Quiero saber acerca de...

jspears on DSK121TN23PROD with PROPOSALS1

68580

Federal Register / Vol. 86, No. 230 / Friday, December 3, 2021 / Proposed Rules
filing deadline of 20.56 from 30 to 60
days, and to remove the 10-day notification requirement of 20.57.
With respect to the automatic termination provisions of 20.57, the proposed amendments extend the timeframe for termination to 60 days.
Concerning permits for users of taxfree industrial alcohol, TTB proposes to amend 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 22.58. TTB proposes to extend the filing deadline of 22.57
from 30 to 60 days. With respect to the automatic termination provisions of 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 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. 204g 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 204g2
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 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
VerDate Sep<11>2014

17:53 Dec 02, 2021

Jkt 256001

ownership, management, or control of the business, including changes that fall under 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 1.44, a timely application will also satisfy the notification requirement of 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 5.36f. 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. TTBs 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
PO 00000

Frm 00010

Fmt 4702

Sfmt 4702

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 offpremises 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 DSPs 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 TTBregulated 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
E:FRFM03DEP1.SGM

03DEP1