NRA Files Lawsuit Challenging ATF’s “Engaged in the Business” Rule

by
posted on July 23, 2024
** When you buy products through the links on our site, we may earn a commission that supports NRA's mission to protect, preserve and defend the Second Amendment. **
NRA ILA Logo

The National Rifle Association of America (NRA) has filed a lawsuit challenging the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) “Engaged in the Business” Final Rule. The ATF’s Final Rule unlawfully redefines when a person is “engaged in the business” of dealing in firearms and therefore required to be federally licensed. This new lawsuit is being filed on the heels of recent U.S. Supreme Court decisions that have reined in executive branch agencies from acting outside of statutory authority.

“The ATF’s Final Rule stands to turn countless upstanding and well-intending citizens into criminals for exercising their constitutional rights,” said Randy Kozuch, executive director of the NRA Institute for Legislative Action (NRA-ILA). “When ATF released this Final Rule, NRA promised to use every means necessary to stop this egregious interpretation of the law. Now that the Supreme Court’s recent decisions in Loper Bright, Cargill, and Rahimi make clear that the ATF does not have unfettered authority to arbitrarily restrict NRA Members’ rights to buy and sell firearms, the NRA is fighting back.”

NRA, along with two individuals, Don Butler and David Glidewell, filed the lawsuit challenging the ATF’s Final Rule in the U.S. District Court for the Northern District of Alabama. The complaint alleges that the Final Rule violates the Administrative Procedure Act because it exceeds the ATF’s statutory and jurisdictional authority and is arbitrary and capricious; violates the Fifth Amendment because it is unconstitutionally vague; violates the Second Amendment by infringing the rights to keep, bear, buy, and sell arms; and violates the Separation of Powers, non-delegation doctrine, and Take Care Clause by usurping legislative powers and prohibiting lawful conduct by executive fiat.

Under the Firearms Owners’ Protection Act (FOPA) of 1986 (which amended the Gun Control Act of 1968), someone is “engaged in the business” of dealing in firearms if that person “deal[s] in firearms as a regular course of trade or business with the principal objective of livelihood and profit through the repetitive purchase and resale of firearms.” The 2022 Bipartisan Safer Communities Act (BSCA) altered that definition by replacing “livelihood and profit” with “to predominantly earn a profit.” The BSCA did not alter FOPA’s exclusion for “a person who makes occasional sales, exchanges, or purchases of firearms for the enhancement of a personal collection or for a hobby, or who sells all or part of his personal collection of firearms.”

On April 19, 2024, ATF promulgated the Final Rule “to clarify[ ] the criteria for determining when a person is ‘engaged in the business.’” The Final Rule provides that “there is no minimum threshold number of firearms purchased or sold that triggers the licensing requirement” and that “there is no minimum number of transactions that determines whether a person is ‘engaged in the business’ of dealing in firearms. For example, even a single firearm transaction or offer to engage in a transaction . . . may require a license.” The Final Rule also excludes firearms acquired for “personal protection” from the firearms that may be sold from a personal collection without a license. The ATF’s Final Rule thus rewrites the law, contradicts Congress’ statutory language, and adds confusion rather than clarification.

The case is named Butler v. Garland, and the complaint can be read here.

Latest

Ledefederal And Remington Logos
Ledefederal And Remington Logos

Federal and Remington Awarded FBI Rifle Ammunition Contracts

The Federal Bureau of Investigation (FBI) recently awarded Federal and Remington Ammunition—both part of The Kinetic Group (TKG)—one of the largest law enforcement contracts in TKG's history.

Range Review: SoundGear Phantom

In the market for a set of ear plugs comfortable enough to wear all day, and effective enough to clearly hear your surroundings, whether on the trap line or in the hunting blind? Look no further. Champion trap shooter, ATA All-American, and member of the Jacksonville University Clay Target Team Nicole Hood shares her thorough, competition-tested review of the SoundGear Phantoms.

Member's Hunt: Hunting the ‘Terrible’ Moose

This story of an adventurous moose hunt comes to us from Colt Hubbell of Nampa, Idaho.

Landmark Increase in Hunting Access to Federal Land on the Horizon

The Department of Interior has released details of the U.S. Fish and Wildlife Service’s (USFWS) proposed expansion of hunting and sport fishing opportunities, the largest in agency history. National Park Service actions to remove unnecessary hunting-related restrictions across National Park System units—where hunting is authorized by law—were also included in the announcement.

Bear(ly) Armed—Bear Defense Calibers

A perusal of some fun and effective sidearm options for your spring black bear adventures.

First Look: Lumenok Adds Two Lighted Crossbow Nocks

Lumenok has introduced two additions to its lighted nock lineup: the TP 254 Nock for TenPoint bolts and the SQ300 Nock for Scorpyd crossbows.

Interests



Get the best of American Hunter delivered to your inbox.