FAs - Conduct of Biz Part 1

Federal Firearms Laws and Regulations

• The Gun Control Act (GCA) regulates the manufacture, importation, sale, and transfer of firearms and ammunition by Federal Firearms Licensees (FFLs).

Disabilities and Relief from Disabilities

• The following persons are prohibited from possessing firearms:
  • Convicted felons
  • Fugitives from justice
  • Unlawful users of controlled substances
  • Persons adjudicated as mental defectives or committed to a mental institution
  • Aliens illegally or unlawfully in the United States
  • Persons dishonorably discharged from the Armed Forces
  • Persons who have renounced their U.S. citizenship
  • Persons subject to certain domestic restraining orders
  • Persons convicted of misdemeanor crimes of domestic violence
  • Persons under indictment for a crime punishable by imprisonment for a term exceeding one year
• A person subject to a disability may seek relief from the disability, but a Congressional appropriations ban has been in place since 1992 for all individuals except corporations.

Governmental Entities Exception

• Governmental entities, including the United States, states, and political subdivisions, are exempt from complying with the Gun Control Act, except for employees convicted of misdemeanor crimes of domestic violence.

Licensing

• A person must file an application and receive a license from the Attorney General to engage in the business of importing, manufacturing, or dealing in firearms or ammunition.
• Types of federal firearms licenses include:
  • Dealer, including pawnbroker, in firearms
  • Manufacturer of ammunition
  • Manufacturer of firearms
  • Importer of firearms
  • Collector of curios and relics
  • Dealer in destructive devices
  • Manufacturer of destructive devices
  • Importer of destructive devices
• To qualify for a license, an applicant must:
  • Be 21 years of age or older
  • Not be prohibited from transporting, shipping, or receiving firearms or ammunition
  • Not have willfully violated the GCA or its regulations
  • Not have made false statements or failed to disclose material information
  • Have a premises in a state from which to conduct business
  • Certify that the business will comply with state and local laws
  • Send a notice to the chief law enforcement officer of the locality in which the premises are located

Revocation of Licenses

• The Attorney General may revoke a license for:
  • Willful violations of the GCA or its regulations
  • Failing to have secure gun storage or safety devices available
  • Willfully transferring armor-piercing ammunition
  • Willfully transferring a firearm to an unlicensed person without a background check
  • Violating the secure gun storage or safety device requirements
• To establish willfulness, ATF may consider:
  • Prior notice of violations
  • Statements or admissions indicating a purposeful disregard for the law
  • Inherently willful activities, such as falsifying documents
  • A prior criminal or compliance history
  • Actions designed to obstruct or interfere with law enforcement activity

Suspensions and Fines

• Licenses may be suspended or have a civil fine imposed for:
  • Willfully transferring a firearm without a background check
  • Violating the secure gun storage or safety device requirements
• Suspension periods and fine amounts are specified in the GCA.

License Proceedings

• A licensee may request a hearing to review a denial, revocation, suspension, or fine.
• The Director of Industry Operations arranges the hearing, and a final agency decision is made.
• An aggrieved licensee may file a petition for de novo review with the United States district court for the district in which they reside or have their principal place of business.

Criminal Offenses by Licensees

• ATF has a policy of initiating criminal investigations only when an FFL engages in activities such as dealing in stolen or contraband firearms, knowingly supplying firearms to prohibited persons or violent offenders, or willful violations that result in firearms being acquired by prohibited persons.
• Criminal offenses committed by licensees include:
  • Making false statements or representations
  • Willful sale or delivery of firearms without recording the transferee's name, age, and residence
  • Willful failure to report multiple sales or theft/loss
  • Falsifying records or failing to maintain required records
  • Selling or delivering firearms to prohibited persons
  • Selling or delivering firearms to underage persons### Brady Handgun Violence Prevention Act
• Enacted following the assassination attempt on President Ronald Reagan, which wounded the President and resulted in permanent disabilities for his press secretary, James Brady
• Aims to establish an "instant" check system for conducting background checks prior to firearms being transferred to unlicensed persons by a firearms licensee

Interim Brady (February 27, 1994 - November 30, 1998)

• Codified at 18 U.S.C.§ 922(s)
• Sunset on November 30, 1998, upon implementation of the "permanent provision" of the law and the National Instant Criminal Background Check System (NICS)

Permanent Brady (Effective November 30, 1998)

• Codified at 18 U.S.C.§ 922(t)
• Requires federally licensed manufacturers, importers, and dealers to contact NICS prior to the transfer of any firearm to an unlicensed person
• Transfer can only occur if the licensee receives a unique identification number approving the transfer or waits 3 business days without notification that the transfer would violate 18 U.S.C.§ 922(g) or (n) or State law

What Constitutes a "Transfer" for NICS Purposes

• Pawn redemptions are considered "transfers" for NICS purposes
• Consignment sales/returns are considered "transfers" for NICS purposes
• The return of a repaired or replacement firearm of the same kind and type to the person who provided the firearm to the licensee is not a "transfer" for NICS purposes and does not require a NICS check

NICS Check Exceptions

• Presentation of an alternative permit that allows possession or acquisition of a firearm and has been issued within the last 5 years
• NFA firearms approved for transfer by ATF where the transferee is an individual or responsible person of a partnership, company, association, trust, or corporation
• Compliance with NICS has been certified impracticable

Review Objectives

• Identify Federal firearms disabilities imposed by 18 U.S.C.§ 922(d), (g), and (n)
• Identify the Gun Control Act provision that authorizes the granting of relief from Federal firearms disabilities
• Explain the application of the Gun Control Act to governmental entities
• List types of firearms licenses and describe the types of activities that require a person/entity to obtain a license
• Identify the qualifications for a Federal firearms license
• Identify potential criminal offenses by Federal firearms licensees
• Identify the requirements of the Brady law