[Federal Register Volume 62, Number 166 (Wednesday, August 27, 1997)]
[Proposed Rules]
[Pages 45364-45365]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-22875]



[[Page 45364]]

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DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Part 178

[Notice No. 855]
RIN 1512-AB68


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

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

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Bureau of Alcohol, Tobacco and Firearms (ATF) is proposing 
to amend the firearms regulations to require that signs be posted on 
the premises of Federal firearms licensees and that written 
notification be issued with each handgun sold advising of the 
provisions of the Youth Handgun Safety Act.

DATES: Written comments must be received on or before November 25, 
1997.

ADDRESSES: Send written comments to: Chief, Regulations Branch, Bureau 
of Alcohol, Tobacco and Firearms, P.O. Box 50221, Washington, DC 20091-
0221; ATTN: Notice No. 855.

FOR FURTHER INFORMATION CONTACT: Marsha D. Baker, Regulations Branch, 
Bureau of Alcohol, Tobacco and Firearms, 650 Massachusetts Avenue, 
N.W., Washington, DC 20226 (202-927-8210).

SUPPLEMENTARY INFORMATION:

Background

    The Youth Handgun Safety Act (YHSA) generally makes it unlawful for 
a person to transfer a handgun to anyone under 18 years of age or for 
anyone under 18 years of age to knowingly possess a handgun. 18 U.S.C. 
922(x). In enacting this provision in 1994, Congress found that 
criminal misuse of firearms often starts with the easy availability of 
guns to juvenile gang members. In addition, Congress found that 
individual States and localities may find it difficult to control this 
problem by themselves. Therefore, Congress found it necessary and 
appropriate to assist the States in controlling violent crime by 
stopping the commerce in handguns with juveniles nationwide and 
allowing the possession of handguns by juveniles only when handguns are 
possessed and used under certain limited circumstances.
    In a memorandum for the Secretary of the Treasury dated June 11, 
1997, the President stated that a major problem in our Nation is the 
ease with which young people gain illegal access to guns. The President 
observed that firearms are now responsible for 12 percent of fatalities 
among American children and teenagers. Also, firearms are the fourth 
leading cause of accidental deaths among children ages 5 through 14, 
and are now the primary method by which young people commit suicide. 
Moreover, between 1984 and 1994, the number of juvenile offenders 
committing homicides by firearms nearly quadrupled.
    To implement the provisions of the YHSA, and to ensure that handgun 
purchasers are familiar with its provisions, ATF is proposing 
regulations requiring that signs be posted on the premises of Federal 
firearms licensees and that written notification be issued by licensees 
to nonlicensed handgun purchasers warning as follows:

    (1) Federal law prohibits, except in certain limited 
circumstances, anyone under 18 years of age from knowingly 
possessing a handgun, or any person from transferring a handgun to a 
person under 18;
    (2) A violation of the prohibition against transferring a 
handgun to a person under the age of 18 is, under certain 
circumstances, punishable by up to 10 years in prison;
    (3) Handguns are a leading contributor to juvenile violence and 
fatalities; and
    (4) Safely storing and locking handguns away from children can 
help ensure compliance with Federal law.

    The proposed regulations state that signs provided by ATF must be 
posted by Federal firearms licensees on their licensed premises where 
prospective handgun purchasers can readily see them. In addition, the 
written notification to be issued to each handgun purchaser must be 
made available either by providing the purchaser with ATF Publication 
5300.(xx) or some other type of written notification that contains the 
same language, e.g., a manufacturer's or importer's instruction manual 
or brochure provided to the handgun purchaser.
    The requirement that written notification be issued upon delivery 
of a handgun to a nonlicensee would apply not only to handguns sold by 
licensees, but also to the return of handguns to their owners, e.g., 
the return of a handgun after repair and the redemption of a handgun 
from pawn. The requirement would also extend to curio or relic handguns 
transferred by licensed collectors. However, this requirement would not 
apply to a licensee who sells a handgun to a nonlicensee where the 
delivery is made through another licensee. In such a case, the licensee 
delivering the handgun to the nonlicensee would be responsible for 
delivering the notice.
    Licensing as a collector of curio or relic firearms does not make 
the collector's premises a business premise or open the premises to the 
public. Moreover, a licensed collector may lawfully dispose of curios 
or relics away from the licensed premises. For these reasons, the 
proposed sign posting requirement would not apply to licensed 
collectors. Nor would the requirement apply to any other type of 
licensee who lawfully disposes of handguns to nonlicensees who do not 
appear at the licensee's premises, e.g., a licensee who ships repaired 
handguns or replacement handguns to nonlicensees.

Executive Order 12866

    It has been determined that this proposed regulation is not a 
significant regulatory action as defined by Executive Order 12866. 
Accordingly, this proposal is not subject to the analysis required by 
this Executive Order.

Regulatory Flexibility Act

    It is hereby certified that this proposed regulation will not have 
a significant economic impact on a substantial number of small 
entities. The proposed regulations are necessary to implement the 
President's June 11, 1997, announcement of firearms initiatives 
intended to protect the American public from gun violence. The notices 
and signs that are proposed in this document would be provided free of 
charge by the Government to Federal firearms licensees. Licensees may 
choose to provide the required written notice in another format; 
however, they always have the option of using the notices provided by 
ATF. Moreover, any new requirement relating to the posting of signs and 
the distribution of notices would place only a minimal burden on 
firearms licensees. Accordingly, a regulatory flexibility analysis is 
not required.

Paperwork Reduction Act

    The provisions of the Paperwork Reduction Act of 1995, 44 U.S.C. 
chapter 35, and its implementing regulations, 5 CFR part 1320, do not 
apply to this notice of proposed rulemaking because no new reporting or 
recordkeeping requirements are proposed.

Public Participation

    ATF requests comments on the notice of proposed rulemaking from all

[[Page 45365]]

interested persons. Comments received on or before the closing date 
will be carefully considered.
    Comments received after that date will be given the same 
consideration if it is practical to do so, but assurance of 
consideration cannot be given except as to comments received on or 
before the closing date.
    ATF will not recognize any material in comments as confidential. 
Comments may be disclosed to the public. Any material the commenter 
considers to be confidential or inappropriate for disclosure to the 
public should not be included in the comment. The name of the person 
submitting a comment is not exempt from disclosure.
    Any interested person who desires an opportunity to comment orally 
at a public hearing should submit his or her request, in writing, to 
the Director within the 90-day comment period. The Director, however, 
reserves the right to determine, in light of all circumstances, whether 
a public hearing is necessary.

Disclosure

    Copies of this notice and the written comments received will be 
available for public inspection during normal business hours at: ATF 
Public Reading Room, Room 6480, 650 Massachusetts Avenue, N.W., 
Washington, DC.

Drafting Information

    The author of this document is Marsha D. Baker, Regulations Branch, 
Bureau of Alcohol, Tobacco and Firearms.

List of Subjects in 27 CFR Part 178

    Administrative practice and procedure, Arms and ammunition, 
Authority delegations, Customs duties and inspections, Exports, 
Imports, Military personnel, Penalties, Reporting requirements, 
Research, Seizures and forfeitures, and Transportation.

Authority and Issuance

    27 CFR Part 178--Commerce in Firearms and Ammunition is amended as 
follows:
    Paragraph 1. The authority citation for 27 CFR Part 178 continues 
to read as follows:

    Authority: 5 U.S.C. 552(a); 18 U.S.C. 847, 921-930; 44 U.S.C. 
3504(h).

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


Sec. 178.103  Posting of signs and written notification to purchasers 
of handguns.

    (a) Each licensed importer, manufacturer, dealer, or collector who 
delivers a handgun to a nonlicensee shall provide such nonlicensee with 
written notification as described in paragraph (b) of this section.
    (b) The written notification required by paragraph (a) of this 
section shall state as follows:
    (1) Federal law prohibits, except in certain limited circumstances, 
anyone under 18 years of age from knowingly possessing a handgun, or 
any person from transferring a handgun to a person under 18;
    (2) A violation of the prohibition against transferring a handgun 
to a person under the age of 18 is, under certain circumstances, 
punishable by up to 10 years in prison;
    (3) Handguns are a leading contributor to juvenile violence and 
fatalities; and
    (4) Safely storing and locking handguns away from children can help 
ensure compliance with Federal law.
    (c) This written notification shall be delivered to the nonlicensee 
on ATF I 5300.(xx), or in the alternative, the same written 
notification may be delivered to the nonlicensee on another type of 
written notification, e.g., a manufacturer's or importer's brochure 
accompanying the handgun, a manufacturer's or importer's operational 
manual accompanying the handgun, a sales receipt or invoice, or a label 
or sticker applied to the handgun package or container delivered to a 
nonlicensee. Any written notification delivered to a nonlicensee other 
than on ATF I 5300.(xx) shall be legible, clear, and conspicuous and 
shall be no smaller than 10-point type.
    (d) Except as provided in paragraph (e) of this section, each 
licensed importer, manufacturer, or dealer who delivers a handgun to a 
nonlicensee shall display at its licensed premises (including temporary 
business locations at gun shows) a sign (ATF I 5300.(xx)), containing 
the written notification prescribed by paragraph (b) of this section. 
The sign shall be displayed where customers can readily see it. 
Licensed importers, manufacturers, and dealers will be provided with 
such signs by ATF. Replacement signs may be requested from the ATF 
Distribution Center, P.O. Box 5950, Springfield, Virginia 22150-5950.
    (e) The sign required by paragraph (d) of this section need not be 
posted on the premises of any licensed importer, manufacturer, or 
dealer whose only dispositions of handguns to nonlicensees are to 
nonlicensees who do not appear at the licensed premises and the 
dispositions otherwise comply with the provisions of this part.

    Signed: August 1, 1997.
John W. Magaw,
Director.

    Approved: August 11, 1997.
John P. Simpson,
Deputy Assistant Secretary (Regulatory, Tariff and Trade Enforcement).
[FR Doc. 97-22875 Filed 8-22-97; 4:20 pm]
BILLING CODE 4810-31-P