[Federal Register Volume 91, Number 89 (Friday, May 8, 2026)]
[Proposed Rules]
[Pages 25432-25447]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-09182]



[[Page 25431]]

Vol. 91

Friday,

No. 89

May 8, 2026

Part II





Department of Justice





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Bureau of Alcohol, Tobacco, Firearms, and Explosives





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27 CFR Part 478





Revising Firearms Transaction Record, ``Form 4473'': Proposed Rule; 
Agency Information Collection Activities; Proposed eCollection 
eComments Requested; Revision of a Previously Approved Collection; 
Firearms Transaction Record--ATF Form 5300.9 and 5300.9A (``Form 
4473''); Notice

Federal Register / Vol. 91, No. 89 / Friday, May 8, 2026 / Proposed 
Rules

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DEPARTMENT OF JUSTICE

Bureau of Alcohol, Tobacco, Firearms, and Explosives

27 CFR Part 478

[Docket No. ATF-2026-0001; ATF 2025R-01P]
RIN 1140-AA82


Revising Firearms Transaction Record, ``Form 4473''

AGENCY: Bureau of Alcohol, Tobacco, Firearms, and Explosives, 
Department of Justice.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Bureau of Alcohol, Tobacco, Firearms, and Explosives 
(``ATF'') is proposing to amend Department of Justice (``Department'') 
regulations governing ATF Form 5300.9, Firearms Transaction Record, 
(``Form 4473''). Specifically, ATF proposes streamlining identity and 
residence verification requirements and documents; doubling the 
performance timeframe for transactions under Form 4473 following a 
National Instant Criminal Background Check System (``NICS'') check; 
permitting electronic forms and notice, auto-populating, and attached 
copies; addressing private party transfers and firearms handler checks; 
incorporating ATF rulings and other guidance; further aligning 
regulations with statutory text; and making minor technical revisions.

DATES: Comments must be submitted in writing, and must be submitted on 
or before (or, if mailed, must be postmarked on or before) August 6, 
2026. Commenters should be aware that the federal e-rulemaking portal 
comment system will not accept comments after midnight Eastern Time on 
the last day of the comment period.

ADDRESSES: You may submit comments, identified by RIN 1140-AA82, by 
either of the following methods--
     Federal e-rulemaking portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     Mail: ATF Rulemaking Comments; Mail Stop 6N-518, Office of 
Regulatory Affairs; Enforcement Programs and Services; Bureau of 
Alcohol, Tobacco, Firearms, and Explosives; 99 New York Ave. NE, 
Washington, DC 20226; ATTN: RIN 1140-AA82.
    Instructions: All submissions must include the agency name and 
number (RIN 1140-AA82) for this notice of proposed rulemaking (``NPRM'' 
or ``proposed rule''). ATF may post all properly completed comments 
received from either of the methods described above, without change, to 
the federal e-rulemaking portal, https://www.regulations.gov. This 
includes any personally identifying information (``PII'') or business 
proprietary information (``PROPIN'') submitted in the body of the 
comment or as part of a related attachment they want posted. Commenters 
who submit through the federal e-rulemaking portal and do not want any 
of their PII posted on the internet should omit it from the body of 
their comment and any uploaded attachments that they want posted. If 
online commenters wish to submit PII with their comment, they should 
place it in a separate attachment and mark it at the top with the 
marking ``CUI//PRVCY.'' Commenters who submit through mail should 
likewise omit their PII or PROPIN from the body of the comment and 
provide any such information on the cover sheet only, marking it at the 
top as ``CUI//PRVCY'' for PII, or as ``CUI//PROPIN'' for PROPIN. 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. In accordance 
with 5 U.S.C. 553(b)(4), a summary of this rule may be found at https://www.regulations.gov. Commenters must submit comments by using one of 
the methods described above, not by emailing the address set forth in 
the following paragraph.

FOR FURTHER INFORMATION CONTACT: Office of Regulatory Affairs, by email 
at [email protected], by mail at Office of Regulatory Affairs; Enforcement 
Programs and Services; Bureau of Alcohol, Tobacco, Firearms, and 
Explosives; 99 New York Ave. NE, Washington, DC 20226, or by telephone 
at 202-648-7070 (this is not a toll-free number).

SUPPLEMENTARY INFORMATION:

I. Background

    The Attorney General is responsible for enforcing the Gun Control 
Act of 1968 (``GCA''), as amended. This responsibility includes the 
authority to promulgate regulations necessary to enforce the provisions 
of the GCA.\1\ See 18 U.S.C. 926(a). Congress and the Attorney General 
have delegated the responsibility for administering and enforcing the 
GCA to the Director of ATF (``Director''), subject to the direction of 
the Attorney General and the Deputy Attorney General. See 28 U.S.C. 
599A(b)(1), (c)(1); 28 CFR 0.130(a)(1)-(2); Treas. Order No. 221(2)(a), 
(d), 37 FR 11696-97 (June 10, 1972).\2\ Accordingly, ATF has 
promulgated regulations to implement the GCA in 27 CFR part 478.
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    \1\ Some GCA provisions still refer to the ``Secretary of the 
Treasury.'' However, the Homeland Security Act of 2002, Public Law 
107-296, 116 Stat. 2135, transferred the functions of ATF from the 
Department of the Treasury to the Department of Justice, under the 
general authority of the Attorney General. 26 U.S.C. 7801(a)(2); 28 
U.S.C. 599A(c)(1). Thus, for ease of reference, this proposed rule 
refers to the Attorney General where relevant.
    \2\ In Attorney General Order Number 6353-2025, the Attorney 
General delegated authority to the Director to issue regulations 
pertaining to matters within ATF's jurisdiction, including under the 
GCA, National Firearms Act, and Title XI of the Organized Crime 
Control Act. ATF's jurisdiction also includes those portions of sec. 
38 of the Arms Export Control Act pertaining to the permanent import 
of defense articles and defense services and the Contraband 
Cigarette Trafficking Act.
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    The GCA prohibits certain persons from shipping, transporting, 
receiving, or possessing firearms. All persons, including federal 
firearms licensees (``FFLs'' or ``licensees''), are prohibited from 
transferring firearms to persons prohibited under the law from 
possessing firearms. FFLs, as well as non-licensed sellers, are also 
subject to other restrictions regarding disposing of a firearm to an 
unlicensed person under the GCA. For example, a person may be 
prohibited from receiving a firearm based upon the person's age or 
residence state.
    Prior to transferring a firearm, FFLs must determine if non-
licensed transferees/buyers may lawfully receive the firearm. See 18 
U.S.C. 922(b)-(d); 27 CFR 478.99. In addition, FFLs are generally 
required to conduct background checks--through the Federal Bureau of 
Investigation's (``FBI's'') National Instant Criminal Background Check 
System (``NICS'')--on prospective firearm recipients to prevent 
prohibited persons from receiving firearms and to maintain transaction 
records for crime-gun tracing purposes. See 18 U.S.C. 922(t), 
923(g)(1)(A). FFLs may do the background check directly through NICS or 
through a state point of contact (``POC''), depending on the 
requirements of the state in which the FFL has its business premises.
    Within ATF's implementing regulations, Sec.  478.124, Firearms 
transaction record, implements these statutory requirements for FFLs 
and establishes Form 4473 as the means by which to meet these 
requirements. Currently, licensees use Form 4473 for firearm transfers 
when the seller is licensed under 18 U.S.C. 923 and the transferee is 
an unlicensed person, or when the FFL is facilitating a private-party 
transfer between two unlicensed persons.

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    The information and certification requested on Form 4473 are 
designed so that the FFL may determine if it may lawfully sell or 
deliver a firearm to the non-licensed transferee listed on the form, 
and to alert the transferee of certain restrictions about receiving and 
possessing firearms. See 27 CFR 478.124. The form also serves FFLs as a 
way to ensure they have the information required for the NICS 
background check and as a record that they collected the necessary 
information and performed the requisite checks to comply with the law 
and implementing regulations. Currently, FFLs complete section A of 
Form 4473 by recording identifying information for the firearm(s) the 
transferee is acquiring. The transferee completes section B to 
determine if they are eligible to receive the firearm. If those answers 
indicate that the transferee is not prohibited from receiving a 
firearm, the FFL completes section C and contacts NICS or, if 
applicable, their POC \3\ to determine if the firearm can be legally 
transferred to the transferee/buyer. ATF also uses the information on 
the form to conduct firearm traces when requested by law enforcement 
officers.
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    \3\ In states that are POC jurisdictions, when an FFL initiates 
a background check through the POC, the POC transmits the request 
for background check via the FBI's National Crime Information Center 
(``NCIC'') which interfaces with NICS, rather than the licensee 
contacting NICS directly. See, e.g., 28 CFR 25.6(d).
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II. Proposed Rule

    If this rule is finalized as proposed, it would supersede ATF 
Rulings 2001-5, 2016-2, 2022-1, Procedure 2020-1, and 2020-2.\4\
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    \4\ ATF Ruling 2001-5, Identification of Transferee, https://www.atf.gov/firearms/docs/ruling/2001-5-identification-transferee/download [https://perma.cc/54LN-JSKB]; ATF Ruling 2016-2, Electronic 
ATF Form 4473, https://www.atf.gov/firearms/docs/ruling/2016-2-%E2%80%93-electronic-atf-form-4473/download [https://perma.cc/8JP3-2FN5]; ATF Ruling 2022-1, Electronic Storage of Forms 4473, https://www.atf.gov/firearms/docs/ruling/2022-01-electronic-storage-forms-4473pdf/download [https://perma.cc/7GXS-724Q]; ATF Ruling, Procedure 
2020-1, Record-keeping Procedure for Non-Over-the-Counter Firearm 
Sales by Licensees to Unlicensed in-State Residents That Are NICS 
Exempt, https://www.atf.gov/rules-and-regulations/docs/ruling/atf-proc-2020-1-%E2%80%93-recordkeeping-procedure-non-over-counter-firearm/download [https://perma.cc/C2NR-7LA4]; and ATF Ruling 2020-
2, Record-keeping and Background Check Procedure for Facilitation of 
Private Party Firearms Transfers, https://www.atf.gov/rules-and-regulations/docs/ruling/atf-proc-2020-2-%E2%80%93-recordkeeping-and-background-check-procedure/download [https://perma.cc/WE9M-AAZ8].
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    In conjunction with this proposed rule, ATF is also proposing 
significant revisions to Form 4473 itself (which would include the 
electronic version). The form is being revised through the normal 
Paperwork Reduction Act process, and it is being published concurrently 
with this rule in the Federal Register as an information collection 
under Office of Management and Budget (``OMB'') control number 1140-
0020, with a 60-day public comment period. After the public comment 
period for the notice and Form 4473 ends, ATF will address the comments 
and publish the information collection for a second notice, open for 30 
days of additional public comments to OMB. Thereafter, OMB will review 
the information collection renewal request and determine whether to 
approve the proposed changes.
    In addition, in conjunction with this proposed rule, ATF would 
update references to approved information collection requests within 
the sections the would be revised by this rule.

A. State of Residence and County, Political Subdivision, or City Limits

1. Definition of ``Identification Document''
    The GCA, throughout 18 U.S.C. 922, establishes certain requirements 
or limits certain activities on the basis of the state in which a 
person resides. For example, with certain exceptions, section 922(b)(3) 
makes it unlawful for an FFL to sell or deliver a firearm to a person 
who does not reside in (or, if a business entity, does not maintain a 
place of business in) the state in which the FFL's place of business is 
located. But one exception allows in-person sale of shotguns or rifles 
to a resident of another state if the sale does not violate the laws of 
either state. As a result, FFLs must determine in which state 
prospective transferees reside. Similarly, FFLs are required by section 
922(b)(5) to record in their official firearms transaction records the 
buyer's place of residence (or equivalent information if the person is 
a business entity).
    Therefore, ATF regulations at 27 CFR part 478 include requirements 
for FFLs to obtain information on the state in which a person resides. 
ATF's regulations at Sec.  478.11 currently define an ``identification 
document,'' in part, as a document that contains the holder's name, 
residence address, birthdate, and photograph. The identification 
document under this definition thus provides a source by which an FFL 
may verify both the person's identity and place (including state) of 
residence. However, it is not necessary for the identification document 
itself to serve both purposes. Under the statute, the identification 
document must include a photograph and be government-issued to serve 
identity verification purposes. 18 U.S.C. 922(t)(1)(D). Other 
documents, however, can be used to verify a person's residence, and in 
certain circumstances might be more accurate. For example, a member of 
the Armed Forces, a student studying out of state, or a person with two 
residences may have multiple states of residence for purposes of the 
GCA. In these circumstances, ATF has held that a person's residence 
state is the place where the person is actually living when the 
firearms transaction occurs. See ATF Ruling 2001-5.\5\ But such 
individuals are likely to have driver's licenses, voter registrations, 
and car registrations from the states in which they are domiciled 
rather than their second residence address where they are stationed or 
attending school.
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    \5\ See footnote 4, supra, ATF Ruling 2001-5.
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    The current requirements narrowly restrict acceptable documents for 
proving residence, but the included documents need to be updated to 
align with recent technological and identification developments. To 
prove residence when a person has multiple residences (or otherwise 
needs to prove residence), ATF has accepted a combination of documents, 
but only if those documents are government-issued. Id. Thus, ATF 
accepts a recreation identification card or a fishing or hunting 
license issued by the government, even though not all issuing 
authorities verify a person's residence before issuing the document. On 
the other hand, ATF does not accept leases, telephone bills, or 
statements from financial institutions, even though these documents 
often provide the best primary evidence of residence and are routinely 
the evidentiary basis upon which state governments list a person's 
address on the driver's license or state identification card. 
Currently, ATF does accept a utility bill, but only if the utility is 
run by a government agency.
    As a result, ATF is proposing to amend the ``identification 
document'' requirements in Sec.  478.11 to align with the statutory 
requirements for verifying identity, and to allow an individual to use 
an updated set of non-government-issued documents in Sec.  478.124 as 
primary evidence of residence, such as leases and utility bills. The 
statute requires that a person provide ``a valid identification 
document'' for transactions subject to the NICS check provisions. 18 
U.S.C. 922(t)(1)(D). An identification document is defined elsewhere as 
a document made or issued by or under the authority of ``the United 
States Government, a state,

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political subdivision of a State, a sponsoring entity of an event 
designated as a special event of national significance, a foreign 
government, political subdivision of a foreign government, an 
international governmental or an international quasi-governmental 
organization'' that must be of a type intended or commonly accepted for 
the purpose of identifying individuals when it is completed with 
information on a particular individual. 18 U.S.C. 1028(d)(3). Notably, 
that definition does not require the identification document to have a 
person's residence address, and many common identification documents 
(e.g., passports) lack that information. Consequently, ATF is proposing 
to remove the words ``residence address'' from this definition, as a 
residence address is not required by the statute. The definitions do 
require that the identification document include a photo, so ATF is 
also proposing to add the word ``photo'' to the definition's title to 
help clarify this point and make it easier for persons to recognize the 
difference between documents for identity and documents for residence. 
Individuals could use a photo identification document to establish both 
identity and residence if the document includes their residence 
address, but they would no longer be required to do so. This would 
expand photo identification options to include those--like passports--
that do not include the holder's residence address. As discussed below, 
ATF will still require proof of residence when a photo identification 
document lacks a residence address. But contrary to prior practice, ATF 
will allow primary and best evidence to prove residence, including 
leases, utility bills, and financial institution statements.
    Due to advancements in technology, some states have begun issuing 
digital forms of photo identification documents. As a result of these 
developments, and in response to requests from industry, ATF is also 
adding digital identification documents to this definition if they are 
issued by one of the listed government or quasi-government authorities 
and if the state in which the licensee's business premises is located 
allows such digital documents as a commonly accepted document for 
identification purposes. ATF is also proposing to change the term from 
``identification document'' to ``photo identification document'' as 
described below in section II.D.4 of this preamble.
2. Definition of ``State of Residence''
    Section 478.11 also defines ``state of residence'' as the state in 
which an individual resides. This definition clarifies that individuals 
reside in a state if they are present and intend to make a home there. 
The GCA requires only residence; a person may be a resident of a state 
for purposes of the GCA even if the person is not domiciled in the 
state. It further clarifies that, if individuals are members of the 
Armed Forces, their residence state is the state in which their 
permanent duty station is located, as stated in 18 U.S.C. 921(b). ATF 
has also stated that, if members of the Armed Forces maintain a home in 
one state and their permanent duty station is in a nearby state to 
which they commute each day, then the members have two states of 
residence and may, under federal law, purchase a firearm in either 
state. See ATF Licensee Quick Reference and Best Practices Guide, ATF 
Publication 5300.15, at p. 198 (2014). For example, if a military 
member is assigned to a base in North Carolina but lives in South 
Carolina, the member may purchase firearms in both states. However, 
this military-related information is not reflected in the regulatory 
definition.
    ATF therefore proposes to amend the Sec.  478.11 definition of 
``state of residence.'' First, ATF proposes changing the term to 
``residence state'' for plain writing purposes. Second, to avoid any 
confusion about applying the definition in military-related situations, 
ATF proposes to change, in the sentence about members of the Armed 
Forces, the phrase ``state of residence is'' to the phrase ``residence 
states include.'' Thus, for persons in the Armed Forces, their 
residence state would ``include the state in which their permanent duty 
station is located.'' The word ``is'' could mistakenly suggest that a 
military member's residence state is limited to only that state. 
Substituting the word ``includes'' for ``is'' avoids any such 
implication. ATF is also proposing to add more examples in the 
definition to add clarity for Armed Forces personnel.
3. Political Subdivision, County, and City Limits Information on Form 
4473
    ATF is proposing additional revisions to Sec.  478.124(c)(1) that 
would make corresponding changes--resulting from the definitional 
changes described above--to the information elements that must be 
included on Form 4473. These proposed revisions would remove the 
requirements to include county and whether a person lives within city 
limits. Individuals would still enter their full residential address. 
See section II.D.2 of this preamble for detailed discussion of these 
proposed changes.

B. Amendments to Sec.  478.102, Sales or Deliveries of Firearms

1. Time Limitation for Transactions Using Completed Form 4473
    Federal regulations require that a licensee initiate a NICS check 
(if one is required) when a potential transferee and the licensee 
complete the initial portions of Form 4473, in accordance with Sec.  
478.124 and instructions on the form. Form 4473 may be used for only a 
single transaction, and for 30 calendar days from the date the parties 
complete the initial portions of the form and the licensee initiates 
the background check with NICS. The regulations therefore also provide 
that the initiated Form 4473 and its accompanying NICS check may be 
relied upon by an FFL only for use in a single transaction, and only 
for a period not to exceed 30 calendar days from the date that the Form 
4473 was initiated and the FFL initially contacted NICS. If the 
transaction is not completed within the 30-day period, the licensee 
must complete a new form and initiate a new NICS check prior to 
completing the transfer. 27 CFR 478.102(c).
    Several circumstances also narrow the effective time period in 
which a person can retrieve a firearm after purchasing. For example, 
some states require FFLs to delay transactions for a longer period than 
the minimum 3-day (or ten-day, if the transaction involves a person 
under 21 years old) federal delay or until the FFL has received a 
response from NICS. Additionally, based on data from ATF records, while 
an average of 91 percent of transactions receive an instant response 
from NICS (based on NICS numbers for 2022-2024), some require more 
time.
    Internal records also show that the 30-day time limit is causing 
many technical violations for FFLs. Over the past five years, 619 
inspections have recorded 1,050 violations of the 30-day rule. This 
Sec.  478.102(c) technical violation, which has been cited among other 
substantive violations, contributed to revoking 95 federal firearms 
licenses, with another 237 FFLs receiving warning conferences. Of the 
1,050 violations, 78 percent were within two calendar months of the 
original check.
    As a result, ATF is proposing to extend the time period during 
which an initiated Form 4473 and its accompanying NICS background check 
would continue to be valid for a purchase, from the current 30 days to 
two months. ATF does not believe that extending the validity of Form 
4473 and

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its accompanying NICS check by approximately one more month will 
adversely impact public safety. In theory, there is a risk that a 
person could become prohibited between the first and second months 
after the background check, and there are no available statistics for 
how many purchasers who lawfully purchase firearms become prohibited 
persons between the first and second month after purchasing. But ATF 
has no evidence (even anecdotal evidence) suggesting that the risk is 
high. The proposed two-month validity of Forms 4473 and accompanying 
NICS checks is also far shorter than the Brady Act's provision for 
alternative permits, which can remain valid for up to five years from 
the date they were issued. 18 U.S.C. 922(t)(3)(A)(i)(II). Given that an 
additional month will prevent the majority of regulatory violations for 
stale forms and NICS checks, ATF thinks the two-month period strikes a 
better balance between avoiding unnecessary regulatory violations while 
preserving public safety.
    In addition, ATF is proposing to simplify the method used to 
calculate this time period to avoid confusion that has, in the past, 
led to inadvertent mistakes. Specifically, this rule proposes to amend 
Sec.  478.102(c) to replace the phrases ``30 calendar days'' and ``30-
day'' with ``two calendar months'' and ``two-month.'' This essentially 
doubles the length of time in which the transaction can occur once NICS 
has been contacted. It will also prevent errors calculating time 
periods that are caused by calendar months having different numbers of 
days.
    To calculate two months, FFLs will use the same date on which they 
and the transferees complete the initial Form 4473 sections and the 
FFLs contact NICS to initiate the background check, such as the 4th, 
but apply it in the second month after the month in which they initiate 
the form. So, if the FFL and transferee complete the initial form steps 
and the FFL contacts NICS on June 4, the transaction can be completed 
through August 4 without initiating a new form and a new NICS check. 
Likewise, if the FFL and transferee complete the initial form steps and 
the FFL contacts NICS on February 4, the FFL can complete the 
transaction through April 4.
    The only potential sources of confusion under this proposed 
calculation method are forms and NICS contacts initiated at the end of 
December and July because the second month thereafter does not have the 
same number of days. Thus, ATF is clarifying that--under this proposed 
rule--if the FFL and transferee complete the initial form steps and the 
FFL contacts NICS on December 29, 30, or 31, the licensee can complete 
the relevant transaction through the last day of the following February 
(February 28 or, in a leap year, February 29) without requiring a new 
form and NICS check. Similarly, if the FFL and transferee complete the 
initial form steps and the FFL contacts NICS on July 31, the licensee 
can complete the relevant transaction through September 30.
    To facilitate this change, the proposed rule also includes 
clarifying language in paragraph (c) to better show the relationship 
between Form 4473 and the NICS check, including a cross-reference to 
Sec.  478.124 (which requires a Form 4473 for transfers to non-
licensees along with the NICS check), and to reduce any confusion about 
whether the time limitation applies only to the background check or to 
both the check and the form that triggers it. In addition, the rule 
proposes to update Example 3 for paragraph (c) to more clearly 
illustrate the time limitation. Finally, ATF is proposing minor 
technical changes to update the years used in all the examples for 
paragraph (c) from 1998 or 1999 to 2024 or 2025, as the dates are more 
than 25 years old, and to make other minor technical edits in Sec.  
478.102(c) to improve readability.
2. Exceptions to NICS Background Checks
    The proposed rule amends Sec.  478.102(e) to add the paragraph 
heading ``Documenting an exception to NICS check'' to make it 
structurally consistent with the rest of part 478, comply with CFR 
requirements, and identify the topic within the paragraph.
    ATF is issuing a separate proposed rule on amending subsection (d), 
governing Brady alternative permits.

C. Amendments to Sec.  478.96, Non-Over-the-Counter Transfers

    ATF is proposing to revise and restructure Sec.  478.96 to break up 
the long paragraph in Sec.  478.96(b) to make it easier to read and to 
help better identify the requirements for non-over-the-counter 
(``NOTC'') transfers (when a licensee transfers a firearm to an 
unlicensed person who does not appear in person at the licensee's 
business premises). These changes would include revising the 
applicability provisions in paragraph (a) to clarify when NOTC 
transfers may occur. It would also keep the requirements for conducting 
a NOTC transfer in paragraph (b) but would move the requirements for 
subsequent notice to law enforcement into paragraph (c) for easier 
reading. The rule then proposes redesignating the current paragraph (c) 
content on out-of-state transfers as paragraph (d). ATF is also 
proposing to revise the section heading to bring it up to date by 
removing the reference to mail order transactions and to reflect the 
order of the topics covered in the section. The rule also proposes 
minor plain language revisions, sub-divisions, and adding clarifying 
paragraph headings throughout the section.
    In addition, ATF is proposing to amend the notification 
requirements currently in Sec.  478.96(b). Currently, under the GCA at 
18 U.S.C. 922(c), licensees conducting a NOTC firearms transfer must 
mail a copy of Form 4473 to the chief law enforcement officer 
(``CLEO'') in the jurisdiction in which the transferee resides, to 
notify the CLEO of the prospective transfer. Licensees must wait seven 
days after receiving a return receipt or notice of failed delivery from 
the U.S. Postal Service before they can ship or deliver the firearm to 
the transferee. 18 U.S.C. 922(c). ATF implemented these statutory 
requirements in Sec.  478.96(b). However, in December 2024, Congress 
amended 18 U.S.C. 922(c) \6\ to permit licensees to electronically 
notify the CLEO and verify that the CLEO received the Form 4473 prior 
to shipping the firearm to the transferee. This rule proposes to 
include this change in the regulations under Sec.  478.96(b) (which 
would now be under Sec.  478.96(c) under this rule's proposed 
restructuring) by adding the option to electronically submit the notice 
and receive confirmation from the CLEO. In addition, this rule proposes 
clarifying information on what to do when delivery fails, as that was 
implicit in the existing regulation but is less clear with electronic 
notice included. ATF proposes to add that, if delivery fails but is not 
refused, the licensee must take appropriate steps to resolve the 
situation until they receive the required return receipt, response, or 
refusal, or not complete the transaction. Such actions could include 
requesting corrected contact information from the transferee, looking 
up the CLEO's email address online, calling the CLEO to get correct 
contact information, etc.
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    \6\ Servicemember Quality of Life Improvement and National 
Defense Authorization Act for Fiscal Year 2025, Sec.  5211, Public 
Law 118-159, 138 Stat. 1773, 2444 (Dec. 23, 2024) (``NDAA 2025'').
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    ATF also proposes to change this section to incorporate and rescind 
ATF Ruling 2020-1.\7\ This procedural ruling provided guidance to 
licensed importers, manufacturers, and dealers

[[Page 25436]]

on completing Form 4473 and recording sales when selling to an 
unlicensed person in a NICS-exempt transaction. This rule proposes to 
reflect these procedures in Sec.  478.96(b).
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    \7\ See footnote 4, supra, ATF Procedure 2020-1
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D. Amendments to Sec.  478.124, Firearms Transaction Records

1. Restructuring Sec.  478.124
    ATF proposes to structurally revise Sec.  478.124, which addresses 
the firearms transaction record, to make it easier for people to 
follow. To that end, ATF is proposing to add paragraph headings to 
better identify topics of interest and to break apart longer paragraphs 
into sub-paragraphs. In addition, ATF is proposing to consolidate the 
content into the following paragraphs:
    (a) Overall requirement and exceptions--which contains the existing 
requirement that FFLs must use Form 4473 for all firearms transactions, 
with certain exceptions, and includes those exceptions. ATF is also 
proposing to update the exceptions for clarity and readability.
    (b) Transfers to other FFLs--which contains the existing provision 
on such transfers;
    (c) Transfers to in-state residents--which combines the existing 
requirements for completing Forms 4473 that are common to both over-
the-counter and NOTC transactions, thereby removing duplicative 
provisions and making it easier for people to determine what 
information they must provide and steps they must follow. This 
paragraph also incorporates updates to Sec.  478.96 on notices to law 
enforcement in NOTC transactions described in section II.C of this 
preamble.\8\ This paragraph also groups together what information 
licensees must gather from purchasers--including the current paragraph 
(g), on who should provide such information for a purchaser that is not 
an individual--and the verification steps the FFLs must follow 
thereafter. In addition, this paragraph includes proposed sub-
paragraphs that distinguish between verifying identity and verifying 
residence, in line with the proposed changes discussed in earlier parts 
of this preamble.
---------------------------------------------------------------------------

    \8\ ATF notes that it is publishing another proposed rule, 
``Revising Non-Over-the-Counter Transaction Requirements,'' that 
proposes additional revisions to Sec.  478.96. Section 478.96 
currently permits NOTC transfers that are NICS-exempt. The proposed 
rule would permit and set out requirements for NOTC that are subject 
to NICS background checks. It would also include proposed cross-
references to sections in this Form 4473 proposed rule, to both 
Sec. Sec.  478.96 and 478.124. ATF expects to publish final rules on 
both at about the same time.
---------------------------------------------------------------------------

    The proposed rule would also amend paragraph (c) to no longer 
require that FFLs include verification document information on Form 
4473. While licensees may still re-write all such information (type of 
document, date issued, date expired, document number) by hand on Form 
4473, ATF proposes adding a new sub-paragraph that also allows them to 
copy the document and attach the copy directly to Form 4473.
    The proposed paragraph (c) would also remove the requirement that 
licensees certify that they do not know or have reason to believe the 
transferee intends to sell or dispose of the firearm to a prohibited 
person or intends to use the firearm in furtherance of a felony, 
terrorism, or drug trafficking. ATF proposes removing this 
certification because it is covered under the proposed new Form 4473's 
FFL general certification. In relevant part, the licensee certifies 
that ``it is not unlawful for me to sell, deliver, transport, or 
otherwise dispose of the firearm(s) listed on this form.'' Retaining 
the additional certification requirement described above is 
unnecessary, redundant, and refers to only a single potential violation 
of law in a firearms transaction. Form 4473 does not identify every 
potential violation of law in a firearms transaction, so specifying one 
for certification is unnecessary and could lead to misunderstandings 
about whether licensees are certifying to only this one;
    (d) Transfers to out-of-state residents--which contains the 
existing provisions itemizing the two types of transfers an FFL can 
make to out-of-state residents and clarifies that both must be made in 
compliance with paragraph (c). ATF also proposes streamlining edits to 
these provisions to remove duplicative language;
    (e) Private-party transfers--which contains proposed new language 
on how FFLs can use Form 4473 to effectuate a NICS background check for 
a firearm transfer between two unlicensed persons (private parties). 
ATF proposes that licensees check a box at the top of the form to 
indicate that the form will be used for this purpose, which in turn 
would immediately inform ATF and the licensee that the form would not 
be subject to inspection by ATF.\9\ Although not included in this 
proposed rule because it is included in another notice of proposed 
rulemaking on retention periods, ATF would also require licensees to 
generally retain Forms 4473 used for private party transfers for 90 
days, which corresponds with the period of time until the NICS system 
purges transaction information. During that period, NICS can research a 
``delayed'' response and potentially resolve the check, so retaining 
the forms for that period could permit additional sales for checks that 
are delayed. But if the background check results in a ``denied'' 
response from NICS, licensees would retain the denied Form 4473 for 
five years. This reflects the statute of limitations for unlawful 
possession and making a false statement and also provides adequate time 
for any state prosecutions.
---------------------------------------------------------------------------

    \9\ ATF notes that licensees must conduct private-party 
transfers in accordance with this proposed rule and a pending 
upcoming FBI rule for such purposes. Although ATF would not 
routinely inspect Forms 4473 that are used for private-party 
transfers, ATF retains the authority to review the forms if needed 
within the 90-day period to clarify regulatory compliance. For 
example, ATF might need to clarify that a NICS check entry on an 
audit log from FBI correlates with the number on a private-party 
transfer form so the licensee does not appear to have run a NICS 
check without completing a Form 4473, or might need to see the 
private-party form to clarify that the licensee did not transfer a 
firearm without running a background check or completing a Form 
4473.
---------------------------------------------------------------------------

    Licensees may also need to comply with state law record-keeping 
requirements independently. ATF also includes proposed language to 
inform the licensee that they would still need to comply with paragraph 
(c) to ensure they have the necessary information to initiate a valid 
NICS check. If these rules are finalized, licensees could use Form 4473 
to facilitate a private-party background check only if they do not take 
possession of the firearm and, thus, are not selling or delivering a 
firearm to the transferee;
    (f) Voluntary firearms handler checks (``FHCs'')--which contains 
proposed new language on how licensees can use Form 4473 to effectuate 
a NICS background check on current or prospective FFL employees who 
would be handling firearms. The Department, through the FBI, are 
calling these background checks FHCs. ATF proposes that licensees check 
a box at the top of the form to indicate that the form will be used for 
an FHC, which in turn would immediately inform ATF and the licensee 
that the form would not be subject to inspection. Although not included 
in this proposed rule because it is included in another ATF notice of 
proposed rulemaking on retention periods, licensees would retain Forms 
4473 used for this purpose for 90 days, which corresponds with the 
period of time until the NICS system purges transaction information. 
During that period, NICS can research a ``delayed'' response and 
potentially resolve the check, so retaining the forms for that period 
could permit additional resolution for employees. ATF also includes 
proposed language to inform

[[Page 25437]]

the licensee and employee that they would still need to comply with 
paragraph (c) except that they would not need to include information on 
firearms, since the employee would not be purchasing firearms as part 
of this activity. The licensee would also need to attach a supplemental 
statement to Forms 4473 used for this purpose, demonstrating that the 
employee gave informed, written consent for the FHC. See 34 U.S.C. 
40901(b)(2)(B);
    (g) Proving residence--which contains a new list of documents 
purchasers may provide to prove they are residents of the state 
(described in more detail below);
    (h) Electronic Forms 4473--which permits licensees to use 
electronic Forms 4473 and includes Form 4473-specific requirements from 
previous ATF rulings, in addition to requiring licensees to comply with 
electronic record-keeping system standards in a new Sec.  478.130, 
which is concurrently being proposed in a separate rulemaking. The 
proposed section includes requirements to use the most current version 
of e-Form 4473, conduct daily back-ups of the forms, including pending 
and incomplete ones, to save e-Forms 4473 in an unalterable format and 
how to effectuate any necessary changes to a form, to print e-Form 4473 
if the electronic signature does not work, and to make the forms 
available to ATF for inspection; and
    (i) Record-keeping organization--which contains the existing 
requirement for licensees to retain their Forms 4473 in either 
alphabetical, chronological, or numerical order.
    ATF is also proposing to remove the current provision at Sec.  
478.124(i), which contains information on ordering forms. This 
provision is obsolete and persons may obtain this and other forms from 
ATF's website at https://www.atf.gov/firearms/forms.
2. Changes in Conjunction With Definitional Changes
    Section 478.124(c)(1) requires that FFLs obtain a Form 4473 from 
the transferee that includes, in relevant part, the transferee's 
``name, sex, residence address (including county or similar political 
subdivision and whether they reside within city limits), . . . [and] 
the transferee's state of residence . . . .'' Form 4473 functions as a 
standardized mechanism by which FFLs collect all information required 
to make a legal transfer and to provide to NICS to facilitate a 
background check.
    The requirement that the form include ``county'' has been in the 
regulations and on the form since 1988, but ``similar political 
subdivision and whether they reside within city limits'' was added 
because of the 2022 NICS Denial Notification Act (``NDNA''), Public Law 
117-103, 136 Stat. 49. The NDNA requires the Attorney General to report 
to the applicable state, local, or tribal law enforcement when NICS 
provides a ``denied'' response to a background check, meaning that it 
would violate the law for that person in their jurisdiction to receive 
a firearm. See 18 U.S.C. 925B. Identifying the subdivision or city 
limits in which a person resides allows ATF to identify the correct law 
enforcement authority to notify. As a result, ATF added this clause to 
the regulation to assist with this notification.
    However, this addition to Form 4473 has led to many inadvertent 
form violations as transferees are often unsure how to answer the 
question or whether they live within formal city limits, in the county, 
or in another political subdivision. Many responses show that 
transferees often misread the word ``county'' as ``country'' as well. 
These issues make administering the form more complex and reduce the 
question's usefulness. In addition, ATF and FBI do not need to have the 
information recorded on the form. There are many online sources that 
can provide necessary information about a person's political 
subdivision using the person's residence address. Using these sources 
will reduce errors and enable the agency to have more accurate 
information. Consequently, there is no investigative need to have the 
transferee record this information.
    Therefore, ATF is proposing to remove the parenthetical from Sec.  
478.124(c)(1) that transferees must include the ``county or similar 
political subdivision and whether they reside within city limits.'' 
Because the FBI, through NICS, may still query the transferee's 
subdivision, there is space on page four for the dealer to record it. 
But this is optional.
    The proposed rule also amends paragraph (c)(1) to remove the phrase 
``the transferee's state of residence'' as one of the required 
information elements on Form 4473. ATF has determined that this no 
longer needs to be a separate item on the form from the person's 
address, which already includes their state. It was included as a 
separate item originally because a person could have multiple homes in 
different states, creating the need for the licensee to identify which 
state was their residence. This also applied in the context of military 
persons who live in a state pursuant to their military duty but also 
maintain their home state as their state of record. But the changes 
discussed in section II.A.2 of this preamble, allowing these persons to 
have multiple residence states under certain circumstances, means that 
the person can record the relevant address to meet both requirements 
and a separate entry is no longer necessary.
3. Auto-Populating Information
    ATF recognizes that ATF Ruling 2016-2 and previous policy decisions 
were incomplete, in that they did not allow auto-populating fields on 
the electronic Form 4473. Accordingly, ATF proposes to add a provision 
to Sec.  478.124, paragraph (c), clarifying that licensees may auto-
populate information on Form 4473. This proposed rule would permit 
software that allows most data to automatically populate. For example, 
a dealer might scan a driver's license, thereby capturing a person's 
name and address. Or a software vendor might link its software to a 
database of addresses, allowing the address to automatically populate 
after a few keystrokes. A dealer might also have a person's information 
from previous transactions. Allowing licensees to auto-populate these 
fields would improve efficiency and eliminate errors caused by entering 
the information manually.
    To allow licensees to auto-populate, the proposed rule requires 
certain safeguards concerning automatically populated data. The 
software must allow the user to view any data that will be populated 
automatically. The user must then certify that the information is 
complete and correct. The user must also have the opportunity to 
override any inaccurate information. For example, if a driver's license 
lacks a person's full name (e.g., ``Smith, John D.''), the person must 
have the opportunity to complete the entry (``Smith, John Doe''). A 
scannable driver's license, as another example, may contain an old 
address, and the jurisdiction that issued the driver's license may have 
issued a non-scannable paper update card. In that circumstance, the 
person must be able to update the address. Similarly, a person with two 
residences may have a driver's license address at one residence and 
separate proofs of residence at the secondary residence. When the 
person buys a firearm while residing in the secondary residence, the 
electronic system must allow the person to enter the present residence 
address.
    ATF had previously issued informal oral guidance to FFLs that they 
were not permitted to automatically populate data. This resulted from 
concerns that it might be difficult to prosecute individuals for making 
false statements if they did not personally enter the data.

[[Page 25438]]

But these concerns are mitigated by these proposed requirements that 
any automatically populated data be clearly presented to the person, 
that the person must be able to revise any incorrect or incomplete 
auto-populated data, and that the person must certify that the data is 
both complete and accurate.
    The regulation would bar some data from being automatically 
populated. Persons must themselves affirmatively enter signatures and 
certifications. Persons must also certify any question addressing 
whether the person is prohibited from possessing or purchasing a 
firearm under 18 U.S.C 922(g) or (n). For example, an electronic 
record-keeping system cannot automatically populate that a person has 
not been convicted of a crime punishable by more than one year. For 
these and similar questions, it must be clear that the person has read 
the statement, understood it, and affirmatively answered it.
4. Proving Residence
    The REAL ID Act,\10\ passed in 2005, established minimum security 
standards for state-issued driver's licenses and identification cards. 
It also prohibited federal agencies from accepting licenses and IDs 
from states that do not meet these standards for official purposes. 
Since May 7, 2025, a REAL ID or another acceptable form of 
identification (such as a passport or military ID) has been required 
for domestic air travel and to access certain federal facilities. For 
this reason, many states have produced lists of acceptable 
identification documents.
---------------------------------------------------------------------------

    \10\ REAL ID Act of 2005, Public Law 109-13 (2005).
---------------------------------------------------------------------------

    ATF proposed above to separate photo identification documents 
necessary to prove a person's identity from documents that can prove 
residence. This was, in part, because photo identification documents to 
prove identity must be issued by a government agency, and some primary 
documents for that purpose, such as passports, do not include a 
residence address. It was also in part because people might have 
multiple residence locations that would meet state and ATF requirements 
for residence, as discussed above. Finally, some of the documents 
included in previous ATF guidance for residence purposes are no longer 
sufficient. As a result, ATF is proposing to include in ATF's 
regulations a list of documents for proving residence that align with 
those accepted by most states for REAL ID compliance purposes.
    Accordingly, this rule proposes to amend Sec.  478.124(c) to 
reflect the change in terminology from ``identification document'' to 
``photo identification document'' to verify a person's identity. In 
addition, this rule proposes to amend Sec.  478.124(c) to account for 
situations in which someone does not have a valid, government-issued 
document with their residence address on it. The proposed new language 
would read, ``verify proof of residence using the photo identification 
document, or the documents listed in paragraph (g) if the photo 
identification document does not contain a residence address or does 
not contain the current residence address that is the basis of the 
firearm purchase.'' The proposed rule adds new paragraph (g) to Sec.  
478.124 to list acceptable alternative documents by which a person may 
prove their residence.
5. Electronic Forms 4473
    Pursuant to 18 U.S.C. 923(g) and regulations, ATF issued ATF Ruling 
2016-2 authorizing FFLs to utilize an electronic version of Form 4473 
in lieu of the ATF-furnished paper version when creating a record of a 
firearm transaction, provided certain requirements are met. 
Additionally, ATF issued ATF Ruling 2022-1 authorizing FFLs to retain 
electronically completed Forms 4473 in electronic format, again 
provided certain requirements were met. Since implementing these 
rulings, a significant number of FFLs have chosen to use electronic 
Forms 4473 and to store forms electronically.
    In issuing these rulings, ATF noted the myriad ways in which using 
an electronic system to complete Forms 4473 would benefit members of 
the regulated firearms industry. Allowing Form 4473 to be completed 
electronically, while a customer is present at the business premises, 
is convenient for both the FFL and the purchaser and may also 
facilitate better inventory accountability and reduce the potential for 
recording errors on Form 4473. Additionally, ATF recognized that 
electronically storing Forms 4473 saves space, time, and money in 
record-keeping and auditing expenses for FFLs. Most businesses 
computerize their inventory, sales, customer lists, and other business 
records. As businesses have moved to a paperless environment to store 
these important documents and business records, electronically storing 
Forms 4473 is convenient for FFLs. Further, electronically retained 
forms may be more secure from environmental damage, loss, or 
destruction and easier to access, sort, and review for many FFLs.
    These factors continue to remain valid and have only increased 
since ATF issued those rulings. As a result, ATF is proposing to add a 
new paragraph (h) in Sec.  478.124 to address using e-Form 4473. This 
new paragraph contains several of the requirements from the rulings, 
including requiring that licensees use the most current electronic 
version of e-Form 4473; that licensees print, use, and retain a paper 
form if some or all of the electronic form is not working; and that 
licensees provide e-Forms 4473 upon request by an ATF official in the 
requested format. ATF is issuing a separate proposed rule that adds a 
new Sec.  478.130 allowing licensees to use electronic records. As a 
result, the new paragraph also includes a provision requiring that 
licensees maintain e-Forms 4473 in a system and manner that meets the 
requirements for electronic records in Sec.  478.130. However, e-Forms 
4473 must be backed up daily, including pending and incomplete forms, 
to a physical storage device at the licensee's premises, instead of the 
combined backup requirements in the proposed Sec.  478.130 (i.e., 
incremental backups on days when the licensee makes a change to their 
records and the general monthly backup) rule for other A&D records.

E. Rescinding Sec.  478.131, Firearms Transactions Not Subject to a 
NICS Check

    This rule proposes to remove and reserve Sec.  478.131 in its 
entirety. ATF is proposing to remove this section because the content 
duplicates information contained in Sec. Sec.  478.96, 478.102, and 
478.124. The proposed revisions above, combined with removing this 
section, eliminate duplicative provisions and help incorporate 
information applicable to firearms transactions not subject to a NICS 
check.

F. Removing Obsolete Forms From Sec.  478.134, Selling Firearms to Law 
Enforcement Officers

    ATF is proposing minor technical changes to this section to remove 
references in paragraphs (a) and (c) to the obsolete Form 5300.35 
(Statement of Intent to Obtain a Handgun(s)), for the reasons discussed 
above, and to revise the section heading for plain writing purposes.

III. Statutory and Executive Order Review

A. Executive Orders 12866 and 13563

    Executive Order 12866 (Regulatory Planning and Review) directs 
agencies to assess the costs and benefits of

[[Page 25439]]

available regulatory alternatives and, if regulation is necessary, to 
select regulatory approaches that maximize net benefits.
    Executive Order 13563 (Improving Regulation and Regulatory Review) 
emphasizes the importance of agencies quantifying both costs and 
benefits, reducing costs, harmonizing rules, and promoting public 
flexibility.
    This proposed rule would amend 27 CFR part 478 to streamline and 
reduce requirements and limitations involved with completing Forms 
4473. The proposed rule would also permit modernizing actions like 
electronic record-keeping, auto-populating, and electronic 
notifications to law enforcement, that further reduce burden on the 
public.
    The Office of Management and Budget (``OMB'') has determined that 
this rule would not be a ``significant regulatory action'' under 
Executive Order 12866. Therefore, it did not review this rule. ATF 
provides the following analysis to comply with Executive Orders 12866 
and 13563.
1. Need Statement
    This rule proposes several simplifying and deregulatory amendments 
related to Forms 4473. These proposed amendments are necessary to 
reduce burdens on the public and regulated industry and increase public 
understanding and compliance, while minimizing public safety 
implications.
2. Benefits
    The proposed changes would reduce burdens involved in entering data 
on Form 4473, and would reduce potential confusion for licensees 
calculating the time in which they could transfer a firearm after 
transferees initiate a Form 4473 and licensees initiate accompanying 
NICS checks--by doubling the time period and using calendar months 
instead of counted days.
Time Limitation for Transaction Under Completed Form 4473
    27 CFR 478.102(c) and 478.124 combined require that FFLs and 
transferees must complete certain portions of Form 4473 and then 
initiate a NICS background check, that FFLs may rely upon the Form 4473 
and accompanying background check only for use in a single transaction, 
and for a period not to exceed 30 calendar days from the date that the 
form steps were completed and NICS was initially contacted. Expanding 
the validity of Forms 4473 and NICS background checks from 30 days to 
two months, as proposed, would eliminate situations in which 
transferees are afforded a narrow purchase window, such as when there 
is an extended background check delay. The extension allows a more 
flexible time period in which to complete transactions and lawfully 
transfer firearms.
    Additional benefits include fewer instances in which FFLs must 
process repeat submissions because applicants did not complete a 
transaction in the current 30-day window.
    FFLs and their employees would also receive fewer Sec.  478.102(c) 
violation notices for completing transactions beyond the currently 
permissible 30 days--which burden FFLs and their employees even though 
violation notices do not carry financial penalties. Based on ATF data 
in Table 1 below, ATF has identified an annual average of 132 
violations of Sec.  478.102(c) per year. These are violations for which 
ATF found an FFL transferred a firearm to a person after 30 days from 
the initial NICS check.

             Table 1--Section 478.102(c) Violations by Year
------------------------------------------------------------------------
                                                                27 CFR
                                                              478.102(c)
                                                              violations
------------------------------------------------------------------------
2020.......................................................          151
2021.......................................................           96
2022.......................................................           73
2023.......................................................          190
2024.......................................................          148
                                                            ------------
    Average................................................          132
------------------------------------------------------------------------

Proving Residence--Documentation and Real ID Act Conformity
    The proposed rule amends section 478.124(c)(3)(ii) to account for 
the situation in which someone does not have a valid, government-issued 
document with their residence address on it. The proposed rule would 
provide a list of acceptable documents to verify a transferee's 
residence address in such a case. In addition, it would remove the 
requirement to specify the transferee's county or similar political 
subdivision and whether they reside within city limits, as well as the 
duplicative question regarding the transferee's residence state. These 
proposed changes would similarly add convenience and flexibility, 
particularly by expanding acceptable documents for verifying residence 
and simplifying the Form 4473 for individuals who have more than one 
residence state, such as members of Congress, university students, and 
military service members.
3. Costs
    ATF expects the costs associated with the proposed rule to be 
minimal.
    The primary cost impacts anticipated by ATF as a result of the 
proposed time extension during which Forms 4473 and accompanying NICS 
checks would remain valid for a purchase could be in the form of 
potential public safety risk associated with outdated background 
checks. Under the current baseline, the 30-day validity period may be 
inconvenient for buyers who want to pick up their firearms weeks after 
submitting their application while the background check is still 
pending. By contrast, the only potential downside of the proposed rule 
change is a minimal, though uncertain, risk of enabling prohibited 
persons to acquire firearms.
    A longer validity period might increase the chance that a buyer 
could become prohibited (e.g. felony charge, restraining order, mental 
health commitment) after the initial check is completed but before the 
transfer occurs. However, the risk of this from the additional one-
month extension is likely to be minor. Some persons who would not be 
denied during an initial background check could become prohibited 
sometime during the first 30 days. Under the current 30-day purchasing 
validity period, if those persons did not purchase the firearm by day 
30, they would have to complete a new Form 4473 and undergo a second 
NICS check initiated on day 31 in order to purchase a firearm between 
days 31-60. If they became prohibited during the previous 30 days, that 
prohibition would be captured in the second NICS check and they would 
not be able to receive the firearm. Under the proposed rule, this 
segment of persons would not have to complete a new Form 4473 and 
undergo a second background check until after day 60, and could thus 
receive a firearm after becoming a prohibited person during the first 
30 days. In such a case, a prohibited person who obtains a firearm 
under the proposed rule and, hypothetically, uses that firearm to 
inflict mass casualties, would have been prevented under the current 
baseline requirement to renew the background check. ATF does not have 
any data on persons who might fall into this situation. However, ATF 
believes the number of such persons is negligible because of other data 
ATF does have on denials.
    For example, the number of ``delayed denials'' is very small. 
Delayed denials are cases in which the initial NICS background check 
resulted in a determination that the buyer was prohibited but the 
denial did not get

[[Page 25440]]

completed until after the buyer had received the firearm.\11\ These are 
persons who were already prohibited persons at the time the initial 
NICS check occurred, rather than the arguably smaller set of persons 
who might initiate transfer of a firearm and then become prohibited 
between that initial check and day 30.
---------------------------------------------------------------------------

    \11\ See 18 U.S.C. 922(t)(1)(A)-(B) (providing generally that a 
licensed importer, manufacturer, or dealer must not transfer a 
firearm before contacting NICS and either receiving an 
identification number or waiting three business days).
---------------------------------------------------------------------------

    NICS data on the number of delayed denials during the past five 
years is presented below in the first column of Table 2. Of those 
cases, only some would be impacted by having a two-month validity 
period instead of a one-month one (the other delayed denials are issued 
before or after the relevant time period affected by this rule). The 
number of prohibited persons that acquired firearms due to delayed 
background checks between 2020 and 2024 was 14,632. Of these, on 
average, 1,797, or 12 percent of delayed denials, were completed 
between 30 and 60 days. Under the current 30-day validity period, those 
prohibited persons could receive a firearm within the first 30 days 
because their denial did not arrive until after the validity period. 
Under the proposed rule, these prohibited persons would have more time 
in which to receive a firearm before the denial arrives. So, for 
example, a prohibited person whose denial arrived on day 40 would now 
be able to receive a firearm through day 39 instead of day 30. This 
would not include all prohibited persons whose denials arrive within 
the day 31-60 period, which for year 2020 was 468 persons, but some 
subset of that number (some might still receive the firearm within the 
first 30 days and others might not receive the firearm before their 
denial arrives, even within days 31-60). This data on delayed denials 
helps to illustrate the parallel likely small risk of a similar subset 
of persons becoming prohibited after initiating a firearms transfer 
during the first 30 days, but not being denied on the basis of the 
initial background check and not receiving the firearm during the first 
30 days, then receiving a firearm during days 31-60 on the basis of the 
initial NICS check without undergoing a second NICS check due to this 
proposed rule.
    Both total delayed denials and those completed in this timeframe 
have declined yearly, with 30-to-60-day cases dropping from 468 in 2020 
to 298 in 2024. Nevertheless, under the proposed rule, these cases, 
approximately 360 per year on average, out of an estimated 22.5 million 
firearms \12\ transactions, demonstrate that the potential risk of 
prohibited persons receiving firearms by allowing a 60-day validity 
period is very small.
---------------------------------------------------------------------------

    \12\ These estimates are based on responses and data from FBI 
NICS and internal ATF offices.

                                   Table 2--Delayed Denials Between 31-60 Days
----------------------------------------------------------------------------------------------------------------
                                                                                                   Percentage
                          Year                            Delayed denials   Cases between  31-   between  31-60
                                                                                 60 days              days
----------------------------------------------------------------------------------------------------------------
2020...................................................              4,484                468                 10
2021...................................................              3,671                362                 10
2022...................................................              2,621                325                 12
2023...................................................              2,181                344                 16
2024...................................................              1,679                298                 18
                                                        --------------------------------------------------------
    Total..............................................             14,636              1,797                 12
----------------------------------------------------------------------------------------------------------------

    In addition, any such risk is also offset by other factors, similar 
to the likely offset to the estimated benefits discussed under section 
III.A.3 of this preamble. With respect to the potential risks involved 
by extending the validity of the initial Form 4473 and its accompanying 
NICS background check, individual states as well as individual vendors 
have imposed their own restrictions on firearm transfers. These 
restrictions often extend beyond the federally mandated three-day 
waiting period for NICS background checks that aren't instantly 
completed. For example, some vendors have set a policy that they will 
not transfer a firearm until they receive a ``proceed'' response on a 
NICS background check. Several states prohibit individuals from 
collecting firearms if a background check is delayed (or ``open,'' see 
28 CFR 25.2 defining ``delayed'' and ``open'' transactions). These 
states aim to prevent gun sales while a background check is 
pending.\13\ These states extend the time investigators have to 
complete background checks, ensuring that fewer firearms are 
transferred without a completed background check. These states have a 
combined population of 123,784,590, based on the 2024 Census, which was 
approximately 36 percent of the total US population in the same year. 
In such states, or with such vendors, extending the Form 4473 and 
accompanying NICS background check validity period would pose even less 
risk because the person would be prohibited by state or vendor policy 
from collecting their firearm while that delay is in place, or until 
they are cleared by NICS to do so.
---------------------------------------------------------------------------

    \13\ States that have restricted the ability to transfer 
firearms after three business days without a completed background 
check include California, Colorado, Connecticut, Delaware, District 
of Columbia, Florida, Hawaii, Illinois, Massachusetts, Maryland, 
Minnesota, New Jersey, New York, Pennsylvania, Rhode Island, 
Tennessee, Utah, Washington, and Wisconsin.
---------------------------------------------------------------------------

4. Regulatory alternatives
    The primary alternative considered to this proposed rule was to 
continue the status quo of requiring additional information fields on 
Forms 4473, maintaining a 30-day validity period for the forms and for 
the NICS background checks, limiting the forms of identification and 
proof of address accepted ahead of purchases, and not permitting 
electronic documents. This is also known as the no-action alternative, 
which was deemed to be more of a burden on the public while not 
materially increasing public safety.

B. Executive Order 14192

    Executive Order 14192 (Unleashing Prosperity Through Deregulation) 
requires an agency, unless prohibited by law, to identify at least ten 
existing regulations to be repealed or revised when the agency publicly 
proposes for notice and comment or otherwise promulgates a new 
regulation that qualifies as an Executive Order 14192 regulatory action 
(defined in OMB Memorandum M-25-20 as a final significant regulatory 
action under section 3(f) of Executive Order 12866 that imposes total 
costs greater than

[[Page 25441]]

zero). In furtherance of this requirement, section 3(c) of Executive 
Order 14192 requires that any new incremental costs associated with 
such new regulations must, to the extent permitted by law, also be 
offset by eliminating existing costs associated with at least ten prior 
regulations. However, this rule would not be an Executive Order 14192 
regulatory action because it is not a significant regulatory action as 
defined by Executive Order 12866 and it would not impose total costs 
greater than zero. In addition, ATF expects this proposed rule, if 
finalized as proposed, to qualify as an Executive Order 14192 
deregulatory action (defined in OMB Memorandum M-25-20 as a final 
action that imposes total costs less than zero).

C. Executive Order 14294

    Executive Order 14294 (Fighting Overcriminalization in Federal 
Regulations) requires agencies promulgating regulations with criminal 
regulatory offenses potentially subject to criminal enforcement to 
explicitly describe the conduct subject to criminal enforcement, the 
authorizing statutes, and the mens rea standard applicable to each 
element of those offenses. This proposed rule would not create a 
criminal regulatory offense and is thus exempt from Executive Order 
14294 requirements.

D. Executive Order 13132

    This proposed rule would not have substantial direct effects on the 
states, the relationship between the federal government and the states, 
or the distribution of power and responsibilities among the various 
levels of government. Therefore, in accordance with section 6 of 
Executive Order 13132 (Federalism), the Director has determined that 
this rule would not impose substantial direct compliance costs on state 
and local governments, preempt state law, or meaningfully implicate 
federalism. It thus does not warrant preparing a federalism summary 
impact statement.

E. Executive Order 12988

    This rule meets the applicable standards set forth in sections 3(a) 
and 3(b)(2) of Executive Order 12988 (Civil Justice Reform).

F. Regulatory Flexibility Act

    Under the Regulatory Flexibility Act (``RFA''), 5 U.S.C. 601-612, 
agencies are required to conduct a regulatory flexibility analysis of 
any rule subject to notice-and-comment rulemaking requirements unless 
the agency head certifies, including a statement of the factual basis, 
that the proposed rule would not have a significant economic impact on 
a substantial number of small entities. Small entities include certain 
small businesses, small not-for-profit organizations that are 
independently owned and operated and are not dominant in their fields, 
and governmental jurisdictions with populations of less than 50,000.
    The Director certifies, after consideration, that this proposed 
rule would not have a significant economic impact on a substantial 
number of small entities. That is because the proposed rule is 
primarily introducing difficult-to-quantify benefits to affected 
populations and does not impose quantifiable costs on any segment. In 
addition, ATF estimates that a significant percentage of the rule's 
benefits would accrue to the benefit of small businesses, as the 
majority of FFLs are small businesses. This proposed rule is 
deregulatory, would not impose any additional costs on the industry as 
a whole, and would therefore not impose a significant economic impact 
on small businesses.

G. Unfunded Mandates Reform Act of 1995

    This proposed rule does not include a federal mandate that might 
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 would not significantly or uniquely affect small 
governments.
    Therefore, ATF has determined that no actions are necessary under 
the provisions of the Unfunded Mandates Reform Act of 1995.

H. Paperwork Reduction Act of 1995

    Under the Paperwork Reduction Act of 1995 (``PRA''), 44 U.S.C. 
3501-3521, agencies are required to submit to OMB, for review and 
approval, any information collection requirements a rule creates or any 
impacts it has on existing information collections. As defined in 5 CFR 
1320.3(c), an information collection includes any reporting, record-
keeping, monitoring, posting, labeling, or other similar actions an 
agency requires of the public. This proposed rule creates the need to 
revise an existing information collection under the PRA. The title and 
description of the information collection follow.
    Form 4473 is currently covered under OMB control number 1140-0020, 
which includes the requirement to complete and submit the form and 
examine and note the verification documents. This information 
collection would need to be revised if this rule is finalized as 
proposed. ATF is publishing the proposed revised information collection 
request (ICR) through the standard PRA process in conjunction with this 
proposed rule. The first ICR notice for this collection will publish 
concurrently with this proposed rule for a 60-day public comment 
period. In addition to substantive changes that would flow from the 
changes in this proposed rule if finalized as drafted, ATF is proposing 
revisions to the ICR that make the form easier to use and more 
streamlined. Those proposed changes include re-designing the form to 
allow transferees to fill out one page while licensees complete a 
separate page, thereby saving time, simplifying instructions throughout 
the form so they are faster and easier to read, grouping questions on 
the same topic together, eliminating unnecessary questions, reducing 
the number of check-boxes, and other similar changes. The combined 
changes flowing from this proposed rule and these additional revisions 
would reduce the time burden from 30 minutes to 15 minutes per form.
    Title: Firearms Transaction Record.
    OMB control number: 1140-0020.
    Form number: ATF Form 5300.9 (``Form 4473'').
    Summary of the information collection: Federal firearms licensees--
manufacturers, importers, dealers, and collectors--must create and 
maintain a firearms transaction record for each firearm they transfer. 
Licensees use ATF Form 5300.9, Firearms Transaction Record (``Form 
4473''), for this purpose, and to help them ensure they are complying 
with statutory requirements and not transferring to prohibited persons.
    Need for information: The Gun Control Act (GCA) requires FFLs to 
maintain, at their place of business, sale or other disposition records 
for firearms, one kind of which are Forms 4473, in accordance with 
prescribed regulations. Section 923(g)(1)(A) of the GCA requires 
licensed importers, manufacturers, and dealers to maintain these 
records in such form as prescribed by regulation. ATF regulations at 27 
CFR 478.102 and 478.124 prescribe that licensees must use Form 4473 to 
meet this statutory requirement and establish the requirements for 
using the form.
    Proposed use of information: ATF uses Forms 4473 for regulatory 
enforcement purposes to verify that licensees are complying with 
statutory and regulatory requirements on acquiring and disposing of 
firearms.

[[Page 25442]]

I. Congressional Review Act

    This proposed rule would not be a major rule as defined by the 
Congressional Review Act, 5 U.S.C. 804.

IV. Public Participation

A. Comments Sought

    ATF requests comments on the proposed rule from all interested 
persons. ATF specifically requests comments on the clarity of this 
proposed rule and how it may be made easier to understand. In addition, 
ATF requests 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 this document's RIN 1140-AA82 and, if 
handwritten, must be legible. If submitting by mail, you must also 
include your complete first and last name and contact information. If 
submitting a comment through the federal e-rulemaking portal, as 
described in section IV.C of this preamble, you should carefully review 
and follow the website's instructions on submitting comments. Whether 
you submit comments online or by mail, ATF will post them online. If 
submitting online as an individual, any information you provide in the 
online fields for city, state, zip code, and phone will not be publicly 
viewable when ATF publishes the comment on https://www.regulations.gov. 
However, if you include such personally identifying information 
(``PII'') in the body of your online comment, it may be posted and 
viewable online. Similarly, if you submit a written comment with PII in 
the body of the comment, it may be posted and viewable online. 
Therefore, all commenters should review section IV.B of this preamble, 
``Confidentiality,'' regarding how to submit PII if you do not want it 
published online. ATF may not consider, or respond to, comments that do 
not meet these requirements or comments containing excessive profanity. 
ATF will retain comments containing excessive profanity as part of this 
rulemaking's administrative record, but will not publish such documents 
on https://www.regulations.gov. ATF will treat all comments as 
originals and will not acknowledge receipt of comments. In addition, if 
ATF cannot read your comment due to handwriting or technical 
difficulties and cannot contact you for clarification, ATF may not be 
able to consider your comment.
    ATF will carefully consider all comments, as appropriate, received 
on or before the closing date.

B. Confidentiality

    ATF will make all comments meeting the requirements of this 
section, whether submitted electronically or on paper, and except as 
provided below, available for public viewing on the internet through 
the federal e-rulemaking portal, and subject to the Freedom of 
Information Act (5 U.S.C. 552). Commenters who submit by mail and who 
do not want their name or other PII posted on the internet should 
submit their comments with a separate cover sheet containing their PII. 
The separate cover sheet should be marked with ``CUI//PRVCY'' at the 
top to identify it as protected PII under the Privacy Act. Both the 
cover sheet and comment must reference this RIN 1140-AA82. For comments 
submitted by mail, information contained on the cover sheet will not 
appear when posted on the internet, but any PII that appears within the 
body of a comment will not be redacted by ATF and may appear on the 
internet. Similarly, commenters who submit through the federal e-
rulemaking portal and who do not want any of their PII posted on the 
internet should omit such PII from the body of their comment and in any 
uploaded attachments. However, PII entered into the online fields 
designated for name, email, and other contact information will not be 
posted or viewable online.
    A commenter may submit to ATF information identified as proprietary 
or confidential business information by mail. To request that ATF 
handle this information as controlled unclassified information 
(``CUI''), the commenter must place any portion of a comment that is 
proprietary or confidential business information under law or 
regulation on pages separate from the balance of the comment, with each 
page prominently marked ``CUI//PROPIN'' at the top of the page.
    ATF will not make proprietary or confidential business information 
submitted in compliance with these instructions available when 
disclosing the comments that it receives, but will disclose that the 
commenter provided proprietary or confidential business information 
that ATF is holding in a separate file to which the public does not 
have access. If ATF receives a request to examine or copy this 
information, it will treat it as any other request under the Freedom of 
Information Act (5 U.S.C. 552). In addition, ATF will disclose such 
proprietary or confidential business information to the extent required 
by other legal process.

C. Submitting Comments

    Submit comments using either of the two methods described below 
(but do not submit the same comment multiple times or by more than one 
method). Hand-delivered comments will not be accepted.
     Federal e-rulemaking portal: ATF recommends that you 
submit your comments to ATF via the federal e-rulemaking portal at 
https://www.regulations.gov and follow the instructions. Comments will 
be posted within a few days of being submitted. However, if large 
volumes of comments are being processed simultaneously, your comment 
may not be viewable for up to several weeks. Please keep the comment 
tracking number that is provided after you have successfully uploaded 
your comment.
     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, include the commenter's first and last name 
and full mailing address, and may be of any length. See also section 
IV.B of this preamble, ``Confidentiality.''

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 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 in response 
to it are available through the federal e-rulemaking portal, at https://www.regulations.gov (search for RIN 1140-AA82).

Severability

    Consistent with the Administrative Procedure Act, the issues raised 
in this proposed rule may be finalized, or not, independently of each 
other, after consideration of comments received. ATF has determined 
that this proposed rule implements and is fully consistent with 
governing law. However, in the event this proposed rule is finalized, 
if any provision of that final rule, an amendment or revision made by 
that rule, or the application of such provision or amendment or 
revision to any person or circumstance, is held to be invalid or 
unenforceable by its terms, the remainder of that final rule, the 
amendments or revisions made by that rule, and application of the 
provisions of the rule to any person or circumstance shall not be 
affected and

[[Page 25443]]

shall be construed so as to give them the maximum effect permitted by 
law.

List of Subjects in 27 CFR Part 478

    Administrative practice and procedure, Arms and munitions, Exports, 
Freight, Imports, Intergovernmental relations, Law enforcement 
officers, Military personnel, Penalties, Reporting and record-keeping 
requirements, Research, Seizures and forfeitures, Transportation.

    For the reasons discussed in the preamble, ATF proposes to amend 27 
CFR part 478 as follows:

PART 478--COMMERCE IN FIREARMS AND AMMUNITION

0
1. The authority citation for 27 CFR part 478 continues to read as 
follows:

    Authority:  5 U.S.C. 552(a); 18 U.S.C. 847, 921-931; 44 U.S.C. 
3504(h).
0
2. Amend Sec.  478.11 by revising the definition ``Identification 
document'', including its heading, and revising the definition ``state 
of residence'', including its heading.
    The revisions read as follows:


Sec.  478.11  Meaning of terms.

* * * * *
    Photo identification document. A document that contains the name, 
birthdate, and photograph of the holder, that was made or issued by or 
under the authority of the United States government, a state, political 
subdivision of a state, a foreign government, political subdivision of 
a foreign government, an international governmental or an international 
quasi-governmental organization, and that, when completed with 
information concerning a particular individual, is of a type intended 
or commonly accepted for the purpose of identifying individuals. The 
photo identification document may be a digital identification document 
if issued by one of the authorities above, and if the jurisdiction that 
issued the document considers it a commonly accepted document for 
identification purposes.
* * * * *
    Residence state. The state in which an individual resides. An 
individual resides in a state if the individual is present in a state 
with the intention of making a home in that state. A person may be a 
resident of a state for purposes of the Gun Control Act even if the 
person is not domiciled in that state. For individuals on active duty 
as members of the Armed Forces, their residence states include the 
states in which their permanent duty stations are located. 18 U.S.C. 
921(b). The following scenarios illustrate this definition:

Example (1) for residence state.

    A maintains a home in state X. A travels to state Y on a hunting, 
fishing, business, or other type of trip. A does not become a resident 
of state Y because of such trip.

Example (2) for residence state.

    A maintains a home in state X and a home in state Y. A resides in 
state X except for weekends or the summer months of the year and in 
state Y for the weekends or the summer months of the year. During the 
time that A actually resides in state X, A is a resident of state X, 
and during the time that A actually resides in state Y, A is a resident 
of state Y.

Example (3) for residence state.

    A, an alien eligible to possess firearms, travels to the United 
States on a three-week vacation to state X. A is not a resident of 
state X because A does not have the intention of making a home in state 
X while on vacation. This is true regardless of the length of the 
vacation.

Example (4) for residence state.

    A, an alien eligible to possess firearms, travels to the United 
States to work for three years in state X. A rents a home in state X, 
moves A's personal possessions into the home, and A's family resides 
with A in the home. A intends to reside in state X during the three-
year period of A's employment. A is a resident of state X.

Example (5) for residence state.

    A, a member of the Armed Forces on active duty, is assigned to a 
permanent duty station in state X. A also has A's residence in state X. 
A is a resident of state X. If A resides on base in state X, A should 
use A's on-base residence address on Form 4473. If A resides off base 
in state X, A should use A's off-base residence address on Form 4473.

Example (6) for residence state.

    A, a member of the Armed Forces on active duty, is assigned to a 
permanent duty station in state Y. However, A resides off-base in state 
X, from which A commutes to duty in state Y. A is a resident of both 
state X and state Y.

Example (7) for residence state.

    A maintains a home in state X. However, A is also a member of the 
Armed Forces on active duty and is assigned to a permanent duty station 
across the country, in state Y. During the time that A actually resides 
in state X, A is a resident of state X and state Y. During the time 
that A actually resides in state Y, A is a resident of state Y only. A 
should use A's residence address on Form 4473 and also either attach 
A's permanent change of station (PCS) orders showing the duty station 
or note the duty station address in the form's PCS section.

Example (8) for residence state.

    A lives with A's parents at a home in state X but lives in state Y 
during the fall and spring semesters while enrolled as a student in 
college there. During the time that A actually resides in state X, A is 
a resident of state X, and during the time that A actually resides in 
state Y, A is a resident of state Y.
* * * * *
0
3. Revise Sec.  478.96, including its heading, to read as follows:


Sec.  478.96  Non-over-the-counter and out-of-state sales.

    (a) Applicability. This section's provisions apply when a licensee 
transfers or delivers a firearm to a person not otherwise prohibited by 
the Act from purchasing or receiving it. Licensees must retain records 
of these transactions in accordance with Sec. Sec.  478.124(h) and (i), 
as applicable.
    (b) Non-over-the-counter (NOTC) transactions.
    (1) Licensed importers, manufacturers, or dealers may transfer 
firearms to a non-licensee who is not subject to the provisions of 
Sec.  478.102(a) due to an exception in Sec.  478.102(d) and who does 
not appear in person at the licensee's business premises, if the non-
licensee meets the following requirements:
    (i) Is a resident of the same state in which the licensee's 
business premises are located;
    (ii) Provides a Form 4473 to the licensee as required by Sec.  
478.124 of this part;
    (iii) Submits with Form 4473 an executed sworn statement in the 
form prescribed by 18 U.S.C. 922(c)(1); and
    (iv) Submits with Form 4473 a true copy of any permit and other 
information required pursuant to any statute of the state and published 
ordinance applicable to the locality in which the non-licensee resides.
    (2) The licensee must ensure the transferee has completed all 
transferee portions of the form, and:
    (i) Document on the form the applicable NICS exception;
    (ii) Comply with requirements in Sec. Sec.  478.124(c), (g), (h), 
and (i) of this part as applicable, including verifying the 
transferee's identity and residence;
    (iii) Complete the rest of the form as applicable; and
    (iv) Check the appropriate box on the form to indicate that this is 
a non-over-the-counter transaction.
    (c) Law enforcement notice for NOTC transfers. Once the licensee 
receives all the information required under

[[Page 25444]]

paragraph (b) of this section, and prior to shipping or delivering the 
firearm to a transferee who is receiving it through a NOTC transaction, 
the licensee must:
    (1) Forward by registered or certified mail (return receipt 
requested) or by verified electronic notice as defined in 18 U.S.C. 
921(a)(38), a copy of the Form 4473, true copies of the documents 
provided under paragraph (b) of this section, and the sworn statement 
required by statute, to the principal or chief law enforcement officer 
(``CLEO'') the transferee named in Form 4473.
    (2) Receive a response showing that the CLEO accepted the notice 
documents or showing that delivery failed or was refused:
    (i) For documents sent by mail, receive U.S. Postal Service return 
receipt or receive the Form 4473 copy back, along with notification 
that the delivery failed or that the CLEO refused delivery, in 
accordance with U.S. Postal Service regulations; or
    (ii) For documents sent electronically, receive an electronic 
response from the law enforcement officer indicating the CLEO received 
or refused the transmission or receive a delivery failure notice (such 
as an email bounce-back).
    (3) If delivery fails (but is not refused), take steps to resolve 
the situation, as appropriate, until receiving the required return 
receipt, response, or refusal, or do not complete the transfer. But if 
the CLEO refuses delivery, continue to complete the transfer.
    (4) Delay shipping or delivering the firearm to the transferee for 
a period of at least seven days after receiving the return receipt or 
response under paragraph (c)(2) and (3) of this section.
    (5) Retain the original Form 4473, sworn statement, true copies of 
any permit or license, or other required information, and evidence that 
the CLEO received or did not accept the Form 4473 copy sent to the 
CLEO, as part of the records subpart H of this part requires licensees 
to keep.
    (d) Out-of-state transactions.
    (1) A licensed importer, manufacturer, or dealer may sell or 
deliver a rifle or shotgun, and a licensed collector may sell or 
deliver a rifle or shotgun that is a curio or relic, to a non-licensed 
resident of a state other than the state in which the licensee's place 
of business is located if:
    (i) The purchaser meets with the licensee in person at the 
licensee's premises to transfer, sell, and deliver the rifle or 
shotgun;
    (ii) The licensed importer, manufacturer, or dealer complies with 
the provisions of Sec.  478.102;
    (iii) The purchaser furnishes to the licensed importer, 
manufacturer, or dealer the firearms transaction record, Form 4473, 
required by Sec.  478.124 and complies with other applicable provisions 
under Sec.  478.124; and
    (iv) Selling, delivering, and receiving the rifle or shotgun fully 
comply with the legal conditions of sale in both states.
    (2) For purposes of paragraph (d)(1) of this section, any licensed 
manufacturer, importer, or dealer is presumed, in the absence of 
evidence to the contrary, to have actual knowledge of the state laws 
and published ordinances of both states.


(Approved by the Office of Management and Budget under control number 
1140-0020)
0
4. Amend Sec.  478.102 by revising the section heading and revising 
paragraphs (c) and (e) to read as follows.


Sec.  478.102  Selling or delivering firearms.

* * * * *
    (c) Time limitation on NICS checks and Forms 4473. When a NICS 
check is required, the licensee must initiate a NICS check once the 
transferee and licensee complete the initial portions of Form 4473, 
Firearm Transaction Record, in accordance with Sec.  478.124 of this 
part and the instructions on the form. Form 4473 is valid for only a 
single transaction, and for a period of two calendar months from the 
date the parties complete these portions of Form 4473 and the licensee 
initiates the NICS check or until the form is used to complete a 
firearm transfer, whichever occurs earlier. As a result, the licensee 
may rely upon an accompanying NICS check conducted in accordance with 
paragraph (a) of this section only for use in the same single 
transaction, and for the same period, as the accompanying Form 4473. 
The two-month period ends on (and includes) the same date in that 
second month as the date the transferee certified Form 4473 and 
initiated the background check. For transactions that occur during the 
last three days of December, the two-month period concludes on the last 
day of February, either February 28 or 29. For transactions that occur 
on July 31, the two-month period concludes on September 30. If the 
transaction is not completed within the two-month period, the 
transferee and licensee must complete a new Form 4473 and the licensee 
must initiate a new NICS check prior to completing the transfer.

Example 3 for paragraph (c).

    A purchaser and licensee initiate Form 4473 on December 15, 2024, 
and the licensee initiates a NICS check on that date. The licensee is 
informed by NICS three days later that the information available to the 
system does not indicate that it would violate law for the transferee 
to receive the firearm, and NICS provides a unique identification 
number. However, the purchaser does not return to pick up the firearm 
until February 21, 2025. The purchaser and licensee must initiate a new 
Form 4473 and the licensee must initiate another NICS check before 
transferring the firearm to the purchaser because the two-month period 
elapsed on February 15, 2025. The licensee and another purchaser 
initiate a Form 4473 on February 10, 2025, at which time the licensee 
also initiates a NICS check. The licensee receives a response from NICS 
on March 12 that the information available to the system does not 
indicate that it would violate law for the transferee to receive the 
firearm. The purchaser returns to buy the firearm on April 10, 2025. 
The purchaser and licensee do not have to initiate a new Form 4473 and 
the licensee does not have to initiate another NICS check before 
transferring the firearm to this purchaser because the purchaser 
returned on the last day of the two-month period.

Example 4 for paragraph (c).

    Purchaser 1 and the licensee initiate Form 4473 on December 29 
prior to a leap year, and the licensee initiates a NICS check on that 
date. In addition, purchaser 2 and the licensee initiate Form 4473 on 
December 30, again with a NICS check initiated on that date, and 
purchaser 3 and the licensee initiate Form 4473 on December 31, again 
with a NICS check initiated on that date. NICS informs the licensee 
that the information available to the system does not indicate that it 
would violate law for any of these purchasers to receive the firearms, 
and NICS provides a unique identification number for each one. 
Purchaser 1 returns to purchase their firearm on February 29. The 
purchaser and licensee do not have to complete a new Form 4473 and the 
licensee does not have to conduct another NICS check before 
transferring the firearm to this purchaser because purchaser 1 returned 
on the last day of the two-month period as it applies to February in a 
leap year.
    Purchasers 2 and 3, however, return to purchase their firearms on 
March 1. They and the licensee must each initiate a new Form 4473 and 
the licensee must initiate another NICS check for each of them before 
transferring firearms to these purchasers because they returned after 
the last date in February, the second month, on which they could 
purchase the firearm. Similarly, purchaser 4 and the licensee initiate

[[Page 25445]]

Form 4473 on July 31, and the licensee initiates a NICS check on that 
date. NICS informs the licensee that the information available to the 
system does not indicate it would violate law for this purchaser to 
receive the firearm, and NICS provides a unique identification number. 
The purchaser returns to purchase the firearm on October 1. The 
purchaser and licensee must initiate another Form 4473 and the licensee 
has to initiate another NICS check before transferring a firearm to 
this purchaser because the purchaser returned after the last date in 
September, the second month, on which the purchaser could purchase the 
firearm.

Example 5 for paragraph (c).

    A purchaser and licensee initiate Form 4473 on January 25, 2025, to 
purchase one firearm. The licensee initiates the NICS check on that 
date. NICS subsequently informs the licensee that the information 
available to the system does not indicate it would violate law for this 
purchaser to receive the firearm, and NICS provides a unique 
identification number. The state imposes a seven-day waiting period on 
all firearms transactions, and the purchaser returns to pick up the 
firearm on February 15, 2025. Before the licensee executes Form 4473 
and the purchaser receives the firearm, the purchaser decides to 
purchase an additional firearm. The licensee may add the second firearm 
to Form 4473, and transfer that firearm without conducting another NICS 
check, because transferring these two firearms constitutes a single 
transaction under these circumstances and the two-month purchase period 
has not ended.

Example 6 for paragraph (c).

    A purchaser and licensee initiate Form 4473 on February 15, 2025, 
and the licensee initiates a NICS check that same day. Within a few 
minutes, NICS informs the licensee that the information available to 
the system does not indicate it would violate law for this purchaser to 
receive the firearm, and NICS provides a unique identification number. 
A few minutes later, the licensee executes Form 4473, and the purchaser 
receives the firearm. On February 20, 2025, the purchaser returns to 
the licensee's premises and wishes to purchase a second firearm. 
Purchasing the second firearm in this case is a separate transaction; 
thus, the purchaser and licensee must complete a new Form 4473 and the 
licensee must initiate a new NICS check.
* * * * *
    (e) Documenting an exception to NICS check. A licensed importer, 
manufacturer, or dealer who sells, delivers, or transfers a firearm 
pursuant to the alternative provisions of Sec.  478.102(d) that is not 
subject to a NICS check prescribed by Sec.  478.102(a), must retain a 
copy of the document referred to in paragraphs (d)(1) or (3) of this 
section, or must record the required information from the document in 
accordance with the provisions of Sec.  478.124(c)(4)(iv).


(Approved by the Office of Management and Budget under control number 
1140-0020)
0
5. Revise Sec.  478.124 to read as follows:


Sec.  478.124  Firearms transaction record.

    (a) Overall requirement and exceptions. A licensed importer, 
manufacturer, or dealer may not sell or otherwise dispose of, 
temporarily or permanently, any firearm to any person, unless the 
licensee records the transaction on either an electronic or paper ATF 
Form 5300.9, Firearms Transaction Record (``Form 4473''). However, this 
requirement does not apply to:
    (1) Returning a firearm (or replacement firearm) to the person from 
whom the licensee received it, when the firearm was delivered to the 
licensee for the sole purpose of repairing or customizing it;
    (2) Selling or disposing of a firearm--
    (i) To another licensed importer, manufacturer, or dealer;
    (ii) To a licensed collector, if the firearm is a curio or relic;
    (iii) By a sole proprietor transferring a firearm to the 
proprietor's personal collection or otherwise as a personal firearm in 
accordance with Sec.  478.125a; or
    (iv) To a governmental official, agent, or employee, or to a 
governmental agency, for official duty use. See Sec.  478.134.
    (b) Transfers to other licensees. When a licensee transfers a 
firearm to another licensee, the licensee must comply with the 
verification and record-keeping requirements in Sec.  478.94 and this 
subpart.
    (c) Transfers to in-state residents. Prior to transferring a 
firearm to a non-licensee who is a resident of the state in which the 
licensee's business premises are located, the licensed importer, 
manufacturer, or dealer transferring the firearm must obtain Form 4473 
from the transferee.
    (1) Required information. Form 4473 must show the transferee's:
    (i) Name, sex, residence address;
    (ii) Birthdate and birthplace;
    (iii) Height, weight, and race;
    (iv) Citizenship country;
    (v) DHS-issued alien number or admission number (if applicable);
    (vi) Certification that the transferee is not prohibited by the Act 
from receiving a firearm which has been shipped or transported in 
interstate or foreign commerce, possessing a firearm in or affecting 
commerce, or transporting or shipping a firearm in interstate or 
foreign commerce; and
    (vii) For non-over-the-counter transfers, the title, name, and 
address of the principal or chief law enforcement officer in the 
locality to which the firearm will be delivered (which the transferee 
may attach as a supplemental statement).
    (2) Auto-populating information. When collecting data, licensees 
and their customers may enter data manually into Form 4473 or other 
record, or may have that data automatically populate (including by 
scanning documents or barcodes), subject to the following limitations:
    (i) Before automatically populating data, the terminal in which a 
person is inputting such data must:
    (A) Clearly display to the person executing the form (or recording 
the record) what information will be automatically populated;
    (B) Provide the person executing the form (or record) with the 
opportunity to amend the data, including by adding necessary data and 
changing incorrect data; and
    (C) Require the person executing the form (or record) to 
acknowledge that the information being auto-populated is complete and 
correct.
    (ii) Persons may not auto-populate any signatures or certifications 
on the form or any part of the form (or other record). This includes 
certifying any fact (or answering any question) related to a person's 
eligibility to possess or acquire a firearm.
    (iii) Paragraph (c)(2)(ii) of this section does not apply to auto-
populating a person's name, address, and birthdate, including by 
scanning an identity document, provided the licensee and transferee 
auto-populated this information in compliance with paragraph (c)(2)(i).
    (iv) Any information auto-populated from another document or an 
electronic file or system of any kind must be fully entered into Form 
4473 (or other record) so that the form or record is complete on its 
own and does not have to connect back to the source to subsequently 
pull the information.
    (3) Optional information. To facilitate transferring a firearm and 
enable NICS to verify the identity of the person acquiring the firearm, 
Form 4473 also requests certain optional information. This information 
includes the transferee's social security number.

[[Page 25446]]

    (4) Information from entities. A licensee who sells or otherwise 
disposes of a firearm to a non-licensee who is other than an individual 
(i.e., an entity), must obtain from an individual authorized to act on 
behalf of the transferee the information required by this section. In 
addition, the licensee must obtain from the individual acting on behalf 
of the transferee a written statement, executed under the penalties of 
perjury, that the firearm is being acquired for the transferee's use 
and will be its property, and showing the transferee's name and 
address.
    (5) Licensee verifications. After the transferee has executed the 
transferee portion of Form 4473, the licensee must:
    (i) For over-the-counter transfers, verify the transferee's 
identity by examining their photo identification document (as defined 
in Sec.  478.11 of this part), even if the transferee's identification 
document was used to auto-populate portions of the form;
    (ii) For over-the-counter transfers, verify the transferee's 
residence using the photo identification document, permanent change of 
station (``PCS'') orders, or two documents listed in paragraph (g) of 
this section if the photo identification document does not contain a 
residence address or does not contain the current residence address 
that is the basis of the firearms purchase;
    (iii) For all transfers in which the transferee is an alien 
admitted to the United States under a non-immigrant visa who states 
that the alien falls within an exception to, or has a waiver from, the 
prohibition in section 922(g)(5)(B) of the Act, examine applicable 
documents establishing the exception or waiver;
    (iv) For non-over-the-counter transfers, ensure that the 
transaction meets the requirements of 18 U.S.C. 922(t)(3) and 27 CFR 
478.102(d). Licensees must, as applicable, include a true copy of the 
permit or license, certify on Form 4473 that the transaction involves 
only an approved transfer of NFA firearms, or include the Director's 
certification under Sec.  478.102(d)(3) of this part. Licensees must 
ensure they comply with all applicable requirements in Sec.  478.96(b) 
and Sec.  478.102(d) of this part; and
    (v) For over-the-counter transfers, comply with the requirements of 
Sec.  478.102 and record on the form the information the form requires 
about the date on which the licensee contacted NICS, as well as any 
response provided by the system, including any identification number 
provided by the system.
    (6) Documenting verifications. When a transferee must provide a 
photo identification document, residence verification, or other 
document establishing eligibility to acquire a firearm, the licensee 
must either:
    (i) Keep a legible copy of the document (whether in a paper or 
electronic form) together with Form 4473 in their records; or
    (ii) Record on Form 4473 the type of document used, its identifying 
number, date it was issued, and expiration date, if included on the 
document.
    (iii) In the case of a multiple-page document, such as a lease, the 
licensee may retain a copy only of the pages necessary to establish the 
transferee's residence.
    (7) Identifying firearms. The licensee must identify the firearm 
being transferred by listing on Form 4473 the manufacturer's name, the 
importer's name (if imported), and the firearm's type, model, caliber 
or gauge, and serial number (including any associated license number 
either as a prefix, or if remanufactured or imported, separated by a 
semicolon). When a privately made firearm has no manufacturer name 
identified on it, the licensee must record the words ``privately made 
firearm'' (or abbreviation ``PMF'') instead of the manufacturer's name.
    (8) Transferee final steps. Prior to receiving the firearm, the 
transferee must:
    (i) Complete all applicable sections of Form 4473, including those 
that establish the transferee meets eligibility requirements to possess 
or receive a firearm under federal law;
    (ii) Sign or initial responses and form where required; and
    (iii) Certify that all responses and data on the form are complete 
and correct.
    (9) Licensee signature and transfer. The licensee must then sign 
and date the form and then may transfer the firearm described on the 
form, if the licensee does not know or have reasonable cause to believe 
that the transferee is disqualified by law from receiving the firearm.
    (10) Non-over-the-counter pre-notification. For non-over-the-
counter transfers, before shipping or delivering the firearm to the 
transferee, the licensee must comply with additional requirements in 
Sec.  478.96 for notifying law enforcement and handling Form 4473.
    (11) Retaining records. In all cases, after the licensee transfers 
the firearm, the licensee must comply with Form 4473 records retention 
requirements in this section and in Sec.  478.129.
    (d) Transfers to out-of-state residents. The Act permits the 
following transfers to out-of-state residents, but the licensee and 
transferee must comply with the requirements of paragraph (c) of this 
section:
    (1) Transferring shotguns and rifles over the counter under the 
provisions contained in Sec.  478.96(d) to a non-licensee who is not a 
resident of the state in which the licensee's business premises are 
located; or
    (2) Loaning or renting a firearm to use temporarily for lawful 
sporting purposes under the provisions in Sec.  478.97(a) to any non-
licensee who is not a resident of the state in which the licensee's 
business premises are located.
    (e) Private-party transfers. To the extent permitted by 28 CFR part 
25, a licensee may facilitate a background check for private-party 
transfers.
    (1) A private-party transfer is a transfer between two persons who 
are not licensed importers, manufacturers, or dealers under the Gun 
Control Act, and does not involve the licensee in the transfer. Under 
this provision, the licensee provides services solely to facilitate the 
background check, not the transfer.
    (2) If facilitating a background check for a private-party 
transfer, the licensee must check the appropriate box at the top of 
Form 4473 to designate the form is for that purpose. The licensee must 
comply with paragraph (c) of this section to ensure the licensee 
collects all the appropriate information for a background check.
    (3) A licensee facilitating a background check may not take the 
firearm into the licensee's inventory, nor may the licensee sell, 
deliver, or otherwise transfer the firearm to the transferee or 
facilitate the transfer in any other way.
    (4) A licensee may not provide background check services for a 
private-party transfer if federal law requires that the firearm first 
be transferred to a licensee, such as for transfers between residents 
of different states.
    (5) Nothing in this subsection authorizes any licensee to 
facilitate a background check for a private-party transfer in violation 
of federal, state, or applicable local law.
    (f) Voluntary firearms handler checks (FHCs). The licensee may 
voluntarily engage in conducting NICS background checks on the 
licensee's own employees. The employee must provide written informed 
consent on Form 4473 that the employee agrees to the background check 
before the licensee initiates it. The licensee and employees must 
comply with the requirements of paragraph (c) of this section (except 
changes necessary to enable FHCs, including that a licensee would not

[[Page 25447]]

enter any firearm information on the form). If the licensee is 
conducting an FHC, the licensee must check the appropriate box at the 
top of Form 4473 to designate the form is for that purpose.
    (g) Proving residence.
    (1) When the photo identification document presented to the dealer 
does not include a residence address or does not contain the current 
residence address that is the basis of the firearm purchase, a 
transferee may demonstrate residence by providing the licensee with two 
of the following documents that have the person's name and full 
residence address:
    (i) Bank statement dated within 90 days
    (ii) Canceled check, dated within 90 days, with imprinted name and 
address
    (iii) Voter registration
    (iv) Vehicle registration card or title
    (v) Vehicle insurance card or policy displaying the address
    (vi) Utility, telephone, cable, or satellite television bill dated 
within 90 days
    (vii) Checking, savings, or financial account statement
    (viii) Property tax bill or receipt
    (ix) Mortgage account statement, deed, or other proof of 
homeownership
    (x) Residential rental contract with signatures, including a lease
    (xi) Mail from a federal, state, or local government agency dated 
within 90 days
    (xii) Sales tax or business license
    (xiii) Credit card statement dated within 90 days
    (xiv) Residential service contracts dated within 90 days
    (xv) Selective Service Card
    (xvi) Copy of a federal or state income tax filing
    (xvii) Valid state-issued professional license
    (2) Members of the Armed Forces on active duty who claim residence 
in the state in which their permanent duty stations are located may 
prove residence by submitting a copy of their PCS orders. They are not 
required to provide any other residence verification document.
    (h) Electronic Forms 4473. A licensee may use and maintain 
electronic Forms 4473, known as e-Forms 4473, provided the licensee 
meets all of the following requirements:
    (1) The licensee uses the most current electronic version of e-Form 
4473 from the ATF website or from a qualifying provider (published 
annually in the Federal Register and on ATF's website), except that ATF 
may authorize licensees to use older forms temporarily when ATF is 
transitioning between versions of the form.
    (2) The licensee maintains e-Forms 4473 in a system and in a manner 
that complies with the requirements for electronic records in Sec.  
478.130 of this part, except that licensees must back up e-Forms 4473, 
including pending and incomplete forms, to a physical storage device 
(e.g., hard drive, DVD, server) at the licensee's business premises at 
least daily and must retain the forms in the system when a transaction 
is completed or stopped for any reason. Licensees do not have to 
conduct the back-ups required under Sec.  478.130(e)(1) for Forms 4473.
    (3) The licensee saves Form 4473 in an unalterable format and may 
not delete, amend, replace, or otherwise alter it. If a licensee or 
transferee subsequently finds errors on the form, they may: make 
corrections to a copy of the original form (electronic or paper), note 
the date, time, reason for the correction and name and signature of the 
person who made the correction on the copy, then include the change 
copy in the same electronic file as the original (as required for any 
supplemental document under Sec.  478.130(a)(4)), and comply with the 
data integrity and audit trail requirements of Sec.  478.130(c).
    (4) If the e-signature or any other part of e-Form 4473 is not 
available or fails to function, the licensee must print a Form 4473 to 
complete it and then either retain the form on paper or scan and load 
it to a storage device; and
    (5) If an ATF official requests access to required records pursuant 
to Sec.  478.23 or other legal authority, the licensee must be able to 
provide e-Forms 4473 immediately and in the format requested by the 
official (e.g., in electronic form on a physical storage device, by 
email, or on paper).
    (6) The licensee complies with all laws and other regulations 
applicable to paper Forms 4473 (except changes necessary to enable 
electronic use).
    (i) Record-keeping requirements. A licensed manufacturer, importer, 
or dealer must retain in alphabetical (by name of purchaser), 
chronological (by date of disposition), or numerical (by transaction 
number) order, and as a part of their required records: each Form 4473; 
true copies of any permits or license; sworn statements; and other 
required information; evidence of CLEO notification when required, 
along with evidence that the CLEO received or did not accept the Form 
4473; and all other documents or copies obtained in the course of 
transferring the firearms. The licensee must retain these records for 
the period required in Sec.  478.129 as part of the records subpart H 
of this part requires the licensee to keep. This section's record-
keeping requirements are in addition to any other record-keeping 
requirement contained in this part.
    (Paragraph (c) approved by the Office of Management and Budget 
under control numbers 1140-0020 and 1140-0060; all other record-keeping 
approved by the Office of Management and Budget under control number 
1140-0020.)


Sec.  478.131  [Reserved]

0
6. Remove and reserve Sec.  478.131.


Sec.  478.134  [Amended]

0
7. Amend Sec.  478.134 by revising the section heading to read 
``Selling firearms to law enforcement officers'' and removing from 
paragraphs (a) and (c) the words ``or Form 5300.35''.

Robert Cekada,
Director.
[FR Doc. 2026-09182 Filed 5-7-26; 8:45 am]
BILLING CODE 4410-FY-P