Rule2023-00594
Civil Monetary Penalty Inflation Adjustment-Alcoholic Beverage Labeling Act
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
January 13, 2023
Effective
January 13, 2023
Issuing agencies
Treasury DepartmentAlcohol and Tobacco Tax and Trade Bureau
Abstract
This document informs the public that the maximum penalty for violations of the Alcoholic Beverage Labeling Act (ABLA) is being adjusted in accordance with the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended. Prior to the publication of this document, any person who violated the provisions of the ABLA was subject to a civil penalty of not more than $22,979, with each day constituting a separate offense. This document announces that this maximum penalty is being increased to $24,759.
Full Text
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<title>Federal Register, Volume 88 Issue 9 (Friday, January 13, 2023)</title>
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[Federal Register Volume 88, Number 9 (Friday, January 13, 2023)]
[Rules and Regulations]
[Pages 2228-2229]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-00594]
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DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau
27 CFR Part 16
[Docket No. TTB-2023-0001; Notice No. 220]
Civil Monetary Penalty Inflation Adjustment--Alcoholic Beverage
Labeling Act
AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.
ACTION: Notification of civil monetary penalty adjustment.
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SUMMARY: This document informs the public that the maximum penalty for
violations of the Alcoholic Beverage Labeling Act (ABLA) is being
adjusted in accordance with the Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended. Prior to the publication of this
document, any person who violated the provisions of the ABLA was
subject to a civil penalty of not more than $22,979, with each day
constituting a separate offense. This document announces that this
maximum penalty is being increased to $24,759.
DATES: The new maximum civil penalty for violations of the ABLA takes
effect on January 13, 2023, and applies to penalties that are assessed
after that date.
FOR FURTHER INFORMATION CONTACT: Vonzella C. Johnson, Regulations and
Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G
Street NW, Box 12, Washington, DC 20005; (202) 508-0413.
SUPPLEMENTARY INFORMATION:
Background
Statutory Authority for Federal Civil Monetary Penalty Inflation
Adjustments
The Federal Civil Penalties Inflation Adjustment Act of 1990 (the
Inflation Adjustment Act), Public Law 101-410, 104 Stat. 890, 28 U.S.C.
2461 note, as amended by the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015, Public Law 114-74, section
701, 129 Stat. 584, requires the regular adjustment and evaluation of
civil monetary penalties to maintain their deterrent effect and helps
to ensure that penalty amounts imposed by the Federal Government are
properly accounted for and collected. A ``civil monetary penalty'' is
defined in the Inflation Adjustment Act as any penalty, fine, or other
such sanction that is: (1) For a specific monetary amount as provided
by Federal law, or has a maximum amount provided for by Federal law;
(2) assessed or enforced by an agency pursuant to Federal law; and (3)
assessed or enforced pursuant to an administrative proceeding or a
civil action in the Federal courts.
The Inflation Adjustment Act, as amended, requires agencies to
adjust civil monetary penalties by the inflation adjustment described
in section 5 of the Inflation Adjustment Act. The amended Inflation
Adjustment Act also provides that any increase in a civil monetary
penalty shall apply only to civil monetary penalties, including those
whose associated violation predated such an increase, which are
assessed after the date the increase takes effect.
The Inflation Adjustment Act, as amended, provides that the
inflation adjustment does not apply to civil monetary penalties under
the Internal Revenue Code of 1986 or the Tariff Act of 1930.
Alcoholic Beverage Labeling Act
The Alcohol and Tobacco Tax and Trade Bureau (TTB) administers the
Federal Alcohol Administration Act (FAA Act) pursuant to section
1111(d) of the Homeland Security Act of 2002, codified at 6 U.S.C.
531(d). In addition, the Secretary of the Treasury has delegated
certain administrative and enforcement authorities to TTB through
Treasury Order 120-01.
The FAA Act contains the Alcoholic Beverage Labeling Act (ABLA) of
1988, Public Law 100-690, 27 U.S.C. 213-219a, which was enacted on
November 18, 1988. Section 204 of the ABLA, codified in 27 U.S.C. 215,
requires that a health warning statement appear on the labels of all
containers of alcoholic
[[Page 2229]]
beverages manufactured, imported, or bottled for sale or distribution
in the United States, as well as on containers of alcoholic beverages
that are manufactured, imported, bottled, or labeled for sale,
distribution, or shipment to members or units of the U.S. Armed Forces,
including those located outside the United States.
The health warning statement requirement applies to containers of
alcoholic beverages manufactured, imported, or bottled for sale or
distribution in the United States on or after November 18, 1989. The
statement reads as follows:
GOVERNMENT WARNING: (1) According to the Surgeon General, women
should not drink alcoholic beverages during pregnancy because of the
risk of birth defects. (2) Consumption of alcoholic beverages
impairs your ability to drive a car or operate machinery, and may
cause health problems.
Section 204 of the ABLA also specifies that the Secretary of the
Treasury shall have the power to ensure the enforcement of the
provisions of the ABLA and issue regulations to carry them out. In
addition, section 207 of the ABLA, codified in 27 U.S.C. 218, provides
that any person who violates the provisions of the ABLA is subject to a
civil penalty of not more than $10,000, with each day constituting a
separate offense.
Most of the civil monetary penalties administered by TTB are
imposed by the Internal Revenue Code of 1986, and thus are not subject
to the inflation adjustment mandated by the Inflation Adjustment Act.
The only civil monetary penalty enforced by TTB that is subject to the
inflation adjustment is the penalty imposed by the ABLA at 27 U.S.C.
218.
TTB Regulations
The TTB regulations implementing the ABLA are found in 27 CFR part
16, and the regulations implementing the Inflation Adjustment Act with
respect to the ABLA penalty are found in 27 CFR 16.33. This section
indicates that, in accordance with the ABLA, any person who violates
the provisions of this part is subject to a civil penalty of not more
than $10,000. Further, pursuant to the provisions of the Inflation
Adjustment Act, as amended, this civil penalty is subject to periodic
cost-of-living adjustments. Accordingly, any person who violates the
provisions of 27 CFR part 16 is subject to a civil penalty of not more
than the amount listed at <a href="https://www.ttb.gov/regulation_guidance/ablapenalty.html">https://www.ttb.gov/regulation_guidance/ablapenalty.html</a>. Each day constitutes a separate offense.
To adjust the penalty, Sec. 16.33(b) indicates that TTB will
provide notice in the Federal Register and at the website mentioned
above of cost-of-living adjustments to the civil penalty for violations
of 27 CFR part 16.
Penalty Adjustment
In this document, TTB is publishing its yearly adjustment to the
maximum ABLA penalty, as required by the amended Inflation Adjustment
Act.
As mentioned earlier, the ABLA contains a maximum civil monetary
penalty. For such penalties, section 5 of the Inflation Adjustment Act
indicates that the inflation adjustment is determined by increasing the
maximum penalty by the cost-of-living adjustment. The cost-of-living
adjustment means the percentage increase (if any) between the Consumer
Price Index for all-urban consumers (CPI-U) for the October preceding
the date of the adjustment and the prior year's October CPI-U.
The CPI-U in October 2021 was 276.589, and the CPI-U in October
2022 was 298.012. The rate of inflation between October 2021 and
October 2022 was therefore 7.745 percent. When applied to the current
ABLA penalty of $22,979, this rate of inflation yields a raw
(unrounded) inflation adjustment of $1,779.72355. Rounded to the
nearest dollar, the inflation adjustment is $1,780, meaning that the
new maximum civil penalty for violations of the ABLA will be $24,759.
The new maximum civil penalty will apply to all penalties that are
assessed after January 13, 2023. TTB has also updated its web page at
<a href="https://www.ttb.gov/regulation_guidance/ablapenalty.html">https://www.ttb.gov/regulation_guidance/ablapenalty.html</a> to reflect the
adjusted penalty.
Dated: January 9, 2023.
Amy R. Greenberg,
Director, Regulations and Rulings Division.
[FR Doc. 2023-00594 Filed 1-12-23; 8:45 am]
BILLING CODE 4810-31-P
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</html>Indexed from Federal Register on January 13, 2023.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.