Civil Monetary Penalty Inflation Adjustment-Alcoholic Beverage Labeling Act
| Published date | 17 February 2022 |
| Citation | 87 FR 8947 |
| Record Number | 2022-03410 |
| Section | Rules and Regulations |
| Court | Alcohol And Tobacco Tax And Trade Bureau |
Federal Register, Volume 87 Issue 33 (Thursday, February 17, 2022)
[Federal Register Volume 87, Number 33 (Thursday, February 17, 2022)]
[Rules and Regulations]
[Pages 8947-8948]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-03410]
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DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau
27 CFR Part 16
[Docket No. TTB-2022-0001; Notice No. 208]
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.
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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 $21,633, with each day
constituting a separate offense. This document announces that this
maximum penalty is being increased to $22,979.
DATES: The new maximum civil penalty for violations of the ABLA takes
effect on February 17, 2022 and applies to penalties that are assessed
after that date.
FOR FURTHER INFORMATION CONTACT: Vonzella C. Johnson, Regulations and
Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G
Street NW, Box 12, Washington, DC 20005; (202) 508-0413.
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 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. 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 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, in accordance with the ABLA, any person who violates
the provisions of this part is subject to a civil penalty of not more
than $10,000. Further, 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 adjustments. Accordingly,
any person who violates the provisions of 27 CFR part 16 is subject to
a civil penalty of not more than the amount listed at https://www.ttb.gov/regulation_guidance/ablapenalty.html. Each day constitutes
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.
[[Page 8948]]
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 is determined by increasing the
maximum penalty by the cost-of-living adjustment. The cost-of-living
adjustment means the percentage increase (if any) between the Consumer
Price Index for all-urban consumers (CPI-U) for the October preceding
the date of the adjustment and the prior year's October CPI-U.
The CPI-U in October 2020 was 260.388, and the CPI-U in October
2021 was 276.589. The rate of inflation between October 2020 and
October 2021 was therefore 6.222 percent. When applied to the current
ABLA penalty of $21,633, this rate of inflation yields a raw
(unrounded) inflation adjustment of $1,346.00526. Rounded to the
nearest dollar, the inflation adjustment is $1,346, meaning that the
new maximum civil penalty for violations of the ABLA will be $22,979.
The new maximum civil penalty will apply to all penalties that are
assessed after February 17, 2022. TTB also will update its web page at
https://www.ttb.gov/regulation_guidance/ablapenalty.html to reflect the
adjusted penalty.
Dated: February 10, 2022.
Amy R. Greenberg,
Director, Regulations and Rulings Division.
[FR Doc. 2022-03410 Filed 2-16-22; 8:45 am]
BILLING CODE 4810-31-P
