[Federal Register Volume 86, Number 7 (Tuesday, January 12, 2021)]
[Notices]
[Pages 2446-2448]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-00347]


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DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs

[212A2100DD/AACC003300/A0H901010.999900.253G]


Chippewa Cree Indians of the Rocky Boy's Reservation; Amendment 
to Liquor Control Ordinance

AGENCY: Bureau of Indian Affairs, Interior.

ACTION: Notice.

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SUMMARY: This notice publishes an amendment to the Liquor Ordinance of 
the Chippewa Cree Indians of the Rocky Boy's Indian Reservation of 
Montana (Chippewa Cree Tribe). The Chippewa Cree Tribe and the State of 
Montana have agreed to enter into a Montana Alcoholic Beverages Tax 
Agreement. The purposes of the Agreement are to minimize legal 
controversy and possible litigation over the taxation of alcoholic 
beverages within the exterior boundaries of the Rocky Boy's Reservation 
to mitigate the effects of dual taxation on the sale of alcoholic 
beverages by both the Tribe and the State, and to provide an effective 
means by which revenues generated by the state and tribal taxes on the 
sale of alcoholic beverages may be shared and distributed. In order to 
accomplish these purposes, the State and the Tribe agree that the same 
level of taxation will be imposed on the sale of alcoholic beverages 
both within and outside the boundaries of the Reservation. The 
Agreement requires the Tribe to adopt and keep in force an ordinance 
imposing taxes equal to Montana liquor excise and license taxes and 
beer, wine, and hard cider taxes sold within the exterior boundaries of 
the Rocky Boy's Indian Reservation.

DATES: This ordinance shall take effective on February 11, 2021.

FOR FURTHER INFORMATION CONTACT: Ms. Jo-Ellen Cree, Tribal Operations 
Officer, Rocky Mountain Regional Office, Bureau of Indian Affairs, 2021 
Fourth Avenue North, Billings, Montana 59101, Telephone: (406) 247-7964 
or (406) 247-7988, Fax: (406) 247-7566; or Ms. Laurel Iron Cloud, 
Chief, Division of Tribal Government Services, Office of Indian 
Services, Bureau of Indian Affairs, 1849 C Street NW, MS-4513-MIB, 
Washington, DC 20240, Telephone: (202) 513-7641.

SUPPLEMENTARY INFORMATION: Pursuant to the Act of August 15, 1953, 
Public Law 83-277, 67 Stat. 5886, 18 U.S.C. 1161, as interpreted by the 
Supreme Court in Rice v. Rehner, 463 U.S. 713 (1983), the Secretary of 
the Interior certifies and publishes in the Federal Register notice of 
adopted liquor control ordinances for the purpose of regulating liquor 
transactions in Indian country. The Chippewa Cree Tribe adopted Tribal 
Resolution No. 52-20 on May 7, 2020, and adopted Ordinance No. 01-20, 
Governing the Taxation of Alcoholic Beverages Sold on within the Rocky 
Boy's Indian Reservation. This amendment to the liquor control 
ordinance is incorporated and codified by Ordinance No. 01-20 within 
Title XVII, Chapter 7, of the Chippewa Cree Tribal Law and Order Code 
and codified within Chapter 6 of the Chippewa Cree Law and Order Code 
Alcoholic Beverage Control Ordinance.
    This notice is published in accordance with the delegated authority 
by the Secretary of the Interior to the Assistant Secretary--Indian 
Affairs. I certify that the Chippewa Cree Business Committee duly 
adopted the amendment to the Chippewa Cree Tribe Liquor Control 
Ordinance by Tribal Resolution No. 52-20 on May 7, 2020.
    The Chippewa Cree Tribe of the Rocky Boy's Indian Reservation 
Liquor Ordinance, Chapter 6 reads as follows:

``Taxation of Alcoholic Beverages, Ordinance No. 01-20, Liquor Excise 
and Licenses, Beer, Wine, and Hard Cider''

Sec. 101. Declaration of Policy

    1. This Ordinance is enacted pursuant to the inherent governing 
power of the Chippewa Cree Tribe and under authority recognized by 
federal law in accordance with provisions of the Constitution and 
Bylaws of the Tribe. All persons, business, lands, transactions, and 
activities either relocated on or occurring within the exterior 
boundaries of the Rocky Boy's Indian Reservation shall be subject to 
provisions of this Ordinance.
    2. This Ordinance is enacted for the protection of the health and 
safety, and to promote the general welfare of the people residing 
within the exterior boundaries of the Rocky Boy's Indian Reservation. 
All its provisions shall be liberally construed for the accomplishment 
of that purpose.
    3. The Chippewa Cree Business Committee believes that enactment of 
this Ordinance governing alcoholic beverages through taxation within 
the exterior boundaries of the Rocky Boy's Indian Reservation will help 
provide revenue for the continued operation of Tribal government.
    4. This Ordinance shall impose taxes equal to the Montana liquor 
excise and license taxes and beer, wine, and hard cider taxes sold 
within the exterior boundaries of the Rocky Boy's Indian Reservation, 
pursuant to its power under Article VI, Section 1 (j) of the 
Constitution of the Chippewa Cree Tribe.
    5. The overall purpose of this Ordinance is to aid in the 
collection of taxes and ensure that alcoholic beverages are not subject 
to both the State and the tribal tax. The provisions of this Ordinance 
must be broadly construed to accomplish this purpose.

Sec. 102. Definitions

    As used in this Chapter, unless otherwise noted, the following 
definitions apply:
    1. ``Alcohol'' means ethyl alcohol, also called ethanol, or the 
hydrated oxide of ethyl.
    2. ``Alcoholic beverage'' means a compound produced and sold for 
human consumption as a drink that contains more than 0.5% of alcohol by 
volume.
    3. ``Agreement'' means the Chippewa Cree--Montana Alcoholic 
Beverage Tax Agreement.
    4. ``Beer'' means:

[[Page 2447]]

    a. A malt beverage containing not more than 8.75% of alcohol by 
volume; or
    b. An alcoholic beverage containing not more than 8.75% of alcohol 
by volume:
    i. that is made by alcoholic fermentation of an infusion of 
decoction, or a combination of both, in potable brewing water, or 
malted cereal grain; and
    ii. in which the sugars used for fermentation of the alcoholic 
beverage are at least 75% derived from malted cereal grain measured as 
a percentage of the total dry weight of the fermentable ingredients.
    5. ``Beer importer'' means a person other than a brewer who imports 
malt beverages.
    6. ``Brewer'' means a person who produces malt beverages.
    7. ``Caffeinated or stimulant-enhanced malt beverage'' means:
    a. a beverage:
    i. that is fermented in a manner similar to beer and from which 
some or all of the fermented alcohol has been removed and replaced with 
distilled ethyl alcohol;
    ii. that contains at least 0.5% of alcohol by volume;
    iii. that is treated by processing, filtration, or another method 
of manufacture that is not generally recognized as a traditional 
process in the production of beer as described in 27 CFR 25.5; and
    iv. to which is added caffeine or other stimulants, including but 
not limited to guarana, ginseng, and taurine; or
    b. a beverage:
    i. that contains at least 0.5% of alcohol by volume;
    ii. that is treated by processing, filtration, or another method of 
manufacture that is not generally recognized as a traditional process 
in the production of beer as described in 27 CFR 25.55;
    iii. to which is added a flavor or other ingredient containing 
alcohol, except for a hop extract;
    iv. to which is added caffeine or other stimulants, including but 
not limited to guarana, ginseng, and taurine;
    v. for which the producer is required to file a formula for 
approval with the United States Alcohol and Tobacco Tax and Trade 
Bureau pursuant to 27 CFR 25.55; and
    vi. that is not exempt pursuant to 27 CFR 25.55(f).
    8. ``Distributer'' means any person:
    a. who imports liquor, beer, or wine for sale, use or distribution, 
or
    b. who engages in the wholesome distribution of liquor, beer, or 
wine within the Reservation.
    9. ``Hard cider'' means an alcoholic beverage that is made from the 
alcoholic fermentation of the juices of apples or pears and that 
contains not less than 0.5% of alcohol by volume and not more than 6.9% 
of alcohol by volume, including but not limited to flavored, sparkling, 
or carbonated cider.
    10. ``Import'' means to transfer beer or table wine from outside 
the state of Montana into the state of Montana.
    11. ``Liquor'' means an alcoholic beverage except beer and table 
wine. The term includes a caffeinated or stimulant-enhanced malt 
beverage.
    12. ``Malt beverage'' means an alcoholic beverage made by the 
fermentation of an infusion or decoction, or a combination of both, in 
potable brewing water, of malted barley with or without hops or their 
parts or their products and with or without other malted cereals and 
with or without the additional of unmalted or prepared cereals, other 
carbohydrates, or products prepared from carbohydrates and with or 
without other wholesome products suitable for human food consumption.
    13. ``Person'' means any person, firm, association, joint-stock 
company, syndicate, or corporation.
    14. ``Posted price'' means the wholesale price of liquor for sale 
to persons who hold liquor licenses.
    15. ``Proof gallon'' means a U.S. gallon of liquor at 60 degrees on 
the Fahrenheit scale that contains 50% of alcohol by volume.
    16. ``Sacramental wine'' means wine that contains more than 0.5% 
but not more than 24% of alcohol by volume that is manufactured and 
sold exclusively for use as sacramental wine or for other religious 
purposes.
    17. ``State'' means the State of Montana.
    18. ``Table wine'' means wine that contains not more than 16% of 
alcohol by volume and includes cider.
    19. ``Table wine distributor'' means a person importing into or 
purchasing in Montana table wine or sacramental wine for sale or resale 
to retailers licensed in Montana.
    20. ``Tribe'' means the Chippewa Cree Tribe of the Rocky Boy's 
Indian Reservation.
    21. ``Wholesaler'' means any person who engages in the wholesale 
distribution of liquor, beer, or wine within the Reservation.
    22. ``Wine'' means an alcoholic beverage made from or containing 
the normal alcoholic fermentation of the juice or sound, ripe fruit or 
other agricultural products without addition or abstraction, except as 
may occur in the usual cellar treatment of clarifying and aging, and 
that contains more than 0.5% but not more than 24% of alcohol by 
volume. Wine may be ameliorated to correct natural deficiencies, 
sweetened, and fortified in accordance with applicable federal 
regulations and the customs and practices of the industry. Other 
alcoholic beverages not defined in this subsection but made in the 
manner of wine and labeled and sold as wine in accordance with federal 
regulations are also wine.

Sec. 103. Liquor Excise Tax

    1. The Tribe (with the assistance by the State pursuant to the 
Agreement) shall collect at the time of the sale and delivery of any 
liquor as authorized under any provision of the laws of the Chippewa 
Cree Tribe an excise tax at the rate that is the percent of the retail 
selling price determined in accordance with the following schedule 
based on all liquor sold and delivered in the state by a company that 
manufactured, distilled, rectified, bottled, or processed the liquor 
and sold the specified number of proof gallons of liquor nationwide in 
the calendar year preceding imposition of the tax pursuant to this 
section:

------------------------------------------------------------------------
                                                                Tax rate
                    Nationwide production                         (%)
------------------------------------------------------------------------
Less than 20,000 proof gallons...............................          3
20,000 to 50,000 proof gallons...............................          8
50,001 to 200,000 proof gallons..............................       13.8
Over 200,000 proof gallons...................................         16
------------------------------------------------------------------------

    2. The tax imposed pursuant to subsection (1) is due no later than 
the 10th day of each month.
    3. The tax imposed in this subsection shall be collected by the 
Tribe (with the assistance by the State pursuant to the Agreement).

Sec. 104. License Tax on Liquor

    The Tribe (with the assistance of the State pursuant to the 
Agreement) may collect at the time of sale and delivery of any liquor 
of:
    1. 10% of the retail selling price on all liquor sold and delivered 
within the Reservation by a company that manufactured, distilled, 
rectified, bottled, or processed and that sold more than 200,000 proof 
gallons of liquor nationwide in the calendar year preceding imposition 
of the tax pursuant to this section;
    2. 8.6% of the retail selling price on all liquor sold and 
delivered within the Reservation by a company that manufactured, 
distilled, rectified, bottled, or processed and that sold more than 
50,000 proof gallons buy not more than 200,000 proof gallons of liquor 
nationwide in the calendar year preceding imposition of the tax 
pursuant to this section;

[[Page 2448]]

    3. 2% of the retail selling price on all liquor sold and delivered 
within the Reservation by a company that manufactured, distilled, 
rectified, bottled, or processed and that sold not more than 50,000 
proof gallons of liquor nationwide in the calendar year preceding 
imposition of tax pursuant to this section;
    4. The license tax must be charged and collected on all liquor 
produced in or brought within the Reservation and taxed by the Tribe. 
The retail selling price must be computed by adding to the cost of the 
liquor the Tribe markup of 40.5% for all liquor other than sacramental 
wine, for which the markup must be 20% and fortified wine containing 
more than 16% but not more than 24% alcohol by volume, for which markup 
must be 51%. The license tax must be figured in the same manner as the 
Tribe excise tax and is in addition to the Tribe excise tax.
    5. The licensee tax imposed in this subsection shall be collected 
by the Tribe (with the assistance by the State pursuant to the 
Agreement).

Sec. 105. Beer Exercise Tax

    1. A tax is imposed on each barrel of 31 gallons of beer sold on 
the Reservation by a wholesaler. A barrel of beer equals 31 gallons. 
The tax is based upon the total number of barrels of beer produced by a 
brewer in a year. A brewer who produces less than 10,000 barrels of 
beer a year is taxed on the following increments of production:
    a. up to 5,000 barrels, $1.30;
    b. 5,001 barrels to 10,000 barrels, $2.30.
    c. The tax on beer sold for a brewer who produces over 10,000 
barrels is $4.30.
    2. The Tribe shall compute the tax due on beer sold in containers 
other than barrels or in barrels of more or less capacity than 31 
gallons.
    3. The tax imposed pursuant to subsection (1) is due at the end of 
each month from the wholesaler upon beer sold by the wholesaler during 
the month.
    4. The tax imposed in this subsection shall be collected by the 
Tribe (with the assistance by the State pursuant to the Agreement).

Sec. 106. Wine and Hard Cider Tax

    1. A tax of 27 cents per liter is imposed on sacramental wine and 
table wine, except hard cider, imported by a table wine distributor and 
on table wine shipped directly to consumers or licensed retailers by a 
winery registered or licensed.
    2. A tax of 3.7 cents per liter is imposed on hard cider imported 
by a table wine distributor and on hard cider shipped directly to 
licensed retailers by a winery licensed.
    3. The tax imposed pursuant to subsection (1) is due on or before 
the 15th day of each month for sales in the previous month.
    4. The tax imposed in this subsection shall be collected by the 
Tribe (with the assistance by the State pursuant to the Agreement).

Sec. 107. Uniformed Penalty and Interest Assessments for Violation of 
Tax

    A person who fails to pay an imposed tax by due date, including any 
extension of time allowed, shall be assessed a late filing penalty. The 
penalty is greater of $50 or 5% of the tax due for each month during 
which there is a failure to file return or report, not to exceed an 
amount up to 25% of the tax due. The late filing penalty is calculated 
from the due date or extended due date. The penalty is computed only on 
the net amount of tax due, if any, as of the original due date or 
extended due date, after credit has been given for amounts paid through 
withholding, estimated tax payments, or other credits claimed on the 
return. The penalty and interest imposed in this subsection shall be 
collected by the Tribe (with the assistance by the State pursuant to 
the Agreement).

Sec. 108. Powers Reserved to Chippewa Cree Business Committee

    Nothing in this Ordinance is intended to restrict the Tribe from 
prohibiting the sale and consumption of liquor or of all alcoholic 
beverages within the exterior boundaries of the Rocky Boy's Indian 
Reservation. Furthermore all powers relating to regulation and control 
over alcoholic beverages which are not expressly delegated in this 
Ordinance shall be retained by the Chippewa Cree Business Committee.

Sec. 109. Exemptions

    Nothing in this Ordinance restricts the Chippewa Cree Business 
Committee from establishing exemptions within this Ordinance. Any 
exemptions shall be adopted by Resolution.

Sec. 110. Sovereign Immunity Preserved

    Nothing in this Ordinance is intended or shall be construed as a 
waiver of sovereign immunity of the Chippewa Cree Tribe.

Sec. 111. Enforcement

    The Tribe may commence and prosecute to final determination in the 
Chippewa Cree Tribal Court or any court of competent jurisdiction an 
action to collect taxes and penalties pursuant to this Ordinance.

Sec. 112. Application of Federal Laws

    Federal law currently prohibits the introduction of alcoholic 
beverages into Indian country (18 U.S.C. 1154), and expressly delegates 
to the Tribes the decision regarding when and to what extent liquor 
transactions shall be permitted (18 U.S.C Sec.  1661). Persons involved 
in acts and transactions not authorized by this Chapter shall be 
subject to federal criminal prosecution, as well as civil legal action 
in the courts of the United States.

Sec. 113. Severability

    Should any section, clause, sentence, or provision of this 
Ordinance be held invalid for any reason, such hold or decree shall not 
be construed as affecting the validity of any of the remaining portions 
hereof, it being declared that the Chippewa Cree Business Committee 
would have adopted the remainder of this Ordinance, notwithstanding the 
invalidity of any such Section, clause, sentence, or provision.

Sec. 114. Amendment

    Amendments to this Ordinance may be made only the Chippewa Cree 
Business Committee of the Chippewa Cree Tribe.

Sec. 115. Effective Date

    This Ordinance was adopted by the Chippewa Cree Business by 
Resolution No. 52-20 and is effective on the 6th day of June, 2020.

Tara Sweeney,
Assistant Secretary--Indian Affairs.
[FR Doc. 2021-00347 Filed 1-11-21; 8:45 am]
BILLING CODE 4337-15-P