H.R. 613 — ATF Transparency Act

This section establishes administrative relief for denials of National Firearms Act (NFA) firearm transfer and registration applications (i.e., for items such as machineguns, suppressors, short-barreled rifles and shotguns, and destructive devices) based on violations of 18 U.S.C. §922(d), (g), or (n) or state, local, or tribal law. For such denials, the Secretary must (1) provide the relevant NICS transaction number, (2) permit appeals similar to the process under 28 C.F.R. §25.10, and (3) allow transferees to submit information to prevent future erroneous denials or delays via a program similar to the Voluntary Appeal File (28 C.F.R. §25.10(g)); reimburses reasonable and necessary attorney fees for successful appeals; and applies to applications filed or pending on or after enactment.

This section establishes a 90-calendar-day deadline for Secretary of the Treasury (i.e., ATF) determinations on National Firearms Act applications to transfer (under IRC §5812) or make and register (under IRC §5822) a firearm, deeming the application approved—and allowing the transfer or manufacture to proceed—if no determination is made. (As background, the National Firearms Act requires prior approval and registration of certain firearms, such as machineguns, short-barreled rifles or shotguns, suppressors, and destructive devices.) The section limits denials to failures to meet applicable requirements, prohibiting denials based solely on processing delays. The amendments apply to applications filed or pending on or after enactment.

This section requires, not later than 180 days after the date of enactment, (1) a report to Congress from the Comptroller General of the United States, in conjunction with the Department of Justice Inspector General, detailing the number of unresolved national instant criminal background check system (NICS) inquiries for firearm transfers during calendar years 2010 through 2021 (i.e., those remaining unresolved after the 90-day period in 28 CFR 25.9(b)(1)) and providing recommendations for Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) administrative actions to minimize such unresolved inquiries; (2) a report to Congress from the Department of Justice Inspector General on the percentage of NICS inquiries for firearm transfers during calendar years 2014 through 2021 that were administered by the Federal Bureau of Investigation (FBI) on behalf of ATF; and (3) a memorandum of understanding between the ATF Director and FBI Director regarding the administration and processing of NICS inquiries for firearm transfers. This section defines "firearm" as in 26 U.S.C. 5845(a) and "NICS" as the system established under 34 U.S.C. 40901.