We have an update on the ATF’s proposed NFA trust rule changes

ASA_LogoLast week, the board of the American Silencer Association (ASA) met with the NFA branch to get an update on the status of the proposed rule change regarding the use of trusts to acquire NFA items.

As you may recall, the comment period for the proposed rule change (known as 41p)  ended on December 9th of 2013 and since then we have all been waiting anxiously for the ATF to provide information about the number of valid comments submitted.

This is important because, as part of the federal administrative rulemaking process, the ATF must respond to all valid comments in writing prior to moving on to the final rulemaking process.

The ATF told the ASA that there were an astonishing 9,504 comments received.  However, approximately 1,000 of these were disqualified for vulgarity, anonymity, or non-applicability.  That still leaves around 8,500 comments, almost all of which were opposed to one or more aspects of the rulemaking.

Because of the extraordinary number of comments in opposition to the proposed rule, the ATF stated that they anticipate it will take at least a year before they will be able to move on to the final rulemaking process.

At that time, we will see what effect our comments have had on the text of the rule.  If the CLEO sign off remains as part of the final rule, or if the defects in the ‘responsible persons’ language is not addressed then there will almost certainly be legal challenges to the rulemaking process.

In the meantime, the NFA trust remains hands-down the best vehicle for NFA ownership.

Posted in 41P, ATF, BATFE, Form 1, Form 4, Machine Guns, NFA Trusts, Regulatory Rulemaking, SBR, Short Barreled Rifles, Short Barreled Shotguns | Comments Off on We have an update on the ATF’s proposed NFA trust rule changes

Can I change the name of my NFA trust?

Name_ChangeRecently I was contacted by a client who had, in years past, used a software package to make his own NFA trust.

He had successfully registered several suppressors using the trust but had run into trouble when he decided that he wanted to build an SBR.

If you are familiar with the process of building an SBR, I suspect that you can guess what the problem was.  When you ‘manufacture’ an NFA item using a Form 1, you are required to engrave the name of the ‘manufacturer’ on the resulting NFA item (usually the lower if you are building an SBR).

When it is a trust that is ‘manufacturing’ the item then it is the trust name that is considered the ‘manufacturer.’  The problem this created is that the software package had, by default, named his trust something along the lines of ‘The John Andrew Pierce Revocable Living Trust of August 2011.’

That was not going to fit on his lower.

He contacted me to ask the question “Can I change the name of my trust?”

Unfortunately the answer is “No. At least not after you have already registered at least one other item in the National Firearms Registration and Transfer Record (NFRTR) with the existing trust name.”

In the end we simply formed a new trust to hold his future NFA items.  But there are two lessons to be learned here:

  1. Choose the name of your trust carefully because it will be with you a long time.
  2. Think long and hard before using a software package or prepackaged forms to create a trust for ownership of items that can literally have criminal consequences if handled improperly.
Posted in ATF, BATFE, Form 1, NFA Trusts, SBR | Comments Off on Can I change the name of my NFA trust?

ATF eForms offer significantly improved wait times

logo_eFormsAs more and more people join the ranks of NFA collectors, wait times for paper applications have increased significantly.

But with the advent of ATF eForms there is hope!

One of my clients submitted their eForm application on September 25th and received their approval on January 4th.

That is a 100 day turnaround!

While I certainly cannot guarantee such results, I can say that using eForms will almost certainly result in a faster processing time than a traditional paper application.

Posted in ATF, BATFE, eForms, Form 1, Form 4, NFA Trusts | Comments Off on ATF eForms offer significantly improved wait times

It’s time to comment on ATF’s disastrous proposed rulemaking

ATF_RegsFor those of you who are not familiar with the issue, the ATF is proposing to modify the regulations governing NFA applications for trusts, corporations, and other non-individual legal entities.

If you are not a NFA collector, you might be tempted to ask “Why should I care?”  The answer is that the proposed rulemaking will have disastrous consequences for collectors, the firearms industry, and ultimately the Second Amendment itself.

The Issue

Current ATF regulations require an individual applicant to comply with a number of requirements that ‘legal-entity’ applicants are exempt from.  The most important of these is the requirement that applicants get ‘approval’ from their local chief law-enforcement officer (CLEO) before an application may be submitted.  This is known colloquially as the ‘CLEO Sign-off.’

In many jurisdictions, the CLEO will not sign the form which acts as a complete and arbitrary ban on the acquisition.

That’s where the NFA trust (or other legal entity) comes into the picture.  Currently, legal-entity applicants do not need CLEO Sign-off.  This allows applicants in those jurisdictions where the CLEOs will not sign to avoid the de-facto ban that individual applicants face.

The proposed change wants to do away with this option.  It would require that all ‘responsible persons’ of a legal entity complete the same requirements that individual purchasers must currently complete including the process of securing a CLEO sign off which would subject legal-entity applicants to the same arbitrary bans that CLEOs have been using against individual applicants.

But it doesn’t end there.  The proposed change would also require that any new ‘responsible person’ of the legal entity submit a form  5320.23 along with fingerprints, photographs, and CLEO sign-off within 30 days of assuming their position with the legal entity.

What Can You Do To Help?

The rulemaking process requires that the public and those affected by a proposed rule have an option to comment on the proposed rule.  This is known as the ‘notice and comment period.’  The notice and comment period for this proposed rulemaking ends on December 9th.

We need you to make your voice heard.  At the bottom of this article is a link that will take you to Regulations.gov where you may submit your own comment.  The following are suggested comments you might consider:

Suggested Comment #1

Rulemaking which imposes such a significant burden upon both citizens and industry should not be undertaken lightly.  Here, we have burdensome rulemaking which has the potential to damage or destroy segments of one of America’s few growing industries and it is not based upon an identified problem.  Rather, it is based upon mere conjecture.

Suggested Comment #2

ATF’s assertion in the proposed rulemaking that a disqualified person might form a trust or other legal entity in order to avoid undergoing a background check runs counter to current ATF directives.  Since 2009, ATF has required that the responsible party who picks up an NFA item from a dealer pursuant to an approved Form 4 and tax stamp complete a 4473 form and undergo an individual background check prior to taking possession of the NFA item.

Suggested Comment #3

NFA items are expensive, already heavily regulated, and virtually unheard of in criminal hands.  In fact, there have only been two crimes committed with NFA items during the last 79 years and both of those were crimes committed by law enforcement officers.  This despite the fact that there are over a quarter of a million legally owned pre-1986 machine guns in the ATF registry and untold tens of thousands of AOWs and suppressors.

Suggested Comment #4

The ATF stated in the proposed rulemaking that they had complied with the Regulatory Flexibility Act.  However, there is no indication in the proposed rulemaking that the needs of small businesses were considered. Instead, the ATF took a ‘one-size-fits-all’ approach to regulating which will have a devastating impact upon the many small businesses that supply the NFA market.

Suggested Comment #5

The proposed rulemaking intrudes unnecessarily upon the sovereignty of states by interfering with the lawful uses of trust instruments for legitimate estate planning purposes.  In addition, the proposed rulemaking demonstrates a complete lack of understanding of the many ways that a trust might be used to pass assets on to one’s heirs.  By defining the term ‘responsible person’ so broadly as to include beneficiaries, one finds oneself having to contemplate the absurd possibility of fingerprinting, photographing, and securing CLEO sign-offs for unborn children.

Suggested Comment #6

ATF’s assertion that CLEOs who had been unwilling to sign off on applications in the past would do so in the future based upon changes in the wording of the certification has been proven to be false.  When contacted, numerous CLEOs who have refused to sign in the past have stated that nothing in the new verbiage would change their mind about signing certifications in the future.  The proposed rulemaking would result in thousands of law-abiding collectors being banned from going through the very process that the ATF NFA Branch is charged with overseeing.

Suggested Comment #7

By requiring that any new ‘responsible person’ submit a 5320.23 as well as a CLEO sign-off within 30 days of their appointment, the proposed rulemaking radically intrudes upon the traditional uses of trusts and upon the rights of settlors to manage their estate plans.

Suggested Comment #8

ATF has failed to consider less intrusive forms of regulation that might accomplish the same goals.  By eliminating the CLEO sign-off and narrowing the definition of ‘responsible person’, ATF could still require fingerprints and background checks on the person primarily responsible for a legal entity application without exposing law-abiding citizens to the arbitrary and capricious CLEO sign-off ban.

Suggested Comment #9

Passage of this proposed rule would do nothing to enhance safety but would only place additional bureaucratic roadblocks in front of law-abiding collectors and swamp ATF staff who are already overwhelmed.  The result would be a drastic increase in the processing time for NFA applications and potentially a collapse of the booming suppressor industry.

These are merely suggestions.  You are welcome to pick one or more of the above comments or write your own but now that you know just how significant the issue is we are facing, I urge you to head on over to the Regulations.gov page for the proposed rulemaking and make your voice heard!

Thank you!

Posted in 41P, ATF, BATFE, Machine Guns, NFA Trusts, Short Barreled Rifles, Short Barreled Shotguns | Comments Off on It’s time to comment on ATF’s disastrous proposed rulemaking

Demystifying the age to acquire, possess, and carry handguns in Virginia

HeadScratching

Based upon a recent posting on the Virginia Citizens Defense League Facebook page there seems to be quite a bit of confusion about Virginia’s gun laws where minors and handguns are concerned.

In fact, there seems to be just as much confusion about what actually constitutes a ‘minor’.

So I thought it would be beneficial to break it down step-by-step.

Definitions

Let’s start by defining our terms.  As I noted above, there is some confusion about what is meant by the term minor.  Luckily, in Virginia we have a definitive answer.

§ 1-207 of Chapter 2.1 of the Code of Virginia which contains rules of construction tells us that “‘Child,’ ‘juvenile,’ ‘minor,’ ‘infant,’ or any combination thereof means a person less than 18 years of age.

Now that we have the term minor defined, let’s move on to the various age brackets.

Are you under 18 years of age?

Purchase / Acquisition

Those under the age of 21 are prohibited by federal law from purchasing handguns from a licensed dealer.  This is codified at 18 USC § 922(b)(1) which reads:

(b) It shall be unlawful for any licensed importer, licensed manufacturer, licensed dealer, or licensed collector to sell or deliver—

(1) any firearm or ammunition to any individual who the licensee knows or has reasonable cause to believe is less than eighteen years of age, and, if the firearm, or ammunition is other than a shotgun or rifle, or ammunition for a shotgun or rifle, to any individual who the licensee knows or has reasonable cause to believe is less than twenty-one years of age;

This leaves open the possibility that those under 18 might be able to acquire firearms from a private seller or as a gift.  Let’s look and see what state law has to say about the subject.

Where handguns are concerned, Virginia law generally prohibits any transfer to those under the age of 18.  However, there are several important exceptions.  This is codified at § 18.2-309(B) of the Code of Virginia which reads:

B. If any person sells, barters, gives or furnishes, or causes to be sold, bartered, given or furnished, to any minor a handgun, having good cause to believe him to be a minor, such person shall be guilty of a Class 6 felony. This subsection shall not apply to any transfer made between family members or for the purpose of engaging in a sporting event or activity.

There is also a federal statute which heavily restricts the ability to transfer handguns to minors.  18 U.S.C. 922(x) provides in part that:

(1) It shall be unlawful for a person to sell, deliver, or otherwise transfer to a person who the transferor knows or has reasonable cause to believe is a juvenile—

(A) a handgun; or

(B) ammunition that is suitable for use only in a handgun.

(2) It shall be unlawful for any person who is a juvenile to knowingly possess—

(A) a handgun; or

(B) ammunition that is suitable for use only in a handgun.

(3) This subsection does not apply to—

(A) a temporary transfer of a handgun or ammunition to a juvenile or to the possession or use of a handgun or ammunition by a juvenile if the handgun and ammunition are possessed and used by the juvenile—

(i) in the course of employment, in the course of ranching or farming related to activities at the residence of the juvenile (or on property used for ranching or farming at which the juvenile, with the permission of the property owner or lessee, is performing activities related to the operation of the farm or ranch), target practice, hunting, or a course of instruction in the safe and lawful use of a handgun;

(ii) with the prior written consent of the juvenile’s parent or guardian who is not prohibited by Federal, State, or local law from possessing a firearm, except—

(I) during transportation by the juvenile of an unloaded handgun in a locked container directly from the place of transfer to a place at which an activity described in clause (i) is to take place and transportation by the juvenile of that handgun, unloaded and in a locked container, directly from the place at which such an activity took place to the transferor; or

(II) with respect to ranching or farming activities as described in clause (i), a juvenile may possess and use a handgun or ammunition with the prior written approval of the juvenile’s parent or legal guardian and at the direction of an adult who is not prohibited by Federal, State or local law from possessing a firearm;

(iii) the juvenile has the prior written consent in the juvenile’s possession at all times when a handgun is in the possession of the juvenile; and

(iv) in accordance with State and local law;

(B) a juvenile who is a member of the Armed Forces of the United States or the National Guard who possesses or is armed with a handgun in the line of duty;

(C) a transfer by inheritance of title (but not possession) of a handgun or ammunition to a juvenile; or

(D) the possession of a handgun or ammunition by a juvenile taken in defense of the juvenile or other persons against an intruder into the residence of the juvenile or a residence in which the juvenile is an invited guest.

So … Those under 18 may legally acquire handguns (ownership) from family members or in a private transfer for the purpose of engaging in a sporting event or activity, or as the federal statute states it … for target practice, hunting, or a course of instruction in the safe and lawful use of a handgun.

However, that is not the end of the analysis.  Once they ‘own’ a firearm then we must determine if there are other limitations on its use.

Possession / Carry

There are several statutes which address possession and use of firearms by minors.  Let’s start with § 18.2-56.2 which reads:

A. It shall be unlawful for any person to recklessly leave a loaded, unsecured firearm in such a manner as to endanger the life or limb of any child under the age of fourteen. Any person violating the provisions of this subsection shall be guilty of a Class 3 misdemeanor.

B. It shall be unlawful for any person knowingly to authorize a child under the age of twelve to use a firearm except when the child is under the supervision of an adult. Any person violating this subsection shall be guilty of a Class 1 misdemeanor. For purposes of this subsection, “adult” shall mean a parent, guardian, person standing in loco parentis to the child or a person twenty-one years or over who has the permission of the parent, guardian, or person standing in loco parentis to supervise the child in the use of a firearm.

Out of an abundance of caution, I take this code section to imply that legally any minor under the age of 15 should be under the supervision of an adult at any time they are using a firearm.

But that is not all.  While offering fairly broad exceptions for private lands, target shooting, and hunting, § 18.2-308.7 further limits the ability of minors to possess and transport handguns in the Commonwealth.  It reads in part :

It shall be unlawful for any person under 18 years of age to knowingly and intentionally possess or transport a handgun  … A violation of this section shall be a Class 1 misdemeanor.

This section shall not apply to:

1. Any person (i) while in his home or on his property; (ii) while in the home or on the property of his parent, grandparent, or legal guardian; or (iii) while on the property of another who has provided prior permission, and with the prior permission of his parent or legal guardian if the person has the landowner’s written permission on his person while on such property;

2. Any person who, while accompanied by an adult, is at, or going to and from, a lawful shooting range or firearms educational class, provided that the weapons are unloaded while being transported;

3. Any person actually engaged in lawful hunting or going to and from a hunting area or preserve, provided that the weapons are unloaded while being transported; and

4. Any person while carrying out his duties in the Armed Forces of the United States or the National Guard of this Commonwealth or any other state.

In addition, 18 U.S.C. 922(x) governs possession and use as well as initial transfer.

In summary, those under 14 should be supervised by an adult while using handguns and those 15 through 17 should not possess handguns outside of the exceptions laid out in § 18.2-308.7 of the Code of Virginia and 18 U.S.C. 922(x).

Are you 18 through 20 years of age?

Purchase / Acquisition

As noted above, those under the age of 21 are prohibited by federal law from purchasing handguns from a licensed dealer by the provisions of 18 USC § 922(b)(1).

However, there is no prohibition under Virginia law preventing someone 18 years of age or older from acquiring a handgun via a private sale.

Therefore, it is perfectly legal for someone 18 to 20 years of age, who is otherwise not prohibited from possessing firearms, to acquire one via a private sale.

Possession / Carry

Virginia is an unlicensed open carry state.  Additionally, there is no prohibition under Virginia law preventing someone 18 years of age or older from openly carrying a legally-owned handgun.

The only disability that applies to those 18 to 20 years of age is an inability to apply for, and receive, a Virginia concealed handgun permit (CHP).  § 18.2-308.02 of the Code of Virginia limits this to those 21 years of age or older.  It reads in part:

A. Any person 21 years of age or older may apply in writing to the clerk of the circuit court of the county or city in which he resides, or if he is a member of the United States armed forces, the county or city in which he is domiciled, for a five-year permit to carry a concealed handgun ….

The summary for those 18 to 20 years of age is much simpler than that for minors.  These legal adults may acquire handguns through private sales and may openly carry them so long as they avoid those places statutorily off limits to open carry.  Their only limitation is an inability to apply for, and receive, a concealed handgun permit.

One final point

One of those who commented on the VCDL Facebook page posited that since § 18.2-308.2:1 (which makes it a felony to provide a firearm to someone prohibited under § 18.2-308.7) does not have the same exceptions as § 18.2-308.7 that this creates a conflict in the law.

That is not the case.  If someone meets one or more of the exceptions in § 18.2-308.7 then they are NOT prohibited under § 18.2-308.7 and therefore § 18.2-308.2:1 never applies.

Disclaimer:  This information is presented for educational purposes only and does not give rise to an attorney-client relationship. Additionally, I am licensed to practice law in the Commonwealth of Virginia and this answer may not be appropriate for other states.

Posted in Federal Law, Gifting Firearms, Minors, Virginia Law | Comments Off on Demystifying the age to acquire, possess, and carry handguns in Virginia