ATF identified and provided documentation on 14 national data systems and 4 subsystems relating to firearms. Also, on the basis of our review, observations, and discussions with ATF officials, we believe that ATF operates the systems consistently with their design, with one exception relating to the purging of data from the Multiple Sales System, which ATF subsequently informed us it had taken action to correct. Out-Of-Business Records System

Shortly after the passage of the Gun Control Act of 1968, ATF issued regulations requiring federal firearms licensees who permanently discontinued their businesses to forward their transaction records to ATF within 30 days following the discontinuance. With regard to the issue of ATF’s interpretation of the data restriction contained in the annual appropriation rider, we concluded in our draft report that given ATF’s legal interpretation that the appropriation rider had no application to its internal information practices, ATF had not analyzed its data systems and information practices to determine whether they involved the type of centralization and consolidation of records that might be affected by the rider. ATF Data Systems That Contain Retail Firearms Purchaser Data

This appendix describes the five national data systems and one subsystem that ATF identified as containing sufficient data, or automated interfaces to related databases, to readily identify the retail purchaser or possessor of a specific firearm. 926(a), we believe that ATF’s interpretation of the restriction in its annual appropriation was too narrow. However, we found that the two data systems that we reviewed did not violate the data restrictions. 18 U.S.C. With regard to the restriction in section 926(a), we agree with ATF that it is limited to prescribing rules and regulations. The appropriation rider, however, contains no language that would limit its application either to prescribing rules and regulations or to imposing additional reporting requirements on licensees. However, we believe that the appropriation rider clearly has legal effect independent of section 926. The appropriation rider applies to “consolidating or centralizing, within the Department of the Treasury, the records, or any portion thereof, of acquisition and disposition of firearms maintained by Federal firearms licensees.” However, we do not believe that the rider precludes all information practices and data systems that involve an element of “consolidating or centralizing” licensee records. 923(g)(3), (4) and (5), as well as that contained in paragraph (1), as amended, are not to be construed to authorize the United States or any state or political subdivision thereof, to use the information obtained from any records or forms which are required to be maintained for inspection or submission by licensees under Chapter 44 to establish any system of registration of firearms, firearms owners, or firearms transactions or dispositions.”
Therefore, to the extent that the centralization or consolidation of records is incident to carrying out a specific ATF responsibility and does not entail the aggregation of data on firearms transactions in a manner that would go beyond the purposes of the Gun Control Act of 1968, as amended, we do not believe that the rider would be violated. 926(a) prohibits ATF from prescribing certain rules or regulations after the date of enactment of FOPA. Multiple Sales System

Since 1975, federal firearms licensees have been required by regulation and subsequently by law to report all transactions in which an unlicensed person has acquired two or more pistols and/or revolvers at one time or during any 5 consecutive business days (referred to as a multiple sale).
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed various aspects of the Bureau of Alcohol, Tobacco, and Firearms' (ATF) operations, focusing on ATF compliance in meeting specific legislative restrictions in 18 U.S.C. 926(a) regarding federal firearms licensee data.

What GAO Found

GAO found that: (1) ATF identified and described 14 national data systems and 4 subsystems that relate to firearms; (2) according to ATF, five systems and one subsystem contain data that readily identify retail purchasers or possessors of specific firearms; (3) the Out-of-Business Records System contains records that federal firearms licensees are required by statute to forward to ATF within 30 days following a permanent discontinuance of their business; (4) the Multiple Sales System contains data from reports that federal firearms licensees are required by statute to send to ATF showing sales or other dispositions of two or more pistols and/or revolvers to an unlicensed person at one time or during any 5 consecutive business days; (5) the two systems, as designed, comply with the data restrictions and do not violate the appropriation rider prohibition against consolidating or centralizing licensee records; (6) on the basis of GAO's review, observations, and discussions with ATF officials, it believes that ATF operated the two systems consistently with their design, with one exception relating to the Multiple Sales System; (7) GAO agrees with ATF's view of section 926(a), but GAO believes that ATF's interpretation of the annual appropriation rider was too narrow; (8) ATF contended that both section 926(a) and the appropriation rider restricted it from issuing rules and regulations imposing additional reporting requirements on licensees but did not restrict what it did internally with information it otherwise acquired; (9) GAO agrees that the restriction in section 926(a) limits ATF only from prescribing certain rules or regulations, but the appropriation rider contains no language that would limit its application either to prescribing rules and regulations or to imposing additional reporting requirements on licensees; (10) GAO believes that the rider has legal effect independent of section 926; (11) GAO does not believe that the rider precludes all information practices and data systems that involve an element of "consolidating or centralizing" licensee records; (12) to the extent that the centralization or consolidation of firearms transaction records is incident to carrying out a specific ATF responsibility and does not entail the aggregation of data on firearms transactions in a manner that would go beyond the purposes of the Gun Control Act of 1968, as amended, GAO does not believe that the rider would be violated; and (13) given its legal position on the limited scope of the rider, ATF had not systematically analyzed its data systems and information practices to give appropriate effect to the appropriation rider.