[Federal Register Volume 61, Number 206 (Wednesday, October 23, 1996)]
[Rules and Regulations]
[Pages 54935-54936]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-27083]
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DEPARTMENT OF THE TREASURY
27 CFR Part 16
[T.D. ATF-385]
RIN 1512-AB62
Implementation of the Debt Collection Improvement Act of 1996
(Public Law 104-134) With Respect to the Civil Penalties Provision of
the Alcoholic Beverage Labeling Act of 1988 (96R-023P)
AGENCY: Bureau of Alcohol, Tobacco and Firearms (ATF), Department of
the Treasury.
ACTION: Final rule, Treasury decision.
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SUMMARY: This final rule implements the provisions of the Debt
Collection Improvement Act of 1996 with respect to the civil penalties
provision of the Alcoholic Beverage Labeling Act of 1988 (ABLA). This
regulation implements the statute by increasing the maximum civil
monetary penalty from $10,000 to $11,000 for violations of the
provisions of the ABLA.
EFFECTIVE DATE: The effective date of this final rule is October 23,
1996.
FOR FURTHER INFORMATION CONTACT: James P. Ficaretta, Wine, Beer and
Spirits Regulations Branch, Bureau of Alcohol, Tobacco and Firearms,
650 Massachusetts Avenue, NW., Washington, DC 20226 (202-927-8230).
SUPPLEMENTARY INFORMATION:
Background
Debt Collection Improvement Act of 1996
The Debt Collection Improvement Act of 1996 (Pub. L. 104-134,
Sec. 31001(s), 110 Stat. 1321-358, 1321-373), enacted on April 26,
1996, amended the Federal Civil Penalties Inflation Adjustment Act of
1990 (Pub. L. 101-410, 104 Stat. 890, hereinafter ``the Act''), 28
U.S.C. 2461 note, by requiring the inflation adjustment of civil
monetary penalties. A ``civil monetary penalty'' is defined in the Act
as any penalty, fine or other such sanction that (1) is for a specific
monetary amount as provided by Federal law, or has a maximum amount
provided for by Federal law; (2) is assessed or enforced by an agency
pursuant to Federal law; and, (3) is assessed or enforced pursuant to
an administrative proceeding or a civil action in the Federal courts.
The purpose of the law is to provide more effective tools for
collections of delinquent debts owed to the Government.
The amendment to the Act requires that the head of each Federal
agency shall, not later than 180 days after the date of enactment of
the Debt Collection Improvement Act of 1996, and at least once every 4
years thereafter, adjust each civil monetary penalty provided by law
within the jurisdiction of the respective agency by the inflation
adjustment described under section 5 of the Act. The adjustment of the
civil monetary penalty must be done by regulation and published in the
Federal Register. The first inflation adjustment is required by October
23, 1996, 180 days after the date of enactment of the Debt Collection
Improvement Act of 1996.
Any increase in a civil monetary penalty made pursuant to the
amendment will apply only to violations which occur after the date the
increase takes effect. The amendment also provides that the first
adjustment of a penalty made pursuant to the amendment may not exceed
10 percent of such penalty.
Certain civil monetary penalties are excluded from the mandatory
inflation adjustment. The statute specifically provides that the
inflation adjustment does not apply to penalties under the Internal
Revenue Code of 1986, the Tariff Act of 1930, the Occupational Safety
and Health Act of 1970, and the Social Security Act. Most of the civil
monetary penalties administered by ATF are imposed by the Internal
Revenue Code of 1986, and are thus not subject to the inflation
adjustment mandated by the Act. Accordingly, the only civil monetary
penalty enforced by ATF which is subject to the inflation adjustment is
the civil monetary penalty imposed by the Alcoholic Beverage Labeling
Act (ABLA), 27 U.S.C. 218.
Alcoholic Beverage Labeling Act
On November 18, 1988, the Alcoholic Beverage Labeling Act of 1988,
Title VIII of the Anti-Drug Abuse Act of 1988, was enacted. The law
requires that the following health warning statement appear on the
labels of all containers of alcoholic beverages sold or distributed in
the United States, as well as on containers of alcoholic beverages that
are sold, distributed, or shipped to members or units of the U.S. Armed
Forces, including those located outside the United States:
Government Warning: (1) According to the Surgeon General, women
should not drink alcoholic beverages during pregnancy because of the
risk of birth defects. (2) Consumption of alcoholic beverages
impairs your ability to drive a car or operate machinery, and may
cause health problems.
See 27 U.S.C. 215. The health warning statement requirement applies to
alcoholic beverages bottled on or after November 18, 1989.
Section 207 of the ABLA, 27 U.S.C. 218, provides that any person
who violates the provisions of the ABLA is subject to a civil penalty
of not more than $10,000, with each day constituting a separate
offense.
Civil Monetary Penalty Inflation Adjustment for Non-Compliance With the
ABLA
The Act provides that the inflation adjustment will be determined
by increasing the maximum civil monetary penalty by the cost-of-living
adjustment. The ``cost-of-living'' adjustment is the percentage by
which the consumer price index for all-urban consumers (CPI) for the
month of June of the calendar year preceding the adjustment exceeds the
CPI for the month of June of the calendar year in which the amount of
such civil monetary penalty was last set or adjusted pursuant to law.
Any increase determined under section 5 of the Act must be rounded in
accordance with the provisions of that section, which provides that for
penalties less than or equal to $10,000, the increase shall be rounded
to the nearest multiple of $1,000.
Since the ABLA was enacted in 1988, the inflation adjustment is
achieved by calculating the percentage by which the CPI for June of
1995 (456.7) exceeds the CPI for June of 1988 (353.5). This results in
an inflation factor of approximately 1.29. Thus, the maximum penalty
amount after increase and rounding would be $13,000. However, the Debt
Collection Improvement Act of 1996 provides that the first adjustment
of a civil monetary penalty may not exceed 10 percent of such penalty.
Accordingly, the regulations in Part 16 are amended to provide that the
maximum penalty amount for violations of the ABLA is $11,000
($10,000 x 10%=$1,000; $10,000 x $1,000=$11,000).
The regulations in 27 CFR Part 16 implement the statutory
requirement for a health warning statement under the ABLA; however, the
current regulations do not specifically reference the penalty imposed
by 27 U.S.C. 218. ATF is accordingly amending the regulations to
include a new section 16.33 which will set forth the $10,000 penalty
imposed by the ABLA. The new regulation will
[[Page 54936]]
also explain that this civil penalty shall be periodically adjusted for
inflation in accordance with the provisions of the Federal Civil
Penalties Inflation Adjustment Act of 1990. Finally, the regulation
shall state that for violations occurring after October 23, 1996, the
civil penalty shall be not more than $11,000 for each offense.
Executive Order 12866
It has been determined that this final rule is not a significant
regulatory action as defined in E.O. 12866, because any economic
effects flow directly from the underlying statute and not from this
final rule. Therefore, a regulatory assessment is not required.
Administrative Procedure Act
Because this document merely implements the law and because
immediate guidance is necessary to implement the provisions of the law,
it is found to be impracticable to issue this Treasury decision with
notice and public procedure under 5 U.S.C. 553(b), or subject to the
effective date limitation in section 553(d).
Regulatory Flexibility Act
The provisions of the Regulatory Flexibility Act relating to an
initial and final regulatory flexibility analysis (5 U.S.C. 603, 604)
are not applicable to this final rule because the agency was not
required to publish a notice of proposed rulemaking under 5 U.S.C. 553
or any other law. Accordingly, a regulatory flexibility analysis is not
required.
Paperwork Reduction Act
The provisions of the Paperwork Reduction Act of 1995, Pub. L. 104-
13, 44 U.S.C. Chapter 35, and its implementing regulations, 5 CFR Part
1320, do not apply to this final rule because no requirement to collect
information is imposed.
Drafting Information
The author of this document is James P. Ficaretta, Wine, Beer and
Spirits Regulations Branch, Bureau of Alcohol, Tobacco and Firearms.
List of Subjects in 27 CFR Part 16
Beer, Consumer protection, Customs duties and inspection, Health,
Imports, Labeling, Liquors, Packaging and containers, Safety, and Wine.
Authority and Issuance
27 CFR Part 16--ALCOHOLIC BEVERAGE HEALTH WARNING STATEMENT is
amended as follows:
Paragraph 1. The authority citation for 27 CFR Part 16 is revised
to read as follows:
Authority: 27 U.S.C. 205, 215, 218; 28 U.S.C. 2461 note.
Par. 2. Section 16.33 is added to Subpart D to read as follows:
Sec. 16.33 Civil penalties.
(a) General. Any person who violates the provisions of this part
shall be subject to a civil penalty of not more than $10,000, and each
day shall constitute a separate offense.
(b) Adjusted penalty for violations occurring after October 23,
1996. Pursuant to the provisions of the Federal Civil Penalties
Inflation Adjustment Act of 1990, as amended, the civil penalty
provided for in paragraph (a) of this section shall be periodically
adjusted in accordance with inflation. Accordingly, for violations
occurring after October 23, 1996, the civil penalty shall be not more
than $11,000.
Signed: September 25, 1996.
John W. Magaw,
Director.
Approved: October 3, 1996.
Timothy E. Skud,
Acting Deputy Assistant Secretary (Regulatory, Tariff and Trade
Enforcement).
[FR Doc. 96-27083 Filed 10-22-96; 8:45 am]
BILLING CODE 4810-31-P
