Base
Proposed RuleSignificant2023-191772023-09-08

Definition of “Engaged in the Business” as a Dealer in Firearms

Justice Department, Alcohol, Tobacco, Firearms, and Explosives Bureau

Abstract

The Department of Justice ("Department") proposes amending Bureau of Alcohol, Tobacco, Firearms, and Explosives ("ATF") regulations to implement the provisions of the Bipartisan Safer Communities Act ("BSCA"), effective June 25, 2022, that broaden the definition of when a person is considered "engaged in the business" as a dealer in firearms other than a gunsmith or pawnbroker. This proposed rule incorporates the BSCA's definition of "predominantly earn a profit," creates a stand-alone definition of "terrorism," and amends the definitions of "principal objective of livelihood and profit" and "engaged in the business" to ensure each conforms with the BSCA's statutory changes and can be relied upon by the public. The proposed rule also clarifies what it means for a person to be "engaged in the business" of dealing in firearms, and to have the intent to "predominantly earn a profit" from the sale or disposition of firearms. In addition, it clarifies the term "dealer," including how that term applies to auctioneers, and defines the term "responsible person." These proposed changes would assist persons in understanding when they are required to have a license to deal in firearms. Consistent with the Gun Control Act ("GCA") and existing regulations, the proposed rule also defines the term "personal collection" to clarify when persons are not "engaged in the business" because they make only occasional sales to enhance a personal collection, or for a hobby, or if the firearms they sell are all or part of a personal collection. This proposed rule further addresses the lawful ways in which former licensees, and responsible persons acting on behalf of such licensees, may liquidate business inventory upon revocation or other termination of their license. Finally, the proposed rule clarifies that a licensee transferring a firearm to another licensee must do so by following the verification and recordkeeping procedures instead of using a Firearms Transaction Record, ATF Form 4473.

Action & Dates

Action
Notice of proposed rulemaking; request for comment.
Dates
Written comments must be post-marked and electronic comments must be submitted on or before December 7, 2023. Commenters should be aware that the electronic Federal Docket Management System will not accept comments after midnight Eastern Time on the last day of the comment period.

CFR References

Topics

Administrative practice and procedureArms and munitionsExportsFreightImportsIntergovernmental relationsLaw enforcement officersMilitary personnelPenaltiesReporting and recordkeeping requirementsResearchSeizures and forfeituresTransportation

Public Comment

Comments Close
2023-12-07

Document Excerpt

Document Headings Document headings vary by document type but may contain the following: the agency or agencies that issued and signed a document the number of the CFR title and the number of each part the document amends, proposes to amend, or is directly related to the agency docket number / agency internal file number the RIN which identifies each regulatory action listed in the Unified Agenda of Federal Regulatory and Deregulatory Actions See the Document Drafting Handbook for more details. Department of Justice Bureau of Alcohol, Tobacco, Firearms, and Explosives 27 CFR Part 478 [Docket No. ATF 2022R-17; AG Order No. 5781-2023] RIN 1140-AA58 AGENCY: Bureau of Alcohol, Tobacco, Firearms, and Explosives, Department of Justice. ACTION: Notice of proposed rulemaking; request for comment. SUMMARY: The Department of Justice (“Department”) proposes amending Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) regulations to implement the provisions of the Bipartisan Safer Communities Act (“BSCA”), effective June 25, 2022, that broaden the definition of when a person is considered “engaged in the business” as a dealer in firearms other than a gunsmith or pawnbroker. This proposed rule incorporates the BSCA's definition of “predominantly earn a profit,” creates a stand-alone definition of “terrorism,” and amends the definitions of “principal objective of livelihood and profit” and “engaged in the business” to ensure each conforms with the BSCA's statutory changes and can be relied upon by the public. The proposed rule also clarifies what it means for a person to be “engaged in the business” of dealing in firearms, and to have the intent to “predominantly earn a profit” from the sale or disposition of firearms. In addition, it clarifies the term “dealer,” including how that term applies to auctioneers, and defines the term “res

Read full document on FederalRegister.gov →

Related Documents

Other Federal Register documents from the same docket.

Full Document

Citation: 88 FR 61993