Federal lawsuit filed to challenge ATF’s scope of authority to revoke federal firearms licensees

On Monday, July 11, 2023, attorneys from Gun Owners of America in conjunction with John Harris, Tennessee Firearms Association’s executive director, filed a federal lawsuit against the ATF asking a court the issue an injunction on the ATF’s authority to revoke federal firearms licenses under the Biden Administration’s “Enhanced Enforcement Policy” which is resulted in a massive increase in ATF license revocations in just a few years.

ATF’s own statistics reflect that in 2020, the latest year published on its website, ATF successfully sought revocation of dealer licenses 40 times out of 5,823 inspections (.686%). ATF also reported that 96 FFLs discontinued operations or surrendered their licenses. In 2020, only 56% percent of the 5,823 inspections resulted in “no violation” reports. The rest (2,546) contained some sort of violation. The far more common response to violations of the GCA were a “Report of violations” (1,289 instances), a “Warning letter” (804), or a “Warning conference” (306). See, www.atf.gov/firearms/firearms-compliance-inspection-results

ATF’s records reflect that in 2021 the ATF sought revocation in only 27 out 6,639 inspections (.406%). ATF reported that 789 FFLs discontinued operations (a massive increase suggesting pressure or intimidation by ATF to voluntarily surrender licenses) as a result of compliance inspections. ATF also reported that it issued 985 instances for “Report[s] of violations”, 454 instances of “Warning letter[s]”, and 149 instances of “Warning conference[s]” as a result of compliance inspections. See web.archive.org/web/20220822160407/https://www.atf.gov/resource-center/fact-sheet/fact-sheet-facts-and-figures-fiscal-year-2021

On June 23, 2021, President Joe Biden announced his demand that the agencies under his control would increase inspections to identify and put “rogue” dealers out of business with a new “zero tolerance” policy that was not adopted by Congress. ATF stated that in period of July-December 2021, the enhanced enforcement policy identified 34 of the FFLs inspected had “qualifying violations” – that is these FFLs had “zero tolerance” violations. Of that number, ATF revoked 5, ATF did not revoke 1 following a hearing, and that that 24 FFLs “voluntarily ceased operations”. ATF decided not to revoke 4 due to “extraordinary circumstances.”

ATF’s reporting regarding the zero tolerate policy for 2022 shows that 252 of the FFLs that it inspected had “qualifying violations”, of which ATF revoked 88. ATF did not revoke 83 following a hearing. Sixty-nine (69) FFLs “voluntarily ceased operations.” ATF decided not to revoke 12 due to “extraordinary circumstances.”

But the overall data for 2022 reflects a direct assault by ATF on the “Second Amendment Supply Chain”. ATF data of all compliance inspections in 2022, including those with “qualifying violations”, shows that it inspected 6,979 FFLs, that it found no violations in 3,806 instances (54.53%). ATF issued a report of violation in 1,247 instances (17.86%). There were 1,037 instances where the licensee “discontinued” its business (14.858%). ATF it issued warning letters in 606 instances (8.68%), it conducted warning conferences in 131 instances (1.87%), that it issued revocations in 90 instances (1.289%) and that 62 instances had “other disposition.” Particular concern should arise from the increases not only in the number of revocations but in the massive increase since 2020 in the number of FFL’s who gave up and surrendered their licenses without even having a hearing.

Unless stopped, many believe that ATF’s focused efforts to eliminate gun manufacturers and dealers is designed to make it harder if not impossible for American’s to purchase, or have options, when purchasing firearms or ammunition.

A dealer in North Dakota was already fighting ATF in the “frame and receiver rule” in federal court. Shortly after that lawsuit was filed, ATF performed a compliance inspection on that dealer and shortly after that ATF revoked its retail and manufacturing licenses. As a result, that dealer, Gun Owners of America, Inc., and Gun Owners Foundation have now asked a federal court to prohibit the ATF from further enforcement of not only the Biden Administration’s enhanced enforcement policy and zero tolerance standards but to prohibit ATF from revoking any dealer licenses unless there is clear evidence that the errors by the dealer were “willful” violations of the law rather than mere human errors or record keeping errors that could otherwise be easily corrected.

The unfortunate part is that while Congress has had years to step in to curtail the ATF’s abuses and, in fact, while the House Republicans could impose budget restrictions now on ATF from destroying the Second Amendment Supply Chain, Congress has failed repeatedly to defend the rights protected by the Second Amendment against rogue administrative agencies. That abdication of the sworn oaths of office to defend the Constitution is forcing citizens and federally licensed dealers to fight back.

If you want to help fight back, join TFA and consider making voluntary member donations to help fund this kind of litigation. If you are already a member, consider making voluntary member donations. This is not a problem “somewhere else” – it is happening in Tennessee too!

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