85512 Federal Register / Vol. 85, No. 249 / Tuesday, December 29, 2020 / Rules and Regulations 

economic impact on a substantial 

number of small entities under the 

criteria of the Regulatory Flexibility Act. 

Environmental Review 

The FAA has determined that this 

action qualifies for categorical exclusion 

under the National Environmental 

Policy Act in accordance with FAA 

Order 1050.1F, ‘‘Environmental 

Impacts: Policies and Procedures,’’ 

paragraph 5–6.5a. This airspace action 

is not expected to cause any potentially 

significant environmental impacts, and 

no extraordinary circumstances exist 

that warrant preparation of an 

environmental assessment. 

Lists of Subjects in 14 CFR Part 71 

Airspace, Incorporation by reference, 

Navigation (air). 

Adoption of the Amendment 

In consideration of the foregoing, the 

Federal Aviation Administration 

amends 14 CFR part 71 as follows: 

PART 71—DESIGNATION OF CLASS A, 

B, C, D, AND E AIRSPACE AREAS; AIR 

TRAFFIC SERVICE ROUTES; AND 

REPORTING POINTS 

■ 1. The authority citation for part 71 

continues to read as follows: 

Authority: 49 U.S.C. 106(f), 106(g); 40103, 

40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, 

1959–1963 Comp., p. 389. 

§ 71.1 [Amended] 

■ 2. The incorporation by reference in 

14 CFR 71.1 of FAA Order 7400.11E, 

Airspace Designations and Reporting 

Points, dated July, 21, 2020 and 

effective September 15, 2020, is 

amended as follows: 

Paragraph 5000 Class D Airspace. 

* * * * * 

AWP CA D Hayward, CA [Amended] 

Hayward Executive Airport, CA 

(Lat. 37°39′32′′ N, long. 122°07′18′′ W) 

Metropolitan Oakland International Airport 

(Lat. 37°43′17′′ N, long. 122°13′16′′ W) 

That airspace extending upward from the 

surface to, but not including, 1,500 feet MSL 

within a 3.5-mile radius of the Hayward 

Executive Airport, Hayward CA excluding 

that portion within the Metropolitan Oakland 

International Airport, Class C airspace. This 

Class D airspace is effective during the 

specific dates and times established in 

advance by a Notice to Airmen. The effective 

date and time will thereafter be continuously 

published in the Chart Supplement. 

Paragraph 6002 Class E Airspace 

Designated as Surface Areas. 

* * * * * 

AWP CA E2 Hayward, CA [New] 

Hayward Executive Airport, CA 

(Lat. 37°39′32′′ N, long. 122°07′18′′ W) 

Metropolitan Oakland International Airport 

(Lat. 37°43′17′′ N, long. 122°13′16′′ W) 

That airspace extending upward from the 

surface to but not including 1,500 feet MSL 

within a 3.5-mile radius of the Hayward 

Executive Airport, Hayward CA excluding 

that portion within the Metropolitan Oakland 

International Airport, Class C airspace. This 

Class E airspace is effective during the 

specific dates and times established in 

advance by a Notice to Airmen. The effective 

date and time will thereafter be continuously 

published in the Chart Supplement. 

Paragraph 6004 Class E Airspace Areas 

Designated as an Extension to a Class D or 

Class E Surface Area. 

* * * * * 

AWP CA E4 Hayward, CA [New] 

Hayward Executive Airport, CA 

(Lat. 37°39′32′′ N, long. 122°07′18′′ W) 

That airspace extending upward from the 

surface 1.2 miles each side of the 120° 

bearing from the Hayward Executive Airport 

extending from the Class D and E2 airspace 

3.5-mile radius to 9 miles from the airport. 

Issued in Seattle, Washington, on 

December 21, 2020. 

Brian Ochs, 

Acting Group Manager, Operations Support 

Group, Western Service Center. 

[FR Doc. 2020–28637 Filed 12–28–20; 8:45 am] 

BILLING CODE 4910–13–P 

SECURITIES AND EXCHANGE 

COMMISSION 

17 CFR Part 200 

[Release No. 33–10900; 34–90623; IA–5644; 

IC–34134] 

Delegation of Authority to Director of 

the Division of Enforcement 

AGENCY: Securities and Exchange 

Commission. 

ACTION: Final rule. 

SUMMARY: The Securities and Exchange 

Commission (‘‘Commission’’) is revising 

its regulations with respect to the 

delegations of authority to the Director 

of the Division of Enforcement. These 

revisions are the result of the 

Commission’s experience with its 

nonpublic investigations, litigation in 

Federal court, and disgorgement and 

Fair Fund plans in administrative and 

cease-and-desist proceedings instituted 

by the Commission. The revisions are 

intended to conserve Commission 

resources and make Commission 

operations more efficient by delegating 

to the Director the discretion to take the 

actions described below. 

DATES: Effective December 29, 2020. 

FOR FURTHER INFORMATION CONTACT: 

Joseph K. Brenner, Chief Counsel, at 

(202) 551–5055, Division of 

Enforcement, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–6553. 

SUPPLEMENTARY INFORMATION: 

Background 

The Commission is revising its 

delegations of authority to the Director 

of the Division of Enforcement as a 

result of its experience with its 

nonpublic investigations, litigation in 

Federal court, and disgorgement and 

Fair Fund plans in administrative and 

cease-and-desist proceedings instituted 

by the Commission. The revisions are 

intended to conserve Commission 

resources and make Commission 

operations more efficient. Congress has 

authorized such delegation by Public 

Law 87–592, 76 Stat. 394, 15 U.S.C. 

78d–1(a), which provides that the 

Commission ‘‘shall have the authority to 

delegate, by published order or rule, any 

of its functions to . . . an employee or 

employee board, including functions 

with respect to hearing, determining, 

ordering, certifying, reporting, or 

otherwise acting as to any work, 

business or matter.’’ 

The Commission is authorized to 

bring actions in United States District 

Court seeking injunctive and other relief 

for violations of the Federal securities 

laws and regulations. See Section 20(b) 

of the Securities Act of 1933 (15 U.S.C. 

77t(b)); Section 21(d)(1) of the Securities 

Exchange Act of 1934 (15 U.S.C. 

78u(d)(1)); Section 42(d) of the 

Investment Company Act of 1940 (15 

U.S.C. 80a–41(d)); Section 209(d) of the 

Investment Advisers Act of 1940 (15 

U.S.C. 80b–9(d)). With respect to 

Federal court litigation, the Commission 

routinely authorizes its staff to 

commence litigation against particular 

parties seeking particular relief. The 

addition of 17 CFR 200.30–4(a)(18) will 

allow the Director to carry out these 

authorizations more efficiently by taking 

the following actions: (i) Dismissing 

claims against entities that are defunct, 

the subject of bankruptcy proceedings, 

or without material assets; and (ii) 

dismissing claims against persons or 

entities that are duplicative of other 

pending claims against those persons or 

entities. 

The Commission is authorized to 

conduct investigations concerning 

potential violations of the Federal 

securities laws and regulations and, as 

part of those investigations, to require 

the production of records. See Section 

19(c) of the Securities Act of 1933 (15 

U.S.C. 77s(c)); Section 21(b) of the 

Securities Exchange Act of 1934 (15 

U.S.C. 78u(b)); Section 42(b) of the 

Investment Company Act of 1940 (15 


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Federal Register / Vol. 85, No. 249 / Tuesday, December 29, 2020 / Rules and Regulations 85513 

U.S.C. 80a–41(b)); Section 209(b) of the 

Investment Advisers Act of 1940 (15 

U.S.C. 80b–9(b)). Pursuant to Section 

21(h)(4)(A) of the Securities Exchange 

Act of 1934, (15 U.S.C. 78u(h)(4)(A)), 

United States District Courts are 

authorized to issue orders delaying prior 

notice of a subpoena for records subject 

to the Right to Financial Privacy Act (12 

U.S.C. 3401 et seq.) and prohibiting 

financial institutions from disclosing 

that records have been sought or 

obtained. The addition of 17 CFR 

200.30–4(a)(19) will authorize the 

Director to file applications in United 

States District Court with respect to 

such orders. 

The Commission is authorized to 

deny, suspend the effective date of, 

suspend for a period not exceeding 12 

months, or revoke the registration of a 

security if the Commission finds, on the 

record after notice and opportunity for 

hearing, that the issuer of the security 

has failed to comply with the Federal 

securities laws or regulations. See 

Section 12(j) of the Securities Exchange 

Act of 1934 (15 U.S.C. 78l(j)). The 

Commission also is authorized to 

suspend trading in any security (other 

than an exempted security) for a period 

not exceeding ten business days if, in its 

opinion, the public interest and 

protection of investors so require. See 

Section 12(k)(1)(A) of the Securities 

Exchange Act of 1934 (15 U.S.C. 

78l(k)(1)(A)). The addition of 17 CFR 

200.30–4(a)(20) will authorize the 

Director to institute public 

administrative proceedings pursuant to 

Section 12(j) with respect to a security 

based on the issuer’s alleged failure to 

file required periodic reports and, in 

connection with the institution of such 

proceedings, issue an order pursuant to 

Section 12(k)(1)(A). 

In administrative and cease-and-desist 

proceedings instituted by the 

Commission to enforce the Federal 

securities laws, the Commission, in the 

exercise of its discretion, may distribute 

to investor victims amounts collected as 

disgorgement, prejudgment interest, and 

civil money penalties. See Section 308 

of the Sarbanes-Oxley Act of 2002 (15 

U.S.C. 7261). The addition of § 200.30– 

4(a)(21) will improve the efficiency of 

the Commission’s distribution processes 

by authorizing the Director to: (i) Grant 

extensions of time to submit proposed 

distribution plans to the Commission; 

(ii) appoint tax administrators, pursuant 

to a Commission-approved omnibus 

order; (iii) publish notice of proposed 

plans, including plans that omit 

elements required by 17 CFR 201.1101, 

Rule 1101 of the Commission’s Rules on 

Fair Fund and Disgorgement Plans; (iv) 

issue orders adopting plans as to which 

no negative comments have been 

received; (v) approve disbursements to 

investors in accordance with the plans; 

(vi) approve payment of the fees and 

expenses of administration; and (vii) 

approve final fund accountings. 

The Division of Enforcement will 

report periodically to the Commission 

on the Director’s use of these 

delegations. Notwithstanding these 

delegations, the Director may submit 

any matter he or she believes 

appropriate to the Commission. 

Furthermore, any action taken by the 

Director pursuant to delegated authority 

is subject to Commission review as 

provided by 17 CFR 201.430 and 

201.431 and 15 U.S.C. 78d–1(b), Rules 

430 and 431 of the Commission’s Rules 

of Practice. 

Administrative Law Matters 

The Commission finds, in accordance 

with the Administrative Procedure Act 

(‘‘APA’’), that this amendment relates 

solely to agency organization, 

procedure, or practice. Title 5 U.S.C. 

553(b)(3)(A). Accordingly, the APA’s 

provisions regarding notice of 

rulemaking and opportunity for public 

comment are not applicable. These 

changes are therefore effective on 

December 29, 2020. In accord with the 

APA, we find that there is good cause 

to establish an effective date less than 

30 days after publication of these rules. 

5. U.S.C. 553(d). These rules do not 

substantially affect the rights or 

obligations of non-agency parties and 

pertain to increasing efficiency of 

internal Commission operations. For the 

same reasons, the provisions of the 

Small Business Regulatory Enforcement 

Fairness Act are not applicable. See 5 

U.S.C. 804(3)(C) (the term ‘‘rule’’ does 

not include ‘‘any rule of agency 

organization, procedure, or practice that 

does not substantially affect the rights or 

obligations of non-agency parties’’). 

Additionally, the provisions of the 

Regulatory Flexibility Act, 5 U.S.C. 60 et 

seq., which apply only when notice and 

comment are required by the APA or 

other law, are not applicable. See 5 

U.S.C. 601(2). These amendments do 

not contain any collection of 

information requirements as defined by 

the Paperwork Reduction Act of 1995. 

See 5 CFR 1320.3. Further, because 

these amendments impose no new 

burdens on private parties, the 

Commission does not believe that the 

amendments will have any impact on 

competition for purposes of Section 

23(a)(2) of the Exchange Act. 15 U.S.C. 

78w(a)(2). 

Statutory Authority 

This rule is adopted pursuant to 

statutory authority granted to the 

Commission, including Section 19 of 

the Securities Act, 15 U.S.C. 77s; 

Sections 4A, 4B, and 23 of the Exchange 

Act, 15 U.S.C. 78d–1, 78d–2, and 78w; 

Section 38 of the Investment Company 

Act, 15 U.S.C. 80a–37; Section 211 of 

the Investment Advisers Act, 15 U.S.C. 

80b–11; and Section 3 of the SarbanesOxley Act, 15 U.S.C. 7202. 

List of Subjects in 17 CFR Part 200 

Administrative practice and 

procedure, Authority delegations 

(Government agencies). 

Text of Amendments 

For the reasons set out in the 

preamble, the Commission is amending 

title 17, chapter II of the Code of Federal 

Regulations as follows: 

PART 200—ORGANIZATION; 

CONDUCT AND ETHICS; AND 

INFORMATION AND REQUESTS 

Subpart A—Organization and Program 

Management 

■ 1. The authority citation for part 200, 

subpart A, continues to read, in part, as 

follows: 

Authority: 15 U.S.C. 77c, 77o, 77s, 77z–3, 

77sss, 78d, 78d–1, 78d–2, 78o–4, 78w, 

78ll(d), 78mm, 80a–37, 80b–11, 7202, and 

7211 et seq., unless otherwise noted. 

* * * * * 

■ 2. Section 200.30–4 is amended by 

adding paragraphs (a)(18) through (21) 

to read as follows: 

§ 200.30–4 Delegation of authority to 

Director of Division of Enforcement. 

* * * * * 

(a) * * * 

(18) With respect to enforcement 

proceedings in Federal court, to: 

(i) Dismiss claims against entities that 

are defunct, the subject of Federal or 

foreign bankruptcy proceedings, or 

without material assets; and 

(ii) Dismiss claims against persons or 

entities that duplicate or overlap with 

other pending claims against those 

persons or entities, unless the dismissal 

would involve claims requiring a higher 

level of intent than that required by the 

remaining claims, result in a reduction 

of disgorgement available for the claims 

in the Commission’s complaint, or 

eliminate the statutory basis for a bar 

sought in the Commission’s complaint. 

(19) To file applications in Federal 

court to seek an order pursuant to 

section 21(h)(2) of the Securities 

Exchange Act of 1934 (15 U.S.C. 

78u(h)(2)) in connection with 


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85514 Federal Register / Vol. 85, No. 249 / Tuesday, December 29, 2020 / Rules and Regulations 

investigations pursuant to section 19(c) 

of the Securities Act of 1933 (15 U.S.C. 

77s(c)), section 21(b) of the Securities 

Exchange Act of 1934 (15 U.S.C. 78u(b)), 

section 42(b) of the Investment 

Company Act of 1940 (15 U.S.C. 80a– 

42(b)), and section 209(b) of the 

Investment Advisers Act of 1940 (15 

U.S.C. 80b–9(b)). 

(20) To institute proceedings pursuant 

to section 12(j) of the Securities 

Exchange Act of 1934 (15 U.S.C. 78l(j)) 

with respect to a security based on the 

issuer’s alleged failure to file required 

periodic reports and, in connection with 

the institution of such proceedings, 

issue orders pursuant to section 

12(k)(1)(A) of the Securities Exchange 

Act of 1934 (15 U.S.C. 78l(k)(1)(A)). 

(21) With respect to disgorgement 

funds and Fair Fund plans established 

in administrative or cease-and-desist 

proceedings instituted by the 

Commission pursuant to the Federal 

securities laws, to: 

(i) Grant extensions of time to submit 

proposed distribution plans to the 

Commission; 

(ii) Appoint tax administrators, 

pursuant to a Commission-approved 

omnibus order; 

(iii) Publish notice of proposed plans, 

including plans that omit elements 

required by § 201.1101 of this chapter 

(Rule 1101 of the Rules on Fair Fund 

and Disgorgement Plans); 

(iv) Issue orders adopting plans as to 

which no negative comments have been 

received; 

(v) Approve disbursements to 

investors in accordance with the plans; 

(vi) Approve payment of the fees and 

expenses of administration; and 

(vii) Approve final fund accountings. 

* * * * * 

By the Commission. 

Dated: December 10, 2020. 

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2020–27537 Filed 12–28–20; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF THE TREASURY 

Alcohol and Tobacco Tax and Trade 

Bureau 

27 CFR Parts 4, 5, and 7 

[Docket Nos. TTB–2019–0004 and TTB– 

2019–0005; T.D. TTB–165; Re: Notice Nos. 

182, 183, and 184] 

RIN 1513–AB56 and 1513–AC45 

Addition of New Standards of Fill for 

Wine and Distilled Spirits; Amendment 

of Distilled Spirits and Malt Beverage 

Net Contents Labeling Regulations 

AGENCY: Alcohol and Tobacco Tax and 

Trade Bureau, Treasury. 

ACTION: Final rule; Treasury decision. 

SUMMARY: This final rule amends the 

Alcohol and Tobacco Tax and Trade 

Bureau (TTB) regulations that govern 

wine and distilled spirits containers to 

add seven new standards of fill for wine 

and distilled spirits. Although TTB had 

originally proposed to generally 

eliminate the standards of fill for wine 

and distilled spirits, TTB is not 

adopting that proposal at this time. The 

amendments described in this final rule 

will provide bottlers with flexibility by 

allowing the use of the added container 

sizes, and will facilitate the movement 

of goods in domestic and international 

commerce, while also providing 

consumers broader purchasing options. 

TTB is also amending the labeling 

regulations for distilled spirits and malt 

beverages to reflect current policy by 

specifically stating in the regulations 

that distilled spirits may be labeled with 

the equivalent standard United States 

(U.S.) measure in addition to the 

mandatory metric measure, and that 

malt beverages may be labeled with the 

equivalent metric measure in addition 

to the mandatory U.S. measure. 

DATES: This final rule is effective 

December 29, 2020. 

FOR FURTHER INFORMATION CONTACT: 

Jennifer Berry, Alcohol and Tobacco 

Tax and Trade Bureau, Regulations and 

Rulings Division; telephone 202–453– 

1039, ext. 275. 

SUPPLEMENTARY INFORMATION: 

Background 

TTB Authority 

The Alcohol and Tobacco Tax and 

Trade Bureau (TTB) administers 

regulations setting forth standards of fill 

for containers of wine and distilled 

spirits products distributed within the 

United States. For wine, the authority to 

establish these standards is based on 

section 105(e) of the Federal Alcohol 

Administration Act (FAA Act), codified 

at 27 U.S.C. 205(e), which authorizes 

the Secretary of the Treasury to 

prescribe regulations relating to the 

‘‘packaging, marking, branding, and 

labeling and size and fill’’ of alcohol 

beverage containers ‘‘as will prohibit 

deception of the consumer with respect 

to such products or the quantity thereof 

* * *.’’ For distilled spirits, the 

authority to establish standards of fill is 

based on two provisions of law: (1) 

Section 205(e) of the FAA Act as 

discussed above, and (2) section 5301(a) 

of the Internal Revenue Code of 1986 

(IRC), codified at 26 U.S.C. 5301(a). 

Section 5301(a) of the IRC authorizes 

the Secretary of the Treasury to 

prescribe regulations ‘‘to regulate the 

kind, size, branding, marking, sale, 

resale, possession, use, and reuse of 

containers (of a capacity of not more 

than 5 wine gallons) designed or 

intended for use for the sale of distilled 

spirits * * *’’ when the Secretary 

determines that such action is necessary 

to protect the revenue. TTB administers 

these IRC and FAA Act provisions 

pursuant to section 1111(d) of the 

Homeland Security Act of 2002, as 

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. 

Current Standards of Fill for Wine 

The standards of fill for wine are 

contained in subpart H of part 4 of the 

TTB regulations (27 CFR part 4). The 

term ‘‘standard of fill’’ is used in the 

TTB regulations and in this document to 

refer to the authorized amount of liquid 

in the container, rather than the size or 

capacity of the container itself. For 

better readability, however, this 

document sometimes uses the terms 

‘‘size’’ or ‘‘container size’’ and 

‘‘standards of fill’’ interchangeably. 

Within subpart H, paragraph (a) of 

§ 4.72 (27 CFR 4.72(a)) authorizes the 

use of the following metric standards of 

fill for containers other than those 

described in paragraph (b) of that 

section: 

• 3 liters; 

• 1.5 liters; 

• 1 liter; 

• 750 milliliters; 

• 500 milliliters; 

• 375 milliliters; 

• 187 milliliters; 

• 100 milliliters; and 

• 50 milliliters. 

Paragraph (b) of § 4.72 states that wine 

may be bottled or packed in containers 

of 4 liters or larger if the containers are 

filled and labeled in quantities of even 

liters (4 liters, 5 liters, 6 liters, etc.). 


KHAMMOND on DSKJM1Z7X2PROD with RULES