FAQ ON THE NEW $500,000 LAW REQUIRING ATF TO CORRECT ERRORS IN
NFA FIREARM REGISTRATION RECORDS



by Eric M. Larson


WHAT ARE NFA FIREARMS?

The National Firearms Act (NFA) of 1934, as amended (Title 26, United States Code, Chapter 53) regulates firearms such as machine guns, short-barreled rifles and shotguns; certain concealable firearms other than pistols or revolvers (called "Any Other Weapon"); and destructive devices (such as bazookas, hand grenades, and land mines). Examples of "Any Other Weapon" include the 12" and 15" barrel variations of Marble’s Game Getter Gun, the smooth bore .410 bore and 28 gauge H&R Handy-Gun, animal trap guns, cane guns, and various "gadget" guns not easily recognizable as firearms). All NFA firearms (except those owned by the United States) must be registered with the Bureau of Alcohol, Tobacco and Firearms (ATF) in the National Firearms Registration and Transfer Record, and any NFA firearm transaction must be approved by ATF in advance of the transaction.

Because they are regulated under Title II of the Gun Control Act (GCA) of 1968, as amended, NFA firearms are often referred to as "Title II" firearms, or as "Class III" firearms in reference to dealers who buy and sell them.

Ordinary rifles, shotguns, pistols and revolvers are not subject to the NFA, and are regulated under Title I of the GCA. Therefore, they are often referred to as "Title I" firearms.

Because of complaints by gun collectors, concerned citizens, and Members of Congress, in 2001 the Congress appropriated $500,000 and is requiring ATF to use it to correct errors in the NFRTR. President George W. Bush signed this appropriation into public law on November 12, 2001. Under the new law, ATF must improve its processing of NFA paperwork, and ensure that the NFRTR is accurate and complete.

Each document referred to in this FAQ is listed at the end of this FAQ in the order in which it was first discussed.

WHAT IS THIS LAW? WHERE TO YOU FIND THE $500,000 AND THE DIRECTIVE TO ATF?

It is Public Law 107-67, also called the "Treasury and General Government Appropriations Act, 2002." Its longer technical legal name is "An Act Making appropriations for the Treasury Department, the United States Postal Service, the Executive Office of the President, and certain Independent Agencies, for the fiscal year ending September 30, 2002, and for other purposes." In plain language, it is the annual Treasury appropriations bill, which includes funding for ATF operations. President George W. Bush signed this legislation on November 12, 2001, and it became effective on that date.

The $500,000 and the directive to ATF is on page 20 of H.R. Report No. 107-152, in the paragraph entitled "Improvements in Firearms Licensing and Regulatory Operations." This directive to ATF is in so-called "report language." Report language is a legal instruction which states Congressional intent, and is legally binding on the agency involved.

WHAT IS "SO-CALLED ‘REPORT LANGUAGE,’" AND IS IT DIFFERENT FROM REGULAR LAW?

It is called "report language" because it is in the report on the appropriations bill, rather than in a bill not related to appropriations (such as the USA Patriot Act of 2001). There is no legal difference between "report language" and language in any other separate bill passed by the Congress and signed into law by the President. The law is the law is the law. Report language is typically used when the Congress has studied a problem or issue and wants to correct it or take some other action, but the issue is so far not large enough to justify a full Congressional hearing.

WHAT ERRORS IN THE NFRTR HAS THE CONGRESS DIRECTED THE ATF TO CORRECT?

These errors are identified in the report language of H.R. Report No. 107-152, noted above, and other report language on pages 23-24 of H.R. Report No. 106-756 (Public Law 106-554, enacted December 21, 2000), in the paragraph entitled "Firearms Database Accuracy." This is literally what the law states, although agencies typically rely on the legislative history of a Public Law for guidance in determining Congressional intent.

The errors the Congress has directed ATF to correct include: (1) registrations of NFA firearms to persons who are deceased, which may exceed more than 100,000 NFA firearms; (2) illegal registrations and/or transfers of NFA firearms by ATF; and (3) the fact that ATF has inadvertently or otherwise lost or destroyed many original NFA documents. The latter jeopardizes the accuracy and completeness of the NFRTR, because (A) the computerized NFRTR has "critical errors" (such as incorrect firearm serial number) compared with original NFA documents, and (B) many original NFA documents remain missing and cannot be found.

WHAT IS THE LEGISLATIVE HISTORY OF PUBLIC LAW 107-67? WHERE CAN I LOOK TO FIND IT? AND WHERE WOULD ATF LOOK?

The most pertinent legislative history is (1) the paragraph entitled "Firearms Database Accuracy" identified above, because it was used in Congressional deliberations to enact the $500,000 appropriation in 2001 and reflects Congressional concerns about the accuracy and completeness of the NFRTR; and (2) Treasury, Postal Service, and General Government Appropriations for Fiscal Year 2002 (ATF testimony in Part 1, pages 476-479; and Part 3 (concerned citizen testimony on pages 7-26). Other legislative history includes: (1) Public Witness testimonies before the Subcommittee on Treasury, Postal Service, and General Government, for each year from 1996 to 2000, all in Part 5 of the published hearing records; and (2) Treasury Department Office of Inspector General reports No. OIG-99-009, October 26, 1998, and No. OIG-99-018, December 18, 1998. Because the Office of Inspector General reports clearly influenced the Congress, they are very important legislative history.

WHAT IS THE "REPORT LANGUAGE" IN PUBLIC LAW 107-67 ACTUALLY BASED ON? IN OTHER WORDS, HOW DID THE CONGRESS "GET THERE" WITH THIS LEGISLATION?

The "report language" is based on several things. But in my judgement, it ultimately arises from a review of the NFRTR situation by Dr. Fritz J. Scheuren, an internationally recognized expert on administrative records systems, statistics, and record linkage.

After the Subcommittee received Public Witness testimony in March 2000, it asked ATF a series of questions based on that testimony and upon audits of the NFRTR conducted by the Treasury Department Office of Inspector General. These questions, and ATF’s responses, are on page 23 of the 2001 public witness testimony. Dr. Scheuren’s evaluation of ATF’s responses is on pages 24-25. Taken together, this information provided the basis for "report language" on pages 23-24 of H.R. Report No. 106-756, in the paragraph entitled "Firearms Database Accuracy."

It is very instructive to compare ATF’s testimony in the section entitled "Regulatory Processes and Resources" on pages 476-479 of Treasury, Postal Service, and General Government Appropriations for Fiscal Year 2002 with the language in Dr. Scheuren’s evaluation of ATF’s responses to the Subcommittee on pages 24-25. The House Committee on Appropriations was clearly heavily influenced by Dr. Scheuren’s evaluation.

WHAT IS SEN. BOB SMITH TRYING TO DO? WHAT’S THAT ALL ABOUT?

In letter dated August 15, 2001, Sen. Smith states that because of the types of errors determined to be present in the NFRTR, he believes that Congressional action will be required to correct them. Sen. Smith has asked the House Committee on Government Reform to require the Treasury Department Office of Inspector General to conduct an audit of the entire NFRTR. Sen. Smith’s letter summarizes the NFRTR situation very well.

I have recommended to the Congress that the Treasury Department Office of Inspector General (OIG) not conduct this audit, and instead that the House Committee on Government Reform should consider requiring the OIG to contract with an independent auditing firm, and for that firm to conduct a forensic audit of the entire NFRTR according to the specifications in Sen. Smith’s letter, and that the audit team have at least one Certified Fraud Examiner (CFE).

DOES THIS MEAN THERE WILL BE ANOTHER AMNESTY PERIOD?

Yes, possibly, in some form. Under Section 207(d) of the Gun Control Act of 1968, the Congress authorized the Secretary of the Treasury to establish unlimited numbers of amnesty periods, not to exceed 90 days each, after publication of notice of his intention to do so in the Federal Register. No Congressional action is necessary.

While it seems likely that only an amnesty period could correct certain errors in the NFRTR, the term "amnesty" may not be the right way to characterize this activity for at least two reasons. First, the term "amnesty" implies forgiving citizens for deliberately breaking the law; politicians and law enforcement agents usually oppose amnesties for that reason. Second, the NFRTR must be corrected to protect law-abiding citizens from the unjust seizure and forfeiture of their firearms, as well as being unjustly convicted of serious felonies because of errors ATF has made in its records. The objective of this legislation is to protect innocent citizens from unjust prosecutions and/or the unjust seizure and forfeiture of their firearms.

In my judgement, the purpose of an amnesty (or whatever it might be called) is in this instance (1) to correct injustices, and/or (2) to correct simple oversight or ignorance of the law. The problem with a general amnesty that includes everything under the sun, could easily result in a flood of registrations of stolen Government property and illegally manufactured weapons. Allowing stolen Government property to be registered/legitimized with impunity, and the illegal manufacture of certain NFA firearms, cannot be deemed a reasonable public policy objective, as articulated by the Congress in report language. There may be some people who disagree with my interpretation.

WHAT CAN I DO IF I AM INTERESTED IN THESE ISSUES?

Please write/contact your Congressional representatives as soon as possible, and follow up your letter with a personal visit if possible. Write to them in Washington, D.C.; the ZIP Code for your Senators is 20510, and 20515 for your Representative. Also take the time to find out what committees your representatives have been assigned to; those who are Members of any of ATF’s authorizing committees may be particularly helpful to you. It is beyond the scope of this FAQ to list authorizing committee membership. One way to find that information is to go to the following Internet web site: http://thomas.loc.gov/

Urge your Congressional representatives to contact all of the Chairmen and Ranking Minority Members of the authorizing committees of ATF, on your behalf, to express your concerns to them. Then continue to take responsibility by contacting the committees yourself; having the backing of your Congressional representative will help you. By "authorizing committee" I mean the committees that have oversight jurisdiction over ATF programs. These committees, and how to contact them, are as follows:

UNITED STATES SENATE: The Honorable Joseph Lieberman, Chairman; and the Honorable Fred Thompson, Ranking Minority Member, Committee on Government Affairs, United States Senate, 340 Dirksen Senate Office Building, Washington, D.C. 20510-6250; telephone Democratic Staff (202) 224-2627, telephone Republican Staff (202) 224-4751 (yes, that’s how they list their telephone numbers!), Bipartisan FAX (202) 224-9603; and e-mails are: http://lieberman.senate.gov/newsite/contact.cfm and senator_thompson@thompson.senate.gov

The Honorable Patrick J. Leahy, Chairman; and the Honorable Orrin G. Hatch, Ranking Minority Member, Committee on the Judiciary, United States Senate, 224 Dirksen Senate Office Building, Washington, D.C. 20510-6275; telephone (202) 224-7703, FAX (202) 224-9516; and e-mails are: senator_leahy@leahy.senate.gov and http://www.senate.gov/~hatch/email_form.htm

HOUSE OF REPRESENTATIVES: The Honorable Lamar Smith, Chairman; and the Honorable Robert C. "Bobby" Scott, Ranking Minority Member, Subcommittee on Crime, House of Representatives, 207 Cannon House Office Building, Washington, D.C. 20515-6223; telephone (202) 225-3926, FAX 225-3737; and e-mails are: http://lamarsmith.house.gov and bobby.scott@mail.house.gov

The Honorable Dan Burton, Chairman; and the Honorable Henry A. Waxman, Ranking Minority Member, Committee on Government Reform, House of Representatives, 2157 Rayburn House Office Building, Washington, D.C. 20515-6143; telephone (202) 225-5074, FAX (202) 225-3974; and e-mails for each are: http://www.house.gov/writerep/
 


OTHER IMPORTANT PUBLIC DOCUMENTS NOT REPRODUCED ABOVE; THEY ARE AVAILABLE IN ANY MAJOR PUBLIC LIBRARY OR AS INDICATED


1. "A New Amnesty Period is the Only Viable Solution to Correct Errors in ATF’s National Firearms Registration and Transfer Record," by Eric M. Larson, in Treasury, Postal Service, and General Government Appropriations for Fiscal Year 2002. Hearings before a Subcommittee on the Committee on Appropriations, House of Representatives, 107th Congress, 1st Session. Part 3, Statements of Members of Congress and Other Interested Individuals and Organizations. Washington, D.C.: U.S. Government Printing Office, 2001, pages 7-26.

2. "The Bureau of Alcohol, Tobacco and Firearms’ Mismanagement of the National Firearms Registration and Transfer Record: Disregarding the Treasury Department Inspector General’s Audit Findings," by Eric M. Larson, in Treasury, Postal Service, and General Government Appropriations for Fiscal Year 2001. Hearings before a Subcommittee on the Committee on Appropriations, House of Representatives, 106th Congress, 2nd Session. Part 5, Statements of Members of Congress and Other Interested Individuals and Organizations. Washington, D.C.: U.S. Government Printing Office, 2000, pages 6-31.

3. "Violating the Rule of Law: The Bureau of Alcohol, Tobacco and Firearms Has Not Corrected Errors in the National Firearms Registration and Transfer Record, Which Unjustly Subjects Law-Abiding Citizens to Imprisonment, Fines, and the Confiscation of Their Historic Firearms," by Eric M. Larson, in Treasury, Postal Service, and General Government Appropriations for Fiscal Year 2000. Hearings before a Subcommittee on the Committee on Appropriations, House of Representatives, 106th Congress, 1st Session. Part 5, Statements of Members of Congress and Other Interested Individuals and Organizations. Washington, D.C.: U.S. Government Printing Office, 1999, pages 64-87.

4. "Statement on Proposed Removal of the National Firearms Registration and Transfer Record from the Custody of the Bureau of Alcohol, Tobacco and Firearms and its Proposed Relocation to the Department of Justice," by Eric M. Larson, in Treasury, Postal Service, and General Government Appropriations for Fiscal Year 1999. Hearings before a Subcommittee on the Committee on Appropriations, House of Representatives, 105th Congress, 2nd Session. Part 5, Statements of Members of Congress and Other Interested Individuals and Organizations. Washington, D.C.: U.S. Government Printing Office, 1998, pages 25-145.

5. "Statement on Proposed Removal of Certain Firearms Manufactured in the United States in or Before 1934 from Purview of the National Firearms Act of 1934, as Amended, and Their Reclassification as ‘Firearms’ as Defined in Title 18, U.S.C., Chapter 44," by Eric M. Larson, in Treasury, Postal Service, and General Government Appropriations for Fiscal Year 1998. Hearings before a Subcommittee on the Committee on Appropriations, House of Representatives, 105th Congress, 1st Session. Part 5, Statements of Members of Congress and Other Interested Individuals and Organizations. Washington, D.C.: U.S. Government Printing Office, 1997, pages 16-139.

6. "Statement on ‘Curio or Relic’ Firearms Manufactured in or Before 1934 Which Are Also Classified in the ‘Any Other Weapon’ Category Under the National Firearms Act (NFA) of 1934, as Amended,"by Eric M. Larson, in Treasury, Postal Service, and General Government Appropriations for Fiscal Year 1997. Hearings before a Subcommittee on the Committee on Appropriations, House of Representatives, 104th Congress, 2nd Session. Part 5, Statements of Members of Congress and Other Interested Individuals and Organizations. Washington, D.C.: U.S. Government Printing Office, 1996, pages 35-274.

7. Special Report on Allegations Concerning the Bureau of Alcohol, Tobacco and Firearms’ Registration and Recordkeeping of the National Firearms Registration and Transfer Records, Report No. OIG-99-009. Washington, D.C.: U.S. Department of the Treasury, Office of the Inspector General, October 26, 1998;

8. Audit Report on Allegations Concerning the Bureau of Alcohol, Tobacco and Firearms’ Administration of the National Firearms Registration and Transfer Record, Report No. OIG-99-018. Washington, D.C.: U.S. Department of the Treasury, Office of the Inspector General, December 18, 1998.

NOTE: The Treasury Department Inspector General reports listed in #7 and #8 above, may be obtained only by filing a Freedom of Information Act request to the Office of Inspector General, Department of the Treasury, 1500 Pennsylvania Avenue, N.W., Washington, D.C. 20220. I personally requested the Treasury Department Inspector General to consider putting these reports up on their Internet web site, along with other reports that are posted, in the interest of public information in view of Public Law 107-67. So far, the Inspector General has not acknowledged or responded to my request.
 

Send mail to larsone@starpower.net with questions or comments about errors in the NFRTR.

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Last modified: April 06, 2004