Definition of “Engaged in the Business” as a Dealer in Firearms

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The Department of Justice ("Department") proposes amending Bureau of Alcohol, Tobacco, Firearms, and Explosives ("ATF") regulations to implement the provisions of the Bipartisan Safer Communities Act ("BSCA"), effective June 25, 2022, that broaden the definition of when a person is considered "engaged in the business" as a dealer in firearms other than a gunsmith or pawnbroker. This proposed rule incorporates the BSCA's definition of "predominantly earn a profit," creates a stand-alone definition of "terrorism," and amends the definitions of "principal objective of livelihood and profit" and "engaged in the business" to ensure each conforms with the BSCA's statutory changes and can be relied upon by the public. The proposed rule also clarifies what it means for a person to be "engaged in the business" of dealing in firearms, and to have the intent to "predominantly earn a profit" from the sale or disposition of firearms. In addition, it clarifies the term "dealer," including how that term applies to auctioneers, and defines the term "responsible person." These proposed changes would assist persons in understanding when they are required to have a license to deal in firearms. Consis