On April 10, 2024, the Attorney General signed ATF’s final rule, Definition of “Engaged in the Business” as a Dealer in Firearms, amending ATF’s regulations in title 27, Code of Federal Regulations (“CFR”), part 478. The final rule implements the provisions of the Bipartisan Safer Communities Act (“BSCA,” effective June 25, 2022), which broadened the definition of when a person is considered “engaged in the business” as a dealer in firearms (other than a gunsmith or pawnbroker). The 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 BSCA’s definitions of “predominantly earn a profit” and “terrorism,” and amends the regulatory definitions of “engaged in the business as a dealer other than a gunsmith or pawnbroker” and “principal objective of livelihood and profit” to ensure each conforms with the BSCA’s statutory changes and can be relied upon by the public. 

The final rule clarifies when a person is “engaged in the business” as a dealer in firearms at wholesale or retail by:

1. clarifying the definition of “dealer,” and defining the terms “purchase,” “sale,” and “something of value” as they apply to dealers;
2. adding definitions for the term “personal collection (or personal collection of firearms, or personal firearms collection),” and for “responsible person”;
3. setting forth conduct that is presumed to constitute “engaging in the business” of dealing in firearms, and presumed to demonstrate the intent to “predominantly earn a profit” from the sale or disposition of firearms, absent reliable evidence to the contrary, in civil and administrative proceedings;
4. clarifying that the intent to “predominantly earn a profit” 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;
5. 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;
6. 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
7. clarifying that licensees must follow the verification and recordkeeping procedures in 27 CFR 478.94 and Subpart H, rather than using an ATF Form 4473 when firearms are transferred to other licensees, including transfers by a licensed sole proprietor to that person’s personal collection.

There is a very good video on the subject here: https://www.youtube.com/watch?v=GSxU345wu9A

There is another good video that addresses viewers questions about the new law here: https://www.youtube.com/watch?v=C9ibswxgL4k

And for those that want to read the entire law (all 400-pages), you can do that here: https://www.atf.gov/rules-and-regulations/docs/ruling/atf-final-rule-definition-engaged-business-dealer-firearms/download

Folks… as usual, it appears the federal government (ATF) wants to muddy the waters with respect to “clarifying” the law/rule. As with many government regulations it would appear that the intent of the change could be nothing further from clarification. The more open to interpretation the law is, the more they can play with peoples lives with respect to indicting them and putting them through the rigors of arrest and trial, and possibly incarceration.

Gun Owners of America (GOA) has a page on their website that explains the new rule/law (as best as they can), and it also has a form for readers to submit to the ATF their comments on the rule change. Consider sending in your comments. Click the graphic below to take you to the GOA site and page.

UPDATE 5/17/2024: Are you a gun dealer starting next week ?
Check out this video: https://www.youtube.com/watch?v=21iXTSDtqL0

Here is the bad news… The TRO does not apply to all states, AND the TRO is only active through June 2, 2024. Here is a good video that explains the TRO in detail. https://www.youtube.com/watch?v=MmdBoaPPnE0