82 FR 18975 - Prepaid Accounts Under the Electronic Fund Transfer Act (Regulation E) and the Truth in Lending Act (Regulation Z); Delay of Effective Date
BUREAU OF CONSUMER FINANCIAL PROTECTION Federal Register Volume 82, Issue 78 (April 25, 2017)
Federal Register Volume 82, Issue 78 (April 25, 2017)
| Page Range | 18975-18981 | |
| FR Document | 2017-08341 |
[Federal Register Volume 82, Number 78 (Tuesday, April 25, 2017)] [Rules and Regulations] [Pages 18975-18981] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-08341] ======================================================================== Rules and Regulations Federal Register ________________________________________________________________________ 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. ======================================================================== Federal Register / Vol. 82, No. 78 / Tuesday, April 25, 2017 / Rules and Regulations [[Page 18975]] BUREAU OF CONSUMER FINANCIAL PROTECTION 12 CFR Parts 1005 and 1026 [Docket No. CFPB-2017-0008] RIN 3170-AA69 Prepaid Accounts Under the Electronic Fund Transfer Act (Regulation E) and the Truth in Lending Act (Regulation Z); Delay of Effective Date AGENCY: Bureau of Consumer Financial Protection. ACTION: Final rule; official interpretation; delay of effective date. ----------------------------------------------------------------------- SUMMARY: The Bureau of Consumer Financial Protection (Bureau or CFPB) is issuing this final rule to delay the October 1, 2017 effective date of the rule governing Prepaid Accounts Under the Electronic Fund Transfer Act (Regulation E) and the Truth in Lending Act (Regulation Z) by six months, to April 1, 2018. DATES: The amendments in this final rule are effective on April 1, 2018. The effective date of the final rule published on November 22, 2016 (81 FR 83934) is delayed from October 1, 2017, to April 1, 2018. The effective date for the addition of Sec. 1005.19(b) remains October 1, 2018. FOR FURTHER INFORMATION CONTACT: Thomas L. Devlin and Yaritza Velez, Counsels, and Kristine M. Andreassen, Senior Counsel, Office of Regulations, at 202-435-7700. SUPPLEMENTARY INFORMATION: I. Summary of the Final Rule On October 5, 2016, the Bureau released a final rule to create comprehensive consumer protections for prepaid accounts under Regulation E, which implements the Electronic Fund Transfer Act (EFTA), and Regulation Z, which implements the Truth in Lending Act (TILA) (Prepaid Accounts Final Rule).\1\ When it was issued, the Prepaid Accounts Final Rule had a general effective date of October 1, 2017. Through its efforts to support industry implementation of the Prepaid Accounts Final Rule, the Bureau learned that some industry participants believed that they would have difficulty complying with certain provisions of the Prepaid Accounts Final Rule that would have gone into effect on October 1, 2017. In order to facilitate compliance with the Prepaid Accounts Final Rule, and to allow an opportunity for the Bureau to assess whether any additional adjustments to the Rule are appropriate, the Bureau proposed to extend the general effective date of the Prepaid Accounts Final Rule by six months, to April 1, 2018 (Effective Date NPRM).\2\ --------------------------------------------------------------------------- \1\ 81 FR 83934 (Nov. 22, 2016). \2\ 82 FR 13782 (Mar. 15, 2017). --------------------------------------------------------------------------- Based on comments received, the Bureau is issuing this final rule to delay the October 1, 2017 effective date for the Prepaid Accounts Final Rule by six months, to April 1, 2018. The Bureau is also making conforming amendments to certain regulatory text and commentary adopted in the Prepaid Accounts Final Rule to reflect the effective date delay. The Bureau plans to release a notice of proposed rulemaking address at least two issues that have been identified as areas where the Prepaid Accounts Final Rule may be posing particular complexities for implementation. When the Bureau does so it will also seek comment on whether any further extension of the effective date is needed in light of the specific changes proposed. II. Background A. The Prepaid Accounts Rulemaking In the Prepaid Accounts Final Rule, the Bureau extended Regulation E coverage to prepaid accounts and adopted provisions specific to such accounts, and generally expanded Regulation Z's coverage to overdraft credit features that may be offered in conjunction with prepaid accounts.\3\ Upon issuing the Prepaid Accounts Final Rule, the Bureau initiated robust efforts to support industry implementation.\4\ Information regarding the Bureau's Prepaid Accounts Final Rule implementation initiatives and available resources can be found on the Bureau's regulatory implementation Web site at https://www.consumerfinance.gov/policy-compliance/guidance/implementation-guidance/prepaid-rule/. --------------------------------------------------------------------------- \3\ 81 FR 83934 (Nov. 22, 2016). The Bureau released a proposal regarding prepaid accounts under Regulations E and Z, including model and sample disclosure forms, for public comment on November 13, 2014. 79 FR 77102 (Dec. 23, 2014) (Prepaid Accounts NPRM). The Bureau had previously issued an advance notice of proposed rulemaking that posed a series of questions for public comment about how the Bureau might consider regulating general purpose reloadable cards and other prepaid products. 77 FR 30923 (May 24, 2012). \4\ These on-going efforts include: (1) The publication of a plain-language small entity compliance guide to help industry understand the Prepaid Accounts Final Rule; (2) the publication of various other implementation tools regarding the Prepaid Accounts Final Rule, including an executive summary of the rule, summaries of key changes for payroll card accounts and government benefit accounts, a prepaid account coverage chart, a summary of the rule's effective date provisions, and a guide to preparing the short form disclosure; (3) the release of native design files for print and source code for web-based disclosures for all of the model and sample disclosure forms included in the Prepaid Accounts Final Rule; (4) meetings with industry, including trade associations and individual industry participants, to discuss and support their implementation efforts; and (5) participation in conferences and forums. --------------------------------------------------------------------------- B. Effective Date Delay As published, the Prepaid Accounts Final Rule had a general effective date of October 1, 2017. As discussed in the Effective Date NPRM, as part of its efforts to support industry implementation, the Bureau has discussed implementation efforts with a number of industry participants. As a result of those discussions, the Bureau learned that some industry participants were concerned for a variety of reasons that they would have difficulty in complying with certain aspects of the Prepaid Accounts Final Rule by October 1, 2017 while also ensuring continued availability of their prepaid products and with minimal disruption to consumers. For example, although the Bureau put in place an exception in Regulation E Sec. 1005.18(h)(2) pursuant to which financial institutions are not required to pull and replace prepaid account access devices and packaging materials with non-compliant disclosures that were produced in the normal course of business prior to October 1, 2017, some industry participants indicated that they believed that they should in fact pull and replace non-compliant packaging due to concerns about legal and regulatory [[Page 18976]] exposure at both the Federal and State level, and in particular due to developments following release of the Prepaid Accounts Final Rule. Industry had also raised related concerns regarding the constrained production capacity of packaging manufacturers and other supply chain limitations resulting from increased industry demand leading up to the October 1, 2017 effective date. In addition, in the course of working to implement the Prepaid Accounts Final Rule, some industry participants raised concerns about what they describe as unanticipated complexities arising from the interaction of certain aspects of the rule with certain business models and practices, including those newly adopted, that they did not fully address in their comment letters on the Prepaid Accounts NPRM, which may complicate implementation and affect consumers. Based on its initial outreach to industry before issuing the Effective Date NPRM, the Bureau believed that a six-month delay would be sufficient for industry participants to ensure that they can comply with the Prepaid Accounts Final Rule with minimal disruption to consumers. The Bureau explained that, in particular, a six-month extension would both allow more time for package printing and allow pull-and-replace processes at retail locations to occur after the winter holiday season, which is a particularly busy time for retailers. Indeed, the Bureau understands that industry often effectuates pull- and-replace processes in the spring for precisely this reason. The Bureau also believed that a six-month delay would allow the Bureau adequate opportunity to consider possible additional amendments to the Prepaid Accounts Final Rule, and for industry to implement any such changes, without unnecessary disruption to consumers' access to, and use of, prepaid accounts. The Bureau did not propose to delay the effective date of the requirement to submit prepaid account agreements to the Bureau in Regulation E Sec. 1005.19(f)(2), which is October 1, 2018. The Bureau expected to have its agreement submission process in place by October 1, 2018, and, as discussed in the Effective Date NPRM, the Bureau's pre-proposal outreach had not indicated that industry participants were concerned that they would not be able to meet the agreement submission effective date. In the Effective Date NPRM, the Bureau did not propose to amend any other substantive requirements of the Prepaid Accounts Final Rule. The purpose of that notice was not to seek comment generally on policy decisions made in the Prepaid Accounts Final Rule that industry or other stakeholders might wish the Bureau to reconsider. Rather, the Bureau stated that it would continue its outreach to industry and other stakeholders to understand their experiences in implementing the Prepaid Accounts Final Rule. III. Summary of the Rulemaking Process, Comments Received, and the Final Rule A. Summary of the Rulemaking Process On March 9, 2017, the Bureau released the Effective Date NPRM with a request for public comment. It was published in the Federal Register on March 15, 2017.\5\ The Bureau solicited comment on all aspects of the Effective Date NPRM. In particular, the Bureau asked commenters to provide specific detail and any available data regarding current and planned practices, as well as relevant knowledge and specific facts about any benefits, costs, or other impacts on industry, consumers, and other stakeholders of the Effective Date NPRM. The Bureau also solicited comment about the impact of the Effective Date NPRM on consumers who use prepaid accounts. The Bureau solicited comment regarding the proposed extension of the general effective date to April 1, 2018, as well as alternative dates for extension. --------------------------------------------------------------------------- \5\ 82 FR 13782 (Mar. 15, 2017). --------------------------------------------------------------------------- B. Comments Received The comment period for the Effective Date NPRM closed on April 5, 2017. The Bureau received 28 comment letters from consumer advocacy groups; national and regional trade associations; members of the prepaid industry, including issuing banks and credit unions, program managers, and a digital wallet provider; several think tanks; an association of State financial regulators; a group of State attorneys general; and several commenters who did not identify their affiliations.\6\ --------------------------------------------------------------------------- \6\ These comment letters are publicly available at https://www.regulations.gov/. --------------------------------------------------------------------------- Industry and trade association commenters all supported the Bureau's proposal to delay the effective date of most provisions of the Prepaid Accounts Final Rule; many expressly supported the Bureau's proposed six-month delay. A number of commenters cited the Bureau's concerns that some industry participants may need additional time to comply with the rule, in particular stating that providers might need to pull and replace non-compliant packaging notwithstanding the exception in the Prepaid Accounts Final Rule for prepaid account access devices and packaging materials with non-compliant disclosures that were produced in the normal course of business prior to the effective date of the rule. A prepaid issuer, a digital wallet provider, and a trade association each expressed support for a six-month delay of the effective date, contingent on the Bureau also revisiting the Prepaid Accounts Final Rule to address certain substantive provisions of the rule that they argued required changes to disclosures and business models that could not be implemented by April 1, 2018. The provisions that they cited relate to the linking of credit cards with digital wallets that are capable of storing funds and to error resolution and limitations on liability for prepaid accounts where the financial institution has not completed its consumer identification and verification process with respect to the account. These commenters requested a 12-month delay to the Prepaid Accounts Final Rule's general effective date if the Bureau were unwilling to revisit those issues. Some industry and trade association commenters argued that the Bureau should delay the effective date further by 12 months; two trade associations advocated for an 18-month delay. The commenters who requested a delay longer than six months cited a variety of reasons, including, for example, the time needed to develop and review new and updated disclosures and related materials; time required to retool J- hook card packaging to accommodate disclosures required by the rule; limitations in production capacity to print new prepaid card collateral; and the time needed to coordinate system updates with processors, vendors, and other service providers. A few commenters cited other reasons as well, such as the need to develop new systems and operational processes related to providing longer account transaction histories and calculating summary totals of fees. One trade association stated that providers need to develop an automated process to track cardholder agreements for purposes of submitting those agreements to the Bureau, which it stated would need to be in place as of the October 1, 2017 effective date in order to adequately track agreements. Another trade association commenter urged the Bureau to delay the effective date for longer than six months so that the Bureau could conduct a comprehensive study on the effects that the Prepaid Accounts Final Rule will have on consumers, specifically related to availability of prepaid accounts and their costs to consumers. [[Page 18977]] One credit union trade association commenter, requesting an 18- month extension, cited concerns that the proposed delayed effective date would coincide with the effective date of other regulations promulgated by the Bureau, in particular the provisions of the Bureau's mortgage servicing rule pertaining to successors-in-interest and the provision of periodic statements to consumers who have filed for bankruptcy. An association of State financial regulators also stated the compliance investments necessitated by other regulations such as the increased data collection/reporting requirements under the Home Mortgage Disclosure Act and additional identification requirements under the Bank Secrecy Act/Customer Due Diligence rule promulgated by another federal agency as a reason for its support of a six-month delay. A coalition of 27 consumer advocacy groups urged the Bureau to implement the Prepaid Accounts Final Rule as soon as possible, citing the benefits of the rule for consumers who use prepaid accounts, and expressing concern that further delays in the effective date would cause harm to consumers. They stated that, if an extension is warranted, the Bureau should give the minimum extension necessary-- which in their view would be no longer than the proposed six months-- and not provide any further extensions. Another consumer advocacy group supported the Bureau's proposal to delay the rule's effective date by six months while reiterating that expeditious implementation of the Prepaid Accounts Final Rule remains essential to providing comprehensive consumer protections to users of prepaid accounts. Two think tanks urged the Bureau to consider the possible negative effects on consumers of any delay in the effective date of the rule. Another think tank supported the six-month delay, stating that otherwise there is a risk that providers might pull cards without replacing them, thus hampering consumers' access to those products. The commenters who did not identify their affiliation varied in their comments, either expressing support for the proposed delay in effective date or arguing that the effective date should not be extended to ensure that consumers receive the protections of the Prepaid Accounts Final Rule. A group of State attorneys general expressed support for the rule generally but did not comment specifically on the effective date of the rule. Safe harbor for early compliance. Two trade association commenters urged the Bureau to establish a safe harbor for prepaid providers that comply with the Prepaid Accounts Final Rule (or portions of it) prior to the rule's effective date. These commenters expressed concerns that prepaid providers may be exposed to potential liability if they comply with the rule prior to the effective date, as they suggested the possibility that there may be some conflict between the Prepaid Accounts Final Rule and current requirements for payroll card accounts and government benefit accounts, though they did not provide any specific examples. One commenter stated that early compliance would benefit consumers and should not be discouraged. Section 1005.19(f)(2). The Bureau did not propose to delay the October 1, 2018 effective date of the requirement that prepaid account issuers submit prepaid account agreements to the Bureau, which is set forth in Regulation E Sec. 1005.19(f)(2). The Bureau did, however, solicit comment on whether it should also delay that effective date. Commenters generally did not express concerns that the October 1, 2018 agreement submission effective date would create compliance issues. One of the trade association commenters advocating for an 18-month delay of the Prepaid Accounts Final Rule's general effective date suggested that the Bureau contemplate a proportional delay for Sec. 1005.19(f)(2), stating that it would help relieve pressure on credit unions that may need to submit credit card agreements pursuant to Regulation Z Sec. 1026.58 for covered separate credit features accessible by hybrid prepaid-credit cards. Another trade association expressed concerns pertaining to general compliance with the requirement to submit prepaid account agreements to the Bureau, but did not suggest a delay to the effective date in Sec. 1005.19(f)(2). A program manager expressed concerns about the challenges it is facing in complying with the agreement posting requirement in Sec. 1005.19, which appears to be due, at least in part, to the number of prepaid account agreements it manages. This commenter suggested making the effective dates set forth in Sec. 1005.19(f)(1) and (2) consistent, but did not request that the Bureau delay the effective date for the agreement submission requirement. A commenter who did not identify his or her affiliation supported the Bureau's proposal not to delay the effective date of the agreement submission requirement, but suggested that the Bureau revisit that decision six months in advance of the effective date. Substantive changes to the Prepaid Accounts Final Rule. As noted above, the Bureau did not propose in the Effective Date NPRM to amend any other substantive provisions of the Prepaid Accounts Final Rule, nor was the purpose of the Effective Date NPRM to seek comment generally on policy decisions made in the Prepaid Accounts Final Rule that industry or other stakeholders might wish the Bureau to reconsider. Nonetheless, many commenters used their comment letters to advocate for retaining, modifying, or eliminating various provisions of the rule. Commenters also suggested that the Bureau could use the additional time provided by delaying the effective date of the Prepaid Accounts Final Rule to revisit these issues. C. The Final Rule For the reasons set forth herein, the Bureau is finalizing as proposed a six-month delay of the October 1, 2017 effective date of the Prepaid Accounts Final Rule. In order to effect this change, the Bureau is also amending Regulation E Sec. Sec. 1005.18(b)(2)(ix) and (h), and 1005.19(f)(1), and related commentary, to reflect the delayed effective date. The Bureau continues to believe that the Prepaid Accounts Final Rule will provide significant benefits to consumers and that, therefore, expeditious implementation remains essential to provide comprehensive consumer protections to users of prepaid accounts. Having reviewed the comments received, the Bureau continues to believe that a six-month delay of the effective date, when added to the nearly 12 months previously provided for in the Prepaid Accounts Final Rule, allows sufficient time for industry to implement the rule and provides for an appropriate balance between the interests of the consumers who will receive the benefits of the rule and the needs of industry for an adequate implementation period. The Bureau appreciates the issues raised by commenters advocating for a longer delay to the Prepaid Accounts Final Rule's effective date, but does not believe that a longer delay is in fact warranted at this time. Based on industry outreach efforts and the comments received in response to the Effective Date NPRM, the Bureau has determined that it should revisit at least two substantive issues through a separate notice and comment rulemaking process. Those issues relate to the linking of credit cards into digital wallets that are capable of storing funds and to error resolution and limitations on liability for prepaid accounts that [[Page 18978]] cannot be registered, have not yet been registered, or for which consumers have attempted but have not successfully completed the registration process. The Bureau is continuing to evaluate other concerns raised by industry and other stakeholders, including those discussed in comments on the Effective Date NPRM, and may address a limited number of other topics as well in its forthcoming proposal. The Bureau also will seek comment on whether any further extension of the effective date is needed in light of the specific changes proposed. Safe harbor for early compliance. The Bureau agrees with commenters that early compliance with the Prepaid Accounts Final Rule could benefit both industry and consumers. The Bureau is not aware of any conflicts between the requirements of the Prepaid Accounts Final Rule and the current regulations applying to accounts that will be covered by the rule, nor were any specified by commenters. To the extent that financial institutions are engaged in consumer-friendly practices that are not specifically required under current regulations, the Bureau encourages those institutions to continue those practices, whether or not those practices are required by the Prepaid Accounts Final Rule. For example, financial institutions that already provide access to more than 60 days of account history to all current accountholders, or that provide full Regulation E error resolution and limited liability protections to their accountholders, are encouraged to continue to do so in advance of the effective date. However, financial institutions should ensure that their disclosures do not suggest to consumers that they are engaged in a consumer-friendly practice that they have not yet implemented. The Bureau notes that the Prepaid Accounts Final Rule already contemplates that some aspects of the rule will be phased in, particularly with respect to the exception that does not require financial institutions to pull and replace non-compliant packaging that was manufactured, printed, or otherwise produced in the normal course of business prior to the effective date of the rule. Thus, the Bureau is not adding an explicit safe harbor for early compliance, although the Bureau does not believe that the absence of one will prevent financial institutions from implementing practices that are required by the Prepaid Accounts Final Rule prior to the effective date. The Bureau will seek comment in its forthcoming proposal on whether there are in fact any conflicts between requirements of the Prepaid Accounts Final Rule and the current regulations applying to accounts that will be covered by the rule that would merit a more formal safe harbor. Section 1005.19(f)(2). The Bureau is maintaining the October 1, 2018 effective date set forth in Regulation E Sec. 1005.19(f)(2) for the agreement submission requirement, as proposed. In the Effective Date NPRM, the Bureau indicated that its industry outreach had not indicated that the effective date of this provision was causing significant compliance concerns in and of itself, and the comments to the Effective Date NPRM support that conclusion. The Bureau does not believe that the few concerns raised by commenters warrant a delay to the October 1, 2018 effective date. IV. Legal Authority The Bureau is exercising its rulemaking authority pursuant to EFTA section 904(a) and (c), Dodd-Frank Act sections 1022(b)(1) and 1032(a), and TILA section 105(a) to delay the effective date of the Prepaid Accounts Final Rule. The legal authority for the Prepaid Accounts Final Rule is described in detail in the Prepaid Accounts Final Rule's Supplementary Information.\7\ As amended by the Dodd-Frank Act, EFTA section 904(a) and (c) \8\ authorizes the Bureau to prescribe regulations to carry out the purposes of EFTA and provide that such regulations may contain such classifications, differentiations, or other provisions, and may provide for such adjustments and exceptions, for any class of electronic fund transfers or remittance transfers as in the judgment of the Bureau are necessary or proper to effectuate the purposes of EFTA, to prevent circumvention or evasion thereof, or to facilitate compliance therewith. As amended by the Dodd-Frank Act, TILA section 105(a) \9\ directs the Bureau to prescribe regulations to carry out the purposes of TILA and provides that such regulations may contain such additional requirements, classifications, differentiations, or other provisions, and may provide for such adjustments and exceptions for all or any class of transactions as in the judgment of the Bureau are necessary or proper to effectuate the purposes of TILA, to prevent circumvention or evasion thereof, or to facilitate compliance therewith.\10\ Section 1032(a) of the Dodd-Frank Act\11\ provides that the Bureau may prescribe rules to ensure that the features of any consumer financial product or service, both initially and over the term of the product or service, are fully, accurately, and effectively disclosed to consumers in a manner that permits consumers to understand the costs, benefits, and risks associated with the product or service, in light of the facts and circumstances. Additionally, under Dodd-Frank Act section 1022(b)(1),\12\ the Bureau has general authority to prescribe rules as may be necessary or appropriate to enable the Bureau to administer and carry out the purposes and objectives of the Federal consumer financial laws, and to prevent evasions thereof. --------------------------------------------------------------------------- \7\ See, e.g., 81 FR 83934, 83958-60 (Nov. 22, 2016). \8\ 15 U.S.C. 1593b(a). \9\ 15 U.S.C. 1604(a). \10\ TILA section 105(d) generally provides that a regulation requiring any disclosure that differs from the disclosures previously required by parts A, D, or E of TILA shall have an effective date ``of that October 1 which follows by at least six months the date of promulgation.'' Section 105(d) further provides that the Bureau ``may at its discretion take interim action by regulation, amendment, or interpretation to lengthen the period of time permitted for creditors or lessors to adjust their forms to accommodate new requirements.'' Although the Bureau desires to have the rule take effect as soon as feasible given its value for consumers, the Bureau is using its discretion under TILA section 105(d) to lengthen the period in this instance. The Bureau believes that the changes the Prepaid Accounts Final Rule will require to disclosures pursuant to Regulation Z warrant a delayed effective date that conforms to the rest of the rule. \11\ 12 U.S.C. 5532(a). \12\ 12 U.S.C. 5512(b)(1). --------------------------------------------------------------------------- EFTA, TILA, and Title X of the Dodd-Frank Act are Federal consumer financial laws. Accordingly, in finalizing this rule, the Bureau is exercising its authority under Dodd-Frank Act section 1022(b) \13\ to prescribe rules under EFTA, TILA, and Title X of the Dodd-Frank Act that carry out the purposes and objectives and prevent evasion of those laws. Section 1022(b)(2) of the Dodd-Frank Act \14\ prescribes certain standards for rulemaking that the Bureau must follow in exercising its authority under section 1022(b)(1). --------------------------------------------------------------------------- \13\ 12 U.S.C. 5512(b). \14\ 12 U.S.C. 5512(b)(2). --------------------------------------------------------------------------- V. Provisions Affected by the Final Rule 1005.18 Requirements for Financial Institutions Offering Prepaid Accounts 18(b) Pre-Acquisition Disclosure Requirements 18(b)(2) Short Form Disclosure Content 18(b)(2)(ix) Disclosure of Additional Fee Types Regulation E Sec. 1005.18(b)(2) describes the short form disclosure content requirements for prepaid accounts. Section 1005.18(b)(2)(ix) contains requirements specifically regarding additional fee types. Section [[Page 18979]] 1005.18(b)(2)(ix)(D) describes the timing requirements for the initial assessment of an additional fee types disclosure, and Sec. 1005.18(b)(2)(ix)(E) describes the timing for the periodic reassessment and update of additional fee types disclosures. The Bureau is revising the dates in the regulatory text and headings in Sec. 1005.18(b)(2)(ix)(D)(1) through (3) and in comments 18(b)(2)(ix)(D)(1)- 1, 18(b)(2)(ix)(D)(2)-1, 18(b)(2)(ix)(E)(2)-1.i through iii, and 18(b)(2)(ix)(E)(3)-1 to reflect the new April 1, 2018 effective date. The Bureau is not, however, changing the October 1, 2014 date in Sec. 1005.18(b)(2)(ix)(D)(1) and related commentary, which is the beginning of the time frame for which financial institutions may calculate additional fee types to disclose, so as not to inconvenience financial institutions that have already prepared their additional fee types calculations in reliance on that date. 18(h) Effective Date and Special Transition Rules for Disclosure Provisions Regulation E Sec. 1005.18(h) sets forth several provisions to make clearer the Prepaid Accounts Final Rule's general October 1, 2017 effective date. The Bureau is revising the dates in the regulatory text and headings throughout Sec. 1005.18(h) and in comments 18(h)-1, 2, 6.i and 6.ii to reflect the new April 1, 2018 effective date. 1005.19 Internet Posting of Prepaid Account Agreements 19(f) Effective Date 19(f)(1) Effective Date Regulation E Sec. 1005.19(f)(1) sets forth the general effective date for the prepaid account agreement posting requirements in Sec. 1005.19, other than the delayed requirement to submit prepaid account agreements to the Bureau pursuant to Sec. 1005.19(b), as addressed in Sec. 1005.19(f)(2). The Bureau is revising the date in the regulatory text of Sec. 1005.19(f)(1) to reflect the new April 1, 2018 effective date. As discussed above, the Bureau is not delaying the October 1, 2018 date for submission of agreements to the Bureau. VI. Effective Date The Bureau is delaying the October 1, 2017 effective date of the Prepaid Accounts Final Rule by six months, to April 1, 2018. Additionally, the Bureau is making conforming amendments to Regulation E Sec. Sec. 1005.18(b)(2)(ix) and (h) and 1005.19(f)(1), and related commentary, as described above, which will also become effective April 1, 2018. This final rule with respect to the effective date of the Prepaid Accounts Final Rule will become effective 30 days after publication in the Federal Register, as required under section 553(d) of the Administrative Procedure Act.\15\ --------------------------------------------------------------------------- \15\ 5 U.S.C. 553(d). --------------------------------------------------------------------------- VII. Dodd-Frank Act Section 1022(b) Analysis In developing the final rule, the Bureau has considered the potential benefits, costs, and impacts required by section 1022(b)(2) of the Dodd-Frank Act. Specifically, section 1022(b)(2) calls for the Bureau to consider the potential benefits and costs of a regulation to consumers and covered persons, including the potential reduction of consumer access to consumer financial products or services, the impact on depository institutions and credit unions with $10 billion or less in total assets as described in section 1026 of the Dodd-Frank Act, and the impact on consumers in rural areas. In addition, 12 U.S.C. 5512(b)(2)(B) directs the Bureau to consult, before and during the rulemaking, with appropriate prudential regulators or other Federal agencies, regarding consistency with the objectives those agencies administer. The Bureau consulted, or offered to consult with, the prudential regulators, the Department of the Treasury, the Securities and Exchange Commission, and the Federal Trade Commission regarding consistency with any prudential, market, or systemic objectives administered by these agencies. The Bureau previously considered the benefits, costs, and impacts of the Prepaid Accounts Final Rule's major provisions.\16\ The Bureau also previously considered the benefits, costs, and impacts of delaying the effective date in the Effective Date NPRM and solicited comment regarding that discussion.\17\ Where comments discuss the benefits or costs of delaying the effective date in the context of commenting on the merits of the provision, the Bureau has addressed those comments above. In this respect, the Bureau's section 1022(b)(2) discussion is not limited to the discussion in this part of the final rule. --------------------------------------------------------------------------- \16\ 81 FR 83934, 84269 (Nov. 22, 2016). \17\ 82 FR 13782, 13785 (Mar. 15, 2017). --------------------------------------------------------------------------- In considering the relevant potential benefits, costs, and impacts, the Bureau has applied its knowledge and expertise concerning consumer financial markets and information received in response to its request for comment. Compared to the baseline established by the Prepaid Accounts Final Rule,\18\ the delay of the effective date of the Prepaid Accounts Final Rule will generally benefit covered persons by facilitating initial compliance with the Prepaid Accounts Final Rule's requirements and delaying the start of ongoing compliance costs. Because covered persons retain the option of complying with the Prepaid Accounts Final Rule's original effective date, any delay in the effective date will not increase costs to providers. --------------------------------------------------------------------------- \18\ The Bureau has discretion in any rulemaking to choose an appropriate scope of analysis with respect to potential benefits, costs, and impacts and an appropriate baseline. --------------------------------------------------------------------------- Consumers may experience both benefits and costs from a delay in the effective date. If a delay in the effective date helps to preserve consumer access to covered products by minimizing industry disruption, both consumers and covered persons will benefit. However, the Bureau believes that delaying the effective date may also delay consumers' realization of benefits arising from the protections provided by the Prepaid Accounts Final Rule, thereby potentially imposing a cost on consumers. One think tank commenter stated that, although prepaid providers often offer some protections voluntarily, providers may alter or remove protections so long as the rule is not in effect. Another think tank commenter stated that the primary cost of the delay would be that consumers would not have the information needed to make appropriate choices among card products. However, the commenter also stated that providers have made improvements with respect to disclosure recently and that it believed that the risk of consumers not having adequate information for decision-making during the intervening period was low. The Bureau does not expect the final rule to have a differential impact on depository institutions and credit unions with $10 billion or less in total assets, as described in section 1026 of the Dodd-Frank Act, or on consumers in rural areas. The Bureau does not believe that the delay in the effective date will reduce consumer access to consumer financial products and services, and it may increase consumer access by decreasing the possibility of industry disruption arising from the Prepaid Accounts Final Rule's implementation. VIII. Regulatory Flexibility Act Analysis The Regulatory Flexibility Act \19\ as amended by the Small Business Regulatory Enforcement Fairness Act of [[Page 18980]] 1996 \20\ (RFA) requires each agency to consider the potential impact of its regulations on small entities, including small businesses, small governmental units, and small not-for-profit organizations.\21\ The RFA defines a ``small business'' as a business that meets the size standard developed by the Small Business Administration (SBA) pursuant to the Small Business Act.\22\ --------------------------------------------------------------------------- \19\ Public Law 96-354, 94 Stat. 1164 (1980). \20\ Public Law 104-21, section 241, 110 Stat. 847, 864-65 (1996). \21\ 5 U.S.C. 601 through 612. The term `` `small organization' means any not-for-profit enterprise which is independently owned and operated and is not dominant in its field, unless an agency establishes [an alternative definition under notice and comment].'' 5 U.S.C. 601(4). The term `` `small governmental jurisdiction' means governments of cities, counties, towns, townships, villages, school districts, or special districts, with a population of less than fifty thousand, unless an agency establishes [an alternative definition after notice and comment].'' 5 U.S.C. 601(5). \22\ 5 U.S.C. 601(3). The Bureau may establish an alternative definition after consulting with the SBA and providing an opportunity for public comment. Id. --------------------------------------------------------------------------- The RFA generally requires an agency to conduct an initial regulatory flexibility analysis (IRFA) and a final regulatory flexibility analysis (FRFA) of any rule subject to notice-and-comment rulemaking requirements, unless the agency certifies that the rule would not have a significant economic impact on a substantial number of small entities.\23\ The Bureau also is subject to certain additional procedures under the RFA involving the convening of a panel to consult with small entity representatives prior to proposing a rule for which an IRFA is required.\24\ --------------------------------------------------------------------------- \23\ 5 U.S.C. 601 through 612. \24\ 5 U.S.C. 609. --------------------------------------------------------------------------- The undersigned certified that the Effective Date NPRM would not have a significant economic impact on a substantial number of small entities and that an IRFA was therefore not required. The Bureau arrived at this conclusion because the Effective Date NPRM would delay the effective date of the Prepaid Accounts Final Rule, which itself would not have a significant economic impact on a substantial number of small entities.\25\ Upon considering relevant comments, the Bureau's conclusion that the rule will not have a significant economic impact on a substantial number of small entities is unchanged. Therefore, a FRFA is not required.\26\ --------------------------------------------------------------------------- \25\ 81 FR 83934, 84308 (Nov. 22, 2016). \26\5 U.S.C. 605(b). --------------------------------------------------------------------------- As discussed above, this final rule delays the effective date of the Prepaid Accounts Final Rule to April 1, 2018. The six-month delay in the effective date will benefit small entities by providing additional flexibility with respect to the timing of the Prepaid Accounts Final Rule's implementation. In addition to generally providing increased flexibility, the delay in the effective date will permit small entities to delay the commencement of any ongoing costs that result from complying with the Prepaid Accounts Final Rule. Because small entities retain the option of complying with the Prepaid Accounts Final Rule's original effective date, the final rule's delay of the effective date will not increase costs incurred by small entities relative to the baseline established by the Prepaid Accounts Final Rule. Accordingly, the undersigned hereby certifies that this final rule will not have a significant economic impact on a substantial number of small entities. IX. Paperwork Reduction Act Under the Paperwork Reduction Act of 1995 (PRA),\27\ Federal agencies are generally required to seek Office of Management and Budget (OMB) approval for information collection requirements prior to implementation. The collections of information related to the Prepaid Accounts Final Rule have been previously reviewed and approved by OMB in accordance with the PRA and assigned OMB Control Number 3170-0014 (Regulation E) and 3170-0015 (Regulation Z). Under the PRA, the Bureau may not conduct or sponsor and, notwithstanding any other provision of law, a person is not required to respond to an information collection unless the information collection displays a valid control number assigned by OMB. --------------------------------------------------------------------------- \27\ 44 U.S.C. 3501 et seq. --------------------------------------------------------------------------- The Bureau has determined that this final rule will not have any new or revised information collection requirements (recordkeeping, reporting, or disclosure requirements) on covered entities or members of the public that would constitute collections of information requiring OMB approval under the PRA. List of Subjects in 12 CFR Part 1005 Banking, Banks, Consumer protection, Credit unions, Electronic fund transfers, National banks, Remittance transfers, Reporting and recordkeeping requirements, Savings Associations. Authority and Issuance For the reasons set forth above, Regulation E, 12 CFR part 1005, as amended November 22, 2016, at 81 FR 83934, is further amended as follows: PART 1005--ELECTRONIC FUND TRANSFERS (REGULATION E) 0 1. The authority citation for part 1005 continues to read as follows: Authority: 12 U.S.C. 5512, 5581; 15 U.S.C. 1693b. Subpart B is also issued under 12 U.S.C. 5601 and 15 U.S.C. 1693o-1. Subpart A--General Sec. 1005.18 Requirements for financial institutions offering prepaid accounts. 0 2. Section 1005.18 is amended by revising all references to ``October 1, 2017'' to read ``April 1, 2018'' in paragraphs (b)(2)(ix)(D)(1) through (3) and (h). Sec. 1005.19 Internet posting of prepaid account agreements. 0 3. Section 1005.19 is amended by revising the reference to ``October 1, 2017'' to read ``April 1, 2018'' in paragraph (f)(1). 0 4. In Supplement I to part 1005: 0 a. Under Section 1005.18--Requirements for Financial Institutions Offering Prepaid Accounts: 0 i. In subsection 18(b)(2)(ix)(D)(1) Existing Prepaid Account Programs as of October 1, 2017, the subsection heading and paragraph 1 are amended by revising all references to ``October 1, 2017'' to read ``April 1, 2018''. 0 ii. In subsection 18(b)(2)(ix)(D)(2) Existing Prepaid Account Programs as of October 1, 2017 with Unavailable Data, the subsection heading and paragraph 1 are amended by revising all references to ``October 1, 2017'' to read ``April 1, 2018''. 0 iii. In subsection 18(b)(2)(ix)(E)(2) Periodic Reassessment, paragraphs 1.i through iii are amended by: 0 A. Revising all references to ``October 1, 2017'' to read ``April 1, 2018''. 0 B. Revising all references to ``October 1, 2019'' to read ``April 1, 2020''. 0 C. Revising the reference to ``January 1, 2020'' to read ``July 1, 2020''. 0 iv. In subsection 18(b)(2)(ix)(E)(3) Fee Schedule Change, paragraph 1 is amended by revising the reference to ``October 1, 2017'' to read ``April 1, 2018''. 0 v. In subsection 18(h) Effective Date and Special Transition Rules for Disclosure Provisions, paragraphs 1 and 2 are amended by revising all references to ``October 1, 2017'' to read ``April 1, 2018''. 0 vi. In subsection 18(h) Effective Date and Special Transition Rules for Disclosure Provisions, paragraph 6 introductory text and paragraph 6.i are amended by: 0 A. Revising all references to ``October 1, 2017'' to read ``April 1, 2018''. [[Page 18981]] 0 B. Revising the reference to ``November 1, 2017'' to read ``May 1, 2018''. 0 C. Revising the reference to ``October 1, 2018'' to read ``April 1, 2019''. 0 D. Revising the reference to ``October 1, 2019'' to read ``April 1, 2020''. 0 vii. In subsection 18(h) Effective Date and Special Transition Rules for Disclosure Provisions, paragraph 6.ii is revised to read as follows: Supplement I to Part 1005--Official Interpretations * * * * * Section 1005.18--Requirements for Financial Institutions Offering Prepaid Accounts * * * * * 18(h) Effective Date and Special Transition Rules for Disclosure Provisions * * * * * 0 6. Account information not available on April 1, 2018. * * * ii. Summary totals of fees. A financial institution must display a summary total of the amount of all fees assessed by the financial institution on the consumer's prepaid account for the prior calendar month and for the calendar year to date pursuant to Sec. 1005.18(c)(5) beginning April 1, 2018. If, on April 1, 2018, the financial institution does not have readily accessible the data necessary to calculate the summary totals of fees for the prior calendar month or the calendar year to date, the financial institution may provide the summary totals using the data it has until the financial institution has accumulated the data necessary to display the summary totals as required by Sec. 1005.18(c)(5). That is, the financial institution would first display the monthly fee total beginning on May 1, 2018 for the month of April, and the year-to-date fee total beginning on April 1, 2018, provided the financial institution discloses that it is displaying the year-to-date total beginning on April 1, 2018 rather than for the entire calendar year 2018. On January 1, 2019, financial institutions must begin displaying year-to-date fee totals for calendar year 2019. * * * * * Dated: April 19, 2017. Richard Cordray, Director, Bureau of Consumer Financial Protection. [FR Doc. 2017-08341 Filed 4-24-17; 8:45 am] BILLING CODE 4810-AM-P
![18975
Rules and Regulations Federal Register
Vol. 82, No. 78
Tuesday, April 25, 2017
This section of the FEDERAL REGISTER Accounts Final Rule).1 When it was Upon issuing the Prepaid Accounts
contains regulatory documents having general issued, the Prepaid Accounts Final Rule Final Rule, the Bureau initiated robust
applicability and legal effect, most of which had a general effective date of October efforts to support industry
are keyed to and codified in the Code of 1, 2017. Through its efforts to support implementation.4 Information regarding
Federal Regulations, which is published under industry implementation of the Prepaid the Bureau’s Prepaid Accounts Final
50 titles pursuant to 44 U.S.C. 1510.
Accounts Final Rule, the Bureau learned Rule implementation initiatives and
The Code of Federal Regulations is sold by that some industry participants believed available resources can be found on the
the Superintendent of Documents. that they would have difficulty Bureau’s regulatory implementation
complying with certain provisions of Web site at https://
the Prepaid Accounts Final Rule that www.consumerfinance.gov/policy-
BUREAU OF CONSUMER FINANCIAL would have gone into effect on October compliance/guidance/implementation-
PROTECTION 1, 2017. In order to facilitate compliance guidance/prepaid-rule/.
with the Prepaid Accounts Final Rule, B. Effective Date Delay
12 CFR Parts 1005 and 1026 and to allow an opportunity for the
Bureau to assess whether any additional As published, the Prepaid Accounts
[Docket No. CFPB–2017–0008] adjustments to the Rule are appropriate, Final Rule had a general effective date
the Bureau proposed to extend the of October 1, 2017. As discussed in the
RIN 3170–AA69 general effective date of the Prepaid Effective Date NPRM, as part of its
Accounts Final Rule by six months, to efforts to support industry
Prepaid Accounts Under the Electronic April 1, 2018 (Effective Date NPRM).2 implementation, the Bureau has
Fund Transfer Act (Regulation E) and Based on comments received, the discussed implementation efforts with a
the Truth in Lending Act (Regulation Bureau is issuing this final rule to delay number of industry participants. As a
Z); Delay of Effective Date the October 1, 2017 effective date for the result of those discussions, the Bureau
Prepaid Accounts Final Rule by six learned that some industry participants
AGENCY: Bureau of Consumer Financial were concerned for a variety of reasons
months, to April 1, 2018. The Bureau is
Protection. that they would have difficulty in
also making conforming amendments to
ACTION: Final rule; official certain regulatory text and commentary complying with certain aspects of the
interpretation; delay of effective date. adopted in the Prepaid Accounts Final Prepaid Accounts Final Rule by October
Rule to reflect the effective date delay. 1, 2017 while also ensuring continued
SUMMARY: The Bureau of Consumer availability of their prepaid products
The Bureau plans to release a notice
Financial Protection (Bureau or CFPB) is and with minimal disruption to
of proposed rulemaking address at least
issuing this final rule to delay the consumers. For example, although the
two issues that have been identified as
October 1, 2017 effective date of the rule Bureau put in place an exception in
areas where the Prepaid Accounts Final
governing Prepaid Accounts Under the Regulation E § 1005.18(h)(2) pursuant to
Rule may be posing particular
Electronic Fund Transfer Act which financial institutions are not
complexities for implementation. When
(Regulation E) and the Truth in Lending required to pull and replace prepaid
the Bureau does so it will also seek
Act (Regulation Z) by six months, to account access devices and packaging
comment on whether any further
April 1, 2018. materials with non-compliant
extension of the effective date is needed
DATES: The amendments in this final in light of the specific changes disclosures that were produced in the
rule are effective on April 1, 2018. The proposed. normal course of business prior to
effective date of the final rule published October 1, 2017, some industry
on November 22, 2016 (81 FR 83934) is II. Background participants indicated that they believed
delayed from October 1, 2017, to April A. The Prepaid Accounts Rulemaking that they should in fact pull and replace
1, 2018. The effective date for the non-compliant packaging due to
addition of § 1005.19(b) remains In the Prepaid Accounts Final Rule, concerns about legal and regulatory
October 1, 2018. the Bureau extended Regulation E
coverage to prepaid accounts and cards and other prepaid products. 77 FR 30923
FOR FURTHER INFORMATION CONTACT:
adopted provisions specific to such (May 24, 2012).
Thomas L. Devlin and Yaritza Velez, accounts, and generally expanded 4 These on-going efforts include: (1) The
Counsels, and Kristine M. Andreassen, Regulation Z’s coverage to overdraft publication of a plain-language small entity
Senior Counsel, Office of Regulations, at compliance guide to help industry understand the
credit features that may be offered in Prepaid Accounts Final Rule; (2) the publication of
202–435–7700. conjunction with prepaid accounts.3 various other implementation tools regarding the
SUPPLEMENTARY INFORMATION: Prepaid Accounts Final Rule, including an
1 81 executive summary of the rule, summaries of key
FR 83934 (Nov. 22, 2016).
I. Summary of the Final Rule 2 82
changes for payroll card accounts and government
FR 13782 (Mar. 15, 2017). benefit accounts, a prepaid account coverage chart,
asabaliauskas on DSK3SPTVN1PROD with RULES
On October 5, 2016, the Bureau 3 81 FR 83934 (Nov. 22, 2016). The Bureau
a summary of the rule’s effective date provisions,
released a final rule to create released a proposal regarding prepaid accounts and a guide to preparing the short form disclosure;
under Regulations E and Z, including model and (3) the release of native design files for print and
comprehensive consumer protections sample disclosure forms, for public comment on source code for web-based disclosures for all of the
for prepaid accounts under Regulation November 13, 2014. 79 FR 77102 (Dec. 23, 2014) model and sample disclosure forms included in the
E, which implements the Electronic (Prepaid Accounts NPRM). The Bureau had Prepaid Accounts Final Rule; (4) meetings with
Fund Transfer Act (EFTA), and previously issued an advance notice of proposed industry, including trade associations and
rulemaking that posed a series of questions for individual industry participants, to discuss and
Regulation Z, which implements the public comment about how the Bureau might support their implementation efforts; and (5)
Truth in Lending Act (TILA) (Prepaid consider regulating general purpose reloadable participation in conferences and forums.
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![18980 Federal Register / Vol. 82, No. 78 / Tuesday, April 25, 2017 / Rules and Regulations
1996 20 (RFA) requires each agency to respect to the timing of the Prepaid PART 1005—ELECTRONIC FUND
consider the potential impact of its Accounts Final Rule’s implementation. TRANSFERS (REGULATION E)
regulations on small entities, including In addition to generally providing
small businesses, small governmental increased flexibility, the delay in the ■ 1. The authority citation for part 1005
units, and small not-for-profit effective date will permit small entities continues to read as follows:
organizations.21 The RFA defines a to delay the commencement of any Authority: 12 U.S.C. 5512, 5581; 15 U.S.C.
‘‘small business’’ as a business that ongoing costs that result from 1693b. Subpart B is also issued under 12
meets the size standard developed by complying with the Prepaid Accounts U.S.C. 5601 and 15 U.S.C. 1693o–1.
the Small Business Administration Final Rule. Because small entities retain
(SBA) pursuant to the Small Business Subpart A—General
the option of complying with the
Act.22 Prepaid Accounts Final Rule’s original § 1005.18 Requirements for financial
The RFA generally requires an agency effective date, the final rule’s delay of institutions offering prepaid accounts.
to conduct an initial regulatory the effective date will not increase costs
flexibility analysis (IRFA) and a final ■ 2. Section 1005.18 is amended by
incurred by small entities relative to the revising all references to ‘‘October 1,
regulatory flexibility analysis (FRFA) of
baseline established by the Prepaid 2017’’ to read ‘‘April 1, 2018’’ in
any rule subject to notice-and-comment
Accounts Final Rule. paragraphs (b)(2)(ix)(D)(1) through (3)
rulemaking requirements, unless the
agency certifies that the rule would not Accordingly, the undersigned hereby and (h).
have a significant economic impact on certifies that this final rule will not have § 1005.19 Internet posting of prepaid
a substantial number of small entities.23 a significant economic impact on a account agreements.
The Bureau also is subject to certain substantial number of small entities.
■ 3. Section 1005.19 is amended by
additional procedures under the RFA
IX. Paperwork Reduction Act revising the reference to ‘‘October 1,
involving the convening of a panel to
2017’’ to read ‘‘April 1, 2018’’ in
consult with small entity Under the Paperwork Reduction Act paragraph (f)(1).
representatives prior to proposing a rule of 1995 (PRA),27 Federal agencies are
for which an IRFA is required.24 ■ 4. In Supplement I to part 1005:
generally required to seek Office of ■ a. Under Section 1005.18—
The undersigned certified that the Management and Budget (OMB)
Effective Date NPRM would not have a Requirements for Financial Institutions
approval for information collection Offering Prepaid Accounts:
significant economic impact on a requirements prior to implementation.
substantial number of small entities and ■ i. In subsection 18(b)(2)(ix)(D)(1)
The collections of information related to Existing Prepaid Account Programs as
that an IRFA was therefore not required.
the Prepaid Accounts Final Rule have of October 1, 2017, the subsection
The Bureau arrived at this conclusion
been previously reviewed and approved heading and paragraph 1 are amended
because the Effective Date NPRM would
delay the effective date of the Prepaid by OMB in accordance with the PRA by revising all references to ‘‘October 1,
Accounts Final Rule, which itself would and assigned OMB Control Number 2017’’ to read ‘‘April 1, 2018’’.
not have a significant economic impact 3170–0014 (Regulation E) and 3170– ■ ii. In subsection 18(b)(2)(ix)(D)(2)
on a substantial number of small 0015 (Regulation Z). Under the PRA, the Existing Prepaid Account Programs as
entities.25 Upon considering relevant Bureau may not conduct or sponsor and, of October 1, 2017 with Unavailable
comments, the Bureau’s conclusion that notwithstanding any other provision of Data, the subsection heading and
the rule will not have a significant law, a person is not required to respond paragraph 1 are amended by revising all
economic impact on a substantial to an information collection unless the references to ‘‘October 1, 2017’’ to read
number of small entities is unchanged. information collection displays a valid ‘‘April 1, 2018’’.
control number assigned by OMB. ■ iii. In subsection 18(b)(2)(ix)(E)(2)
Therefore, a FRFA is not required.26
As discussed above, this final rule Periodic Reassessment, paragraphs 1.i
The Bureau has determined that this through iii are amended by:
delays the effective date of the Prepaid final rule will not have any new or ■ A. Revising all references to ‘‘October
Accounts Final Rule to April 1, 2018. revised information collection
The six-month delay in the effective 1, 2017’’ to read ‘‘April 1, 2018’’.
requirements (recordkeeping, reporting, ■ B. Revising all references to ‘‘October
date will benefit small entities by or disclosure requirements) on covered
providing additional flexibility with 1, 2019’’ to read ‘‘April 1, 2020’’.
entities or members of the public that ■ C. Revising the reference to ‘‘January
20 Public Law 104–21, section 241, 110 Stat. 847,
would constitute collections of 1, 2020’’ to read ‘‘July 1, 2020’’.
864–65 (1996). information requiring OMB approval ■ iv. In subsection 18(b)(2)(ix)(E)(3) Fee
21 5 U.S.C. 601 through 612. The term ‘‘ ‘small under the PRA. Schedule Change, paragraph 1 is
organization’ means any not-for-profit enterprise amended by revising the reference to
which is independently owned and operated and is List of Subjects in 12 CFR Part 1005
‘‘October 1, 2017’’ to read ‘‘April 1,
not dominant in its field, unless an agency
establishes [an alternative definition under notice Banking, Banks, Consumer protection, 2018’’.
and comment].’’ 5 U.S.C. 601(4). The term ‘‘ ‘small Credit unions, Electronic fund transfers, ■ v. In subsection 18(h) Effective Date
governmental jurisdiction’ means governments of National banks, Remittance transfers, and Special Transition Rules for
cities, counties, towns, townships, villages, school Disclosure Provisions, paragraphs 1 and
districts, or special districts, with a population of Reporting and recordkeeping
less than fifty thousand, unless an agency requirements, Savings Associations. 2 are amended by revising all references
establishes [an alternative definition after notice to ‘‘October 1, 2017’’ to read ‘‘April 1,
asabaliauskas on DSK3SPTVN1PROD with RULES
and comment].’’ 5 U.S.C. 601(5). Authority and Issuance 2018’’.
22 5 U.S.C. 601(3). The Bureau may establish an
■ vi. In subsection 18(h) Effective Date
alternative definition after consulting with the SBA For the reasons set forth above, and Special Transition Rules for
and providing an opportunity for public comment. Regulation E, 12 CFR part 1005, as
Id.
Disclosure Provisions, paragraph 6
23 5 U.S.C. 601 through 612.
amended November 22, 2016, at 81 FR introductory text and paragraph 6.i are
24 5 U.S.C. 609. 83934, is further amended as follows: amended by:
25 81 FR 83934, 84308 (Nov. 22, 2016). ■ A. Revising all references to ‘‘October
265 U.S.C. 605(b). 27 44 U.S.C. 3501 et seq. 1, 2017’’ to read ‘‘April 1, 2018’’.
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![Federal Register / Vol. 82, No. 78 / Tuesday, April 25, 2017 / Rules and Regulations 18981
■ B. Revising the reference to DEPARTMENT OF TRANSPORTATION Authority for This Rulemaking
‘‘November 1, 2017’’ to read ‘‘May 1,
2018’’. Federal Aviation Administration The FAA’s authority to issue rules
regarding aviation safety is found in
■ C. Revising the reference to ‘‘October Title 49 of the United States Code.
1, 2018’’ to read ‘‘April 1, 2019’’. 14 CFR Part 71
Subtitle I, Section 106 describes the
■ D. Revising the reference to ‘‘October authority of the FAA Administrator.
[Docket No. FAA–2017–0054; Airspace
1, 2019’’ to read ‘‘April 1, 2020’’. Docket No. 17–ANM–2] Subtitle VII, Aviation Programs,
■ vii. In subsection 18(h) Effective Date describes in more detail the scope of the
and Special Transition Rules for Amendment of Class D and Class E agency’s authority. This rulemaking is
Disclosure Provisions, paragraph 6.ii is Airspace; Aspen, CO; and Pueblo, CO promulgated under the authority
revised to read as follows: described in Subtitle VII, Part A,
AGENCY: Federal Aviation Subpart I, Section 40103. Under that
Supplement I to Part 1005—Official Administration (FAA), DOT. section, the FAA is charged with
Interpretations ACTION: Final rule, technical prescribing regulations to assign the use
* * * * * amendment. of airspace necessary to ensure the
safety of aircraft and the efficient use of
Section 1005.18—Requirements for SUMMARY: This action amends the legal airspace. This regulation is within the
Financial Institutions Offering Prepaid description of the Class E airspace scope of that authority as it removes
Accounts designated as an extension, at Aspen NOTAM information in Class D
Pitkin County/Sardy Field, Aspen, CO, extension airspace and amends the
* * * * * and Pueblo Memorial Airport, Pueblo, airport’s geographic coordinates in
18(h) Effective Date and Special CO, eliminating the Notice to Airmen associated Class D and Class E airspace
Transition Rules for Disclosure (NOTAM) part-time status. This action for the above noted airports in Aspen,
Provisions also updates the geographic coordinates CO, and Pueblo, CO.
of these airports in the associated Class
* * * * * D and E airspace areas to match the History
■ 6. Account information not available FAA’s current aeronautical database. The FAA Aeronautical Information
on April 1, 2018. * * * This action does not affect the charted Services branch found the Class E
boundaries or operating requirements of airspace designated as an extension for
ii. Summary totals of fees. A financial the airspace.
institution must display a summary Aspen Pitkin County/Sardy Field,
DATES: Effective 0901 UTC, June 22, Aspen, CO, and Pueblo Memorial
total of the amount of all fees assessed
by the financial institution on the 2017. The Director of the Federal Airport, Pueblo, CO, as published in
consumer’s prepaid account for the Register approves this incorporation by FAA Order 7400.11A, Airspace
prior calendar month and for the reference action under title 1, Code of Designations and Reporting Points, does
calendar year to date pursuant to Federal Regulations, part 51, subject to not require part-time status. Also, after
§ 1005.18(c)(5) beginning April 1, 2018. the annual revision of FAA Order a review, the FAA found the geographic
If, on April 1, 2018, the financial 7400.11 and publication of conforming coordinates referenced in the airspace
institution does not have readily amendments. legal descriptions under Class D and
accessible the data necessary to ADDRESSES: FAA Order 7400.11A, Class E airspace areas for Aspen Pitkin
calculate the summary totals of fees for Airspace Designations and Reporting County/Sardy Field, Aspen, CO, and
the prior calendar month or the calendar Points, and subsequent amendments can Pueblo Memorial Airport, Pueblo, CO
year to date, the financial institution be viewed on line at http:// do not match the FAA’s current
may provide the summary totals using www.faa.gov/air_traffic/publications/. aeronautical database. This rulemaking
the data it has until the financial For further information, you can contact makes these updates.
institution has accumulated the data the Airspace Policy Group, Federal Class D and Class E airspace
necessary to display the summary totals Aviation Administration, 800 designations are published in paragraph
as required by § 1005.18(c)(5). That is, Independence Avenue SW., 5000, 6002, 6004, and 6005,
the financial institution would first Washington, DC, 20591; telephone: 202– respectively, of FAA Order 7400.11A
display the monthly fee total beginning 267–8783. The Order is also available dated August 3, 2016, and effective
on May 1, 2018 for the month of April, for inspection at the National Archives September 15, 2016, which is
and the year-to-date fee total beginning and Records Administration (NARA). incorporated by reference in 14 CFR
on April 1, 2018, provided the financial For information on the availability of part 71.1. The Class D and Class E
institution discloses that it is displaying this material at NARA, call 202–741– airspace designations listed in this
the year-to-date total beginning on April 6030, or go to http://www.archives.gov/ document will be published
1, 2018 rather than for the entire federal_register/code_of_federal- subsequently in the Order.
calendar year 2018. On January 1, 2019, regulations/ibr_locations.html.
FAA Order 7400.11, Airspace Availability and Summary of
financial institutions must begin
Designations and Reporting Points, is Documents for Incorporation by
displaying year-to-date fee totals for
published yearly and effective on Reference
calendar year 2019.
September 15.
asabaliauskas on DSK3SPTVN1PROD with RULES
* * * * * This document amends FAA Order
FOR FURTHER INFORMATION CONTACT: Tom 7400.11A, Airspace Designations and
Dated: April 19, 2017. Clark, Federal Aviation Administration, Reporting Points, dated August 3, 2016,
Richard Cordray, Operations Support Group, Western and effective September 15, 2016. FAA
Director, Bureau of Consumer Financial Service Center, 1601 Lind Avenue SW., Order 7400.11A is publicly available as
Protection. Renton, WA 98057; telephone (425) listed in the ADDRESSES section of this
[FR Doc. 2017–08341 Filed 4–24–17; 8:45 am] 203–4511. document. FAA Order 7400.11A lists
BILLING CODE 4810–AM–P SUPPLEMENTARY INFORMATION: Class A, B, C, D, and E airspace areas,
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Document Created: 2017-04-25 02:18:42
Document Modified: 2017-04-25 02:18:42
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule; official interpretation; delay of effective date. | |
| Dates | The amendments in this final rule are effective on April 1, 2018. The effective date of the final rule published on November 22, 2016 (81 FR 83934) is delayed from October 1, 2017, to April 1, 2018. The effective date for the addition of Sec. 1005.19(b) remains October 1, 2018. | |
| Contact | Thomas L. Devlin and Yaritza Velez, Counsels, and Kristine M. Andreassen, Senior Counsel, Office of Regulations, at 202-435-7700. | |
| FR Citation | 82 FR 18975 | |
| RIN Number | 3170-AA69 | |
| CFR Citation | 12
CFR
1005 12 CFR 1026 | |
| CFR Associated | Banking; Banks; Consumer Protection; Credit Unions; Electronic Fund Transfers; National Banks; Remittance Transfers; Reporting and Recordkeeping Requirements and Savings Associations |
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