Federal Register / Vol. 88, No. 191 / Wednesday, October 4, 2023 / Proposed Rules 68525 

impacts, in the short- and long-term? 

Would utilization of OTC preventive 

products significantly replace 

utilization of non-OTC preventive 

products among participants, 

beneficiaries, and enrollees? Would 

there be an impact on the cost of nonOTC preventive products? What are the 

estimated initial and ongoing time and 

cost burdens on (or savings for) plans, 

issuers, plan sponsors, third-party 

administrators, PBMs, and retailers if 

plans and issuers were required to cover 

OTC preventive products without cost 

sharing and without a prescription by a 

health care provider? 

• How would a requirement for plans 

and issuers to cover OTC preventive 

products without cost sharing and 

without a prescription by a health care 

provider affect price negotiations, 

pricing decisions, market power, 

discount or rebate programs, and 

marketing practices for these products? 

Would the costs to plans, issuers, thirdparty administrators, PBMs, and 

providers vary for small versus large 

entities? If so, what are the impacts for 

small entities as compared to large 

entities? What would the net impact of 

these changes be on prices for and the 

availability of OTC preventive products? 

• To what degree would any potential 

increases in costs or premiums 

associated with a requirement for plans 

and issuers to cover OTC preventive 

products without cost sharing and 

without a prescription by a health care 

provider be offset by greater access to 

OTC preventive products (for example, 

due to improved health outcomes from 

greater uptake of recommended 

preventive products, or fewer office 

visits as a result of participants, 

beneficiaries, and enrollees no longer 

requiring an office visit to obtain a 

prescription for OTC preventive 

products)? 

• Identify and provide estimates 

related to the potential societal and 

economic impacts (for example, 

benefits, costs, and transfers) on 

individuals and families, as well as on 

health care providers, if OTC preventive 

products were required to be covered 

without cost sharing and without a 

prescription by a health care provider. 

Would these impacts vary based on 

region, state, socioeconomic status, race, 

sex, age, insured status, or other factors? 

For example, would there be potential 

reductions in unintended pregnancies 

or maternal deaths due to participants, 

beneficiaries, and enrollees no longer 

requiring a prescription for OTC oral 

contraceptives? As another example, 

would there be increases in the length 

of time that children are breastfed if 

OTC preventive products such as 

breastfeeding supplies were required to 

be covered without cost sharing and 

without a prescription by a health care 

provider? Would smoking cessation 

rates improve with increased access to 

OTC tobacco cessation products? 

• Identify and provide any 

information regarding the potential 

impact on health outcomes and quality 

of life of participants, beneficiaries, and 

enrollees if plans and issuers were 

required to cover OTC preventive 

products without cost sharing and 

without a prescription by a health care 

provider. 

• Identify and provide estimates 

related to the potential economic 

impacts (short- and long-term) on health 

care providers, retailers, and 

pharmacists if OTC preventive products 

were required to be covered without 

cost sharing and without a prescription 

by a health care provider. How would 

the claim processing burden for health 

care providers, retailers, and 

pharmacists change? How would the 

number of visits to health care 

providers, retailers, and pharmacists 

change? 

III. Collection of Information 

Requirements 

This document does not impose 

information collection requirements, 

that is, reporting, recordkeeping, or 

third-party disclosure requirements. 

However, section II of this document 

does contain a general solicitation of 

comments in the form of an RFI. In 

accordance with the implementing 

regulations of the Paperwork Reduction 

Act of 1995 (PRA), specifically 5 CFR 

1320.3(h)(4), this general solicitation is 

exempt from the PRA. Facts or opinions 

submitted in response to general 

solicitations of comments from the 

public, published in the Federal 

Register or other publications, 

regardless of the form or format thereof, 

provided that no person is required to 

supply specific information pertaining 

to the commenter, other than that 

necessary for self-identification, as a 

condition of the agency’s full 

consideration, are not generally 

considered information collections and 

therefore not subject to the PRA. 

Consequently, there is no need for 

review by the Office of Management and 

Budget under the authority of the PRA. 

Signed at Washington DC. 

Rachel D. Levy, 

Associate Chief Counsel, (Employee Benefits, 

Exempt Organizations, and Employment 

Taxes), Internal Revenue Service, Department 

of the Treasury. 

Signed at Washington DC. 

Carol A. Weiser, 

Benefits Tax Counsel, Department of the 

Treasury. 

Signed at Washington DC. 

Lisa M. Gomez, 

Assistant Secretary, Employee Benefits 

Security Administration, Department of 

Labor. 

Xavier Becerra, 

Secretary, Department of Health and Human 

Services. 

[FR Doc. 2023–21969 Filed 10–3–23; 8:45 am] 

BILLING CODE 4120–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 300 

[REG–106203–23] 

RIN 1545–BQ77 

Preparer Tax Identification Number 

(PTIN) User Fee Update 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking 

by cross-reference to interim final rule. 

SUMMARY: In the Rules and Regulations 

section of this issue of the Federal 

Register, the Department of the Treasury 

(Treasury Department) and the IRS are 

issuing interim final regulations that 

amend the current regulations to reduce 

the amount of the user fee imposed on 

tax return preparers to apply for or 

renew a preparer tax identification 

number (PTIN). The text of the interim 

final regulations also serves as the text 

of these proposed regulations. 

DATES: Electronic or written comments 

and requests for a public hearing must 

be received by December 4, 2023. 

ADDRESSES: Commenters are strongly 

encouraged to submit public comments 

electronically. Submit electronic 

submissions via the Federal 

eRulemaking Portal at https:// 

www.regulations.gov (indicate IRS and 

REG–106203–23) by following the 

online instructions for submitting 

comments. Requests for a public hearing 

must be submitted as prescribed in the 

‘‘Comments and Requests for a Public 

Hearing’’ section. Once submitted to the 

Federal eRulemaking Portal, comments 

cannot be edited or withdrawn. The 

Treasury Department and the IRS will 


lotter on DSK11XQN23PROD with PROPOSALS1
68526 Federal Register / Vol. 88, No. 191 / Wednesday, October 4, 2023 / Proposed Rules 

publish for public availability any 

comments submitted to the IRS’s public 

docket. Send paper submissions to: 

CC:PA:LPD:PR (REG–106203–23), Room 

5203, Internal Revenue Service, P.O. 

Box 7604, Ben Franklin Station, 

Washington, DC 20044. 

FOR FURTHER INFORMATION CONTACT: 

Concerning the proposed regulations, 

Jamie Song at (202) 317–6845; 

concerning cost methodology, Michael 

A. Weber at (202) 803–9738; concerning 

submissions of comments or requests for 

a public hearing, Vivian Hayes at (202) 

317–6901 (not toll-free numbers) or by 

email at publichearings@irs.gov 

(preferred). 

SUPPLEMENTARY INFORMATION: 

Background and Explanation of 

Provisions 

Interim final regulations in the Rules 

and Regulations section of this issue of 

the Federal Register amend regulations 

under 26 CFR part 300 setting a user fee 

for individuals who apply for or renew 

a PTIN. The Independent Offices 

Appropriation Act of 1952 (IOAA), 

which is codified at 31 U.S.C. 9701, 

authorizes agencies to prescribe 

regulations that establish user fees for 

services provided by the agency. The 

IOAA provides that regulations 

implementing user fees are subject to 

policies prescribed by the President; 

these policies are set forth in the Office 

of Management and Budget Circular A– 

25, 58 FR 38142 (July 15, 1993). The text 

of the interim final regulations also 

serves as the text of these proposed 

regulations. The preamble to the interim 

final regulations explains the interim 

final regulations and these proposed 

regulations. 

Special Analyses 

I. Regulatory Planning and Review 

The OMB’s Office of Information and 

Regulatory Analysis has determined that 

this regulation is not significant and 

subject to review under section 6(b) of 

Executive Order 12866. 

II. Regulatory Flexibility Act 

Pursuant to the Regulatory Flexibility 

Act (5 U.S.C. chapter 6), it is hereby 

certified that these proposed regulations 

will not have a significant economic 

impact on a substantial number of small 

entities. The proposed regulations affect 

individuals who prepare or assist in 

preparing all or substantially all of a tax 

return or claim for refund for 

compensation. Only individuals, not 

businesses, can have a PTIN. Thus, the 

economic impact of these regulations on 

any small entity generally will be a 

result of an individual tax return 

preparer who is required to have a PTIN 

owning a small business or a small 

business otherwise employing an 

individual tax return preparer who is 

required to have a PTIN. The Treasury 

Department and the IRS estimate that 

approximately 847,555 individuals will 

apply annually for an initial or renewal 

PTIN. Although the interim final 

regulations will likely affect a 

substantial number of small entities, the 

economic impact on those entities is not 

significant. The interim final regulations 

will establish an $11 fee per application 

or renewal (plus $8.75 payable directly 

to the contractor), which is a reduction 

from the previously established fee and 

will not have a significant economic 

impact on a small entity. Accordingly, 

the Secretary certifies that the rule will 

not have a significant economic impact 

on a substantial number of small 

entities, and a regulatory flexibility 

analysis is not required. 

III. Unfunded Mandates Reform Act 

Section 202 of the Unfunded 

Mandates Reform Act of 1995 (UMRA) 

requires that agencies assess anticipated 

costs and benefits and take certain other 

actions before issuing a final rule that 

includes any Federal mandate that may 

result in expenditures in any one year 

by a State, local, or Tribal government, 

in the aggregate, or by the private sector, 

of $100 million in 1995 dollars, updated 

annually for inflation. This rule does 

not include any Federal mandate that 

may result in expenditures by State, 

local, or Tribal governments, or by the 

private sector in excess of that 

threshold. 

IV. Executive Order 13132: Federalism 

Executive Order 13132 (Federalism) 

prohibits an agency from publishing any 

rule that has federalism implications if 

the rule either imposes substantial, 

direct compliance costs on State and 

local governments, and is not required 

by statute, or preempts State law, unless 

the agency meets the consultation and 

funding requirements of section 6 of the 

Executive order. These proposed 

regulations do not have federalism 

implications and do not impose 

substantial direct compliance costs on 

State and local governments or preempt 

State law within the meaning of the 

Executive order. 

V. Submission to Small Business 

Administration 

Pursuant to section 7805(f) of the 

Internal Revenue Code, this notice of 

proposed rulemaking has been 

submitted to the Chief Counsel of the 

Office of Advocacy of the Small 

Business Administration for comment 

on its impact on small business. 

Comments and Requests for a Public 

Hearing 

Consideration will be given to 

comments that are submitted timely to 

the IRS as prescribed in this preamble 

under the ADDRESSES heading. The 

Treasury Department and the IRS 

request comments on all aspects of the 

proposed regulations. Any comments 

submitted will be made available at 

https://www.regulations.gov or upon 

request. 

A public hearing will be scheduled if 

requested in writing by any person who 

timely submits electronic or written 

comments. Requests for a public hearing 

are also encouraged to be made 

electronically. If a public hearing is 

scheduled, notice of the date and time 

for the public hearing will be published 

in the Federal Register. 

Statement of Availability of IRS 

Documents 

IRS notices and other guidance cited 

in this preamble are published in the 

Internal Revenue Bulletin (or 

Cumulative Bulletin) and are available 

from the Superintendent of Documents, 

U.S. Government Publishing Office, 

Washington, DC 20402, or by visiting 

the IRS website at https://www.irs.gov. 

Drafting Information 

The principal author of these 

regulations is Jamie Song, Office of the 

Associate Chief Counsel (Procedure and 

Administration). Other personnel from 

the Treasury Department and the IRS 

participated in the development of the 

regulations. 

List of Subjects in 26 CFR Part 300 

Estate taxes, Excise taxes, Fees, Gift 

taxes, Income taxes, Reporting and 

recordkeeping requirements. 

Proposed Amendments to the 

Regulations 

Accordingly, 26 CFR part 300 is 

proposed to be amended as follows: 

PART 300—USER FEES 

■ Paragraph 1. The authority citation 

for part 300 continues to read in part as 

follows: 

Authority: 31 U.S.C. 9701. 

■ Par. 2. Section 300.11 is amended by 

revising paragraphs (b) and (d) to read 

as follows: 

§ 300.11 Fee for obtaining a preparer tax 

identification number. 

* * * * * 


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Federal Register / Vol. 88, No. 191 / Wednesday, October 4, 2023 / Proposed Rules 68527 

1Soundtrack Your Brand Sweden AB had 

withdrawn its Petition to Participate on April 5, 

2022. 

(b) [The text of proposed § 300.11(b) 

is the same as the text of § 300.11(b) 

published elsewhere in this issue of the 

Federal Register]. 

* * * * * 

(d) [The text of proposed § 300.11(d) 

is the same as the text of § 300.11(d) 

published elsewhere in this issue of the 

Federal Register]. 

Douglas W. O’Donnell, 

Deputy Commissioner for Services and 

Enforcement. 

[FR Doc. 2023–22104 Filed 9–29–23; 4:15 pm] 

BILLING CODE 4830–01–P 

LIBRARY OF CONGRESS 

Copyright Royalty Board 

37 CFR Part 384 

[Docket No. 21–CRB–0013–BER (2024– 

2028)] 

Determination of Royalty Rates and 

Terms for Making Ephemeral Copies of 

Sound Recordings for Transmission to 

Business Establishments (Business 

Establishments IV) 

AGENCY: Copyright Royalty Board, 

Library of Congress. 

ACTION: Proposed rule. 

SUMMARY: The Copyright Royalty 

Judges solicit comments on proposed 

rates and terms for the making of 

ephemeral copies of sound recordings to 

facilitate digital audio transmissions of 

those sound recordings to business 

establishments pursuant to the 

limitation on exclusive rights specified 

by the Copyright Act for the period from 

January 1, 2024, through December 31, 

2028. 

DATES: Comments and objections, if any, 

are due no later than October 24, 2023. 

ADDRESSES: You may submit comments 

and objections, identified by docket 

number 21–CRB–0013–BER (2024– 

2028) online through eCRB at https://

app.crb.gov/. 

Instructions: All comments must 

include the Copyright Royalty Board 

name and the docket number for this 

proposed rule. All properly filed 

comments will appear without change 

in eCRB at https://app.crb.gov, 

including any personal information 

provided. 

Docket: For access to the docket to 

read background documents or 

comments received, go to eCRB, the 

Copyright Royalty Board’s electronic 

filing and case management system, at 

https://app.crb.gov/, and search for 

docket number 21–CRB–0013–BER 

(2024–2028). 

FOR FURTHER INFORMATION CONTACT: 

Anita Brown, CRB Program Specialist, 

(202) 707–7658, crb@loc.gov. 

SUPPLEMENTARY INFORMATION: The 

Copyright Act provides that the 

Copyright Royalty Judges (Judges) 

commence a proceeding every fifth year 

to determine royalty rates and terms for 

the recording of ephemeral copies of 

sound recordings pursuant to the 

statutory license in 17 U.S.C. 112(e)(1) 

to facilitate digital audio transmissions 

of those sound recordings to business 

establishments pursuant to the 

limitation on exclusive rights specified 

by 17 U.S.C. 114(d)(1)(C)(iv). See 17 

U.S.C. 804(b)(2). 

In accordance with section 804(b)(2), 

the Judges commenced the proceeding 

to set rates and terms for the period 

2024–2028 on January 5, 2022 (87 FR 

490). In the Federal Register notice, the 

Judges requested that interested parties 

submit petitions to participate. Petitions 

to Participate were received from: Mood 

Media Corp., Music Choice, Rockbot, 

Inc., Sirius XM Radio Inc. and Its 

Wholly Owned Subsidiaries, 

SoundExchange, Inc., Soundtrack Your 

Brand Sweden AB, and Stingray Music 

USA Inc. The Judges initiated the threemonth negotiation period and directed 

the participants to submit written direct 

statements no later than September 19, 

2022. See 17 U.S.C. 803(b)(3). 

On September 19, 2022, the Judges 

received a Motion to Adopt Settlement 

stating that all participants 1 had 

reached a settlement obviating the need 

for written direct statements or a 

hearing. 

Section 801(b)(7)(A) of the Copyright 

Act authorizes the Judges to adopt 

royalty rates and terms negotiated by 

‘‘some or all of the participants in a 

proceeding at any time during the 

proceeding’’ provided they are 

submitted to the Judges for approval. 

The Judges must provide ‘‘an 

opportunity to comment on the 

agreement’’ to both participants and 

non-participants in the rate proceeding 

who ‘‘would be bound by the terms, 

rates, or other determination set by any 

agreement . . .’’ 17 U.S.C. 

801(b)(7)(A)(i). Participants in the 

proceeding may also ‘‘object to [the 

agreement’s] adoption as a basis for 

statutory terms and rates.’’ Id. 

The Judges ‘‘may decline to adopt the 

agreement as a basis for statutory terms 

and rates for participants that are not 

parties to the agreement,’’ only ‘‘if any 

participant [to the proceeding] objects to 

the agreement and the [Judges] 

conclude, based on the record before 

them if one exists, that the agreement 

does not provide a reasonable basis for 

setting statutory terms or rates.’’ 17 

U.S.C. 801(b)(7)(A)(ii). 

Royalty rates and terms adopted 

pursuant to section 801(b)(7)(A) are 

binding on all copyright owners of 

sound recordings and all business 

establishment services making an 

ephemeral recording of a sound 

recording for the period January 1, 2024, 

through December 31, 2028. 

List of Subjects in 37 CFR Part 384 

Copyright, Digital audio 

transmissions, Ephemeral recordings, 

Performance right, Sound recordings. 

Proposed Regulations 

For the reasons set forth in the 

preamble, the Copyright Royalty Judges 

propose to amend part 384 of chapter III 

of title 37 of the Code of Federal 

Regulations as follows: 

PART 384—RATES AND TERMS FOR 

THE MAKING OF EPHEMERAL 

RECORDINGS BY BUSINESS 

ESTABLISHMENT SERVICES 

■ 1. The authority citation for part 384 

continues to read as follows: 

Authority: 17 U.S.C. 112(e), 801(b)(1). 

§ 384.1 [Amended] 

■ 2. In § 384.1(a), remove the phrase 

‘‘January 1, 2019, through December 31, 

2023’’ and add in its place ‘‘January 1, 

2024, through December 31, 2028’’. 

■ 3. In § 384.3, revise paragraphs (a) and 

(b) to read as follows: 

§ 384.3 Royalty fees for ephemeral 

recordings. 

(a) Basic royalty rate. (1) For the 

making of any number of Ephemeral 

Recordings in the operation of a 

Business Establishment Service, a 

Licensee shall pay a royalty equal to the 

following percentages of such Licensee’s 

‘‘Gross Proceeds’’ derived from the use 

in such service of musical programs that 

are attributable to recordings subject to 

protection under title 17, United States 

Code: 

TABLE 1 TO PARAGRAPH (a)(1) 

Year Rate (%) 

2024 ...................................... 14.0 

2025 ...................................... 14.5 

2026 ...................................... 14.75 

2027 ...................................... 15.0 

2028 ...................................... 15.0 

(2) Gross Proceeds as used in this 

section means all fees and payments, 

including those made in kind, received 


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