Secure Gun Storage and Definition of “Antique Firearm”, 182-194 [2021-28398]
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Federal Register / Vol. 87, No. 2 / Tuesday, January 4, 2022 / Rules and Regulations
or local governmental unit (as defined
in § 1.103–1(a)) or a 501(c)(3)
organization (as defined in section
150(a)(4))) apply this section to all
modifications of the terms of contracts
that occur before that date. See section
7805(b)(7).
■ Par. 6. Section 1.1271–0 is amended
by adding entries for § 1.1275–2(m) to
read as follows:
§ 1.12711–0 Original issue discount;
effective date; table of contents.
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§ 1.12751–2 Special rules relating to debt
instruments.
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(m) Transition from certain interbank
offered rates.
(1) In general.
(2) Single qualified floating rate.
(3) Remote contingency.
(4) Change in circumstances.
(5) Applicability date.
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■ Par. 7. Section 1.1275–2 is amended
by adding paragraph (m) to read as
follows:
§ 1.12751 –2 Special rules relating to debt
instruments.
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(m) Transition from certain interbank
offered rates—(1) In general. This
paragraph (m) applies to a variable rate
debt instrument (as defined in § 1.1275–
5(a)) that provides both for a qualified
floating rate that references a
discontinued IBOR and for a
methodology to change that rate
referencing a discontinued IBOR to a
different rate in anticipation of the
discontinued IBOR becoming
unavailable or unreliable. For purposes
of this paragraph (m), discontinued
IBOR has the meaning provided in
§ 1.1001–6(h)(4). See § 1.1001–6 for
additional rules that may apply to a debt
instrument that provides for a rate
referencing a discontinued IBOR.
(2) Single qualified floating rate. If a
debt instrument is described in
paragraph (m)(1) of this section, the rate
referencing a discontinued IBOR and
the different rate are treated as a single
qualified floating rate for purposes of
§ 1.1275–5.
(3) Remote contingency. If a debt
instrument is described in paragraph
(m)(1) of this section, the possibility that
the discontinued IBOR will become
unavailable or unreliable is treated as a
remote contingency for purposes of
paragraph (h) of this section.
(4) Change in circumstances. If a debt
instrument is described in paragraph
(m)(1) of this section, the fact that the
discontinued IBOR has become
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unavailable or unreliable is not treated
as a change in circumstances for
purposes of paragraph (h)(6) of this
section.
(5) Applicability date. Paragraph (m)
of this section applies to debt
instruments issued on or after March 7,
2022. A taxpayer may choose to apply
paragraph (m) of this section to debt
instruments issued before March 7,
2022, provided that the taxpayer and all
related parties (within the meaning of
section 267(b) or section 707(b)(1) or
within the meaning of § 1.150–1(b) for a
taxpayer that is a State or local
governmental unit (as defined in
§ 1.103–1(a)) or a 501(c)(3) organization
(as defined in section 150(a)(4))) apply
paragraph (m) of this section to all debt
instruments issued before that date. See
section 7805(b)(7).
Par. 8. Section 1.7701(l)–3 is amended
by adding a sentence at the end of
paragraph (b)(2)(ii) to read as follows:
■
§ 1.77011 (l)–3 Recharacterizing financing
arrangements involving fast-pay stock.
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(b) * * *
(2) * * *
(ii) * * * See § 1.1001–6(e) for
additional rules that may apply to stock
that provides for a rate referencing a
discontinued IBOR, as defined in
§ 1.1001–6(h)(4).
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PART 301—PROCEDURE AND
ADMINISTRATION
Par. 9. The authority citation for part
301 continues to read in part as follows:
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Authority: 26 U.S.C. 7805 * * *
Par. 10. Section 301.7701–4 is
amended by adding a sentence at the
end of paragraph (c)(1) to read as
follows:
■
§ 301.7701301–4
Trusts.
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(c) * * *
(1) * * * See § 1.1001–6(f) of this
chapter for additional rules that may
apply to an investment trust that holds
one or more contracts that provide for
a rate referencing a discontinued IBOR,
as defined in § 1.1001–6(h)(4) of this
chapter, and for additional rules that
may apply to an investment trust with
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one or more ownership interests that
reference a discontinued IBOR.
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Douglas W. O’Donnell,
Deputy Commissioner for Services and
Enforcement.
Approved: December 19, 2021.
Lily Batchelder,
Assistant Secretary of the Treasury (Tax
Policy).
[FR Doc. 2021–28452 Filed 12–30–21; 4:15 pm]
BILLING CODE 4830–01–P
DEPARTMENT OF JUSTICE
Bureau of Alcohol, Tobacco, Firearms,
and Explosives
27 CFR Part 478
[Docket No. ATF 24P; AG Order No. 5304–
2021]
RIN 1140–AA10
Secure Gun Storage and Definition of
‘‘Antique Firearm’’
Bureau of Alcohol, Tobacco,
Firearms, and Explosives, Department of
Justice.
ACTION: Final rule.
AGENCY:
The Department of Justice is
amending the regulations of the Bureau
of Alcohol, Tobacco, Firearms, and
Explosives (‘‘ATF’’) to codify into
regulation certain provisions of the
Omnibus Consolidated and Emergency
Supplemental Appropriations Act,
1999. This rule amends ATF’s
regulations to account for the existing
statutory requirement that applicants for
Federal firearms dealer licenses certify
that secure gun storage or safety devices
will be available at any place where
firearms are sold under the license to
nonlicensed individuals. This
certification is already included in the
Application for Federal Firearms
License, ATF Form 7/7CR (‘‘Form 7/
7CR’’). The regulation also requires
applicants for manufacturer or importer
licenses to complete the certification if
the licensee will have premises where
firearms are sold to nonlicensees.
Moreover, the regulation requires that
the secure gun storage or safety devices
be compatible with the firearms offered
for sale by the licensee. Finally, it
conforms the regulatory definitions of
certain terms to the statutory language,
including the definition of ‘‘antique
firearm,’’ which is amended to include
certain modern muzzle loading firearms.
DATES: This rule is effective February 3,
2022.
SUMMARY:
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Federal Register / Vol. 87, No. 2 / Tuesday, January 4, 2022 / Rules and Regulations
FOR FURTHER INFORMATION CONTACT:
Vivian Chu, Office of Regulatory Affairs,
Enforcement Programs and Services,
Bureau of Alcohol, Tobacco, Firearms,
and Explosives, U.S. Department of
Justice, 99 New York Avenue NE,
Washington, DC 20226; telephone: (202)
648–7070.
SUPPLEMENTARY INFORMATION:
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I. Background
On October 21, 1998, Public Law 105–
277 (112 Stat. 2681), the Omnibus
Consolidated and Emergency
Supplemental Appropriations Act, 1999
(‘‘the Act’’), was enacted. Among other
things, the Act amended the Gun
Control Act of 1968, Public Law 90–618
(82 Stat. 1213) (‘‘GCA’’) (codified as
amended at 18 U.S.C. chapter 44). Some
of the GCA amendments made by the
Act are as follows: 1
(1) Secure Gun Storage. The Act
amended section 923(d)(1) of title 18,
United States Code, to require that, with
certain exceptions, applicants for
Federal firearms dealer licenses certify
the availability of secure gun storage or
safety devices at any place where
firearms are sold under the license to
nonlicensees. 18 U.S.C. 923(d)(1)(G).
The certification requirement does not
apply where a secure gun storage or
safety device is temporarily unavailable
because of theft, casualty loss, consumer
sales, backorders from a manufacturer,
or any other similar reason beyond the
control of the licensee. Id.
In addition, the Act amended 18
U.S.C. 923(e) to provide that the
1 The Child Safety Lock Act of 2005 (‘‘CSLA’’),
enacted as part of the Protection of Lawful
Commerce in Arms Act, Public Law 109–92 (119
Stat. 2095), amended the GCA by adding a new
subsection, 18 U.S.C. 922(z). This subsection
requires licensed importers, manufacturers, and
dealers to provide secure gun storage or safety
devices whenever they sell, deliver, or transfer any
handgun to a nonlicensed person. See 18 U.S.C.
922(z)(1). The CSLA was implemented primarily in
a final rule issued shortly before the NPRM was
issued for this rule. See Federal Firearms License
Proceedings—Hearings, 81 FR 32,230 (May 23,
2016) (amending 27 CFR 478.73, which provides
that a notice of suspension or revocation of a
license, or the imposition of a civil penalty, may be
issued whenever the ATF Director has reason to
believe that any licensee has violated § 922(z)(1) by
selling, delivering, or transferring any handgun to
any person other than a licensee, unless the
transferee was provided with a secure gun storage
or safety device for that handgun). Although the
requirements of the CSLA and the regulation at
issue in this rulemaking are in some respects
similar, the two requirements are distinct: The
CSLA requires that licensed importers,
manufacturers, and dealers actually provide a
secure gun storage or safety device to any
nonlicensee that receives a handgun, whereas the
regulation at issue in this rulemaking applies more
broadly to the sale of ‘‘firearms’’ (not just handguns)
to nonlicensees, but requires only that secure gun
storage or safety devices be made available (not
actually provided).
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Attorney General may revoke, after
notice and opportunity for hearing, the
license of any Federal firearms licensee
that fails to have secure gun storage or
safety devices available at any place
where firearms are sold under the
license to nonlicensees, subject to the
same exceptions noted above.
The Act defined the term ‘‘secure gun
storage or safety device’’ in 18 U.S.C.
921(a)(34) to mean: (1) A device that,
when installed on a firearm, is designed
to prevent the firearm from being
operated without first deactivating the
device; (2) a device incorporated into
the design of the firearm that is
designed to prevent the operation of the
firearm by anyone not having access to
the device; or (3) a safe, gun safe, gun
case, lock box, or other device that is
designed to be or can be used to store
a firearm and that is designed to be
unlocked only by means of a key, a
combination, or other similar means.
The provisions of the Act relating to
secure gun storage became effective
April 19, 1999.
(2) Definition of Antique Firearm. The
Act amended the definition of ‘‘antique
firearm’’ in the GCA to include certain
modern muzzle loading firearms.
Specifically, section 115 of the Act
amended the definition of ‘‘antique
firearm’’ in 18 U.S.C. 921(a)(16) to
include a weapon that is a muzzle
loading rifle, muzzle loading shotgun, or
muzzle loading pistol; that is designed
to use black powder or a black powder
substitute; and that cannot use fixed
ammunition. The term expressly does
not include any weapon that
incorporates a firearm frame or receiver;
any firearm converted into a muzzle
loading weapon; or any muzzle loading
weapon that can be readily converted to
fire fixed ammunition by replacing the
barrel, bolt, breechblock, or any
combination thereof. 18 U.S.C.
921(a)(16)(C).
The provisions of the Act relating to
antique firearms became effective upon
the date of enactment, October 21, 1998.
(3) Miscellaneous Amendments. Prior
to amendment by the Act, the term
‘‘rifle’’ was defined in the GCA to mean
‘‘a weapon designed or redesigned,
made or remade, and intended to be
fired from the shoulder and designed or
redesigned and made or remade to use
the energy of the explosive in a fixed
metallic cartridge to fire only a single
projectile through a rifled bore for each
single pull of the trigger.’’ 18 U.S.C.
921(a)(7) (1994). The Act amended the
definition of ‘‘rifle’’ by replacing the
words ‘‘the explosive in a fixed metallic
cartridge’’ with ‘‘an explosive.’’ See 18
U.S.C. 921(a)(7) (2018).
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Additionally, prior to amendment by
the Act, the term ‘‘shotgun’’ was defined
in the GCA to mean ‘‘a weapon designed
or redesigned, made or remade, and
intended to be fired from the shoulder
and designed or redesigned and made or
remade to use the energy of the
explosive in a fixed shotgun shell to fire
through a smooth bore either a number
of ball shot or a single projectile for each
single pull of the trigger.’’ 18 U.S.C.
921(a)(5) (1994). The Act amended the
definition of ‘‘shotgun’’ by replacing the
words ‘‘the explosive in a fixed shotgun
shell’’ with ‘‘an explosive.’’ See 18
U.S.C. 921(a)(5) (2018).
The provisions of the Act relating to
the miscellaneous amendments also
became effective upon the date of
enactment, October 21, 1998.
II. Proposed Rule
On May 26, 2016, the Department of
Justice (‘‘the Department’’) published in
the Federal Register a notice of
proposed rulemaking (‘‘NPRM’’) to
codify into regulation certain provisions
of the Act. Commerce in Firearms and
Explosives; Secure Gun Storage,
Amended Definition of Antique
Firearm, and Miscellaneous
Amendments, 81 FR 33448 (May 26,
2016). The rule proposed amending
ATF’s regulations to account for the
existing statutory requirement that
applicants for Federal firearms dealer
licenses certify that secure gun storage
or safety devices will be available at any
place where firearms are sold under the
license to nonlicensed individuals. This
certification is already included in ATF
Form 7/7CR. The NPRM also proposed
requiring applicants for Federal firearms
manufacturer or importer licenses to
complete the certification if the licensee
will have premises where firearms are
sold to nonlicensees.
Next, the Department proposed to
amend 27 CFR 478.11 by adding a
definition for the term ‘‘secure gun
storage or safety device’’ that tracks the
language in the statute, as well as a new
section 27 CFR 478.104 that specifies
the terms of the certification
requirement. Moreover, the proposed
regulation required that the secure gun
storage or safety device be compatible
with the firearms offered for sale by the
licensee. 81 FR at 33449. Therefore,
applicants under the proposed rule
would be required to certify the
availability of compatible secure gun
storage or safety devices at any place
where firearms were sold under the
license to nonlicensees.
The NPRM proposed applying the
certification requirement to applicants
for Federal firearms importer or
manufacturer licenses if the licensee has
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premises where firearms are sold to
nonlicensees. Federal regulations
provide that a licensed importer or a
licensed manufacturer may engage in
business on the licensed premises as a
dealer in the same type of firearms
authorized by the license to be imported
or manufactured. 27 CFR 478.41(b).
Accordingly, under the proposed rule,
an applicant for a Federal firearms
importer or manufacturer license that
engaged in business on the licensed
premises as a dealer of firearms to
nonlicensees was required to complete
the certification.
One provision of the Act provides
that, ‘‘[n]otwithstanding any other
provision of law, evidence regarding
compliance or noncompliance [with the
secure gun storage or safety device
requirement] shall not be admissible as
evidence in any proceeding of any
court, agency, board, or other entity.’’
Public Law 105–277, sec. 119, reprinted
in 18 U.S.C. 923 note. In the proposed
rule, ATF explained that this section
applies to civil liability actions against
dealers and other similar actions, and
not to proceedings associated with
license denials or revocations (or
appeals in Federal court from decisions
in such proceedings) involving
noncompliance with the secure gun
storage or safety device requirement of
the GCA. 81 FR at 33449. The proposed
rule amended 27 CFR 478.73 to clarify
that a notice of revocation of a Federal
firearms license may be issued
whenever the ATF Director has reason
to believe that a licensee fails to have
secure gun storage or safety devices
available at any place in which firearms
are sold under the license to persons
who are not licensees (except in any
case in which a secure gun storage or
safety device is temporarily unavailable
because of theft, casualty loss, consumer
sales, backorders from a manufacturer,
or any other similar reason beyond the
control of the licensee). Id. at 33453.
Finally, the Department proposed to
amend 27 CFR 478.11 to reflect the
definitions of the terms ‘‘antique
firearm,’’ ‘‘rifle,’’ and ‘‘shotgun’’ set
forth in the Act. Id.
Comments on the notice of proposed
rulemaking were to be submitted to ATF
on or before August 24, 2016.
III. Comment Analysis and Department
Response
In response to the NPRM, with respect
to an industry that includes
approximately 59,909 federally licensed
firearms dealers (including
pawnbrokers), 12,673 licensed firearms
manufacturers, and 1,054 licensed
firearms importers, ATF received only
four comments. This small number of
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responses indicates that a broad
majority of the firearms industry accepts
codification of behavior that has been
statutorily required for more than 20
years.
A. Comments on Impact on
Manufacturers and Importers
1. Comments Received
One commenter argued that the
proposed rule imposes the certification
requirement on all manufacturers and
importers that sell firearms to the
public, despite the fact that the statute
requires only that dealers in firearms
meet the certification requirement.
Further, according to the commenter,
forcing manufacturers and importers to
have secure gun storage available and
perhaps even to ‘‘use’’ such secure gun
storage could create a burdensome and
expensive requirement. Requiring
firearms, many of which might not even
be finished, to be stored under lock and
key every night would, in the opinion
of the commenter, be difficult, time
consuming, and cost-prohibitive.
Therefore, according to the commenter,
the proposed rule violated Federal law
by creating new requirements for
licensees.
2. Department Response
The Department disagrees with the
comment that ATF does not have the
statutory authority to require licensed
manufacturers and importers to certify
that secure gun storage or safety devices
will be available at any place in which
firearms are sold to nonlicensees. Under
18 U.S.C. 923(a), the license application
must be in such form and contain the
information necessary to determine
eligibility for licensing as the Attorney
General may prescribe by regulation.
Similarly, under 18 U.S.C. 926(a), the
Attorney General has the authority to
promulgate any rules that are necessary
to implement the provisions of the GCA.
‘‘Because § 926 authorizes the [Attorney
General] to promulgate those regulations
which are ‘necessary,’ it almost
inevitably confers some measure of
discretion to determine what regulations
are in fact ‘necessary.’ ’’ Nat’l Rifle Ass’n
v. Brady, 914 F.2d 475, 479 (4th Cir.
1990).
Although the language of section
923(d)(1)(G) refers only to applications
for license as a dealer, section 923(e), as
amended by the Act, more broadly
provides that the Attorney General may,
after notice and an opportunity for a
hearing, ‘‘revoke any license issued
under this section if the holder of such
license . . . fails to have secure gun
storage or safety devices available at any
place in which firearms are sold under
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the license to persons who are not
licensees.’’ (Emphasis added.) Section
923(e) thus applies to all licensees that
sell firearms to nonlicensees—not just
dealer licensees. Hence, because
licensed manufacturers and importers
may sell their firearms directly to
nonlicensees, see 27 CFR 478.41(b),
ATF has the authority to revoke the
licenses of manufacturers or importers if
they fail to have secure gun storage or
safety devices available for retail
transactions. Requiring manufacturers
and importers to certify that secure gun
storage or safety devices will be
available at any place in which firearms
are sold to nonlicensees helps ensure
that manufacturers and importers are
aware of the implicit requirement in
section 923(e) that these licensees must
make such storage or devices available.
This certification has been required of
all license applicants except collectors
on ATF Form 7/7CR (5300.12/5310.16)
for years.
Finally, neither the NPRM nor the
final rule requires manufacturers or
importers to use secure gun storage or
safety devices on their inventory; rather,
they need only make such storage or
devices available.
B. Comments on Compatibility of
Devices
1. Comments Received
One commenter noted that 18 U.S.C.
923 does not explicitly require that
secure gun storage or safety devices
maintained by Federal firearms dealers
be compatible or even be used, only that
they be available; therefore, according to
the commenter, the proposed rule
cannot require it. Further, the
commenter noted that ATF has no
authority to revoke the license of a
dealer that does not lock up its firearms.
2. Department Response
The commenter misinterpreted the
proposed rule’s application. The
proposed rule did not, as the commenter
suggested, require federally licensed
dealers to use compatible devices on
their inventory, nor did the rule require
them to lock up and store their firearms
inventory. Rather, the NPRM proposed
implementing 18 U.S.C. 923(d)(1)(G) by
requiring applicants for dealer licenses,
or those licensed manufacturers and
importers that will also deal firearms to
nonlicensed individuals as permitted in
27 CFR 478.41(b), to certify only that
compatible secure gun storage or safety
devices are available at any place where
firearms are sold under the license to
nonlicensed individuals.
The Department believes the
compatibility language in the rule is
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Federal Register / Vol. 87, No. 2 / Tuesday, January 4, 2022 / Rules and Regulations
consistent with the text of the statute
because it clarifies that the secure gun
storage or safety devices made available
must be compatible with the firearms
offered for sale by the licensee.
Courts have explained that ‘‘the
administration and enforcement of a
statute call upon the agency charged
with its execution to interpret it.’’
Continental Airlines, Inc. v. Dep’t of
Transportation, 843 F.2d 1444, 1449
(D.C. Cir. 1988). When a court is called
upon to review an agency’s construction
of a statute it administers, the court
looks to the framework set forth in
Chevron U.S.A., Inc. v. Natural
Resources Defense Council, Inc., 467
U.S. 837 (1984). The first step of
Chevron review is to ask ‘‘whether
Congress has directly spoken to the
precise question at issue.’’ Id. 842. ‘‘If
the intent of Congress is clear, that is the
end of the matter; for the court, as well
as the agency, must give effect to the
unambiguously expressed intent of
Congress. If, however, the court
determines Congress has not directly
addressed the precise question at issue
. . . the question for the court is
whether the agency’s answer is based on
a permissible construction of the
statute.’’ Id. at 842–43 (footnote
omitted). Although the Act defines
‘‘secure gun storage or safety device,’’
that definition does not specify whether
or with which sorts of firearms the
secure gun storage and safety devices
must be compatible. The Department
believes that this rule comports with the
best reading of the statute and
permissibly clarifies that such storage
and devices must be compatible with
the firearms sold at the licensed
premises. This specification in the
regulation resolves any ambiguity in the
statute and fulfills its purpose because
customers purchasing firearms should
be able to leave the premises with a
secure gun storage or safety device that
is compatible with the type of firearm
they purchased. A contrary rule, under
which licensees could comply with the
statute by making available exclusively
devices that are incompatible with the
firearms they sell, would unreasonably
thwart Congress’s evident purpose in
the Act. See City of Chicago v. U.S.
Dep’t of Treasury, Bureau of Alcohol,
Tobacco & Firearms, 423 F.3d 777, 781
(7th Cir. 2005) (statutes should not be
read in a way that ‘‘would thwart
Congress’ intention’’).
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C. Comments on Noncompliance
Evidence in License Denial or
Revocation Procedures
1. Comments Received
In the NPRM, ATF referenced a
provision in the Act that states that
‘‘evidence regarding compliance or
noncompliance [with the secure gun
storage or safety device requirement]
shall not be admissible as evidence in
any proceeding of any court, agency,
board, or other entity.’’ See Public Law
105–277, sec. 119. ATF explained that,
based on basic tenets of statutory
construction, it reads the evidentiary
limitation as applying only ‘‘to civil
liability actions against dealers and
other similar actions, and not to
proceedings associated with license
denials or revocations (or appeals in
Federal court from decisions in such
proceedings) involving noncompliance
with the secure gun storage or safety
device requirement’’ of the Act. 81 FR
at 33449.
Three commenters asserted that this
provision of the Act prohibits the use of
a dealer’s compliance or noncompliance
with the secure gun storage or safety
device requirement in any
administrative proceedings to deny or
revoke a Federal firearms license. Two
commenters also argued that ATF’s
interpretation substitutes its judgment
for that of Congress, and, by effectively
amending legislation, violates the
‘‘Separation of Powers Doctrine.’’ These
commenters stated that ATF does not
have the power to change or ignore
statutes. They argued that words have
meaning, and that ATF cannot construe
statutes to permit something the plain
text prohibits or create an exception for
ATF’s administrative hearings where
one does not exist in the law.
2. Department Response
The Department respectfully
disagrees. There are at least two canons
of statutory interpretation that inform
the Department’s reading of the
evidence provision the commenters
relied on. The first relevant canon
provides that, ‘‘[w]henever a power is
given by statute, everything necessary to
make it effectual or requisite to attain
the end is implied.’’ Luis v. United
States, 136 S. Ct. 1093, 1097 (2016)
(Thomas, J., concurring) (quoting 1 J.
Kent, Commentaries on American Law
464 (13th ed. 1884)). The second
relevant canon provides that a ‘‘court
will not merely look to a particular
clause in which general words may be
used, but will take in connection with
it the whole statute . . . and the objects
and policy of the law.’’ Stafford v.
Briggs, 444 U.S. 527, 535 (1980) (quoting
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Brown v. Duchesne, 19 How. 183, 194
(1857)). The evidence provision cannot
be read in isolation. Rather, it must be
read within the context of the rest of the
statute, including the specific grant of
authority for the Attorney General to
revoke the license of a licensee that does
not comply with the Act. Moreover, the
Act specifically provides that none of its
amendments ‘‘shall be construed . . . as
creating a cause of action against any
firearms dealer or any other person for
any civil liability.’’ 18 U.S.C. 923 note.
That prohibition on civil liability
implies that Congress expected
compliance with the secure gun storage
or safety device requirement to be
enforced not by private individuals in
civil actions, but by the Attorney
General in administrative proceedings,
in accordance with the specific
authority granted to the Attorney
General to do so in 18 U.S.C. 923(e). The
Attorney General could not fulfill this
role if, as asserted by the commenters,
evidence of noncompliance could not be
used in administrative proceedings
related to that noncompliance, thus
indicating that the evidence provision
in the Act does not apply to
administrative proceedings regarding
compliance with the secure gun storage
or safety device requirement. Cf. United
States v. Tohono O’Odham Nation, 563
U.S. 307, 315 (2011) (‘‘Courts should not
render statutes nugatory through
construction.’’).
The Department’s interpretation of the
evidence provision is further supported
by the legislative history. The secure
gun storage provisions that were
enacted were initially sponsored by
Senator Larry Craig as part of S.10, the
Violent and Repeat Juvenile Offender
Act of 1997, for which a Senate report
was produced by the Senate Committee
on the Judiciary.2 The Committee’s
report stated that ‘‘[t]he penalty for
willful violation . . . is revocation of
the dealer’s license, after notice and
opportunity for hearing is given
pursuant to current law.’’ 3 Thus, the
Committee evidently expected that
noncompliance with the secure gun
storage and safety device provisions
would be enforced through
administrative proceedings, including a
hearing. It would accordingly be
nonsensical to bar the Attorney General
from using evidence of such
noncompliance in the same
proceedings. Congress, in other words,
would not have written the specific
amendments giving the Attorney
General the ability to revoke or deny a
license based on noncompliance if
2 S.
Rep. No. 105–108, at 108 (1997).
(emphasis added).
3 Id.
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evidence of noncompliance could not be
considered at the hearing ATF is
required to conduct under the law.
Accordingly—in light of the context in
which the evidence provision appears,
the legislative history underlying the
secure gun storage or safety device
requirement, and the authority granted
in section 923(e)—the Department’s
position that the evidence provision
does not apply to ATF’s enforcement
hearings or actions is the best
interpretation of the law, and is
certainly a permissible interpretation of
the provision. See Chevron, 467 U.S. at
843.
Furthermore, Congress expressly
authorized the Attorney General to deny
or revoke a license if the licensee or
applicant fails to have or certify that it
has secure gun storage or safety devices
available at any place in which firearms
are sold under the license to persons
who are not licensees (with the same
exceptions noted above). 18 U.S.C.
923(d), (e). To exercise this authority,
the Attorney General is required to
provide notice to an applicant or
licensee and, upon request of the
aggrieved party, is authorized to
conduct an administrative hearing to
make a final determination. 18 U.S.C.
923(e), (f); 27 CFR 771.40–44. The
agency’s final decision is appealable to
a Federal court. 18 U.S.C. 923(f)(3).
ATF 4 can also institute criminal
proceedings against a licensee for
violations of the GCA or the regulations.
18 U.S.C. 923(f)(4). The express
statutory grant of authority in section
923 to deny or revoke a license based on
evidence of noncompliance supersedes
the general language the commenters
relied on. See RadLAX Gateway Hotel,
LLC v. Amalgamated Bank, 566 U.S.
639, 645 (2012) (citing HCSC-Laundry v.
United States, 450 U.S. 1, 6 (1981) (per
curiam), for the proposition that the
specific governs the general,
‘‘particularly when the two [statutes] are
interrelated and closely positioned, both
in fact being parts of [the same statutory
scheme]’’); Busic v. United States, 446
U.S. 398, 406 (1980).
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D. Comments on Definitions of ‘‘Rifle’’
and ‘‘Shotgun’’
1. Comments Received
Comments relating to the definitions
of ‘‘rifle’’ and ‘‘shotgun’’ stated that, to
prevent confusion between a modern
rifle or shotgun and a muzzleloader or
antique firearm, and to preclude future
Federal ‘‘over reach’’ to classify muzzle
loading arms as rifles, the definitions
4 The Attorney General is responsible for
enforcing the GCA, as amended. This responsibility
includes the authority to promulgate regulations
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should specifically exclude muzzle
loading arms using black powder or
black powder substitutes. Additionally,
one commenter stated that ‘‘explosive’’
is not the correct word for the
propellant in a modern firearm and
suggested amending the term
‘‘explosive’’ in the definitions of ‘‘rifle’’
and ‘‘shotgun’’ to reference smokeless
solid propellants that deflagrate rather
than detonate, thereby clarifying that
metallic cartridge firearms using
smokeless propellants do not fall under
the definitions of ‘‘rifle’’ or ‘‘shotgun’’
due to their lack of use of an explosive
that detonates.
2. Department Response
The Department respectfully declines
to revise the definitions of ‘‘rifle’’ and
‘‘shotgun’’ to refer to smokeless solid
propellants, rather than an ‘‘explosive,’’
because doing so would not be
consistent with the statutory definitions
set forth in the Act. The current
statutory definition for ‘‘antique
firearm’’ excludes certain muzzle
loading firearms using black powder or
black powder substitutes from the
definition of ‘‘firearm,’’ thus making the
inclusion of additional language to
exclude them unnecessary. This final
rule updates the existing regulations to
reflect the current language of the
statute.
Further, the Department does not
agree with the suggested clarification of
the term ‘‘explosive’’ in the definitions
of ‘‘rifle’’ and ‘‘shotgun.’’ The use of the
phrase ‘‘by action of an explosive’’
within the definitions of ‘‘rifle’’ and
‘‘shotgun’’ is appropriate, as it is
descriptive of a process and not a
classification of the propellant powder.
The provisions of the Act relating to
antique firearms and definitions of the
terms ‘‘rifle’’ and ‘‘shotgun’’ became
effective on the day of enactment,
October 21, 1998. This final rule
updates the existing regulations to
reflect the current language of the
statute.
IV. Final Rule
This final rule implements the
amendments to the regulations in 27
CFR part 478 that were specified in the
NPRM published on May 26, 2016 (81
FR 33448) without change.
V. Statutory and Executive Order
Review
A. Executive Orders 12866 and 13563
Executive Order 12866 (Regulatory
Planning and Review) directs agencies
necessary to enforce the provisions of the GCA. See
18 U.S.C. 926(a). The Attorney General has
delegated the responsibility for administering and
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to assess the costs and benefits of
available regulatory alternatives and, if
regulation is necessary, to select
regulatory approaches that maximize
net benefits (including potential
economic, environmental, public health
and safety effects, distributive impacts,
and equity). Executive Order 13563
(Improving Regulation and Regulatory
Review) emphasizes the importance of
quantifying both costs and benefits, of
reducing costs, of harmonizing rules,
and of maintaining flexibility.
The Office of Management and Budget
(‘‘OMB’’) has determined that, although
this final rule is not economically
significant, it is a ‘‘significant regulatory
action’’ under section 3(f)(4) of
Executive Order 12866 because this
final rule raises novel legal or policy
issues arising out of legal mandates.
Accordingly, the rule has been reviewed
by OMB.
This rule requires that Federal
firearms licensees (‘‘FFLs’’) make
available secure gun storage or safety
devices to non-FFLs that purchase
firearms. Furthermore, this rule requires
that all FFLs must certify that they have
secure gun storage or safety devices
available if they sell firearms to nonFFLs. This section describes the affected
population, costs, and benefits for this
rule. In determining the costs and
benefits of this rule, ATF has followed
OMB guidance for conducting
regulatory analyses. See OMB,
Memorandum to the Heads of Executive
Agencies and Establishments, Re:
Regulatory Analysis, Circular A–4 (Sept.
17, 2003) (‘‘Circular A–4’’). According to
that guidance, regulations such as this
one that largely restate self-enforcing
statutory requirements should be
analyzed against a baseline that predates the enactment of the relevant
statute. Thus, although ATF has
implemented and enforced the Act in
the years since its passage even in the
absence of the regulation at issue in this
rulemaking, the costs and benefits of
doing so have been attributed to this
regulation for the purpose of this
analysis.
Table 1 provides the summary of the
expected effects that this rule will have
on the public. For more details
regarding this analysis, please refer to
the standalone regulatory analysis
(‘‘RA’’) located on the docket.
enforcing the GCA to the ATF Director, subject to
the direction of the Attorney General and Deputy
Attorney General. See 28 CFR 0.130(a)(1)–(2).
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TABLE 1—SUMMARY OF AFFECTED POPULATION, COSTS, AND BENEFITS
Category
Final rule
Applicability ...............................................................................................
• All FFLs.
• Type 1 FFL—Dealer in firearms other than destructive devices.
• Type 2 FFL—Pawnbroker in firearms other than destructive devices.
• 130,525 FFLs.
• 52,795 Type 1 FFLs.
• 7,114 Type 2 FFLs.
$853,187 at 7% annualized.
N/A.
N/A.
• Inhibits unauthorized access to privately owned firearms by individuals such as children, who might suffer accidental injuries.
• Inhibits access to privately owned firearms by criminals, who might
use them for illicit activities.
Affected Population ..................................................................................
Total Costs to Industry, Public, and Government (7% Discount Rate) ...
Savings (7% Discount Rate) ....................................................................
Benefits (7% Discount Rate) ....................................................................
Benefits non-monetized ............................................................................
1. Need for Federal Regulation
Agencies take regulatory action for
various reasons. One reason is to carry
out Congress’s policy decisions, as
expressed in statutes. Here, this
rulemaking aims to comply with the
Omnibus Consolidated and Emergency
Supplemental Appropriations Act of
1999 relating to secure gun storage.
Another reason underpinning regulatory
action is the failure of the market to
compensate for negative externalities
caused by commercial activity. A
negative externality can be the
byproduct of a transaction between two
parties that is not accounted for in the
transaction. This final rule addresses a
negative externality. The negative
externality of the sale of firearms is that
the firearms might not be stored
properly and could be accessed by
children who could cause accidents
with the firearms or accessed by
criminals who would use them for illicit
activities. This rule provides
nonlicensed firearm owners with the
option to have devices that enable them
to store their firearms so as to inhibit
children or criminals from accessing
their firearms.
2. Affected Population
This rulemaking affects two
populations. The first population is the
number of FFLs required to certify on
Form 7/7CR that secure gun storage or
safety devices will be available at any
place in which firearms are sold under
the license to persons who are not
licensees. The second population is the
number of FFLs that need to acquire
secure gun storage or safety devices to
make available at their place of
business.
Entities directly affected by the
requirement to certify the availability of
secure gun storage or safety devices are
all FFLs. Although this rule primarily
affects FFLs that sell firearms to
nonlicensed persons, this rule affects all
FFLs in that all FFL applicants must
indicate on the Form 7/7CR application
whether the applicants have gun storage
or safety devices available for
nonlicensees or whether this
requirement is not applicable because
they are seeking a Type 3 license for
collectors.
Because the Act was enacted shortly
before 1999, and because ATF has
required certification since 1999, ATF
estimated the affected population to be
all FFLs from 1999 to present. However,
FFLs have to certify the availability of
secure gun storage or safety devices only
when they apply as new FFLs or every
three years when they renew their
Federal firearms license. Tables 2 and 3
show the numbers of new applications
and renewals by FFL type and year. For
more information on the methodology
used to determine the numbers of new
FFLs by Type, please refer to the
standalone RA.
TABLE 2—NEW AND RENEWAL APPLICATIONS OF TYPE 1, 2, 3, 6, AND 7 FEDERAL FIREARMS LICENSEES
01—Dealer
in firearms
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Year
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
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02—Pawnbroker
in firearms
24,977
24,829
24,788
24,660
24,553
24,547
24,494
24,406
24,266
24,148
23,763
23,284
20,956
21,259
22,274
22,049
20,876
22,104
21,896
20,479
20,034
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03—Collector of
curios and relics
3,516
3,583
3,572
3,615
3,639
3,579
3,553
3,503
3,434
3,345
3,337
3,368
3,046
3,105
3,221
3,235
3,029
3,146
3,043
2,799
2,726
19,919
19,919
19,919
19,919
19,919
19,919
19,919
19,919
19,919
19,919
19,919
19,919
22,338
21,622
13,134
6,767
18,671
19,322
18,876
17,643
17,478
Sfmt 4700
E:\FR\FM\04JAR1.SGM
06—Manufacturer
of ammunition for
firearms
07—Manufacturer
of firearms
787
777
757
727
723
711
683
679
690
708
759
859
816
855
966
1,033
967
957
873
776
709
574
652
715
800
874
938
1,034
1,143
1,315
1,482
1,782
2,097
2,343
3,104
3,748
3,966
3,901
4,317
4,622
4,603
4,848
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TABLE 2—NEW AND RENEWAL APPLICATIONS OF TYPE 1, 2, 3, 6, AND 7 FEDERAL FIREARMS LICENSEES—Continued
01—Dealer
in firearms
Year
2020 .......................................................
02—Pawnbroker
in firearms
22,710
03—Collector of
curios and relics
3,060
06—Manufacturer
of ammunition for
firearms
07—Manufacturer
of firearms
777
6,076
20,150
* Note: Numbers may not add for Type 1 FFLs due to adjustments to ensure the numbers of applications in Tables 2 and 3 match total FFLs
in this table.
TABLE 3—NEW AND RENEWAL APPLICATIONS OF TYPE 8, 9, 10, AND 11 FEDERAL FIREARMS LICENSEES
08—Importer of
firearms
Year
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
09—Dealer in
destructive
devices
265
275
283
303
307
315
317
327
338
344
365
375
349
355
411
451
428
429
430
413
413
489
10—Manufacturer
of destructive
devices
4
4
5
7
7
7
7
8
11
15
17
20
18
22
24
26
25
27
30
36
48
55
11—Importer of
destructive
devices
44
46
45
52
56
60
66
81
86
94
107
119
112
109
113
114
117
130
138
138
146
182
26
26
28
31
35
37
40
47
52
57
64
71
69
71
76
80
82
86
90
88
94
116
Total new
applications
and renewals
50,112
50,111
50,112
50,114
50,113
50,113
50,113
50,113
50,111
50,112
50,113
50,112
50,047
50,502
43,967
37,721
48,096
50,518
49,998
46,975
46,496
53,615
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* Note: Numbers may not add for Type 1 FFLs due to adjustments to ensure the number of applications in Tables 2 and 3 match total FFLs in
this table.
The second population directly
affected by this rule primarily consists
of Type 1 and 2 FFLs that sell firearms
to the public. These FFLs must acquire
secure gun storage or safety devices to
be made available to firearm purchasers
in their place of business. Based on the
year the Act was enacted, ATF assumed
that all Type 1 and 2 FFLs in 1999 had
to acquire secure gun storage or safety
devices to make available to any
potential nonlicensee customers. From
2000 onwards, only new FFLs would
need to acquire some form of gun
storage or safety devices to make
available to their customers. Although
this rule affects all FFLs that sell
firearms to nonlicensed individuals, no
cost was attributed to Type 9, 10, and
11 licensees because they primarily
deal, manufacture, and import
destructive devices used by domestic
and foreign governments rather than
selling firearms at the retail level to
nonlicensed individuals. Similarly,
although Type 7 and 8 licensees are
manufacturers and importers that may
sell firearms to nonlicensed persons,
most of these licensees, even prior to
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enactment of the Act, have voluntarily
included secure gun storage or safety
devices for their firearms, and hence
would not have needed to separately
acquire such storage or devices to make
them available to nonlicensees.5 Of
those Type 7 and 8 FFLs that do not
provide secure gun storage or safety
devices, ATF assumed these licensees
primarily sell firearms wholesale to
Type 1 FFLs and do not sell to
nonlicensed persons.
Based on congressional testimony and
subject matter experts’ (‘‘SMEs’’)
experience, most firearm manufacturers
now include locks with new purchases
5 See Hearing before the Subcomm. on the
Constitution of the S. Comm. on the Judiciary,
117th Cong. (2021), 2021 WL 2138600 (discussing
the success of Project ChildSafe, through which
‘‘manufacturers have voluntarily included a locking
device in every box sold since the late 1980’s’’
(testimony of Joseph Bartozzi, President and CEO,
National Shooting Sports Foundation)); S. Rep. No.
105–108, at 201–02 (‘‘The arguments raised against
safety locks ring hollow, especially in light of the
recent announcement by eight[] of the Nation’s
largest handgun manufacturers that they will
voluntarily comply with the heart of Senator Kohl’s
amendment by packaging a child safety lock with
every handgun they sell.’’).
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of firearms, and, as noted above, have
been doing so since before the
enactment of the Act.6 ATF, however, is
not certain of the exact date when
manufacturers and importers began
voluntarily providing locks and, in the
interest of not underestimating the costs
attributable to this rule, ATF assumed
that all Type 1 FFLs in 1999 would need
to acquire secure gun storage or safety
devices to make available to their
customers. ATF then estimated that, as
manufacturers and importers continued
to provide locks with their firearms, and
as this practice became more common,
a decreasing number of FFLs needed to
acquire secure gun storage or safety
devices each year until year 2003. After
2003, ATF maintained a constant rate of
20 percent of FFLs that do not receive
safety devices with the firearms they
sell to account for any manufacturers
and importers that, even today, do not
provide safety devices with their
firearms. In addition, Type 2 FFLs are
pawnshops that acquire previously
owned firearms. ATF does not know
6 See
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whether the firearms acquired by Type
2 FFLs have secure locks or not.
Therefore, ATF assumed that all new
Type 2 FFLs need to acquire secure gun
storage or safety devices to satisfy the
requirements of the Act.
Because Type 2 FFLs primarily deal
with secondhand firearms and not new
purchases, ATF assumed that, in 1999,
all Type 2 FFLs acquired secure gun
storage or safety devices and, from 2000
onward, only new Type 2 FFLs needed
to acquire a means of securing firearms.
Therefore, ATF assumed that
pawnbrokers from 2000 to 2020
consisted only of new Type 2 FFLs.
Table 4 provides the estimated
number of Type 1 and 2 FFLs that
needed to acquire secure gun storage or
safety devices and make them available
at their place of business for potential
nonlicensed customers. For more
detailed information on obtaining the
population of FFLs needing to acquire
secure gun storage or safety devices to
make available, please refer to the
standalone RA.
TABLE 4—FFL TYPES 1 AND 2 THAT NEEDED TO PURCHASE SECURE GUN STORAGE OR SAFETY DEVICES
Year
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
New type 1 FFL
.......................................................................................
.......................................................................................
.......................................................................................
.......................................................................................
.......................................................................................
.......................................................................................
.......................................................................................
.......................................................................................
.......................................................................................
.......................................................................................
.......................................................................................
.......................................................................................
.......................................................................................
.......................................................................................
.......................................................................................
.......................................................................................
.......................................................................................
.......................................................................................
.......................................................................................
.......................................................................................
.......................................................................................
.......................................................................................
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3. Costs
This analysis considers the rule’s
direct (or industry) costs, indirect costs,
and government costs. Industry costs are
the costs to FFLs that need to certify the
availability of secure gun storage or
safety devices and the costs to FFLs that
need to acquire secure gun storage or
safety devices to make available to the
public. Indirect costs are those costs
associated with organizations and
manufacturers providing gun locks or
safety devices. Government costs are
enforcement costs to ensure that the
affected FFLs have been and are
continuing to comply with the statute.
In determining direct, industry costs,
ATF used the average wage rate
associated with certain job titles listed
on Form 7/7CR by FFL type. ATF used
a loaded wage rate of 1.42 to include
fringe benefits such as insurance as part
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Rate of FFLs that
do not receive
locks from
manufacturers
(%)
71,290
8,677
8,663
8,618
8,581
8,579
8,560
8,529
8,481
8,439
8,305
8,137
7,768
9,034
10,177
7,874
7,088
7,552
6,599
6,314
5,667
8,442
100
80
60
40
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
of the overall compensation.7 Because
FFLs are segmented by industry type,
ATF used a sample from each industry
type to determine an average wage rate
by each FFL type. For FFLs completing
Form 7CR, ATF assigned a leisure wage
rate of $16.52 because FFLs that
complete Form 7CR are Type 3 FFLs—
i.e., collectors who do not apply for a
license as part of an occupation.8
7 Bureau of Labor Statistics, Series Report, https://
data.bls.gov/cgi-bin/srgate. Data was generated for
2020 using series CMU2010000000000D,
CMU2010000000000P and CMU2020000000000D,
CMU2020000000000P. Average total compensation
was $35.87. Average cost per hour worked was
$25.18. Loaded wage rate 1.42 = $35.87/$25.18.
8 As explained more fully in the accompanying
RA, the leisure wage rate was estimated using the
calculation described in the Department of
Transportation’s guidance on the valuation of travel
time. See Dep’t of Transportation, Revised
Departmental Guidance on Valuation of Travel
Time in Economic Analysis 19 (Sept. 27, 2016),
https://www.transportation.gov/sites/dot.gov/files/
docs/2016%20Revised%20Value%20of
%20Travel%20Time%20Guidance.pdf.
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Type 1 FFL
71,290
6,942
5,198
3,447
1,716
1,716
1,712
1,706
1,696
1,688
1,661
1,627
1,554
1,807
2,035
1,575
1,418
1,510
1,320
1,263
1,133
1,688
Type 2 FFL
needing
10,035
1,252
1,248
1,263
1,272
1,251
1,242
1,224
1,200
1,169
1,166
1,177
854
971
1,063
823
730
762
645
603
532
772
Although Type 3 FFL collectors are not
required to make available secure gun
storage or safety devices, they are still
required to answer the question about
availability on Form 7CR by marking
‘‘N/A.’’ Therefore, costs for that action
were counted as an industry cost of this
rule. For more information on the wages
used for each sample, please refer the
standalone RA. Table 5 provides the
average loaded wage rate by FFL type.
TABLE 5—AVERAGE LOADED WAGE
RATE BY FFL TYPE
Types 1 and 2 ......................
Type 3 ...................................
Type 6 ...................................
Type 7 ...................................
Type 8 ...................................
Type 9 ...................................
Type 10 .................................
Type 11 .................................
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$82.06
16.52
58.91
62.93
76.13
103.44
87.86
109.30
190
Federal Register / Vol. 87, No. 2 / Tuesday, January 4, 2022 / Rules and Regulations
The time needed for an FFL to certify
on Form 7/7CR that it has secure gun
storage or safety devices (or to mark ‘‘N/
A’’) was estimated at 0.1 minute (0.0017
hours). ATF started with the average
loaded wage rate by type of license,
multiplied the wage rate by the
estimated number of new and renewal
FFLs per type from Tables 2 and 3, and
multiplied that result by the hour
burden to determine the annual cost to
certify. Tables 6 and 7 provide the
annual costs to certify by FFL type from
1999 to the present.
TABLE 6—COST TO CERTIFY BY FFL TYPES 1, 2, 3, 6, 7, AND 8
Year
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Types 1 and 2
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
Type 3
$3,897
3,886
3,879
3,867
3,856
3,847
3,836
3,817
3,788
3,760
3,706
3,645
3,283
3,332
3,487
3,458
3,269
3,453
3,411
3,184
3,113
3,524
Type 6
$548
548
548
548
548
548
548
548
548
548
548
548
615
595
362
186
514
532
520
486
481
555
Type 7
$77
76
74
71
71
70
67
67
68
70
75
84
80
84
95
101
95
94
86
76
70
76
Type 8
$60
68
75
84
92
98
108
120
138
155
187
220
246
326
393
416
409
453
485
483
508
637
$34
35
36
38
39
40
40
41
43
44
46
48
44
45
52
57
54
54
55
52
52
62
TABLE 7—COST TO CERTIFY BY FFL TYPES 9, 10, AND 11
Year
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1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Type 9
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
For purposes of this analysis, ATF
estimated that Type 1 and 2 FFLs that
must comply with the Act would have
purchased at least two safety devices at
an average price of $7.39 per safety
device and tape ($2.36) to notate the
owner of the gun. Combined, the
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Type 10
$1
1
1
1
1
1
1
1
2
3
3
3
3
4
4
4
4
5
5
6
8
9
$6
7
7
8
8
9
10
12
13
14
16
17
16
16
17
17
17
19
20
20
21
27
average price to make available secure
gun storage or safety devices for
customers is $17.14 per store. For
sources of costs to make available secure
gun storage or safety devices, refer to
section 3.1.2 of the standalone RA.
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Frm 00038
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Type 11
Total
$5
5
5
6
6
7
7
9
9
10
12
13
13
13
14
15
15
16
16
16
17
21
$4,564
4,562
4,561
4,560
4,558
4,556
4,554
4,551
4,545
4,540
4,529
4,515
4,300
4,415
4,423
4,255
4,378
4,626
4,597
4,323
4,271
4,912
For an annual direct, industry cost of
certifying and making available secure
gun storage or safety devices, refer to
Table 8. That table provides the annual
cost of certifying and making available
secure gun storage or safety devices
from 1999 to 2020.
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TABLE 8—YEAR BY YEAR DIRECT, INDUSTRY COST
tkelley on DSK125TN23PROD with RULES1
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Discounted cost
Undiscounted
industry costs
Year
7%
3%
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
$1,398,539
147,582
117,089
86,808
56,753
56,368
56,157
55,727
55,132
54,445
53,922
53,517
45,572
52,034
57,778
45,742
41,188
43,561
38,282
36,298
32,817
47,075
$6,196,088
611,072
453,096
313,942
191,821
178,057
165,784
153,753
142,161
131,204
121,442
112,645
89,646
95,663
99,274
73,451
61,813
61,097
50,179
44,466
37,572
50,370
$2,679,745
274,546
211,475
152,218
96,618
93,168
90,115
86,821
83,393
79,954
76,879
74,080
61,244
67,893
73,192
56,256
49,181
50,499
43,086
39,664
34,815
48,487
Total ....................................................................................................................
2,632,384
9,434,596
4,523,330
Annualized ..........................................................................................................
..............................
852,942
283,827
In addition to direct, industry costs
for Type 1 and 2 FFLs to make available
secure gun storage or safety devices, the
government incurred costs to enforce
secure gun storage and safety device
requirements on FFLs. Based on ATF’s
database, ATF found two violations in
2019 and six violations in 2020, making
the average number of violations four.
Based on input from SMEs, ATF
determined that Industry Operations
Investigators (‘‘IOI’’) undertaking
inspections related to the secure gun
storage and safety device requirement
range from a GS–9 to GS–13, making the
average IOI a GS–10, step 5. The hourly
wage rate for a GS–10, step 5 is $27.56.9
In order to account for fringe benefits,
ATF attributed a load rate of 1.41,
making the loaded, hourly wage rate for
an IOI $38.86.10 11 The SMEs estimated
that it would take an average of 20
minutes (0.33 hours) to have a
conversation with the FFL in question
and compile a report or warning
regarding the violation, making the
government cost $26 in 2019 and $78 in
2020. Because ATF does not have any
information regarding inspections for
previous years, ATF used the average of
four violations per year as the
government cost for enforcement
between the years 1999 and 2018. The
average cost of enforcement was
estimated to be $52.
ATF accounts for indirect costs of this
rule although they are not considered
part of the total cost of the rule. Other
organizations, such as Project ChildSafe,
provide gun locks free to the public,
which ends up being a savings for the
populations affected by this rule.
Because these costs are voluntarily
incurred, they are considered indirect
costs. Based on information provided by
Project ChildSafe, which primarily
obtains its funding through other
sources, this organization has provided
approximately 38 million gun locks to
the public and provides approximately
1.8 million gun lock kits annually.12
Furthermore, Project ChildSafe
estimates that manufacturers have
included approximately 70 million
locks with a purchase of a firearm,
which they estimate is valued at $140
million.13 These are indirect costs that
ATF does not consider as part of the
total costs of this final rule.
Other indirect costs include firearm
manufacturers who voluntarily include
safety devices with each purchase of a
new firearm. While manufacturers are
not required to provide gun locks with
their firearms due to this rule, it is
possible that manufacturers have
incorporated the cost of these gun locks
into the final purchasing price of the
firearm and is therefore already
accounted for. It is for these reasons that
ATF does not consider these indirect
costs as costs attributed to this rule.
ATF accounted for the direct,
industry costs of this rule along with the
government enforcement costs
attributed to this rule. Table 9 provides
the total costs for this rule.
9 Office of Personnel Management, SALARY
TABLE 2021–GS (Jan. 2021), https://www.opm.gov/
policy-data-oversight/pay-leave/salaries-wages/
salary-tables/pdf/2021/GS_h.pdf.
10 Federal benefits account for 41 percent of total
compensation. Congressional Budget Office,
Comparing the Compensation of Federal and
Private-Sector Employees, 2011 to 2015, at 14 (Apr.
2017), https://www.cbo.gov/system/files/115thcongress-2017-2018/reports/52637-federal
privatepay.pdf.
11 $38.86 loaded wage rate = $27.56 hourly wage
rate * 1.41 load rate.
12 Project ChildSafe, Project ChildSafe by the
Numbers, https://www.projectchildsafe.org/sites/
default/files/NSSF_PCS_Infographic_
PCSByTheNumbers_Jan2019_0.pdf (last accessed
Dec. 17, 2021).
13 Id.
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Federal Register / Vol. 87, No. 2 / Tuesday, January 4, 2022 / Rules and Regulations
TABLE 9—TOTAL DIRECT, INDUSTRY AND GOVERNMENT COSTS OF THIS RULE
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
7%
3%
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
...........................................................................................................................
$1,398,590
147,634
117,140
86,859
56,805
56,420
56,209
55,779
55,184
54,497
53,973
53,569
45,623
52,086
57,830
45,793
41,240
43,613
38,333
36,350
32,843
47,153
$6,196,318
611,287
453,296
314,130
191,996
178,221
165,937
153,896
142,294
131,329
121,558
112,754
89,748
95,758
99,363
73,534
61,890
61,170
50,247
44,530
37,602
50,454
$2,679,844
274,642
211,569
152,309
96,706
93,254
90,198
86,902
83,471
80,030
76,953
74,152
61,314
67,960
73,257
56,320
49,243
50,559
43,145
39,720
34,843
48,567
Total ....................................................................................................................
2,633,524
9,437,311
4,524,959
Annualized ..........................................................................................................
..............................
853,187
283,929
Overall, ATF estimated that, in
accordance with the standards for
regulatory analysis described in OMB
Circular A–4, the total cost attributable
to this rule from 1999 to 2020 was $2.6
million undiscounted, or annualized at
$853,187 and $283,929 at 7 percent and
3 percent, respectively.
of a federalism summary impact
statement.
4. Benefits
D. Regulatory Flexibility Act
The benefit of this rule is making
available secure gun storage or safety
devices for owners of firearms who
otherwise do not have such storage or
safety devices available to them. Making
secure gun storage or safety devices
available inhibits unauthorized access
to privately owned firearms for
individuals such as children, who might
accidently discharge them, and inhibits
access by criminals, who might use
them for illicit activities.
Under the Regulatory Flexibility Act,
5 U.S.C. 601–12, the Attorney General
certifies that this final rule will not have
a significant economic impact on a
substantial number of small entities.
The Department has considered whether
this final rule would have a significant
economic impact on a substantial
number of small entities. The term
‘‘small entities’’ comprises small
businesses, not-for-profit organizations
that are independently owned and
operated and are not dominant in their
fields, and governmental jurisdictions
with populations of fewer than 50,000.
ATF has determined that, in order for
the costs associated with this rule to
impact a small entity’s revenue by even
one percent, the entity would need to
make $1,728 or less in annual revenue.
For the costs to have a 10 percent effect
on revenue, a small entity would need
to make $173 or less in revenue. ATF
has determined that it is unlikely that a
small entity would make such minimal
amounts in revenue and continue to
operate. Therefore, the Attorney General
B. Executive Order 13132
tkelley on DSK125TN23PROD with RULES1
Discounted cost
Undiscounted total
costs
Year
This rule will not have substantial
direct effects on the States, on the
relationship between the Federal
Government and the States, or on the
distribution of power and
responsibilities among the various
levels of government. Therefore, in
accordance with section 6 of Executive
Order 13132 (Federalism), the Attorney
General has determined that this rule
does not have sufficient federalism
implications to warrant the preparation
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C. Executive Order 12988
This rule meets the applicable
standards set forth in sections 3(a) and
3(b)(2) of Executive Order 12988 (Civil
Justice Reform).
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certifies under 5 U.S.C. 605(b) that this
final rule would not have a significant
economic impact on a substantial
number of small entities.
E. Unfunded Mandates Reform Act of
1995
This rule will not result in the
aggregate expenditure by State, local,
and Tribal governments, or by the
private sector, of $100 million or more
in any one year, and it will not
significantly or uniquely affect small
governments. Therefore, no actions are
necessary under the provisions of the
Unfunded Mandates Reform Act of
1995.
F. Paperwork Reduction Act
Under the Paperwork Reduction Act
of 1995 (‘‘PRA’’), 44 U.S.C. 3501–21,
agencies are required to submit for OMB
review and approval any reporting
requirements inherent in a rule. The
collection of information contained in
this final rule is a collection of
information that has been reviewed and
approved by OMB in accordance with
the requirements of the PRA, and it has
been assigned an OMB Control Number.
Title: Application for Federal
Firearms License—ATF Form 7
(5310.12)/7CR (5310.16).
OMB Control Number: 1140–0018.
Summary of the Collection of
Information: This collection of
information is used by the public when
applying for a Federal firearms license
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(‘‘FFL’’); this form is used to apply for
all FFL types.
Need for Information: The
information requested on the form is
used to determine the eligibility of the
applicant to obtain an FFL, and the
identity and eligibility of Responsible
Persons.
Proposed Use of Information: The
information contained will be used to
determine the applicant’s eligibility to
receive a license.
Description of the Respondents: All
Federal firearms licensees.
Number of Respondents: 47,088.
Frequency of Response: Once every 3
years.
Burden of Response: For this rule,
0.0017 hours. Total 1 hour.
Estimate of Total Annual Burden: For
this rule, 80 hours. Total burden 47,088
hours.
Pursuant to the Congressional Review
Act, 5 U.S.C. 801–08, OMB’s Office of
Information and Regulatory Affairs
designated this rule as not a ‘‘major
rule,’’ as defined by 5 U.S.C. 804(2).
This rule will not result in an annual
effect on the economy of $100 million
or more; a major increase in costs or
prices; or a significant adverse effect on
competition, employment, investment,
productivity, innovation, or on the
ability of United States-based
enterprises to compete with foreignbased enterprises in domestic and
export markets.
Disclosure
Copies of this rule and the comments
received in response to the proposed
rule will be available for public
inspection through the Federal
eRulemaking portal,
www.regulations.gov (search for RIN
1140–AA10), or by appointment during
normal business hours at the ATF
Reading Room, Room 1E–062, 99 New
York Avenue NE, Washington, DC
20226; telephone: (202) 648–8740.
tkelley on DSK125TN23PROD with RULES1
List of Subjects in 27 CFR Part 478
Administrative practice and
procedure, Arms and munitions,
Exports, Freight, Imports,
Intergovernmental relations, Law
enforcement officers, Military
personnel, Penalties, Reporting and
recordkeeping requirements, Research,
Seizures and forfeitures, Transportation.
Authority and Issuance
Accordingly, for the reasons
discussed in the preamble, 27 CFR part
478 is amended as follows:
18:00 Jan 03, 2022
Jkt 256001
1. The authority citation for part 478
is revised to read as follows:
■
Authority: 5 U.S.C. 552(a); 18 U.S.C. 847,
921–931; 44 U.S.C. 3504(h).
2. Amend § 478.11 as follows:
a. Revise the definition of ‘‘Antique
firearm’’;
■ b. Remove the words ‘‘the explosive
in a fixed metallic cartridge’’ in the
definition of ‘‘Rifle’’ and add in their
place ‘‘an explosive’’;
■ c, Add a definition for ‘‘Secure gun
storage or safety device’’ in alphabetical
order; and
■ d. Remove the words ‘‘the explosive
in a fixed shotgun shell’’ in the
definition of ‘‘Shotgun’’ and add in their
place ‘‘an explosive’’.
The revision and addition read as
follows:
■
■
§ 478.11
G. Congressional Review Act
VerDate Sep<11>2014
PART 478—COMMERCE IN FIREARMS
AND AMMUNITION
Meaning of terms.
*
*
*
*
*
Antique firearm. (1) Any firearm
(including any firearm with a
matchlock, flintlock, percussion cap, or
similar type of ignition system)
manufactured in or before 1898;
(2) Any replica of any firearm
described in paragraph (a) of this
definition if such replica:
(i) Is not designed or redesigned for
using rimfire or conventional centerfire
fixed ammunition; or
(ii) Uses rimfire or conventional
centerfire fixed ammunition that is no
longer manufactured in the United
States and that is not readily available
in the ordinary channels of commercial
trade; or
(3) Any muzzle loading rifle, muzzle
loading shotgun, or muzzle loading
pistol that is designed to use black
powder, or a black powder substitute,
and that cannot use fixed ammunition.
For purposes of this paragraph (3), the
term ‘‘antique firearm’’ does not include
any weapon that incorporates a firearm
frame or receiver, any firearm that is
converted into a muzzle loading
weapon, or any muzzle loading weapon
that can be readily converted to fire
fixed ammunition by replacing the
barrel, bolt, breechblock, or any
combination thereof.
*
*
*
*
*
Secure gun storage or safety device.
(1) A device that, when installed on a
firearm, is designed to prevent the
firearm from being operated without
first deactivating the device;
(2) A device incorporated into the
design of the firearm that is designed to
prevent the operation of the firearm by
anyone not having access to the device;
or
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193
(3) A safe, gun safe, gun case, lock
box, or other device that is designed to
be or can be used to store a firearm and
that is designed to be unlocked only by
means of a key, a combination, or other
similar means.
*
*
*
*
*
■ 3. Amend § 478.73 by adding a
sentence after the first sentence in
paragraph (a) to read as follows:
§ 478.73 Notice of revocation, suspension,
or imposition of civil fine.
(a) * * * In addition, a notice of
revocation of the license, on ATF Form
4500, may be issued whenever the
Director has reason to believe that a
licensee fails to have secure gun storage
or safety devices available at any place
in which firearms are sold under the
license to persons who are not licensees
(except in any case in which a secure
gun storage or safety device is
temporarily unavailable because of
theft, casualty loss, consumer sales,
backorders from a manufacturer, or any
other similar reason beyond the control
of the licensee). * * *
*
*
*
*
*
■ 4. Add § 478.104 to subpart F to read
as follows:
§ 478.104
device.
Secure gun storage or safety
(a) Any person who applies to be a
licensed firearms dealer must certify on
ATF Form 7 (5310.12), Application for
Federal Firearms License, that
compatible secure gun storage or safety
devices will be available at any place
where firearms are sold under the
license to nonlicensed individuals
(subject to the exception that in any case
in which a secure gun storage or safety
device is temporarily unavailable
because of theft, casualty, loss,
consumer sales, backorders from a
manufacturer, or any other similar
reason beyond the control of the
licensee, the dealer shall not be
considered in violation of the
requirement to make available such a
device).
(b) Any person who applies to be a
licensed firearms importer or a licensed
manufacturer and will be engaged in
business on the licensed premises as a
dealer in the same type of firearms
authorized by the license to be imported
or manufactured must make the
certification required under paragraph
(a) of this section.
(c) Each licensee described in this
section must have compatible secure
gun storage or safety devices available at
any place in which firearms are sold
under the license to persons who are not
licensees. However, such licensee shall
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Federal Register / Vol. 87, No. 2 / Tuesday, January 4, 2022 / Rules and Regulations
not be considered to be in violation of
this requirement if a secure gun storage
or safety device is temporarily
unavailable because of theft, casualty
loss, consumer sales, backorders from a
manufacturer, or any other similar
reason beyond the control of the
licensee.
Dated: December 23, 2021.
Merrick B. Garland,
Attorney General.
[FR Doc. 2021–28398 Filed 1–3–22; 8:45 am]
BILLING CODE 4410–FY–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 271
[EPA–R01–RCRA–2020–0175; FRL 8892–
01–R1]
Massachusetts: Final Authorization of
State Hazardous Waste Management
Program Revisions
Environmental Protection
Agency (EPA).
ACTION: Direct final rule.
AGENCY:
Massachusetts has applied to
the United States Environmental
Protection Agency (EPA) for final
authorization of revisions to its
hazardous waste program under the
Resource Conservation and Recovery
Act (RCRA), as amended. The EPA has
reviewed Massachusetts’ application,
and has determined that these revisions
satisfy all requirements needed to
qualify for final authorization.
Therefore, we are taking direct final
action to authorize the State’s changes.
In the ‘‘Proposed Rules’’ section of this
issue of the Federal Register, the EPA
is also publishing a separate document
that serves as the proposal to authorize
these revisions. Unless the EPA receives
written comments that oppose this
authorization during the comment
period, the decision to authorize
Massachusetts’ revisions to its
hazardous waste program will take
effect.
DATES: This final authorization is
effective on March 7, 2022, unless the
EPA receives adverse written comments
by February 3, 2022. If the EPA receives
any such comment, the EPA will
publish a timely withdrawal of this
direct final rule in the Federal Register
and inform the public that this
authorization will not take effect.
ADDRESSES: Submit your comments,
identified by Docket ID No. EPA–R01–
RCRA–2020–0175, at https://
www.regulations.gov/. Follow the online
instructions for submitting comments.
tkelley on DSK125TN23PROD with RULES1
SUMMARY:
VerDate Sep<11>2014
18:00 Jan 03, 2022
Jkt 256001
Once submitted, comments cannot be
edited or removed from
www.regulations.gov. The EPA may
publish any comment received to its
public docket. Do not submit
electronically any information you
consider to be Confidential Business
Information (CBI) or other information
whose disclosure is restricted by statute.
Multimedia submissions (audio, video,
etc.) must be accompanied by a written
comment. The written comment is
considered the official comment and
should include discussion of all points
you wish to make. The EPA will
generally not consider comments or
comment contents located outside of the
primary submission (i.e., on the web,
cloud, or other file sharing system). For
additional submission methods, the full
EPA public comment policy,
information about CBI or multimedia
submissions, and general guidance on
making effective comments, please visit
https://www2.epa.gov/dockets/
commenting-epa-dockets.
FOR FURTHER INFORMATION CONTACT: Sara
Kinslow, RCRA Waste Management,
UST, and Pesticides Section; Land,
Chemicals, and Redevelopment
Division; U.S. EPA Region 1, 5 Post
Office Square, Suite 100 (Mail code 07–
1), Boston, MA 02109–3912; phone:
617–918–1648; email: kinslow.sara@
epa.gov.
SUPPLEMENTARY INFORMATION:
A. Why are revisions to State programs
necessary?
States that have received final
authorization from the EPA under RCRA
section 3006(b), 42 U.S.C. 6926(b), must
maintain a hazardous waste program
that is equivalent to, consistent with,
and no less stringent than the Federal
program. As the Federal program
changes, states must change their
programs and ask the EPA to authorize
the changes. Changes to state programs
may be necessary when Federal or state
statutory or regulatory authority is
modified or when certain other changes
occur. Most commonly, states must
change their programs because of
changes to the EPA’s regulations in 40
Code of Federal Regulations (CFR) parts
124, 260 through 268, 270, 273, and 279.
New Federal requirements and
prohibitions imposed by Federal
regulations that the EPA promulgates
pursuant to the Hazardous and Solid
Waste Amendments of 1984 (HSWA)
take effect in authorized states at the
same time that they take effect in
unauthorized states. Thus, the EPA will
implement those requirements and
prohibitions in Massachusetts,
including the issuance of new permits
PO 00000
Frm 00042
Fmt 4700
Sfmt 4700
implementing those requirements, until
Massachusetts is granted authorization
to do so.
B. What decisions has the EPA made in
this rule?
On August 13, 2021, Massachusetts
submitted a complete program revision
application seeking authorization of
revisions to its hazardous waste
program. The EPA concludes that
Massachusetts’ application to revise its
authorized program meets all of the
statutory and regulatory requirements
established by RCRA, as set forth in
RCRA Section 3006(b), 42 U.S.C
6926(b), and 40 CFR part 271. Therefore,
the EPA grants final authorization to
Massachusetts to operate its hazardous
waste program with the revisions
described in its authorization
application, and as listed below in
Section G of this document.
The Massachusetts Department of
Environmental Protection (MassDEP)
has responsibility for permitting
treatment, storage, and disposal
facilities within its borders and for
carrying out the aspects of the RCRA
program described in its application,
subject to the limitations of HSWA, as
discussed above.
C. What is the effect of today’s
authorization decision?
This decision serves to authorize
Massachusetts for the revisions to its
authorized hazardous waste program
described in its authorization
application. These changes will become
part of the authorized State hazardous
waste program and will therefore be
Federally enforceable. Massachusetts
will continue to have primary
enforcement authority and
responsibility for its State hazardous
waste program. The EPA would
maintain its authorities under RCRA
sections 3007, 3008, 3013, and 7003,
including its authority to:
• Conduct inspections, and require
monitoring, tests, analyses and reports;
• Enforce RCRA requirements,
including authorized State program
requirements, and suspend or revoke
permits; and
• Take enforcement actions regardless
of whether the State has taken its own
actions.
This action will not impose additional
requirements on the regulated
community because the regulations for
which the EPA is authorizing
Massachusetts are already effective
under state law and are not changed by
today’s action.
E:\FR\FM\04JAR1.SGM
04JAR1
]]>Agencies
[Federal Register Volume 87, Number 2 (Tuesday, January 4, 2022)]
[Rules and Regulations]
[Pages 182-194]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-28398]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF JUSTICE
Bureau of Alcohol, Tobacco, Firearms, and Explosives
27 CFR Part 478
[Docket No. ATF 24P; AG Order No. 5304-2021]
RIN 1140-AA10
Secure Gun Storage and Definition of ``Antique Firearm''
AGENCY: Bureau of Alcohol, Tobacco, Firearms, and Explosives,
Department of Justice.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Department of Justice is amending the regulations of the
Bureau of Alcohol, Tobacco, Firearms, and Explosives (``ATF'') to
codify into regulation certain provisions of the Omnibus Consolidated
and Emergency Supplemental Appropriations Act, 1999. This rule amends
ATF's regulations to account for the existing statutory requirement
that applicants for Federal firearms dealer licenses certify that
secure gun storage or safety devices will be available at any place
where firearms are sold under the license to nonlicensed individuals.
This certification is already included in the Application for Federal
Firearms License, ATF Form 7/7CR (``Form 7/7CR''). The regulation also
requires applicants for manufacturer or importer licenses to complete
the certification if the licensee will have premises where firearms are
sold to nonlicensees. Moreover, the regulation requires that the secure
gun storage or safety devices be compatible with the firearms offered
for sale by the licensee. Finally, it conforms the regulatory
definitions of certain terms to the statutory language, including the
definition of ``antique firearm,'' which is amended to include certain
modern muzzle loading firearms.
DATES: This rule is effective February 3, 2022.
[[Page 183]]
FOR FURTHER INFORMATION CONTACT: Vivian Chu, Office of Regulatory
Affairs, Enforcement Programs and Services, Bureau of Alcohol, Tobacco,
Firearms, and Explosives, U.S. Department of Justice, 99 New York
Avenue NE, Washington, DC 20226; telephone: (202) 648-7070.
SUPPLEMENTARY INFORMATION:
I. Background
On October 21, 1998, Public Law 105-277 (112 Stat. 2681), the
Omnibus Consolidated and Emergency Supplemental Appropriations Act,
1999 (``the Act''), was enacted. Among other things, the Act amended
the Gun Control Act of 1968, Public Law 90-618 (82 Stat. 1213)
(``GCA'') (codified as amended at 18 U.S.C. chapter 44). Some of the
GCA amendments made by the Act are as follows: \1\
---------------------------------------------------------------------------
\1\ The Child Safety Lock Act of 2005 (``CSLA''), enacted as
part of the Protection of Lawful Commerce in Arms Act, Public Law
109-92 (119 Stat. 2095), amended the GCA by adding a new subsection,
18 U.S.C. 922(z). This subsection requires licensed importers,
manufacturers, and dealers to provide secure gun storage or safety
devices whenever they sell, deliver, or transfer any handgun to a
nonlicensed person. See 18 U.S.C. 922(z)(1). The CSLA was
implemented primarily in a final rule issued shortly before the NPRM
was issued for this rule. See Federal Firearms License Proceedings--
Hearings, 81 FR 32,230 (May 23, 2016) (amending 27 CFR 478.73, which
provides that a notice of suspension or revocation of a license, or
the imposition of a civil penalty, may be issued whenever the ATF
Director has reason to believe that any licensee has violated Sec.
922(z)(1) by selling, delivering, or transferring any handgun to any
person other than a licensee, unless the transferee was provided
with a secure gun storage or safety device for that handgun).
Although the requirements of the CSLA and the regulation at issue in
this rulemaking are in some respects similar, the two requirements
are distinct: The CSLA requires that licensed importers,
manufacturers, and dealers actually provide a secure gun storage or
safety device to any nonlicensee that receives a handgun, whereas
the regulation at issue in this rulemaking applies more broadly to
the sale of ``firearms'' (not just handguns) to nonlicensees, but
requires only that secure gun storage or safety devices be made
available (not actually provided).
---------------------------------------------------------------------------
(1) Secure Gun Storage. The Act amended section 923(d)(1) of title
18, United States Code, to require that, with certain exceptions,
applicants for Federal firearms dealer licenses certify the
availability of secure gun storage or safety devices at any place where
firearms are sold under the license to nonlicensees. 18 U.S.C.
923(d)(1)(G). The certification requirement does not apply where a
secure gun storage or safety device is temporarily unavailable because
of theft, casualty loss, consumer sales, backorders from a
manufacturer, or any other similar reason beyond the control of the
licensee. Id.
In addition, the Act amended 18 U.S.C. 923(e) to provide that the
Attorney General may revoke, after notice and opportunity for hearing,
the license of any Federal firearms licensee that fails to have secure
gun storage or safety devices available at any place where firearms are
sold under the license to nonlicensees, subject to the same exceptions
noted above.
The Act defined the term ``secure gun storage or safety device'' in
18 U.S.C. 921(a)(34) to mean: (1) A device that, when installed on a
firearm, is designed to prevent the firearm from being operated without
first deactivating the device; (2) a device incorporated into the
design of the firearm that is designed to prevent the operation of the
firearm by anyone not having access to the device; or (3) a safe, gun
safe, gun case, lock box, or other device that is designed to be or can
be used to store a firearm and that is designed to be unlocked only by
means of a key, a combination, or other similar means.
The provisions of the Act relating to secure gun storage became
effective April 19, 1999.
(2) Definition of Antique Firearm. The Act amended the definition
of ``antique firearm'' in the GCA to include certain modern muzzle
loading firearms. Specifically, section 115 of the Act amended the
definition of ``antique firearm'' in 18 U.S.C. 921(a)(16) to include a
weapon that is a muzzle loading rifle, muzzle loading shotgun, or
muzzle loading pistol; that is designed to use black powder or a black
powder substitute; and that cannot use fixed ammunition. The term
expressly does not include any weapon that incorporates a firearm frame
or receiver; any firearm converted into a muzzle loading weapon; or any
muzzle loading weapon that can be readily converted to fire fixed
ammunition by replacing the barrel, bolt, breechblock, or any
combination thereof. 18 U.S.C. 921(a)(16)(C).
The provisions of the Act relating to antique firearms became
effective upon the date of enactment, October 21, 1998.
(3) Miscellaneous Amendments. Prior to amendment by the Act, the
term ``rifle'' was defined in the GCA to mean ``a weapon designed or
redesigned, made or remade, and intended to be fired from the shoulder
and designed or redesigned and made or remade to use the energy of the
explosive in a fixed metallic cartridge to fire only a single
projectile through a rifled bore for each single pull of the trigger.''
18 U.S.C. 921(a)(7) (1994). The Act amended the definition of ``rifle''
by replacing the words ``the explosive in a fixed metallic cartridge''
with ``an explosive.'' See 18 U.S.C. 921(a)(7) (2018).
Additionally, prior to amendment by the Act, the term ``shotgun''
was defined in the GCA to mean ``a weapon designed or redesigned, made
or remade, and intended to be fired from the shoulder and designed or
redesigned and made or remade to use the energy of the explosive in a
fixed shotgun shell to fire through a smooth bore either a number of
ball shot or a single projectile for each single pull of the trigger.''
18 U.S.C. 921(a)(5) (1994). The Act amended the definition of
``shotgun'' by replacing the words ``the explosive in a fixed shotgun
shell'' with ``an explosive.'' See 18 U.S.C. 921(a)(5) (2018).
The provisions of the Act relating to the miscellaneous amendments
also became effective upon the date of enactment, October 21, 1998.
II. Proposed Rule
On May 26, 2016, the Department of Justice (``the Department'')
published in the Federal Register a notice of proposed rulemaking
(``NPRM'') to codify into regulation certain provisions of the Act.
Commerce in Firearms and Explosives; Secure Gun Storage, Amended
Definition of Antique Firearm, and Miscellaneous Amendments, 81 FR
33448 (May 26, 2016). The rule proposed amending ATF's regulations to
account for the existing statutory requirement that applicants for
Federal firearms dealer licenses certify that secure gun storage or
safety devices will be available at any place where firearms are sold
under the license to nonlicensed individuals. This certification is
already included in ATF Form 7/7CR. The NPRM also proposed requiring
applicants for Federal firearms manufacturer or importer licenses to
complete the certification if the licensee will have premises where
firearms are sold to nonlicensees.
Next, the Department proposed to amend 27 CFR 478.11 by adding a
definition for the term ``secure gun storage or safety device'' that
tracks the language in the statute, as well as a new section 27 CFR
478.104 that specifies the terms of the certification requirement.
Moreover, the proposed regulation required that the secure gun storage
or safety device be compatible with the firearms offered for sale by
the licensee. 81 FR at 33449. Therefore, applicants under the proposed
rule would be required to certify the availability of compatible secure
gun storage or safety devices at any place where firearms were sold
under the license to nonlicensees.
The NPRM proposed applying the certification requirement to
applicants for Federal firearms importer or manufacturer licenses if
the licensee has
[[Page 184]]
premises where firearms are sold to nonlicensees. Federal regulations
provide that a licensed importer or a licensed manufacturer may engage
in business on the licensed premises as a dealer in the same type of
firearms authorized by the license to be imported or manufactured. 27
CFR 478.41(b). Accordingly, under the proposed rule, an applicant for a
Federal firearms importer or manufacturer license that engaged in
business on the licensed premises as a dealer of firearms to
nonlicensees was required to complete the certification.
One provision of the Act provides that, ``[n]otwithstanding any
other provision of law, evidence regarding compliance or noncompliance
[with the secure gun storage or safety device requirement] shall not be
admissible as evidence in any proceeding of any court, agency, board,
or other entity.'' Public Law 105-277, sec. 119, reprinted in 18 U.S.C.
923 note. In the proposed rule, ATF explained that this section applies
to civil liability actions against dealers and other similar actions,
and not to proceedings associated with license denials or revocations
(or appeals in Federal court from decisions in such proceedings)
involving noncompliance with the secure gun storage or safety device
requirement of the GCA. 81 FR at 33449. The proposed rule amended 27
CFR 478.73 to clarify that a notice of revocation of a Federal firearms
license may be issued whenever the ATF Director has reason to believe
that a licensee fails to have secure gun storage or safety devices
available at any place in which firearms are sold under the license to
persons who are not licensees (except in any case in which a secure gun
storage or safety device is temporarily unavailable because of theft,
casualty loss, consumer sales, backorders from a manufacturer, or any
other similar reason beyond the control of the licensee). Id. at 33453.
Finally, the Department proposed to amend 27 CFR 478.11 to reflect
the definitions of the terms ``antique firearm,'' ``rifle,'' and
``shotgun'' set forth in the Act. Id.
Comments on the notice of proposed rulemaking were to be submitted
to ATF on or before August 24, 2016.
III. Comment Analysis and Department Response
In response to the NPRM, with respect to an industry that includes
approximately 59,909 federally licensed firearms dealers (including
pawnbrokers), 12,673 licensed firearms manufacturers, and 1,054
licensed firearms importers, ATF received only four comments. This
small number of responses indicates that a broad majority of the
firearms industry accepts codification of behavior that has been
statutorily required for more than 20 years.
A. Comments on Impact on Manufacturers and Importers
1. Comments Received
One commenter argued that the proposed rule imposes the
certification requirement on all manufacturers and importers that sell
firearms to the public, despite the fact that the statute requires only
that dealers in firearms meet the certification requirement. Further,
according to the commenter, forcing manufacturers and importers to have
secure gun storage available and perhaps even to ``use'' such secure
gun storage could create a burdensome and expensive requirement.
Requiring firearms, many of which might not even be finished, to be
stored under lock and key every night would, in the opinion of the
commenter, be difficult, time consuming, and cost-prohibitive.
Therefore, according to the commenter, the proposed rule violated
Federal law by creating new requirements for licensees.
2. Department Response
The Department disagrees with the comment that ATF does not have
the statutory authority to require licensed manufacturers and importers
to certify that secure gun storage or safety devices will be available
at any place in which firearms are sold to nonlicensees. Under 18
U.S.C. 923(a), the license application must be in such form and contain
the information necessary to determine eligibility for licensing as the
Attorney General may prescribe by regulation. Similarly, under 18
U.S.C. 926(a), the Attorney General has the authority to promulgate any
rules that are necessary to implement the provisions of the GCA.
``Because Sec. 926 authorizes the [Attorney General] to promulgate
those regulations which are `necessary,' it almost inevitably confers
some measure of discretion to determine what regulations are in fact
`necessary.' '' Nat'l Rifle Ass'n v. Brady, 914 F.2d 475, 479 (4th Cir.
1990).
Although the language of section 923(d)(1)(G) refers only to
applications for license as a dealer, section 923(e), as amended by the
Act, more broadly provides that the Attorney General may, after notice
and an opportunity for a hearing, ``revoke any license issued under
this section if the holder of such license . . . fails to have secure
gun storage or safety devices available at any place in which firearms
are sold under the license to persons who are not licensees.''
(Emphasis added.) Section 923(e) thus applies to all licensees that
sell firearms to nonlicensees--not just dealer licensees. Hence,
because licensed manufacturers and importers may sell their firearms
directly to nonlicensees, see 27 CFR 478.41(b), ATF has the authority
to revoke the licenses of manufacturers or importers if they fail to
have secure gun storage or safety devices available for retail
transactions. Requiring manufacturers and importers to certify that
secure gun storage or safety devices will be available at any place in
which firearms are sold to nonlicensees helps ensure that manufacturers
and importers are aware of the implicit requirement in section 923(e)
that these licensees must make such storage or devices available. This
certification has been required of all license applicants except
collectors on ATF Form 7/7CR (5300.12/5310.16) for years.
Finally, neither the NPRM nor the final rule requires manufacturers
or importers to use secure gun storage or safety devices on their
inventory; rather, they need only make such storage or devices
available.
B. Comments on Compatibility of Devices
1. Comments Received
One commenter noted that 18 U.S.C. 923 does not explicitly require
that secure gun storage or safety devices maintained by Federal
firearms dealers be compatible or even be used, only that they be
available; therefore, according to the commenter, the proposed rule
cannot require it. Further, the commenter noted that ATF has no
authority to revoke the license of a dealer that does not lock up its
firearms.
2. Department Response
The commenter misinterpreted the proposed rule's application. The
proposed rule did not, as the commenter suggested, require federally
licensed dealers to use compatible devices on their inventory, nor did
the rule require them to lock up and store their firearms inventory.
Rather, the NPRM proposed implementing 18 U.S.C. 923(d)(1)(G) by
requiring applicants for dealer licenses, or those licensed
manufacturers and importers that will also deal firearms to nonlicensed
individuals as permitted in 27 CFR 478.41(b), to certify only that
compatible secure gun storage or safety devices are available at any
place where firearms are sold under the license to nonlicensed
individuals.
The Department believes the compatibility language in the rule is
[[Page 185]]
consistent with the text of the statute because it clarifies that the
secure gun storage or safety devices made available must be compatible
with the firearms offered for sale by the licensee.
Courts have explained that ``the administration and enforcement of
a statute call upon the agency charged with its execution to interpret
it.'' Continental Airlines, Inc. v. Dep't of Transportation, 843 F.2d
1444, 1449 (D.C. Cir. 1988). When a court is called upon to review an
agency's construction of a statute it administers, the court looks to
the framework set forth in Chevron U.S.A., Inc. v. Natural Resources
Defense Council, Inc., 467 U.S. 837 (1984). The first step of Chevron
review is to ask ``whether Congress has directly spoken to the precise
question at issue.'' Id. 842. ``If the intent of Congress is clear,
that is the end of the matter; for the court, as well as the agency,
must give effect to the unambiguously expressed intent of Congress. If,
however, the court determines Congress has not directly addressed the
precise question at issue . . . the question for the court is whether
the agency's answer is based on a permissible construction of the
statute.'' Id. at 842-43 (footnote omitted). Although the Act defines
``secure gun storage or safety device,'' that definition does not
specify whether or with which sorts of firearms the secure gun storage
and safety devices must be compatible. The Department believes that
this rule comports with the best reading of the statute and permissibly
clarifies that such storage and devices must be compatible with the
firearms sold at the licensed premises. This specification in the
regulation resolves any ambiguity in the statute and fulfills its
purpose because customers purchasing firearms should be able to leave
the premises with a secure gun storage or safety device that is
compatible with the type of firearm they purchased. A contrary rule,
under which licensees could comply with the statute by making available
exclusively devices that are incompatible with the firearms they sell,
would unreasonably thwart Congress's evident purpose in the Act. See
City of Chicago v. U.S. Dep't of Treasury, Bureau of Alcohol, Tobacco &
Firearms, 423 F.3d 777, 781 (7th Cir. 2005) (statutes should not be
read in a way that ``would thwart Congress' intention'').
C. Comments on Noncompliance Evidence in License Denial or Revocation
Procedures
1. Comments Received
In the NPRM, ATF referenced a provision in the Act that states that
``evidence regarding compliance or noncompliance [with the secure gun
storage or safety device requirement] shall not be admissible as
evidence in any proceeding of any court, agency, board, or other
entity.'' See Public Law 105-277, sec. 119. ATF explained that, based
on basic tenets of statutory construction, it reads the evidentiary
limitation as applying only ``to civil liability actions against
dealers and other similar actions, and not to proceedings associated
with license denials or revocations (or appeals in Federal court from
decisions in such proceedings) involving noncompliance with the secure
gun storage or safety device requirement'' of the Act. 81 FR at 33449.
Three commenters asserted that this provision of the Act prohibits
the use of a dealer's compliance or noncompliance with the secure gun
storage or safety device requirement in any administrative proceedings
to deny or revoke a Federal firearms license. Two commenters also
argued that ATF's interpretation substitutes its judgment for that of
Congress, and, by effectively amending legislation, violates the
``Separation of Powers Doctrine.'' These commenters stated that ATF
does not have the power to change or ignore statutes. They argued that
words have meaning, and that ATF cannot construe statutes to permit
something the plain text prohibits or create an exception for ATF's
administrative hearings where one does not exist in the law.
2. Department Response
The Department respectfully disagrees. There are at least two
canons of statutory interpretation that inform the Department's reading
of the evidence provision the commenters relied on. The first relevant
canon provides that, ``[w]henever a power is given by statute,
everything necessary to make it effectual or requisite to attain the
end is implied.'' Luis v. United States, 136 S. Ct. 1093, 1097 (2016)
(Thomas, J., concurring) (quoting 1 J. Kent, Commentaries on American
Law 464 (13th ed. 1884)). The second relevant canon provides that a
``court will not merely look to a particular clause in which general
words may be used, but will take in connection with it the whole
statute . . . and the objects and policy of the law.'' Stafford v.
Briggs, 444 U.S. 527, 535 (1980) (quoting Brown v. Duchesne, 19 How.
183, 194 (1857)). The evidence provision cannot be read in isolation.
Rather, it must be read within the context of the rest of the statute,
including the specific grant of authority for the Attorney General to
revoke the license of a licensee that does not comply with the Act.
Moreover, the Act specifically provides that none of its amendments
``shall be construed . . . as creating a cause of action against any
firearms dealer or any other person for any civil liability.'' 18
U.S.C. 923 note. That prohibition on civil liability implies that
Congress expected compliance with the secure gun storage or safety
device requirement to be enforced not by private individuals in civil
actions, but by the Attorney General in administrative proceedings, in
accordance with the specific authority granted to the Attorney General
to do so in 18 U.S.C. 923(e). The Attorney General could not fulfill
this role if, as asserted by the commenters, evidence of noncompliance
could not be used in administrative proceedings related to that
noncompliance, thus indicating that the evidence provision in the Act
does not apply to administrative proceedings regarding compliance with
the secure gun storage or safety device requirement. Cf. United States
v. Tohono O'Odham Nation, 563 U.S. 307, 315 (2011) (``Courts should not
render statutes nugatory through construction.'').
The Department's interpretation of the evidence provision is
further supported by the legislative history. The secure gun storage
provisions that were enacted were initially sponsored by Senator Larry
Craig as part of S.10, the Violent and Repeat Juvenile Offender Act of
1997, for which a Senate report was produced by the Senate Committee on
the Judiciary.\2\ The Committee's report stated that ``[t]he penalty
for willful violation . . . is revocation of the dealer's license,
after notice and opportunity for hearing is given pursuant to current
law.'' \3\ Thus, the Committee evidently expected that noncompliance
with the secure gun storage and safety device provisions would be
enforced through administrative proceedings, including a hearing. It
would accordingly be nonsensical to bar the Attorney General from using
evidence of such noncompliance in the same proceedings. Congress, in
other words, would not have written the specific amendments giving the
Attorney General the ability to revoke or deny a license based on
noncompliance if
[[Page 186]]
evidence of noncompliance could not be considered at the hearing ATF is
required to conduct under the law. Accordingly--in light of the context
in which the evidence provision appears, the legislative history
underlying the secure gun storage or safety device requirement, and the
authority granted in section 923(e)--the Department's position that the
evidence provision does not apply to ATF's enforcement hearings or
actions is the best interpretation of the law, and is certainly a
permissible interpretation of the provision. See Chevron, 467 U.S. at
843.
---------------------------------------------------------------------------
\2\ S. Rep. No. 105-108, at 108 (1997).
\3\ Id. (emphasis added).
---------------------------------------------------------------------------
Furthermore, Congress expressly authorized the Attorney General to
deny or revoke a license if the licensee or applicant fails to have or
certify that it has secure gun storage or safety devices available at
any place in which firearms are sold under the license to persons who
are not licensees (with the same exceptions noted above). 18 U.S.C.
923(d), (e). To exercise this authority, the Attorney General is
required to provide notice to an applicant or licensee and, upon
request of the aggrieved party, is authorized to conduct an
administrative hearing to make a final determination. 18 U.S.C. 923(e),
(f); 27 CFR 771.40-44. The agency's final decision is appealable to a
Federal court. 18 U.S.C. 923(f)(3). ATF \4\ can also institute criminal
proceedings against a licensee for violations of the GCA or the
regulations. 18 U.S.C. 923(f)(4). The express statutory grant of
authority in section 923 to deny or revoke a license based on evidence
of noncompliance supersedes the general language the commenters relied
on. See RadLAX Gateway Hotel, LLC v. Amalgamated Bank, 566 U.S. 639,
645 (2012) (citing HCSC-Laundry v. United States, 450 U.S. 1, 6 (1981)
(per curiam), for the proposition that the specific governs the
general, ``particularly when the two [statutes] are interrelated and
closely positioned, both in fact being parts of [the same statutory
scheme]''); Busic v. United States, 446 U.S. 398, 406 (1980).
---------------------------------------------------------------------------
\4\ The Attorney General is responsible for enforcing the GCA,
as amended. This responsibility includes the authority to promulgate
regulations necessary to enforce the provisions of the GCA. See 18
U.S.C. 926(a). The Attorney General has delegated the responsibility
for administering and enforcing the GCA to the ATF Director, subject
to the direction of the Attorney General and Deputy Attorney
General. See 28 CFR 0.130(a)(1)-(2).
---------------------------------------------------------------------------
D. Comments on Definitions of ``Rifle'' and ``Shotgun''
1. Comments Received
Comments relating to the definitions of ``rifle'' and ``shotgun''
stated that, to prevent confusion between a modern rifle or shotgun and
a muzzleloader or antique firearm, and to preclude future Federal
``over reach'' to classify muzzle loading arms as rifles, the
definitions should specifically exclude muzzle loading arms using black
powder or black powder substitutes. Additionally, one commenter stated
that ``explosive'' is not the correct word for the propellant in a
modern firearm and suggested amending the term ``explosive'' in the
definitions of ``rifle'' and ``shotgun'' to reference smokeless solid
propellants that deflagrate rather than detonate, thereby clarifying
that metallic cartridge firearms using smokeless propellants do not
fall under the definitions of ``rifle'' or ``shotgun'' due to their
lack of use of an explosive that detonates.
2. Department Response
The Department respectfully declines to revise the definitions of
``rifle'' and ``shotgun'' to refer to smokeless solid propellants,
rather than an ``explosive,'' because doing so would not be consistent
with the statutory definitions set forth in the Act. The current
statutory definition for ``antique firearm'' excludes certain muzzle
loading firearms using black powder or black powder substitutes from
the definition of ``firearm,'' thus making the inclusion of additional
language to exclude them unnecessary. This final rule updates the
existing regulations to reflect the current language of the statute.
Further, the Department does not agree with the suggested
clarification of the term ``explosive'' in the definitions of ``rifle''
and ``shotgun.'' The use of the phrase ``by action of an explosive''
within the definitions of ``rifle'' and ``shotgun'' is appropriate, as
it is descriptive of a process and not a classification of the
propellant powder. The provisions of the Act relating to antique
firearms and definitions of the terms ``rifle'' and ``shotgun'' became
effective on the day of enactment, October 21, 1998. This final rule
updates the existing regulations to reflect the current language of the
statute.
IV. Final Rule
This final rule implements the amendments to the regulations in 27
CFR part 478 that were specified in the NPRM published on May 26, 2016
(81 FR 33448) without change.
V. Statutory and Executive Order Review
A. Executive Orders 12866 and 13563
Executive Order 12866 (Regulatory Planning and Review) directs
agencies to assess the costs and benefits of available regulatory
alternatives and, if regulation is necessary, to select regulatory
approaches that maximize net benefits (including potential economic,
environmental, public health and safety effects, distributive impacts,
and equity). Executive Order 13563 (Improving Regulation and Regulatory
Review) emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of maintaining
flexibility.
The Office of Management and Budget (``OMB'') has determined that,
although this final rule is not economically significant, it is a
``significant regulatory action'' under section 3(f)(4) of Executive
Order 12866 because this final rule raises novel legal or policy issues
arising out of legal mandates. Accordingly, the rule has been reviewed
by OMB.
This rule requires that Federal firearms licensees (``FFLs'') make
available secure gun storage or safety devices to non-FFLs that
purchase firearms. Furthermore, this rule requires that all FFLs must
certify that they have secure gun storage or safety devices available
if they sell firearms to non-FFLs. This section describes the affected
population, costs, and benefits for this rule. In determining the costs
and benefits of this rule, ATF has followed OMB guidance for conducting
regulatory analyses. See OMB, Memorandum to the Heads of Executive
Agencies and Establishments, Re: Regulatory Analysis, Circular A-4
(Sept. 17, 2003) (``Circular A-4''). According to that guidance,
regulations such as this one that largely restate self-enforcing
statutory requirements should be analyzed against a baseline that pre-
dates the enactment of the relevant statute. Thus, although ATF has
implemented and enforced the Act in the years since its passage even in
the absence of the regulation at issue in this rulemaking, the costs
and benefits of doing so have been attributed to this regulation for
the purpose of this analysis.
Table 1 provides the summary of the expected effects that this rule
will have on the public. For more details regarding this analysis,
please refer to the standalone regulatory analysis (``RA'') located on
the docket.
[[Page 187]]
Table 1--Summary of Affected Population, Costs, and Benefits
------------------------------------------------------------------------
Category Final rule
------------------------------------------------------------------------
Applicability.......................... All FFLs.
Type 1 FFL--Dealer in
firearms other than
destructive devices.
Type 2 FFL--Pawnbroker
in firearms other than
destructive devices.
Affected Population.................... 130,525 FFLs.
52,795 Type 1 FFLs.
7,114 Type 2 FFLs.
Total Costs to Industry, Public, and $853,187 at 7% annualized.
Government (7% Discount Rate).
Savings (7% Discount Rate)............. N/A.
Benefits (7% Discount Rate)............ N/A.
Benefits non-monetized................. Inhibits unauthorized
access to privately owned
firearms by individuals such
as children, who might suffer
accidental injuries.
Inhibits access to
privately owned firearms by
criminals, who might use them
for illicit activities.
------------------------------------------------------------------------
1. Need for Federal Regulation
Agencies take regulatory action for various reasons. One reason is
to carry out Congress's policy decisions, as expressed in statutes.
Here, this rulemaking aims to comply with the Omnibus Consolidated and
Emergency Supplemental Appropriations Act of 1999 relating to secure
gun storage. Another reason underpinning regulatory action is the
failure of the market to compensate for negative externalities caused
by commercial activity. A negative externality can be the byproduct of
a transaction between two parties that is not accounted for in the
transaction. This final rule addresses a negative externality. The
negative externality of the sale of firearms is that the firearms might
not be stored properly and could be accessed by children who could
cause accidents with the firearms or accessed by criminals who would
use them for illicit activities. This rule provides nonlicensed firearm
owners with the option to have devices that enable them to store their
firearms so as to inhibit children or criminals from accessing their
firearms.
2. Affected Population
This rulemaking affects two populations. The first population is
the number of FFLs required to certify on Form 7/7CR that secure gun
storage or safety devices will be available at any place in which
firearms are sold under the license to persons who are not licensees.
The second population is the number of FFLs that need to acquire secure
gun storage or safety devices to make available at their place of
business.
Entities directly affected by the requirement to certify the
availability of secure gun storage or safety devices are all FFLs.
Although this rule primarily affects FFLs that sell firearms to
nonlicensed persons, this rule affects all FFLs in that all FFL
applicants must indicate on the Form 7/7CR application whether the
applicants have gun storage or safety devices available for
nonlicensees or whether this requirement is not applicable because they
are seeking a Type 3 license for collectors.
Because the Act was enacted shortly before 1999, and because ATF
has required certification since 1999, ATF estimated the affected
population to be all FFLs from 1999 to present. However, FFLs have to
certify the availability of secure gun storage or safety devices only
when they apply as new FFLs or every three years when they renew their
Federal firearms license. Tables 2 and 3 show the numbers of new
applications and renewals by FFL type and year. For more information on
the methodology used to determine the numbers of new FFLs by Type,
please refer to the standalone RA.
Table 2--New and Renewal Applications of Type 1, 2, 3, 6, and 7 Federal Firearms Licensees
--------------------------------------------------------------------------------------------------------------------------------------------------------
06--Manufacturer
Year 01--Dealer in 02--Pawnbroker in 03--Collector of of ammunition for 07--Manufacturer
firearms firearms curios and relics firearms of firearms
--------------------------------------------------------------------------------------------------------------------------------------------------------
1999..................................................... 24,977 3,516 19,919 787 574
2000..................................................... 24,829 3,583 19,919 777 652
2001..................................................... 24,788 3,572 19,919 757 715
2002..................................................... 24,660 3,615 19,919 727 800
2003..................................................... 24,553 3,639 19,919 723 874
2004..................................................... 24,547 3,579 19,919 711 938
2005..................................................... 24,494 3,553 19,919 683 1,034
2006..................................................... 24,406 3,503 19,919 679 1,143
2007..................................................... 24,266 3,434 19,919 690 1,315
2008..................................................... 24,148 3,345 19,919 708 1,482
2009..................................................... 23,763 3,337 19,919 759 1,782
2010..................................................... 23,284 3,368 19,919 859 2,097
2011..................................................... 20,956 3,046 22,338 816 2,343
2012..................................................... 21,259 3,105 21,622 855 3,104
2013..................................................... 22,274 3,221 13,134 966 3,748
2014..................................................... 22,049 3,235 6,767 1,033 3,966
2015..................................................... 20,876 3,029 18,671 967 3,901
2016..................................................... 22,104 3,146 19,322 957 4,317
2017..................................................... 21,896 3,043 18,876 873 4,622
2018..................................................... 20,479 2,799 17,643 776 4,603
2019..................................................... 20,034 2,726 17,478 709 4,848
[[Page 188]]
2020..................................................... 22,710 3,060 20,150 777 6,076
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Note: Numbers may not add for Type 1 FFLs due to adjustments to ensure the numbers of applications in Tables 2 and 3 match total FFLs in this table.
Table 3--New and Renewal Applications of Type 8, 9, 10, and 11 Federal Firearms Licensees
--------------------------------------------------------------------------------------------------------------------------------------------------------
09--Dealer in 10--Manufacturer 11--Importer of Total new
Year 08--Importer of destructive of destructive destructive applications and
firearms devices devices devices renewals
--------------------------------------------------------------------------------------------------------------------------------------------------------
1999..................................................... 265 4 44 26 50,112
2000..................................................... 275 4 46 26 50,111
2001..................................................... 283 5 45 28 50,112
2002..................................................... 303 7 52 31 50,114
2003..................................................... 307 7 56 35 50,113
2004..................................................... 315 7 60 37 50,113
2005..................................................... 317 7 66 40 50,113
2006..................................................... 327 8 81 47 50,113
2007..................................................... 338 11 86 52 50,111
2008..................................................... 344 15 94 57 50,112
2009..................................................... 365 17 107 64 50,113
2010..................................................... 375 20 119 71 50,112
2011..................................................... 349 18 112 69 50,047
2012..................................................... 355 22 109 71 50,502
2013..................................................... 411 24 113 76 43,967
2014..................................................... 451 26 114 80 37,721
2015..................................................... 428 25 117 82 48,096
2016..................................................... 429 27 130 86 50,518
2017..................................................... 430 30 138 90 49,998
2018..................................................... 413 36 138 88 46,975
2019..................................................... 413 48 146 94 46,496
2020..................................................... 489 55 182 116 53,615
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Note: Numbers may not add for Type 1 FFLs due to adjustments to ensure the number of applications in Tables 2 and 3 match total FFLs in this table.
The second population directly affected by this rule primarily
consists of Type 1 and 2 FFLs that sell firearms to the public. These
FFLs must acquire secure gun storage or safety devices to be made
available to firearm purchasers in their place of business. Based on
the year the Act was enacted, ATF assumed that all Type 1 and 2 FFLs in
1999 had to acquire secure gun storage or safety devices to make
available to any potential nonlicensee customers. From 2000 onwards,
only new FFLs would need to acquire some form of gun storage or safety
devices to make available to their customers. Although this rule
affects all FFLs that sell firearms to nonlicensed individuals, no cost
was attributed to Type 9, 10, and 11 licensees because they primarily
deal, manufacture, and import destructive devices used by domestic and
foreign governments rather than selling firearms at the retail level to
nonlicensed individuals. Similarly, although Type 7 and 8 licensees are
manufacturers and importers that may sell firearms to nonlicensed
persons, most of these licensees, even prior to enactment of the Act,
have voluntarily included secure gun storage or safety devices for
their firearms, and hence would not have needed to separately acquire
such storage or devices to make them available to nonlicensees.\5\ Of
those Type 7 and 8 FFLs that do not provide secure gun storage or
safety devices, ATF assumed these licensees primarily sell firearms
wholesale to Type 1 FFLs and do not sell to nonlicensed persons.
---------------------------------------------------------------------------
\5\ See Hearing before the Subcomm. on the Constitution of the
S. Comm. on the Judiciary, 117th Cong. (2021), 2021 WL 2138600
(discussing the success of Project ChildSafe, through which
``manufacturers have voluntarily included a locking device in every
box sold since the late 1980's'' (testimony of Joseph Bartozzi,
President and CEO, National Shooting Sports Foundation)); S. Rep.
No. 105-108, at 201-02 (``The arguments raised against safety locks
ring hollow, especially in light of the recent announcement by
eight[] of the Nation's largest handgun manufacturers that they will
voluntarily comply with the heart of Senator Kohl's amendment by
packaging a child safety lock with every handgun they sell.'').
---------------------------------------------------------------------------
Based on congressional testimony and subject matter experts'
(``SMEs'') experience, most firearm manufacturers now include locks
with new purchases of firearms, and, as noted above, have been doing so
since before the enactment of the Act.\6\ ATF, however, is not certain
of the exact date when manufacturers and importers began voluntarily
providing locks and, in the interest of not underestimating the costs
attributable to this rule, ATF assumed that all Type 1 FFLs in 1999
would need to acquire secure gun storage or safety devices to make
available to their customers. ATF then estimated that, as manufacturers
and importers continued to provide locks with their firearms, and as
this practice became more common, a decreasing number of FFLs needed to
acquire secure gun storage or safety devices each year until year 2003.
After 2003, ATF maintained a constant rate of 20 percent of FFLs that
do not receive safety devices with the firearms they sell to account
for any manufacturers and importers that, even today, do not provide
safety devices with their firearms. In addition, Type 2 FFLs are
pawnshops that acquire previously owned firearms. ATF does not know
[[Page 189]]
whether the firearms acquired by Type 2 FFLs have secure locks or not.
Therefore, ATF assumed that all new Type 2 FFLs need to acquire secure
gun storage or safety devices to satisfy the requirements of the Act.
---------------------------------------------------------------------------
\6\ See supra note 5.
---------------------------------------------------------------------------
Because Type 2 FFLs primarily deal with secondhand firearms and not
new purchases, ATF assumed that, in 1999, all Type 2 FFLs acquired
secure gun storage or safety devices and, from 2000 onward, only new
Type 2 FFLs needed to acquire a means of securing firearms. Therefore,
ATF assumed that pawnbrokers from 2000 to 2020 consisted only of new
Type 2 FFLs.
Table 4 provides the estimated number of Type 1 and 2 FFLs that
needed to acquire secure gun storage or safety devices and make them
available at their place of business for potential nonlicensed
customers. For more detailed information on obtaining the population of
FFLs needing to acquire secure gun storage or safety devices to make
available, please refer to the standalone RA.
Table 4--FFL Types 1 and 2 That Needed To Purchase Secure Gun Storage or Safety Devices
----------------------------------------------------------------------------------------------------------------
Rate of FFLs that
do not receive Type 2 FFL
Year New type 1 FFL locks from Type 1 FFL needing
manufacturers (%)
----------------------------------------------------------------------------------------------------------------
1999............................... 71,290 100 71,290 10,035
2000............................... 8,677 80 6,942 1,252
2001............................... 8,663 60 5,198 1,248
2002............................... 8,618 40 3,447 1,263
2003............................... 8,581 20 1,716 1,272
2004............................... 8,579 20 1,716 1,251
2005............................... 8,560 20 1,712 1,242
2006............................... 8,529 20 1,706 1,224
2007............................... 8,481 20 1,696 1,200
2008............................... 8,439 20 1,688 1,169
2009............................... 8,305 20 1,661 1,166
2010............................... 8,137 20 1,627 1,177
2011............................... 7,768 20 1,554 854
2012............................... 9,034 20 1,807 971
2013............................... 10,177 20 2,035 1,063
2014............................... 7,874 20 1,575 823
2015............................... 7,088 20 1,418 730
2016............................... 7,552 20 1,510 762
2017............................... 6,599 20 1,320 645
2018............................... 6,314 20 1,263 603
2019............................... 5,667 20 1,133 532
2020............................... 8,442 20 1,688 772
----------------------------------------------------------------------------------------------------------------
3. Costs
This analysis considers the rule's direct (or industry) costs,
indirect costs, and government costs. Industry costs are the costs to
FFLs that need to certify the availability of secure gun storage or
safety devices and the costs to FFLs that need to acquire secure gun
storage or safety devices to make available to the public. Indirect
costs are those costs associated with organizations and manufacturers
providing gun locks or safety devices. Government costs are enforcement
costs to ensure that the affected FFLs have been and are continuing to
comply with the statute.
In determining direct, industry costs, ATF used the average wage
rate associated with certain job titles listed on Form 7/7CR by FFL
type. ATF used a loaded wage rate of 1.42 to include fringe benefits
such as insurance as part of the overall compensation.\7\ Because FFLs
are segmented by industry type, ATF used a sample from each industry
type to determine an average wage rate by each FFL type. For FFLs
completing Form 7CR, ATF assigned a leisure wage rate of $16.52 because
FFLs that complete Form 7CR are Type 3 FFLs--i.e., collectors who do
not apply for a license as part of an occupation.\8\ Although Type 3
FFL collectors are not required to make available secure gun storage or
safety devices, they are still required to answer the question about
availability on Form 7CR by marking ``N/A.'' Therefore, costs for that
action were counted as an industry cost of this rule. For more
information on the wages used for each sample, please refer the
standalone RA. Table 5 provides the average loaded wage rate by FFL
type.
---------------------------------------------------------------------------
\7\ Bureau of Labor Statistics, Series Report, https://data.bls.gov/cgi-bin/srgate. Data was generated for 2020 using
series CMU2010000000000D, CMU2010000000000P and CMU2020000000000D,
CMU2020000000000P. Average total compensation was $35.87. Average
cost per hour worked was $25.18. Loaded wage rate 1.42 = $35.87/
$25.18.
\8\ As explained more fully in the accompanying RA, the leisure
wage rate was estimated using the calculation described in the
Department of Transportation's guidance on the valuation of travel
time. See Dep't of Transportation, Revised Departmental Guidance on
Valuation of Travel Time in Economic Analysis 19 (Sept. 27, 2016),
https://www.transportation.gov/sites/dot.gov/files/docs/2016%20Revised%20Value%20of%20Travel%20Time%20Guidance.pdf.
Table 5--Average Loaded Wage Rate by FFL Type
------------------------------------------------------------------------
------------------------------------------------------------------------
Types 1 and 2........................................... $82.06
Type 3.................................................. 16.52
Type 6.................................................. 58.91
Type 7.................................................. 62.93
Type 8.................................................. 76.13
Type 9.................................................. 103.44
Type 10................................................. 87.86
Type 11................................................. 109.30
------------------------------------------------------------------------
[[Page 190]]
The time needed for an FFL to certify on Form 7/7CR that it has
secure gun storage or safety devices (or to mark ``N/A'') was estimated
at 0.1 minute (0.0017 hours). ATF started with the average loaded wage
rate by type of license, multiplied the wage rate by the estimated
number of new and renewal FFLs per type from Tables 2 and 3, and
multiplied that result by the hour burden to determine the annual cost
to certify. Tables 6 and 7 provide the annual costs to certify by FFL
type from 1999 to the present.
Table 6--Cost To Certify by FFL Types 1, 2, 3, 6, 7, and 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
Year Types 1 and 2 Type 3 Type 6 Type 7 Type 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
1999..................................................... $3,897 $548 $77 $60 $34
2000..................................................... 3,886 548 76 68 35
2001..................................................... 3,879 548 74 75 36
2002..................................................... 3,867 548 71 84 38
2003..................................................... 3,856 548 71 92 39
2004..................................................... 3,847 548 70 98 40
2005..................................................... 3,836 548 67 108 40
2006..................................................... 3,817 548 67 120 41
2007..................................................... 3,788 548 68 138 43
2008..................................................... 3,760 548 70 155 44
2009..................................................... 3,706 548 75 187 46
2010..................................................... 3,645 548 84 220 48
2011..................................................... 3,283 615 80 246 44
2012..................................................... 3,332 595 84 326 45
2013..................................................... 3,487 362 95 393 52
2014..................................................... 3,458 186 101 416 57
2015..................................................... 3,269 514 95 409 54
2016..................................................... 3,453 532 94 453 54
2017..................................................... 3,411 520 86 485 55
2018..................................................... 3,184 486 76 483 52
2019..................................................... 3,113 481 70 508 52
2020..................................................... 3,524 555 76 637 62
--------------------------------------------------------------------------------------------------------------------------------------------------------
Table 7--Cost To Certify by FFL Types 9, 10, and 11
----------------------------------------------------------------------------------------------------------------
Year Type 9 Type 10 Type 11 Total
----------------------------------------------------------------------------------------------------------------
1999................................ $1 $6 $5 $4,564
2000................................ 1 7 5 4,562
2001................................ 1 7 5 4,561
2002................................ 1 8 6 4,560
2003................................ 1 8 6 4,558
2004................................ 1 9 7 4,556
2005................................ 1 10 7 4,554
2006................................ 1 12 9 4,551
2007................................ 2 13 9 4,545
2008................................ 3 14 10 4,540
2009................................ 3 16 12 4,529
2010................................ 3 17 13 4,515
2011................................ 3 16 13 4,300
2012................................ 4 16 13 4,415
2013................................ 4 17 14 4,423
2014................................ 4 17 15 4,255
2015................................ 4 17 15 4,378
2016................................ 5 19 16 4,626
2017................................ 5 20 16 4,597
2018................................ 6 20 16 4,323
2019................................ 8 21 17 4,271
2020................................ 9 27 21 4,912
----------------------------------------------------------------------------------------------------------------
For purposes of this analysis, ATF estimated that Type 1 and 2 FFLs
that must comply with the Act would have purchased at least two safety
devices at an average price of $7.39 per safety device and tape ($2.36)
to notate the owner of the gun. Combined, the average price to make
available secure gun storage or safety devices for customers is $17.14
per store. For sources of costs to make available secure gun storage or
safety devices, refer to section 3.1.2 of the standalone RA.
For an annual direct, industry cost of certifying and making
available secure gun storage or safety devices, refer to Table 8. That
table provides the annual cost of certifying and making available
secure gun storage or safety devices from 1999 to 2020.
[[Page 191]]
Table 8--Year by Year Direct, Industry Cost
----------------------------------------------------------------------------------------------------------------
Discounted cost
Year Undiscounted -------------------------------------
industry costs 7% 3%
----------------------------------------------------------------------------------------------------------------
1999................................................... $1,398,539 $6,196,088 $2,679,745
2000................................................... 147,582 611,072 274,546
2001................................................... 117,089 453,096 211,475
2002................................................... 86,808 313,942 152,218
2003................................................... 56,753 191,821 96,618
2004................................................... 56,368 178,057 93,168
2005................................................... 56,157 165,784 90,115
2006................................................... 55,727 153,753 86,821
2007................................................... 55,132 142,161 83,393
2008................................................... 54,445 131,204 79,954
2009................................................... 53,922 121,442 76,879
2010................................................... 53,517 112,645 74,080
2011................................................... 45,572 89,646 61,244
2012................................................... 52,034 95,663 67,893
2013................................................... 57,778 99,274 73,192
2014................................................... 45,742 73,451 56,256
2015................................................... 41,188 61,813 49,181
2016................................................... 43,561 61,097 50,499
2017................................................... 38,282 50,179 43,086
2018................................................... 36,298 44,466 39,664
2019................................................... 32,817 37,572 34,815
2020................................................... 47,075 50,370 48,487
--------------------------------------------------------
Total.............................................. 2,632,384 9,434,596 4,523,330
----------------------------------------------------------------------------------------------------------------
Annualized......................................... ................. 852,942 283,827
----------------------------------------------------------------------------------------------------------------
In addition to direct, industry costs for Type 1 and 2 FFLs to make
available secure gun storage or safety devices, the government incurred
costs to enforce secure gun storage and safety device requirements on
FFLs. Based on ATF's database, ATF found two violations in 2019 and six
violations in 2020, making the average number of violations four. Based
on input from SMEs, ATF determined that Industry Operations
Investigators (``IOI'') undertaking inspections related to the secure
gun storage and safety device requirement range from a GS-9 to GS-13,
making the average IOI a GS-10, step 5. The hourly wage rate for a GS-
10, step 5 is $27.56.\9\ In order to account for fringe benefits, ATF
attributed a load rate of 1.41, making the loaded, hourly wage rate for
an IOI $38.86.\10\ \11\ The SMEs estimated that it would take an
average of 20 minutes (0.33 hours) to have a conversation with the FFL
in question and compile a report or warning regarding the violation,
making the government cost $26 in 2019 and $78 in 2020. Because ATF
does not have any information regarding inspections for previous years,
ATF used the average of four violations per year as the government cost
for enforcement between the years 1999 and 2018. The average cost of
enforcement was estimated to be $52.
---------------------------------------------------------------------------
\9\ Office of Personnel Management, SALARY TABLE 2021-GS (Jan.
2021), https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2021/GS_h.pdf.
\10\ Federal benefits account for 41 percent of total
compensation. Congressional Budget Office, Comparing the
Compensation of Federal and Private-Sector Employees, 2011 to 2015,
at 14 (Apr. 2017), https://www.cbo.gov/system/files/115th-congress-2017-2018/reports/52637-federalprivatepay.pdf.
\11\ $38.86 loaded wage rate = $27.56 hourly wage rate * 1.41
load rate.
---------------------------------------------------------------------------
ATF accounts for indirect costs of this rule although they are not
considered part of the total cost of the rule. Other organizations,
such as Project ChildSafe, provide gun locks free to the public, which
ends up being a savings for the populations affected by this rule.
Because these costs are voluntarily incurred, they are considered
indirect costs. Based on information provided by Project ChildSafe,
which primarily obtains its funding through other sources, this
organization has provided approximately 38 million gun locks to the
public and provides approximately 1.8 million gun lock kits
annually.\12\ Furthermore, Project ChildSafe estimates that
manufacturers have included approximately 70 million locks with a
purchase of a firearm, which they estimate is valued at $140
million.\13\ These are indirect costs that ATF does not consider as
part of the total costs of this final rule.
---------------------------------------------------------------------------
\12\ Project ChildSafe, Project ChildSafe by the Numbers,
https://www.projectchildsafe.org/sites/default/files/NSSF_PCS_Infographic_PCSByTheNumbers_Jan2019_0.pdf (last accessed
Dec. 17, 2021).
\13\ Id.
---------------------------------------------------------------------------
Other indirect costs include firearm manufacturers who voluntarily
include safety devices with each purchase of a new firearm. While
manufacturers are not required to provide gun locks with their firearms
due to this rule, it is possible that manufacturers have incorporated
the cost of these gun locks into the final purchasing price of the
firearm and is therefore already accounted for. It is for these reasons
that ATF does not consider these indirect costs as costs attributed to
this rule.
ATF accounted for the direct, industry costs of this rule along
with the government enforcement costs attributed to this rule. Table 9
provides the total costs for this rule.
[[Page 192]]
Table 9--Total Direct, Industry and Government Costs of This Rule
----------------------------------------------------------------------------------------------------------------
Discounted cost
Year Undiscounted -------------------------------------
total costs 7% 3%
----------------------------------------------------------------------------------------------------------------
1999................................................... $1,398,590 $6,196,318 $2,679,844
2000................................................... 147,634 611,287 274,642
2001................................................... 117,140 453,296 211,569
2002................................................... 86,859 314,130 152,309
2003................................................... 56,805 191,996 96,706
2004................................................... 56,420 178,221 93,254
2005................................................... 56,209 165,937 90,198
2006................................................... 55,779 153,896 86,902
2007................................................... 55,184 142,294 83,471
2008................................................... 54,497 131,329 80,030
2009................................................... 53,973 121,558 76,953
2010................................................... 53,569 112,754 74,152
2011................................................... 45,623 89,748 61,314
2012................................................... 52,086 95,758 67,960
2013................................................... 57,830 99,363 73,257
2014................................................... 45,793 73,534 56,320
2015................................................... 41,240 61,890 49,243
2016................................................... 43,613 61,170 50,559
2017................................................... 38,333 50,247 43,145
2018................................................... 36,350 44,530 39,720
2019................................................... 32,843 37,602 34,843
2020................................................... 47,153 50,454 48,567
--------------------------------------------------------
Total.............................................. 2,633,524 9,437,311 4,524,959
----------------------------------------------------------------------------------------------------------------
Annualized......................................... ................. 853,187 283,929
----------------------------------------------------------------------------------------------------------------
Overall, ATF estimated that, in accordance with the standards for
regulatory analysis described in OMB Circular A-4, the total cost
attributable to this rule from 1999 to 2020 was $2.6 million
undiscounted, or annualized at $853,187 and $283,929 at 7 percent and 3
percent, respectively.
4. Benefits
The benefit of this rule is making available secure gun storage or
safety devices for owners of firearms who otherwise do not have such
storage or safety devices available to them. Making secure gun storage
or safety devices available inhibits unauthorized access to privately
owned firearms for individuals such as children, who might accidently
discharge them, and inhibits access by criminals, who might use them
for illicit activities.
B. Executive Order 13132
This rule will not have substantial direct effects on the States,
on the relationship between the Federal Government and the States, or
on the distribution of power and responsibilities among the various
levels of government. Therefore, in accordance with section 6 of
Executive Order 13132 (Federalism), the Attorney General has determined
that this rule does not have sufficient federalism implications to
warrant the preparation of a federalism summary impact statement.
C. Executive Order 12988
This rule meets the applicable standards set forth in sections 3(a)
and 3(b)(2) of Executive Order 12988 (Civil Justice Reform).
D. Regulatory Flexibility Act
Under the Regulatory Flexibility Act, 5 U.S.C. 601-12, the Attorney
General certifies that this final rule will not have a significant
economic impact on a substantial number of small entities. The
Department has considered whether this final rule would have a
significant economic impact on a substantial number of small entities.
The term ``small entities'' comprises small businesses, not-for-profit
organizations that are independently owned and operated and are not
dominant in their fields, and governmental jurisdictions with
populations of fewer than 50,000.
ATF has determined that, in order for the costs associated with
this rule to impact a small entity's revenue by even one percent, the
entity would need to make $1,728 or less in annual revenue. For the
costs to have a 10 percent effect on revenue, a small entity would need
to make $173 or less in revenue. ATF has determined that it is unlikely
that a small entity would make such minimal amounts in revenue and
continue to operate. Therefore, the Attorney General certifies under 5
U.S.C. 605(b) that this final rule would not have a significant
economic impact on a substantial number of small entities.
E. Unfunded Mandates Reform Act of 1995
This rule will not result in the aggregate expenditure by State,
local, and Tribal governments, or by the private sector, of $100
million or more in any one year, and it will not significantly or
uniquely affect small governments. Therefore, no actions are necessary
under the provisions of the Unfunded Mandates Reform Act of 1995.
F. Paperwork Reduction Act
Under the Paperwork Reduction Act of 1995 (``PRA''), 44 U.S.C.
3501-21, agencies are required to submit for OMB review and approval
any reporting requirements inherent in a rule. The collection of
information contained in this final rule is a collection of information
that has been reviewed and approved by OMB in accordance with the
requirements of the PRA, and it has been assigned an OMB Control
Number.
Title: Application for Federal Firearms License--ATF Form 7
(5310.12)/7CR (5310.16).
OMB Control Number: 1140-0018.
Summary of the Collection of Information: This collection of
information is used by the public when applying for a Federal firearms
license
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(``FFL''); this form is used to apply for all FFL types.
Need for Information: The information requested on the form is used
to determine the eligibility of the applicant to obtain an FFL, and the
identity and eligibility of Responsible Persons.
Proposed Use of Information: The information contained will be used
to determine the applicant's eligibility to receive a license.
Description of the Respondents: All Federal firearms licensees.
Number of Respondents: 47,088.
Frequency of Response: Once every 3 years.
Burden of Response: For this rule, 0.0017 hours. Total 1 hour.
Estimate of Total Annual Burden: For this rule, 80 hours. Total
burden 47,088 hours.
G. Congressional Review Act
Pursuant to the Congressional Review Act, 5 U.S.C. 801-08, OMB's
Office of Information and Regulatory Affairs designated this rule as
not a ``major rule,'' as defined by 5 U.S.C. 804(2). This rule will not
result in an annual effect on the economy of $100 million or more; a
major increase in costs or prices; or a significant adverse effect on
competition, employment, investment, productivity, innovation, or on
the ability of United States-based enterprises to compete with foreign-
based enterprises in domestic and export markets.
Disclosure
Copies of this rule and the comments received in response to the
proposed rule will be available for public inspection through the
Federal eRulemaking portal, www.regulations.gov (search for RIN 1140-
AA10), or by appointment during normal business hours at the ATF
Reading Room, Room 1E-062, 99 New York Avenue NE, Washington, DC 20226;
telephone: (202) 648-8740.
List of Subjects in 27 CFR Part 478
Administrative practice and procedure, Arms and munitions, Exports,
Freight, Imports, Intergovernmental relations, Law enforcement
officers, Military personnel, Penalties, Reporting and recordkeeping
requirements, Research, Seizures and forfeitures, Transportation.
Authority and Issuance
Accordingly, for the reasons discussed in the preamble, 27 CFR part
478 is amended as follows:
PART 478--COMMERCE IN FIREARMS AND AMMUNITION
0
1. The authority citation for part 478 is revised to read as follows:
Authority: 5 U.S.C. 552(a); 18 U.S.C. 847, 921-931; 44 U.S.C.
3504(h).
0
2. Amend Sec. 478.11 as follows:
0
a. Revise the definition of ``Antique firearm'';
0
b. Remove the words ``the explosive in a fixed metallic cartridge'' in
the definition of ``Rifle'' and add in their place ``an explosive'';
0
c, Add a definition for ``Secure gun storage or safety device'' in
alphabetical order; and
0
d. Remove the words ``the explosive in a fixed shotgun shell'' in the
definition of ``Shotgun'' and add in their place ``an explosive''.
The revision and addition read as follows:
Sec. 478.11 Meaning of terms.
* * * * *
Antique firearm. (1) Any firearm (including any firearm with a
matchlock, flintlock, percussion cap, or similar type of ignition
system) manufactured in or before 1898;
(2) Any replica of any firearm described in paragraph (a) of this
definition if such replica:
(i) Is not designed or redesigned for using rimfire or conventional
centerfire fixed ammunition; or
(ii) Uses rimfire or conventional centerfire fixed ammunition that
is no longer manufactured in the United States and that is not readily
available in the ordinary channels of commercial trade; or
(3) Any muzzle loading rifle, muzzle loading shotgun, or muzzle
loading pistol that is designed to use black powder, or a black powder
substitute, and that cannot use fixed ammunition. For purposes of this
paragraph (3), the term ``antique firearm'' does not include any weapon
that incorporates a firearm frame or receiver, any firearm that is
converted into a muzzle loading weapon, or any muzzle loading weapon
that can be readily converted to fire fixed ammunition by replacing the
barrel, bolt, breechblock, or any combination thereof.
* * * * *
Secure gun storage or safety device. (1) A device that, when
installed on a firearm, is designed to prevent the firearm from being
operated without first deactivating the device;
(2) A device incorporated into the design of the firearm that is
designed to prevent the operation of the firearm by anyone not having
access to the device; or
(3) A safe, gun safe, gun case, lock box, or other device that is
designed to be or can be used to store a firearm and that is designed
to be unlocked only by means of a key, a combination, or other similar
means.
* * * * *
0
3. Amend Sec. 478.73 by adding a sentence after the first sentence in
paragraph (a) to read as follows:
Sec. 478.73 Notice of revocation, suspension, or imposition of civil
fine.
(a) * * * In addition, a notice of revocation of the license, on
ATF Form 4500, may be issued whenever the Director has reason to
believe that a licensee fails to have secure gun storage or safety
devices available at any place in which firearms are sold under the
license to persons who are not licensees (except in any case in which a
secure gun storage or safety device is temporarily unavailable because
of theft, casualty loss, consumer sales, backorders from a
manufacturer, or any other similar reason beyond the control of the
licensee). * * *
* * * * *
0
4. Add Sec. 478.104 to subpart F to read as follows:
Sec. 478.104 Secure gun storage or safety device.
(a) Any person who applies to be a licensed firearms dealer must
certify on ATF Form 7 (5310.12), Application for Federal Firearms
License, that compatible secure gun storage or safety devices will be
available at any place where firearms are sold under the license to
nonlicensed individuals (subject to the exception that in any case in
which a secure gun storage or safety device is temporarily unavailable
because of theft, casualty, loss, consumer sales, backorders from a
manufacturer, or any other similar reason beyond the control of the
licensee, the dealer shall not be considered in violation of the
requirement to make available such a device).
(b) Any person who applies to be a licensed firearms importer or a
licensed manufacturer and will be engaged in business on the licensed
premises as a dealer in the same type of firearms authorized by the
license to be imported or manufactured must make the certification
required under paragraph (a) of this section.
(c) Each licensee described in this section must have compatible
secure gun storage or safety devices available at any place in which
firearms are sold under the license to persons who are not licensees.
However, such licensee shall
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not be considered to be in violation of this requirement if a secure
gun storage or safety device is temporarily unavailable because of
theft, casualty loss, consumer sales, backorders from a manufacturer,
or any other similar reason beyond the control of the licensee.
Dated: December 23, 2021.
Merrick B. Garland,
Attorney General.
[FR Doc. 2021-28398 Filed 1-3-22; 8:45 am]
BILLING CODE 4410-FY-P
