Here is a copy of what I sent for my comment. Feel free to cut and paste any portion of this that you wish. Just make sure you voice your opinion about this rule change.
Last year there were 39,000 Form 4 applications for Trusts or other Legal Entities. There are no cases in which any of the firearms transferred to Trusts or Corporations have been used in illegal activities or by restricted persons. The problem that this proposed rule change is trying to fix has not even been proven to exist.
This proposed rule is far too over reaching. Trusts and Corporations have been the only method for many US citizens to own NFA items as their Chief Law Enforcement Officers will not sign off on any CLEO Form 4 transfer requests.
The CLEO requirement allows a single individual the opportunity to infringe on an individual's constitutionally guaranteed second amendment rights. There are not checks or balances to prevent unlawful misuse of authority and infringement of these constitutional rights. Instead of trying to impose this restriction on anyone and everyone that may come in contact with an NFA item, this procedure should be removed from the NFA transfer process all together.
There is also no need for a CLEO sign off with the current NICS background check system. As Individuals that are picking up any NFA item(s) for their Trusts or Corporations must complete a Form 4473 and have a NICS background check performed before they can pick up any NFA items.
CLEO sign off, fingerprinting, and passport photo requirements for individuals were all implemented long before the NICS background check system, to help assist in performing a background check on individuals wanting to possess NFA Items. The purposes for the CLEO sign off, fingerprinting and passport photos have been eliminated by the NICS background check system, as this new system is capable of performing an instantaneous background check that is more complete than any background check done with a CLEO sign off, fingerprints, an passport photos in the past.
To purchase a firearm from a dealer does not require fingerprinting, CLEO sign off, or passport photos, as they are not necessary to perform a thorough and complete background check. To purchase NFA items should not require anything from the purchaser above or beyond what is federally required for them to purchase a firearm through a dealer.
A better solution to this the problem that has yet been proven to exist of NFA Items owned by Trusts or other Legal Entities potentially finding their way into the hands of restricted persons, would be to have the responsible persons of these entities complete a 4473 and have a NICS background check done prior to picking up the NFA item(s) from their dealer, and forget about expensive, time consuming, and unnecessary items such as fingerprinting, passport photos, and CLEO sign off.
Your current proposed rule change will also prevent NFA dealers for assisting customers in using the new efile system for Form 4's electronically as the only Form 4 applications that can be accepted electronically are for Trusts or Companies that are not submitting fingerprints, photos, or CLEO sign offs.
The current staff at the NFA branch of the NFA are far to over worked and backlogged to take on the additional work this proposed rule change will require. The NFA Branch is currently quoting 13-15 months for Form 4 transfers submitted on paper. This is totally unacceptable. 10 years ago a Form 4 transfer took less than 3 weeks. With the money being brought in by NFA tax stamps, there should be more employees hired by the NFA Branch of the ATF to deal with the current demand and backlog.
The NFA Branch of the ATF should be looking at proposals on how to fix their current overwhelming backlog of transfer requests, and not proposing rule changes that will add unnecessary paperwork, expense, and time consuming steps for all involved in the NFA Transfer Process.
The only thing this proposed rule change will do is make it more difficult, expensive, and time consuming for citizens of the United States to procure NFA items that are protected by the second amendment to the Constitution of the United States of America.