41P

Another 41P Pushback? Good News for NFA Enthusiasts.

NSSF MemberAccording to yesterday’s NSSF Bullet Points newsletter, it looks like a final ruling on 41P – the rule change that would modify the process of transferring or making NFA firearms for legal entities – may get pushed back again.

The newsletter, under the heading “No Implementation Yet Seen for Notice 41P as Final Rule” reads:  “NSSF has confirmed with ATF that the bureau is unlikely to publish Notice 41P (NFA Trusts) as a Final Rule for quite some time.  This is in part because EPS resources are being diverted to help process the 310,000 public comments received in response to the armor piercing ammunition framework proposal.  In addition, it seems ATF has not prepared to revise the NFA database so that it can track “responsible persons” for NFA trusts. The proposed rule would require the responsible person(s) on an NFA Trust be fingerprinted.

As we previously reported, the BATFE received over 9000 comments on Notice 41P and is required to address each issue raised in those comments.  With resources diverted to processing the gargantuan number of ammo ban comments, processing 41P comments – perhaps seen as a back-burner issue – may have stalled.

Short of flat-out discarding the entire 41P proposal, this lack of movement on the issue and further delay of a final ruling (if it ever even happens, instead of just quietly disappearing) is some of the better news that could come on the subject.  Further delay of a ruling gives those wishing to own NFA-regulated items, such as supressors and short-barreled rifles, using a trust (which you can even get online) more time to establish that trust and get their required paperwork filed.

ATF Receives Nearly 9,500 Comments on Proposed NFA Trust Rule Change 41P

Responses include 100+ pages from David M Goldman, 17 from NRA-ILA

BATFE LogoThe Department of Justice’s (DOJ) Bureau of Alcohol, Tobacco, Firearms, and Explosives (BATFE) received 9,479 comments filed regarding docket ATF-2013-0001:  Machine Guns, Destructive Devices and Certain Other Firearms: Background Checks for Responsible Persons of a Corporation, Trust or Other Legal Entity with Respect to Making or Transferring a Firearm.

The proposed rule change is summarized on its regulations.gov site as:  “The Department of Justice is planning to finalize a proposed rule to amend the regulations of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) regarding the making or transferring of a firearm under the National Firearms Act. As proposed, the rule would (1) add a definition for the term “responsible person”; (2) require each responsible person of a corporation, trust or legal entity to complete a specified form, and to submit photographs and fingerprints; and (3) modify the requirements regarding the certificate of the chief law enforcement officer (CLEO).

In layman’s terms, what 41P does is require anyone obtaining an NFA firearm as a legal entity (e.g. an NFA Trust, LLC, or Corporation) to submit fingerprints, photographs, and proof of US citizenship along with their local Chief Law Enforcement Officer’s (CLEO) approval for each purchase or transfer.  In many jurisdictions, this results in de facto ban on NFA firearms where the CLEO refuses to approve NFA transfers either because they are ignorant of NFA items or are outright anti-gun.

Among the comments received is a 17 page document filed by Chris Cox on behalf of the National Rifle Association’s Institute for Legislative Action (NRA-ILA).  In his comments, Cox references a number of other comments, including those filed by NFA Gun Trust Lawyer Blog’s David M. Goldman in his 55 page submission accompanied by another 88 pages of supporting exhibits.  Cox goes on to point out their three main objections to the change:

First, its requirements are not authorized by the NFA and are therefore illegal for the Bureau of
Alcohol, Tobacco, Firearms and Explosives (ATF) to impose. Second, the requirements could effectively block even those who are lawfully entitled to receive and possess NFA firearms from doing so under the very regime Congress created, and most states recognize, for this purpose. On the other hand, ATF has articulated no reason why the current regime has proven unworkable or how imposing these additional burdens on responsible, law-abiding persons would enhance public safety.

The comments appear to be overwhelmingly in opposition to the changes in 41P and articulate many reasons why the proposal should not be implemented.  The BATFE must now review all of the submitted comments and replies before making a decision – which is expected to come in early 2015.

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