As 2024 draws to a close, a reflection on what the past year has brought the industry is in order.
Important Second Amendment Legislation
On the legal front, several cases related to industry/regulation are worth recounting.
Garland v. Cargill
This summer, the Supreme Court of the United States (SCOTUS) issued a decision in Garland v. Cargill. For those unfamiliar with the case, Cargill was a challenge to ATF’s Final Rule which redefined the term “machinegun” and led to the ban on bump stocks. While multiple cases were filed challenging the Final Rule, Cargill is the one that made its way to the Supreme Court’s docket.
SCOTUS, in a 6-3 decision, held that ATF exceeded its statutory authority by issuing the Final Rule classifying a bump stock as a “machinegun” because a semiautomatic rifle equipped with such a device does not fire more than one shot “by a single function of the trigger.” The decision affirmed the Fifth Circuit’s en banc decision killing the Final Rule.
With the Final Rule struck down, ATF was forced to return all of the bump stocks that were surrounded under protest – highlighting the importance of utilizing this pathway when ATF bans a commercially available product.[1]
NAGR v. Garland
In August of 2023, a lawsuit was filed against ATF challenging the agency’s interpretation that forced reset triggers (FRTs) were machine guns. The plaintiffs sought a temporary restraining order and preliminary injunction, both of which were granted. In July of this year, the district court granted summary judgment for the plaintiffs.
The case is now on appeal at the 5th Circuit. This case is another example of the importance of surrendering items the ATF deems to be contraband under protest.
Garland v. VanDerStok
Earlier this month, SCOTUS heard oral argument in a challenge to ATF’s Final Rule redefining what constitutes a “frame or receiver.” At issue is whether ATF exceeded its statutory authority in expanding what items are “frames and receivers.” Should the challengers prevail, ATF’s Final Rule which determined that so-called “80%” receivers and parts kits were firearms would be struck.
The Justices asked some rather pointed questions to both parties. A decision is likely in Q2 of 2025.
Smith & Wesson Brands, Inc. v. Estados Unidos Mexicanos
In late summer 2021, the government of Mexico filed a lawsuit against Smith & Wesson, Beretta, Century Arms, Colt, Glock, and Ruger claiming that the manufacture, sale and advertising of firearms contributed to crime in Mexico.
While the manufacturers were successful in fending off the attack at the district court, on appeal the First Circuit reversed and found in favor of Mexico. At issue, is the bounds of the Protection of Lawful Commerce in Arms Act (PLCAA). PLCAA was signed into law under the Bush II administration to prevent frivolous lawsuits against industry members for the criminal acts of third parties with their products – a lawfare tactic being utilized by the gun control crowd prior to the PLCAA’s passage.
SCOTUS has granted cert to hear this case. If the Court affirms the First Circuit’s decision, it would open the floodgates to litigation against the industry, in addition to the gun control crowd being able to dictate the types of firearms and features that Americans may choose from. This will be one to watch closely as it develops.
FFL Statistics
ATF’s data regarding FFL revocations for 2024 is only up to date through June. However, comparing 2023 to 2024, if the first half of the year is representative of the numbers the second half will bring, the numbers will be roughly the same in the number of licenses that were revoked or voluntarily ceased to do business after an inspection.
157 FFLs had their licenses revoked and 80 voluntarily ceased to do business after an inspection in 2023. Through June of 2024, those numbers were 81 and 35 respectively.
In October of 2023, there were 76,737 active Type 01, 02, and 07 licensees in the United States listed on ATF’s “Complete Federal Firearms Listings.” This year, there are currently 74,496 active licenses in those same categories. Of course, the decrease in the number of licensees cannot all be attributed to ATF’s no-tolerance campaign of enforcement as individuals routinely close their shops for any number of reasons unrelated to regulatory enforcement.
2024 Presidential Election
The 2024 Presidential Election is almost here and the two main candidates have differing views on the Second Amendment. While their views on the Second Amendment are important, another important consideration is the President’s ability to appoint judges to the bench.
During the first Trump administration 174 district court (federal trial court) judges, 45 courts of appeals (federal appellate court) judges, and three Supreme Court justice were appointed. During Biden’s administration 166 district court judges, 44 courts of appeal judges, and one Supreme Court justice were appointed.
If the judiciary sustains another 4 years of anti-gun judicial appointments, even if the Supreme Court’s composition does not change, the legal challenges on Second Amendment grounds will become less likely to succeed and significantly impair the restoration of the Second Amendment across the country. Remember, to date, no court of appeals has held that the Second Amendment protects arms like AR-15s, etc.
Kamala Harris
Kamala supports red-flag laws and has a long history of doing so dating back to when she was California’s Attorney General. She has also long supported universal background checks and has called on Congress to pass broader gun-control legislation. Recently, a video surfaced where Kamala suggested it would be “great” to ban all gun ownership.
She has also previously called for a “mandatory buyback program” during an MSNBC gun control forum in 2019. During that same year, she also told reporters that confiscation of commonly-owned semi-automatic firearms was a good idea.
Although she and her running mate claim to be both gun owners, it is evident that both are for more restrictions on the purchase and possession of firearms, banning so-called “assault weapons”, and would not hesitate to implement additional measures through executive action. During her tenure as Vice-President, Kamala oversaw the White House’s Office of Gun Violence Prevention, established during the Biden Administration.
Further, the 2024 Democratic Party Platform states:
Democrats will establish universal background checks, a step supported by the vast majority of Americans, including gun owners. We will once again ban assault weapons and high-capacity magazines. We will require safe storage for guns. Democrats will end the gun industry’s immunity from liability, so gunmakers can no longer escape accountability. We will pass a national red flag law to prevent tragedies by keeping weapons out of dangerous hands. We will increase funding to the Bureau of Alcohol, Tobacco, and Firearms (ATF) for enforcement and prosecution, and to the Federal Bureau of Investigation (FBI) for firearm background checks. And, because the gun violence epidemic is a public health crisis, we will fund gun violence research across the Centers for Disease Control (CDC) and National Institutes of Health (NIH) as well as community violence interventions.
Donald Trump
Trump’s Agenda 47 states he would sign concealed carry reciprocity legislation. Despite an assassination attempt earlier this year with an AR-15, Trump has continued to oppose bans on so-called “assault weapons.”
He also supports arming trained teachers in schools to protect students.
During his first term, Trump appointed three Supreme Court Justices who joined the majority opinion in NYSRPA v. Bruen, the first major Second Amendment case decided by the Court since Heller v. McDonald.
While Trump did utilize ATF to ban bump stocks during his first term, he has not levied a direct attack on the possession of common arms, the ability to acquire arms, or the carry of arms.
Boost Your Business In 2025
The firearms industry is in an exciting and interesting place, while the industry is still growing and selling millions of guns per year, FFLs are gun businesses are under more scrutiny than they ever have been. The political and legal climate currently can have serious impacts on our businesses and our livelihoods, so it is more important now than ever before to take protecting your business seriously. The key to securing your FFL is a strong focus on compliance, and ensuring you are complying with laws and regulations.
4473 Cloud removes one of the largest pitfalls that causes a massive amount of FFL revocations, poor record keeping. 4473 Cloud digitally stores ALL of your 4473s, gone are the days of document boxes and filing cabinets eating away at your stock rooms free space, printing hundreds of pages every day, or losing paperwork (which could lead to revocation.)
If you are interested in boosting your compliance and bolstering against overreach, let us show you how 4473 Cloud can help protect your livelihood.
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[1] For more information about surrendering an item under protest, see https://blog.princelaw.com/2022/03/25/only-surrender-your-forced-reset-trigger-frt-to-atf-under-protest/.
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