83 FR 1552 - Civil Monetary Penalty Inflation Adjustment-Alcoholic Beverage Labeling Act

DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau

Federal Register Volume 83, Issue 9 (January 12, 2018)

Page Range		1552-1553
FR Document		2018-00417

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 $20,111, with each day constituting a separate offense. This document announces that this maximum penalty is being increased to $20,521.

Federal Register, Volume 83 Issue 9 (Friday, January 12, 2018)

[Federal Register Volume 83, Number 9 (Friday, January 12, 2018)]
[Rules and Regulations]
[Pages 1552-1553]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-00417]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 16

[Docket No. TTB-2018-0002; Notice No. 171]


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 $20,111, with each day 
constituting a separate offense. This document announces that this 
maximum penalty is being increased to $20,521.

DATES: The new maximum civil penalty for violations of the ABLA takes 
effect on January 12, 2018 and applies to penalties that are assessed 
after that date.

FOR FURTHER INFORMATION CONTACT: Rita D. Butler, Regulations and 
Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G 
Street NW, Box 12, Washington, DC 20005; (202) 453-1039, ext. 101.

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, as amended by the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015, Public Law 114-74, section 
701, 129 Stat. 584, 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

[[Page 1553]]

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 Inflation Adjustment Act, as amended, requires agencies to 
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 Act 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.
    The Inflation Adjustment Act, as amended, 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 
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 website mentioned 
above of cost-of-living adjustments to the civil penalty for violations 
of 27 CFR part 16.

Penalty Adjustment

    In this document, TTB is publishing its yearly adjustment to the 
maximum ABLA penalty, as required by the amended Inflation Adjustment 
Act.
    As mentioned earlier, the ABLA contains a maximum civil monetary 
penalty. For such penalties, Section 5 of the Inflation Adjustment Act 
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 2016 was 241.729, and the CPI-U in October 
2017 was 246.663. The rate of inflation between October 2016 and 
October 2017 is therefore 2.041 percent. When applied to the current 
ABLA penalty of $20,111, this rate of inflation yields a raw 
(unrounded) inflation adjustment of $410.46551. Rounded to the nearest 
dollar, the inflation adjustment is $410, meaning that the new maximum 
civil penalty for violations of the ABLA will be $20,521.
    The new maximum civil penalty will apply to all penalties that are 
assessed after January 12, 2018. TTB will also update its web page at 
https://www.ttb.gov/regulation_guidance/ablapenalty.html to reflect the 
adjusted penalty.

    Dated: January 8, 2018.
Amy R. Greenberg,
Director, Regulations and Rulings Division.
[FR Doc. 2018-00417 Filed 1-11-18; 8:45 am]
BILLING CODE 4810-31-P

1552 Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Rules and Regulations

VII. Effective Date and Congressional 501, and 504(b)(6) of the Natural Gas DEPARTMENT OF THE TREASURY
Notification Policy Act of 1978, to a civil penalty,
15. For the same reasons the which the Commission may assess, of Alcohol and Tobacco Tax and Trade
Commission has determined that public not more than $1,238,271 for any one Bureau
notice and comment are unnecessary, violation.
impractical, and contrary to the public * * * * * 27 CFR Part 16
interest, the Commission finds good [Docket No. TTB–2018–0002; Notice No.
cause to adopt an effective date that is PART 385—RULES OF PRACTICE AND 171]
less than 30 days after the date of PROCEDURE
publication in the Federal Register Civil Monetary Penalty Inflation
pursuant to the Administrative ■ 3. The authority citation for part 385 Adjustment—Alcoholic Beverage
Procedure Act,18 and therefore, the continues to read as follows: Labeling Act
regulation is effective upon publication Authority: 5 U.S.C. 551–557; 15 U.S.C. AGENCY: Alcohol and Tobacco Tax and
in the Federal Register. 717–717w, 3301–3432; 16 U.S.C. 791a–825v, Trade Bureau, Treasury.
16. The Commission has determined, 2601–2645; 28 U.S.C. 2461; 31 U.S.C 3701,
ACTION: Notification of civil monetary
with the concurrence of the 9701; 42 U.S.C. 7101–7352, 16441, 16451–
16463; 49 U.S.C. 60502; 49 App. U.S.C. 1–85 penalty adjustment.
Administrator of the Office of
Information and Regulatory Affairs of (1988); 28 U.S.C. 2461 note (1990); 28 U.S.C.
SUMMARY: This document informs the
2461 note (2015).
the Office of Management and Budget, public that the maximum penalty for
that this rule is not a ‘‘major rule’’ as ■ 4. Revise § 385.1504(a) to read as violations of the Alcoholic Beverage
defined in section 351 of the Small follows: Labeling Act (ABLA) is being adjusted
Business Regulatory Enforcement in accordance with the Federal Civil
Fairness Act of 1996. This Final Rule is § 385.1504 Maximum civil penalty (Rule Penalties Inflation Adjustment Act of
being submitted to the Senate, House, 1504). 1990, as amended. Prior to the
and Government Accountability Office. (a) Except as provided in paragraph publication of this document, any
List of Subjects (b) of this section, the Commission may person who violated the provisions of
assess a civil penalty of up to $22,363 the ABLA was subject to a civil penalty
18 CFR Part 250 for each day that the violation of not more than $20,111, with each day
Natural gas, Reporting and continues. constituting a separate offense. This
recordkeeping requirements. * * * * * document announces that this
maximum penalty is being increased to
18 CFR Part 385 ■ 5. Revise § 385.1602 to read as $20,521.
Administrative practice and follows: DATES: The new maximum civil penalty
procedure, Electric power, Penalties, § 385.1602 Civil penalties, as adjusted for violations of the ABLA takes effect
Pipelines, Reporting and recordkeeping (Rule 1602). on January 12, 2018 and applies to
requirements. penalties that are assessed after that
The current inflation-adjusted civil date.
By the Commission.
monetary penalties provided by law
Issued: January 8, 2018. FOR FURTHER INFORMATION CONTACT: Rita
within the jurisdiction of the
Kimberly D. Bose, Commission are: D. Butler, Regulations and Rulings
Secretary. Division, Alcohol and Tobacco Tax and
(a) 15 U.S.C. 3414(b)(6)(A)(i), Natural Trade Bureau, 1310 G Street NW, Box
In consideration of the foregoing, the
Gas Policy Act of 1978: $1,238,271. 12, Washington, DC 20005; (202) 453–
Commission amends parts 250 and 385,
chapter I, title 18, Code of Federal (b) 16 U.S.C. 823b(c), Federal Power 1039, ext. 101.
Regulations as follows: Act: $22,363 per day. SUPPLEMENTARY INFORMATION:
(c) 16 U.S.C. 825n(a), Federal Power Background
PART 250—FORMS Act: $2,852.
Statutory Authority for Federal Civil
■ 1. The authority citation for part 250 (d) 16 U.S.C. 825o–1(b), Federal
Monetary Penalty Inflation Adjustments
continues to read as follows: Power Act: $1,238,271 per day.
The Federal Civil Penalties Inflation
Authority: 15 U.S.C. 717–717w, 3301– (e) 15 U.S.C. 717t–1, Natural Gas Act:
Adjustment Act of 1990 (the Inflation
3432; 42 U.S.C. 7101–7352; 28 U.S.C. 2461 $1,238,271 per day.
note.
Adjustment Act), Public Law 101–410,
(f) 49 App. U.S.C. 6(10) (1988), 104 Stat. 890, 28 U.S.C. 2461 note, as
■ 2. Amend § 250.16 by revising Interstate Commerce Act: $1,296 per amended by the Federal Civil Penalties
paragraph (e)(1) to read as follows: offense and $65 per day after the first Inflation Adjustment Act Improvements
§ 250.16 Format of compliance plan day. Act of 2015, Public Law 114–74, section
transportation services and affiliate (g) 49 App. U.S.C. 16(8) (1988), 701, 129 Stat. 584, requires the regular
transactions. Interstate Commerce Act: $12,964 per adjustment and evaluation of civil
* * * * * day. monetary penalties to maintain their
(e) * * * (1) Any person who (h) 49 App. U.S.C. 19a(k) (1988), deterrent effect and helps to ensure that
transports gas for others pursuant to Interstate Commerce Act: $1,296 per penalty amounts imposed by the
sradovich on DSK3GMQ082PROD with RULES

subparts B or G of part 284 of this day. Federal Government are properly
chapter and who knowingly violates the accounted for and collected. A ‘‘civil
requirements of §§ 358.4 and 358.5, (i) 49 App. U.S.C. 20(7)(a) (1988), monetary penalty’’ is defined in the
§ 250.16, or § 284.13 of this chapter will Interstate Commerce Act: $1,296 per Inflation Adjustment Act as any penalty,
be subject, pursuant to sections 311(c), day. fine, or other such sanction that is: (1)
[FR Doc. 2018–00415 Filed 1–11–18; 8:45 am] For a specific monetary amount as
18 5 U.S.C. 553(d)(3). BILLING CODE 6717–01–P provided by Federal law, or has a

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Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Rules and Regulations 1553

maximum amount provided for by because of the risk of birth defects. (2) The cost-of-living adjustment means the
Federal law; (2) assessed or enforced by Consumption of alcoholic beverages impairs percentage (if any) by which the
an agency pursuant to Federal law; and your ability to drive a car or operate Consumer Price Index for all-urban
machinery, and may cause health problems.
(3) assessed or enforced pursuant to an consumers (CPI–U) for the month of
administrative proceeding or a civil Section 204 of the ABLA also October preceding the date of the
action in the Federal courts. specifies that the Secretary of the adjustment exceeds the CPI–U for the
The Inflation Adjustment Act, as Treasury shall have the power to ensure month of October 1 year before the
amended, requires agencies to adjust the enforcement of the provisions of the month of October preceding the date of
civil monetary penalties by the inflation ABLA and issue regulations to carry out the adjustment.
adjustment described in section 5 of the them out. In addition, section 207 of the The CPI–U in October 2016 was
Inflation Adjustment Act no later than ABLA, codified in 27 U.S.C. 218, 241.729, and the CPI–U in October 2017
January 15 of every year thereafter. The provides that any person who violates was 246.663. The rate of inflation
Act also provides that any increase in a the provisions of the ABLA is subject to between October 2016 and October 2017
civil monetary penalty shall apply only a civil penalty of not more than $10,000, is therefore 2.041 percent. When
to civil monetary penalties, including with each day constituting a separate applied to the current ABLA penalty of
those whose associated violation offense. $20,111, this rate of inflation yields a
predated such an increase, which are Most of the civil monetary penalties raw (unrounded) inflation adjustment of
assessed after the date the increase takes administered by TTB are imposed by $410.46551. Rounded to the nearest
effect. the Internal Revenue Code of 1986, and dollar, the inflation adjustment is $410,
The Inflation Adjustment Act, as thus are not subject to the inflation meaning that the new maximum civil
amended, provides that the inflation adjustment mandated by the Inflation penalty for violations of the ABLA will
adjustment does not apply to civil Adjustment Act. The only civil be $20,521.
monetary penalties under the Internal monetary penalty enforced by TTB that The new maximum civil penalty will
Revenue Code of 1986 or the Tariff Act is subject to the inflation adjustment is apply to all penalties that are assessed
of 1930. the penalty imposed by the ABLA at 27 after January 12, 2018. TTB will also
Alcoholic Beverage Labeling Act U.S.C. 218. update its web page at https://
TTB Regulations www.ttb.gov/regulation_guidance/
The Alcohol and Tobacco Tax and
ablapenalty.html to reflect the adjusted
Trade Bureau (TTB) administers the The TTB regulations implementing penalty.
Federal Alcohol Administration Act the ABLA are found in 27 CFR part 16,
(FAA Act) pursuant to section 1111(d) and the regulations implementing the Dated: January 8, 2018.
of the Homeland Security Act of 2002, Inflation Adjustment Act with respect to Amy R. Greenberg,
codified at 6 U.S.C. 531(d). The the ABLA penalty are found in 27 CFR Director, Regulations and Rulings Division.
Secretary has delegated various 16.33. This section indicates that the [FR Doc. 2018–00417 Filed 1–11–18; 8:45 am]
authorities through Treasury ABLA provides that any person who BILLING CODE 4810–31–P
Department Order 120–01, dated violates the provisions of this part shall
December 10, 2013, (superseding be subject to a civil penalty of not more
Treasury Department Order 120–01, than $10,000, but also states that, PENSION BENEFIT GUARANTY
dated January 24, 2003), to the TTB pursuant to the provisions of the CORPORATION
Administrator to perform the functions Federal Civil Penalties Inflation
and duties in the administration and Adjustment Act of 1990, as amended, 29 CFR Part 4022
enforcement of this law. this civil penalty is subject to periodic
The FAA Act contains the Alcoholic cost-of-living adjustment. Accordingly, Benefits Payable in Terminated Single-
Beverage Labeling Act (ABLA) of 1988, any person who violates the provisions Employer Plans; Interest Assumptions
Public Law 100–690, 27 U.S.C. 213– of 27 CFR part 16 shall be subject to a for Paying Benefits
219a, which was enacted on November civil penalty of not more than the
18, 1988. Section 204 of the ABLA, AGENCY: Pension Benefit Guaranty
amount listed at https://www.ttb.gov/ Corporation.
codified in 27 U.S.C. 215, requires that regulation_guidance/ablapenalty.html.
a health warning statement appear on ACTION: Final rule.
Each day shall constitute a separate
the labels of all containers of alcoholic offense. SUMMARY: This final rule amends the
beverages manufactured, imported, or To adjust the penalty, § 16.33(b) Pension Benefit Guaranty Corporation’s
bottled for sale or distribution in the indicates that TTB will provide notice regulation on Benefits Payable in
United States, as well as on containers in the Federal Register and at the Terminated Single-Employer Plans to
of alcoholic beverages that are website mentioned above of cost-of- prescribe interest assumptions under
manufactured, imported, bottled, or living adjustments to the civil penalty the regulation for valuation dates in
labeled for sale, distribution, or for violations of 27 CFR part 16. February 2018. The interest
shipment to members or units of the assumptions are used for paying
U.S. Armed Forces, including those Penalty Adjustment
benefits under terminating single-
located outside the United States. In this document, TTB is publishing employer plans covered by the pension
The health warning statement its yearly adjustment to the maximum insurance system administered by
requirement applies to containers of ABLA penalty, as required by the PBGC.
alcoholic beverages manufactured, amended Inflation Adjustment Act.
sradovich on DSK3GMQ082PROD with RULES

imported, or bottled for sale or As mentioned earlier, the ABLA DATES: Effective February 1, 2018.
distribution in the United States on or contains a maximum civil monetary FOR FURTHER INFORMATION CONTACT:
after November 18, 1989. The statement penalty. For such penalties, Section 5 of Daniel S. Liebman (liebman.daniel@
reads as follows: the Inflation Adjustment Act indicates pbgc.gov), Acting Assistant General
GOVERNMENT WARNING: (1) According that the inflation adjustment shall be Counsel for Regulatory Affairs, Pension
to the Surgeon General, women should not determined by increasing the maximum Benefit Guaranty Corporation, 1200 K
drink alcoholic beverages during pregnancy penalty by the cost-of-living adjustment. Street NW, Washington, DC 20005, 202–

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Document Created: 2018-10-26 09:52:22
Document Modified: 2018-10-26 09:52:22

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 12, 2018 and applies to penalties that are assessed after that date.
Contact		Rita D. Butler, Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW, Box 12, Washington, DC 20005; (202) 453-1039, ext. 101.
FR Citation		83 FR 1552

83 FR 1552 - Civil Monetary Penalty Inflation Adjustment-Alcoholic Beverage Labeling Act

DEPARTMENT OF THE TREASURYAlcohol and Tobacco Tax and Trade Bureau

Federal Register Volume 83, Issue 9 (January 12, 2018)

DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau