Biden Administration Closes “Gun Show Loophole”
The Biden Administration unveiled a new rule, marking the biggest shift in the gun industry since the Brady Bill – closing the so-called “gun show loophole."
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The Biden Administration unveiled a new rule, marking the biggest shift in the gun industry since the Brady Bill – closing the so-called “gun show loophole."
Under Final Rule 2022R-17F, firearm transactions – whether private, online, or in-store -- will be subject to a background check.
“Under this regulation, it will not matter if guns are sold on the internet, at a gun show, or at a brick-and-mortar store: if you sell guns predominantly to earn a profit, you must be licensed, and you must conduct background checks,” attorney general Merrick Garland told reporters during a press call.
What does this mean for gun owners, and what changes are coming?
Keep reading as we walk you through the Final Rule, where it came from, and how this impacts you.
Table of Contents
What is Final Rule 2022R-17F?
Authored by the Bureau of Alcohol, Tobacco, Firearms, and Explosives under the Department of Justice, the Final Rule 2022R-17F: “Engaged in the Business” As a Dealer in Firearms broadens and redefines who is considered to be in the firearms dealing business.
Under the Ruling, any persons deemed to be “engaged in the business” must have a Federal Firearms License and that means they must also conduct a background check when transferring a firearm.
Further, the Rule makes it clear that its scope is not just in brick-and-mortar but applies to online sales and gun shows. Basically, where the gun sale happens doesn’t matter. If you’re considered to be “engaged in the business,” then you have to run a background check, period.
But who is a dealer under this Ruling? Keep reading to find out…
Who Is “Engaged in the Business” As A Dealer in Firearms?
Housed in the 466-page Final Rule, the ATF lays out new definitions of who is considered to be a dealer in firearms or rather “engaged in the business.” While the Bureau has a hard time nailing down a specific definition, they offer loose guidelines.
In essence, a person is considered to be in the business if they meet the following criteria:
- Repetitive process of buying/selling of guns to earn a profit
- Activities that indicate business engagementRepeatedly buying/selling firearms in a short time spanSelling guns soon after purchasingBuying or selling guns that suggest an ongoing business, such as devoting time, attention, and labor to that end
It’s worth noting that previously, a person had to be focused on making a living from the sale of firearms to be considered a dealer, but the Ruling amends that. Now, a person is considered “engaged in the business” if the intention is to make a profit – the ability to sustain livelihood is no longer relevant.
Exemptions are carved out for hobbyist gun owners who occasionally trade firearms for the betterment of their personal collections. The ATF says that does not qualify as “engaged in the business” and, therefore, hobbyists do not need a Federal Firearms License (FFL) as they would not be dealers.
TL;DR: If you’re buying and selling guns in a short time span and/or you’re buying/selling with the intent to make a profit, the ATF considers you in the biz, and you’ll need to possess an FFL and conduct background checks.
Where Did the Final Rule Come From?
The “Engaged in the Business” Final Rule was the result of the Bipartisan Safer Communities Act (BPSCA) – a bill that was rushed through Congress and signed into law in 2022.
Under the BPSCA, provisions were outlined to impose “enhanced background checks” and also clarify who is considered a dealer and, therefore, needs an FFL.
“Every year, thousands of unlicensed gun dealers sell tens of thousands of guns without a background check, including to buyers who would have failed one – domestic abusers, violent felons, and even children,” Vice President Kamala Harris said in a statement.
“This single gap in our federal background check system has caused unimaginable pain and suffering. Today, as the head of the White House Office of Gun Violence Prevention, I am proud to say that all gun dealers must conduct background checks no matter where or how they sell.”
Though the Final Rule re-brands who does and doesn’t need a license, President Joe Biden said that’s not enough. He has indicated he wants Congress to take it a step further with sweeping universal background checks.
“My Administration is taking action to make sure fewer guns are sold without background checks. This is going to keep guns out of the hands of domestic abusers and felons,” Biden said.
“And my Administration is going to continue to do everything we possibly can to save lives. Congress needs to finish the job and pass universal background checks legislation now.”
Pro-2A groups, on the other hand, have said that the BPSCA and its provisions, like this Final Rule, are merely an attempt to grab guns from law-abiding citizens.
“The president is claiming this will keep guns out of the hands of felons, and he knows better,” Second Amendment Foundation founder and Executive Vice President Alan M. Gottlieb said in a press release.
“If history has taught us anything, it would be that criminals do not obtain the guns they use through legitimate channels, and that gun control laws have never prevented criminals from obtaining a firearm. All this rule will accomplish is to place yet another burden on honest citizens wanting to exercise their Second Amendment rights.”
SAF notes that according to 2016 research conducted by the federal Bureau of Justice Statistics, gun shows account for less than 0.8% of guns used by convicted criminals.
What This Means for Gun Owners?
If you are a hobbyist or someone who sometimes sells a gun to buy something else for their personal collection – nothing changes…for now.
If you like to buy/sell on a more consistent basis or you’re a regular at the gun show, you’re going to need to get your FFL, and you’ll have to make purchasers go through the same background checks as brick-and-mortar stores.
As with any Final Rule, it takes effect 30 days after it’s been published in the Federal Registrar. As of April 12, the Final Rule has not been officially published, but our best guess is that it’s coming in mid-to-late May.
This ruling has opened the door for potential universal background check laws to be considered by Congress. Additionally, it continues to show that the ATF can and will amend federal law.
Several pro-gun groups and legislators have responded to the announcement, promising swift action.
“It is almost certain to be challenged in federal court,” the Second Amendment Foundation said.
FAQs
Final Thoughts
Final Rule 2022R-17F: “Engaged in the Business” As a Dealer in Firearms redefines who’s considered to be in the firearms dealing business.
If you sell occasionally to improve your gun collection, you’re okay for now. However, if you sell more frequently and for profit, you will need a license moving forward.
Editor’s Note: This is a developing story, and Pew Pew Tactical journalists will continue to follow it closely. We will update this article as new developments and details emerge.