Fri May 16, 2014, 01:10 AM
gejohnston (15,600 posts)
Did the ATF create a loophole in the Hughes Amendment?
here is the paragraph
Because unincorporated trusts are not “persons” under the GCA, a Federal firearms licensee (FFL) cannot transfer firearms to them without complying with the GCA. Thus, when an FFL transfers an NFA firearm to a trustee or other person acting on behalf of a trust, the transfer is made to this person as an individual (i.e., not as a trust). As the trustee or other person acting on behalf of the trust is not the approved transferee under the NFA, 18 U.S.C. 5812, the trustee or other person acting on behalf of a trust must undergo a NICS check. The individual must also be a resident of the same State as the FFL when receiving the firearm.
So, basically they want a NICS check on anyone who picks up the machine gun for an NFA trust. Sounds reasonable, I'm OK with that.
the amended part of the Gun Control Act
(1) Except as provided in paragraph (2), it shall be unlawful for any person to transfer or possess a machinegun.
(2) This subsection does not apply with respect to–
(A) a transfer to or by, or possession by or under the authority of, the United States or any department or agency thereof or a State, or a department, agency, or political subdivision thereof; or
(B) any lawful transfer or lawful possession of a machinegun that was lawfully possessed before the date this subsection takes effect.
So, the ATF is claiming that a unincorporated trust is not a person, and the Hughs Amendment says "no person"
The writer's point:
In turning to the National Firearms Act, as amended, 26 U.S.C. 5801, et seq., we find that a “person” is defined as including a trust, pursuant to 26 U.S.C. 7701. Yet, there exists no 922(o)esque provision in Section 5801, et seq.
Therefore, pursuant to 26 U.S.C. 5812 and 5822, an unincorporated trust may lawfully transfer and make machineguns, as it is not a “person” for purposes of the GCA and Section 922 only applies to “persons” as defined by the GCA. And yes, this opens up a lot more issues for ATF in relation to the purchase of firearms by trusts under the GCA. Someone isn’t likely to be employed much longer…
So, the Hughes Amendment seems to apply to "persons" as defined by the GCA, which don't include trusts according to ATF lawyers. But, trusts are people under the NFA, which was not amended by the Hughes Amendment.
I find it interesting and amusing, but I don't claim to be a lawyer, so any lawyers out there???????????????
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