H.R. 613: ATF Transparency Act

This bill, titled the ATF Transparency Act, proposes changes to the Internal Revenue Code of 1986 that would affect the process surrounding the transfer and registration of firearms. Here’s a summary of the main points included in the bill:

Administrative Relief Process

The bill requires the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to establish a process to provide relief for individuals whose applications for firearm transfers are denied. This process includes several key components:

• If an application is denied, the ATF must provide the transferee (the person trying to acquire the firearm) with the relevant transaction number.
• The transferee is allowed to appeal the denial, using a procedure similar to existing appeal processes.
• The transferee can submit information to help block future erroneous denials or delays related to the background check system (NICS).

Attorney Fees

If the transferee's appeal is successful, the ATF must reimburse the transferee for reasonable attorney fees incurred during the appeal process.

Timely Processing of Applications

The bill establishes a timeline for the ATF to process firearm transfer applications. Specifically:

• If the ATF does not approve or deny an application within 90 days, the application will be automatically deemed approved.
• This provision applies to both applications for transferring and making firearms.

Reports and Recommendations

The bill mandates several reports related to the National Instant Criminal Background Check System (NICS):

• The Comptroller General and the Inspector General of the Department of Justice must provide a report detailing unresolved NICS inquiries from 2010 to 2021 and offer recommendations for administrative actions to reduce these unresolved inquiries.
• A report about the percentage of NICS inquiries administered by the FBI on behalf of the ATF from 2014 to 2021 must be compiled.
• A memorandum of understanding regarding the administration and processing of NICS inquiries between the ATF and the FBI should be established within 180 days after the enactment of the bill.

Definitions

The bill defines key terms such as "firearm" and "NICS," establishing that these terms hold the meanings stated in existing law.

Effective Dates

All amendments introduced by this bill would apply to applications that are filed or pending on or after the date the bill is enacted.

Relevant Companies

• SGMS - Scientific Games, a company involved in security software including background check systems. This legislation may impact their operations related to firearm transaction approvals.
• ATVI - Activision Blizzard, as a company related indirectly through gaming and technological advancements in security mechanisms might see interest in their tech space under changing regulations.