§ 555.57 Change of control, change in responsible persons, and change of employees.

  1. a.(a)Change of control. In the case of a corporation or association holding a license or permit under this part, if actual or legal control of the corporation or association changes, directly or indirectly, whether by reason of change in stock ownership or control (in the corporation holding a license or permit or in any other corporation), by operation of law, or in any other manner, the licensee or permittee shall, within 30 days of the change, give written notification executed under the penalties of perjury, to the Chief, Federal Explosives Licensing Center. Upon expiration of the license or permit, the corporation or association shall must file an ATF F 5400.13 or an ATF F 5400.16 as required by § 555.45, and pay the fee prescribed in § 555.42(b) or § 555.43(b).

  2. b.(b) Each person holding the license or permit must report to the Chief, Federal Explosives Licensing Center, any change in responsible persons or employees authorized to possess explosive materials. Such report must be submitted within 30 days of the change and must appropriate identifying information for each responsible person. Reports relating to newly hired employees authorized to possess explosive materials must be submitted on ATFF 5400.28 for each employee. Changes in responsible persons.

    1. 1.(1) Licensees/permittees must report to the Chief, FELC, each responsible person they add to a license/permit, within 30 days after the date they hire that person. The licensees/permittees must submit this report on ATF Form 5400.27 and must also include photographs and fingerprint cards for every new responsible person. Licensees/permittees must also, within 30 days after the date the responsible person leaves or otherwise ceases to be a responsible person for the licensee/permittee, notify the Chief, FFLC, in writing that the individual is no longer their responsible person.

    2. 2.(2) Upon receiving a Form 5400.27, the Chief, FELC, will conduct a background check, in accordance with § 555.33.

  3. c.(c) Upon receipt of a report, the Chief, Federal Explosives Licensing Center, will conduct a background check, if appropriate, in accordance with §  555.33. Changes in employees authorized to possess explosive materials.

    1. 1.(1) Licensees/permittees must report to the Chief, FELC, each employee they authorize to possess explosive materials, within 30 days after they hire that employee or authorize them to possess explosives. Licensees/permittees must submit this report on ATF Form 5400.28. Licensees/permittees must also, within 30 days after the date the employee ceases to be an employee authorized to possess explosive materials on behalf of the licensee/permittee, notify the Chief, FFLC, in writing that the individual is no longer an employee authorized to possess explosive materials for the licensee/permittee.

    2. 2.(2) Upon receiving a Form 5400.28, the Chief, FELC, will conduct a background check, in accordance with § 555.33.

  4. d.(d) Possessing explosive materials. ATF will not initiate action to revoke or suspend a license/permit under section 843(d) of the Act on the basis that the licensee/permittee employed a person prohibited under section 842(i) of the Act as a responsible person or in a role that required possessing explosive materials, provided that:

    1. 1.(1) The licensee/permittee has complied with the provisions of paragraphs (b)(1) and (c)(1) of this section, as appropriate;

    2. 2.(2) Neither the licensee/permittee, nor any responsible person for the licensee/permittee, knows, or has reason to know, that the new responsible person or authorized employee is prohibited from possessing explosive materials, either before or at any point during the person's employment; and

    3. 3.(3) Upon learning any information indicating that the responsible person or authorized employee is prohibited from possessing explosive materials, whether from the results of a background check conducted under paragraph (c)(2) of this section or otherwise, the licensee/permittee ceases to continue employing the employed person as a responsible person or in a role that requires possessing explosive materials.

  5. e.(e)Records retention period. The reports required by paragraphb (b) of this section must be retained as part of a licensee's or permittee's permanent records for the period specified in § 555.121. Licensees/permittees must retain reports required by paragraphs (b) and (c) of this section as part of their permanent records for the period specified in § 555.121.