80160 Federal Register / Vol. 89, No. 191 / Wednesday, October 2, 2024 / Proposed Rules 

1 JMPA’s request has been placed on the docket 

for this rulemaking, as well as attached as to Staff’s 

September 17, 2024, Briefing Memorandum: Safety 

Standard for Infant and Infant/Toddler Rockers; 

Supplemental Information; Notice of Availability 

and Request for Comment; Extension of Comment 

Period, available at: https://www.cpsc.gov/s3fspublic/Safety-Standard-for-Infant-and-InfantToddler-Rockers-Notice-of-Availability-andRequest-for-Comment.pdf?VersionId=

VKfNRsEI29yqGgHoacfb0MEMlhum5J5L. 

2On September 19, 2024, the Commission voted 

(4–1) to publish this notice. 

durable infant or toddler products. 

Under this statutory direction, the 

Commission published an NPR, Safety 

Standard for Infant and Infant/Toddler 

Rockers, to establish a safety standard 

for rockers to reduce the risk of death 

and injury associated with these 

products. 88 FR 73551 (Oct. 26, 2023). 

The NPR proposes incorporating by 

reference the 2022 version of the rockers 

voluntary standard, ASTM F3084–22, 

Standard Consumer Safety 

Specification for Infant and Infant/ 

Toddler Rockers, with modifications to 

make the standard more stringent, to 

further reduce the risk of injury 

associated with rockers. 

On August 22, 2024, the Commission 

published in the Federal Register an 

additional request for comment and a 

release of the underlying incident data, 

titled Safety Standard for Infant and 

Infant/Toddler Rockers; Supplemental 

Information; Notice of Availability and 

Request for Comment (NOA). The NOA 

sought comment on three items: (1) 

incorporation of the updated July 2024 

version of the voluntary standard for 

rockers—ASTM F3084–24; (2) incident 

reports underlying the data discussed in 

the NPR; and (3) an STL file of the 

firmness test fixture proposed in the 

NPR for gauging the firmness of a rocker 

seat. 

B. Request for Comment Period 

Extension 

On September 6, 2024, Lisa Trofe, 

Executive Director of the Juvenile 

Products Manufacturers Association 

(JPMA), on behalf of JPMA’s members 

and three companies that individually 

co-signed the request, submitted a 

request for a 90-day extension of the 

NOA comment period (JPMA request).1 2

The JPMA request asserts that the 30- 

day comment period is insufficient for 

stakeholders to provide meaningful 

feedback on the NOA and complete 

dataset because when first available on 

August 22, 2024, the STL file and 

underlying data was only viewable and 

not downloadable, and some documents 

did not become available for review 

until August 28. 

C. Assessment of the JPMA Request 

CPSC’s practice is to make available 

the underlying incident data that it is 

legally authorized to publicize. 

Stakeholders are currently able to 

review all underlying incident data that 

supports the NPR and submit comments 

on that data; therefore, there is no need 

for stakeholders to download the 

underlying incident data. The 

Commission agrees, though, that 

stakeholders may benefit from 

additional time to review the complete 

underlying incident dataset because 

some of the data became reviewable on 

August 28, 2024, rather than August 22 

as intended. Further, CPSC agrees with 

JPMA that the STL file is difficult to 

evaluate without downloading it, and 

that this file was not downloadable until 

September 9, 2024. 

An additional 90 days, totaling 4 

months (30 days plus 90 days), is 

unnecessary to assess the STL file and 

incident data, and provide feedback. 

However, CPSC is reopening the 

comment period for an extension of 45 

days from the closing date of September 

23, 2024. This reopening provides 

commenters not only additional time to 

review incident data, but also, in the 

assessment of CPSC’s technical staff, 

ample time to manufacture, test, and 

comment on the firmness test fixture 

proposed in the NPR and described in 

the STL file. 

D. Conclusion 

The Commission has considered 

JPMA’s request to reopen the comment 

period and staff’s assessment of the 

request. The comment period closed on 

September 23, 2024. To provide 

additional time for stakeholders to 

comment on the NOA, the Commission 

is reopening the comment period for an 

additional 45-days until November 7, 

2024. 

Alberta E. Mills, 

Secretary, Consumer Product Safety 

Commission. 

[FR Doc. 2024–22062 Filed 10–1–24; 8:45 am] 

BILLING CODE 6355–01–P 

DEPARTMENT OF THE TREASURY 

Alcohol and Tobacco Tax and Trade 

Bureau 

27 CFR Part 24 

[Docket No. TTB–2024–0005; Notice No. 

234] 

RIN 1513–AC47 

Modernization of Permit Application 

Requirements for Wine Premises 

AGENCY: Alcohol and Tobacco Tax and 

Trade Bureau, Treasury. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: In this notice of proposed 

rulemaking, the Alcohol and Tobacco 

Tax and Trade Bureau (TTB) proposes 

deregulatory amendments to its 

regulations to modernize and streamline 

the application requirements for wine 

premises. The proposed amendments 

also relax some reporting requirements 

associated with changes to the business 

of proprietors of wine premises. The 

proposed amendments are a result of 

TTB’s evaluation of its permit and 

registration application requirements 

and consideration of relevant public 

comments submitted to the Treasury 

Department in response to its request for 

recommendations concerning 

regulations that can be eliminated, 

modified, or streamlined to reduce 

burdens. TTB believes the amendments 

proposed in this document will 

significantly reduce the time needed to 

complete an application to establish and 

operate wine premises. 

DATES: Comments must be received on 

or before December 2, 2024. 

ADDRESSES: You may electronically 

submit comments to TTB on this 

proposal, and view copies of this 

document, its supporting materials, and 

any comments TTB receives on it within 

Docket No. TTB–2024–0005 as posted at 

https://www.regulations.gov. A direct 

link to that docket is available on the 

TTB website at https://www.ttb.gov/ 

wine/notices-of-proposed-rulemaking 

under Notice No. 234. Alternatively, 

you may submit comments via postal 

mail to the Director, Regulations and 

Ruling Division, Alcohol and Tobacco 

Tax and Trade Bureau, 1310 G Street 

NW, Box 12, Washington, DC 20005. 

Please see the Public Participation 

section of this document for further 

information on the comments requested 

regarding this proposal and on the 

submission, confidentiality, and public 

disclosure of comments. 

FOR FURTHER INFORMATION CONTACT: 

Christopher Forster-Smith, Regulations 

and Rulings Division, Alcohol and 


lotter on DSK11XQN23PROD with PROPOSALS1
Federal Register / Vol. 89, No. 191 / Wednesday, October 2, 2024 / Proposed Rules 80161 

Tobacco Tax and Trade Bureau, 1310 G 

Street NW, Box 12, Washington, DC 

20005; telephone (202) 453–1039, 

extension 150. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Background 

A. TTB Evaluation of Permit and 

Registration Application Requirements 

B. TTB Authority 

C. Relationship to Other Notices of 

Proposed Rulemaking 

II. Proposed Changes to the Regulations 

A. Operational Information Required for 

Wine Premises Application 

B. Premises Description and Security 

C. Statements of Interest 

D. 30-Day Filing Requirements for Certain 

Changes in the Business 

E. Changes in Trade Names 

F. Retention of Records Off-Premises 

III. Public Participation 

A. Comments Invited 

B. Submitting Comments 

C. Confidentiality and Public Disclosure of 

Comments 

IV. Regulatory Analyses and Notices 

A. Executive Order 12866 

B. Regulatory Flexibility Act 

C. Paperwork Reduction Act 

I. Background 

A. TTB Evaluation of Permit and 

Registration Application Requirements 

In fiscal year 2017, the Alcohol and 

Tobacco Tax and Trade Bureau (TTB) 

began an evaluation of the information 

TTB collects from applicants for permit 

and registration applications. The 

purpose was to identify ways to 

streamline the application process, 

reduce burden on the regulated 

industry, and ensure that the process 

collects only information that is 

necessary to meet the agency’s statutory 

obligations. TTB’s general approach was 

to identify information being collected 

that could be eliminated without 

hindering TTB’s ability to evaluate an 

applicant’s qualifications and to more 

narrowly focus the application 

questions to capture only information 

that is necessary for that purpose. 

Additionally, TTB considered whether 

applicants made any types of requests 

that TTB routinely approved such that 

it might be reasonable to amend the 

regulations to remove the need for such 

requests. 

During this same period, on June 14, 

2017, the Treasury Department 

(Treasury) published in the Federal 

Register (82 FR 27217) a Request for 

Information inviting members of the 

public to submit views and 

recommendations for Treasury 

regulations that can be eliminated, 

modified, or streamlined to reduce 

burdens. TTB reviewed comments 

received in response to this request and 

identified proposals that related to 

starting a new business in a TTBregulated industry, including the 

qualification process. 

Through TTB’s internal evaluation 

and consideration of the public input, 

TTB has identified deregulatory actions 

that TTB can take by amending 

regulations and also, where rulemaking 

is not required, by amending guidance 

and forms. While this document 

addresses wine premises, TTB is 

engaging in further rulemaking to 

address other regulated industries 

within the context of their respective 

statutory eligibility requirements. 

Specifically, TTB has already published 

rulemaking concerning the Internal 

Revenue Code (IRC) permit and 

registration application requirements for 

distilled spirits plants (and users and 

dealers of specially denatured alcohol 

and tax-free alcohol) and application 

requirements for Federal Alcohol 

Administration Act (FAA Act) basic 

permits (which are submitted by 

prospective wine producers and 

blenders, alcohol beverage importers 

and wholesalers, and beverage distilled 

spirits plants). See Notice No. 207, 

published in the Federal Register on 

December 3, 2021, at 86 FR 68573, as 

well as rulemaking concerning Brewer’s 

Notices filed with TTB under the IRC 

(Notice No. 212, published in the 

Federal Register on June 8, 2022, at 87 

FR 34819). 

With respect to wine premises, this 

document proposes to amend the 

regulations to reduce regulatory burden, 

increase industry flexibility, and 

eliminate or narrow the range of 

information that applicants must submit 

to TTB consistent with TTB’s statutory 

obligations under the IRC. The proposed 

amendments include: 

• Eliminating requirements to 

provide narrative descriptions of certain 

operations when applying to establish a 

wine premises. 

• More narrowly tailoring 

requirements to describe the wine 

premises to specifically correspond with 

statutory requirements, and 

consolidating requirements to provide 

descriptions of alternation operations as 

part of the general wine premises 

description. 

• Extending deadlines for reporting 

certain changes in the business from 30 

days to 60 days. 

• Allowing proprietors of wine 

premises to use new trade names by 

notifying TTB in lieu of filing an 

amended application. 

• Allowing proprietors of wine 

premises to maintain required records at 

a location other than the permitted 

premises without first obtaining TTB 

approval. 

Section II of this document includes 

more in-depth discussion of the 

proposed amendments. 

As noted above, TTB’s deregulatory 

strategy also includes streamlining its 

guidance and forms. TTB is 

concurrently engaged in a multiyear 

initiative to develop and deploy 

‘‘myTTB,’’ a single, online interface for 

all industry transactions with TTB, 

including qualification, label approval, 

and formula applications, as well as tax 

filings, payments, and claims. When 

complete, myTTB will provide both 

industry and TTB with online access to 

each industry member’s records, 

approvals, and filings, in a single 

system. With the use of myTTB, and the 

planned implementation of these newly 

streamlined requirements within 

myTTB, the bureau anticipates 

significant improvements to a permit 

applicant’s user experience and 

corresponding reductions in burden. 

B. TTB Authority 

The Federal Alcohol Administration 

Act (FAA Act, 27 U.S.C. 201, et seq.) 

and chapter 51 of the IRC, 26 U.S.C. 

chapter 51, require persons intending to 

engage in certain wine-related 

businesses to obtain a permit and/or 

permission to operate from the Secretary 

of the Treasury (Secretary) before 

beginning operations. Many proprietors 

of wine premises engage in operations 

that require both an approved permit 

application under the FAA Act and an 

approved application for a registry 

number under the IRC. As noted above, 

TTB has already published rulemaking 

proposing amendments to application 

requirements for FAA Act basic permit 

holders, which includes proprietors of 

bonded wine premises (see Notice No. 

207, published in the Federal Register 

on December 3, 2021, at 86 FR 68573). 

The amendments proposed in this 

document relate to the application 

requirements to establish and operate 

wine premises under the IRC, including 

requirements to report certain changes 

in the regulated businesses. 

The IRC requires that any person 

establishing premises for the 

production, blending, cellar treatment, 

storage, bottling, packaging, or 

repackaging of untaxpaid wine must, 

before commencing operations, make 

application to the Secretary, file a bond 

(subject to certain exceptions), and 

receive permission to operate. See 26 

U.S.C. 5351. Additionally, the IRC 

requires that any person bottling, 

packaging, or repackaging taxpaid wines 

must, before commencing operations, 

make application to the Secretary and 


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80162 Federal Register / Vol. 89, No. 191 / Wednesday, October 2, 2024 / Proposed Rules 

1For ease of reference, this rulemaking document 

will generally refer to proprietors of bonded 

wineries, proprietors of bonded wine cellars, and 

proprietors of taxpaid wine bottling houses 

collectively as ‘‘proprietors of wine premises.’’ 

receive permission to operate. See 26 

U.S.C. 5352. Further, applications must 

disclose, as specified in regulations 

issued by the Secretary, such 

information as may be necessary to 

enable the Secretary to determine the 

location and extent of the premises, the 

type of operations to be conducted on 

such premises, and whether the 

operations will be in conformity with 

law and regulations. See 26 U.S.C. 5356. 

The IRC also requires that bonded wine 

premises, including any noncontiguous 

portions, must be located, constructed, 

and equipped to protect the revenue, in 

accordance with regulations prescribed 

by the Secretary. See 26 U.S.C. 5357. 

Chapter 51 also imposes requirements 

governing the operations of bonded and 

taxpaid wine premises, including a 

requirement that proprietors keep 

records and file reports in the form and 

manner prescribed by regulation. See 26 

U.S.C. 5367. In addition, section 7805(a) 

of the IRC generally authorizes the 

Secretary to issue regulations to carry 

out the provisions of the IRC. See 26 

U.S.C. 7805(a). 

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). The 

Secretary has also delegated certain 

administrative and enforcement 

authorities to TTB through Treasury 

Order 120–01, including the authority to 

prescribe and evaluate applications to 

establish and operate wine premises 

covered under this rulemaking. 

Pursuant to its delegated IRC 

authorities, TTB has promulgated 

regulations setting forth the application 

requirements for wine premises at 27 

CFR part 24. TTB’s regulations at 27 

CFR 24.105 through 24.117 set forth the 

requirements for the qualifying 

documents that proprietors of wine 

premises must submit to TTB, including 

form TTB F 5120.25, Application to 

Establish and Operate Wine Premises 

(application). A bonded winery, bonded 

wine cellar, or taxpaid wine bottling 

house may not commence operations 

until the proprietor has a valid 

approved application for the operations. 

See 27 CFR 24.105. The electronic 

version of the application form, TTB F 

5120.25, is available through the TTB 

Permits Online (PONL) system. In this 

document, TTB proposes amendments 

to the regulations specifying the 

information proprietors of wine 

premises must provide on form TTB F 

5120.25 or its electronic equivalent, as 

well as in certain supporting 

documents. 

Pursuant to TTB’s IRC authorities 

described above, TTB has also 

promulgated regulations imposing 

procedural and substantive 

requirements on proprietors of wine 

premises. TTB regulations at 27 CFR 

24.120 through 24.132 require 

proprietors of wine premises to report 

certain changes in the business affecting 

the current approved application (e.g., 

changes in address or location, changes 

in stockholders or corporate officers, 

changes in proprietorship). In addition, 

regulations at 27 CFR 24.300 through 

24.323 include recordkeeping 

requirements, as authorized by the IRC 

at 26 U.S.C. 5367. 

This notice of proposed rulemaking 

includes proposed amendments to these 

reporting and recordkeeping 

requirements. With respect to current 

reporting requirements, in instances 

where TTB’s regulations refer to 

submitting a ‘‘letterhead notice,’’ 

industry members may provide such 

letterhead notices electronically. Unlike 

the proprietor’s initial submission of 

qualifying documents, these letterhead 

notices do not require TTB approval. 

TTB is proposing an amendment to 27 

CFR 24.10 to add a definition of 

‘‘letterhead notice’’ to clarify these 

points. 

C. Relationship to Other Notices of 

Proposed Rulemaking 

TTB previously published a notice of 

proposed rulemaking titled 

‘‘Modernization of Permit and 

Registration Application Requirements 

for Distilled Spirits Plants,’’ in which 

TTB proposed amendments, generally 

similar to those proposed in this 

document, in 27 CFR parts 1, 17, 19, 20, 

22, 26, 27, 28, and 31. Amendments 

related to FAA Act basic permits— 

including basic permits as producers, 

blenders, importers, and wholesalers of 

wine—were included in that document 

and are not included in this document. 

See Notice No. 207, published in the 

Federal Register on December 3, 2021, 

at 86 FR 68573. TTB also previously 

published a notice of proposed 

rulemaking titled ‘‘Modernization of 

Qualification Requirements for Brewer’s 

Notices,’’ in which TTB proposed 

amendments, generally similar to those 

proposed in this document, in 27 CFR 

part 25. See Notice No. 212, published 

in the Federal Register on June 8, 2022, 

at 87 FR 34819. The comment periods 

for Notice Nos. 207 and 212 are closed, 

and TTB is reviewing the comments 

submitted in response. 

II. Proposed Changes to the Regulations 

TTB intends for the proposed 

amendments in this document to 

modernize and streamline the 

qualification requirements and 

processes under the IRC for proprietors 

of bonded wineries, bonded wine 

cellars, and taxpaid wine bottling 

houses.1 The general approach TTB 

adopted in developing the proposed 

amendments was to identify 

information currently collected that 

could be eliminated without hindering 

TTB’s ability to protect and ensure 

collection of the revenue, and to provide 

more clarity and specificity in the 

application questions and instructions. 

The proposed amendments also relax 

reporting requirements on certain 

changes to the business. 

A. Operational Information Required for 

Wine Premises Application 

TTB is proposing to eliminate 

requirements to provide certain 

operational information when applying 

to establish a bonded winery, bonded 

wine cellar, or taxpaid wine bottling 

house. The TTB regulations at 27 CFR 

24.109 prescribe, in general, information 

that must be included in an application 

under the IRC to establish such a wine 

premises. Among the information 

currently required at sections 24.109(f) 

and 24.111 are narrative descriptions of 

certain operations to be conducted on 

the wine premises. As explained further 

below, TTB has determined that these 

narrative descriptions are not necessary 

for TTB to evaluate whether an 

applicant qualifies for a permit and, as 

a result, can either be eliminated or 

amended to collect a narrower set of 

information about the operations. 

Section 24.109(h) requires applicants 

to provide, if applicable, a ‘‘description 

of spirits operations.’’ In general, the 

requirements related to the use of spirits 

in the production of wine are set forth 

in TTB’s regulations at 27 CFR part 24, 

subpart K. All proprietors of bonded 

wine premises are obligated to comply 

with the requirements of subpart K (and 

of part 24 in general) in their use of 

spirits, but such proprietors are not 

required to obtain authorization from 

TTB after their initial qualification to 

begin spirits operations or change their 

spirits operations. TTB has concluded 

that requiring applicants to provide a 

narrative description of spirits 

operations at the time of their initial 

application is not necessary for TTB to 

evaluate whether such applicants are 

qualified to establish a bonded wine 

premises. This requirement also places 

a burden on those applicants who 

intend to use spirits at the time of their 

initial application without a similar 

burden on those who decide to use 


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Federal Register / Vol. 89, No. 191 / Wednesday, October 2, 2024 / Proposed Rules 80163 

spirits after qualifying. As such, TTB is 

proposing to eliminate current section 

24.109(h). 

The current § 24.109(j) requires 

applicants intending to conduct volatile 

fruit-flavor concentrate operations to 

provide a description of such operations 

as set forth at 27 CFR 24.113. Section 

24.113 requires a step-by-step 

description of the production procedure 

to be employed, commencing with 

obtaining fruit juice and continuing 

through each step of the process up to 

the removal of the volatile fruit-flavor 

concentrate. For concentrates containing 

more than 24 percent alcohol, the 

proprietor must indicate any step in the 

production procedure at which any 

spirits may be fit for beverage use. The 

description also must include, among 

other things, the maximum quantity in 

gallons of fruit must used, the amount 

of concentrate produced in 24 hours, 

and the maximum percent of alcohol in 

the concentrate for each kind of fruit 

used. 

Similar to the spirits operations 

previously discussed, all bonded wine 

premises proprietors are authorized to 

engage in volatile fruit-flavor 

concentrate operations, specifically the 

‘‘preparation, storage, or removal of 

commercial fruit products and byproducts (including volatile fruit-flavor 

concentrate) not taxable as wine.’’ See 

27 CFR 24.101(b)(4). TTB no longer 

believes that collecting detailed 

information on an applicant’s 

prospective volatile fruit-flavor 

concentrate production process is 

necessary at the time of initial 

qualification, and instead could be 

collected from applicants and approved 

wine premises proprietors upon request 

of the appropriate TTB officer, as 

needed to protect the revenue (given the 

potential to create taxable distilled 

spirits during such operations). 

However, consistent with the 

requirement at 27 CFR 24.114 that any 

still used in the production of volatile 

fruit-flavor concentrate be set up on 

bonded wine premises and registered 

with TTB, there remains a need to 

collect basic information on whether a 

bonded wine premises will engage in 

the production of volatile fruit-flavored 

concentrate and, if so, certain 

information concerning any still(s) to be 

used. 

As a result, TTB is proposing to 

amend § 24.109(j) to replace the 

required narrative description of volatile 

fruit-flavor concentrate operations with 

a statement of whether the applicant 

intends to produce volatile fruit-flavor 

concentrate and, if so, the kind, 

capacity, and intended use of any stills 

to be used in such production. In 

addition, TTB is proposing to amend 

§ 24.113 to provide that bonded wine 

premises proprietors who produce 

volatile fruit-flavor concentrate must 

submit the step-by-step production 

process description currently required 

by that section only upon request of the 

appropriate TTB officer. 

TTB is also proposing a conforming 

amendment to 27 CFR 24.130, which 

currently requires, in general, that 

proprietors apply for and receive 

approval from TTB before beginning 

new, or changing their existing, 

production processes for volatile fruitflavor concentrate. TTB is proposing to 

amend 24.130 to instead require that 

proprietors notify TTB when setting up 

any new still(s) to be used in the 

production of volatile fruit-flavor 

concentrate. The proposed notification 

for new stills requires the proprietor to 

provide the kind, capacity, and 

intended use of the still(s). 

Finally, § 24.109(k) requires 

applicants to provide, if applicable, a 

description of ‘‘other operations’’ not 

specifically authorized under TTB’s 

wine premises regulations. TTB has 

determined that § 24.109(k) serves a 

purpose duplicative of § 24.103, which 

governs requests to TTB for 

authorization to conduct on the wine 

premises other operations not 

specifically authorized under part 24 

(e.g., at 27 CFR 24.101 and 24.102). 

Section 24.103 sets forth the 

information that must be included in a 

request as well as the criteria for TTB 

approval. TTB believes that the 

duplicative provisions in §§ 24.103 and 

24.109(k) could cause confusion about 

what information must be submitted to 

obtain approval for operations not 

authorized under §§ 24.101 or 24.102, 

and when such information must be 

submitted. For example, § 24.109(k) 

could give the impression that plans for 

other operations must be finalized at the 

time of original application submission. 

As a result, TTB is proposing to 

eliminate § 24.109(k). Requests for 

approval for other operations under 

§ 24.103, if known at the time of 

application, may still be submitted 

concurrently with an original 

application to establish a wine 

premises, but they also may be 

submitted later, as long as approval is 

obtained before the proprietor engages 

in the other operations. 

B. Premises Description and Security 

TTB proposes to more narrowly tailor 

requirements to describe the wine 

premises and its security, and to 

consolidate requirements to provide 

descriptions of alternation operations 

with the general wine premises 

description. The TTB regulations 

generally prescribe the information that 

a proprietor must provide in an 

application for a wine premises. This 

includes a description of the wine 

premises and the security measures to 

be employed at the wine premises. See 

27 CFR 24.109(f) and 24.111. TTB 

currently collects these descriptions in 

an open-ended narrative format. The 

regulations require more detailed 

narrative descriptions and/or diagrams 

when a proprietor of a bonded winery 

or bonded wine cellar intends to 

alternate its premises with an adjacent 

distilled spirits plant or brewery, or 

intends to alternate its premises for use 

as taxpaid wine premises. See 27 CFR 

24.111 and 24.135 (regarding alternation 

for use as taxpaid wine premises), 

19.143(b)(2) (regarding alternation with 

distilled spirits plants), and 25.81(b)(2) 

(regarding alternation with breweries). 

TTB believes that direct questions 

identifying the specific information 

requested—and associated 

certifications—will provide greater 

clarity to applicants as to the exact 

information TTB seeks in an 

application, which will reduce the need 

for additional submissions and 

communication between TTB and 

applicants, thus accelerating TTB’s 

review and approval of applications. 

TTB therefore proposes amendments, 

described below, to alter the format in 

which descriptions of wine premises, 

security measures, and related 

information are collected, and, where 

appropriate, to consolidate the 

collection of such information. 

Amendments to 27 CFR 24.109 and 

24.111 

Currently, § 24.109(f) requires that an 

application include a description of the 

wine premises in accordance with 

§ 24.111. Section 24.111 sets forth the 

specific information to be included in 

the description, and includes: (1) a 

description of each tract of land 

comprising wine premises; (2) a diagram 

of the wine premises drawn to scale 

when required by the appropriate TTB 

officer; (3) a clear indication of any area 

of the wine premises to be used as 

bonded wine premises, used as taxpaid 

wine premises, or alternated for use as 

bonded wine premises and taxpaid wine 

premises; (4) a description of the means 

employed to afford security and protect 

the revenue; (5) if required by the 

appropriate TTB officer to segregate 

operations within the premises, a 

description of the manner by which the 

operations are segregated; (6) a 

description of each building on wine 

premises as to size, construction, and 

use; and (7) if the wine premises consist 


lotter on DSK11XQN23PROD with PROPOSALS1
80164 Federal Register / Vol. 89, No. 191 / Wednesday, October 2, 2024 / Proposed Rules 

2Note that other changes to a proprietor’s 

operations (i.e., those other than changes to the 

physical premises) necessitated by emergency 

situations remain governed by 27 CFR 24.25. 

3As further described in § 24.137, proprietors 

may alternate their wine premises as a Customs 

Bonded Warehouse under applicable U.S. Customs 

and Border Protection laws and regulations, for the 

purpose of measuring, gauging, and bottling or 

packing wine. 

of a part of a building, a separate 

description of the rooms or floors, as 

well as a description the activities 

conducted in the adjoining portions of 

the building, and the means of ingress 

and egress from the wine premises. 

TTB proposes to amend § 24.111 to 

remove the requirement to provide a 

description of the tract of land, to limit 

the required description to portions of 

the premises where wine operations 

will occur, and to clarify the specific 

information needed. The proposed 

amendments require the premises 

description to include the following 

elements in either narrative or diagram 

form: (1) The outline and dimensions of 

the building(s) where wine operations 

will occur; (2) if the wine premises does 

not occupy the entire building, the 

outline and dimensions of the wine 

premises within the building; (3) if the 

wine premises includes both bonded 

wine premises and taxpaid wine 

premises, the outline and dimensions of 

each; (4) the external doors of the wine 

premises; and (5) the outline and 

dimensions of any portions of the wine 

premises that are outdoors, including 

the location of any outdoor tanks. TTB 

believes that these descriptive elements 

are the minimum necessary to allow 

TTB to evaluate whether the premises is 

adequate to protect the revenue; the 

requested information provides TTB the 

scope and dimensions of the operations 

space and the points of access to the 

operations. The proposed amendments 

provide flexibility to submit this 

information in narrative form or 

diagram form, whichever is better suited 

to the applicant’s circumstances. The 

proposed amendments also provide that 

photographs of any of the required 

elements must be submitted upon 

request of the appropriate TTB officer. 

With regard to security, § 24.111 

currently requires that the description of 

wine premises include a narrative 

description of ‘‘the means employed to 

afford security and protect the revenue.’’ 

TTB believes that this requirement is 

overly broad. Accordingly, TTB 

proposes to eliminate the required 

description of security measures from 

§ 24.111, and to replace it with a new 

§ 24.171 specifically addressing 

security. Section 24.171 will require 

that security measures at the wine 

premises be of a class and construction 

designed to prevent unauthorized access 

to, and theft of, commercial property. 

TTB also proposes to amend § 24.109 to 

require that an application include a 

certification that the premises’ security 

will meet the requirements of § 24.171. 

TTB believes that the proposed 

amendments clarify that TTB security 

requirements correspond to current 

industry standards and will provide 

applicants and permittees flexibility to 

secure their premises in a manner that 

is best suited to their particular 

circumstances. 

Amendments to 27 CFR 24.131 

The TTB regulations currently require 

proprietors of wine premises to submit 

a notice to the appropriate TTB officer 

before making a change in the 

construction of buildings located on 

wine premises, or in the use of any 

portion of the wine premises, where 

such change affects the accuracy of their 

current approved application. The 

notice must describe the proposed 

change in detail. Proprietors must also 

include the change covered by the 

notice in the next amended application 

to be filed, unless the appropriate TTB 

officer requires immediate amendment. 

See 27 CFR 24.131. 

TTB proposes to amend § 24.131 to 

require that proprietors submit a new 

description of the premises, meeting the 

requirements of proposed § 24.111, and 

receive TTB approval prior to making 

any change to the premises that would 

render inaccurate the description of 

premises currently on file with TTB. 

These amendments simplify the process 

for obtaining approval for changes in 

premises and no longer require 

proprietors to submit the same 

information to TTB multiple times as 

required in the current § 24.131. 

TTB also proposes to add a new 

paragraph to § 24.131 authorizing the 

proprietor, in cases of natural disaster or 

other similar emergency, to make 

temporary changes to the premises 

without first submitting an updated 

premises description, provided that the 

proprietor reports any such change(s) to 

TTB through a letterhead notice within 

10 days. Emergency changes to the 

premises under this new paragraph are 

temporary, and the proprietor must 

return their premises to the condition 

reflected in the approved premises 

description on file under § 24.111 

within 60 days unless the proprietor 

files for TTB approval, under the 

general provisions of the proposed 

§ 24.131, to make permanent changes to 

the premises. TTB believes that these 

amendments will reduce burdens on 

proprietors seeking to respond quickly 

to situations requiring them to make 

emergency changes to their premises.2

Amendments to 27 CFR 24.135(b)(3), 

24.136(a)–(b), and 24.137(b)(2) 

Sections 24.135 through 24.137 

provide procedures for alternation of 

wine premises. Specifically, § 24.135 

prescribes procedures related to the 

alternation of bonded wine premises for 

use as taxpaid wine premises, or 

alternation for other purposes such as 

the use of adjacent or contiguous 

premises qualified under chapter 51 of 

the IRC (i.e., distilled spirits plant, 

brewery, etc.) for use as wine premises 

or vice versa. Section 24.136 prescribes 

procedures related to alternation of 

proprietors, and § 24.137 prescribes 

procedures related to alternation for 

customs purposes.3 One of the 

procedures prescribed in §§ 24.136 and 

24.137 to engage in alternation of wine 

premises is that the proprietor must 

submit with their application a diagram 

of the part of the premises that will be 

alternated, as well as a description of 

the areas, buildings, floors, or rooms 

that will be alternated. TTB believes 

that the information collected under 

these sections can be consolidated into 

the premises description(s) required at 

§ 24.109(f). Accordingly, TTB proposes 

to amend these sections to require that 

such information be included in the 

description submitted under § 24.109(f). 

In the case of § 24.135, with respect to 

alternation as taxpaid wine premises, 

the applicant currently must provide a 

description of how taxpaid wine or 

spirits, or untaxpaid wine or spirits, will 

be identified and segregated. With 

respect to alternation with an adjacent 

brewery or distilled spirits plant (DSP), 

§ 24.135 does not explicitly require 

submission of diagrams or descriptions 

illustrating the proposed alternation, but 

the proprietor of the wine premises 

nonetheless must prepare alternation 

diagrams for submission with the 

brewery’s or DSP’s application for 

alternation. See 27 CFR 25.81(b)(2) 

(requiring ‘‘Special diagrams, in 

duplicate, delineating the brewery 

premises and the bonded or taxpaid 

wine premises as they will exist both 

during extension and curtailment.’’) and 

27 CFR 19.143(b)(2) (requiring ‘‘a 

special diagram, in duplicate, 

delineating the premises as they will 

exist, both during extension and 

curtailment and clearly depicting all 

buildings, floors, rooms, areas, 

equipment that are to be subject to 

alternation, in their relative operating 


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4Note that, similar to the amendments proposed 

in this document, TTB proposed in Notice Nos. 212 

and 207, respectively, amendments to §§ 25.81 and 

19.143 providing that alternation descriptions be 

submitted on additional versions of the premises 

description required with the application for the 

original Brewer’s Notice or DSP permit. 

5For purposes of IRC sections 5061(e) and 

5051(a)(5)(A), a ‘‘controlled group of corporations’’ 

has the meaning given to such term by 26 U.S.C. 

1563(a), except that ‘‘more than 50 percent’’ must 

be substituted for ‘‘at least 80 percent’’ each place 

it appears in section 1563(a). Section 5061(e)(3)(B) 

clarifies that rules similar to paragraph (3)(A) apply 

to a group of persons under common control where 

one or more of such persons is not a corporation. 

sequence.’’).4 To more clearly convey 

what information a proprietor must 

provide for TTB to authorize an 

alternating premises, specifically 

regarding how the premises will be 

delineated and how it will be extended 

and curtailed, TTB proposes to amend 

§ 24.135(b)(3) to require ‘‘Additional 

versions of the description required 

under § 24.109(f) describing or showing 

the premises as they will exist, both 

during extension and curtailment, and 

clearly depicting all buildings, floors, 

rooms, areas, and equipment that are to 

be subject to alternation, in their relative 

operating sequence.’’ As noted above, 

this information about the wine 

premises is generally already required to 

be submitted under regulations directed 

at breweries and distilled spirits plants 

that intend to alternate with a wine 

premises, and is needed by TTB to 

ensure well-defined separation of 

operations, compliance with statutory 

and regulatory requirements that apply 

to the different operations, and payment 

of the appropriate Federal excise tax. 

C. Statements of Interest 

TTB proposes amendments to clarify 

the scope of the collection of 

information related to persons holding 

ownership interests in an applicant 

business. TTB collects these statements 

of interest in accordance with TTB’s 

statutory obligation under the IRC to 

collect information necessary to 

determine whether the operations will 

be in conformity with law and 

regulations. See 26 U.S.C. 5356. 

To protect and ensure collection of 

the revenue, TTB must identify 

circumstances in which a bonded wine 

cellar or winery’s ownership structure 

would affect the bonded wine cellar or 

winery’s required method of tax 

payment and/or the bonded wine cellar 

or winery’s eligibility for certain 

reduced rates of tax. The IRC provides 

that any taxpayer who, in any calendar 

year, was liable for at least $5,000,000 

in taxes on distilled spirits, wines, or 

beer must pay such taxes in the 

following year by electronic fund 

transfer. See 26 U.S.C. 5061(e). 

Furthermore, in the case of a controlled 

group of corporations, all component 

members of the group are treated as one 

taxpayer.5 See 26 U.S.C. 5061(e)(3)(A). 

To determine whether a bonded wine 

cellar or winery belongs to a controlled 

group, and thereby to enforce section 

5061(e), TTB must collect information 

identifying the persons holding 

ownership interests in the business. 

Determining whether a prospective 

bonded wine cellar or winery is a 

member of a controlled group is also 

necessary to determine whether the 

proprietor may be eligible for certain tax 

credits once they are in business 

following TTB approval of an 

application to establish a wine 

premises. The IRC provides a credit 

against the tax imposed under section 

5041(a) on the first 30,000 wine gallons 

of wine produced by the producer and 

removed during the calendar year for 

consumption or sale. See 26 U.S.C. 

5041(c)(1)(A). Further, the IRC provides 

a slightly lower credit against the tax on 

the next 100,000 wine gallons removed 

during the calendar year, and 

subsequently an even lower credit 

against the tax on the next 620,000 wine 

gallons removed during the calendar 

year. See 26 U.S.C. 5041(c)(1)(A). 

The tax credits under section 

5041(c)(1)(A) apply to the collective 

production and removal activity of a 

controlled group. See 26 U.S.C. 

5041(c)(3). For example, if an 

application is submitted for a bonded 

winery that would produce 25,000 wine 

gallons of wine per year, but which will 

be part of a controlled group with 

another winery producing 200,000 wine 

gallons of wine per year, TTB needs to 

collect information to identify the 

controlled group structure and thereby 

ensure that the wineries within the 

controlled group will not claim tax 

credits for which they are ineligible. 

The TTB regulations promulgated 

under the above IRC authorities thus 

require statements of interest for 

applications to establish and operate 

wine premises. See 27 CFR 24.110(c). 

TTB proposes amendments to 27 CFR 

24.110(c) to clarify and standardize the 

collection of basic identifying 

information of persons with an 

ownership interest in the business. The 

amended § 24.110(c) provides that: (1) 

the requirement to disclose basic 

identifying information (i.e., names and 

addresses) of persons with an 

ownership interest in the business 

applies to persons with an interest at 

least equivalent to that of a principal 

stockholder in a corporation, that is, an 

ownership interest of 10 percent or 

greater; and (2) where a ‘‘person’’ 

holding such an interest is a legal entity 

other than an individual, the applicant 

must provide the name, title, and place 

of residence (city and State) of a 

representative individual for that entity. 

The ‘‘representative individual’’ 

generally is the individual that the 

entity designated to represent the 

entity’s interest in the business or, in 

the absence of a designated individual, 

an owner, chief officer or manager, or 

person with similar authority within the 

entity. TTB believes that this is the 

minimum amount of information 

required to identify the individuals with 

an ownership interest in the business 

and to evaluate any potential controlled 

group affiliations for the applicant. TTB 

also proposes a minor conforming 

amendment to add the word 

‘‘ownership’’ before ‘‘interest’’ in 

§ 24.109(c). 

D. 30-Day Filing Requirements for 

Certain Changes in the Business 

TTB proposes to extend the deadline 

for reporting certain changes in a 

proprietor of wine premises’ business 

generally from 30 days to 60 days. The 

TTB regulations generally require that, 

when there is a change in the 

information submitted to TTB in a 

current approved application to 

establish and operate wine premises, the 

proprietor of the business must notify 

TTB of the change. The timing and form 

of this notification differs depending on 

the type of change. 

Proprietors must report some business 

changes to TTB within a certain amount 

of time following the change, generally 

within 30 days. For example, the 

current TTB regulations require that 

proprietors of wine premises submit an 

amended application within 30 days of 

any change to the list of corporate 

officers furnished with the original 

application. See 27 CFR 24.124. 

Comments received in response to 

Treasury’s request for information, 

described above in section I(A), suggest 

that 30 days is not enough time for 

regulated entities to assemble the 

information that is required to be filed 

in connection with various changes in 

the business. These comments suggested 

that such filing deadlines should be 

extended to 60 days. 

TTB reviewed these proposals and 

concluded that extending existing 

deadlines for reporting certain changes 

in the business (including in some cases 

by amending applications) from 30 to 60 

days would not, in general, pose risk to 

the revenue or raise other concerns. 

Accordingly, TTB proposes to extend 

such deadlines in 27 CFR 24.120, 

24.123, and 24.124. Section 24.120 

currently requires that, except as 


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6Note that, similar to the amendment proposed 

in this document, TTB proposed in Notice No. 207 

an amendment to the FAA Act permit regulations 

at § 1.40 that would allow changes to, or additions 

of, trade names to be accomplished by a letterhead 

notice. 

otherwise provided in part 24, a 

proprietor submit an amended 

application within 30 days of a change 

in any of the information included in 

the current approved application. 

Section 24.123 requires a proprietor to 

submit an amended application within 

30 days of a change in control of a 

business caused by the sale or transfer 

of capital stock, or the proprietor may 

submit a new list of stockholders 

annually on May 1 where the change in 

stockholders does not result in a change 

of control or management of the 

business. Similarly, § 24.124 generally 

requires that a proprietor submit an 

amended application within 30 days of 

a change in the list of corporate officers 

furnished with the original application. 

TTB proposes to extend each of the 

above reporting deadlines from 30 to 60 

days. TTB also proposes to amend 

§ 24.124 to require that a proprietor 

submit a new list of corporate officers as 

a letterhead notice rather than 

submitting it with an amended 

application. 

TTB also proposes conforming 

amendments to § 24.123 to update 

references to ‘‘stockholders’’ to refer 

instead to ‘‘ownership interests’’ 

consistent with the proposed 

amendments to statements of interest 

described in Section II(C) of this 

document. TTB further proposes 

amendments to § 24.123 to clarify a 

proprietor’s obligations where a change 

in ownership interests does result in a 

change in control of the business. For 

wine premises that do not require an 

FAA Act basic permit (i.e., taxpaid wine 

bottling houses, bonded wine cellars 

engaging only in storage), such changes 

in ownership interests must be reported 

to TTB via a letterhead notice within 60 

days of the change. 

For wine premises that do require an 

FAA Act basic permit (i.e., bonded wine 

cellars engaging in production and/or 

blending), such changes in ownership 

interests must be reported to TTB in an 

amended application within 30 days of 

the change. The 30-day deadline is 

required by statutory provisions of the 

FAA Act, which provide 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. See 27 U.S.C. 

204(g). Section 204(g)(2) 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. Because maintenance of an 

FAA Act basic permit is a continuing 

condition of certain IRC wine premises 

permits (see 27 CFR 24.106), TTB is 

proposing to clarify in § 24.123 that 

proprietors of wine premises engaging 

in the production and/or blending of 

wine must submit an amended 

application within 30 days of the 

change in control, consistent with the 

FAA Act requirements previously 

described. 

E. Changes in Trade Names 

TTB proposes to revise the regulations 

at 27 CFR 24.122 to allow changes to, 

or additions of, trade names through a 

letterhead notification to TTB rather 

than through an amended application.6

The TTB regulations currently require 

that proprietors file an amended 

application before engaging in 

operations under a new trade name. See 

27 CFR 24.122. TTB’s Permits Online 

(PONL) system already includes a 

function for electronically reporting 

additional trade names, which will 

satisfy the proposed requirement of a 

letterhead notice. Consistent with this 

established policy, TTB’s proposed 

revision 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 

proprietor to ensure that any trade name 

is properly registered with the 

applicable State or local government. 

Industry members should further note 

that the FAA Act prohibits false or 

misleading statements on alcohol 

beverage labels, and a trade name may 

not be used on a label if its use creates 

a false or misleading impression as to 

the age, origin, or identity of the 

product. See 27 U.S.C. 205(e). The FAA 

Act also prohibits the use of misleading 

trade names when advertising wine. See 

27 U.S.C. 205(f). 

F. Retention of Records Off-Premises 

TTB is proposing amendments to 

allow records to be stored at a location 

other than the wine premises by 

notifying TTB of the intention to store 

records at an off-premises location, 

rather than requiring specific TTB 

approval. As part of its evaluation of 

permit and registration applications, 

TTB sought to identify any types of 

requests to vary from the regulations 

that applicants commonly submitted 

with their permit or registration 

applications, and that TTB routinely 

approved. One common request from 

proprietors of wine premises has been 

for approval to maintain required 

records at a location other than the wine 

premises. As a result, TTB proposes to 

amend 27 CFR 24.300 to allow 

proprietors of wine premises to keep 

records at another location upon 

providing a letterhead notice to TTB. 

The amendments provide that required 

records must still be made available at 

the wine premises upon request, but 

that copies will generally satisfy this 

requirement (consistent with current 

TTB policy, ‘‘copies’’ includes 

electronic copies). 

III. Public Participation 

A. Comments Invited 

TTB invites comments from interested 

members of the public on this proposed 

rulemaking. TTB also invites comments 

on any additional means to streamline 

application processes within the 

parameters of TTB’s statutory 

obligations. 

B. Submitting Comments 

You may submit comments on this 

proposal as an individual or on behalf 

of a business or other organization via 

the Regulations.gov website or via 

postal mail, as described in the 

ADDRESSES section of this document. 

Your comment must reference Notice 

No. 234 and must be submitted or 

postmarked by the closing date shown 

in the DATES section of this document. 

You may upload or include attachments 

with your comment. You also may 

submit a comment requesting a public 

hearing on this proposal. The TTB 

Administrator reserves the right to 

determine whether to hold a public 

hearing. If TTB schedules a public 

hearing, it will publish notification of 

the date, time, and place for the hearing 

in the Federal Register. 

C. Confidentiality and Disclosure of 

Comments 

All submitted comments and 

attachments are part of the rulemaking 

record and are subject to public 

disclosure. Do not enclose any material 

in your comments that you consider 

confidential or that is inappropriate for 

disclosure. 

TTB will post, and you may view, 

copies of this document, its supporting 

materials, and any comments TTB 

receives about this proposal within the 

related Regulations.gov docket. In 

general, TTB will post comments as 

submitted, and it will not redact any 


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identifying or contact information from 

the body of a comment or attachment. 

Please contact TTB’s Regulations and 

Rulings division by email using the web 

form available at https://www.ttb.gov/ 

contact-rrd, or by telephone at 202–453– 

2265, if you have any questions 

regarding comments on this proposal or 

to request copies of this document, its 

supporting materials, or the comments 

received in response. 

IV. Regulatory Analysis and Notices 

A. Executive Order 12866 

It has been determined that this 

proposed rule is not a significant 

regulatory action as defined by 

Executive Order 12866 of September 30, 

1993, as amended. Therefore, no 

regulatory assessment is required. 

B. Regulatory Flexibility Act 

In accordance with the Regulatory 

Flexibility Act (5 U.S.C. 601 et seq.), 

TTB has analyzed the potential 

economic effects of this action on small 

entities. In lieu of the initial regulatory 

flexibility analysis required to 

accompany proposed rules under 5 

U.S.C. 603, section 605 allows the head 

of an agency to certify that a rule will 

not, if promulgated, have a significant 

economic impact on a substantial 

number of small entities. The following 

analysis provides the factual basis for 

TTB’s certification under section 605. 

Impact on Small Entities 

While TTB believes the majority of 

businesses subject to this proposed rule 

are small businesses, the changes 

proposed in this document will not 

have a significant economic impact on 

those small entities. The proposed 

amendments are generally aimed at 

reducing burden on regulated entities of 

all sizes by: 

(1) Eliminating the collection of 

certain information from applications to 

establish wine premises; 

(2) Streamlining requirements to 

describe the wine premises and its 

security; 

(3) Extending deadlines for reporting 

certain changes in the wine premises 

proprietor’s business; 

(4) Streamlining procedures for wine 

premises proprietors using new trade 

names; 

(5) Allowing the maintenance of 

required records at locations other than 

the wine premises through a notification 

rather than an application for an 

alternate procedure; and 

(6) Clarifying which individuals are 

required to submit statements of 

financial interest in the business in 

connection with an application to 

establish a wine premises. 

On June 14, 2017, the Treasury 

Department (Treasury) published in the 

Federal Register (82 FR 27217) a 

Request for Information inviting 

members of the public to submit views 

and recommendations for Treasury 

regulations that can be eliminated, 

modified, or streamlined to reduce 

burdens. TTB reviewed comments 

received in response to this request and 

identified proposals that related to the 

permit application or, more generally, to 

beginning business in a TTB-regulated 

industry. Many of the proposed changes 

are consistent with recommendations 

submitted by industry in response to 

Treasury’s request. 

To reduce the information collected 

in applications to establish wine 

premises, TTB proposes amendments to 

27 CFR 24.109 to eliminate 

requirements that applicants provide 

narrative descriptions of spirits 

operations and volatile fruit-flavor 

concentrate in their applications. 

To streamline wine premises 

description requirements, TTB proposes 

amendments to 27 CFR 24.109 and 

24.111 to replace requirements for 

narrative descriptions of the wine 

premises with requirements to submit 

more specific and narrowly tailored 

information regarding the premises. For 

example, § 24.111 currently requires a 

detailed narrative description of the 

wine premises, including a description 

of each tract of land covered by the wine 

premises and a description of the ‘‘size, 

construction, and use’’ of each building 

on the wine premises. The proposed 

amendments to § 24.111 remove the 

narrative description requirements and 

instead require the submission of more 

limited information illustrating certain 

specified attributes of the premises. 

An example of extending deadlines 

for reporting changes in a permitted or 

registered business is the proposed 

amendment to § 24.120, which provides 

the general rules for notifying TTB of 

any changes in the information included 

in an approved application to establish 

a wine premises. Section 24.120 

generally requires that when such 

changes occur, the proprietor of the 

wine premises must file an amended 

application within 30 days. The 

proposed amendments to § 24.120 

extend this deadline to 60 days. TTB 

proposes similar amendments at 

§§ 24.123 and 24.124. 

Regarding changes in trade names, 

TTB’s regulations at 27 CFR 24.122 

currently require that wine premises 

proprietors submit an amended 

application and receive approval from 

TTB before operating under a new trade 

name. The proposed amendments to 27 

CFR 24.122 clarify that a proprietor 

need only notify TTB of the addition of 

a trade name prior to using such name 

for labeling purposes, and the proprietor 

may notify TTB through a written 

notice. TTB’s Permits Online (PONL) 

system already includes a function for 

reporting additional trade names, which 

will satisfy the proposed § 24.122’s 

requirement for a written notice. 

Concerning records maintenance, 

current recordkeeping requirements 

require that proprietors of wine 

premises maintain prescribed records at 

the wine premises. The proposed 

amendments to 27 CFR 24.300 generally 

allow for the maintenance of required 

records at locations other than the wine 

premises upon written notice to TTB. 

With respect to the collection of 

background information, TTB proposes 

amendments to 27 CFR 24.110 to clarify 

the individuals who are required to 

submit statements of ownership interest 

in a business submitting an application 

to establish a wine premises. The 

proposed amendments clarify that: (1) 

such statements of interest are required 

only from persons with an ownership 

interest in the applicant business of 10 

percent or greater; and (2) where a 

‘‘person’’ holding such an interest is a 

legal entity other than an individual, the 

applicant must submit basic identifying 

information about a representative 

individual for that entity. 

In conclusion, while the entities 

affected by the proposed rule include a 

substantial number of small entities, 

TTB expects the effects of the changes 

in this proposed rule to include modest 

burden reductions for the affected 

entities. In accordance with the 

Regulatory Flexibility Act (5 U.S.C. 601 

et seq.), TTB certifies that this proposed 

rule, if promulgated, will not have a 

significant economic impact on a 

substantial number of small entities. 

The proposed rule will not impose, or 

otherwise cause, a significant increase 

in reporting, recordkeeping, or other 

compliance burdens on a substantial 

number of small entities. Accordingly, a 

regulatory flexibility analysis is not 

required. Pursuant to 26 U.S.C. 7805(f), 

TTB will submit the proposed 

regulations to the Chief Counsel for 

Advocacy of the Small Business 

Administration for comment on the 

impact of the proposed regulations on 

small businesses. 

C. Paperwork Reduction Act 

Regulations addressed in this 

document contain current collections of 

information that have been previously 

reviewed and approved by the Office of 

Management and Budget (OMB) in 

accordance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. 


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3504(h)) and assigned control numbers 

1513–0009, 1513–0057, and 1513–0115. 

The specific regulatory sections in this 

proposed rule that contain collections of 

information, either current or proposed, 

are §§ 24.109, 24.110, 24.111, 24.113, 

24.120, 24.122, 24.123, 24.124, 24.130, 

24.131, 24.135, 24.136, 24.137, and 

24.300. An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless it displays a valid control 

number assigned by OMB. 

The amendments that TTB proposes 

in this document, along with certain 

corresponding policy changes, are 

designed to reduce the overall burden 

associated with the information 

collections noted above. In general, the 

proposed amendments involve: 

(1) Eliminating the collection of 

certain information from applications to 

establish wine premises; 

(2) Streamlining requirements to 

describe the wine premises and its 

security; 

(3) Extending deadlines for reporting 

certain changes in the wine premises 

proprietor’s business; 

(4) Streamlining procedures for wine 

premises proprietors using new trade 

names; 

(5) Allowing the maintenance of 

required records at locations other than 

the wine premises through a notification 

rather than an application for an 

alternate procedure; and 

(6) Clarifying which individuals are 

required to submit statements of 

financial interest in the business in 

connection with an application to 

establish a wine premises. 

To reduce the information collected 

in applications to establish wine 

premises, TTB proposes amendments to 

27 CFR 24.109, paragraphs (h) and (j), to 

eliminate requirements that applicants 

provide in their application narrative 

descriptions of spirits operations and 

volatile fruit-flavor concentrate 

applications, respectively. Paragraphs 

(h) is eliminated entirely while 

paragraph (j) is revised to require only 

information about the capacity, kind, 

and intended use of any still(s) to be 

used in the production of volatile fruitflavor concentrate. Regarding volatile 

fruit-flavor concentrate operations, TTB 

is proposing conforming amendments at 

27 CFR 24.113 and 24.130. Instead of 

requiring all applicants to submit a 

description of their volatile fruit-flavor 

concentrate production process, the 

amended § 24.113 would require that 

applicants and proprietors submit such 

a description only upon TTB request. 

Instead of requiring proprietors to report 

any changes to their volatile fruit-flavor 

concentrate production process, the 

amended § 24.130 would only require 

that proprietors notify TTB of any new 

stills to be used in the production of 

volatile fruit-flavor concentrate. TTB is 

also proposing to eliminate the current 

§ 24.109(k) requiring applicants to 

provide, if applicable, a description of 

‘‘other operations’’ not specifically 

authorized under TTB’s wine premises 

regulations, as it is duplicative of 27 

CFR 24.103. Sections 24.109, 24.113, 

and 24.130 are currently included in the 

collection of information assigned OMB 

control number 1513–0009. As a result 

of the proposed amendments to § 24.130 

changing the collection of information 

from an amended application to a 

letterhead notice, TTB believes it is 

more appropriate to instead account for 

that section in the collection of 

information assigned OMB control 

number 1513–0057. TTB has submitted 

to OMB revisions of information 

collections 1513–0009 and 1513–0057 

to account for the updated, and overall 

reduced, burden of the proposed 

amendments. 

To streamline requirements to 

describe the wine premises and its 

security, TTB proposes amendments to 

27 CFR 24.109, 24.111, 24.131, 24.135, 

24.136, and 24.137. The proposed 

amendments to §§ 24.109 and 24.111 

eliminate requirements to submit 

detailed narrative descriptions of the 

wine premises and certain of its 

attributes, and will replace these 

requirements with a more specific set of 

information and a certification as to the 

premises security. TTB proposed 

conforming amendments in § 24.131. 

The proposed amendments to 

§§ 24.135–24.137 generally consolidate 

the requirements to provide specific 

descriptions or diagrams of wine 

premises alternation into the generallyapplicable premises description 

requirements of §§ 24.209 and 24.111. 

Sections 24.109, 24.111, 24.131. 24.135, 

24.136, and 24.137 are currently 

included in the collection of 

information assigned OMB control 

number 1513–0009. TTB has submitted 

to OMB a revision of that information 

collection to account for the reduced 

burden of the proposed amendments. 

To extend deadlines for reporting 

certain changes in the wine premises 

proprietor’s business, TTB proposes 

amendments to 27 CFR 24.120, 24.123, 

and 24.124. The proposed amendment 

to § 24.120 extends the generallyapplicable deadline for submitting an 

amended application from 30 to 60 days 

following a change in the information 

included in the approved application. 

The proposed amendment to § 24.124 

similarly extends the deadline for 

reporting changes in corporate officers 

from 30 to 60 days. The proposed 

amendments to § 24.123 extend the 

deadline for reporting certain changes in 

ownership of the business from 30 to 60 

days, except where the Federal Alcohol 

Administration Act establishes by law 

the 30-day deadline. Sections 24.120, 

24.123, and 24.124 are currently 

included in the collection of 

information assigned OMB control 

number 1513–0009. TTB has submitted 

to OMB a revision of that information 

collection to account for the reduced 

burden of the proposed amendments. 

The TTB regulations generally require 

that changes to, or additions of, the 

trade names under which a permitted 

business may operate be made by filing 

for an amended permit. Such 

applications would need to be approved 

prior to the applicant beginning 

operations under the new trade name. 

To relax the requirements associated 

with altering the trade names available 

for use by a wine premises proprietor, 

TTB proposes amendments to 27 CFR 

24.122. The amendments would allow 

changes to, or additions of, trade names 

to be accomplished by a letterhead 

notice. Section 24.122 is currently 

included in the collection of 

information assigned OMB control 

number 1513–0009. As a result of the 

proposed amendments changing the 

collection of information from an 

amended application to a letterhead 

notice, TTB believes it is more 

appropriate to instead account for the 

collection of trade name information in 

the collection assigned OMB control 

number 1513–0057 (note that provisions 

of § 24.122 relating to amended permits 

for changes in legal name will remain 

accounted for in collection 1513–0009). 

TTB has submitted to OMB revisions of 

information collections 1513–0009 and 

1513–0057 to account for the updated, 

and overall reduced, burden of the 

proposed amendments. 

Concerning records maintenance, 

current recordkeeping requirements 

require that proprietors of wine 

premises maintain prescribed records at 

the wine premises. Under current 

regulation and policy, proprietors can 

request, under the authority of 27 CFR 

24.22, ‘‘Alternate method or procedure,’’ 

to maintain records at an off-premises 

location. Such request must be 

approved by TTB before the proprietor 

can maintain records at the off-premises 

location. The proposed amendments to 

27 CFR 24.300 generally allow for the 

maintenance of required records at 

locations other than the wine premises 

immediately upon written notice to 

TTB. Section 24.300 is currently 

included in the collection of 

information assigned OMB control 


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number 1513–0115. Section 24.22 is 

currently included in the collection of 

information assigned OMB control 

number 1513–0057. TTB has submitted 

to OMB revisions of information 

collections 1513–0115 and 1513–0057 

to account for the reduced burden of the 

proposed amendments. 

With respect to the collection of 

applicant background information, TTB 

proposes amendments to 27 CFR 24.110 

to clarify the individuals who are 

required to submit statements of 

financial interest in the applicant 

business. Section 24.110 generally 

requires statements disclosing the 

identities of persons holding certain 

levels of ownership in a business 

applying to establish a wine premises to 

be submitted with such applications. 

The proposed amendments clarify that 

(1) Such statements of interest are 

required only from persons with an 

ownership interest in the applicant of 

10 percent or greater; and (2) where a 

‘‘person’’ holding such an interest is a 

legal entity other than an individual, an 

applicant must submit basic identifying 

information about a representative 

individual for that entity. Section 

24.110 is currently included in the 

collection of information assigned OMB 

control number 1513–0009. TTB has 

submitted to OMB a revision of that 

information collection to account for the 

reduced burden of the proposed 

amendments. 

As noted above, TTB has submitted 

the revised information collection 

requirements to OMB for review. 

Comments on these revised 

recordkeeping and reporting 

requirements should be sent to OMB at 

Office of Management and Budget, 

Attention: Desk Officer for the 

Department of the Treasury, Office of 

Information and Regulatory Affairs, 

Washington, DC 20503 or by email to 

OIRA_submissions@omb.eop.gov. A 

copy should also be sent to TTB by any 

of the methods previously described. 

Comments on the information 

collections should be submitted no later 

than December 2, 2024. Comments are 

specifically requested concerning: 

• Whether the collections of 

information submitted to OMB are 

necessary for the proper performance of 

the functions of the Alcohol and 

Tobacco Tax and Trade Bureau, 

including whether the information will 

have practical utility; 

• The accuracy of the estimated 

burdens associated with the collections 

of information submitted to OMB; 

• How to enhance the quality, utility, 

and clarity of the information to be 

collected; 

• How to minimize the burden of 

complying with the proposed revisions 

of the collections of information, 

including the application of automated 

collection techniques or other forms of 

information technology; and 

• Estimates of capital or start-up costs 

and costs of operation, maintenance, 

and purchase of services to provide 

information. 

List of Subjects in 27 CFR Part 24 

Alcohol and alcoholic beverages, 

Application procedures, Wine, Notice 

requirements, Reporting and 

recordkeeping requirements, Security 

requirements, Trade names. 

Amendments to the Regulations 

For the reasons discussed above in the 

preamble, TTB proposes to amend 27 

CFR part 24 as follows: 

PART 24—WINE 

■ 1. The authority citation for part 24 is 

revised 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, 5556, 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. 

■ 2. Section 24.10 is amended by 

adding, in alphabetical order, a 

definition of ‘‘Letterhead notice’’ to read 

as follows: 

§ 24.10 Meaning of terms. 

* * * * * 

Letterhead notice. A statement on a 

company’s letterhead or other piece of 

paper that clearly shows the company 

name from a company representative 

with signature authority. Letterhead 

notices may be filed electronically by 

any means authorized by the 

appropriate TTB officer. Letterhead 

notices do not require TTB approval. 

* * * * * 

§ 24.22 [Amended] 

■ 3. Section 24.22 is amended by: 

■ a. Removing the parenthetical legal 

citations at the end of the section; and 

■ b. Removing the OMB control number 

‘‘1512–0292’’ in the second 

parenthetical phrase at the end of the 

section and adding, in its place, the 

OMB control number ‘‘1513–0057’’. 

■ 4. Section 24.109 is amended by: 

■ a. Adding the word ‘‘ownership’’ 

before ‘‘interest’’ in the first sentence of 

paragraph (c); 

■ b. Revising paragraphs (g) through (l); 

■ c. Removing paragraph (m); and 

■ d. Removing the parenthetical legal 

citations at the end of the section. 

The revisions read as follows: 

§ 24.109 Data for application. 

* * * * * 

(g) A certification that the premises’ 

security is in compliance with § 24.171; 

(h) Trade names (see § 24.112); 

(i) With respect to wine premises to 

which the application relates, a list of 

the applicant’s basic permits and bonds 

(including those filed with the 

application) showing the name of the 

surety for each bond; 

(j) A statement of whether the 

applicant intends to produce volatile 

fruit-flavor concentrate and, if so, the 

kind, capacity, and intended use of any 

stills to be used in such production; 

(k) A statement whether the applicant 

is required to furnish a bond under 

§ 24.146; and 

(l) The applicant shall, when required 

by the appropriate TTB officer, furnish 

as part of the application, additional 

information as may be necessary to 

determine whether the application 

should be approved. If any of the 

submitted information changes during 

the pending application, the applicant 

shall immediately notify the appropriate 

TTB officer of the revised information. 

* * * * * 

■ 5. Section 24.110 is amended by: 

■ a. Revising paragraph (c); 

■ b. Removing the first parenthetical 

phrase at the end of the section; and 

■ c. Revising the second parenthetical 

phrase at the end of the section. 

The revisions read as follows: 

§ 24.110 Organizational documents. 

* * * * * 

(c) Statement of interest. (1) Sole 

proprietorships and general 

partnerships. In the case of an 

individual owner or a general 

partnership, the name and address of 

each person having an interest in the 

business and a statement indicating 

whether the interest appears in the 

name of the interested person or in the 

name of another person. 

(2) Limited liability entities. In the 

case of a corporation, limited liability 

partnership, limited liability company, 

or other legal entity in which some or 

all of the owners have limited personal 

liability for the activities of the entity: 

(i) The names and addresses of 

persons having a 10 percent or more 

ownership or other interest in each of 

the classes of ownership of the entity, 

and the nature and amount of 

ownership or other interest of each 

person. 

(ii) The name of the person in whose 

name the interest appears. If the limited 


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liability entity is under actual or legal 

control of another limited liability 

entity, the appropriate TTB officer may 

request the same information regarding 

ownership for the parent limited 

liability entity. 

(3) If any interested person named 

under paragraphs (c)(1) and (c)(2) of this 

section is a legal entity other than an 

individual, the name, title, and city and 

state of residence of a representative 

individual for the entity. The 

representative individual must be the 

individual designated by the entity to 

represent the entity’s interest in the 

applicant business or, in the absence of 

a designated individual, an owner, chief 

officer or manager, or person with 

similar authority within the entity. 

* * * * * 

(Approved by the Office of Management and 

Budget under control number 1513–0009) 

■ 6. Section 24.111 is revised to read as 

follows: 

§ 24.111 Description of premises. 

(a) As required by § 24.109(f), the 

application for registration must include 

a description of wine premises. The 

description may be in narrative form or 

diagram form, and must illustrate: 

(1) The outline and dimensions of the 

building(s) where wine operations will 

occur; 

(2) If the wine premises does not 

occupy the entirety of the building(s), 

the outline and dimensions of the wine 

premises within the building(s); 

(3) If the wine premises includes both 

bonded wine premises and taxpaid wine 

premises, the outline and dimensions of 

each; 

(4) The external doors of the wine 

premises; and 

(5) The outline and dimensions of any 

portions of the wine premises that are 

outdoors, including the location of any 

outdoor tanks. 

(b) Photographs further illustrating 

any of the elements required in 

paragraph (a) of this section must be 

submitted upon request of the 

appropriate TTB officer. 

(Approved by the Office of Management and 

Budget under control number 1513–0009) 

■ 7. Section 24.113 is revised to read as 

follows: 

§ 24.113 Description of volatile fruit-flavor 

concentrate operations. 

Each applicant intending to produce 

volatile fruit-flavor concentrate and 

each approved proprietor of a bonded 

wine premises who produces volatile 

fruit-flavor concentrate shall provide, 

upon request of the appropriate TTB 

officer, a step-by-step description of 

their production procedure. The 

description will commence with the 

obtaining of juice from the fruit and 

continue through each step of the 

process to removal of volatile fruitflavor concentrate from the system. If 

volatile fruit-flavor concentrate 

containing more than 24 percent alcohol 

(high-proof concentrates (essences)) is to 

be produced, the applicant or proprietor 

shall indicate any step in the production 

procedure at which any spirits may be 

fit for beverage purposes. For each kind 

of fruit used, the description must 

include the maximum quantity (in 

gallons) of fruit must used and volatile 

fruit-flavor concentrate produced in 24 

hours, the maximum and minimum 

fold, and the maximum percent of 

alcohol in the volatile fruit-flavor 

concentrate. 

(Approved by the Office of Management and 

Budget under control number 1513–0009) 

§ 24.120 [Amended] 

■ 8. Section 24.120 is amended by: 

■ a. Removing the phrase ‘‘30 days’’ and 

adding in its place ‘‘60 days’’ in the first 

sentence; 

■ b. Removing the first parenthetical 

phrase at the end of the section; and 

■ c. Removing the OMB control number 

‘‘1512–0058’’ in the second 

parenthetical phrase at the end of the 

section and adding, in its place, the 

OMB control number ‘‘1513–0009’’. 

■ 9. Section 24.122 is revised to read as 

follows: 

§ 24.122 Change in name of proprietor or 

trade name. 

(a) Legal name. Where there is to be 

a change in the name of the proprietor, 

the proprietor shall file an amended 

application and, if a basic permit has 

been issued under the Federal Alcohol 

Administration Act (49 Stat. 978; 27 

U.S.C. 203), an application for 

amendment of the basic permit. 

Operations under a new name may not 

be conducted before approval of the 

amended application or issuance of an 

amended permit, as the case may be. 

(b) Trade name. Where there is a 

change in or addition of a trade name, 

the proprietor must first file a letterhead 

notice with the appropriate TTB officer 

listing the new names and the offices 

where they are registered. The 

proprietor is not required to file another 

letterhead notice of a change in or 

addition of a trade name if the 

proprietor has previously filed a 

letterhead notice pursuant to 27 CFR 

1.40 notifying TTB of the same change 

in or addition of a trade name. 

(Approved by the Office of Management and 

Budget under control number 1513–0009 and 

1513–0057) 

■ 10. Section 24.123 is revised to read 

as follows: 

§ 24.123 Change in ownership interests. 

(a) General. If there is a change in the 

list of persons with ownership interests 

submitted pursuant to § 24.110(c), the 

proprietor may, in lieu of submission 

within 60 days of the change under the 

provisions of § 24.120, submit a new list 

of persons with ownership interests 

annually on May 1, or any other 

approved date, to the appropriate TTB 

officer, provided that the change in 

ownership interest(s) does not result in 

a change in control of the business. 

(b) Changes in control. (1) Wine 

premises required to maintain a basic 

permit. For wine premises required to 

obtain and maintain an FAA Act basic 

permit as described in § 24.106 and 27 

CFR part 1, where a change in 

ownership interests results in a change 

in the actual or legal control of the 

business, the proprietor must submit a 

new list of persons with ownership 

interests to the appropriate TTB officer 

within 30 days of the change. The 

proprietor’s application for a new FAA 

Act basic permit, required under 27 CFR 

1.44 and 24.121 and containing such 

information as required under 

§ 24.110(c), will serve as adequate 

notice for purposes of this paragraph. 

(2) Wine premises not required to 

maintain a basic permit. For wine 

premises, subject to this part, other than 

those described in § 24.106 and 27 CFR 

part 1, where a change in ownership 

interests results in a change in legal 

control of the business, the proprietor 

must submit a letterhead notice 

containing a new list of persons with 

ownership interests to the appropriate 

TTB officer within 60 days of the 

change. 

(Approved by the Office of Management and 

Budget under control number 1513–0009) 

§ 24.124 [Amended] 

■ 11. Section 24.124 is amended by: 

■ a. Removing the phrase ‘‘30 days’’ and 

adding in its place ‘‘60 days’’ in the first 

sentence; 

■ b. Removing the phrase ‘‘an amended 

application supported by’’ and adding 

in its place ‘‘a letterhead notice 

providing’’ in the first sentence; 

■ c. Removing the phrase ‘‘an amended 

application’’ and adding in its place ‘‘a 

letterhead notice’’ in the second 

sentence; 

■ d. Removing the first parenthetical 

phrase at the end of the section; and 

■ e. Removing the OMB control number 

‘‘1512–0058’’ in the second 

parenthetical phrase at the end of the 

section and adding, in its place, the 

OMB control number ‘‘1513–0009’’. 


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■ 12. Section 24.130 is revised to read 

as follows: 

§ 24.130 Change in volatile fruit-flavor 

concentrate operations. 

Prior to using any new still in the 

production of volatile fruit-flavor 

concentrate, the proprietor must submit 

a letterhead notice to the appropriate 

TTB officer describing the kind, 

capacity, and intended use of the still. 

Such letterhead notice will satisfy the 

still registration requirement set forth at 

27 CFR 24.114. 

(Approved by the Office of Management and 

Budget under control number 1513–0057) 

■ 13. Section 24.131 is revised to read 

as follows: 

§ 24.131 Change in premises. 

(a) Where a proprietor intends to 

make any change to the wine premises, 

other than those covered by §§ 24.135— 

24.137, that would render inaccurate the 

description submitted with the 

application to establish the wine 

premises or submitted separately or 

previously by the proprietor with 

another reported change, the proprietor 

must first submit to TTB updated 

information meeting the requirements of 

§ 24.111 and obtain TTB approval prior 

to making the change. Updated premises 

descriptions may be submitted on form 

TTB F 5120.25 or its electronic 

equivalent. 

(b) In cases of natural disaster or other 

similar emergency, the proprietor may 

make temporary changes to the premises 

(as described in paragraph (a) of this 

section) without first submitting an 

updated premises description. However, 

the proprietor must report any such 

change(s) to the appropriate TTB officer 

through a letterhead notice within 10 

days. The proprietor must then return 

their premises to the condition reflected 

in the approved premises description on 

file under § 24.111 within 60 days 

unless the proprietor files for TTB 

approval to make permanent changes to 

the premises pursuant to paragraph (a) 

of this section. 

(Approved by the Office of Management and 

Budget under control number 1513–0009) 

■ 14. Section 24.135 is amended by: 

■ a. Revising paragraph (b)(3); 

■ b. Removing the first parenthetical 

phrase at the end of the section; and 

■ c. Removing the OMB control number 

‘‘1512–0058’’ in the second 

parenthetical phrase at the end of the 

section and adding, in its place, the 

OMB control number ‘‘1513–0009’’. 

The revision reads as follows: 

§ 24.135 Wine premises alternation. 

* * * * * 

(b) * * * 

(3) Additional versions of the 

description required under § 24.109(f) 

describing or showing the premises as 

they will exist, both during extension 

and curtailment, and clearly depicting 

all buildings, floors, rooms, areas, and 

equipment that are to be subject to 

alternation, in their relative operating 

sequence; and 

* * * * * 

■ 15. Section 24.136 is amended by: 

■ a. Revising paragraphs (a) and (b); and 

■ b. Removing the first parenthetical 

phrase at the end of the section; and 

■ c. Revising the second parenthetical 

phrase at the end of the section. 

The revisions read as follows: 

§ 24.136 Procedure for alternating 

proprietors. 

(a) General. Wine premises, or parts 

thereof, may be operated alternately by 

proprietors who have each filed and 

received approval of the necessary 

applications and bonds and have 

qualified under the provisions of this 

part. Where operations by alternating 

proprietors are limited to parts of the 

wine premises, the descriptions 

required to be submitted with each 

proprietor’s application for registration 

under § 24.109(f) must additionally 

illustrate the following: 

(1) The areas, rooms, or buildings, or 

combination of rooms and/or buildings, 

that will alternate between proprietors; 

and 

(2) The means by which the alternated 

premises will be separated from any 

premises that will not be alternated. 

(b) Alternation. Once the qualifying 

documents have been approved, and 

operations initiated, the wine premises, 

or parts thereof, may be alternated. Any 

transfer of wine, spirits, or other 

accountable materials from one 

proprietor to the other proprietor will be 

indicated in the records and reports of 

each proprietor. Operation of a bonded 

winery engaged in the production of 

wine by an alternate proprietor will be 

at least one calendar day in length. All 

operations in any area, building, floor, 

or room to be alternated will be 

completely finished and all wine, 

spirits, and other accountable materials 

will be removed from the alternated 

wine premises or transferred to the 

incoming proprietor. However, wine, 

spirits, and other accountable materials 

may be retained in locked tanks at wine 

premises to be alternated and remain in 

the custody of the outgoing proprietor. 

* * * * * 

(Approved by the Office of Management and 

Budget under control numbers 1513–0009, 

1513–0053, and 1513–0115) 

■ 16. Section 24.137 is amended by: 

■ a. Revising paragraph (b)(2); 

■ b. Removing the first parenthetical 

phrase at the end of the section; and 

■ c. Removing the OMB control number 

‘‘1512–0058’’ in the second 

parenthetical phrase at the end of the 

section and adding, in its place, the 

OMB control number ‘‘1513–0009’’. 

The revision reads as follows: 

§ 24.137 Alternate use of the wine 

premises for customs purposes. 

* * * * * 

(b) * * * 

(2) Additional versions of the 

description required under § 24.109(f) 

describing or showing the areas, rooms, 

or buildings, or combination of rooms 

and/or buildings that will be alternated, 

and the means by which the alternated 

premises will be separated from any 

premises that will not be alternated; and 

* * * * * 

■ 17. Add § 24.171 to subpart E to read 

as follows: 

§ 24.171 Security. 

Security measures at the wine 

premises will be of a class and 

construction designed to prevent 

unauthorized access to, and theft of, 

commercial property. 

■ 18. Section 24.300 is amended by: 

■ a. Revising paragraph (e); 

■ b. Revising the heading of paragraph 

(f); 

■ c. Removing the first parenthetical 

phrase at the end of the section; and 

■ d. Revising the second parenthetical 

phrase at the end of the section. 

The revisions read as follows: 

§ 24.300 General. 

* * * * * 

(e) Availability of records. The records 

required by this part must be available 

for inspection by the appropriate TTB 

officer during normal business hours. If 

a proprietor desires to keep the required 

records at any location other than the 

wine premises, they must first provide 

a letterhead notice to the appropriate 

TTB officer of the location where the 

records are to be kept. Any proprietor 

keeping records at a location other than 

the wine premises where operations or 

transactions occur must make them 

available at the wine premises upon 

request of the appropriate TTB officer; 

however, the proprietor may supply 

copies (including electronic copies) of 

such records as provided in paragraph 

(f) of this section. 


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80172 Federal Register / Vol. 89, No. 191 / Wednesday, October 2, 2024 / Proposed Rules 

(f) Copies of records. * * *. 

* * * * * 

(Approved by the Office of Management and 

Budget under control numbers 1513–0053, 

1513–0057, and 1513–0115) 

Signed: September 23, 2024. 

Mary G. Ryan, 

Administrator. 

Approved: September 24, 2024. 

Aviva R. Aron-Dine, 

Deputy Assistant Secretary, Tax Policy. 

[FR Doc. 2024–22470 Filed 10–1–24; 8:45 am] 

BILLING CODE 4810–31–P 

DEPARTMENT OF VETERANS 

AFFAIRS 

38 CFR Part 81 

RIN 2900–AS17 

Legal Services for Veterans—Legal 

Assistance for Access to VA Programs 

Grant Program 

AGENCY: Department of Veterans Affairs. 

ACTION: Proposed rule. 

SUMMARY: The Department of Veterans 

Affairs (VA) proposes to amend its 

regulations to implement a new 

authority requiring VA to establish a 

pilot program to assess the feasibility of 

awarding grants to eligible entities to 

establish new legal assistance clinics or 

enhance existing legal assistance clinics 

and pro bono efforts to provide certain 

legal assistance to veterans and 

individuals who served in the Armed 

Forces. This rulemaking provides 

proposed grant program eligibility 

criteria, application requirements, 

scoring criteria, constraints on the 

allocation and use of grant funds, and 

other requirements necessary to 

implement the grant program. 

DATES: Comments must be received on 

or before December 2, 2024. 

ADDRESSES: Comments may be 

submitted through www.regulations.gov. 

Except as provided below, comments 

received before the close of the 

comment period will be available at 

www.regulations.gov for public viewing, 

inspection, or copying, including any 

personally identifiable or confidential 

business information that is included in 

a comment. We post the comments 

received before the close of the 

comment period on 

www.regulations.gov as soon as possible 

after they have been received. VA will 

not post on www.regulations.gov public 

comments that make threats to 

individuals or institutions or suggest 

that the commenter will take actions to 

harm an individual. VA encourages 

individuals not to submit duplicative 

comments; however, we will post 

comments from multiple unique 

commenters even if the content is 

identical or nearly identical to other 

comments. Any public comment 

received after the comment period’s 

closing date is considered late and will 

not be considered in the final 

rulemaking. In accordance with the 

Providing Accountability Through 

Transparency Act of 2023, a 100 word 

Plain-Language Summary of this 

proposed rule is available at 

Regulations.gov, under RIN 2900–AS17. 

FOR FURTHER INFORMATION CONTACT: 

Madolyn Gingell, National Coordinator, 

Legal Services for Veterans, Veterans 

Justice Programs, Clinical Services, 

Veterans Health Administration, 

Department of Veterans Affairs, at 

Madolyn.Gingell@va.gov or (239) 223– 

4681. 

SUPPLEMENTARY INFORMATION: 

Background 

On January 1, 2021, the William M. 

(Mac) Thornberry National Defense 

Authorization Act for Fiscal Year 2021, 

Public Law 116–283 (the Act), was 

signed into law and authorized 

appropriations for defense activities and 

various other purposes. Section 548(b) 

of the Act directed the Secretary of VA 

(Secretary) to establish a pilot program 

to assess the feasibility and advisability 

of awarding grants to eligible entities to 

establish new legal assistance clinics or 

enhance existing legal assistance clinics 

or other pro bono efforts in locations 

other than VA facilities to provide 

certain legal assistance to veterans and 

individuals who served in the Armed 

Forces. VA proposes to implement this 

pilot program by creating the Legal 

Services for Veterans—Legal Assistance 

for Access to VA Programs Grant 

Program (Grant Program) in new part 81 

of title 38, Code of Federal Regulations 

(CFR). 

The primary purpose of the Grant 

Program is to provide certain legal 

assistance to former service members to 

assist them in gaining access to VA 

benefits. Because a former service 

member’s discharge is often a barrier to 

VA benefits, VA believes the Grant 

Program would provide needed 

assistance with improving the character 

of discharge for those individuals whose 

current discharge status renders them 

ineligible for VA benefits. Attorneys are 

well-suited to help individuals navigate 

these processes, and the proposed Grant 

Program would directly fund the 

provision of legal assistance with any 

VA program, with improving the status 

of a military discharge or 

characterization of service, and with 

seeking a review of a military record 

before a board of correction of military 

or naval records, consistent with 

Section 548(b) of the Act. The Grant 

Program would serve a broad group of 

individuals, not just those who meet the 

statutory definition of veteran under 38 

U.S.C. 101(2), and would also assist any 

individual discharged or released from 

the Armed Forces, including those who 

served in a reserve component. 

To be eligible for VA programs and 

services, an individual’s military 

discharge or release must generally be 

under ‘‘other than dishonorable 

conditions’’ (e.g., honorable, under 

honorable conditions, general), a 

standard established in the statutory 

definition of veteran under 38 U.S.C. 

101(2). A military discharge or release 

under certain conditions, regardless of 

the character of service listed on an 

individual’s Certificate of Uniformed 

Service (DD Form 214/5), could also 

constitute a statutory bar to VA 

programs and services under 38 U.S.C. 

5303. However, in certain 

circumstances, individuals that do not 

meet the statutory definition under 38 

U.S.C. 101(2) could qualify for VA 

programs and services if they receive a 

favorable outcome through a military 

service discharge review board, a board 

for correction of military or naval 

records, or VA’s character of discharge 

determination. 

In late September 2021, VA sought 

input from 18 veterans service 

organizations and legal services 

organizations to inform development of 

the criteria and requirements for 

implementation of the Grant Program. 

VA asked the organizations to provide 

comments on: (1) the types of VA 

programs to be focused on; (2) any 

additional assistance that should be 

provided beyond what is specified in 

the Act; (3) criteria that should be 

emphasized during the grant selection 

process; (4) how VA should require 

grantees to target individuals eligible to 

receive legal assistance without regard 

for the conditions of discharge or release 

from the Armed Forces; (5) criteria that 

should be used to assess the 

effectiveness of the Grant Program; (6) 

and any additional factors VA should 

consider for the Grant Program. 

VA received input from two veterans 

service organizations and three legal 

services organizations. Multiple 

commenters stated the Grant Program 

should prioritize approving grant 

applicants that: operate in underserved 

areas; would provide legal assistance to 

improve the status of a military 

discharge or characterization of service; 

and would provide legal assistance to 


lotter on DSK11XQN23PROD with PROPOSALS1