66644 Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Rules and Regulations 

1Public Law 111–24, 123 Stat. 1734 (2009). 

there is no limit to the volume that may 

be shipped, market forces of supply and 

demand and the extent to which any 

maritime shipments are in addition to— 

rather than in place of—shipments by 

truck will determine the size of any 

market effects of the rule. These actions 

will allow additional options for 

shipping Hass avocados from Mexico to 

the United States and allow Mexican 

exporters to ship full container or truck 

loads from multiple packinghouses 

while continuing to provide an 

appropriate level of protection against 

the introduction of plant pests. 

U.S. producers of avocado are 

predominantly small entities. Other 

small entities that theoretically could be 

affected by the rule include fresh 

avocado importers, brokers, truck 

drivers, and maritime shippers. The 

price and supply impacts that this rule 

may have on U.S. entities are not 

known. 

Executive Order 12988 

This final rule allows Hass avocados 

to be imported into the United States 

from Mexico in bulk consignments and 

in consignments from multiple 

packinghouses when phytosanitary 

safeguarding is maintained from the 

packinghouse to the first port of entry in 

the United States. State and local laws 

and regulations regarding Hass avocados 

imported under this rule will be 

preempted while the fruit is in foreign 

commerce. Fresh avocados are generally 

imported for immediate distribution and 

sale to the consuming public, and 

remain in foreign commerce until sold 

to the ultimate consumer. The question 

of when foreign commerce ceases in 

other cases must be addressed on a caseby-case basis. No retroactive effect will 

be given to this rule, and this rule will 

not require administrative proceedings 

before parties may file suit in court 

challenging this rule. 

Paperwork Reduction Act 

This final rule contains no new 

information collection or recordkeeping 

requirements under the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501 

et seq.). 

List of Subjects in 7 CFR Part 319 

Coffee, Cotton, Fruits, Imports, Logs, 

Nursery stock, Plant diseases and pests, 

Quarantine, Reporting and 

recordkeeping requirements, Rice, 

Vegetables. 

■ Accordingly, we are amending 7 CFR 

part 319 as follows: 

PART 319—FOREIGN QUARANTINE 

NOTICES 

■ 1. The authority citation for part 319 

continues to read as follows: 

Authority: 7 U.S.C. 450, 7701–7772, and 

7781–7786; 21 U.S.C. 136 and 136a; 7 CFR 

2.22, 2.80, and 371.3. 

■ 2. Section 319.56–30 is amended as 

follows: 

■ a. In paragraph (c)(3)(v), by removing 

the words ‘‘shipping boxes’’ and adding 

the words ‘‘containers in which they 

will be shipped’’ in their place. 

■ b. In paragraph (c)(3)(vi), by removing 

the words ‘‘in boxes’’ and adding the 

words ‘‘for shipping’’ in their place. 

■ c. By revising paragraphs (c)(3)(vii) 

and (c)(3)(viii) to read as set forth below. 

■ d. By removing paragraphs (f) and (g) 

and redesignating paragraphs (h) and (i) 

as paragraphs (f) and (g), respectively. 

■ e. In newly redesignated paragraph 

(g), by adding the words ‘‘, crates, or 

bulk shipping bins’’ after the words 

‘‘original shipping boxes’’ and by 

removing the words ‘‘new boxes’’ and 

adding the words ‘‘new packaging’’ in 

their place. 

§ 319.56–30 Hass avocados from 

Michoacan, Mexico. 

* * * * * 

(c) * * * 

(3) * * * 

(vii) The avocados must be packed in 

clean, new boxes or bulk shipping bins, 

or in clean plastic reusable crates. The 

boxes, bins, or crates must be clearly 

marked with the identity of the grower, 

packinghouse, and exporter, and with 

the statement ‘‘Not for importation or 

distribution in Puerto Rico or U.S. 

Territories.’’ The boxes, bins, or crates 

must be covered with a lid, insect-proof 

mesh, or other material to protect the 

avocados from fruit-fly infestation prior 

to leaving the packinghouse. Those 

safeguards must be intact at the time the 

consignment arrives in the United 

States. 

(viii) The packed avocados must be 

placed in a refrigerated truck or 

refrigerated container and remain in that 

truck or container while in transit 

through Mexico to the port of export for 

consignments shipped by air or sea or 

the port of first arrival in the United 

States for consignments shipped by 

land. Prior to leaving the packinghouse, 

the truck or container must be secured 

by the Mexican NPPO with a seal that 

will be broken when the truck or 

container is opened. The seal may be 

broken and a new seal applied by the 

Mexican NPPO if the truck or container 

stops at another approved packinghouse 

for additional avocados meeting the 

requirements of this section to be placed 

in the truck or container. The seal on 

the refrigerated truck or refrigerated 

container must be intact at the time the 

truck or container reaches the port of 

export in Mexico or the port of first 

arrival in the United States. 

* * * * * 

Done in Washington, DC, this 25th day of 

October 2010. 

Kevin Shea, 

Acting Administrator, Animal and Plant 

Health Inspection Service. 

[FR Doc. 2010–27426 Filed 10–28–10; 8:45 am] 

BILLING CODE 3410–34–P 

FEDERAL RESERVE SYSTEM 

12 CFR Part 205 

[Regulation E; Docket No. R–1377] 

Electronic Fund Transfers 

AGENCY: Board of Governors of the 

Federal Reserve System. 

ACTION: Final rule. 

SUMMARY: 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 final rule is effective 

November 29, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Dana Miller or Mandie Aubrey, Senior 

Attorneys, Ky Tran-Trong or Vivian 

Wong, Counsels, 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: 

I. Statutory Background 

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 

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2Public Law 111–209, 124 Stat. 2254 (July 27, 

2010). 

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. 

On July 27, 2010, Congress passed 

legislation amending 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 (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 card stock produced before that 

date until January 31, 2011, so long as 

certain conditions are met, including 

the provision of in-store disclosures. 

Moreover, the substantive fee and 

expiration date protections provided by 

the Credit Card Act continue to apply to 

all certificates or cards sold to a 

consumer on or after August 22, 2010. 

Due to the time constraints imposed by 

the August 22, 2010 effective date of the 

Credit Card Act, the Board issued an 

interim final rule revising the April 

2010 final gift card rule in order to 

implement the Gift Card Amendment, 

75 FR 50683 (Aug. 17, 2010), but stated 

its intent to consider comments on the 

interim final rule. The Board is adopting 

the final rule today. 

II. Overview of Public Comment; 

Summary of Final Rule 

The Board received two comments on 

the interim final rule from a credit 

union trade association and a bankers’ 

trade association. Both commenters 

generally supported the interim final 

rule. The bankers’ trade association 

suggested that the Board exercise its 

exception authority to eliminate in-store 

disclosures where cards sold meet the 

final gift card rule’s substantive fee and 

expiration date protections. This 

commenter also requested an extension 

of the delayed effective date. No other 

comments were received. The final rule 

adopts the interim final rule as issued, 

with minor non-substantive edits. 

With respect to gift certificates, store 

gift cards, and general-use prepaid cards 

produced prior to April 1, 2010, the Gift 

Card Amendment delayed 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. 

The final rule implements the Gift Card 

Amendment. 

The Gift Card Amendment did not 

address the status of additional 

requirements adopted in the Board’s 

final gift card rule that were not 

contained in the Credit Card Act. As a 

result, persons seeking to take advantage 

of the relief afforded by the Gift Card 

Amendment would have been unable to 

do so if certain of these additional 

provisions became effective on August 

22, 2010. For example, § 205.20(e)(1) of 

the final gift card rule 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, 

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, the final rule 

also delays the effective date of certain 

of these supplemental requirements. 

As in the interim final rule, the 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’’). 

III. Section-by-Section Analysis 

20(c) Form of Disclosures 

20(c)(2) Format 

To take advantage of the delayed 

effective date, the Gift Card Amendment 

requires that certain disclosures be 

made to the consumer 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 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 disclosures required by 

§ 205.20(h)(2) are intended to relieve the 

burden of replacing non-compliant card 

stock with card stock bearing 

disclosures that comply with the final 

gift card rule, so the Board believes that 

the format standards in § 205.20(c)(2) 

are less appropriate in this instance. 

Commenters supported the Board’s 

stance in this regard. 

Section 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. 

20(g) Compliance Dates 

20(g)(1) Effective Date for Gift 

Certificates, Store Gift Cards, and 

General-Use Prepaid Cards 

The final gift card rule became 

effective August 22, 2010, consistent 

with the Credit Card Act. Consistent 

with the interim final rule, to give effect 

to the delayed effective date set forth in 

the Gift Card Amendment, the final rule 

revises § 205.20(g)(1) of the final gift 

card rule 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(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 was unchanged both 

in the interim final rule and in this final 

rule. 

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20(h) Temporary Exemption 

20(h)(1) Delayed Effective Date 

As discussed above, the Gift Card 

Amendment delays the effective date of 

certain disclosure requirements in EFTA 

Sections 915(b)(3) and (c)(2)(B). 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. 

One commenter urged the Board to 

extend the delayed effective date an 

additional 24 months. By its terms, the 

Gift Card Amendment permits issuers to 

sell existing card stock until January 31, 

2011, the end of the 2010 holiday 

season. The Board believes that further 

extension of the effective date would be 

inconsistent with the legislation. 

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 

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 

disclosure of the expiration date for the 

certificate or card’s underlying funds— 

or the fact that the underlying funds do 

not expire—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 the effective date of §§ 205.20(e)(1), 

(e)(3)(iii), and (f) should also be delayed 

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 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 made prior to purchase. As 

discussed in more detail in the final gift 

card rule, § 205.20(c)(3) was adopted 

pursuant to both the statutory mandate 

(in EFTA Section 915(c)(3)(B)) and the 

Board’s authority under EFTA Section 

904(a). For the reasons discussed above, 

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 and at 

no cost to the consumer, replace such 

certificate or card if the certificate or 

card has funds remaining. 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 is adopted with 

minor, non-substantive edits for clarity. 

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). 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 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 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 

The Gift Card Amendment imposes 

certain additional disclosure 

requirements in order for an issuer to 

take advantage of the delayed effective 

date. Section 205.20(h)(2) of the final 

rule implements these disclosure 

requirements, largely tracking the 

language of the statute, and with minor 

non-substantive edits from the interim 

final rule for clarity. Specifically, 

§ 205.20(h)(2) provides that 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, which 

must be accompanied by the packaging 

and materials typically associated with 

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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. 

One commenter requested that the 

Board exercise its exception authority to 

eliminate these additional disclosures 

where the certificate or card meets the 

final gift card rule’s fee limitations and 

other substantive restrictions. If the 

Board were to take such an action, 

consumers could be sold cards that, on 

their face, contain disclosures that do 

not reflect the certificate or card’s actual 

terms. In particular, consumers may 

elect to discard an expired gift card 

notwithstanding the fact that the 

underlying funds remain valid after the 

card expiration, and thus be denied the 

Credit Card Act’s protections. Thus, the 

Board believes that the disclosures 

required by the Gift Card Amendment 

are necessary to alert the consumer 

about the protections afforded them by 

the Credit Card 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. 

Comment 20(h)(2)–2 also clarifies that 

§ 205.20(h)(2) does not impose an 

obligation on an issuer to advertise 

certificates or cards. 

20(h)(3) Expiration of Disclosure 

Requirements 

The Gift Card Amendment requires 

the additional disclosures 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). 

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 additional 

disclosures set forth in the Gift Card 

Amendment stated in advertisements or 

in-store signage are applicable to their 

certificates or cards. Thus, the Board 

believes that requiring issuers to 

maintain Gift Card Amendment-related 

advertisements or in-store signage on or 

after January 31, 2011 could be 

confusing and even misleading to 

consumers because certificates or cards 

that do not comply with the final gift 

card rule cannot be issued or sold after 

that date. 

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 provisions 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). 

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 generaluse 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.’’ 

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. 

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 the interim final rule, 

the Board found good cause under 5 

U.S.C. 553(b)(3)(B) to conclude that 

publication of a notice of proposed 

rulemaking was impracticable. 

Accordingly, the Board is not required 

to perform an initial or final regulatory 

flexibility analysis. Nonetheless, the 

Board is publishing a final regulatory 

flexibility analysis. Based on its analysis 

and for the reasons stated below, the 

Board believes that the 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 final 

rule implements the Gift Card 

Amendment by delaying the effective 

date of certain disclosures required by 

the Credit Card Act. This final rule also 

carries out the intended purpose of the 

Gift Card Amendment by delaying the 

effective date of certain supplemental 

requirements adopted in 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-use 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 final 

rule. The number of small entities 

affected by this final rule is unknown, 

as discussed in more detail in the 

Regulatory Flexibility Analysis in the 

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66648 Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Rules and Regulations 

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 institutions 

by providing relief from the requirement 

to remove and destroy non-compliant 

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 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 final rule implements the 

statutory mandate to delay the effective 

date of certain gift card provisions of the 

Credit Card Act. The final rule also 

delays the effective date of certain 

additional requirements finalized in the 

April 2010 final gift card rule. As such, 

the 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 

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 part 1320 Appendix A.1), 

the Board reviewed the 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 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 

sale of existing card stock until January 

31, 2011. The final rule published today 

revises the April 2010 final gift card rule 

in order to implement the Gift Card 

Amendment. 

While the 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 adopts as final the 

interim final rule published at 75 FR 

50683, August 17, 2010, with the 

following changes: 

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. 

■ 2. In § 205.20 paragraphs (c)(2) and 

(g)(1) are republished and paragraph (h) 

is revised to read as follows: 

§ 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, which 

must be accompanied by the packaging 

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Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Rules and Regulations 66649 

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. 

(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, new 

paragraph 20(h) is revised as follows: 

Supplement I to Part 205—Official Staff 

Interpretations 

* * * * * 

Section 205.20—Requirements for Gift Cards 

and Gift Certificates 

* * * * * 

20(h) Temporary Exemption 

20(h)(1)—Delayed Effective Date 

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). 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, 

the in-store signage and other disclosures 

required by § 205.20(h)(2) do not apply to gift 

cards produced prior to April 1, 2010 that do 

not have fees and do not expire, and which 

otherwise comply with 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. 

20(h)(2)—Additional Disclosures 

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 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 certificates, 

store gift cards, or general-use prepaid cards. 

By order of the Board of Governors of the 

Federal Reserve System, October 22, 2010. 

Jennifer J. Johnson, 

Secretary of the Board. 

[FR Doc. 2010–27191 Filed 10–28–10; 8:45 am] 

BILLING CODE 6210–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2010–0516; Directorate 

Identifier 2009–NM–251–AD; Amendment 

39–16484; AD 2010–22–05] 

RIN 2120–AA64 

Airworthiness Directives; Fokker 

Services B.V. Model F.28 Mark 0070 

and 0100 Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Final rule. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for the 

products listed above. This AD results 

from mandatory continuing 

airworthiness information (MCAI) 

originated by an aviation authority of 

another country to identify and correct 

an unsafe condition on an aviation 

product. The MCAI describes the unsafe 

condition as: 

When preparing for landing, the flight crew 

of a F28 Mark 0100 (Fokker 100) aeroplane 

observed a main landing gear (MLG) unsafe 

indication after landing gear down selection. 

* * * [T]he right (RH) MLG was partly 

extended and the left (LH) MLG door was 

open but without the MLG being extended. 

* * * 

Subsequent investigation revealed that the 

cause of the MLG extension problem was the 

(partially) blocked hydraulic return line from 

the MLG selector valve by pieces of hard 

plastic. These were identified as parts of the 

poppet seat of PBSOV [parking brake shut-off 

valve] Part Number (P/N) 70379. * * * 

This condition, if not detected and 

corrected, could lead to further events where 

the MLG fails to extend, possibly resulting in 

loss of control of the aeroplane during 

landing. 

* * * * * 

We are issuing this AD to require 

actions to correct the unsafe condition 

on these products. 

DATES: This AD becomes effective 

December 3, 2010. 

The Director of the Federal Register 

approved the incorporation by reference 

of certain publications listed in this AD 

as of December 3, 2010. 

ADDRESSES: You may examine the AD 

docket on the Internet at http:// 

www.regulations.gov or in person at the 

U.S. Department of Transportation, 

Docket Operations, M–30, West 

Building Ground Floor, Room W12–140, 

1200 New Jersey Avenue, SE., 

Washington, DC. 

FOR FURTHER INFORMATION CONTACT: Tom 

Rodriguez, Aerospace Engineer, 

International Branch, ANM–116, 

Transport Airplane Directorate, FAA, 

1601 Lind Avenue, SW., Renton, 

Washington 98057–3356; telephone 

(425) 227–1137; fax (425) 227–1149. 

SUPPLEMENTARY INFORMATION: 

Discussion 

We issued a notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 to include an AD that would 

apply to the specified products. That 

NPRM was published in the Federal 

Register on May 18, 2010 (75 FR 27668). 

That NPRM proposed to correct an 

unsafe condition for the specified 

products. The MCAI states: 

When preparing for landing, the flight crew 

of a F28 Mark 0100 (Fokker 100) aeroplane 

observed a main landing gear (MLG) unsafe 

indication after landing gear down selection. 

The approach was aborted and the landing 

gear unsafe procedure was accomplished. As 

this did not produce the desired effect, a low 

pass was performed and the control tower 

confirmed that the right (RH) MLG was partly 

extended and the left (LH) MLG door was 

open but without the MLG being extended. 

Eventually the aeroplane landed with partly 

extended landing gear, without resulting in 

serious injuries to the occupants. 

Subsequent investigation revealed that the 

cause of the MLG extension problem was the 

(partially) blocked hydraulic return line from 

the MLG selector valve by pieces of hard 

plastic. These were identified as parts of the 

poppet seat of PBSOV [parking brake shut-off 

valve] Part Number (P/N) 70379. The PBSOV 

installed on the incident aeroplane was a 

modified version of P/N 70379, identified by 

suffix ‘‘A’’ behind the serial number on the 

identification plate. This modification was 

introduced by Eaton, the valve manufacturer, 

with Eaton Service Bulletin (SB) 70379–32– 

01 and includes replacement of the original 

poppet with clamped hard plastic seat by an 

improved poppet assembly with screwed-on 

seat. When the affected valve was opened, it 

was confirmed that it contained the 

improved poppet assembly. The poppet seat 

fragments found in the return system 

therefore originated from a previously 

installed (pre SB 70379–32–01) P/N 70379 

PBSOV and must have been present in the 

return/pressure line prior to installation of 

the modified PBSOV. 

This condition, if not detected and 

corrected, could lead to further events where 

the MLG fails to extend, possibly resulting in 

loss of control of the aeroplane during 

landing. 

For the reasons described above, this 

[EASA] AD requires the [detailed] inspection 

of the associated hydraulic lines, irrespective 

what type PBSOV is installed, removal of 

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