83782 Federal Register / Vol. 89, No. 202 / Friday, October 18, 2024 / Rules and Regulations 

1 87 FR 59498 (Sept. 30, 2022), codified at 31 CFR 

1010.380. 

2The CTA is Title LXIV of the William M. (Mac) 

Thornberry National Defense Authorization Act for 

Fiscal Year 2021, Public Law 116–283 (Jan. 1, 

2021). Division F of the NDAA is the Anti-Money 

Laundering Act of 2020, which includes the CTA. 

Section 6403 of the CTA, among other things, 

amends the Bank Secrecy Act (BSA) by adding a 

new section 5336, Beneficial Ownership 

Information Reporting Requirements, to subchapter 

II of chapter 53 of title 31, United States Code. 

3 31 U.S.C. 5336(b)(1). 

4 31 U.S.C. 5336(a)(11)(A). 

5 31 U.S.C. 5336(a)(11)(B). 

6 31 U.S.C. 5336(a)(11)(B)(xvi). 

7 31 CFR 1010.380(c)(2)(xvi). 

8FinCEN had cross-referenced both (A) and (D) in 

the proposed rule, 86 FR 69920 (Dec. 8, 2021). 

9FinCEN Frequently Asked Question L.8. (Jun. 

10, 2024) available at https://www.fincen.gov/boifaqs. 

in the Federal Register of September 20, 

2024. The final rule inadvertently 

omitted the effective date for a provision 

in the regulatory text. This document 

corrects the error in the DATES portion. 

DATES: Effective February 3, 2025. 

FOR FURTHER INFORMATION CONTACT: 

Joyce Strong, Office of Policy, 

Legislation, and International Affairs, 

Food and Drug Administration, 10903 

New Hampshire Ave., Silver Spring, MD 

20993, 301–796–9148. 

SUPPLEMENTARY INFORMATION: In FR Doc. 

2024–21231, published in the Federal 

Register of Friday, September 20, 2024 

(89 FR 77019), on page 77019, in the 

third column, the DATES section is 

corrected to read as follows: 

DATES: Effective date: This rule is 

effective February 3, 2025, except for 

amendatory instruction number 3, 

amending 21 CFR 16.1(b)(2), which is 

effective December 18, 2025. Either 

electronic or written comments on the 

direct final rule or its companion 

proposed rule must be submitted by 

December 4, 2024. If FDA receives no 

significant adverse comments within the 

specified comment period, the Agency 

intends to publish a document 

confirming the effective date of the final 

rule in the Federal Register within 30 

days after the comment period on this 

direct final rule ends. If timely 

significant adverse comments are 

received, the Agency will publish a 

document in the Federal Register 

withdrawing this direct final rule within 

30 days after the comment period on 

this direct final rule ends. 

Dated: October 10, 2024. 

Eric Flamm, 

Acting Associate Commissioner for Policy. 

[FR Doc. 2024–24100 Filed 10–17–24; 8:45 am] 

BILLING CODE 4164–01–P 

DEPARTMENT OF THE TREASURY 

Financial Crimes Enforcement Network 

31 CFR Part 1010 

RIN 1506–AB49 

Update to the Public Utility Exemption 

Under the Beneficial Ownership 

Information Reporting Rule 

AGENCY: Financial Crimes Enforcement 

Network (FinCEN), Treasury. 

ACTION: Final rule. 

SUMMARY: FinCEN is publishing this 

final rule to clarify an exemption under 

the beneficial ownership information 

reporting rule that FinCEN published on 

September 30, 2022. This rule modifies 

the language exempting certain public 

utilities from the definition of 

‘‘reporting company’’ in the beneficial 

ownership information reporting rule to 

more clearly implement the language of 

the exemption found in the Corporate 

Transparency Act. 

DATES: This rule is October 18, 2024. 

FOR FURTHER INFORMATION CONTACT: The 

FinCEN Regulatory Support Section at 

1–800–767–2825 or electronically at 

frc@fincen.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

On September 30, 2022, FinCEN 

issued the beneficial ownership 

information (BOI) reporting rule 

(‘‘Reporting Rule’’).1 That rule 

implemented the reporting requirements 

of section 6403 of the Corporate 

Transparency Act (CTA), enacted into 

law as part of the National Defense 

Authorization Act of Fiscal Year 2021 

(NDAA).2 The CTA requires certain 

types of domestic and foreign entities, 

called ‘‘reporting companies,’’ to submit 

information about ‘‘beneficial owners’’ 

to FinCEN.3 The CTA generally defines 

a reporting company as a corporation, 

limited liability company, or other 

similar entity that is created or 

registered to do business in the United 

States by the filing of a document with 

a secretary of state or similar office 

under the law of a State or Indian 

Tribe.4 The CTA exempts twenty-three 

categories of entities from that 

definition.5 One such exemption is for 

‘‘a public utility that provides 

telecommunications services, electrical 

power, natural gas, or water and sewer 

services within the United States.’’ 6

In the Reporting Rule, FinCEN gave 

precision to the CTA’s public utility 

exemption by making a reference to the 

Internal Revenue Code, which defines a 

regulated public utility for tax purposes. 

The Reporting Rule states that the 

exemption applies to ‘‘[a]ny entity that 

is a regulated public utility as defined 

in 26 U.S.C. 7701(a)(33)(A) that 

provides telecommunications services, 

electrical power, natural gas, or water 

and sewer services within the United 

States.’’ 7

While the CTA’s public utility 

exemption mentions four types of 

public utilities (telecommunications 

services, electrical power, natural gas, 

and water and sewer services), 

questions have arisen about the 

application of the exemption to 

providers of telecommunications 

services because the specific provision 

cross-referenced in the Internal Revenue 

Code definition—subparagraph (A) of 26 

U.S.C. 7701(a)(33)—is only part of the 

definition of a regulated public utility 

that provides telecommunications 

services. Unlike covered providers of 

electrical power, natural gas, and water 

and sewer services, which are defined 

in subparagraph (A), covered providers 

of telecommunications services are 

defined by operation of subparagraphs 

(D) and (A) together. Subparagraph (D) 

specifies that a regulated public utility 

includes ‘‘a corporation engaged in the 

furnishing or sale of telephone or 

telegraph service, if the rates for such 

furnishing or sale meet the requirements 

of subparagraph (A),’’ and subparagraph 

(A) sets forth those requirements with 

regard to rates. FinCEN intended to 

cross-reference both of these provisions 

in the Reporting Rule’s public utility 

exemption but inadvertently omitted a 

reference to subparagraph (D) in the 

final rule.8

On June 10, 2024, FinCEN issued 

guidance in the form of a Frequently 

Asked Question clarifying that the 

CTA’s exemption for public utilities 

includes a corporation engaged in the 

furnishing or sale of telephone or 

telegraph services if the rates for such 

furnishing or sale meet the requirements 

of 26 U.S.C. 7701(a)(33)(A), as specified 

in 26 U.S.C. 7701(a)(33)(D).9

II. The Final Rule 

In this final rule, FinCEN is amending 

its regulations, consistent with its June 

10, 2024 guidance, to make clear that 

certain telecommunications services 

providers are exempt from reporting 

requirements under the CTA. To avoid 

any confusion arising from the crossreference to subparagraph (A), FinCEN 

is adding a cross-reference to 

subparagraph (D). As amended, the 

regulation will provide as follows (new 

language in bold italics): ‘‘(xvi) Public 

utility. Any entity that is a regulated 

public utility as defined in 26 U.S.C. 

7701(a)(33)(A) or (D) that provides 


khammond on DSKJM1Z7X2PROD with RULES
Federal Register / Vol. 89, No. 202 / Friday, October 18, 2024 / Rules and Regulations 83783 

10See generally 5. U.S.C. 601 et seq. 

11The U.S. Bureau of Economic Analysis 

reported the annual value of the gross domestic 

product (GDP) deflator in 1995 (the year in which 

UMRA was enacted) as 66.939; and in 2023 as 

123.273. See U.S. Bureau of Economic Analysis, 

‘‘Table 1.1.9. Implicit Price Deflators for Gross 

Domestic Product’’ (accessed Sept. 16, 2024). Thus, 

the inflation adjusted estimate for $100 million is 

123.273 divided by 66.939 and then multiplied by 

100, or $184.157 million. 

12See generally 44 U.S.C. Chapter 35, 5 CFR part 

1320. 

13 5 U.S.C. 804(2). 

telecommunications services, electrical 

power, natural gas, or water and sewer 

services within the United States.’’ This 

amendment will more clearly conform 

the regulation’s language to the scope of 

the CTA’s exemption, making it easier 

for covered entities to understand their 

compliance obligations. 

III. Public Participation 

Because this final rule is a technical 

clarification that does not change the 

scope of the public utility exemption, 

FinCEN believes it is unnecessary to 

solicit comment on this rule. As 

explained above in Section II, FinCEN 

intended the Reporting Rule’s public 

utility exemption to include 

telecommunications services providers, 

as set forth in the CTA, and understood 

the reference to 26 U.S.C. 7701(a)(33)(A) 

to include them. This final rule makes 

FinCEN’s interpretation of the CTA and 

the Reporting Rule more clear, without 

altering the legal rights and 

responsibilities of any person. FinCEN 

therefore finds that it has good cause to 

dispense with notice and comment, 

pursuant to 5 U.S.C. 553(b)(B). 

IV. Effective Date 

Because this rule does not impose any 

obligations on the public, instead 

simply clarifying an existing 

exemption’s scope, FinCEN finds good 

cause for making this rule effective 

immediately upon publication in the 

Federal Register, as permitted by 5 

U.S.C. 553(d)(3). 

V. Compliance With Other Authorities 

Executive Orders 12866, 13563, and 

14094 direct agencies to assess costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic 

environmental, public health and safety 

effects, distributive impacts, and 

equity). Executive Order 13563 

emphasizes the importance of 

quantifying both costs and benefits, of 

reducing costs, of harmonizing rules, 

and of promoting flexibility. This rule 

would not have an annual effect on the 

economy of $200 million or otherwise 

constitute a ‘‘significant regulatory 

action’’ as defined under section 3(f)(1) 

of Executive Order 12866, as amended. 

Accordingly, a regulatory impact 

analysis is not required. 

Because no notice of proposed 

rulemaking is required, the provisions 

of the Regulatory Flexibility Act do not 

apply. 

The Regulatory Flexibility Act, Public 

Law 96–354, applies only to rules for 

which an agency publishes a general 

NPRM pursuant to 5 U.S.C. 553(b).10

This rule is being immediately 

published as a final rule; it was not 

preceded by an NPRM. Therefore, the 

Regulatory Flexibility Act does not 

apply to it. 

Section 202 of the Unfunded 

Mandates Reform Act of 1995 (UMRA), 

Public Law 104–4, requires that an 

agency prepare a budgetary impact 

statement before promulgating a rule 

that includes a Federal mandate that 

may result in expenditure by state, 

local, and Tribal governments, in the 

aggregate, or by the private sector, of 

$184 million or more in any one year.11

FinCEN has determined that this rule 

will not result in expenditures by state, 

local, and tribal governments, or by the 

private sector, of $184 million or more. 

Accordingly, FinCEN has not prepared 

a budgetary impact statement or 

specifically addressed regulatory 

alternatives. 

The provisions of the Paperwork 

Reduction Act of 1995, Public Law 104– 

13, and its implementing regulations do 

not apply to this rule because there are 

no new or revised recordkeeping or 

reporting requirements.12

This rule is not a major rule as 

defined by the Congressional Review 

Act, Public Law 104–121.13 FinCEN, 

however, is submitting reports under 

the CRA to both Houses of Congress and 

to the Comptroller General. 

List of Subjects in 31 CFR Part 1010 

Administrative practice and 

procedure, Aliens, Authority 

delegations (Government agencies), 

Banks and banking, Brokers, Business 

and industry, Commodity futures, 

Currency, Citizenship and 

naturalization, Electronic filing, Federal 

savings associations, Federal-States 

relations, Foreign persons, Holding 

companies, Indian—law, Indians, 

Indians—tribal government, Insurance 

companies, Investment advisers, 

Investment companies, Investigations, 

Law enforcement, Penalties, Reporting 

and recordkeeping requirements, Small 

businesses, Securities, Terrorism, Time. 

Authority and Issuance 

For the reasons set forth in the 

preamble, part 1010 of chapter X of title 

31 of the Code of Federal Regulations is 

amended as follows: 

PART 1010—GENERAL PROVISIONS 

■ 1. The authority citation for part 1010 

is revised to read as follows: 

Authority: 12 U.S.C. 1829b and 1951– 

1959; 31 U.S.C. 5311–5314, 5316–5336; title 

III, sec. 314 Pub. L. 107–56, 115 Stat. 307; 

sec. 2006, Pub. L. 114–41, 129 Stat. 457; sec. 

701 Pub. L. 114–74, 129 Stat. 599; sec. 6403, 

Pub. L. 116–283, 134 Stat. 3388. 

■ 2. In § 1010.380, revise paragraph 

(c)(2)(xvi) to read as follows: 

§ 1010.380 Reports of beneficial 

ownership information. 

* * * * * 

(c) * * * 

(2) * * * 

(xvi) Public utility. Any entity that is 

a regulated public utility as defined in 

26 U.S.C. 7701(a)(33)(A) or (D) that 

provides telecommunications services, 

electrical power, natural gas, or water 

and sewer services within the United 

States. 

* * * * * 

Andrea M. Gacki, 

Director, Financial Crimes Enforcement 

Network. 

[FR Doc. 2024–23920 Filed 10–17–24; 8:45 am] 

BILLING CODE 4810–02–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket Number USCG–2024–0896] 

RIN 1625–AA00 

Safety Zone; Gallagher Station, Ohio 

River, New Albany, IN 

AGENCY: Coast Guard, DHS. 

ACTION: Temporary final rule. 

SUMMARY: The Coast Guard is 

establishing a temporary safety zone for 

all navigable waters from mile marker 

607 to 612 of the Ohio River in New 

Albany, IN. The safety zone is needed 

to protect personnel, vessels, and the 

marine environment from potential 

hazards created by the demolition at 

Duke Energy Gallagher Station. Entry of 

vessels or persons into this zone is 

prohibited unless specifically 

authorized by the Captain of the Port, 

Sector Ohio Valley. 


khammond on DSKJM1Z7X2PROD with RULES