11658 Federal Register / Vol. 84, No. 60 / Thursday, March 28, 2019 / Proposed Rules

FIGURE 1 TO PARAGRAPH (g) OF THIS AD—COMPLIANCE TIMES

Airplane flight hours Compliance time

For airplanes with 4,400 flight hours or less since the last inspection Within 1,760 flight hours from the effective date of this AD. done in accordance with Maintenance Review Board (MRB) Task 320100–203. For airplanes with more than 4,400 flight hours since the last inspection Within 880 flight hours from the effective date of this AD. done in accordance with MRB Task 320100–203.

(h) No Alternative Actions or Intervals Canada; Widebody Customer Response ADDRESSES: You may file comments After the existing maintenance or Center North America toll-free telephone identified by the docket number DOT– inspection program has been revised as 1–866–538–1247 or direct-dial telephone OST–2019–0025 by any of the following required by paragraph (g) of this AD, no 1–514–855–2999; fax 514–855–7401; email methods: [email protected]; internet http:// alternative actions (e.g., inspections) or Æ intervals may be used unless the actions or www.bombardier.com. You may view this Federal eRulemaking Portal: Go to intervals are approved as an alternative service information at the FAA, Transport http://www.regulations.gov and follow method of compliance (AMOC) in Standards Branch, 2200 South 216th St., Des the online instructions for submitting accordance with the procedures specified in Moines, WA. For information on the comments. paragraph (i)(1) of this AD. availability of this material at the FAA, call Æ 206–231–3195. Mail: Docket Management Facility, (i) Other FAA AD Provisions U.S. Department of Transportation, 1200 Issued in Des Moines, Washington, on New Jersey Ave. SE, Room W12–140, The following provisions also apply to this March 20, 2019. AD: Washington, DC 20590–0001. Michael Kaszycki, (1) Alternative Methods of Compliance Æ Hand Delivery or Courier: West (AMOCs): The Manager, New York ACO Acting Director, System Oversight Division, Building Ground Floor, Room W12–140, Aircraft Certification Service. Branch, FAA, has the authority to approve 1200 New Jersey Ave. SE, between 9:00 AMOCs for this AD, if requested using the [FR Doc. 2019–05896 Filed 3–27–19; 8:45 am] a.m. and 5:00 p.m. ET, Monday through procedures found in 14 CFR 39.19. In BILLING CODE 4910–13–P accordance with 14 CFR 39.19, send your Friday, except Federal Holidays. request to your principal inspector or local Æ Fax: (202) 493–2251. Flight Standards District Office, as DEPARTMENT OF TRANSPORTATION Instructions: You must include the appropriate. If sending information directly agency name and docket number DOT– to the manager of the certification office, Office of the Secretary send it to ATTN: Program Manager, OST–2019–0025 or the Regulatory Continuing Operational Safety, FAA, New Identification Number (RIN) for the York ACO Branch, 1600 Stewart Avenue, 14 CFR Part 250 rulemaking at the beginning of your Suite 410, Westbury, NY 11590; telephone comment. All comments received will 516–228–7300; fax 516–794–5531. Before [Docket No. DOT–OST–2019–0025] be posted without change to http:// using any approved AMOC, notify your www.regulations.gov, including any appropriate principal inspector, or lacking a RIN No. 2105–AE67 personal information provided. principal inspector, the manager of the local flight standards district office/certificate Modernizing Payment of Denied Privacy Act: Anyone is able to search holding district office. Boarding Compensation the electronic form of all comments (2) Contacting the Manufacturer: For any received in any of our dockets by the requirement in this AD to obtain corrective AGENCY: Office of the Secretary (OST), name of the individual submitting the actions from a manufacturer, the action must Department of Transportation (DOT). comment (or signing the comment if be accomplished using a method approved ACTION: Notice of proposed rulemaking submitted on behalf of an association, a by the Manager, New York ACO Branch, (NPRM). business, a labor union, etc.). You may FAA; or Transport Canada Civil Aviation review DOT’s complete Privacy Act (TCCA); or Bombardier, Inc.’s TCCA Design SUMMARY: The Department of Approval Organization (DAO). If approved by statement in the Federal Register the DAO, the approval must include the Transportation is proposing to amend published on April 11, 2000 (65 FR DAO-authorized signature. its rule on oversales to allow airlines to 19477–78), or you may visit http:// use electronic payment medias that are DocketsInfo.dot.gov. (j) Related Information equivalent to cash as an option in lieu Docket: For access to the docket to (1) Refer to Mandatory Continuing of check or cash payment to compensate read background documents or Airworthiness Information (MCAI) Canadian passengers who are denied boarding AD CF–2018–31, dated November 28, 2018, comments received, go to http:// involuntarily due to oversales; and www.regulations.gov or to the street for related information. This MCAI may be allow airlines to provide a mandatory found in the AD docket on the internet at address listed above. Follow the online http://www.regulations.gov by searching for written denied boarding notice in an instructions for accessing the docket. and locating Docket No. FAA–2019–0185. oversales situation by electronic means FOR FURTHER INFORMATION CONTACT: (2) For more information about this AD, upon passengers’ consent, in lieu of a contact Darren Gassetto, Aerospace Engineer, paper copy. This action would not Clereece Kroha or Blane A. Workie, Mechanical Systems and Administrative impact airlines’ ability to offer a Office of Aviation Enforcement and Services Section, FAA, New York ACO consumer who is denied boarding Proceedings, U.S. Department of Branch, 1600 Stewart Avenue, Suite 410, involuntarily a choice between flight Transportation, 1200 New Jersey Ave. Westbury, NY 11590; telephone 516–228– vouchers or credits and the required SE, Washington, DC 20590, 202–366– 7323; fax 516–794–5531; email 9-avs-nyaco- denied boarding compensation. 9342 (phone), 202–366–7152 (fax), [email protected]. [email protected] or DATES: Comments should be filed by (3) For service information identified in [email protected] (email). this AD, contact Bombardier, Inc., 400 Coˆte- May 28, 2019. Late-filed comments will Vertu Road West, Dorval, Que´bec H4S 1Y9, be considered to the extent practicable. SUPPLEMENTARY INFORMATION:

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Executive Summary anticipated are expected to be beneficial negotiable check.’’ In doing so, the CAB to both airlines and passengers, and rebutted a carrier’s argument that the 1. Purpose of the Deregulatory Action modest in magnitude. undefined term ‘‘draft’’ can be The purpose of this action is to interpreted to include carrier-issued Background explore additional means for U.S. and flight vouchers. The CAB reiterated that foreign air carriers to compensate To compensate for ‘‘no-shows,’’ many one of the main goals of the oversales passengers who are involuntarily denied airlines overbook their scheduled flights rule was to provide ‘‘prompt, effective, boarding in an oversales situation. by selling more confirmed reservations and adequate’’ compensation to bumped Currently, carriers must provide Denied for a flight than they have seats. At passengers and pointed out that the Boarding Compensation (DBC) by times, it may also be necessary to intended results of the rule, one of issuing cash or checks. This NPRM involuntarily deny boarding to which being that DBC must be paid by proposes to allow carriers to use passengers holding confirmed ‘‘cash or cash equivalent’’, are clear and electronic payment methods in lieu of reservations to comply with safety or that the intent had been uniformly cash or check DBC payments. This operational requirements, or to make interpreted by the industry since 1967. NPRM also proposes to allow U.S. and room for Federal Air Marshall, or other The phrase ‘‘cash or immediately foreign air carriers to provide a law enforcement personnel. The negotiable check’’ remains to be the rule mandatory written notice to consumers Department’s regulation on oversales, 14 as of today. explaining DBC and boarding priorities CFR part 250, establishes the minimum The Department recognizes that the in electronic form. Currently, carriers standards for the treatment of airline means of money transfer offered by the are required to provide this notice in passengers holding confirmed banking systems and other financial print format. reservations who are involuntarily institutions have evolved over the last denied boarding (‘‘bumped’’). Among few decades. In 1984, when the CAB Summary of the Major Provisions of the other requirements, 14 CFR 250.8 required that DBC must be paid by cash Deregulatory Action in Question requires that U.S. and foreign air or check, an immediately negotiable This NPRM proposes to amend the carriers must offer compensation in the check was likely the only form of cash following provisions in 14 CFR part 250: form of cash or immediately negotiable equivalent that was widely available (1) 14 CFR 250.5 Amount of denied check to bumped passengers. The and accessible to the public. Since then, boarding compensation for passengers amount of the cash or negotiable check prepaid access payments 1 have been denied boarding involuntarily. depends on the price of the airline introduced to and accepted by many This provision would be amended to ticket, whether the passenger was merchants. In addition, in recent years, incorporate the proposal of allowing bumped from a domestic flight or electronic fund transfer 2 services, cash equivalent electronic payments for international flight, and the projected previously only available for transfers compensating passengers who are length of the delay caused by the between financial institutions, is now denied boarding involuntarily. bumping. Under DOT rules, if a available for transferring money from (2) 14 CFR 250.8 Denied boarding passenger is bumped involuntarily, the the account holder of a bank to an compensation. cash or check must be tendered on the individual consumer. Further, various This provision would be amended to day and place the denied boarding digital money transfer networks offered incorporate the proposal of allowing occurs, or, under certain circumstances, by non-banking business entities, such cash equivalent electronic payments for by mail or other means within 24 hours. as PayPal, Zelle, Square Cash, Google The Department’s oversales rule was DBC payments, and specify certain Wallet, and Venmo, are becoming more initially promulgated by its predecessor, conditions for these electronic payments and more popular among consumers the Civil Aeronautics Board (CAB) in to ensure that they are indeed due to their accessibility via mobile 1967 (32 FR 11939, Aug. 18, 1967). In equivalent to cash. phone applications. (3) 14 CFR 250.9 Written explanation that final rule, carriers were required to As a result of the aforementioned of denied boarding compensation and tender to a passenger eligible for DBC, money storage and transfer technology boarding priorities, and verbal on the day and place the denied evolution, various airlines have urged boarding occurs, a ‘‘draft’’ for the notification of denied boarding the Department to consider allowing appropriate amount. The rule further compensation. them to provide DBC payments to provides that when a carrier arranges This provision sets forth the written passengers via a prepaid card or other alternate means of transportation that statement that carriers must provide to forms of electronic funds. In 2011, in departs before the draft can be prepared passengers regarding involuntarily the Department’s final rule titled and tendered to the passenger, tender denied boarding. This provision would ‘‘Enhancing Airline Passenger be amended to incorporate the proposal shall be made by mail or other means within 24 hours after the time the to allow carriers to provide the written 1 ‘‘Prepaid access’’ is defined as access to funds statement by electronic means upon denied boarding occurs. In 1984, the or the value of funds that have been paid in passengers’ consent. The written CAB issued an interpretive amendment advance and can be retrieved or transferred at some statement would also be amended to to the rule to make it clear that point in the future through an electronic device or passengers involuntarily denied vehicle, such as a card, code, electronic serial incorporate the proposal of allowing number, mobile identification number, or personal cash equivalent electronic DBC boarding must be paid by cash or an identification number. See 31 CFR 1010.100(ww). payments. immediately negotiable check (49 FR 2 ‘‘Electronic fund transfer’’ means any transfer of 43622, Oct. 31, 1984). The amended rule funds that is initiated through an electronic 2. Summary of Costs and Benefits retains the original rule’s requirement terminal, telephone, computer or magnetic tape for purpose of ordering, instructing, or authorizing a The proposed rule would provide regarding the timing of DBC payment, financial institution to debit or credit a consumer’s regulatory relief to airlines, while that DBC must be paid at the time and account. The term includes, but is not limited to: maintaining aviation consumer place of denied boarding, or tendered (i) Point-of-sale transfers; (ii) Automated teller protections for passengers. The rule within 24 hours after the denied machine transfers; (iii) Direct deposits or withdrawals of funds; (iv) Transfers initiated by would not have a significant economic boarding occurs. However, it replaced telephone; and (v) Transfers resulting from debit impact on airlines or their passengers, the word ‘‘draft’’ as appeared in the rule card transactions, whether or not initiated through and those economic impacts that are with the phrase ‘‘cash or immediately an electronic terminal. See 12 CFR 1005.3.

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Protections’’ (76 FR 23109, Apr. 25, passenger(s) would be subject to Improvement of regulations is a 2011), we responded to some carriers’ involuntarily denied boarding in an continuous focus for the Department. As comments that the Department should oversales situation, if necessary. This a part of that effort, we periodically allow the use of prepaid cards 3 for DBC notice must be provided verbatim to any review existing regulations to ensure payments. In our response, we passenger who was involuntarily denied that they continue to meet the needs for acknowledged the convenience and boarding, immediately following the which they originally were designed, security features offered by electronic denied boarding, and to any other remain cost-effective and cost-justified. funds, but declined to implement a rule persons, upon request, at (1) all airport As such, and in response to A4A’s allowing use of electronic funds as a ticket selling positions that are comment, we undertake this rulemaking substitute for cash or check payments exclusively or jointly under the carrier’s to explore the subject of eliminating the because we had not had the opportunity control, and (2) at boarding locations requirement for paper-based notice and to fully examine the potential benefits (e.g., gates). allowing carriers to provide the notice and limitations of the use of electronic For several decades, carriers complied electronically. funds in that rulemaking proceeding. with this requirement by preprinting a Notice of Proposed Rulemaking We stated that we may explore this large quantity of pamphlets containing issue in future rulemaking. Further, in the written notice as prescribed by the 1. Methods of DBC Payment October 2017, the Department published rule, and distributing the pamphlets to As stated by CAB in 1984, one goal of a Notification of Regulatory Review (82 each station so they would be available the oversales rule is to ensure that FR 45750, October 2, 2017), seeking on demand at the ticket counters and carriers provide ‘‘prompt, effective, and public input on existing rules and other gates. In recent years, some carriers adequate’’ compensation to bumped agency actions that are good candidates began to use computer terminals at the passengers. In light of the technological for repeal, replacement, suspension, or ticket counters and gates to generate advancements that have taken place in modification. Among the comments printed notices on demand. By doing so, money transfer, we ask the public to received, Airlines for America (A4A), carriers may avoid the cost of comment on whether expanding the the trade association for most large U.S. preprinting a large amount of pamphlets scope of ‘‘cash equivalent’’ beyond an air carriers, suggests that the that may be rendered obsolete on a later immediately negotiable check would Department should eliminate the date because the regulatorily mandated still result in ‘‘prompt, effective, and requirement that DBC be paid in cash or DBC maximum amounts contained in adequate’’ compensations to bumped check, and allow airlines to make DBC the notice are subject to inflation passengers. Is there a significant number payments by electronic transfer, credit adjustments. It also avoids the of passengers who do not have access to or flight vouchers. A4A avers that the possibility of running out of or electronic funds and can only access requirement of cash or check DBC misplacing the pamphlets at a station so DBC payments by cash or check? If so, payment is obsolete in today’s society all agents are able to locate and produce how can the Department ensure that all where electronic payments have become the document on a short notice. passengers affected by involuntary the norm. By this NPRM, we fulfill our In comments submitted to the denied boarding, including those stated intention in the 2011 final rule aforementioned 2017 regulatory reform passengers who do not have access to and take the opportunity to examine docket, A4A states that the rule was electronic funds, receive ‘‘prompt and this subject fully, including issues originally implemented long before the effective’’ DBC payments? In the event raised by A4A in its regulatory review internet and email existed, when the Department finalizes a rule to allow comment. airlines had to rely on paper-based The CAB’s 1967 final rule establishing carriers to provide DBC payments in forms of communication with the oversales regulation also included a electronic formats in lieu of cash or consumers. A4A asserts that airlines’ provision that requires greater public check payments, should the rule take compliance with this paper-based notice disclosure of boarding procedures and effect right away or is there a need for requirement creates unnecessary passengers’ rights in the event of an a sunset period for the cash and check logistical challenges and ignores the oversold flight. In a 1978 final rule that payments mandate to be eliminated? greater efficiency and more strengthened this disclosure How long should the sunset period be? environmentally beneficial ability to Since the issuance of the 2011 final requirement, CAB stated that its deliver such notification to consumers rule in which the Department declined adoption of a more stringent public electronically. According to A4A, to address the issue of allowing disclosure requirement was intended to airlines are required to expend alternative DBC payment methods, the afford passengers, who were otherwise considerable resources to print and Department has engaged in discussions generally ignorant of the rule, the distribute these written statements to with the airline industry on this matter. opportunity to take steps to protect consumers, including destroying These discussions with stakeholders themselves from involuntary bumping existing notices and reprinting such have provided valuable information for or to verify that carriers have in fact statements each time the Department the Department to preliminarily assess acted in accordance with the stated adjusts the amount of denied boarding the benefits and limitations of electronic priorities. See 43 FR 24277, at 24281. compensation it requires. A4A funds. With respect to benefits, we Under the current rule, carriers must recommends that the Department recognize that for security and provide a written notice explaining the amend the regulation to allow carriers to administrative reasons, most, if not all, computation of DBC and the carrier’s provide passengers the involuntary carriers may prefer to tender DBC in the boarding priority in determining which denied boarding information form of checks instead of cash. We explanation in an electronic format in acknowledge that there are situations in 3 The comments submitted by these carriers use the term ‘‘debit cards.’’ A debit card is linked to a order to modernize the delivery of such which there is no time for the passenger specific bank account, and in contrast, a prepaid information to consumers, to better to wait for a check or the carrier is card stores a specific amount of money prepaid and ensure up-to-date information is unable to issue the check immediately stored in a media and is not linked to a bank provided, reduce the cost of document following the denied boarding. In these account. For the purpose of providing DBC, we believe a prepaid card is the intended form of destruction as carriers destroy outdated situations, carriers are required to mail payment referred to by these commenters. documents, and eliminate paper waste. a check within 24 hours, but as a

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practical matter, consumers oftentimes check instrument; some cards impose carriers be required to extend the would not have access to the money for various fees on users; and when validity period of the cards to match many days because of the time needed withdrawing cash with the cards at that of a check? Are there any technical for the checks to arrive at their ATMs, there are often withdrawal issues with extending a card’s validity designated addresses by mail, the limits, usage fees, and other conditions period to six months or more? Are there likelihood that the bumped passengers attached. For commonly known any validity periods imposed on funds may be traveling and not at their electronic fund transfer methods, we are transferred via platforms owned and residences to receive the checks, and the not aware of any fees imposed on the operated by other intermediary entities time necessary for depositing the checks recipients of the funds. With respect to such as PayPal? In relation to the into their bank accounts. In contrast to fees imposed on the providers of the validity period of the funds, if there is checks, electronic funds oftentimes are funds (the airlines), we lack information any value left at the end of the validity much easier ways for consumers to on whether they exist and, if so, in what period, should the carriers be required access the money. For example, prepaid format. We welcome public comments to provide the fund to consumers upon cards provide consumers a convenient on this issue. As our goal is to find request? means of payment that are equivalent to way to immediately withdraw cash from (2) Amount of DBC Issued by Electronic cash or check and, at the same time, an automated teller machine (ATM) or Methods allow them to use the cards for increases efficiency and convenience, in purchases at retail stores and in online this NPRM, we propose certain 14 CFR 250.5 specifies the amount of transactions. Similarly, electronic fund conditions that carriers must meet if DBC a carrier must provide to an transfers via a banking system or they choose to offer electronically stored eligible passenger following an through an intermediary platform, such or transferred funds in lieu of cash or involuntary denied boarding incident. as PayPal, provides consumers access to check DBC payments. These conditions The amount of DBC varies depending on the money in a much faster and are intended to eliminate characteristics whether the flight from which the convenient manner. These funds are or fees associated with electronically passenger was bumped was a domestic also available for online transactions. stored or transferred funds that may or international flight, the expected From the carriers’ perspective, issuing render the payment less than its value delay caused by the denied boarding, DBC in electronic formats can facilitate in U.S. dollars. We seek comments on and the amount of fare paid by the a computerized and centralized DBC whether these proposed conditions are passenger. In addition to the prescribed calculation formula, section 250.5 management system, eliminate the need necessary to ensure passengers’ rights to specifies that carriers are not required to to manually issue and mail checks, adequate and prompt DBC payments, pay above a certain amount though increase efficiency, and decrease the and whether instead of imposing these carriers can always choose to do so. In chance of fund mismanagement. For conditions, a performance-based this NPRM, we are not proposing any purpose of this rulemaking, we invite standard that merely requires the DBC changes to the methods of calculating the public as well as experts in the payment to be ‘‘cash equivalent’’ would the amount of DBC or the amount above banking industry to comment on any be sufficient to achieve our goal. Would which carriers are not required to pay other benefits of using these electronic a performance-based standard without (currently at $675 and $1,350). forms of payment to issue DBC. Are specific conditions as the ones proposed here be more appropriate to adapt to the However, considering that some prepaid there any specific distinctions among funds and/or electronically transferred prepaid cards, and various electronic ever-changing technology in fund payment and transfer? Would a funds may incur usage fees for fund transfer platforms (including consumers when they attempt to access directly transferring funds to the performance-based standard without conditions more likely cause confusion cash via ATMs, we are proposing to passengers’ bank accounts and to require carriers to take into account accounts with intermediary transfer and uncertainty regarding compliance among carriers? these usage fees when determining the services such as PayPal) that are amount that must be available from the pertinent in making a form or forms of (1) Validity Period and Residual Value electronic funds. For example, DBC payment more preferable than The current rule does not have a withdrawing cash from an ATM with a others? What type or types of payment specific minimum validity period prepaid card may incur usage charges. are most likely accessible to the majority requirement for DBC payments in the Some bank-owned ATMs charge usage of consumers? Should the carriers be form of checks. According to Article 4 fees solely to users who are not required to provide payments in cash or of the Uniform Commercial Code, a customers of the bank where the ATM check if the offer of electronic payments bank receiving the check may, but is not is installed; some ATM usage fees are are rejected by a passenger for the obligated to, pay a check that is more charged to all users. Further, many reason that it is inaccessible to that than six months old. See U.C.C. § 4–404 ATMs impose a limitation on the individual? What are the estimated (2002). As many prepaid cards have an amount of cash one can withdraw at a administrative costs to carriers for expiration date, in the NPRM, we time or daily, and as a result, a managing these electronic payment propose that to be considered cash consumer may have to make several systems, including administration fees equivalent, an electronic fund’s validity withdrawals to access the full amount of and services fees paid to financial period must be no less than 90 days DBC and therefore, paying multiple institutions or intermediary fund from the date the passenger receives the usage fees. As such, if a passenger is transfer entities, if any? How are these fund, or from the date the fund is entitled to a DBC payment of $1,350 that costs compared to the cost of managing activated, if activation is required, is provided in a prepaid card, and the cash or check DBC payments at both whichever gives the longer validity card provided to the passenger has a headquarters and station levels? period. We seek information on what $300 limit on the amount that can be With respect to limitations of the common validity period of widely withdrawn at one time and a $5 fee for electronic DBC payments, we found available electronic funds, such as each withdrawal, then the carrier would that, compared to cash or check prepaid cards, are, if any. If it is shorter need to increase the amount of DBC payments, many prepaid cards have than the typical check’s validity period payment on the card by $25. The shorter validity periods than a typical (no longer than six months), should the example of $25 or ATM usage fees

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would cover up to five withdrawals at as PayPal, are there any convenient group of merchants and they usually $5 per withdrawal. Are carriers able to ways to get cash from the account? If cannot be used to withdraw cash at an provide prepaid cards that can be used not, is the lack of easy and immediate ATM. A typical example of closed-loop at most ATMs without usage charges access to cash a big concern for card is a gift card for a particular store (e.g., carriers prepay for the anticipated consumers? Are there fees charged to brand. In the NPRM, we propose that charge)? If not, is there a reasonable the recipients for the most commonly the prepaid card provided to consumers amount to cover withdrawal service fees used means of electronic fund transfer? as DBC payment must be an open-loop for most instances, or would a Should the Department prescribe the card so consumers are not restricted determination need to be made on a specific means of electronic fund with a particular merchant when using case by case basis? transfer that carriers may use to pay the fund for purchase and consumers In addition to the amount specific to DBC, or, is a performance-based are able to access cash with the card if cover ATM usage fees, our proposal also standard within which carriers are free so preferred. Furthermore, we note that prohibits carriers from imposing on to choose the preferred means of most ATMs are connected to interbank consumers any other usage-related or electronic fund transfer a better option? networks, enabling consumers to withdraw and deposit money from any maintenance-related charges for the (3) Timeliness of Issuing DBC by 4 machines not belonging to the bank prepaid cards. Our proposal does not Electronic Means intend to require carriers to cover all the where they have their accounts or not in fees that can be charged to a prepaid To ensure that passengers who are the country where their accounts are card, such as cash reload fee, or card-to- denied boarding involuntarily receive held (enabling cash withdrawals in local card transfer fee, but we intend to the DBC payments that they are entitled currency). As such, we are also require carriers to cover any fees that a to in a timely manner, the current rule, including in our proposal prepaid card consumer must pay in order to maintain in section 250.8 requires that the DBC payments that allow consumers to the validity of the cards.5 Examples of payment must be tendered to passengers withdraw cash from any major these fees are weekly or monthly on the day and at the place where the interbank network that is widely maintenance fees, non-activity fees, denied boarding occurred, or, in the available, such as NYCE, PULSE, PLUS, balance inquiry fees, and customer event that carriers arrange alternate and Cirrus, as a permissible type of service call surcharges. Our goal is to transportation that departs before the payments for DBC. We ask for ensure that passengers receive the same DBC payment can be prepared and comments on whether our proposal is tendered, carriers must tender the amount of DBC payment through sufficient to ensure that the electronic payment by mail or other means within electronic format as if they are paid by payments are cash equivalent and can 24 hours of the denied boarding. In this cash or check. We seek public comment easily be used to withdraw cash at NPRM, we are proposing to maintain on commonly charged fees that carriers airports and other locations. this requirement with respect to DBC should be responsible for in order to payments made by cash, check, and (5) Disclosure and Compliance With achieve that goal. cash equivalent provided electronically. Regulation E Further, because DBC payments often We are proposing that tendering The Consumer Financial Protection occur in the context of international payment within 24 hours of the denied Bureau (CFPB) rule implementing the travel, we specifically note that our boarding may include but is not limited Electronic Fund Transfer Act, 12 CFR proposed additional amount for DBC to mailing a check or prepaid card to a part 1005 (Regulation E),6 along with its payment by electronic format to cover passenger within 24 hours of the denied appendixes (Model Disclosure Clauses usage fees such as ATM fees does not boarding or initiating a fund transfer to and Forms and CFPB Official intend to cover any foreign exchange the passenger’s account within 24 hours Interpretations), prescribes various fees that usually occur when a card of the denied boarding. Is this 24-hour disclosure requirements for, among issued by a U.S. entity is used at an requirement reasonable and adequate other things, ‘‘electronic fund ATM overseas for cash withdrawal or for the purpose of tendering electronic transfers’’ 7 and ‘‘general-use prepaid for purchase in foreign currency. This is cash equivalent? card.’’ 8 To the extent that a carrier consistent with the current rule that (4) Type of Electronic Funds and Their requires cash or cash equivalent to be 6 The Electronic Fund Transfer Act establishes provided in U.S. dollars and does not Usage in Commerce the basic rights, liabilities, and responsibilities of require the DBC amount to cover any In this NPRM, we are proposing to consumers who use electronic fund transfer and foreign exchange fees should the remittance transfer services and of financial allow any type of electronic payment institutions or other persons that offer these consumers wish to exchange the U.S. that is considered ‘‘cash equivalent.’’ To services. The primary objective of the Act and 12 dollars into another currency. be equivalent to cash, we consider that CFR part 1005 is the protection of individual Under the proposal, DBC payments the payment must be widely accepted in consumers engaging in electronic fund transfers and that are transferred electronically to a remittance transfers. See 12 CFR 1005.1. commerce for purchases. For example, a 7 For Regulation E’s definition for ‘‘electronic passenger’s bank account would prepaid card can be an open-loop or fund transfer,’’ see FN 2. presumably become accessible for cash closed-loop card. An open-loop prepaid 8 12 CFR part 1005 defines ‘‘general-use prepaid withdrawal with the passenger’s own card is a card with a credit card network card’’ as a card, code, or other device that is issued bank debit card. For electronic fund on a prepaid basis primarily for personal, family, logo on it that can be used for purchase or household purposes to a consumer in a specified transfers to intermediary accounts, such at any location that accepts that brand. amount, whether or not that amount may be Examples of the most commonly increased or reloaded, in exchange for payment; 4 Examples of common fees for prepaid cards can accepted credit card networks are Visa, and redeemable upon presentation at multiple, be found on a web page posted on the Consumer unaffiliated merchants for goods or services, or Financial Protection Bureau’s website lists. See, MasterCard, American Express, and usable at automated teller machines. See 12 CFR https://www.consumerfinance.gov/consumer-tools/ Discover. All prepaid cards that bear 1005.20(a)(3). Further, the rule specifically states prepaid-cards/understand-fees/. one of the major networks’ logos can that its requirements covering ‘‘general-use prepaid 5 Because we are proposing that an electronic also be used at most ATMs for cash cards’’ exclude any cads, code, or device that is not cash equivalent payment should be valid for at least marketed to the general public. As such, it is our 90 days, carriers would be responsible for 90 days withdrawal. In contrast, a closed-loop preliminary understanding that carrier-issued DBC of maintenance fees for a card to the extent there card is a card that can only be used for payment in the form of prepaid card may not be is such a fee. purchase at a specific merchant or a covered by 12 CFR 1005.20 if it is not marketed to

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provides DBC payment by a method payments. For clarification purpose, we are normally not subject to involuntary within the meaning of ‘‘electronic fund propose to revise the rule text in section denied boarding as airlines boarding transfer’’ as defined in Regulation E, we 250.5(c) to make it clear that airlines priority rules often take into account a expect that carriers (which are under the may offer consumers the option of passenger’s disability, and the current Department’s jurisdiction) and/or the choosing either free or reduced rate air rule does not require carriers to provide financial institutions or other entities transportation or the required DBC the written notice in an accessible they use to provide or facilitate the DBC payment. format for these passengers. However, payments (which may fall under the 2. Denied Boarding Notice in Electronic we note that the Department’s rule jurisdiction of CFPB) comply with the Format implementing the Air Carrier Access requirements of Regulation E. Act, 14 CFR part 382, requires that Consistent with the goal of Regulation E The requirement for carriers to carriers’ primary websites must conform and our authority under 49 U.S.C. 41712 provide a written notice regarding to certain accessibility standards 9 by against unfair and deceptive practices, denied boarding rights was included in December 12, 2016, and that in this NPRM, we propose to require the original oversales final rule in 1978. requirement would cover the denied that carriers provide conspicuous The stated goal is to ensure that boarding notice published on carriers’ written disclosure of all material passengers affected by oversales websites. We view this as an additional restrictions and conditions associated understand what they are entitled to benefit of allowing carriers to provide with using and maintaining the card at and are able to make an informed choice denied boarding notice electronically— the time the card is tendered to the between accepting DBC or any other by providing the notice in accessible passenger. Examples of such conditions compensation offers carriers may electronic format, passengers with would be expiration date, activation present. In this NPRM, we propose to disabilities who under the current rule requirement, pin requirement, ATM allow carriers to provide this notice may not have access to the content of withdrawal fees, daily withdrawal electronically, such as by display on an the notice would gain access without amount limit, and network limit, etc. airline tablet, or by email or text assistance. We encourage individuals and entities message with a link to the actual notice having pertinent familiarity with on the internet if the passenger has a Regulatory Analyses and Notices Regulation E to provide input on its device with him or her on which to A. Executive Order 12866 (Regulatory applicability towards any DBC payment access this information. However, in our Planning and Review) and DOT proposal, if a passenger does not methods proposed in this notice, and Regulatory Policies and Procedures whether there are any difficulties for consent to receive this notice in carriers and others to comply with both electronic format and instead, requests a This proposed rule is not a significant Regulation E and our proposals. At this print copy, carriers must produce the regulatory action under section 3(f) of time, we are not proposing to prescribe print copy. Our concern with E.O. 12866 (58 FR 51735, October 4, the manner of written disclosure eliminating the requirement of 1993), Regulatory Planning and Review, carriers must use to notify passengers of providing printed notice upon request is as supplemented by E.O. 13563 (76 FR the limits and restrictions associated that the passenger may want not only to 3821, January 21, 2011), Improving with the cards, nor are we proposing the read the notice and understand his or Regulation and Regulatory Review. specific language of the disclosure. her rights in a timely manner before Accordingly, the Office of Management Consistent with our proposal to allow making a decision about denied and Budget (OMB) has not reviewed it carriers to provide written notice of boarding compensation, but also to under that Order. It is also not denied boarding compensation and retain a copy for further review at a later significant within the meaning of DOT boarding priority by electronic means, time. We assume that most if not all regulatory policies and procedures which will be discussed below, we also carriers are able to produce a print copy (DOT Order 2100.5 dated May 22, 1980; propose to allow carriers to provide using computer terminals at the gates or 44 FR 11034 (February 26, 1979)). disclosures of the limits and restrictions counters, as many of them already do This proposed rule is expected to on electronic DBC payment by currently. We solicit comment regarding provide regulatory relief to airlines, electronic means upon consumers’ the benefit and costs of proposing to while at the same time maintaining consent. We ask public input on require carriers to provide printed aviation consumer protections for whether we should require this notice to the passenger upon request. passengers. The proposed rule would disclosure to be incorporated into the We also request information regarding amend the denied boarding written notice that carriers are required the availability of email or text messages compensation requirements of sections to provide under section 250.9, when to passengers when they travel. 250.5 and 250.8 to allow carriers to use applicable, or whether it is better to With respect to the format of the cash equivalent electronic payment in provide a standalone disclosure electronic notice, we ask whether lieu of cash or check to provide document. carriers may provide emails or text compensation to passengers that are As a final matter for this subject, we messages that include a link to the denied boarding involuntarily and are emphasize that our proposal would actual notice on a webpage that is a part eligible for denied boarding allow carriers to choose from cash, of the carriers’ websites, or whether compensation. The proposed rule would check or cash equivalent electronic carriers should be required to provide also amend the requirements of section payments as a form of mandatory the text of the notice via emails. Is there 250.9 to allow carriers to provide the denied boarding compensation any substantial difference between these mandatory written explanation of payments. Further, this proposal would two formats that affects passengers’ denied boarding compensation by not impact the ability of carriers to offer access to the content of the notice? For electronic means in lieu of a paper copy consumers a choice between flight carriers that have mobile applications vouchers or credits and the mandatory available for consumers to download on 9 14 CFR 382.43(b) requires carriers’ primary their mobile devices, is including the websites to conform to all Success Criteria and all denied boarding compensation Conformance Requirements from the World Wide notice in the mobile applications Web Consortium (W3C) Recommendation 11 the general public. It may still have to comply with sufficient for the purpose of oversales December 2008, website Content Accessibility other sections of Regulation E. disclosure? Passengers with disabilities Guidelines (WCAG) 2.0 for Level AA.

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with the consent of the passenger. The Airlines are required to pay compensation, in the amount of 200 proposed rule would not impact the compensation to certain passengers who percent of the passenger’s one-way fare existing requirements regarding denied are involuntarily denied boarding from to their destination or first stopover, up boarding compensation eligibility for flights on which they hold confirmed to $675, if the delay is 1 to 2 hours (1 passengers that are denied boarding reservations. The amount of the to 4 hours in foreign air transportation involuntarily, or the existing compensation depends on the length of where involuntary denied boarding requirements regarding the methods of delay to their destination. The practice, takes place at a U.S. airport), and 400 calculating the amount of compensation known as ‘‘bumping’’ or ‘‘denied percent of the fare, up to $1,350, if the for passengers that are denied boarding boarding,’’ happens occasionally when delay is over 2 hours (over 4 hours in involuntarily. there are more passengers scheduled to foreign air transportation where The primary entities that would be fly on an airplane than available seats. involuntary denied boarding takes place affected by this proposed rule are U.S. In rare circumstances, this practice may at a U.S. airport). Airlines may offer and foreign carriers to which the be needed to accommodate a Federal consumers a choice between the requirements of 14 CFR part 250 apply, Air Marshall on the plane. When such required denied boarding compensation and passengers with confirmed reserved an oversales situation occurs, airlines and free or reduced fare air space on scheduled flight segments are first required to ask if there are transportation compensation at equal to operated by those carriers and that are passengers willing to give up their seats or greater value (in addition to finding denied boarding involuntarily and are voluntarily in exchange for alternate transportation for the denied eligible for denied boarding compensation, which could include a flight). However, the passenger compensation. The requirements of 14 variety of incentives including money or involuntarily denied boarding may CFR part 250 apply to carriers that flight vouchers, for example. Passengers decline this transportation benefit in operate scheduled flight segments using who choose to give up their seat are favor of cash or check. Airlines often do an aircraft that has a designed passenger considered to have been ‘‘voluntarily not hold cash at boarding locations and capacity of 30 or more passenger seats, denied boarding.’’ If there are not handle the compensation by mailing a operating in interstate air transportation enough volunteers available, any other check within 24 hours of the time of or providing foreign air transportation additional passenger denied boarding is denied boarding. on flight segments originating in the considered to have been ‘‘involuntarily Table 1 below provides a summary of United States. It is currently estimated denied boarding.’’ the annual reported number of that there are approximately 45 U.S. Currently, airlines are required to involuntarily denied boardings for the carriers and 65 foreign carriers to which offer cash or check for compensation to most recent five year period for which the requirements of 14 CFR part 250 passengers who are involuntarily denied data was available (calendar years 2013 apply. boarding and are eligible for through 2017). TABLE 1—PASSENGERS INVOLUNTARILY DENIED BOARDING

Passengers involuntarily denied boarding

Number of Total Not eligible for Eligible for compensation Total Calendar year reporting enplaned compensation Rate per Rate per carriers passengers Percent 10,000 10,000 Percent Number of total passenger Number passenger Number of total enplanements enplanements

2013 ...... 16 620,515,005 14,642 26 42,354 74 0.68 56,996 0.92 2014 ...... 14 601,733,197 14,330 28 35,957 72 0.60 50,287 0.84 2015 ...... 14 645,055,901 17,801 36 31,767 64 0.49 49,563 0.77 2016 ...... 12 660,618,265 16,724 41 24,402 59 0.37 41,126 0.62 2017 ...... 12 680,889,723 8,680 37 14,543 63 0.21 23,223 0.34

Annual Average ...... 14,435 33 29,805 67 0.46 44,239 0.69 Source: U.S. Department of Transportation. Bureau of Transportation Statistics. Data from Form 251 ‘‘Report of Passengers Denied Confirmed Space.’’ Data avail- able at: https://www.bts.gov/denied-confirmed-space (accessed May 4, 2018).

As presented in Table 1, over the most 2013 to a low of 23,000 in 2017. Over As also presented in Table 1, only recent five year period, those U.S. the same time period, total passenger about two-thirds of total involuntarily carriers meeting the reporting enplanements for these reporting denied boardings are eligible for requirement threshold 10 for oversales carriers (excluding inbound compensation and therefore would data recorded an average of international service, to which the potentially be affected by the proposed approximately 45,000 involuntarily oversales regulations are not applicable) rule. The remaining one-third of denied boardings annually, with the have increased from 621 million in 2013 involuntarily denied boardings are not number steadily decreasing throughout to 681 million in 2017, resulting in an eligible for compensation, and therefore this period from a high of 57,000 in even greater decrease in the rate of would not be affected by the proposed involuntarily denied boardings per rule.12 Over the most recent five year 10 For the five years presented in the table, the 10,000 passenger enplanements, from reporting requirement threshold was U.S. airlines 0.92 in 2013 to only 0.34 in 2017.11 12 The reasons for which a passenger who is with at least 1.0% of total domestic scheduled- involuntarily denied boarding would not be eligible service passenger revenues. As of 2018, the for compensation are enumerated in section 250.6, reporting requirement threshold is U.S. airlines 11 U.S. Department of Transportation. Bureau of which remains unchanged in the proposed rule. with at least 0.5% of total domestic scheduled- Transportation Statistics. Data from Form 251 These reasons include: receiving comparable service passenger revenues, resulting in a somewhat ‘‘Report of Passengers Denied Confirmed Space.’’ transportation that is scheduled to arrive within one higher number of reporting carriers (17 reporting Data available at: https://www.bts.gov/denied- hour of the original flight; receiving seating at no carriers as of April 2018). confirmed-space (accessed May 4, 2018). extra charge in a class or section of the aircraft

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period, there were an average of 30,000 in 2017), has been steadily decreasing statements. The decision by an airline to involuntarily denied boardings eligible over the past several years, and appears offer cash equivalent electronic for compensation annually, again with to be continuing that trend based on payment, or an electronic version of the number steadily decreasing data thus far available for 2018. The written explanation of denied boarding, throughout this period from a high of Department does not require foreign air is discretionary. Therefore, it is 42,000 in 2013 to a low of 15,000 in carriers to report the number of expected that an airline would only 2017. Early indications from data passengers who are involuntarily denied adopt these options to the extent that available for the first 6 months of 2018 boarding on their outbound they result in net cost savings. Because show a continued decline in the number international flights from the U.S., and of the discretionary nature of these of involuntarily denied boardings.13 therefore such data are unavailable. choices, the total potential cost savings The number of carriers that are However, anecdotal evidence suggests of these proposals to airlines cannot be required to report oversales data to the that among foreign carriers the rate of estimated. However, due to the Department on Form 251 (17 U.S. involuntarily denied boardings, and the relatively small number of passengers carriers as of April 2018) represent only percentage of involuntarily denied denied boarding involuntarily and a portion of the estimated number of boardings that are eligible for eligible for compensation, the cost carriers to which the oversales compensation, are generally comparable savings to airlines are expected to be requirements of 14 CFR part 250 apply to those of U.S. carriers. modest. Nonetheless, recent comments (45 U.S. carriers, and 65 foreign Passengers denied boarding provided by the airline industry carriers). However, because this smaller voluntarily receive compensation in a indicate that carriers do believe that number of reporting carriers are the top- variety of forms, including through they would realize cost savings from ranked U.S. carriers in terms of electronic payment methods. Making being allowed the option to provide domestic scheduled-service passenger cash equivalent electronic payment cash equivalent electronic payment for revenues, they are believed to represent (with appropriate consumer protections) denied boarding compensation in lieu of a disproportionately large share of the available to the airlines for involuntary cash or check, and from being allowed total involuntarily denied boardings that denied boarding compensation will the option to furnish the written occur among the full population of the expand the flexibility that already exists explanation of denied boarding by estimated 45 U.S. carriers and 65 foreign in the market. While offering this electronic means.14 flexibility and greater choice to the carriers to which the oversales B. Executive Order 13771 (Reducing requirements of 14 CFR part 250 apply. airlines, the proposed rule ensures passengers are protected by specifying Regulation and Controlling Regulatory Therefore, the data presented above Costs) from the reporting carriers are still cash equivalent electronic payment, and believed to be reasonably representative by limiting the extent to which certain This proposed rule is expected to be in describing the extent to which fees sometimes associated with cash an E.O. 13771 deregulatory action. passengers that are involuntarily denied equivalent electronic payment can be Details on the estimated cost savings of boarding and are eligible for imposed. this proposed rule can be found in the compensation would potentially be Under the proposed amendments to rule’s economic analysis. the requirements of section 250.9 that a affected by the proposed rule. C. Regulatory Flexibility Act Overall, the information presented written explanation of denied boarding The Regulatory Flexibility Act of 1980 above supports the conclusion that the compensation be furnished to (RFA) (5 U.S.C. 601 et seq.) requires maximum expected number of passengers that are denied boarding Federal agencies to consider the effects passengers traveling on U.S. carriers involuntarily, carriers would be allowed of their regulatory actions on small that would experience any potential to furnish this notice by electronic businesses and other small entities, and impact from the proposed rule is very means with the consent of the to minimize any significant economic limited (only 0.0021% of enplanements passenger. It is anticipated that carriers would realize a cost savings from this impact. When an agency issues a rulemaking proposal, the RFA requires different than that specified on the ticket, and proposed amendment. These cost receiving an appropriate refund if the fare charged savings are expected to result from the agency to ‘‘prepare and make in the new class or section is lower than that for reductions in the number of hardcopy available for public comment an initial the original ticket; failing to comply with ticketing, printed written statements that would regulatory flexibility analysis’’ which check-in, or reconfirmation procedures; an aircraft will ‘‘describe the impact of the of smaller capacity is substituted for the original be furnished by carriers to passengers, aircraft for operational or safety reasons; or an and the associated cost savings from proposed rule on small entities’’ (5 aircraft of 60 of fewer seats has weight/balance reductions in paper, printing, U.S.C. 603(a)). Section 605 of the RFA restrictions for operational or safety reasons. distribution, and storage. The allows an agency to certify a rule, in lieu 13 U.S. Department of Transportation. Office of magnitude of these potential costs of preparing an analysis, if the proposed Aviation Enforcement and Proceedings. ‘‘Air Travel rulemaking is not expected to have a Consumer Report.’’ October 2018. Page 41. savings to carriers cannot be estimated, Available at: https://www.transportation.gov/sites/ in part because under the proposed rule significant economic impact on a dot.gov/files/docs/resources/individuals/aviation- the decision by a carrier to furnish the substantial number of small entities. consumer-protection/323346/october2018atcr.pdf written statement by electronic means is The primary entities that would be (accessed on November 13, 2018). For the 6 months affected by this proposed rule are of January through June of 2018, 17 reporting discretionary, as is the decision by a airlines recorded a total of only 4,685 involuntarily passenger to choose an electronic carriers to which the requirements of 14 denied boardings. During the same 6-month period version of the written statement when CFR part 250 apply, and passengers in 2017, 12 reporting airlines recorded 17,757 one is offered by a carrier rather than a involuntarily denied boardings, nearly four times as hardcopy printed version. 14 ‘‘Comments of Airlines for America. Part Two: many, despite the smaller number of 12 airlines Proposals for Repeal or Amendment of Specific meeting the reporting requirement threshold for Both proposals are expected to DOT Economic Regulations.’’ December 1, 2017. 2017 (U.S. airlines with at least 1.0% of total provide modest cost savings to airlines Docket ID number DOT–OST–2–17–0069–2751. domestic scheduled-service passenger revenues), as from reductions in costs of handling and Pages 64–65. December 4, 2017. Available at: compared to larger number of 17 airlines meeting processing cash and checks, and https://www.regulations.gov/contentStreamer? the reporting threshold for 2018 (U.S. airlines with documentId=DOT-OST-2017-0069-2751& at least 0.5% of total domestic scheduled-service reductions in costs of printing and attachmentNumber=1&contentType=pdf (accessed passenger revenues). distributing hardcopy printed May 2, 2018).

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with confirmed reserved space on are expected to be modest, and relative or other cash equivalent methods scheduled flight segments operated by to the gross revenues or profits of any provide conspicuous written disclosure those carriers and that are denied affected airlines would not constitute a to passengers about any restrictions and boarding involuntarily and are eligible significant economic impact. limitation on the use and maintenance for denied boarding compensation. Accordingly, the Department certifies of the funds. The title, a description of Airline passengers are not considered that the proposed rule, if promulgated, the respondents, and an estimate of the small entities because they do not meet will not have a significant economic annual recordkeeping burden are set the definition of a small entity in impact on a substantial number of small forth below: Section 601 of the RFA. Under 14 CFR entities. The Department invites REQUIREMENT FOR CARRIERS TO 399.73, for the purposes of the comment on this certification and on PROVIDE WRITTEN DISCLOSURE ON Department’s implementation of the the analysis presented in support of it. LIMITS AND RESTRICTIONS OF RFA, a carrier is a small business if it D. Executive Order 13132 (Federalism) ELECTRONIC PAYMENTS THAT ARE provides air transportation exclusively CASH EQUIVALENT OFFERED AS with small aircraft, defined as any This NPRM has been analyzed in DENIED BOARDING COMPENSATION. aircraft originally designed to have a accordance with the principles and Respondents: U.S. carriers that maximum passenger capacity of 60 seats criteria contained in Executive Order operate scheduled passenger service or less or a maximum payload capacity 13132 (‘‘Federalism’’). This notice does using an aircraft that has a designed of 18,000 pounds or less. not propose any provision that: (1) Has passenger capacity of 30 or more The requirements of 14 CFR part 250 substantial direct effects on the States, passenger seats, and foreign air carriers apply to carriers that operate scheduled the relationship between the national that operate scheduled passenger flight segments using an aircraft that has government and the States, or the service to and from the United States a designed passenger capacity of 30 or distribution of power and using an aircraft that has a designed more passenger seats, operating in responsibilities among the various passenger capacity of 30 or more interstate air transportation or providing levels of government; (2) imposes passenger seats. foreign air transportation on flight substantial direct compliance costs on Number of Respondents: 110 (45 U.S. segments originating in the United State and local governments; or (3) carriers and 65 foreign carriers; States. It is currently estimated that preempts State law. States are already assuming all U.S. and foreign carriers there are approximately 45 U.S. carriers preempted from regulating in this area covered under 14 CFR part 250 choose and 65 foreign carriers to which the by the Airline Deregulation Act, 49 to provide DBC by electronic payments requirements of 14 CFR part 250 apply. U.S.C. 41713. Therefore, the that are cash equivalent). Of these, there may be some that qualify consultation and funding requirements Estimated Annual Burden on as a small business according to the of Executive Order 13132 do not apply. Respondents: 3,125 hours per year for Department’s size standard under 14 E. Executive Order 13084 all respondents. This estimate is based CFR 399.73 (exclusively using aircraft of on an average of approximately 45,000 60 seats or less). However, the This NPRM has been analyzed in passengers that were involuntarily Department believes that the number of accordance with the principles and denied boarding annually by reporting such carriers is very small. For example, criteria contained in Executive Order carriers 15 in the last five years between based April 2018 aircraft registration 13084 (‘‘Consultation and Coordination 2013 and 2017, among which an average data from the Federal Aviation with Indian Tribal Governments’’). of 67 percent were legally eligible for Administration for manned-aircraft, less Because none of the options on which compensation, averaging 30,000. than one percent of registered aircraft we are seeking comment would According to data collected by the (2,054 of 294,387 total aircraft) are significantly or uniquely affect the Department, these reporting carriers’ aircraft designed with a capacity of 30 communities of the Indian tribal combined annual U.S.-originating to 60 passengers seats. There are also governments or impose substantial passenger enplanements counted for very few foreign carriers that fly to and direct compliance costs on them, the approximately 80 percent of the total from the United States that provide air funding and consultation requirements annual enplanements for U.S.- transportation only with small aircraft of Executive Order 13084 do not apply. originating passengers carried by all of 60 seats or less. Given the relatively F. Paperwork Reduction Act U.S. and foreign carriers. Based on this small number of aircraft that fall within data, we estimate that the total number This NPRM proposes a new collection the size range of interest, and the small of passengers that were denied boarding of information that would require number of foreign carriers believed to annually by all carriers subject to Part approval by the Office of Management operate only with aircraft of 60 seats or 250 and are legally entitled to DBC to and Budget (OMB) under the Paperwork less, the Department believes that there be 37,500 (80 percent of which were Reduction Act of 1995 (Pub. L. 104–13, would be very few carriers that are both denied boarding by reporting carriers 49 U.S.C. 3501 et seq.). Under the subject to 14 CFR part 250 and that are and 20 percent by all other carriers) 16. Paperwork Reduction Act, before an providing air transportation exclusively We estimate an average burden of 5 with small aircraft with a maximum agency submits a proposed collection of information to OMB for approval, it passenger capacity of 60 seats or less or 15 For calendar years prior to 2018, reporting a maximum payload capacity of 18,000 must publish a document in the Federal carriers for the purpose of submitting oversales data pounds or less. Therefore, the Register providing notice of the to the Department pursuant to 14 CFR 250.10 were Department believes that the proposed proposed collection of information and U.S. carriers that accounted for at least 1 percent a 60-day comment period, and must of domestic scheduled passenger revenue. The list rule will not have an impact on a of reporting carriers were identified by BTS through substantial number of small entities. otherwise consult with members of the the publication of reporting technical directives. As described earlier, due to the public and affected agencies concerning 16 The Department does not collect oversales data relatively small number of passengers the proposed collection. from smaller U.S. carriers that do not qualify as that are denied boarding involuntarily The collection of information reporting carriers and foreign carriers, and we estimate that the actual percentage of passengers and that therefore may be affected by proposed here is a requirement that involuntarily denied boarding to be much smaller the proposed rule, the potential cost carriers choosing to issue DBC by by the non-reporting U.S. carriers and by foreign savings to airlines of the proposed rule prepaid cards, electronic fund transfer, carriers at U.S. airports.

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minutes for the disclosure required by anticipate any environmental impacts, § 250.8 Denied boarding compensation. this proposal per passenger denied and there are no extraordinary (a) Every carrier shall tender to a boarding involuntarily. The total circumstances present in connection passenger eligible for denied boarding estimated annual burden on all with this rulemaking. compensation, on the day and place the × respondents would be 37,500 5 Issued this 20th day of March, 2019, in denied boarding occurs, except as minutes = 3,125 hours. Washington DC. provided in paragraphs (b) and (c), cash, Frequency: Disclosure is required Elaine L. Chao, an immediately negotiable check, or each time a carrier provides DBC with Secretary of Transportation. electronic payments that are equivalent an electronic DBC payment to a to cash for the appropriate amount of passenger who was denied boarding List of Subjects in 14 CFR Part 250 compensation provided in section involuntarily. Air carriers, Consumer protection, 250.5. Compensation paid by electronic The Department invites interested Reporting and recordkeeping payments that are cash equivalent shall persons to submit comments on any requirements. be in the amounts described in sections aspect of each of these two information For the reasons set forth in the 250.5(a) and 250.5(b), plus an additional collections, including the following: (1) preamble, the Department proposes to amount, as appropriate, to cover The necessity and utility of the amend title 14 CFR Chapter II as potential usage charges described in information collection, (2) the accuracy follows: paragraph (d). of the estimate of the burden, (3) ways (b) Where a carrier arranges for the to enhance the quality, utility, and PART 250—OVERSALES [AMENDED] passenger’s convenience, alternate clarity of the information to be means of transportation that departs collected, and (4) ways to minimize the ■ 1. The authority citation for 14 CFR before payment can be given to the burden of collection without reducing part 250 continues to read as follows: passenger, tender shall be made within the quality of the collected information. Authority: 49 U.S.C. 329, and chapters 24 hours after the time the denied Comments submitted in response to this 401102, 41301, 41708, and 41712. boarding occurs. Tendering funds notice will be summarized or included, ■ 2. Amend § 250.5 by revising includes but is not limited to sending a or both, in the request for OMB approval paragraph (c) to read as follows: check or prepaid card by mail, initiating of these information collections. an electronic transfer of funds to a G. Unfunded Mandates Reform Act § 250.5 Amount of denied boarding compensation for passengers denied passenger’s account and sending an The Department has determined that boarding involuntarily. email or text message with link and instructions to access to funds. the requirements of Title II of the * * * * * Unfunded Mandates Reform Act of 1995 (c) Carriers may offer to consumers (c) Any electronic payments offered do not apply to this notice. the option of choosing between free or for denied boarding compensation as equivalent to cash must satisfy the H. National Environmental Policy Act reduced rate air transportation as a form of denied boarding compensation and following requirements: The Department has analyzed the the required cash, check, or cash (1) The electronic fund must be valid environmental impacts of this proposed equivalent electronic payments due for at least 90 days from the date the action pursuant to the National under paragraphs (a) and (b) of this fund is tendered to the passenger who Environmental Policy Act of 1969 section, if— was involuntarily denied boarding, or (NEPA) (42 U.S.C. 4321 et seq.) and has (1) The value of the transportation from the date the fund is activated if determined that it is categorically benefit offered, excluding any fees or activation is required, whichever is excluded pursuant to DOT Order other mandatory charges applicable for later; 5610.1C, Procedures for Considering using the free or reduced rate air (2) Any electronic fund provided to Environmental Impacts (44 FR 56420, transportation, is equal to or greater consumers as cash equivalent for DBC Oct. 1, 1979). Categorical exclusions are than the cash/check/cash equivalent payment must be a product that is actions identified in an agency’s NEPA electronic payment otherwise required; widely accepted by major payment implementing procedures that do not (2) The carrier fully informs the networks for purchases and must be normally have a significant impact on passenger of the amount of cash/check/ available for cash withdrawal on major the environment and therefore do not cash equivalent electronic ATM networks; require either an environmental compensation that would otherwise be (3) The electronic fund must not assessment (EA) or environmental due and that the passenger may decline impose on consumers maintenance- impact statement (EIS). See 40 CFR the transportation benefit and receive related or other usage-related charges 1508.4. In analyzing the applicability of the cash/check/cash equivalent during the validity period as required by a categorical exclusion, the agency must electronic payment; and paragraph (c)(1) of this section, also consider whether extraordinary (3) The carrier fully discloses all including but not limited to weekly or circumstances are present that would material restrictions, including but not monthly maintenance fees, non-activity warrant the preparation of an EA or EIS. limited to, administrative fees, advance fees, balance inquiry fees, and customer Id. Paragraph 4.c.6.i of DOT Order purchase or capacity restrictions, and service call surcharges. The electronic 5610.1C categorically excludes blackout dates applicable to the offer, on fund may impose other fees that are ‘‘[a]ctions relating to consumer the use of such free or reduced rate beyond the purpose of DBC payment, protection, including regulations.’’ The transportation before the passenger such as foreign transaction fees for purpose of this action is to explore decides to give up the cash/check/cash purchases with or withdrawal of additional means for U.S. and foreign equivalent electronic payment in currency other than U.S. dollars. air carriers to compensate passengers exchange for such transportation. (See (4) Carriers must provide conspicuous who are involuntarily denied boarding also § 250.9(c)). written disclosure of all restrictions and in an oversales situation and allow * * * * * conditions associated with using the carriers to use electronic payment ■ 3. Amend § 250.8 by revising electronic fund at the time the fund is methods in lieu of cash or check DBC paragraphs (a) and (b), and adding new tendered to the passenger, consistent payments. The Department does not paragraph (c) to read as follows: with section 250.9(c).

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■ 4. Amend § 250.9 by revising (c) In addition to furnishing 2019. The https://www.regulations.gov paragraph (a), the ‘‘Method of Payment’’ passengers with the carrier’s written electronic filing system will accept section of paragraph (b), paragraph (c), statement as specified in paragraphs (a) comments until 11:59 p.m. Eastern Time and adding new paragraph (d) to read as and (b) of this section, if the carrier at the end of April 29, 2019. Comments follows: chooses to use cash equivalent received by mail/hand delivery/courier electronic payments for denied boarding (for written/paper submissions) will be § 250.9 Written explanation of denied compensation payment, the carrier must considered timely if they are boarding compensation and boarding priorities, and verbal notification of denied disclose any material restrictions or postmarked or the delivery service boarding compensation. conditions applicable to the payments acceptance receipt is on or before that (a) Every carrier shall furnish to the involuntarily bumped passenger date. in writing at the time of tendering passengers who are denied boarding Electronic Submissions electronic funds. Carriers may provide involuntarily from flights on which they Submit electronic comments in the hold confirmed reserved space this disclosure by electronic means, unless the recipient specifically requests following way: immediately after the denied boarding • Federal eRulemaking Portal: occurs, a written statement explaining receiving it in a printed format. Disclosure furnished by electronic https://www.regulations.gov. Follow the the terms, conditions, and limitations of instructions for submitting comments. denied boarding compensation, and means shall be immediately accessible by commonly used electronic devices Comments submitted electronically, describing the carriers’ boarding priority including attachments, to https:// rules and criteria. The carrier shall also such as mobile phones or tablets. (d) If the carrier orally advises www.regulations.gov will be posted to furnish the statement to any person the docket unchanged. Because your upon request at all airport ticket selling involuntarily bumped passengers that they are entitled to receive free or comment will be made public, you are positions which are in the charge of a solely responsible for ensuring that your person employed exclusively by the discounted transportation as denied boarding compensation, the carrier must comment does not include any carrier, or by it jointly with another confidential information that you or a person or persons, and at all boarding also orally advise the passengers of any material restrictions or conditions third party may not wish to be posted, locations being used by the carrier. such as medical information, your or Carriers may furnish this written applicable to the free or discounted transportation and that they are entitled anyone else’s Social Security number, or statement by electronic means, unless confidential business information, such the recipient specifically requests to choose cash, a check, or electronic cash equivalent payment instead. as a manufacturing process. Please note receiving it in a printed format. that if you include your name, contact [FR Doc. 2019–05858 Filed 3–27–19; 8:45 am] Statement furnished by electronic information, or other information that means shall be immediately accessible BILLING CODE P identifies you in the body of your by commonly used electronic devices comments, that information will be such as mobile phones or tablets. posted on https://www.regulations.gov. (b) * * * DEPARTMENT OF HEALTH AND • If you want to submit a comment HUMAN SERVICES with confidential information that you Method of Payment do not wish to be made available to the Food and Drug Administration Except as provided below, the airline must public, submit the comment as a give each passenger who qualifies for written/paper submission and in the involuntary denied boarding compensation a 21 CFR Part 573 payment for the amount specified above, on manner detailed (see ‘‘Written/Paper the day and at the place the involuntary [Docket No. FDA–2019–F–0670] Submissions’’ and ‘‘Instructions’’). denied boarding occurs. The airline may Written/Paper Submissions choose to pay denied boarding compensation Uralkali PSJ; Filing of Food Additive by cash, check, or electronic payments that Petition Submit written/paper submissions as are equivalent to cash payments. Denied follows: boarding compensation paid by an electronic AGENCY: Food and Drug Administration, • Mail/Hand Delivery/Courier (for payment shall be in the amount specified HHS. written/paper submissions): Dockets above plus an additional amount, if ACTION: Notification; petition for Management Staff (HFA–305), Food and appropriate, sufficient to cover any potential rulemaking. Drug Administration, 5630 Fishers usage charges such as ATM withdrawal fees. Lane, Rm. 1061, Rockville, MD 20852. The airline may not impose any other SUMMARY: The Food and Drug • additional charges and fees for the use and For written/paper comments Administration (FDA, the Agency, or submitted to the Dockets Management maintenance of the electronic fund for at we) is announcing that we have filed a least 90 days from the date the fund becomes Staff, FDA will post your comment, as petition, submitted by Uralkali PSJ, well as any attachments, except for accessible to consumers. If the airline proposing that the food additive arranges alternate transportation for the information submitted, marked and passenger’s convenience that departs before regulations be amended to provide for identified, as confidential, if submitted the payment can be made, the payment shall the safe use of yellow prussiate of soda as detailed in ‘‘Instructions.’’ be sent to the passenger within 24 hours. The as an anticaking agent for potassium Instructions: All submissions received carrier may offer free or discounted chloride in animal food. must include the Docket No. FDA– transportation in place of the cash or cash DATES: Submit either electronic or 2019–F–0670 for ‘‘Food Additives equivalent payment. In that event, the carrier written comments on the petitioner’s Permitted in Feed and Drinking Water must disclose all material restrictions on the environmental assessment by April 29, use of the free or discounted transportation of Animals; Yellow Prussiate of Soda.’’ before the passenger decides whether to 2019. Received comments, those filed in a accept the transportation in lieu of cash or ADDRESSES: You may submit comments timely manner (see ADDRESSES), will be cash equivalent payment. The passenger may as follows. Please note that late, placed in the docket and, except for insist on the required payment or refuse all untimely filed comments will not be those submitted as ‘‘Confidential compensation and bring private legal action. considered. Electronic comments must Submissions,’’ publicly viewable at * * * * * be submitted on or before April 29, https://www.regulations.gov or at the

VerDate Sep<11>2014 17:48 Mar 27, 2019 Jkt 247001 PO 00000 Frm 00013 Fmt 4702 Sfmt 4702 E:\FR\FM\28MRP1.SGM 28MRP1 amozie on DSK9F9SC42PROD with PROPOSALS