80950 Federal Register / Vol. 88, No. 223 / Tuesday, November 21, 2023 / Rules and Regulations 

1 78 FR 76728 (Dec. 19, 2013). 

2 12 CFR 721.3(b)(2). 

3 26 U.S.C. 501(c)(3). 

PART 70—DOMESTIC LICENSING OF 

SPECIAL NUCLEAR MATERIAL 

■ 11. The authority citation for part 70 

continues to read as follows: 

Authority: Atomic Energy Act of 1954, 

secs. 51, 53, 57(d), 108, 122, 161, 182, 183, 

184, 186, 187, 193, 223, 234, 274, 1701 (42 

U.S.C. 2071, 2073, 2077(d), 2138, 2152, 2201, 

2232, 2233, 2234, 2236, 2237, 2243, 2273, 

2282, 2021, 2297f); Energy Reorganization 

Act of 1974, secs. 201, 202, 206, 211 (42 

U.S.C. 5841, 5842, 5846, 5851); Nuclear 

Waste Policy Act of 1982, secs. 135, 141 (42 

U.S.C. 10155, 10161); 44 U.S.C. 3504 note. 

Sections 70.1(c) and 70.20a(b) also issued 

under secs. 135, 141, Pub. L. 97–425, 96 Stat. 

2232, 2241 (42 U.S.C. 10155, 10161). 

Section 70.21(g) also issued under Atomic 

Energy Act sec. 122 (42 U.S.C. 2152). 

Section 70.31 also issued under Atomic 

Energy Act sec. 57(d) (42 U.S.C. 2077(d)). 

Sections 70.36 and 70.44 also issued under 

Atomic Energy Act sec. 184 (42 U.S.C. 2234). 

Section 70.81 also issued under Atomic 

Energy Act secs. 186, 187 (42 U.S.C. 2236, 

2237). 

Section 70.82 also issued under Atomic 

Energy Act sec. 108 (42 U.S.C. 2138). 

■ 12. In § 70.22: 

■ a. Amend paragraph (f) by 

redesignating footnote 2 as footnote 1. 

■ b. Amend paragraph (i)(3)(viii) by 

redesignating footnote 1 as footnote 2 

and revising newly redesignated 

footnote 2. 

The revision reads as follows: 

§ 70.22 Contents of applications. 

* * * * * 

(i) * * * 

(3) * * * 

(viii) * * * 

[2] These reporting requirements do not 

supersede or release licensees of complying 

with the requirements under the Emergency 

Planning and Community Right-to-Know Act 

of 1986, Title III, Public Law 99–499 or other 

state or Federal reporting requirements. 

§ 70.23 [Amended] 

■ 13. Amend paragraph (b) of § 70.23 by 

removing the superscript ‘‘[3]’’ and 

adding in its place the superscript ‘‘[2]’’ 

and redesignating footnote 3 as footnote 

2. 

§ 70.24 [Amended] 

■ 14. Amend paragraph (d)(1) of § 70.24 

by removing ‘‘ombined’’ and adding in 

its place ‘‘combined’’. 

PART 110—EXPORT AND IMPORT OF 

NUCLEAR EQUIPMENT AND 

MATERIAL 

■ 15. The authority citation for part 110 

continues to read as follows: 

Authority: Atomic Energy Act of 1954, 

secs. 11, 51, 53, 54, 57, 62, 63, 64, 65, 81, 

82, 103, 104, 109, 111, 121, 122, 123, 124, 

126, 127, 128, 129, 133, 134, 161, 170H, 181, 

182, 183, 184, 186, 187, 189, 223, 234 (42 

U.S.C. 2014, 2071, 2073, 2074, 2077, 2092, 

2093, 2094, 2095, 2111, 2112, 2133, 2134, 

2139, 2141, 2151, 2152, 2153, 2154, 2155, 

2156, 2157, 2158, 2160c, 2160d, 2201, 2210h, 

2231, 2232, 2233, 2234, 2236, 2237, 2239, 

2273, 2282); Energy Reorganization Act of 

1974, sec. 201 (42 U.S.C. 5841); 

Administrative Procedure Act (5 U.S.C. 552, 

553); 42 U.S.C. 2139a, 2155a; 44 U.S.C. 3504 

note. 

Section 110.1(b) also issued under 22 

U.S.C. 2403; 22 U.S.C. 2778a; 50 App. U.S.C. 

2401 et seq. 

§ 110.54 [Amended] 

■ 16. In § 110.54: 

■ a. Amend the second sentence in 

paragraph (b) introductory text by 

adding the phrase ‘‘or by electronic 

submission at 110.23reports@nrc.gov’’ 

after the phrase ‘‘provided in § 110.4’’; 

and 

■ b. Amend the second sentence in 

paragraph (c) introductory text by 

adding the phrase ‘‘or by electronic 

submission at 110.26reports@nrc.gov’’ 

after the phrase ‘‘provided in § 110.4’’. 

Dated: November 7, 2023. 

For the Nuclear Regulatory Commission. 

Cindy K. Bladey, 

Chief, Regulatory Analysis and Rulemaking 

Support Branch, Division of Rulemaking, 

Environmental, and Financial Support, Office 

of Nuclear Material Safety and Safeguards. 

[FR Doc. 2023–24950 Filed 11–20–23; 8:45 am] 

BILLING CODE 7590–01–P 

NATIONAL CREDIT UNION 

ADMINISTRATION 

12 CFR Part 721 

[NCUA–2023–0043] 

RIN 3133–AF56 

Charitable Donation Accounts 

AGENCY: National Credit Union 

Administration (NCUA). 

ACTION: Final rule. 

SUMMARY: The NCUA Board (Board) is 

amending the charitable donation 

accounts (CDAs) section of the NCUA’s 

incidental powers rule. Specifically, the 

Board is adding a post or organization 

of past or present members of the 

Armed Forces of the United States, or an 

auxiliary unit or society of, or a trust or 

foundation for, any such post or 

organization recognized as exempt from 

taxation under section 501(c)(19) of the 

Internal Revenue Code (veterans’ 

organizations) to the definition of a 

‘‘qualified charity’’ that a Federal credit 

union may contribute to using a CDA. 

DATES: This rule is effective December 

21, 2023. 

FOR FURTHER INFORMATION CONTACT: 

Policy: Rick Mayfield, Senior Capital 

Markets Specialist, Office of 

Examination and Insurance; Heather 

Murphy, Consumer Compliance Policy 

and Outreach Officer, Office of 

Consumer Financial Protection. Legal: 

Justin M. Anderson, Senior Staff 

Attorney, Office of General Counsel, 

1775 Duke Street, Alexandria, VA 

22314–3428. Rick Mayfield can be 

reached at (703) 518–6501; Heather 

Murphy can be reached at (703) 664– 

3102; and Justin Anderson can be 

reached at (703) 518–6540. 

SUPPLEMENTARY INFORMATION: 

I. Background 

A. History of the Current Rule 

The Board approved the current CDA 

rule at its December 2013 meeting (2013 

final rule).1 The 2013 final rule 

permitted Federal credit unions to fund 

a CDA, which may hold investments 

that are otherwise impermissible for 

Federal credit unions, for use as a 

charitable contribution or donation 

under their incidental powers authority. 

The 2013 final rule defined a CDA as a 

hybrid charitable and investment 

vehicle that a Federal credit union may 

fund to provide charitable contributions 

and donations to a qualified charity. 

The 2013 final rule further defined 

‘‘qualified charity’’ 2 as a charitable 

organization or other non-profit entity 

recognized as exempt from taxation 

under section 501(c)(3) of the Internal 

Revenue Code.3

B. Scope of ‘‘Qualified Charity’’ 

As noted in the preceding section, the 

2013 final rule permitted the use of 

CDAs as an incidental power for Federal 

credit unions. As CDAs can be funded 

with investments that are impermissible 

for Federal credit unions, the Board 

limited the scope of organizations that 

could be considered a ‘‘qualified 

charity’’ for purposes of the CDA rule. 

The 2013 final rule required that a 

‘‘qualified charity’’ be a section 

501(c)(3) entity as defined by the 

Internal Revenue Code. These 

organizations are non-profit and 

organized and operated exclusively for 

charitable purposes. Because CDAs can 

be funded with impermissible 

investments, the Board believes it is 

necessary to keep in place distinct 

limits on groups that are beneficiaries of 

a CDA. As such, any group the Board 

would consider adding as a ‘‘qualified 


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Federal Register / Vol. 88, No. 223 / Tuesday, November 21, 2023 / Rules and Regulations 80951 

4 88 FR 34792 (May 31, 2023). 

5 26 U.S.C. 503(c)(19); 26 CFR 1–501(c)(19)–1. See 

https://www.irs.gov/charities-non-profits/other-nonprofits/veterans-organizations. 6 44 U.S.C. 3507(d); 5 CFR part 1320. 

charity’’ must be both a non-profit and 

be organized for a charitable purpose. 

II. Proposed Rule and Comments 

A. Veterans’ Organizations as a 

Qualified Charity 

At its May 2023 meeting, the Board 

issued a proposed rule to amend the 

CDA rule by permitting veterans’ 

organizations recognized as exempt 

from taxation under section 501(c)(19) 

of the Internal Revenue Code to be 

included as a ‘‘qualified charity’’ as 

defined in the CDA rule.4 The Board 

noted that under section 501(c)(19), as 

described on the official Internal 

Revenue Service website, veterans’ 

organizations must meet the following 

requirements: 

• It must be organized in the United 

States or any of its possessions; 

• At least 75 percent of its members 

must be past or present members of the 

United States Armed Forces; 

• At least 97.5 percent of its members 

must be: 

Æ present or former members of the 

United States Armed Forces, 

Æ cadets (including only students in 

college or university ROTC programs or 

at Armed Services academies), or 

Æ spouses, widows, widowers, 

ancestors, or lineal descendants of 

individuals referred to in the first or 

second bullet; 

• It must be operated exclusively for 

one or more of the following purposes: 

Æ to promote the social welfare of the 

community (e.g., to promote the 

common good and general welfare of the 

people of the community); 

Æ to assist disabled and needy war 

veterans and members of the United 

States Armed Forces and their 

dependents—and the widows and 

orphans of deceased veterans; 

Æ to provide entertainment, care, and 

assistance to hospitalized veterans or 

members of the United States Armed 

Forces; 

Æ to carry on programs to perpetuate 

the memory of deceased veterans and 

members of the United States Armed 

Forces and comfort their survivors; 

Æ to conduct programs for religious, 

charitable, scientific, literary or 

educational purposes; 

Æ to sponsor or participate in 

activities of a patriotic nature; 

Æ to provide insurance benefits for 

members or their dependents; or 

Æ to provide social and recreational 

activities for members. 

• No part of its net earnings may 

inure to the benefit of any private 

shareholder or individual. 

An organization may also be exempt 

under section 501(c)(19) as an auxiliary 

unit or society of a veterans’ post or 

organization if it meets the following 

requirements: 

• It is affiliated with, and organized 

in accordance with the bylaws and 

regulations of, a veterans’ post or 

organization described above; 

• At least 75 percent of its members 

are veterans, spouses of veterans, or 

related to a veteran within two degrees 

of consanguinity (i.e., grandparent, 

brother, sister, grandchild represent the 

most distant allowable relationships); 

• All members are either members of 

a veterans’ post or organizations 

described above, or spouses of a 

member of such post or organization, or 

are related to a member of such post or 

organization within two degrees of 

consanguinity; 

• No part of its net earning inures to 

the benefit of any private shareholder or 

individual. 

Finally, an organization may be 

exempt under section 501(c)(19) as a 

trust or foundation for a veterans’ post 

or organization if it meets the following 

requirements: 

• It is valid under local law and, if 

organized for charitable purposes, has a 

dissolution provision described in 

section 1.501(c)(3)–1(b)(4) of the Income 

Tax Regulations; 

• The corpus or income cannot be 

diverted or used other than to fund a 

veterans’ post or organization for 

charitable purposes or as an insurance 

set-aside; 

• The trust income is not 

unreasonably accumulated, and a 

substantial portion of the income is 

distributed to such veteran post or 

organization, or for exclusively 

religious, charitable, scientific, literary, 

educational or prevention of cruelty to 

children or animal purposes; 

• It is organized exclusively for one 

or more of those purposes enumerated 

above for which a veterans’ post or 

organization itself may be organized.5

The Board received seven comments 

in response to the May 2023 proposal. 

One comment was directed at taxation 

in general and, thus, is outside the 

scope of this rulemaking. The remaining 

six commenters all supported the 

proposal as written. One of these six 

commenters did request clarification of 

the applicability of the proposed 

change. In response, the Board is 

reiterating that, under this final rule, 

any ‘‘veterans’ organization’’ that meets 

the requirements in section 501(c)(19) of 

the Internal Revenue Code is a 

‘‘qualified charity’’ for purposes of the 

CDA rule. 

B. Other Organizations the Board 

Should Consider 

In addition to the foregoing, in the 

May 2023 proposal, the Board also 

asked if there are other groups, entities, 

or organizations the Board should 

consider adding to the definition of a 

‘‘qualified charity’’ to inform potential 

future rulemaking in this area. In 

response, four commenters offered 

suggestions of other groups that the 

Board should consider including as 

‘‘charitable organizations’’ under the 

CDA rule. One of these commenters 

provided a general response, suggesting 

that the Board consider adding any 

‘‘qualified charity if it serves a mission 

advancing and benefitting individuals, 

community(s), and society not able to 

provide for themselves.’’ This 

commenter went on to state, ‘‘The Board 

should consider local, community, 

social and other groups without 501(c) 

status whose mission and members 

volunteer their time (and money) who 

also seek donations and act to benefit 

the public at large to improve the 

quality of living interests of all residents 

and society.’’ The remaining three 

commenters requested the Board 

consider the following specific groups: 

• 501(c)(4): Civic Leagues, Social 

Welfare Organizations, and Local 

Associations of Employees. 

• 501(c)(5): Labor, Agricultural, and 

Horticultural Organizations. 

• 501(c)(6): Business Leagues, 

Chambers of Commerce, and Real Estate 

Boards. 

• 501(c)(7): Social and Recreational 

Clubs. 

• 501(c)(29): Qualified Nonprofit 

Health Insurance Issuers. 

The Board will retain these 

suggestions to inform any future 

rulemakings in this area. 

III. Regulatory Procedures 

A. Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(PRA) applies to a rulemaking in which 

an agency creates a new or amends 

existing information collection 

requirements.6 For purposes of the PRA, 

an information collection requirement 

may take the form of a reporting, 

recordkeeping, or a third-party 

disclosure requirement. The NCUA may 

not conduct or sponsor, and the 

respondent is not required to respond to 

an information collection, unless it 

displays a valid Office of Management 


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80952 Federal Register / Vol. 88, No. 223 / Tuesday, November 21, 2023 / Rules and Regulations 

7 5 U.S.C. 601 et seq. 

8 Id. at 603(a); NCUA Interpretive Ruling and 

Policy Statement 15–2. 

9 5 U.S.C. 551. 

10 Id. 

and Budget (OMB) control number. 

OMB has approved the current 

information collection requirements and 

assigned them control number 3133– 

0133. This rule adds a new entity to the 

definition of a ‘‘qualified charity.’’ 

NCUA does not anticipate an increase in 

the recordkeeping requirement 

associated with CDAs. 

B. Regulatory Flexibility Act 

The Regulatory Flexibility Act 7

requires the NCUA to prepare an 

analysis to describe any significant 

economic impact a regulation may have 

on a substantial number of small entities 

(defined as credit unions with under 

$100 million in assets).8 This rule 

merely adds an additional category of 

permissible entities to which a Federal 

credit union may donate through a CDA. 

Currently, there are only 136 Federal 

credit unions utilizing CDAs, with an 

average size of approximately $1.74 

billion. Of these 136, only 18 are ‘‘small 

entities,’’ as defined in the first sentence 

of this paragraph. The NCUA estimates 

that a limited number of Federal credit 

unions would utilize the authority 

granted in this rule. In addition, as the 

rule merely adds another category of 

permissible entities a Federal credit 

union may donate to through a CDA, the 

NCUA does not find that this rule 

would impose a cost or burden on any 

Federal credit unions. As such, the 

NCUA certifies that this rule will not 

have a significant economic impact on 

a substantial number of small entities. 

C. Executive Order 13132 

Executive Order 13132 encourages 

independent regulatory agencies to 

consider the impact of their actions on 

State and local interests. The NCUA, an 

independent regulatory agency as 

defined in 44 U.S.C. 3502(5), voluntarily 

complies with the Executive Order to 

adhere to fundamental federalism 

principles. 

This rule will not have substantial 

direct effects 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. The rule will 

affect only Federal credit unions. 

Federally insured, State-chartered credit 

unions derive their investment and 

incidental powers authority from State 

law, and the NCUA’s regulations do not 

determine the permissibility of such 

investments or activities. The NCUA has 

therefore determined that this rule does 

not constitute a policy that has 

federalism implications for purposes of 

the Executive Order. 

D. Assessment of Federal Regulations 

and Policies on Families 

The NCUA has determined that this 

rule will not affect family well-being 

within the meaning of section 654 of the 

Treasury and General Government 

Appropriations Act, 1999, Public Law 

105–277, 112 Stat. 2681 (1998). The 

final rule could increase charitable 

donations by Federal credit unions to 

organizations that provide benefits or 

services to veterans’ households, but the 

Board believes that the connection will 

not be direct and is uncertain. 

E. Small Business Regulatory 

Enforcement Fairness Act— 

Congressional Review Act 

The Congressional Review chapter of 

the Small Business Regulatory 

Enforcement Fairness Act of 1996 

(SBREFA) generally provides for 

congressional review of agency rules.9 A 

reporting requirement is triggered in 

instances where the NCUA issues a final 

rule as defined in the Administrative 

Procedure Act.10 Besides being subject 

to congressional oversight, an agency 

rule may also be subject to a delayed 

effective date if it is a ‘‘major rule.’’ The 

NCUA does not believe this rule is a 

‘‘major rule’’ within the meaning of the 

relevant sections of the statute. As 

required by the statute, the NCUA will 

submit this final rule to OMB for it to 

determine if this final rule is a ‘‘major 

rule’’ for purposes of the statute. The 

NCUA also will file appropriate reports 

with Congress and the Government 

Accountability Office so this rule may 

be reviewed. 

List of Subjects in 12 CFR Part 721 

Credit unions. 

By the NCUA Board on November 16, 

2023. 

Melane Conyers-Ausbrooks, 

Secretary of the Board. 

For the reasons discussed in the 

preamble, the NCUA Board is amending 

12 CFR part 721 as follows: 

PART 721—INCIDENTAL POWERS 

■ 1. The authority citation for part 721 

continues to read as follows: 

Authority: 12 U.S.C. 1757(17), 1766, and 

1789. 

■ 2. Amend § 721.3 by revising 

paragraph (b)(2)(vii)(B) to read as 

follows: 

§ 721.3 What categories of activities are 

preapproved as incidental powers 

necessary or requisite to carry on a credit 

union’s business? 

* * * * * 

(b) * * * 

(2) * * * 

(vii) * * * 

(B) Qualified charity is a charitable 

organization or other non-profit entity 

recognized as exempt from taxation 

under section 501(c)(3) or 501(c)(19) of 

the Internal Revenue Code. 

* * * * * 

[FR Doc. 2023–25749 Filed 11–20–23; 8:45 am] 

BILLING CODE 7535–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2023–2140; Project 

Identifier AD–2023–01071–T; Amendment 

39–22590; AD 2023–22–06] 

RIN 2120–AA64 

Airworthiness Directives; Lockheed 

Martin Corporation/Lockheed Martin 

Aeronautics Company Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule; request for 

comments. 

SUMMARY: The FAA is superseding 

Airworthiness Directive (AD) 96–12–20, 

which applied to certain Lockheed 

Martin Corporation/Lockheed Martin 

Aeronautics Company Model 382, 382B, 

382E, 382F, and 382G airplanes. AD 96– 

12–20 required visual inspections to 

detect loose, missing, or deformed 

fasteners in the upper truss mounts of 

certain engines, visual inspections to 

detect cracking in the associated lugs, 

repetitive ultrasonic inspections to 

detect cracking of the upper lugs, and 

replacement of damaged or cracked 

parts. AD 96–12–20 also provided for an 

optional terminating action for the 

repetitive inspections. This AD was 

prompted by reports of fatigue cracking 

of the lugs of the upper truss mount, 

and by reports of cracks found prior to 

the initial inspection times required by 

AD 96–12–20 and the determination 

that the terminating action is no longer 

valid. This AD requires one-time 

inspections for cracked or severed 

engine truss mount upper lugs of the 

outboard engines, and replacement of 

the engine truss mount if necessary. 

This AD also revises the applicability to 

include all Model 382, 382B, 382E, 

382F, and 382G airplanes, and all Model 


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