82 FR 2892 - Civil Monetary Penalty Inflation Adjustment-Alcoholic Beverage Labeling Act
DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau Federal Register Volume 82, Issue 6 (January 10, 2017)
Alcohol and Tobacco Tax and Trade Bureau
Federal Register Volume 82, Issue 6 (January 10, 2017)
| Page Range | 2892-2893 | |
| FR Document | 2017-00082 |
[Federal Register Volume 82, Number 6 (Tuesday, January 10, 2017)] [Rules and Regulations] [Pages 2892-2893] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-00082] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF THE TREASURY Alcohol and Tobacco Tax and Trade Bureau 27 CFR Part 16 [Docket No. TTB-2017-0001; Notice No. 170] Civil Monetary Penalty Inflation Adjustment--Alcoholic Beverage Labeling Act AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury. ACTION: Notification of civil monetary penalty adjustment. ----------------------------------------------------------------------- SUMMARY: This document informs the public that the maximum penalty for violations of the Alcoholic Beverage Labeling Act (ABLA) is being adjusted in accordance with the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended. Prior to the publication of this document, any person who violated the provisions of the ABLA was subject to a civil penalty of not more than $19,787, with each day constituting a separate offense. This document announces that this maximum penalty is being increased to $20,111. DATES: The new maximum civil penalty for violations of the ABLA takes effect on January 10, 2017 and applies to penalties that are assessed after that date. FOR FURTHER INFORMATION CONTACT: Andrew L. Malone, Public Guidance Program Manager, Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW., Box 12, Washington, DC 20005; (202) 453-1039, ext. 188. SUPPLEMENTARY INFORMATION: Background Statutory Authority for Federal Civil Monetary Penalty Inflation Adjustments The Federal Civil Penalties Inflation Adjustment Act of 1990 (the Inflation Adjustment Act), Public Law 101-410, 104 Stat. 890, 28 U.S.C. 2461 note, requires the regular adjustment and evaluation of civil monetary penalties to maintain their deterrent effect and helps to ensure that penalty amounts imposed by the Federal Government are properly accounted for and collected. A ``civil monetary penalty'' is defined in the Inflation Adjustment Act as any penalty, fine, or other such sanction that is: (1) For a specific monetary amount as provided by Federal law, or has a maximum amount provided for by Federal law; (2) assessed or enforced by an agency pursuant to Federal law; and (3) assessed or enforced pursuant to an administrative proceeding or a civil action in the Federal courts. The Debt Collection Improvement Act of 1996 (the Improvement Act of 1996), Public Law 104-134, section 31001(s), 110 Stat. 1321, enacted on April 26, 1996, amended the Inflation Adjustment Act by requiring civil monetary penalties to be adjusted for inflation. The Inflation Adjustment Act was further amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the Improvements Act of 2015), Public Law 114-74, section 701, 129 Stat. 584, enacted on November 2, 2015. The Improvements Act of 2015 changed the method agencies use to calculate inflation adjustments to civil monetary penalties, as well as the method and frequency of future adjustments. The Improvements Act of 2015 also instructed agencies to apply its method of calculating the inflation adjustment to the original statutory penalty, rather than to penalties as they were adjusted under the Improvement Act of 1996. To account for inflation that took place between the enactment of the original penalties and the enactment of the Improvements Act of 2015, agencies must make a ``catch-up'' first adjustment through an interim final rulemaking that is published no later than July 1, 2016, and takes effect no later than August 1, 2016. Agencies shall adjust civil monetary penalties by the inflation adjustment described in section 5 of the Inflation Adjustment Act no later than January 15 of every year thereafter. The Improvements Act of 2015 also provides that any increase in a civil monetary penalty shall apply only to civil monetary penalties, including those whose associated violation predated such an increase, which are assessed after the date the increase takes effect. As amended, the Inflation Adjustment Act provides that the inflation adjustment does not apply to civil monetary penalties under the Internal Revenue Code of 1986 or the Tariff Act of 1930. Alcoholic Beverage Labeling Act The Alcohol and Tobacco Tax and Trade Bureau (TTB) administers the Federal Alcohol Administration Act (FAA Act) pursuant to section 1111(d) of the Homeland Security Act of 2002, codified at 6 U.S.C. 531(d). The Secretary has delegated various authorities through Treasury Department Order 120-01, dated December 10, 2013, (superseding Treasury Department Order 120-01, dated January 24, 2003), to the TTB Administrator to perform the functions and duties in the administration and enforcement of this law. The FAA Act contains the Alcoholic Beverage Labeling Act (ABLA) of 1988, Public Law 100-690, 27 U.S.C. 213-219a, which was enacted on November 18, 1988. Section 204 of the ABLA, codified in 27 U.S.C. 215, requires that a health warning statement appear on the labels of all containers of alcoholic beverages manufactured, imported, or bottled for sale or distribution in the United States, as well as on containers of alcoholic beverages that are manufactured, imported, bottled, or [[Page 2893]] labeled for sale, distribution, or shipment to members or units of the U.S. Armed Forces, including those located outside the United States. The health warning statement requirement applies to containers of alcoholic beverages manufactured, imported, or bottled for sale or distribution in the United States on or after November 18, 1989. The statement reads as follows: GOVERNMENT WARNING: (1) According to the Surgeon General, women should not drink alcoholic beverages during pregnancy because of the risk of birth defects. (2) Consumption of alcoholic beverages impairs your ability to drive a car or operate machinery, and may cause health problems. Section 204 of the ABLA also specifies that the Secretary of the Treasury shall have the power to ensure the enforcement of the provisions of the ABLA and issue regulations to carry out them out. In addition, section 207 of the ABLA, codified in 27 U.S.C. 218, provides that any person who violates the provisions of the ABLA is subject to a civil penalty of not more than $10,000, with each day constituting a separate offense. Most of the civil monetary penalties administered by TTB are imposed by the Internal Revenue Code of 1986, and thus are not subject to the inflation adjustment mandated by the Inflation Adjustment Act. The only civil monetary penalty enforced by TTB that is subject to the inflation adjustment is the penalty imposed by the ABLA at 27 U.S.C. 218. TTB Regulations The TTB regulations implementing the ABLA are found in 27 CFR part 16, and the regulations implementing the Inflation Adjustment Act with respect to the ABLA penalty are found in 27 CFR 16.33. This section indicates that the ABLA provides that any person who violates the provisions of this part shall be subject to a civil penalty of not more than $10,000, but also states that, pursuant to the provisions of the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended, this civil penalty is subject to periodic cost-of-living adjustment. Accordingly, any person who violates the provisions of 27 CFR part 16 shall be subject to a civil penalty of not more than the amount listed at https://www.ttb.gov/regulation_guidance/ablapenalty.html. Each day shall constitute a separate offense. To adjust the penalty, Sec. 16.33(b) indicates that TTB will provide notice in the Federal Register and at the Web site mentioned above of cost-of-living adjustments to the civil penalty for violations of this part. In this document, TTB is publishing its yearly adjustment to the maximum ABLA penalty, as required by the Inflation Adjustment Act, as amended. TTB made the initial adjustment to the ABLA penalty required by the Inflation Adjustment Act, as amended, in an interim final rule that was published and effective on July 1, 2016 (T.D. TTB-138, 81 FR 43062). Subsequent to the initial adjustment, the Improvements Act of 2015 provides that, not later than January 15 of each year after the initial adjustment, the head of each agency shall adjust each civil monetary penalty subject to the Inflation Adjustment Act, as amended, by the inflation adjustment described in section 5 of the Act. As mentioned earlier, the ABLA contains a maximum civil monetary penalty, rather than a range of minimum and maximum civil monetary penalties. For such penalties, Section 5 indicates that the inflation adjustment shall be determined by increasing the maximum penalty by the cost-of-living adjustment. The cost-of-living adjustment means the percentage (if any) by which the Consumer Price Index for all-urban consumers (CPI-U) for the month of October preceding the date of the adjustment exceeds the CPI-U for the month of October 1 year before the month of October preceding the date of the adjustment. The CPI-U in October 2015 was 237.838, and the CPI-U in October 2016 was 241.729. The rate of inflation between October 2015 and October 2016 is therefore 1.636 percent. When applied to the current ABLA penalty of $19,787, this rate of inflation yields a raw (unrounded) inflation adjustment of $323.72. Rounded to the nearest dollar, the inflation adjustment is $324, meaning that the new maximum civil penalty for violations of the ABLA will be $20,111. The new maximum civil penalty will apply to all penalties that are assessed after January 10, 2017. TTB has also updated its Web page at https://www.ttb.gov/regulation_guidance/ablapenalty.html to reflect the adjusted penalty. Signed: January 3, 2017. John J. Manfreda, Administrator. [FR Doc. 2017-00082 Filed 1-9-17; 8:45 am] BILLING CODE 4810-31-P
![2892 Federal Register / Vol. 82, No. 6 / Tuesday, January 10, 2017 / Rules and Regulations
Note 3 to paragraph (f): Paragraph (f) and ACTION: Notification of civil monetary 114–74, section 701, 129 Stat. 584,
ECCNs 9E001, 9E002 and 9E515 do not penalty adjustment. enacted on November 2, 2015. The
control the data transmitted to or from a Improvements Act of 2015 changed the
satellite or spacecraft, whether real or SUMMARY: This document informs the method agencies use to calculate
simulated, when limited to information about public that the maximum penalty for
the health, operational status, or inflation adjustments to civil monetary
violations of the Alcoholic Beverage penalties, as well as the method and
measurements or function of, or raw sensor
Labeling Act (ABLA) is being adjusted frequency of future adjustments. The
output from, the spacecraft, spacecraft
payload(s), or its associated subsystems or in accordance with the Federal Civil Improvements Act of 2015 also
components. Such information is not within Penalties Inflation Adjustment Act of instructed agencies to apply its method
the scope of information captured within the 1990, as amended. Prior to the of calculating the inflation adjustment
definition of technology in the EAR for publication of this document, any to the original statutory penalty, rather
purposes of Category 9 Product Group E. person who violated the provisions of than to penalties as they were adjusted
Examples of such information, which are the ABLA was subject to a civil penalty
commonly referred to as ‘‘housekeeping
under the Improvement Act of 1996. To
of not more than $19,787, with each day account for inflation that took place
data,’’ include (i) system, hardware, constituting a separate offense. This
component configuration, and operation between the enactment of the original
status information pertaining to
document announces that this penalties and the enactment of the
temperatures, pressures, power, currents, maximum penalty is being increased to Improvements Act of 2015, agencies
voltages, and battery charges; (ii) spacecraft $20,111. must make a ‘‘catch-up’’ first adjustment
or payload orientation or position DATES: The new maximum civil penalty through an interim final rulemaking that
information, such as state vector or for violations of the ABLA takes effect is published no later than July 1, 2016,
ephemeris information; (iii) payload raw on January 10, 2017 and applies to and takes effect no later than August 1,
mission or science output, such as images, penalties that are assessed after that
spectra, particle measurements, or field 2016. Agencies shall adjust civil
measurements; (iv) command responses; (v)
date. monetary penalties by the inflation
accurate timing information; and (vi) link FOR FURTHER INFORMATION CONTACT: adjustment described in section 5 of the
budget data. The act of processing such Andrew L. Malone, Public Guidance Inflation Adjustment Act no later than
telemetry data—i.e., converting raw data into Program Manager, Regulations and January 15 of every year thereafter. The
engineering units or readable products—or Rulings Division, Alcohol and Tobacco Improvements Act of 2015 also provides
encrypting it does not, in and of itself, cause that any increase in a civil monetary
Tax and Trade Bureau, 1310 G Street
the telemetry data to become subject to the penalty shall apply only to civil
ITAR or to ECCN 9E515 for purposes of NW., Box 12, Washington, DC 20005;
(202) 453–1039, ext. 188. monetary penalties, including those
9A515, or to ECCNs 9E001 or 9E002 for
purposes of 9A004. All classified technical SUPPLEMENTARY INFORMATION:
whose associated violation predated
data directly related to items controlled in such an increase, which are assessed
USML Category XV or ECCNs 9A515, and Background after the date the increase takes effect.
defense services using the classified Statutory Authority for Federal Civil As amended, the Inflation Adjustment
technical data, remains subject to the ITAR. Act provides that the inflation
Monetary Penalty Inflation Adjustments
This note does not affect controls in USML adjustment does not apply to civil
XV(f), ECCN 9D515, or ECCN 9E515 on The Federal Civil Penalties Inflation monetary penalties under the Internal
software source code or commands that Adjustment Act of 1990 (the Inflation Revenue Code of 1986 or the Tariff Act
control a spacecraft, payload, or associated Adjustment Act), Public Law 101–410, of 1930.
subsystems for purposes of 9A515. This note 104 Stat. 890, 28 U.S.C. 2461 note,
also does not affect controls in ECCNs 9D001, requires the regular adjustment and Alcoholic Beverage Labeling Act
9D002, 9E001, or 9E002 on software source
code or commands that control a spacecraft, evaluation of civil monetary penalties to The Alcohol and Tobacco Tax and
payload, or associated subsystems for maintain their deterrent effect and helps Trade Bureau (TTB) administers the
purposes of 9A004. to ensure that penalty amounts imposed Federal Alcohol Administration Act
by the Federal Government are properly (FAA Act) pursuant to section 1111(d)
* * * * * accounted for and collected. A ‘‘civil of the Homeland Security Act of 2002,
Dated: December 22, 2016. monetary penalty’’ is defined in the codified at 6 U.S.C. 531(d). The
Tom Countryman, Inflation Adjustment Act as any penalty, Secretary has delegated various
Acting Under Secretary, Arms Control and fine, or other such sanction that is: (1) authorities through Treasury
International Security, Department of State. For a specific monetary amount as Department Order 120–01, dated
[FR Doc. 2016–31751 Filed 1–9–17; 8:45 am] provided by Federal law, or has a December 10, 2013, (superseding
BILLING CODE 4710–25–P
maximum amount provided for by Treasury Department Order 120–01,
Federal law; (2) assessed or enforced by dated January 24, 2003), to the TTB
an agency pursuant to Federal law; and Administrator to perform the functions
(3) assessed or enforced pursuant to an and duties in the administration and
DEPARTMENT OF THE TREASURY
administrative proceeding or a civil enforcement of this law.
Alcohol and Tobacco Tax and Trade action in the Federal courts. The FAA Act contains the Alcoholic
Bureau The Debt Collection Improvement Act Beverage Labeling Act (ABLA) of 1988,
of 1996 (the Improvement Act of 1996), Public Law 100–690, 27 U.S.C. 213–
27 CFR Part 16 Public Law 104–134, section 31001(s), 219a, which was enacted on November
110 Stat. 1321, enacted on April 26, 18, 1988. Section 204 of the ABLA,
[Docket No. TTB–2017–0001; Notice No. 1996, amended the Inflation Adjustment codified in 27 U.S.C. 215, requires that
pmangrum on DSK3GDR082PROD with RULES
170] Act by requiring civil monetary a health warning statement appear on
penalties to be adjusted for inflation. the labels of all containers of alcoholic
Civil Monetary Penalty Inflation
The Inflation Adjustment Act was beverages manufactured, imported, or
Adjustment—Alcoholic Beverage
further amended by the Federal Civil bottled for sale or distribution in the
Labeling Act
Penalties Inflation Adjustment Act United States, as well as on containers
AGENCY: Alcohol and Tobacco Tax and Improvements Act of 2015 (the of alcoholic beverages that are
Trade Bureau, Treasury. Improvements Act of 2015), Public Law manufactured, imported, bottled, or
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![Federal Register / Vol. 82, No. 6 / Tuesday, January 10, 2017 / Rules and Regulations 2893
labeled for sale, distribution, or adjustments to the civil penalty for DEPARTMENT OF HOMELAND
shipment to members or units of the violations of this part. SECURITY
U.S. Armed Forces, including those In this document, TTB is publishing
located outside the United States. Coast Guard
its yearly adjustment to the maximum
The health warning statement ABLA penalty, as required by the
requirement applies to containers of 33 CFR Part 110
Inflation Adjustment Act, as amended.
alcoholic beverages manufactured,
imported, or bottled for sale or TTB made the initial adjustment to [Docket Number USCG–2014–0142]
distribution in the United States on or the ABLA penalty required by the
after November 18, 1989. The statement Inflation Adjustment Act, as amended, RIN 1625–AA01
reads as follows: in an interim final rule that was
published and effective on July 1, 2016 Anchorage Regulations: Special
GOVERNMENT WARNING: (1) According
to the Surgeon General, women should not (T.D. TTB–138, 81 FR 43062). Anchorage Areas; Marina del Rey
drink alcoholic beverages during pregnancy Subsequent to the initial adjustment, the Harbor, Marina del Rey, CA
because of the risk of birth defects. (2) Improvements Act of 2015 provides AGENCY: Coast Guard, DHS.
Consumption of alcoholic beverages impairs that, not later than January 15 of each
your ability to drive a car or operate ACTION: Final rule.
year after the initial adjustment, the
machinery, and may cause health problems.
head of each agency shall adjust each SUMMARY: The Coast Guard is amending
Section 204 of the ABLA also civil monetary penalty subject to the the shape and reducing the size of the
specifies that the Secretary of the Inflation Adjustment Act, as amended, special anchorage area in Marina del
Treasury shall have the power to ensure by the inflation adjustment described in Rey Harbor, Marina del Rey, California.
the enforcement of the provisions of the section 5 of the Act. Additionally, the Coast Guard is
ABLA and issue regulations to carry out clarifying the language in the note
As mentioned earlier, the ABLA
them out. In addition, section 207 of the section of the existing regulation. This
contains a maximum civil monetary
ABLA, codified in 27 U.S.C. 218, action is necessary as it will create
provides that any person who violates penalty, rather than a range of minimum
and maximum civil monetary penalties. sufficient navigable water around the
the provisions of the ABLA is subject to anchorage allowing vessels to traffic the
a civil penalty of not more than $10,000, For such penalties, Section 5 indicates
Marina del Rey channel without undue
with each day constituting a separate that the inflation adjustment shall be
maritime safety concerns.
offense. determined by increasing the maximum
penalty by the cost-of-living adjustment. DATES: This rule is effective February 9,
Most of the civil monetary penalties 2017.
administered by TTB are imposed by The cost-of-living adjustment means the
percentage (if any) by which the ADDRESSES: Documents mentioned in
the Internal Revenue Code of 1986, and
thus are not subject to the inflation Consumer Price Index for all-urban this preamble are part of docket USCG–
adjustment mandated by the Inflation consumers (CPI–U) for the month of 2014–0142. To view documents
Adjustment Act. The only civil October preceding the date of the mentioned in this preamble as being
monetary penalty enforced by TTB that adjustment exceeds the CPI–U for the available in the docket, go to http://
is subject to the inflation adjustment is month of October 1 year before the www.regulations.gov, type the docket
the penalty imposed by the ABLA at 27 number in the ‘‘SEARCH’’ box and click
month of October preceding the date of
U.S.C. 218. ‘‘SEARCH.’’ Click on the Open Docket
the adjustment.
Folder on the line associated with this
TTB Regulations The CPI–U in October 2015 was rulemaking. You may also visit the
237.838, and the CPI–U in October 2016 Docket Management Facility in Room
The TTB regulations implementing
the ABLA are found in 27 CFR part 16, was 241.729. The rate of inflation w12–140 on the ground floor of the
and the regulations implementing the between October 2015 and October 2016 Department of Transportation, West
Inflation Adjustment Act with respect to is therefore 1.636 percent. When Building, 1200 New Jersey Avenue SE.,
the ABLA penalty are found in 27 CFR applied to the current ABLA penalty of Washington, DC 20590, between 9 a.m.
16.33. This section indicates that the $19,787, this rate of inflation yields a and 5 p.m. Monday through Friday,
ABLA provides that any person who raw (unrounded) inflation adjustment of with the exception of federal holidays.
violates the provisions of this part shall $323.72. Rounded to the nearest dollar, FOR FURTHER INFORMATION CONTACT: If
be subject to a civil penalty of not more the inflation adjustment is $324, you have questions on this rule, call or
than $10,000, but also states that, meaning that the new maximum civil email Lieutenant Junior Grade Amber
pursuant to the provisions of the penalty for violations of the ABLA will Napralla, Waterways Management
Federal Civil Penalties Inflation be $20,111. Division, U.S. Coast Guard District 11,
Adjustment Act of 1990, as amended, telephone (510) 437–2978, email
The new maximum civil penalty will
this civil penalty is subject to periodic Amber.L.Napralla@uscg.mil.
apply to all penalties that are assessed
cost-of-living adjustment. Accordingly, after January 10, 2017. TTB has also SUPPLEMENTARY INFORMATION:
any person who violates the provisions updated its Web page at https:// I. Table of Abbreviations
of 27 CFR part 16 shall be subject to a
www.ttb.gov/regulation_guidance/
civil penalty of not more than the CFR Code of Federal Regulations
ablapenalty.html to reflect the adjusted DHS Department of Homeland Security
amount listed at https://www.ttb.gov/
pmangrum on DSK3GDR082PROD with RULES
penalty. FR Federal Register
regulation_guidance/ablapenalty.html.
Each day shall constitute a separate Signed: January 3, 2017. NOAA National Oceanic and Atmospheric
Administration
offense. John J. Manfreda, NPRM Notice of proposed rulemaking
To adjust the penalty, § 16.33(b) Administrator. SNPRM Supplemental Notice of Proposed
indicates that TTB will provide notice [FR Doc. 2017–00082 Filed 1–9–17; 8:45 am] Rulemaking
in the Federal Register and at the Web § Section
BILLING CODE 4810–31–P
site mentioned above of cost-of-living U.S.C. United States Code
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Document Created: 2018-02-01 14:53:47
Document Modified: 2018-02-01 14:53:47
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Notification of civil monetary penalty adjustment. | |
| Dates | The new maximum civil penalty for violations of the ABLA takes effect on January 10, 2017 and applies to penalties that are assessed after that date. | |
| Contact | Andrew L. Malone, Public Guidance Program Manager, Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW., Box 12, Washington, DC 20005; (202) 453-1039, ext. 188. | |
| FR Citation | 82 FR 2892 |
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