§ 478.73 Notice of revocation, suspension, or imposition of civil fine.

  1. a.(a) Basis for action. The Director may issue an ATF Form 4500 to notify a licensee whenever the Director has reason to believe that:

    1. 1.(1) The licensee has willfully violated any provision of the Act or this part and ATF intends to revoke the license;

    2. 2.(2) The licensee does not have secure gun storage or safety devices available at any place in which firearms are sold under the license to persons who are not licensees and ATF intends to revoke the license (except in any case in which a secure gun storage or safety device is temporarily unavailable because of theft, casualty loss, consumer sales, backorders from a manufacturer, or any other similar reason beyond the control of the licensee);

    3. 3.(3) The licensee has knowingly transferred a firearm to an unlicensed person and knowingly failed to comply with the requirements of 18 U.S.C. 922(t)(1) with respect to the transfer and, at the time that the transferee most recently proposed the transfer, the national instant criminal background check system was operating and information was available to the system demonstrating that transfer to the transferee or their receipt of a firearm would violate 18 U.S.C. 922(d), 922(g), or 922(n) (as applicable), or state, local, or tribal law, and ATF intends to revoke or suspend the license or impose a civil fine, pursuant to 18 U.S.C. 922(t)(5) and 18 U.S.C. 924(p); or

    4. 4.(4) The licensee has violated 18 U.S.C. 922(z)(1) by selling, delivering, or transferring any handgun to any person other than a licensee, unless the transferee was provided with a secure gun storage or safety device for that handgun, and ATF intends to revoke or suspend the license or impose a civil fine, pursuant to 18 U.S.C. 922(t)(5) and 18 U.S.C. 924(p).

    a licensee has willfully violated any provision of the Act or this part, a notice of revocation of the license, ATF Form 4500, may be issued. In addition, a notice of revocation of the license, on ATF Form 4500, may be issued whenever the Director has reason to believe that a licensee fails to have secure gun storage or safety devices available at any place in which firearms are sold under the license to persons who are not licensees (except in any case in which a secure gun storage or safety device is temporarily unavailable because of theft, casualty loss, consumer sales, backorders from a manufacturer, or any other similar reason beyond the control of the licensee). In addition, pursuant to 18 U.S.C. 922(t)(5) and 18 U.S.C. 924(p), a notice of revocation, suspension, or imposition of a civil fine may be issued on ATF Form 4500 whenever the Director has reason to believe that a licensee has knowingly transferred a firearm to an unlicensed person and knowingly failed to comply with the requirements of 18 U.S.C. 922(t)(1) with respect to the transfer and, at the time that the transferee most recently proposed the transfer, the national instant criminal background check system was operating and information was available to the system demonstrating that transfer to the transferee or their receipt of a firearm would violate 18 U.S.C. 922(d), 922(g), or 922(n) (as applicable), or State, local, or Tribal law; or that a licensee has violated 18 U.S.C. 922(z)(1) by selling, delivering, or transferring any handgun to any person other than a licensee, unless the transferee was provided with a secure gun storage or safety device for that handgun.

  2. b.(b) Issuance of notice.Issuing the notice. The notice shall set forth the matters of fact constituting the violations specified, dates, places, and the sections of law and regulations violated. The Director shallmust afford the licensee 15 days from the date of receipt of the notice in which to request a hearing prior to suspension or revocation of the licensebefore ATF suspends or revokes the license,, or imposition ofor imposes a civil fine. If the licensee does not file a timely request for a hearing, the Director shallwill issue a final notice of suspension or revocationsuspending or revoking the license and/or imposition of aor imposing a civil fine on ATF Form 5300.13, as provided in § 478.74.

  3. c.(c) Definition of willfully, For purposes of this section, “willfully” means that the person intends to engage in conduct that the law forbids and acts with actual knowledge that the person’s conduct is unlawful.

    1. 1.(1) Failing to prevent a violation from recurring, Evidence of repeated violations with knowledge of the law’s requirements may be sufficient to establish willfulness. However, in every case, the totality of the circumstances must be considered to determine willfulness, including the nature of the repeated violations and whether they resulted from inadvertent error.

    2. 2.(2) Willful blindness. Persons are deemed to act willfully if they take deliberate actions to avoid learning that they are violating a law or regulation. Willful blindness will also satisfy the actual knowledge requirement in paragraphs (1) and (3) of this definition.

    3. 3.(3) Person with supervisory authority. A licensee or responsible person (who was not a principal in or an accessory to committing a violation) is deemed to act willfully based on conduct by the person’s employee if, and only if, the licensee or responsible person has actual knowledge that the employee has violated a law or regulation and ratifies the violation by doing any of the following—

      1. i.(i) Failing to take action to cure the violation, if the violation is susceptible of being cured;

      2. ii.(ii) Concealing the violation; or

      3. iii.(iii) Failing to take appropriate remedial or disciplinary action against the employee who committed the violation.