ATF Transparency Act
- Sponsor
- Sen. Risch, James E. [R-ID]
- Committees
- Judiciary Committee (primary)
- Last action
- Mar 6, 2025
Bottom line
This bill seeks to increase transparency and efficiency in the federal firearm background check system by establishing an appeal process for denials and imposing strict deadlines for application processing.
What it actually does
This bill amends the Internal Revenue Code of 1986 to require the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to establish an administrative appeal process for individuals whose firearm transfer and registration applications are denied. It also introduces a strict 3-business-day default approval period for background checks related to firearm transfers and making, and mandates several reports on unresolved NICS checks and an interagency memorandum of understanding between the ATF and FBI.
Proponents argue
Proponents argue that the current system lacks due process for individuals erroneously denied firearm transfers, leading to unfair restrictions on Second Amendment rights. They contend that establishing an administrative relief process and imposing strict processing deadlines will ensure timely decisions, reduce arbitrary denials, and provide a mechanism for individuals to correct errors in their background records, thereby enhancing fairness and transparency in firearm regulation.
Opponents contend
Opponents might argue that imposing a 3-day default approval period for firearm transfers, especially for highly regulated National Firearms Act (NFA) items, could create a dangerous loophole. They contend this could allow firearms to be transferred to prohibited individuals if background checks are not completed in time, thereby undermining public safety efforts to keep firearms out of the hands of criminals.
The bill is concise and can be read and understood by an informed reader within a short timeframe, allowing for a quick evaluation of its core provisions.
Section 2(a), amending Section 5812 of the Internal Revenue Code of 1986 by adding subsection (c).
Establishment of Administrative Appeal Process for Denied Firearm Transfers
This provision requires the ATF to create an administrative appeal process for individuals denied a firearm transfer and registration based on NICS checks or state/local law. It mandates providing the NICS transaction number, allowing appeals similar to existing NICS appeal processes, and enabling transferees to submit information to prevent future erroneous denials, akin to the Voluntary Appeal File program.
Supporters argue
Supporters argue this provision ensures due process for law-abiding citizens who are wrongly denied firearm transfers due to errors in background checks, protecting their Second Amendment rights. It provides a necessary avenue for recourse and correction.
Critics contend
Critics might argue that while due process is important, this could create additional bureaucratic hurdles for the ATF, potentially slowing down the overall background check system or diverting resources from other enforcement activities.
Tradeoffs
Balances the individual's right to due process and correction of errors against the administrative burden on federal agencies and the potential for delays in the overall system.
Section 2(a), amending Section 5812 of the Internal Revenue Code of 1986 by adding subsection (c)(2).
Attorney Fee Reimbursement for Successful Appeals
If an individual successfully appeals a denied firearm transfer application through the new administrative process, the Secretary (ATF) is required to reimburse them for any reasonable and necessary attorney fees incurred during that appeal.
Section 3(a), amending Section 5812 of the Internal Revenue Code of 1986 by adding subsection (d)(1).
Automatic Approval for Untimely Firearm Transfer Applications
This provision mandates that if the Secretary (ATF) fails to make a determination on a firearm transfer and registration application within 3 business days of its filing, the application is 'deemed to have been approved.' The transfer can then proceed, and the Secretary cannot deny the application solely due to an inability to complete the determination within the 3-day period.
Section 3(a), amending Section 5812 of the Internal Revenue Code of 1986 by adding subsection (d)(2).
Liability Protection for Default-Approved Transfers
This provision creates a 'safe harbor' for transferors and transferees if a firearm transfer is deemed approved after 3 days, but the Secretary later determines it should have been denied. The transferor is protected from liability, and the transferee is protected if they return the firearm within 14 days of receiving notice of the denial.
Section 3(b), amending Section 5822 of the Internal Revenue Code of 1986.
Automatic Approval for Untimely Firearm Making Applications
Similar to transfers, this provision states that if the Secretary (ATF) fails to make a determination on an application to make and register a firearm within 3 business days, the application is 'deemed to have been approved,' allowing the person to proceed with making the firearm.
Section 4(a) and 4(b).
Congressional Reports on NICS Inquiries
This section requires the Comptroller General (in conjunction with the Inspector General of the Department of Justice) to report on the number of NICS inquiries unresolved after 90 days between 2010-2024, and to provide recommendations to minimize such unresolved inquiries. It also requires the Inspector General of the Department of Justice to report on the percentage of NICS inquiries administered by the FBI on behalf of the ATF from 2014-2024.
Section 4(c).
Interagency Agreement for NICS Administration
Within 180 days of enactment, the Director of the ATF and the Director of the FBI are required to enter into a memorandum of understanding (MOU) concerning the administration and processing of NICS inquiries related to firearm transfers.
This provision establishes a 3-business-day default approval for NFA firearm transfers. While NICS already has a 'default to proceed' after 3 business days for standard firearm purchases (18 U.S.C. 922(t)(1)(B)(ii)), this bill explicitly applies it to NFA transfers and making, which typically involve much longer waiting periods (months to a year or more) due to the extensive review required by the ATF.
Section 3(a), amending Section 5812(d)(1) of the IRC.
Why it matters:This is a significant policy change disguised as a procedural update by applying a standard NICS timeframe to a different, more heavily regulated category of firearms.
Case for: Proponents argue that NFA applicants, like all firearm purchasers, deserve timely processing and should not face indefinite delays. This provision ensures the ATF cannot use bureaucratic inaction to deny rights.
Case against: Opponents would argue that NFA items (e.g., suppressors, short-barreled rifles, machine guns) require more extensive scrutiny due to their nature, and a 3-day default approval period is insufficient for proper vetting, posing a significant public safety risk.
Estimated impact: Dramatically reduces waiting times for NFA items, potentially from months/years to 3 days, and could significantly increase the number of NFA items transferred.