Federal Register / Vol. 88, No. 195 / Wednesday, October 11, 2023 / Proposed Rules 70409 

50The covered institution may seek legal advice 

(from in-house or outside legal advisors) regarding 

any breach, including known or suspected violation 

of law, but the covered institution’s policies and 

processes should state that seeking legal advice 

does not abrogate the requirement to report any 

breach. 

51See, e.g., 12 CFR part 353. 

F. Processes Governing Identification of 

and Response to Violations of Law or 

Regulations. 

The board should establish, and the 

covered institution should adhere to, 

processes 50 that require front line units and 

the independent risk management unit, 

consistent with their respective 

responsibilities to: 

1. Identify known or suspected violations 

of law or regulations applicable to the 

activities conducted by their units. 

2. Distinguish between violations of law or 

regulations that appear largely technical, 

inadvertent, or insignificant and those that 

appear willful or may involve dishonesty or 

misrepresentation. 

3. Document all violations of law or 

regulations in writing and notify the CEO, 

Audit Committee, and the Risk Committee, 

including information about actions that are 

being taken to return the institution to 

compliance with the applicable law or 

regulatory requirement. 

4. Ensure that known or suspected 

violations of law involving dishonesty, 

misrepresentation or willful disregard for 

requirements, whether by a customer or by 

any covered institution’s director, manager, 

employee, or person or entity performing 

services for the covered entity, are promptly 

reported as required by law or regulation 51

and to relevant law enforcement and federal 

and state agencies, and take prompt action to 

cease such activity and prevent its 

recurrence. 

5. Report all violations of law or regulation 

in a manner and on a timetable acceptable to 

the agency with jurisdiction over that law or 

regulation and establish accountability for 

resolving violations, even if the covered 

institution did not realize a loss from such 

violations. 

At least annually, the board should review 

and update, as necessary, the processes 

related to identification of and response to 

violations of law or regulations. 

Federal Deposit Insurance Corporation. 

By order of the Board of Directors. 

Dated at Washington, DC, on October 3, 

2023. 

James P. Sheesley, 

Assistant Executive Secretary. 

[FR Doc. 2023–22421 Filed 10–10–23; 8:45 am] 

BILLING CODE 6714–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2023–1991; Project 

Identifier AD–2023–00700–E] 

RIN 2120–AA64 

Airworthiness Directives; CFM 

International, S.A. Engines 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: The FAA proposes to adopt a 

new airworthiness directive (AD) for 

certain CFM International, S.A. (CFM) 

Model LEAP–1A23, LEAP–1A24, 

LEAP–1A24E1, LEAP–1A26, LEAP– 

1A26CJ, LEAP–1A26E1, LEAP–1A29, 

LEAP–1A29CJ, LEAP–1A30, LEAP– 

1A32, LEAP–1A33, LEAP–1A33B2, and 

LEAP–1A35A engines. This proposed 

AD was prompted by a report of 

multiple aborted takeoffs and air turnbacks (ATBs) caused by high-pressure 

compressor (HPC) stall, which was 

induced by high levels of nonsynchronous vibration (NSV). 

Additional manufacturer investigation 

revealed that wear on the No. 3 bearing 

spring finger housing can lead to high 

levels of NSV. This proposed AD would 

require initial and repetitive 

calculations of the levels of NSV, 

inspection of the stage 2 high-pressure 

turbine (HPT) nozzle assembly 

honeycomb and HPT stator stationary 

seal honeycomb and, depending on the 

results of the calculations and 

inspections, replacement of certain 

parts. This proposed AD would also 

require replacement of the No. 3 bearing 

spring finger housing. The FAA is 

proposing this AD to address the unsafe 

condition on these products. 

DATES: The FAA must receive comments 

on this proposed AD by November 27, 

2023. 

ADDRESSES: You may send comments, 

using the procedures found in 14 CFR 

11.43 and 11.45, by any of the following 

methods: 

• Federal eRulemaking Portal: Go to 

regulations.gov. Follow the instructions 

for submitting comments. 

• Fax: (202) 493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE, 

Washington, DC 20590. 

• Hand Delivery: Deliver to Mail 

address above between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. 

AD Docket: You may examine the AD 

docket at regulations.gov by searching 

for and locating Docket No. FAA–2023– 

1991; or in person at Docket Operations 

between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

The AD docket contains this NPRM, any 

comments received, and other 

information. The street address for 

Docket Operations is listed above. 

Material Incorporated by Reference: 

• For service information identified 

in this NPRM, contact CFM 

International, S.A., GE Aviation Fleet 

Support, 1 Neumann Way, M/D Room 

285, Cincinnati, OH 45215; phone: (877) 

432–3272; email: aviation.fleetsupport@

ge.com. 

• You may view this service 

information at the FAA, Airworthiness 

Products Section, Operational Safety 

Branch, 1200 District Avenue, 

Burlington, MA 01803. For information 

on the availability of this material at the 

FAA, call (817) 222–5110. 

FOR FURTHER INFORMATION CONTACT: 

Mehdi Lamnyi, Aviation Safety 

Engineer, FAA, 2200 South 216th Street, 

Des Moines, WA 98198; phone: (781) 

238–7743; email: mehdi.lamnyi@

faa.gov. 

SUPPLEMENTARY INFORMATION: 

Comments Invited 

The FAA invites you to send any 

written relevant data, views, or 

arguments about this proposal. Send 

your comments to an address listed 

under ADDRESSES. Include ‘‘Docket No. 

FAA–2023–1991; Project Identifier AD– 

2023–00700–E’’ at the beginning of your 

comments. The most helpful comments 

reference a specific portion of the 

proposal, explain the reason for any 

recommended change, and include 

supporting data. The FAA will consider 

all comments received by the closing 

date and may amend this proposal 

because of those comments. 

Except for Confidential Business 

Information (CBI) as described in the 

following paragraph, and other 

information as described in 14 CFR 

11.35, the FAA will post all comments 

received, without change, to 

regulations.gov, including any personal 

information you provide. The agency 

will also post a report summarizing each 

substantive verbal contact received 

about this NPRM. 

Confidential Business Information 

CBI is commercial or financial 

information that is both customarily and 

actually treated as private by its owner. 

Under the Freedom of Information Act 

(FOIA) (5 U.S.C. 552), CBI is exempt 

from public disclosure. If your 


lotter on DSK11XQN23PROD with PROPOSALS1
70410 Federal Register / Vol. 88, No. 195 / Wednesday, October 11, 2023 / Proposed Rules 

comments responsive to this NPRM 

contain commercial or financial 

information that is customarily treated 

as private, that you actually treat as 

private, and that is relevant or 

responsive to this NPRM, it is important 

that you clearly designate the submitted 

comments as CBI. Please mark each 

page of your submission containing CBI 

as ‘‘PROPIN.’’ The FAA will treat such 

marked submissions as confidential 

under the FOIA, and they will not be 

placed in the public docket of this 

NPRM. Submissions containing CBI 

should be sent to Mehdi Lamnyi, 

Aviation Safety Engineer, FAA, 2200 

South 216th Street, Des Moines, WA 

98198. Any commentary that the FAA 

receives which is not specifically 

designated as CBI will be placed in the 

public docket for this rulemaking. 

Background 

The FAA was notified by the engine 

manufacturer of three aborted takeoffs 

and two ATBs caused by HPC stall. 

Additional manufacturer investigation 

revealed that wear on the No. 3 bearing 

spring finger housing can lead to high 

levels of NSV, which could induce HPC 

stall. As a result of its investigation, the 

manufacturer published service 

information that specifies procedures 

for addressing this situation. This 

condition, if not addressed, could result 

in engine power loss at a critical phase 

of flight such as takeoff or climb, loss of 

engine thrust control, reduced 

controllability of the airplane, and loss 

of the airplane. 

FAA’s Determination 

The FAA is issuing this NPRM after 

determining that the unsafe condition 

described previously is likely to exist or 

develop on other products of the same 

type design. 

Related Service Information Under 1 

CFR Part 51 

The FAA reviewed CFM Service 

Bulletin (SB) LEAP–1A–72–00–0504– 

01A–930A–D, Issue 001, dated June 14, 

2023. This service information identifies 

affected No. 3 bearing spring finger 

housings and specifies procedures for 

monitoring NSV during engine 

operation. This service information also 

specifies procedures for replacing the 

No. 3 bearing spring finger housings, 

inspecting the stage 2 HPT nozzle 

assembly honeycomb and HPT stator 

stationary seal honeycomb, and 

replacing the stage 2 HPT nozzle 

assembly honeycomb and HPT stator 

stationary seal. This service information 

is reasonably available because the 

interested parties have access to it 

through their normal course of business 

or by the means identified in 

ADDRESSES. 

Proposed AD Requirements in This 

NPRM 

This proposed AD would require 

repetitive calculations of the levels of 

NSV and, depending on the results of 

the calculations, replacement of the No. 

3 bearing spring finger housing. This 

proposed AD would require, following 

the removal and replacement of the No. 

3 bearing spring finger housing, 

inspection of the stage 2 HPT nozzle 

assembly honeycomb and HPT stator 

stationary seal honeycomb for rubs and, 

depending on findings, replacement of 

the stage 2 HPT nozzle assembly 

honeycomb and HPT stator stationary 

seal. This proposed AD would also 

require replacement of the No. 3 bearing 

spring finger housing, regardless of 

calculated level of NSV, at a certain 

time. 

Interim Action 

The FAA considers that this proposed 

AD would be an interim action. The 

design approval holder is currently 

developing a modification to address 

this issue. The FAA may consider 

additional rulemaking on this subject. 

Costs of Compliance 

The FAA estimates that this AD, if 

adopted as proposed, would affect 48 

engines installed on airplanes of U.S. 

registry. The FAA estimates that 33 

engines installed on airplanes of U.S. 

registry would require replacement of 

the No. 3 bearing spring finger housing. 

The FAA estimates the following 

costs to comply with this proposed AD: 

ESTIMATED COSTS

Action Labor cost Parts cost Cost per 

product 

Cost on U.S. 

operators 

Calculate NSV data ........................................ 1 work-hour × $85 per hour = $85 ................. $0 $85 $4,080 

Replace No. 3 bearing spring finger housing 17 work-hours × $85 per hour = $1,445 ........ 64,590 66,035 2,179,155 

The FAA estimates the following 

costs to do any necessary replacement 

and inspection that would be required 

based on the results of the proposed 

calculation. The agency has no way of 

determining the number of aircraft that 

might need these replacements and 

inspections: 

ON-CONDITION COSTS

Action Labor cost Parts cost Cost per 

product 

Inspect stage 2 HPT nozzle assembly honeycomb 

and HPT stator stationary seal honeycomb.

4 work-hours × $85 per hour = $340 ........................... $0 $340 

Replace stage 2 HPT nozzle assembly honeycomb ... 8 work-hours × $85 per hour = $680 ........................... 58,536 59,216 

Replace HPT stator stationary seal ............................. 8 work-hours × $85 per hour = $680 ........................... 6,855 7,535 

Authority for This Rulemaking 

Title 49 of the United States Code 

specifies the FAA’s authority to issue 

rules on aviation safety. Subtitle I, 

section 106, describes the authority of 

the FAA Administrator. Subtitle VII: 

Aviation Programs, describes in more 

detail the scope of the Agency’s 

authority. 

The FAA is issuing this rulemaking 

under the authority described in 

Subtitle VII, Part A, Subpart III, Section 

44701: General requirements. Under 

that section, Congress charges the FAA 

with promoting safe flight of civil 

aircraft in air commerce by prescribing 

regulations for practices, methods, and 

procedures the Administrator finds 

necessary for safety in air commerce. 

This regulation is within the scope of 


lotter on DSK11XQN23PROD with PROPOSALS1
Federal Register / Vol. 88, No. 195 / Wednesday, October 11, 2023 / Proposed Rules 70411 

that authority because it addresses an 

unsafe condition that is likely to exist or 

develop on products identified in this 

rulemaking action. 

Regulatory Findings 

The FAA determined that this 

proposed AD would not have federalism 

implications under Executive Order 

13132. This proposed AD would not 

have a substantial direct effect on the 

States, on the relationship between the 

national government and the States, or 

on the distribution of power and 

responsibilities among the various 

levels of government. 

For the reasons discussed above, I 

certify this proposed regulation: 

(1) Is not a ‘‘significant regulatory 

action’’ under Executive Order 12866, 

(2) Would not affect intrastate 

aviation in Alaska, and 

(3) Would not have a significant 

economic impact, positive or negative, 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

The Proposed Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA proposes to amend 14 CFR part 

39 as follows: 

PART 39—AIRWORTHINESS 

DIRECTIVES 

■ 1. The authority citation for part 39 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40113, 44701. 

§ 39.13 [Amended] 

■ 2. The FAA amends § 39.13 by adding 

the following new airworthiness 

directive: 

CFM International, S.A.: Docket No. FAA– 

2023–1991; Project Identifier AD–2023– 

00700–E. 

(a) Comments Due Date 

The FAA must receive comments on this 

airworthiness directive (AD) by November 

27, 2023. 

(b) Affected ADs 

None. 

(c) Applicability 

This AD applies to CFM International, S.A. 

(CFM) Model LEAP–1A23, LEAP–1A24, 

LEAP–1A24E1, LEAP–1A26, LEAP–1A26CJ, 

LEAP–1A26E1, LEAP–1A29, LEAP–1A29CJ, 

LEAP–1A30, LEAP–1A32, LEAP–1A33, 

LEAP–1A33B2, and LEAP–1A35A engines 

with an installed No. 3 bearing spring finger 

housing having part number (P/N) 

2629M62G01 and a serial number identified 

in Table 1 or Table 2 of CFM Service Bulletin 

(SB) LEAP–1A–72–00–0504–01A–930A–D, 

Issue 001, dated June 14, 2023 (CFM SB 

LEAP–1A–72–00–0504–01A–930A–D). 

(d) Subject 

Joint Aircraft System Component (JASC) 

Code 7230, Turbine Engine Compressor 

Section. 

(e) Unsafe Condition 

This AD was prompted by a report of 

multiple aborted takeoffs and air turn-backs 

caused by high-pressure compressor (HPC) 

stall, which was induced by high levels of 

non-synchronous vibration (NSV), and an 

additional manufacturer investigation that 

revealed wear on the No. 3 bearing spring 

finger housing. The FAA is issuing this AD 

to prevent HPC stall. The unsafe condition, 

if not addressed, could result in engine 

power loss at a critical phase of flight such 

as takeoff or climb, loss of engine thrust 

control, reduced controllability of the 

airplane, and loss of the airplane. 

(f) Compliance 

Comply with this AD within the 

compliance times specified, unless already 

done. 

(g) Required Actions 

(1) Within 125 flight cycles (FCs) after the 

effective date of this AD and thereafter at 

intervals not to exceed 125 FCs, calculate the 

NSV data in accordance with the 

Accomplishment Instructions, paragraphs 

5.A.(1) and 5.A.(3), or 5.B.(1) and 5.B.(3) of 

CFM SB LEAP–1A–72–00–0504–01A–930A– 

D. 

(2) If, during any calculation required by 

paragraph (g)(1) of this AD, the NSV data 

exceeds the limits specified in the 

Accomplishment Instructions, paragraph 

5.A.(4)(a)1 or 5.B.(4)(a)1 of CFM SB LEAP– 

1A–72–00–0504–01A–930A–D, discontinue 

the calculations required by paragraph (g)(1) 

of this AD and within 150 FCs of performing 

the calculation: 

(i) Remove from service the No. 3 bearing 

spring finger housing having P/N 

2629M62G01 and a serial number identified 

in Table 1 or Table 2 of CFM SB LEAP–1A– 

72–00–0504–01A–930A–D and replace with 

a part eligible for installation. 

(ii) Inspect the stage 2 high-pressure 

turbine (HPT) nozzle assembly honeycomb 

for rubs in accordance with the 

Accomplishment Instructions, paragraphs 

5.A.(4)(a)3b1) or 5.B.(4)(a)3b1) of CFM SB 

LEAP–1A–72–00–0504–01A–930A–D. 

(iii) Inspect the HPT stator stationary seal 

honeycomb for rubs in accordance with the 

Accomplishment Instructions, paragraphs 

5.A.(4)(a)3b2) or 5.B.(4)(a)3b2) of CFM SB 

LEAP–1A–72–00–0504–01A–930A–D. 

(3) If, during the inspection required by 

paragraph (g)(2)(ii) of this AD, the stage 2 

HPT nozzle assembly honeycomb fails to 

meet the serviceability criteria referenced in 

the Accomplishment Instructions, paragraphs 

5.A.(4)(a)3b1) or 5.B.(4)(a)3b1) of CFM SB 

LEAP–1A–72–00–0504–01A–930A–D, before 

further flight, replace the stage 2 HPT nozzle 

assembly honeycomb. 

(4) If, during the inspection required by 

paragraph (g)(2)(iii) of this AD, the HPT 

stator stationary seal honeycomb fails to meet 

the serviceability criteria referenced in the 

Accomplishment Instructions, paragraphs 

5.A.(4)(a)3b2) or 5.B.(4)(a)3b2) of CFM SB 

LEAP–1A–72–00–0504–01A–930A–D, before 

further flight, replace the HPT stator 

stationary seal. 

(5) At the next piece-part exposure after the 

effective date of this AD, but before 

exceeding 9,900 cycles since new, replace the 

No. 3 bearing spring finger housing having P/ 

N 2629M62G01 and a serial number 

identified in Table 1 of CFM SB LEAP–1A– 

72–00–0504–01A–930A–D with a part 

eligible for installation. 

(h) Terminating Action 

Replacement of the No. 3 bearing spring 

finger housing having P/N 2629M62G01 and 

a serial number identified in Table 1 or Table 

2 of CFM SB LEAP–1A–72–00–0504–01A– 

930A–D with a part eligible for installation, 

as specified in paragraphs (g)(2)(i) and (g)(5) 

of this AD, constitutes terminating action for 

the calculations required by paragraph (g)(1) 

of this AD. 

(i) Definition 

For the purpose of this AD, a ‘‘part eligible 

for installation’’ is a No. 3 bearing spring 

finger housing that does not have P/N 

2629M62G01 and a serial number identified 

in Table 1 or Table 2 of CFM SB LEAP–1A– 

72–00–0504–01A–930A–D. 

(j) Alternative Methods of Compliance 

(AMOCs) 

(1) The Manager, AIR–520, Continued 

Operational Safety Branch, FAA, has the 

authority to approve AMOCs for this AD, if 

requested using the procedures found in 14 

CFR 39.19. In accordance with 14 CFR 39.19, 

send your request to your principal inspector 

or local Flight Standards District Office, as 

appropriate. If sending information directly 

to the manager of the branch office, send it 

to the attention of the person identified in 

paragraph (k) of this AD and email it to: ANEAD-AMOC@faa.gov. 

(2) Before using any approved AMOC, 

notify your appropriate principal inspector, 

or lacking a principal inspector, the manager 

of the local flight standards district office/ 

certificate holding district office. 

(3) For service information that contains 

steps that are labeled as Required for 

Compliance (RC), the following provisions 

apply. 

(i) The steps labeled as RC, including 

substeps under an RC step and any figures 

identified in an RC step, that are required by 

paragraph (g) of this AD must be done to 

comply with this AD. An AMOC is required 

for any deviations to RC steps required by 

paragraph (g) of this AD, including substeps 

and identified figures. 

(ii) Steps not labeled as RC may be 

deviated from using accepted methods in 

accordance with the operator’s maintenance 

or inspection program without obtaining 

approval of an AMOC, provided the RC steps, 

including substeps and identified figures, can 

still be done as specified, and the airplane 

can be put back in an airworthy condition. 


lotter on DSK11XQN23PROD with PROPOSALS1
70412 Federal Register / Vol. 88, No. 195 / Wednesday, October 11, 2023 / Proposed Rules 

1 88 FR 65908 (Sept. 26, 2023). 

(k) Related Information 

For more information about this AD, 

contact Mehdi Lamnyi, Aviation Safety 

Engineer, FAA, 2200 South 216th Street, Des 

Moines, WA 98198; phone: (781) 238–7743; 

email: mehdi.lamnyi@faa.gov. 

(l) Material Incorporated by Reference 

(1) The Director of the Federal Register 

approved the incorporation by reference 

(IBR) of the service information listed in this 

paragraph under 5 U.S.C. 552(a) and 1 CFR 

part 51. 

(2) You must use this service information 

as applicable to do the actions required by 

this AD, unless the AD specifies otherwise. 

(i) CFM International, S.A. Service Bulletin 

LEAP–1A–72–00–0504–01A–930A–D, Issue 

001, dated June 14, 2023. 

(ii) [Reserved] 

(3) For service information identified in 

this AD, contact CFM International, S.A., GE 

Aviation Fleet Support, 1 Neumann Way, M/ 

D Room 285, Cincinnati, OH 45215; phone: 

(877) 432–3272; email: 

aviation.fleetsupport@ge.com. 

(4) You may view this service information 

at FAA, Airworthiness Products Section, 

Operational Safety Branch, 1200 District 

Avenue, Burlington, MA 01803. For 

information on the availability of this 

material at the FAA, call (817) 222–5110. 

(5) You may view this service information 

that is incorporated by reference at the 

National Archives and Records 

Administration (NARA). For information on 

the availability of this material at NARA, 

email: fr.inspection@nara.gov, or go to: 

www.archives.gov/federal-register/cfr/ibrlocations.html. 

Issued on October 3, 2023. 

Ross Landes, 

Deputy Director for Regulatory Operations, 

Compliance & Airworthiness Division, 

Aircraft Certification Service. 

[FR Doc. 2023–22373 Filed 10–10–23; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[REG–109348–22] 

RIN 1545–BQ69 

Identification of Monetized Installment 

Sale Transactions as Listed 

Transactions; Hearing Cancellation 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Cancellation of a notice of 

public hearing on a proposed 

rulemaking and notice of public 

hearing. 

SUMMARY: This document cancels a 

public hearing on proposed regulations 

that would identify monetized 

installment sale transactions and 

substantially similar transactions as 

listed transactions, a type of reportable 

transaction. 

DATES: The public hearing scheduled for 

October 12, 2023, at 10 a.m. ET is 

cancelled. 

FOR FURTHER INFORMATION CONTACT: 

Vivian Hayes of the Publications and 

Regulations Branch, Associate Chief 

Counsel (Procedure and Administration) 

at (202) 317–6901 (not a toll-free 

number). 

SUPPLEMENTARY INFORMATION: A notice 

of proposed rulemaking and a notice of 

public hearing that appeared in the 

Federal Register on August 4, 2023 (88 

FR 51756) announced that a public 

hearing being held in person and by 

teleconference was scheduled for 

October 12, 2023, at 10 a.m. ET. The 

subject of the public hearing is under 26 

CFR part 1. 

The public comment period for these 

regulations expired on October 3, 2023. 

The notice of proposed rulemaking and 

notice of public hearing instructed those 

interested in testifying at the public 

hearing to submit a request to testify 

and an outline of the topics to be 

addressed. We did not receive a request 

to testify at the Public Hearing. 

Therefore, the public hearing scheduled 

for October 12, 2023, at 10 a.m. ET is 

cancelled. 

Oluwafunmilayo A. Taylor, 

Section Chief, Publications and Regulations 

Branch, Associate Chief Counsel (Procedure 

& Administration). 

[FR Doc. 2023–22468 Filed 10–10–23; 8:45 am] 

BILLING CODE 4830–01–P 

LIBRARY OF CONGRESS 

Copyright Office 

37 CFR Part 210 

[Docket No. 2022–5] 

Termination Rights, Royalty 

Distributions, Ownership Transfers, 

Disputes, and the Music Modernization 

Act 

AGENCY: U.S. Copyright Office, Library 

of Congress. 

ACTION: Supplemental notice of 

proposed rulemaking; extension of 

comment period. 

SUMMARY: The U.S. Copyright Office is 

extending the deadline to submit 

comments in connection with a 

supplemental notice of proposed 

rulemaking regarding the applicability 

of the derivative works exception to 

termination rights under the Copyright 

Act to the new statutory mechanical 

blanket license established by the Music 

Modernization Act and other matters 

relevant to identifying the proper payee 

to whom the mechanical licensing 

collective must distribute royalties. 

DATES: Initial written comments are due 

no later than 11:59 p.m. Eastern Time 

on Wednesday, November 8, 2023. 

Written reply comments are due no later 

than 11:59 p.m. Eastern Time on 

Tuesday, November 28, 2023. 

ADDRESSES: For reasons of governmental 

efficiency, the Copyright Office is using 

the regulations.gov system for the 

submission and posting of public 

comments in this proceeding. All 

comments are therefore to be submitted 

electronically through regulations.gov. 

Specific instructions for submitting 

comments are available on the 

Copyright Office’s website at https://

copyright.gov/rulemaking/mmatermination. If electronic submission of 

comments is not feasible due to lack of 

access to a computer or the internet, 

please contact the Copyright Office 

using the contact information below for 

special instructions. 

FOR FURTHER INFORMATION CONTACT: 

Rhea Efthimiadis, Assistant to the 

General Counsel, by email at meft@

copyright.gov or telephone at 202–707– 

8350. 

SUPPLEMENTARY INFORMATION: On 

September 26, 2023, the U.S. Copyright 

Office issued a supplemental notice of 

proposed rulemaking seeking comments 

from the public on questions regarding 

the applicability of the derivative works 

exception to termination rights under 

the Copyright Act to the new statutory 

mechanical blanket license established 

by the Music Modernization Act and 

other matters relevant to identifying the 

proper payee to whom the mechanical 

licensing collective must distribute 

royalties.1 The supplemental notice set 

an October 26, 2023 deadline for 

submitting initial comments and a 

November 13, 2023 deadline for reply 

comments. 


lotter on DSK11XQN23PROD with PROPOSALS1