55014 Federal Register / Vol. 78, No. 174 / Monday, September 9, 2013 / Proposed Rules 

1Provisions of the NFA discussed below refer to 

the ‘‘Secretary’’ rather than the ‘‘Attorney General’’; 

however, the relevant functions of the Secretary of 

the Treasury have been transferred to the 

Department of Justice, under the general authority 

of the Attorney General. 28 U.S.C. 599A(c)(1). For 

ease of reference, we will substitute ‘‘Attorney 

General’’ for ‘‘Secretary’’ when discussing these 

statutes. 

DEPARTMENT OF JUSTICE 

Bureau of Alcohol, Tobacco, Firearms, 

and Explosives 

27 CFR Part 479 

[Docket No. ATF 41P; AG Order No. 3398– 

2013] 

RIN 1140–AA43 

Machine Guns, Destructive Devices 

and Certain Other Firearms; 

Background Checks for Responsible 

Persons of a Corporation, Trust or 

Other Legal Entity With Respect To 

Making or Transferring a Firearm 

AGENCY: Bureau of Alcohol, Tobacco, 

Firearms, and Explosives (ATF), 

Department of Justice. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Department of Justice 

proposes amending Bureau of Alcohol, 

Tobacco, Firearms, and Explosives 

(ATF) regulations that concern the 

making or transferring of a firearm 

under the National Firearms Act (NFA). 

The proposed changes include: Defining 

the term ‘‘responsible person,’’ as used 

in reference to a trust, partnership, 

association, company, or corporation; 

requiring ‘‘responsible persons’’ of such 

legal entities to submit, inter alia, 

photographs and fingerprints, as well as 

a law enforcement certificate, when the 

legal entity files an application to make 

an NFA firearm or is listed as the 

transferee on an application to transfer 

an NFA firearm; modifying the 

information required in a law 

enforcement certificate, so that the 

certificate no longer requires a statement 

from the certifying official that he or she 

has no information indicating that the 

maker or transferee of the NFA firearm 

will use the firearm for other than 

lawful purposes; and adding a new 

section to ATF’s regulations to address 

the possession and transfer of firearms 

registered to a decedent. The new 

section would clarify that the executor, 

administrator, personal representative, 

or other person authorized under state 

law to dispose of property in an estate 

may possess a firearm registered to a 

decedent during the term of probate 

without such possession being treated 

as a ‘‘transfer’’ under the NFA. It also 

would specify that the transfer of the 

firearm to any beneficiary of the estate 

may be made on a tax-exempt basis. 

DATES: Written comments must be 

postmarked and electronic comments 

must be submitted on or before 

December 9, 2013. Commenters should 

be aware that the electronic Federal 

Docket Management System will not 

accept comments after 11:59 p.m. 

Eastern Time on the last day of the 

comment period. 

ADDRESSES: You may submit comments, 

identified by docket number (ATF 41P), 

by any of the following methods— 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: (202) 648–9741. 

• Mail: Brenda Raffath Friend, 

Mailstop 6N–602, 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; 

ATTN: ATF 41P. 

Instructions: All submissions received 

must include the agency name and 

docket number for this rulemaking. All 

comments received will be posted 

without change to the Federal 

eRulemaking portal, http://

www.regulations.gov, including any 

personal information provided. For 

detailed instructions on submitting 

comments and additional information 

on the rulemaking process, see the 

‘‘Public Participation’’ heading of the 

SUPPLEMENTARY INFORMATION section of 

this document. 

FOR FURTHER INFORMATION CONTACT: 

Brenda Raffath Friend, 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 

The Attorney General is responsible 

for enforcing the provisions of the NFA, 

26 U.S.C. Chapter 53.1 The Attorney 

General has delegated that 

responsibility to the Director of ATF, 

subject to the direction of the Attorney 

General and the Deputy Attorney 

General. 28 CFR 0.130(a). Regulations 

implementing the provisions of the NFA 

are set forth in 27 CFR part 479, which 

contains the procedural and substantive 

requirements relating to the 

importation, making, exportation, 

transfer, taxing, identification, 

registration of, and the dealing in, 

machine guns, destructive devices, and 

certain other firearms. 

A. Application To Make a Firearm 

Section 5822 of the NFA, 26 U.S.C. 

5822, provides that no person shall 

make a firearm unless the person has: (I) 

Filed with the Attorney General a 

written application, in duplicate, to 

make and register the firearm; (II) paid 

any tax payable on the making, and 

evidenced such payment by affixing the 

proper stamp to the original application 

form; (III) identified the firearm to be 

made in the application form, in such 

manner as prescribed by regulation; (IV) 

identified themself in the application 

form, in such manner as prescribed by 

regulation, except that, if such person is 

an individual, the identification must 

include the individual’s fingerprints 

and photograph; and (V) obtained the 

approval of the Attorney General to 

make and register the firearm and shows 

such approval on the application form. 

Applications shall be denied if the 

making or possession of the firearm 

would place the person making the 

firearm in violation of law. For purposes 

of title 26, United States Code, the term 

‘‘person’’ means ‘‘an individual, a trust, 

estate, partnership, association, 

company or corporation.’’ 26 U.S.C. 

7701(a)(1). 

Regulations implementing section 

5822 are set forth in 27 CFR part 479, 

subpart E. Section 479.62 provides, in 

pertinent part, that no person may make 

a firearm unless the person has filed 

with the Director a written application 

on ATF Form 1 (5320.1), Application to 

Make and Register a Firearm, in 

duplicate, and has received the approval 

of the Director to make the firearm. 

Approval of the application will 

effectuate registration of the firearm to 

the applicant. The application must 

identify the firearm to be made by serial 

number and other specified markings 

and information. In addition, the 

applicant must be identified on the form 

by name and address and, if other than 

a natural person (e.g., a corporation or 

trust), by the name and address of the 

principal officer or authorized 

representative of the entity, as well as 

the employer identification number of 

the entity. If an individual, the 

identification must also include certain 

information prescribed in § 479.63. 

Section 479.63 states that if the 

applicant is an individual, a photograph 

of the applicant, approximately 2 × 2 

inches and taken within 1 year prior to 

the date of the application, must be 

affixed to the indicated space on each 

copy of the Form 1. The regulation also 

provides that a completed Federal 

Bureau of Investigation (FBI) Form FD– 


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258 (Fingerprint Card), containing the 

fingerprints of the applicant, must be 

submitted in duplicate with the 

application. 

In addition, section 479.63 provides 

that the law enforcement certificate 

located on Form 1 must be completed 

and signed by the local chief of police 

or county sheriff, the head of the state 

police, the state or local district attorney 

or prosecutor, or such other person 

whose certificate may be acceptable to 

the Director. The certifying official must 

state, inter alia, that he or she has no 

information indicating that possession 

of the firearm by the maker would be in 

violation of state or local law or that the 

maker will use the firearm for other than 

lawful purposes. The certifying official 

must have jurisdiction over the area 

within which the maker resides. The 

purpose of this requirement is to ensure 

that the official will have access to 

criminal records concerning the maker, 

and knowledge of the state and local 

laws governing the transfer, receipt, and 

possession of the firearm by the maker. 

Under the current regulations, the 

requirements for fingerprints, 

photographs, and law enforcement 

certificate specified in § 479.63 are not 

applicable to an applicant who is not an 

individual, e.g., a corporation or other 

legal entity. 

Section 479.64 sets forth the 

procedure for approval of an application 

to make a firearm. As specified, the 

Form 1 application must be forwarded, 

in duplicate, by the maker of the firearm 

to the Director, in accordance with the 

instructions on the form. If the 

application is approved, the Director 

will return the original to the maker of 

the firearm and retain the duplicate. 

Upon receipt of the approved 

application, the maker is authorized to 

make the firearm described therein. The 

maker of the firearm may not, under any 

circumstances, make the firearm until 

the application has been forwarded to 

the Director and has been approved and 

returned by the Director with the NFA 

stamp affixed. If the application is 

disapproved, the original Form 1 and 

the remittance submitted by the 

applicant for the purchase of the stamp 

will be returned to the applicant with 

the reason for disapproval stated on the 

form. 

B. Application for Transfer of a Firearm 

Section 5812(a) of the NFA, 26 U.S.C. 

5812(a), provides that a firearm may not 

be transferred unless: (I) The transferor 

of the firearm has filed with the 

Attorney General a written application, 

in duplicate, for the transfer and 

registration of the firearm to the 

transferee, using the prescribed 

application form; (II) any tax payable on 

the transfer is paid as evidenced by the 

proper stamp affixed to the original 

application form; (III) the transferee is 

identified in the application form, in 

such manner as the Attorney General 

may prescribe by regulation, except that, 

if such person is an individual, the 

identification must include the 

individual’s fingerprints and 

photograph; (IV) the transferor of the 

firearm is identified in the application 

form, in such manner as the Attorney 

General may prescribe by regulation; (V) 

the firearm is identified in the 

application form, in such manner as the 

Attorney General may prescribe by 

regulation; and (VI) the application form 

shows that the Attorney General has 

approved the transfer and the 

registration of the firearm to the 

transferee. Applications shall be denied 

if the transfer, receipt, or possession of 

the firearm would place the transferee 

in violation of law. Section 5812(b) 

provides that the transferee may not 

take possession of the firearm unless the 

Attorney General has approved the 

transfer and registration of the firearm to 

the transferee. 

Regulations implementing section 

5812 are set forth in 27 CFR part 479, 

subpart F. In general, § 479.84 provides 

that no firearm may be transferred in the 

United States unless an application, 

ATF Form 4 (5320.4), Application for 

Tax Paid Transfer and Registration of 

Firearm, has been filed in duplicate 

with, and approved by, the Director. 

Form 4 must be filed by the transferor 

and must identify the firearm to be 

transferred by type, serial number, and 

other specified markings and 

information. The application must 

identify the transferor by name and 

address and must include the 

transferor’s Federal firearms license and 

special (occupational) tax stamp, if any. 

If the transferor is other than a natural 

person, the title or status of the person 

executing the application must be 

provided. The application must identify 

the transferee by name and address and, 

if the transferee is a natural person not 

qualified as a manufacturer, importer, or 

dealer under part 479, the person must 

be further identified in the manner 

prescribed in § 479.85. 

Section 479.85 states that if the 

transferee is an individual, such person 

must securely attach to each copy of the 

Form 4, in the space provided on the 

form, a 2 x 2 inch photograph of the 

transferee taken within 1 year prior to 

the date of the application. The 

transferee must also attach to the 

application two properly completed FBI 

Forms FD–258 (Fingerprint Card). In 

addition, a certificate by the local chief 

of police, county sheriff, head of the 

state police, state or local district 

attorney or prosecutor, or such other 

person whose certificate may in a 

particular case be acceptable to the 

Director, must be completed on each 

copy of the Form 4. The certifying 

official must state, inter alia, that he or 

she has no information indicating that 

the receipt or possession of the firearm 

would place the transferee in violation 

of state or local law or that the 

transferee will use the firearm for other 

than lawful purposes. The certifying 

official must have jurisdiction over the 

area within which the transferee resides. 

The purpose of this requirement is to 

ensure that the official will have access 

to criminal records concerning the 

transferee, and knowledge of the state 

and local laws governing the transfer, 

receipt, and possession of the firearm by 

the transferee. 

Under the current regulations, the 

requirements for fingerprints, 

photographs, and law enforcement 

certificate specified in § 479.85 apply 

only to natural persons not qualified as 

a manufacturer, importer, or dealer 

under part 479; they do not apply to 

transferees who are not natural persons, 

e.g., corporations or other legal entities. 

C. Transfer Tax Exemption Available 

Section 5852(e) of the NFA, 26 U.S.C. 

5852(e), provides that an unserviceable 

firearm may be transferred as a curio or 

ornament without payment of the 

transfer tax imposed by section 5811, 

under such requirements as the 

Attorney General may by regulations 

prescribe. 

Section 5853(a) of the NFA, 26 U.S.C. 

5853(a), provides that a firearm may be 

transferred without the payment of the 

transfer tax imposed by section 5811 to 

any State, possession of the United 

States, any political subdivision thereof, 

or any official police organization of 

such a government entity engaged in 

criminal investigations. 

Regulations implementing sections 

5852(e) and 5853(a) are set forth in 27 

CFR 479.90 and 479.91. These sections 

provide, in pertinent part, that the 

exemption from the transfer tax for the 

transfer of an unserviceable firearm as a 

curio or ornament or for a transfer to or 

from certain government entities may be 

obtained by the transferor of the firearm 

by filing with the Director an 

application, ATF Form 5 (5320.5), 

Application for Tax Exempt Transfer 

and Registration of Firearm, in 

duplicate. The application must: (I) 

Show the name and address of the 

transferor and of the transferee; (II) 

identify the Federal firearms license and 

special (occupational) tax stamp, if any, 


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of the transferor and of the transferee; 

(III) show the name and address of the 

manufacturer and the importer of the 

firearm, if known; (IV) show the type, 

model, overall length (if applicable), 

length of barrel, caliber, gauge or size, 

serial number, and other marks of 

identification of the firearm; and (V) 

contain a statement by the transferor 

that the transferor is entitled to the 

exemption because either the transferor 

or the transferee is a governmental 

entity coming within the purview of 

§ 479.90(a) or the firearm is 

unserviceable and is being transferred as 

a curio or ornament. In the case of the 

transfer of a firearm by a governmental 

entity to a transferee who is a natural 

person not qualified as a manufacturer, 

importer, or dealer under part 479, the 

transferee must be further identified in 

the manner prescribed in § 479.85. 

II. Petition 

ATF received a petition for 

rulemaking, dated December 3, 2009, 

filed on behalf of the National Firearms 

Act Trade and Collectors Association 

(NFATCA). The petition requests 

amendments to §§ 479.63 and 479.85, as 

well as to corresponding ATF Forms 1 

and 4. The requested amendments are 

discussed below. 

A. Amendment of §§ 479.63 and 479.85 

As discussed above, the photograph, 

fingerprint card, and chief law 

enforcement officer (CLEO) certificate 

requirements of §§ 479.63 and 479.85 do 

not apply if the applicant or transferee 

is a partnership, company, association, 

trust, or corporation. As such, persons 

who possess, directly or indirectly, the 

power or authority to receive, possess, 

ship, transport, deliver, transfer or 

otherwise dispose of a firearm for, or on 

behalf of the entity are not subject to 

these requirements, and ATF does not 

conduct a background check of those 

individuals. 

The NFATCA expressed concern that 

persons who are prohibited by law from 

possessing or receiving firearms may 

acquire NFA firearms through the 

establishment of a legal entity such as 

a corporation, trust, or partnership. It 

contends that the number of 

applications to acquire NFA firearms via 

a corporation, partnership, trust, or 

other legal entity has increased 

significantly over the years. ATF has 

researched the issue and has determined 

that the number of Forms 1, 4, and 5 

involving legal entities that are not 

Federal firearms licensees increased 

from approximately 840 in 2000 to 

12,600 in 2009 and to 40,700 in 2012. 

There accordingly has been an increase 

in the number of individuals who have 

access to NFA firearms but who have 

not undergone a background check. The 

petitioner expressed concern that an 

NFA firearm could be acquired by a 

prohibited person and used in a violent 

crime. Therefore, for applications for a 

corporation, trust, partnership, or other 

legal entity to make or receive an NFA 

firearm, the petitioner has requested 

amendments to §§ 479.63 and 479.85 to 

require photographs and fingerprint 

cards for persons who are responsible 

for directing the management and 

policies of the entity, so that a 

background check of the individual may 

be conducted. 

The Department of Justice agrees with 

the concerns underlying this proposal, 

and believes that such persons should 

not be excluded from background 

checks and other requirements of the 

regulations that seek to ensure that 

prohibited persons do not gain access to 

NFA firearms. ATF recently 

encountered a situation where an 

application for a transfer of a silencer 

was denied because the transferee was 

determined to be prohibited from 

possessing an NFA firearm. The 

transferor subsequently applied to 

transfer the same silencer to a trust 

whose name contained the same last 

name as the prior transferee. ATF 

reviewed the trust documents and found 

that the prohibited person was a settlor 

of the trust and, thus, would have access 

to the firearm. ATF denied the transfer. 

However, if the trust name had been 

different from that of the prior 

transferee, or if the transferor sought to 

transfer a different firearm, ATF 

employees may not have realized that 

the prior transferee was a settlor of the 

trust and so may have approved the 

transfer. 

B. Certification of Citizenship 

When filing an ATF Form 1, 4, or 5, 

the applicant also must submit ATF 

Form 5330.20, Certification of 

Compliance with 18 U.S.C. 922(g)(5)(B). 

Under section 922(g)(5)(B) of the Gun 

Control Act, 18 U.S.C. 922(g)(5)(B), it 

generally is unlawful for any alien 

admitted under a nonimmigrant visa to 

ship or transport in interstate or foreign 

commerce, or possess in or affecting 

commerce, any firearm or ammunition, 

or to receive any firearm or ammunition 

that has been shipped or transported in 

interstate or foreign commerce. Section 

922(y)(2) provides for certain 

exceptions. 18 U.S.C. 922(y)(2). If an 

alien who was admitted under a 

nonimmigrant visa falls within one of 

the specified exceptions, or has 

obtained a waiver from the Attorney 

General under 18 U.S.C. 922(y)(3), 

appropriate documentation must be 

provided on Form 5330.20. 

The petitioner requests that the 

information required on Form 5330.20 

be incorporated into the requirements of 

27 CFR 479.63 and 479.85 and the 

corresponding forms. According to the 

petitioner, ‘‘[e]limination of the ATF 

Form 5330.20 by adding a citizenship 

statement to the transfer [and making] 

forms would reduce human effort for 

both the public and ATF while reducing 

funds expenditures for printing, 

copying, and handling the form.’’ 

The Department supports the 

elimination of unnecessary forms and is 

committed to reducing the paperwork 

burden for individuals and businesses. 

Accordingly, the Department proposes 

amending 27 CFR 479.62 and 479.84 

and the corresponding forms to 

incorporate information currently 

required in Form 5330.20. 

C. Revision of Instructions on Forms 1, 

4, and 5 

The NFATCA requests that the 

instructions on applications to make or 

transfer a firearm be revised so that they 

are consistent with those on ATF Form 

7 (5310.12), Application for Federal 

Firearms License. The petitioner 

appears to be referring to the instruction 

on Form 7 regarding the submission of 

photographs and fingerprint cards for 

responsible persons, namely, in the case 

of a corporation, partnership, or 

association, any individual possessing, 

directly or indirectly, the power to 

direct or cause the direction of the 

management, policies, and practices of 

the legal entity, insofar as they pertain 

to firearms. The Department agrees that 

proposed changes to regulations will 

require modifications to corresponding 

Forms 1, 4, and 5, including changes to 

the instructions on the forms. 

D. Law Enforcement Certificate 

With respect to an application to 

make a firearm, 27 CFR 479.63 provides 

that if the applicant is an individual, a 

certificate of the local chief of police, 

county sheriff, head of the state police, 

state or local district attorney or 

prosecutor, or such other person whose 

certificate may be acceptable to the 

Director, shall be completed on each 

copy of the Form 1. The certificate must 

state, inter alia, that the certifying 

official has no information indicating 

that possession of the firearm by the 

maker would be in violation of state or 

local law or that the maker will use the 

firearm for other than lawful purposes. 

The law enforcement certificate 

requirement also applies with respect to 

an application to transfer a firearm if the 


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2U.S. Department of Justice, The Attorney 

General’s Report on Criminal History Background 

Checks, at 17 (June 2006), available at http://

www.justice.gov/olp/ag_bgchecks_report.pdf. 

transferee is an individual. 27 CFR 

479.85. 

The petitioner requests that the law 

enforcement certificate requirement be 

eliminated and that ATF ‘‘adopt a CLEO 

[chief law enforcement officer] process 

that will include a full NICS [National 

Instant Criminal Background Check 

System] check for principal officers of a 

trust or corporation receiving such 

firearms for the trust or corporation.’’ 

The petitioner articulates several 

reasons in support of its request. For 

example, it states that the lack of 

cooperation on the part of many CLEOs 

in recent years has forced larger 

numbers of individuals to acquire NFA 

firearms via a trust or corporate entity, 

so as to avoid the need for a law 

enforcement certificate. The petitioner 

also asserts that ATF no longer accepts 

the CLEO certificate as prima facie 

verification of compliance with state 

and local law, and that the certificate 

therefore does not alleviate the burden 

on ATF to verify that receipt or 

possession of a NFA firearm would not 

place the applicant or transferee in 

violation of state or local law. 

Although ATF agrees in principle 

with some of petitioner’s assertions (for 

example, with the fact that ATF 

independently verifies whether receipt 

or possession of a NFA firearm would 

place the applicant or transferee in 

violation of state or local law), ATF does 

not propose to eliminate the CLEO 

certificate requirement at this time. 

Rather, ATF proposes extending the 

CLEO certificate requirement to 

responsible persons of a legal entity. 

ATF also proposes amending the 

language of the certificate to omit the 

requirement that the certifying official 

state that he has no information that the 

applicant or transferee will use the 

firearm for other than lawful purposes. 

Sections 5812 and 5822 of the NFA, 

26 U.S.C. 5812 and 5822, provide that 

applications shall be denied if the 

transfer, making, receipt, or possession 

of the firearm would place the applicant 

or transferee in violation of law. When 

the law enforcement certificate 

requirement was implemented in 1934, 

local law enforcement officials were 

generally better situated than federal 

officials to determine whether the 

transfer, making, receipt, or possession 

of the firearm would place the applicant 

or transferee in violation of state or local 

law. There were not at that time any 

readily accessible national automated 

databases, such as the National Crime 

Information Center (NCIC), that could 

facilitate instantaneous comprehensive 

nationwide criminal background 

checks. Although federal officials would 

consult available criminal history and 

criminal identification records, the 

assessment of whether an applicant or 

transferee would use the firearm for 

other than lawful purposes often was 

based on information in the possession 

of local police. The CLEO certificate 

requirement thus was intended in part 

to ensure that an individual’s authority 

to make, receive, or possess an NFA 

firearm was consistent with state and 

local law, and that the background of 

the individual was assessed by those in 

the best position to evaluate it. 

In light of the NCIC’s establishment in 

1967 and additional technological 

developments, ATF now has direct 

access to a number of criminal history 

databases, a fact that puts it in a stronger 

position than before to assess the 

criminal background of applicants and 

transferees. ATF no longer relies 

exclusively on CLEO certificates to 

assess whether the making, receipt, or 

possession of a firearm by an applicant 

or transferee would violate state or local 

law or whether a particular applicant or 

transferee has a record that would 

warrant denying the application. ATF 

conducts its own background checks of 

individuals applying to make and 

receive NFA firearms. In addition to 

transmitting fingerprints to the FBI for 

a criminal history check, ATF routinely 

queries the following databases and 

indexes: 

• National Crime Information Center 

• TECS (formerly named the Treasury 

Enforcement Communication System) 

• National Law Enforcement 

Telecommunications System 

• Interstate Identification Index 

• National Instant Criminal 

Background Check System 

Although access to these databases 

provides ATF with a fuller picture of 

any individual than was possible in 

1934, the available information is not 

comprehensive in all cases. For a variety 

of reasons, it is still the case that local 

law enforcement may have access to 

more complete records. For example, 

according to a 2006 publication by the 

Department of Justice, not all state 

criminal history records meet the 

standard for inclusion in the Interstate 

Identification Index database (the 

national criminal history record 

depository maintained by the FBI), and 

only 50 percent of arrest records in the 

database have final dispositions.2 To 

ensure that background checks for NFA 

firearms are as complete as possible, 

ATF proposes to retain the CLEO 

certificate requirement for individuals, 

and to expand the requirement to 

responsible persons of a legal entity. 

With respect to the law enforcement 

officer’s statement in the CLEO 

certificate that he or she has no 

information indicating that the 

transferee will use the firearm described 

on the Form 4 for other than lawful 

purposes, the petitioner states that 

‘‘[s]ome CLEOs express a concern of 

perceived liability; that signing an NFA 

transfer application will link them to 

any inappropriate use of the firearm.’’ 

ATF agrees with the petitioner that state 

and local law enforcement officials may 

be concerned with the language of the 

current law enforcement certificate, a 

concern that also applies to Forms 1 and 

5. ATF has received numerous 

statements from chiefs of police, 

sheriffs, and other CLEOs expressing 

discomfort with the portion of the 

certificate that requires them to state 

that they have no information to suggest 

that the individual will use the firearm 

for other than lawful purposes. ATF is 

aware that officials in a number of 

jurisdictions refuse to sign the 

certificate because of concern about 

potential liability for an individual’s 

intentional or accidental misuse. Such 

refusals have resulted in litigation by 

some applicants against ATF. See 

Lomont v. O’Neill, 285 F.3d 9 (D.C. Cir. 

2002); Westfall v. Miller, 77 F.3d 868 

(5th Cir. 1996). While courts have 

upheld the CLEO certificate 

requirement, ATF proposes to amend 

the language of the regulations and the 

corresponding forms to address this 

concern. Sections 479.63 and 479.85 

will no longer require the certificate to 

contain a statement regarding 

information about the use of the firearm 

for other than lawful purposes. ATF 

requests comments on the specific 

language proposed, and whether this 

change will address the concerns raised 

by some CLEOs. 

III. Proposed Rule 

A. Amendment of § 479.11 

The Department proposes amending 

§ 479.11 to add a definition for the term 

‘‘responsible person.’’ The term would 

include specific definitions in the case 

of a trust, partnership, association, 

company (including a Limited Liability 

Company (LLC)), or corporation. 

Depending on the context, the term 

includes any individual, including any 

grantor, trustee, beneficiary, partner, 

member, officer, director, board 

member, owner, shareholder, or 

manager, who possesses, directly or 

indirectly, the power or authority under 

any trust instrument, contract, 

agreement, article, certificate, bylaw, or 


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instrument, or under state law, to 

receive, possess, ship, transport, deliver, 

transfer, or otherwise dispose of a 

firearm for, or on behalf of, the entity. 

To ensure that responsible persons, as 

so defined, are subject to penalties 

under 26 U.S.C. 5871 for committing 

prohibited acts under the NFA (as 

defined in 26 U.S.C. 5861) to the same 

extent as are the legal entities with 

which they are associated, the 

Department also proposes amending the 

definition of ‘‘person’’ in 27 CFR 479.11 

to clarify that a ‘‘person’’ is a 

partnership, company, association, 

trust, or corporation, including each 

responsible person associated with such 

an entity; an estate; or an individual. 

Although the definition of ‘‘person’’ 

in section 479.11 includes the word 

‘‘estate,’’ ATF traditionally has treated 

estates differently from business 

entities, and does not propose defining 

the term ‘‘responsible person’’ to 

include estates. Estates are temporary 

legal entities created to dispose of 

property previously possessed by a 

decedent. The term during which an 

estate exists typically is defined by state 

law in the State in which the decedent 

resided. Conversely, partnerships, 

trusts, associations, companies, and 

corporations are formed for a specific 

purpose and remain in existence until 

action is taken to dissolve them. 

Historically, ATF has treated the 

transfer of an NFA-registered firearm 

held by an estate differently from other 

transfers under the NFA. ATF allows 

the registered firearm to be held by the 

executor, administrator, personal 

representative, or other person 

authorized under state law to dispose of 

property in an estate (executor) without 

such possession being treated as a 

transfer under the NFA. Because the 

executor holds the property temporarily, 

is representing the decedent, and is 

bound by the limits of probate, ATF 

does not register the firearm to the 

executor and allows the transfer from 

the estate of the decedent directly to the 

beneficiaries, with the executor signing 

as the transferor. The disposition of the 

firearm to the beneficiaries of the estate 

is a ‘‘transfer by operation of law,’’ 

because it is an involuntary transfer 

dictated by the terms of a will or by 

intestacy laws in the State where the 

decedent resided. The transfer to the 

beneficiaries of the estate is treated like 

any other transfer of registered firearms, 

except that ATF allows such transfers to 

be made on a tax-exempt basis when an 

ATF Form 5 is submitted and approved 

in accordance with 27 CFR 479.90. The 

transfer of the firearm to persons outside 

the estate requires the executor to file an 

ATF Form 4 and to pay any transfer tax 

in accordance with § 479.84. 

B. Amendment of §§ 479.62 and 479.63 

With respect to an application to 

make a firearm, the Department 

proposes several amendments to 

§§ 479.62 (Application to make) and 

479.63 (Identification of applicant). 

The proposed § 479.62: 

1. Provides that if the applicant is a 

partnership, company, association, 

trust, or corporation, all information on 

the Form 1 application must be 

furnished for each responsible person of 

the applicant; 

2. Specifies that if the applicant is a 

partnership, company, association, 

trust, or corporation, each responsible 

person must comply with the 

identification requirements prescribed 

in § 479.63(b); and 

3. Requires the applicant (including, 

if other than an individual, any 

responsible person), if an alien admitted 

under a nonimmigrant visa, to provide 

applicable documentation 

demonstrating that he or she falls within 

an exception to 18 U.S.C. 922(g)(5)(B) or 

has obtained a waiver of that provision. 

The proposed § 479.63, where the 

applicant is an individual, maintains 

the CLEO certificate but omits the 

requirement for a statement about the 

use of a firearm for other than lawful 

purposes. The certificate must state that 

the official is satisfied that the 

fingerprints and photograph 

accompanying the application are those 

of the applicant and that the official has 

no information indicating that 

possession of the firearm by the maker 

would be in violation of state or local 

law. 

The CLEO’s certification that he or 

she ‘‘is satisfied that the fingerprints 

and photograph accompanying the 

application are those of the applicant,’’ 

is an existing requirement. ATF intends 

to modify Form 1 to include 

certification to that effect by the CLEO 

for individuals (which has always been 

a requirement but was not reflected on 

the current form). As discussed below, 

ATF will include the same certification 

on Form 5320.23 for responsible 

persons of a legal entity. 

The proposed § 479.63, where the 

applicant is a partnership, company, 

association, trust, or corporation: 

1. Provides that the applicant must be 

identified on the Form 1 application by 

the name and exact location of the place 

of business, including the name of the 

county in which the business is located 

or, in the case of a trust, the address 

where the firearm is located. In the case 

of two or more locations, the address 

shown must be the principal place of 

business (or principal office, in the case 

of a corporation) or, in the case of a 

trust, the principal address at which the 

firearm is located; 

2. Requires the applicant to attach to 

the application: 

• Documentation evidencing the 

existence and validity of the entity, 

which includes, without limitation, 

complete and unredacted copies of 

partnership agreements, articles of 

incorporation, corporate registration, 

declarations of trust with any trust 

schedules, attachments, exhibits, and 

enclosures; however, if the entity had an 

application approved as a maker or 

transferee within the preceding 24 

months, and there has been no change 

to the documentation previously 

provided, the entity may provide a 

certification that the information has not 

changed since the prior approval and 

must identify the application for which 

the documentation had been submitted 

by form number, serial number, and 

date approved; 

• A completed ATF Form 5320.23 for 

each responsible person. Form 5320.23 

would require certain identifying 

information for each responsible person, 

including each responsible person’s full 

name, position, social security number 

(optional), home address, date and place 

of birth, and country of citizenship; 

• In accordance with the instructions 

provided on Form 5320.23, a 

photograph of each responsible person 2 

× 2 inches in size, clearly showing a full 

front view of the features of the 

responsible person with head bare, with 

the distance from the top of the head to 

the point of the chin approximately 11⁄4

inches, and which must have been taken 

within 1 year prior to the date of the 

application; 

• Two properly completed FBI Forms 

FD–258 (Fingerprint Card) for each 

responsible person. The fingerprints 

must be clear for accurate classification 

and should be taken by someone 

properly equipped to take them; and 

• In accordance with the instructions 

provided on Form 5320.23, a certificate 

for each responsible person completed 

by the local chief of police, sheriff of the 

county, head of the state police, state or 

local district attorney or prosecutor, or 

such other person whose certificate may 

in a particular case be acceptable to the 

Director. The certificate for each 

responsible person must be completed 

by the CLEO who has jurisdiction in the 

area in which the responsible person 

resides. The certificate must state that 

the official is satisfied that the 

fingerprints and photograph 

accompanying the application are those 

of the responsible person and that the 

certifying official has no information 


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indicating that possession of the firearm 

by the responsible person would be in 

violation of state or local law. 

ATF seeks public comments regarding 

whether it is feasible to ask CLEOs to 

certify that they are satisfied that the 

photographs and fingerprints match 

those of the responsible person. For 

example, some responsible persons may 

bring their fingerprint cards to the CLEO 

office already stamped, and some legal 

entities may have the paperwork, 

fingerprint cards, and photographs for 

each of their responsible persons 

couriered to the CLEO office. In such 

instances, ATF seeks comments on 

whether CLEOs will have enough 

information to certify that they are 

satisfied that the photographs and 

fingerprints match those of the 

responsible persons, or whether changes 

are needed to this proposal. 

C. Amendment of §§ 479.84 and 479.85 

With respect to an application to 

transfer a firearm, the Department 

proposes several amendments to 

§§ 479.84 (Application to transfer) and 

479.85 (Identification of transferee). 

The proposed § 479.84: 

1. Provides that the Form 4 

application, in duplicate, must be filed 

by the transferor. If the transferee is a 

partnership, company, association, 

trust, or corporation, all information on 

the Form 4 application must be 

furnished for each responsible person of 

the transferee; and 

2. Provides that the type of firearm 

being transferred must be noted on the 

Form 4. If the firearm is other than one 

classified as ‘‘any other weapon,’’ the 

applicant must submit a remittance in 

the amount of $200 with the application 

in accordance with the instructions on 

the form. If the firearm is classified as 

‘‘any other weapon,’’ the applicant must 

submit a remittance in the amount of $5. 

The proposed § 479.85, where the 

transferee is an individual, maintains 

the certificate but omits the requirement 

for a statement about the use of a 

firearm for other than lawful purposes. 

The certificate must state that the 

official is satisfied that the fingerprints 

and photograph accompanying the 

application are those of the applicant 

and that the certifying official has no 

information indicating that receipt or 

possession of the firearm by the 

transferee would be in violation of state 

or local law. 

The CLEO’s certification that he or 

she ‘‘is satisfied that the fingerprints 

and photograph accompanying the 

application are those of the applicant,’’ 

is an existing requirement. ATF intends 

to modify Forms 4 and 5 to include 

certification to that effect by the CLEO 

for individuals (which has always been 

a requirement but was not reflected on 

the current forms). As discussed below, 

ATF will include the same certification 

on Form 5320.23 for responsible 

persons of a legal entity. 

The proposed § 479.85, where the 

transferee is a partnership, company, 

association, trust, or corporation: 

1. Provides that the transferee must be 

identified on the Form 4 application by 

the name and exact location of the place 

of business, including the name of the 

county in which the business is located 

or, in the case of a trust, the address 

where the firearm is to be located. In the 

case of two or more locations, the 

address shown must be the principal 

place of business (or principal office, in 

the case of a corporation) or, in the case 

of a trust, the principal address at which 

the firearm is to be located; 

2. Requires the transferee to attach to 

the application: 

• Documentation evidencing the 

existence and validity of the entity, 

which includes, without limitation, 

complete and unredacted copies of 

partnership agreements, articles of 

incorporation, corporate registration, 

declarations of trust with any trust 

schedules, attachments, exhibits, and 

enclosures; however, if the entity has 

had an application approved as a maker 

or transferee within the preceding 24 

months, and there has been no change 

to the documentation previously 

provided, including the responsible 

person information, the entity may 

provide a certification that the 

information has not changed since the 

prior approval and must identify the 

application for which the 

documentation had been submitted by 

form number, serial number, and date 

approved; 

• A completed ATF Form 5320.23 for 

each responsible person. Form 5320.23 

would require certain identifying 

information, including the responsible 

person’s full name, position, social 

security number (optional), home 

address, date and place of birth, and 

country of citizenship; 

• In accordance with the instructions 

provided on Form 5320.23, a 

photograph of each responsible person 2 

x 2 inches in size, clearly showing a full 

front view of the features of the 

responsible person with head bare, with 

the distance from the top of the head to 

the point of the chin approximately 11⁄4

inches, and which must have been taken 

within 1 year prior to the date of the 

application; 

• Two properly completed FBI Forms 

FD–258 (Fingerprint Card) for each 

responsible person. The fingerprints 

must be clear for accurate classification 

and should be taken by someone 

properly equipped to take them; and 

• In accordance with the instructions 

provided on Form 5320.23, a certificate 

for each responsible person completed 

by the local chief of police, sheriff of the 

county, head of the state police, state or 

local district attorney or prosecutor, or 

such other person whose certificate may 

in a particular case be acceptable to the 

Director. The certificate for each 

responsible person must be completed 

by the CLEO who has jurisdiction in the 

area in which the responsible person 

resides. The certificate must state that 

the official is satisfied that the 

fingerprints and photograph 

accompanying the application are those 

of the responsible person and that the 

certifying official has no information 

indicating that receipt or possession of 

the firearm by the responsible person 

would be in violation of state or local 

law. 

ATF seeks public comments regarding 

whether it is feasible to ask CLEOs to 

certify that they are satisfied that the 

photographs and fingerprints match 

those of the responsible person. For 

example, some responsible persons may 

bring their fingerprint cards to the CLEO 

office already stamped, and some legal 

entities may have the paperwork, 

fingerprint cards, and photographs for 

each of their responsible persons 

couriered to the CLEO office. In such 

instances, ATF seeks comments on 

whether CLEOs will have enough 

information to certify that they are 

satisfied that the photographs and 

fingerprints match those of the 

responsible persons, or whether changes 

are needed to this proposal. 

D. Amendment of § 479.90 

Section 5853(a) of the NFA, 26 U.S.C. 

5853(a), provides that a firearm may be 

transferred to any State, possession of 

the United States, any political 

subdivision thereof, or any official 

police organization of such a 

government entity engaged in criminal 

investigations, without the payment of 

the transfer tax. Regulations 

implementing section 5853(a) are set 

forth in 27 CFR 479.90. That section 

provides, in pertinent part, that the 

transfer tax exemption may be obtained 

by the transferor of the firearm by filing 

with the Director an application on ATF 

Form 5 (5320.5), Application for Tax 

Exempt Transfer and Registration of 

Firearm, in duplicate. The application 

must provide certain information, 

including the name and address of the 

transferor and the transferee. In the case 

of a transfer of a firearm by a 

governmental entity to a transferee who 

is a natural person not qualified as a 


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55020 Federal Register / Vol. 78, No. 174 / Monday, September 9, 2013 / Proposed Rules 

manufacturer, importer, or dealer under 

part 479, the transferee must be further 

identified in the manner prescribed in 

§ 479.85. 

The Department proposes amending 

§ 479.90(b) to remove the word 

‘‘natural.’’ Removing the word ‘‘natural’’ 

leaves the term ‘‘person,’’ which would 

be defined in § 479.11 to include a 

partnership, company, association, 

trust, or corporation (including each 

responsible person of such entity), an 

estate, or an individual. This change 

would mean that in the case of a transfer 

of a firearm by a governmental entity to 

a transferee that is a partnership, 

company, association, trust, or 

corporation, and that is not qualified as 

a manufacturer, importer, or dealer 

under part 479, each responsible person 

of the transferee would be subject to the 

requirements prescribed in § 479.85. 

E. Addition of § 479.90a, Estates 

The Department proposes adding a 

new section to part 479 to address the 

possession and transfer of firearms 

registered to a decedent. The new 

section would specify that the executor, 

administrator, personal representative, 

or other person authorized under state 

law to dispose of property in an estate 

(collectively ‘‘executor’’) may lawfully 

possess the decedent’s NFA firearm 

during the term of probate without such 

possession being treated as a transfer 

from the decedent. The new section also 

would clarify that the executor may 

transfer firearms held by the estate on a 

tax-free basis when the transfer is to a 

beneficiary of the estate; when the 

transfer is to persons outside the estate, 

the executor must pay the appropriate 

transfer tax. 

F. Transfer of Unserviceable Firearm 

Section 479.91 provides that an 

unserviceable firearm, defined in 

§ 479.11 as a firearm which is incapable 

of discharging a shot by means of an 

explosive and incapable of being readily 

restored to a firing condition, may be 

transferred as a curio or ornament 

without payment of the transfer tax. 

This section also provides that the 

procedures set forth in § 479.90 must be 

followed for the transfer of an 

unserviceable firearm, with the 

exception that a statement must be 

entered on the application that the 

transferor is entitled to the exemption 

because the firearm is unserviceable and 

is being transferred as a curio or 

ornament. This section will remain 

unchanged. It references the procedures 

in § 479.90, which itself references 

§ 479.85, which would be amended by 

the proposals herein. 

G. Miscellaneous 

ATF recognizes that the composition 

of the responsible persons associated 

with a trust, partnership, association, 

company, or corporation may change, 

and is considering a requirement that 

new responsible persons submit Form 

5320.23 within 30 days of the change. 

ATF seeks comments on this option and 

solicits recommendations for other 

approaches. 

IV. Statutory and Executive Order 

Review 

A. Executive Order 12866 and 13563— 

Regulatory Review 

This proposed rule has been drafted 

in accordance with section 1(b) of 

Executive Order 12866 (‘‘Regulatory 

Planning and Review’’) and with section 

1(b) of Executive Order 13563 

(‘‘Improving Regulation and Regulatory 

Review’’). The Department of Justice has 

determined that this proposed rule is a 

significant regulatory action under 

section 3(f) of Executive Order 12866, 

and accordingly this proposed rule has 

been reviewed by the Office of 

Management and Budget (OMB). 

The proposed rule complies with the 

public participation requirements of 

Executive Order 13563. As this 

rulemaking is in response to a petition 

for rulemaking, ATF seeks the views of 

those who are likely to be affected by 

the proposed rule (including those who 

are likely to benefit and those who are 

potentially subject to the proposed rule) 

prior to issuing the final rule. 

This proposed rule will not have an 

annual effect on the economy of $100 

million or more; nor will it adversely 

affect in a material way the economy, a 

sector of the economy, productivity, 

competition, jobs, the environment, 

public health or safety, or state, local, or 

tribal governments or communities. 

Accordingly, this proposed rule is not 

an economically significant rulemaking 

as defined by Executive Order 12866. 

The estimated costs and benefits of the 

proposed rule are discussed below. 

1. Summary of Costs and Benefits 

This proposed rule would require 

certain legal entities (trusts, 

partnerships, companies, associations, 

and corporations) applying to make or 

receive an NFA firearm to submit 

information for each of its responsible 

persons to ATF in order for ATF to 

ensure such persons are not prohibited 

from possessing NFA firearms. ATF 

estimates a total cost of $14.9 million 

annually for: (1) Legal entities to gather, 

procure, and submit such information to 

ATF; (2) ATF to process the information 

and conduct a background check on 

responsible persons; and (3) local and 

state agencies possibly to review the 

information provided on Form 5320.23 

which is submitted as part of a Form 1, 

4, or 5 application, conduct their own 

background checks, and determine 

whether to complete the certificate. 

These proposed provisions will have 

public safety benefits in that they will 

enable ATF to ensure that the 

responsible persons within legal entities 

that request to make or receive NFA 

firearms are not prohibited from 

possessing such firearms under federal, 

state, or local law. 

2. Costs and Benefits of Ensuring 

Responsible Persons Within Legal 

Entities are Not Prohibited From 

Possessing NFA Firearms 

ATF estimated the cost of the 

proposed provisions to ensure 

responsible persons within legal entities 

are not prohibited from possessing NFA 

firearms by: (1) Estimating the time and 

other resources that would be expended 

by legal entities to complete paperwork, 

obtain photographs and fingerprints, 

receive CLEO certificates, and send this 

information to ATF; (2) estimating the 

time and other resources that would be 

expended by ATF to process and review 

the materials provided by the legal 

entities and to conduct background 

checks of responsible persons; and (3) 

estimating costs for state and local 

agencies in the event they review the 

information provided, conduct their 

own background checks; and determine 

whether to complete the CLEO 

certificate. 

ATF estimated the cost of the time for 

legal entities to complete these tasks 

using employee compensation data for 

September 2012 as determined by the 

U.S. Department of Labor, Bureau of 

Labor Statistics (BLS). See http://

www.bls.gov/news.release/archives/

ecec_12112012.pdf. The BLS 

determined the hourly compensation 

(which includes wages, salaries, and 

benefits) for civilian workers to be 

$30.80. In addition, ATF estimates that 

each legal entity has an average of two 

responsible persons, an estimate that is 

based on ATF’s review of 39 recent 

randomly selected paper (hardcopy) 

applications for corporations, LLCs, and 

trusts. ATF welcomes comments from 

the industry and other members of the 

public regarding the accuracy of its 

assumptions and estimates. 

In calendar year (CY) 2012, ATF 

received 84,435 applications that were 

either ATF Forms 1, 4, or 5. Of these, 

40,700 applications were for unlicensed 

legal entities (e.g., corporations, 

companies, and trusts) to make or 

receive an NFA firearm; 29,448 were for 


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individuals to make or receive an NFA 

firearm; and 14,287 were for 

government agencies or qualified 

Federal firearms licensees (Gov/FFLs) to 

make or receive an NFA firearm. The 

numbers of applications, by Form and 

submitting individual or entity, are set 

forth below. 

TABLE A—NUMBERS OF APPLICATIONS

CY 2012 Legal entity Individual Gov/FFL Total 

Form 1 ............................................................................................................. 5328 3758 576 9662 

Form 4 ............................................................................................................. 35237 25102 4746 65085 

Form 5 ............................................................................................................. 135 588 8965 9688 

Total .......................................................................................................... 40700 29448 14287 84435 

Under the proposed rule, a legal 

entity would be required to complete 

the following steps in addition to 

completing the applicable Form 1, 4, or 

5 before it is permitted to make or 

receive an NFA firearm: 

1. Complete and submit proposed 

Form 5320.23 for each responsible 

person; 

2. Submit fingerprints, photographs, 

and CLEO certificate for each 

responsible person; and 

3. Submit a copy of the 

documentation that establishes the legal 

existence of the legal entity. 

In addition, under the proposed rule, 

information required on the existing 

ATF Form 5330.20 would be 

incorporated into the ATF Forms 1, 4, 

and 5. 

Cost to Legal Entities 

Cost of Completion of a Responsible 

Person Form 

The proposed rule would require legal 

entities to complete and submit to ATF 

a new form (Form 5320.23), 

photographs, fingerprint cards, and a 

CLEO certificate for each responsible 

person before the legal entity is 

permitted to make or receive an NFA 

firearm. The information required on 

Form 5320.23 would include the 

responsible person’s name, position, 

home address, social security number 

(optional), date and place of birth, and 

country of citizenship. The identifying 

information for each responsible person 

is necessary in order for ATF, and 

possibly state and local law 

enforcement, to conduct a background 

check on each individual to ensure the 

individual is not prohibited from 

possessing an NFA firearm under 

federal, state, or local law. 

ATF estimates the time for each 

responsible person to complete Form 

5320.23 to be 10 minutes. Based on an 

estimate of 2 responsible persons per 

legal entity and 40,700 entities, the 

estimated annual cost of proposed Form 

5320.23 is $417,854 (10 minutes at 

$30.80 per hour × 40,700 × 2). 

Cost of Photographs 

ATF estimates that: 

• The cost of the photographs is $8.00 

(cost based on the average of the costs 

determined for seven large retailers); 

and 

• The time needed to procure 

photographs is 50 minutes. 

Currently, only individuals must 

obtain and submit photographs to ATF. 

Based on an estimate of 29,448 

individuals, the current estimated cost 

is $991,416. (Cost of Photographs = 

$8.00 × 29,448 = $235,584; Cost to 

Procure Photographs = 50 minutes at 

$30.80 per hour × 29,448 = $755,832). 

Under the proposed rule, costs for 

individuals would remain the same, but 

legal entities would incur new costs. 

Each responsible person of a legal entity 

would be required to obtain and submit 

photographs. Based on an estimate of 2 

responsible persons per entity and 

40,700 entities, the estimated cost for 

legal entities to obtain and submit 

photographs is $2,740,467. (Cost of 

Photographs = $8.00 × 40,700 × 2 = 

$651,200; Cost to Procure Photographs = 

50 minutes at $30.80 per hour × 40,700 

× 2 = $2,089,267). 

Cost of Fingerprints 

ATF has reviewed various 

fingerprinting services. At the present 

time, ATF is only able to accept 

fingerprints on hard copy fingerprint 

cards. Thus, the cost estimates are based 

on the submission of two fingerprint 

hard copy cards for each responsible 

person. 

• The estimated cost of the 

fingerprints is $24.00 (cost based on the 

average of the costs determined for 

seven fingerprint services); and 

• The estimated time needed to 

procure the fingerprints is 60 minutes. 

Currently, only individuals must 

obtain and submit fingerprints. Based 

on an estimate of 29,448 individuals, 

the current estimated cost is $1,613,750. 

(Cost of Fingerprints = $24.00 × 29,448 

= $706,752; Cost to Procure Fingerprints 

= 60 minutes at $30.80 per hour × 

29,448 = $906,998). Under the proposed 

rule, costs for individuals would remain 

the same, but legal entities would incur 

new costs. Each responsible person of a 

legal entity would be required to obtain 

and submit fingerprints to ATF. Based 

on an estimate of 2 responsible persons 

per entity and 40,700 entities, the 

estimated cost for legal entities to obtain 

and submit fingerprints is $4,460,720. 

(Cost of Fingerprints = $24.00 × 40,700 

× 2 = $1,953,600; Cost to Procure 

Fingerprints = 60 minutes at $30.80 per 

hour × 40,700 × 2 = $2,507,120). 

Costs for a Legal Entity To Obtain CLEO 

Certificate 

ATF estimates that the time needed 

for a responsible person to procure the 

CLEO certificate is 100 minutes (70 

minutes travel time and 30 minutes 

review time with the CLEO). Based on 

an estimate of 2 responsible persons per 

legal entity and 40,700 entities, the 

estimated cost for legal entities to obtain 

CLEO certificate is $4,178,533 (100 

minutes at $30.80 per hour × 40,700 × 

2). 

Cost of Documents To Establish 

Existence of Legal Entity 

A legal entity that is applying to make 

or receive an NFA firearm must provide 

to ATF documentation evidencing the 

existence and validity of the entity— 

e.g., copies of partnership agreements, 

articles of incorporation, corporate 

registration, declarations of trust with 

any trust schedules, attachments, 

exhibits, and enclosures. Currently, 

legal entities may submit this 

documentation with their application 

package, although they are not required 

to do so. Therefore, ATF will treat the 

costs for documentation as new costs. 

ATF accepts, and will continue to 

accept, photocopies of the documents 

without notarization. ATF based the 

cost estimate by determining the average 

number of pages in the corporate or 

trust documents for 50 recent randomly 

selected paper (hardcopy) submissions, 

which was 15 pages. 

ATF estimates that: 


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55022 Federal Register / Vol. 78, No. 174 / Monday, September 9, 2013 / Proposed Rules 

• The cost of the copied 

documentation is $1.50 ($.10 per page at 

15 pages); and 

• The time needed to copy 

attachments is 5 minutes. 

Assuming 40,700 entities would 

provide ATF this documentation each 

year, the estimated annual cost to 

submit the documentation is $165,513. 

(Cost of documentation = $1.50 × 40,700 

= $61,050; Cost to copy attachments = 

5 minutes at $30.80 per hours × 40,700 

= $104,463). This cost is not dependent 

on the number of responsible persons 

associated with a legal entity. ATF notes 

that the estimated cost is likely to be 

lower if the entity already has filed the 

documents with ATF as part of a recent 

making or transfer application and the 

information previously provided has not 

changed. Under these circumstances, 

the entity can certify to ATF that the 

documentation is on file and is 

unchanged. 

Cost of Completing and Mailing Form 1, 

4, or 5 

Currently, both individuals and legal 

entities must complete and mail Form 1, 

4, or 5. This proposed rule should not 

change the costs associated with this 

process. Even if there are multiple 

responsible persons associated with a 

legal entity, the legal entity still would 

be completing and mailing one Form 1, 

4, or 5. 

The estimated costs to legal entities 

that are discussed above are 

summarized in Tables B(1) and B(2). 

The total estimated new cost of the 

proposals for legal entities to provide to 

ATF identification information for each 

of its responsible persons is $11,963,087 

annually. 

TABLE B(1)—COST ESTIMATES OF THE TIME TO COMPLY WITH THE PROPOSED RULE’S REQUIREMENTS

Process Estimated time 

(minutes) 

Number of 

entities 

2 Responsible 

persons 

Completion of F 5320.23 ............................................................................................................. 10 40,700 $417,854 

Procure Photographs ................................................................................................................... 50 40,700 2,089,267 

Procure Fingerprints .................................................................................................................... 60 40,700 2,507,120 

Obtain Certificate ......................................................................................................................... 100 40,700 4,178,533 

Copy Attachments ....................................................................................................................... 5 40,700 104,463 

Total ...................................................................................................................................... ........................ ........................ 9,297,237 

TABLE B(2)—COST ESTIMATES OF PROCURING PHOTOGRAPHS, FINGERPRINTS, AND DOCUMENTATION

Process-related item Estimated cost Number of 

entities 

2 Responsible 

persons 

Photographs ................................................................................................................................. $8.00 40,700 $651,200 

Fingerprints .................................................................................................................................. 24.00 40,700 1,953,600 

Documentation of Legal Entity .................................................................................................... 1.50 40,700 61,050 

Total ...................................................................................................................................... ........................ ........................ 2,665,850 

Cost to ATF 

ATF incurs costs to process forms, 

fingerprint cards, photographs, and to 

conduct and review background checks. 

Currently, ATF incurs these costs for the 

29,448 applications for individuals to 

make or receive NFA firearms. Under 

the proposed rule, ATF would incur 

these costs for applications for legal 

entities to make or receive NFA 

firearms. ATF estimates that: 

• ATF’s cost for FBI to process a set 

of fingerprints is $14.50. (The cost is 

based on FBI’s current fee, which is set 

by statute on a cost recovery basis.) 

• The estimated cost for an examiner 

at ATF’s NFA Branch to conduct and 

review the results of a background 

check is $7.70 (15 minutes at $30.80 per 

hour); and 

• The estimated cost to print the new 

5320.23 forms is $.01 per form. 

Based on an estimate of 2 responsible 

persons per legal entity and 40,700 

entities, the estimated cost for ATF to 

process forms, fingerprint cards, 

photographs, and to conduct and review 

background checks for applications for 

legal entities to make or receive firearms 

is $1,807,894 annually. (Cost for 

processing fingerprints = $14.50 × 

40,700 × 2 = $1,180,300; Cost for 

background checks = $7.70 × 40,700 × 

2 = $626,780; Cost to print forms = $.01 

× 40,700 × 2 = $814). 

TABLE C—COSTS TO ATF UNDER PROPOSED RULE

Process Estimated cost or time Number of 

entities 

2 Responsible 

persons 

ATF’s costs for Processing Fingerprints ...................... $14.50 ........................................................................... 40,700 $1,180,300 

Time Needed to Conduct and Review Background 

Check by ATF.

15 minutes .................................................................... 40,700 626,780 

Cost of 5320.23 form .................................................... .01 ................................................................................. 40,700 814 

Total ....................................................................... ....................................................................................... ........................ 1,807,894 


tkelley on DSK3SPTVN1PROD with PROPOSALS
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Cost to State and Local Agencies 

The proposed requirement for each 

responsible person of a legal entity to 

obtain a CLEO certificate may increase 

the cost to state and local agencies as 

they may decide to review the 

information provided, conduct their 

own background checks, and determine 

whether to complete the certificate. 

Based on an estimate of 2 responsible 

persons per legal entity and 40,700 

entities, the estimated cost for state and 

local agencies to determine whether to 

sign the CLEO certificate is $1,253,560 

(30 minutes of review time at $30.80 per 

hour × 40,700 × 2). 

TABLE D—COSTS TO STATE AND LOCAL AGENCIES UNDER PROPOSED RULE

Process Estimated time Number of 

entities 

2 Responsible 

persons 

Agency Costs to Review/Sign Certificate ..................... 30 minutes .................................................................... 40,700 $1,263,560 

Total ....................................................................... ....................................................................................... ........................ 1,263,560 

Benefits of Background Checks for 

Responsible Persons 

Existing regulations do not require the 

identification of responsible persons of 

a legal entity. Therefore, ATF lacks the 

necessary information to perform a 

background check on a person who 

meets this proposed rule’s definition of 

‘‘responsible person’’ to determine if 

that person is prohibited from 

possessing an NFA firearm. This 

proposed rule, if finalized, would 

provide important public safety and 

security benefits by enabling ATF to 

identify and perform background checks 

on such persons. 

For example, there may be a number 

of responsible persons associated with a 

corporation, LLC, or trust. As noted 

above, based on a recent review of paper 

(hardcopy) applications for 

corporations, LLCs, and trusts, ATF 

estimates that there are 2 responsible 

persons associated with such legal 

entities. One or more of these persons 

could be a prohibited person, e.g., a 

convicted felon. Currently, when an 

NFA transfer application is approved, a 

corporate officer or trustee arranges for 

the receipt of the firearm. If the seller is 

a Federal firearms licensee, the officer 

or trustee must complete ATF Form 

4473 (5300.9), Firearms Transaction 

Record. On the Form 4473, the officer or 

trustee must answer questions which 

determine if the officer or trustee is a 

prohibited person. If one of the officers 

or trustees is prohibited, then one of the 

other officers or trustees may pick up 

the firearm and complete the Form 

4473. If the seller is not a licensee, then 

no form is completed. Once the firearm 

is picked up by the officer or trustee, 

then it becomes corporate or trust 

property and can be possessed by any of 

the officers or trustees. In Texas, ATF 

became aware of a situation in which 

the member of an LLC was an illegal 

alien, living in the United States under 

an assumed name, and had a felony 

warrant outstanding. At that time, the 

LLC had 19 firearms registered to it and 

ATF lacked the necessary information to 

conduct any background checks to 

determine whether the member was a 

prohibited person. In Tennessee, as a 

result of information provided by a 

Federal firearms licensee, ATF became 

aware of applications submitted to 

transfer two NFA firearms to a trust in 

which one of the trustees was a 

convicted felon. If there had been no 

referral, ATF would not have known of 

the need to conduct any background 

checks for the trust members to 

determine if any were prohibited 

persons. As a result, under current 

regulations, prohibited persons can 

circumvent the statutory prohibitions 

and receive and possess firearms. This 

proposed rule will make the 

requirements for background checks the 

same for certain legal entities as they are 

now for individuals. 

3. Consolidation of Forms 

The incorporation of the information 

required on ATF Form 5330.20 into the 

existing Forms 1, 4, and 5 will reduce 

the burden upon the applicant or 

transferee by eliminating an additional 

form to be completed and filed. The 

current estimated time to complete the 

form is 3 minutes. Because the 

information requested on the forms is 

the same, any savings result from the 

applicant not having to attach a separate 

form. ATF estimates the elimination of 

the form will reduce the industry costs 

by $108,028 (70,148 transactions for 

both individuals and legal entities × 3 

minutes per form saved × $30.80 per 

hour) and ATF’s printing costs by $701 

(70,148 forms × .01 cents per form) for 

a total reduction in costs of $108,729. 

4. Number of Legal Entities 

ATF cannot estimate with reasonable 

precision what effect this proposed rule 

will have on resources used for creating 

and maintaining these entities. ATF 

seeks information from the public to 

measure this effect, including how 

many fewer legal entities there may be 

(if any), and how much it costs on 

average to create and maintain such 

entities. 

B. Executive Order 13132 

This proposed 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. 

While there would be an increase in 

the paperwork filed with ATF and an 

increase in the resources ATF devotes to 

processing that paperwork, as well as a 

potential increase in the resources state 

and local agencies may devote to 

processing CLEO certificates for 

responsible persons of a legal entity, any 

impact on state and local resources 

would be voluntary and expected to be 

minimal, and must be balanced against 

the benefits of ATF being able to 

identify and conduct background checks 

on such persons. Therefore, in 

accordance with section 6 of Executive 

Order 13132 (‘‘Federalism’’), the 

Attorney General has determined that 

this proposed regulation does not have 

sufficient federalism implications to 

warrant the preparation of a federalism 

summary impact statement. 

C. Executive Order 12988 

This proposed 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 

The Regulatory Flexibility Act 

requires an agency to conduct a 

regulatory flexibility analysis of any rule 

subject to notice and comment 

rulemaking requirements unless the 

agency certifies that the rule will not 

have a significant economic impact on 

a substantial number of small entities. 5 

U.S.C. 605(b). Small entities include 

small businesses, small not-for-profit 

enterprises, and small governmental 

jurisdictions. 5 U.S.C. 601. The Attorney 


tkelley on DSK3SPTVN1PROD with PROPOSALS
55024 Federal Register / Vol. 78, No. 174 / Monday, September 9, 2013 / Proposed Rules 

General has reviewed this proposed rule 

and, by approving it, certifies that this 

proposed rule will not have a significant 

economic impact on a substantial 

number of small entities. 

This proposed rule will primarily 

affect legal entities that are seeking to 

make or acquire NFA firearms and are 

not making or acquiring them as a 

qualified Federal firearms licensee. ATF 

believes that the increased cost of 

implementing the proposed regulations 

will not be significant on the entities. 

The estimated annual cost of 

implementing the proposed regulations 

is $11,963,087 for identification costs 

for legal entities. Accordingly, the 

estimated cost increase per entity is 

$293.93 (Cost of increase ÷ 40,700 

entities). 

E. Small Business Regulatory 

Enforcement Fairness Act of 1996 

This proposed rule is not a major rule 

as defined by section 251 of the Small 

Business Regulatory Enforcement 

Fairness Act of 1996. 5 U.S.C. 804. This 

proposed rule will not result in an 

annual effect on the economy of $100 

million or more; a major increase in 

costs or prices; or significant adverse 

effects 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. 

F. Unfunded Mandates Reform Act of 

1995 

This proposed rule will not result in 

the expenditure by state, local, and 

tribal governments, in the aggregate, 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 

deemed necessary under the provisions 

of the Unfunded Mandates Reform Act 

of 1995. 

G. Paperwork Reduction Act 

Under the Paperwork Reduction Act, 

a federal agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless it displays a valid control 

number assigned by OMB. This 

proposed rule would revise several 

existing information collections and 

create a new information collection. The 

existing information collections that 

would be revised are in 27 CFR 479.62, 

479.63, 479.84, 479.85, 479.90, 479.90a, 

and 479.91, which are associated with 

ATF Forms 1, 4, and 5. Forms 1, 4, and 

5 have been approved by the OMB 

under control numbers 1140–0011, 

1140–0014, and 1140–0015, 

respectively. The new information 

collection that would be created is 

associated with ATF Form 5320.23. 

Form 5320.23 would require certain 

identifying information for each 

responsible person within a legal entity 

requesting to make or receive an NFA 

firearm, including their full name, 

position, social security number 

(optional), home address, date and place 

of birth, and country of citizenship. 

Form 5320.23 also would require a 

proper photograph of each responsible 

person; two properly completed FBI 

Forms FD–258 (Fingerprint Card) for 

each responsible person; and a law 

enforcement certificate. 

ATF is submitting a request to revise 

currently approved OMB control 

numbers 1140–0011, 1140–0014, and 

1140–0015, and to obtain a new OMB 

control number for ATF Form 5320.23 

in accordance with 5 CFR 1320.11. ATF 

requests public comments on all aspects 

of these proposed collections, including 

to: 

• Evaluate whether the proposed 

collection of information is necessary 

for the proper performance of the 

functions of the agency, including 

whether the information will have 

practical utility; 

• evaluate the accuracy of the 

agency’s estimate of the burden of the 

proposed collection of information, 

including the validity of the 

methodology and assumptions used; 

• enhance the quality, utility, and 

clarity of the information to be 

collected; and 

• minimize the burden of the 

collection of information on those who 

are to respond, including through the 

use of appropriate automated, 

electronic, mechanical, or other 

technological collection techniques or 

other forms of information technology, 

e.g., permitting electronic submission of 

responses. 

The estimated total annual burden 

hours and related information (number 

of respondents, frequency of responses, 

costs, etc.) for the proposed revisions to 

Forms 1, 4, and 5, as well as the new 

Form 5320.23, appear below. 

For a recent submission of an 

information collection request to the 

OMB regarding other changes to these 

forms, ATF performed an analysis of the 

time it takes to fulfill the requirements 

of each form. ATF found that the time 

varies among individuals, legal entities, 

and Gov/FFLs. For example, ATF 

estimates that it takes four hours for an 

individual to complete Form 1 due to 

the requirements to provide 

fingerprints, photographs and a law 

enforcement certificate. ATF estimates it 

takes less time for a Gov/FFL to 

complete Form 1 because the 

application does not require the 

submission of these items. The 

estimated submission times for 

individuals, legal entities, and Gov/

FFLs are: 

• 230 minutes for submission by an 

individual (50 minutes to procure 

photographs; 60 minutes to procure 

fingerprints, 100 minutes to obtain 

certificate; and 20 minutes to complete 

and mail the form); 

• 465 minutes for a submission by a 

legal entity (for two responsible 

persons) (20 minutes to complete Form 

5320.23; 100 minutes to procure 

photographs; 120 minutes to procure 

fingerprints; 200 minutes to obtain 

CLEO certificate; 5 minutes to procure 

the attachments; and 20 minutes to 

complete and mail the form); and 

• 20 minutes (to complete and mail 

the form) for a submission by a Gov/

FFL. 

With respect to ATF Form 1: 

Estimated total annual reporting and/ 

or recordkeeping burden: 55,890 hours 

(current estimated total annual reporting 

and/or recordkeeping burden from OMB 

Information Collection Number 1140– 

0011: 4,284 hours). Note: 576 Gov/FFL 

responders will take 20 minutes (192 

hours); 5,328 legal entity responders 

will take 465 minutes (41,292 hours); 

and 3,758 individual responders will 

take 230 minutes (14,406 hours). (The 

numbers of responders by type are 

estimated based on the data in Table A.) 

Estimated average burden hours per 

respondent and/or recordkeeper: 5.78 

hours (current estimated average burden 

hours per respondent or recordkeeper 

from OMB Information Collection 

Number 1140–0011: 4 hours). 

Estimated number of respondents 

and/or recordkeepers: 9,662 (current 

estimated number of respondents and/or 

recordkeepers from OMB Information 

Collection Number 1140–0011: 1,071). 

Estimated annual frequency of 

responses: 1 (current estimated annual 

frequency of responses from OMB 

Information Collection Number 1140– 

0011: 1). 

Estimated total costs: $487,757.60. 

$461,248 (fingerprints and photographs 

($32 × 3,758 (individuals) = 

$120,256; $32 × 10,656 (2 

responsible persons) = $340,992)) 

$7,992 (copies of legal entity documents 

($1.50 × 5,328)) 

$18,517.60 (mailing ($2 each for 9,086 

respondents and $.60 for 576 

respondents) (current estimated total 

costs from OMB Information Collection 

Number 1140–0011: $471). 

With respect to ATF Form 4: 

Estimated total annual reporting and/ 

or recordkeeping burden: 370,893 hours 


tkelley on DSK3SPTVN1PROD with PROPOSALS
Federal Register / Vol. 78, No. 174 / Monday, September 9, 2013 / Proposed Rules 55025 

3The large drop in burden hours from 379,896 to 

6,288 is attributable to a change in methodology. 

We no longer count each item on a Form 5 as a 

separate response. The current burden hours using 

the new methodology is 4,380 hours ((7,388 

government agencies or legal entities × 20 minutes 

and ÷ 60) plus (500 individual respondents × 230 

minutes and ÷ 60)). 

(current estimated total annual reporting 

and/or recordkeeping burden from OMB 

Information Collection Number 1140– 

0014: 44,260 hours). Note: 4,746 Gov/

FFL respondents will take 20 minutes 

(1,582 hours), 35,237 legal entity 

respondents will take 465 minutes 

(273,087 hours), and 25,102 individual 

respondents will take 230 minutes 

(96,224 hours). (The numbers of 

responders by type are estimated based 

on the data in Table A.) 

Estimated average burden hours per 

respondent and/or recordkeeper: 5.69 

hours (current estimated average burden 

hours per respondent and/or 

recordkeeper from OMB Information 

Collection Number 1140–0014: 4 hours). 

Estimated number of respondents 

and/or recordkeepers: 65,085 (current 

estimated number of respondents and/or 

recordkeepers from OMB Information 

Collection Number 1140–0014: 11,065). 

Estimated annual frequency of 

responses: 1 (current estimated annual 

frequency of responses from OMB 

Information Collection Number 1140– 

0014: 1). 

Estimated total costs: $3,234,813. 

$3,058,432 (fingerprints and 

photographs ($32 × 25,102 

(individuals) = $803,264; $32 × 

70,474 (2 responsible persons) = 

$2,255,168)) 

$52,855.50 (copies of legal entity 

documents ($1.50 × 35,237)) 

$123,525.60 (mailing ($2 each for 

60,339 respondents and $.60 for 4,746 

respondents) (current estimated total 

costs from OMB Information Collection 

Number 1140–0014: $4,536). 

With respect to ATF Form 5: 

Estimated total annual reporting and/ 

or recordkeeping burden: 6,288 hours 

(current estimated total annual reporting 

and/or recordkeeping burden from OMB 

Information Collection Number 1140– 

0015: 379,896 hours).3 Note: 8,965 Gov/ 

FFL respondents will take 20 minutes 

(2,988 hours); 135 legal entity 

respondents will take 465 minutes 

(1,046 hours); and 588 individual 

respondents will take 230 minutes 

(2,254 hours). (The numbers of 

responders by type are estimated based 

on the data in Table A.) 

Estimated average burden hours per 

respondent and/or recordkeeper: .65 

hours (current estimated average burden 

hours per respondent and/or 

recordkeeper from OMB Information 

Collection Number 1140–0015: 4 hours). 

Estimated number of respondents 

and/or recordkeepers: 9,688 (current 

estimated number of respondents and/or 

recordkeepers from OMB Information 

Collection Number 1140–0015: 7,888). 

Estimated annual frequency of 

responses: 1 (current estimated annual 

frequency of responses from OMB 

Information Collection Number 1140– 

0015: 12). 

Estimated total costs: $34,483.50. 

$27,456 (fingerprints and photographs 

($32 × 588 (individuals) = $18,816; 

$32 × 270 (2 responsible persons) = 

$8,640)) 

$202.50 (copies of legal entity 

documents ($1.50 × 135)) 

$6,825 (mailing ($2 each for 723 

respondents and $.60 for 8,965 

respondents)) (current estimated total 

costs from OMB Information Collection 

Number 1140–0015: $20,894). 

With respect to ATF Form 5320.23: 

Estimated total annual reporting and/ 

or recordkeeping burden: 13,566.67 

hours (based on 2 responsible persons). 

Estimated average burden hours per 

respondent and/or recordkeeper: .33 

hours. 

Estimated number of respondents 

and/or recordkeepers: 40,700. 

Estimated annual frequency of 

responses: 1. 

Estimated total costs: 0. (All the 

estimated costs are associated with the 

submission package for Forms 1, 4, and 

5.) 

The current estimated costs provided 

above for Forms 1, 4, and 5 are being 

revised. Due to an administrative 

oversight, the initial costs provided to 

OMB only reflected the costs associated 

with mailing the completed forms to 

ATF. They did not include the costs 

associated with certain information that 

must be included as part of the 

application, e.g., fingerprint cards. ATF 

has provided OMB with the adjusted 

cost estimates for these forms. 

Public Participation 

A. Comments Sought 

ATF is requesting comments on the 

proposed rule from all interested 

persons. ATF is also specifically 

requesting comments on the clarity of 

this proposed rule and how it may be 

made easier to understand, as well as 

comments on the costs or benefits of the 

proposed rule and on the appropriate 

methodology and data for calculating 

those costs and benefits. 

All comments must reference the 

docket number (ATF 41P), be legible, 

and include the commenter’s name and 

complete mailing address. ATF will 

treat all comments as originals and will 

not acknowledge receipt of comments. 

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. 

B. Confidentiality 

Comments, whether submitted 

electronically or on paper, will be made 

available for public viewing at ATF, and 

on the Internet as part of the 

eRulemaking initiative, and are subject 

to the Freedom of Information Act. 

Commenters who do not want their 

name or other personal identifying 

information posted on the Internet 

should submit their comment by mail or 

facsimile, along with a separate cover 

sheet that contains their personal 

identifying information. Both the cover 

sheet and comment must reference this 

docket number (ATF 41P). Information 

contained in the cover sheet will not be 

posted on the Internet. Any personal 

identifying information that appears 

within the comment will be posted on 

the Internet and will not be redacted by 

ATF. 

Any material that the commenter 

considers to be inappropriate for 

disclosure to the public should not be 

included in the comment. Any person 

submitting a comment shall specifically 

designate that portion (if any) of his 

comments that contains material that is 

confidential under law (e.g., trade 

secrets, processes). Any portion of a 

comment that is confidential under law 

shall be set forth on pages separate from 

the balance of the comment and shall be 

prominently marked ‘‘confidential’’ at 

the top of each page. Confidential 

information will be included in the 

rulemaking record but will not be 

disclosed to the public. Any comments 

containing material that is not 

confidential under law may be disclosed 

to the public. In any event, the name of 

the person submitting a comment is not 

exempt from disclosure. 

C. Submitting Comments 

Comments may be submitted in any of 

three ways: 

• Mail: Send written comments to the 

address listed in the ADDRESSES section 

of this document. Written comments 

must appear in minimum 12 point font 

size (.17 inches), include your mailing 

address, be signed, and may be of any 

length. 

• Facsimile: You may submit 

comments by facsimile transmission to 

(202) 648–9741. Faxed comments must: 

(1) Be legible and appear in minimum 

12 point font size (.17 inches); 


tkelley on DSK3SPTVN1PROD with PROPOSALS
55026 Federal Register / Vol. 78, No. 174 / Monday, September 9, 2013 / Proposed Rules 

(2) Be on 81⁄2′′ x 11′′ paper; 

(3) Contain a legible, written 

signature; and 

(4) Be no more than five pages long. 

ATF will not accept faxed comments 

that exceed five pages. 

• Federal eRulemaking Portal: To 

submit comments to ATF via the 

Federal eRulemaking portal, visit 

http://www.regulations.gov and follow 

the instructions for submitting 

comments. 

D. Request for Hearing 

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 of 

ATF 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 proposed rule and the 

comments received will be available for 

public inspection through the Federal 

eGovernment portal, http://

www.regulations.gov, 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. 

Drafting Information 

The author of this document is 

Brenda Raffath Friend, Office of 

Regulatory Affairs, Enforcement 

Programs and Services, Bureau of 

Alcohol, Tobacco, Firearms, and 

Explosives. 

List of Subjects in 27 CFR Part 479 

Administrative practice and 

procedure, Arms and munitions, 

Authority delegations, Customs duties 

and inspection, Exports, Imports, 

Military personnel, Penalties, Reporting 

and recordkeeping requirements, 

Research, Seizures and forfeitures, and 

Transportation. 

Authority and Issuance 

Accordingly, for the reasons 

discussed in the preamble, 27 CFR part 

479 is proposed to be amended as 

follows: 

PART 479—MACHINE GUNS, 

DESTRUCTIVE DEVICES, AND 

CERTAIN OTHER FIREARMS 

■ 1. The authority citation for 27 CFR 

part 479 is revised to read as follows: 

Authority: 26 U.S.C. 5812; 26 U.S.C. 5822; 

26 U.S.C. 7805. 

■ 2. Amend § 479.11, by revising the 

definition for ‘‘Person’’ and adding a 

definition for the term ‘‘Responsible 

person’’ to read as follows: 

§ 479.11 Meaning of terms. 

* * * * * 

Person. A partnership, company, 

association, trust, corporation, including 

each responsible person associated with 

such an entity; an estate; or an 

individual. 

* * * * * 

Responsible person. (1) In the case of 

a trust, any individual, including any 

grantor, trustee, or beneficiary, who 

possesses, directly or indirectly, the 

power or authority under any trust 

instrument or other document, or under 

state law, to receive, possess, ship, 

transport, deliver, transfer, or otherwise 

dispose of a firearm for, or on behalf of, 

the trust; 

(2) In the case of a partnership, any 

individual, including any partner or 

manager, who possesses, directly or 

indirectly, the power or authority under 

any contract, agreement, article, 

certificate, bylaw, or instrument, or 

under state law, to direct the 

management and policies of the 

partnership to receive, possess, ship, 

transport, deliver, transfer, or otherwise 

dispose of a firearm for, or on behalf of, 

the partnership; 

(3) In the case of an association, any 

individual, including any member, 

officer, director, board member, owner, 

or manager, who possesses, directly or 

indirectly, the power or authority under 

any contract, agreement, article, 

certificate, bylaw, or instrument, or 

under state law, to direct the 

management and policies of the 

association to receive, possess, ship, 

transport, deliver, transfer, or otherwise 

dispose of a firearm for, or on behalf of, 

the association; 

(4) In the case of a company 

(including a Limited Liability Company 

(LLC)), any individual, including any 

member, officer, director, board 

member, owner, shareholder, or 

manager, who possesses, directly or 

indirectly, the power or authority under 

any contract, agreement, article, 

certificate, bylaw, or instrument, or 

under state law, to direct the 

management and policies of the 

company to receive, possess, ship, 

transport, deliver, transfer, or otherwise 

dispose of a firearm for, or on behalf of, 

the company; and 

(5) In the case of a corporation, any 

individual, including any officer, 

director, board member, owner, 

shareholder, or manager, who possesses, 

directly or indirectly, the power or 

authority under any contract, 

agreement, article, certificate, bylaw, or 

instrument, or under state law, to direct 

the management and policies of the 

corporation to receive, possess, ship, 

transport, deliver, transfer, or otherwise 

dispose of a firearm for, or on behalf of, 

the corporation. 

* * * * * 

■ 3. Revise § 479.62 to read as follows: 

§ 479.62 Application to make. 

(a) General. No person shall make a 

firearm unless the person has filed with 

the Director a completed application on 

ATF Form 1 (5320.1), Application to 

Make and Register a Firearm, in 

duplicate, executed under the penalties 

of perjury, to make and register the 

firearm and has received the approval of 

the Director to make the firearm, which 

approval shall effectuate registration of 

the firearm to the applicant. If the 

applicant is not a licensed 

manufacturer, importer, or dealer 

qualified under this part and is a 

partnership, company (including a 

Limited Liability Company (LLC)), 

association, trust, or corporation, all 

information on the Form 1 application 

shall be furnished for each responsible 

person of the applicant. 

(b) Preparation of ATF Form 1. All of 

the information called for on Form 1 

shall be provided, including: 

(1) The type of application, i.e., tax 

paid or tax exempt. If the making of the 

firearm is taxable, the applicant shall 

submit a remittance in the amount of 

$200 with the application in accordance 

with the instructions on the form; 

(2) The identity of the applicant. If an 

individual, the applicant shall provide 

his or her name, address, and date and 

place of birth, and also comply with the 

identification requirements prescribed 

in § 479.63(a). If other than an 

individual, the applicant shall provide 

its name, address, and employer 

identification number, as well as the 

name and address of each responsible 

person. Each responsible person of the 

applicant also shall comply with the 

identification requirements prescribed 

in § 479.63(b); 

(3) A description of the firearm to be 

made by type, caliber, gauge or size, 

model, length of barrel, serial number, 

other marks of identification, and the 

name and address of the original 

manufacturer (if the applicant is not the 

original manufacturer); 

(4) The applicant’s Federal firearms 

license number (if any); 

(5) The applicant’s special 

(occupational) tax stamp (if applicable); 

and 

(6) If the applicant (including, if other 

than an individual, any responsible 

person) is an alien admitted under a 

nonimmigrant visa, applicable 

documentation demonstrating that the 


tkelley on DSK3SPTVN1PROD with PROPOSALS
Federal Register / Vol. 78, No. 174 / Monday, September 9, 2013 / Proposed Rules 55027 

nonimmigrant alien falls within an 

exception to 18 U.S.C. 922(g)(5)(B) 

under 18 U.S.C. 922(y)(2) or has 

obtained a waiver of that provision 

under 18 U.S.C. 922(y)(3). 

(c) Approval of Form 1. If the 

application is approved, the Director 

will affix a National Firearms Act stamp 

to the original application in the space 

provided therefor and properly cancel 

the stamp (see § 479.67). The approved 

application will then be returned to the 

applicant. 

■ 4. Revise § 479.63 to read as follows: 

§ 479.63 Identification of applicant. 

(a) If the applicant is an individual, 

the applicant shall: 

(1) Securely attach to each copy of the 

Form 1, in the space provided on the 

form, a photograph of the applicant 2 x 

2 inches in size, clearly showing a full 

front view of the features of the 

applicant with head bare, with the 

distance from the top of the head to the 

point of the chin approximately 11⁄4

inches, and which shall have been taken 

within 1 year prior to the date of the 

application; 

(2) Attach to the application two 

properly completed FBI Forms FD–258 

(Fingerprint Card). The fingerprints 

must be clear for accurate classification 

and should be taken by someone 

properly equipped to take them; and 

(3) Have a certificate completed on 

each copy of the Form 1 by the local 

chief of police, sheriff of the county, 

head of the state police, state or local 

district attorney or prosecutor, or such 

other person whose certificate may in a 

particular case be acceptable to the 

Director, for the jurisdiction in which 

the individual resides. The certificate 

shall state that the certifying official is 

satisfied that the fingerprints and 

photograph accompanying the 

application are those of the applicant 

and that the certifying official has no 

information indicating that possession 

of the firearm by the maker would be in 

violation of state or local law. 

(b) If the applicant is not a licensed 

manufacturer, importer, or dealer 

qualified under this part and is a 

partnership, company (including a 

Limited Liability Company (LLC)), 

association, trust, or corporation, the 

applicant shall: 

(1) Be identified on the Form 1 by the 

name and exact location of the place of 

business, including the name and 

number of the building and street, and 

the name of the county in which the 

business is located or, in the case of a 

trust, the address where the firearm is 

located. In the case of two or more 

locations, the address shown shall be 

the principal place of business (or 

principal office, in the case of a 

corporation) or, in the case of a trust, the 

principal address at which the firearm 

is located; 

(2) Except as provided in paragraph 

(c) of this section, attach to the 

application— 

(i) Documentation evidencing the 

existence and validity of the entity, 

which includes complete and 

unredacted copies of partnership 

agreements, articles of incorporation, 

corporate registration, declarations of 

trust with any trust schedules, 

attachments, exhibits, and enclosures; 

(ii) A completed ATF Form 5320.23 

for each responsible person. Form 

5320.23 requires certain identifying 

information, including each responsible 

person’s full name, position, social 

security number (optional), home 

address, date and place of birth, and 

country of citizenship; 

(iii) In the space provided on Form 

5320.23, a photograph of each 

responsible person 2 x 2 inches in size, 

clearly showing a full front view of the 

features of the responsible person with 

head bare, with the distance from the 

top of the head to the point of the chin 

approximately 11⁄4 inches, and which 

shall have been taken within 1 year 

prior to the date of the application; 

(iv) Two properly completed FBI 

Forms FD–258 (Fingerprint Card) for 

each responsible person. The 

fingerprints must be clear for accurate 

classification and should be taken by 

someone properly equipped to take 

them; and 

(v) In the space provided on Form 

5320.23, a certificate completed by the 

local chief of police, sheriff of the 

county, head of the state police, state or 

local district attorney or prosecutor, or 

such other person whose certificate may 

in a particular case be acceptable to the 

Director, for the jurisdiction in which 

the responsible person resides. The 

certificate shall state that the certifying 

official is satisfied that the fingerprints 

and photograph accompanying the form 

are those of the responsible person and 

that the certifying official has no 

information indicating that possession 

of the firearm by the responsible person 

would be in violation of state or local 

law. 

(c) If the applicant entity has had an 

application approved as a maker or 

transferee within the preceding 24 

months, and there has been no change 

to the documentation previously 

provided, the entity may provide a 

certification that the information has not 

been changed since the prior approval 

and shall identify the application for 

which the documentation had been 

submitted by form number, serial 

number, and date approved. 

■ 5. Revise § 479.84 to read as follows: 

§ 479.84 Application to transfer. 

(a) General. Except as otherwise 

provided in this subpart, no firearm may 

be transferred in the United States 

unless an application, Form 4 (5320.4), 

Application for Tax Paid Transfer and 

Registration of Firearm, in duplicate, 

executed under the penalties of perjury, 

to transfer the firearm and register it to 

the transferee has been filed with and 

approved by the Director. The 

application shall be filed by the 

transferor. If the transferee is not a 

licensed manufacturer, importer, or 

dealer qualified under this part and is 

a partnership, company (including a 

Limited Liability Company (LLC)), 

association, trust, or corporation, all 

information on the Form 4 application 

shall be furnished for each responsible 

person of the transferee. 

(b) Preparation of ATF Form 4. All of 

the information called for on Form 4 

shall be provided, including: 

(1) The type of firearm being 

transferred. If the firearm is other than 

one classified as ‘‘any other weapon,’’ 

the applicant shall submit a remittance 

in the amount of $200 with the 

application in accordance with the 

instructions on the form. If the firearm 

is classified as ‘‘any other weapon,’’ the 

applicant shall submit a remittance in 

the amount of $5; 

(2) The identity of the transferor by 

name and address and, if the transferor 

is other than a natural person, the title 

or legal status of the person executing 

the application in relation to the 

transferor; 

(3) The transferor’s Federal firearms 

license number (if any); 

(4) The transferor’s special 

(occupational) tax stamp (if any); 

(5) The identity of the transferee by 

name and address and, if the transferee 

is a person not qualified as a 

manufacturer, importer, or dealer under 

this part, the transferee shall be further 

identified in the manner prescribed in 

§ 479.85; 

(6) The transferee’s Federal firearms 

license number (if any); 

(7) The transferee’s special 

(occupational) tax stamp (if any); and 

(8) A description of the firearm to be 

transferred by name and address of the 

manufacturer or importer (if known); 

caliber, gauge, or size; model; serial 

number; in the case of a short-barreled 

shotgun or a short-barreled rifle, the 

length of the barrel; in the case of a 

weapon made from a rifle or shotgun, 

the overall length of the weapon and the 

length of the barrel; and any other 


tkelley on DSK3SPTVN1PROD with PROPOSALS
55028 Federal Register / Vol. 78, No. 174 / Monday, September 9, 2013 / Proposed Rules 

identifying marks on the firearm. In the 

event the firearm does not bear a serial 

number, the applicant shall obtain a 

serial number from ATF and shall stamp 

(impress) or otherwise conspicuously 

place such serial number on the firearm 

in a manner not susceptible of being 

readily obliterated, altered, or removed. 

(9) If the applicant (including, if other 

than an individual, any responsible 

person) is an alien admitted under a 

nonimmigrant visa, applicable 

documentation demonstrating that the 

nonimmigrant alien falls within an 

exception to 18 U.S.C. 922(g)(5)(B) 

under 18 U.S.C. 922(y)(2) or has 

obtained a waiver of that provision 

under 18 U.S.C. 922(y)(3). 

(c) Approval of Form 4. If the 

application is approved, the Director 

will affix a National Firearms Act stamp 

to the original application in the space 

provided therefor and properly cancel 

the stamp (see § 479.87). The approved 

application will then be returned to the 

transferor. 

■ 6. Revise § 479.85 to read as follows: 

§ 479.85 Identification of transferee. 

(a) If the transferee is an individual, 

such person shall: 

(1) Securely attach to each copy of the 

Form 4, in the space provided on the 

form, a photograph of the applicant 2 x 

2 inches in size, clearly showing a full 

front view of the features of the 

applicant with head bare, with the 

distance from the top of the head to the 

point of the chin approximately 11⁄4

inches, and which shall have been taken 

within 1 year prior to the date of the 

application; 

(2) Attach to the application two 

properly completed FBI Forms FD–258 

(Fingerprint Card). The fingerprints 

must be clear for accurate classification 

and should be taken by someone 

properly equipped to take them; and 

(3) Have a certificate completed on 

each copy of the Form 4 by the local 

chief of police, sheriff of the county, 

head of the state police, state or local 

district attorney or prosecutor, or such 

other person whose certificate may in a 

particular case be acceptable to the 

Director, for the jurisdiction in which 

the individual resides. The certificate 

shall state that the certifying official is 

satisfied that the fingerprints and 

photograph accompanying the 

application are those of the applicant 

and that the certifying official has no 

information indicating that receipt or 

possession of the firearm by the 

transferee would be in violation of state 

or local law. 

(b) If the transferee is not a licensed 

manufacturer, importer, or dealer 

qualified under this part and is a 

partnership, company, association, 

trust, or corporation, such person shall: 

(1) Be identified on the Form 4 by the 

name and exact location of the place of 

business, including the name and 

number of the building and street, and 

the name of the county in which the 

business is located or, in the case of a 

trust, the address where the firearm is 

located. In the case of two or more 

locations, the address shown shall be 

the principal place of business (or 

principal office, in the case of a 

corporation) or, in the case of a trust, the 

principal address at which the firearm 

is located; 

(2) Except as provided in paragraph 

(c) of this section, attach to the 

application— 

(i) Documentation evidencing the 

existence and validity of the entity, 

which includes complete and 

unredacted copies of partnership 

agreements, articles of incorporation, 

corporate registration, declarations of 

trust with any trust schedules, 

attachments, exhibits, and enclosures; 

(ii) A completed ATF Form 5320.23 

for each responsible person. Form 

5320.23 requires certain identifying 

information, including the responsible 

person’s full name, position, social 

security number (optional), home 

address, date and place of birth, and 

country of citizenship; 

(iii) In the space provided on Form 

5320.23, a photograph of each 

responsible person 2 x 2 inches in size, 

clearly showing a full front view of the 

features of the responsible person with 

head bare, with the distance from the 

top of the head to the point of the chin 

approximately 11⁄4 inches, and which 

shall have been taken within 1 year 

prior to the date of the application; 

(iv) Two properly completed FBI 

Forms FD–258 (Fingerprint Card) for 

each responsible person. The 

fingerprints must be clear for accurate 

classification and should be taken by 

someone properly equipped to take 

them; and 

(v) In the space provided on Form 

5320.23, a certificate completed by the 

local chief of police, sheriff of the 

county, head of the state police, state or 

local district attorney or prosecutor, or 

such other person whose certificate may 

in a particular case be acceptable to the 

Director, for the jurisdiction in which 

the responsible person resides. The 

certificate shall state that the certifying 

official is satisfied that the fingerprints 

and photograph accompanying the form 

are those of the responsible person and 

that the certifying official has no 

information indicating that receipt or 

possession of the firearm by the 

transferee would be in violation of state 

or local law. 

(c) If the applicant entity has had an 

application approved as a maker or 

transferee within the preceding 24 

months, and there has been no change 

to the documentation previously 

provided, the entity may provide a 

certification that the information has not 

been changed since the prior approval 

and shall identify the application for 

which the documentation had been 

submitted by form number, serial 

number, and date approved. 

■ 7. Revise § 479.90 to read as follows: 

§ 479.90 Estates. 

(a) The executor, administrator, 

personal representative, or other person 

authorized under state law to dispose of 

property in an estate (collectively 

‘‘executor’’) may possess a firearm 

registered to a decedent during the term 

of probate without such possession 

being treated as a ‘‘transfer’’ as defined 

in § 479.11. No later than the close of 

probate, the executor must submit an 

application to transfer the firearm to 

beneficiaries or other transferees in 

accordance with this section. If the 

transfer is to a beneficiary, the executor 

shall file an ATF Form 5 (5320.5), 

Application for Tax Exempt Transfer 

and Registration of Firearm, to register 

a firearm to any beneficiary of an estate 

in accordance with § 479.90. The 

executor will identify the estate as the 

transferor, and will sign the form on 

behalf of the decedent, showing his or 

her title and the date of filing. The 

executor must also provide the 

documentation prescribed in paragraph 

(c) of this section. 

(b) If there are no beneficiaries of the 

estate or the beneficiaries do not wish 

to possess the registered firearm, the 

executor will dispose of the property 

outside the estate (i.e., to a nonbeneficiary). The executor shall file an 

ATF Form 4 (5320.4), Application for 

Tax Paid Transfer and Registration of 

Firearm, in accordance with § 479.84. 

The executor, administrator, personal 

representative, or other authorized 

person must also provide 

documentation prescribed in paragraph 

(c) of this section. 

(c) The executor, administrator, 

personal representative, or other person 

authorized under state law to dispose of 

property in an estate shall submit with 

the transfer application documentation 

of his or her appointment as executor, 

administrator, personal representative, 

or as an authorized person, a copy of the 

decedent’s death certificate, a copy of 

the will (if any), any other evidence of 

his or her authority to dispose of 

property, and any other document 


tkelley on DSK3SPTVN1PROD with PROPOSALS
Federal Register / Vol. 78, No. 174 / Monday, September 9, 2013 / Proposed Rules 55029 

relating to, or affecting the disposition 

of firearms from the estate. 

Dated: August 29, 2013. 

Eric H. Holder, Jr., 

Attorney General. 

[FR Doc. 2013–21661 Filed 9–6–13; 8:45 am] 

BILLING CODE 4410–FY–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Parts 52 

[EPA–R06–OAR–2010–0333; FRL–9900–83– 

Region 6] 

Approval and Promulgation of 

Implementation; Texas; Houston: 

Reasonable Further Progress Plan, 

Contingency Measures, and 

Transportation Conformity Budgets for 

the 1997 8-Hour Severe Ozone 

Nonattainment Area 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Proposed rule. 

SUMMARY: The EPA is proposing to 

approve revisions to the Texas State 

Implementation Plan to the emissions 

inventory (EI), the reasonable further 

progress (RFP) plan and contingency 

measures, the vehicle miles traveled 

(VMT) offset analysis, and 

transportation conformity motor vehicle 

emissions budgets associated with the 

reasonable further progress portion of 

these revisions. The EPA is proposing to 

approve these revisions because they 

satisfy the EI, the RFP, the VMT offset, 

and transportation conformity 

requirements for areas classified as 

severe nonattainment for the 1997 8- 

hour ozone national ambient air quality 

standard and demonstrate further 

progress in reducing ozone precursors. 

DATES: Comments must be received on 

or before October 9, 2013. 

ADDRESSES: Submit your comments, 

identified by Docket ID No. EPA–R06– 

OAR–2010–0333, by one of the 

following methods: 

• Federal Rulemaking Portal: http://

www.regulations.gov. Follow the on-line 

instructions for submitting comments. 

• U.S. EPA Region 6 ‘‘Contact Us’’ 

Web site: http://epa.gov/region6/

r6coment.htm. Please click on ‘‘6PD’’ 

(Multimedia) and select ‘‘Air’’ before 

submitting comments. 

• Email: Mr. Guy Donaldson at 

donaldson.guy@epa.gov. Please also 

send a copy by email to the person 

listed in the FOR FURTHER INFORMATION

CONTACT section below. 

• Fax: Mr. Guy Donaldson, Chief, Air 

Planning Section (6PD–L), at fax 

number 214–665–7263. 

• Mail: Mr. Guy Donaldson, Chief, 

Air Planning Section (6PD–L), 

Environmental Protection Agency, 1445 

Ross Avenue, Suite 1200, Dallas, Texas 

75202–2733. 

• Hand or Courier Delivery: Mr. Guy 

Donaldson, Chief, Air Planning Section 

(6PD–L), Environmental Protection 

Agency, 1445 Ross Avenue, Suite 1200, 

Dallas, Texas 75202–2733. Such 

deliveries are accepted only between the 

hours of 8:00 a.m. and 4:00 p.m. 

weekdays except for legal holidays. 

Special arrangements should be made 

for deliveries of boxed information. 

Instructions: Direct your comments to 

Docket ID No. EPA–R06–OAR–2010– 

0333. The EPA’s policy is that all 

comments received will be included in 

the public docket without change and 

may be made available online at 

www.regulations.gov, including any 

personal information provided, unless 

the comment includes information 

claimed to be Confidential Business 

Information (CBI) or other information 

whose disclosure is restricted by statute. 

Do not submit through 

www.regulations.gov or email, 

information that you consider to be CBI 

or otherwise protected. The 

www.regulations.gov Web site is an 

‘‘anonymous access’’ system, which 

means the EPA will not know your 

identity or contact information unless 

you provide it in the body of your 

comment. If you send an email 

comment directly to EPA without going 

through www.regulations.gov, your 

email address will be automatically 

captured and included as part of the 

comment that is placed in the public 

docket and made available on the 

Internet. If you submit an electronic 

comment, the EPA recommends that 

you include your name and other 

contact information in the body of your 

comment and with any disk or CD–ROM 

you submit. If the EPA cannot read your 

comment due to technical difficulties 

and cannot contact you for clarification, 

the EPA may not be able to consider 

your comment. Electronic files should 

avoid the use of special characters, any 

form of encryption, and be free of any 

defects or viruses. For additional 

information about the EPA’s public 

docket visit the EPA Docket Center 

homepage at http://www.epa.gov/

epahome/dockets.htm. 

Docket: All documents in the docket 

are listed in the www.regulations.gov 

index. Although listed in the index, 

some information is not publicly 

available, e.g., CBI or other information 

whose disclosure is restricted by statute. 

Certain other material, such as 

copyrighted material, will be publicly 

available only in hard copy. Publicly 

available docket materials are available 

either electronically in 

www.regulations.gov or in hard copy at 

the Air Planning Section (6PD–L), 

Environmental Protection Agency, 1445 

Ross Avenue, Suite 700, Dallas, Texas 

75202–2733. The file will be made 

available by appointment for public 

inspection in the Region 6 FOIA Review 

Room between the hours of 8:30 a.m. 

and 4:30 p.m. weekdays except for legal 

holidays. Contact the person listed in 

the FOR FURTHER INFORMATION CONTACT

paragraph below to make an 

appointment. If possible, please make 

the appointment at least two working 

days in advance of your visit. There will 

be a fee of 15 cents per page for making 

photocopies of documents. On the day 

of the visit, please check in at the EPA 

Region 6 reception area at 1445 Ross 

Avenue, Suite 700, Dallas, Texas. 

The State submittal, which is part of 

the EPA record, is also available for 

public inspection at the State Air 

Agency listed below during official 

business hours by appointment: Texas 

Commission on Environmental Quality, 

Office of Air Quality, 12124 Park 35 

Circle, Austin, Texas 78753. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Sandra Rennie, Air Planning Section 

(6PD–L), Environmental Protection 

Agency, Region 6, 1445 Ross Avenue, 

Suite 700, Dallas, Texas 75202–2733, 

telephone (214) 665–7367; fax number 

(214) 665–7263; email address 

rennie.sandra@epa.gov. 

SUPPLEMENTARY INFORMATION: 

Throughout this document, ‘‘we,’’ ‘‘us,’’ 

and ‘‘our’’ means EPA. 

Table of Contents 

I. What action is EPA proposing? 

II. What is the background for this action? 

III. What is EPA’s evaluation of the revisions? 

A. Base Year Emissions Inventory 

B. Adjusted Base Year Inventory and 2008 

RFP Target Levels 

C. Projected Inventories and Determination 

of RFP 

D. Control Measures and Emission 

Reductions for RFP 

E. Contingency Measures 

F. Vehicle Miles Traveled Offset Analysis 

G. Transportation Conformity Budgets 

IV. Proposed Action 

V. Statutory and Executive Order Reviews 

I. What action is EPA proposing? 

The EPA is proposing to approve a 

revision to the Texas State 

Implementation Plan (SIP) for the 

Houston-Galveston-Brazoria (HGB) 

ozone nonattainment area submitted by 

the Texas Commission on 

Environmental Quality on April 1, 2010, 


tkelley on DSK3SPTVN1PROD with PROPOSALS