Auctioneers around the country continue to violate federal law regarding selling firearms at auction. The key issue is “partnering” with an FFL (Federal Firearms Licensee) to facilitate the processing and transfer of firearms on behalf of the auctioneer.
The ATF (The Bureau of Alcohol, Tobacco, Firearms, and Explosives) says that FFL’s cannot do transfers for unlicensed (non-FFL) auctioneers: https://www.atf.gov/firearms/qa/can-licensee-conduct-background-checks-and-transfer-firearms-behalf-unlicensed.
Therefore it seems clear that unless an auctioneer is selling firearms under the “Estate-type” exemption, the auctioneer would have to be an FFL, rather than use an FFL. In other words:
The “entity” accepting the firearms as a consignment, advertising, selling, collecting funds, etc. has to be the same “entity” as the FFL license.
In a state that licenses auctioneers, this “entity” must be a licensed auctioneer and FFL. In states where auctioneers are not licensed, this “entity” needs to be an FFL, as no auctioneer license is available. It’s just this simple — although many auctioneers continue to openly violate federal law.
We continue to write about this because auctioneers defying this federal law have been arrested, paid substantial fines, and served prison time. The risk is clearly more than the reward and currently securing a license is a mere $200 and renewal is only $90 for three years.
With some states passing “universal background” laws, you as a non-FFL might be “using” another FFL to process background checks and otherwise distribute firearms per your state’s law — but you are still out of compliance with federal law.
This is basically the difference between state sovereignty (state law) and the supremacy clause (federal law is supreme to state law.) Today it, unfortunately, works in a more or less patchwork fashion by state: https://mikebrandlyauctioneer.wordpress.com/2016/08/27/how-does-auctioneer-ffl-licensing-work/.
Incidentally, basically, firearms made before 1899 (and replicas) that do not use contemporary ammunition do not require background checks and as such, the auctioneer would not need to be an FFL to sell such a firearm. https://mikebrandlyauctioneer.wordpress.com/2018/05/04/auctioneers-and-antique-firearms/.
The “Estate-type” exemption to licensing may actually go away in the coming years — with more universal background checks, and ultimately a change to federal law. Quite frankly, there’s been no better time for auctioneers selling firearms to become Federal Firearms Licensees to be protected from fines and prison.
Mike Brandly, Auctioneer, CAI, CAS, AARE has been an auctioneer and certified appraiser for over 30 years. His company’s auctions are located at Mike Brandly, Auctioneer, Brandly Real Estate & Auction, and formerly at Goodwill Columbus Car Auction. He serves as Distinguished Faculty at Hondros College, Executive Director of The Ohio Auction School, and an Instructor at the National Auction Association’s Designation Academy and Western College of Auctioneering. He has served as faculty at the Certified Auctioneers Institute held at Indiana University and is approved by The Supreme Court of Ohio for attorney education.
Comments