
substantive protections with respect to
certificate or card fees and expiration
dates.
2. Small entities affected by the
interim final rule. The number of small
entities affected by this interim final
rule is unknown, as discussed in more
detail in the Regulatory Flexibility
Analysis in the final gift card rule. 75
FR 16610 (Apr. 1, 2010). The delayed
effective date of certain disclosures on
certificates and cards will reduce the
burden and compliance costs for small

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Federal Register / Vol. 75, No. 158 / Tuesday, August 17, 2010 / Rules and Regulations

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institutions by providing relief from the
requirement to remove and destroy noncompliant certificates and cards and to
replace them with compliant certificates
or cards, so long as consumers are
provided substantive rights under the
rule and so long as alternative specified
disclosures are made.
3. Reporting, recordkeeping, and
compliance requirements. The
compliance requirements of this interim
final rule are described above in Part III.
Section-by-Section Analysis.
4. Steps taken to minimize economic
impact on small entities. As previously
noted, the interim final rule implements
the statutory mandate to delay the
effective date of certain gift card
provisions of the Credit Card Act. The
interim final rule also delays the
effective date of certain additional
requirements finalized in the April 2010
final gift card rule. As such, the interim
final rule minimizes the economic
impact of the final gift card rule on
small entities.
5. Other Federal rules. The Board has
not identified any Federal rules that
duplicate, overlap, or conflict with the
interim final revisions to Regulation E.
VI. Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act (PRA) of 1995 (44 U.S.C.
3506; 5 CFR 1320 Appendix A.1), the
Board reviewed the interim final rule
under the authority delegated to the
Board by the Office of Management and
Budget (OMB). The collection of
information that is subject to the PRA by
this interim final rule is found in 12
CFR part 205. The Federal Reserve may
not conduct or sponsor, and an
organization is not required to respond
to, this information collection unless the
information collection displays a
currently valid OMB control number.
The OMB control number is 7100–0200.
This information collection is
required to provide benefits for
consumers and is mandatory. See 15
U.S.C. 1693 et seq. Since the Board does
not collect any information, no issue of
confidentiality arises. The respondents/
recordkeepers are for-profit financial
institutions, including small businesses.
Institutions are required to retain
records for 24 months, but this
regulation does not specify types of
records that must be retained.
The Gift Card Amendment amends
Section 403 of the Credit Card Act to
delay the effective date of certain gift
card disclosure provisions of the Credit
Card Act for certificates or cards
produced prior to April 1, 2010. The
Gift Card Amendment provides an
extended effective date with respect to
these provisions in order to permit the

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sale of existing card stock until January
31, 2011. The interim final rule
published today revises the April 2010
final gift card rule in order to implement
the Gift Card Amendment.
While the interim final rule delays the
implementation of several disclosure
requirements (§§ 205.20(c)(3), (d)(2),
(e)(1), and (e)(3)), and temporarily
implements several other requirements
(§§ 205.20(h)), it does not change the
overall burden associated with
Regulation E. The Federal Reserve
believes that the original burden
estimates are more than sufficient to
cover the temporary requirements. The
estimates and total burden (738,600
hours) therefore will remain unchanged
as published in the final rule. The
Federal Reserve continues to expect that
the amount of time required to
implement each of the proposed
changes for a given institution may vary
based on the size and complexity of the
respondent.
The other Federal financial agencies
are responsible for estimating and
reporting to OMB the total paperwork
burden for the institutions for which
they have administrative enforcement
authority. They may, but are not
required to, use the Federal Reserve’s
burden estimation methodology. Using
the Federal Reserve’s method, the total
annual burden for the respondents
regulated by the Federal financial
agencies is estimated to be 4,430,659
hours. This estimate also remains
unchanged.
The Federal Reserve has a continuing
interest in the public’s opinions of our
collections of information. At any time,
comments regarding the burden
estimate, or any other aspect of this
collection of information, including
suggestions for reducing the burden,
may be sent to: Secretary, Board of
Governors of the Federal Reserve
System, Washington, DC 20551; and to
the Office of Management and Budget,
Paperwork Reduction Project (7100–
0200), Washington, DC 20503.
List of Subjects in 12 CFR Part 205
Consumer protection, Electronic fund
transfers, Federal Reserve System,
Reporting and recordkeeping
requirements.
■ For the reasons set forth in the
preamble, the Board amends 12 CFR
part 205 and the Official Staff
Commentary, as follows:
PART 205—ELECTRONIC FUND
TRANSFERS (REGULATION E)
1. The authority citation for part 205
continues to read as follows:

■

Authority: 15 U.S.C. 1693b.

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50687

2. Section 205.20 is amended as
follows:
■ A. Paragraph (c)(2) is revised.
■ B. Paragraph (g)(1) is revised.
■ C. New paragraph (h) is added.
■

§ 205.20 Requirements for gift cards and
gift certificates.

*

*
*
*
*
(c) * * *
(2) Format. Disclosures made under
this section generally must be provided
to the consumer in written or electronic
form. Except for the disclosures in
paragraphs (c)(3) and (h)(2), written and
electronic disclosures made under this
section must be in a retainable form.
Only disclosures provided under
paragraphs (c)(3) and (h)(2) of this
section may be given orally.
*
*
*
*
*
(g) * * *
(1) Effective date for gift certificates,
store gift cards, and general-use prepaid
cards. Except as provided in paragraph
(h), the requirements of this section
apply to any gift certificate, store gift
card, or general-use prepaid card sold to
a consumer on or after August 22, 2010,
or provided to a consumer as a
replacement for such certificate or card.
*
*
*
*
*
(h) Temporary exemption—(1)
Delayed effective date. For any gift
certificate, store gift card, or general-use
prepaid card produced prior to April 1,
2010, the effective date of the
requirements of paragraphs (c)(3), (d)(2),
(e)(1), (e)(3), and (f) of this section is
January 31, 2011, provided that an
issuer of such certificate or card:
(i) Complies with all other provisions
of this section;
(ii) Does not impose an expiration
date with respect to the funds
underlying such certificate or card;
(iii) At the consumer’s request,
replaces such certificate or card if it has
funds remaining at no cost to the
consumer; and
(iv) Satisfies the requirements of
paragraph (h)(2) of this section.
(2) Additional disclosures. Issuers
relying on the delayed effective date in
§ 205.20(h)(1) must disclose through instore signage, messages during customer
service calls, Web sites, and general
advertising, that:
(i) The underlying funds of such
certificate or card do not expire;
(ii) Consumers holding such
certificate or card have a right to a free
replacement certificate or card,
accompanied by the packaging and
materials typically associated with such
certificate or card; and
(iii) Any dormancy, inactivity, or
service fee for such certificate or card
that might otherwise be charged will not

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Federal Register / Vol. 75, No. 158 / Tuesday, August 17, 2010 / Rules and Regulations

be charged if such fees do not comply
with Section 915 of the Electronic Fund
Transfer Act.
(3) Expiration of additional disclosure
requirements. The disclosures in
paragraph (h)(2) of this section:
(i) Are not required to be provided on
or after January 31, 2011, with respect
to in-store signage and general
advertising.
(ii) Are not required to be provided on
or after January 31, 2013, with respect
to messages during customer service
calls and Web sites.
■ 3. In Supplement I to part 205, under
Section 205.20, new paragraph 20(h) is
added to read as follows:

merchant. For example, an issuer may
have a merchant install in-store signage
with the disclosures required by
§ 205.20(h)(2) on the issuer’s behalf.
2. General advertising disclosures.
Section 205.20(h)(2) does not impose an
obligation on the issuer to advertise gift
cards.
*
*
*
*
*

Supplement I to Part 205—Official Staff
Interpretations

DEPARTMENT OF TRANSPORTATION

*

Federal Aviation Administration

*

*

*

*

Section 205.20—Requirements for Gift
Cards and Gift Certificates
*

*

*

*

*

20(h) Temporary Exemption

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1. Application to certificates or cards
produced prior to April 1, 2010.
Certificates or cards produced prior to
April 1, 2010 may be sold to a consumer
on or after August 22, 2010 without
satisfying the requirements of
§ 205.20(c)(3), (d)(2), (e)(1), (e)(3), and (f)
through January 30, 2011, provided that
issuers of such certificates or cards
comply with the additional substantive
and disclosure requirements of
§§ 205.20(h)(1)(i) through (iv). In
contrast, issuers of certificates or cards
produced prior to April 1, 2010 need
not satisfy these additional
requirements if the certificates or cards
fully comply with the rule (§§ 205.20(a)
through (f)). For example, for gift cards
produced prior to April 1, 2010 that do
not have fees and do not expire, and
which otherwise comply with the rule,
the in-store signage and other
disclosures required by § 205.20(h)(2)
are not required with respect to those
gift cards because those cards satisfy the
requirements of the rule.
2. Expiration of temporary exemption.
Certificates or cards produced prior to
April 1, 2010 that do not fully comply
with §§ 205.20(a) through (f) may not be
issued or sold to consumers on or after
January 31, 2011.

1. Disclosures through third parties.
Issuers may make the disclosures
required by § 205.20(h)(2) through a
third party, such as a retailer or

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[FR Doc. 2010–20154 Filed 8–16–10; 8:45 am]
BILLING CODE 6210–01–P

14 CFR Parts 21 and 29
[Docket No. SW014; Special Conditions No.
29–014–SC]

Special Conditions: Erickson Air-Crane
Incorporated S–64E and S–64F
Rotorcraft

Paragraph 20(h)(1)—Delayed Effective
Date

Paragraph 20(h)(2)—Additional
Disclosures

By order of the Board of Governors of the
Federal Reserve System, August 11, 2010.
Jennifer J. Johnson,
Secretary of the Board.

Federal Aviation
Administration (FAA), DOT.
ACTION: Final special conditions.
AGENCY:

These special conditions are
issued for the Erickson Air-Crane
Incorporated (Erickson Air-Crane)
model S–64E and S–64F rotorcraft.
These rotorcraft have novel or unusual
design features associated with being
transport category rotorcraft designed
only for use in heavy external-load
operations. At the time of original type
certification, a special condition was
issued for each model helicopter
because the applicable airworthiness
regulations did not contain adequate or
appropriate safety standards for turbineengine rotorcraft or for rotorcraft with a
maximum gross weight over 20,000
pounds that were designed solely to
perform external load-operations. At the
request of Erickson Air-Crane, the
current type certificate (TC) holder for
these helicopter models, the following
will resolve reported difficulty in
applying the existing special conditions
and eliminate any confusion that has
occurred in Erickson’s dealings with a
foreign authority. Specifically, we are
consolidating the separate special
conditions for each model helicopter
into one special condition to clarify and
more specifically reference certain
special condition requirements to the
regulatory requirements, to add an
inadvertently omitted fire protection
requirement, to recognize that
occupants may be permitted in the two

SUMMARY:

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observer seats and the rear-facing
operator seat during other than externalload operations, and to clarify the
requirements relating to operations
within 5 minutes of a suitable landing
area. The applicable airworthiness
regulations do not contain adequate or
appropriate safety standards for this
design feature. These special conditions
contain the additional safety standards
that the Administrator considers
necessary to establish a level of safety
equivalent to that established by the
existing airworthiness standards.
DATES: Effective Date: September 16,
2010.
FOR FURTHER INFORMATION CONTACT:
Stephen Barbini, FAA, Rotorcraft
Directorate, Regulations and Policy
Group (ASW–111), Fort Worth, Texas
76193–0110, telephone (817) 222–5196,
facsimile (817) 222–5961.
SUPPLEMENTARY INFORMATION:
Background
On November 27, 1967, Sikorsky
Aircraft Corporation (Sikorsky) filed an
application for type certification for its
Model S–64E helicopter. This rotorcraft
is the civil version of the United States
Army Model CH–54A flying crane. The
S–64E has a maximum weight of
approximately 30,000 pounds when
flying only with internal fuel loadings
and personnel, and without external
loads. It has a maximum weight of
42,000 pounds, of which a maximum of
20,000 pounds may be external loads.
Type certificate H6EA that included
special condition No. 29–6–EA–2 was
issued on August 21, 1969. This special
condition includes conditions for type
certification for carrying Class B
external loads.
On April 2, 1969, Sikorsky filed for an
amendment to its type certificate to add
the Model S–64F. This aircraft is the
civil version of the United States Army
Model CH–54B flying crane. The S–64F
has a maximum weight of
approximately 30,000 pounds when
flying only with internal fuel loadings
and personnel, and without external
loads. It has a maximum weight of
47,000 pounds, of which a maximum of
25,000 pounds may be external loads.
Type certificate H6EA was amended on
November 25, 1970, to add the F model,
including special condition No. 29–16–
EA–5 and Amendment No. 1 to that
special condition. This Model S–64F
special condition includes requirements
for type certification for carrying Class
A and B external loads.
The 14 CFR part 29 regulations
applicable at the time of certification
required the models S–64E and S–64F
to comply with Category A regulations.

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