May I consign my NFA items to an FFL/SOT?

Consignment

One of the more common questions I am asked is whether the owner of an NFA item may consign it to an FFL/SOT to facilitate a sale.

The answer, like so many where the NFA is concerned, is both “Yes” and “no.

Let me explain …

Yes” a seller may send pictures and details of an NFA item to an FFL/SOT who will then attempt to facilitate a sale.  If the resulting buyer lives in the same state as the seller then they may do a private Form 4 transfer between them.  If the buyer is in another state then the seller must do a Form 4 transfer to an FFL/SOT in the buyer’s state of residence who will then do a Form 4 transfer to the buyer.

But “no” you may not deliver the NFA item itself into the possession of an FFL/SOT without doing a Form 4 transfer and paying the accompanying transfer tax.

I have heard rumors that some FFL/SOTs will take an NFA item in for ‘repairs’, which does not require a transfer tax, and then show the item to prospective buyers while it is waiting to be ‘repaired’.  I would not suggest using such a tactic to skirt the transfer tax requirement since the ATF notoriously lacks a sense of humor where tax evasion is concerned.

I should also note that these same rules apply equally to items owned by individuals or by an NFA Trust.

For more information about NFA transfers, see Chapter 9 of the ATF NFA Handbook.

Posted in ATF, BATFE, Consignment, FFL Issues, Form 4, Interstate Firearm Transfers, NFA Transfers, NFA Trusts, Non Resident Issues | Comments Off on May I consign my NFA items to an FFL/SOT?

Does the Castleman holding overrule White?

Firearms_SCOTUS_Castleman_Notice_2014There seems to be some disagreement in the legal community here in Virginia as to whether or not the decision in United States v. Castleman handed down by the United States Supreme Court earlier this year overruled the 4th Circuit’s 2010 decision in United States v. White.

I was contacted by a potential client who had received conflicting advice on whether or not he was now a prohibited person based upon a conviction that was previously held, under the White decision, to not be a prohibiting offense.

For those of you who are unfamiliar with either case, a little background is in order.

In the White case, the 4th Circuit ruled that the federal law which prohibits the purchase (18 U.S.C. 922(d)(9)) and possession (18 U.S.C. 922(g)(9)) of firearms by those who have been convicted of a ‘misdemeanor crime of domestic violence’ did not apply to Virginia cases unless the trial record clearly shows that  “force, greater than a mere offensive
touching” was used during the commission of the crime.

The basis of the White decision was the definition of ‘misdemeanor crime of domestic violence’ from 18 U.S.C. 921(a)(33)(A)(ii).  That definition states that to qualify, an offense shall have “as an element, the use or attempted use of physical force, or the threatened use of a deadly weapon, committed by a current or former spouse, parent, or guardian of the victim, by a person with whom the victim shares a child in common, by a person who is cohabiting with or has cohabited with the victim as a spouse, parent, or guardian, or by a person similarly situated to a spouse, parent, or guardian of the victim.

In determining what the term ‘physical force’ meant, the White decision said that it clearly required more than “a mere offensive touching.”  Since Virginia still “retains the common law definition of battery, which includes even the slightest offensive touching as an act of battery,” absent additional findings in the record that the use of force exceeded this threshold, this definition is not met by Virginia cases.  Based upon this opinion, numerous persons were deemed not to be prohibited and their records were marked as such.

Fast forward to March of this year when the United States Supreme Court handed down a 9 – 0 ruling in the Castleman case.  The question presented boiled down to the same definitional quandary … what is meant by the term ‘physical force’ when used in 18 U.S.C. 921(a)(33)(A)(ii)?

In Castleman, the court held that the “‘physical force’ requirement is satisfied by the degree of force that supports a common-law battery conviction — namely, offensive touching.

Since this holding seems to completely negate the reasoning supporting the White decision, I believe that Castleman does overrule White.

Those who have domestic violence convictions in Virginia who were previously flagged as not prohibited will now be considered prohibited by the Virginia State Police and the federal government and will be subject to possible criminal prosecution if they answer that question incorrectly on a purchase form.

I should note that there are attorneys in Virginia who disagree with this analysis but until we see an opinion holding otherwise, I will advise my clients who are in this situation to seek a pardon as the only available legal remedy.

Posted in 4th Circuit, ATF, BATFE, Criminal Law, Domestic Violence, Federal Law, Virginia Law, Virginia State Police | Comments Off on Does the Castleman holding overrule White?

Does a protective order affect suppressors as well as firearms?

Protective_OrderThe issuance of a protective order has become an increasingly common event in our judicial system and those who own firearms need to be particularly aware of the implications of becoming the subject of such an order. And this is certainly true of those who own a valuable NFA collection.

By now, I believe that most people understand that during the time a person is subject to a protective order, they may be subject to a prohibition on the possession of a firearm. However, in an interesting twist on the topic, I received a call from a potential client this morning asking whether this prohibition on possession might also apply to suppressors.

My initial thought was that suppressors are not firearms and are little different than a scope or other accessory.

However, I knew better than to apply the cold light of pure logic to a legal question and so I started with a quick review of Virginia state law.

Section 18.2-308.1:4 of the Code of Virginia governs the purchase or transportation (but not mere possession) of firearms by persons subject to protective orders.

It is unlawful for any person who is subject to (i) a protective order … to purchase or transport any firearm while the order is in effect. Any person with a concealed handgun permit shall be prohibited from carrying any concealed firearm, and shall surrender his permit to the court entering the order, for the duration of any protective order referred to herein. A violation of this section is a Class 1 misdemeanor.

A quick review of Virginia law and case law fails to show that the term ‘firearm’ should be expanded to encompass a suppressor and in any case, Virginia law only prohibits the purchase and transportation of ‘firearms’.  It does not prohibit their continued possession.

So … It appears that we do not have a state law issue. Now we turn to federal law.

18 U.S.C. 922(g)(8) is the federal statute which governs the transportation and possession of firearms (and ammunition) by those subject to certain protective orders.

(g) It shall be unlawful for any person

(8) who is subject to a court order that—

(A) was issued after a hearing of which such person received actual notice, and at which such person had an opportunity to participate;

(B) restrains such person from harassing, stalking, or threatening an intimate partner of such person or child of such intimate partner or person, or engaging in other conduct that would place an intimate partner in reasonable fear of bodily injury to the partner or child; and

(C) (i) includes a finding that such person represents a credible threat to the physical safety of such intimate partner or child; or

(ii) by its terms explicitly prohibits the use, attempted use, or threatened use of physical force against such intimate partner or child that would reasonably be expected to cause bodily injury; …

to ship or transport in interstate or foreign commerce, or possess in or affecting commerce, any firearm or ammunition; or to receive any firearm or ammunition which has been shipped or transported in interstate or foreign commerce.

It should be noted that this only applies to certain protective orders that meet enhanced requirements.  However, we are once again left with the term ‘firearm’ that may be subject to definition.  In fact, we do have such a definition in 18 U.S.C. 921(a)(3).

(a) As used in this chapter

(3) The term “firearm” means

(A) any weapon (including a starter gun) which will or is designed to or may readily be converted to expel a projectile by the action of an explosive;

(B) the frame or receiver of any such weapon;

(C) any firearm muffler or firearm silencer; or

(D) any destructive device. Such term does not include an antique firearm.

So there you have it.  If you are subject to a protective order that meets the requirements of 18 U.S.C. 922(g)(8) then you must treat your suppressor just like a firearm or ammunition and the federal prohibition on possession and transportation will apply.

If you are uncertain whether the protective order against you meets these requirements, the following chart provided by the ATF should be of some assistance.  If you match at least one diamond from each section then you are subject to the federal prohibition.

Protective_Order_Federal_Chart

 

Should you receive notice that you are subject to such a protective order, I recommend immediately surrendering possession and control of your firearms, suppressors, and ammunition to a joint trustee of your trust if you are using a trust to hold your items, or, if not, to a trusted friend or family member for the duration of the protective order.

Posted in Federal Law, NFA Trusts, Protective Orders, Suppressors | Comments Off on Does a protective order affect suppressors as well as firearms?

Why requiring strict scrutiny of gun laws would be a good thing

Constitutional_ScrutinyYesterday I received a call from a friend in Alabama who wanted my opinion on a proposed amendment to the Alabama Constitution which will be on the statewide ballot this election.

The proposed amendment, known as Alabama Amendment 3, is apparently generating a great deal of controversy in the local gun rights community despite being characterized by gun control advocates as an ‘extreme’ pro-gun measure.

Why the concern?  Let’s start with the text of the proposed amendment.

The amendment which, if approved by the voters, would “provide that every citizen has a fundamental right to bear arms and that any restriction on this right would be subject to strict scrutiny; and to provide that no international treaty or law shall prohibit, limit, otherwise interfere with a citizen’s fundamental right to bear arms”, is actually being attacked by certain elements in Alabama as somehow being a back-door gun control bill.

According to a recent news report, those who oppose the amendment believe that “Amendment 3 changes the right to bear arms from one that “shall forever remain inviolate” to one that can be changed so long as the standards of strict scrutiny are met.

This position is based upon a truly flawed understanding of how constitutional rights are protected by the courts and how the Alabama courts have already ruled on the issue.

My friend asked if I would write an article that could explain the issue in simple terms and I hope the following will assist those not familiar with the issue to better understand why such an amendment would be a powerful protection for gun rights at the state level.

1)  Alabama’s constitution contains a provision which protects the right to keep and bear arms.  Specifically, Article I Section 26 of the Alabama Constitution states “That every citizen has a right to bear arms in defense of himself and the state.

2)  No constitutional right is treated by the courts as absolute.  In fact, in the 1980 case of Hyde v. City of Birmingham, the Alabama court of appeals seemed to apply a quite liberal standard in analyzing the right:

… The constitution in declaring that, ‘Every citizen has the right to bear arms in defence of himself and the State,’ has neither expressly nor by implication, denied to the Legislature, the right to enact laws in regard to the manner in which arms shall be borne. The right guaranteed to the citizen, is not to bear arms upon all occasions and in all places, but merely ‘in defence of himself and the State.’ The terms in which this provision is phrased seem to us, necessarily to leave with the Legislature the authority to adopt such regulations of police, as may be dictated by the safety of the people and the advancement of public morals….

3)  How far the courts are willing to go before declaring that a law violates a constitutional protection is known as the ‘level of scrutiny’.  In the Hyde case above, the court went on to explain where they would draw the line:

A statute which, under the pretence of regulating, amounts to a destruction of the right, or which requires arms to be so borne as to render them wholly useless for the purpose of defence, would be clearly unconstitutional. But a law which is intended merely to promote personal security, and to put down lawless aggression and violence, and to that end inhibits the wearing of certain weapons, in such a manner as is calculated to exert an unhappy influence upon the moral feelings of the wearer, by making him less regardful of the personal security of others, does not come in collision with the constitution.

4)  The three basic levels of review are (in order of severity); rational basis, intermediate scrutiny, and strict scrutiny (with other tests being employed for certain rights that are far beyond the scope of this discussion).

Rational basis requires only that the objective of the law be “rationally related to a legitimate government interest.”  When this standard is used, practically any law will withstand scrutiny so long as the government can articulate some vague ‘legitimate interest’ they are serving to protect by passing the law.  In the case of gun laws, this will usually be ‘public safety’.

Intermediate scrutiny is a tougher standard than rational basis and requires that the law being challenged “furthers an important government interest in a manner substantially related to that interest.”  From the Hyde case above, this appears to be the current standard by which gun rights cases are reviewed in Alabama.  It is better than rational basis but not the best for gun owners.

Strict scrutiny is the highest standard or review for fundamental rights.  It requires that the law being challenged “furthers a compelling government interest in a manner that is both narrowly tailored and is the least restrictive possible means.”  This is the gold-standard by which advocates wish all rights to be judged.

In summary:

  • Alabama does have a constitutional provision protecting the right to keep and bear arms.
  • The courts treat all constitutional rights as not absolute.
  • The courts will use some level of review when deciding cases.
  • The courts appear to currently be using a version of intermediate scrutiny.
  • Strict scrutiny is far better than intermediate scrutiny if your goal is to protect the right.
  • The amendment would require the courts to use strict scrutiny in the future.
  • Therefore, passage of the amendment would be a huge victory for advocates of the right to keep and bear arms.

Disclaimer:  I am not licensed to practice law in the state of Alabama and am writing this article as an educational tool focused on the general issues of constitutional law. Nothing herein should be construed as legal advice nor does it give rise to an attorney-client relationship.

Posted in Level of Scrutiny, State Constitutional Provisions, Strict Scrutiny | Comments Off on Why requiring strict scrutiny of gun laws would be a good thing

Can my trust get a curio & relic FFL?

Log_BookTonight I received a call from a friend who was wondering whether or not a trust could acquire an FFL 03 license.

For those of you unfamiliar with the different types of federal firearms licenses (FFLs), a type 03 FFL is what is commonly know as a ‘Collector of Curios and Relics License.’  However, this is commonly shortened to simply ‘C&R license.’

A C&R license allows the licensed party to acquire firearms defined as curios or relics in interstate commerce.  The official definition of a curio or relic is defined in 27 CFR 478.11 and is:

Firearms which are of special interest to collectors by reason of some quality other than is associated with firearms intended for sporting use or as offensive or defensive weapons. To be recognized as curios or relics, firearms must fall within one of the following categories:

(a) Firearms which were manufactured at least 50 years prior to the current date, but not including replicas thereof;

(b) Firearms which are certified by the curator of a municipal, State, or Federal museum which exhibits firearms to be curios or relics of museum interest; and

(c) Any other firearms which derive a substantial part of their monetary value from the fact that they are novel, rare, bizarre, or because of their association with some historical figure, period, or event. Proof of qualification of a particular firearm under this category may be established by evidence of present value and evidence that like firearms are not available except as collector’s items, or that the value of like firearms available in ordinary commercial channels is substantially less.

Therefore, if a trust could acquire a C&R license in the name of the trust then many curio and relic firearms could be acquired directly in the interest of growing a collection.

However the answer to his question is “No.  A trust cannot hold an FFL license of any kind.

Why?

Well … It really all comes down to the definition of a ‘person’.

Quoting from a letter sent by Helen Koppe who is the Chief of the Firearms Industry Programs Branch in a March 17, 2014 letter to Mr. Brandon L. Maddox of Dakota Silencer, “The term ‘person’ is defined by the GCA at 18 U.S.C. § 921(a)(1), to include ‘any individual, corporation, company, association, firm, partnership, society, or joint stock company. The definition of ‘person’ in the Gun Control Act does not include unincorporated trusts.

Now that we know that a trust is not a person for purposes of the GCA, we look to the licensing requirements under 18 U.S. Code § 923 and find that the entire section addresses the licensing of ‘persons’.

Therefore, since a trust is not a ‘person’ for purposes of the GCA, they cannot receive an FFL, C&R or otherwise.

Posted in ATF, ATF Guidance Letters, BATFE, C&R, Curio and Relic, FFL 03, FFL Issues, Firearms Technology Branch, NFA Trusts | Comments Off on Can my trust get a curio & relic FFL?