45364 Federal Register / Vol. 62, No. 166 / Wednesday, August 27, 1997 / Proposed Rules

DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and

Firearms

27 CFR Part 178

[Notice No. 855]

RIN 1512–AB68

Posting of Signs and Written

Notification to Purchasers of

Handguns (97R–2186P)

AGENCY: Bureau of Alcohol, Tobacco

and Firearms (ATF), Department of the

Treasury.

ACTION: Notice of proposed rulemaking.

SUMMARY: The Bureau of Alcohol,

Tobacco and Firearms (ATF) is

proposing to amend the firearms

regulations to require that signs be

posted on the premises of Federal

firearms licensees and that written

notification be issued with each

handgun sold advising of the provisions

of the Youth Handgun Safety Act.

DATES: Written comments must be

received on or before November 25,

1997.

ADDRESSES: Send written comments to:

Chief, Regulations Branch, Bureau of

Alcohol, Tobacco and Firearms, P.O.

Box 50221, Washington, DC 20091–

0221; ATTN: Notice No. 855.

FOR FURTHER INFORMATION CONTACT:

Marsha D. Baker, Regulations Branch,

Bureau of Alcohol, Tobacco and

Firearms, 650 Massachusetts Avenue,

N.W., Washington, DC 20226 (202–927–

8210).

SUPPLEMENTARY INFORMATION:

Background

The Youth Handgun Safety Act

(YHSA) generally makes it unlawful for

a person to transfer a handgun to

anyone under 18 years of age or for

anyone under 18 years of age to

knowingly possess a handgun. 18 U.S.C.

922(x). In enacting this provision in

1994, Congress found that criminal

misuse of firearms often starts with the

easy availability of guns to juvenile gang

members. In addition, Congress found

that individual States and localities may

find it difficult to control this problem

by themselves. Therefore, Congress

found it necessary and appropriate to

assist the States in controlling violent

crime by stopping the commerce in

handguns with juveniles nationwide

and allowing the possession of

handguns by juveniles only when

handguns are possessed and used under

certain limited circumstances.

In a memorandum for the Secretary of

the Treasury dated June 11, 1997, the

President stated that a major problem in

our Nation is the ease with which young

people gain illegal access to guns. The

President observed that firearms are

now responsible for 12 percent of

fatalities among American children and

teenagers. Also, firearms are the fourth

leading cause of accidental deaths

among children ages 5 through 14, and

are now the primary method by which

young people commit suicide.

Moreover, between 1984 and 1994, the

number of juvenile offenders

committing homicides by firearms

nearly quadrupled.

To implement the provisions of the

YHSA, and to ensure that handgun

purchasers are familiar with its

provisions, ATF is proposing

regulations requiring that signs be

posted on the premises of Federal

firearms licensees and that written

notification be issued by licensees to

nonlicensed handgun purchasers

warning as follows:

(1) Federal law prohibits, except in certain

limited circumstances, anyone under 18

years of age from knowingly possessing a

handgun, or any person from transferring a

handgun to a person under 18;

(2) A violation of the prohibition against

transferring a handgun to a person under the

age of 18 is, under certain circumstances,

punishable by up to 10 years in prison;

(3) Handguns are a leading contributor to

juvenile violence and fatalities; and

(4) Safely storing and locking handguns

away from children can help ensure

compliance with Federal law.

The proposed regulations state that

signs provided by ATF must be posted

by Federal firearms licensees on their

licensed premises where prospective

handgun purchasers can readily see

them. In addition, the written

notification to be issued to each

handgun purchaser must be made

available either by providing the

purchaser with ATF Publication

5300.(xx) or some other type of written

notification that contains the same

language, e.g., a manufacturer’s or

importer’s instruction manual or

brochure provided to the handgun

purchaser.

The requirement that written

notification be issued upon delivery of

a handgun to a nonlicensee would apply

not only to handguns sold by licensees,

but also to the return of handguns to

their owners, e.g., the return of a

handgun after repair and the

redemption of a handgun from pawn.

The requirement would also extend to

curio or relic handguns transferred by

licensed collectors. However, this

requirement would not apply to a

licensee who sells a handgun to a

nonlicensee where the delivery is made

through another licensee. In such a case,

the licensee delivering the handgun to

the nonlicensee would be responsible

for delivering the notice.

Licensing as a collector of curio or

relic firearms does not make the

collector’s premises a business premise

or open the premises to the public.

Moreover, a licensed collector may

lawfully dispose of curios or relics away

from the licensed premises. For these

reasons, the proposed sign posting

requirement would not apply to

licensed collectors. Nor would the

requirement apply to any other type of

licensee who lawfully disposes of

handguns to nonlicensees who do not

appear at the licensee’s premises, e.g., a

licensee who ships repaired handguns

or replacement handguns to

nonlicensees.

Executive Order 12866

It has been determined that this

proposed regulation is not a significant

regulatory action as defined by

Executive Order 12866. Accordingly,

this proposal is not subject to the

analysis required by this Executive

Order.

Regulatory Flexibility Act

It is hereby certified that this

proposed regulation will not have a

significant economic impact on a

substantial number of small entities.

The proposed regulations are necessary

to implement the President’s June 11,

1997, announcement of firearms

initiatives intended to protect the

American public from gun violence. The

notices and signs that are proposed in

this document would be provided free

of charge by the Government to Federal

firearms licensees. Licensees may

choose to provide the required written

notice in another format; however, they

always have the option of using the

notices provided by ATF. Moreover, any

new requirement relating to the posting

of signs and the distribution of notices

would place only a minimal burden on

firearms licensees. Accordingly, a

regulatory flexibility analysis is not

required.

Paperwork Reduction Act

The provisions of the Paperwork

Reduction Act of 1995, 44 U.S.C.

chapter 35, and its implementing

regulations, 5 CFR part 1320, do not

apply to this notice of proposed

rulemaking because no new reporting or

recordkeeping requirements are

proposed.

Public Participation

ATF requests comments on the notice

of proposed rulemaking from all
Federal Register / Vol. 62, No. 166 / Wednesday, August 27, 1997 / Proposed Rules 45365

interested persons. Comments received

on or before the closing date will be

carefully considered.

Comments received after that date

will be given the same consideration if

it is practical to do so, but assurance of

consideration cannot be given except as

to comments received on or before the

closing date.

ATF will not recognize any material

in comments as confidential. Comments

may be disclosed to the public. Any

material the commenter considers to be

confidential or inappropriate for

disclosure to the public should not be

included in the comment. The name of

the person submitting a comment is not

exempt from disclosure.

Any interested person who desires an

opportunity to comment orally at a

public hearing should submit his or her

request, in writing, to the Director

within the 90-day comment period. The

Director, however, reserves the right to

determine, in light of all circumstances,

whether a public hearing is necessary.

Disclosure

Copies of this notice and the written

comments received will be available for

public inspection during normal

business hours at: ATF Public Reading

Room, Room 6480, 650 Massachusetts

Avenue, N.W., Washington, DC.

Drafting Information

The author of this document is

Marsha D. Baker, Regulations Branch,

Bureau of Alcohol, Tobacco and

Firearms.

List of Subjects in 27 CFR Part 178

Administrative practice and

procedure, Arms and ammunition,

Authority delegations, Customs duties

and inspections, Exports, Imports,

Military personnel, Penalties, Reporting

requirements, Research, Seizures and

forfeitures, and Transportation.

Authority and Issuance

27 CFR Part 178—Commerce in

Firearms and Ammunition is amended

as follows:

Paragraph 1. The authority citation

for 27 CFR Part 178 continues to read

as follows:

Authority: 5 U.S.C. 552(a); 18 U.S.C. 847,

921–930; 44 U.S.C. 3504(h).

Par. 2. Section 178.103 is added to

Subpart F to read as follows:

§ 178.103 Posting of signs and written

notification to purchasers of handguns.

(a) Each licensed importer,

manufacturer, dealer, or collector who

delivers a handgun to a nonlicensee

shall provide such nonlicensee with

written notification as described in

paragraph (b) of this section.

(b) The written notification required

by paragraph (a) of this section shall

state as follows:

(1) Federal law prohibits, except in

certain limited circumstances, anyone

under 18 years of age from knowingly

possessing a handgun, or any person

from transferring a handgun to a person

under 18;

(2) A violation of the prohibition

against transferring a handgun to a

person under the age of 18 is, under

certain circumstances, punishable by up

to 10 years in prison;

(3) Handguns are a leading

contributor to juvenile violence and

fatalities; and

(4) Safely storing and locking

handguns away from children can help

ensure compliance with Federal law.

(c) This written notification shall be

delivered to the nonlicensee on ATF I

5300.(xx), or in the alternative, the same

written notification may be delivered to

the nonlicensee on another type of

written notification, e.g., a

manufacturer’s or importer’s brochure

accompanying the handgun, a

manufacturer’s or importer’s operational

manual accompanying the handgun, a

sales receipt or invoice, or a label or

sticker applied to the handgun package

or container delivered to a nonlicensee.

Any written notification delivered to a

nonlicensee other than on ATF I

5300.(xx) shall be legible, clear, and

conspicuous and shall be no smaller

than 10-point type.

(d) Except as provided in paragraph

(e) of this section, each licensed

importer, manufacturer, or dealer who

delivers a handgun to a nonlicensee

shall display at its licensed premises

(including temporary business locations

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

containing the written notification

prescribed by paragraph (b) of this

section. The sign shall be displayed

where customers can readily see it.

Licensed importers, manufacturers, and

dealers will be provided with such signs

by ATF. Replacement signs may be

requested from the ATF Distribution

Center, P.O. Box 5950, Springfield,

Virginia 22150–5950.

(e) The sign required by paragraph (d)

of this section need not be posted on the

premises of any licensed importer,

manufacturer, or dealer whose only

dispositions of handguns to

nonlicensees are to nonlicensees who

do not appear at the licensed premises

and the dispositions otherwise comply

with the provisions of this part.

Signed: August 1, 1997.

John W. Magaw,

Director.

Approved: August 11, 1997.

John P. Simpson,

Deputy Assistant Secretary (Regulatory, Tariff

and Trade Enforcement).

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

BILLING CODE 4810–31–P

DEPARTMENT OF THE TREASURY

31 CFR Part 103

RIN 1506–AA09, 1506–AA20

Financial Crimes Enforcement

Network; Bank Secrecy Act

Regulations; Money Services

Businesses—Draft Forms; Open

Working Meeting

AGENCY: Financial Crimes Enforcement

Network, Treasury.

ACTION: Meeting on draft forms relating

to proposed regulations.

SUMMARY: The Financial Crimes

Enforcement Network (‘‘FinCEN’’) will

hold a working meeting to give

interested persons the opportunity to

discuss with FinCEN officials issues

regarding draft forms that will be used

to implement the proposed Bank

Secrecy Act regulations for money

services businesses published on May

21, 1997.

DATES: September 3, 1997, 1:30 p.m. to

4:30 p.m.

ADDRESSES: Suite 200, 2070 Chain

Bridge Road, Vienna, VA 22182–2536.

FOR FURTHER INFORMATION CONTACT:

Legal or Technical: Charles Klingman,

Financial Institutions Policy Specialist,

FinCEN, at (703) 905–3602.

Attendance: Camille Steele, at (703)

905–3819, or Karen Robb, at (703) 905–

3770.

General: FinCEN’s Information

telephone line, at (703) 905–3848, or

www.ustreas.gov/treasury/bureaus/

fincen (‘‘What’s New’’ section).

SUPPLEMENTARY INFORMATION: On May

21, 1997, FinCEN issued three proposed

regulations relating to the treatment of

money services businesses under the

Bank Secrecy Act. The first proposed

regulation (62 FR 27890) would define

money services businesses and require

the businesses to register with the

Department of the Treasury and to

maintain a current list of their agents.

The second proposed regulation (62 FR

27900) would require money

transmitters, and issuers, sellers, and

redeemers, of money orders and

traveler’s checks, to report suspicious