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July 24th, 2024

NRA Challenges ATF Final Rule on Private Gun Sales

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The National Rifle Association of America (NRA) has filed a lawsuit challenging the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) “Engaged in the Business” Final Rule. The ATF’s Final Rule unlawfully redefines when a person is “engaged in the business” of dealing in firearms and therefore required to be federally licensed. This new lawsuit is being filed on the heels of recent U.S. Supreme Court decisions that have reined in executive branch agencies from acting outside of statutory authority. The NRA suit is named Butler v. Garland and has been filed in the U.S. District Court in Alabama (Northern District, Eastern Division).

CLICK HERE to Read Butler v. Garland Complaint (PDF) »

“The ATF’s Final Rule stands to turn countless upstanding and well-intending citizens into criminals for exercising their constitutional rights,” said Randy Kozuch, Executive Director of the NRA Institute for Legislative Action (NRA-ILA). “When ATF released this Final Rule, NRA promised to use every means necessary to stop this egregious interpretation of the law. Now that the Supreme Court’s recent decisions in Loper Bright, Cargill, and Rahimi make clear that the ATF does not have unfettered authority to arbitrarily restrict NRA Members’ rights to buy and sell firearms, the NRA is fighting back.”

NRA, along with two individuals, Don Butler and David Glidewell, filed the lawsuit challenging the ATF’s Final Rule in the U.S. District Court for the Northern District of Alabama. The complaint alleges that the Final Rule violates the Administrative Procedure Act because it exceeds the ATF’s statutory and jurisdictional authority and is arbitrary and capricious; violates the Fifth Amendment because it is unconstitutionally vague; violates the Second Amendment by infringing the rights to keep, bear, buy, and sell arms; and violates the Separation of Powers, non-delegation doctrine, and Take Care Clause by usurping legislative powers and prohibiting lawful conduct by executive fiat.


In this Armed Attorneys Video, Emily Taylor and Richard Hayes discuss the effect of the new ATF Final Rule.

Under the Firearms Owners’ Protection Act (FOPA) of 1986 (which amended the Gun Control Act of 1968), someone is “engaged in the business” of dealing in firearms if that person “deal[s] in firearms as a regular course of trade or business with the principal objective of livelihood and profit through the repetitive purchase and resale of firearms.” The 2022 Bipartisan Safer Communities Act (BSCA) altered that definition by replacing “livelihood and profit” with “to predominantly earn a profit.” The BSCA did not alter FOPA’s exclusion for “a person who makes occasional sales, exchanges, or purchases of firearms for the enhancement of a personal collection or for a hobby, or who sells all or part of his personal collection of firearms.”

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On April 19, 2024, ATF promulgated the Final Rule “to clarify the criteria for determining when a person is ‘engaged in the business.’” The Final Rule provides that “there is no minimum threshold number of firearms purchased or sold that triggers the licensing requirement” and that “there is no minimum number of transactions that determines whether a person is ‘engaged in the business’ of dealing in firearms. For example, even a single firearm transaction or offer to engage in a transaction . . . may require a license.”

The Final Rule also excludes firearms acquired for “personal protection” from the firearms that may be sold from a personal collection without a license. The ATF’s Final Rule thus rewrites the law, contradicts Congress’ statutory language, and adds confusion rather than clarification.

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December 10th, 2023

ATF “Engaged in the Business” Proposed Rule Opposed by NSSF

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NSSF Comments Against Biden Administration’s Proposed ‘Engaged in the Business’ Rule
NSSF, The Firearm Industry Trade Association, submitted a 28-page comprehensive public comment letter detailing the pitfalls of the Biden administration’s proposed “Engaged in the Business” rule that would create criminal law through executive fiat. The proposed Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) rule, published 9/8/2023, would redefine individuals considered to be “engaged in the business” of selling firearms, requiring nearly any individual selling more than one firearm to obtain a federal firearms license (FFL) and move the United States toward universal background checks, which was rejected by Congress.

“Respectfully, ATF lacks the legal authority to do so,” wrote Lawrence G. Keane, NSSF’s Senior Vice President and General Counsel in the public comment letter.

READ NSSF Letter Challenging ATF’s Proposed Regulation »

“The Proposed Rule exceeds ATF’s limited authority to adopt regulations. In enacting the Gun Control Act of 1968, Congress rejected making a violation of a regulation a crime,” the letter reads. “In enacting the Firearm Owner’s Protection Act of 1986, Congress further reduced ATF’s regulatory power. The specificity of authorized regulations negates a broad power.”

Keane added, “ATF has no authority to ‘improve’ on what Congress enacted or to create new crimes not enacted by Congress. An agency may not re-write statutory terms or fill in what the agency considers to be ‘gaps’ or ‘loopholes’ in the statute. The GCA is a criminal statute, and ATF’s reading is not entitled to any deference. Given that the GCA is a criminal statute with the same meaning in a civil context, ATF may not create presumptions thereon for civil or administrative purposes.”

Biden Administration Aggressively Targets FFLs
The Biden Administration, acting through the ATF, is aggressively working to shut down gun stores and FFL businesses throughout the country. According to the NRA America’s 1st Freedom site, some 1619 FFLs have gone out of business since 2020 when Joe Biden took office. That is a major change, reflecting extremely hostile and aggressive policies now being pushed by the anti-gun Biden administration.

NSSF warns ATF in the public comment letter that the Proposed Rule would invite unintended consequences that would be detrimental to the ATF’s law enforcement and regulatory missions. The Proposed Rule would create an untold number of licensees, divert ATF resources away from providing necessary industry services, distract ATF from bona fide criminal investigations and harm both the legitimate firearm industry and ATF operations.

NSSF has been critical of Final Rules enacted by the Biden administration that have bypassed Congress to create criminal law through Executive overreach, including the ATF’s Final Rules on Frames and Receivers and Stabilizing Pistol Braces. Those rules are under legal scrutiny by U.S. Courts of Appeal.

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