Modernization of Permit and Registration Application Requirements for Distilled Spirits Plants

CourtAlcohol And Tobacco Tax And Trade Bureau,Treasury Department
Citation86 FR 68573
Published date03 December 2021
SectionProposed rules
Record Number2021-25721
Federal Register, Volume 86 Issue 230 (Friday, December 3, 2021)
[Federal Register Volume 86, Number 230 (Friday, December 3, 2021)]
                [Proposed Rules]
                [Pages 68573-68593]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2021-25721]
                =======================================================================
                -----------------------------------------------------------------------
                DEPARTMENT OF THE TREASURY
                Alcohol and Tobacco Tax and Trade Bureau
                27 CFR Parts 1, 17, 19, 20, 22, 26, 27, 28, and 31
                [Docket No. TTB-2021-0010; Notice No. 207]
                RIN 1513-AC46
                Modernization of Permit and Registration Application Requirements
                for Distilled Spirits Plants
                AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.
                ACTION: Notice of proposed rulemaking.
                -----------------------------------------------------------------------
                SUMMARY: In this notice of proposed rulemaking, the Alcohol and Tobacco
                Tax and Trade Bureau (TTB) proposes deregulatory amendments to the
                regulations to modernize and streamline the permit application for
                distilled spirits plants and for users and dealers of specially
                denatured alcohol and tax-free alcohol. The proposed amendments also
                relax some reporting requirements associated with changes to the
                business of those holding such permits and registrations. Some of these
                proposed liberalizing amendments would also apply to all Federal
                Alcohol Administration Act basic permit holders (including wineries,
                and importers and wholesalers of distilled spirits, wine, and malt
                beverages) and to alcohol beverage dealers. The proposed amendments are
                a result of TTB's evaluation of its permit and registration application
                requirements and consideration of relevant public comments submitted to
                the Treasury Department in response to its request for recommendations
                concerning regulations that can be eliminated, modified, or streamlined
                in order to reduce burdens. TTB believes the amendments proposed in
                this document will significantly reduce the time needed to complete an
                application for a permit or registration.
                DATES: Comments must be received on or before February 1, 2022.
                ADDRESSES: You may electronically submit comments to TTB on this
                proposal, and view copies of this document, its supporting materials,
                and any comments TTB receives on it within Docket No. TTB-2021-0010 as
                posted at https://www.regulations.gov. A direct link to that docket is
                available on the TTB website at https://www.ttb.gov/distilled-spirits/notices-of-proposed-rulemaking under Notice No. 207. Alternatively, you
                may submit comments via postal mail to the Director, Regulations and
                Ruling Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G
                Street NW. Box 12, Washington, DC 20005. Please see the Public
                Participation section of this document for further information on the
                comments requested regarding this proposal and on the submission,
                confidentiality, and public disclosure of comments.
                FOR FURTHER INFORMATION CONTACT: Jesse Longbrake, Regulations and
                Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G
                Street NW, Box 12, Washington, DC 20005; telephone (202) 453-1039,
                extension 066.
                SUPPLEMENTARY INFORMATION:
                Table of Contents
                I. Background
                 A. TTB Evaluation of Permit and Registration Application
                Requirements
                 B. TTB Authority
                 C. Relationship to Other Notices of Proposed Rulemaking
                II. Proposed Changes to the Regulations
                 A. Operational Information Required for Distilled Spirits Plant
                Permit Application
                 B. Premises Description and Security
                 C. Statements of Interest
                 D. 30-Day Filing Requirements for Certain Changes in the
                Business
                 E. Changes in Trade Names
                 F. Retention of Records Off-Premises
                III. Public Participation
                 A. Comments Invited
                 B. Submitting Comments
                 C. Confidentiality and Public Disclosure
                IV. Regulatory Analyses and Notices
                 A. Executive Order 12866
                 B. Regulatory Flexibility Act
                 C. Paperwork Reduction Act
                I. Background
                A. TTB Evaluation of Permit and Registration Application Requirements
                 In fiscal year 2017, the Alcohol and Tobacco Tax and Trade Bureau
                (TTB) began an evaluation of the information collected during the
                course of TTB's permit and registration applications. The purpose was
                to identify ways to streamline the application and registration
                process, reduce burden on the regulated industry, and ensure that the
                process collects, where possible, only information that is necessary to
                meet the agency's statutory obligations. TTB's general approach was to
                identify information being collected that could be eliminated without
                hindering TTB's ability to evaluate an applicant's qualifications and
                to more narrowly focus the application questions to capture only the
                information that is needed. In addition, TTB also considered whether
                there were any requests made in the application process that were so
                commonly approved that the regulations themselves could be amended to
                accommodate them without the need to submit the request.
                 Similarly, on June 14, 2017, the Treasury Department (Treasury)
                published in the Federal Register (82 FR 27217) a Request for
                Information inviting members of the public to submit views and
                recommendations for Treasury regulations that can be eliminated,
                modified, or streamlined in order to reduce burdens. TTB reviewed
                comments received in response to this request and identified proposals
                that related to the permit application process or, more generally, to
                beginning business in a TTB-regulated industry.
                 Through TTB's internal evaluation and consideration of the public
                input, TTB has identified deregulatory actions that TTB can take by
                amending regulations and also, where rulemaking is not required, by
                amending guidance and forms. While this document addresses distilled
                spirits plants, users and dealers of specially denatured alcohol and
                tax-free alcohol, and Federal Alcohol Administration Act basic permit
                holders, TTB intends to engage in further rulemaking to address other
                regulated industries within the context of their respective statutory
                eligibility requirements. Specifically, TTB will address in separate
                rulemakings the Internal Revenue Code (IRC) registration and notice
                requirements for wine and beer producers, respectively, as well as IRC
                requirements for TTB-regulated tobacco businesses.
                 With respect to distilled spirits plants (DSPs), this document
                proposes to amend the regulations to eliminate or narrow the range of
                information that must be submitted with applications for permits or
                registrations to more directly respond to TTB's statutory obligations
                [[Page 68574]]
                and permit or registration eligibility criteria. Proposed amendments
                include:
                 Eliminating various requirements to submit operational
                information. Specifically, TTB proposes eliminating eight (8)
                regulatory provisions requiring submission of information including,
                but not limited to, descriptions of production procedures and storage
                systems.
                 Tailoring requirements to describe the DSP premises more
                narrowly to specifically correspond with statutory requirements, and
                consolidating requirements to provide descriptions of alternation
                operations with the general DSP premises description.
                 Replacing requirements to submit narrative descriptions of
                DSP security with certifications that the applicant's security measures
                will comply with enumerated regulatory requirements.
                 Eliminating requirements to provide serial numbers of DSP
                equipment in the application, thereby allowing equipment to be reported
                in the aggregate where applicable and allowing a DSP application to be
                submitted prior to physical receipt of the equipment.
                 TTB is also proposing to amend the regulations to increase industry
                flexibility without imposing regulatory burden. These amendments
                benefit DSPs, users and dealers of specially denatured alcohol and tax-
                free alcohol, and, where appropriate under statute, Federal Alcohol
                Administration Act basic permit holders. Proposed amendments include:
                 Extending deadlines for reporting certain changes in the
                business from 30 days to 60 days.
                 Allowing regulated businesses to add or remove trade names
                by submitting a notification to TTB rather than applying for TTB
                approval.
                 Allowing regulated businesses to maintain required records
                at a location other than the permitted premises without first obtaining
                TTB approval.
                 Section II of this document includes more in-depth discussion of
                the proposed amendments.
                 As noted above, TTB's deregulatory strategy also includes
                streamlining longstanding policies and practices implementing existing
                regulations. TTB has already begun deploying such streamlining efforts
                in response to both TTB's internal evaluation of application processes
                and to comments received from the public.
                 For instance, TTB has implemented significant reductions in the
                information collected on form TTB F 5000.9, Personnel Questionnaire--
                Alcohol and Tobacco (the Personnel Questionnaire) and its electronic
                equivalent in response to comments submitted to Treasury through the
                Request for Information. TTB collects the Personnel Questionnaire as
                part of the application process for most types of permits or
                registrations. The Personnel Questionnaire collects information about
                individuals involved in an applicant's business (such as a business's
                officers, directors, or principal investors), including information
                about such individuals' identity, employment and residence history,
                investment in the business, prior involvement in TTB-regulated
                businesses, and criminal record, if any. The collection of this
                information has been approved by the Office of Management and Budget
                under Information Collection number 1513-0002.
                 TTB uses this information to determine whether the applicant,
                including the individuals involved in the applicant business, meet the
                statutory eligibility criteria for obtaining a permit or registration.
                These criteria are set forth in detail in section 1(B) of this
                document. Upon careful review, TTB recognized that it could reduce the
                information collected through the Personnel Questionnaire. TTB has
                revised form TTB F 5000.9 and its electronic equivalent in Permits
                Online to substantially reduce the number of required fields and to
                eliminate some of the most time-consuming fields (such as general
                employment history and residence history). TTB also has stopped
                collecting supporting documentation for certain types of investment in
                an applicant business (e.g., bank statements, loan documentation,
                promissory notes, etc.).
                B. TTB Authority
                 The Federal Alcohol Administration Act (FAA Act, 27 U.S.C. 201, et
                seq.) and chapter 51 of the IRC, 26 U.S.C. chapter 51, require persons
                intending to engage in certain distilled spirits-related businesses to
                obtain a permit, or approval of a registration, from the Secretary of
                the Treasury (Secretary) before beginning operations. Many distillers
                engage in operations that require both a permit under the FAA Act and a
                registration under the IRC. The amendments proposed in this document
                generally relate to the application requirements for such permits and
                registrations, including requirements to report certain changes in the
                regulated businesses. Additionally, amendments proposed in this
                document address application requirements for permits under the FAA Act
                for operations as importers or wholesalers of distilled spirits, wine,
                and/or malt beverages.
                 The FAA Act requires that persons seeking to engage in business as
                producers of distilled spirits, or as importers or wholesalers of
                distilled spirits, wine, and malt beverages, obtain a permit before
                beginning operations. See 27 U.S.C. 203. The term ``distilled
                spirits,'' when used in the context of the FAA Act, applies only to
                distilled spirits for nonindustrial use. The TTB regulations at 27 CFR
                1.60 set out uses of spirits that are regarded as ``industrial.'' The
                FAA Act at 27 U.S.C. 204(c) provides that the Secretary will prescribe
                the manner and form of all applications for basic permits. Note that
                the FAA Act also requires permits for producing, rectifying, or
                blending wine and that these activities also require qualification
                under the IRC; TTB plans to modernize wine-specific permit requirements
                in a separate rulemaking document.
                 Chapter 51 of the IRC contains excise tax and related provisions
                concerning distilled spirits, wines, and beer. This includes
                requirements that persons intending to engage in certain activities
                related to producing, using, or dealing in distilled spirits obtain a
                registration and/or permit from the Secretary before beginning
                operations. As noted above, TTB will address in a separate rulemaking
                the application requirements under the IRC for bonded wine cellars,
                bonded wineries, taxpaid wine bottling houses, and brewer's notices.
                 The IRC requires each person seeking to establish a distilled
                spirits plant, before commencing operations, to apply for and receive
                notice of registration of the plant. See 26 U.S.C. 5171(c). Those
                persons whose distilled spirits plant operations are not required to
                obtain a basic permit under the FAA Act are required to obtain an IRC
                operating permit. See 26 U.S.C. 5171(d). The applications for
                registrations and permits are to be in such manner and form as the
                Secretary prescribes by regulation. See 26 U.S.C. 5172 (registrations);
                5171(d)(1) and 5271(b)(1) (operating permits).
                 The IRC provides for the issuance of permits to establish plants
                for the purpose of producing, processing, storing, using, and/or
                distributing distilled spirits that are exclusively for fuel use
                (``alcohol fuel plants''). While alcohol fuel plants, as a type of
                distilled spirits plant, are generally subject to the registration and
                permitting requirements of sections 5171(c) and (d), and any associated
                qualification requirements, the IRC at 26 U.S.C. 5181 provides
                authority to prescribe by regulation a
                [[Page 68575]]
                streamlined application process for such plants, see 26 U.S.C. 5181,
                which TTB has done.
                 The IRC also governs permits relating to the procurement and use of
                denatured distilled spirits, and the use of non-beverage spirits for
                certain tax-free purposes. See 26 U.S.C. 5271. Section 5271 provides
                that no person may procure or use distilled spirits free of tax under
                the provisions of 26 U.S.C. 5214(a)(2) or (3); or procure, deal in, or
                use specifically denatured distilled spirits; or recover specifically
                or completely denatured distilled spirits, until he or she has applied
                for and received a permit to do so from the Secretary. The application
                for such permit is to be as prescribed by regulation. See 26 U.S.C.
                5271(b)(1).
                 The IRC requires persons seeking to engage in the business of
                manufacturing vinegar by the vaporizing process to first apply for and
                receive approval of a registration from the Secretary, the application
                for which is to be as prescribed by regulation. See 26 U.S.C. 5502.
                 Finally, the IRC requires all wholesale dealers and retail dealers
                of distilled spirits, wine, and beer to register with the Secretary.
                See 26 U.S.C. 5124.
                 The FAA Act and IRC set forth eligibility criteria (including
                criteria rendering an applicant ineligible) for many of the above
                permits and registrations. The FAA Act provides that an applicant is
                not entitled to a basic permit--including those applying as producers
                of distilled spirits and those applying as importers or wholesalers of
                distilled spirits, wine, and beer--if the applicant has been convicted
                of a felony within the previous 5 years or a misdemeanor under any
                Federal law relating to liquor within the previous 3 years. See 27
                U.S.C. 204(a)(2). Under this statutory provision, the ``applicant''
                includes, in the case of a corporation, any of its officers, directors,
                or principal stockholders. Section 204(a)(2) also provides that an
                applicant is not entitled to a basic permit if the applicant is, by
                reason of his or her business experience, financial standing, or trade
                connections, not likely to maintain operations in conformity with
                Federal law.
                 The IRC similarly provides that an application for a distilled
                spirits operating permit may be denied if--among other reasons--the
                applicant (including the principal stockholders of a corporation) is,
                by reason of his or her financial standing or trade connections, not
                likely to maintain operations in compliance with chapter 51 of the IRC.
                See 26 U.S.C. 5271(c), 5171(d). Specifically, these eligibility
                criteria apply to permits required for distilled spirits plants that
                are not otherwise required to obtain an FAA Act basic permit, such as
                distilled spirits plants that distill for industrial use. These
                eligibility criteria also apply to permits for alcohol fuel plants
                under 26 U.S.C. 5181. See 27 CFR 19.678. A permit to use tax-free
                alcohol, to use or deal in specially denatured distilled spirits, or to
                recover specially or completely denatured distilled spirits may also be
                denied for the same reasons. See 26 U.S.C. 5271(c).
                 TTB administers chapter 51 (distilled spirits, wine, and beer) of
                the IRC, as well as the FAA Act, pursuant to Treasury Order 120-01,
                dated December 10, 2013, through which the Secretary has delegated to
                TTB certain IRC and FAA Act administrative and enforcement authorities,
                including those related to the issuance of the permits and
                registrations covered under this rulemaking.
                 Section 2(d) of the FAA Act, Public Law 74-401 (1935) authorizes
                the Secretary ``to prescribe such rules and regulations as may be
                necessary to carry out [its] powers and duties'' under the FAA Act.
                Section 7805(a) of the IRC (26 U.S.C. 7805(a)) provides the general
                authority to the Secretary to issue regulations to carry out the
                provisions of the IRC.
                 Pursuant to its delegated authorities described above, TTB has
                promulgated regulations setting forth the application requirements for
                permits or registrations related to distilled spirits operations in
                title 27 of the Code of Federal Regulations (CFR), at the following
                parts:
                 27 CFR part 1, FAA Act basic permits (i.e., distillers,
                rectifiers, and blenders of distilled spirits; distilled spirits
                warehousemen; and alcohol importers and wholesalers);
                 27 CFR part 19, IRC registrations and operating permits
                for distilled spirits plants, vinegar plant permits, and alcohol fuel
                plant permits (categorized as small, medium, and large alcohol fuel
                plants);
                 27 CFR part 20, IRC permits for denatured spirits dealers
                and users;
                 27 CFR part 22, IRC permits for tax-free alcohol users;
                and
                 27 CFR part 31, IRC registrations for alcohol beverage
                dealers.
                 The following TTB forms and their electronic equivalents collect
                much of the information required to be submitted when applying for the
                above permits and/or registrations:
                 TTB F 5100.24, Application for Basic Permit Under the
                Federal Alcohol Administration Act, approved by the Office of
                Management and Budget (OMB) under Information Collection number 1513-
                0018;
                 TTB F 5100.18, Application for Amended Basic Permit Under
                the Federal Alcohol Administration Act, approved by OMB under
                Information collection number 1513-0019;
                 TTB F 5110.25, Application for Operating Permit Under 26
                U.S.C. 5171(d), approved by OMB under Information Collection number
                1513-0040;
                 TTB F 5110.41, Registration of Distilled Spirits Plant,
                approved by OMB under Information Collection number 1513-0048;
                 TTB F 5110.74, Application for an Alcohol Fuel Producer
                Under 26 U.S.C. 5181, approved by OMB under Information Collection
                number 1513-0051;
                 TTB F 5150.22, Application for an Industrial Alcohol User
                Permit, approved by OMB under Information Collection number 1513-0028;
                and
                 TTB F 5000.9, Personnel Questionnaire--Alcohol and Tobacco
                Products, approved by OMB under Information Collection number 1513-
                0002.
                 Pursuant to TTB's IRC and FAA Act authorities described above, TTB
                has also promulgated regulations imposing procedural and substantive
                requirements on these regulated businesses. These include requirements
                to report certain changes in the business affecting the permit or
                registration (e.g., changes in address or location, changes in
                stockholders or officers, directors, managers, etc.). These also
                include recordkeeping requirements that are generally set forth
                pursuant to other authority in the IRC. See, e.g., 26 U.S.C. 5207
                (records of distilled spirits plant proprietors), 26 U.S.C. 5275
                (records of dealers and users of denatured spirits and/or industrial
                alcohol), and 26 U.S.C. 5121-5122 (records of wholesale and retail
                dealers of distilled spirits).
                 This notice of proposed rulemaking includes proposed amendments to
                these reporting and recordkeeping requirements. The regulations
                implementing such requirements are set forth in title 27 of the CFR, at
                the following parts:
                 27 CFR part 1, reporting of business changes for FAA Act
                basic permits;
                 27 CFR part 17, recordkeeping requirements for
                manufacturers of nonbeverage products claiming drawback on taxpaid
                distilled spirits used in the manufacturing process;
                 27 CFR part 19, recordkeeping and inventory requirements,
                and reporting of business changes, for distilled spirits plants,
                vinegar plants, and alcohol fuel plants;
                [[Page 68576]]
                 27 CFR part 20, recordkeeping requirements, and reporting
                of business changes, for denatured spirits dealers and users;
                 27 CFR part 22, recordkeeping requirements, and reporting
                of business changes, for tax-free alcohol users;
                 27 CFR part 26, recordkeeping requirements concerning
                liquors and articles brought in from Puerto Rico and the Virgin
                Islands;
                 27 CFR part 27, recordkeeping requirements for importers
                of distilled spirits, wine, and beer;
                 27 CFR part 28, recordkeeping requirements concerning
                exportation of distilled spirits, wine, and beer; and
                 27 CFR part 31, recordkeeping requirements and reporting
                of business changes for alcohol beverage dealers (including
                wholesalers).
                 The electronic equivalent of each application form set forth above
                is available through the TTB Permits Online system. The Permits Online
                system eliminates redundancy by allowing the filer to input information
                only once, instead of repeating information on multiple paper
                application forms. Similarly, with respect to the reporting
                requirements described above, in instances where TTB's regulations
                refer to submitting a ``letterhead notice'' (as defined in 27 CFR
                19.1), industry members may provide such notices electronically in
                Permits Online. Unlike applications, these types of notices do not
                require TTB approval.
                C. Relationship to Other Notices of Proposed Rulemaking
                 TTB plans to publish notices of proposed rulemaking to propose
                generally similar amendments to regulations governing wine, beer,
                tobacco products, and processed tobacco-related applications and
                operations, set forth in 27 CFR parts 24, 25, 40, 41, and 44.
                Liberalizing amendments related to FAA Act basic permits as importers
                and wholesalers (including as importers or wholesalers of wine and/or
                malt beverages) and as wine producers are included in this document and
                will not be included in the notices of proposed rulemaking relating to
                wine or beer.
                II. Proposed Changes to the Regulations
                 The amendments proposed in this document are intended to modernize
                and streamline the applications and application processes for distilled
                spirits-related permits and registrations under the IRC and FAA Act,
                and for FAA Act basic permits required for importers and wholesalers of
                alcohol beverages. As noted above, TTB's general approach was to
                identify information currently being collected that TTB no longer needs
                in order to evaluate an applicant's qualifications and to provide more
                clarity and specificity in the application questions and instructions.
                The proposed amendments also relax reporting requirements on certain
                changes to the business.
                A. Operational Information Required for Distilled Spirits Plant
                Application
                 TTB is proposing to eliminate requirements to provide certain
                operational information when applying for a DSP registration. The TTB
                regulations at 27 CFR 19.73 prescribe, in general, information that
                must be included in an application for registration under the IRC as a
                DSP. Paragraphs (a)(13) through (15) of Sec. 19.73 prescribe the
                operational information that must be submitted if the DSP applicant
                intends to operate as a distiller, warehouseman, or processor,
                respectively. (A ``warehouseman'' is a proprietor of a DSP who stores
                bulk distilled spirits.) TTB has determined that much of the
                information currently required by Sec. 19.73(a)(13) through (15) is no
                longer needed for TTB to evaluate whether an applicant qualifies for a
                registration. As a result, TTB proposes to eliminate the following
                regulatory sections:
                 a. 27 CFR 19.73(a)(13)(ii), 19.77(a), and 19.121, requiring that an
                applicant intending to operate as a distiller submit a statement of
                production procedures, setting forth the contents of the statement, and
                requiring that a DSP proprietor report changes to its production
                procedures.
                 b. 27 CFR 19.73(a)(13)(iii) and 19.77(b), requiring that an
                applicant intending to operate as a distiller submit a statement as to
                whether spirits will be redistilled and referencing formula
                requirements associated with such redistillation.\1\
                ---------------------------------------------------------------------------
                 \1\ Generally, applicable formula requirements prescribed under
                27 CFR part 5 require DSPs to obtain formulas in connection with
                certain redistillation operations.
                ---------------------------------------------------------------------------
                 c. 27 CFR 19.73(a)(14)(i), requiring that an applicant intending to
                operate as a warehouseman submit a narrative description of its storage
                system.
                 d. 27 CFR 19.73(a)(14)(ii), requiring that an applicant intending
                to operate as a warehouseman submit a statement of the total amount of
                bulk wine gallons that can be stored.
                 e. 27 CFR 19.73(a)(15)(ii), requiring that an applicant intending
                to operate as a processor submit a narrative description of the storage
                system for spirits bottled and cased or otherwise packaged and placed
                in approved containers for removal from the bonded premises.
                 TTB is also proposing to amend 27 CFR 19.75 to eliminate the
                requirement to provide in the application for registration the serial
                number of each tank, still, and condenser to be used by the DSP. While
                such equipment must continue to be physically marked with a serial
                number on the DSP premises pursuant to 27 CFR 19.189, removing the
                requirement to provide serial numbers in the application will provide
                applicants greater flexibility to report their equipment in the
                aggregate. For instance, ten (10) of the same type of tank will not
                need to be listed separately to account for the different serial
                numbers. Additionally, allowing equipment to be reported on the
                application without serial numbers allows applicants to submit an
                application before equipment that has been ordered is physically
                received. TTB proposes similar amendments at 27 CFR 20.42 and 22.42 to
                remove requirements to provide serial numbers of equipment to be used
                by applicants for permits as users of denatured alcohol and of tax-free
                alcohol.
                B. Premises Description and Security
                 TTB is proposing to relax or eliminate requirements to submit
                certain information describing the DSP premises and its security with
                an application for registration. As stated above, the TTB regulations
                at 27 CFR 19.73 prescribe, in general, information that must be
                included in an application for registration as a DSP. Among the
                information required to be submitted with such application are
                descriptions of the DSP premises and the security measures to be
                employed at the DSP. Much of this information is currently collected in
                an open-ended narrative format. TTB believes that, in general, more
                direct questions and certifications would enable applicants to better
                understand what information must be submitted, reduce the need for
                additional submissions and follow-up communication between TTB and
                applicants, and speed up the application review process. Further, TTB
                has determined that some of the information currently required in these
                areas is unnecessary or overly specific for the purpose of evaluating a
                registration application. As a result, TTB also proposes to relax or
                eliminate certain requirements to submit such information.
                 Therefore, TTB proposes to amend the following regulatory sections:
                [[Page 68577]]
                 a. 27 CFR 19.74. Section 19.73(a)(8) requires that an application
                for registration as a DSP include a description of the plant in
                accordance with Sec. 19.74. Section 19.74 sets forth the specific
                information to be included in the description, which includes: (1) A
                description of each tract of land covered by the plant; (2)
                identification of the bonded and any general premises; (3) descriptions
                of each building and outside tank that will be used for production,
                storage, and processing of spirits and for denaturing spirits,
                articles, or wines; and (4) identification of the room(s) or floor(s)
                of a building that will be used for plant operations, if the plant
                consists of less than the entire building in which it is situated. TTB
                proposes to amend Sec. 19.74 to remove the requirement to provide a
                description of the tract of land and to further clarify the specific
                information to be submitted as follows: (1) Overall dimensions of the
                building(s) housing the DSP; (2) the dimensions of the bonded premises
                and any general premises; (3) any internal walls establishing the
                boundaries of the bonded premises and general premises; (4) the
                external doors of the DSP premises; (5) any portions of the plant
                premises that are outdoors, including the location of any outdoor
                tanks; and (6) any adjacent retail premises that are to be operated by
                the applicant. TTB believes that these descriptive elements are the
                minimum necessary to allow TTB to evaluate whether the premises is
                adequate to protect the revenue and otherwise complies with the
                statutory restrictions on DSP locations set forth at 26 U.S.C. 5178.
                The proposed amendments provide flexibility to submit this information
                in narrative form or diagram form, whichever is better suited to the
                applicant's circumstances. The proposed amendments also provide that
                photographs of any of the required elements must be submitted upon
                request of the appropriate TTB officer.
                 b. 27 CFR 19.119 and 19.122. Under current Sec. 19.119, a DSP
                proprietor is required to amend his or her registration prior to
                extending or curtailing any part of the plant premises, except for
                certain operations described in Sec. Sec. 19.142 (alternation for
                customs purposes) and 19.143 (alternation for other purposes). Section
                19.122 currently requires that a DSP proprietor file a letterhead
                notice prior to making any material changes to the construction or use
                of the buildings or equipment at the DSP, other than changes covered by
                Sec. Sec. 19.119, 19.142, and 19.143. TTB proposes to consolidate
                these requirements into a single Sec. 19.119, and to further amend
                that section consistent with the proposed amendments to Sec. 19.74.
                Specifically, in the revised Sec. 19.119, the current text of Sec.
                19.119 regarding extension or curtailment of the premises would be
                maintained, but TTB proposes to incorporate as a new paragraph the
                provisions of the current Sec. 19.122 relating to changes in
                construction or use of buildings. TTB further proposes to amend this
                new paragraph to no longer require the proprietor to describe in detail
                ``any material change in the construction or use of buildings or
                equipment'' but instead require the reporting of changes to the
                premises (other than those covered by current Sec. 19.119, Sec.
                19.142, or Sec. 19.143) that would render inaccurate the description
                submitted with the registration or submitted separately or previously
                by the proprietor with another amendment. TTB is also proposing to
                remove the requirement that the change described in the letterhead
                notice also be subsequently incorporated into the next submission of an
                application for amended registration on TTB F 5110.41 where such
                amendment would not otherwise require submission of a premises
                description. However, to the extent that subsequent applications for an
                amended registration make any further reportable changes to the
                premises, an up-to-date description must be submitted.
                 c. 27 CFR 19.673(b)(2), 19.675(b)(2), and 19.676(b)(2). TTB
                proposes amendments similar to those described above in point (a) to
                the requirements associated with applications for alcohol fuel plant
                permits, at Sec. Sec. 19.673(b)(2), 19.675(b)(2), and 19.676(b)(2).
                Note that the illustration of adjacent retail premises is not
                applicable to alcohol fuel plants.
                 d. 27 CFR 19.643(b). TTB proposes amendments similar to those
                discussed in point (a) above to the requirement that applicants for a
                vinegar plant registration provide a ``description of the plant
                premises,'' at Sec. 19.643(b). Note that the illustration of adjacent
                retail premises is not applicable to vinegar plants.
                 e. 27 CFR 19.141(a), 19.142(b), and 19.143(b). Sections 19.141
                through 19.143 each provide procedures for alternation of the DSP
                premises. Specifically, Sec. 19.141 prescribes procedures related to
                alternation of proprietors, Sec. 19.142 prescribes procedures related
                to alternation for customs purposes, and Sec. 19.143 prescribes
                procedures related to alternation for other purposes (such as use of
                the premises as a bonded wine cellar or brewery). One of the prescribed
                procedures to engage in each type of alternation is that the proprietor
                must submit with his or her application for registration as a DSP a
                diagram of the part of the plant that will be alternated, as well as a
                description of the areas, rooms or buildings, or combination of rooms
                or buildings that will be alternated. In the case of Sec. Sec.
                19.141(a) and 19.142(b), the applicant must also provide a description
                of the method that the applicant will use to separate the alternated
                premises from any premises not subject to alternation. TTB believes
                that the information collected under these sections can be consolidated
                into the premises description(s) required under Sec. 19.73(a)(8).
                Accordingly, TTB proposes to amend these sections to require that such
                information be included in the description(s) submitted under Sec.
                19.73(a)(8). TTB also proposes conforming amendments to Sec. Sec.
                19.141(b) and 19.142(c).
                 f. 27 CFR 19.692(b)(2). TTB proposes amendments similar to those
                described in the previous paragraph to the qualification requirements
                for an alternating proprietorship as an alcohol fuel plant, at Sec.
                19.692(b)(2).
                 g. 27 CFR 19.73(a)(12), 19.76, and 19.192. Section 19.73(a)(12)
                requires that an application for registration as a DSP include a
                statement of plant security measures in accordance with Sec. 19.76.
                Under Sec. 19.76, the plant security statement must include a
                ``general description of plant security,'' a ``statement regarding the
                use of guard personnel,'' and other similar statements regarding the
                use of alarm systems and locks. Plant security as a continuing
                requirement for a permit is also addressed at Sec. 19.192, which
                generally requires that a DSP proprietor provide adequate security to
                protect the revenue, and specifies requirements relating to building
                construction and the locking mechanisms to be used on storage tanks and
                points of entry to the DSP premises. Section 19.192(f) also sets forth
                specifications for locks to be used in DSPs. TTB believes that the
                narrative statements concerning plant security required under
                Sec. Sec. 19.73(a)(12) and 19.76 are overly broad and should be more
                consistent with the ongoing requirements of the permit set forth in
                Sec. 19.192. Accordingly, TTB proposes to eliminate Sec. 19.76 and to
                amend Sec. 19.73(a)(12) to instead require that an application for
                registration as a DSP include a certification that the plant's security
                will be compliant with the requirements of Sec. 19.192. TTB also
                believes that the specifications for locks set forth in Sec. 19.192(f)
                are unnecessarily specific, and proposes to replace those
                specifications with a requirement that the locks used to secure the
                plant be of
                [[Page 68578]]
                a class and construction that is usual and customary in the industry to
                secure commercial property.
                 h. 27 CFR 19.673(b)(6), 19.675(b)(6), and 19.676(b)(6). TTB
                proposes to amend the application requirements for alcohol fuel plant
                permits consistent with those described in the previous paragraph. The
                proposed amendments require, instead of narrative descriptions of the
                plant's security measures, a certification that plant security will be
                in accordance with the requirements of 27 CFR 19.703 and 19.704.
                C. Statements of Interest
                 TTB proposes amendments to standardize and clarify the scope of the
                collection of information related to persons holding certain levels of
                ownership interest in an applicant business. These ``statements of
                interest'' are collected in accordance with statutory provisions
                setting forth eligibility criteria for obtaining such permits and/or
                registrations. Information about persons with ownership interests in
                applicant businesses also assists TTB in the protection and collection
                of the revenue.
                 The FAA Act at 27 U.S.C. 204(a)(2) provides that an applicant will
                not be entitled to a basic permit if--among other reasons--the
                applicant (including the principal stockholders of a corporate
                applicant) is, by reason of his or her business experience, financial
                standing, or trade connections, not likely to maintain operations in
                conformance with Federal law. Currently, TTB practice has been to
                interpret a ``principal stockholder'' to be any person holding ten (10)
                percent or more of any class of stock in a corporation or of any class
                of ownership in any other limited liability entity.\2\
                ---------------------------------------------------------------------------
                 \2\ See TTB G 2018-6, ``Permits Online Tutorial'' at Owner/
                Officer Information, available at https://www.ttb.gov/ponl/ponl-tutorial-part-2-page-11.
                ---------------------------------------------------------------------------
                 The IRC at 26 U.S.C. 5271(c)(2) similarly provides that an
                application for a permit to use tax-free alcohol, or to use or deal in
                specially denatured distilled spirits, may be denied if--among other
                reasons--the applicant (including any ``principal stockholders'') is,
                by reason of his or her business experience, financial standing, or
                trade connections, not likely to maintain operations in compliance with
                chapter 51 of the IRC. Pursuant to 26 U.S.C. 5171(d), the eligibility
                criteria of section 5271(c) also apply to operating permit applications
                for DSPs that are not required to obtain an FAA Act basic permit, such
                as DSPs that produce distilled spirits for industrial use and alcohol
                fuel plants.
                 Further, the IRC at 26 U.S.C. 5172 requires that an application for
                a DSP registration identify the applicant and persons interested in the
                business. This provision applies to DSPs whether or not they are
                required to obtain an FAA Act basic permit. Note that, while alcohol
                fuel plants have separate application processes pursuant to 26 U.S.C.
                5181, those application processes fulfill the qualification
                requirements of 26 U.S.C. 5171. Accordingly, TTB has implemented
                through regulation the requirement that alcohol fuel plant applicants
                report the principal persons involved in the business and/or the
                persons having an ownership interest in the business at 27 CFR 19.675
                (for medium plant permit applications) and at 19.676 and 19.677 (for
                large plant permit applications).\3\
                ---------------------------------------------------------------------------
                 \3\ In addition to the proposed amendments concerning statements
                of interest, TTB proposes to eliminate requirements at Sec. Sec.
                19.675(b)(8) and 19.676(b)(8) to provide the Social Security Number
                and date and place of birth of each principal person involved in the
                alcohol fuel plant business. Names and addresses of such persons, as
                well as their titles with the applicant business, must still be
                reported.
                ---------------------------------------------------------------------------
                 TTB has promulgated regulations under the above IRC authorities
                requiring statements of interest at: (1) 27 CFR 19.73, 19.92, and
                19.93, for DSP registrations and operating permits; (2) 27 CFR 19.677,
                for large alcohol fuel plant permits; (3) 27 CFR 20.42 and 20.45, for
                specially denatured spirits dealer and user permits; and (4) 27 CFR
                22.42 and 22.45, for tax-free alcohol user permits. Additionally, the
                application for an FAA Act basic permit requires a listing of the
                owners and principal stockholders of an applicant business, as well as
                details concerning their investment in the business. See 27 CFR 1.25,
                TTB F 5100.24 (approved by the Office of Management and Budget under
                Information Collection number 1513-0018).
                 TTB proposes amendments to Sec. Sec. 19.93, 19.677, 20.45, and
                22.45 to standardize the collection of the basic identifying
                information of persons with an interest in the applicant's business.
                The amendments provide that (1) the requirement to disclose basic
                identifying information (i.e., names and addresses) of persons with an
                ownership interest applies to persons with an ownership interest of 10
                percent or greater; and (2) where a ``person'' holding such an interest
                is a legal entity other than an individual, the applicant must provide
                the name, title, and place of residence (city and state) of a
                representative individual for that entity. The representative
                individual generally will be the individual designated by the entity to
                represent the entity's interest in the applicant business or, in the
                absence of a designated individual, an owner, chief officer or manager,
                or person with similar authority within the entity. TTB believes that
                this is the minimum amount of information required to allow TTB to
                identify the individuals with an interest in the applicant business and
                to evaluate the applicant as to its trade connections and financial
                standing, including in circumstances where business entities have
                substantial ownership interests in the applicant.
                 TTB proposes minor conforming amendments to 27 CFR 1.27, 1.42,
                1.44, 19.114, 19.127, 19.130, 19.684, and 19.687 to incorporate the
                description of ownership interests set forth above into requirements
                for reporting changes in ownership interests. TTB also proposes
                conforming amendments to 27 CFR 1.24, 19.96, 19.678, and 31.114 to
                incorporate this description of ownership interests into regulations
                describing criteria for qualification or denial of permits.
                D. 30-Day Filing Requirements for Certain Changes in the Business
                 TTB proposes to extend the deadline for reporting certain changes
                in a permitted business to 60 days. The TTB regulations generally
                require that when there is a change in the information filed with TTB
                as part of an application for a permit or registration under the FAA
                Act or IRC, the proprietor of the business must notify TTB of the
                change. The timing and form of this notification differs depending on
                the type of permit or registration, and the type of business change
                that has occurred or will occur.
                 Some business changes must be reported to TTB within a certain
                amount of time following the change, generally within 30 days. For
                example, the TTB regulations at 27 CFR 19.687 require that the
                proprietor of a medium or large alcohol fuel plant submit a letterhead
                notice to TTB within 30 days of any change to the list of officers,
                directors, members, managers, or other principal persons provided with
                the application for the permit.
                 In the case of a change in control of the business, a permit or
                registration may automatically terminate and/or become invalid
                following the change in control unless a new application is filed
                within 30 days of the change in control. The TTB regulations generally
                provide for the outstanding permit to remain in effect pending a final
                decision on the new application, as long as that application is timely
                filed.
                 Comments received in response to Treasury's request for
                information, described above in section I(A), suggest
                [[Page 68579]]
                that 30 days is too short a time for regulated entities to assemble the
                information that is required to be filed in connection with various
                changes in the business. These comments suggested that such filing
                deadlines should be extended to 60 days.
                 TTB reviewed these proposals and concluded that extending existing
                deadlines for reporting certain changes in the business (including in
                some cases by applying for a new or amended permit or registration)
                from 30 to 60 days would not, in general, pose risk to the revenue or
                raise other concerns with regard to permits and/or registrations issued
                under the authority of the IRC. Accordingly, TTB proposes to extend
                such deadlines as described immediately below. Requirements and
                timeframes related to FAA Act permits are discussed separately at the
                end of this section. FAA Act permits have a different statutory basis,
                which sets forth certain reporting timeframes that TTB is unable to
                modify by regulation. In some circumstances, industry members holding
                both an FAA Act permit and an IRC registration (such as DSPs producing
                nonindustrial spirits) will be limited by the shorter statutory
                reporting period of the FAA Act.
                 In 27 CFR part 19, TTB proposes to amend the following sections to
                extend reporting deadlines for changes in the permitted business to 60
                days: Sec. Sec. 19.112, 19.114, and 19.123 relating to DSP
                registrations; Sec. Sec. 19.126, 19.127, and 19.130 relating to DSP
                operating permits; Sec. 19.644 relating to vinegar plants; and
                Sec. Sec. 19.683, 19.684, 19.686, 19.687, and 19.691 relating to
                alcohol fuel plants.
                 Concerning DSP registrations, 27 CFR 19.112 provides the general
                rules for amending a registration, and requires that, ``if there is a
                change in any of the information in the proprietor's current, approved
                notice of registration, the proprietor must amend the registration''
                within 30 days of the change unless another time period is specified by
                another, more specific regulation. Section 19.114 requires that a DSP
                proprietor ``notify TTB of any changes in the list of stockholders or
                persons with interest that was filed with TTB'' as part of the
                registration application and provides that, ``if the change results in
                a change of control, the proprietor must file form TTB F 5110.41,
                Registration of Distilled Spirits Plant, within 30 days of the
                change.'' TTB proposes to extend each of these deadlines from 30 days
                to 60 days. Section 19.123 requires that a DSP proprietor notify TTB if
                any change is made to the statement of plant security filed under 27
                CFR 19.76. TTB proposes in this document (as discussed above) to remove
                Sec. 19.76 entirely, and accordingly proposes to remove Sec. 19.123.
                 TTB also proposes conforming amendments in 27 CFR 19.80 to clarify
                that, when an IRC operating permit or an FAA Act permit remains in
                effect pending final TTB action on a new application for such a permit
                necessitated by a business change, the approved notice of registration
                associated with that permit also remains valid during that time.
                 Concerning DSP operating permits, which apply to industrial alcohol
                operations, Sec. 19.126 provides the general rules for amending a
                permit and requires that, ``if there is a change in any of the
                information that the proprietor provided as part of the current
                approved application for an operating permit, the proprietor must amend
                the operating permit'' within 30 days of the change unless another time
                period is specified by another, more specific regulation. Section
                19.127 provides for the automatic termination of a DSP operating permit
                under certain circumstances. In the case of a corporation, Sec. 19.127
                provides that the operating permit will terminate 30 days following a
                change in actual or legal control of the corporation, but if an
                application for a new permit is submitted within that 30 days, the
                outstanding permit may remain in effect until TTB takes final action on
                the new application. Section 19.130 requires that the proprietor notify
                TTB of any changes in the list of stockholders or persons with interest
                that was filed in connection with the operating permit application. If
                such a change results in a change in actual or legal control of the
                business, the proprietor must file an application for a new permit
                within 30 days. TTB proposes to extend each of these deadlines from 30
                to 60 days. With respect to the automatic termination provisions of
                Sec. 19.127, the proposed amendments also necessarily extend the
                timeframe for termination to 60 days.
                 Concerning vinegar plants, Sec. 19.644 provides that the
                proprietor of a vinegar plant must ``immediately'' notify TTB in
                writing of ``any change in the information that was provided in an
                approved application.'' TTB proposes to amend this section to require
                the notification be made within 60 days of the change.
                 Concerning alcohol fuel plants, Sec. 19.683 provides the general
                rules for amending a permit and requires that, ``if there is a change
                relating to any of the information contained in, or considered a part
                of, the application'' for an alcohol fuel plant permit, ``the
                proprietor must amend the information previously submitted within 30
                days of the change'' unless another time period is specified by
                another, more specific regulation. Section 19.684 provides for the
                automatic termination of an alcohol fuel plant permit under certain
                circumstances. In the case of a corporation, the permit will terminate
                30 days following a change in actual or legal control of the
                corporation, but if an application for a new permit is submitted within
                those 30 days, the outstanding permit may remain in effect until TTB
                takes final action on the new application. Section 19.686 provides
                that, ``When there is a change in the name of the individual, firm,
                corporation, or other entity holding the permit, the proprietor must
                file an application to amend the permit . . . within 30 days of the
                change.'' Section 19.687 requires that the proprietor provide TTB with
                letterhead notice within 30 days of any change to the list of officers,
                directors, members, managers, or other principal persons provided with
                the application for a permit as a medium or large alcohol fuel plant.
                Section 19.691 states that, ``if there is a change in the address of an
                alcohol fuel plant that does not involve a change in the location or
                area of the plant itself, the proprietor must submit a letterhead
                notice to the appropriate TTB officer within 30 days of the change.''
                TTB proposes to extend each of these deadlines from 30 to 60 days. With
                respect to the automatic termination provisions of Sec. 19.684, the
                proposed amendments also necessarily extend the timeframe for
                termination to 60 days.
                 Concerning permits for dealers or users of denatured alcohol and
                rum, TTB proposes to amend provisions in 27 CFR part 20 to extend a
                similar 30-day requirement to 60 days, and to remove one notification
                requirement. Section 20.56 requires that a permittee submit a written
                notification to TTB within 30 days of certain changes ``relating to any
                of the information contained in, or considered a part of[,] the
                application'' for a permit. Section 20.57 requires that the permit
                holder provide written notice to TTB within 10 days of a change in
                proprietorship or a change in actual or legal control of the business.
                Section 20.57 further provides that the permit will terminate 30 days
                following a change in proprietorship or control, unless the permit
                holder submits an application for a new permit within 30 days of the
                change, in which case the outstanding permit may remain in effect until
                TTB takes final action on the new application. TTB proposes to extend
                the
                [[Page 68580]]
                filing deadline of Sec. 20.56 from 30 to 60 days, and to remove the
                10-day notification requirement of Sec. 20.57. With respect to the
                automatic termination provisions of Sec. 20.57, the proposed
                amendments extend the timeframe for termination to 60 days.
                 Concerning permits for users of tax-free (industrial) alcohol, TTB
                proposes to amend Sec. Sec. 22.57 and 22.58. Section 22.57 requires
                that such a permittee submit a written notification to TTB within 30
                days of certain changes ``relating to any of the information contained
                in, or considered a part of[,] the application'' for a permit. Section
                22.58 requires that the permit holder provide written notice to TTB
                within 10 days of a change in proprietorship or a change in actual or
                legal control of the business. Section 22.58 further provides that the
                permit will terminate 30 days following a change in proprietorship or
                control, unless the permit holder submits an application for a new
                permit within 30 days of the change, in which case the outstanding
                permit may remain in effect until TTB takes final action on the new
                application. TTB proposes to remove the 10-day notification requirement
                of Sec. 22.58. TTB proposes to extend the filing deadline of Sec.
                22.57 from 30 to 60 days. With respect to the automatic termination
                provisions of Sec. 22.58, the proposed amendments also extend the
                timeframe for termination to 60 days.
                 In 27 CFR part 31, concerning alcohol beverage dealers, TTB
                proposes to amend Sec. 31.138 to provide 60 days for an alcohol
                beverage dealer to notify TTB of the discontinuance of their business,
                rather than the current 30 days.
                 As noted above, FAA Act basic permits are subject to certain
                reporting timeframes, similar to some of those IRC timeframes discussed
                above, that TTB is unable to extend by regulation because they are
                statutory. Specifically, the FAA Act at 27 U.S.C. 204(g) provides that
                FAA Act permits cannot be sold or transferred, and will automatically
                terminate 30 days after a transfer by operation of law or a change in
                actual or legal control of the permitted business. However, section
                204(g)(2) also provides that if an application for a new permit is
                submitted within 30 days of such a change, the outstanding permit
                remains in effect until TTB takes final action on the new application.
                These provisions are implemented in TTB regulations at 27 CFR 1.44. TTB
                cannot extend the Sec. 1.44 deadline for filing a new permit
                application from 30 to 60 days, because the 30-day provision is in the
                statute (cited above). However, TTB is proposing to amend 27 CFR 1.42
                to clarify that any changes in the ownership, management, or control of
                the business, including changes that fall under Sec. 1.44, must be
                reported to TTB within 30 days rather than ``immediately,'' as
                currently required. If the change requires the filing of a new
                application under Sec. 1.44, a timely application will also satisfy
                the notification requirement of Sec. 1.42.
                 Industry members who hold both a basic permit under the authority
                of the FAA Act and a registration under the authority of the IRC (such
                as DSPs producing nonindustrial spirits) should be aware that an
                extension of the timeframes applicable to the registration issued under
                the IRC does not apply in any way to the basic permit under the FAA
                Act. As a result, such DSPs must still report changes in the ownership
                or management of their business within 30 days (and submit any required
                applications within 30 days) to comply with the requirements of their
                FAA Act basic permit.
                E. Changes in Trade Names
                 TTB proposes amendments to the regulations at 27 CFR 1.40, 19.129,
                20.61, 22.62, and 31.132 to allow changes to, or additions of, trade
                names through a notification to TTB rather than through an amended
                permit or registration. These regulations apply to holders of FAA Act
                basic permits, DSP operating permits, specially denatured spirits user
                and dealer permits, tax-free alcohol user permits, and alcohol beverage
                dealer registrations, respectively. The regulations currently require
                that holders of such permits or registrations apply for and obtain an
                amended permit or submit an amended registration before engaging in
                operations under a new trade name (see, e.g., 27 CFR 19.129) or
                requesting FAA Act label approval reflecting a new trade name (see 27
                CFR 5.36(f)). Currently, TTB automatically approves trade name
                amendments. Consistent with this policy, TTB is also proposing to amend
                27 CFR 19.94 to remove the requirement that an applicant for an
                original DSP operating permit submit supporting documentation for the
                trade names identified in the application. TTB's proposed amendments
                generally would update regulations to reflect that industry members may
                begin operations under the new name immediately after notifying TTB.
                 TTB notes that, while this amendment would allow industry members
                to immediately begin operations under a new trade name upon notifying
                TTB, it remains the responsibility of the permit holder or registered
                alcohol dealer to ensure that any trade name is properly registered
                with the applicable state or local government. Industry members should
                further note that the FAA Act prohibits false or misleading statements
                on alcohol beverage labels, and TTB will not approve an application for
                label approval proposing to use a trade name on a label that gives a
                misleading impression as to the age, origin, or identity of the
                product. The FAA Act also prohibits the use of misleading trade names
                when advertising distilled spirits for beverage purposes.
                F. Retention of Records Off-Premises
                 As part of its evaluation of permit and registration applications,
                TTB sought to identify types of requests to vary from the regulations
                that were commonly submitted along with a permit or registration
                application. One common request relevant to distilled spirits is to
                retain required records at a location other than the premises covered
                under the permit or registration. TTB is proposing amendments to
                recordkeeping requirements in parts 17, 20, 22, 26, 27, 28, and 31 to
                allow records to be stored at a location other than the permitted
                premises, and allow applicants to notify TTB of their intention to
                store records at an off-premises location as part of the application
                process. The amendments provide that required records must still be
                made available at the permitted premises upon request, but that copies
                (including electronic copies) will generally satisfy this requirement.
                 The TTB regulations at 27 CFR 19.573 provide that a DSP's records
                may be maintained at the DSP or at a central recordkeeping location
                maintained by the DSP proprietor. In the latter case, the proprietor
                must submit a letterhead notice to TTB informing TTB of the location
                where the records are kept. Section 19.574, concerning availability of
                records, further provides that if records are kept at a location other
                than the DSP premises, they must nonetheless be made available at the
                DSP premises upon request, generally within two days of the request.
                 The current recordkeeping requirements applicable to TTB-regulated
                manufacturers of nonbeverage products, specially denatured spirits
                dealers and users, tax-free alcohol users, importers, wholesalers, and
                alcohol beverage dealers do not similarly allow records to be
                maintained at a location other than the premises covered by the permit
                or registration. As a result, such proprietors generally must submit a
                request for specific authorization to retain records at a central
                recordkeeping location rather than at the premises covered by the
                permit or registration. TTB proposes to amend the record
                [[Page 68581]]
                retention requirements applicable to such entities (i.e., record
                retention requirements in 27 CFR parts 17, 20, 22, 26, 27, 28, and 31)
                to reflect those set forth in Sec. Sec. 19.573 and 19.574, described
                above. TTB also proposes amendments to Sec. 19.574, as well as other
                record retention provisions in part 19, intended to clarify that an
                industry member generally may satisfy a request for documents by
                providing copies of such documents, including electronic copies.
                III. Public Participation
                A. Comments Invited
                 TTB invites comments from interested members of the public on this
                proposed rulemaking. TTB also invites comments on any additional means
                to streamline application processes within the parameters of TTB's
                statutory obligations.
                B. Submitting Comments
                 You may submit comments on this proposal as an individual or on
                behalf of a business or other organization via the Regulations.gov
                website or via postal mail, as described in the ADDRESSES section of
                this document. Your comment must reference Notice No. 207 and must be
                submitted or postmarked by the closing date shown in the DATES section
                of this document. You may upload or include attachments with your
                comment. You also may submit a comment requesting a public hearing on
                this proposal. The TTB Administrator reserves the right to determine
                whether to hold a public hearing. If TTB schedules a public hearing, it
                will publish notification of the date, time, and place for the hearing
                in the Federal Register.
                C. Confidentiality and Disclosure of Comments
                 All submitted comments and attachments are part of the rulemaking
                record and are subject to public disclosure. Do not enclose any
                material in your comments that you consider confidential or that is
                inappropriate for disclosure.
                 TTB will post, and you may view, copies of this document, its
                supporting materials, and any comments TTB receives about this proposal
                within the related Regulations.gov docket. In general, TTB will post
                comments as submitted, and it will not redact any identifying or
                contact information from the body of a comment or attachment.
                 Please contact TTB's Regulations and Rulings division by email
                using the web form available at https://www.ttb.gov/contact-rrd, or by
                telephone at 202-453-2265, if you have any questions regarding comments
                on this proposal or to request copies of this document, its supporting
                materials, or the comments received in response.
                IV. Regulatory Analysis and Notices
                A. Executive Order 12866
                 It has been determined that this proposed rule is not a significant
                regulatory action as defined by Executive Order 12866. Therefore, a
                regulatory impact assessment is not required.
                B. Regulatory Flexibility Act
                 In accordance with the Regulatory Flexibility Act (5 U.S.C. 601 et
                seq.), TTB has analyzed the potential economic effects of this action
                on small entities. In lieu of the initial regulatory flexibility
                analysis required to accompany proposed rules under 5 U.S.C. 603,
                section 605 allows the head of an agency to certify that a rule will
                not, if promulgated, have a significant economic impact on a
                substantial number of small entities. The following analysis provides
                the factual basis for TTB's certification under section 605.
                Impact on Small Entities
                 While TTB believes the majority of businesses subject to this
                proposed rule are small businesses, the changes proposed in this
                document will not have a significant impact on those small entities.
                The proposed amendments are generally aimed at reducing burden on
                regulated entities of all sizes by: (1) Eliminating the collection of
                certain information from applications for permits or registrations; (2)
                replacing required narrative descriptions of an applicant's premises
                with more specific description requirements; (3) extending deadlines
                for reporting certain changes in a permitted or registered business;
                (4) relaxing the requirements associated with amending the trade names
                available for use by a permitted or registered business; (5) allowing
                the maintenance of required records at locations other than the
                permitted or registered premises; and (6) clarifying and limiting which
                individuals are required to submit certain background information in
                connection with an application for permit or registration. Many of the
                proposed changes are consistent with recommendations submitted by
                industry in response to Treasury's request for recommendations for
                Treasury regulations that can be eliminated, modified, or streamlined
                in order to reduce burdens.
                 Examples of eliminating the collection of information from
                applications for permits or registrations are the proposed amendments
                to Sec. Sec. 19.73(a)(12), 19.76, and 19.123, which eliminate a
                requirement that an applicant for a DSP registration submit a statement
                of plant security measures and replace it with a requirement that the
                applicant certify its premises is in compliance with the security
                specifications already established at Sec. 19.192. Additionally,
                proposed amendments to Sec. 19.75 eliminate the requirement to provide
                in the application for registration the serial numbers of the tanks,
                stills, and condensers to be used on the DSP premises, allowing an
                application to be filed when equipment is on order but not yet
                received.
                 The proposed amendments to Sec. Sec. 19.73, 19.74, 19.141, 19.142,
                19.143, 19.643, 19.673, 19.675, 19.676, and 19.692 replace requirements
                for narrative descriptions of an applicant's DSP premises with
                requirements to submit more specific information regarding the
                premises. For example, in connection with an application for
                registration as a DSP, Sec. 19.74 currently requires a detailed
                narrative description of the DSP premises, including each tract of land
                covered by the DSP, featuring ``directions and distances in enough
                detail to enable the appropriate TTB officer to readily determine the
                boundaries of the plant.'' The proposed amendments to Sec. 19.74
                remove the narrative description requirements and instead require the
                submission of more limited information illustrating certain specified
                attributes.
                 An example of extending deadlines for reporting changes in a
                permitted or registered business is the proposed amendment to Sec.
                19.112, which provides the general rules for notifying TTB of any
                changes in the information included in a DSP's notice of registration.
                Section 19.112 generally requires that when such changes occur, the
                proprietor must file specified documentation with TTB to amend the
                registration within 30 days. The proposed amendments to Sec. 19.112
                extend this deadline to 60 days. TTB proposes similar amendments at
                Sec. Sec. 19.114, 19.126, 19.127, 19.130, 19.644, 19.683, 19.684,
                19.686, 19.687, 19.691, 20.56, 20.57, 22.57, 22.58, and 31.138.
                 An example of relaxing the reporting requirements associated with
                changes in the trade names available for use by a permitted or
                registered business is the proposed amendment to Sec. 19.129. Section
                19.129 currently requires that a proprietor of a DSP apply for, and
                receive approval of, an amended operating permit prior to operating
                under a new trade name. The proposed amendment to Sec. 19.129 allows
                the
                [[Page 68582]]
                addition of a new trade name through a letterhead notice that does not
                require TTB approval. TTB proposes similar amendments at Sec. Sec.
                1.40, 20.61, 22.62, and 31.132.
                 Concerning records maintenance, current recordkeeping requirements
                applicable to manufacturers of nonbeverage products, specially
                denatured spirits dealers and users, tax-free alcohol users, importers,
                wholesalers, and alcohol beverage dealers do not allow records to be
                maintained at a location other than the premises covered by the permit
                or registration. The proposed amendments to Sec. Sec. 17.161, 17.171,
                20.267, 22.164, 26.174, 26.275, 26.310, 27.136, 28.45, 31.152, 31.172,
                and 31.181 generally allow for the maintenance of required records at
                locations other than the permitted or registered premises upon
                letterhead notice to TTB.
                 With respect to the collection of applicant background information,
                TTB proposes amendments to 27 CFR 19.93, 19.677, 20.45, and 22.45 to
                clarify the individuals who are required to submit statements of
                financial interest in a business applying for a distilled spirits-
                related permit or registration. The proposed amendments clarify that:
                (1) Such statements of interest are required only from persons with an
                ownership interest in the applicant of 10 percent or greater; and (2)
                where a ``person'' holding such an interest is a legal entity other
                than an individual, an applicant must submit basic identifying
                information about a representative individual for that entity.
                 In conclusion, while the entities affected by the proposed rule
                include a substantial number of small entities, the effects of the
                changes in this proposed rule are expected to be positive for the
                affected entities.
                 In accordance with the Regulatory Flexibility Act (5 U.S.C. 601 et
                seq.), TTB certifies that this proposed rule, if promulgated, will not
                have a significant economic impact on a substantial number of small
                entities. The proposed rule will not impose, or otherwise cause, a
                significant increase in reporting, recordkeeping, or other compliance
                burdens on a substantial number of small entities. The proposed rule is
                not expected to have significant secondary or incidental effects on a
                substantial number of small entities. Accordingly, a regulatory
                flexibility analysis is not required. Pursuant to 26 U.S.C. 7805(f),
                TTB will submit the proposed regulations to the Chief Counsel for
                Advocacy of the Small Business Administration for comment on the impact
                of the proposed regulations on small businesses.
                C. Paperwork Reduction Act
                 Regulations addressed in this document contain current collections
                of information that have been previously reviewed and approved by the
                Office of Management and Budget (OMB) in accordance with the Paperwork
                Reduction Act of 1995 (44 U.S.C. 3504(h)) and assigned control numbers
                1513-0002, 1513-0018, 1513-0019, 1513-0028, 1513-0040, 1513-0041, 1513-
                0044, 1513-0048, 1513-0051, 1513-0052, 1513-0059, 1513-0060, 1513-0061,
                1513-0062, 1513-0065, 1513-0066, 1513-0073, 1513-0075, 1513-0088, 1513-
                0089, and 1513-0112. The specific regulatory sections in this proposed
                rule that contain collections of information, either current or
                proposed, are Sec. Sec. 1.27, 1.40, 1.42, 1.44, 17.161, 19.73, 19.74,
                19.75, 19.93, 19.94, 19.112, 19.114, 19.119, 19.126, 19.127, 19.129,
                19.130, 19.141, 19.142, 19.143, 19.192, 19.574, 19.643, 19.644, 19.673,
                19.675, 19.676, 19.677, 19.683, 19.684, 19.686, 19.687, 19.691, 19.692,
                20.42, 20.45, 20.56, 20.57, 20.61, 20.267, 22.42, 22.45, 22.57, 22.58,
                22.62, 22.164, 26.174, 26.275, 26.310, 27.136, 28.45, 31.114, 31.132,
                31.138, 31.152, 31.172, and 31.181. An agency may not conduct or
                sponsor, and a person is not required to respond to, a collection of
                information unless it displays a valid control number assigned by OMB.
                 The amendments that TTB proposes in this document, along with
                certain corresponding policy changes, are designed to reduce the
                overall burden associated with the information collections noted above.
                In general, the proposed amendments involve: (1) Eliminating the
                collection of certain information from applications for permits or
                registrations; (2) replacing required narrative descriptions of an
                applicant's premises with more specific information; (3) extending
                deadlines for reporting certain changes in a permitted or registered
                business; (4) relaxing the requirements associated with amending the
                trade names available for use by a permitted or registered business;
                (5) allowing the maintenance of required records at locations other
                than the permitted or registered premises; and (6 clarifying which
                individuals are required to submit certain background information in
                connection with an application for permit or registration.
                 To reduce the amount of information collected in applications for
                distilled spirits-related permits or registrations, TTB proposes to
                amend 27 CFR 19.73, 19.75, and 19.192, and to eliminate 27 CFR 19.76,
                19.77, and 19.123. Proposed amendments to Sec. 19.73(a)(13) and the
                elimination of Sec. 19.77 eliminate requirements that an applicant for
                a DSP registration intending to operate as a distiller submit a
                statement of its production procedures and a statement as to whether
                spirits will be redistilled. Proposed amendments to current Sec.
                19.73(a)(14) eliminate requirements that an applicant for a DSP
                registration intending to operate as a warehouseman submit a narrative
                description of its storage system and a statement of the total amount
                of bulk wine gallons that can be stored. Additionally, proposed
                amendments to current Sec. 19.73(a)(15) eliminate requirements that an
                applicant for a DSP registration intending to operate as a processor
                submit a narrative description of the storage system for spirits
                bottled and cased or otherwise packaged and placed in approved
                containers for removal from the bonded premises. Proposed amendments to
                Sec. Sec. 19.73(a)(12) and 19.192, and the elimination of Sec. Sec.
                19.76 and 19.123, eliminate a requirement that an applicant for a DSP
                registration submit a statement of plant security measures and replace
                it with a requirement that the applicant certify its premises is in
                compliance with the security specifications already established at
                Sec. 19.192. The amendments to Sec. 19.192 also generalize the
                required specifications for locks to be used on the DSP premises. The
                proposed amendments to Sec. 19.75 eliminate the requirement to provide
                in the application for registration the serial numbers of the tanks,
                stills, and condensers to be used on the DSP premises. Sections 19.73,
                19.75, 19.76, 19.77, 19.123, and 19.192 are currently included in the
                collection of information assigned OMB control number 1513-0048. TTB
                has submitted to OMB a revision of that information collection to
                account for the reduced burden of the proposed amendments.
                 Similar to the amendments to Sec. 19.75 described in the previous
                paragraph, TTB proposes amendments 27 CFR 20.42 and 22.42 to remove
                requirements to provide serial numbers of equipment to be used by
                applicants for permits as users of denatured alcohol and of tax-free
                alcohol. Sections 20.42 and 22.42 are currently included in the
                collection of information assigned OMB control number 1513-0028. TTB
                has submitted to OMB a revision of that information collection to
                account for the reduced burden of the proposed amendments.
                 To replace required narrative descriptions of applicant premises
                with more specific information and certifications, TTB proposes
                amendments to 27 CFR 19.73, 19.74, 19.141, 19.142, 19.143, 19.643,
                19.673, 19.675, 19.676, and 19.692. The
                [[Page 68583]]
                proposed amendments to Sec. 19.74 eliminate requirements to submit
                detailed narrative descriptions of the plant and certain of its
                attributes, and replace these requirements with a more specific set of
                information and certifications. TTB proposes similar amendments with
                respect to applications for alcohol fuel plant permits at Sec. Sec.
                19.673, 19.675, and 19.676; and with respect to applications for
                vinegar plants at Sec. 19.643. Sections 19.141, 19.142, and 19.143
                each relate to qualifying to alternate the DSP premises. TTB proposes
                amendments to these sections to eliminate requirements to submit
                narrative statements describing the areas to be alternated and the
                means by which the alternated areas will be separated from other parts
                of the premises. TTB's proposed amendments require more specific
                information. TTB proposes similar amendments to with respect to
                alternation of an alcohol fuel plant at Sec. 19.692.
                 Sections 19.74 and 19.143 are currently included in the collection
                of information assigned OMB control number 1513-0048; Sec. Sec. 19.141
                and 19.142 are being added to the collection of information assigned
                OMB control number 1513-0048 in revisions submitted to OMB (these
                sections were inadvertently not referenced in the supporting statement,
                but their burden has been accounted for); Sec. Sec. 19.673, 19.675,
                and 19.676 are currently included in the collection of information
                assigned OMB control number 1513-0051; and the amended provisions of
                Sec. 19.692 are currently included in the collection of information
                assigned OMB control number 1513-0051. TTB has submitted to OMB
                revisions of those information collections to account for the reduced
                burden of the proposed amendments. The information collected under
                Sec. 19.643 is not subject to the Paperwork Reduction Act due to the
                limited number of respondents.
                 The TTB regulations generally require that, when there is a change
                in the information filed with TTB as part of an application for a
                permit or registration, the proprietor of the regulated business must
                notify TTB of the change. To extend deadlines for reporting certain
                changes in a permitted or registered business, TTB proposes amendments
                to 27 CFR 19.112, 19.114, 19.126, 19.127, 19.130, 19.644, 19.683,
                19.684, 19.686, 19.687, 19.691, 20.56, 20.57, 22.57, 22.58, and 31.138.
                In each case, the deadline for reporting the specified change in the
                business is extended to 60 days, typically from 30 days (in some cases,
                current regulatory text required industry to inform TTB ``immediately''
                of certain changes; see, e.g., Sec. 19.644). Sections 19.112 and
                19.114 are currently included in the collection of information assigned
                OMB control number 1513-0048; Sec. Sec. 19.126 and 19.130 are
                currently included in the collection of information assigned OMB
                control number 1513-0040; Sec. Sec. 19.683, 19.684, and 19.686 are
                currently included in the collection of information assigned OMB
                control number 1513-0051; Sec. Sec. 19.683, 19.687, and 19.691 are
                currently included in the collection of information assigned OMB
                control number 1513-0052 (additionally, the letterhead application
                provisions of Sec. 19.686 are being added to this collection of
                information in revisions submitted to OMB); Sec. Sec. 20.56 and 20.57
                are currently included in the collection of information assigned OMB
                control number 1513-0061; Sec. Sec. 22.57 and 22.58 are currently
                included in the collection of information assigned OMB control number
                1513-0060; and Sec. 31.138 is currently included in the collection of
                information assigned OMB control number 1513-0112. TTB has submitted to
                OMB revisions of those information collections to account for the
                reduced burden of the proposed amendments. The revision to number 1513-
                0040 also adds a reference to Sec. 19.127. The information collected
                under Sec. 19.644 is not subject to the Paperwork Reduction Act due to
                the limited number of respondents.
                 The TTB regulations generally require that changes to, or additions
                of, the trade names under which a permitted or registered business may
                operate be made by filing for an amended permit or registration. Such
                applications would need to be approved prior to the applicant beginning
                operations under the new trade name. To relax the requirements
                associated with altering the trade names available for use by a
                permitted or registered business, TTB proposes amendments to 27 CFR
                1.40, 19.129, 20.61, 22.62, and 31.132. The amendments would allow
                changes to, or additions of, trade names to be accomplished by a
                letterhead notice. TTB also proposes an amendment to 27 CFR 19.94 to
                remove the requirement that an applicant for an original DSP operating
                permit submit supporting documentation for the trade names identified
                in the application. Section 1.40 is currently included in the
                collection of information assigned OMB control number 1513-0019;
                Sec. Sec. 19.94 and 19.129 are currently included in the collection of
                information assigned OMB control number 1513-0040; Sec. 20.61 is
                currently included in the collection of information assigned OMB
                control number 1513-0061; Sec. 22.62 is currently included in the
                collection of information assigned OMB control number 1513-0060; and
                Sec. 31.132 currently included in the collection of information
                assigned OMB control number 1513-0112. TTB has submitted to OMB
                revisions of those information collections to account for the reduced
                burden of the proposed amendments.
                 The current recordkeeping requirements applicable to specially
                denatured spirits dealers and users, tax-free alcohol users,
                manufacturers of nonbeverage products, importers, wholesalers, and
                alcohol beverage dealers do not allow records to be maintained at a
                location other than the premises covered by the permit or registration.
                As a result, such proprietors generally must submit a request for
                specific authorization to retain records at a central recordkeeping
                location rather than the premises covered by the permit or
                registration. To allow the maintenance of required records at locations
                other than the permitted or registered premises, TTB proposes
                amendments to 27 CFR 17.161, 17.171, 20.267, 22.164, 26.174, 26.275,
                26.310, 27.136, 28.45, 31.152, 31.172, and 31.181. These amendments, as
                well as amendments to 27 CFR 19.574, also clarify that an industry
                member generally may satisfy a request for documents by providing
                copies of such documents, including electronic copies. Sections 17.161
                and 17.171 are currently included in the collection of information
                assigned OMB control number 1513-0073; Sec. 19.574 is currently
                included in the collection of information assigned OMB control number
                1513-0041; the general record retention provisions of Sec. 22.164 are
                currently included in the collection of information assigned OMB
                control number 1513-0059, while the proposed notice associated with
                off-premises records retention has been added to the collection of
                information assigned OMB control number 1513-0060 in revisions
                submitted to OMB. In addition, Sec. 20.267 is currently included in
                OMB control number 1513-0062; Sec. Sec. 26.174 and 26.310 are
                currently included in the collection of information assigned OMB
                control number 1513-0089; Sec. 28.45 is currently included in the
                collection of information assigned OMB control number 1513-0075;
                Sec. Sec. 31.152 and 31.172 are currently included in the collection
                of information assigned OMB control number 1513-0065; Sec. 31.181 is
                currently included in the collection of information assigned OMB
                control number 1513-0066; and Sec. Sec. 19.574, 26.174, 26.310, and
                27.136 are currently
                [[Page 68584]]
                included in the collection of information assigned OMB control number
                1513-0088. TTB has submitted to OMB revisions of those information
                collections as needed to account for the reduced burden of the proposed
                amendments. Additionally, the revision to OMB control number 1513-0088
                adds references to Sec. Sec. 26.275 and 28.45. TTB also submitted to
                OMB a revision of the information collection assigned OMB control
                number 1513-0061, to add a reference to Sec. 20.267.
                 With respect to the collection of applicant background information,
                TTB proposes amendments to 27 CFR 19.93, 19.677, 20.45, 22.45, and
                31.114 to clarify the individuals who are required to submit statements
                of financial interest in the applicant business. The above regulations
                generally require statements disclosing the identities of persons
                holding certain levels of ownership in a business applying for a
                distilled spirits-related registration or permit be submitted with such
                applications. The proposed amendments clarify that (1) Such statements
                of interest are required only from persons with an ownership interest
                in the applicant of 10 percent or greater; and (2) where a ``person''
                holding such an interest is a legal entity other than an individual, an
                applicant must submit basic identifying information about a
                representative individual for that entity. Section 19.93 is currently
                included in the collection of information assigned OMB control number
                1513-0040, and TTB has proposed revisions to also include it in the
                collection of information assigned OMB control number 1513-0048; Sec.
                19.677 is currently included in the collection of information assigned
                OMB control number 1513-0051; Sec. Sec. 20.45 and 22.45 are currently
                included in the collection of information assigned OMB control number
                1513-0028; and Sec. 31.114 is currently included in the collection of
                information assigned OMB control number 1513-0112. TTB proposes
                conforming amendments to 27 CFR 1.27, 1.42, 1.44, 19.114, 19.127,
                19.130, 19.684, and 19.687, each relating to reporting changes in the
                ownership of the applicant or permitted business, to update the
                description of ownership interests consistent with the amendments
                described above. Section 1.27 is currently included in the collection
                of information assigned OMB control number 1513-0018; Sec. 1.42 is
                currently included in the collection of information assigned OMB
                control number 1513-0019; Sec. 19.114 is currently included in the
                collection of information assigned OMB control number 1513-0048; Sec.
                19.130 is currently included in the collection of information assigned
                OMB control number 1513-0040; Sec. 19.684 currently included in the
                collection of information assigned OMB control number 1513-0051; and
                Sec. 19.687 is currently included in the collection of information
                assigned OMB control number 1513-0052. TTB has submitted to OMB
                revisions of the collections of information assigned OMB control
                numbers 1513-0019 and 1513-0040 to add references to Sec. Sec. 1.44
                and 19.127, respectively. The burden for these sections was already
                accounted for, but citations to these sections were left out in error.
                 As noted above, TTB has submitted the revised information
                collection requirements to OMB for review. Comments on these revised
                recordkeeping and reporting requirements should be sent to OMB at
                Office of Management and Budget, Attention: Desk Officer for the
                Department of the Treasury, Office of Information and Regulatory
                Affairs, Washington, DC 20503 or by email to
                [email protected]. A copy should also be sent to TTB by any
                of the methods previously described. Comments on the information
                collections should be submitted no later than February 1, 2022.
                Comments are specifically requested concerning:
                 Whether the collections of information submitted to OMB
                are necessary for the proper performance of the functions of the
                Alcohol and Tobacco Tax and Trade Bureau, including whether the
                information will have practical utility;
                 The accuracy of the estimated burdens associated with the
                collections of information submitted to OMB;
                 How to enhance the quality, utility, and clarity of the
                information to be collected;
                 How to minimize the burden of complying with the proposed
                revisions of the collections of information, including the application
                of automated collection techniques or other forms of information
                technology; and
                 Estimates of capital or start-up costs and costs of
                operation, maintenance, and purchase of services to provide
                information.
                List of Subjects
                27 CFR Part 1
                 Alcohol and alcoholic beverages, Application procedures, Distilled
                spirits plants, Importers, Permit requirements, Reporting and
                recordkeeping requirements, Trade names, Wholesalers.
                27 CFR Part 17
                 Claims, Excise taxes, Liquors, Reporting and recordkeeping
                requirements.
                27 CFR Part 19
                 Alcohol and alcoholic beverages, Alcohol fuel plants, Alternation,
                Application procedures, Distilled spirits plants, Permit requirements,
                Registration requirements, Reporting and recordkeeping requirements,
                Security requirements, Trade names, Vinegar plants.
                27 CFR Part 20
                 Alcohol, Application procedures, Denatured spirits, Distilled
                spirits plants, Permit requirements, Reporting and recordkeeping
                requirements, Specially denatured spirits, Trade names.
                27 CFR Part 22
                 Alcohol, Application procedures, Permit requirements, Reporting and
                recordkeeping requirements, Tax-free alcohol.
                27 CFR Part 26
                 Alcohol and alcohol beverages, Puerto Rico, Reporting and
                recordkeeping requirements, Virgin Islands.
                27 CFR Part 27
                 Alcohol and alcohol beverages, Importation, Importers, Reporting
                and recordkeeping requirements.
                27 CFR Part 28
                 Alcohol and alcohol beverages, Exportation, Exporters, Reporting
                and recordkeeping requirements.
                27 CFR Part 31
                 Alcohol and alcohol beverages, Reporting and recordkeeping
                requirements, Retail dealers, Trade names, Wholesale dealers.
                Amendments to the Regulations
                 For the reasons discussed above in the preamble, TTB proposes to
                amend 27 CFR parts 1, 17, 19, 20, 22, 26, 27, 28, and 31 as follows:
                PART 1--BASIC PERMIT REQUIREMENTS UNDER THE FEDERAL ALCOHOL
                ADMINISTRATION ACT, NONINDUSTRIAL USE OF DISTILLED SPIRITS AND
                WINE, BULK SALES AND BOTTLING OF DISTILLED SPIRITS
                0
                1. The authority citation for part 1 continues to read as follows:
                 Authority: 27 U.S.C. 203, 204, 206, 211 unless otherwise noted.
                [[Page 68585]]
                0
                2. Section 1.24 is amended by revising paragraph (a) to read as
                follows:
                Sec. 1.24 Qualifications of applicants.
                * * * * *
                 (a) Such person (or in case of a limited liability entity, any of
                its officers, directors, or persons holding a 10 percent or more
                ownership interest in any of the classes or types of ownership of the
                applicant) has not, within 5 years prior to the date of application,
                been convicted of a felony under Federal or State law, and has not,
                within 3 years prior to the date of application, been convicted of a
                misdemeanor under any Federal law relating to liquor, including the
                taxation thereof; and
                * * * * *
                0
                3. Section 1.27 is revised to read as follows:
                Sec. 1.27 Change in ownership, management, or control of the
                applicant.
                 In the event of any change in the ownership, management, or control
                of the applicant (in case of a limited liability entity, any change in
                the officers, directors, or persons holding a 10 percent or more
                ownership interest in any of the classes or types of ownership of the
                applicant), after the date of filing of any application for a basic
                permit and prior to final action on such application, the applicant
                must notify the appropriate TTB officer immediately of such change.
                0
                4. Section 1.40 is revised to read as follows:
                Sec. 1.40 Change in name.
                 (a) Legal name. In the event of any change in the name of the
                individual, firm, corporation, or other entity holding a basic permit,
                the permittee must file application form TTB F 5100.18 for an amended
                basic permit. The application must be approved and an amended permit
                issued before operations may be commenced under the new name.
                 (b) Trade name. In the event of any change in a trade name of a
                permittee, or, in the event a permittee desires to engage in operations
                under an additional trade name, the permittee must first file a
                letterhead notice with the appropriate TTB officer listing the new
                names and the offices where they are registered.
                (Approved by the Office of Management and Budget under control
                number 1513-0019)
                0
                5. Section 1.42 is revised to read as follows:
                Sec. 1.42 Change in ownership, management, or control of business.
                 In the event of any change in the ownership, management, or control
                of any business operated pursuant to a basic permit (in case of a
                limited liability entity, any change in the officers, directors, or
                persons holding a 10 percent or more ownership interest in any of the
                classes or types of ownership of the permittee) the permittee must
                within 30 days notify the appropriate TTB officer of such change,
                giving the names and addresses of all new persons participating in the
                ownership, management, or control of such business. Notice to the
                appropriate TTB officer of any such change must be accompanied or
                supplemented by such data in reference to the personal or business
                history of such persons as the appropriate TTB officer may require.
                Sec. 1.44 [Amended]
                0
                6. Section 1.44 is amended by removing the word ``stock'' in the second
                sentence.
                PART 17--DRAWBACK ON TAXPAID DISTILLED SPIRITS USED IN
                MANUFACTURING NONBEVERAGE PRODUCTS
                0
                7. The authority citation for part 17 continues to read as follows:
                 Authority: 26 U.S.C. 5010, 5111-5114, 5123, 5206, 5273, 6065,
                6091, 6109, 7213, 7652, 7805; 31 U.S.C. 9301, 9303, 9304, 9306.
                0
                8. Section 17.161 is revised to read as follows:
                Sec. 17.161 General.
                 Each person claiming drawback on taxpaid distilled spirits used in
                the manufacture of nonbeverage products must maintain records showing
                the information required in this subpart. No particular form is
                prescribed for these records, but the data required to be shown must be
                clearly recorded and organized to enable appropriate TTB officers to
                trace each operation or transaction, monitor compliance with law and
                regulations, and verify the accuracy of each claim. Ordinary business
                records, including invoices and cost accounting records, are acceptable
                if they show the required information or are annotated to show any such
                information that is lacking. The records must be kept complete and
                current at all times and must be retained by the manufacturer for the
                period prescribed in Sec. 17.170 and at the place prescribed in Sec.
                17.171.
                0
                9. Section 17.171 is amended by:
                0
                a. Designating the paragraph as paragraph (a);
                0
                b. Removing the word ``shall'' each place it appears and adding in its
                place the word ``must'' in newly designated paragraph (a);
                0
                c. Adding paragraph (b); and
                0
                d. Removing the parenthetical authority citation at the end of the
                section.
                 The revision reads as follows:
                Sec. 17.171 Inspection of records.
                * * * * *
                 (b) A manufacturer may keep the records required by this part at a
                location other than the premises where the distilled spirits are used
                in the manufacture or production of nonbeverage products, if he or she
                has first provided a letterhead notice to the appropriate TTB officer,
                identifying the location where the records are to be kept. A
                manufacturer keeping records at a location other than the premises
                where distilled spirits are used in the manufacture or production of
                nonbeverage products must make the records available at such premises
                upon request of the appropriate TTB officer; however, the TTB officer
                may, at his or her discretion, allow the permittee to supply copies
                (including electronic copies) of such records instead of the originals.
                PART 19--DISTILLED SPIRITS PLANTS
                0
                10. The authority citation for part 19 continues to read as follows:
                 Authority: 19 U.S.C. 81c, 1311; 26 U.S.C. 5001, 5002, 5004-
                5006, 5008, 5010, 5041, 5061, 5062, 5066, 5081, 5101, 5111-5114,
                5121-5124, 5142, 5143, 5146, 5148, 5171-5173, 5175, 5176, 5178-5181,
                5201-5204, 5206, 5207, 5211-5215, 5221-5223, 5231, 5232, 5235, 5236,
                5241-5243, 5271, 5273, 5301, 5311-5313, 5362, 5370, 5373, 5501-5505,
                5551-5555, 5559, 5561, 5562, 5601, 5612, 5682, 6001, 6065, 6109,
                6302, 6311, 6676, 6806, 7011, 7510, 7805; 31 U.S.C. 9301, 9303,
                9304, 9306.
                0
                11. Section 19.73 is amended by:
                0
                a. Revising paragraphs (a)(12) and (13);
                0
                b. Removing paragraph (a)(14);
                0
                c. Redesignating paragraph (a)(15) as paragraph (a)(14) and revising
                newly redesignated paragraph (a)(14);
                0
                d. Redesignating paragraph (a)(16) as paragraph (a)(15); and
                0
                e. Removing the parenthetical authority citation at the end of the
                section.
                 The revisions read as follows:
                Sec. 19.73 Information required in an application for registration.
                 (a) * * *
                 (12) A certification that the plant's security will be in
                compliance with Sec. 19.192;
                [[Page 68586]]
                 (13) If the applicant intends to operate as a distiller, a
                statement of the total proof gallons of spirits that can be produced
                daily;
                 (14) If the applicant intends to operate as a processor, a
                statement whether spirits will or will not be bottled, denatured,
                redistilled, and whether articles will be manufactured; and
                * * * * *
                0
                12. Section 19.74 is revised to read as follows:
                Sec. 19.74 Description of the plant.
                 (a) As required by Sec. 19.73(a)(8), the application for
                registration must include a description of the distilled spirits plant.
                The description may be in narrative form or diagram form, and must
                illustrate:
                 (1) The overall dimensions of the building(s) housing the distilled
                spirits plant;
                 (2) The dimensions of the bonded premises and any general premises;
                 (3) Any internal walls establishing the boundaries of the bonded
                premises and general premises;
                 (4) The external doors of the distilled spirits plant premises;
                 (5) Any portions of the plant premises that are outdoors, including
                the location of any outdoor tanks; and
                 (6) Any adjacent retail premises that are to be operated by the
                applicant.
                 (b) Photographs further illustrating any of the elements required
                in paragraph (a) of this section must be submitted upon request of the
                appropriate TTB officer.
                0
                13. Section 19.75 is amended by:
                0
                a. Revising the first sentences of paragraphs (a) and (b);
                0
                b. Revising paragraph (c); and
                0
                c. Removing the parenthetical authority citation at the end of the
                section.
                 The revisions read as follows:
                Sec. 19.75 Major equipment.
                * * * * *
                 (a) The capacity of each tank in the plant. * * *
                 (b) The kind, capacity, and intended use of each still in the
                plant. * * *
                 (c) The number of condensers used in the plant.
                Sec. 19.76 [Removed]
                0
                14. Section 19.76 is removed.
                Sec. 19.77 [Removed]
                0
                15. Section 19.77 is removed.
                0
                16. Section 19.80 is amended by:
                0
                a. Adding a sentence before the last sentence; and
                0
                b. Removing the parenthetical authority citation at the end of the
                section.
                 The addition reads as follows:
                Sec. 19.80 Approved notice of registration.
                 * * * In a circumstance in which a proprietor of a distilled
                spirits plant is authorized to continue to operate under either an FAA
                Act permit or an operating permit under the IRC while a new permit
                application is pending, such as under 27 CFR 1.44 or 19.127, the
                proprietor's notice of registration will also remain valid until TTB
                takes final action upon the new application. * * *
                0
                17. Section 19.93 is amended by:
                0
                a. Removing the citation to ``19.92(a)(4)'' and adding in its place
                ``19.92(b)(4)'' in the first sentence of paragraph (a) introductory
                text;
                0
                b. Adding the word ``ownership'' before the word ``interest'' the first
                time it appears in paragraph (b)(1);
                0
                c. Revising paragraphs (b)(2)(i) and (ii);
                0
                d. Adding paragraph (b)(3); and
                0
                e. Removing the parenthetical authority citation at the end of the
                section.
                 The revisions and addition read as follows:
                Sec. 19.93 Applicant organization documents.
                * * * * *
                 (b) * * *
                 (2) * * *
                 (i) The names and addresses of persons having a 10 percent or more
                ownership interest in each of the classes or types of ownership
                interest in the applicant, and the nature and amount of ownership
                interest of each person.
                 (ii) The name of the person in whose name the interest appears. If
                the limited liability entity is under actual or legal control of
                another limited liability entity, the appropriate TTB officer may
                request the same information regarding ownership for the parent limited
                liability entity.
                 (3) Representative. If any interested person named under paragraphs
                (b)(1) and (2) of this section is a legal entity other than an
                individual, the applicant must also provide the name, title, and city
                and state of residence of a representative individual for the entity.
                The representative individual must be the individual designated by the
                entity to represent the entity's interest in the applicant business or,
                in the absence of a designated individual, an owner, chief officer or
                manager, or person with similar authority within the entity.
                Sec. 19.94 [Amended]
                0
                18. Section 19.94 is amended by removing the final sentence in
                paragraph (a) and the parenthetical authority citation at the end of
                the section.
                0
                19. Section 19.96 is amended by:
                0
                a. Revising paragraph (a); and
                0
                b. Removing the parenthetical authority citation at the end of the
                section.
                 The revision reads as follows:
                Sec. 19.96 Denial of permit.
                * * * * *
                 (a) The applicant (including, in the case of a limited liability
                entity, any of its officers, directors, or persons holding a 10 percent
                or more ownership interest in any of the classes or types of ownership
                of the applicant) is, by reason of business experience, financial
                standing, or trade connections, not likely to maintain operations in
                compliance with 26 U.S.C. chapter 51, or the regulations in this
                chapter;
                * * * * *
                Sec. 19.112 [Amended]
                0
                20. Section 19.112 is amended by:
                0
                a. Removing the phrase ``30 days'' and adding in its place ``60 days''
                in the first sentence of the introductory text; and
                0
                b. Removing the parenthetical authority citation at the end of the
                section.
                Sec. 19.114 [Amended]
                0
                21. Section 19.114 is amended by:
                0
                a. Adding the words ``an ownership'' before the word ``interest'' in
                the first sentence of the introductory text;
                0
                b. Removing the phrase ``30 days'' each place it appears and adding in
                its place ``60 days''; and
                0
                c. Removing the parenthetical authority citation at the end of the
                section.
                0
                22. Section 19.119 is amended by:
                0
                a. Designating the paragraph as paragraph (a);
                0
                b. Adding paragraph (b); and
                0
                c. Removing the parenthetical authority citation at the end of the
                section.
                 The addition reads as follows:
                Sec. 19.119 Change in premises.
                * * * * *
                 (b)(1) If the proprietor intends to make any change to the
                premises, other than those covered by paragraph (a) of this section or
                by Sec. Sec. 19.142 and 19.143, that would render inaccurate the
                description submitted with the registration or submitted separately or
                previously by the proprietor with another reported change, the
                proprietor must first submit to TTB updated information meeting the
                requirements of Sec. 19.74.
                 (2) The proprietor may make emergency changes to the premises
                described in paragraph (b)(1) of this section without first submitting
                updated information. However, the proprietor
                [[Page 68587]]
                must promptly report any emergency change to the appropriate TTB
                officer and submit updated information meeting the requirements of
                Sec. 19.74 within 60 days of the emergency changes.
                Sec. 19.121 [Removed]
                0
                23. Section 19.121 is removed.
                Sec. 19.122 [Removed]
                0
                24. Section 19.122 is removed.
                Sec. 19.123 [Removed]
                0
                25. Section 19.123 is removed.
                Sec. 19.126 [Amended]
                0
                26. Section 19.126 is amended by:
                0
                a. Removing the phrase ``30 days'' and adding in its place ``60 days''
                in paragraph (a); and
                0
                b. Removing the parenthetical authority citation at the end of the
                section.
                0
                27. Section 19.127 is amended by:
                0
                a. Revising paragraph (a)(3); and
                0
                b. Removing the parenthetical authority citation at the end of the
                section.
                 The revision reads as follows:
                Sec. 19.127 Automatic termination of permits.
                 (a) * * *
                 (3) In the case of a limited liability entity (i.e., a corporation,
                limited liability partnership, limited liability company, or other
                legal entity in which some or all of the owners have limited personal
                liability for the activities of the entity) holding a permit issued
                under subpart D of this part, if actual or legal control of such
                limited liability entity changes, directly or indirectly, whether by
                reason of a change in ownership or control (in the permittee limited
                liability entity or any other limited liability entity), by operation
                of law, or in any other manner, the permittee must file an application
                for a new permit within 60 days of the change. If an application for a
                new permit is not filed within 60 days of the change, the outstanding
                permit will automatically terminate. If an application for a new permit
                is filed within the 60-day period prescribed in the preceding
                sentences, the outstanding permit will remain in effect until TTB takes
                final action on the application. When TTB takes final action on the
                application, the outstanding permit will automatically terminate.
                * * * * *
                0
                28. Section 19.129 is revised to read as follows:
                Sec. 19.129 Change in trade name.
                 In the event of any change in a trade name of a proprietor of a
                distilled spirits plant, or, in the event a proprietor desires to
                engage in operations under an additional trade name, the proprietor
                must first file a letterhead notice with the appropriate TTB officer
                listing the new names and the offices where they are registered.
                Sec. 19.130 [Amended]
                0
                29. Section 19.130 is amended by:
                0
                a. Adding the words ``an ownership'' before the word ``interest'' in
                the first sentence of the introductory text;
                0
                b. Removing the phrase ``30 days'' each place it appears and adding in
                its place ``60 days''; and
                0
                c. Removing the parenthetical authority citation at the end of the
                section.
                0
                30. Section 19.141 is amended by:
                0
                a. Revising paragraph (a);
                0
                b. Removing the word ``diagrams'' and adding in its place
                ``description'' in paragraph (b)(4); and
                0
                c. Removing the parenthetical authority citation at the end of the
                section.
                 The revision reads as follows:
                Sec. 19.141 Procedures for alternation of proprietors.
                 (a) General. A proprietor may alternate use of a distilled spirits
                plant or part of the plant with one or more other proprietors. In order
                to do so, each proprietor must separately file and receive approval of
                the necessary registration, applications and bonds that are required by
                subpart D of this part and this subpart. Each proprietor must also
                conduct operations and keep records in accordance with the regulations
                in this part. Where operations by alternating proprietors will be
                limited to parts of the plant, the descriptions required to be
                submitted with each proprietor's application for registration under
                Sec. 19.73(a)(8) must additionally illustrate the following:
                 (1) The areas, rooms, or buildings, or combination of rooms and/or
                buildings, that will alternate between proprietors; and
                 (2) The means by which the alternated premises will be separated
                from any premises that will not be alternated.
                * * * * *
                0
                31. Section 19.142 is amended by:
                0
                a. Revising paragraph (b);
                0
                b. Removing the word ``diagrams'' and adding in its place
                ``description'' in paragraph (c)(3); and
                0
                c. Removing the parenthetical authority citation at the end of the
                section.
                 The revision reads as follows:
                Sec. 19.142 Alternate use of premises and equipment for customs
                purposes.
                * * * * *
                 (b) Qualification. Before alternating the plant premises for
                customs purposes, the proprietor must file and receive approval of the
                necessary registration, application and bonds as required by this part.
                The description required to be submitted with the proprietor's
                application for registration under Sec. 19.73(a)(8) must additionally
                illustrate the following:
                 (1) The areas, rooms, or buildings, or combination of rooms and/or
                buildings, that will alternate between proprietors; and
                 (2) The means by which the alternated premises will be separated
                from any premises that will not be alternated.
                * * * * *
                0
                32. Section 19.143 is amended by:
                0
                a. Revising paragraph (b)(2); and
                0
                b. Removing the parenthetical authority citation at the end of the
                section.
                 The revision reads as follows:
                Sec. 19.143 Alternation for other purposes.
                * * * * *
                 (b) * * *
                 (2) Description. For all alternate uses, the proprietor must
                provide additional versions of the description required under Sec.
                19.73(a)(8) describing or showing the premises as they will exist, both
                during extension and curtailment, and clearly depicting all buildings,
                floors, rooms, areas, equipment that are to be subject to alternation,
                in their relative operating sequence.
                * * * * *
                0
                33. Section 19.192 is amended by:
                0
                a. Revising paragraph (e);
                0
                b. Removing paragraph (f);
                0
                c. Redesignating paragraph (g) as paragraph (f); and
                0
                d. Removing the parenthetical authority citation at the end of the
                section.
                 The revision reads as follows:
                Sec. 19.192 Security.
                * * * * *
                 (e) Locks. Locks of a class and construction that is usual and
                customary in the industry to prevent unauthorized access to, and theft
                of, commercial property must be used to secure:
                 (1) Outdoor tanks used to store spirits, or an enclosure around
                such tanks;
                 (2) Indoor tanks used to store spirits, or the door from which
                access may be gained from the outside to the rooms or buildings in
                which such tanks are housed; and
                 (3) Any doors from which access may be gained from the outside to
                rooms or buildings containing spirits stored in portable bulk
                containers.
                * * * * *
                [[Page 68588]]
                0
                34. Section 19.574 is revised to read as follows:
                Sec. 19.574 Availability of records.
                 The records required by this part must be available for inspection
                by the appropriate TTB officer during normal business hours. Any
                proprietor keeping records at a location other than the distilled
                spirits plant where operations or transactions occur must make them
                available at the distilled spirits plant premises upon request of the
                appropriate TTB officer; however, the TTB officer may, in his or her
                discretion, allow the proprietor to supply copies (including electronic
                copies) of such records instead of the originals.
                0
                35. Section 19.643 is revised to read as follows:
                Sec. 19.643 Qualification requirements.
                 (a) General. Before beginning the business of manufacturing vinegar
                by the vaporizing process, a person must make written application to
                the appropriate TTB officer and receive approval of the application
                from TTB. The application must include:
                 (1) The applicant's name and principal business address (including
                the plant address if different from the applicant's principal business
                address);
                 (2) A description of the plant premises;
                 (3) A description of the operations to be conducted; and
                 (4) A description of each still, including the name and address of
                the owner, the kind of still and its capacity, and the purpose for
                which the still was set up.
                 (b) Specifications of plant description. (1) The description
                required by paragraph (a)(2) of this section may be in narrative form
                or diagram form, and must describe or illustrate the following:
                 (i) The overall dimensions of the building(s) housing the vinegar
                plant;
                 (ii) The dimensions of the bonded premises and any general
                premises;
                 (iii) Any internal walls establishing the boundaries of the bonded
                premises and general premises;
                 (iv) The external doors of the plant premises; and
                 (v) Any portions of the plant premises that are outdoors, including
                the location of any outdoor tanks.
                 (2) Photographs further illustrating the elements required under
                paragraph (b)(1) of this section must be submitted upon request of the
                appropriate TTB officer.
                0
                36. Section 19.644 is amended by:
                0
                a. Revising the first sentence; and
                0
                b. Removing the parenthetical authority citation at the end of the
                section.
                 The revision reads as follows:
                Sec. 19.644 Changes after original qualification.
                 If there is any change in the information that was provided in an
                approved application, the proprietor of the vinegar plant must notify
                the appropriate TTB officer in writing within 60 days of the change. *
                * *
                0
                37. Section 19.673 is amended by:
                0
                a. Revising paragraphs (b)(2) and (6);
                0
                b. Redesignating paragraphs (c) through (e) as paragraph (d) through
                (f);
                0
                c. Adding a new paragraph (c); and
                0
                d. Removing the parenthetical authority citation at the end of the
                section.
                 The revisions and addition read as follows:
                Sec. 19.673 Small plant permit applications.
                * * * * *
                 (b) * * *
                 (2) A description of the plant premises;
                * * * * *
                 (6) A certification that the plant's construction and security will
                be in compliance with Sec. Sec. 19.703 and 19.704.
                 (c) Specifications of plant description. (1) The description
                required by paragraph (b)(2) of this section may be in narrative form
                or diagram form, and must describe or illustrate the following:
                 (i) The overall dimensions of the building(s) housing the alcohol
                fuel plant;
                 (ii) The dimensions of the bonded premises and any general
                premises;
                 (iii) Any internal walls establishing the boundaries of the bonded
                and general premises;
                 (iv) The external doors of the plant premises; and
                 (v) Any portions of the plant premises that are outdoors, including
                the location of any outdoor tanks.
                 (2) Photographs further illustrating the elements required under
                paragraph (c)(1) of this section must be submitted upon request of the
                appropriate TTB officer.
                * * * * *
                0
                38. Section 19.675 is amended by:
                0
                a. Revising paragraphs (b)(2), (6), and (8);
                0
                b. Redesignating paragraphs (c) through (f) as paragraphs (d) through
                (g);
                0
                c. Adding a new paragraph (c); and
                0
                d. Removing the parenthetical authority citation at the end of the
                section.
                 The revisions and addition read as follows:
                Sec. 19.675 Medium plant permit applications.
                * * * * *
                 (b) * * *
                 (2) A description of the plant premises;
                * * * * *
                 (6) A certification that the plant's construction and security will
                be in compliance with Sec. Sec. 19.703 and 19.704;
                * * * * *
                 (8) Information identifying the principal persons involved in the
                management of the business. This identifying information must include
                each person's name, address, and title;
                * * * * *
                 (c) Specifications of plant description. (1) The description
                required by paragraph (b)(2) of this section may be in narrative form
                or diagram form, and must describe or illustrate the following:
                 (i) The overall dimensions of the building(s) housing the alcohol
                fuel plant;
                 (ii) The dimensions of the bonded premises and any general
                premises;
                 (iii) Any internal walls establishing the boundaries of the bonded
                premises and general premises;
                 (iv) The external doors of the plant premises; and
                 (v) Any portions of the plant premises that are outdoors, including
                the location of any outdoor tanks.
                 (2) Photographs further illustrating the elements required under
                paragraph (c)(1) of this section must be submitted upon request of the
                appropriate TTB officer.
                * * * * *
                0
                39. Section 19.676 is amended by:
                0
                a. Revising paragraphs (b)(2), (6), and (8);
                0
                b. Redesignating paragraphs (c) through (g) as paragraph (d) through
                (h);
                0
                c. Adding a new paragraph (c); and
                0
                d. Removing the parenthetical authority citation at the end of the
                section.
                 The revisions and addition read as follows:
                Sec. 19.676 Large plant permit applications.
                * * * * *
                 (b) * * *
                 (2) A description of the plant premises;
                * * * * *
                 (6) A certification that the plant's construction and security will
                be in compliance with Sec. Sec. 19.703 and 19.704;
                * * * * *
                 (8) Information identifying the principal persons involved in the
                management of the business. This identifying information must include
                each person's name, address, and title;
                * * * * *
                 (c) Specifications of plant description. (1) The description
                required by
                [[Page 68589]]
                paragraph (b)(2) of this section may be in narrative form or diagram
                form, and must describe or illustrate the following:
                 (i) The overall dimensions of the building(s) housing the alcohol
                fuel plant;
                 (ii) The dimensions of the bonded premises and any general
                premises;
                 (iii) Any internal walls establishing the boundaries of the bonded
                premises and general premises;
                 (iv) The external doors of the plant premises; and
                 (v) Any portions of the plant premises that are outdoors, including
                the location of any outdoor tanks.
                 (2) Photographs further illustrating the elements required under
                paragraph (c)(1) of this section must be submitted upon request of the
                appropriate TTB officer.
                * * * * *
                0
                40. Section 19.677 is amended by:
                0
                a. Revising paragraphs (a)(2) and (d); and
                0
                b. Removing the parenthetical authority citation at the end of the
                section.
                 The revisions read as follows:
                Sec. 19.677 Large plant applications--organizational documents.
                * * * * *
                 (a) * * *
                 (2) A list of officers and directors with their names and
                addresses;
                * * * * *
                 (d) Statement of interest--(1) Sole proprietorships and general
                partnerships. In the case of an individual owner or a general
                partnership, the applicant must provide the name and address of each
                person having an ownership interest in the business and a statement
                indicating whether the interest appears in the name of the interested
                person or in the name of another person.
                 (2) Limited liability entities. In the case of a corporation,
                limited liability partnership, limited liability company, or other
                legal entity in which some or all of the owners have limited personal
                liability for the activities of the entity, the applicant must provide
                the following information about persons having an ownership interest in
                the business:
                 (i) The names and addresses of persons having a 10 percent or more
                ownership interest in each of the classes or types of ownership
                interests in the applicant, and the nature and amount of ownership
                interest of each person.
                 (ii) The name of the person in whose name the interest appears. If
                the limited liability entity is under actual or legal control of
                another limited liability entity, the appropriate TTB officer may
                request the same information regarding ownership for the parent limited
                liability entity.
                 (3) Representative. If any interested person named under paragraphs
                (d)(1) and (2) of this section is a legal entity other than an
                individual, the applicant must also provide the name, title, and city
                and state of residence of a representative individual for the entity.
                The representative individual must be the individual designated by the
                entity to represent the entity's interest in the applicant business or,
                in the absence of a designated individual, an owner, chief officer or
                manager, or person with similar authority within the entity.
                * * * * *
                0
                41. Section 19.678 is amended by:
                0
                a. Revising paragraph (a); and
                0
                b. Removing the parenthetical authority citation at the end of the
                section.
                 The revision reads as follows:
                Sec. 19.678 Criteria for issuance of permit.
                * * * * *
                 (a) The applicant (including, in the case of a limited liability
                entity, any of its officers, directors, or persons holding a 10 percent
                or more ownership interest in any of the classes or types of ownership
                of the applicant) is, by reason of business experience, financial
                standing, or trade connections, not likely to maintain operations in
                compliance with 26 U.S.C. chapter 51, or the regulations in this
                chapter;
                * * * * *
                Sec. 19.683 [Amended]
                0
                42. Section 19.683 is amended by:
                0
                a. Removing the phrase ``30 days'' each place it appears and adding in
                its place ``60 days''; and
                0
                b. Removing the parenthetical authority citation at the end of the
                section.
                0
                43. Section 19.684 is amended by:
                0
                a. Revising paragraph (b); and
                0
                b. Removing the parenthetical authority citation at the end of the
                section.
                 The revision reads as follows:
                Sec. 19.684 Automatic termination of permits.
                * * * * *
                 (b) Limited liability entities. In the case of a limited liability
                entity (i.e., a corporation, limited liability partnership, limited
                liability company, or other legal entity in which some or all of the
                owners have limited personal liability for the activities of the
                entity) holding a permit issued under this subpart, if actual or legal
                control of such limited liability entity changes, directly or
                indirectly, whether by reason of a change in ownership or control (in
                the permittee limited liability entity or any other limited liability
                entity), by operation of law, or in any other manner, the permittee
                must file an application for a new permit within 60 days of the change.
                If an application for a new permit is not filed within 60 days of the
                change, the outstanding permit will automatically terminate. If an
                application for a new permit is filed within the 60-day period
                prescribed in the preceding sentences, the outstanding permit will
                remain in effect until TTB takes final action on the application. When
                TTB takes final action on the application, the outstanding permit will
                automatically terminate.
                Sec. 19.686 [Amended]
                0
                44. Section 19.686 is amended by:
                0
                a. Removing the phrase ``30 days'' and adding in its place ``60 days''
                in the first sentence; and
                0
                b. Removing the parenthetical authority citation at the end of the
                section.
                0
                45. Section 19.687 is revised to read as follows:
                Sec. 19.687 Changes in officers, directors, members, managers, or
                principal persons.
                 If there is a change in the list of officers, directors, members,
                managers, or other principal persons furnished under the provisions of
                Sec. 19.675, Sec. 19.676, or Sec. 19.677, the proprietor must submit
                a letterhead notice to the appropriate TTB officer within 60 days of
                the change. The letterhead notice must identify each change and must
                include the identifying information for each new officer, director,
                member, manager, or other principal person required by Sec. 19.675,
                Sec. 19.676, or Sec. 19.677.
                Sec. 19.691 [Amended]
                0
                46. Section 19.691 is amended by:
                0
                a. Removing the phrase ``30 days'' and adding in its place ``60 days'';
                and
                0
                b. Removing the parenthetical authority citation at the end of the
                section.
                0
                47. Section 19.692 is amended by:
                0
                a. Revising paragraph (b)(2); and
                0
                b. Removing the parenthetical authority citation at the end of the
                section.
                 The revision reads as follows:
                Sec. 19.692 Qualifying for alternating proprietorship.
                * * * * *
                 (b) * * *
                 (2) Additional versions of the description required under Sec.
                19.673(b)(2), Sec. 19.675(b)(2), or Sec. 19.676(b)(2) describing or
                illustrating the arrangement for the alternation of
                [[Page 68590]]
                the premises. Where operations by alternating proprietors are limited
                to parts of an alcohol fuel plant, the description or illustration must
                include the areas, rooms, or buildings, or combination of rooms and/or
                buildings, that will alternate between proprietors. The description or
                illustration must also include the means by which the alternated
                premises will be separated from any premises that will not be
                alternated. A description or illustration must be submitted for each
                arrangement under which the premises will be operated;
                * * * * *
                Sec. 19.761 [Amended]
                0
                48. Section 19.761 is amended by removing the entries for Sec. Sec.
                19.76, 19.77, 19.121, 19.122, and 19.123 from the table in paragraph
                (b).
                PART 20--DISTRIBUTION AND USE OF DENATURED ALCOHOL AND RUM
                0
                49. The authority citation for part 20 continues to read as follows:
                 Authority: 26 U.S.C. 5001, 5206, 5214, 5271-5275, 5311, 5552,
                5555, 5607, 6065, 7805.
                Sec. 20.42 [Amended]
                0
                50. Section 20.42 is amended by removing the phrase ``serial number,''
                in paragraph (a)(8).
                0
                51. Section 20.45 is amended by revising paragraph (c) to read as
                follows:
                Sec. 20.45 Organizational documents.
                * * * * *
                 (c) Statement of interest--(1) Sole proprietorships and general
                partnerships. In the case of an individual owner or a general
                partnership, the applicant must provide the name and address of each
                person having an ownership interest in the business and a statement
                indicating whether the interest appears in the name of the interested
                person or in the name of another person.
                 (2) Limited liability entities. In the case of a corporation,
                limited liability partnership, limited liability company, or other
                legal entity in which some or all of the owners have limited personal
                liability for the activities of the entity, the applicant must provide
                the following information about persons having an interest in the
                business:
                 (i) The names and addresses of persons having a 10 percent or more
                ownership interest in each of the classes or types of ownership
                interest of the applicant, and the nature and amount of ownership
                interest of each person.
                 (ii) The name of the person in whose name the interest appears. If
                the limited liability entity is under actual or legal control of
                another limited liability entity, the appropriate TTB officer may
                request the same information regarding ownership for the parent limited
                liability entity.
                 (3) Representative. If any interested person named under paragraphs
                (c)(1) and (2) of this section is a legal entity other than an
                individual, the applicant must also provide the name, title, and city
                and state of residence of a representative individual for the entity.
                The representative individual must be the individual designated by the
                entity to represent the entity's interest in the applicant business or,
                in the absence of a designated individual, an owner, chief officer or
                manager, or person with similar authority within the entity.
                0
                52. Section 20.56 is amended by:
                0
                a. Removing the phrase ``30 days'' and adding in its place ``60 days''
                in paragraph (a)(1); and
                0
                b. Revising paragraphs (c) heading and (c)(3).
                 The revisions read as follows:
                Sec. 20.56 Changes affecting applications and permits.
                * * * * *
                 (c) Changes in officers, directors, and ownership interests. * * *
                 (3) Ownership interests. In lieu of reporting all changes, within
                60 days, to the list of persons with an ownership interest furnished
                under the provisions of Sec. 20.45(c), a permittee may, upon filing
                written notice to the appropriate TTB officer and establishing a
                reporting date, file an annual notice of changes. The notice of changes
                in ownership interest holders does not apply if the sale or transfer of
                ownership interest(s) results in a change in ownership or control which
                is required to be reported under Sec. 20.57.
                * * * * *
                0
                53. Section 20.57 is amended by revising paragraph (b) to read as
                follows:
                Sec. 20.57 Automatic termination of permits.
                * * * * *
                 (b) Limited liability entities. In the case of a limited liability
                entity (i.e., a corporation, limited liability partnership, limited
                liability company, or other legal entity in which some or all of the
                owners have limited personal liability for the activities of the
                entity) holding a permit issued under this part, if actual or legal
                control of such limited liability entity changes, directly or
                indirectly, whether by reason of a change in ownership or control (in
                the permittee limited liability entity or any other limited liability
                entity), by operation of law, or in any other manner, the permittee
                must file an application for a new permit within 60 days of the change.
                If an application for a new permit is not filed within 60 days of the
                change, the outstanding permit will automatically terminate. If an
                application for a new permit is filed within the 60-day period
                prescribed above, the outstanding permit will remain in effect until
                TTB takes final action on the application. When TTB takes final action
                on the application, the outstanding permit will automatically
                terminate.
                * * * * *
                0
                54. Section 20.61 is revised to read as follows:
                Sec. 20.61 Change in trade name.
                 In the event of any change in a trade name of a permittee, or, in
                the event a permittee desires to engage in operations under an
                additional trade name, the permittee must first file a letterhead
                notice with the appropriate TTB officer listing the names and the
                offices where they are registered.
                (Approved by the Office of Management and Budget under control
                number 1513-0061)
                0
                55. Section 20.267 is amended by revising the section heading and
                paragraphs (b) and (c) to read as follows:
                Sec. 20.267 Filing and retention of records.
                * * * * *
                 (b) File all records and copies of reports at the premises where
                the operations are conducted. A permittee may keep the required records
                at a location other than the permitted premises, if he or she has first
                provided a letterhead notice to the appropriate TTB officer identifying
                the location where the records are to be kept.
                 (c) Make the files of records and copies of reports available for
                inspection by the appropriate TTB officer during regular business
                hours. Any permittee keeping records at a location other than the
                premises where operations are conducted must make them available at
                such premises upon request of the appropriate TTB officer; however, the
                TTB officer may, at his or her discretion, allow the permittee to
                supply copies (including electronic copies) of such records instead of
                the originals.
                PART 22--DISTRIBUTION AND USE OF TAX-FREE ALCOHOL
                0
                56. The authority citation for part 22 continues to read as follows:
                 Authority: 26 U.S.C. 5001, 5121, 5123, 5206, 5214, 5271-5275,
                5311, 5552, 5555, 6056, 6061, 6065, 6109, 6151, 6806, 7805; 31
                U.S.C. 9304, 9306.
                [[Page 68591]]
                Sec. 22.42 [Amended]
                0
                57. Section 22.42 is amended by removing the phrase ``serial number,''
                in paragraph (a)(8).
                0
                58. Section 22.45 is amended by revising paragraph (c) to read as
                follows:
                Sec. 22.45 Organizational documents.
                * * * * *
                 (c) Statement of interest--(1) Sole proprietorships and general
                partnerships. In the case of an individual owner or a general
                partnership, the applicant must provide the name and address of each
                person having an ownership interest in the business and a statement
                indicating whether the interest appears in the name of the interested
                person or in the name of another person.
                 (2) Limited liability entities. In the case of a corporation,
                limited liability partnership, limited liability company, or other
                legal entity in which some or all of the owners have limited personal
                liability for the activities of the entity, the applicant must provide
                the following information about persons having an interest in the
                business:
                 (i) The names and addresses of persons having a 10 percent or more
                ownership interest in each of the classes or types of ownership
                interest of the applicant, and the nature and amount of ownership
                interest of each person.
                 (ii) The name of the person in whose name the interest appears. If
                the limited liability entity is under actual or legal control of
                another limited liability entity, the appropriate TTB officer may
                request the same information regarding ownership for the parent limited
                liability entity.
                 (3) Representative. If any interested person named under paragraphs
                (c)(1) and (2) of this section is a legal entity other than an
                individual, the applicant must also provide the name, title, and city
                and state of residence of a representative individual for the entity.
                The representative individual must be the individual designated by the
                entity to represent the entity's interest in the applicant business or,
                in the absence of a designated individual, an owner, chief officer or
                manager, or person with similar authority within the entity.
                0
                59. Section 22.57 is amended by:
                0
                a. Removing the phrase ``30 days'' and adding in its place ``60 days''
                each place it appears in paragraph (a)(1).
                0
                b. Revising paragraphs (c) heading and (c)(3).
                 The revisions read as follows:
                Sec. 22.57 Changes affecting applications and permits.
                * * * * *
                 (c) Changes in officers, directors, and ownership interests. * * *
                 (3) Ownership interests. In lieu of reporting all changes, within
                60 days, to the list of persons with an ownership interest furnished
                under the provisions of Sec. 22.45(c), a permittee may, upon filing
                written notice to the appropriate TTB officer and establishing a
                reporting date, file an annual notice of changes. The notice of changes
                in ownership interest holders does not apply if the sale or transfer of
                ownership interest(s) results in a change in ownership or control which
                is required to be reported under Sec. 22.58.
                * * * * *
                0
                60. Section 22.58 is amended by revising paragraph (b) and the
                parenthetical Office of Management and Budget control number statement
                to read as follows:
                Sec. 22.58 Automatic termination of permits.
                * * * * *
                 (b) Limited liability entities. In the case of a limited liability
                entity (i.e., a corporation, limited liability partnership, limited
                liability company, or other legal entity in which some or all of the
                owners have limited personal liability for the activities of the
                entity) holding a permit issued under this part, if actual or legal
                control of such limited liability entity changes, directly or
                indirectly, whether by reason of a change in ownership or control (in
                the permittee limited liability entity or any other limited liability
                entity), by operation of law, or in any other manner, the permittee
                must file an application for a new permit within 60 days of the change.
                If an application for a new permit is not filed within 60 days of the
                change, the outstanding permit will automatically terminate. If an
                application for a new permit is filed within the 60-day period
                prescribed above, the outstanding permit will remain in effect until
                TTB takes final action on the application. When TTB takes final action
                on the application, the outstanding permit will automatically
                terminate.
                * * * * *
                (Approved by the Office of Management and Budget under control
                number 1513-0060)
                0
                61. Section 22.62 is revised to read as follows:
                Sec. 22.62 Change in trade name.
                 In the event of any change in a trade name of a permittee, or, in
                the event a permittee desires to engage in operations under an
                additional trade name, the permittee must first file a letterhead
                notice with the appropriate TTB officer listing the new names and the
                offices where they are registered.
                (Approved by the Office of Management and Budget under control
                number 1513-0060)
                0
                62. Section 22.164 is amended by revising paragraph (b) and adding
                paragraph (c) to read as follows:
                Sec. 22.164 Filing and retention of records.
                * * * * *
                 (b) Maintain all records at the permitted premises. A permittee may
                keep the required records at a location other than the permitted
                premises, if he or she has first provided a letterhead notice to the
                appropriate TTB officer identifying the location where the records are
                to be kept.
                 (c) Make the files of records and copies of claims available for
                inspection by the appropriate TTB officer during regular business
                hours. Any permittee keeping records at a location other than the
                permitted premises must make them available at the permitted premises
                upon request of the appropriate TTB officer; however, the TTB officer
                may, at his or her discretion, allow the permittee to supply copies
                (including electronic copies) of such records instead of the originals.
                PART 26--LIQUORS AND ARTICLES FROM PUERTO RICO AND THE VIRGIN
                ISLANDS
                0
                63. The authority citation for part 26 continues to read as follows:
                 Authority: 19 U.S.C. 81c; 26 U.S.C. 5001, 5007, 5008, 5010,
                5041, 5051, 5061, 5111-5114, 5121, 5122-5124, 5131-5132, 5207, 5232,
                5271, 5275, 5301, 5314, 5555, 6001, 6109, 6301, 6302, 6804, 7101,
                7102, 7651, 7652, 7805; 27 U.S.C. 203, 205; 31 U.S.C. 9301, 9303,
                9304, 9306.
                0
                64. Section 26.174 is amended by revising paragraphs (a) and (e) and
                the parenthetical Office of Management and Budget control number
                statement to read as follows:
                Sec. 26.174 Records.
                 (a) General. Every person intending to file a claim for drawback on
                eligible articles brought into the United States from Puerto Rico must
                keep permanent records of the data elements required by this section.
                * * * * *
                 (e) Retention and availability of records. (1) Each drawback
                claimant must retain for a period of not less than three years all
                records required by this subpart, all commercial invoices or shipping
                documents, and all bills of lading received evidencing receipt and tax
                determination of the spirits. In addition, a copy of each approved
                formula returned to the manufacturer of eligible articles must be
                retained for not less than three years from the date the
                [[Page 68592]]
                claimant files their last claim for drawback under the formula.
                 (2) The records required under this subpart must be maintained at
                the business premises for which the claim is filed, or at any other
                location provided that the claimant first provides a letterhead notice
                to the appropriate TTB officer of the location where the records are to
                be kept. Records must be available for inspection by any appropriate
                TTB officer during business hours. If the records are stored at a
                location other than the business premises for which the claim is filed,
                they must be made available at such premises upon request of the
                appropriate TTB officer; however, the TTB officer may, at his or her
                discretion, allow copies (including electronic copies) of such records
                to be provided instead of the originals.
                (Approved by the Office of Management and Budget under control
                number 1513-0089)
                0
                65. Section 26.275 is amended by:
                0
                a. Revising paragraph (a); and
                0
                b. Removing the parenthetical authority citation at the end of the
                section.
                 The revision reads as follows:
                Sec. 26.275 Filing.
                 (a) All records and reports required by this part will be
                maintained separately, by transaction or reporting date, at the
                importer's place of business. An importer may keep the required records
                and reports at an alternative location other than his or her place of
                business, if he or she has first provided a letterhead notice to the
                appropriate TTB officer identifying the location where the records are
                to be kept. Any importer keeping records at a location other than the
                importer's place of business must make them available at the importer's
                place of business upon request of the appropriate TTB officer; however,
                the TTB officer may, at his or her discretion, allow the importer to
                supply copies (including electronic copies) of such records instead of
                the originals. The appropriate TTB officer may require an importer to
                maintain the required records and reports at his or her place of
                business if the alternative location is found to cause undue
                inconvenience to appropriate TTB or Customs officers desiring to
                examine the files or cause delay in the timely submission of documents.
                * * * * *
                0
                66. Section 26.310 is amended by revising paragraphs (a) and (e) and
                the parenthetical Office of Management and Budget control number
                statement to read as follows:
                Sec. 26.310 Records.
                 (a) General. Every person intending to file claim for drawback on
                eligible articles brought into the United States from the Virgin
                Islands must keep permanent records of the data elements required by
                this section.
                * * * * *
                 (e) Retention and availability of records. (1) Each drawback
                claimant must retain for a period of not less than three years all
                records required by this subpart, all commercial invoices or shipping
                documents, and all bills of lading received evidencing receipt and tax
                determination of the spirits. In addition, a copy of each approved
                formula returned to the manufacturer of eligible articles must be
                retained for not less than three years from the date the claimant files
                their last claim for drawback under the formula.
                 (2) The records required under this subpart must be maintained at
                the business premises for which the claim is filed, or at any other
                location provided that the claimant first provides a letterhead notice
                to the appropriate TTB officer of the location where the records are to
                be kept. Records must be available for inspection by any appropriate
                TTB officer during business hours. If the records are stored at a
                location other than the business premises for which the claim is filed,
                they must be made available at such premises upon request of the
                appropriate TTB officer; however, the TTB officer may, at his or her
                discretion, allow copies (including electronic copies) of such records
                to be provided instead of the originals.
                (Approved by the Office of Management and Budget under control
                number 1513-0089)
                PART 27--IMPORTATION OF DISTILLED SPIRITS, WINES, AND BEER
                0
                67. The authority citation for part 27 continues to read as follows:
                 Authority: 5 U.S.C. 552(a), 19 U.S.C. 81c, 1202; 26 U.S.C. 5001,
                5007, 5008, 5010, 5041, 5051, 5054, 5061, 5121, 5122-5124, 5201,
                5205, 5207, 5232, 5273, 5301, 5313, 5382, 5555, 6109, 6302, 7805.
                0
                68. Section 27.136 is amended by:
                0
                a. Revising paragraph (a) and the parenthetical Office of Management
                and Budget control number statement; and
                0
                b. Removing the parenthetical authority citation at the end of the
                section.
                 The revisions read as follows:
                Sec. 27.136 Filing.
                 (a) All records and reports required by this part will be
                maintained separately, by transaction or reporting date, at the
                importer's place of business. An importer may keep the required records
                and reports at an alternative location other than his or her place of
                business, if he or she has first provided a letterhead notice to the
                appropriate TTB officer identifying the location where the records are
                to be kept. Any importer keeping records at a location other than the
                importer's place of business must make them available at the importer's
                place of business upon request of the appropriate TTB officer; however,
                the TTB officer may, at his or her discretion, allow the importer to
                supply copies (including electronic copies) of such records instead of
                the originals. The appropriate TTB officer may require an importer to
                maintain the required records and reports at his or her place of
                business if the alternative location is found to cause undue
                inconvenience to appropriate TTB or Customs officers desiring to
                examine the files or cause delay in the timely submission of documents.
                * * * * *
                (Approved by the Office of Management and Budget under control
                number 1513-0088)
                PART 28--EXPORTATION OF ALCOHOL
                0
                69. The authority citation for part 28 continues to read as follows:
                 Authority: 5 U.S.C. 552(a); 19 U.S.C. 81c, 1202; 26 U.S.C. 5001,
                5007, 5008, 5041, 5051, 5054, 5061, 5121, 5122, 5201, 5205, 5207,
                5232, 5273, 5301, 5313, 5555, 6109, 6302, 7805; 27 U.S.C. 203, 205;
                44 U.S.C. 3504(h).
                0
                70. Section 28.45 is revised to read as follows:
                Sec. 28.45 Retention of records.
                 File copies of forms required by this part to be retained by any
                proprietor or claimant, and all records, documents, or copies of
                records and documents supporting such forms, must be preserved by such
                proprietor or claimant for a period of not less than two years, and
                during such period must be available for inspection by any appropriate
                TTB officer at the proprietor or claimant's place of business. A
                proprietor or claimant may keep the required records at a location
                other than his or her place of business if he or she has first provided
                a letterhead notice to the appropriate TTB officer identifying the
                location where the records are to be kept. The proprietor or claimant
                must nonetheless make the records available at the permitted premises
                upon request of the appropriate TTB officer; however, the TTB officer
                may, at his or her discretion, allow the proprietor or claimant to
                supply copies (including
                [[Page 68593]]
                electronic copies) of such records instead of the originals.
                (Approved by the Office of Management and Budget under control
                number 1513-0075)
                PART 31--ALCOHOL BEVERAGE DEALERS
                0
                71. The authority citation for part 31 continues to read as follows:
                 Authority: 26 U.S.C. 5001, 5002, 5121, 5122-5124, 5131, 5132,
                5206, 5207, 5273, 5301, 5352, 5555, 5603, 5613, 5681, 5687, 6061,
                6065, 6071, 6091, 6103, 6109, 6723, 6724, 7805.
                0
                72. Section 31.114 is amended by:
                0
                a. Removing the word ``true'' and adding in its place ``legal'' in
                paragraph (b)(1);
                0
                b. Revising paragraph (b)(8); and
                0
                c. Removing the parenthetical authority citation at the end of the
                section.
                 The revision reads as follows:
                Sec. 31.114 Completion of registration form.
                * * * * *
                 (b) * * *
                 (8) Ownership and control information. This consists of the name,
                position, and residence address of every owner of the business and of
                every person having power to control its management and policies with
                respect to the activity subject to registration. ``Owner of the
                business'' includes every partner if the dealer is a partnership and,
                in the case of a limited liability entity, any of its officers,
                directors, or persons holding a 10 percent or more ownership interest
                in any of the classes or types of ownership of the applicant. However,
                the ownership and control information required by this paragraph (b)(8)
                need not be stated if the same information has been previously provided
                to TTB and that previously provided information is still current.
                * * * * *
                0
                73. Section 31.132 is revised to read as follows:
                Sec. 31.132 Change in name.
                 (a) Legal name. In the event of any change in the name of the
                individual, firm, corporation, or other entity registered as a dealer
                at a given location, the dealer must complete an amended registration
                and submit it on or before the next July 1.
                 (b) Trade name. In the event of any change in a trade name of a
                dealer registered at a given location, or in the event a dealer desires
                to engage in operations under an additional trade name at a given
                location, the dealer must first file a letterhead notice with the
                appropriate TTB officer listing the new names and the offices where
                they are registered.
                Sec. 31.138 [Amended]
                0
                74. Section 31.138 is amended by removing the phrase ``30 days'' and
                adding ``60 days'' in its place.
                0
                75. Section 31.152 is revised to read as follows:
                Sec. 31.152 Requirements as to wines and beer.
                 (a) General. Every wholesale dealer in liquors who receives wines,
                or wines and beer, and every wholesale dealer in beer must keep a
                complete record showing the quantities of wine and beer received, from
                whom the wine and beer were received, and the dates of receipt. This
                record, which must be kept for a period of not less than three years as
                prescribed in Sec. 31.191, must consist of all purchase invoices or
                bills covering wines and beer received or, at the option of the dealer,
                a book record containing all of the required information. Wholesale
                dealers are not required to prepare or submit reports to the
                appropriate TTB officer of transactions relating to wines and beer.
                 (b) Availability of records. The records required under this
                subpart must be kept at the dealer's place of business. A dealer may
                keep the required records at a location other than his or her place of
                business premises, if he or she has first provided a letterhead notice
                to the appropriate TTB officer identifying the location where the
                records are to be kept. The dealer must make the files of records and
                copies of reports available for inspection by the appropriate TTB
                officer during regular business hours. Any dealer keeping records at a
                location other than his or her place of business must make them
                available at the his or her place of business upon request of the
                appropriate TTB officer; however, the TTB officer may, at his or her
                discretion, allow the dealer to supply copies (including electronic
                copies) of such records instead of the originals.
                (Approved by the Office of Management and Budget under control
                number 1513-0065.)
                0
                76. Section 31.172 is revised to read as follows:
                Sec. 31.172 Place of filing.
                 Records of receipt and disposition and monthly summary reports
                required by Sec. Sec. 31.155, 31.156, and 31.160 must be maintained at
                the dealer's place of business. A dealer may keep the required records
                at a location other than his or her place of business premises, if he
                or she has first provided a letterhead notice to the appropriate TTB
                officer identifying the location where the records are to be kept. Any
                dealer keeping records at a location other than his or her place of
                business must make them available at his or her place of business upon
                request of the appropriate TTB officer; however, the TTB officer may,
                at his or her discretion, allow the dealer to supply copies (including
                electronic copies) of such records instead of the originals.
                0
                77. Section 31.181 is amended by:
                0
                a. Revising paragraph (a); and
                0
                b. Removing the parenthetical authority citation at the end of the
                section.
                 The revision reads as follows:
                Sec. 31.181 Requirements for retail dealers.
                 (a) Records of receipt. All retail dealers must keep at their place
                of business complete records showing the quantities of all distilled
                spirits, wines, and beer received, from whom the distilled spirits,
                wines, and beer were received, and the dates of receipt. Records of
                receipts must consist of all purchase invoices or bills covering
                distilled spirits, wines, and beer received, or, at the option of the
                retail dealer, a book record containing all of the required
                information. A retail dealer may keep the required records at a
                location other than his or her place of business premises, if he or she
                has first provided a letterhead notice to the appropriate TTB officer
                identifying the location where the records are to be kept. Any retailer
                dealer keeping records at a location other than his or her place of
                business must make them available at the his or her place of business
                upon request of the appropriate TTB officer; however, the TTB officer
                may, at his or her discretion, allow the dealer to supply copies
                (including electronic copies) of such records instead of the originals.
                * * * * *
                 Signed: November 19, 2021.
                Mary G. Ryan,
                Administrator.
                 Approved: November 19, 2021.
                Timothy E. Skud,
                Deputy Assistant Secretary, Tax, Trade and Tariff Policy.
                [FR Doc. 2021-25721 Filed 12-2-21; 8:45 am]
                BILLING CODE 4810-31-P
                

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT