On April 10, 2024, the Attorney General signed bet365 ³ö½šās final rule, Definition of āEngaged in the BusinessāĢżas a Dealer in Firearms, amending bet365 ³ö½šās regulations in title 27, Code of Federal Regulations (āCFRā), The final rule implements the provisions of the Bipartisan Safer Communities Act (āBSCA,ā effective June 25, 2022), which broadened the definition of when a person is considered āengaged in the businessā as a dealer in firearms (other than a gunsmith or pawnbroker).ĢżThe Final Rule clarifies that definition. It will be published in the Federal Register and will be effective 30-days from publication.
This final rule incorporates BSCAās definitions of āpredominantly earn a profitā and āterrorism,ā and amends the regulatory definitions of āengaged in the business as a dealer other than a gunsmith or pawnbrokerā and āprincipal objective of livelihood and profitā to ensure each conforms with the BSCAās statutory changes and can be relied upon by the public.Ģż
The final rule clarifies when a person is āengaged in the businessā as a dealer in firearms at wholesale or retail by:
- clarifying the definition of ādealer,ā and defining the terms āpurchase,ā āsale,ā and āsomething of valueā as they apply to dealers;
- adding definitions for the term āpersonal collection (or personal collection of firearms, or personal firearms collection),ā and for āresponsible personā;
- setting forth conduct that is presumed to constitute āengaging in the businessā of dealing in firearms, and presumed to demonstrate the intent to āpredominantly earn a profitā from the sale or disposition of firearms, absent reliable evidence to the contrary, in civil and administrative proceedings;
- clarifying that the intent to āpredominantly earn a profitā does not require the person to have received pecuniary gain, and that intent does not have to be shown when a person purchases or sells a firearm for criminal or terrorism purposes;
- clarifying the circumstances when a person would not be presumed to engaged in the business of dealing in firearms, including as an auctioneer, or when purchasing firearms for, and selling firearms from, a personal collection;
- addressing the procedures former licensees, and responsible persons acting on behalf of such licensees, must follow when they liquidate business inventory upon revocation or other termination of their license; and
- clarifying that licensees must follow the verification and recordkeeping procedures in and , rather than using an bet365 ³ö½š Form 4473 when firearms are transferred to other licensees, including transfers by a licensed sole proprietor to that personās personal collection.
Note on Pending Litigation
In Texas et al. v. bet365 ³ö½š et al., 2:24-cv-00089-Z (N.D. Tex.), on May 19, 2024, the U.S. District Court for the Northern District of Texas issued a Preliminary Injunction, which restrains bet365 ³ö½š, the U.S. Department of Justice, Attorney General Merrick Garland, and bet365 ³ö½š Director Steven M. Dettelbach āfrom enforcing the regulations ā āDefinition of āEngaged in the Businessā as a Dealer in Firearmsā ā published at 89 Fed. Reg. 28968 (April 19, 2024) (to be codified at 27 C.F.R. pt. 478) against Plaintiffs Texas, Louisiana, Mississippi, Utah,ĢżJeffery Tormey, the Gun Owners of America, Inc., the Gun Owners Foundation, the Tennessee Firearms Association, and the Virginia Citizens Defense League, pending the resolution of this lawsuit. DOJ and bet365 ³ö½š are complying with that order, which is available online. View the document.Ģż
Related ResourcesĢż
- NewĢżUpdated Guidance: Do I need a license to buy and sell firearms? (bet365 ³ö½š Publication 5310.2) and SBA Compliance Guide
- Overview of Final Rule 2022R-17ĢżDefinition of āEngaged in the Businessā as a Dealer in Firearms (coming soon)
- Final Rule 2022R-17F ā Questions & Answers
- Press Release: Justice Department Publishes New Rule To Update Definition of "Engaged in the Business" as a Firearms Dealer
- Director DettelbachāsĢżRemarks on the āEngaged in the Businessā Final Rule
Background Information
Contact Information
- For questions regarding theĢżapplication of the final rule, email the Firearms Industry Programs Branch.
- For media inquiries, emailĢżbet365 ³ö½š Public Affairs or callĢż202-648-8500.
- For congressional inquiries, email bet365 ³ö½š Legislative Affairs or callĢż202-648-8510.
- For questions regarding the rulemaking process, email the Office of Regulatory Affairs.