Implementation of Statutory Amendments Requiring the Modification of the Definition of Hard Cider; Delayed Compliance Date for the Hard Cider Tax Class Labeling Statement Requirement; Reopening of Comment Period, 57392-57395 [2017-26283]

Download as PDF 57392 Federal Register / Vol. 82, No. 232 / Tuesday, December 5, 2017 / Proposed Rules (a) Applicability This AD applies to Model MBB–BK 117 C– 2 helicopters, serial numbers up to and including 9750, and Model MBB–BK 117 D– 2 helicopters, serial numbers up to and including 20110, with a hydraulic module plate assembly part number B291M0003103 with a single locking attachment point installed, certificated in any category. (b) Unsafe Condition This AD defines the unsafe condition as failure of a hydraulic module plate assembly attachment point (attachment point). This condition could result in loss of the hydraulic module plate and subsequent loss of control of the helicopter. (c) Affected ADs This AD supersedes 2017–02–07, Amendment 39–18786 (82 FR 10267, February 10, 2017). (d) Comments Due Date We must receive comments by February 5, 2018. sradovich on DSK3GMQ082PROD with PROPOSALS (e) Compliance You are responsible for performing each action required by this AD within the specified compliance time unless it has already been accomplished prior to that time. (f) Required Actions (1) Within 100 hours time-in-service (TIS): (i) Visually inspect the split pins, castellated nuts, plugs, nuts, and hexagon bolts of each attachment point for a crack and for proper installation by following the Accomplishment Instructions, paragraphs 3.B.1.3.a. through 3.B.1.3.d., of Airbus Helicopters Alert Service Bulletin (ASB) No. ASB MBB–BK117 C–2–29A–003 (ASB MBB– BK117 C–2–29A–003) or Airbus Helicopters ASB No. ASB MBB–BK117 D–2–29A–001 (ASB MBB–BK117 D–2–29A–001), both Revision 2 and both dated February 1, 2017, as applicable to your model helicopter. Replace any part that has a crack before further flight. If the split pins, castellated nuts, or hexagon bolts are not as depicted in Figure 2 of ASB MBB–BK117 C–2–29A–003 or ASB MBB–BK117 D–2–29A–001, before further flight, properly install them. (ii) Apply a torque of 9 to 10 Nm to the left-hand and right-hand nuts of each attachment point. If a torque of 9 to 10 Nm cannot be applied, replace the affected nut before further flight. (2) Within 300 hours TIS: (i) Replace each forward single locking attachment hardware with double locking attachment hardware by following the Accomplishment Instructions, paragraphs 3.B.3.3. through 3.B.3.6. on page 11 of ASB MBB–BK117 C–2–29A–003 or ASB MBB– BK117 D–2–29A–001, as applicable to your model helicopter, except you are not required to discard old parts. (ii) Replace each aft single locking attachment hardware with double locking attachment hardware by following the Accomplishment Instructions, paragraphs 3.B.3.1. through 3.B.3.3. on page 13 of ASB MBB–BK117 C–2–29A–003 or ASB MBB– BK117 D–2–29A–001, as applicable to your VerDate Sep<11>2014 18:01 Dec 04, 2017 Jkt 244001 model helicopter, except you are not required to discard old parts. DEPARTMENT OF THE TREASURY (g) Credit for Previous Actions Alcohol and Tobacco Tax and Trade Bureau Actions accomplished before the effective date of this AD in accordance with the procedures specified in AD 2017–02–07, Amendment 39–18786 (82 FR 10267, February 10, 2017) or Airbus Helicopters ASB No. ASB MBB–BK117 C–2–29A–003 or ASB No. ASB MBB–BK117 D–2–29A–001, both Revision 1 and both dated October 14, 2016, are considered acceptable for compliance with the corresponding actions specified in paragraph (f)(1) of this AD. (h) Alternative Methods of Compliance (AMOCs) (1) The Manager, Safety Management Section, FAA, may approve AMOCs for this AD. Send your proposal to: Matt Fuller, Senior Aviation Safety Engineer, Safety Management Section, Rotorcraft Standards Branch, FAA, 10101 Hillwood Pkwy., Fort Worth, TX 76177; telephone (817) 222–5110; email 9-ASW-FTW-AMOC-Requests@faa.gov. (2) For operations conducted under a 14 CFR part 119 operating certificate or under 14 CFR part 91, subpart K, we suggest that you notify your principal inspector, or lacking a principal inspector, the manager of the local flight standards district office or certificate holding district office before operating any aircraft complying with this AD through an AMOC. (i) Additional Information (1) Airbus Helicopters ASB No. ASB MBB– BK117 C–2–29A–003 and ASB No. ASB MBB–BK117 D–2–29A–001, both Revision 1 and both dated October 14, 2016, which are not incorporated by reference, contain additional information about the subject of this AD. For service information identified in this AD, contact Airbus Helicopters, 2701 N. Forum Drive, Grand Prairie, TX 75052; telephone (972) 641–0000 or (800) 232–0323; fax (972) 641–3775; or at http:// www.airbushelicopters.com/techpub. You may review a copy of the service information at the FAA, Office of the Regional Counsel, Southwest Region, 10101 Hillwood Pkwy., Room 6N–321, Fort Worth, TX 76177. (2) The subject of this AD is addressed in European Aviation Safety Agency (EASA) AD No. 2017–0047, dated March 13, 2017. You may view the EASA AD on the Internet at http://www.regulations.gov in the AD Docket. (j) Subject Joint Aircraft Service Component (JASC) Code: 2900, Hydraulic Power System. Issued in Fort Worth, Texas, on November 17, 2017. Lance T. Gant, Director, Compliance & Airworthiness Division, Aircraft Certification Service. [FR Doc. 2017–26039 Filed 12–4–17; 8:45 am] BILLING CODE 4910–13–P PO 00000 Frm 00010 Fmt 4702 Sfmt 4702 27 CFR Parts 24 and 27 [Docket No. TTB–2016–0014; Notice No. 168A; Re: Notice No. 168, T.D. TTB–147, and T.D. TTB 147A] RIN 1513–AC31 Implementation of Statutory Amendments Requiring the Modification of the Definition of Hard Cider; Delayed Compliance Date for the Hard Cider Tax Class Labeling Statement Requirement; Reopening of Comment Period Alcohol and Tobacco Tax and Trade Bureau, Treasury. ACTION: Notice of proposed rulemaking and reopening of comment period. AGENCY: On January 23, 2017, the Alcohol and Tobacco Tax and Trade Bureau (TTB) published a temporary rule, T.D. TTB–147, Implementation of Statutory Amendments Requiring the Modification of the Definition of Hard Cider, that amended its regulations to implement changes made to the definition of ‘‘hard cider’’ in the Internal Revenue Code of 1986 by the Protecting Americans from Tax Hikes Act (PATH Act) of 2015. The amended regulations included a requirement that the statement ‘‘Tax class 5041(b)(6)’’ appear on the container of any wine for which the hard cider tax rate is claimed if the wine is removed from wine premises or customs custody on or after January 1, 2018. Concurrent with the temporary rule, TTB published Notice of Proposed Rulemaking No. 168 requesting comments on the regulatory amendments made by T.D. TTB–147. In response to a comment received from a cider industry trade association, TTB, in a temporary rule published elsewhere in this issue of the Federal Register, is now delaying the compliance date for the hard cider tax class labeling requirement by one year, until January 1, 2019. In this document, TTB is requesting comments on that delayed compliance date, and we are also reopening the comment period for Notice No. 168 for an additional 60 days to request comments on the regulatory amendments described in T.D. TTB– 147. SUMMARY: Comments on the delayed compliance date referenced in this document (Notice No. 168A) are due on or before February 5, 2018. The comment period for the proposed rule, Notice No. 168, published on January DATES: E:\FR\FM\05DEP1.SGM 05DEP1 sradovich on DSK3GMQ082PROD with PROPOSALS Federal Register / Vol. 82, No. 232 / Tuesday, December 5, 2017 / Proposed Rules 23, 2017, at 82 FR 7753 is reopened for 60 days, and, therefore, comments on Notice No. 168 also are now due on or before February 5, 2018. ADDRESSES: Please send your comments on Notice No. 168 or Notice No. 168A to one of the following addresses: • Internet: https:// www.regulations.gov (via the online comment forms for Notice No. 168 or Notice No. 168A, as appropriate, which are posted within Docket No. TTB– 2016–0014 at Regulations.gov, the Federal e-rulemaking portal); • U.S. Mail: Director, Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW., Box 12, Washington, DC 20005; or • Hand delivery/courier in lieu of mail: Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW., Suite 400, Washington, DC 20005. See the Public Participation sections of Notice No. 168 and this document (Notice No. 168A) for specific instructions and requirements for submitting comments, and for information on how to request a public hearing. You may view copies of this document, Notice No. 168, and any comments made to TTB about the described proposals at https:// www.regulations.gov within Docket No. TTB–2016–0014. A link to that docket is posted on the TTB Web site at https:// www.ttb.gov/wine/winerulemaking.shtml under Notice No. 168 or Notice No. 168A. You also may view copies of this document, Notice No. 168, and any comments made to TTB about the described proposals by appointment at the TTB Information Resource Center, 1310 G Street NW., Washington, DC 20005. Please call (202) 453–2270 to make an appointment. FOR FURTHER INFORMATION CONTACT: Kara Fontaine, Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW., Box 12, Washington, DC 20005; phone (202) 453–1039, ext. 103. SUPPLEMENTARY INFORMATION: In T.D. TTB–147, a temporary rule published in the Federal Register on January 23, 2017, at 82 FR 7653, the Alcohol and Tobacco Tax and Trade Bureau (TTB) implemented changes made to the definition of ‘‘hard cider’’ in the Internal Revenue Code of 1986 by the Protecting Americans from Tax Hikes (PATH) Act of 2015 (Consolidated Appropriations Act, 2016 (Pub. L. 114–113), Division Q). The modified definition broadened the range of wines eligible for the hard cider tax rate. In T.D. TTB–147, TTB amended its regulations to reflect the VerDate Sep<11>2014 18:01 Dec 04, 2017 Jkt 244001 modified definition of hard cider effective for products removed from wine premises or customs custody on or after January 1, 2017, and set forth new labeling requirements to identify products to which the hard cider tax rate applies. The new labeling requirements include both a one-year transitional rule and a new labeling requirement that takes effect for products removed on or after January 1, 2018. TTB solicited public comments on the temporary regulations via Notice No. 168, a notice of proposed rulemaking published in the Federal Register on January 23, 2017, at 82 FR 7753. The temporary regulations contained in T.D. TTB–147 served as the text of the proposed regulations. The original 60day comment period for Notice No. 168 closed on March 24, 2017. In response to this comment request, TTB received a comment, posted on February 15, 2017, from Ian Flom of Mercier Orchards, indicating that the timeframe to implement the new ‘‘Tax Class 5041(b)(6)’’ labeling statement requirement is insufficient because he buys labels in bulk and has a supply of labels that do not bear the tax class statement that he will not be able to use up before January 1, 2018. In addition, TTB received a letter, dated February 23, 2017, from the United States Association of Cider Makers (USACM), a cider industry trade association based in Portland, Oregon, requesting a 60-day extension of the comment period for Notice No. 168. In its letter, the USACM noted that ‘‘there was much discussion about these proposed changes’’ at its annual membership conference and that a number of its members planned to submit comments to TTB. The letter also noted, however, that ‘‘orchardists are currently facing time-management challenges due to pruning season,’’ and that the requested extension ‘‘would allow our members time to properly address any of their concerns with the proposed changes to the hard cider definition and related regulatory changes.’’ The USACM comment period extension request letter is posted as Comment 2 to Notice No. 168 within Docket No. TTB–2016–0014 on the Regulations.gov Web site at https:// www.regulations.gov. In addition to USACM’s request to TTB to extend the comment period, USACM wrote a letter, on which TTB was copied, to Steven T. Mnuchin, Secretary of the Treasury, dated August 1, 2017, requesting both a reopening of the comment period of T.D. TTB–147 and a one year delay of the January 1, 2018, hard cider tax class labeling statement requirement. A copy of this PO 00000 Frm 00011 Fmt 4702 Sfmt 4702 57393 USACM letter is posted as Comment 3 to Notice No. 168 within Docket No. TTB–2016–0014 on the Regulations.gov Web site. In light of these requests, TTB is delaying the hard cider tax class labeling statement compliance date. Such a delay will provide industry members additional time to come into compliance with the labeling requirement. Through the publication of a temporary rule elsewhere in this issue of the Federal Register, TTB is amending 27 CFR 24.257(a)(4) to delay until January 1, 2019, the compliance date for the requirement that the tax class statement ‘‘Tax class 5041(b)(6)’’ appear on any container of wine removed from wine premises or customs custody for which the hard cider tax rate is claimed. Because the tax class labeling requirement contained in 27 CFR 27.59(b) is a cross-reference to § 24.257(a)(4), no change to the regulatory text in § 27.59(b) is required. Further, in response to the USACM request to reopen the comment period for all the regulatory amendments contained in T.D. TTB–147, TTB is reopening the comment period for the related notice of proposed rulemaking, Notice No. 168, for an additional 60 days. TTB believes that this additional 60-day comment period will allow all interested parties to fully consider and comment on the regulatory amendments contained in the hard cider temporary rule. Therefore, new comments on Notice No. 168 and comments on this document (Notice No. 168A) delaying the compliance date of the hard cider tax class labeling requirement are due to TTB on or before February 5, 2018. Public Participation Comments Sought TTB requests comments from interested members of the public on the one-year delay, from January 1, 2018, to January 1, 2019, of the hard cider taxclass labeling statement requirement contained in 27 CFR 24.257, as described in the temporary rule, T.D. TTB–147A, published elsewhere in this issue of the Federal Register. TTB also requests new comments on the regulatory amendments to 27 CFR parts 24 and 27 set forth in the temporary rule, T.D. TTB–147, published in the Federal Register on January 23, 2017 at 82 FR 7653. Submitting Comments You may submit comments by using one of the following three methods: • Federal e-Rulemaking Portal: You may send comments via the online E:\FR\FM\05DEP1.SGM 05DEP1 sradovich on DSK3GMQ082PROD with PROPOSALS 57394 Federal Register / Vol. 82, No. 232 / Tuesday, December 5, 2017 / Proposed Rules comment form for this proposed rule (Notice No. 168A) or for Notice No. 168, as appropriate, posted within Docket No. TTB–2016–0014 on ‘‘Regulations.gov,’’ the Federal e-rulemaking portal, at https:// www.regulations.gov. A direct link to that docket is available under Notice No. 168 and Notice No. 168A on the TTB Web site at https://www.ttb.gov/ wine/wine-rulemaking.shtml. Supplemental files may be attached to comments submitted via Regulations.gov. For complete instructions on how to use Regulations.gov, click on the site’s ‘‘Help’’ tab. • U.S. Mail: You may send comments via postal mail to the Director, Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW., Box 12, Washington, DC 20005. • Hand Delivery/Courier: You may hand-carry your comments or have them hand-carried to the Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW., Suite 400, Washington, DC 20005. Please submit your comments by the closing date shown above in this proposed rule. Your comments must reference Notice No. 168A or Notice No. 168, as appropriate, and include your name and mailing address. Your comments also must be made in English, be legible, and be written in language acceptable for public disclosure. TTB does not acknowledge receipt of comments and considers all comments as originals. In your comment, please clearly state if you are commenting for yourself or on behalf of an association, business, or other entity. If you are commenting on behalf of an entity, your comment must include the entity’s name as well as your name and position title. In your comment via Regulations.gov, please enter the entity’s name in the ‘‘Organization’’ blank of the online comment form. If you comment via postal mail or hand delivery/courier, please submit your entity’s comment on letterhead. You may also write to the Administrator before the comment closing date to ask for a public hearing. The Administrator reserves the right to determine whether to hold a public hearing. Confidentiality All submitted comments and attachments are part of the public record and subject to disclosure. Do not enclose any material in your comments that you consider to be confidential or inappropriate for public disclosure. VerDate Sep<11>2014 18:01 Dec 04, 2017 Jkt 244001 Public Disclosure TTB will post, and you may view, copies of the proposed rules, the related temporary rules, and any online or mailed comments received about them, within Docket No. TTB–2016–0014 on Regulations.gov, the Federal e-rulemaking portal. A direct link to that docket is available on the TTB Web site at https://www.ttb.gov/wine/winerulemaking.shtml under Notice No. 168 or Notice No. 168A. You may also reach the relevant docket through the Regulations.gov search page at https:// www.regulations.gov. For information on how to use Regulations.gov, click on the site’s ‘‘Help’’ tab. All posted comments will display the commenter’s name, organization (if any), city, and State, and, in the case of mailed comments, all address information, including email addresses. TTB may omit voluminous attachments or material that it considers unsuitable for posting. You may view copies of the proposed rules, the related temporary rules, and any electronic or mailed comments TTB receives about them by appointment at the TTB Information Resource Center, 1310 G Street NW., Washington, DC 20005. You may also obtain copies for 20 cents per 8.5- × 11-inch page. Contact TTB’s information specialist at the above address or by telephone at (202) 453–2270 to schedule an appointment or to request copies of comments or other materials. Regulatory Flexibility Act, Paperwork Reduction Act, and Executive Order 12866 Since the regulatory text proposed in this notice of proposed rulemaking is identical to that contained in the companion temporary rule published elsewhere in this issue of the Federal Register, the analyses contained in the preamble of the temporary rule concerning the Regulatory Flexibility Act, the Paperwork Reduction Act, and Executive Order 12866 also apply to this proposed rule. Drafting Information Kara Fontaine and Michael Hoover of the Regulations and Rulings Division drafted this document with the assistance of other Alcohol and Tobacco Tax and Trade Bureau personnel. 27 CFR Part 24 Administrative practice and procedure, Cider, Claims, Electronic funds transfers, Excise taxes, Exports, Food additives, Fruit juices, Hard Cider, Labeling, Liquors, Packaging and Frm 00012 Fmt 4702 27 CFR Part 27 Alcohol and alcoholic beverages, Beer, Cosmetics, Customs duties and inspections, Electronic funds transfers, Excise taxes, Imports, Labeling, Liquors, Packaging and containers, Reporting and Recordkeeping requirements, Wine. Proposed Amendments to the Regulations For the reasons discussed in the preamble, TTB proposes to amend 27 CFR chapter I, parts 24 and 27, as follows: PART 24—WINE 1. The authority citation for part 24 continues to read as follows: ■ Authority: 5 U.S.C. 552(a); 26 U.S.C. 5001, 5008, 5041, 5042, 5044, 5061, 5062, 5121, 5122–5124, 5173, 5206, 5214, 5215, 5351, 5353, 5354, 5356, 5357, 5361, 5362, 5364– 5373, 5381–5388, 5391, 5392, 5511, 5551, 5552, 5661, 5662, 5684, 6065, 6091, 6109, 6301, 6302, 6311, 6651, 6676, 7302, 7342, 7502, 7503, 7606, 7805, 7851; 31 U.S.C. 9301, 9303, 9304, 9306. § 24.257 Sfmt 4702 [Amended] 2. In § 24.257: a. Paragraph (a)(4) is amended by removing the date ‘‘January 1, 2018’’ each place it appears and adding in its place the date ‘‘January 1, 2019’’; and ■ b. The Office of Management and Budget control number reference at the end of the section is amended by removing the phrase ‘‘1513–0115 and 1513–XXXX’’ and adding in its place the phrase ‘‘1513–0092 and 1513– 0138’’. ■ ■ PART 27—IMPORTATION OF DISTILLED SPIRITS, WINES, AND BEER 3. The authority citation for part 27 is revised 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. § 27.59 List of Subjects PO 00000 containers, Reporting and recordkeeping requirements, Research, Scientific equipment, Spices and flavorings, Surety bonds, Vinegar, Warehouses, Wine. [Amended] 4. In § 27.59, the Office of Management and Budget control number reference at the end of the section is amended by removing the phrase ‘‘number 1513–XXXX’’ and adding in its place the phrase ‘‘numbers 1513–0092 and 1513–0138’’. ■ E:\FR\FM\05DEP1.SGM 05DEP1 Federal Register / Vol. 82, No. 232 / Tuesday, December 5, 2017 / Proposed Rules Signed: October 30, 2017. John J. Manfreda, Administrator. Approved: November 30, 2017. Timothy E. Skud, Deputy Assistant Secretary (Tax, Trade and Tariff Policy). [FR Doc. 2017–26283 Filed 12–4–17; 8:45 am] BILLING CODE 4810–31–P DEPARTMENT OF LABOR Wage and Hour Division 29 CFR Part 531 RIN 1235–AA21 Tip Regulations Under the Fair Labor Standards Act (FLSA) Wage and Hour Division, Department of Labor. ACTION: Notice of proposed rulemaking; request for comments. AGENCY: The Department of Labor (Department) is proposing to rescind portions of its tip regulations issued pursuant to the Fair Labor Standards Act that impose restrictions on employers that pay a direct cash wage of at least the full federal minimum wage and do not seek to use a portion of tips as a credit toward their minimum wage obligations. This Notice of Proposed Rulemaking (NPRM) seeks the views of the public on the Department’s proposed rescission of those portions of the regulations. DATES: Comments must be received on or before January 4, 2018. ADDRESSES: To facilitate the receipt and processing of written comments on this NPRM, the Department encourages interested persons to submit their comments electronically. You may submit comments, identified by Regulatory Information Number (RIN) 1235–AA21, by either of the following methods: Electronic Comments: Follow the instructions for submitting comments on the Federal eRulemaking Portal http://www.regulations.gov. Mail: Address written submissions to Melissa Smith, Director of the Division of Regulations, Legislation, and Interpretation, Wage and Hour Division, U.S. Department of Labor, Room S– 3502, 200 Constitution Avenue NW., Washington, DC 20210. Instructions: This NPRM is available through the Federal Register and the http://www.regulations.gov Web site. You may also access this document via the Wage and Hour Division’s (WHD) Web site at http://www.dol.gov/whd/. sradovich on DSK3GMQ082PROD with PROPOSALS SUMMARY: VerDate Sep<11>2014 18:01 Dec 04, 2017 Jkt 244001 All comment submissions must include the agency name and Regulatory Information Number (RIN 1235–AA21) for this NPRM. Response to this NPRM is voluntary. The Department requests that no business proprietary information, copyrighted information, or personally identifiable information be submitted in response to this NPRM. Submit only one copy of your comment by only one method (e.g., persons submitting comments electronically are encouraged not to submit paper copies). Please be advised that comments received will become a matter of public record and will be posted without change to http://www.regulations.gov, including any personal information provided. All comments must be received by 11:59 p.m. on the date indicated for consideration in this NPRM; comments received after the comment period closes will not be considered. Commenters should transmit comments early to ensure timely receipt prior to the close of the comment period. Electronic submission via http://www.regulations.gov enables prompt receipt of comments submitted as DOL continues to experience delays in the receipt of mail in our area. For access to the docket to read background documents or comments, go to the Federal eRulemaking Portal at http:// www.regulations.gov. FOR FURTHER INFORMATION CONTACT: Melissa Smith, Director of the Division of Regulations, Legislation, and Interpretation, Wage and Hour Division, U.S. Department of Labor, Room S– 3502, 200 Constitution Avenue NW., Washington, DC 20210, telephone: (202) 693–0406 (this is not a toll-free number). Copies of this NPRM may be obtained in alternative formats (Large Print, Braille, Audio Tape or Disc), upon request, by calling (202) 693–0675 (this is not a toll-free number). TTY/TDD callers may dial toll-free 1 (877) 889– 5627 to obtain information or request materials in alternative formats. Questions of interpretation and/or enforcement of the agency’s regulations may be directed to the nearest WHD district office. Locate the nearest office by calling the WHD’s toll-free help line at (866) 4US–WAGE ((866) 487–9243) between 8 a.m. and 5 p.m. in your local time zone, or log onto WHD’s Web site at http://www.dol.gov/whd/ america2.htm for a nationwide listing of WHD district and area offices. SUPPLEMENTARY INFORMATION: I. Executive Summary The Fair Labor Standards Act of 1938 (FLSA) generally requires covered employers to pay employees at least a PO 00000 Frm 00013 Fmt 4702 Sfmt 4702 57395 Federal minimum wage, which is currently $7.25 per hour. See 29 U.S.C. 206(a)(1). Under section 3(m) of the FLSA, which defines the term ‘‘wage,’’ an employer of tipped employees can satisfy its obligation to pay those employees the Federal minimum wage by paying a lower direct cash wage and counting a limited amount of the tips received by its employees as a partial credit to satisfy the difference between the direct cash wage paid and the Federal minimum wage (known as a ‘‘tip credit’’), if it follows certain statutory requirements. See 29 U.S.C. 203(m). In 1966, Congress created a tip credit provision within the definition of a ‘‘wage’’ in section 3(m) of the statute that permitted an employer to utilize tips received by its employees to subsidize up to 50 percent of its minimum wage obligations. See Public Law 89–601, 101(a), 80 Stat. 830 (1966); 76 FR 18,832, 18,838.1 In 1974, Congress again amended section 3(m) by providing that an employer could not utilize tips received by its employees toward its Federal minimum wage obligation unless, among other things: (1) [its] employee has been informed by the employer of the provisions of this subsection and (2) all tips received by such employee have been retained by the employee, except that this subsection shall not be construed to prohibit the pooling of tips among employees who customarily and regularly receive tips. Public Law 93–259, 13(e), 88 Stat. 55 (1974). Thus, section 3(m) permits an employer to take a partial credit against its minimum wage obligations on account of tips received by its employees but only if, among other things, its tipped employees retain all of their tips. Section 3(m), however, does not preclude an employer that takes a tip credit from implementing a tip pool in which tips are shared only among those employees who ‘‘customarily and regularly receive tips.’’ Id. The Department first promulgated regulations implementing the section 3(m) tip credit in 1967. See 32 FR 13,575 (Sept. 28, 1967). In 2011, the Department updated those regulations to reflect its then-existing view that the statutory conditions in section 3(m) of the FLSA require that tipped employees retain all of their tips, except for those tips distributed through a tip pool limited to customarily and regularly tipped employees, regardless whether such employees work for an employer that takes a tip credit. See, e.g., § 531.52. 1 As discussed further below, Congress changed the amount of tips received by employees that an employer can credit against its minimum wage obligation in subsequent amendments to the FLSA. See, infra, Sec. III. E:\FR\FM\05DEP1.SGM 05DEP1

Agencies

[Federal Register Volume 82, Number 232 (Tuesday, December 5, 2017)]
[Proposed Rules]
[Pages 57392-57395]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-26283]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Parts 24 and 27

[Docket No. TTB-2016-0014; Notice No. 168A; Re: Notice No. 168, T.D. 
TTB-147, and T.D. TTB 147A]
RIN 1513-AC31


Implementation of Statutory Amendments Requiring the Modification 
of the Definition of Hard Cider; Delayed Compliance Date for the Hard 
Cider Tax Class Labeling Statement Requirement; Reopening of Comment 
Period

AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.

ACTION: Notice of proposed rulemaking and reopening of comment period.

-----------------------------------------------------------------------

SUMMARY: On January 23, 2017, the Alcohol and Tobacco Tax and Trade 
Bureau (TTB) published a temporary rule, T.D. TTB-147, Implementation 
of Statutory Amendments Requiring the Modification of the Definition of 
Hard Cider, that amended its regulations to implement changes made to 
the definition of ``hard cider'' in the Internal Revenue Code of 1986 
by the Protecting Americans from Tax Hikes Act (PATH Act) of 2015. The 
amended regulations included a requirement that the statement ``Tax 
class 5041(b)(6)'' appear on the container of any wine for which the 
hard cider tax rate is claimed if the wine is removed from wine 
premises or customs custody on or after January 1, 2018. Concurrent 
with the temporary rule, TTB published Notice of Proposed Rulemaking 
No. 168 requesting comments on the regulatory amendments made by T.D. 
TTB-147. In response to a comment received from a cider industry trade 
association, TTB, in a temporary rule published elsewhere in this issue 
of the Federal Register, is now delaying the compliance date for the 
hard cider tax class labeling requirement by one year, until January 1, 
2019. In this document, TTB is requesting comments on that delayed 
compliance date, and we are also re-opening the comment period for 
Notice No. 168 for an additional 60 days to request comments on the 
regulatory amendments described in T.D. TTB-147.

DATES: Comments on the delayed compliance date referenced in this 
document (Notice No. 168A) are due on or before February 5, 2018. The 
comment period for the proposed rule, Notice No. 168, published on 
January

[[Page 57393]]

23, 2017, at 82 FR 7753 is reopened for 60 days, and, therefore, 
comments on Notice No. 168 also are now due on or before February 5, 
2018.

ADDRESSES: Please send your comments on Notice No. 168 or Notice No. 
168A to one of the following addresses:
     Internet: https://www.regulations.gov (via the online 
comment forms for Notice No. 168 or Notice No. 168A, as appropriate, 
which are posted within Docket No. TTB-2016-0014 at Regulations.gov, 
the Federal e-rulemaking portal);
     U.S. Mail: Director, Regulations and Rulings Division, 
Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW., Box 12, 
Washington, DC 20005; or
     Hand delivery/courier in lieu of mail: Alcohol and Tobacco 
Tax and Trade Bureau, 1310 G Street NW., Suite 400, Washington, DC 
20005.
    See the Public Participation sections of Notice No. 168 and this 
document (Notice No. 168A) for specific instructions and requirements 
for submitting comments, and for information on how to request a public 
hearing.
    You may view copies of this document, Notice No. 168, and any 
comments made to TTB about the described proposals at https://www.regulations.gov within Docket No. TTB-2016-0014. A link to that 
docket is posted on the TTB Web site at https://www.ttb.gov/wine/wine-rulemaking.shtml under Notice No. 168 or Notice No. 168A. You also may 
view copies of this document, Notice No. 168, and any comments made to 
TTB about the described proposals by appointment at the TTB Information 
Resource Center, 1310 G Street NW., Washington, DC 20005. Please call 
(202) 453-2270 to make an appointment.

FOR FURTHER INFORMATION CONTACT: Kara Fontaine, Regulations and Rulings 
Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW., 
Box 12, Washington, DC 20005; phone (202) 453-1039, ext. 103.

SUPPLEMENTARY INFORMATION: In T.D. TTB-147, a temporary rule published 
in the Federal Register on January 23, 2017, at 82 FR 7653, the Alcohol 
and Tobacco Tax and Trade Bureau (TTB) implemented changes made to the 
definition of ``hard cider'' in the Internal Revenue Code of 1986 by 
the Protecting Americans from Tax Hikes (PATH) Act of 2015 
(Consolidated Appropriations Act, 2016 (Pub. L. 114-113), Division Q). 
The modified definition broadened the range of wines eligible for the 
hard cider tax rate. In T.D. TTB-147, TTB amended its regulations to 
reflect the modified definition of hard cider effective for products 
removed from wine premises or customs custody on or after January 1, 
2017, and set forth new labeling requirements to identify products to 
which the hard cider tax rate applies. The new labeling requirements 
include both a one-year transitional rule and a new labeling 
requirement that takes effect for products removed on or after January 
1, 2018.
    TTB solicited public comments on the temporary regulations via 
Notice No. 168, a notice of proposed rulemaking published in the 
Federal Register on January 23, 2017, at 82 FR 7753. The temporary 
regulations contained in T.D. TTB-147 served as the text of the 
proposed regulations. The original 60-day comment period for Notice No. 
168 closed on March 24, 2017.
    In response to this comment request, TTB received a comment, posted 
on February 15, 2017, from Ian Flom of Mercier Orchards, indicating 
that the timeframe to implement the new ``Tax Class 5041(b)(6)'' 
labeling statement requirement is insufficient because he buys labels 
in bulk and has a supply of labels that do not bear the tax class 
statement that he will not be able to use up before January 1, 2018. In 
addition, TTB received a letter, dated February 23, 2017, from the 
United States Association of Cider Makers (USACM), a cider industry 
trade association based in Portland, Oregon, requesting a 60-day 
extension of the comment period for Notice No. 168. In its letter, the 
USACM noted that ``there was much discussion about these proposed 
changes'' at its annual membership conference and that a number of its 
members planned to submit comments to TTB. The letter also noted, 
however, that ``orchardists are currently facing time-management 
challenges due to pruning season,'' and that the requested extension 
``would allow our members time to properly address any of their 
concerns with the proposed changes to the hard cider definition and 
related regulatory changes.'' The USACM comment period extension 
request letter is posted as Comment 2 to Notice No. 168 within Docket 
No. TTB-2016-0014 on the Regulations.gov Web site at https://www.regulations.gov.
    In addition to USACM's request to TTB to extend the comment period, 
USACM wrote a letter, on which TTB was copied, to Steven T. Mnuchin, 
Secretary of the Treasury, dated August 1, 2017, requesting both a 
reopening of the comment period of T.D. TTB-147 and a one year delay of 
the January 1, 2018, hard cider tax class labeling statement 
requirement. A copy of this USACM letter is posted as Comment 3 to 
Notice No. 168 within Docket No. TTB-2016-0014 on the Regulations.gov 
Web site.
    In light of these requests, TTB is delaying the hard cider tax 
class labeling statement compliance date. Such a delay will provide 
industry members additional time to come into compliance with the 
labeling requirement. Through the publication of a temporary rule 
elsewhere in this issue of the Federal Register, TTB is amending 27 CFR 
24.257(a)(4) to delay until January 1, 2019, the compliance date for 
the requirement that the tax class statement ``Tax class 5041(b)(6)'' 
appear on any container of wine removed from wine premises or customs 
custody for which the hard cider tax rate is claimed. Because the tax 
class labeling requirement contained in 27 CFR 27.59(b) is a cross-
reference to Sec.  24.257(a)(4), no change to the regulatory text in 
Sec.  27.59(b) is required.
    Further, in response to the USACM request to reopen the comment 
period for all the regulatory amendments contained in T.D. TTB-147, TTB 
is reopening the comment period for the related notice of proposed 
rulemaking, Notice No. 168, for an additional 60 days. TTB believes 
that this additional 60-day comment period will allow all interested 
parties to fully consider and comment on the regulatory amendments 
contained in the hard cider temporary rule.
    Therefore, new comments on Notice No. 168 and comments on this 
document (Notice No. 168A) delaying the compliance date of the hard 
cider tax class labeling requirement are due to TTB on or before 
February 5, 2018.

Public Participation

Comments Sought

    TTB requests comments from interested members of the public on the 
one-year delay, from January 1, 2018, to January 1, 2019, of the hard 
cider tax-class labeling statement requirement contained in 27 CFR 
24.257, as described in the temporary rule, T.D. TTB-147A, published 
elsewhere in this issue of the Federal Register. TTB also requests new 
comments on the regulatory amendments to 27 CFR parts 24 and 27 set 
forth in the temporary rule, T.D. TTB-147, published in the Federal 
Register on January 23, 2017 at 82 FR 7653.

Submitting Comments

    You may submit comments by using one of the following three 
methods:
     Federal e-Rulemaking Portal: You may send comments via the 
online

[[Page 57394]]

comment form for this proposed rule (Notice No. 168A) or for Notice No. 
168, as appropriate, posted within Docket No. TTB-2016-0014 on 
``Regulations.gov,'' the Federal e-rulemaking portal, at https://www.regulations.gov. A direct link to that docket is available under 
Notice No. 168 and Notice No. 168A on the TTB Web site at https://www.ttb.gov/wine/wine-rulemaking.shtml. Supplemental files may be 
attached to comments submitted via Regulations.gov. For complete 
instructions on how to use Regulations.gov, click on the site's 
``Help'' tab.
     U.S. Mail: You may send comments via postal mail to the 
Director, Regulations and Rulings Division, Alcohol and Tobacco Tax and 
Trade Bureau, 1310 G Street NW., Box 12, Washington, DC 20005.
     Hand Delivery/Courier: You may hand-carry your comments or 
have them hand-carried to the Alcohol and Tobacco Tax and Trade Bureau, 
1310 G Street NW., Suite 400, Washington, DC 20005.
    Please submit your comments by the closing date shown above in this 
proposed rule. Your comments must reference Notice No. 168A or Notice 
No. 168, as appropriate, and include your name and mailing address. 
Your comments also must be made in English, be legible, and be written 
in language acceptable for public disclosure. TTB does not acknowledge 
receipt of comments and considers all comments as originals.
    In your comment, please clearly state if you are commenting for 
yourself or on behalf of an association, business, or other entity. If 
you are commenting on behalf of an entity, your comment must include 
the entity's name as well as your name and position title. In your 
comment via Regulations.gov, please enter the entity's name in the 
``Organization'' blank of the online comment form. If you comment via 
postal mail or hand delivery/courier, please submit your entity's 
comment on letterhead.
    You may also write to the Administrator before the comment closing 
date to ask for a public hearing. The Administrator reserves the right 
to determine whether to hold a public hearing.

Confidentiality

    All submitted comments and attachments are part of the public 
record and subject to disclosure. Do not enclose any material in your 
comments that you consider to be confidential or inappropriate for 
public disclosure.

Public Disclosure

    TTB will post, and you may view, copies of the proposed rules, the 
related temporary rules, and any online or mailed comments received 
about them, within Docket No. TTB-2016-0014 on Regulations.gov, the 
Federal e-rulemaking portal. A direct link to that docket is available 
on the TTB Web site at https://www.ttb.gov/wine/wine-rulemaking.shtml 
under Notice No. 168 or Notice No. 168A. You may also reach the 
relevant docket through the Regulations.gov search page at https://www.regulations.gov. For information on how to use Regulations.gov, 
click on the site's ``Help'' tab.
    All posted comments will display the commenter's name, organization 
(if any), city, and State, and, in the case of mailed comments, all 
address information, including email addresses. TTB may omit voluminous 
attachments or material that it considers unsuitable for posting.
    You may view copies of the proposed rules, the related temporary 
rules, and any electronic or mailed comments TTB receives about them by 
appointment at the TTB Information Resource Center, 1310 G Street NW., 
Washington, DC 20005. You may also obtain copies for 20 cents per 8.5- 
x 11-inch page. Contact TTB's information specialist at the above 
address or by telephone at (202) 453-2270 to schedule an appointment or 
to request copies of comments or other materials.

Regulatory Flexibility Act, Paperwork Reduction Act, and Executive 
Order 12866

    Since the regulatory text proposed in this notice of proposed 
rulemaking is identical to that contained in the companion temporary 
rule published elsewhere in this issue of the Federal Register, the 
analyses contained in the preamble of the temporary rule concerning the 
Regulatory Flexibility Act, the Paperwork Reduction Act, and Executive 
Order 12866 also apply to this proposed rule.

Drafting Information

    Kara Fontaine and Michael Hoover of the Regulations and Rulings 
Division drafted this document with the assistance of other Alcohol and 
Tobacco Tax and Trade Bureau personnel.

List of Subjects

27 CFR Part 24

    Administrative practice and procedure, Cider, Claims, Electronic 
funds transfers, Excise taxes, Exports, Food additives, Fruit juices, 
Hard Cider, Labeling, Liquors, Packaging and containers, Reporting and 
recordkeeping requirements, Research, Scientific equipment, Spices and 
flavorings, Surety bonds, Vinegar, Warehouses, Wine.

27 CFR Part 27

    Alcohol and alcoholic beverages, Beer, Cosmetics, Customs duties 
and inspections, Electronic funds transfers, Excise taxes, Imports, 
Labeling, Liquors, Packaging and containers, Reporting and 
Recordkeeping requirements, Wine.

Proposed Amendments to the Regulations

    For the reasons discussed in the preamble, TTB proposes to amend 27 
CFR chapter I, parts 24 and 27, as follows:

PART 24--WINE

0
1. The authority citation for part 24 continues to read as follows:

    Authority:  5 U.S.C. 552(a); 26 U.S.C. 5001, 5008, 5041, 5042, 
5044, 5061, 5062, 5121, 5122-5124, 5173, 5206, 5214, 5215, 5351, 
5353, 5354, 5356, 5357, 5361, 5362, 5364-5373, 5381-5388, 5391, 
5392, 5511, 5551, 5552, 5661, 5662, 5684, 6065, 6091, 6109, 6301, 
6302, 6311, 6651, 6676, 7302, 7342, 7502, 7503, 7606, 7805, 7851; 31 
U.S.C. 9301, 9303, 9304, 9306.


Sec.  24.257  [Amended]

0
2. In Sec.  24.257:
0
a. Paragraph (a)(4) is amended by removing the date ``January 1, 2018'' 
each place it appears and adding in its place the date ``January 1, 
2019''; and
0
b. The Office of Management and Budget control number reference at the 
end of the section is amended by removing the phrase ``1513-0115 and 
1513-XXXX'' and adding in its place the phrase ``1513-0092 and 1513-
0138''.

PART 27--IMPORTATION OF DISTILLED SPIRITS, WINES, AND BEER

0
3. The authority citation for part 27 is revised 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.


Sec.  27.59  [Amended]

0
4. In Sec.  27.59, the Office of Management and Budget control number 
reference at the end of the section is amended by removing the phrase 
``number 1513-XXXX'' and adding in its place the phrase ``numbers 1513-
0092 and 1513-0138''.


[[Page 57395]]


    Signed: October 30, 2017.
John J. Manfreda,
Administrator.
    Approved: November 30, 2017.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade and Tariff Policy).
[FR Doc. 2017-26283 Filed 12-4-17; 8:45 am]
 BILLING CODE 4810-31-P