Subject: TFA: What is an "adverse action" policy and why should you care?

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September 21, 2022

What is an “adverse action” policy and why should you care?

There are two sets of federal laws, broadly speaking, that infringe your rights as Americans. The first is the National Firearms Act from 1934 (“NFA”). As it was originally enacted, it was a scheme by Congress to tax certain firearms at a tax level so high that most Americans would simply not acquire the firearm (machinegun, short barrel firearms, suppressors) because of the tax. The other is the 1968 Gun Control Act (“GCA”). Of course, they were not really controlling guns, they were controlling us with that one.

While the GCA created the requirement of a federal firearms license for dealers and manufacturers, it also created classifications of people who according to the federal government at the time (as opposed to when the 2nd Amendment came into existence) should be denied the free exercise of a constitutional right.

It is the federal government’s potentially unconstitutional regulation of federal firearms dealers and manufacturers under the GCA that now creates perhaps one of the greatest risks to your 2nd Amendment rights and the 2nd Amendment “supply chain” that the PEOPLE of this nation have ever seen. When I say “federal government” I want to be clear that I am talking about those with decision making authority in Washington. Many of the employees of the federal or even state governments are very pro-2nd Amendment and they are not the ones who make policy.

After less than 15 years of existence, there were substantial complaints from the public across the nation that the federal government was seriously misusing the GCA in ways that Congress never intended. These complaints were so broad and loud that by the early 1980s Congress was conducting hearings and investigations into the matter.

In a February 1982 report by a Senate subcommittee, the subcommittee stated that approximately 75 percent of ATF prosecutions “were aimed at ordinary citizens who had neither criminal intent nor knowledge, but were enticed by agents into unknowing technical violations.” It suggested that reform of federal firearms law “would enhance vital protection of constitutional and civil liberties of those Americans who choose to exercise their Second Amendment right to keep and bear arms.”

After several years, these Congressional investigations led to the passage of The Firearm Owners Protection Act of 1986 (FOPA). That law was intended by Congress to address the abuses noted in the 1982 Senate Judiciary Subcommittee report. Among the reforms were the reopening of interstate sales of long guns on a limited basis, legalization of ammunition shipments through the U.S. Postal Service, removal of the requirement for record keeping on sales of non-armor-piercing ammunition, and federal protection of transportation of firearms through states where possession of those firearms would otherwise be illegal.

Another important provision of the FOPA was the including of language in 18 USC § 923 to make clear Congressional intent that a federal firearms dealer should not have his or her license revoked for mere technical violations of the law. At that time, Congress amended § 923 to include a “willfulness” requirement as a condition to license revocation. As it presently exists 18 USC § 923(e) provides that the Attorney General “may, after notice and opportunity for hearing, revoke any license issued under this section if the holder of such license has willfully violated any provision of this chapter or any rule or regulation prescribed by the Attorney General under this chapter….”

It did not take long for the federal government and courts to interpret willfulness in ways that returned to the revocation of licensees for technical violations. What changed slightly was the process by which ATF convinced courts to find willfulness to include “repeat violations of a known legal duty” such as completing an ATF Form 4473 with no errors at all.

In order to teach its industry operations inspectors how to conduct these annual “compliance” investigations and to document errors so that repeat errors could be used for revocations, ATF generated policies that are described as “adverse action” policies. Generally, the current version of the adverse action policy is withheld by ATF from Freedom of Information Act requests but the expired versions are sometimes available. Here is an example of an expired policy that has been revised since Joe Biden announced his directive to federal agencies to put “rogue dealers” out of business with new “zero tolerance” interpretations.


The importance of knowing what is in even an expired adverse action policy is that it shows how far ATF’s policy makers have moved intentionally away from the slap on the wrist that was contained in the 1986 FOPA. Rather than truly limiting the license revocations to those who get and use federal licensing for serious criminal facilitation such as trafficking guns to Mexico (oh wait, was that the Obama era “Fast and Furious” scandal?)

At present, under the new Biden era “zero tolerance” agenda, some reports indicate that ATF license revocation activities are up 500% over prior agency revocation data. This number must be viewed as an understatement because there are plenty of instances where FFL’s are essentially told by ATF that they should surrender their license voluntarily rather than proceed to revocation or even potential criminal referrals.

There is no doubt that President Biden would love to see Congress pass massive new gun control measures. Right now, the votes don’t exist in Congress largely because of the Senate. But that could change – suddenly just as some feel the votes changed “suddenly” in the 2020 elections.

So, what do we see of Congress does not enact new laws to control civilian ownership of firearms? We see what we have seen. We see efforts by the administration with absolutely no Congressional activity to “redefine” statutory phrases by reversing prior regulatory interpretations (bump stocks, triggers, AR pistols, etc.) and we see more aggressive steps taken to reduce the number of federally licensed dealers and manufacturers. Biden and his federal administration are intentionally and actively attacking the 2nd Amendment not be legislative action, not by amending the constitution but by constricting the 2nd Amendment Supply Chain. What good will the 2nd Amendment be when there is no one making or selling firearms? Are you ready to make your own firearms and ammunition.



John Harris
Executive Director
johnharris@tennesseefirearms.com


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