41P Issues

[ExecDirector]

The NFATCA (http://www.nfatca.org/), American Suppressor Association (http://americansuppressorassociation.com) and the NRA (http://www.nra.org) continue to work toward rolling back White House efforts to hamstring lawful firearms ownership. As reported recently by ASA (http://americansuppressorassociation.com/amendment-to-block-executive-action-atf-41p-passes-u-s-house/), there is a promising amendment attached to HR 2578 (https://www.congress.gov/114/bills/hr2578/BILLS-114hr2578rh.pdf), the House funding bill for Commerce, Justice & Science. John Carter's (R-TX) H. Amdt 320 (https://www.congress.gov/amendment/114th-congress/house-amendment/320) would prohibit the use of funds to propose or issue the ruling of 41P. The amendment was agreed to in a voice vote of the House. The NFATCA, ASA and NRA continue to gather support in both houses of Congress for what will certainly be a raucous fight over this and the rest of the proposed executive actions of the White House.

More 41P background:The White House push to hamstring the use of non-natural persons such as trusts and corporations to lawfully acquire and possses NFA weapons has been delayed yet again. This time, the DOJ estimates a "final" decision around December, 2015. There is no real way to determine what a final decision could look like. The Obama administration sought to completely reverse the progress of NFATCA efforts to eliminate the CLEO signature requirement and add even more restrictions that would serve no public safety interest. The comments officially submitted in response to this effort were nearly universally opposed to what our President and his Department of Justice leaders wanted, including the NFATCA opposition statement (http://www.nfatca.org/pubs/NFATCA_41P_submission.pdf). 9000+ statements are now being reviewed.

The response was so overwhelming that the White House conveniently pushed back a "final decision" until after the mid-term elections. An estimated delivery was pinned to January of 2015. The results came in and that estimate was revised to no earlier than May of 2015 and is now December.

[sillycon]

Any idea when 2578 is going to be heard/voted on in the senate? I know it's on the legislative calendar, but I can't seem to find out at what point they may get to it.

[ExecDirector]

Anyone's guess. The way of the legislature are indeed mysterious...

[ExecDirector]

41P Update: There has been much speculation and grandstanding regarding ATF's recent change in possible delivery of a final ruling on the 41P issue. ATF has changed the delivery date from some time in December of 2015 to some time in January of 2016. Whether or not this change results in an actual delivery of a final rule remains to be seen.

There is nothing but speculation in regard to what the final ruling will look like or contain. Or if it may even be withdrawn.

If the final ruling does contain new restrictions, there is no certainty as to whether they will be only applied to new applications for making or transfer. One can speculate as to how the new rule will be applied to existing trust assets/actors and in-process applications, but that remains just that: speculation.

In the event that there are new restrictions, an amendment currently bound to HR 2578 would prevent ATF from using funds to enforce 41P in many ways. Urge your representatives to support HR 2578.

In the event 41P does create new restrictions, NFATCA already has counsel in place to continue fighting this White House over reach. Thank you for your continued support.

[ExecDirector]

It would appear that shenanigans are afoot. The Senate has conveniently dropped Amendment 320 (https://www.congress.gov/amendment/114th-congress/house-amendment/320) from their version (S 2131 (https://www.congress.gov/bill/114th-congress/senate-bill/2131)) of the House Appropriations Bill HR 2578. This is the amendment that would "defund" any attempt to enforce the CLEO signature requirements of 41P, if it gets promulgated. Contact your senators NOW (https://www.opencongress.org/people/zipcodelookup) and make sure they demand the inclusion of the House Amendments.

[jason8844]

What if this is a worst case scenario? Is 41P a one time CLEO sign off of on the trust or a sign off for each and every transfer?

[ExecDirector]

Nobody knows. Everything is speculation at this point. There are 1,000's of different variations on what a final rule could look like, if it is enacted.

[ExecDirector]

It would appear that shenanigans are afoot. The Senate has conveniently dropped Amendment 320 (https://www.congress.gov/amendment/114th-congress/house-amendment/320) from their version (S 2131 (https://www.congress.gov/bill/114th-congress/senate-bill/2131)) of the House Appropriations Bill HR 2578. This is the amendment that would "defund" any attempt to enforce the CLEO signature requirements of 41P, if it gets promulgated. Contact your senators NOW (https://www.opencongress.org/people/zipcodelookup) and make sure they demand the inclusion of the House Amendments.

And this approach appears to now be dead.

[jason8844]

Here is the finalized rule...

https://www.atf.gov/file/100896/download

Anyone care to comment? NFATCA was mentioned by name. It is not as bad as it could have been. No CLEO sign off, only notification and all "responsible persons" now need fingerprints and photos.

[ExecDirector]

The NFATCA, along with the NRA and the American Suppressor Association, and our attorneys, is pleased to announce that the Department of Justice and ATF have removed CLEO signatures from NFA making and transfer applications. Although all potential possessors now require identification and background checks, the CLEO signature requirement has now been eliminated and revised to a notification process. Please see the AG Order (http://www.nfatca.org/pubs/ag_order_3608-2016.pdf).

[Armorer-at-Law]

The NFATCA, along with the NRA and the American Suppressor Association, and our attorneys, is pleased to announce that the Department of Justice and ATF have removed CLEO signatures from NFA making and transfer applications. Although all potential possessors now require identification and background checks, the CLEO signature requirement has now been eliminated and revised to a notification process. Please see the AG Order (http://www.nfatca.org/pubs/ag_order_3608-2016.pdf).How does the final rule differ from what NFATCA had negotiated with ATF so long ago, before ATF reneged and made a mess of it all just to please their boss? It seem to me to be just about what the original negotiated deal was, right?

[jason8844]

How does the final rule differ from what NFATCA had negotiated with ATF so long ago, before ATF reneged and made a mess of it all just to please their boss? It seem to me to be just about what the original negotiated deal was, right?

It looks like it. I am not a lawyer, but I play one online. To me, this appears to be a good thing to the NFA community. I am not sure if in the process of trying to make it harder, the administration accidentally made it easier for individuals. Or, if what I think is the case, we actually have allies in the ATF who are sympathetic to our plight and they crafted this rule in a way to please both sides.

While many NFA people are saying they are upset, I think they should take it as a win. Especially due to the vague language of what a "responsible person" is on the trust.

[ExecDirector]

It is substantially similar. We expect there are going to be some issues to work out as we head toward the 180 unveiling. The RP thing is a big item right now and needs clarification. Our first recommendation was that an RP (or RP's) be designated just like an FFL.