Posting of Signs and Written Notification to Purchasers of Handguns (97R-2186P)

DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Part 178

[Notice No. 855]

RIN 1512-AB68

Posting of Signs and Written Notification to Purchasers of

Handguns (97R-2186P)

AGENCY: Bureau of Alcohol, Tobacco and Firearms (ATF), Department of

the Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Bureau of Alcohol, Tobacco and Firearms (ATF) is proposing

to amend the firearms regulations to require that signs be posted on

the premises of Federal firearms licensees and that written

notification be issued with each handgun sold advising of the

provisions of the Youth Handgun Safety Act.

DATES: Written comments must be received on or before November 25,

1997.

ADDRESSES: Send written comments to: Chief, Regulations Branch, Bureau

of Alcohol, Tobacco and Firearms, P.O. Box 50221, Washington, DC 20091-

0221; ATTN: Notice No. 855.

FOR FURTHER INFORMATION CONTACT: Marsha D. Baker, Regulations Branch,

Bureau of Alcohol, Tobacco and Firearms, 650 Massachusetts Avenue,

N.W., Washington, DC 20226 (202-927-8210).

SUPPLEMENTARY INFORMATION:

Background

The Youth Handgun Safety Act (YHSA) generally makes it unlawful for

a person to transfer a handgun to anyone under 18 years of age or for

anyone under 18 years of age to knowingly possess a handgun. 18 U.S.C.

922(x). In enacting this provision in 1994, Congress found that

criminal misuse of firearms often starts with the easy availability of

guns to juvenile gang members. In addition, Congress found that

individual States and localities may find it difficult to control this

problem by themselves. Therefore, Congress found it necessary and

appropriate to assist the States in controlling violent crime by

stopping the commerce in handguns with juveniles nationwide and

allowing the possession of handguns by juveniles only when handguns are

possessed and used under certain limited circumstances.

In a memorandum for the Secretary of the Treasury dated June 11,

1997, the President stated that a major problem in our Nation is the

ease with which young people gain illegal access to guns. The President

observed that firearms are now responsible for 12 percent of fatalities

among American children and teenagers. Also, firearms are the fourth

leading cause of accidental deaths among children ages 5 through 14,

and are now the primary method by which young people commit suicide.

Moreover, between 1984 and 1994, the number of juvenile offenders

committing homicides by firearms nearly quadrupled.

To implement the provisions of the YHSA, and to ensure that handgun

purchasers are familiar with its provisions, ATF is proposing

regulations requiring that signs be posted on the premises of Federal

firearms licensees and that written notification be issued by licensees

to nonlicensed handgun purchasers warning as follows:

(1) Federal law prohibits, except in certain limited

circumstances, anyone under 18 years of age from knowingly

possessing a handgun, or any person from transferring a handgun to a

person under 18;

(2) A violation of the prohibition against transferring a

handgun to a person under the age of 18 is, under certain

circumstances, punishable by up to 10 years in prison;

(3) Handguns are a leading contributor to juvenile violence and

fatalities; and

(4) Safely storing and locking handguns away from children can

help ensure compliance with Federal law.

The proposed regulations state that signs provided by ATF must be

posted by Federal firearms licensees on their licensed premises where

prospective handgun purchasers can readily see them. In addition, the

written notification to be issued to each handgun purchaser must be

made available either by providing the purchaser with ATF Publication

5300.(xx) or some other type of written notification that contains the

same language, e.g., a manufacturer's or importer's instruction manual

or brochure provided to the handgun purchaser.

The requirement that written notification be issued upon delivery

of a handgun to a nonlicensee would apply not only to handguns sold by

licensees, but also to the return of handguns to their owners, e.g.,

the return of a handgun after repair and the redemption of a handgun

from pawn. The requirement would also extend to curio or relic handguns

transferred by licensed collectors. However, this requirement would not

apply to a licensee who sells a handgun to a nonlicensee where the

delivery is made through another licensee. In such a case, the licensee

delivering the handgun to the nonlicensee would be responsible for

delivering the notice.

Licensing as a collector of curio or relic firearms does not make

the collector's premises a business premise or open the premises to the

public. Moreover, a licensed collector may lawfully dispose of curios

or relics away from the licensed premises. For these reasons, the

proposed sign posting requirement would not apply to licensed

collectors. Nor would the requirement apply to any other type of

licensee who lawfully disposes of handguns to nonlicensees who do not

appear at the licensee's premises, e.g., a licensee who ships repaired

handguns or replacement handguns to nonlicensees.

Executive Order 12866

It has been determined that this proposed regulation is not a

significant regulatory action as defined by Executive Order 12866.

Accordingly, this proposal is not subject to the analysis required by

this Executive Order.

Regulatory Flexibility Act

It is hereby certified that this proposed regulation will not have

a significant economic impact on a substantial number of small

entities. The proposed regulations are necessary to implement the

President's June 11, 1997, announcement of firearms initiatives

intended to protect the American public from gun violence. The notices

and signs that are proposed in this document would be provided free of

charge by the Government to Federal firearms licensees. Licensees may

choose to provide the required written notice in another format;

however, they always have the option of using the notices provided by

ATF. Moreover, any new requirement relating to the posting of signs and

the distribution of notices would place only a minimal burden on

firearms licensees. Accordingly, a regulatory flexibility analysis is

not required.

Paperwork Reduction Act

The provisions of the Paperwork Reduction Act of 1995, 44 U.S.C.

chapter 35, and its implementing regulations, 5 CFR part 1320, do not

apply to this notice of proposed rulemaking because no new reporting or

recordkeeping requirements are proposed.

Public Participation

ATF requests comments on the notice of proposed rulemaking from all

[[Page 45365]]

interested persons. Comments received on or before the closing date

will be carefully considered.

Comments received after that date will be given the same

consideration if it is practical to do so, but assurance of

consideration cannot be given except as to comments received on or

before the closing date.

ATF will not recognize any material in comments as confidential.

Comments may be disclosed to the public. Any material the commenter

considers to be confidential or inappropriate for disclosure to the

public should not be included in the comment. The name of the person

submitting a comment is not exempt from disclosure.

Any interested person who desires an opportunity to comment orally

at a public hearing should submit his or her request, in writing, to

the Director within the 90-day comment period. The Director, however,

reserves the right to determine, in light of all circumstances, whether

a public hearing is necessary.

Disclosure

Copies of this notice and the written comments received will be

available for public inspection during normal business hours at: ATF

Public Reading Room, Room 6480, 650 Massachusetts Avenue, N.W.,

Washington, DC.

Drafting Information

The author of this document is Marsha D. Baker, Regulations Branch,

Bureau of Alcohol, Tobacco and Firearms.

List of Subjects in 27 CFR Part 178

Administrative practice and procedure, Arms and ammunition,

Authority delegations, Customs duties and inspections, Exports,

Imports, Military personnel, Penalties, Reporting requirements,

Research, Seizures and forfeitures, and Transportation.

Authority and Issuance

27 CFR Part 178--Commerce in Firearms and Ammunition is amended as

follows:

Paragraph 1. The authority citation for 27 CFR Part 178 continues

to read as follows:

Authority: 5 U.S.C. 552(a); 18 U.S.C. 847, 921-930; 44 U.S.C.

3504(h).

Par. 2. Section 178.103 is added to Subpart F to read as follows:

Sec. 178.103 Posting of signs and written notification to purchasers

of handguns.

(a) Each licensed importer, manufacturer, dealer, or collector who

delivers a handgun to a nonlicensee shall provide such nonlicensee with

written notification as described in paragraph (b) of this section.

(b) The written notification required by paragraph (a) of this

section shall state as follows:

(1) Federal law prohibits, except in certain limited circumstances,

anyone under 18 years of age from knowingly possessing a handgun, or

any person from transferring a handgun to a person under 18;

(2) A violation of the prohibition against transferring a handgun

to a person under the age of 18 is, under certain circumstances,

punishable by up to 10 years in prison;

(3) Handguns are a leading contributor to juvenile violence and

fatalities; and

(4) Safely storing and locking handguns away from children can help

ensure compliance with Federal law.

(c) This written notification shall be delivered to the nonlicensee

on ATF I 5300.(xx), or in the alternative, the same written

notification may be delivered to the nonlicensee on another type of

written notification, e.g., a manufacturer's or importer's brochure

accompanying the handgun, a manufacturer's or importer's operational

manual accompanying the handgun, a sales receipt or invoice, or a label

or sticker applied to the handgun package or container delivered to a

nonlicensee. Any written notification delivered to a nonlicensee other

than on ATF I 5300.(xx) shall be legible, clear, and conspicuous and

shall be no smaller than 10-point type.

(d) Except as provided in paragraph (e) of this section, each

licensed importer, manufacturer, or dealer who delivers a handgun to a

nonlicensee shall display at its licensed premises (including temporary

business locations at gun shows) a sign (ATF I 5300.(xx)), containing

the written notification prescribed by paragraph (b) of this section.

The sign shall be displayed where customers can readily see it.

Licensed importers, manufacturers, and dealers will be provided with

such signs by ATF. Replacement signs may be requested from the ATF

Distribution Center, P.O. Box 5950, Springfield, Virginia 22150-5950.

(e) The sign required by paragraph (d) of this section need not be

posted on the premises of any licensed importer, manufacturer, or

dealer whose only dispositions of handguns to nonlicensees are to

nonlicensees who do not appear at the licensed premises and the

dispositions otherwise comply with the provisions of this part.

Signed: August 1, 1997.

John W. Magaw,

Director.

Approved: August 11, 1997.

John P. Simpson,

Deputy Assistant Secretary (Regulatory, Tariff and Trade Enforcement).

[FR Doc. 97-22875 Filed 8-22-97; 4:20 pm]

BILLING CODE 4810-31-P