[Title 31 CFR 27]
[Code of Federal Regulations (annual edition) - July 1, 2002 Edition]
[Title 31 - MONEY AND FINANCE: TREASURY]
[Part 27 - CIVIL PENALTY ASSESSMENT FOR MISUSE OF DEPARTMENT OF THE TREASURY NAMES, SYMBOLS, ETC.]
[From the U.S. Government Printing Office]


31MONEY AND FINANCE: TREASURY12002-07-012002-07-01false27PART 27MONEY AND FINANCE: TREASURY
PART 27--CIVIL PENALTY ASSESSMENT FOR MISUSE OF DEPARTMENT OF THE TREASURY NAMES, SYMBOLS, ETC.--Table of Contents




Sec.
27.1  Purpose.
27.2  Definitions.
27.3  Assessment of civil penalties.
27.4  Factors to be considered.
27.5  Initial Notice of Assessment.
27.6  Written response.
27.7  Final Notice of Assessment.
27.8  Judicial review.

    Authority: 31 U.S.C. 321, 333.

    Source: 62 FR 42213, Aug. 6, 1997, unless otherwise noted.



Sec. 27.1  Purpose.

    (a) The regulations in this part implement the provisions of 31 
U.S.C. 333(c), which authorizes the Secretary of the Treasury to assess 
a civil penalty against any person who has misused the words, titles, 
abbreviations, initials, symbols, emblems, seals, or badges of the 
Department of the Treasury or any subdivision thereof in violation of 31 
U.S.C. 333(a), in accordance with that section and this part.
    (b) The regulations in this part do not apply to the extent that the 
Secretary or his/her designee has specifically authorized the person to 
manufacture, produce, sell, possess, or use the words, titles, 
abbreviations, initials, symbols, emblems, seals, or badges by written 
contract, agreement, or letter.



Sec. 27.2  Definitions.

    (a) The term ``assessing official'' means:
    (1) The head of a bureau or other subdivision of the Department of 
the Treasury who has been delegated the authority to assess civil 
penalties under 31 U.S.C. 333(c); or
    (2) An officer or employee of a bureau or subdivision at the grade 
of GS-15 or above to whom such authority has been redelegated by the 
head of such bureau or subdivision.
    (b) The term ``broadcast'' or ``telecast'' mean widespread 
dissemination by electronic transmission or method, whether audio and/or 
visual.
    (c) The term ``civil penalty'' means:
    (1) A civil monetary penalty; and
    (2) Any other civil or equitable remedy deemed necessary to rectify 
the potential for a continued misuse or harm from an activity found to 
have been in violation of 31 U.S.C. 333 or this part.
    (d) The term ``date of offense'' means the later of--
    (1) The date that the misuse occurred;
    (2) The date that the misuse had the effect of conveying the false 
impression that the activity was associated with or approved, endorsed, 
sponsored or authorized by the Department or any of its subdivisions or 
officers or employees; or
    (3) If the violation is a continuing one, the date on which the 
misuse of the words, titles, abbreviations, initials, symbols, emblems, 
seals, or badges protected by this part last occurred.
    (e) The term ``days'' means calendar days, unless otherwise stated.
    (f) The term ``person'' means an individual, partnership, 
association, corporation, company, business, firm, manufacturer, or any 
other organization or institution.



Sec. 27.3  Assessment of civil penalties.

    (a) General Rule. An assessing official may impose a civil penalty 
on any person--
    (1) Who uses in connection with, or as a part of, any advertisement, 
solicitation, business activity, or product, whether alone or with other 
words, letters, symbols, or emblems;
    (i) The words ``Department of the Treasury,'' ``United States Secret 
Service,'' ``United States Customs Service,'' ``Internal Revenue 
Service,'' ``Bureau of Alcohol, Tobacco and Firearms,'' ``Bureau of the 
Public Debt,'' ``Bureau of Engraving and Printing,'' ``Comptroller of 
the Currency,'' ``Federal Law

[[Page 260]]

Enforcement Training Center,'' ``Financial Crimes Enforcement Network,'' 
``United States Mint,'' or the name of any service, bureau, office, or 
other subdivision of the Department of the Treasury;
    (ii) The titles ``Secretary of the Treasury,'' ``Treasurer of the 
United States,'' ``Director of the Secret Service,'' ``Commissioner of 
Customs,'' ``Commissioner of Internal Revenue,'' ``Director, Bureau of 
Alcohol, Tobacco and Firearms,'' ``Commissioner of the Public Debt,'' 
``Director of the Bureau of Engraving and Printing,'' ``Comptroller of 
the Currency,'' ``Director of the Federal Law Enforcement Training 
Center,'' ``Director of the Financial Crimes Enforcement Network,'' 
``Director of the United States Mint,'' or the title of any other 
officer or employee of the Department of the Treasury or subdivision 
thereof;
    (iii) The abbreviations or initials of any entity or title referred 
to in paragraph (a)(1)(i) or (a)(1)(ii) of this section, including but 
not limited to ``USSS,'' ``USCS,'' ``IRS,'' ``ATF,'' or ``BATF,'' 
``BPD,'' ``FLETC,'' ``FINCEN'' or ``FinCEN,''and ``SBMO'';
    (iv) The words ``United States Savings Bond,'' including any 
variation thereof, or the name of any other security, obligation, or 
financial instrument issued by the Department of the Treasury or any 
subdivision thereof;
    (v) Any symbol, emblem, seal, or badge of an entity referred to in 
paragraph (a)(1)(i) of this section (including the design of any 
envelope, stationery, or identification card used by such an entity); or
    (vi) Any colorable imitation of any such words, titles, 
abbreviations, initials, symbol, emblem, seal, or badge; and
    (2) Where such use is in a manner that could reasonably be 
interpreted or construed as conveying the false impression that such 
advertisement, solicitation, business activity, or product is in any 
manner approved, endorsed, sponsored, or authorized by, or associated 
with the Department of the Treasury or any entity referred to in 
paragraph (a)(1)(i) of this section, or any officer, or employee 
thereof.
    (b) Disclaimers. Any determination of whether a person has violated 
the provisions of paragraph (a) of this section shall be made without 
regard to any use of a disclaimer of affiliation with the United States 
Government or any particular agency or instrumentality thereof.
    (c) Civil Penalty. An assessing official may impose a civil penalty 
on any person who violates the provisions of paragraph (a) of this 
section. The amount of a civil monetary penalty shall not exceed $5,000 
for each and every use of any material in violation of paragraph (a), 
except that such penalty shall not exceed $25,000 for each and every use 
if such use is in a broadcast or telecast.
    (d) Time Limitations. (1) Civil penalties imposed under this part 
must be assessed before the end of the three year period beginning on 
the date of offense charged.
    (2) An assessing official may commence a civil action to recover or 
enforce any civil penalty imposed in a Final Notice of Assessment issued 
pursuant to Sec. 27.7 at any time before the end of the two year period 
beginning on the date of the Final Notice of Assessment. If judicial 
review of the Final Notice of Assessment is sought, the two year period 
begins to run from the date that a final and unappealable court order is 
issued.
    (e) Criminal Proceeding. No civil penalty may be imposed under this 
part with respect to any violation of paragraph (a) of this section 
after a criminal proceeding on the same violation has been commenced by 
indictment or information under 31 U.S.C. 333(d).



Sec. 27.4  Factors to be considered.

    The assessing official will consider relevant factors when 
determining whether to assess or impose a civil penalty under this part, 
and the amount of a civil monetary penalty. Those factors may include, 
but are not limited to, the following:
    (a) The scope of the misuse;
    (b) The purpose and/or nature of the misuse;
    (c) The extent of the harm caused by the misuse;
    (d) The circumstances of the misuse; and
    (e) The benefit intended to be derived from the misuse.

[[Page 261]]



Sec. 27.5  Initial Notice of Assessment.

    The assessing official shall serve an Initial Notice of Assessment 
by United States mail or other means upon any person believed to be in 
violation of Sec. 27.3 and otherwise subject to a civil penalty. The 
notice shall provide the name and telephone number of an agency officer 
or employee who can provide information concerning the notice and the 
provisions of this part, and shall include the following:
    (a) A specific reference to the provisions of Sec. 27.3 violated;
    (b) A concise statement of the facts that support the conclusion 
that such a violation occurred;
    (c) The amount of the penalty proposed, and/or any other proposed 
civil or equitable remedy;
    (d) A notice informing the person alleged to be in violation of 
Sec. 27.3 that he/she:
    (1) May, within 30 days of the date of the notice, pay the proposed 
civil monetary penalty and consent to each proposed civil or equitable 
remedy, thereby waiving the right to make a written response under 
Sec. 27.6 and to seek judicial review under Sec. 27.8:
    (i) By electronic funds transfer (EFT) in accordance with 
instructions provided in the notice, or
    (ii) By means other than EFT only with the written approval of the 
assessing official;
    (2) May make a written response within 30 days of the date of the 
notice asserting, as appropriate:
    (i) Why a civil monetary penalty and/or other civil or equitable 
remedy should not be imposed;
    (ii) Why a civil monetary penalty should be in a lesser amount than 
proposed; and
    (iii) Why the terms of a proposed civil or equitable remedy should 
be modified;
    (3) May be represented by an attorney or other representative, 
provided that a designation of representative signed by the person 
alleged to be in violation is received by the assessing official; and
    (4) May request, within 20 days of the date of the notice, a copy of 
or opportunity to review any documents and/or other evidence compiled 
and relied on by the agency in determining to issue the notice (the 
assessing official reserves the right to assert privileges available 
under law and may decline to disclose certain documents and/or other 
evidence); and
    (e) The Initial Notice of Assessment shall also inform the person 
that:
    (1) If no written response is received within the time allowed in 
Sec. 27.6(b), a Final Notice of Assessment may be issued without a 
presentation by the person;
    (2) If a written response has been made and it is deemed necessary, 
the assessing official may request, orally or in writing, additional 
information from the respondent;
    (3) A Final Notice of Assessment may be issued in accordance with 
Sec. 27.7 requiring that the civil monetary penalty be paid and 
compliance with the terms of any other civil or equitable remedy;
    (4) A Final Notice of Assessment is subject to judicial review in 
accordance with 5 U.S.C. 701 et seq.; and
    (5) All submissions sent in response to the Initial
    Notice of Assessment must be transmitted to the address specified in 
the notice and include the name, address, and telephone number of the 
respondent.



Sec. 27.6  Written response.

    (a)(1) A person served with an Initial Notice of Assessment may make 
a written response explaining why the civil penalty should not be 
imposed, explaining why a civil monetary penalty should be in a lesser 
amount than proposed and/or explaining why the terms of a proposed civil 
or equitable remedy should be modified. The written response must 
provide:
    (i) A reference to and specifically identify the Initial Notice of 
Assessment involved;
    (ii) The full name of the person charged;
    (iii) If not a natural person, the name and title of the head of the 
organization charged; and
    (iv) If a representative of the person charged is filing the written 
response, a copy of the duly executed designation as representative.
    (2) The written response must admit or deny each violation of 
Sec. 27.3 charged

[[Page 262]]

in the Initial Notice of Assessment. Any charge not specifically denied 
will be presumed to be admitted. Where a charge is denied, the 
respondent shall specifically set forth the legal or factual basis upon 
which the charge is denied. If the basis of the written response is that 
the person charged is not the person responsible for the misuse(s) 
charged, the written response must set forth sufficient information to 
allow the agency to determine the truth of such an assertion. The 
written response should include any and all documents and/or other 
information that the respondent believes should be a part of the 
administrative record on the matter.
    (b) Time. (1) Except as provided in paragraph (b)(2) of this 
section, any written response made under this paragraph must be received 
not later than 30 days after the date of the Initial Notice of 
Assessment.
    (2) If a request for documents or other evidence is made pursuant to 
Sec. 27.5(d)(4), the written response must be received not later than 20 
days after the date of the Department's response to the request.
    (3)(i) In computing the number of days allowed for filing a written 
response under this paragraph, the first day counted is the day after 
the date of the Initial Notice of Assessment. If the last date on which 
the response is required to be filed by this paragraph is a Saturday, 
Sunday or Federal holiday, the response will be due on the next weekday 
after that date.
    (ii) If a response is transmitted by United States mail, it will be 
deemed timely filed if postmarked on or before the due date.
    (4) The assessing official may extend the period for making a 
written response under paragraphs (b)(1) and (b)(2) for good cause 
shown. Generally, failure to obtain representation in a timely manner 
will not be considered good cause.
    (c) Filing. A written response will be considered filed on the date 
received at the address specified in the Initial Notice of Assessment. 
The response may be sent by personal delivery, United States mail or 
commercial delivery. At the discretion of the assessing official, filing 
may be accomplished by facsimile or any other method deemed appropriate.
    (d) The assessing official will fully consider the facts and 
arguments submitted by the respondent in the written response and any 
other documents filed pursuant to this paragraph in determining whether 
to issue a Final Notice of Assessment under Sec. 27.7, the appropriate 
amount of the civil monetary penalty imposed and the terms of any other 
appropriate civil or equitable remedy.



Sec. 27.7  Final Notice of Assessment.

    (a) In making a final determination whether to impose a penalty, the 
assessing official shall take into consideration all available 
information in the administrative record on the matter, including all 
information provided in or with a written response timely filed by the 
respondent and any additional information provided pursuant to 
Sec. 27.5(e)(2). The assessing official will determine whether:
    (1) The facts warrant a conclusion that no violation has occurred; 
or
    (2) The facts warrant a conclusion that one or more violations have 
occurred; and
    (3) The facts and violations found justify the conclusion that a 
civil penalty should be imposed.
    (b) If the assessing official determines that no violation has 
occurred, the official shall promptly send a letter indicating that 
determination to the person served with an Initial Notice of Assessment 
and to any designated representative of such person.
    (c)(1) If it has been determined that a violation has occurred, the 
assessing official shall issue a Final Notice of Assessment to the 
person served with an Initial Notice of Assessment and to any designated 
representative of such person.
    (2) The assessing official may, in his/her discretion:
    (i) Impose a civil monetary penalty and/or any civil or equitable 
remedy deemed necessary to rectify the potential for a continued misuse 
or harm from the violation(s);
    (ii) Not impose a civil monetary penalty and/or civil or equitable 
remedy; or

[[Page 263]]

    (iii) Impose a civil monetary penalty and/or civil or equitable 
remedy and condition payment of the civil monetary penalty on the 
violator's future compliance with 31 U.S.C. 333, this part and any civil 
or equitable remedy contained in the Final Notice of Assessment. If a 
civil monetary penalty is imposed, the assessing official shall 
determine the appropriate amount of the penalty in accordance with 31 
U.S.C. 333(c)(2).
    (3) The Final Notice of Assessment shall:
    (i) Include:
    (A) A specific reference to the provisions of Sec. 27.3 found to 
have been violated;
    (B) A concise statement of the facts warranting a conclusion that a 
violations has occurred;
    (C) An analysis of how the facts and violation(s) justify the 
conclusion that a civil monetary penalty and/or civil or equitable 
remedy should be imposed; and
    (D) The amount of each civil monetary penalty imposed, a statement 
as to how the amount of each penalty was determined, and the terms of 
any civil or equitable remedy deemed necessary to rectify the potential 
for a continued misuse or harm from the violation(s); and
    (ii) Inform the person that:
    (A) Payment of a civil monetary penalty imposed by the Final Notice 
of Assessment must be made within 30 days of the date of the notice, and 
that any civil or equitable remedy imposed must be complied with as 
provided in the Final Notice of Assessment;
    (B) Payment of a civil monetary penalty imposed by the Final Notice 
of Assessment shall be by EFT in accordance with instructions provided 
in the notice, unless the assessing official has given written approval 
to have payment made by other means;
    (C) payment of a civil monetary penalty imposed by the Final Notice 
of Assessment constitutes consent by the person to comply with the terms 
of any civil or equitable remedy contained in the notice;
    (D) If payment of a civil monetary penalty imposed by the Final 
Notice of Assessment has been waived on the condition that the person 
comply with the terms of any civil or equitable remedy contained in the 
notice or comply in the future with 31 U.S.C. 333 and this part, failure 
by the person to so comply will make the civil monetary penalty payable 
on demand;
    (E) If a civil monetary penalty is not paid within 30 days of the 
date of the Final Notice of Assessment (or on demand under paragraph 
(C)(3)(ii)(D) of this sectiion), or if a civil or equitable remedy is 
not complied with in accordance with the terms of the notice, a civil 
action to collect the penalty or enforce compliance may be commenced at 
any time within two years of the date of the Final Notice of Assessment; 
and
    (F) Any civil monetary penalty and civil or equitable remedy imposed 
by the Final Notice of Assessment may be subject to judicial review in 
accordance with 5 U.S.C. 701 et seq.

[62 FR 42213, Aug. 6, 1997; 62 FR 44036, Aug. 18, 1997]



Sec. 27.8  Judicial review.

    A final Notice of Assessment issued under this party may be subject 
to judicial review pursuant to 5 U.S.C. 701 et seq.