Bureau of Alcohol, Tobacco, Firearms and Explosives September 2023 – Federal Register Recent Federal Regulation Documents

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